SYNOPSIS

1. Introduction to Project report

2. The Paint – An introduction
3. Asian paints India Limited – A profile
4. The paint manufacturing companies in India and they are compared with
Asian Paints
5. kademane trader – A profile
6. Consumer response in Shimoga City
7. Problems faced by the Paint Industry in India and Solution for the
Problems
8. Analysis of Survey findings,
Conclusions and Suggestions
Annexure
Questionnaire
Bibliography
 CHAPTER – 1

INTRODUCTION TO PROJECT REPORT

A. Introduction
A. Objective of Study
B. Scope of Study
C. Methodology
D. Consumer Behavior
E. Limitation
 INTRODUCTION TO PROJECT REPORT

a. Introduction :

the objectives of all business Enterprises are to satisfy the needs and

wants of the society. Therefore, the marketing is the focal paint of all business

activities.

Production on purchase has no meaning unless a firm is able to market

the goods and services. Nothing happens unless somebody sells something.

Marketing that individual and social needs are satisfied. Marketing helps in

improving the standard of living of people by providing a wide variety of goods

and services.

Accepting of marketing concept necessities a through knowledge of

consumer preference, attitudes and Motivation, consumer orientation has

become a very important concept in selling a product. The Traditional

marketing concept namely sales oriented concept is mainly concern with

disposing of surplus. Where as Modern marketing concept is concerned with

consumer oriented of Marketing area, therefore according to modern writers a

marketing means providing goods and services to the consumer oriented of

Marketing activities, contribute towards welfare of both

 consumer and marketers, traditionally marketing has been defined in the

narrow sense as the performance of the business activities that directs the flow

of goods and service from producers to consumers or users.

American Marketing association consists of those activities, which affects

transfers in ownership of goods and care for their physical distribution.

Businessmen understand Marketing as a process of distribution,

Marketing represents all business activates involved in the determination,

creation and satisfaction of human wants at the fair prices, According to

traditional concept Marketing means product oriented on sales oriented, where

in the focus in a selling whatever as be reduced in this view marketing begins

after the goods are produced and ends with their sale. This view of Marketing is

in appropriate to the modern business characterized by intense competition

consumer consequences and dynamic environment.

Under the modern concept marketing is more than a mere physical

process of distributing goods and service. Marketing is the business process by

which products are matched with the market and through which transfers of

ownership are effected, market and through which with the market implies

determining the requirements of potential customer and designing producers

that satisfy these requirements, modern marketing is that the integrated process
of identification assessment and satisfaction of human wants the focus is

customer and his wants.

b. Objective of study :

The main aims and objectives of the project report are as follows :

1. To know the consumer attitude towards “Asian paints” in Shimoga city.

2. To find out the factor that cure influencing consumer behaviour.

3. To know the position of “Asian paints” against other leading companies

producing paints.

4. To find various problems in marketing the Asian paints.

5. To give proper conclusions for improving the marketing of paints.

6. To know about the performance of the dealers in marketing the paints and

their sales profits.

c. Scope of the Study:

The Study of this project report is confined to shimoga city only, the

study was conducted to know the attitude of buyers regarding the various brands

of paints and their performance, the study was also intended to know the buyers
attitude towards “Asian Paints” their frequency of purchasing Asian paints they

purchase, their opinion regarding the quality, colour, price etc.

d. Methodology :

The data collected for the preparation of this project report includes both

primary and Secondary data is collected through personal. Interview with the

salesman and authorized dealers and secondary data is collected by preparing

questions and market survey and other printed sources and annual reports of the

company.

For the purpose of analyzing marketing performance of Asian paints and

their problems and other details Data have been collected form the salesman of

the company and the dealers of the Asian paints.

e. Consumer behaviour :

Consumer behaviour is one of the important variables on controllable in

the marketing Environment, Buyer behaviour is a comparatively new field of

study. It is the attempt to understand & predict human actions in the buying

notes. It has assumed gracing importance uses market oriented for customer
oriented marketing planning and management, buyer market for many products

and the growth of consumerism and consumer legislation.

Since, 1960 have created special interest in buyer behaviour and

formulation of marketing programmer to respond favorably, buyer behaviour in

the market place.

Every marketing activity revolves around the customer in the early stages

of economic Evolution, the consumer had to accept what producers and

produced, but today the consumer dictates terms to the manufacturer to

manufacture the product he wants, consumer purchase a commodity as dictated

by their mental an Economic force. As consumption initials production the

producer should identify the motive, which prompt consumer purchases, this

helps into offer a total product that can.

f. Limitations;

When the consumers were contracted and requested for their opinion

through personal interview about the study perfect answers were not obtained,

because some shown their reluctance to respond due to different reasons.

But as for as possible it has been tried level best to get the correct exact

level and precise information towards the study.

 Since the paints are costly and durable one, lit is rather difficulty to get

respondents from all sections of Community.

The scope of study is limited to Shimoga city and the inferences have

been drawn with the help of the opinions the respondents of Shimoga city only,

therefore there is chance of influences becoming unsuitable in such marketing

Environment which have completely a different set up of marketing trends.

The time allotted for surveys is very limited. It has become difficult to

collect more and more information’s from large respondents.

 CHAPTER- 2.

THE PAINT – AN INTRODUCTION

i. Introduction

B. Development of Paints

C. Types of Paints

D. Components of Paints

E. Manufacturing Process

F. Limitations
Introductions to Paints: -

Paints is a liquid material applied to a surface to from a hard continuous

film for protection of surface and decoration. If consists of pigments or

colouring Mattel and the vehicle in which the pigment is suspended the function

of vehicle is to form a touch film when applied to surface and to bind the

pigments to the surface, paint may be applied to metal. Wood. Stone, paper,

leather, cloth or other surface the application of paint serve two very useful

purpose. They protect the surface of objects and they make the objects colorful

and attractive.

