Proper communication in the process of marketing architectural paints can make the difference between a successful product and a conventional one. Keep in mind that in this segment the purchase decision is made by the end user.
by: Claudio Fazzone*
What are the objectives we seek when developing new products: to improve existing products (in terms of quality, cost improvement, processes, others); offer innovative products, have alternatives to competing products. Surely we will agree that these should be among the most common when starting new developments, but the next question we must ask ourselves is which of these objectives represents a real need for the consumer?
It is common for many companies to start product development in the technical area. The important thing in this case is to know how the process begins, part of a specific request from the commercial area? Are consumer and market needs being considered? Does it respond to needs for cost and process improvements? Are they the result of new trends?
The starting point of development is a key factor in determining the potential success of the new product; in turn, by itself a good development process does not guarantee results and it is increasingly necessary, when proposing a new product, to consider all the stages in which we have to work so that each new proposal can be chosen by the final consumer. From formulation to display at the point of sale there is a long way to go that needs to be planned, stage by stage, to ensure good results.
Starting Point: The Development Brieff
At the time of starting a development process, the technical area must have a development brieff in which the objectives of each of them are clearly determined.
This brieff, or requests / development requirements, must be prepared by the different areas according to the needs of each of them. Generally the largest number of requests will be made by the commercial area, but also the areas of production -when requesting changes to improve processes-, purchases -before possible changes of suppliers of raw materials-, finance -when requesting increase in profitability / reduction of costs-, are also demands of new developments.
Therefore, it is very important that before each new request to the technical-laboratory area, the objectives of the same and the expected results are clearly specified: the contributions that this new development will produce for the company and for the clients.
The subsequent step to this Brieff is the discussion of it, this would be the first formal step that the technical area must perform to unite criteria between the different departments.
Within the industry, and not only in painting!, we have seen decisions made about new launches or modifications to the product line of companies that, because they have not been previously discussed between the different sectors, have caused more than one headache.
We point out as common cases the elimination of presentations of smaller sizes for "unproductive", only from the gallon (4 liters in other markets) in latex and 1/4 gallon (1lt.) in synthetics. This measure, which was undoubtedly taken to optimize productivity and profitability, has an origin in the areas of production and finance, but what do the commercials think?
In this case it was seen, as a result of this lack of presentation offers, that a competing brand that did not have offers in the marketing channel began occupying spaces with a wide development of presentation of lower volume. Over time it grew in this segment, and with larger presentations. Once the door is opened...
On the other hand, and as a counterpart, the excessive breadth of line by capacity, colors and finishes that commercial areas usually demand, end up producing inconveniences of profitability, rotation, productivity and, very common, lack of stock.
There are also cases where products already positioned, and that have a good level of acceptance, suffer those that are considered "small changes" in the formulation as a replacement for suppliers of raw materials. Since they are "small" changes, the usual thing is not to communicate it so as not to generate negative expectations, but we know that the alteration of products, especially those that already have great acceptance in the market, are perceived by the consumer.
On a personal level I have had to participate both in conversations with clients, as well as in conversations and research with professionals, architects / masters / painters, where it was mentioned that the product was not "the one before", that it did not have the same covering power, or that it was not the same "white".
The commercials, who were the first to hear these types of complaints, came out to deny the sayings arguing that in no way had the product been modified, which were misperceptions. But when the comments were so repetitive, and repeating the arguments of the customers, we went to investigate the production area finding, oh surprise!, that a small change had been made for replacement of supplier.
One could in this situation "blame" the production area, but the real culprit is the culture of the company, the absence of internal communication that causes decisions to be made without consultation. Ideally, if it is necessary to make changes, you have to evaluate them, have a broad vision of the problem and its effects, interacting with the rest of the areas and from this make a decision. In this way, in similar situations, the company will give answers in a homogeneous way, the commercial will be able to explain the reason that originated this situation and the possible solution to the problems caused.
The credibility of the company and the valuation of its products are the most difficult aspects to conquer, the lack of internal communication and not maintaining the focus on the customer can harm them.
Cases: privileging what the consumer values
Many of the new developments do not start from where it should start: the product and marketing area. Although this is changing, there are still cases where at the time of developing, or naming the products, it is done from a technical conception. Thus we see how soon products that can be successful do not reach to be so by the fact that at the time of promoting them was not thought of benefits for the consumer and yes to highlight the technical attributes, which are often understood by the general public.
Exemplifying these cases, call a product as glycerophthalic enamel, in relation to its binding resin, instead of highlighting the real benefit: "greater hardness", "scratch resistance". You have to go far beyond the qualities of the product, because otherwise the consumer will find it difficult to memorize the name and recognize its advantages.
Another case like the previous one is the development of a brand with a product that was called Zirconium Latex without focusing on the benefits of resistance and covering power. The product failed to consolidate despite its good quality.
On the other hand, as successful examples, we mention how an appropriate product designation contributes to its success. This case was the one that occurred with one of the leading brands in the Argentine market that began to use the denomination synthetic enamel instead of alkyd enamel. This change in the denomination, plus the benefits of the product, caused among other things that this company became a leader in this segment.
Another example of success in the market was given with the name of the products that fulfill the function of being converters, antioxide and enamels. Simultaneous, Magic, 2 in 1; 3 in 1; Triple action, etc. are denominations that far from highlighting technical aspects, much discussed by the way, represent the clear advantage that they have for the consumer: to do in one step what is usually done in two or three.
In this way we see how a product whose name is difficult to pronounce or understand for the customer will have sales difficulties. Products that are clear in how to communicate tangible attributes clearly will have a better chance of success.
In the next notes we will develop the aspects that make the development of products in terms of the aspects of marketing, communication and the point of sale.
* More information: www.venmark.com.ar and in [email protected]
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