Asian Paints- Marketing Management Report

Asian Paints Ltd

Marketing Management Report

By

Prashant Sarode (M1438)

Pranay Shetty(M1437)

Fr. C. Rodrigues Institute of Management Studies

Sector 9 A, Vashi Navi Mumbai - 400703.

CONTENTS

No. Topics Page No.

1 Paint Industry Overview 3

2 Top Contributors Of Paint Industry : 4

3 Asian Paints Overview 6

4 Asian Paints Ltd.- Year Events 8

5 Sales Growth 13

6 Product Mix

6.1 Product 15

6.2 Price 17

6.3 Place 17

6.4 Promotion 17

7 Macro Environment 19

8 Market Segmentation 20

9 Targeting 21

10 Positioning 23

11 Differentiating 23

12 Supply Chain 24

PAINT INDUSTRY OVERVIEW The Indian paint industry has been growing rapidly since past few years. The future of paint

industry in India is even brighter as the per capi

1.25 kg.

The size of the Indian paint industry is approximately 940 million litres/annum valued at

approximately $2 billion. Over the last ten years, the industry has grown at a compounded

annual growth rate (CAGR) of 12

CAGR of 11-12%.

Growth in housing, automobiles and construction are all driving the rise in current

consumption.

The paint industry is broadly divided into two segments:

Decorative paints

Decorative paints account for approx three

The demand for decorative paints is direct and mainly in the unorganized sector of the

economy.

Industrial paints

PAINT INDUSTRY OVERVIEW

The Indian paint industry has been growing rapidly since past few years. The future of paint

industry in India is even brighter as the per capita consumption of paints in India is as low as



(CAGR) of 12-13% and in the next five years, it is expected to grow at a


The paint industry is broadly divided into two segments:

Decorative paints account for approx three-fourths of the market in terms of volume and value.


Decorative Paints75%

Industrial Paints25%

PAINT INDUSTRY OVERVIEW

The Indian paint industry has been growing rapidly since past few years. The future of paint

ta consumption of paints in India is as low as



13% and in the next five years, it is expected to grow at a


fourths of the market in terms of volume and value.


Industrial paints make up the remaining one-fourth of Indian paints market. The demand for

industrial paints is a derived demand and mainly in the organized sector of the economy.

Following table shows details about market capitalisation of top paint manufacturing

companies of India:

Company Name

Market Cap. (Rs. Cr.)

Sales Turnover (Rs.

Cr.)

Net Profit (Rs. Cr.)

Total Assets (Rs. Cr.)

Asian Paints 65,575.56 10,418.78 1,169.06 3,640.44

Berger Paints 12,562.09 3,384.82 234.25 1,434.69

Kansai Nerolac 10,303.07 3,154.40 206.6 1,474.91

Akzo Nobel 6,075.17 2,417.91 150.22 847.8

Shalimar Paints 300.86 483.04 -2.8 183.24

Jenson Nicholso 17.03 53.96 35.31 -251.44

TOP CONTRIBUTORS OF PAINT INDUSTRY

Kansai Nerolac Paints Ltd

Kansai Nerolac Paints Ltd(formerly known as Goodlass Nerolac Paints Ltd) is the largest

industrial paint and second largest decorative paint company of India based in Mumbai. It is

a subsidiary of Kansai Paints Ltd., Japan. It is engaged in the industrial, automotive and

powder coating business. It develops and supplies paint systems used on the finishing lines

of electrical components, cycle, material handling equipment, bus bodies, containers and

furniture industries.

Kansai Nerolac Paints has 5 paint manufacturing plants and about 67 contract

manufacturers. The Nerolac owned plants are at 1. Jainpur (Uttarpradesh) 2. Bawal

(Haryana) 3. Lote, Chiplun (Maharastra) 4. Chennai (Tamil Nadu) 5. Hosur (Tamil Nadu)

Kansai Nerolac Paints Ltd. has entered into many technical collaborations with other

industry leaders such as E.I. Du-products.

The Mumbai-based company is the leader in the industrial paints segment with a market

share of over 40%. It is the third-largest player in the decorative paints segment with a

modest market share of 13%. Nearly 75% of the Indian paints industry consists of the

decorative segment.

Akzo Nobel N.V

AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance

coatings and specialty chemicals. It is Headquartered in Amsterdam, the company has

activities in more than 80 countries, and employs approximately 50,000 people. Sales in

2013 were EUR 14.6 billion.

Following the acquisition of ICI, the company has restructured in 2 January 2008, and

rebranded itself in 25 April of the same year.

AkzoNobel consists of 11 business units, with business responsibility and autonomy.

Sherwin-Williams

The Sherwin-Williams Company is an American Fortune 500 company in the general

building materials industry.

The company primarily engages in the manufacture, distribution, and sale of paints,

coatings and related products to professional, industrial, commercial, and retail customers

primarily in North and South America and Europe. The company is mostly known through its

Sherwin-Williams Paints line.

It is founded by Henry Sherwin and Edward Williams in Cleveland, Ohio in 1866, the

company operates through four segments: Paint Stores Group (known as 'Sherwin-Williams

Stores'), Consumer Group, Latin America Coatings Group, and Global Finishes Group.

Nippon Paints

Nippon Paint is a Japanese paint and paint products manufacturing company.

The company, Nippon Paint was founded in 1881. Nippon Paint (Singapore) Co. Pte. Ltd. is

an affiliate of Nippon Paint Japan with experience in paint technology. In 1971, Nippon Paint

established a 50/50 joint venture with Bee Chemical which was named Nippon Bee

Chemical Co.,Ltd. In 2006, it became a wholly owned subsidiary of Nippon Paint. Nippon

Paint Singapore was established in 1962.

The company and its subsidiaries has presence in Japan, Singapore, Malaysia, South Korea,

China, Hong Kong, Indonesia, Philippines, Taiwan, Thailand, Vietnam, India, Pakistan, United

Kingdom, Germany, Greece, Norway, Netherlands, Lithuania, Poland, Russia, Slovenia,

Spain, Bulgaria, Estonia, Italy, United States, Brazil, Australia, and the United Arab Emirates.

It is among top 10 brands in Singapore.

