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Asian paints ppt

Introduction to Asian paints and its marketing and business strategy

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Asian paints ppt

  1. 1. asian Paints
  2. 2. Paint Industry Paint industry estimated at INR 135bn. Unorganized sector accounts to 35% of paint market. Volume growth estimated at 15%. India’s share in the world paint market is 1.6%. Per capita consumption of paint in India is 1.2kg/annum.
  3. 3. Introduction to Asian Paints Started in 1942 by four entrepreneurs: Choksey Bros, “ASIAN OIL & PAINTS COMPANY.” In 1967, Asian paints became the 10th largest paint company in the world. In 1973, AP became a public ltd company. In 2002. AP was a market leader of Indian Decorative Paints
  4. 4. Introduction to Asian Paints Turnover of INR 7750 crore ($1.73 Bn) Asian Paints along with its subsidiaries have operations in 17 countries across the world Consist of 23 paint manufacturing facilities Asian Paints has two alliances, one with PPG Industries USA & other with Protech Chemicals, Canada.
  5. 5. 6
  6. 6. Competitors Market Share in India
  7. 7. Segments Decorative Paintssegments Paint Industrial Paints Phthatic Anhydried Chemicals Penraerythritol
  8. 8. Interior Paints Exterior Paints Wood Furnishes Wood & Metal FurnishesProduct Profile
  9. 9. Group subsidiaries  Company in South pacific island.  AP operates in Australia, Fiji, Tonga,Soloman Island under brand name APCO.  England based Company. In 2002, became part of AP
  10. 10. Continued Egypt company which became part of AP in August 2002 US Company with 50:50 equity sharing with AP in 1997. Pittsburgh Paints and Glass Industries (PPG), USA Fiji company became a part of AP in September 2003.
  11. 11. Indian Manufacturing PlantsAsian PlantsBhandup (Maharashtra) in India Asian Plants Kasna (Uttar Pradesh) in India Asian Plants Asian Plants Sriperumbudur in India (Rohtak, Haryana)
  12. 12. OverseasBerger International Plants Berger International PlantsBarbados Berger International Plants Bahrain Jamaica Berger International Plants Berger International Plants Singapore Trinidad
  13. 13. RETAIL INITIATIVESAsian Paints has fostered a customer-centric approach to businessAsian Paints Home Solutions Offers a “painted surface” vs. just “paint” Aimed at controlling the quality of end product
  14. 14. Brand Mascot
  15. 15. Growth StrategiesGrowth Strategy: To increase sales growth rate of the group beyond past levels using a two-pronged approach:Organic InorganicGrowth Growth Market Share International Gain M & A’s Market Domestic Expansion M & A’s
  16. 16.  Buys Taubmans Paints (Fiji) In September 2003. Acquires ICI India’s Unit (February 2007). Sells stake in Australian Unit (June 2007).
  17. 17. Marketing Strategies Rural Marketing Initiatives since 1970. Distribution is one of the main focus strategy of Asian Paints. Advertising & Promotional Expenditure started in 1980s. Advertising Methods- Radio, TVCs, Print, Internet, OOH, POP, Retail Outlets, Seminars, Workshops.
  18. 18. Marketing Strategies Company is using different techniques such as advertising Campaign, sales promotion, personal selling, direct marketing and public relation to increase sales A total amount of 85 crore is spent on the ad campaign by asian paint. Their particular ad campaign ‘Mera Walla Blue” “har ghar kuch kehta hai” Online marketing for urban customer as well as Asian paints has started cutomer helpline service(24x7)
  19. 19. •Promotional Expenditure grewfrom 15% in 2003 to 22% in 2010.
  20. 20. Diagrammatic Representation of Management
  21. 21.  Majority of employees are hired from premium management institutes. Recreational facilities are provided to the employees.
  22. 22.  Water Conservation-Total Water Management Center Age Care Education Other Initiatives
  23. 23. SWOT ANALYSISSTRENGTH Market leaders with 35%+ market shares. Strong in inventory control. The pricing strategy is oriented to middle and lower end consumers. Widest product range in terms of products, shades, pack sizes. Comprehensive nation wide coverage of the market.
  24. 24. SWOT ANALYSISWEAKNESSES Seasonal demand and hence in off seasons it can lead to cash flow problems. Innovation in developing new product is inadequate. Weakness on the technology front in industrial paints.
  25. 25. SWOT ANALYSISOpportunities The automobile industry accounted for 50% of the industrial markets. Can increase investment in IT Rural Market
  26. 26. SWOT ANALYSISThreats Competitors have gone in for hi-tech instacolour spot mixing. Domination of few foreign companies. Competition is catching up fast, hi-tech facilities gives abundant choices.
  27. 27.  Rural markets have considerable potential. Companies that can establish a dealer network in these markets are likely to get the edge in positing above par growth rates over the next few years. As setting up distribution infrastructure is expensive, it would mean that the competition is limited to the top players. Due to substantial hike in raw material prices, Asian Paints has raised the prices of solvent based paints, thus demand would be affected to some extent.
  28. 28. Prepared by: Yuvraj ZalaShivani Singh