PROJECT TOPIC: marketing strategies of paint industries especially saclux paint industry in Umuahia Abia State.
1.0 BACKGROUND OF THE STUDY
Survival is probably the most basic direct or indirect motivation for all company actions. No company is in business to fail. Business generally is a risk and the business environment is ever dynamic that it will be unwise in the extreme for a company not to plan for possible future strategies for the product, which make the operation of industry viable.
Many people do not think of satisfaction, stability, security and success any longer, but they are mainly concerned with survival and the standard of living continuous to increase, due to this situation manufacturers now find themselves in the buyers market. It is slightly easier for manufacturers of food and beverages than manufacturers of decorative and specialty products. Hence good and healthy environment is said to be important in one’s life.
The outward appearance tells more of the inner appearance and cleanliness is next to Godliness. It is unwise to think of survival as regards to food and clothing without considering individuals environment, as how neat the buildings are kept decorating, these does not mean beautifying the building only but is a way of presenting the appearance of the building to fight against organic growth such as fungi and algae.
The product under the brand name Saclux paints are in great demand by individuals, welders, contractors, Architects, state, local and federal government.
Apart from the importance of paint in a structure and the important of survival through food and clothing in an individual it would be important to ask? How do manufacturers and industries survive? Are they in fact drying or growing? Do individual and private sectors still think of building or constructing new project?
Building decoration are not limited to paints alone but it extend to wall paper decoration and floor, paint adds warmth and beauty to a room by providing fine colours.
Saclux paints think it business wise when they adopt marketing strategies that would enable them complete favourably with other companies in the industry, they make use of distributors and depots in marketing their paints they also sell to the same group of people.
The intention of this study is to investigate the marketing strategies of paints industry a case study of saclux paints.
Goals indicate what a business unit wants to achieve, strategy is a game plan for getting there. Every business must tailor a strategy for achieving its goals, consisting of marketing strategy, a compatible technology strategy and sourcing strategy.
Michael porter has condensed marketing strategies into three generic types that provide a good stating point for strategic thinking over all cost leadership, differentiation or focus.
- Overall Cost Leadership: Here the business works hard to achieve the lowest production and distribution costs so that it can price lower than its competitors and win a large market share, industry pursuing this strategy must be good at engineering, purchasing, manufacturing and physical distribution.
PROJECT TOPIC: marketing strategies of paint industries especially saclux paint industry in Umuahia Abia State.
They need less skill in marketing. The disadvantage of this strategy is that other industry will usually emerge with still lower costs and hurt the firm that vested its whole future on being low cost.
- Differentiation: Here the business concentrates on achieving superior performance in an important customer benefit area value by a large part of the market. It can strive to be the service leader, the qualify leader, the style leader, but it is not possible to be all of these things at the same time, the industry cultivates those strengths that will contribute to the intent differentiation.
Thus the industry seeking quality leadership must use the best components, put them together, inspect them carefully and effectively communicate its quality.
- Focus: Here the business focuses on one or more narrow market segments. The industry gets to know these segments intimately and purses either cost leadership or differentiation within the target segment.
According to porter, those industries pursuing the same strategy directed to the same target. Market constitute a strategic group. The industry that carries off that strategy best will make the most profit.
Industries that do not pursue a clear strategy, climax paint industry fall upon hard times because it did not stand out in its industry as lowest in cost, highest in perceived value or best in serving some market segment.
Cliff paints try to be good in all strategic dimension but because strategic dimensions require different inconsistent ways of organizing the form, these industry end up being not particular excellent at anything.
“What is strategy” porter draw a distinction between operational effectiveness and strategy. Many companies believed that they can establish a long lasting competitive advantage by performing similar activities better than their competitors.
But today competitors can rapidly copy the operationally effective using bench marketing and other tools thus diminishing the advantage of operational effectiveness.
Porter defines strategy “as the creation of a unique and valuable position involving a different set of activities”.
A company that is strategically positioned “performs different activities from rivals or performs similar activities in different way”.
Saclux paints located at Amuzukwu in Umuahia have distinctive strategic consisting of many different but consistent and synergistic activities, that would be heard for competitors to imitate as a whole. Being a privately owned company activities is under control by the owner so that their direct competitors like B hoc paint, Oscar paints, Cliff paints, will not emerge with their method bind over throw them.
Saclux paints think it business wise when they adopt marketing strategies that enable them compete favourably with other companies in the same industry. Other industries who did not adopt these have been suffocated by saclux paints, they loss market share and their product loss business bearing.
