Leading paint and coatings maker
The Valspar Corporation
(
VAL
) has introduced, through its Paint division, a new color assurance
program which will enable its customers to pick the color which is
right for them. The program will not only help the consumers to
select the right color, but will also guarantee it.
The program dubbed "Love Your Color Guarantee" applies to the
purchase of the Minnesota-based company's Signature Colors interior
paint at
Lowe's
(
LOW
). Valspar said that it will offer a rebate of up to two gallons of
a replacement paint color. Consumers who do not like their first
color choice will get a complimentary replacement color in an offer
which is valid till October 8, 2012.
To launch the new guarantee program, Valspar will introduce a
multi-platform, integrated marketing campaign. The company will use
multiple media including television spots, lifestyle and
entertainment magazines, daily print newspapers, and digital and
banner advertisements to promote the Love Your Color Guarantee
program. Valspar will also leverage social media by offering
sweepstakes on its Facebook page.
Valspar is the sixth largest paint and coatings manufacturer
globally. The company's paints business (roughly 41% of sales in
2011) comprises architectural paints, specialty decorative
products, automotive refinish paints and aerosol spray paints.
Valspar competes with the likes of
Sherwin Williams Company
(
SHW
) and
PPG Industries Inc.
(
PPG
).
We believe Valspar has a strong pipeline of new products and
significant opportunities for share gains across its Paint and
Coatings segments globally. The company is expected to benefit from
its restructuring actions while maintaining its operational and
pricing discipline. We are more optimistic on Valspar's long-term
performance, which is likely to be driven by volume increases in
both the paint and ccoatings categories.
We currently have a long-term Outperform recommendation on
Valspar, which is in sync with a short-term Zacks #2 Rank
(Buy).
LOWES COS (
LOW
): Free Stock Analysis Report
PPG INDS INC (
PPG
): Free Stock Analysis Report
SHERWIN WILLIAM (
SHW
): Free Stock Analysis Report
VALSPAR CORP (
VAL
): Free Stock Analysis Report
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