In the mid1990s, the paint companies in Pakistan adopted a unique ingenious marketing strategy to promote their brand and generate revenues. Initiated by a multi-international, ‘Token’ as it was called, became an underhand practice for all the paints companies, but Master Paints. With a huge turnover, the ‘Token’ remained in trend to date. The Competition Commission of Pakistan issued show cause noticed to 16 paint companies except Master Paints for violating the anti-trust law by indulging in deceptive marketing practices. The action was taken after concern was raised by the Consumer Association of Pakistan that paint manufacturers were hiding tokens or redeemable coupons in paint packs without adequate disclosure, leaving the consumers largely unaware of this practice.
Farooq Amin SufiMarketing Director at Master Paints and a hobbyist Polo Player gives us an insight into the ‘Token’ strategy while we discuss the Master Paints success since its establishment in 1976.
1. How do you define Master Paints people?
‘Master Paints’ people are friendly. We work as a family. We firm in our convictions and our brand philosophy presents our work ethics. We strive to provide the best and it is evident in the marketing strategies we have applied over the years to endorse out brand. Our team is hard-working, creative and we do not compromise on quality at all. We know the need of our customers, and we try to give them the best in fair price. Our customers are valuable part of the Master Paints fraternity.
2. What are the milestones that Master Paints have achieved since 1976?
Master Paints was the first Pakistan based paint company. There was tough competition by global paint companies when we started out. Master Paints established itself from the scratch with a strong foundation to beat the competition. In order to adhere to quality and international standards, we brought in the technology from Germany. It has grown into a remarkable local paint company, successfully overcoming competition and market demands since then.
3. What is the quality policy of Master Paints?
Our customers come first. Over the years, we have won our customers loyalty by providing them with quality paint in affordable price range. Master Paints journey was never an easy one. We have constantly kept ourselves abreast of market demands and trends. Our quality policy strictly adheres to fair marketing and sales strategies. In the 1990s, paints companies adopted unfair means of marketing. This was called the Token system. Master Paints is the only paint company on record that did not adopt Token or any such strategy to increase sales or generate revenue. With fewer profit margins, the turnover was comparatively lesser than other companies but the quality of our product remained the best.
4. ‘Token’ is news to the
consumer. What is it?
As I mentioned earlier, in 1990s the paints companies started placing a Token in the paint can. The painter received cash on returning the Token to the dealer. On each Token returned to the company, the dealer was rewarded 10% profit on the commission. This marketing and sales strategy was not popularized publically as it would affect customer’s loyalty towards the brands practicing Token. Master Paints decided against it and did not adopt Token as means to generate revenue.
5. So how did you manage without the ‘Token’? What are the obstacles and struggles that embark Master Paints on the pathways to success?
Our marketing and sales strategies have always been fair and building customer loyalty is our utmost priority. Our paint is lead free, environment friendly and without any foreign funds we have managed to make a remarkable impression in the market. One of our main ingredients is Titanium Dioxide that we import from Germany.
6. Has the government been supportive so far?
Taxes are the major issues we are constantly dealing with. 70% of the material is imported by the paint community. The taxes make the product expensive. Plus, the cost of Titanium Dioxide has increased immensely since the oil crisis in 2009. Since we stress on quality in affordable price, we are left with very little profit margin.
7. The Guinness Book Record event was in March. The memories of the event still stir excitement. What issues did you have to deal with?
That was our gift to the nation on Pakistan Day, and we intend to pursue more activities to elevate the spirit of patriotism in our nation. It was quite difficult to organize such a huge event; day light was one issue as it was March. We had only 8 hours to complete the canvas. Organizing 200 teams was another issue. But it all went great. To fulfill the requirements of the Guinness Book, we had to take an Ariel photo. Walton airport helped us with that. Credits go to the Punjab Government for providing us with the Hockey Stadium, Lahore as the venue.
8. You took Pakistan to the Guinness Book Record by painting the biggest canvas in the world and you have successfully launched Street Art campaign, what more is there in store for us?
We have more street art competitions coming up that we want to take to different cities. We have also proposed for ‘Bridge Art’ campaign and are waiting for the approval by the Punjab Government. Plus, we are looking on for making another record next year.
9. What more do you plan to offer in your product range and services?
There are many activities and services we plan to initiate. Currently, we are offering 11,110 colors. We are expanding our color palette by offering more unique colors.
10. What is the future vision of Master Paints?
We are the only company that sells paints without ‘Token.’ We visualize Master Paints as becoming number one paint company in Pakistan. We are constantly working towards positive recognition. Our marketing strategy is designed to make the customers aware of our loyalty, and against unethical means of promotion and sales. Finally, 15 years of struggle, our efforts have not failed us. The CCP-Competition Commission of Pakistan and CAP – Consumer Association of Pakistan has issued notice against use of ‘Token.’ This is, indeed, a positive and encouraging effort on part of the government.