The Psychology of color in purchasing decisions (inforgaphic)
Decorative Paint Marketing Presentation
1. Marketing Plan The PaintSampler Marcía Kichler Schuffman u06a1 Capella University MBA 6130 Marketing Capstone August 14, 2009 Cheryl Bann, Ph.D.-Instructor TPS
10. What’s the Process? Empty tubes shipped to paint co. where they are filled with neutral paint, ready to be color matched. Filled tubes sent to retailer who places them in sales area. Consumer brings tube to color matcher at the store with their desired color chip or swatch. Consumer pays for tube, goes home and immediately samples the paint on their wall- because they can! TPS
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12. No effect on the PaintSampler since we don’t manufacture paint.HOWEVER… *Eco-educated consumers want to buy only the amount of paint they need. tps
13. Competitors Behr Valspar California Paint Sherman Williams Benjamin Moore Price Points: $3.98-6.99/jar TPS
14. Market Penetration Pricing Strategy Convey to the 18-54 female DIY paint consumer this is a better value for sampling based on cost, time, effort and eco-friendly nature. Anticipated price point: $4.25/unit TPS
20. PaintSampler Upside Downside Bad Economy YES!! none Great Economy YES!! none Building increase YES!! none Building decrease YES!! none TPS
Notas do Editor
Introducing the PaintSampler. The ultra easy, ultra neat eco-friendly way to sample paint that saves time and money.
When the goin’ gets tough in the U.S. nowadays, the tough don’t remodel, they look for inspiration everywhere and start imagining what their dining rooms, their bathrooms, their bedrooms, their kitchens would look like painted in … Elephant Tusk… or Wild Orchid…or Honolulu Blue or Rocky Mountain Sky. But with so many colors to choose from, it takes a long time for a consumer to go through the decision process and then buy the paint they want.The color chips don’t help—they’re not accurate representations. Let’s face it, with thousands of colors, how can they be? To get a real idea of what the color will look like in the room, you’ve got to sample the paint on the wall before buying the full quantity needed for the project. The fact is, choosing colors and sampling paint can be overwhelming. It can lead to …
Painting inertia occurs when the perception of the inconvenience associated with painting, in other words, the hassle factor, overwhelms the consumer. They respond by not buying paint or paint supplies, essentially giving up on the project for the time being. In turn, that affects turn of inventory for the paint manufacturers and the retailers.
Here’s where the PaintSampler fills the consumer’s, the paint manufacturer’s, and the retailer’s needs by thoroughly removing the hassle factor. For the paint manufacturer and the retailer, it speeds turnaround of a larger inventory of paint. Plus it’s competitively priced with other sample sized jars of paint.It supports the consumer’s intention to begin a painting project by being portable, immediately usable, the paint is custom matched, it’s neat to use and special tools don’t need to be purchased. I want to point out that the brush is attached to the tube of paint. Simply start the paint flowing by twisting the cap to its “on” position. Turn it back around to its “off” position to stop the flow of paint. It’s that easy!
Looking at general research on the paint industry and the architectural & decorative paint marketplace, we see that growth will be flat for five years. The great news, however, is that it’s still a powerful and compelling $8.7 billion market. We are making the assumption that paint accessories will follow the consumer paint market trends. While the housing market is down in sales, paint sales have remained stable, underscoring our assumption that when the economic outlook is bleak, painting interior rooms is the easiest way to transform or perk up a room. In other words, people paint instead of remodel their homes.
Women make up the majority of painting decisions and about half plan on undertaking a painting project within the next year.
We send the empty tubes to our retail paint manufacturing partner. One of our employees, co-located within the paint company, fills tubes with different finishes of paint based on retail orders. For example, one batch may be for flat, another batch for eggshell and yet another batch for semi-gloss. Having us as an on site vendor will result in better quality control, reduced shipping costs and shorter turnaround time. It benefits the paint manufacturer by maintaining their quality standards.Assumption #1 is that the consumer will want to purchase multiple PaintSamplers because they are comparing different colors. Assumption #2 is that they will purchase another PaintSampler in their final color to use later as a touch up for the dings and scratches that inevitably occur from daily living.
The Environmental Protection Agency has instituted regulations regarding volatile organic compounds that will take effect in 2011. The PaintSampler does not manufacture paint-we work with our partner’s paint and brand by co-branding our packaging with their name.Consumer awareness of environmental issues such as VOCs and proper paint disposal underscore the consumer desire to embrace eco-friendly products, particularly if it doesn’t take a lot of effort or money.
Most paint companies with consumer branding have sampling products in jars or cans however the number of colors available in retail stores is limited because it’s not profitable to carry every color.With the PaintSampler, every tube is color matched to the consumer’s need. It can be used immediately, it’s tidy and it’s self-contained needing no other special tools to apply the paint to the wall or space.
The pricing strategy is based on upon a combination of competitive pricing, cost of goods and the understanding that consumers have been trained to be value oriented.
Unlike the lovely logo used on the prototype of the PaintSampler, the actual logo and packaging will be professionally designed and will integrate with all promotional tactics. Advertising will likely involve co-branding with the paint manufacturer(s). Point of Purchase displays will hold the tubes and have tri-fold collateral explaining how to use the PaintSampler.Sales Promotion will revolve around the website and will include contests and couponing and tie in with the paint brand(s). We will use meta data that will ensure that searches for paint, decorating, craft projects, decorating projects will bring us up. The focus of the website will be support for a community of PaintSampler users. Couponing will be used for retail employees to promote the PaintSampler as product demonstrations are done at retail sites. Press Kits, blogging and Twittering about events, demonstration sites, experiences will all be used with the purpose of informing both consumers and the media. Direct marketing will include email promotions, website forums and possibly web-based sales of 3Packs of Paint Samplers. These 3Packs will be samples of 3 paints that color gurus have chosen for their compatibility. This would have to be in conjunction with our paint partner. Another possibility is the online sale of an Idea Book showing successful paint projects.Personal Selling will occur when selling and maintaining relationships with the paint manufacturers as well as retailers.
There are few products that do well no matter the economic climate and the PaintSampler is that product since we know sales in the residential paint industry remains stable in good times or bad. We are looking for equity partners that will share in our successful launch of this brand. Are there any questions?Thank you for your attention to this presentation. Please note that this presentation is available digitally and all information and data references are available in the Marketing Strategy Plan.
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