A Paints and Coatings Manufacturer Increased Sales by 23% with Market Identification Engagement
Global Paints and Coatings Industry Overview The global paints and coatings industry is expected to grow at a considerable rate over the coming years. This is largely fuelled by increasing demand from both developed and developing countries. Additionally, surging economic growth, increasing demand from the construction sector, and the ever-growing market for consumer goods and [...]
Global Paints and Coatings Industry Overview
The global paints and coatings industry is expected to grow at a considerable rate over the coming years. This is largely fuelled by increasing demand from both developed and developing countries. Additionally, surging economic growth, increasing demand from the construction sector, and the ever-growing market for consumer goods and automobiles are expected to contribute to the paints and coatings market expansion. Despite the positive outlook, paints and coatings manufacturers continue to face an array of challenges. These include rising raw material prices, stringent environmental regulations, global economic uncertainty, technological constraints, and regulatory hurdles. As such, companies operating in the paints and coatings industry are in the need to take strategic initiatives to respond to these ever-changing market conditions.
Top Markets: The United States holds the largest share of the global paints and coatings industry, followed by Europe. The experts at Infiniti Research predict that the Asia-Pacific region will showcase explosive growth through 2022.
Business Challenges Faced
The client is a paints and coatings manufacturer based out of Germany. The client was planning to open a new production unit and establish its operations in the United States. However, the client noted that the closure of some production plants in the USA due to failures, maintenance work, and accidents resulted in the volatility of raw material prices. Also, the rising impact of volatile organic compounds (VOCs) and regulatory hurdles made it difficult for the company to expand their operations to the United States. The client, therefore, wanted to gather a comprehensive understanding of the cost structure in the US paints and coatings industry. Also, the client wanted to understand the key preferences of consumers from a brand recall standpoint. They chose to partner with Infiniti Research to leverage their expertise in offering market identification solution.
With Infiniti’s market identification solution, the client also wanted to address challenges including:
- Identifying cost-reduction technologies and strategies
- Complying with stringent environmental regulations and meeting consumer demands
- Understanding cost structure in the US paints and coatings industry
- Identifying key competitors, their positioning, and price points
- Identifying the niche market in the US to focus on to drive sales
- Focusing on product portfolio expansion and partnerships
- Understanding the technology adoption trends in their focus industry and identifying the changes that need to be made to compete effectively
Our Integrated Approach and Solution
By conducting 100+ interviews with market access leaders, strategy managers, marketing professionals, and financial analysts, the experts at Infiniti Research helped the client to gather in-depth insights into the US paints and coatings industry. Also, qualitative and quantitative market research was conducted to help the client gather insights into cost structure, business models, investment opportunities, and market developments in the US paints and coatings industry.
As a part of the market identification solution, the experts also helped the client to gather up-to-date data about risk factors involved in setting up new paints and coatings production units in the United States. In addition, the experts provided robust insights about competitors and their in-house and outsourcing models. The experts also provided the client with profiles and pipeline of players that are currently developing paints and coatings for the US. Besides, the client was provided with the complete algorithm and setup for the pricing approval process in the US paints and coatings market.
Market identification engagement also involved creation and mapping of the client’s opportunity from an R&D and competitive perspective. The experts also helped the client to develop a go-to-market and target company acquisition action plan.
With Infiniti’s market identification solution, the client was able to analyze the US paints and coatings industry with respect to market metrics and forecast its growth. Also, the client was able to gather comprehensive insights on the regulatory and competitive environment in the US paints and coatings industry. In addition to this, the client was able to develop a baseline understanding of the entire value chain and specified products in the market.
The experts also helped the client to identify various technologies being implemented by companies in the US paints and coatings industry and the main technology providers providing these solutions. Also, the challenges associated with obtaining certifications required to open a new paints and coatings manufacturing unit in the US was identified. Based on in-depth knowledge of industry practices, the experts provided the client with recommendations for market entry into the US paints and coatings industry, accompanied with strategic recommendations for market entry success.
In addition, Infiniti’s market monitoring analysis helped the client to successfully establish their business presence in the Mideast and Southeast United States. Also, the client was able to identify the niche customer segments to focus on to market their products. Also, the experts helped the client to create contingency plans to meet the unexpected changes in the prices of raw materials. By thoroughly understanding stringent environmental regulations in the US paints and coatings industry, the client was able to adapt to them. In addition, by understanding cost structure in the US paints and coatings industry, the client was able to efficiently price their products and focus on product portfolio expansion.
By understanding the technology adoption trends in their focus industry, they were able to implement similar technologies and enhance operational efficiency. Within two years of entering the US paints and coatings industry, the client was able to increase sales by 23%.