asian paints

Marketing Strategies
Submitted by : Ankit Thatai Roll No. 6057

Submitted to : Raminder Mam

Paint Industry
Paint industry estimated at Rs. 135bn. Unorganized sector accounts to 35% of paint market. Volume growth estimated at 15%. Indias share in the world paint market is 0.6%. Per capita consumption of paint in India is

1.2kg/annum.

Introduction to Asian Paints

Started in 1942 by four entrepreneurs:

Champaklal choksey, Chimanlal choksey, Suryakant Dani and Arvind Vakil as ASIAN OIL & PAINTS COMPANY.
Within three years, their turnover reached 3.5 lacs. In 1967, Asian paints became the 10th largest paint

company in the world.

Vision

Asian Paints aims to become one of the top 5 Decorative Coatings companies worldwide 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.

MISSION

TO BE THE LARGEST DECORATIVE PAINT CO. WORLDWIDE AND TO BE THE 5TH LARGEST PAINT MANUFACTURING CO. WORLDWIDE.

Asian Paints- Today

Company Profile

Product Profile
INTERIOR PAINTS.

EXTERIOR PAINTS.
WOOD FURNISHES.

WOOD & METAL FURNISHES.

Competitors
Market Share in India

International Operations
Caribbean Islands

Middle East

Barbados, Jamaica, Trinidad & Tobago.

Bahrain, Egypt, Oman & United Arab Emirates.

South Pacific

South East Asia

Fiji, Tonga, Vanuatu, Solomon & Samoa Islands.

South Asia Bangladesh, Nepal & Sri Lanka.

China, Malaysia, Singapore & Thailand.

Mergers & Acquisitions

Buys Taubmans Paints (Fiji) In September 2003.

Acquires ICI Indias Unit (February 2007).

Sells stake in Australian Unit (June 2007).

Growth Cycle of the company

a)1942-1967 Evolution Phase

b)1967-1982 Extension and Consolidation Phase c)1982-1986 The years of Excellence d)1987-1997 e)1997-1999 f)1999- 2011 Moving Closer to the Consumer Changing rules of the game The new Asian Paints

Marketing, Sales & Distribution

Rural Marketing Initiatives since 1960. Distribution is one of the main strategy of Asian Paints. Advertising & Promotional Expenditure started in 1980s. Advertising Methods- Radio, TVCs, Print, Internet,

OOH, POP, Retail Outlets, Seminars, Workshops.

Marketing Strategy
Company is using different techniques such as advertising

Campaign, sales promotion, personal selling, direct marketing and public relation to increase sales A total amount of 85 crore is spent on the ad campaign by Asian paint. Their particular ad campaign Mera Walla Blue Har ghar kuch kehta hai are being liked by the customer. online marketing for urban customer: Asian paint online marketing system is helping. The company in lot of ways, providing all the necessary information to the customer. It is an unique way of marketing.

Advertisements
Promotional Expenditure grew from 15% in 2003 to 21% in 2008.

CORPORATE SOCIAL RESPONSIBILITY

Water Conservation-

Total Water Management Center.

Age Care.

Education.
Other Initiatives.

SWOT ANALYSIS

STRENGTH
Market leader with 55% market share. Strong in inventory control. The pricing strategy is oriented to middle and lower-end

consumers. Widest product range in terms of products, shades, pack sizes. Comprehensive nation wide coverage of the market. Brand name with 68 year experience

WEAKNESS
Seasonal demand and hence in off seasons it can

lead to cash flow problems. Innovation in developing new product is inadequate. Weakness on the technology front in industrial paints. In industrial paints, AP has only a 15% market share

OPPORTUNITIES
Acquiring/ increasing market share in Industrial

paint sector. Competitors have gone in for hi-technology compare to Asian Paints. The automobile industry accounted for 50% of the industrial markets.

THREATS
Domination of few foreign companies. Competition is catching up fast, hi-tech facilities

gives abundant choices.

Future of the Company

Asian Paints is planning to increase the capacity by setting up a plant at Rohtak, Haryana. No other company is planning to increase its capacity in the near future, this will give Asian Paints a competitive advantage in terms of pricing. GDP growth slowdown in the growth rate of two important activities i.e. repaint activity and construction activity will have direct impact on the volume of APL, thus effecting its profitability and margins. Rural markets have considerable potential. Companies that can establish a dealer network in these markets are likely to get the edge in positing above par growth rates over the next few years.

As setting up distribution infrastructure is expensive, it would mean that the competition is limited to the top players.
Due to substantial hike in raw material prices, Asian Paints has raised the prices of solvent based paints, thus demand would be affected to some extent.

THANK YOU