Nerolac Paints - “painting a Greener Tomorrow”

Nerolac Paints - “Painting a Greener Tomorrow”

Kansai Nerolac Paints is the largest in Industrial Paints and second largest decorative paint company based in Mumbai. It is subsidiary of Kansai Nerolac Paints, Japan. The company was established in 1920 as Gahagan Paints and Varnish Company in Mumbai. It was later renamed to Goodlass Wall Pvt. Limited and then to Goodlass Nerolac Paints Limited. As of today nerolac is a subsidiary of Kansai Paints and is called Kansai Nerolac Paints.

Under the leadership of H M Bharuka, Kansai Nerolac Paints has seen a positive turnaround. They have extended their product range from homes to industrial products to automotives.

Market Mix

The Indian paint market is huge with estimated market size of around 17000 crore.The decorative market segment constitute 70% of the paint market. Reading future trends from the general Environment, Nerolac realized that they have to focus more on decorative segment to create s strong, sustainable brand at the same time they have to extend their position in Industry and Automotive segment. The company formed a strategy to roll out differentiated products in the decorative segment. To differentiate the product they came out with lead free paints for decorative segment followed by heavy metal free paints and low voc paints for Industrial segment. They positioned themselves in decorative paint segment and industrial segment, Nerolac is a voc and lead free “Healthy Paint” to protect you homes from harmful chemicals. Nerolac not only created innovative product but they also invested heavily in promotion and brand building.

In the beginning they had created a popular mascot – a painting tiger named Goody which was created initially to create an identity for the brand. They had impressive and catchy advertisement in form of jingle like “Jab Ghar ki Raunak Badhani Ho, Deewaron ko jab Sajana ho , Nerolac Nerolac” which got connected the brand well with the customer and their market share started rising. Nerolac went further and roped in celebrity Amitabh Bachchan for promoting its brand. Associating Big B with Nerolac improved and builds a strong brand image for Nerolac in Indian Paint market. Nerolac was originally positioning itself on beauty enhancing proposition. As per the trend in the paint market Nerolac also positioned themselves on colors like the market leader Asian Paint. A new advertisement featuring Big B with tag line “Ye Rang Jo Zindagi ko Chute he” was created. However this advertisement was too close to Asian Paint advertisement and customer got confused with the advertisement if it is for Nerolac or for Asian Paint. As they were not able to narrow the gap between itself and the market leader so they roped in Shah Rukh Khan to endorse the brand. In tune with global positioning of its parent Kansai