Product Repositioning and Distribution Strategy
The Client: A global manufacturer of specialty coatingsBack to Case Studies »
The client's market share of premium pool paints was being eroded by lesser quality, lower priced products. The goal was to protect their market share yet still maintain their current pricing structure.
We conducted a comprehensive competitive and distribution review in both the specialty paints and mass retail markets to create an integrated product/distribution strategy.
A three-tier product strategy was developed which included the original premium paints, a new contractor line, and a new DIY line to compete with low-priced competitive products. Premium and contractor lines would sell exclusively in paint specialty stores and the DIY brand would be offered through mass retail as well. All lines were supported with new packaging, which identified a three-step application system.
The client was able to maintain existing distribution levels and pricing strategy while directly addressing the new threat from low quality, low priced products. They also increased their presence in the mass retail market. The three-tier product strategy pushed price points up and their customers realized higher margins. Furthermore, the new three-step application system reduced the number of product performance complaints.