PPG Product Development Strategy Recommendations
PPG, a key player in the architectural coatings industry, seeks to enhance its presence at Lowe's stores to boost sales. After analyzing alternatives, the model suggests that launching a Paint-plus-Primer option is the best strategy for PPG, offering high benefits and opportunities with manageable risks and costs. Further details and insights are outlined in the confidential report.
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Presentation Transcript
Which Product Development Track Should PPG Take? Kelly Bauer Matt Kopacko 2011 Confidential
Background PPG Industries is a global leader in the Architectural Coatings industry Their Olympic brand of paints and stains is only sold through Lowe s Home Improvement Stores PPG is considered the #2 brand at Lowe s Valspar is the #1 brand The #1 brand gets the most visibility and shelf space at Lowe s PPG needs a way to elevate their presence at Lowe s and boost sales Confidential
Alternatives 1. Launch a competitive offering to Behr All-in-One 2. Launch a revolutionary product not yet offered in the market 3. Re-engineer an existing product 4. Do nothing, keep product line as is Confidential
The Model Confidential
Benefits Sub-Criteria Confidential
BOCR ANALYSIS Confidential
Results Overall Synthesis Multiplicative Overall Synthesis Additive Negative Confidential
Sensitivity Example (Benefits) Benefits wrt Cost to Implement Benefits wrt Market Potential Benefits wrt Sales Potential Confidential
Conclusions The model shows that the Launch Paint-plus-Primer option is the best for PPG The Benefits and Opportunities are highest with this option The risks are slightly lower because a market for Paint-plus-Primer is already established The costs are in the mid-range of all 4 options Confidential
QUESTIONS ? Confidential
