Kova: Becoming a Vietnamese household name in paint

Publication Type

Case

Publication Date

9-2018

Abstract

Set in 2016, this case follows Phua Koon Kee, the CEO of Kova Group, one of the largest paint manufacturers in Vietnam, as he pondered upon the business expansion strategy that could elevate the Kova brand’s status to that of a household name. Based on a patented NANO technology that used silicates from rice husks to make paint, Kova’s products were of higher quality than its competitors, in terms of environmental-friendliness, durability, waterproof properties and anti-fungal capability. Kova’s distinct competitive advantage was its adaptation for the tropical climate and its localisation for geographical landscapes in Vietnam and other SE Asian Markets, which were the key reasons Kova was able to enjoy price premiums in its home market.

Despite offering innovative and superior-quality products, Kova faced multiple challenges to growth. Domestically, as the Vietnamese economy opened up to the entry of foreign paint companies, competition in the paint industry has intensified. Kova wanted to grow the retail market, where the bulk of its revenue stream was derived, but channel distribution to numerous small stores and brand promotions to end-consumers would demand the company to come up with a well-crafted strategy. Internationally, Kova suffered from a lack of brand presence and a poor country-of-origin image.

Given the multi-faceted challenges, Phua is left thinking about developing an effective integrated marketing plan to create a strong brand positioning for Kova. How could he then leverage the distinctiveness of the Kova brand to gain a larger local market share and subsequently conquer overseas markets?

Keyword(s)

Emerging markets, Market segmentation, Branding, Market segmentation, International marketing, Distribution

Discipline

Asian Studies | Marketing | Sales and Merchandising

Research Areas

Marketing

Data Source

Field Research

Industry

Retail and Wholesale

Geographic Coverage

Vietnam

Temporal Coverage

2016

Education Level

Executive Education; Postgraduate; Undergraduate

Publisher

Singapore Management University

Case ID

SMU-18-0021

Comments

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Additional URL

https://cmp.smu.edu.sg/case/3686

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