ASIAN PAINTS

Asian Paints, founded in 1942, is an Indian chemicals company headquartered in Mumbai,India. It manufactures a wide range of paints for decorative and industrial purpose. Asian Paints is India's largest and Asia's third largest paint company, with a turnover of Rs 96.32 billion, revenue of Rs 7964 crore and 4640 employees. The founders were four young Mumbaikars Champaklal Choksey, Chimanlal Choksi, Suryakant Dani and Arvind Vakil. Mr. K.B.S Anand is the current Managing Director and CEO of the company.

Asian Paints operates in 21 countries with 29 paint mfg. facilities with capacity of 440 mn. Lts/annum, servicing consumers in 65 countries. Asian Paints operates in five regions across the world viz. South Asia, Southeast Asia, South Pacific, Middle East and Caribbean region through the five corporate brands viz. Asian Paints, Berger International, SCIB Paints, Apco Coatings and Taubmans. The countries that Asian Paints has presence are as follows: Asian Paints in South Asia (India, Bangladesh, Nepal and Sri Lanka). SCIB Paints in Egypt. Berger in South East Asia (Singapore), Middle East (UAE, Bahrain and Oman), Caribbean

(Jamaica, Barbados, Trinidad & Tobago). Apco Coatings in South Pacific (Fiji, Tonga, Solomon Islands and Vanuatu). Taubmans in South Pacific (Fiji and Samoa).

Most of its revenue from outside India come from the Middle East.

Apart from these the company also manufactures various Accessories like, Wall Primer, Wood Primer, Putty and Stainers etc. Driven by its strong consumerfocus and innovative spirit, the company has been the market leader in paints since 1967.

Besides Asian Paints, the group operates around the world through its subsidiaries Berger International, Apco Coatings, SCIB Paints and Taubmans, Berger International, SCIB PaintsEgypt, Asian Paints, Apco Coatings and Taubmans. Asian Paints operates in 5 regions across the world viz. South Asia, South East Asia, South Pacific, Middle East and Caribbean region through the five corporate brands viz. Asian Paints, Berger International, SCIB Paints, Apco Coatings and Taubmans. In 10 markets, it operates through its subsidiary, Berger International Limited; in Egypt through SCIB Paints; in 5 markets in the South Pacific it operates through Apco Coatings and in Fiji and Samoa it also operates through Taubmans.

The company is having its strategically located Indian plants at Bhandup (Maharashtra), Kasna (Uttar Pradesh) and Sriperumbudur (Tamil Nadu), Ankleshwar (Gujarat), Patancheru (Andhra Pradesh) and the newly built plant at Rohtak (Haryana).

The company is having three subsidiaries viz, APCO Coatings it is a subsidiary of Asian Paints in the South Pacific islands. The company operates in Australia, Fiji, Tonga, Solomon Islands and Vanuatu under the brand name of APCO Coatings.

The other subsidiary of the company is Asian Paints Industrial Coatings Limited which has been set up to cater to the powder coatings market which is one of the fastest growing segments in the industrial coatings market.

Today, the name of Berger is synonymous with quality and innovation. BIL has presence across three regions viz. Middle East, Caribbean and South East Asia. Asian Paints participates in the Industrial Coatings segment directly, through a 50:50 JV with PPG Inc. of US as well as through a 100% subsidiary.

Asian Paints has dedicated Research and Technology facility at Turbhe (Near Mumbai) with

over 150 scientists, successfully managed to develop Highend exterior finished and wood

finishes inhouse, which was earlier imported into the country. These products are currently

marketed under Asian Paints Elastomeric HiStretch Exterior paint and Asian Paints PU wood

finish respectively. It Supports company strategy around Technology development, Sustainable

new products, Green products, Value re-engineering for productivity improvement and cost

optimization. Asian Paints scientists had won the Roon award in 2013one of the highest

technical achievements in the coatings industry.

Vision Of Asian Paints

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.

Asian Paints is the leader in the Indian paint industry. Through a 50:50 joint venture with PPG

Industries, US, the company also has presence in the automotive paints segment. In FY12, the

company announced its plan forming a new 50:50 joint venture with PPG Industries for

servicing the protective, powder coatings and light industrial coatings market.

ASIAN PAINTS LTD.- YEAR EVENTS

1st February, 1942

Armed with little knowledge and great determination, Champaklal H. Choksey, Chimanlal N. Choksi, Suryakant C. Dani and Arvind R. Vakil get together to manufacture paint in a garage on Foras Road, Bombay. They name their company 'The Asian Oil & Paint Company', a name that they picked randomly from a telephone directory.

1945

The Company was incorporated as a private limited company under the name of Asian Oil and Paint Company Pvt. Ltd. It was converted into a public limited company in 1973. The Company manufacture a wide range of surface coatings catering to different end-uses. It also manufactures vinyl pyridine latex used in the manufacture of rubber tyres.

The company expanded its products range, developed its own technology, set up a distribution network penetrating in smaller towns and ploughed back a large part of earnings into creation of new facilities. 1965

The name was changed from Asian Oil and Paint Company Pvt. Ltd. to Asian Paints (India) Pvt. Ltd. 1974

A major modernisation programme was undertaken to streamline the paint production facilities by improving the layout of machines, addition to balancing equipment and replacement of old machinery. The Company embarked on phased modernisation of resin manufacturing facilities as well.

The Bhandup plant of the Company is reportedly the largest single paint factory in the country and one of the most up-to-date with sophisticated machinery and equipment for manufacturing a wide range of paints and other products besides adequate resin manufacturing capacity to meet its entire requirements. 1982

Public issue of capital to fulfill the listing requirements of the Stock Exchange and to provide part of the finance for the increased operations. 1985

The Company undertook to set up a third paint unit at Patancheru, a notified backward area near Hyderabad, for the manufacture of 15,000 MT of paints and enamels.

Asian Paints set up a fourth paint plant in Uttar Pradesh with a capacity of 23,000 tonnes per annum of paints, varnishes and enamels and 65,000 tonnes per annum of synthetic resins (for captive consumption).

