greener paint coatings for environmental sustainability

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EMERGING THEMES STUDENT NO - 12610882 1 EMERGING THEMES DECEMBER 2012 “I confirm that in forwarding this assessment for marking, I understand and have applied the CIM policies relating to word count, plagiarism and collusion for all tasks. This assessment is the result of my own independent work except where otherwise stated. Other sources are acknowledged in the body of the text, a bibliography has been appended and Harvard referencing has been used. I have not shared my work with other candidates. I further confirm that I have submitted an electronic copy of this assessment to CIM in accordance with the regulations.” Student number 12610882 Assignment word count Task One - 543 Task Two - 2755 Task Three - 539 Total word count 3837

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Page 1: Greener paint coatings for environmental sustainability

EMERGING THEMESSTUDENT NO - 12610882

1

EMERGING THEMES

DECEMBER 2012

“I confirm that in forwarding this assessment for marking, I understand and have applied the

CIM policies relating to word count, plagiarism and collusion for all tasks. This assessment

is the result of my own independent work except where otherwise stated. Other sources are

acknowledged in the body of the text, a bibliography has been appended and Harvard

referencing has been used. I have not shared my work with other candidates. I further

confirm that I have submitted an electronic copy of this assessment to CIM in accordance

with the regulations.”

Student number – 12610882

Assignment word count

Task One - 543

Task Two - 2755

Task Three - 539

Total word count – 3837

Page 2: Greener paint coatings for environmental sustainability

EMERGING THEMESSTUDENT NO - 12610882

2

Table of ContentsTASK ONE.............................................................................................................................................3

Research Resources ................................................................................................................................4

TASK TWO............................................................................................................................................7

Greener paint coatings for environmental sustainbility ..........................................................................8

Executive Summery ................................................................................................................................9

Macro Theme - Environment & Environmental Sustainability ........................................................10

Environmental sustainability is being challenged in Sri Lanka....................................................10

Energy requirement.......................................................................................................................11

Air Pollution..................................................................................................................................12

Global warming ............................................................................................................................13

Volatile Organic Compounds (VOC) ...........................................................................................14

Changing consumer behavior for Eco paints ....................................................................................16

Problem recognition......................................................................................................................16

Information search ........................................................................................................................16

Evaluation of alternatives..............................................................................................................17

Purchase decision..........................................................................................................................17

Purchase ........................................................................................................................................18

Post-purchase evaluation...............................................................................................................18

Strategic marketing response for Eco paints market.........................................................................19

Green marketing definition ...........................................................................................................19

New Product development- Strategic response to achieve environmental sustainability .............19

Current situation of Sri Lankan coating industry..........................................................................20

Why new product development ....................................................................................................20

How marketers should adapt to new product developments of the industry ....................................23

TASK THREE……………………………...…………………………………………………………25

Eco paint for environmental sustainability…………………………………………………………... 25

APPENDIXS.........................................................................................................................................28

REFERENCES .....................................................................................................................................32

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EMERGING THEMESSTUDENT NO - 12610882

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TASK ONE

SUMMERY OF SOURCES OF INFORMATION

WORD COUNT – 543

Page 4: Greener paint coatings for environmental sustainability

EMERGING THEMESSTUDENT NO - 12610882

4

Research Resources

Sources # Name of the source Credibility & Reliability Merits of source

1.

(Report)

Ministry of Environment

& Natural Resources

(2012) Sri Lanka

Strategy for Sustainable

Development.

A government ministry

special report intended to

promote sustainable

development, energy &

environmental conservation

of Sri Lankan industries.

It has high credibility &

reliability, prepared forward

to United Nations

Development Programme

evaluation

( UNDP)

Clearly defines urgent attention

of industries specially

construction, for energy &

environmental conservation.

Industry wise national analysis

of energy consumption &

environmental issues.

Introduction of industry specific

technologies & methodologies

for sustainable development.

Provides solid basis to link Eco

paint coating to construction

industry to achieve

sustainability.

2.

(AnnualReport)

Unicef Sri Lanka (2012)

Unicef annual report for

Sri Lanka.

The Unicefs’official annual

report for year 2012 of Sri

Lanka.

High credible source of

information prepared by

one of independent world’s

leading organization.

Explains Unicefs’ intention of

facilitating hygienic & eco

friendly educational ergonomics

to Sri Lankan school children.

Ability to justify role of Eco

paints to increase hygiene&

ergonomics.

3.

(Journal )

Polhena, A. (2012) New

Organic Architecture.

The Architect.

Quarterly journal with 7,000

circulations by the Sri Lanka

Institute of Architects. It

covers varying subjects of

architectural topics on in Sri

Lanka and the world over.

Each issue is based around a

theme & regularly features

projects, latest news, trends,

and technologies of interest

by Sri Lankan architects.

Explains how ecological

sustainability can gain from

architectural & interior

decorative perspectives of

construction engineering.

Ability to link the role of Eco

paint in architectural design

stages & interior decoration

stages to enhance eco

friendliness.

EMERGING THEMESSTUDENT NO - 12610882

4

Research Resources

Sources # Name of the source Credibility & Reliability Merits of source

1.

(Report)

Ministry of Environment

& Natural Resources

(2012) Sri Lanka

Strategy for Sustainable

Development.

A government ministry

special report intended to

promote sustainable

development, energy &

environmental conservation

of Sri Lankan industries.

It has high credibility &

reliability, prepared forward

to United Nations

Development Programme

evaluation

( UNDP)

Clearly defines urgent attention

of industries specially

construction, for energy &

environmental conservation.

Industry wise national analysis

of energy consumption &

environmental issues.