Today, the importance of paint has long transcended mere decoration

while paints not only give those fabulous touches to our homes, cars, funs and

they also fight against corrosion with since and technology developing paints

cannot be considered as a mere decorative infect, in certain cases, the decorative

part is takes a back seat paints are needed for variety of special jobs. If is

generally thought that paint is luxury item and it is mainly used for decoration

purposes, people does not understand and appreciate its protective valves.

Modern paints, are not only beautiful but also protect surface from decay and

corrosion for instance, office building, bridges, public buildings an machines

require paint and missiles, rockets and space ships need coating that will

withstand friction and high temperature the paints also protect the national

properties like bridges, buildings, chemical plants and other encoring structure

etc., from rusting and decay from the powerful ultraviolet rays of the sun, rain

an humidity, effective protection of rural housing, agricultural an industrial

implements, bridges etc., can be achieved only by protective paintings paint is

used widely in homes as well as in industry because painted are easy to keep

clean. If is the effect that cores of rupees goes down the drain in our country due

to corrosion of various forms due to the expensive of machinery, construction

materials, transport equipment’s transport equipment’s, road ways, railways

travels etc., So as to avoid corrosion paint is used thus paint transcend not only

decoration but also preservation.

In recent years, the use of paint to homeless in creased walls, furniture,

toys and even kitchen utensils are painted in sparking colors. Appliances such a

refrigetors, stoves, vacuum cleaners and electric fans are now available in a

wide variety of colors paints is important for the purpose other than decoration

and protections studies have shown that certain colours tend to improve the

morale of business employees and hospitals patients, Bright safety colours are

used in factory and firm equipments.

Paints are manufactured for specific purposes. Available ready mixed

paints for example, enamels and flat paints, out door and indoors paints, anti

corrosion, metallic and fireproof paints sealers, primers and other coatings.
Growth and developments of paints :-

The earliest known use of paint was in the cave dwelling of pre-historic

men 90.000 years age the cave dwellers used red, yellow and black pigments

with blinders of animal fat, the Egyptian has seven colours, including blue and

green and a variety of binders, they are created with the discovery of varnish,

the Greeks and Romans increased the number of paints, paints were used for

representation and decorative purpose for thousands of years before the idea of

using them as protective coating appeared, the earliest known paintings, found

in the caves of Lascaux, France and Atlantic, Spain, made iron oxide, plied with

out binder, Data from early as 1.500 B.C.

Early of people of Africa’s and America’s also used paints to decorate

temples and dwellings, the Egyptians prepared colours from soil and by 1900

B.C imported such dyes as pudding and madder to make blue and red pigments.

By 100 B.C they had developed a vanish from the gum of Acacia tree ( Gum

Arabic ) that contributed to performance of their art.

Oil Base Paints:

Until the end of 19th Century, most of the paints are base which formed a

thin and drying the linseed oil is the lowest and most common oil, although

castor and fish oils were in use in the 19th Century, peril, octane and tug oil have

been used extensively in paint making more recently tail oil which is derived as

a by product in paper making has gained an increasing share of the market

among vegetable oils developed for the paint industry in the last so years are

sun flower and Soya oils.

Water based paints :-

Various types of water based paints are used for centuries the ancient

Egyptians and Hebrews are known to have made paints from water and freshly

burned lime to which milk curds were added to act as binder the use of paints

declined during middle ages but was relieved during the Renaissance period.

During the early American colonial days. It was a mark of wealth to have

printed house. In the 20th Century the majority of American houses were painted

inside and outside both.

Until late 19th Century, pigments and binders had to be mixed by the

painter. Ready mixed paints were developed in the 1960’s since that the time

improvement in the quality of ready paints have been made continuously.

The Real Spurt :

By the 20th Century the development of synthetic veins and rubber caused

and sudden increase in the number and kinds of paint available. Some special

purpose paints such as antifoaming paint for huts of ships and fire resistant paint

were developed during world war-2. Especially for military applications. In the

1920’s casino paints achieved some popularity. But they were soon replaced by
the alloyed resins and the water based paints some water based paints which are

emulsion of synthetic resins in water, are being replaced by other water based

paints made from synthetic resins that are soluble in water.

Emergency of paints with science and technology :

The 20th century brought an enormous proliferation articles requiring

protective coating, a corresponding proliferation a paint produce was achieved

by extensive research efforts the industry contributed the knowledge needed to

upgrade and Evaluate pigments and plastic industry also contributed the

development of polymers the most significant change in paint technology in this

century in the return to “aqueous” system at level of sophistication and

complexity never achieved by Egyptians.

Largely as result of development on water based paints, a revolution has

to taken place in paint industry in the last 30 years and materials of which paint

is made, the used which it is put and the method by which it is applied to have

been radically changed. Now the industry is stable, the raw material are

virtually unlimited not with standing computation from plastics deceptive

fabrics and ceramic tiles.

5. Types of paints

1. Plastic Paints :

It is used for interior decoration. If is mixture of plaster of pares powered

and mice. It is marketed as dry power and it is mixed with water to a stiff paste,

which is then applied by scoop shaped tool with a short handle. It is finally

given a heavy stripe ; plastic paints dries very hard but gives a smooth

decorative finish for interior surface. Rice mute aryl emulsion with a superb mix

and metal potential the touch of Ethel elegance enduring appeal timeless valve.

2. Distemper:

Distemper are also water based but there binders may be natural or

synthetic, distemper are Economically priced they after good value for money

as they are very durability.

3. Floor Paints:

These are mainly used on wooden and concrete floor. Concrete floors are

painted for decorative purpose. Protections of concrete from oils grease and

chemicals and to prevent dusts.

4. Anti corrosive paints :

This is special kind of Paint, which refers the growth of marine fauna on

shop-bottoms. They are prepared by in corporation toxic materials in a quick

drying medium.

5. Anti-corrosive paints :

These paints are widely used to prevent corrosion the corrosion paints

consists of special corrosion inhibiting pigments and the binders and material

such as drying oil, varnishes etc.