The Company entered into a collaboration agreement with Nippon Paints Co. Ltd., Japan, to obtain technical know-how to manufacture powder coating and coil coatings under an exclusive licence. Necessary manufacturing facilities for the powder coatings with a capacity of 300 MT were installed and commissioned at Kasna plant during 1992-93. 1987

The Company commissioned a plant for the manufacture of synthetic rubbers lattices with a capacity of 1,200 tonnes per annum. The Company received a letter of intent to manufacture 9,000 tonnes of phthalic anhydride. The project would be based on imported Van Heyden low energy process technology with engineering package from Davy McKee of Cologne, West Germany. The project was commissioned in March 1990. But, a fire accident in the succeeding month damaged a storage tank, nearby pipes and support structures. The plant was repaired and restarted only in August 1990.

The Company jointly with Tamil Nadu Industrial Development Corporation (TIDCO) promoted a joint sector Company under the name Pentasia Chemicals Ltd. (PCL), for the manufacture of 3,000 TPA of pentaerythritol and 1,800 TPA of sodium formate. The project commissioned in March. 1989

A scheme of arrangement was finalised for vesting of the assets and liabilities of the Company's Apcotex division with Apcotex Lattices Ltd. (ALL). As per the scheme of arrangement, one equity share of Rs 10 each of ALL was allotted without payment in cash to the shareholders of Asian Paints (India) Ltd., for every 13 equity shares held by them in the company, i.e., Asian Paints (India) Ltd.

The first phase of the project with an initial installed capacity of 16,000 tonnes per annum was commissioned during the year. 1990

Asian Paints (South Pacific) Ltd., in Fiji and Asian Paints (Tonga) Ltd., are two joint venture set up abroad with the Company supplying the necessary know-how. Both these are the Company's subsidiaries and the equity participation by the Company amounted to 51% in the former and 25% in the latter as at 31st December. Asian Paints (South Pacific) Ltd., holds an additional 25% in the equity capital of Asian Paints (Tonga) Ltd.

The Company also set up two more joint ventures under the names and styles of Asian Paints (Nepal) Pvt. Ltd., and Asian Paints (S.I.) Ltd., both of which are subsidiaries of the Company.

The Company had set up a joint venture unit Asian Paints (Vanuatu) Ltd., for the manufacture of paints and enamels in the Pacific Island of Vanuatu. The Vanuatu company had issued 54,000 ordinary shares of US $1 each to the Company as fully paid-up shares against the plant and machinery supplied. 1991

Pentasia Chemicals Ltd., became a subsidiary of the Company. Pentasia Investments Ltd., is

a subsidiary of the Company. 1993

The Company undertook to set up a joint venture unit along with its overseas subsidiaries, in Queensland, Australia for manufacture of paints, enamels and varnishes. The Company was to invest a $2,00,000 in the share capital of Asian Paints (Queensland) Pvt. Ltd. a joint stock company, Australia. 1994

The Company proposed to expand its existing capacities for the manufacture of paints and enamels to 50,000 tonnes per annum at each of its plants in Ankleshwar, Patancheru and Kasna. 1995

Pantasia Chemicals Ltd. (PCL) was merged with the Company. The assets and liabilities of the erstwhile PCL are vested with the Company with effect from 1.10.1994.

The company undertook to set up a joint venture unit for the manufacture of paints, enamels and varnishes in the Republic of Mauritius. The joint venture involves a total cost of 1,83,00,000 Mauritius Rupees of which 49% will be financed by the Company and the balance from Mauritian parties. 1996

The Company proposed to set up a fifth point manufacturing plant at Ratnagiri, Maharashtra.

A joint venture company viz. Asian PPG Industries Pvt. Ltd. ws set up alongwith PPG Industries, Inc. of USA to market and/or manufacture automotive paints and certain Industrial products as may be decided upon mutually between the partners. 1998

The new initiative to install 350 colourworlds received encouraging response and made significant contribution to performance. Three new products, NC range of wood finishes, ACE exterior emulsion and Asian wall putty were launched.

Asian Paints, the Rs.737.20 crore paints major, has launched a new marketing thrust with the introduction of a one-stop colour shop for paints complete with a software for consumers to choose and select their different shade combinations.

Asian Paints, India's No.1 Paint Company, launched their latest offering `Asian Paints Colour World'.

Two subsidiaries of Asian Paints - Pentasia Chemicals and Pentasia Investments - have been merged with the p arent company following the approval of the Board for Industrial & Financial Reconstruction (BIFR).

Asian Paints Limited, the largest paint company in India, launched its first exclusive showroom in Mumbai.

1999

The company has joint venture companies in the overseas market. All these ventures are doing well and have a strong hold in their respective markets.

In its first-ever acquisition overseas, Asian Paints Ltd (APL) has acquired a 76 per cent equity stake in Sri Lanka-based Delmege Forsyth & Co (Paints) Ltd. 2000

Asian Paints has launched two variants in polyurethane (PU) wood finish under the brand name Opal.

The Company has proposed to issue bonus shares in the ratio of three shares for every five shares held.

Asian Paints has opened a manufacturing plant in oman in partnership with a local company.

Asian Pains has acquired the entire paints business of Pacific Paints Company based in Australia for over Rs 1 crore.

Asian Paints has lifted the lockout at its factory in Uttar Pradesh. The Company suspended operations at Kasna in July after the workers resorted to a "sit-in-strike".

Asian Paints rated Best Employer by BTHewitt survey, 2000 Bluest of the blue chips by Hindu Business Line and most admired company to work for by ETBT survey, 2000 2001

Asian Paints has introduced Utsav Enamel for the festive season. 2002

Asian Paints revamps its international operations, transferres shares in its subsidiaries in Fiji, Tonga, Solomon Island, Vanuata, Australia and the Sultanate of Oman to the Mauritius based subsidiary Asian Paints International.

Asian Paints executes agreement for purchase of 60% equity capital of SCIB Chemicals S.A.E., Egypt

Asian Paints launches its $3 million joint venture with Bangladesh-based Confidence Cements in which the holds 51 per cent stake

Asian Paints acquires controlling stake of 50.1 per cent in Berger International, Singapore, for Rs 58 crore.

Forbes Global magazine, USA ranked Asian Paints amongst the 200 'Best Small Companies of the world' 2003

Asian Paints, via its Singapore-based subsidiary - Berger International - inks a technology and brand licensing agreement with PT Abadi Coatings Solusi, an Indonesian paint company

Asian Paints acquires Taubmans Paints (Fiji) Ltd. through its subsidiary in Fiji, Asian Paints

(South Pacific) Ltd (APSP)

Acquisition of 9.2% shares in ICI India Ltd.

