PPG’s New Direction to Target Pros
PPG Industries plans to rebrand and revamp thousands of U.S. retail and distribution points to better reach the contractors, specifiers and other professionals who now buy most of its architectural paint and coatings.
The new brand strategy will be felt and seen at more than 600 company-owned stores and 7,000 dealers and home centers across the United States, the world's largest paint and coatings company announced Wednesday (April 23).
The most visible change for consumers will occur this fall, when PPG eliminates the Pittsburgh Paints, Porter Paints and Glidden Professionals names from its company-owned U.S. stores and newly rebrands the retailers as PPG Paints.
PITTSBURGH, April 23, 2014 – In an effort to maximize its position to serve the professional customer, PPG Industries’ (NYSE:PPG) architectural coatings business announced a comprehensive pro brand strategy in the U.S. that will leverage its brand assets in three key channels of paint distribution. The strategy includes the rebranding of its U.S. company-owned paint stores, an expanded brand and product offering through independent paint dealers, and the expansion of a pro customer program at The Home Depot. With these initiatives, PPG underscores its unique position as the only company with a major presence in all three distribution channels capable of supplying to the professional contractor.
“The professional customer represents approximately 60 percent of the paint purchased and applied in the United States and is an extremely important part of our business,” said Scott Sinetar, PPG vice president, architectural coatings, North America. “We pride ourselves on being the best in the industry at meeting the needs of the pro, and this clarified brand alignment helps us demonstrate that position.”
Sinetar continued, “We want to effectively reach all types of professional customers regardless of where they live and where they want to buy their paint.” With more than 600 PPG company-owned paint stores, 5,000 independent dealer locations and 2,000 home center outlets, PPG offers more distribution options for the professional across the United States than any other paint manufacturer.
“It’s truly an exciting time to be a part of PPG, a company that has a strong heritage in quality, durability, performance and serving the professional customer,” Sinetar said. “We are confident these strategic moves and brand enhancements put us in a position to serve the pro better than ever. Our well-respected brands and products, knowledgeable workforce and unmatched distribution opportunities are a good formula for success for us and our customers.”
PPG: BRINGING INNOVATION TO THE SURFACE.™
PPG Industries' vision is to continue to be the world’s leading coatings and specialty materials company. Through leadership in innovation, sustainability and color, PPG helps customers in industrial, transportation, consumer products, and construction markets and aftermarkets to enhance more surfaces in more ways than does any other company. Founded in 1883, PPG has global headquarters in Pittsburgh and operates in nearly 70 countries around the world. Net sales in 2013 were $15.1 billion. PPG shares are traded on the New York Stock Exchange (symbol:PPG). For more information, visit www.ppg.com and follow @PPGIndustries on Twitter.
Bringing innovation to the surface is a trademark of PPG Industries Ohio, Inc.
Glidden, Glidden Professional, PPG Pittsburgh Paints and PPG Porter Paints are registered trademarks of PPG Architectural Finishes, Inc.
Devoe is a registered trademark of AkzoNobel.
The Home Depot is a registered trademark of Homer TLC, Inc.
C2 is a registered trademark of The Coatings Alliance, LLC.
The company will also expand its brands and product offerings at independent paint dealers and enlarge its pro customer program at The Home Depot, the world's largest home-improvement retailer.
"With these initiatives, PPG underscores its unique position as the only company with a major presence in all three distribution channels capable of supplying to the professional contractor," the company's announcement said.
The changes come in the first full year of PPG's newly expanded architectural coatings portfolio, which absorbed AkzoNobel's North American holdings in a $1.05 billion deal.
A 2012 PPG presentation shows the expected distribution expansion then in store for the company with the acquisition of AkzoNobel's (right) North American architectural business. Sherwin-Williams has about 3,900 retail stores in the U.S.
That acquisition, which closed in March 2013, added the Glidden, Flood, CIL, Sico and Liquid Nails brands to PPG's portfolio and gave the company licensing rights for Dulux, Devoe architectural coatings, and Sikkens wood products.
The acquisition was not just a gain for PPG's product line. It represented a major extension of PPG's reach into all three major North American distribution channels.
Reaching the Pro Market
The strategy announced last week realigns brands and channels to reflect PPG's huge architectural coatings portfolio.
The strategy also signals a new emphasis on PPG's most influential purchasers: painting contractors, specifiers and other professionals.
“The professional customer represents approximately 60 percent of the paint purchased and applied in the United States and is an extremely important part of our business,” said Scott Sinetar, PPG vice president, architectural coatings, North America.
The new strategies focus on the influential professional coatings market, which now makes up 60 percent of PPG's paint and coatings market in the United States.
“We pride ourselves on being the best in the industry at meeting the needs of the pro, and this clarified brand alignment helps us demonstrate that position.”
The new system will give PPG "more distribution options for the professional across the United States than any other paint manufacturer," the company said.
Here's what's ahead.
More than 600 company-owned stores nationwide now variously branded for Pittsburgh Paints, Porter Paints and Glidden Professional will have one look and one new brand this fall: PPG Paints.
“The new PPG Paints brand will enable us to leverage the equity of the PPG brand to establish one, unified store footprint from the Atlantic to the Pacific,” said Tom Dougherty, PPG director of pro marketing, architectural coatings.
“This will enable us to focus our marketing investment in one brand that is recognized by all pro audiences anywhere in the country," said Dougherty. "This is important, as many professional painters and project specifiers cross state and regional lines."
PPG shows the global paint and coatings pie in December 2012 (left), with the market shift expected (right) from its then-impending acquisition of the AkzoNobel business. That deal closed in March 2013.
The PPG Paints brand will also be available for independent dealers who want it, Dougherty said.
Independent dealers will offer more PPG brands and products, including a new "dealer-exclusive brand that will combine the heritage of the PPG Pittsburgh Paints and Devoe brands."
The new PPG Pittsburgh Paints brand, launching in late 2014, will incorporate some of the best-known Devoe paint sub-brands under the Pittsburgh brand and be available to professional customers only through independent dealers.
The newly redesigned brand will allow dealers the cachet of offering a brand that is not available in company stores or home centers.
Independent dealers will also be selling PPG Porter Paints and Glidden, as well as the "super-premium" C2 Paint brand, which PPG recently announced it would manufacture for an independent group of dealers called The Coatings Alliance.
|The Coatings Alliance LLC / Courtesy PPG|
Independent dealers will be selling the "super-premium" private-label C2 Paint, made by PPG.
Dougherty called independent dealers "a critical component of our strategy to reach the professional customer."
The Home Depot
The Glidden Professional brand will be at the center of an expanded pro-focused PPG presence in The Home Depot stores. That push will be supported by joint marketing and sales efforts focused on professional customers beginning in May.
The distribution and branding changes all underscore PPG's "strong heritage in quality, durability, performance and serving the professional customer,” Sinetar said.
“We are confident these strategic moves and brand enhancements put us in a position to serve the pro better than ever."