Pintura Corporation Case

Pintura Corporation Case

Case Overview/Situation Analysis

The Pintura Corporation was keen on launching environmentally-friendly products that would enable it to appeal to eco-conscious consumers and to contribute towards the protection of the environment. However, the launch of an environmentally-friendly powder-based coating for hardwoods, Lena, had posed a lot of challenges for the organization. The product presented a unique challenge due to the difficulties in creating the appropriate marketing mix that would ensure that it contributes to the achievement of a 5% annual growth revenue (Quelch & Hartman, 2017). Essentially, it is apparent that not all stakeholders have been convinced of the value proposition of this product.

SWOT Analysis

Strengths

The strength of the Pintura Corporation is that it has a lot of institutional knowledge in the manufacturing and distribution of high-quality paint coatings and related products. The organization has a product line which comprises of over 20 brands and 600 items (Quelch & Hartman, 2017). The annual revenue of $ 4 billion means that it is uniquely positioned to invest in research and product development (Quelch & Hartman, 2017). The organizational structure enables it to focus on critical areas that is fundamental in product innovation. The Industrial Finishes Group (IFC), Consumer Products Group (CPG) and Pintura International (PI) lead the operations of the company across different product categories. Moreover, a survey comprising of 1000 executives in the United States had 70 % of the respondents indicating that Pintura is the industry leader in the development of quality factory-applied and water-based wood coatings (Quelch & Hartman, 2017). In this regard, it is evident that it enjoys positive brand recognition in the United States.

Weakness

A major weakness for the organization involves its diverse product portfolio. Besides increasing its operational costs, it is possible that the company could be spreading itself thin. In this regard, it is evident that more efforts are required to ensure that it can manufacture innovative solutions to its customers without placing undue pressure on its marketing team.

Opportunities

The focus on environmentally sustainable products presents an opportunity for the organization to appeal to a growing number of consumers who are keen on sustainable consumption. Moreover, the launch of Lena could contribute to the growth in annual revenue. Furthermore, there is an opportunity for the company to serve more consumers across diverse business segments.

Threats

Pentura Corporation is operating in a competitive business segment with the limited market size. Moreover, it is at risk of being disrupted by smaller firms that focus on niche segments of the industry. The failure of this new product, Lena, could undermine the availability of resources for the promotion of its diverse portfolio brands.

Key issues

The first issue is that Pintura Corporation must find a way to provide environmentally-friendly products to its customers at an affordable cost. In essence, it has to find a way to communicate its value proposition as being both affordable and affordable. Concerns about the threat of cannibalization is also an essential consideration for the organization (Quelch & Hartman, 2017). Furthermore, the quality control practices involved in the product launch is also a necessary consideration for stakeholders. The team have to evaluate the marketing promotional mix that would enable the product to be successful. The observation highlights the need for the organization to be able to identify the optimal pricing, positioning, and distribution strategy that will enable it to differentiate the product from those of competitors.

Marketing Alternatives

Pintura needs to embrace an aggressive promotional strategy that would enable it to raise consumer awareness of the product. In this regard, it must embrace an omnichannel strategy that increases the visibility of this brand and enhances its appeal to consumers across different parts of the world. The approach would involve combining advertising, sales promotion, publicity, electronic media, and distribution strategies to contribute to increased consumer awareness (Quelch & Hartman, 2017). The advantage of this approach is that it will increase brand awareness and visibility, which will lower the cognitive resistance to Lena. The marketing strategy is particularly essential in enabling Pintura to take clients away from its competitors. However, the information must be presented in an appealing manner that seeks to create an emotional attachment with the target buyers. However, this strategy could be expensive due to the need for the organization to reach many customers. The approach will not only be expensive but may also expose the brand to a lot of challenges. Moreover, more staff will be required to implement this marketing strategy across diverse media.

Pintura can embrace personal selling to reach more consumers. The suggestion is supported by the fact that this market segment is unique as few decision-makers influence the purchasing life-cycle. Furthermore, this approach would enable it to educate consumers about the competitive advantages of switching to Lena. However, this approach can be expensive for the organization due to the costs incurred in marketing to consumers across different parts of the world.

Recommendations

In light of the insights gained in this case study, it is imperative to ensure that the marketers embrace a data-driven approach in the formulation of a marketing strategy. The organization has data that will enable it to make informed decisions in identifying and connecting with different consumers (Quelch & Hartman, 2017). For instance, it is evident that Lena, its new product can be successful if the organization positions it as a low environment coating product with antimicrobial properties and shape versatility. Furthermore, the marketing team needs to emphasize the coating versatility of this product.

In light of the available data, it is good for Pintura to be prepared to cannibalize some of its products. Brands must be prepared to cannibalize their products themselves because it would enable them to maintain their market share. Furthermore, it will play a vital role in enabling the organization to maintain its competitiveness.  As such, it should be willing to appeal to customers of its existing products.

The pricing strategy used in this case should provide a mechanism for the organization to generate a positive return on investment (ROI) while also allowing consumers to buy an environmentally-friendly product at an affordable cost. The observation demonstrates the necessity for the brand to invest in raising consumer awareness and ensuring that more people understand the value that can be gained from it. In this regard, the promotional strategy must not only stress its unique selling point but also communicate both its durability and environmental impact.

Pintura should embrace a hybrid distribution channel. The approach involves selling directly to manufacturers through its in-house sales team, while it can sell indirectly through a network of independent distributors (. The approach will enable it to reach consumers across different business segments. Furthermore, it will provide an opportunity for the launch of Lena to leverage existing relationships and networks to reach both existing and new customers.

Conclusion

In sum, this case study has demonstrated the complexities involved in a product launch. Marketers are required to create a value proposition that would enable them to appeal to an increasing demanding and discriminating consumer. As such, Pintura Corporation must ensure its brand positioning strategy communicates that Lena not only offers value for money but is also aligned with the management of the environment. However, the long-term success of Lena will depend on the capacity of the organization to educate consumers and to demonstrate agility in responding to emerging information.

Reference

Quelch, J A & Hartman, K. B. (2017). Pintura Corporation: The Lena Launch Decision. Harvard Business School. Boston, MA, United States.