top 6 on campus for the 1st edition of Asian Paints canvas

1. TEAM: DAILY MAAR-CUTTING IIM KOZHIKODE
Arnab Guha Mallik Ashutosh Vikram Mahesh Koppad
arnabgm15@iimk.ac.in ashutoshv15@iimk.ac.in maheshk15@iimk.ac.in
Ph: 8943994677 Ph:9745212105 8943455233

2. SITUATION ANALYSIS
 Asian paints is the market leader in the organized paints sector. But increasing competition and dealer loyalties a concern for
Asian Paints
 Lack of awareness among customers about paint brands. Role of influencers like painters, dealers is high. Customer involvement in
paint selection at the retail shops is low
 Traditional paints and hardware stores lack the ambience to attract the customers as well as the 2nd generation businessmen.
 Modern trades seem to be an emerging opportunity
CASE ANALYSIS METHODOLOGY
Industry Analysis
Competitve Analysis
Primary Research
Analysis of the business problems
Recommendations

3. INDIAN PAINT INDUSTRY
Dynamics:
 Estimated market size of INR 170 Billion and growing at a CAGR of 15%
Indian Paint industry
 Top 5 companies form 80% of sales in the organized sector Decorative Industrial (including automotive)
 Asian Paints growing over 15% and has market share of around 53% in organized sector
 High growth in emulsions and exteriors
25%
 Increasing customer involvement in painting process over the years
Drivers:
 Boom in residential and commercial projects 75%
 Increase in disposable income and need for ‘Showcase Homes’
 Shorter repainting cycles
 Increasing penetration in rural markets
Concerns:
 Rising prices of raw materials Market share of major players
 Slowdown in the economy Asian Paints Berger
 Increasing advertisement and promotion spends due to intense competition Kansai Nerolac ICI (AkzoNobel)
Others Unorganised sector
Characteristics of the supply chain
32%
35%
5% 11%
6%
11%
Source: Company,BCCIR

4. COMPETITIVE LANDSCAPE
Company
Strength Market leader in the paints Strong in premium end Focused on enamels and lower Leader in Industrial
industry paints/emulsion end paints paints, with half the sales
coming from auto industry
Major Brands Royale luxury Velvet touch trends, Velvet Illusions, Silk, Breatheasy, Impressions, Eco Clean, Beauty
emulsion, Premium touch, Guardian, Dulux Super Rangoli, Weathercoat all guard, Gold, Excel, Lustre, Suraksha
emulsion, Tractor, Apex Smooth, Weathershield, Prom Luxol, Bison, Walmasta
Ultima, Ace ise, Supercote
Distribution ~27000 5500 14000 11000
network (dealers)
Dealer Margin 2.5-3% 4-6% 4-6% 5-7%
Modern Stores Colour Ideas , Colour with Dulux Decorator Center Berger Paint Center Nerolac Color Stylers
Asian Paints
Competitors tinting machine Financial comparison of major players

5. Customers visiting the shop Customer colour selection behaviour
Series1
50%
35% 45%
30% 25%
15%
At the shop Pre-decided Enquiry
House owners Painters House owners +
Painters
• The number of home owners visiting the paint shop has increased over the • Almost 45% of the customers come to the paint shop having
years pre-decided the colour and brand they want
• 35% of the owners visit a paint shop along with a painter • 30% of the customers either are undecided of the brand or
change the brand at the shop based on dealer recommendation
• Only 15% of the house owners visit the shop alone
• Insight: The decision making power of customers in terms of
• Insight: Though the customer awareness in increasing due to advertisements brand and colour selection is increasing due to the ease of
and other promotional campaigns, still there is high dependency on the painter availability of shadecards , colour books and online tools
CONSUMER CHARACTERISTICS
Base Decorative coating
Premium Medium Popular
Buyer characteristic Up market buyers, achiever, quality & High income group & Upper middle Middle class & rural market,
fashion Seeker class, Socially conscious mostly low income group
Key purchasing factor Quality Quality and shades Cost
Research & Evaluation Brand loyal Brand loyal + Cost + variety seeking Cost
Purchase Company’s Authorized dealer paints the through dealer paint or purchasing Packet or paint can
customer house paint can of 1,2, 5, 10, litre
Post Purchase A warranty period for some years Limited or no warranty No warranty

