Analysing Marketing Strategy of Kansai Nerolac Paints: A Case Study

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Explore the marketing strategy of Nerolac Paints, highlighting their innovative campaigns, advertising techniques, and distribution network. This case study delves into how Nerolac Paints has established itself as a leading brand in the paint industry.

Kansai Nerolac Paints Limited is a leading paint company in India, established in 1920. Celebrating its 100th anniversary in 2020, the company is renowned for its high-quality paints and coatings.

In this case study, you will get an overview of the marketing strategy of Nerolac Paints, its marketing mix, marketing campaigns, and SWOT analysis. So let’s start by understanding the Kansai Nerolac company.

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About Kansai Nerolac Paints

Kansai Nerolac Paints, originally founded as Gahagan Paints and Varnish Co. Ltd. in 1920, is a prominent paint company in Insai Nerolandia. Acquired by Kansai Paint Co. Ltd., Japan, in 1999, the company rebranded as Kac Paints Ltd. Committed to sustainability and eco-friendliness, the marketing strategy of Nerola Paints offers a diverse range of products including decorative, industrial, and automotive paints.

With a strong market share of over 40%, Kansai Nerolac operates six manufacturing plants and collaborates with seven contract manufacturers. Beyond its core business, the company actively engages in community development initiatives such as health camps and infrastructure projects.

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Nerolac Paints Case Study – What’s New With the Company?

• Nerolac Paints reported a revenue of INR 5,565 crore for the fiscal year 2023 (source: Nerolac Annual Report 2023).
• The brand has a 15% market share in the Indian paint industry (source: Indian Paint Association, 2023).

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Business News

In 2023, Nerolac Paints announced a strategic partnership with a leading European paint manufacturer to expand its product portfolio and enhance technological capabilities (source: Business Standard).

Product Launch

Nerolac recently launched a new range of eco-friendly paints, focusing on low VOC (volatile organic compounds) and odour-free formulations, catering to environmentally conscious consumers (source: Economic Times).

Marketing News

A recent campaign of Nerolac Paints’ marketing strategy, ‘Colours that Care,’ emphasises the brand’s commitment to sustainability and health by promoting their eco-friendly and safe products (source: AdAge India). To understand the thought process behind the formation of such strategies, people pursue online digital marketing courses in India and implement these learnings in their marketing strategies.

Celebrity News

Bollywood actor Ranveer Singh continues to strengthen Nerolac Paints’ marketing strategy as the brand ambassador, featuring prominently in their latest advertising campaigns. This collaboration not only enhances Nerolac Paints’ visibility and appeal but also reinforces its market presence (source: Bollywood Hungama).

 

Buyer Persona

A buyer persona is essentially a detailed profile of Nerolac’s ideal customer. Nerolac Paint’s marketing strategy is based on its audience’s motivations, what they like, their challenges, and how they spend their time online.

Based on the detailed breakdown, it’s no surprise that Nerolac Paints’ marketing strategy uses social media platforms like Instagram and Facebook to execute its marketing campaigns. Here, Nerolac Paint’s marketing strategy can blend home improvement techniques and interior decorations to match the requirements of its target audience.

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Marketing Mix – 4Ps Used in the Marketing Strategy of Nerolac Paints

Through the marketing mix, a company can promote its products by persuading its customers with some cool and awesome stuff. Kansai Nerolac Paints’ advertising strategy uses the 4 Ps (Product, Price, Place, and Promotion) of the marketing mix.

Product Strategy of Marketing Mix

Kansai Nerolac Paints Limited is a producer and supplier of paints and coating products. The company uses a dynamic targeting strategy so that it can target specific products to different segments.

Under the category of decorative paint products, the company provides a wide range of products such as wood coatings, interior wall paints, exterior wall paints, enamel paints, etc. The interior and exterior wall paints come in a super-premium range with the finest quality.

Other products include powder coatings, floor coatings, and coil coatings. It also offers tools like a paint calculator which helps the users to estimate the price depending on their requirements. Nerolac Paint’s marketing strategy has to be carefully designed keeping their various product offerings into consideration.

Price Strategy of Nerolac Paints

Nerolac Paints’ marketing strategy adopts different pricing strategies for different segments. As it offers eco-friendly and high-quality products, the prices charged by it are relatively higher than its competitor’s pricing/industry’s pricing.

The marketing strategy of Nerolac Paints categorises its pricing into the super-premium range, premium range, popular range, and economy range. The higher the quality of the paint, the higher the pricing will be. It also offers free tools as well that act as a value-adding element for the customers.