6. Acid proof paints :

It is mainly used in laboratories where it is reacted is acid paints acid

paints are :

1. Lacoloid

2. Bottles acid alkali and heat resisting paint

3. An sphaltese.

7. Road Marking Paints :

These paints are used on concrete and roads. Surface of cark, parks,

aerochome, railways, and industries. This type of paints takes less time to dry

up this paints have better a resistance and good weathering resistance. They can

be safety use on concrete corporate railway etc.

8. Hammer finishers :

Hammer finishers are used extensively on instruments, metal surface,

typewriters, office furniture and sheet metal work the advantage of metallic

paint is that they do not collect dust.

9. Heat Resisting paints :

These paints are used to cover warm add hot surface such as cylinder,

heads of aircraft engine, over boilers, these can be made to stand a temperature

up to 150 degree centigrade without an colour of the painted materials.

Heat resisting paints are :

1. Foretell heat resisting aluminium paints

2. Foretell stach black

3. Salvaline aluminium paints.

8. Enamels

They are made of combining pigments with varnish enamels from a hard

tough film with a gloss or semi gloss finish. They are durable and easily

washed.
1) Components of paints :

Paints are made of basic ingredients some which are natural while others

are synthetically manufactured the following are the three major of the total raw

material

a) Titanium-di-oxide

b) Pathetic-anhydride

c) Pentaery thritol

Other important raw material used in paint are as follows : carbon black,

chrome, glycerine, inc oxide, antimony oxide, white lead iron oxide, chromium

oxide etc.

Raw material Constraints :

The paint industry is raw-material intensive, there is shortage of raw

materials. In the absence of an export market the industry became a net

consumer of foreign exchange. Infect, imports have been shoving as upward

trend, the net foreign exchange out go had gone up from RS. 821.4 million in

1992-93 to RS. 1229.1 million in 1995-96. During this period, Exports as a

percentage of sales had come down from 2.88 percent to 1.16 percent.

The Export prospects are not encouraging as the industry in the

international market. The industry should aim at achieving economics of

scale compatible with global trends. Another problem emerged from collapse
 of soviet union. About 90% of the exports used to be this region at one time,

the gains of excise concessions are being nullified by and steep escalations in

the prices of lacy raw materials. As over 70% of raw materials is petroleum

based, the raising prices of these materials put presume on the manufacturers

marquis the paint manufacturers were forced to revise prices these during the

year 1997-98.

The important duty for these major raw materials was reduced- form 89%

in 1995-96 to the currently level of 40% however the simultaneous increase

in the international prices more or less compensated for the reduction in the

important duties. In line with the liberalization policy both in important duty

and the excise duties are expected in further reduced.

While reduction in import duties could case the presence exerted by high

raw material costs the reduction in the exercise duty could further reduce the

competition from the unorganized sector.

Meanwhile, some of the major paint companies have embarked an

expansion plans to consolidate then positions and especially to strengthen

their industrial paints markets.

7. Manufacturing process :

In general, paint manufacture, which was considered simply a mixing

operation decided age, has become a special branch of chemical industry.

 Now, care is taken by Employing lasting techniques of process control

and industrial engineering to produce good quality surface coating at law cost

and better durability. By adequate research and development on this field a new

Era has landed up in giving a wide range of special finishes.

The outline of manufacturing is given below with the help of 7 steps.

1. Weighing the liquid material for the paints vehicle is the first step in

making paint bring the materials from storage areas.

2. Some liquid vehicle is poured in the large mechanical mixers, this

pigment of colouring material of the paint is added at this paint mixtures

from a paste.

3. Then this paste is passed to the roller mill through pipes this roller grind

the vehicle and pigment into a paste that has the desired smoothness and

intensity of colour. After grinding the paint floors into a large mixing

tank where it is thinned and tinted.

4. To make the paint thinner, the manufacturer adds solvents, catalyst and

vehicle. In the tinting process a small amount of pigment is added so as to

give the desired colour and shade.

5. Sample of paints are now taken to a laboratory and tested to see that the

paints has meted the established or estimated colour standard and has

proper drying body and other qualities.

6. After the paints are tested then the paint is allow to the strainers. So sa to

remove bits of client which are present in the paint.

7. In the step the paint is filled into can with the help of filling machine,

these filling machine fills the right amount of paint in the can, then these

filled can one loaded on tracks and trains so as to meet to consumer.

 CHAPTER – III

HISTORY AND VISION OF ASIAN PAINTS

A. History of Asian Paints

B. Types of Asian paints

C. Supply chain Management in Asian Paints

 Home Corporate profile – History & vision

1. Our Vision :

“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 alliance with established global

partners”.

2. History :

a. February 1, 1942

During the Second World War, it was hardly a promising time to set up a

new company in. India but that is exactly what four young men did in Bombay.

The name “Asian paints” was picked randomly from the telephone

directory, And the four young men started manufacturing paint in a garage

rented for Rs. 75 a month, equipped with little more the a traditional Gujarati

rhyme that reminded them that you can make any colour by mixing the right

proportions of red, blue and yellow.

b. 1945
 The company had touched a modest turnover of Rs. 3,50,000 way beyond

the wildest dreams of the partners. Up against the giant international paint

companies, Asian paints hit on the innovative marketing strategy of “going

where the consumer is”, reaching out to the remotest corners of country to give

consumers products the way he wanted them-in-conveniently-sized packs. It

was also around this time that the company created its mascot, Gattu, which has

grown into one of India’s most recognizable advertising symbols and

representative of Asian paints strong Indian identity.

c. 1957

It was the beginning of a decade of dramatic growth. The company’s R &

D department figured out a way to produce international quality phenolic and

Maleic resins on its simple coal-fumace, with a hand-stirring process. The led

Balmer Lawrie Lawrie to reject the products offered by a leading giant UK-

owned paint company, despite the latter’s perceived technological advantage

and switch to Asian paints products.