Asian Paints bags Ken Sharma award

Asian Paints received the Ernst & Young 'Entrepreneur of the Year Manufacturing' award

Forbes Global magazine, USA ranked Asian Paints amongst the 200 'Best Small Companies of the world'. 2004

Asian Paints launches paint solutions for kids' 2005

Berger Intl partners with Filipino firm Dutch Boy

Company has changed its name from Asian Paints (India) Ltd. to Asian Paints Ltd. 2006

Asian Paints - APICL's new manufacturing plant at Baddi commences commercial production 2010

Berger International Ltd Singapore (BIL), a subsidiary of Asian Paints Ltd , became a wholly owned subsidiary of the Company

The Company's new paint plant at Rohtak in the State of Haryana has commenced commercial production

Asian Paints Signed a MOU with Maharashtra Govt. to set up a Mega Project for manufacture of Paints & Intermediate 2011

Asian Paints to form second Joint Venture with PPG Industries.

Asian Paints - Company's subsidiary, SCIB Chemicals SAE has temporarily restarted the operations of its two plants in Egypt

Asian Paints receives the Best Audit Committee Award from the Asian Centre for Corporate Governance & Sustainability.

Asian Paints was included in Forbes Magazine's Asia's Fab 50 List of companies 2012

Asian Paints - Production at the Company's Plant at Rohtak, Haryana has been restarted

Asian Paints was included in Forbes Magazine's Asia's Fab 50 List of companies 2013

Asian Paints has acquired 51% stake in the Kitchen solutions provider company, Sleek International Private Limited.

Asian Paints was ranked 13th amongst the top paint companies in the world by Coatings World Top Companies Report 2013

Asian Paints was included in Forbes Magazine's Asia's Fab 50 List of companies

2014

Asian Paints (International) Ltd (APIL), a whollyowned subsidiary of Indias largest paints company Asian Paints Ltd, hiked its stake in Berger International Ltd (BIL), to around 96.7 per cent. later BIL was delisted from the Singapore Exchange (SGX).

Asian Paints was included in Forbes Magazine's Asia's Fab 50 List of companies

Sales Growth of Asian Paints over the years with different goods:

Product Name

2014 2013 2012

Sales(in cr.)

% of Total Sales

Sales(in cr.)

% of Total Sales

Sales(in cr.)

% of Total Sales

Paints, Enamels, Varnishes & Black

11,445.84 94.07 10,001.96 95.49 8,702.30 95.22

Traded Goods 415.39 3.41 279.36 2.67 232.68 2.55

Others 181.35 1.49 123.68 1.18 129.31 1.41

Subsidy 65.89 0.54 43.41 0.41 34.64 0.38

Processing Charges

45.56 0.37 19 0.18 20.47 0.22

Scrap 7.03 0.06 6.79 0.06 15.17 0.17

Sale of services 5.88 0.05 0.31 0 4.74 0.05

Lease Rentals 0.08 0 0.06 0 0.08 0

ASAHI SONGWON

23%

AKZO NOBEL22%BERGER PAINTS

19%

ASIAN PAINTS18%

KANSAI NEROLAC

18%

Sales Growth 2013-2014

Net Sales of Asian Paints over different Regions for year 2012

It shows that Asian Paints has more sales in Middle East as compare to other regions and %

growth of net sales over the years is maximum in Asia

0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

14,000.00

Asian Paints Sales Growth (2010

Paints

Decorative Paints

Industrial Paints

Net Sales of Asian Paints over different Regions for year 2012-13 and 2013-14 as follows:

s that Asian Paints has more sales in Middle East as compare to other regions and %

growth of net sales over the years is maximum in Asia

2010 2011 2012 2013 2014

Asian Paints Sales Growth (2010-14) in cr.

Asian Paints

Decorative

Industrial Paints

Chemicals

Phthatic Anhydride (PAN)

Penraerithritol (PET)

14 as follows:

s that Asian Paints has more sales in Middle East as compare to other regions and %

PRODUCT MIX

PRODUCT: Asian Paint details with product that is Decorative, Industrial, Automotive, Chemicals.

In decorative segment company has a wide range of product from low price to high price

product like Utsav which is basically targeted to the Rural Customer and High price product

like Royale Play/ Apex cefirma targeted for exterior and interior emultion.

Asian Paint investing in huge amount in Research and Development for Quality and the

technological development of product so that it competes globally.

In Decorative paints, Asian Paints is present in all the four segments Interior Wall Finishes,

Exterior Wall Finishes, Enamels and Wood Finishes. It also introduced many innovative

concepts in the Indian paint industry like Colour Worlds (Dealer Tinting Systems), Home

Solutions (painting solutions Service), Kids World (painting solutions for kids room), Colour

Next (Prediction of Colour Trends through indepth research) and Royale Play Special Effect

Paints etc.

The width of Asian Paints' product mix refers to how many different product line the

company carries such as (for decorative paints) exterior paints, interior paints, metal

finishes, wooden finishes, smart care products, royale play.

The length of Asian Paint's product mix refer to the total number of items in its product

mix such as (for decorative paints) exterior paints product line has 5 brands-Apex Ultima,

Apex Exterior Emulsion, Apex Duracast, Ace Emulsion, Apex Tile Guard.

The depth of a Asian Paints' product mix refers to how many variants are offered of each

product in the line such as number of (colour variants available)*(packaging formats

available).

Asian Paints has recently made Upward Line Stretching of Royale Play Affects variants with

high quality such as Royale Safari, Royale Dune and side by side stretching by adding colour

variants.