Introduction of industry specific

technologies & methodologies

for sustainable development.

Provides solid basis to link Eco

paint coating to construction

industry to achieve

sustainability.

2.

(AnnualReport)

Unicef Sri Lanka (2012)

Unicef annual report for

Sri Lanka.

The Unicefs’official annual

report for year 2012 of Sri

Lanka.

High credible source of

information prepared by

one of independent world’s

leading organization.

Explains Unicefs’ intention of

facilitating hygienic & eco

friendly educational ergonomics

to Sri Lankan school children.

Ability to justify role of Eco

paints to increase hygiene&

ergonomics.

3.

(Journal )

Polhena, A. (2012) New

Organic Architecture.

The Architect.

Quarterly journal with 7,000

circulations by the Sri Lanka

Institute of Architects. It

covers varying subjects of

architectural topics on in Sri

Lanka and the world over.

Each issue is based around a

theme & regularly features

projects, latest news, trends,

and technologies of interest

by Sri Lankan architects.

Explains how ecological

sustainability can gain from

architectural & interior

decorative perspectives of

construction engineering.

Ability to link the role of Eco

paint in architectural design

stages & interior decoration

stages to enhance eco

friendliness.

EMERGING THEMESSTUDENT NO - 12610882

4

Research Resources

Sources # Name of the source Credibility & Reliability Merits of source

1.

(Report)

Ministry of Environment

& Natural Resources

(2012) Sri Lanka

Strategy for Sustainable

Development.

A government ministry

special report intended to

promote sustainable

development, energy &

environmental conservation

of Sri Lankan industries.

It has high credibility &

reliability, prepared forward

to United Nations

Development Programme

evaluation

( UNDP)

Clearly defines urgent attention

of industries specially

construction, for energy &

environmental conservation.

Industry wise national analysis

of energy consumption &

environmental issues.

Introduction of industry specific

technologies & methodologies

for sustainable development.

Provides solid basis to link Eco

paint coating to construction

industry to achieve

sustainability.

2.

(AnnualReport)

Unicef Sri Lanka (2012)

Unicef annual report for

Sri Lanka.

The Unicefs’official annual

report for year 2012 of Sri

Lanka.

High credible source of

information prepared by

one of independent world’s

leading organization.

Explains Unicefs’ intention of

facilitating hygienic & eco

friendly educational ergonomics

to Sri Lankan school children.

Ability to justify role of Eco

paints to increase hygiene&

ergonomics.

3.

(Journal )

Polhena, A. (2012) New

Organic Architecture.

The Architect.

Quarterly journal with 7,000

circulations by the Sri Lanka

Institute of Architects. It

covers varying subjects of

architectural topics on in Sri

Lanka and the world over.

Each issue is based around a

theme & regularly features

projects, latest news, trends,

and technologies of interest

by Sri Lankan architects.

Explains how ecological

sustainability can gain from

architectural & interior

decorative perspectives of

construction engineering.

Ability to link the role of Eco

paint in architectural design

stages & interior decoration

stages to enhance eco

friendliness.

Page 5: Greener paint coatings for environmental sustainability

EMERGING THEMESSTUDENT NO - 12610882

5

Sources # Name of the source Credibility & Reliability Merits of source

4.

(OnlineArticle)

Parker, S. (2012) The

Role of Paint and

Coatings in a Green

Building.

Author of this online article

is a paint coating industry

expert, opinion former

working for world leading

paint coating company Akzo

Nobel, Netherland. He has

high credibility in world

coating industry.

This article clearly shows how

decorative, protective and

special features of paint can use

for the betterment of ecological

system, health of the living

beings and sustainable

development.

Water based technology, Nano

technology, VOC levels are

discussed.

5.

(OnlineArticle)

Lbr.lk (2012) Sri Lanka

construction industry

needs tech upgrade.

Lanka Business Review

(LBR) is an online portal of

Sri Lankan industry expert

to present & discuss latest

news, technologies and

articles.

It consists of 1000 odd

chartered members of many

industry disciplines which

also promote discussion

across industries. Its’ printed

monthly LBR magazine has

circulation of 10000 copies.

Urges local contractors to adopt

indigenous and sustainable

greener technologies and proper

use of natural resources.

Explains current environmental

& financial related issues which

can be minimized using

sustainable green technologies.

Explains the role of Eco paints to

minimize health related issues of

labour force & users of

construction.

6.

(CompanyWebsite)

Raiderpainting.com

(2012) Healthcare

Facility Painting

Contractors | Raider

Painting Company.

Raider painting is a giant

global coating company who

is in the forefront in

technological advancements.

This web publication has

good credibility and it has

facilitated opportunity to

discuss the articles as well.

Clearly explains how Eco paint

can be used to enhance

healthcare of people through air

purification, natural lighting,

temperature controlling, fungal

& bacterial controlling functions

of paint.

Page 6: Greener paint coatings for environmental sustainability

EMERGING THEMESSTUDENT NO - 12610882

6

Sources # Name of the source Credibility & Reliability Merits of source

7.

(OnlinePortal)

Facilitiesnet.com (2011)

‘Green’ Paints Come of

Age - Facility

Management Paints &

Coatings Feature

Facilitiesnet is a one of the

leading facility management

online site. Member

companies introduce and

discuss latest trends, news,

technological breakthroughs,

recommend solutions to

issues.

High credibility source.

It explains how maintenance cost

can be reduced with Eco paints

to achieve sustainability.

8.

(Pressrelease)

Air Pollution: Why it's

not just your lungs that

suffer

Unknown. (2011) Air

Pollution: Why it's not

just your lungs that

suffer. The daily tribune,

25 July, p.11.

A fair and responsible

Philippine newspaper.

