1) SEGMENTATION
END USERS
The first criteria of customers selection is : price sensitivity

The trend is to increase the private labels (brand from the retailers) and increase the discount.

When you cannot differentiate on the products than you do it on the price. In many markets, this is the most important criteria.

In this case, painting is a commodity and it is very difficult to differentiate on the product for commodities. Thus, they will play on the price.

1) DIY
- Price sensitive segment
- Value : perceived quality = brand DIY

Value

PRICE SERVICE BRAND mass merchandiser Small shops Mass merchandis
* low cost structure * good distribution network * high marketing
* mass production (people who know their job) budget
* private label -> confidence, proximity

DIY buy these products on a non regular basis because they are not everyday products, not FMCG, they are Slow MCG, that a consumer buy every 4/6 years.

How this characteristic (SFMG) influence the way the industry brands its products and communicates about the products?
What is the impact on the brand and the communication?

Customers will forget about the brand.
Ex: A survey run for mattresses shows that 30% of the population in Belgium does not remember the brand of the mattress they bought after 3 months.

→ It depends on the value and implication (linked to the value)

BRAND STRATEGY
If you want to build a strategy based on the brand, it will cost a high amount of money compared to the turn over of the product.
The cost per unit will be much higher.

Competitive resource = high marketing budget.
Not a lot of companies have a branding strategy because it is expensive.