3. MARKET SHARE OF MAJOR PLAYERS IN
INDIA
UNORGANIZED ASIAN PAINTS
SECTOR 32%
35%
BERGER
KANSAI 11%
11%
OTHERS
5% ICI(AKZO
NOBEL)
6%
4. COMPANIES REPORT CARD
Company 10 year X-ray Future prospects
Asian paints Green Green
Kansai Nerolac Orange Green
Berger paints Green Green
Akzo Nobel Red Orange
Shalimar paints Orange orange
5. INDIAN PAINT INDUSTRY
GROWTH IN VOLUMES
18% 18%
16% 16%
14% 14%
13% 13%
2005 2006 2007 2008 2009 2010 2011(E) 2012(E)
6. REVENUE BREAK DOWN OF
INDIAN PAINT INDUSTRY
EXTERIOR WOOD FINISH
EMULSION 2%
12%
INTERIOR
EMULSION ENAMELS
17% 50%
DISTEMPER
19%
9. INTRODUCTION
• Started By -- CHAMPAK LAL CHOKSEY
-- CHIMAN LAL CHOKSI
--SURYA KANT DANI
--ARVIND VAKIL
• ON 1st feb,1942
• Manufactured paint in a GARAGE of BOMBAY
• THE ASIAN OIL & PAINT CO.
-Randomly picked from TELEPHONE DIRECTORY
10. JOURNEY OF ASIAN PAINT
0.35 million(1945)-77.06million(2011)
• 1945- Registered as PVT.CO.
• 1954- Mascot-GATTU by R.K.LAKSHMAN
• 1965- ASIAN OIL & PAINT PVT.LTD changed to
ASIAN PAINTS (INDIAN)PVT.LTD
• 1968- MARKET LEADER
• 1973- converted to PUBLIC LTD.CO.
• 1974- BHANDUP(M.H.) declared largest paint factoty
• 1985- 3rd plant at patancheru(A.P.) near hyderabad
4th plant in KASNA (U.P.) & agreement with NIPPON of JAPAN
• 1990- ASIAN PAINTS joint ventures in FIJI ,TONGA,NEPAL,SRILANKA
• 1996- 5th plant in RATNAGIRI.
• 2000- year of GLOBALISATION
• plant in OMAN & MAURITIUS & acquired business of PACIFIC
PAINTS(AUSTRALIA) &DELMEGE FORSYTH &CO. of SRILANKA
2006 –plant at baddi for powder coating
• 2008- constuction of new plant at rohtak
11. ASIAN PAINT- CURRENT POSITION
• India’s largest paint company
• Asia’s third largest paint company, with a turnover of Rs
77.06 billion
• Forbes Global -among the 200 Best Small
Companies(2002,2003) and presented the 'Best under a
Billion' award(ASIA’s), to the company.
• Asian Paints is the only paint company in the world to
receive this recognition(2005,2006,2007).
• Double the size of any other paint company in India.
• IN Asia's Fab 50 List by Forbes Asia Magazine (Sept 2011
Issue)
• New plant at pune
• 87th valuable brand in india
13. ASIAN PAINT
SALES OUTSIDE INDIA
SOUTH PACIFIC
7%
SOUTH EAST ASIA
8%
SOUTH ASIA
15%
MIDDLE EAST
54%
CARIBBEAN
16%
14.
15. STRATEGIES
• REMOTEST CORNER
• SMALLER TOWNS
• GATTU
• SMALL PACKS
• CLOSE RELATION WITH DEALERS
• 1990s-Target by LOWERING prices(consumers are brand consicous and involved)
• Logo was changed
• O & M strategy of EVERY HOME HAS A STORY TO TELL
• VERTICAL INTEGRATION (PENTAERYTHRITOL & PHTHALIC ANHYDRIDE(PAN)
• 1998- SHADECARD,one stop colour machine,excusive showroom in mumbai
• 2004 –positioned as umbrella brand,
• 2007-TIE UP WITH IIT
• HORIZONTAL INTEGRATION (VINYL PYRINDINE LATEX)FOR RUBBER TYRES
• Early 2000 Direct link with customers through help lines.