Famous for balanced

account of news,

controversial views.

Features contemporary

living and bring the latest

showbiz buzz, latest local

and global trends. It is the

second highest circulating

new paper with 2 million

copies per day

Shows how air purifying gas can

improve air quality.

Justifies ability to reduce air

conditioners to enhance

breathable quality of air.

Explains how city of Manila

overcame smog hovering over

the city.

EMERGING THEMESSTUDENT NO - 12610882

6

Sources # Name of the source Credibility & Reliability Merits of source

7.

(OnlinePortal)

Facilitiesnet.com (2011)

‘Green’ Paints Come of

Age - Facility

Management Paints &

Coatings Feature

Facilitiesnet is a one of the

leading facility management

online site. Member

companies introduce and

discuss latest trends, news,

technological breakthroughs,

recommend solutions to

issues.

High credibility source.

It explains how maintenance cost

can be reduced with Eco paints

to achieve sustainability.

8.

(Pressrelease)

Air Pollution: Why it's

not just your lungs that

suffer

Unknown. (2011) Air

Pollution: Why it's not

just your lungs that

suffer. The daily tribune,

25 July, p.11.

A fair and responsible

Philippine newspaper.

Famous for balanced

account of news,

controversial views.

Features contemporary

living and bring the latest

showbiz buzz, latest local

and global trends. It is the

second highest circulating

new paper with 2 million

copies per day

Shows how air purifying gas can

improve air quality.

Justifies ability to reduce air

conditioners to enhance

breathable quality of air.

Explains how city of Manila

overcame smog hovering over

the city.

EMERGING THEMESSTUDENT NO - 12610882

6

Sources # Name of the source Credibility & Reliability Merits of source

7.

(OnlinePortal)

Facilitiesnet.com (2011)

‘Green’ Paints Come of

Age - Facility

Management Paints &

Coatings Feature

Facilitiesnet is a one of the

leading facility management

online site. Member

companies introduce and

discuss latest trends, news,

technological breakthroughs,

recommend solutions to

issues.

High credibility source.

It explains how maintenance cost

can be reduced with Eco paints

to achieve sustainability.

8.

(Pressrelease)

Air Pollution: Why it's

not just your lungs that

suffer

Unknown. (2011) Air

Pollution: Why it's not

just your lungs that

suffer. The daily tribune,

25 July, p.11.

A fair and responsible

Philippine newspaper.

Famous for balanced

account of news,

controversial views.

Features contemporary

living and bring the latest

showbiz buzz, latest local

and global trends. It is the

second highest circulating

new paper with 2 million

copies per day

Shows how air purifying gas can

improve air quality.

Justifies ability to reduce air

conditioners to enhance

breathable quality of air.

Explains how city of Manila

overcame smog hovering over

the city.

Page 7: Greener paint coatings for environmental sustainability

EMERGING THEMESSTUDENT NO - 12610882

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TASK TWO

DISCUSSION PAPER

WORD COUNT – 2755

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EMERGING THEMESSTUDENT NO - 12610882

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GREENER PAINT COATINGS FOR

ENVIRONMENTAL SUSTAINBILITY

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Executive SummeryEarth and its resources should be preserved for the future generations while fulfilling current needs.

Over consumption , living beyond actual needs, insufficient understanding of importance of

environmental sustainability ,limitless business competition with neglecting environmental impact

have urged immediate actions for environmental sustainability.

With the increasing environmental issues like global warming, environmental pollutions, energy

crisis, natural resources depletion and climate changes etc, industries have invest on environmental

friendly products, process, package and supply chain practices which can neutralize or minimize the

damage caused to the environment.

This discussion paper will discuss the emerging role of Eco paints, developed with Nano & Water

based technologies, to support green construction (more than 15% growth- Figure 09) and to

minimize these environmental issues.

Eco paints can provide many augmented and potential benefits beyond its core benefits, decoration &

protection to the substrate. Light enhancing, heat reducing, air purification, anti fungal, antibacterial,

self cleaning, washable and many more tailor made functionalities can be added aid of Nano particles.

Nano paints are capable of preserving electricity requirement for lighting (4-5%) and air conditioning

(3-4%), reduce air pollution (30-40%) etc.

Both B2B and B2C customers are increasingly ware of environmental concerns and benefits of Eco

paints to aid sustainability, to save utility bills like electricity, maintenance, ability to maintain

healthily hygienic environments. Therefore consumer behavior, involvement to decision making

process, role of decision making members, referral groups are being changed. Customers who are

interested price are now willing to pay premium prices for Eco paints evaluating the long term

benefits.

Eco paint availability in Sri Lankan is as low as 7% and it’s 39% in Netherland where the origin of Sri

Lankan arc competitor, Akzo Nobel( www.akzonobel.com).With the increasing issues and awareness

among customers, multinational coating companies may introduces such products to Sri Lanka as they

have done in other regions of world. Since, local players like Lankem Robbialac and Multilac do not

have the financial & technological ability, partnering with foreign supplier or manufacturing under

their licenses will be expected in marketing Eco paints.

New product development would be the strategic marketing response (Figure 11) to this

environmental trend and this will alter the nature of competition and the supply chain in the coating

industry. Marketers also have to develop new set of skills and change their attitudes, behaviors to

cope up with the emerging theme (Figure 14).

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Macro Theme - Environment & Environmental Sustainability

Based on the definitions of natural environment (Appendix 02) and environmental sustainability

(Appendix 01), Earth and its’ resources should preserve for the future while fulfilling current needs.

Over-consumption, living beyond actual needs, insufficient understanding of environmental

sustainability, limitless competition market share & profits with no regard for environment are

causing threat to the environmental sustainability.

