Akzo Nobel Turns to Innovation in Bid to Challenge Home Paint Leader in Brazil
Akzo Nobel, the world’s leading manufacturer of home paint, has launched a new range of concentrated paints in Brazil called Coral Rende Muito. By focusing on convenience and affordability, Akzo Nobel is hoping the new line will further its quest to overtake Brazil’s first-ranked home paint player, BASF SA.
Home paint in Brazil
In 2011, Brazil’s home paint market generated an estimated R$4.7 billion (US$2.9 billion) in value sales. Over the past five years home paint has also been one of the country’s fastest-growing home and garden categories, posting a CAGR of 12% between 2006 and 2011.
With an 18% share of value sales, Akzo Nobel maintains a strong lead in the global home paint market. In Brazil, however, it ranks second behind German company BASF SA. With its Suvinil brand, BASF commanded a 40% share of Brazil’s home paint market in 2011, giving it a comfortable lead over Akzo Nobel’s 25%. Click to tweet!
Coral Rende Muito
The introduction of its new Coral Rende Muito home paint product is Akzo Nobel’s latest attempt to challenge category leadership in Brazil. The product features a concentrated formula that claims to achieve more surface coverage per litre than other home paint ranges. With more paint in smaller and lighter containers, Coral Rende Muito offers greater convenience and value for money, while providing a number of operational advantages including lower transport costs and a reduced environmental impact.
Akzo Nobel’s Coral Rende Muito
Coral’s new range is likely to appeal to a large number of Brazilian consumers for its economical benefits. In April 2012, Akzo Nobel reported a “six-fold increase in product line sales”. However, it is unlikely that Coral Rende Muito will generate sufficient increases for Akzo Nobel to match BASF’s large market share. The global leader will need to continue to develop category innovations and widen both its distribution and marketing efforts if it hopes to compete with BASF and advance its position in Brazil’s home paint market.