Simultaneously the company embarked on an ambitions marketing

campaign, forming close bonds with thousands of dealers in small towns all

over India. These bonds in true Asian paints style were so close that it

developed a very strong link between the organization and dealers :

d. 1968

By 1968 the company surprised its big-name multinational competitors

by emerging as India’s No. paint company.

Ever since 1968, the company has been a leader in this industry. The

company presently has 27% market share of the total paint market.

Even though being a leader in this industry, it has realized that it can

further consolidate its position.

e. 1998

in 1998, the company embarked on a major restructuring strategy under

the guidance of management consultants, Booz Allen & Hamilton. The

restructuring was done to bring grater focus to its business, improve

efficiencies, control cost and strengthen its leadership position. After the

completion of the restructuring, the vision for the company was stated. The

company is committed to realizing its vision and has chartered a complete plan

of action for realizing its vision.

Asian paints has been on a very strong foundation and enduring principles of

fair play, mutual cooperation and growing investor value-tapping India’s innate

creativity and adding to its through world class technology.

As a strong and mature company, Asian paints recognizes that change is

inevitable in corporate life and that the challenge of change can be handled best
by pursuing the same principles and vision that provided order and growth in

the past.

Supply chain management :

Asian paints has set-up an efficient supply chain system which integrates

& plants, 6 regional distribution centers, 38 outside processing centers and 74

branches catering to around 15,000 dealers and 500 Industrial customers.

The supply chain runs through a wide spectrum of functions- ranging

from materials planning to distribution. Our supply chain management has

played a pivotal role in improving operational efficiencies and creating agile

procurement, production and delivery systems. Efficient supply chain

management has enhanced the flexibility of operators, lowered throughput time

and reduced delivery costs, while improving customer- servicing levels.

The decision to introduce a supply chain management solution was taken

by Asian paints in 1998-99. Asian paints has been awarded the “cheminor

award for 2002” for its “contribution and promotion of Excellence in supply

chain Management” by the Indian Institute of Materials Management.

In the past few years, Asian paints has witnessed good sales growth,

particularly in the water based paints segment. As a result, company has decided

to set-up, subject to necessary approvals, a 100,000 TPA plant for

manufacturing latex paints at pondichery.

 Further, total quality Management (IQM) techniques have been

implemented across “Asian paints” production facilities. Also total products

Maintenance (IPM) Measures were initiated across all manufacturing facilities

and will become an initial part of the production process of our company. All

the company’s paints have the ISO 9001 certification.

Lastly, 3,200 Employees of Asian paints welcomed around 1050

Employees of “Berger International and SCIB” in to the larger paints family. A

key priority for your company related to the harmonious Integration of these

companies with the Asian paints family.

Asian paints post net profit of Rs131.5 crore in Q2

Asian paint Indian largest company has posted a net profit of Rs 131.5 crore for

the quarter ended sept-30-2008.15.5% Up from the Rs 113.9 crore posted

during the corresponding peariod.

Previous year while sales and operating income for the quarter role 30.2%

touch Rs 1475.3 crore for the Rs1133.2 crore. In a separate release , the board

of directores has recommended the payment of an interiaum dividend of 6.5

per share [65%]

Asian paints along with subsidiary has operational in 20 countries across

the world.
 Greater results in sept- 2010

Types of Asian paints

1.Asian paints Rayale luxury emulsion;

description:

Rayale luxury sheen emulsion is an exquisible emulsion paint that provides a

luxurious finish and a silky glowing appearance to your walls, A water based

100% acrylic interior walls finished, it has excellant flow giving a near brush

mark free finish.

2.Asian paints Rayale glitter:

Description:

Rayale glitter for those who finish to add a sparkle to their homes. Rayale

present its glitter collection choose from a variety of glitter shades of and let

your home dazzle.

3.Asian paints Rayale play:

Description:

Asian paints Rayale play is a water based special effects paint designed to

create variety of special effects on interior walls.

4.Asian paints Rayale play metallic:

Description:

A paint is a water based special efforts paint create a variety of effects on

interior with a metallic designer look.

5.Asian paint royal play stucco:

Description:

Royal stucco is a marble finish is a water based special effects paints that

creates marble like metallic on interior walls.

6.Asian paints Royal play dune:

Description:

Royal play dun offers a unique collection of subtle metallic texture in gold and

silver base in 3 different styles for your interiors.

7.Asian paints Royal play safari:

Description:

Royal safari is offers rich metallic shades with unique grain texturing that

resemble is lands on the walls.

8.Asian paints duracost tex:

Description:

Pebble tex is a sprayed texture finish from the Apex duracast family of acrylic

water based textures and can be used both on exterior and interior walls,

9.Asian paints duracost cross tex:

Description:

It is a 100% acrylic silica based product that is best used to get a wide range of

innovative trowel based patterns for both exterior and interior walls.

10.Asian paints duracost fine tex:

Description:
Is a 100% acrylic water based exterior product specially designed as a

intermediate coating.

11.Asian paints apex ultima:

Description:

It paint advanced anti aigal weather proof emulsion is a water based modified

acrylic anti aigal high performance exterior walls finish.

12.Asian paints apex stretch:

Description :

Water repellent exterior paint is a 100% acrylic water based oil performance

long lasting exterior walls finish.

 CHAPTER – IV

COMPARISON STUDY BETWEEN ASIAN PAINTS AND OTHERS

 i. Introduction

2. Product Trend

C. Sales Analysis

D. Profit analysis

E. Marketing mix strategy

COMPARISON STUDY BETWEEN ASIAN PAINTS AND OTHERS :

Introduction :

Indian paint Industry comprises about twenty-eight companies in the

organized sector and about 1500-2000 small and medium scale players with the

organized sector accounting for roughly 50% of the total output.