The theme sustainability is not a recent concern but now it’s needed more than ever to world. Each

industry should seek environmental sustainability to preserve environment. It helps to differentiate

from rivals, to achieve long term cost benefits.

With the increasing environmental issues like global warming, environmental pollutions, energy

crisis, natural resources depletion and climate changes etc, some industries forced to invest on

products, process which can neutralize or minimize the environmental damage.

This discussion paper will mainly discuss the emerging trend of using Eco paints to overcome,

minimize these environmental issues of ordinary paints and added benefits to the environment.

Harmful volatile organic compounds (VOC), odour are less in Eco paint and will improve air

quality.

1m2 of Nano technologically developed Eco paints can purify noxious gas equal to a grown

tree.

Room temperature can reduce by 5Co with heat reflective Eco paints reducing energy

requirements to air conditioning.

Light enhancing Eco paints will reduce the requirements of higher Watts’s bulbs preserving

energy.

Improved durability of Eco paints will reduce recoating requirements and maintenances cost.

Environmental sustainability is being challenged in Sri Lanka

Development efforts of the country have increased, with the conflict ended in Sri Lanka. All the

industries have recorded strong annual growth since 2009.Though it led to growth in per capita

income, increase in standard of living and decrease poverty levels, Sri Lanka faces environmental

problems such as land degradation, inefficient mineral resource usage, air / land/ water pollution, poor

management of water resources, loss of biological diversity, coastal erosion, increasing scarcity of

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water for agriculture & power generation, waste disposal in urban areas, traffic congestion and rising

temperatures in the main cities etc. ( Source #1-Research Resources)

Energy requirement

Sri Lanka is depending on hydro power generation and due to insufficient rain fall, population growth,

industry and infrastructure developments, electricity demand has increased. Thermal & Coal power

generation has become the major source and has intense the impact to environment. Increased carbon

footprint is causing green house effect and air pollution (Source #1-Research Resources).

Figure 01, Source-Sri Lanka Electricity Board (Annual Report-2011)

Hydro power generatrion has decreased to 40% in 2011 from 53% in 2010 and this drop is replaced

by thermal & coal power generation.

Figure 02, Source-Sri Lanka Electricity Board (Annual Report-2011)

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19% and 24.5% growth is projected in electricity demand and fossil fuel requirement respectively

intensifying the green house effect and air pollution.

Figure 03 Source-Ceylon Petroleum Corporation

Overall fuel consumption is increasing due to power generation, influx of new vehicles to streets.

Vehicle population has increased steadily and in year 2011, 18% year on year growth. (Appendix 04)

Figure 04, Source -

Department of Motor

Traffic

Air Pollution

Noxious gases mainly from power generation and automobiles are causing respiration system

diseases. Nano technologically developed Eco paints which can break down noxious gases (CO2, CO,

SO2, NO, NO2, NOx ) in to harmless particles, have been introduced to the market around the world.

Global paint giants like Akzo Nobel and Nippon paints who is currently operating in Sri Lanka, have

already marketed such paints in Indonesia, China where cities with high vehicle traffic congestion and

polluted air (Source #8-Research Resources).

Following charts depict total CO2 emission and NOx concentrations trend recorded over history and

air quality is becoming a serious problem to Sri Lanka (Source #1-Research Resources).

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Figure 05, Source- Ministry of Environment

This chart presents the NOx gas concentration in the heart of the Sri Lankan economy, Colombo

Figure 06, Source- Ministry of Environment

Global warming

Increased temperature of green house effect is causing mountain glaciers, ice burgs to melt worldwide

increasing sea levels. Global climate and Ecological system is being changed. Following graph

depicts temperature anomaly due to global warming. Since 1980s global temperature has increased by

0.4 Co

Figure 07, Source- Wikipedia

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Average Room temperature of Colombo has increased by 3-4 Co from 25-30 Co and electricity

requirement for air conditioning has increased to 20 % from 14% .(Source #01- Research Resources).

Sri Lankan construction industry is encouraged to adhere to greener construction practices to allow

natural lighting and ventilation to minimize energy requirement, Exterior and interior horticulture

decorations for cleaner air and cooler environment (Source #03 & #5 - Research Resources).

Efficiency of these practices can be improved with Eco paints (Source #06 - Research Resources).

Light enhancing Eco paints reduce the power requirements by 4 - 5 % by enabling replacing

higher Watts’ bulbs with low Watts.

Heat reflective Eco paints reduces room temperature by 5Co cutting down the air conditioning

requirement by 3 - 4%.

Sri Lankan paint industry already has lighting enhancing and temperature reducing paints.

Volatile Organic Compounds (VOC)

Low VOC paints emit less amount of harmful VOC to the environment. Those VOCs are given out

while painting - and for up to five years even after paint have been dried.

Figure 08, Source- www.articlesbase.com

Government enforces new low VOC regulations for new product developments (Source #04 -

Research Resources).

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Growth potential of green Vs conventional based on building constructions. Green construction is

booming with the concept of Eco and Ayurvedic tourism in Sri Lanka.

Figure 09, Source- The Architect Journal

Building construction industry as the largest buyer of paints and with the increasing demand for green

construction, demand for various special functions Eco paints are increasing.

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Changing consumer behavior for Eco paints

Customer demand, Sri Lankan government regulations, indirect long term financial benefits are major

driving force and consumer behavior towards Eco paint is discussed in details.

In nutshell, both B2C and B2B customer behavior is based on following factors for Eco paints.