It is common for the owners of the business to trace their business to low sales volume, which means that their marketing strategies are neglected and not co-coordinated. Marketing approaches adopted, the collapse of business is almost imminent; also acquiring of new production techniques, thereby neglecting the marketing strategic function.
The end point centers on the fact that, for a firm to actually record success. It has to monitor and always analyze the marketing environment, if it is to determine the needs and wants of the consumers and produce to satisfy their wants for a profit. Any negligence of this fact can threaten the continuous existence of the entire business set up.
Saclux paints applies the differentiation strategy in which their product offering is different from that of one or more competitor, in a way that is valued by customers this value affect customer choice and ultimate satisfaction.
The method use includes:
- By means of additional ingredient or components to the product.
- Through product offerings and better packaging.
- Through product combination example santex, oil, Emulsion.
- Provision of quality and reliable distribution channel.
- Adequate promotional tools e.g. using promotional jingle.
Characteristics of successful differentiation strategy should:
- Generate Customer Value: In this case the key to success to develop the point of differentiation from the customer’s perspective rather them from the operational perspective of the business, the customer should be able to observe the strategy or can reduce cost, increase performance and satisfaction there by meeting with unfulfilled needs and the value added will justify the price premium involved.
- Provide perceived value: The add value must be perceived by the customer and communicated effectively to him. Hence branding the added value is a good way of making sure memorable, meaningful and believable. It will make customer to evaluate the perceived value of the product and avoid that problem associated with the inability to notice the added value.
- Be difficult to copy: It is very important to create differentiation strategies that are difficult to cope. If the points of differentiation involves the entire corporate management and organization, it will be difficult and expensive to copy especially if it has a dynamic, constantly involving quality.
Source by D. AAKTER (1998) a successful differentiation strategy. Strategies also involves creativity, an organization approach an assignment by learning about the client’s product or service, the target market, the competition, and any other relevant background information.
The creative specialist should also be knowledgeable about general trends. Conditions and developments in the market place, as well as research on specific advertising approaches or techniques that might be effective. The creative specialist can require background information in numerous ways. Some informal fact finding techniques have been noted by Sandra morisirty.
- Reading anything related to the product or market example books, trade publications, general interest articles, research reports, and the like.
- Asking everyone involved with the product for information designers, engineers, sales people, and the like.
- Listening to what people are talking about. Visit the stores, mills, restaurants, and even the agency cafeteria can be informative.
Listening to the client can be particularly valuable, since he or she often knows the product and best market.
- Using the product or service and becoming familiar with it. The more you use a product, the more you know and can say about it.
- Working in and learning about the client’s business to understand better the people you are trying to reach, called from: Advertising and promotion, fourth edition by George E. Belch and Michael A. Belch page 249.
Hence using Saclux paint as our case study one can see that throughout the operations of saclux paint in product building industry, it can boost of a wide range of paints storage and colour among which I shall mention.
RANGES OF PAINTS AND COLOURS OF SACLUX
SACLUX EMULSION PAINT: This product is an interior and exterior wall paint. It gives rich mat finish, which is tough as well as beautiful. It is resistant to scrutiny or scrubbing and is ideal for all; it serves the interior and exterior walls and ceilings.
COLOUR RANGE: Saclux emulsion paints is in various colours i.e. white, magnolia, light cream, beige, sea-silver, spray green, mild stone grey, lovat green, orpiment, minimum, pall grey, light blue, black etc.
This product has an excellent shelf life when stored at normal temperature in closed containers. However, once the container has been opened the content should be used as quickly as possible. It is packaged in four (4) litre container and twenty (20) liter container.
SACLUX GLOSS FINISH: This is a light base paint, highly pigmented to give a good protective and decorative finish.
COLOUR RAGE: White, magnolia, beige, light green, pall grey, blue and brown etc. This product has an excellent shelf life when stored at room temperature. It is package in four (4) litres container.
SACLUX TEXTURED: Is an already mixed exterior and interior spray applied decorative finish, which will not peel when correctly applied to a suitable backing.
COLOUR RANGE: This product has a colour range of white, magnolia, light cream, beige, pale grey, mid-stone, stone grey, covat green, sienna, etrusen red, dart mushroom, olive drab etc. It is available in (4) four litres and twenty (20) litres containers respectively.
