Asian Paints I Ltd

7/30/2019 Asian Paints I Ltd

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Presented By,

Group 12

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Company Profile

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Company Products Established Founder Distribution Production

Plant

Asian

Paints (I)

Limited

Decorative

Paints,

Industrial

Coating

segment

1942

C.H.

Choksey,

C.N.

Choksey,

S.C.Dani

Arvind R.

Vakil

Serves in 65

countries

Globally

29 plants in22 countries

interiors


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Paint Industry- Porters Five Force Model

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Supplier Power:Medium

Substitute:Low to Medium

Buyers Power:Medium

Entry Barriers:Medium

Rivalry:Low toMedium


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Product Portfolio

Asian Paints

Paints

DecorativePaints

IndustrialPaints

Chemicals

PentaerythritolPathetic

Anhydride

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BCG Matrix & Ansoff Matrix

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BCG Matrix High Share Low Share

High Growth

Low Growth

Ansoff Matrix

Present Mission

Present Product New Product

1. Research & Development

2. Green Assure3. Your Voice

4.Home Solution

1. Royal Play

2. Metallic3. Cement Paint Primer

New Mission

1. Establish market in Trinidad

2. South Pacific with Tubmans

1. Backward integration with

pigment producer


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Market Share of Recognized Companies

55%17%

17% 11%

Market Share

Asian Paint Nerolac Berger Other

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SWOT Analysis

Brand Name of 68 YearsStrong Inventory ControlOperates in 23 CountriesWide Range

8500+ colorsWide network - 19000+ dealersHighest manufacturing Capacity

Low market share inIndustrial PaintsOld Technology

Increasing Market share inIndustrial PaintsAutomobile Companies hasbiggest share in Industrial Paint

Dominance of fewcountriesIncreasing Competition

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Value ChainPrimary Activities

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InboundLogistics:

RawMaterialsPurchaseorder &arrival ofgoods within72 hours

Operations:

Require 13days toconvert rawmaterialsinto finishedproduct

Outbound

Logistic:Finishedgoodsdelivery toDepot within48 hours oftheir demand

Marketing &Sales:

Sales Person

marketproducts of

Asian Paintsthrough B2B

business,

AdvertisingCampaign

Returneditems

customerfeedback:

Asian Paints(I) Limited

looks forwardfor feedbackfrom dealersand launched

manyproducts asper buyers

requirement

E.g. UtsavEnamel for

rural market


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Value ChainSupport Activities

Firm

Infrastructure

Promotors Contribution in its shareholding pattern make firm cost effective Leadership in market enable company to reduce Fixed Cosst per unit

Human

Resource

Employees are treated as associates of company

Trained Chartered Accountant & highly qualified MBA grads are part of management

team

Technology

Development

One of the best Research & Developement unit of India

Better infrastructure & set up of factory enable maximum utilisation of resources

Procurement

Delivery of finished product within 48 hours of purchase order

Better infrastructure & set up of factory enable maximum utilisation of resources


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Porters Generic Strategy

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Industry wide

Uniqueness perceived by the

customerLow cost position

Delivery of orders should fulfil

within 48 hours from order placed

by customer

Asian paints (I) limited

provide products at low

cost with superior quality.

Particular segment

only

Unique advertising campaign &

product development for rural

market E.g. Utsav Enamel &

Distemper

B2B marketing by industrial

brand PPG ENZA

Texture Paints & metallic

Paints are created from

same pigment used for

industrial paint

Colour World concept

used to reduce inventory &

wastage cost of decorative

paints

STRATEGIC ADVANTAGE

STRA

TEGICT

ARGET


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Sustainable Competitive Advantages

Marketing Strategy

Human Resource Strategy

Manufacturing Factor

Information Technology

Research & Development

Environment & Safety

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Responses to Threats to Sustainability

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Responses to Hold-up Integrating

Building Mutual Dependence

Developing Trust

Responses to Slack Offering Performance

Incentives

Shaping norms

Responses to Substitute

Straddling

Defending

Responses to Imitation

Size Economies

Retaliation

Upgrading

Value Added

Value AddedAppropriate


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Conclusion

Company enjoys sustainable Competitive

Advantages with current business strategy

Companies commitment of delivery of orders is

creating differentiation with competitors

Company maintain high quality product

Straddling strategy provides company advantage

over substitute

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Thank

You11/22/2012 14

Documents

Asian Paints I Ltd