Achieving 15% Market & 8000+ Crore Revenue by “NEROLAC” with Disrupting Marketing Strategy

   
•     Team Digitofy
   
•     November 28, 2023

Nerolac Paints has established itself as a leading paint brand in India and one of the major players globally through a keen focus on innovation, quality, and customer-centricity. Their creative marketing strategies and adoption of new technologies have enabled them to stay ahead of the competition.

In this blog, we will analyze Nerolac’s marketing mix, understand its target audience, study its competitive landscape, and highlight the unique marketing strategies that have fueled its success.

About Nerolac

Nerolac is the flagship brand of Kansai Nerolac Paints Ltd (KNPL), India’s 3rd largest paint manufacturer, established in 1920 and headquartered in Mumbai. G.T. Jenson and F.X. Harrison co-founded it as The Gahagan Paints & Varnish Co. Limited, which was later branded as Goodlass Nerolac Paints after Jenson & Nicholson (J&N) Goodlass Wall Coverings acquired Gahagan and launched the iconic ‘Nerolac’ brand in 1955.

Over its 100-year legacy, Nerolac has established itself as a household name in the Indian paint industry with an extensive product portfolio spanning decorative paints for architectural and interior applications to heavy-duty industrial paints catering from infrastructure projects to factories. 

Under the guidance of Kansai Paints, Japan, Nerolac invests extensively in R&D and eco-friendly paint technologies while building an unparalleled distribution footprint through 50,000 dealers across urban and rural geographies. Its unique marketing innovations have established Nerolac among the most popular paint brands straddling retail and enterprise segments.

What’s New with Nerolac?

Recently, Nerolac launched ‘Colour My Space,’ an augmented reality mobile app that allows customers to visualize different paint shades on their walls virtually. This innovative offering has strengthened Nerolac’s tech-savvy and customer-focused image.

They’ve also ventured into the waterproofing and insulation solutions space to diversify their product portfolio beyond paints. Exciting times ahead for Nerolac and its customers!

Also, Watch Our YouTube Shorts Video on: Day 6 – Achieving 15% Market & 8000+ Crore Revenue by “NEROLAC” with Disrupting Marketing Strategy

Buyer Personas

Nerolac serves diverse buyer personas across retail and enterprise segments. Some of their key audience groups are:

1. Retail Homeowners: Mid to high-income urban households looking for premium decorative paints.
2. Professional Painters and Contractors: Nerolac offers special pro-packs with higher volumes sought by these B2B buyers.
3. Real Estate Developers: Nerolac provides customized large project and township painting solutions for this clientele with specialized needs.
4. SMEs and Industrial Buyers: Nerolac serves the painting needs of factories, warehouses, hotels, etc., with a specific industrial paint range.

Marketing Mix

Now let’s analyze the 4 Ps constituting nerolac’s marketing mix:

Product Strategy

Nerolac has a vast product range across categories:

• Decorative paints for home and office use like emulsions, distempers, primers, putty, and designer paints across budget and premium segments
• Industrial paints like epoxy and PU coatings for infrastructure, factories, warehouses
• Specialty solutions like waterproofing coatings, heat insulation paints, road, and floor coatings

They focus on quality, durability, eco-friendliness, and innovative offerings like the Senseo range of fragrant paints. R&D investments allow the introduction of novel products like metallic glaze paints, drywall putty, and advanced wood coatings.

Price Strategy

Nerolac uses a market-oriented pricing strategy with mid to premium positioning. Their prices are marginally higher than those of competitors, which aligns with their branding as a quality-conscious, aspirational paint brand. Several pricing tactics deployed:

• Volume discounts for dealers, distributors, and large project buyers
• Bundled offers during festive seasons
• Competitive pricing for industrial range to capture market share
• Additional charges for customized jobs requiring special services

Place Strategy

Nerolac sells through the following distribution channels:

• 50,000+ dealers across India’s urban and rural landscape
• Large network of distributors providing last-mile availability
• Exclusive counters in mega paint stores across metros
• Direct sales team manages B2B clients and large township projects

An efficient logistics network allows easy transfer of products, including specialized items like putty, which require climate-controlled transportation.

Promotional Strategy

Nerolac undertakes 360-degree marketing communication, including:

• Engaging TV ads positioning benefits like long-lasting colors, moisture resistance
• Targeted digital ads, campaigns, and contests to connect with younger online audience
• Influential brand ambassadors like Deepika Padukone enhance aspirational value
• Educational videos on YouTube guiding customers on achieving the perfect paint job
• Strong dealer ties through promotions like foreign trips for top sellers

Competitor Analysis

Nerolac competes with brands like Asian Paints, Berger Paints, and JSW Paints across segments. While Asian Paints leads the decorative category, Nerolac is considered a close second brand preferred for its quality and variety of paints. In industrial coatings, Nerolac leads the market through technical expertise. Nerolac strives to retain its competitive edge through constant innovations.

Unique Marketing Strategies

Some vital recent strategies that have fueled Nerolac’s market success include:

1. Colour My Space Mobile App: pathbreaking move blending AR and paint visualization
2. Targeted B2B Portfolio Expansion: new industrial coating solutions
3. Rural Market Growth Initiatives: improving availability through more dealers and sops
4. Young Connect Programs: partnerships with design colleges for co-creation

These initiatives have enabled Nerolac to appeal to evolving customer preferences, leading to sustainable growth. Through such marketing innovations coupled with a strong product range, Nerolac paints continue coloring the world, one wall at a time!

Final words

Nerolac Paints has established itself as one of India’s most innovative and customer-focused paint brands through its creative marketing strategies and constant adoption of new technologies. By analyzing their marketing mix across product, pricing, place, and promotion, we see how Nerolac crafts and communicates superior value to target diverse buyer groups, from retail homeowners to industrial clients. 

With initiatives like the Colour My Space augmented reality app, expansion into new product lines, and connecting with youth, Nerolac fosters enduring customer relationships. With its wise marketing and quality-conscious product range, this ability to always remain one step ahead of evolving consumer needs makes Nerolac a colorful leader in the paints domain today and well into the future.