Coin in the paint –Out of the box thinking

Coin in the paint: This article shows the power of innovative thinking. This piece of action has taken place in Hyderabad, India. It is about a small paint manufacturer from Hyderabad. This was a small company that had excellent range of paints but had very limited liquidity. They were being squeezed out of the market by aggressive national paint companies. The company had a limited advertising budget.  And it could not spent money on promotion like the big companies. The company if it were to spend even 10 crores rupees (which was 50% of its turnover) it would not be enough as 10 crores is small change for the big paints companies.

The company needed to think out of the box. It approached a marketing research company and asked it to suggest a way to get a decent market share. The marketing research organization did not give any immediate solution. It studied the market.

It found out that paints marketing is quite different from the others products that are marketed. In most product categories it is the husband, wife, the children or the family together who take a purchase decision. But paint is not a glamorous product. The family does not play any role in the purchase decision. Then who takes the decision?

Study proved that the architect or the painter who make paint related purchase decision in the primary market (house being painted for the first time) in the secondary market (re painting) it is the painter.

So what motivates the painter? Of course quality matters but the painter is more bothered about the margin that is given to him by the distributor that is the most appealing aspect in the paint purchase decision. In other words the commission given by the distributor is pocketed by the painter and the MRP (Maximum Retail Price) is shown to the house owners. The motive of the buying decision is the margin of discount given by the distributor.

The market research organization came out with a brilliant campaign. It told the company to place 1 (one) gram gold coins in selective paint boxes. As expected this ploy proved to be a big hit. As it was not promoted publicly the paint majors were not aware what was happening. The news of the gold coins found is paint boxes spread like wild fire and all painters were buying the paints in huge numbers.

Next the marketing research organization suggested that the company should concentrates on the painter and his family. The painter ability to earn depends on the ability to paint as fast as possible. The company trained the painters in fast painting. They were given the latest tools and brushes. Once the painter was able to paint faster his earnings increased and he became loyal to the small company. Thus the company by its very unique customer relationship Management practices enhanced its brand image and ensured continual patronage from its target customers that is the painters.