The Hindu Business Line : Nerolac to review Big B's contract as brand ambassador

Having appointed Amitabh Bachchan for the past two years, the paint company has been trying to bridge the gap in the decorative segment with the market leader — Asian Paints.

It is now assessing its advertising strategy since the superstar's contract expires this year.

Speaking to Business Line, Mr Anuj Jain, Vice-President, Marketing & Sales, Goodlass Nerolac, said, "The Big B's contract ends this year and we are reviewing the need to continue with the contract. Since the market is dynamic we are also re-looking at the characteristics of the brand and the missing personality traits which the brand needs to have, within the next three months."

The paint company has been trying to bridge the gap between itself and Asian paints in the decorative segment.

"The gap continues to be large and the shares have remained almost constant over the past two years," states Mr Jain. While Asian Paints continues to command a 40 per cent share in the decorative segment, Goodlass Nerolac's share has been static at 14 per cent since the time it decided to appoint the Big B to endorse its brand.

Adds Mr Jain, "By appointing Amitabh Bachchan, the awareness levels of our brand has gone up and it has helped in creating a perception for the brand.

His recent spate of ill health, however, is a different issue and has nothing to do with us reviewing the contract with the Superstar."

Meanwhile, the paint company's other brand ambassador down south — Malayalam film star Mohanlal, who is endorsing the Excel brand, has had his contract renewed.

"Mohanlal has worked well for us in Kerala and last year we extended his contract for another year," says Mr Jain.

Besides, the paints company has decided not to hike its ad budget for the coming year.

Its marketing expenditure this year amounted to Rs 33 crore and this figure is expected to remain the same next year. Mr Jain says, "We are unlikely to increase our ad spends next year and the marketing expenditure will remain the same."