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Asian Paints: Royale
                                   Luxury Emulsion
                                                        4 P‟s Of Marketing

                                                       By:
                                                       Manish Shivani
                                                       ITM Business School
                                                       Mumbai




16 July 2009   Manish Shivani – ITM Business School, Mumbai
Introduction
•   Vision:
    "Asian Paints aims to become one of the top five Decorative coatings
    companies world-wide by leveraging its expertise in the higher
    growth emerging markets. Simultaneously, the company intends to
    build long term value in the Industrial coatings business through
    alliances with established global partners."
•   Mission
    Asian Paints aims to become the largest decorative paint company
    in the world and to rank among the top 5 paint manufacturing
    companies of the world.




                 16 July 2009   Manish Shivani – ITM Business School, Mumbai
Introduction
•   Asian Paints was established on 1Feb 1942, with name “Asian Oil &
    Paint Company”, with great determination of Mr. C. H. Choksey.
•   Asian Paints is India's largest paint company and the third largest
    paint company in Asia today
•   It‟s a 3000 crore Indian MNC and is amongst top 10 decorative paint
    companies in India.
•   Asian Paints operates in 22 countries and has 30 paint
    manufacturing facilities in the world-servicing consumers in over 65
    countries.
•   Forbes Global magazine USA ranked Asian Paints among the 200
    Best Small Companies in the World for 2002 and 2003 and
    presented the 'Best under a Billion' award, to the company.
•   Asian Paints has a 50:50 joint venture with Pittsburgh Paints and
    Glass Industries (PPG) of USA, the world leader in automotive
    coatings, to meet the increasing demand of the Indian automotive
    industry - www.asianppg.com.




                 16 July 2009   Manish Shivani – ITM Business School, Mumbai
Asian Paints




               PRODUCT MIX




16 July 2009   Manish Shivani – ITM Business School, Mumbai
PRODUCT

                                   Asian
                                   Paints




       Decorative                                          Industrial




                  New Wall                                 Powder          Protective
Fresh Coat                           Automotive
                  Finishes                                 Coatings        Coatings




             16 July 2009   Manish Shivani – ITM Business School, Mumbai
PRODUCT MIX
                                              ASIAN PAINTS




                                                                  METAL FINISHES       WOOD
                                INTERIOR         EXTERIOR                             FINISHES
          ANCILLARIES 8
                                    9               6                   6
                                                                                          4


1.DECOPRIME SYNTHETIC     1.ROYALE LUXURY     1. APEX EXTERIOR   1.APCOILITE       1.PU WOOD
CEMENT PRIMER-ST          EMULSION            EMULSION           PREMIUM GLOSS     FINISH
2.DECOPROME SYNTHETIC     2. PREMIUM          2.APEX TEXTURED    ENAMEL            2.AP MELAMYNE
CEMENT PRIMER – WT        EMULSION            EXTREIOR           2.APCOLITE        3.TOUCHWOOD
3.TRACTOR OIL PRIMER      3.TRACTOR
                                              EMULSION           PREMIUM SATIN     4.APCOLITE
4.METAL PRIMER            EMULSION
                                              3.APEX ULTIMA      ENAMEL            CLEAR
CORRSION RESISTANT        4.INTERIOR WALL
5.AP ACRYLIC WALL PUTTY   FINISH MATT         EXTERIOR           3.GATTU ENAMEL    SYNTHETIC
6.APCOLITE KNIFING        5.INTERIOR WALL     EMULSION           4.UTSAV ENAMEL
PASTE FILLER              FINISH LUSTURE      4.ACE EXTERIOR     5.APCOLITE
7.ASIAN NC CLEAR WOOD     6.TRACTOR ACRYLIC   EMULSION           HAMMERTONE
FILLER                    DISTEMPOR           5. EXTERIOR WALL   6.3 MANGOES
8.APCOLITE UNIVERSAL      7.AP TRACTOR        PRIMER             ALUMINIUM
STAINER                   SYNTHETIC           6. EXTERIOR        PAINT
9.APCOLITE WOOD STAINS    DISTEMPOR           SEALER
                          8.UTSAV ACRYLIC
                          DISTEMPOR
Market Share: Paint Industry