Place and Distribution Strategy of Nerolac Paints

The company boasts a robust Nerolac Paints distribution network. Kansai Vendors at Nerolac are treated more like business partners. Nerolac’s Best Vendor Performance Management System ensures that high-quality raw materials are secured from a pool of vendors.

The majority of the manufacturing is done in-house at paint processing facilities, although some of it is also outsourced to other processing centres.

The finished commodities from both internal and external centres are subsequently sent either directly to depots or regional distribution centres, from where they are delivered to depots.

Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh, and Haryana are home to the five manufacturing facilities. In the Philippines, Malaysia, Turkey, Kenya, Nepal, Bangladesh, and Sri Lanka, the corporation has a presence. In 2005, this company was also awarded the Best Vendor Award.

Promotion Strategy of Nerolac Paints

Kansai Nerolac Paints has always invested in advertising campaigns. This brand always invested heavily in promotions and campaigns as it had to compete against the tremendous brand equity of Asian Paints.

Nerolac Paint’s advertising strategy came with a marketing campaign ‘Rang de Patang’ where they used colourful kites during the Uttarayan Festival in Ahmedabad city.

They gave kites as a gift to the customers and the remaining ones they distributed to people in Ahmedabad on the day of Uttarayan. The whole sky was painted in Nerolac kites during Uttarayan. This is a unique promotional strategy.

It also uses other mediums for promotion like magazines, TV, billboards, etc. Under its Nerolac Colour Trails campaign. Nerolac Paint’s marketing strategy promoted its offerings by giving an insight into decorating homes with unique and traditional designs through magazines.

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Hence, this concludes the marketing mix of Kansai Nerolac Paints. Nerolac is a company with many strengths and opportunities in today’s global world, but it also suffers from threats and problems. So, let us now discuss the SWOT analysis of Nerolac Paints.

 

 

SWOT Analysis That Influences Nerolac Paints Marketing Strategy

A SWOT analysis is a technique that helps to define the Strengths, Weaknesses, Opportunities, and Threats in an organisation. Here is the SWOT analysis of Nerolac Paints:

Strengths of Nerolac Paints

• Kansai Nerolac Paints Limited is at the top of the industry due to its excellent marketing strategies and branding.
• The company focuses on research and development to produce new quality products to meet the needs of its customers. Nerolac Paints has an excellent chain network that allows consumers to access the goods.
• The company has served many in the automotive industry by working with Maruti Suzuki, Tata Motors, Honda, etc. Kansai Nerolac Paints have received many awards in the past years.

Weaknesses of Nerolac Paints

• Customer’s tastes and preferences change as per the trends in the decorative paint industry. This might cause a problem in terms of product planning as well as creating the marketing strategy of Nerolac Paints.
• There is an inefficient capital allocation to raise income. Revenue and profit growth have slowed.
• Kansai Nerolac Paints’ business model is easily replicable by its competitors. As a result, the organisation would need to create a development platform into which manufacturers, suppliers, and end-users could be integrated.

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Opportunities of Nerolac Paints

• Build a reputation as an environmentally friendly brand. A low inflation rate increases the consumption of a company’s products which provides them huge opportunities. Online services are increasing day by day. Customers avail of those services.
• Kansai Nerolac can capture the market by offering special discounts on bulk purchases to Builders and Developers.
• The company can enter the Sanitizer Manufacturing Industry because the demand is increasing, it is easily accessible, and it does not necessitate the acquisition of any additional licenses.

Weakness of Nerolac Paints

• Production depends upon the raw materials and if raw materials are scarce the production gets affected.
• Any change in government policies concerning chemicals has the potential to have a direct impact on the market for Kansai Nerolac Paints. Stringent guidelines and regulations on the quality of goods and production facilities pose a significant challenge to the company’s operations.
• Environmental policies are becoming more important, and the organisation must constantly monitor them.
• The company needs to come up with ways to eradicate its weaknesses and threats.

The services provided by the brand increased its popularity and productivity with good quality paints.

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Digital Marketing Strategy of Nerolac Paints

Below is a list of important components that are employed in the marketing strategy of Nerolac Paints:

SEO Strategy

Nerolac Paint’s marketing strategy optimises its website with relevant keywords (queries used by users to find information) like ‘Nerolac eco-friendly paints’ and ‘Nerolac painting solutions’ to enhance search engine rankings and drive organic traffic (natural visits on a company’s website).

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SMM Strategy

The marketing strategy of Nerolac Paints makes use of social media to engage with its audience. This is done by sharing informative content, product updates, and promotional campaigns to boost engagement and brand awareness.

Ecommerce Strategy

Nerolac has strengthened its online presence by partnering with major e-commerce platforms and offering exclusive online deals, making it easier for consumers to purchase their products.