Following block shows product line of Asian Paints Ltd:

Automotive Industrial Marine

Body Coatings

Plastic Coatings

Coil And Extrusion

Consumer Electronics

Transco Heavy Duty

Equipment

Auto Parts Packaging Coatings

Sigma Coatings

Pre-Treatment Chemicals

Pre-Treatment Chemicals

Duranar Liquid Primer Liquid Liquid Beer & Beverage

Cathodic E-Coat

Primer For TPO/PP

Arc 2001 Electrocoat Top Coat

Electrocoat Electrocoat Pre-Treatment

Primer Primer For ABS/Nylon

Coraflon Powder Base Coat

Powder Powder Beverage Easy- Open-Ends / Can

Ends

Solid Monocoat

Solid Monocoat

Clear Coat

Pre-Treatment

Pre-Treatment

Food

Base Coat 1k Base Coat

Monobloc Aerosols &

Tubes

Clear Coat 2k Clear General Line

Caps, Closures

Decorative

Exterior Paints

Interior Paints Metal Finishes Wood Finishes

Smart Care Products

Royale Play

Apex Ultima Royale Premium Semi-Gloss Enamel

Interior Damp Block Royale Play Stucco

Apex Exterior Emulsion

Royale Sensations

Apcolite Premium Satin Enamel

Exterior Damp Proof Royale Play Dune

Apex Duracast Royale Play Apcolite Premium Gloss Enamel

Italian Crack Seal Royale Play Safari

Ace Emulsion Apcolite Emulsions

Tractor Enamel

Acrylmax Royale Play Special Effects

Apex Tile Guard

Tractor Emulsion

Unyverseal Royale Play Metallics

Distempers Vitalia Royale Play Textile

PRICE: The price range of Asian Paints varies according to product, Asian Paints has strategy for

targeting Rural, Urban and Semi- Urban sector viz. Urban sector has some of the high price

product circulates.

PLACE : Asian Paints is available to all types of customers and the main advantage of the company

product is that it is easily available or accessible to its customer.

At present there are above 27000 Colour World dealers and large number of retailers.

Asian Paints distribution channel extends to the nearly all states of India. Asian Paints is also

exporting to countries like US, Africa, Middle East Asia.

PROMOTION:

Gattu, the mascot for Asian Paints was created by cartoonist R.K. Laxman in 1954. Soon

Gattu, with his "shock of black hair eternally dangling over his right eye", became

popular and remained so for many decades, even featured in business quizzes. After

over four decades, it was eventually phased out after 2002, when company's advertising

agency Ogilvy & Mather (O&M) initiated a rebranding exercise. The logo was changed to

a contemporary upmarket, the logo/design was to convey self-expression, sophistication

and Technology. Asian Paint brand is about people and homes and homes reflect the

people living in it- " Har Ghar Kuch Kehta Hai" or " Every Home has a story to tell". This

campaign is a perfect example of a brand laddering up and connecting to a higher level

in the mind of the customer. The campaigns reinforced the brand as a premium

emotional brand. Along with the campaign Asian Paints also ran parallel ads for its sub

brands.

Asian Paint follow good promotional strategy regarding their sales of the product. Their

promotional strategy are made looking at the different category of the product and

price associated with it.

In Urban areas Asian Paint established colour world where the customer can enjoy the

taste of real colour while in rural sector it follow sales demonstration programme along

with van displaying the product of Asian Paint in the rural market.

It also invest a huge amount of funds in advertising sector for promotion of there

products. Asian Paints promotional strategy active in festive periods.

Asian Paints Rural Marketing started in 1970. Distribution is one of the main focus

strategy of Asian Paints. Advertising & Promotional Expenditure was started in 1980s.

Advertising Methods used - Radio, TVs, Print, Internet, OOH, POP, Retail Outlets,

Seminars, Workshops.

Asian Paints brand Ambassadors, Soha Ali Khan Saif Ali Khan bond over in the new ad of

the brand. Asian Paints have come up with a new paint named Royale Aspira which

gives 5 years of warranty. In the new ad the brother sister duo are speechless after

looking at the Royale Aspira painted wall. Saif and Soha Ali Khan had previously done an

ad together in the year 2011 for Asian Paints Royale - PLAY.

Corporate Social Responsibility (CSR):

In Ankleshwar - Gujarat, Asian Paints continues to support the "Shree Gattu Vidyalaya" school which was established along with the Ankleshwar Industrial Development Society in 1983. The school today boasts of around 2,500 students in primary as well as secondary sections and Asian Paints has sustained its commitment of providing infrastructure support to this school, be it through donations of computers, tables and chairs, or through assistance in other maintenance work for the school and conducts Vaccination and Health camps too.

In Sriperumbudur (South India) also, Asian Paints presented the Pondur primary school with desks, tables, a PA system and even school bags for the students.

Asian Paints in Kasna (UttarPradesh), Patancheru (Andhra Pradesh), Sriperumbudur (Tamil Nadu) and Ankleshwar(Gujarat) have taken up the cause of providing healthcare facilities to the disadvantaged elderly sections of the society in their localities.

The Mobile Medicare Units (MMUs)which the Kasna, Patancheru and Sriperumbudur facilities operate is really a novel effort of bringing healthcare to the doorsteps of the lesser fortunate senior citizens. Its really heartening to learn that Asian Paints reached out to more than 2,00,000 senior citizens through our various age care initiatives..

MACRO ENVIRONMENT

Overall global economic environment is volatile with the Euro crisis and Crude oil prices still

not completely addressed.

There are risks of growth not picking up in developed countries, which can have an impact

on the global economic environment.

The socio-political situation in some of the key oil producing nations has been fragile for

some time now. Any deterioration of conditions in any of these countries can affect the

global crude prices, which can have significant impact on prices across the board.

Costs of key raw materials like used in paint industry have been on rise for some time now

due to their relative shortage, inadequate investment in fresh capacities and buoyant

demand conditions. There is risk of the prices not coming down anytime soon.

The Apr-Sept 2014 period witnessed slowdown in growth across advanced economies

The domestic economy recovery would be more gradual than expected though some improvement in fundamentals witnessed

The Rupee was relatively stable unlike other Emerging market currencies, trading in the range of Rs.60-62 to a dollar

Environment and Safety

Asian Paints approaches the environment issue from the perspective of waste minimization and conservation of resources. Determined to reuse, recycle and eliminate waste, Asian Paints' material losses in manufacturing have reduced substantially over the last few years.

All the paint plants and chemical manufacturing plants of Asian Paints have ISO 14001 environmental certification.

All Asian paint plants have achieved 'zero industrial discharge' capability. This has been achieved by the installation of upgraded effluent treatment facilities and installation of reverse osmosis plants in conjunction with appropriate recycling and reuse schemes and adopted the principles of "green productivity".

