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Dutch Boy Paints Marketing Plan For Puerto Rico

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Table of Contents

I. Executive Summary 3

II. Marketing Plan 4

A. Situation Analysis 4

B. Environmental Analysis 8

C. Objectives 10

D. Marketing Strategy 11

E. Action Programs 18

F. Budgeting 22

G. Resources 25

H. Controls 25

I. Contingency Planning 27

III. Information Sources 28

IV. Appendix 29

I. Executive Summary

Founded in 1907, Dutch Boy continues to be an industry leader in delivering innovative and high-quality products and packaging solutions, and is one of the most recognizable brands in the market. Dutch Boy is one of the leading brands of Sherwin-Williams Company architectural coating product.

The goal of this marketing plan is to outline the strategies, tactics, and programs that will make the sales goals outlined in the Dutch Boy Paint business plan a reality in October 2007.

Dutch Boy, unlike a typical paint, provides a unique and convenient package made of plastic to easy work with it. Dutch Boy Paints is the answer to an increasing demand in Do-It-Yourself customers, most of them women, young couples and new homeowners, and starting business owners. The public wants: (1) easy to handle and storage product for less time consuming in painting and (2) a quality products, people buy painted walls not only the paint.

Marketing will play a vital role in the success of Dutch Boy Paints. Dutch Boy must build a brand around the products it offers by heavily promoting itself through local television, events promotions, and print advertising. The product launch event will be a key to success since it will have massive press and news coverage. Marketing efforts are just beginning by the time a potential customer tries the products for the first time. A strong emphasis will be put on keeping customers and building brand loyalty through programs focused on staffing, experience, and customer satisfaction.

For this year we expect to implement Dutch Boy products in the Puerto Rico market distributing through Sherwin-Williams already established stores and in the Wal-Mart mega stores. For this strategy we forecast a total of $1,858,251.00 of expenses and a projected net income of $1,611,933.30 during the first year of launch.

II. Marketing Plan

A. Situation Analysis

About 1906, a consortium of white lead manufacturers, newly combined under the name of The National Lead Company, were looking for a symbol to unite them. As the finest white lead manufacturers, using what was called the "Dutch method" of processing, and also because the people of Holland had a worldwide reputation for keeping their homes immaculately white-washed, they decided upon a little Dutch boy. Artist Rudolf Yook, an illustrator of Dutch ancestry, came up with the initial sketches of a little boy dressed in overalls and carrying a paint bucket and brush. The finishing touches to the character came when the company commissioned noted artist Lawrence Carmichael Earle to paint an oil portrait of the Dutch boy. Earle used as his model a little Irish boy from his own neighborhood. He was nine years old and played ball in the street outside the home of the artist. That little boy grew up to become Michael E. Brady, a well-known political cartoon artist.

Founded in 1907 and celebrating its 100th anniversary, Dutch Boy continues to be an industry leader in delivering innovative and high-quality products and packaging solutions, and is one of the most recognizable brands in the market.

Since 1907, Dutch Boy Paint has been one of the most recognizable and trusted paint brands in the United States. The Dutch Boy® icon was originally created to symbolize a superior method for creating paint products known as the "Dutch Process".

The "Dutch Process" originated with two chemists in 16th century Holland and set the standard of paint quality and beauty for centuries to come. That legacy lives on with Dutch Boy® Paint.

The Dutch boy is the most recognized paint icon. The paint is based on a 16th century 'Dutch Process.' His likeness is based on Rembrandt's style. Since 1907, the Dutch Boy logo has changed seven different times.

1907 1917 1947 1957 1967 1977 2000

As a result, we understand that Sherwin-Williams their target market with this product is a niche of middle class men are women, ages 25 to 55, of medium and high-income, who prefer customized paintings (flat, sating, high gloss/ interior or exterior/ ceiling, walls, floors, trim) within the US. Specially focusing on the Do it yourself market (DIY), of which 60% are women, and on new home owners.

This market segmentation covers the customers that would like, and are willing to pay, for a Dutch Boy Paint. This includes the generations Baby Boomers, Generation X and Y that are living in an owned house or have an own business, that likes to keep the property well painted internal and externally, and has the resources to do so. The paints are used on occasions, with an increase in the demand on the last trimester of the year due to Christmas season.

There are environmental factors like the economy crisis that may affect negatively our target market purchasing patterns. Since painting is not a need but a luxury, customers may rather prefer to spend their money is other critical needs than in a luxury.

We perform a survey of the population in Puerto Rico that knows the product and the brand, and none of the interviewed knows the product. However 100% of the prospective customers know the matrix company of Sherwin-Williams.

The Sherwin-Williams Company (Sherwin-Williams) is engaged in the manufacture, distribution and sale of paint, coatings and related products to professional, Industrial, commercial and retail customers primarily in North and South America. Effective January 1, 2006, the Company changed its operating segments to Paint Stores Group,



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