Harvard Case - Dulux TileShield: Relaunching a Brand
"Dulux TileShield: Relaunching a Brand" Harvard business case study is written by Kirti Sharma, Puneet Sapra. It deals with the challenges in the field of International Business. The case study is 16 page(s) long and it was first published on : Feb 28, 2017
At Fern Fort University, we recommend a multi-pronged approach to relaunching Dulux TileShield, focusing on a strategic shift from a product-centric to a customer-centric approach. This involves a comprehensive brand revitalization, targeted market expansion, and a robust marketing strategy to re-establish the brand's position within the competitive landscape.
2. Background
Dulux TileShield, a premium tile cleaning product, faces a declining market share and struggles to compete against newer, more innovative offerings. The brand's outdated marketing and lack of a clear value proposition have contributed to its decline. The case study focuses on the decision of whether to relaunch the brand or discontinue it entirely. The main protagonist is the marketing team tasked with evaluating the viability of a relaunch.3. Analysis of the Case Study
This case study can be analyzed using the Porter's Five Forces Framework, which helps assess the competitive landscape and identify opportunities for strategic action:
- Threat of New Entrants: The market for tile cleaning products is relatively easy to enter, with low barriers to entry. This poses a constant threat of new competitors entering the market, potentially further eroding TileShield's market share.
- Bargaining Power of Buyers: Consumers have a wide range of tile cleaning products to choose from, making them price-sensitive. They are also increasingly informed about product features and benefits, increasing their bargaining power.
- Bargaining Power of Suppliers: The raw materials used in tile cleaning products are readily available, limiting the bargaining power of suppliers.
- Threat of Substitute Products: There are numerous substitute products available for cleaning tiles, including DIY solutions and other specialized cleaning products. This poses a significant threat to TileShield's market position.
- Competitive Rivalry: The tile cleaning market is highly competitive, with numerous established players and new entrants vying for market share. This intensifies the need for differentiation and innovative marketing strategies.
SWOT Analysis:
Strengths:
- Strong brand recognition and trust associated with the Dulux name.
- Existing distribution channels and established relationships with retailers.
- Potential for leveraging existing manufacturing infrastructure and supply chain.
Weaknesses:
- Outdated product formulation and limited innovation.
- Lack of a clear value proposition and differentiation from competitors.
- Ineffective marketing and communication strategies.
Opportunities:
- Expanding into new international markets with growing demand for tile cleaning products.
- Developing innovative product features and formulations to address specific customer needs.
- Leveraging digital marketing channels and social media to reach a wider audience.
Threats:
- Increasing competition from both established and new players.
- Changing consumer preferences and demand for eco-friendly products.
- Economic fluctuations and potential impact on consumer spending.
4. Recommendations
1. Revitalize the Brand:
- Reimagine the Product: Develop a new product formulation with improved cleaning power, environmentally friendly ingredients, and unique features that address specific customer needs.
- Refine the Brand Identity: Create a fresh, modern brand identity that resonates with the target audience. This includes updating the logo, packaging, and messaging to reflect the brand's renewed focus on innovation and customer value.
- Develop a Compelling Value Proposition: Clearly articulate the unique benefits of TileShield compared to competitors. Highlight its effectiveness, ease of use, and any environmental advantages.
2. Expand into New Markets:
- Identify Emerging Markets: Conduct thorough market research to identify high-growth markets with a significant demand for tile cleaning products. Focus on regions with a strong construction and renovation industry.
- Develop a Global Expansion Strategy: Employ strategic market entry strategies, such as joint ventures, licensing agreements, or establishing subsidiaries, to penetrate new markets.
- Adapt Products and Marketing: Tailor product formulations and marketing messages to meet the specific needs and preferences of each target market.
3. Implement a Robust Marketing Strategy:
- Develop a Multi-Channel Marketing Approach: Leverage a mix of traditional and digital marketing channels to reach a wider audience. This includes television and print advertising, online advertising, social media marketing, and influencer partnerships.
- Focus on Customer Engagement: Create engaging content that educates and informs consumers about the benefits of TileShield. Utilize social media platforms to build a community around the brand and foster customer interaction.
- Leverage Partnerships: Collaborate with key influencers, retailers, and industry associations to enhance brand visibility and reach new customers.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The relaunch strategy aligns with Dulux's core competencies in paint and coatings, while also expanding into the adjacent market of tile cleaning products. It is consistent with the company's mission to provide high-quality and innovative products to customers.
- External Customers and Internal Clients: The recommendations address the needs of both external customers, seeking effective and convenient tile cleaning solutions, and internal clients, seeking to revitalize the brand and regain market share.
- Competitors: The recommendations aim to differentiate TileShield from competitors by focusing on innovation, customer value, and a strong brand identity.
- Attractiveness ' Quantitative Measures: While a detailed financial analysis is beyond the scope of this case study, the relaunch strategy is expected to generate positive returns through increased sales, market share, and brand value.
- Assumptions: The recommendations assume that Dulux has the resources and commitment to invest in product development, marketing, and market expansion. They also assume that the company can effectively adapt to the evolving needs of consumers and the competitive landscape.
6. Conclusion
Relaunching Dulux TileShield presents a significant opportunity for the company to regain market share and strengthen its brand position. By focusing on a customer-centric approach, developing innovative products, expanding into new markets, and implementing a comprehensive marketing strategy, Dulux can re-establish TileShield as a leading brand in the tile cleaning industry.
7. Discussion
Other Alternatives:
- Discontinuation: Discontinuing TileShield would be a simpler option in the short term, but it would also result in lost market share and potential damage to the Dulux brand.
- Minimal Relaunch: A minimal relaunch, focusing on minor product improvements and marketing updates, would require less investment but may not be sufficient to compete effectively in the long term.
Risks and Key Assumptions:
- Market Acceptance: There is a risk that the relaunched TileShield may not be well-received by consumers, leading to lower than expected sales.
- Competition: The competitive landscape is constantly evolving, and new competitors may emerge, posing a challenge to TileShield's market position.
- Financial Investment: The relaunch strategy requires significant financial investment, which may not be feasible if the company faces financial constraints.
8. Next Steps
- Conduct Market Research: Conduct comprehensive market research to identify target markets, consumer needs, and competitive landscape.
- Develop Product Prototype: Develop a prototype of the new TileShield product with improved features and formulations.
- Refine Brand Identity: Develop a new brand identity, including logo, packaging, and messaging.
- Pilot Launch: Pilot launch the relaunched TileShield in a select market to test consumer response and refine the marketing strategy.
- Full-Scale Launch: Based on the pilot launch results, implement a full-scale launch of the relaunched TileShield in target markets.
Timeline:
- Months 1-3: Market research, product development, and brand identity development.
- Months 4-6: Pilot launch and market testing.
- Months 7-9: Full-scale launch and marketing campaign.
- Months 10-12: Ongoing monitoring and evaluation of performance.
The success of the relaunch strategy depends on Dulux's commitment to innovation, customer focus, and strategic execution. By embracing these principles, the company can position TileShield for long-term success in a competitive market.
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Case Description
In 2012, the marketing department at AkzoNobel India Ltd., a major paints company, faced a key decision concerning the possible relaunch of TileShield, a premium roof tile paint in the company's exterior paints division. Since its inception, TileShield had led the market, especially in the southern part of India, but despite growth in the demand for roof tile paints, TileShield sales had stagnated in 2011-12. Faced with falling sales and intense competition, the company had to decide whether to maintain the status quo or draft a relaunch for the brand. The marketing department would have to make some quick decisions on value proposition and pricing.
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