Paint company’s entry decision into putty market

Abstract

Learning outcomes After completion of the case study, students will be able to understand the putty industry, consumer behaviour for putty, comparative advantage of putty to different industries and within industry and market entry strategy for newly introduced product. Case overview/synopsis Putty market in India grew at a compound annual growth rate of 15% over the period FY07–FY20. Many organized and unorganized players entered the putty market since its introduction. Putty was invented by cement companies to increase offtake of cement which otherwise declined owing to reduced use of marble. Painters are purchasing putty to be used before the paint to improve the texture of the walls and to fill cracks. Therefore, to take advantage of distribution channels and dealers’ network, paint companies introduced putty. Consumers, who use putty to improve aesthetics of their home, have very less knowledge about putty. They depend on painter or contractor for it. XYZ colourant company wanted to enter the white putty market to use the market opportunity along with coloured putty for economic project where cost is the constraint. This case study culminates with the probing question about the peculiarity of industry where two different industries are involved for the same product. This case study is designed to understand the target consumers’ behaviour and the entry decisions of the company to the growing market. Complexity academic level This case study is designed for use in second-year management programmes, especially for the students of strategic management and marketing strategy courses. Supplementary material Teaching notes are available for educators only. Subject code CSS 11: Strategy.