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Multinational Paint Brand leverages the Right Go-To-Market Strategy

We helped a multinational paint trader understand the local market and devise the right entry strategy.

Sectors : Real Estate and Construction
Services :

Goals

Goals

We were hired to evaluate the total market size for paints and paint rollers in the UAE, and to devise a market entry strategy and set sales targets accordingly.

Situation

Situation

Our client is a Germany-based multinational trader of paints and paint rollers. Their UAE branch was unable to multiply its market share despite the boom in construction.

Analysis

Analysis

We conducted a detailed study and arrived at key information such as:

  • In 2007, paint consumption per capita was 40 liters in the UAE; and volume of different types of paints was 160 Million liters consumed for architectural, marine, and protective and powder coatings among others.
  • Volume of coatings used to paint internal building structures, applied through rollers was 54.3 Million liters (34% of total paint consumption), which was sufficient to decorate a surface of 592 Million square meters.
  • Using five independent computation methods, we estimated that roller consumption in the UAE varies from 11.8 – 12.9 Million units for construction projects whose contracts were actually awarded (i.e. site preparation, civil engineering contracting, building installation and completion are underway). The majority of projects are completed within 24 months or a little more.
  • Retail sales of rollers (through paint shops) are 2.5 – 3.3 Million units, while direct sales to contractors vary from 7.6 – 10.1 Million rollers. We estimate there are 433 – 541 paint shops and 3,701 – 4,626 building materials / hardware stores in the UAE.
  • The market survey has identified 16 competitive roller brands. Harris, which is distributed by Al Fajr Establishment, has a 54% market share.
  • In 2005 and 2006 respectively, there were 21,300 and 23,600 buildings under construction in Dubai only. Completed buildings during those years were 2,200 new buildings per annum.
  • Hardware traders in Dubai generated 75% of their revenues by focusing on the export sector only, with little regard to local markets.
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