Market MakersThose who created new opportunities for their company or brandThey identified the unfulfilled customer need and wantsOut of these needs they sensed the opportunities that can be

capitalized onThey tapped on these opportunities and made a business These are the companies that transformed the landscape in their

respective sector

ICICI BankFounded in 1994 by Industrial Credit and Investment Corporation of India In 1990s banking mainly meant corporate banking, but ICICI bank started focusing on retail

customersBank used aggressive marketing, competitive pricing and a lot of innovations It attained profitability soon after its inception and became first Indian bank to be listed on NYSE

ICICI Bank is India's largest private sector bank with total assets of Rs. 5,946.42 and profit of Rs. 98.10 billion

ICICI Bank currently has a network of 3,853 Branches and 12,123 ATM's across India

ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab National Bank and Bank of Baroda.

The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre

Dabbawalla of Mumbai In 1890, Mahadeo Bhavaji Bachche started a lunch delivery service with about a 100 men In 1930, he informally attempted to unionize the dabbawallas A charitable trust was registered in 1956 under the name of Nutan Mumbai Tiffin Box Suppliers

Trust The commercial arm of this trust was registered in 1968 as Mumbai Tiffin Box Supplier's

Association

ISO 9001:2000 certified by the Joint Accreditation System of Australia and New Zealand

Between 175,000 and 200,000 lunch boxes are moved each day by 4,500 to 5,000 dabbawalas

Each dabbawala, regardless of role, is paid around eight thousand rupees per month

It is reported that the 125-year-old industry continues to grow at rate of 5–10% per year

They are believed to have attained a service level equivalent to of 99.9999 six sigma rating

LIC• Established in September 1, 1956, owned by the Govt. of India• Subsidiaries include LIC Housing finance, LIC Pension Fund Ltd. , LIC international, LIC Nomura Mutual

Fund and LIC Card Services • Business Model

• Plethora of products: Pension Plans, Term insurance, Housing Loan, Accident Cover, Saving Schemes• First Movers Advantage

• Financials and Company Size - Total assets of INR 1560482 crores, Profits of INR 2469 crores• First to bring insurance in the country

• Highest Claim settlement Ratio (97.4%) Source: IRDA Report• 70% market share overall in Insurance sector

• 6th most Trusted Brand in India• Immense goodwill among all classes of society• Claim settlement easier compared to its competitors

• Unique Distribution Channel• 13 Lakh insurance agents | scope for further growth as current penetration is only 5 %

Parachute Oil• Earlier, Coconut Oil was sold in loose as a commodity• Marico was the first to brand coconut oil and hence introduced consumer packs for ‘Parachute’• The packaging was changed from Tin to Plastic• Parachute Blue gains instant recognition• Symbolized Purity and Nourishment• Mass communication on the platform of ‘caring’ with mother daughter them• Introduced anti rodent packaging with flip-top caps; this made the container spill proof and tough to

counterfeit• Introduced easy all-season jars to scoop out frozen oil in winters, especially in North India• Today, it is a 1500+ crore brand which could not be dislodged by HUL with all its might; it instead bought

Nihar Coconut oil from them at 227 crore• Flagship product is promoted as a ‘Coconut oil’ and not ‘Hair Oil’ as the tax slabs are lower for the

former

Asian Paints• The brand began in 1954.• With a modest beginning, it soon became the market leader in 1967.• The brand de-commoditized the paint category and pushed it to become a

high involvement product.• With its offering spread across different price segments, the brand

represents both Mass and Class

Selection CriteriaProposition: All the market makers we have chosen were either

pioneer in their own idea or provided something new that present competitors were not providing

Profitability: Not only these market makers fulfilled customer needs, but they did it profitably

Practicality: These companies were able to extend their idea on large scale (There are many companies which have novel ideas but do not have scalability)

Relative position in the industry: How are the competitor’s doing?Philanthropy: All these market makers not only did make money, but

also had a positive impact on society

Selection of the Brand

Weightage

Score (out of 10)