There are about a half a dozen and about paint manufacturing companies

listed on various stock exchange, the performance and prospects of their script

are analyzed

As under :

1. Asian paints
 2. Good lass Norelco

3. Berger paints

4. Shalimar paints

5. Jenson and Nicholson

6. Bombay paints.

1. Production Trent :

The following table shows the last 6 year production of

paints in india

The following table

shows the last 7 years
production of paints in
India.
Production (laks in
Year
tons)
2004 – 05 40,92,784
2005 –06 42,07,564
2006 – 07 47,98,634
2007 – 08 49,78,738
2008 – 09 52,97,742
2009 – 10 54,98,884

In the year 2004-05 the production of paints is 40.92 lakes of tones

and in 2005-06 the production of pains increased to 47.07 lakes of tones

 This is because of high exercise duty charged by the Government

After 2006 – 07 the production of paints will be increased from year to

year. Because of the users and dealers of paints were increased throughout the

country continuously.

Sales Analysis :

The following table shows the sales of leading paint industry during the

year 2009-10

Name of the Companies Sales (In crores) In Percentage

Asian paints 9,078 53.06

Good lass Nerolac 2,342 13.69

Berger paint 2,251 13.17

Jenson Nicholson 1,352 07.90

Shalimar paints 1,113 06.50

Bombay paints 974 05.68

From the table we can know that which is the highest sales of paints in

India. The compared to other leading paint Industry .because high quality

product produced by the Asian paints.

Marketing Mix strategy :

Marketing mix includes four variable, such as product, price, promotion

and distribution, if influence the buyers, response the marketing mix has &

variables.

1. Product Mix

2. Price Mix

3. Promotion Mix

4. Distribution Mix

1) Product Mix :

Most of the companies are having a product and products varieties the

company may extent new lines on the develop new user for existing products.

So the different companies use the different techniques for production of their

products. So the paints will differ in their quality, colour and price of the

product mix.

2) Price Mix :
 Price one of greatest importance to the manufacturer, wholesaler, retailer

and also consumer. Many of the marketing strategy such as packing advertising

etc. After prices further Government regulations etc., also affected pricing.

Pricing of Asian paints is done by the company itself by taking in to

account the lost of raw-material, cost of production, cost of packing,

transportation cost etc. the pricing policy dependent on the cost of raw materials

and cost of production, further pricing policy are also influenced by the

fluctuations in the excise duty, Government regulation etc.

The following are the prices of different types of paints.

Types Rate / Litter

Luxol hi glass synthetic enamel 151.00
Luxol hi glass smells 191.00
Parrot synthetic Enamel 118.40
Butterfly G.P. Synthetic enamel 109.80

Heat Resisting Paints :

Ferrotal No. 1 94.00

Ferrotal heat resisting Paint 131.00
Ferrotal stack Black 85.75

The paints are not only use for decorate the houses, buildings, bridges,

but also use in “Gold ornament”. These paints prices are fixed on the basis of

colour, there is only one manufacturing industry in India that is in

“VADADHAR” (BARODA) in Gujarat State.

 “RAMADAS .M. NATHDNARNALA” was only the dealers in paints,

which is used for gold ornaments.

It is not water based or not in oil based. It is in the form of solids, and

then they construed into powders.

The prices of these enamel colours are different on the basis of their

colours.

Enamel colours Rate / 100 gram Rs.

Red darket 400
Red English dare 400
Honey gold dark English 300
Golden yellow 240
Green 240
Yellow 120
Blue 100
Rose 80
White pure 160
Green tur quoise 40
Parrot Green 60

Liquid Enamel colours :

Rs. 6% per Ism, size bottle,

Transparent :

Red, Blue, Green, Golden, Rose, Ferris, Honey gold and crystal.

Opaque :
 Red, Yellow, Black, White, Blue, Froze, Green, Parrot Green, Ivory and

Brown.

2) Promotion Mix :

Promotion mix is also a key element in our all marketing strategy, By the

Promotional mix we can make freely in the market, promotion mix comprise

personnel selling, advertising, sales promotion and publicity.

Asian paints adopt the promotional mix by giving advertisement in daily

newspapers i.e. if also gives an advertisement in magazines.

3) Distribution Mix :

When the products is ready for the market it has to be distributed properly

at required time for the required place the channel of distribution for a product

is the rest taken by the title is the move from the produces to ultimate

consumers.

Distribution channel of Asian paints :

The company has established various branches through the world the

branches are in Australia, Fiji, Solomon, Islands, Tongo, Vanuate in south

Nations and in south east Asia, there are several countries such as myanmer,
Thailand, Malaysia, Singapore and in south Asia, India, Bangaladesh, Nepal,

Srilanka and also other west Asian, Corinne and African countries.

Today, Asian paints, through its subsidiaries, has 23 manufacturing

locations in 22 foreign countries Jason paints has four operant manufacturing

facilities at Bhandep (Maharastra), Ankleshwar (Gujarat), Patancheru (Andra

Pradesh) and kansa (Uttar Pradesh), In addition, Asian paints have after 2 plants

in India they are Ankleshwar, (Gujarat) which produce phthalic Anhydride, and

another at cuddalore (Tamil Nadu), which manufacturer pentaerythritol.

These paints are transported by roadways and railways to the various

sales branches from these branches the paints are distributed to the authorized

deals in the different cities and toucans.

 CHAPTER - V

KADEMANE TRADERS SANTEBENNURE - A PROFILE

A. Establishment and origin of firms

B. Owners and Capital Structure

C. Location of the firms

D. Objectives

E. Sales analysis

PROFILE OF A SRI RAMA HARDWARE

A. Establishment and origin of the firm :

 Sri Rama Hardware is establishment in the year 7th December 1997. A

wide majority of Asian paints in Shimoga have something to do with this firm.

They are also the dealers of hardware materials, paint brushes, steel and Rubber

bedding, sandpapers and also the furniture materials, screws, bolt, nuts.