Some of innovative schemes which enhance green productivity are dealer tinting systems which has resulted in large batch sizes; bulk storage facility for monomers which reduces wastage; Use of natural gas which is a cleaner fuel ; solvent recovery plants have been set up which has resulted in zero reduction of solvent disposal ; improved incinerating systems and reverse osmosis.

MARKET SEGMENTATION

Asian Paints has a number of offerings to its customers depending on their affordability

and requirement:

Decorative Paints: Decorative Paints business contributes around 94% to the total paint

business. In the decorative paint segment, the company operates in 4 main segments -

interior wall finish, Exterior wall finish, Enamels and Wood Finishes. Besides, the

company outsources around 25-30% of its total production.

Industrial Paint Segment: In this segment, the company caters to automotive, powder,

protective coatings, road markings segment, floor coatings and General Industrial

Paints.

Chemicals

In this segment, the company caters to chemicals like PAN, PET.

Asian Paints has adopted some rigorous marketing strategies which have helped it gain

dominance over other players.

Further Segmentation of Asian Paints carried out on the basis of the following Buyer

Characteristics / Economical Status of the buyer:

Exterior paints are targeted at builders, real estate developers and contractors. An

exterior finish known as gattu or cement paint, i

economical and durable. The main requirement for such customers is the durability

rather than smoothness or colour.

Interior Paints on the other hand are targeted primarily at home owners, interior

designers, as well as carpenters and contractors. Here stress will be

smoothness, texture, colour and finish of the paint. The colour stores go a long way in

promoting the Interior Emulsions.

The primers, putties and the other such ancillary products would be purchas

contractors and carpenters as a part of the painting process.

Targeting is based on the quality and pricing of the paints. Within each segment, Asian

Paints offers innumerable products.

In the Exterior Emulsions Asian Paints Apex Ultima is a premium,

brand which caters to the economically higher class and is used on premium buildings.

Asian Paints Apex is a Mid Range brand catering to the next segment of society.

Similarly, in the Interior Paints sector, the products are price

following way:

Emulsions : These are water based paints Acrylic Emulsions are extremely durable

Eg: Asian Paints offers three brands to choose.

Buyer Characteristics / Economical Status of

Up market buyers and high quality seekers

Upper Middle class

Middle Class

TARGETING


exterior finish known as gattu or cement paint, is used on walls as it is extremely


rather than smoothness or colour.


arpenters and contractors. Here stress will be laid


promoting the Interior Emulsions.

rs, putties and the other such ancillary products would be purchas

contractors and carpenters as a part of the painting process.

based on the quality and pricing of the paints. Within each segment, Asian

Paints offers innumerable products.

In the Exterior Emulsions Asian Paints Apex Ultima is a premium, high-performance



Similarly, in the Interior Paints sector, the products are price-differentiated in the

These are water based paints Acrylic Emulsions are extremely durable

Eg: Asian Paints offers three brands to choose.

Segmentation

Buyer Characteristics / Economical Status of the buyer

Up market buyers and high quality seekers

Upper Middle class - High income group and socially conscious

Middle Class - Low income group and rural market


s used on walls as it is extremely



on the


rs, putties and the other such ancillary products would be purchased by

based on the quality and pricing of the paints. Within each segment, Asian

performance



ntiated in the

These are water based paints Acrylic Emulsions are extremely durable

Premium - Apcolite Royal Acrylic Emulsion.

Medium - Apcolite Super Acrylic Emulsion.

Economical - Super Decoplast

Distempers: These are also water based paints but their binders may be very natural or

synthetic. Distempers are economically priced, they offer good value for money as they

are durable.

Eg: Asian Paints has Tractor Acrylic washable Distemper, Tractor washable Synthetic

Distemper .

Asian Paints follows a V-Tier Customer Target Strategy

Tire 1 - On the recipient end there are strategic solution seekers. Company thinks of

cost reductions, performance & productivity improvement for clients, improving

customers & shareholders profitability.

Tier 2 Here the customers can be considered as value or brand sensitive. Asian paints

targets these customers with value added VDS integration customer level service.

Tier 3 These consumers are price sensitive. They are least bothered about the

service. These are mainly middle or low income group people Asian paints have several

brand like UTSAV to serve them.

Tier-4 Here the company targets the small manufacturing & local companies, which can

generate revenue. Company utilizes its business & telesales technology to address &

satisfy their needs.

Tier-5 This tier is composed of specific targeted companies that although small in size,

deserve special attention because they are highly innovative in nature. Asian paints has

a good prospect over here.

POSITIONING

From 1999, Asian Paints has undergone a transformation and repositioning, thereby

emerging as a consumer oriented, value added paints company. The consumer market

had steadily been changing, and repainting of houses primarily during festival seasons

was becoming a less dominant trend. Painting became less seasonal and utility based.

Instead, consumers became more aware and conscious about home dcor and home

making.

The rise in colour consultants and Interior designers also contributed greatly to this

trend. As a result, Asian Paints began to position itself as a part of this high voltage

emotion of home creation.

Core Thought : Asian Paints is about people who invest emotional energy in creation of

their homes. This sentiment is captured even in the advertisements where painting a

wall is associated with a number of different events or emotions.

Change in Visual Identity

Asian paints revamped its image as well as its packaging to get a more contemporary and

international look and enhance the visual appeal of the brand.

Service Offering

Asian Paints introduced a new dimension of service offering where it finally delivers not just

paint but a painted home.

Asian Paint offers Paint Selector, Paint Budget Calculator, Colour Ideas Store.

DIFFERENTIATING Asian Paints team listens to what a consumer wants and able to identify latent demand

and meet consumer expectations much before other competitors.

From the launch of small packs, to the introduction of exterior paints, to a foray in the

painting service sector with Asian Paints Home Solutions, was the first in the industry to

introduce such offerings.

Asian Paints not only differetiates its products by innovating ideas but also online and

offline colour budgeting, colour selection services to potential customers to drive the

market demands

SUPPLY CHAIN

The company is having stateoftheart supply chain system using cutting edge technology to integrate all its plants, regional distribution centres, outside processing centres and branches in India.