ICICI Bank Dabbawalla of Mumbai LIC Parachute

OilAsian Paints

Proposition 0.20 6 9 9 9 9

Profitability 0.20 9 9 9 9 9

Practicality 0.25 9 3 9 9 9

Relative position in the industry 0.25 5 9 7 7 8

Philanthropy 0.10 7 3 7 7 7

Total Score 7.2 6.9 8.3 8.3 8.6

Asian Paints Ltd Group 6

Sector Snapshot: Paints in India is Rs 280 Bn market growing at a CAGR of 13 %

Indian Paint Industry

Decorative

Emulsions

Distemper

Industrial

Automobiles

Marine Paints & others FY13 FY18

280

500

* Figures are in Billion RupeesSource: Equitymaster report

The sector is expected to grow to Rs 500 Bn by 2018

13 %

Sector Overview: The sector is over a 100 year old with a lot of opportunity to grow

* Figures are not to scale ( per capita per kg)Source: Equitymaster report

The per capita per annum consumption of paint in India is still very low

• The Indian Paint Industry was initiated in 1902, when Shalimar Paints set-up its first factory in Kolkata.

• After liberalization, as the excise duties got drastically reduced (from 40% to 16%), the industry recorded a healthy growth of 12-13% annually.

India 1.5 Kg

Global15 Kg

10 Times

Market Players: Around 70 % of market is dominated by organized sector players

* Sales Figures in Rs Crores (2014 data)Source: Euromonitor report

The domestic market is oligopolistic in nature with more than 90 % of market share with top 4 players. Asian Paints is the market leader with a lion’s share of ~54%

Asian Paints

Berger Paints

Kansai Nerolac

Akzo Nobel

Shalimar Paints

10,925

3,384

3,334

2,417

520

Asian Paints: Asian Paints with its modest beginning became the market leader in 1967

Asian Paints Limited was set up as a manufacturing unit in suburbs of Mumbai in the year 1942. APL has been leading the Indian market since 1967. In 1998 the company worked with Booz Allen Hamilton to craft a restructuring program and ultimately come up with a new vision. “To secure a place among the Top Five decorative paint companies in the world by the end of the decade.”

Asian Paints: A customer centric approach with high focus on distribution were key levers of success for Asian Paints in the domestic market

Identified need gapsPricing PoliciesProducts LineAP Helpline, Home SolNew Revenue Streams

Mainframe in 1971V-SATS in 1994Demand ForecastingReduce InventoryLow Working Capital

Avg Cap – 67,000 MTBargaining powerInvestment in R&DFormulation EfficacyReduced Cost

16,000 dealers18-20 % exclusiveIntangible AssetsB-School RecruitersTop Management

Customer Centric IT Infrastructure Supply and R&D Distribution and Talent

Feedback Collection Real Time Data High Bargaining Power Reach and Sales Force

Asian Paints: The brand tried to de-commoditize “Paint Category” to create an euity for itself

Asian Paints, mindshare was perceived to be far lesser

Not perceived as the largest paint manufacturer in Asia

A brand for masses

• Establishing Asian Paints as the leader in the paint category

• Presenting it as a manufacturer of premium paints

• Establishing high salience for Asian Paints in what was inherently a low interest category

• First attempt for repositioning as a a premium brand “Spectrum of Excellence”

First Corporate Communication in 1983

Asian Paints: The brand moved a step closed to consumers by associating paint with celebration and joy

“Paints are seen to rejuvenate and brighten up a gloomy place, and give a room a more

spacious look. Painting signifies festivity, life and plenitude”