Utility bill savings ( appendix 06) and reduced maintenance (appendix 08)

Willingness to pay premium price for Eco paint products

Increasing concern of customers to environmental sustainability

Health, hygienic benefits of Eco paint ( appendix 07)

Problem recognition

Household consumers & B2B customers like constructors, architectures, and engineers are

increasingly aware of benefits of the Eco paints to their wallet, to their customers’ wallet and to the

environment.

Traditional intension of decoration & protection to the substrate becoming basics with the value added

functions Eco pains offer.

Facility mangers, hospital administrators are the Initiators of requesting eco concept to the building

aiming at long term cost reductions and improved healthy environment.

Possible problems consumers will consider at this stage

Table 01- Benefits of Eco paints

Information search

Ordinary paint users searched information from applicators and dealer with low technical knowledge.

Now they refer online and paint company websites seeking for Eco paints information.

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Referring to opinion formers and leader like architectures, interior decorators, engineers with

technical expertise can be seen rather than referring to own peer groups, applicators for Eco paints.

Information related available colours, coverage, texture decorations were considered to select ordinary

paints, and special performance related information is searched in Eco paints.

Most females are interested for colour availability and texture finishes while most males are interested

in performance functionality of Eco paints.

Applicators, dealer were working as gate keepers for ordinary paints and Interior Decorators,

Quantity Surveyor, Architectures, Engineers play gate keeping role for Eco products.

Evaluation of alternatives

Aluminum Claddings, Granite walls and floors, Tiles, Wallpapers are alternatives to paints and those

have better demand due to easy maintenance, lasting durability, more designs, color consistency etc.

Eco paints developed with Nano and other water based technologies, now can provide greater benefits

and more specific functional solutions with it.

As an example air purification, anti fungal, antibacterial properties, self cleaning properties, heat

reduction, low VOC and low odor properties are able to excite consumers at their evaluation stage.

Applicators and the constructors were the Influencers for choosing ordinary paints but with Eco

paints influencers are occupants, facility managers, and technical experts.

Purchase decision

The level of involvement in Decision Making Process (DMP) is increased for Eco paints over

ordinary paints and alternatives.

The role of DMU members is more vital due to high economic, performance and personal risk

associated with Eco paints.

Economic risk – Though 80 to 120 % increased premium price is set for eco paints,

consumers bear this cost considering long term health and savings from maintenance and

utility bills, and considering stability of the nature.

Performance risk – proper adherence to instruction and proper surface preparation and

application.

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Personal risk – performance risk should be minimized through proper methodology to obtain

specific antifungal, anti bacterial, air purification etc benefits.

Purchase decision is more influenced by the technical expert as influencers for Eco paints and in

ordinary paints, most housewives, daughters play influencing role based on preferred colours and

texture finishes.

Most of the time, husbands and sons have more dominating role in the Eco paint selection due to

technical understanding they poses.

Product performance warranty plays vital role for Eco paints in purchase decision stage.

Purchase

Due to targets, commissions given for paint dealers and applicators, purchase decision is highly

influenced at point of sale but in Eco paints with the reference and influence of technical experts,

most B2B and B2C purchases are specified for particular brand or product. Therefore Eco paint

purchasing decision is less prone to change in point of sale.

Post-purchase evaluation

Quantity surveyors, Engineers, Architectures and Interior decorators recommend Eco products

assuring specific objectives to achieve.

Electricity consumption conservation, improved air quality, reduced maintenance cost, health and

hygienic environment without fungal, bacterial infections, conformation to ISO 14001 standards or

green construction standards like LEED (appendix 03)

For ordinary paints, match of color card colour and actual colour, colour retention, promised

coverage, promised resistance to weather are the basics to evaluation.

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Strategic marketing response for Eco paints market

Green marketing definition

“Marketing products and services based on environmental factors or awareness. Companies involved

in green marketing make decisions relating to the entire process of the company’s products, such as

methods of processing, packaging and distribution.”

-www.investopedia.com [10]

Based on above green marketing definition, product, process, packaging and distribution are areas

where environmental sustainability can be achieved with fulfilling customer requirements. In this

chapter, the role of product (Eco Product) is discussed to achieve environmental sustainability in paint

industry.

New Product development- Strategic response to achieve environmental

sustainability

Following product life cycle presents the available technologies of paint coating at their current stage.

Figure 10- Coating technology life cycle

EMERGING THEMESSTUDENT NO - 12610882

19

Strategic marketing response for Eco paints market

Green marketing definition

“Marketing products and services based on environmental factors or awareness. Companies involved

in green marketing make decisions relating to the entire process of the company’s products, such as

methods of processing, packaging and distribution.”

-www.investopedia.com [10]

Based on above green marketing definition, product, process, packaging and distribution are areas

where environmental sustainability can be achieved with fulfilling customer requirements. In this

chapter, the role of product (Eco Product) is discussed to achieve environmental sustainability in paint

industry.

New Product development- Strategic response to achieve environmental

sustainability

Following product life cycle presents the available technologies of paint coating at their current stage.

Figure 10- Coating technology life cycle

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Strategic marketing response for Eco paints market

Green marketing definition

“Marketing products and services based on environmental factors or awareness. Companies involved

in green marketing make decisions relating to the entire process of the company’s products, such as

methods of processing, packaging and distribution.”

-www.investopedia.com [10]

Based on above green marketing definition, product, process, packaging and distribution are areas

where environmental sustainability can be achieved with fulfilling customer requirements. In this

chapter, the role of product (Eco Product) is discussed to achieve environmental sustainability in paint

industry.

New Product development- Strategic response to achieve environmental

sustainability

Following product life cycle presents the available technologies of paint coating at their current stage.

