SMP - 09

The Marketing Strategy

of

Contents
Asian Paints Mission & Vision Industry Trends Historical Information & Current Performance

Competitive Positioning (SWOT)

Marketing Strategies, Channels & Promotions Marketing Strategy & Promotion Excellence

Asian Paints Vision & Mission

Vision
See Indian homes painted in variety of colors from a truly Indian company
Asian paints wants to become one of the top 5 decorative coating companies world wide by leveraging expertise in the higher growth in emerging markets. Simultaneously, the company intends to build long term value in the industrial coating business through alliances with established global partners.

Mission To provide paints as per market demand, ensuring desired level & quality of customers (dealer service)

Contents
Asian Paints Mission & Vision Industry Trends Historical Information & Current Performance

Competitive Positioning (SWOT)

Marketing Strategies, Channels & Promotions Marketing Strategy & Promotion Excellence

Paint Industry Trends at a Glance

Indian Paint Industry

Decorative Segment 70%

Industrial Segment 30%

Premium Range (high end acrylic emulsion)

Medium Range (enamel paints)

Distemper Range (Low end paints)

Consumer durables Automotive Sector (marine paints & other OEMs)

Metros & Large Cities

Small Cities

Sub Urban & Rural Area

Contents
Asian Paints Mission & Vision Industry Trends Historical Information & Current Performance

Competitive Positioning (SWOT)

Marketing Strategies, Channels & Promotions Marketing Strategy & Promotion Excellence

Asian Paints Current Position

Indias Largest & worlds 10th largest Paint Company

Asias 3rd largest company with a turn over of over Rs. 96.32 bn Market share of about 45% of total paint industry
Operates in 17 countries with 24 mfg facilities Servicing consumers in over 65 countries

Ranked Best under a Billion companies in Asia in 2005, 2006 and 2007 by Forbes 87th valuable brand in India

Manufacturing Capacity and Volumes

Market Share of Major Players in India

9%

20% 53% 18%

Asian Paints Kansai Nerolac

Berger Others

International Presence

Global Operations
Regions
1

No. of Plants 12

1
3

5
3

Served International Markets

Distribution Channel
800 Raw Material Suppliers

350 Packing Material Vendors

2 Chemical Plants, 21 Manufacturing Centers, Operating in 17 countries, 6 Subsidiaries

4500 Employees, Servicing Consumers in 65 Countries

6 Divisions
90 Depots, 2500 SKUs, 27000 Retailers, 95000 Sub Retailers

Contents
Asian Paints Mission & Vision Industry Trends Historical Information & Current Performance

Competitive Positioning (SWOT)

Marketing Strategies, Channels & Promotions Marketing Strategy & Promotion Excellence

SWOT Analysis
Strength
Market Leader @32% Capacity Expansion Plans Pricing Power Manufactures PAN India Wide Distribution Network

Weakness
Industrial Business Performing Below Par

Hiccups in International Business ( struggling in Egypt & Bahrain)

International Presence restricted to small pockets

SWOT

Opportunity
Growing Automobile Market
Increasing use of Industrial Paints

Threats
Domination of Few Foreign Players High-tech Instant Spot Fixing Color Automated Paint Blending in Retail Points

due to growing economy

Contents
Asian Paints Mission & Vision Industry Trends Historical Information & Current Performance

Competitive Positioning (SWOT)

Marketing Strategy & Functional Excellence Marketing Strategy & Promotion Excellence

BCG Matrix
Star
Metal/Industrial Paints

Cash Cow
Wall paints (Interior & Exterior Paints) Decorative Paints

Wood Finishes (varnish & polish)

BCG Matrix

Question Mark
APIL Product launched in abroad through JV Fiji, Nepal, Solomon Island & Australia

Dogs
Marine Paints
Automotive Paints & other Black Board paints

Marketing Mix
Price
Royal for Premium Segment Apcolite for Middle Segment Tractor & Utsav for lower Segment

Product/Quality
Wall Paints Metal Paints Wood Finishes Backward Integration Pyridine Latex for Rubber Tyres

4Ps of Asian Paints

Price/Distribution
23 plants

Promotion/Advertisement
Warranty Scheme 50 ML Packs

90 Depots
2500 SKUs 28000 Retailers

Gattu
Saif Ali Khan for Premium Class

Badiya Hai Campaign (middle Class Households)

Strategies
Reach to Remotest Corner Focus on Smaller Towns Gattu Small Packs Meeting Everybodys need Close Relationship with Dealers Business Partnership 1990 Target by lowering prices (consumers are brand conscious and involved) Change of Logo Fresh & Rejuvenated Look O&M Strategy Every Home has a story Vertical Integration 1998 Shade Card, One Stop Color Machine, Exclusive showroom in Mumbai 2004 Positioned as Umbrella Brand 2007 Tie Up with IIT Horizontal Integration for rubber tyre Early 200 Direct Link with Customers Covers all segments Discount to attract retailers, Professional Painting Service Ads create social, psychological and emotional connect with customers

Margins Strategy

Growth Strategy

International Market Strategy

To enter the high growth emerging markets Adopt a regional hub approach to international operations Apply the emerging market business model : - Introduce new products suited to local needs - Introduce new technology, accordingly - Focus to improve all areas of Operations, especially supply chain

Elements of Supply Chain

Dealer Network & Reach

Environment and Safety

Reuse Recycle Eliminate Waste

Information Technology

& Customer Relation Management (CRM)

Leveraging IT Investments

Research & Development

Innovation/Differentiation Strategies

Innovation Strategies

Contents
Asian Paints Mission & Vision Industry Trends Historical Information & Current Performance

Competitive Positioning (SWOT)

Marketing Strategy & Functional Excellence

Marketing Strategy & Promotion Excellence

Promotions Online selection

Color Guides

Continuous visibility TV

Commercials

Endorsement through Celebrities

Interactive Engagement Website

platforms

Caring for
All Ages

Color Dezigner

Self Designing A Sense of Achievement

Guiding customers - Interior

Design Ideas

Glam Decor

Cool Decor

Vibrant Decor Neutral Decor