TROWEL: This is already mixed exterior and interior decorative trowel- applied finish, which is whether, proof, durable and had exceptional adhesive properties. This product should be sound, clean and dry and be of good alignment with a far face. It is protected from frost and is kept below 30oC (86op) during storage in transit and on site. Containers are always kept on tight. It is packaged in 25kg polytene tined drums.
COLOUR RANGE: White, magnolia, light cream, beige, sea-silver, spray green, mild stone, stone grey, lovat green, sun yellow, sienna disky pinic, dark mushroom, olive drab, light blue, solent blue, paly grey, if ordered specially, the following colours can be manufactured ganabar, forest green, and black, it is packaged in 20 litres drum.
PROJECT TOPIC: marketing strategies of paint industries especially saclux paint industry in Umuahia Abia State.
FINE BUILD: This product, fine build, has the following range of colours; white, magnolia, light cream, besiege, spray green, mild stone, covat green, blue and dark mushroom. It has an excellent shelf life when stored at room temperature in closed containers. However, once the container has been opened, the contents should be used as quickly as possible. It is supplied in 20kg containers.
CEM WASH: It is cement based decorative product specifically formulated to replace rendering and decorating by one operation. It is time saving, inexpensive and duration, when dry, it forms a rock-hard coating with remarkable waterproof qualifies. It can be used inside or outside, protecting the building and at the same time improving its appearance.
COLOUR RANGE: Mild cream, pink, tena-cotta, light green, mild blue, shirry, pale grey, dove grey, champagne. It may be subject to change due to age and no responsibility can be accepted for colour variation. It is supplied in 20kg, 5kg, paper bags.
COLOUR CRETE/TYROLEAN FINISH: This product is bold textured cement based. It is coloured Portland cement, using BS 104 pigments, which satisfies the requirement of B. S 12 Portland cement specification, when mixed with sand and water it is applied by simple hand operated machine, it creates an ‘open’ textured honey combed (Tyrolean) finish which does not craze or readily absorb morstive.
COLOUR RANGE: Ivory white, light cream, cream yellow, orange, khaki, bulf, brown, pink, red, terra, light green, aroma green, blue, (not recommended for exposed condition), silvery grey, French grey. It is packed in 20kg bags. The storage may not exceed six (6) months.
OIL PAINT: These are paint used for the painting of vehicles, iron doors, frames some people use it for house, is more resistant to water more than emulsion and tex coat. All these and other paints are found in the paint industry and are marketed, similarly by the firm/companies in the paint industry.
COLOUR RANGE: Green, yellow, orange, grey green blue, brown, red etc. It can be mixed with one litre of kerosene to 5kg of the paint. It is packaged on 5kg and 1kg tin and plastic. It is not recommended for an exposed condition, etc.
1.1 STATEMENT OF PROBLEMS
Since the dawn of industrialization in Nigeria, commercial organization and manufacturing industries are threatened with extinction as never before. Many firms are folding up rapidly, judging from the rate at which new corporations spring when compared with the situation in the past three decades ago, one would know that the existing corporations are struggling tooth and nail to thrive.
This survival of the fittest is also experienced in the paint industry. This problem could be best seen from the saclux paints limited. The first problem facing the company is the scarcity of the raw materials, which are mostly imported from abroad. About 70% of raw material needed by saclux paints are imported.
The imported products include red oxide, bloxide, defoamer, mica, fungicide etc. There are also the problems of import license, to exchange currencies posses a problem to the company. In most cases, after securing the import license, the raw materials do not arrive quickly from abroad.
There are numerous marketing and distribution problems facing the company, the transportation problem in the country affects the distribution of the product due to bad roads. This delays the distribution of the product at the right time.
The problem posses a lot of stress to the sales team because there might be a high demand for such product at a particular time and it may not be available.
There are also problem of competitors, both within and outside the industry. Some competitors within the industry produce similar products and use similar marketing strategies. All these posses a problem to saclux paints industry.
1.2 PURPOSE OF THE STUDY
The major purpose of the study was to determine the marketing strategies of paint industries especially saclux paint industry in Umuahia Abia State.
The study was to:
- Identify the types of strategy of the paint industry (saclux paints) in marketing of their product.
- To suggest means through which saclux paint may get more markets.
- To identify distributive strategies that could be available in distribution of paints.
1.3 SCOPE OF STUDY
During the course of my research, I found out that producers of paints are scattered throughout the country and it would not be possible for me to cover all of them in this study. Hence, the entire paints producer uses the same marketing strategies and faces the same problems operate under the same economic, legal and socio-political environment.