Figure 10- Coating technology life cycle

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Current situation of Sri Lankan coating industry

Current Sri Lankan coating market needs Nano technology based paints and prevailing water based

technology should expand beyond wood care and enamel paints to epoxy, auto refinish, ancillaries,

primers etc.

Existing Solvent, Epoxy based technologies are best suit for protective and decorative purposes of the

substrates. But with the technological advancement, paints can be used beyond its fundamental

function, with value added functionalities (Task 01 & 02).

Nano technology and water based technology will be the future in paint coating industry. These

technologies provide improved effectiveness and efficiency to their intended purposes with less or no

hazards (Task 01 & 02).

Why new product development

Figure 11-Ansoff Matrix

Market penetration, new market development strategy are not applicable in Sri Lankan coating

industry due to non availability of Nano technologically developed Eco products.

Few players have water based wood care, enamel products which represent 6 - 8 % of total coating

products and in order to ensure environmental sustainability, improved healthy environment, reduced

raw materials and improved durability, rest 92-94 % of coating products should be replaced with

water based product by incorporating Nano technology.

New Product Development

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Idea behind introducing water based technology, Nano technology to Sri Lankan paint coating

industry is to replace existing entire solvent based enamel, epoxy, ancillaries, specially 2 K auto

paints, water based emulsion coating with high VOC levels with Eco paints.

Therefore new product development strategy is the key to restore the stability of the environment.

Following chart shows the current percentage of paints with technologies of Sri Lankan market

Figure 12, Source- Lankem Robbialac internal publication

Green colour depicts the Eco paints and red shades depict ordinary paints. Still 93 % of products pose

threat to environment and living beings. Sri Lankan arch rival, Akzo Nobel has replaced 39% volume

with Eco paints in its’ country of origin Netherland.

Ability & requirement for new product development can be further explained using five levels of

product model.

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Figure 13-Five levels of paint product

With Nano technology as the enabler and incorporating this to water based technology, many tailor

maid functionalities can provide to the customers they never ever imagined. Potential of the “potential

Product” has broadened.

But the practical problem for an industry in a developing country like Sri Lanka is the ability to invest

on R&D and availability of technology and experts. Many multinational players like Akzo Nobel,

Asian paints, Nippon paints and Causeway paints are operating and some of them have already

developed and marketed such Eco paints in European, American Oceania and Asian regions.

Local players like Robbialac, Multilac and other small scale players only can do is to collaborate with

other global coatings giants to introduce their product or manufacture under their license.

odourless

,made functionalities

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How marketers should adapt skills, attitudes & behaviors to

new product developments of the industry

As customer requirements always change, skills, attitudes and behaviors of the marketers should

change accordingly. Not like in FMCG sector, marketers in paint coating industry requires adequate

technical expertise in new product development process, to diagnose & handle complaints , marketing

products specially to technical experts like Engineers, Interior decorators, Architectures , Quantity

surveyors and constructors.

Products and methods of application may change continuously with the technological breakthroughs

of Nano technology and intensive R&D activities in global coating industry. Attitude of “Continuous

Professional Development” (CPD) and actual knowledge upgrading is expected from marketers in this

industry.

Apart from technical experts following skills also should develop by marketers.

Figure 14, Source- CIM, ET study text, 2010

Major customers are experts in B2B segment for Eco paints and marketers need to be strong personal

communicator to inform and educate customers on emerging trend for eco paints and its benefits,

differentiate Eco product with ordinary paints and competitor products, persuade them to shift in to

Eco products and constantly remind customers on specialties of marketers’ product.

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Marketer should use his innovativeness, creativeness in this high competitive market for sustainable

progress. Inviting street painters to paint air polluted streets, walls with air purifying paints at a mural

/ fresco festivals will be new to Sri Lanka which will create a buzz in the industry.

Some marketers may have restricted their expertise only to marketing discipline as considering

finance as a supportive function. This attitude needs to be changed, marketers should improve

relevant skills at least fundamentals of finance. This will helps to work with finance team and play

more active role in strategic decision making process as well.

Marketers need to improve their skills of new media, digital marketing especially in social marketing

as very powerful interactive tools. Internet and mobile is being basic in life of consumer and

knowledge and skills on these will help to observe customer behavior and gather customer insights,

engage customer with brand etc. In nutshell this expertise will provide marketers additional channel to

be good personal communicators.

Paint industry marketer is expected to anticipate and identify the requirements of a paint customer.

This behavior can be extended to create new need for customers in an unrelated industry with the

ability of Nano technology. If anyone wants to reduce his utility bills like electricity and maintenance,

Eco paint can promote to help to conserve electricity and maintenance.

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TASK THREE

BLOG POSTING

WORD COUNT – 530

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Sri Lankan Paint industry needs to excel with Eco paints

With increasing environmental issues like global warming, pollutions, climate changes etc, coating

companies have invested on Eco paints to minimize environmental damage and Eco paint is emerging

with green construction trend in Sri Lanka.

Sri Lanka is depending on thermal power generation and Colombo city consumes 55% electricity for

lighting and air conditioning from its total requirement. Light enhancing and heat reflective Eco paints

can reduce the power requirements by 7 -9 %.

Nano technological Eco paints can break down noxious gases in to harmless particles and area of 1m2

paints can purify gases equal to a grown tree. Since 1980s global temperature has increased by 0.4 Co

and with noxious gas controlling and energy preserving will helps to reduce some of this effect.

Every industry needs to take the responsibility of these environmental concerns and as a paint industry

Eco paints can fulfill its part to ensure sustainability of the environment.

Changing customer behavior for Eco paints

Customer decision making processes, members, factors of considering are also being changed on Eco

comparatively to ordinary paints.