B. Owners and capital structure :

Sri Rama Hardware is run through the partnership firm. Mr. Narendra

K.J. and Mr. Ganesh K.R. are the owners of the firm the capital investment of

the firm is Rs. 2 lakhs – from the proprietors own capital and they share profits

equally and they also be investment the amount of Rs. 75,000/- from Bank of

this firm dealing only with Asian paints in small size but after it become a main

dealer Asian paints in Shimoga city,

Then the firm completely owned by Mr.Narendra K J the firm turned as Sole

trading firm in 2005.

1. Deco paints.

2. Enamel paints

3. External paints

4. Strainers

5. Apex paints

6. Heat Resistance paints.

7. Red oxide

8. Textured

9. Plastic
 10. Acrylic

11. Luster

12. Wood finishers etc.

The business hour of the firm starts from 9.30 A.M. to 2.30 P.M. and 1

hour will be time for lunch break and then in the afternoon it opens at 3.30 P.M.

to 9.00 P.M. and the firm is famous in Shimoga city, because of its good

quality, good service and good material of paint.

C) Location of the firm :

Sri Rama Hardware located in the heart of opp HDFC BANK, Savarline

road, Shimoga, role for effective business of the firm.

D) Objective :

The firms main objective is to increase sales with the objective of earning

reputation in the market by rendering prompt and valuable service to its

customer and there by maximizing the profit.

E) Sales analysis :

The above table shows the net sales in 3 years at glance.

Year Sales( in rs)

2007-08 16,79,903

2008-09 19,27,212

2009-10 21,00,817

In 2003-04 the firm shows sales of Rs. 5,30,720/- and after increase the

sales year by year. In recent years the firm not only deals with paints, they are

also dealing with hardware material like budding, paint, braces, blots, screws,

nuts, sand papers, etc.

Now a days Asian paints also become one leading paints in India.

Because the advertising media. It is attractive and memorized advertise so the

uses of Asian paints is increased. Asian paints are the keen competition for

other leading paints.

Last academic year Sri Rama hardware Reached the Award winning sales of

1Crore, Collected the reward from Asian Paints.

 CHAPTER - VI

Consumer response towords Asian paint

 Consumer response in Shimoga City

Table – 1

The table showing the brand preference of the total number of respondent

Name of the brand No of respondents Percentage

Asian Paints 21 42
Goodlass Nerolac paints 12 24
Berger panits 8 16
Shalimar paints 4 8
Jenson and Nicholson 3 6
Others 2 4
Total 50 100

From the above table we can observes that 42% if the respondents are

using Asian paints, 24% are using goodlass nerolac paints, 8% are using Berger

paints, 4% are using Shalimar paints, 8% and 4% of paints are using jenson and

Nicholson and others respectively.

Diagram Showing the brand preference of the total No. of the respondents.
 Table – 2

Table showing the Income group of the respondent to Asian Paints.

Income Group No of Respondents Percentage

Below 5000 10 20%
5000 to 15000 20 40%
15000 to 25000 10 20%
Above 25000 10 20%
 Total 50 100%

From the above table we may find that below 5000. Income group is only

20% and 5000 to 15,000 income group is 40% and from 15000 to 25000 and

above 25000 is 20% each other’s respectively in Shimoga city.

Diagram showing the income groups of the respondents to Asian Paints.

 Table – 3

The table showing the classification of the respondent according to the

occupation
Occupation No of respondents Percentage
Businessmen 20 40%
Employee 12 24%
Agriculturist 8 16%
Profession 8 16%
Others 2 04%
Total 50 100%

Out of total 50 numbers of respondents about 40% are belonging to

businessmen 24% of employee, 16% of agriculture and profession equally and

4% others.
Diagram showing the classification of respondents according to the
occupation
 Table – 4

The following table shows the factors influencing the buying behaviour of
Asian paints.
Consideration No of respondents Percentage
Popularity 15 30%
Easy availability 5 10%
Attractive colour 7 14%
Long life 13 26%
Economical 5 10%
Prompt supply 5 10%
Total 50 100%

Diagram shows the factor influencing the buying Behaviour of the Asian

Paints.
 Table – 5

The table shows the media through which respondents came to know about
Asian paints.
Media No of respondents Percentage
Advertisement 25 50%
 Friends 4 85
Dealers 8 16%
Others 13 26%
Total 50 100%

Many of the respondents to know about Asia paints through many media.

50% of the total respondents came to know advertisements like TV and

Newspaper because the advertisement is excellent and more memorable slogan

will be added 8% of them through friends and 16% of them through dealers and

rest of 26% will others.

Diagram shows the media through which respondents came to know about
Asian Paints.
 CHAPTER - VII

PROBLEMS FACED BY THE PAINT INDUSTRY IN INDIA AND

SOLUTIONS FOR THE PROBLEMS

A. Problems faced by the paint industry

B. Suggestions for the problems

 PROBLEMS FACED BY THE PAINT INDUSTRY IN INDIA
AND
SOLUTIONS FOR THE PROBLEMS

A. PROBLEMS FACED BY THE PAINT INDUSTRY :

The paint industry plays a key role in protective and anti corrosive

attributes to various surface. Apart from the enhancing the aesthetic appeal and

durability of the décor the products of the paint industry helps to enlaces the

house interiors and prolong the lives of physical assets like plant, machinery’s

and so on. Yet with all these benefits paint industry is facing many problems.
 It may seen impossible, yet if is true the Rs. 400 crore paint industry is in

distraught. The inconvenience and painting alone is not the course for

slowdown following social economic factors.

First and for most is the low consumption of paints second the high

production cost, third, slow progress in technological upgradation, forth the

miss concinced impression of being a luxury item and finally heavy taxes, It is

inter play of these factors in are from on the other that the producing companies

have been undergoing a colourless placed.