             OVERALL MARKET SHARE


          18                                                      Asian Paints
                                      33
    7                                                             Kansai Nerolac
6                                                                 Berger Paints
                                                                  ICI Paints
    9
                                 18                               Jenson & Nicholsan
           9
                                                                  Shalimar Paints
                                                                  Other


          16 July 2009   Manish Shivani – ITM Business School, Mumbai
Market Share: Decorative Segments


                 DECORATIVE SEGMENT

        Others 19%                                                         Asian Paints
Shalimar 6%                                                                    38%

Jenson and
 Nicholson
   5%
                                                             Kansai
      ICI 9%
                                                           Nerolac 14%
         Berger paints
            9%
                   Source: Asit C Mehta, Company Report, 15 April 2008


             16 July 2009   Manish Shivani – ITM Business School, Mumbai
Asian Paints: Royale Luxury
         Emulsion
     4 P‟s of Marketing

                      PRODUCT




16 July 2009   Manish Shivani – ITM Business School, Mumbai
PRODUCT

•   Asian Paints Royale Luxury Sheen Emulsion is a water-based, 100%
    acrylic, interior wall finish.
•   Royale provides a silky sheen finish which lends a soft regal glow to the interiors
    of the room.
•   Royale has excellent flow giving a near brush mark free finish.
•   Royale also offers high stain resistance - walls painted with Royale are easy to
    clean and maintain that new look for years.
•   Royale also offers good anti-fungal properties.
              Attribute                        Asian Paints Royale
              Coverage                          325-350 Sq. ft/Lt

              Drying time                           15-20 min
              Gloss                                Soft Sheen
              Shelf Life                              3 Yrs
              Stability of Thinned Paint        Use within 24 Hrs.
PRODUCT

                          Market Share

6%
             8%
9%                                  42%                        Asian Paints Royale
                                                               ICI Velvet Touch
                                                               Nerolac Impressions
 35%                                                           Berger Luxol Silk
                                                               Others


 Source: Business Standard, August 2007

        16 July 2009   Manish Shivani – ITM Business School, Mumbai
PRODUCT

• Line Stretching:
  – Up Market Stretch: Royale Play                                    (Rs. 505/lt.)




  – Down Market Stretch: Royale Shyne (Rs. 305/lt.)


   Enhanced Durability   Smoother Finish   Anti-Fungal Shield      Enhanced
                                                                Stain Resistance
Product Level




                                                   PRODUCT
                                                    PRODUCT LEVEL
          •     Basic Product: The basic need for a paint is to protect the wall from
                cracks, leaks, make it look clean, make an proper ambience etc.

          •     Expected Product: Decorative or Industrial paints, further more like multi choice
                colors, oil based, mat finish, distemper, primer, wall paint, floor paint, metal
                paint, wood finish, powder coating, protective coating, fresh coats etc. This level
                fulfills customer‟s requirement and their needs.

          •     Augmented Product: Paint should be of acrylic type, washable, sunlight
                protected, leaks proof, long lasting, chemical base so it dries fast, polished etc.

          •     Potential Product: Here the customer future requirement is judged and tries to
                give any such kind of product so we can say a kind of „mass customization‟
                product. Some example can be like getting paints which are pearl kind
                shining, reflective, mirror view color etc.
                               16 July 2009   Manish Shivani – ITM Business School, Mumbai
Asian Paints, 4 P‟s of Marketing


                                PRICE

  Royale Luxury Emulsion




   16 July 2009   Manish Shivani – ITM Business School, Mumbai
Pricing

• Royale luxury Emulsion is placed as
  a luxury emulsion.
• Pricing strategy adopted is value
  based pricing.
• Price range 315-345 for 1Lts.


        16 July 2009   Manish Shivani – ITM Business School, Mumbai
Pricing
                          Attribute Comparison
  Attribute           Asian Paints                 ICI Velvet Touch            Nerolac 24 carat
                        Royale                                                   Impression



  Coverage         320-350 sq. ft/Lt               300-325 sq. ft/Lt           220-240 sq. ft/Lt

 Drying Time            15-20 min                       20-25 min                  30 min

  Shelf Life                3 Yrs.                          2 Yrs.                  1 Yrs.