Savings from utility bills

Willingness to pay premium price

Increasing concern for environment

Health benefits

Customers are becoming aware of benefits of the Eco paints.

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Decoration & protection to the substrate are becoming basic with abilities of Eco paints. Facility

mangers as initiators request eco concept aiming at cost, healthy benefits.

Customers gather information online than referring applicators, hardware dealer with low technical

knowledge and shifting from own peer groups to opinion formers & leaders like architectures, interior

decorators, engineers.

High durable claddings, granite walls, tiles are alternatives for paints and with Nano technology, Eco

paints has minimized the threat of alternatives. Facility managers, technical experts are the influencers

for Eco Vs. applicators, constructors for ordinary paints

High involvement to DMP for Eco paints Vs ordinary paint can be seen. Preferred special functions

are dominating colours and textures of ordinary paints. Product performance warranty for Eco paints

is the main factor against colour availability, coverage of ordinary paints when finalizing the purchase

decision.

Commissions are given for interior decorators, architectures, constructors for Eco paints similar to

dealers and applicators for ordinary paints. Therefore, high influence for ordinary paints at POS vs.

Eco paints. Post purchase evaluation would be most welcome to Eco paints due to specific reasons of

recommending than evaluating surface protection and decoration purpose of ordinary paint.

Marketers need to change attitude, behavior & skills for Eco products

Products and application knowledge change continuously with technological breakthroughs of Nano

technology. Attitude and behavior of “Continuous Professional Development” (CPD) are expected

from marketers in this industry.

Marketer as a strong personal communicator needs to inform and educate customers on emerging

trend for eco paints and its benefits, differentiate Eco product with ordinary paints and competitor

products. Their innovativeness and creativeness are expected throughout the elements of marketing

mix. Marketers need discipline on finance not restricting to marketing. This attitude needs to be

encouraged and will help to work with finance team and play more active role in strategic decision

making process.

Marketers need to improve skills on new media, digital marketing, and social marketing as very

powerful interactive tools. Knowledge and skills on these will help to observe customer behavior and

gather customer insights, engage customer with brand, enabling marketers to be good personal

communicators.

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Appendix 01

Sustainability Development- Definitions

"Development that meets the needs of the present without compromising the ability of future

generations to meet their own needs, with three key objectives for sustainable futures “

A socially and environmentally innovative, resource-efficient economy that delivers quality

of life in the developed world

An improvement of economic welfare and quality of life in developing countries

A healthy natural environment with resources used and conserved wisely-worldwide.

Source- The Brundtland Commission.[8]

"Development which improves people's quality of life, within the carrying capacity of earth's life

support systems”

Source -United Nations Environment Program (UNEP). [8]

"The guiding rules are that people must share with each other and care for the Earth. Humanity must

take no more from nature than nature can replenish. This in turn means adopting lifestyles and

development paths that respect and work within nature's limits. It can be done without rejecting the

many benefits that modern technology has brought. Provided that technology also works within those

limits"

Source- The World Conservation Union (IUCN) [8]

Appendix 02

Natural Environment - Definitions

“The natural environment encompasses all living and non-living things occurring naturally on Earth

or some region thereof. It is an environment that encompasses the interaction of all living species.”

Source-Journal of Environmental Quality [6]

“The sum total of all surroundings of a living organism, including natural forces and other living

things, which provide conditions for development and growth as well as of danger and damage.”

Source-Businessdictionary.com [7]

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Appendix 03

Source- Ceylon Petroleum Corporation

Appendix 04

Source- Department of Motor Traffic

Appendix 05

Green Construction Certifications

Dictated largely by the growing awareness of consumers over eco-friendly buildings and materials,

the momentum is encouraging commercial painting contractors towards qualification tests and

certifications that ensure their compliance to environment-safety standards.

Currently, the U.S. Green Building Council’s (USGBC) Leadership in Energy and Environmental

Design (LEED) ratings systems is the most popular basis for defining the standards of a "green

building". LEED looks at various factors such as energy and water usage of a building, the source and

quality of building materials used in construction, as well as the overall quality of the building

environment.

LEED also has a specific rating system for paints and coatings, the Indoor Environmental Quality

Credit 4.2, that focuses on reducing VOCs in architectural paints, coatings and primers. The goal of

the rating system for paints is to accredit high-performance paints that have low-emission capabilities,

leaving as little environment damage as possible.

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Appendix 06

Owners of building expect savings on construction and post-construction and are becoming

increasingly aware that once the building is operational, more cost-savings will come in the form of

lesser utility bills and maintenance costs. This was well proven by the U.S. Green Building Council

(USGBC) estimating an average return on investment of 20% on green buildings (Source #07 -

Research Resources).

Appendix 07

Health ministry & doctors have warned about mold and mildew growth in many facilities like hotels,

restaurants, schools, health-care facilities which pose threat to infants, children, adults and patients, to

initiate maintenance and renovation projects to rooms, ventilation systems, furniture, Walls, Pantry

cupboards etc. which are susceptible to most of these growths.

Anti bacterial, antifungal, anti dust, washable and easy clean, self cleaning properties will prevent

such media to grow on surfaces. This will also reduce recoating requirement hence more sustainable

and facility managers are also interest in cost, time reductions as well.

Low odor or odorless nature of Eco paints is another critical importance fact to facilities, which

allows crews to paint in or near occupied spaces without disruption to occupants. It helps to improve

health of paint applicators and lead time of project delivery, can also reduce. Therefore contractors,

Engineers, Project managers are seeking for such products from the industry.

Appendix 08

Urethanes and polyurethanes based technologies, Water based technologies have high resistance and

control of corrosion, fire, chemical, heat and other damages hence extend the lifespan of coated items.