The following are the important problems that an Indian paint industry is

facing

1. Imbalance consumption pattern :

The per capital annual consumption of paints in the country is a merge

0.5kg compared to 20kg developed countries. In developed countries the 25 :
75, but in India, lit is 75 : 25.
This is because of two reasons first one is in India. This is a great demand
for decorative paints. The second reason is this is a decline in Government
outlay on capital account in the beginning. There is a maximum decline in
industrial paint in public sector but the government has taken necessary step in
creating the demand for industrial paint up to 38%.
There is an increase sale in the per capital consumption of paints of
different countries.
Per capital paint consumption

Item Country (In kg per annum consumption)

1 U.S.A 26
 2 Germany 23
3 Sweden 20
4 France 18
5 U.K. 26
6 Taiwan 16
7 Japan 16
8 South Korea 10
9 Malasiya 5
10 Philippines 4
11 Thailand 1
12 India 0.5
From the above table it is clear that above 45% of the total cost of

productions spend on raw material due to increase in the cost of raw-material

the paint Industry on manufacturer has to sell the paint for more price.

2. Heavy Taxation

Another major problem for point industry is that it has been subject to

high excise duty incidence. It was believed that in the wake of the industrial

liberalization the flurry in industrial activities in our economy would spur

demand for consumer durable.

The Government which used to buy about 40% paint output has severally

been restricted on account of penalty of funds onto only turnched public

expenditure as construction activities is causing paints to the paint industry and

inflationary pressure on its production cost has also been faced upon it the cost

spiral from which the industry is suffering has mostly been fuelled by

prohibitive excise duty.

Sales tax and unbridled input cost coupled with their irregular supply of

take of paints fell as soon as the automobile and consumer durable industries

began cutting their production.

3. Primitive Technology :

The making of paints primarily involves the blending of different items in

various proportion in most varieties of paints, the technology level is not very

high, the capital cost per tax.

This has enables 2000 small units Indian paints market the other 50% is

accounted for by 24 units is the unorganized sector.

4. Other factors :

Not only all these factors are seriously affecting growth in production and

domestic sales. But another factors like mansoons and the growth is the housing

sector. In fact mansoons have a dual effect on the industry on other hand there is

a little painting work during the mansoons.

 As, if its whole were not enough the slowing economy and reducing

government expenditure have hurt further Government off usually comprises

about 40% of demand recession in the automobile industry. Another large

consumer which has eaten into 30% of the paint sold that goes towards original

application is automobile and consumes durable, the another 70% is used in

repainting the railway have reduced off take by above 20%.

B. Suggestions for the problem faced by paint Industry :

At present, paint industry has a tough time struggling to keep themselves

a float amidst all the mounting problems like imbalance consumption, high cost

structure, heavy taxation, privitive technology, government negligence etc.

The Indian paint manufacturers association have been fighting constantly

to control these accumulation problems, however, if seems that solution to the

problem lies for away. However following are the some suggestion for making

paint market.

More effective profitable & to free from problem with which it has been

surrounded.

1. Correcting imbalance consumption or Balanced consumption :

 The imbalance in paint consumption should be corrected paint being a

luxury item as often through of it is being sold in big cities and big towns.

Through paint companies have started to reach out to villages. A vast

rural market is still not reached by Paint Company.

For correcting the paint market should also be indexed villages and rural

areas.

The paint companies must take initiative in covering smaller towns by

sending salesman and appointing dealers for that area, then only the problem of

imbalance consumption could be solved.

2. Cost Reduction :

Another major problems which needs solution is the raw materials cost,

the 50% of the raw materials are petroleum based which is intensive.

Through making several different items in balanced proportion the

availability of titanium dioxide the principal raw material needed for the final

product, it is very essential so it should be imported on large scale.

The department of scientific and industrial research estimates that the

country will require 1,91,910 tones of titanium dioxide by the year 2000 A.D.

the Production also exceeds 50,800 tones by the year 2000 A.D so it is

necessary to increase the domestic production of titanium dioxide to large

extent.
 It’s another fact that our country has about 12% of world total

illuminate deposits the major raw materials for titanium dioxide. So if will not

be a major problem to set up units for the manufacture of titanium dioxide, the

only thing needed in Government action.

3. Excise Relied :

The heavy excise burden bagged on paints should also be reduced

considerable, so that the industry can sell its products at reasonable prices.

The central excise duty element on the Industry is general and for paints

is particular should be brought down to an average of 10% against the current

30% to 20%

But a sudden reduction in excise duty will not hold good whatever is

needed is substantial reduction in excise duties. So the Government should

understand the real situation, as paint Industry and excise duty on paints and its

raw materials should be brought down to a considerable extent. So that the

Industry can carry out business without facing its colour.

4. Technology-up-Gradation :

The technology with respect to paint manufacturing should be improved

paint manufacture require high Technology especially for industrial paints, in

General practice that whenever any Industry is found technological gaps, it has
moved quickly to bridge those gaps by acquiring technology from abroad. So in

the case of paint Industry also the same must be introduced.

In paint Industry have entered with foreign collaboration due Government

liberal policy, so this helps the paint Industry from other collaborated countries.

5. Government attitude :

Government has remained cool to the problems faced by the paint

Industry; the Government has not given much interest and importance to this

decorative segment.

The Government should realize important of this industry it must take

steps to ensure that the Consumption of paint by it adequate in all times.

 CHAPTER - VIII

ANALYSIS OF SURVEY FINDINGS CONCLUSION AND

SUGGESTIONS
 ANALYSIS OF SURVEY FINDING, CONCLUSIONS AND

SUGGESTIONS

Introduction :

Shimoga is a district head quarter and important city in Karnataka.

Shimoga is one of the major cities in the area of “MALENADU” and having

rich natural wealth resources. Shimoga is grown in small quantities by utilizing

available natural resources. So if has a good marketing structure. Shimoga city

has good market for both consumer and Industrial product.

