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Paint Consumer Research Program - PCRP
Frequently Asked Questions
Can’t I get similar information elsewhere?
The quarterly and annual survey data provide the best means for paint manufacturers to gauge how their brands are faring in the overall marketplace for architectural coatings. Other measures of the market, such as the census bureau’s MA28 figures, are not as timely or detailed - nor do they provide brand information - and many who are knowledgeable of the market view them as less than completely accurate. Moreover, measurements of the total market tell a manufacturer nothing about the profile of his customer base. The identity of the customer who pulls a can of paint or stain off the shelf, in many cases, may be more critical than the mere knowledge that a transaction has occurred.
In other words, a subscribing paint manufacturer has the ability to manipulate the PCRP data in order to gain insight, for example, into his product’s customer profile, using such demographic criteria as age, location, income level, race, etc. Using PCRP data in this way allows a market researcher to analyze "real world" sales figures to determine the effectiveness of marketing tools, such as advertising and promotions.
What is the value of PCRP information to my company?
A paint manufacturer or raw material supplier may ask, "why is this information valuable to my company? Our goal is simply to sell as much paint as possible, and, in any event, we are aware of how much paint we are shipping." In a competitive marketplace, a company’s performance is influenced by three major players: the company itself, other companies that compete with that company, and consumer-purchasers. In analyzing the coatings market, paint manufacturer’s recognize that their competition includes not only other coatings manufacturers, but also those companies selling competing wall coverings, such as wall paper, paneling, etc. A paint manufacturer who fails to obtain the best information on which consumers are buying his product, how much they actually are paying, and what is simultaneously happening with his direct competitors’ products, is operating in the dark.
Successful companies understand that information gained through market research isn’t just "nice to know." Such information should be a foundation for a company’s most important strategic business decisions. For example, it permits a company to gain insight into how its brand compares with others in the price it commands, its customer base, its brand loyalty, etc. Such "brand equity" analysis may suggest ways in which to promote its product in order to enhance the product’s return to the manufacturer. It may identify the best channels to move products, and, perhaps most importantly, provide a paint manufacturer the market intelligence needed to negotiate with a channel of distribution from a position of strength.
The benefit of good research, ultimately, is that it not only clarifies the questions a manager should be asking about a product’s performance, but may also suggest more effective and targeted marketing campaigns that speak directly to the people he’s trying to reach in a way that interests them.
With careful analysis, the PCRP data can give a manager insight into pricing and volume trends for his or her product, and permit comparisons with competing brands. PCRP can help answer questions such as "What is the average dollar amount spent on purchases of products or services similar to mine?" The manager can develop a market segmentation study to compare the demographic profile of his or her product with a competitors’, or perhaps with the profile of the customer base at the brand’s channel of distribution. The data can provide insight into such questions as the relationship of income to preferences for gloss levels, or whether customers in one region show a stronger preference for custom-tinted paints over factory tinted, or how stains compete against exterior paints geographically.
It’s not uncommon for brand managers to seek to extend their brands vertically—that is, to take their brands into a seemingly attractive market above or below their current positions. And as companies seek to improve their growth, particularly in a relatively mature consumer market such as the architectural coatings market, a manager might consider, for example, a move into the premium or value segments. PCRP data, used in conjunction with other management tools, may help provide insight into whether such a move is feasible or desirable.
Are there other ways in which I can leverage the PCRP data?
Subscribers may have the ability to use PCRP data in conjunction with other market data, such as information generated by a specific outlet or another marketing research organization. For example, a manufacturer selling in the hardware store channel may have access to information on his channel’s overall customer base from other sources. This would then provide him or her the ability to compare a brand’s performance in the channel to the performance of other items sold in the channel. If the demographic profile of paint purchasers in the channel of interest varies in some significant way from the profile of, say, tool purchasers, that might suggest a customized strategy for reaching those now missing potential paint customers. The more varied the ways in which a market researcher can leverage the PCRP data, particularly in conjunction with other data, the more insight he or she might gain into why a product sells well (or why it doesn’t) among certain market segments.
PCRP data, while quite extensive, cannot meet all the needs of a market researcher. PCRP does not, for example, gauge in detail the critical contractor market. It therefore cannot function as a measure for the entire architectural coatings market. Since PCRP relies on consumer recall, it cannot measure the retail price of a particular brand with absolute precision, nor can it project the overall size of the market with complete accuracy. It can, however, alert market researchers and managers to trends, both long-term and short, which can help them to maximize the return on their brands. Anyone seeking to sell architectural coatings to the consumer market who fails to use PCRP data is foregoing the opportunity to use the best market research available on his or her products.
