Valspar Intros New Color Program - Analyst Blog

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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).


 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: LOW , PPG , SHW , VAL

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