• Covers all the segment , KIDS WORLD,PAINT CALCULATOR
• Discounts to attract retailers , PROFESSIONAL PAINTING SERVICE
• Ads creates emotional. psychological and social contact among the customers
19. MARKETING MIX
PRICE PRODUCT/QUALITY
-WALL PAINTS
-ROYAL FOR PREMIUM SEGMENT -METAL PAINTS
-APCOLITE FOR MIDDLE SEGMENT -WOOD FINISHES
-TRACTOR,UTSAV FOR LOWER SEGMENT -BACKWARD INTEGRATION (PAN)
-PYRINEDINE LATEX FOR RUBBER TYRES
4p’s of
ASIAN PAINTS
PLACE/DISTRIBUTION PROMOTION/ADVERTISEMENT
-23 PLANTS -WARRANTY SCHEME
-90 DEPOTS -50 ML PACKS
-2500 SKU’S -GATTU -
SAIF ALI KHAN (ROYAL)FOR PREMIUM CLASS
-27000 RETAILERS
-BADIYA HAI CAMPAIGN(MIDDLE CLASS HOUSEHOLDS)
20. DISTRIBUTION CHANNEL
800 RAW MATERIAL SUPPLIERS
350 PACKING MATERIAL VENDORS
2 CHEMICAL PLANTS,21 MANUFACTURING
CENTRES,OPERATING IN 17 COUNTRIES,6 SUBSIDARIES
4500 EMPLOYEES,SERVICING CONSUMERS IN 65 COUNTRIES
6 DIVISIONS
90 DEPOTS,2500 SKU’S,27000 RETAILERS,95000 SUB RETAILERS
21. STREGNTH WEAKNESS
-market leader(32% share) Industrial business performing below par
-capacity expansion plans -hiccups in international business(strife in
-Pricing power egypt , bahrain)
-manufactures PAN -international presence restricted to small
pockets
-wide distribution network
-Gattu
SWOT
analysis
OPPORTUNITIES THREATS
Increasing market share in industrial share Domination of few foreign players
Developing market in automobile sector High tech instant spot fixing colour
Automated paint blending in retail points
22. BCG matrix
CASH COWS
STARS
-WALL PAINTS(INTERIOR&EXTERIOR
-METAL/INDUSTRIAL PAINTS
PAINTS)
-wood finishes(vamish,polish)
-DECORATIVE PAINTS
BCG
MATRIX
Question marks
Dogs
-APIL produts launched in abroad
-marine paints,automotive paints
thro’ joint ventures in
and others(black board paints)
fiji,nepal,solomon,islands,australia
23. Turning Points in the Paint Industry
of India
• Governed by FERA (Foreign Exchange Regulations Act) and
MRTP (Monopolies & Restrictive Trade Practices Act)
• Restricted from enhancing their production capacity. With the
advent of liberalization these shackles were taken off and the
industry expanded.
• Reduction of import duty from 40% to 15.3%
25. Q1.THE CUSTOMER TODAY IS MUCH MORE INVOLVED WITH THE
PROCESS OF PAINTING AND IS LOOKING AT THE WHOLE
EXPERIENCE OF INTERIOR DECORATIN AS WELL AS PAINTING AS AN
EXPRESSION OF THEIR PERSONALITIES.THEY ARE BUYING INTO A
PRODUCT THAT’S PROMISING SELF EXPRESSION SOPHISTICATION
TCHNOLOGY AND EVEN SERVICES
Q2.HOW SHOULD APIL’S ADVERTISING EVOLVE ITSELF TO REMAIN
CONTINUOSLY RELEVANT TO THESE CUSTOMER?
ANS- ASIAN PAINTS GIVES THE WARRANTY OF PAINTS FOR 7 YEARS
ASIAN PAINTS SAME PRICE WITH OTHER
USES THE SMALL PACKS
WIDE COLLECTION OF SHADE CARDS
27. Q3. HOW SHOULD APIL AS A MARKET LEADER
IN DECORATIVE PAINT CATEOGRY UPGRADE
ITS CUSTOMERS TO VALUE ADDED/SUPERIOR
QUALITY/HIGH MARGIN PRODUTS
ANS- HIGH CLASS PRODUCTS
RURAL CUSTOMERS-DARK COLOURS
URBAN CUSTOMERS-LIGHT COLOURS
28. LIFE CYCLE OF ASIAN PAINTS
PERIOD PHASE STRATEGY
1942-1967 Evolution Comp from MNC
, innovations ,quality
1967-1982 Extension/consolidation Across border ,
innovation in new
categories
1982-1986 Years of excellence Campaign spectrum of
excellence ,
connectivity with sales
set
1987-1997 Moving closer to Celebrate with asian
consumer paints
1997-1999 Changing rules of game Helpline , paint
calculator , shade card
2000 onwards The new asian paint CRM