All the companys paints plants in India, two chemical plants, 18 processing centres, 350 raw material and intermediate goods suppliers, 140 packing material vendors, 6 regional distribution centres, 72 depots are integrated.

A competitive edge in the challenging Indian marketplace, Asian Paints found a clear advantage in establishing a leaner, more agile and cost-efficient supply chain.

Asian Paints is Indias largest paint company and is ranked among the top 10 decorative coatings companies in the world. The company provides innovative solutions for decorative home improvement, industrial and automotive painting requirements.

Asian Paints sells through some 27,000 local retailers, who resell its products to home users, contractors and painters. The company also sells paints and colors to original equipment manufacturers (OEM) and to large contractors serving the OEM marketplace. To serve those demanding market segments, Asian Paints produces more than 1,200 standard paint product SKUs and many made-to-order formulations, and operates about 80 sales offices.

/Asian Paints LtdMarketing Management ReportByPrashant Sarode (M1438)Pranay Shetty(M1437)PAINT INDUSTRY OVERVIEWKansai Nerolac Paints Ltd Kansai Nerolac Paints Ltd(formerly known as Goodlass Nerolac Paints Ltd) is the largest industrial paint and second largest decorative paint company of India based in Mumbai. It is a subsidiary of Kansai Paints Ltd., Japan. It is engaged in the industrial, automotive and powder coating business. It develops and supplies paint systems used on the finishing lines of electrical components, cycle, material handling equipment, bus bodies, containers and furniture industries. Kansai Nerolac Paints has 5 paint manufacturing plants and about 67 contract manufacturers. The Nerolac owned plants are at 1. Jainpur (Uttarpradesh) 2. Bawal (Haryana) 3. Lote, Chiplun (Maharastra) 4. Chennai (Tamil Nadu) 5. Hosur (Tamil Nadu) Kansai Nerolac Paints Ltd. has entered into many technical collaborations with other industry leaders such as E.I. Du-products. The Mumbai-based company is the leader in the industrial paints segment with a market share of over 40%. It is the third-largest player in the decorative paints segment with a modest market share of 13%. Nearly 75% of the Indian paints industry consists of the decorative segment.Akzo Nobel N.V AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. It is Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 50,000 people. Sales in 2013 were EUR 14.6 billion. Following the acquisition of ICI, the company has restructured in 2 January 2008, and rebranded itself in 25 April of the same year. AkzoNobel consists of 11 business units, with business responsibility and autonomy.Sherwin-Williams The Sherwin-Williams Company is an American Fortune 500 company in the general building materials industry. The company primarily engages in the manufacture, distribution, and sale of paints, coatings and related products to professional, industrial, commercial, and retail customers primarily in North and South America and Europe. The company is mostly known through its Sherwin-Williams Paints line. It is founded by Henry Sherwin and Edward Williams in Cleveland, Ohio in 1866, the company operates through four segments: Paint Stores Group (known as 'Sherwin-Williams Stores'), Consumer Group, Latin America Coatings Group, and Global Finishes Group.Nippon Paints Nippon Paint is a Japanese paint and paint products manufacturing company. The company, Nippon Paint was founded in 1881. Nippon Paint (Singapore) Co. Pte. Ltd. is an affiliate of Nippon Paint Japan with experience in paint technology. In 1971, Nippon Paint established a 50/50 joint venture with Bee Chemical which was named Nippon Bee Chemical Co.,Ltd. In 2006, it became a wholly owned subsidiary of Nippon Paint. Nippon Paint Singapore was established in 1962. The company and its subsidiaries has presence in Japan, Singapore, Malaysia, South Korea, China, Hong Kong, Indonesia, Philippines, Taiwan, Thailand, Vietnam, India, Pakistan, United Kingdom, Germany, Greece, Norway, Netherlands, Lithuania, Poland, Russia, Slovenia, Spain, Bulgaria, Estonia, Italy, United States, Brazil, Australia, and the United Arab Emirates. It is among top 10 brands in Singapore.ASIAN PAINTS/Sales Growth of Asian Paints over the years with different goods:/Net Sales of Asian Paints over different Regions for year 2012-13 and 2013-14 as follows: /It shows that Asian Paints has more sales in Middle East as compare to other regions and % growth of net sales over the years is maximum in Asia/PRODUCT MIXPRODUCT: Asian Paint details with product that is Decorative, Industrial, Automotive, Chemicals. In decorative segment company has a wide range of product from low price to high price product like Utsav which is basically targeted to the Rural Customer and High price product like Royale Play/ Apex cefirma targeted for exterior and interior emultion. Asian Paint investing in huge amount in Research and Development for Quality and the technological development of product so that it competes globally. In Decorative paints, Asian Paints is present in all the four segments Interior Wall Finishes, Exterior Wall Finishes, Enamels and Wood Finishes. It also introduced many innovative concepts in the Indian paint industry like Colour Worlds (Dealer Tinting Systems), Home Solutions (painting solutions Service), Kids World (painting solutions for kids room), Colour Next (Prediction of Colour Trends through indepth research) and Royale Play Special Effect Paints etc. The width of Asian Paints' product mix refers to how many different product line the company carries such as (for decorative paints) exterior paints, interior paints, metal finishes, wooden finishes, smart care products, royale play. The length of Asian Paint's product mix refer to the total number of items in its product mix such as (for decorative paints) exterior paints product line has 5 brands-Apex Ultima, Apex Exterior Emulsion, Apex Duracast, Ace Emulsion, Apex Tile Guard. The depth of a Asian Paints' product mix refers to how many variants are offered of each product in the line such as number of (colour variants available)*(packaging formats available). Asian Paints has recently made Upward Line Stretching of Royale Play Affects variants with high quality such as Royale Safari, Royale Dune and side by side stretching by adding colour variants. Following block shows product line of Asian Paints Ltd:PRICE: The price range of Asian Paints varies according to product, Asian Paints has strategy for targeting Rural, Urban and Semi- Urban sector viz. Urban sector has some of the high price product circulates.PLACE : Asian Paints is available to all types of customers and the main advantage of the company product is that it is easily available or accessible to its customer. At present there are above 27000 Colour World dealers and large number of retailers. Asian Paints distribution channel extends to the nearly all states of India. Asian Paints is also exporting to countries like US, Africa, Middle East Asia.PROMOTION:/ Gattu, the mascot for Asian Paints was created by cartoonist R.K. Laxman in 1954. Soon Gattu, with his "shock of black hair eternally dangling over his right eye", became popular and remained so for many decades, even featured in business quizzes. After over