3.

0 Marketing Analysis
3.1 Porter's Five forces Analysis

Potential new entrants

Threat of Substitutes

Chances for new entries

are medium considering
the new technology.
But promotional activities
and quality of the product
gain customer base.

The available of substitutes

are very high.
None of the other paints
have the option of CO2
absorbing.

Rivalries

There are very low

rivalries in the market
since this a unique product.
Asian paints, CIC paints

Bargaining power of Customers

Bargaining power of Suppliers

Very limited choice for

customers in terms of
CO2 absorbing paint.
Households and Industrial
users are the main
customers.
B to B, B to C, B to G

Source: Author's Work

Figure 1: Porter's five forces analysis for the product

Chemicals like Decarbite

and Titanium Dioxide and
other specific ingredients
to absorb CO2 should be
included in the product.
Thus Chemical suppliers
have substantial bargaining
power.
Few suppliers

Above what is being illustrated is Porter's five forces analysis is a micro economic tool that helps
to assess the opportunities and threats of the organization's external environment

3.2 PEST Analysis

3.2.1 Political Environment

This new product has to go through the government tax regulations, Trade regulations and
employment laws. So those mentioned facts affect this new product and the stability of the
political environment is vital for the product.
3.2.2 Economical Environment

A good economical situation should be there in the market for the operations of this product and
these operations could be done efficiently if there is a good economical market for this product.
Factors such as Inflation, Unemployment rate and other related factors either directly or
indirectly affect to the product procedure.
3.2.3 Social and Cultural factors
Societal factors such as population growth, Job market trends, employment patterns, education
and the age groups are some of the facts that affect this paint. These factors are very crucial since
the product is new to the market.
3.2.4 Technological factors
Absorbing new technology for new product is very essential since it is paint it needs more
technology in various situations of the procedure. For instance for marketing the company can
use social media to do advertising and could be engaged in chemical reactions. So the
effectiveness of this technology to new product is very vital.

3.3 Market Share

Market share
2.70%

Major manufacurers
Others

97.30%

Source: Author's work based on study mode (2015)

Approximately 60 paint manufacturers are there in Sri Lanka. But there are 6 major paint
manufacturers who are controlling 97% of the market as illustrated in the above graph. Those 6
big players could be named as CIC, Lankem, Asian paints, Causeway, Silicon Coatings and
Macsons Lanka (study mode, 2015). Nature paint is the name of the new paint that is going to
penetrate the market. So this new paint is going to go to the category of others means a part of
that 2.7%.

3.4 Segmenting, Targeting and Positioning

There should be a position in the target market of segmenting market for the product. To
penetrate the market the product should go through this product. Because there has to be a
segmented market for the product to market whilst the target market is there to promote the
product with the positioning that gives a very brief idea about the product.
Briefly in segmenting part, determines which kinds of customers exist, then select which ones we
are best off trying to serve and finally in positioning part implement the paint's segmentation by
positioning the paint in the market (Perner, 2010).

Segmenting

Targeting

Positioning

Source: Author's work (2015)

3.4.1 Segmentation

Market of the nature paint has to be separated since there are many markets and need to figure
out which segmented market to be penetrated firstly. A market segment consists of a group of
customers who share a similar set of needs and wants. The marketers task is to identify the
appropriate number and nature of market segments and decide which one to target (Kotler and
Keller, 2012).
Various types of segmentation approaches are there such as Demographic, Geographic,
Psychographic and Behavioral. The way those approaches help for nature paint is being shown
below.

Approach

Demographic

Building constructers (B to B)
- Small scale
- Medium scale
- Large scale
-Private

limited

companies

(Sanken, Thudawe, Maga)

-Public companies

Distributors( B to B) (B-G)

Development through the ministers

and other authorized people in the
government (B to G)

Geographic

Psychographic

Behavioral

Urban areas (Colombo and others)

Proposed areas to build up flats

Trade zones

Eco friendly buyers

Innovative companies

Modern families

Cost saver

Loyalty to the product

Specific buying behavior

3.4.2 Targeting

When the segmenting is done, the next step is to figure out the market where the requirements of
the customers meet the attributes of the product. The target market could be identified as a
specific group of people that was chosen from the segmentation to cater.
So based on the segmentation, the primary target market would be business to business market
while business to government be the secondary target market. In business to business we supply
the nature paint to the building constructors.
There are poor people in the cities and villages. Government has proposed to build flats for them.
So our secondary target is to cater to this market since the nature paint has certain benefits and
solutions for urbanization. The facts of following charts would give a brief idea about the
Primary and Secondary markets. These mentioned projects are just a few of those respected
companies has initiated.
Nawaloka Ongoing Piling projects

1. Client- Taj Airport Garden Hotel

Construction of Pile Foundation for 10 MW Wind
power plant at Udappuwa, Puttlam.
Contract value: Rs. 80,985,325.00.