6. “Asian Paints has the best supply chain and I get all my orders on time. Also I get printed
copies of my billing on time via mail and courier. Hence account reconciliation is not a bother”
- Owner, Malanad Hardwares, Kozhikode (Asian Paints PC)
“I do more than 10 crores business for Asian Paints annually and expect that I am
given exclusive products. I get higher margin in new brands”
- Owner, Fashion Paints, Cochin (Asian Paints SPPC)
EXISTING LOYALTY PROGRAMS
Contractor/Painters schemes (point based schemes)
•Painter meets are conducted to create awareness on new product launches
Dealer Loyalty program
•Masterstrokes loyalty scheme
•Golden Brush Award (GBA) : contractors doing 20kl business annually
•Bundle of benefits are given as per club annual targets
•Super Premium Applicator(SPA): contractors doing 40kl business annually
•Annual foreign trips (Colour Merchant program)
•Monthly scheme discounts
•Invited for Corporate dinners with family
•Recognition for work in the form of trophies and certificates Additions to the existing loyalty program
•Shop branding and merchandising •Exclusive products to be given to big dealers so that they can make extra margin
•Promoting secondary sales through colour consultants during the initial launch period
•Central order processing service (COPS)- professional call center •Dedicated salesperson such as a developer or a Relationship officer to be given to
to help avoiding calling the depots for order placing generate leads and improve secondary sales
•Frequent training programs for painters associated with the dealers
•Upgradation to colour ideas
Rationale: The existing open network policy has been Asian Paint’s strength. The loyalty programs are clearly defined as per different clubs. The
higher the sales, the higher the dealers gets more rewards. This is an incentive for small dealers to increase their shop share with AP. However
product exclusivity can be given to big dealers to help them gain additional margin. This can be during the initial few months of product launch

7. THE CHANGING CONSUMER LANDSCAPE
Boom in Indian Less India a young country
Housing Sector: Seasonality Rise in Income  India has more than 50% of its
population below the age of 25 and more
Increasing urbanization, cheaper About 65 per cent of the Lifestyle based spending by
demand for decorative paints than 65% below the age of 35. It is
housing loans and a shift from Indian middle class is helping
stems from repainting. Rising expected that, in 2020, the average age
semi-permanent to permanent decorative segment of this
aspirational levels, Shift in the industry. Contemporary wood of an Indian will be 29 years.
housing structures have been
driving growth in decorative perception of paints as having finish formulations are  Young India means, people have started
paints segment, which a protective value rather than replacing the more traditional investing in a house much earlier
constitutes 70% of the $2 billion a mere decorative have way and exterior emulsions  the average age of the paint buyer has
paint industry in India diminished the impact of take over from cement paints. gone down from 41 years in 2005 to 38 in
seasonality 2010
MODERN RETAIL: THE WAY FORWARD
Reasons:
•Modern trade is on a upward curve and is expected to boom in
the future as well
•Big retail chains are increasing their presence by reaching out to
smaller cities
•Convenience is the key for customers and “All in One Roof”
malls, hypermarkets are getting maximum footfalls.
Source: IBEF, Booz & Co. Analysis
Source: Technopak, Booz & Co. Analysis

8. ASIAN PAINTS: CURRENT MODERN RETAIL FORMATS
ASIAN PAINTS SIGNATURE STORE
 Designed to create an experience with colours and not as a paint sales point
 Colour Chef: Customers can create unique colour combinations
 ColourNext: Helps to choose from the latest trend colours
 Screen Test: Life sized screen to test the customer’s favourite combinations
 Colour Consultancy: In-house experts to advice on colour combinations
CONSTRAINTS FOR EXPANSION
ASIAN PAINTS COLOUR IDEAS:  Opening up more signature stores would
• Designed to to make the paint buying incur high investment for Asian paints
experience for the consumer a pleasurable  It is difficult to acquire land for such lavish
one stores in metros and tier 1 cities
• Painted Panels: Panels of Royale play and  Colour ideas stores require investment and
other emulsions are painted and displayed so shop space from the dealers, which all
that customers can touch and feel dealers might not agree to. So expansion is
• Colour Consultants: trained colour not easy
consultants along with an option to visualise  Colour ideas dealers tend to deal with
their colour choice on a state of art software multiple brands and are not exclsuive to AP.
So ROI is less
PROPOSED NEW RETAIL FORMATS
TIE UPS WITH RETAIL CHAINS ADVANTAGES FOR ASIAN PAINTS
• Asian Paints can tie-up with national retail chains such as Big •Gain from the increased penetration of the retail chains and high customer footfalls
Bazaar, More, Star India Bazaar, Spar Hypermarket etc. and •No need to invest in opening new stores
regional chains such as total malls, D-mart, N-mart etc. •Easy to connect with the family or female customers facilitating better decision making
process
ADVANTAGES FOR CUSTOMERS
•Complete shopping experience under a single roof
•Better ambience than traditional paint shops, encouraging customers to touch, feel and understand the brand

