Pintura Corporation: The Lena Launch Decision Harvard Case Solution & Analysis

Problem Diagnosis
Pintura Corporation is considering the launch of the environmentally friendly, high performance hardwood coating, called as Lena. However, the vice president of the new product development of the Industrial Finishes Group (IFG) needs to develop a business case for the product and determine, the segmentation, targeting, positioning and the marketing mix strategy for Lena with accurate forecasts for the next five years. The VP needs to consider the relationship of Lena with the divisional and the corporate objectives of the company and how it contributes to it.
Furthermore, the current financial analysis and the industry trend has also suggested a move towards the most environmentally friendly products however, the management team of the company was also considering the issue of cannibalization with the existing products of the company and product feasibility. The product launch team had to convince their review team that the launch of the new product would increase the sales of the IFG division by 5% annual growth rate. Therefore, a detailed analysis needs to be performed of all these issues and a final product launch strategy and business case needs to be developed for Lena.
We begin our analysis, by first examining the position of IFG within the market and in relation to the other divisions of the company.
1). IFG’s current position
The IFG division of the company contributed to 25% of the total sales of Pintura Corporation and it sold the coatings, paints and the related products to the commercial and industrial customers in US. The IFG division was organized by the end user substrates that are wood, metal and plastic and it played an important role in conducting research and development for Pintura not only for itself but for the other two segments that are PI and CPG regarding introduction of new product variations.
IFG was the one, that had developed the water based coatings recently and it had grown its share of revenue from wood coatings to 47.5%. Therefore, overall, the IFG division acquired a much stronger position relative to the other two divisions of the company. Its contribution to total company sales was lower than other divisions so it was time to increase its share of revenue by considering the launch of Lena.
2). IFG’s Objectives and Strategy
The objectives of FG were to would increase the sales of the IFG division by 5% annual growth rate. Secondly, the executive team of Pintura was highly committed to the development of the environmental friendly products because of the concerns of the customers regarding The volatile organic compounds and the other pollutants. Therefore, the strategy of IFG was to capitalize on this and develop a new technical product that is more environmentally friendly for the customers of the company. GIC was the first one to shift its strategy for producing the water based and power based coatings for the general industrial coatings segment and it was the strategy of IFG to move with the market as it was launching new products for IFG to meet the tightening environmental regulations and shifts in the customer demand........

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