How Can PPG Better Reach and Service the Professional Residential Painter to Grow Our Market Share in this

Large, but Fragmented Segment?

Lew Klein, 3-29-10

Question

PPG Customer Contact Plan1. Assignment- PPG markets its products through company owned stores

(400) and independent dealers (2,000) to many end-users customer segments. A critical segment is the professional residential painter. Marketing to and servicing this customer segment can be very challenging, but critical if PPG is to grow the business.

2. Objective- Grow the professional residential painter business through PPG stores and dealers, either through acquisition of new customers, maintaining quality service levels to retain existing customers and where ever possible, improving share of wallet expenditures through new programs and promotions.

3. Products & Services- PPG and PPG Porter Paints are professional grade products sold through dedicated PPG and Porter paint stores and dealers. These stores offer preferred pricing contracts, credit terms, delivery and high quality paint matching capabilities.

Lew Klein, 3-29-10

PPG Customer Contact Plan continued-4. Target Market/Lists- Professional Residential Painters.5. PPG Brand Position- PPG company owned stores and dealers are the

best source for everything you need to keep your business running, because we are the only supplier with the confidence, experience and overall customer satisfaction to help you maintain and achieve success.

6. Barriers to Overcome- Other quality paint manufacturers, big-box locations, awareness and reinforcement of the PPG quality brand.

7. Benefits of PPG/Porter Brands> Full Service> Preferred Account Pricing> Job-site Delivery> Highest Quality, industry standard paint matching> Painter-specific tools and accessories.

8. Measurement- Increase in orders, market share growth with respect to professional residential painter segment.

Lew Klein, 3-29-10

Store Visits

1. PPG Store- 345 N. Morgan St., Chicago, IL2. PPG Store- 2917 Ashland Ave., Chicago, IL3. Epco Dealer- 1177 Wilmette Ave., Wilmette, IL4. Sherwin Williams- 1150 W. Jackson Blvd, Chicago, IL5. Sherwin Williams- 1835 Waukegan Rd, Glenview, IL6. Menard’s- 2601 N. Clybourn Ave., Chicago, IL7. Ace Hardware- 24 W. Maple St., Chicago, IL8. True Value- 2804 N. Halsted St., Chicago, IL9. Lowe’s- 3601 W. Touhy Ave., Lincolnwood, IL10.The Home Depot- 1232 W. North Ave., Chicago, IL

Lew Klein, 3-29-10

Store Visit Findings• Sales Reps go into the field to build business.• Store traffic increases during specific times of day; early morning, lunch time, end of day. Other parts of day very slow.• Store personnel (sales reps, manager) handle other duties such phone orders, mixing paints and deliveries. Many have been professional painters. Idea; stores have a lot of empty space, why not lease out space to a wall and floor covering company? Increase traffic, one-stop shop, full-service. Idea: Add other essential products used by contractors on a regular basis. Estimating sheets, painter clothing, cell phone accessories. Idea; hold open house for local interior decorators. Show quality of service, increase awareness of location. Idea; Partner with other PPG stores in the area. Hold painter technique classes, show paint matching expertise to local painters.

Lew Klein, 3-29-10

Distribution• True Value- 5,000 Retail Stores (Private Label Brand)• Ace Hardware- 4,600 Retail Stores (Benjamin Moore)• Do-It Best Hardware Co-op- 4,100 Locations (Valspar, Olympic)• Sherwin Williams Paint Stores- 3,400 locations (+ 540 branches)• PPG/Porter Stores and Dealers- 2,400 Locations• The Home Depot- 2,200 Locations (Behr, Glidden)• Lowe’s Stores- 1,616 Locations (Valspar, Olympic)• Menard’s- 252 Locations (PPG, Dutch Boy, others)

Lew Klein, 3-29-10

Labor Statistics2008- Painters held approximately 443,000 jobs. 36% worked for painting contractors doing new construction, repair, restoration or remodeling work. Over next 10 years approximately 7% projected growth.

(U.S. Bureau of Labor Statistics)

Creative StrategyPittsburgh Paints & Porter Paints Websites

• Pittsburgh Paint calls out Residential Pro Painters, Porter Paints does not.• Neither site is available in other languages (Spanish, Eastern Europe). Idea; Embrace ethnic diversity of the workforce.Idea; Monthly updates to improve “stickiness”.

Lew Klein, 3-29-10

• PPG & SW have similar “pro” programs.• SW membership is immediate; PPG took 4 days. Idea; Add Paint Calculator Idea; Add Training Webinars

Lew Klein, 3-29-10

PPG ProPower vs. S-W Painters Advantage Comparison

Idea; Add incentive to purchase at “checkout”

Idea; Improve “Store Locator to show stores within 5, 10 & 25 miles.

Idea; Add phone “app” to identify closest store.

Store Locations

Lew Klein, 3-29-10

Text Message Marketing

Professional contractors live and breath by their cell and smart phones. It is their lifeline to suppliers, customers; it’s their office in their van.Text message marketing has become more and more an acceptable advertising practice.

Lew Klein, 3-29-10

Idea; Use text messaging to send out instant promotions, store location information, stock-up reminders, painting tips.

Voice Mail Marketing

Lew Klein, 3-29-10

Idea; Similar to text message marketing, leave monthly reminder messages in pro painter’s offices, after hours.

Internet MarketingEmail Marketing- monthly to all ProPower database. Idea; Add coupon or incentive.

Currently 460 “fans” following PPG. Not a major focus, but younger paint contractors do use facebook.

Currently 708 PPG “followers” on twitter. Similar to facebook, appeal to younger contractors.

Lew Klein, 3-29-10

Target The Home Depot

The most immediate way to increase sales is to add distribution. Many companies not doing business with The Home Depot are setting up distribution adjacent to high-traffic HD stores. Idea; set up PPG “feeder” stores across from busy HD’s and measure sales.

Lew Klein, 3-29-10

Database Marketing

Builders, remodelers, and contractors use painting sub-contractors. Idea; target their professional organizations for membership lists, attend specific industry trade show events. Increase database usage.

Lew Klein, 3-29-10

Public Relations & Trade Advertising• Current PR on Architectural Coating lines yield few results. For first 3 months of ‘10, only one press release out of 43. • Television advertising may help grow the brand, but it mostly helps the big box stores, not PPG stores or dealers. Idea; hire smaller PR firm dedicated to PPG paints to increase advertising equivalency rates. Idea; target B2B trade magazines (home building, remodeling, interior design) to increase awareness of PPG lines. Again, collect leads to increase database. A selective media campaign could include, Builder, Remodeling, Interior Design, JLC, among others.

Lew Klein, 3-29-10

Lew Klein, 3-29-10

Voice of the ConsumerIdea; Use testimonials of end-users to help sell products and services. Post link on website and emails.