Survey analysis :

Due to time constant out of the total consumer of paints, 50 sample

respondents were selected and contacted for getting the desired information . all

respondents are residents of shimoge city.

a) Businessmen :

in the business groups Asian Paints stands first, Good lass Nerolac and

Berger paint is second and third position.

 According to a survey, 45% are users of Asian paint and remaining are

the users of Nejrolac, Berger, Shalimar and others.

According to businessmen 45% that it is costlier, but it quality is good

and it is durable and has long life.

b) Employees :

among the employed person in shimoga city, only 25% are the users of

Asian paints, wholly attractive on its colour Guarantee and advertisement and

25% are the users of Shalimar paints, Berger paints and Nerolac paints.

c) Agriculturist :

Among the Agriculturist group total number of respondents out of 50%

are used Asian paints and remaining 25% are users of Good lass Nerolac paint

and Shalimar paints. Among this group they use more Asian paints because due

to its popularity in rural areas.

d) Professionals :

Among the profession group that 37.5% are the users of Asian paints, and

25% are users of Good lass nerolac paints and remaining percentage will be

shared equally i.e. 12.5% by Berger paints, Shalimar paints and Jansen and

Nicholson.
CONCLUSIONS :

Paint is a very common and popular product and is used by all class of

people. If is fact that 75% of the populations are the users of paints and non

users of the paints.

Paint is purchased for many purposes they serve both decorative purpose

and protective purposes, further paints one purchased for new building as well

as for repainting is more when compare to uses of new buildings.

“Asian paints” which is very good and popularity in the market. If has

been seen that at the time of purchasing paint. Most of customers want the

facility of colour guarantee paint from the dealers.

The advertisement and words of mouth, window display, channel of

communication from relatives and friends are the major deal, which introduce

the users to a particular brand of paints. Advertisement in magazines, T.V., and

news papers is a main media of sales promotion is the case of paints.

There are the complaints from the consumer regarding the availability of

Asian paints. Consumers are demanding the Asian paints in shimoga. Asian

paint is a good market the supply of Asian paints is sufficient in shimoga. The

opinions of the people towards Asian paints is excellent from these conclusion

wed can say that Asian paint has a market in Shimoga city.

SUGGESTIONS :
 While conducting the survey many respondents have given their

suggestions for improvement of Asian paint some of the suggestion that may

help the company to improve the quality and sales of Asian paints are as

follows.

1. Today the cost of paints are 190 to 240 this is beyond the means of lower

and middle classes, in India, majority of the population i.e., 75% of the

population come under lower and middle in come groups. Therefore their

price must be reduced to a considerable extent. So that more people can

buy the paints.

2. Technology used in the manufacture of paint should be improved, so that

cost of production can be reduced for foreign collaboration can be made.

3. Panit market is very competitive and it is the survival of the fittest in the

competitive situation. So in order to survive in a difficult Environment it

can be suggested that the quality of Asian paints is to be improved to an

maximum extent and of course the prices must be reasonable.

4. the colour range of paints should be increased from existing numbers to

compete with other which possess wide variety of colours ranges, unless

colour ranges improved the consumer may turn this eyes towards other

brands.

5. the company must realize that many consumers cannot offer can do not

require conventional large paint packets. So it should introduce small

ready made packets of paints sale.

6. in these days Asian paints and Goodlass Nerolac paints are competing

each other. But Asian paint take No. 1 place and also Asian paint gives an

effective memorized channels of communication and also to supply each

place and agricultural area then definitely the Asian paints will have a

good market and remains its place constantly in paint industry.

Chapter 08

ANNEXURE

Bibliography and Questionnaire

Bibliography

 Marketing management

 Philip kotler

 P.N. Reddy

 H.R. Appannaiah

 Catalogues

 Company profile

 Web sites

 Www. Asian Paints.com

Consumer Questionnaire

Hello,

Dear respondent;
 I am Siddesha .M.S student of final year BBM Acharya tulasi national

college of commerce shimoga. I am doing consumer survey for knowing the

behavior of consumer towards “ASIAN PAINTS” I would be grateful if you

could spend some of your time in filling up this questionnaire, your response

will be kept strictly confidential.

1.Name:

2.Address:

3.education:

4.occupation:

5.Monthly income groups;

(a) Below 5000 (c) 15000 to 25000

(b) 5000 to 15000 (d) Above 25000 ( )

6.Do you use paints?

(a)Yes (b) No ( )

7.If yes, which brands?

(a) Asian paints (d) Jenson & Nicholason

(b) Shalimar paints (e) Berger paints

(c) Nerolac paints (f) other paints ( )

8.Reason for the selecting the brands;

 (a) Popularity of the brand

(b) Attractive colours

(c) Easy availability

(d) Reasonable rate

(e) Others ( )

9.Have, you heard of Asian paints?

(a) Yes (b) No ( )

10. If yes, from which source:

(a) Advertisement (c) Friends

(b) Dealers (d) Others ( )

11. Have you used Asian paints?

(a) yes (b) No ( )

12. If yes, are you satisfied with its quality?

(a) yes (b)No ( )

13. If no, why?

(a) Low quality (b) High price

(c) Fading colour (d) Others ( )

14. What do you expect while purchasing the paints?

(a) Price (d) Long life

(b) Attractive colour (e) Others

 (e) Easy availability ( )

15. what is your opinion about the price of Asian paints?

(a) Very low

(b) Reasonable

(c) Very high ( )

16. what do you think about the availability of colours in Asian paints?

(a) Less (b) More

(c) Sufficient (d) Expect more ( )

17. what is your opinion about the quality of Asian paints?

(a) Good (b) Low

(c) Better (d) Excellent ( )

18.Are you satisfied with the service offered by the dealer?

(a)Yes (b) No ( )

19.Is the paint are easily available in the market?

(a)Yes (b) No ( )

20.Do you have any suggestion about the improvement of the Asian paints?

Thanking you

Date:

Place:

Signature