Main pillars of sustainability are Reduce, Reuse & Recycle and these paints will help to reduce

production of coated items and encourage reuse.

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Appendix 09 - One page summary of paint coating industry(Adapted from Lankem Robbialac industry analysis report 2011/12)

Sri Lankan paint industry is 20 billion rupees worth in value accounting 35- 40 million liters in

volume and achieved 10 -12 % industry growth rate as at year 2011/12. Industry comprises of 57

manufacturers and 06 big players controlling 97% of the market.

CIC -Dulux / Akzo / Glidden ( Multinational company) Asian Paints-Royale / Permoglaze ( Multinational company) Causeway-Luxury / Kenlux ( Multinational company) Silicon Coatings-Nippolac( Recently acquired by Nippon paints Japan) Lankem-Robbialac Macsons Lanka-Multilac

Decorative and industrial paint segments contribute

75% and15% respectively to the total volume. Paint

is a seasonal product and seasonal sales turn up on

December & March. In seasons volumes get

doubled compared to an average month. Paint

Industry is growing in-line with the GDP growth

rate backed by construction and tourism boom

Average price level has shown 8%-10% year on

year growth. Industry is 99% dependence on

imported raw materials.

Paint types – Decorative (Interior & Exterior),

Industrial and Ancillaries.

Target market- B2C as households and Engineers, Architectures, Interior Decorators, Constructors,

Painters as B2B customers

Current demand drivers for paint

Price-affordability Quality-durability, final finish Health and environmental friendly nature Colour range and ease of application Distribution-availability Services including after sales services

Paint coating technology is consisting of solvent based, water based and oil based technologies. Due

to high toxicity, volatile organic compounds health concerns and environmental damage, trend is

moving towards water based technologies. Nano technology has backed this trend with added exciting

functionalities.

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Research Sources References

1. Ministry of Environment & Natural Resources (2012) Sri Lanka Strategy for Sustainable

Development. [report] Union Place, Colombo 02: Hansi Graphics & Advertising, p.130-137.

2. Unicef Sri Lanka (2012) Unicef annual report for Sri Lanka. [report] Colombo 05: Unicef

Publications, p.8.

3. Polhena, A. (2012) New Organic Architecture. The Architect, Volume 113 (Issue 03), p.80 -

81.

4. Parker, S. (2012) The Role of Paint and Coatings in a Green Building. [online] Available at:

http://www.articlesbase.com/ask-an-expert-articles/the-role-of-paint-and-coatings-in-a-green-

building-832647.html [Accessed: 22 Sep 2012].

5. Lbr.lk (2012) Sri Lanka construction industry needs tech upgrade. [online] Available at:

http://www.lbr.lk/fullstory.php?nid=201109182101327980 [Accessed: 22 Sep 2012].

6. Raiderpainting.com (2012) Healthcare Facility Painting Contractors | Raider Painting

Company. [online] Available

at:http://www.raiderpainting.com/healthcare_construction_trends [Accessed: 23 Sep 2012].

7. Facilitiesnet.com (2011) ‘Green’ Paints Come of Age - Facility Management Paints &

Coatings Feature. [online] Available at:

http://www.facilitiesnet.com/paintscoatings/article/%E2%80%98Green%E2%80%99-Paints-

Come-of-Age--1754 [Accessed: 25 Sep 2012].

8. Air Pollution: Why it's not just your lungs that suffer .Unknown. (2011) Air Pollution: Why

it's not just your lungs that suffer. The daily tribune, 25 July, p.11.

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Discussion Paper References

1. Ministry of Environment & Natural Resources (2012) Sri Lanka Strategy for Sustainable

Development. [report] Union Place, Colombo 02: Hansi Graphics & Advertising, p.137.

2. Yatagama , . et al. (2011) Air pollution and health in Sri Lanka: a review of epidemiologic

studies. BMC Public Health, 10 (300), p.53-58.

3. Azwer, M. (2012) Time To Battle Air Pollution. The Sunday Leader, 20th Thursday

September, p.14.

4. Indexmundi.com (2012) Sri Lanka - Electricity - consumption - Historical Data Graphs per

Year. [online] Available at: http://www.indexmundi.com/g/g.aspx?c=ce&v=81 [Accessed: 30

Sep 2012].

5. Withanage, . and Liyanage, . (2012) Don’t Nuke Sri Lanka! Demand clean energy! Demand

energy sovereignty!. [report] Colombo 08: Centre for Environmental Justice, p.12.

6. Johnson, D. L.; Ambrose, S. H.; Bassett, T. J.; Bowen, M. L.; Crummey, D. E.; Isaacson, J.

S.; Johnson, D. N.; Lamb, P. et al. (1997). "Meanings of Environmental Terms". Journal of

Environmental Quality 26 (3): 581–589.

7. Businessdictionary.com (n.d.) What is environment? definition and meaning. [online]

Available at: http://www.businessdictionary.com/definition/environment.html [Accessed: 30

Sep 2012].

8. Unescap.org (1999) Definitions of Sustainable Development. [online] Available at:

http://www.unescap.org/drpad/vc/orientation/awareness/sustainable_development/sd_definiti

on.htm [Accessed: 30 Sep 2012].

9. Philip Kotler, Marketing Management: Analysis, Planning, Implementation, and Control, 7th

ed. (Upper Saddle River, NJ: Prentice Hall, 1991), 31.

10. Investopedia.com (2012) Green Marketing Definition | Investopedia. [online] Available at:

http://www.investopedia.com/terms/g/green-marketing.asp#axzz2Abqnv5I2 [Accessed: 28

Oct 2012].