9. PROPOSED NEW RETAIL FORMATS
TIE UPS WITH CONSTRUCTION & HOME DÉCOR COMPANIES
 Lifestyle aspirations are high and the earning capacities are increasingly matching these
 Companies such as UltraTech, ACC, JK cement are foraying aspirations. People desire for a home that is ultra-plush and has a spectacular appeal. They
into retail formats to increase customer shopping want a home with quality and grandeur.
experience.  The luxury home decor market has seen a huge leap in the past few years. With an
 Eg: ‘UltraTech Building Solutions’ is tie up between increasing standard of living, most people want a home that will suit their lifestyles.
Berger and UltraTech cement  Exposure to luxurious living, coupled with peer pressure has given rise to a generation of
 Asian Paints can become exclusive partner with any of Indians for whom simple living is passé. As affordability for such living is still limited, this is a
these companies which will open up new avenues of sales small group, which will continue to grow.
Rationale: With the changing lifestyle and customers looking to save time and convenience in shopping, the retail chains have become major attractions. With
possibilities of FDI opening up very soon, big players like Walmart, Carrefour are waiting to lure Indian customers. So AP’s presence in such stores can give it an
edge over its competitors
LAYOUT
•Customers can get painting consultations from the Asian Paints outlets
located in malls like Big Bazar, More, Spencers, Spar Hypermarket etc
•These stores in Retail outlets will offer detailed information on the entire
line of paints and stains, as well as paint colour selection tools,
professional services, and educational programs.
•All these stores will be stocked with a wide variety of color chips and fan
decks, specialized lighting, and numerous publications on color and design.
Rationale:.
Since women avoid going in normal hardware shops, these outlets will also
help in increasing the Involvement of women in paint buying.
The retail shop becomes a one shot solution for all sort of buying for the
household, paint being one of them

10. ASIAN PAINTS: COLOUR STATIONS
Free, Personal Home Colour Help at Our Colour Stations:
• Get free, personalized home colour and design tips from a colour expert at our Colour
Station, located at shopping malls, airports etc.
• The colour experts at Asian Paint’s Colour Stations will provide you with a
complimentary 30-minute paint colour consultation for your home's interior or
exterior and help you find the best colours for your home
• Plus, any paint purchased through our Colour Stations will be shipped directly to
you, free of charge.
• What can we match?
If you have a flat sample of a colour, a piece of fabric, carpet, paper, wood, a tile or a
piece of existing paint - your local Stockist (with a Spectrophotometer) can match it.
The number of paint colours you can have is almost endless.
Engaging The 2nd Generation Retailers: Development of a Content
Management System
 An online content management system which can be accessed by the dealers
 The system will contain the information of all products in a digital format . All
information regarding the price, tinting formula, SKUs etc. will be provided. Colour
shades will also be provided
 Apart from the information, there will be various graphical user interfaces which will
provide real time information. It would be more like an application protocol interface
where Asian Paints will provide a panel where they can view all data.
 They can also see the inventory of each of the paint . 2 to 3 virtual depots will be
created which will represent the different depots and the stock they hold will be
visible.
 The benefit of the above CMS system will be faster replenishment of orders and
convenience.
Poor ambience, unhygienic environment, inventory pile ups, frequent arguments with painters, lack of technology usage are some of the reasons for the industry
being unattractive for the younger generation.
Asian Paints can upgrade their key accounts to colour ideas stores to attract customers as well as 2nd generation businessmen. AP can invest a certain % in the shop
to support dealers to upgrade on the basis of their future potential.

11. CUSTOMER ENGAGEMENT STRATEGIES: PRESENT OFFERINGS
CONSULTANCY/PAINT SERVICES TOOLS OTHERS
ONLINE Colour Scheme PRO : Mobile Home Painting guide: contains videos of
App Use photographs from the how to paint, paint procedures etc
Ask Aparna: Live chat with an operator gallery or click a new photograph
and match with the 1800 odd Painting tips:
Colour speak: You enter details about your colors. Share it with friends via
room, send a recent picture and get guided by in Gmail, Facebook and many other Color Tools: Pdf Files where various
house consultant, option of live chat available services gamut of colors are shown in various
shades, brands and style
OFFLINE/ PHYSICAL STORES
Samplers: 200 ml samples available in
Foresight Colour Combinations: Visit an Asian select store
Paints Colour World retail store which offers this
service, and furnish a digital photograph
(resolution 300-dpi or more) to the dealer.
Next, select a three shade combination, for digital Colour Dezigner is an online tool
painting.. for interior and exterior painting
projects.. You can choose from a
Asian Paints Colour Consultancy @ Home variety of images in our online
Library and try different colour
Project sales: 2 broad steps combinations on the image to find CUSTOMER FEEDBACK
• decision making step - It involves selection of the ones that best suit you save
paint product, finish, shade, etc and export your chosen Your VOICE:
• The painting step - which involves all activities combinations post your feedback, queries, etc. on any
ranging from hiring painting contractors to and all Asian Paints products and
post-painting care services.
Paint calculator
Write away and let us know what’s
Home Solutions: Hastle free paintings with trained going on at your end.
painters, 1 year warranty no hidden Search for a topic OR browse Categories
cost, supervised painting, The wall fashion range of VIEW
themes offer 21 different signature looks for Complaints, Queries, Appreciation, and
various rooms. GIVE FEEDBACK.
New strategies + tools proposed in the next slide