2. Client- Powergen Lanka (Pvt) Ltd

Piling works for Construction of 216 Housing Units
(Phase 1, Stage 1) at Sala -mulla- Kolonnawa.
Contract value : Rs. 60,875,672.25

Author's work based on Nawaloka Pilling (2015)

Tudawe current projects

1. Housing for underserved - Colombo 14

-Construction of housing for relocation of underserved
settlements.
- 546 housing units in 12 storied building
- Low cost housing blocks

2. Lanka Hotel and Residencies (Pvt) Ltd

- 24 level building
- 300 rooms with 2 basements

Source: Author's work based on Tudawe brothers website (2015)

MAGA projects

1. Hyatt Regency Hotel

- 45 storey building
- 475 rooms, 54 suites, 265 king rooms, 150 twin
rooms
-Floor area 1, 110, 000sqft
- Pool with a pool deck in the 11th floor

2. Clearpoint residencies
- Sri Lankas first sustainable high-rise apartment
complex.
- Worlds tallest residential vertical garden.
- 47 storey building
- 164 apartments
Source: Author's work based on MAGA website (2015)

Government projects (as secondary market)

1. Proposed housing project for middle income

group at Kakiribokka.
- 18 housing units
2. Housing project at Maradana
3. Damduw-watta Housing scheme

Source: Author's work based on NHDA (2014)

3.4.3 Positioning
Positioning is about affecting consumers'' perceptions of the product. This usually means
designing the marketing message so that the product is perceived to be (Mohommed et al., 2003).
Under positioning the 4Ps plays a big role that states Product, Price, Place and Promotion. The
positioning of the nature paint in the market is shown below.
CIC paints

Dulux

Price
Nature paint
Robbialac

Quality
Low price low quality paints

Source: Author's work

3.5 Marketing mix

3.5.1 Product

Product is the first element of the marketing mix. Any good or service that caters to a market
could be recognized as a product. So the Nature paint is an eco friendly paint unlike usual paints.
There are few features this paint has and those are as follows.

Eco- friendly paint ( Carbon absorbing)

There is a byproduct called Limestone

This paint has the ability to clean the surface by itself

Since this is a new product and customers are unaware of this, it can be called as an unsought
product.
3.5.2 Price

The pricing is the most vital element of this mix as of the product has to have a price to go to the
market. The pricing strategy of this product is competition pricing that means price the product
comparing to the prices of the other products in the market.
3.5.3 Place

This is where the company is going to check how the product is going to the target market. The
company sells its paint in bulk since it targets for B-B and B-G projects. Distribution of the
paints will be done through a third party in whom the third party gets paid from our company for
the distribution. The procedure is being shown below.

Proceed the order

Get a third party to distribute

the products

Nature Coatings pvt ltd.

Distribution of the products

to respected places

Source: Author's work

Business party/ Government

party order paints

3.5.4 Promotion

In this segment, the company's communication to its customers is done through this. The
product's features and benefits describe to the customers through the promotion. Product
awareness with wholesalers, retailers, suppliers and others is made through various
communication tools. Communication is the main weapon to persuade the customers to purchase
the products. Generally popular tools are advertising, sales promotion, public relation and
publicity, sales force and direct marketing (Arachchige).
Online Promotion

Offline Promotion

Social media

Magazines and Newspapers

E-mail marketing

TV advertisements

Online newspapers

Yellowpages

Online ads

Press Release
Billboard advertising
Source: Author's work

3.6 SWOT and TOWS analysis

SWOT is a good tool to identify Strengths, Weaknesses internally and to examine Opportunities
and Threats of the external market. TOWS analysis, the opportunities and threats analyze firstly
and strengths and weaknesses examine accordingly.
Strengths

Weaknesses

1. Carbon absorbing paint

1. Lack of

customer knowledge

2. Choice for colors

about the paint

3. Latest technology to

2. Doubtfulness of the customers

manufacture the product

3. Third party for distribution

4. Limestone
5. Quality products

Opportunities

SO strategies

WO strategies

It reduces the air pollution with

1. Express urbanization

Make customer aware of the

2. Increment of new projects

the use of the nature paint along

product

3. Invest more money on the business

with

promotional tools.(W1,O5)

4. Expand the target market

urbanization.(S1,O1)

5. Improvement of the promotional

tools

Threats

the

express

Capability to expand the target

Invest

more

money

market through quality products

for

(S5, O4)

paints.(W3,O3)

Get over the substitutes by

many

on

the

business and buy some vehicles

ST strategies

1. Many substitutes in the market

through

distribution

of

WT strategies
Clear the mind of the customers

2. Price increasing on Chemicals

increasing production of the

about

3. Economic instability

CO2 absorbing paint. (S1,T1)

through to a leading company in

4. Lack of executing on government

projects
Source: Author's Work

the

product

the market. (W1,T1)

and

get

3.7 Competitor Analysis