Mobile App

The Nerolac Colour Visualiser App provides customers with a convenient tool to explore colour options and visualise them in their spaces, enhancing the user experience.

Influence Marketing Strategy

Collaborations with influencers and celebrities like Ranveer Singh help Nerolac reach a broader audience and build brand credibility.

 

Marketing and Advertising Campaigns Designed by Nerolac Paints Marketing Strategy

Marketing campaigns are important in communicating the brand image. Kansai Nerolac Paints have launched many successful campaigns. Let’s have a look at some of the successful campaigns by the brand:

Nerolac and Talent House – A Marketing Campaign of Nerolac Paints

In 2012, Nerolac partnered with Talenthouse India, they launched a contest and invited people to recreate their version of the jingle and win prizes. They came out with catchy jingles like- ‘Jab Ghar ki Raunak Badhani ho, Deewaro ko Sajana ho, NEROLAC NEROLAC!’

In 2008, the company tempted its customers through Shah Rukh Khan for its ad campaigns who continues to be the brand ambassador for Nerolac Paints.

Little Bit of Nerolac – A Marketing Campaign of Nerolac Paints

As part of Nerolac Paint’s marketing strategy, the campaign ‘Little Bit of Nerolac’ featuring Ranveer Singh made consumers take a second look at their home appliances. Nerolac’s lasting shine has transformed your appliances. Now, let it elevate your walls.

Advertising Commercials of Nerolac Paints

Nerolac is involved in environmental safety initiatives and has been promoting them. Nerolac Paint’s marketing strategy has always focused on the environment. It has also worked with cricket players to create advertising content which also gave good results. This marketing strategy of Nerolac Paints was very effective, especially during the IPL.

 

Brand Ambassadors Featured in Nerolac Paints Marketing Strategy

Roping celebrities is one of the popular marketing strategies of a company. Kansai Nerolac Paints has appointed some popular faces as brand ambassadors. Ambassadors include Ranveer Singh and Shah Rukh Khan.

Shah Rukh Khan was appointed as the ambassador of Kansai Nerolac Paints in 2010. His appearance endorsed the brand to its higher level. At present, Ranveer Singh is the new ambassador of Kansai Nerolac Paints. The company roped him in to increase its popularity with a new face.

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Marketing Strategy of Nerolac Paints That Failed

Nerolac’s ‘Bright Future’ campaign aimed to inspire hope and positivity by showcasing vibrant, colourful homes symbolising a prosperous future. The campaign aimed to showcase how applying a new coat of paint can rejuvenate living spaces and uplift spirits.

Issue: In 2018, Nerolac faced criticism for its ‘Bright Future’ campaign, which was perceived as lacking sensitivity towards socio-economic disparities.

Backlash: Consumers and social media users criticised the campaign for being out of touch with the realities faced by many individuals in India.

Response: Nerolac responded by pulling the controversial ads and issuing a public apology, reaffirming their commitment to socially responsible advertising.

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Top Competitors That Influence the Marketing Strategy of Nerolac Paints

Apart from Nerolac, many other players can have an impact on Nerolac Paint’s marketing strategy. Some of these are:

• Asian Paints: The market leader known for its wide range of decorative paints and innovative marketing campaigns.
• Berger Paints: Offers a diverse portfolio of paints and coatings, focusing on quality and innovation.
• Dulux Paints: Renowned for its premium quality and extensive colour range.
• Shalimar Paints: A major player in the Indian paint industry with a strong focus on industrial coatings.
• Indigo Paints: Known for its innovative products and aggressive marketing strategies.

 

Conclusion

Kansai Nerolac Paints Limited is one of the top brands in the industry. It has always come up with innovative campaigns to attract customers. It has always focused on the environment and health which makes it different from the other brands.

Kansai Nerolac has maintained its quality and image throughout. Nerolac has focused on manufacturing effective, healthy, and beautiful paint colours for customers. Its popularity and trust are the results of its continuous efforts.

Thank you for your valuable time. We hope you found this blog on the marketing strategy of Nerolac Paint’s useful.

 

Learning From Other Brands

In comparison with other brands, the SWOT analysis of Zara highlights the brand’s strengths in fast fashion and quick turnaround times, which have helped Zara maintain a strong presence in the retail market and build a loyal customer base.

Similarly, the SWOT analysis of Taco Bell emphasises its strengths in innovative menu offerings and effective marketing campaigns, showcasing how product innovation and targeted advertising can drive customer engagement and market leadership.

Additionally, the marketing strategy of Colgate focuses on extensive advertising, strong distribution networks, and product diversification to expand its market reach and customer base. Colgate also emphasises opportunities for growth through continuous innovation and robust customer engagement.