12. IMPROVING CUSTOMER INVOLVEMENT PULL
CONVENIENCE AND MOBILITY
COLOUR ON DEMAND
 Asian paint Trendz 2013 colours a new collection, will be painted on
hoardings, walls, boards at malls, airports, movie theaters etc.
 Below each colour will be a QR code.
 Customers have to scan the QR code with their smartphone to get the
name and code of the colour
 They can take this to any asian paint store be it a colour station or a
colour world and ask for the colour, get price details etc.
BRING YOUR OWN COLOURS
If you like any random colour around you, just take a snap of it with your
mobile phone and bring it to the nearest Asian paints retail to buy, match or
to get a tip
NEW FEATURES IN COLOUR SCHEME PRO APP NEW FEATURES: WEBSITE
Store Locator: Nearest store locator be it colour stations, colour ideas or MY PERSONALITY COLOUR QUIZ
colour worlds using GPS
Customer feedback: Add the Your Voice feature present in the website One will be asked 6-7 questions related to what one perceives himself, what others
perceive, how one will behave in different situations, preferences etc.
RATIONALE These questions are predefined with a specific answers. The outcomes will be
 Predicted CAGR of 39.2% from 2010-16 different personality with colours specified /suggested for each for eg. personality
 The current market size is 56.5 million USD and is expected to grow to  calm
125 million USD in 2013 huge rise
 Every customer spends more than 2.5 hours per day with their handset
 900 mobile users in India in 2012 estimated to grow by 26% in 2013.
 70% of the mobile users metros and tier I cities
 often customers are not aware of the latest colour trendz which will
basically be a collection of most popular colours
 Strategic placing in airports and malls
 The newly launched colour stations will be placed in malls and airports.
Purpose served: 1ST ENGAGEMENT THEN CONVERSION

13. NEW FEATURES: WEBSITE
COLOUR TOOLBAR
An interactive web-based tool that allows you to select any online image and
instantly identify the colours contained within the picture.
Create a profile at www.asianpaints.com/colourtoolbar and then add the
“Colour toolbar” bookmark to your internet browser toolbar. This bookmark
allows you to identify up to 20 Asian Paint colours represented in online
photos simply by scrolling over the image.
photo and colour palette can be added to your Colour Toolbar!! profile, can
be shared or printed.
PURPOSE SOLVED: CUSTOMER ENGAGEMENT which leads to better brand
perception. The pic to the right shows the feature
PRESENCE ON SOCIAL MEDIA Social media is an opportunity that can no longer be ignored
According to Forrester Research 55% of consumers want ongoing conversations with companies and brands. 89% said they would feel more loyal to a brand if they were
invited to take part in a feedback group. We as a team suggest some SOCIAL MEDIA STRATEGIES AND EVENTS TO DRIVE LOYALTY, ENGAGEMENT and REVENUE
We suggest nothing ground breaking; just extending the services available on web onto Facebook
It is essential to Negative word-of-
Create new apps on Facebook for each of the following: engage with mouth spreads
 Customer Feedback: YOUR VOICE  easy and convenient customers to fast especially in
 Colour speak: Online chat with consultant attract new the social media
 Online appointment with colour consultant @home services customers as well and it is essential
 Colour Dezigner : on Facebook also drives engagement as to understand to engage
 Colour calculator the needs of proactively with
 Sampler + Store locator: One can choose samples and know the nearest stores or just customers such customers
enter his/her zip code to get the nearest Asian paint store
 Painting tips + colour tools + home painting guide to be clubbed under one app
THE VALUE OF SOCIAL MEDIA??
USE SOCIAL MEDIA to announce new “Color Collections” , new products, new retail stores  Social media should not be isolated or stand alone. We must
or colour stations or to hold new contests to drive customer engagement Integrate all of our marketing tools to work TOGETHER and even
pass through each other

14. THANK YOU