Page 6: Conclusion
With predictions of continued growth in the highly competitive decorative market, Akzo Nobel needs to respond quickly to all changes in conditions to remain the market leader. The market for DIY products is subject to external influences, due to its close relationship with the housing and fashion sectors. Historically, the housing market is one of the first sectors of the economy to be affected by a downturn in economic activity and can therefore be said to be highly income elastic.
Some external influences are predictable, to a greater or lesser extent, or will take some time to form. Others can come out of the blue. Careful analysis of all the relevant markets enables the company to forecast some trends. At the same time, Akzo Nobel operates in markets that are fiercely competitive.
At Akzo Nobel, the process of forecasting fashion in colour and the subsequent product development programme enables branding with the emphasis very much on image. Flexibility and adaptability are key to success in marketing these products.