“Celebrate with Asian Paints”

https://www.youtube.com/watch?v=lTf4a6wZNnI

Asian Paints: In 1990s the brand went for a major overhaul and a repositioning

The festival platform had become cluttered

Change in buying behaviour. Importance to Décor and design

From a low involvement category to a high involvement category

Paint became less seasonal and hence relevance of festivities decreased

Asian Paints: In 1990s the brand went for a major overhaul and a repositioning

“The brand is about people and homes and homes reflect the people living in it. Hence”

“Har Ghar Kuch Kehta Hai”https://www.youtube.com/watch?v=KdzRjvdK67w

Asian Paints: The campaign was complemented by initiatives for moving from a “Product-only” to “Service-also” space

Helpline

Colour Guide

Colour Stores

Asian Paints

Mix n Match 151 Shades

Colour Consulting

• The brand rolled out its premium offering, “Asian Paints Royale” in late 2000s

• https://www.youtube.com/watch?v=os95UsCZEBw

Value with Volume

Asian Paints: The launch of Colour Ideas store and Colour world is one more step towards servicifing a product

In 2009 the company introduced dealer-owned Colour Idea stores. Unlike the traditional dealers who sell through hardware stores where paint cans jostle alongside hoes and hammers, the new stores focus on matching customers to the right color. They’re outfitted with color boards displaying samples of interior and exterior finishes, and there’s a color consultant on hand who provides computer visuals showing how a room will look once it’s painted with a certain color.

https://www.youtube.com/watch?v=TlSiHV9I6OU

Asian Paints: The brand continued to globalize with various acquisitions and JVs

• 1942 : A partnership was established

• 1945: The partnership changed to a company

• 1954: First Plant set up in Mumbai

• 1967 : APL becomes market leader

• 1978 : Entered Fijian Market through a JV

• 1982: Entered Tonga, an island in South Pacific

• 1982: Went Public; Share issues

• 1983: Entered Nepal• 1985: Entered Solomon

Islands• 1995: AP enters Australia• 1996: 50:50 JV with PPG for

automotive Paints

• 1998: Restructuring• 1999: Entered Oman• 2000: Acquired Pacific Paints in

Australia• 2002: Acquired SCIB chemicals

in Egypt• 2002: Acquired Berger

International and its 11 subsidiaries in Singapore

Asian Paints: The brand’s global movements are being complemented by giving its visual architecture a revamp

- At the heart of the new logo, is the ribbon which flows to create the lower case letters 'a' and 'p'- The ribbon's design is meant to highlight the easy flow, smoothness, dynamism and possibility that their solutions and offerings will provide- The ribbon has bright colours red, orange and purple giving it a nice contemporary feel - The word 'asianpaints' with the 'p' shown with some dripping paint it still retained from the previous logo but unlike its predecessor, the term paints is in red not yellow

Asian Paints: The brand is currently reinventing itself in digital space

Asian Paints: The brand is currently reinventing itself in digital space

The digital communication is targeted at the purchasers in the age group of 31 +

Customer conversions in digital space is skewed towards male population

Source: SocialAnalytics 360

Asian Paints: The brand is trying to move from “Product-First” to “Décor-First” space

• Home décor in India is a $20 Billion industry growing at a CAGR of 15 %.• The purchase in this category is driven women. While women are the key decision makers, final

purchase is joint decision. • Paint as one of the vehicles driving Home Décor

https://www.youtube.com/watch?v=BaZ66Zj2Exs

Asian Paints: The brand is trying to move from “Product-First” to “Décor-First” space

home decor id

eas

home and decor

wall deco

r

home wall d

ecor

home decor s

tores

home decor fu

rniture

home decor d

iy

home decor o

nline

home design

home decor s

tore

100 100

55 55 5545 45 40 40

30

Volume Index of Associated Searches

Although the category volume search is increasing overtime, “Paint” doesn't find relevance in associated searches

Home Décor Asian Paints0

1020304050607080 70

25

Category vs Asian Paints

Asian Paints gets significantly less number of average searches when compared to the Home Décor category.

Asian Paints: The brand has product offerings across segments and spends heavily on advertising and marketing

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