Hempel Coatings (Shenzhen) Company

The Hempel Coatings Corporation of SHENZHEN is founded as a joint venture between China Merchant International Group and Hempel Coatings Group in 1992, its head office in Hong Kong. Now, The Hempel Coatings Corporation of SHENZHEN has 3 factories in Mainland China. It's able to produce a full range of coatings products including marine, container, and protective decorative and road-marking paint. Hempel Coatings has become one of the major paint manufacturers and suppliers. The high quality paint from Hempel Coatings has been used in many famous projects in Mainland China and Hong Kong.Hempel is the earliest manufacturer of decorative paint in Mainland, which has a brilliant history. In 1990's, Hempel is facing competition from ICI and Nippon, and the share of market has decline rapidly. In 2001, Hempel took action named Prizm Plan to solve the problem in Guangzhou. Ogilvy has designed the plan and Hempel spent much money in the promotion. One half a year passed and the sales appeared unsuccessful in the area.The case introduces some background information of the plan. It also analyses the cause of failure. Hempel has difficulty in adjusting the plan and re-organizing the following task. Finally, we analyze marketing opportunities and develop marketing strategies for the future.