Umuahia being the base of this study, it could be found out that there are more than 100 (hundred) manufacturers that could be regarded as mushroom producers because no specific place can be regarded as their manufacturing plant. People just dabble into the business and fall out as they entered without gaining a strong hold.
1.4 THE NEED OF THE STUDY
This study is needed because the student gains insight into the marketing strategies in the paint industry. Also it enables the students to know the problems and how to tackle such problems in future when he/she might decide to go into practice. It will also offer the student the opportunity to make suggestions on how to eliminate any deficiency when called upon during the course of his/her
The research encountered some constraints in the course of this research project, which militated against the progress of the work.
The researcher being a graduating student and as such had to battle with time constraint as the research project was conducted simultaneously with academic work. Equally of importance is the problem of fund to carry out the project as expected
The scopes of study are companies in Nigeria, which required a huge sum of money to reach an appreciable number from every geographical area. Also the researcher faced the problem of high and exorbitant transportation cost and a great risk of traveling from place to place.
Although all companies manufacturing paints lack adequate data stored to aid the research and when they exist they are not found in the required form. the researcher considers this as a major constraint.
Most private owned companies maintain a high level of secrecy, which the researcher saw as a limitation to proper research, saclux paints are so restrictive and selective in giving out information. They feel very uncomfortable answering questions and are suspicious of the motives of the research work.
Hence, another important limitation is the disturbing fact that Nigerian business maintains a long claim of unnecessary official protocol in their operations.
This affected the volume, variety and quality of data collected and equally reduced the enthusiasm and excitement generated by the research work, most workers in Nigeria are officious, full of pride and do not give adequate attention to visitors.
Some of the key officers/managers needed to give information were not available when they were visited and even otherwise they give one excuse or the other of not to attain to the researcher. Hence some of them are unwilling to disclose their marketing strategies thinking that we might capitalize on them.
1.6 DELIMITATIONS OF THE STUDY
The research encountered some other problems, which are caused by uncontrollable factors in the environment. These are problems, which are posed by nature and uncertainties of business.
One of such constraint is the fuel crisis. The research work was hit by the crisis, which increase the transportation cost. The cause is due to damage at Port Harcourt depot.
Another constraint is that the research was conducted during the rainy season. The rains disturbed the progress of the work, as the researcher could not meet up with some appointment. Equally transportation difficulties was compounded by the rainy season as the location was inside village where erosion has damaged most of the road which are not tied, motor cyclist charges high fare.
Hence this study is mirrored from the experience of saclux paints located at Amuzukwu Umuahia and some distributors and manufacturers in the town.
1.7 HYPOTHESIS STATEMENT
- There is a great difference between the marketing strategies of saclux paint limited and other paints industries = Hi.
- There is no difference between the marketing strategies of saclux paint limited and other paints industries = Ho.
1.8 RESEARCH QUESTIONS
This study sought answers to the following research questions:
- What are the marketing strategies of the paint industry?
- What are the distribution problems of the paint industry (saclux)?
- What are the means through which saclux paint can get more markets?
1.9 DEFINITION OF TERMS
PRODUCT: A product is anything that can be offered to a market for attention, acquisition, or consumption. It includes physical objects, services, personalities, places, organizations, and ideas (Kotler 1976:183). Also, Anyanwu (1993:34) quoting Busch and Houstin (1985) states “a product is anything capable of satisfying a consumer want or need”.
STRATEGY: Glueck (1976) defines it as a unified comprehensive, and integrated plan designed to assure that the basic objectives of the enterprise are achieved. Strategy is the blueprint of all the important entrepreneurial, competitive and functional area actions that are to be taken in pursuing organizational objectives, and positioning for sustained success. (Thompson and Strickland, 1984). Although the first institution to engage in strategy was non-profit making organization- the military, profit-oriented organizations seen to show faster appreciation of its characteristics, perhaps because of the urgent need to continuously remain competitively balanced in today’s ever-dynamic business environment.
DIFFERENTIATION STRATEGY: A differentiation strategy is the one, which a product offering is different from that of one or more competitors in a way that is valued by customers. The value-added should affect customer choice and ultimate satisfaction.
COLOUR: A visible quality that objects have produced by the way they reflect light. A particular type of this are: Red, orange, green and purple are all colours.
Colour Range: It is how the colours vary or extend between one another like green, yellow, orange.
Managers: The person who provides an organization with leadership and who acts as a catalyst for change (Downey and Trockey, 1981
Constraints: Something that limits or restricts actions (Cowie 1989)