PINTURA CORPORATION - THE LENA LAUNCH - by Group 4

PINTURA CORPORATION-
THE LENA LAUNCH

Group 4
Tusar Kanti Giri
Ranganathan
Nibedita Shome
Rini Rafi
Arjun Savi
About Pintura Corporation
 IFG ( Industrial Finishes Goods) contribute ~25% of
 Headquartered in Midwestern United States
Pintura’s sales
 Product - High quality paint, coatings and related
 Product - solvent, water and powder
products
 3 types of substrates – plastic, wood and metal. Wood
 20 brands, 600 line items
contributes ~65% of total IFG sales
 Annual Revenue = $4 bn
 Annual Revenue = $1 bn
Annual Sales by Division IFG Sales by substrates
[PERCE [PERCEN
NTAGE] TAGE]
[PERCE Consumer Products Group (CPG)
$ 1.0 b $ 150 m
NTAGE] [PERCEN Plastic Metal
Pintura International (PI)
$ 1.4 b TAGE]
Industrial Finishes Group (IFG) [PERCEN $ 200 m Wood
TAGE]
[PERCE $ 650 m
NTAGE]
$ 1.6 b
IFG’s new product – LENA !
 Powder based
 Higher durability, versatility, environmental friendliness as compared to water or solved based product
 Cost – Higher material, equipment and training cost
 Growth – 10% annually as compared to water ( 0%), solvent(decline)
Product type Pricing Selling price COGS IFG IFG Con % Wastage Effective Cost
(per unit) Contribution
Solvent based $ 28.00 $ 14.28 $ 13.72 49% 20% $35
Water based $ 34.00 $ 21.08 $ 12.92 38% 34% $41.5

Powder based (Lena) $ 38.00 $ 22.04 $ 15.96 42% 38% $39.2
Lena may turn to be less profitable as compared to Solvent based but more profitable than water based and may also
cannibalise water based products!
IFG’s Distribution cost
DISTRIBUTION COST
Direct Sales Indirect Sales
Segments Revenue % Sales Selling Cost % Sales Selling Cost
Furniture $ 195.00 60% $ 117.00 $ 8.19 40% $ 78.00 $ 16.38

Flooring $ 162.50 35% $ 56.88 $ 3.98 65% $ 105.63 $ 22.18
Cabinetry $ 130.00 30% $ 39.00 $ 2.73 70% $ 91.00 $ 19.11
Others $ 162.50 65% $ 105.63 $ 7.39 35% $ 56.88 $ 11.94
Total $ 650.00 $ 318.50 $ 22.30 $ 331.50 $ 69.62
5.4% CAGR projected in 2022 after launch of
LENA with new customer acquisition
Annual Revenue after launch of LENA from shift of
customers from water and solvent Annual Revenue after launch of LENA from new
customer acquisition
$710.00
$700.00
$690.00 $800.00
$680.00
$600.00
$670.00
$660.00 $400.00
$650.00
$640.00 $200.00
$630.00
$620.00 $-
2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022
Annual revenue to touch $ 845.98 mn

What is in it for “LENA” users
◦ Complying to regulations – Buy Lena, save on the additional spending on equipment you buy to comply to environmental
regulations
◦ Quality , reliable product
◦ Lower product defects – The customers have different working environments, “LENA” is more effective
◦ Lower product defects, excellent properties, customer satisfaction, higher repeat orders
◦ Who should buy? – For businesses having customers operating in different environments
◦ Spend a little extra, save $10 for every $1000 spend*
* Assuming min 1% saving from the current level

What is the term New Product mean then ? New to who ,is it new to the market ( buyers have
ever come across such a solution ) or new to the company ,they have never made this before
◦ According to Peter Drucker, the renowned management guru, there are only two functions of an enterprise namely, marketing and
innovation. Even for a mere survival in a competitive environment a company must ensure that it constantly brings in new market offerings.
Ultimately, whether or not a product is new depends on the perception of the intended market. If the customers consider it to be
significantly different from competitive products or in some relevant characteristics like form, performance etc., then it considered as a new
product.
◦ The perceived “ New product” by a company may not actually be looked upon as a new product by the market. Companies should seek the
best method for New product development that is apt to their vision, resources and the market requirement considerations.
◦ Replacements that are significantly different : These are changes in existing products in terms of form, functions and most importantly
benefits provided. Based on Booz, Allen and Hamilton Framework the classification of new product is based on the innovativeness of new
products with reference to the company and the market.
◦ Significant improvements : These products are not born out of a major innovation but carry significant improvements over their existing
counterparts. Usually they have a greater perceived value in the market. They offer superior value and hence replace existing products.
◦ Short term Satisfaction
LOW HIGH
◦ Long term
High Salutary products Desirable products
consumer benefits
Low Deficient products Pleasing products
Why should a new product be developed ? Whose problem is it solving ( in context of the case)
In the case of LENA , the new product development was necessitated due to the following factors :
- Reports from industry trade associations and financial analysts due to customer’s concerns about volatile
organic compounds.
- Regulatory initiatives – clean air and clean water act.
The main pain points of the product segments are as follows

- Personal
Product motivations of Lopez as an environmentalist.
Main pain points
Flooring & Cabinets Protective qualities , cost sensitive
Furniture & wood Protective + aesthetic , focused on product
differentiation. Care about environmental
impact.
LENA was envisioned to solve some of the problems for both of these product segments. The
main advantages that LENA would provide are :
• Durability
• Shape versatility
• Environment friendly, Cost effective Coating versatility

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PINTURA CORPORATION-

THE LENA LAUNCH

Annual Sales by Division IFG Sales by substrates

 Cost – Higher material, equipment and training cost

 Growth – 10% annually as compared to water ( 0%), solvent(decline)

Water based $ 34.00 $ 21.08 $ 12.92 38% 34% $41.5

Furniture $ 195.00 60% $ 117.00 $ 8.19 40% $ 78.00 $ 16.38

Annual revenue to touch $ 845.98 mn

* Assuming min 1% saving from the current level

The main pain points of the product segments are as follows

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