Value Addition                  BEST                         GOOD                 AVERAGE

                 16 July 2009   Manish Shivani – ITM Business School, Mumbai
Asian Paints, 4 P‟s of Marketing


                                PLACE

  Royale Luxury Emulsion




   16 July 2009   Manish Shivani – ITM Business School, Mumbai
PLACE

• Extensive distribution network of:
  –   4 Manufacturing units
  –   6 Regional distribution centers
  –   55 Depots
  –   15,000 Dealers(Urban + Rural)
  –   90,000 Sub Dealers
• Exclusive 3000 Asian Paints Store.
• 4500 Color World Stores.
           16 July 2009   Manish Shivani – ITM Business School, Mumbai
PLACE

AP bypassed the bulk buyer segment and
went to individual consumers of paints.
AP went slow on urban areas and
concentrated on semi-urban and rural areas.
AP went retail.
AP went in for an open-door dealer policy.
AP voted for nationwide marketing /
distribution.

       16 July 2009   Manish Shivani – ITM Business School, Mumbai
Asian Paints, 4 P‟s of Marketing


                          Promotion

  Royale Luxury Emulsion




   16 July 2009   Manish Shivani – ITM Business School, Mumbai
Promotion Mix

•   Advertising
•   Public Relations
•   Sales Promotion
•   External Communication
•   Events and Exhibitions


          16 July 2009   Manish Shivani – ITM Business School, Mumbai
Promotion Mix
                       Advertising: Electronic Ad’s
•   The promotional strategy adopted by Asian is quite unique.
    The company is using high profile brand ambassadors like
    Akshay Khanna, Saif Ali khan & Soha Ali Khan” to promote
    Royale Luxury Emulsion.




              16 July 2009   Manish Shivani – ITM Business School, Mumbai
Promotion Mix
                 Advertising: Electronic Ad’s

• Some other Ad includes:




        16 July 2009   Manish Shivani – ITM Business School, Mumbai
Promotion Mix
         Advertising: Print Ad’s




16 July 2009   Manish Shivani – ITM Business School, Mumbai
Promotion Mix
                              Public Relation
•   The Public Relations of the Asian Paints is divided mainly in
    two parts. They are:

•   Marketing Public Relations
     –   Dealers Meeting
     –   Painters Meeting
     –   New Product Launch


•   Corporate Public Relations
     –   Communication
     –   Investors
     –   CSR
     –   Media                   16 July 2009   Manish Shivani – ITM Business School, Mumbai
Promotion Mix
                          Sales Promotion
• Dealers Meeting (quarterly).
• Painters Meeting (annually).
• Incentives to Painters(Token
  Exchange, Cash in the Bucket).
• Privilege Club Members.
• Distributing merchandise to painters
  such as T-shirts, caps etc.
        16 July 2009   Manish Shivani – ITM Business School, Mumbai
Promotion Mix
                                External Communication


Home Solutions

 Colour World

Online Consultancy


 Helpline

Estimate Calculator

 Paint Selector


                      16 July 2009   Manish Shivani – ITM Business School, Mumbai
Promotion Mix
External Communication
Promotion Mix
                                EVENTS



• Asian Paints Sharad Shamman
• Sponsored Star Screen Awards from
  year 2000-2004.



        16 July 2009   Manish Shivani – ITM Business School, Mumbai
Refrences

• Primary Data:
   – Mr. Manpreet Kohli (TSI), A.P.,
• Secondary Data:
   – www.asianpaints.com
   – www.moneycontrol.com
   – www.businessstandard.com
   – www.financialexpress.com
   – Asit C. Mehta Company report
           16 July 2009   Manish Shivani – ITM Business School, Mumbai
Thank You




16 July 2009   Manish Shivani – ITM Business School, Mumbai

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Asian Paints 4 p's Royale Luxury Emulsion