four decades, it was eventually phased out after 2002, when company's advertising agency Ogilvy & Mather (O&M) initiated a rebranding exercise. The logo was changed to a contemporary upmarket, the logo/design was to convey self-expression, sophistication and Technology. Asian Paint brand is about people and homes and homes reflect the people living in it- " Har Ghar Kuch Kehta Hai" or " Every Home has a story to tell". This campaign is a perfect example of a brand laddering up and connecting to a higher level in the mind of the customer. The campaigns reinforced the brand as a premium emotional brand. Along with the campaign Asian Paints also ran parallel ads for its sub brands. Asian Paint follow good promotional strategy regarding their sales of the product. Their promotional strategy are made looking at the different category of the product and price associated with it. In Urban areas Asian Paint established colour world where the customer can enjoy the taste of real colour while in rural sector it follow sales demonstration programme along with van displaying the product of Asian Paint in the rural market. It also invest a huge amount of funds in advertising sector for promotion of there products. Asian Paints promotional strategy active in festive periods. Asian Paints Rural Marketing started in 1970. Distribution is one of the main focus strategy of Asian Paints. Advertising & Promotional Expenditure was started in 1980s. Advertising Methods used - Radio, TVs, Print, Internet, OOH, POP, Retail Outlets, Seminars, Workshops. Asian Paints brand Ambassadors, Soha Ali Khan Saif Ali Khan bond over in the new ad of the brand. Asian Paints have come up with a new paint named Royale Aspira which gives 5 years of warranty. In the new ad the brother sister duo are speechless after looking at the Royale Aspira painted wall. Saif and Soha Ali Khan had previously done an ad together in the year 2011 for Asian Paints Royale - PLAY. MACRO ENVIRONMENT Overall global economic environment is volatile with the Euro crisis and Crude oil prices still not completely addressed. There are risks of growth not picking up in developed countries, which can have an impact on the global economic environment. The socio-political situation in some of the key oil producing nations has been fragile for some time now. Any deterioration of conditions in any of these countries can affect the global crude prices, which can have significant impact on prices across the board. Costs of key raw materials like used in paint industry have been on rise for some time now due to their relative shortage, inadequate investment in fresh capacities and buoyant demand conditions. There is risk of the prices not coming down anytime soon.Environment and Safety MARKET SEGMENTATION/TARGETING Exterior paints are targeted at builders, real estate developers and contractors. An exterior finish known as gattu or cement paint, is used on walls as it is extremely economical and durable. The main requirement for such customers is the durability rather than smoothness or colour. Interior Paints on the other hand are targeted primarily at home owners, interior designers, as well as carpenters and contractors. Here stress will be laid on the smoothness, texture, colour and finish of the paint. The colour stores go a long way in promoting the Interior Emulsions. The primers, putties and the other such ancillary products would be purchased by contractors and carpenters as a part of the painting process. Targeting is based on the quality and pricing of the paints. Within each segment, Asian Paints offers innumerable products. In the Exterior Emulsions Asian Paints Apex Ultima is a premium, high-performance brand which caters to the economically higher class and is used on premium buildings. Asian Paints Apex is a Mid Range brand catering to the next segment of society. Similarly, in the Interior Paints sector, the products are price-differentiated in the following way:Emulsions : These are water based paints Acrylic Emulsions are extremely durableEg: Asian Paints offers three brands to choose.Premium - Apcolite Royal Acrylic Emulsion.Medium - Apcolite Super Acrylic Emulsion.Economical - Super DecoplastDistempers: These are also water based paints but their binders may be very natural or synthetic. Distempers are economically priced, they offer good value for money as they are durable. Eg: Asian Paints has Tractor Acrylic washable Distemper, Tractor washable Synthetic Distemper .Asian Paints follows a V-Tier Customer Target StrategyTire 1 - On the recipient end there are strategic solution seekers. Company thinks of cost reductions, performance & productivity improvement for clients, improving customers & shareholders profitability.Tier 2 Here the customers can be considered as value or brand sensitive. Asian paints targets these customers with value added VDS integration customer level service.Tier 3 These consumers are price sensitive. They are least bothered about the service. These are mainly middle or low income group people Asian paints have several brand like UTSAV to serve them.Tier-4 Here the company targets the small manufacturing & local companies, which can generate revenue. Company utilizes its business & telesales technology to address & satisfy their needs. Tier-5 This tier is composed of specific targeted companies that although small in size, deserve special attention because they are highly innovative in nature. Asian paints has a good prospect over here.POSITIONING From 1999, Asian Paints has undergone a transformation and repositioning, thereby emerging as a consumer oriented, value added paints company. The consumer market had steadily been changing, and repainting of houses primarily during festival seasons was becoming a less dominant trend. Painting became less seasonal and utility based. Instead, consumers became more aware and conscious about home dcor and home making. The rise in colour consultants and Interior designers also contributed greatly to this trend. As a result, Asian Paints began to position itself as a part of this high voltage emotion of home creation. Core Thought : Asian Paints is about people who invest emotional energy in creation of their homes. This sentiment is captured even in the advertisements where painting a wall is associated with a number of different events or emotions.Change in Visual IdentityAsian paints revamped its image as well as its packaging to get a more contemporary and international look and enhance the visual appeal of the brand.Service OfferingAsian Paints introduced a new dimension of service offering where it finally delivers not just paint but a painted home.Asian Paint offers Paint Selector, Paint Budget Calculator, Colour Ideas Store.DIFFERENTIATING Asian Paints team listens to what a consumer wants and able to identify latent demand and meet consumer expectations much before other competitors. From the launch of small packs, to the introduction of exterior paints, to a foray in the painting service sector with Asian Paints Home Solutions, was the first in the industry to introduce such offerings. Asian Paints not only differetiates its products by innovating ideas but also online and offline colour budgeting, colour selection services to potential customers to drive the market demandsSUPPLY CHAIN

Documents

Asian Paints- Marketing Management Report