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Submitted by :

Kratika Pandey Apeksha Shani

Segments

Paints

Chemicals

Decorative Paints

Industrial Paints Phthalic Anhydride

Interior Wall Finish Exterior Wall Finish Enamels Wood Finishes

Industrial Paints Powder Coating Other Industrial paints

Penraerythritol

Company Profile Product Profile


INTERIOR PAINTS.

EXTERIOR PAINTS.
WOOD FURNISHES.

WOOD & METAL FURNISHES.

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.

Asian Paints story at glance


1942 Champaklal K choksi, chimanlal H choksi, Suryakant C Dani, Arvind R Vakil formed a partnership firm Asian Paints ( picked from telephone directory) in garage. AP became private limited company Asian Oil & Paint Co. Pvt Ltd. Turnover of Rs. 350,000. Innovative marketing strategy going where the customer is Created Gattu Indias most visible advertising symbol, created brand identity for AP 1945 Mid 1940s

1940s1950s
1973 1987

AP started small packs to suit exact customer needs (popular 50 ml packs)


Asian Paints Ltd public company Backward Integration to lower production cost, joint venture with Pentasia Chemicals Ltd to manufacture 2 major raw materials

contd..
1997 1998 50:50 joint venture with Pittsburg Pint & Glass Industries Ltd.(PPG) Restructured itself to improve efficiency, sharpen business focus, control costs, strengthen lead position Three SBUs of AP: a. Decorative India b. Decorative International c. Industrial & Chemical Late 1990s 2000 Nov 2001 2002 2002 Positioned as brand with largest range of colors 127 shades of green, 206 shades of blue, 118 shades of yellow and many other colors APs 1st Indian Acquisition powder coatings business of Hawkoplast Chemicals Ltd Golden Peacock Award for Patancheru plant Demarket Gattu and highlighting AP brand adopted new logo,

Vision
To become one of the top 5 Decorative Coatings companies worldwide by leveraging its expertise in the higher growth emerging markets

MISSION

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

Asian Paints- Today

Competitors
Paint Manufacturing Companies
Market Share in India

Asian Paints Goodlass Nerolac

Berger Paints
ICI Jenson & Nicholson Shalimar

Others

Mergers & Acquisitions

Buys Taubmans Paints (Fiji) In September 2003.

Acquires ICI Indias Unit (February 2007).

Sells stake in Australian Unit (June 2007).

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

INNOVATIVE MARKETING: COLOR WORLD

1998: AP launched One stop Color shops concept COLOR WORLD Offered various services to customers
4000 such shops were opened Involved an expense of Rs 30 Cr (upgrading cost)

Result of APs COLOR WORLD offerings


Over half of the APs sales came from this chain 1999: AP planned to refurbish 500 outlets in the same manner across the country AP decided to extend newly developed shades in its weak markets (Delhi & Calcutta)

Human Resources
Majority of employees are hired from premium management institutes.

Recreational facilities are provided to the employees.

Human Resources

Human Resources
Performance Appraisal:
360 Degree Appraisal. Development Centre.

Other Initiatives:
Taking care of the Employees.

CORPORATE SOCIAL RESPONSIBILITY


Water Conservation-Total Water Management Center. Age Care. Education. Other Initiatives.

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.

Two more marketing initiatives


HELPLINE HOME SOLUTIONS

SWOT Analysis
Strengths Market leader with 39%market share. Widest product range in terms of products, shapes, pack sizes. It catered to all the segments of customers. Weakness Seasonal demand of the product Declining industrial paint segment market share

Opportunities Overseas market Automobile industry Threat Demand for decorative paints was highly price sensitive Unorganized/local players

Recommendations

RECOMMENDATIONS
Increase market share in the industrial paint segment Advertisement should be done for wood finish and metallic paints also Explore and grab the potential in overseas market Advertisement of waterproof paints 2 months before monsoon season Advertisement can be done during non-festive season

Eco friendly paints should be promoted as growing concern for the environment is prevalent Collaboration with leading construction companies They can also come up with a jingle, as it has high retention power