  • 1. Asian Paints: Royale Luxury Emulsion 4 P‟s Of Marketing By: Manish Shivani ITM Business School Mumbai 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 2. Introduction • Vision: "Asian Paints aims to become one of the top five Decorative coatings companies world-wide by leveraging its expertise in the higher growth emerging markets. Simultaneously, the company intends to build long term value in the Industrial coatings business through alliances with established global partners." • Mission Asian Paints aims to become the largest decorative paint company in the world and to rank among the top 5 paint manufacturing companies of the world. 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 3. Introduction • Asian Paints was established on 1Feb 1942, with name “Asian Oil & Paint Company”, with great determination of Mr. C. H. Choksey. • Asian Paints is India's largest paint company and the third largest paint company in Asia today • It‟s a 3000 crore Indian MNC and is amongst top 10 decorative paint companies in India. • Asian Paints operates in 22 countries and has 30 paint manufacturing facilities in the world-servicing consumers in over 65 countries. • Forbes Global magazine USA ranked Asian Paints among the 200 Best Small Companies in the World for 2002 and 2003 and presented the 'Best under a Billion' award, to the company. • Asian Paints has a 50:50 joint venture with Pittsburgh Paints and Glass Industries (PPG) of USA, the world leader in automotive coatings, to meet the increasing demand of the Indian automotive industry - www.asianppg.com. 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 4. Asian Paints PRODUCT MIX 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 5. PRODUCT Asian Paints Decorative Industrial New Wall Powder Protective Fresh Coat Automotive Finishes Coatings Coatings 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 6. PRODUCT MIX ASIAN PAINTS METAL FINISHES WOOD INTERIOR EXTERIOR FINISHES ANCILLARIES 8 9 6 6 4 1.DECOPRIME SYNTHETIC 1.ROYALE LUXURY 1. APEX EXTERIOR 1.APCOILITE 1.PU WOOD CEMENT PRIMER-ST EMULSION EMULSION PREMIUM GLOSS FINISH 2.DECOPROME SYNTHETIC 2. PREMIUM 2.APEX TEXTURED ENAMEL 2.AP MELAMYNE CEMENT PRIMER – WT EMULSION EXTREIOR 2.APCOLITE 3.TOUCHWOOD 3.TRACTOR OIL PRIMER 3.TRACTOR EMULSION PREMIUM SATIN 4.APCOLITE 4.METAL PRIMER EMULSION 3.APEX ULTIMA ENAMEL CLEAR CORRSION RESISTANT 4.INTERIOR WALL 5.AP ACRYLIC WALL PUTTY FINISH MATT EXTERIOR 3.GATTU ENAMEL SYNTHETIC 6.APCOLITE KNIFING 5.INTERIOR WALL EMULSION 4.UTSAV ENAMEL PASTE FILLER FINISH LUSTURE 4.ACE EXTERIOR 5.APCOLITE 7.ASIAN NC CLEAR WOOD 6.TRACTOR ACRYLIC EMULSION HAMMERTONE FILLER DISTEMPOR 5. EXTERIOR WALL 6.3 MANGOES 8.APCOLITE UNIVERSAL 7.AP TRACTOR PRIMER ALUMINIUM STAINER SYNTHETIC 6. EXTERIOR PAINT 9.APCOLITE WOOD STAINS DISTEMPOR SEALER 8.UTSAV ACRYLIC DISTEMPOR
  • 7. Market Share: Paint Industry OVERALL MARKET SHARE 18 Asian Paints 33 7 Kansai Nerolac 6 Berger Paints ICI Paints 9 18 Jenson & Nicholsan 9 Shalimar Paints Other 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 8. Market Share: Decorative Segments DECORATIVE SEGMENT Others 19% Asian Paints Shalimar 6% 38% Jenson and Nicholson 5% Kansai ICI 9% Nerolac 14% Berger paints 9% Source: Asit C Mehta, Company Report, 15 April 2008 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 9. Asian Paints: Royale Luxury Emulsion 4 P‟s of Marketing PRODUCT 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 10. PRODUCT • Asian Paints Royale Luxury Sheen Emulsion is a water-based, 100% acrylic, interior wall finish. • Royale provides a silky sheen finish which lends a soft regal glow to the interiors of the room. • Royale has excellent flow giving a near brush mark free finish. • Royale also offers high stain resistance - walls painted with Royale are easy to clean and maintain that new look for years. • Royale also offers good anti-fungal properties. Attribute Asian Paints Royale Coverage 325-350 Sq. ft/Lt Drying time 15-20 min Gloss Soft Sheen Shelf Life 3 Yrs Stability of Thinned Paint Use within 24 Hrs.
  • 11. PRODUCT Market Share 6% 8% 9% 42% Asian Paints Royale ICI Velvet Touch Nerolac Impressions 35% Berger Luxol Silk Others Source: Business Standard, August 2007 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 12. PRODUCT • Line Stretching: – Up Market Stretch: Royale Play (Rs. 505/lt.) – Down Market Stretch: Royale Shyne (Rs. 305/lt.) Enhanced Durability Smoother Finish Anti-Fungal Shield Enhanced Stain Resistance
  • 13. Product Level PRODUCT PRODUCT LEVEL • Basic Product: The basic need for a paint is to protect the wall from cracks, leaks, make it look clean, make an proper ambience etc. • Expected Product: Decorative or Industrial paints, further more like multi choice colors, oil based, mat finish, distemper, primer, wall paint, floor paint, metal paint, wood finish, powder coating, protective coating, fresh coats etc. This level fulfills customer‟s requirement and their needs. • Augmented Product: Paint should be of acrylic type, washable, sunlight protected, leaks proof, long lasting, chemical base so it dries fast, polished etc. • Potential Product: Here the customer future requirement is judged and tries to give any such kind of product so we can say a kind of „mass customization‟ product. Some example can be like getting paints which are pearl kind shining, reflective, mirror view color etc. 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 14. Asian Paints, 4 P‟s of Marketing PRICE Royale Luxury Emulsion 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 15. Pricing • Royale luxury Emulsion is placed as a luxury emulsion. • Pricing strategy adopted is value based pricing. • Price range 315-345 for 1Lts. 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 16. Pricing Attribute Comparison Attribute Asian Paints ICI Velvet Touch Nerolac 24 carat Royale Impression Coverage 320-350 sq. ft/Lt 300-325 sq. ft/Lt 220-240 sq. ft/Lt Drying Time 15-20 min 20-25 min 30 min Shelf Life 3 Yrs. 2 Yrs. 1 Yrs. Value Addition BEST GOOD AVERAGE 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 17. Asian Paints, 4 P‟s of Marketing PLACE Royale Luxury Emulsion 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 18. PLACE • Extensive distribution network of: – 4 Manufacturing units – 6 Regional distribution centers – 55 Depots – 15,000 Dealers(Urban + Rural) – 90,000 Sub Dealers • Exclusive 3000 Asian Paints Store. • 4500 Color World Stores. 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 19. PLACE AP bypassed the bulk buyer segment and went to individual consumers of paints. AP went slow on urban areas and concentrated on semi-urban and rural areas. AP went retail. AP went in for an open-door dealer policy. AP voted for nationwide marketing / distribution. 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 20. Asian Paints, 4 P‟s of Marketing Promotion Royale Luxury Emulsion 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 21. Promotion Mix • Advertising • Public Relations • Sales Promotion • External Communication • Events and Exhibitions 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 22. Promotion Mix Advertising: Electronic Ad’s • The promotional strategy adopted by Asian is quite unique. The company is using high profile brand ambassadors like Akshay Khanna, Saif Ali khan & Soha Ali Khan” to promote Royale Luxury Emulsion. 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 23. Promotion Mix Advertising: Electronic Ad’s • Some other Ad includes: 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 24. Promotion Mix Advertising: Print Ad’s 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 25. Promotion Mix Public Relation • The Public Relations of the Asian Paints is divided mainly in two parts. They are: • Marketing Public Relations – Dealers Meeting – Painters Meeting – New Product Launch • Corporate Public Relations – Communication – Investors – CSR – Media 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 26. Promotion Mix Sales Promotion • Dealers Meeting (quarterly). • Painters Meeting (annually). • Incentives to Painters(Token Exchange, Cash in the Bucket). • Privilege Club Members. • Distributing merchandise to painters such as T-shirts, caps etc. 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 27. Promotion Mix External Communication Home Solutions Colour World Online Consultancy Helpline Estimate Calculator Paint Selector 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 29. Promotion Mix EVENTS • Asian Paints Sharad Shamman • Sponsored Star Screen Awards from year 2000-2004. 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 30. Refrences • Primary Data: – Mr. Manpreet Kohli (TSI), A.P., • Secondary Data: – www.asianpaints.com – www.moneycontrol.com – www.businessstandard.com – www.financialexpress.com – Asit C. Mehta Company report 16 July 2009 Manish Shivani – ITM Business School, Mumbai
  • 31. Thank You 16 July 2009 Manish Shivani – ITM Business School, Mumbai