asian paints 4p's
TRANSCRIPT
An
Assignment of
Advanced Marketing Management
On
Asian Paints India Ltd.
Submitted by
Sandeep Mishra, Roll no 161
(T.Y.B.B.A)
As requirement of fulfillment of assignment
of 6th semester
Submitted to
Prof. Baxis Patel
Navnirman Institute of management
Surat.
Asian Paints (India) Limited
Introduction
Asian Paints is India's largest paint company and Asia's third largest paint company,
with a turnover of Rs 54.63 billion. The group has an enviable reputation in the corporate
world for professionalism, fast track growth, and building shareholder equity. Asian Paints
operates in 20 countries and has 28 paint manufacturing facilities in the world servicing
consumers in over 65 countries. Besides Asian Paints, the group operates around the world
through its subsidiaries Berger International Limited, Apco Coatings, SCIB Paints and
Taubmans.
Aim / Vision / Mission
“ 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 alliances with established global partners.”
Paint industry Paint industry estimated at Rs. 135bn. Unorganized sector accounts to 35% of paint market.
Volume growth estimated at 15%. India’s share in the world paint market is 0.6%. Per
capita consumption of paint in India is 1.2kg/annum. Paint industry
History
• 1st February, 1942
Champaklal H. Choksi, Chimanlal N. Choksi, Suryakant C. Dani and Arvind R. Vakil get
together to manufacture paint in a garage on Foras Road, Bombay. They name their
company 'The Asian Oil & Paint Company.
• 1945
Asian Paints touches a turnover of Rs. 3,50,000, with an innovative marketing strategy "to
reach consumers in the outmost corners of the country with small packs."
1954
Paints mascot, Gattu, the mischievous kid, was born. Asian
1957 - 66
The family-owned company makes the shift to a professionally managed organization.
Asian Paints embark on an ambitious mass marketing campaign, pertaining with
thousands of dealers in small towns all over India.
1967 -Asian Paints emerges as India's leading paint company ahead of any international
competition.
1973 -AP becomes public ltd company
2002- AP was a market leader of Indian Decorative Paints with market share of 4
Asian paints today
• Asian Paints becomes the 10th largest decorative paint company in the world
• Asian Paints is more than twice the size of its nearest competitor.
• It is one of the most admired companies in India
manufacturing locations.
• Asian Paints aims to become the 5th largest decorative paint company in the world.
Founders of company
NS (Subba) lyre General manager
Sudipto Mandal Senior HR Manager
Salil Chinghore Works Man
Jagannt.B. Production Manager
Nilay Verma Marketing Manager
Abjit Bhattacharya Training Manager
Asian Paints becomes the 10th largest decorative paint company in the world
Asian Paints is more than twice the size of its nearest competitor.
It is one of the most admired companies in India - Present in 22 countries with 27
manufacturing locations.
Asian Paints aims to become the 5th largest decorative paint company in the world.
Founders of company
NS (Subba) lyre General manager
Sudipto Mandal Senior HR Manager
Salil Chinghore Works Manager
Jagannt.B. Production Manager
Nilay Verma Marketing Manager
Abjit Bhattacharya Training Manager
Asian Paints becomes the 10th largest decorative paint company in the world
Present in 22 countries with 27
Asian Paints aims to become the 5th largest decorative paint company in the world.
Marketing strategy (4 P’s)
Products
Asian Paints Apex
Apex Weatherproof Exterior Emulsion is a water-based 100% acrylic, exterior
wall finish. A high performance, long-lasting exterior paint specially formulated to
withstand extreme tropical conditions of high rainfall, humidity and heat, Apex provides
excellent resistance against the growth of algae and fungi on the walls. It offers excellent
protection against alkali and UV degradation too.
Asian Paints Apex Ultima
Asian paints apex ultima advanced anti algal weather proof emulsion is a water-
based,modified acrylic, anti algal, high performance exterior wall finish. It incorporates the
latest state-of-the-art technology to provide long-lasting exterior performance even in the
most extreme tropical conditions of india. Its unique advanced anti algal chemistry ensures
that exterior walls are provided with power-packed resistance aganist algae and fungi
growth. Its has very good dirt pick up resistance and dirt cleaning properties
Asian Paints Dura cast Fine Tex
Asian paints duracast fine tex is a 100% acrylicd water based exterior product
specially designed as an intermediate coating. It facilitates excellent adhesion of
subsequent coats . Its unique texture pattern has distinctive appeal. 1. Asian paint duracast
fine tex is a rollable product which will provide opacity in single coat without any sagging
2. It serves as an undercoat which will not only provide protection but also decor for a
variety of exterior & interior surfaces 3. It promotes adhesion of subsequent coats 3. It
hides surface undulation & fine cracks
Asian Paints Tractor Acrylic Distemper
Tractor acrylic distemper is water-based, interior wall paint and gives walls a
delightful, attractive, matt finish that lasts for ages. A time-tested formulation with acrylic
copolymer binder, its special formulation ensures shade retention for a long time and its
fast drying property facilitates quicker completion of painting jobs.
Asian Paints Utsav Acrylic Distemper
Utsav acrylic distemper is a water-based, interior wall paint. It is a value-for-
money brand that makes it possible for consumers to have beautiful walls at affordable
rates. Being an acrylic finish, it offers a smooth and matt finish. The shades retain their
brightness for a longer time. White can be tinted with apcolite universal stainer to obtain
customized shades. cost range: economy finish: matt availability: across all colour world
dealers.
Asian Paints Deco prime Wall Primer St
Asian paints deco-prime wall primer (st) is suitable for use as primer for
masonry topcoats like distempers, emulsions, luster & matt wall finishes. It helps in
providing a suitable surface for application of subsequent coats of putty & finish paint. It
seta fast, has good sealing properties, good resistance to wall alkalinity, moisture & fungus.
Asian Paints Duracast Swirltex
Cost range: premium finish: rich sheen availability: across all colour world
dealers.
Asian Paints Exterior Wall Primer
Asian paints exterior primer is water-based wall coating suitable for application
on exteriors as an undercoat to exterior emulsions. It has a good opacity & whiteness,
which helps improve the appearance of the emulsion top coat. Exterior wall primers
doesnot chalk & can be applied on freshly plastered surfaces that are adequately cured. It
doesnot require any water curing.
Place
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.
Sales in both areas urban as well as rural. Following are countries are in which
company sales its product is as follows.
1) Canada
2) USA
3) India
4) China
5) Malaysia
6) Singapore
7) Europe
8) Australia
9) UAE
10) UK
11) Japan
12) Nepal
Promotion
Distribution is one of the main strategies of Asian Paints.
Advertising Methods- Radio, TVCs, Print, Internet, OOH, POP, Retail Outlets, Seminars,
Workshops.
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.
Distribution (for all products)
Elements of Asian Paints Distribution Strategy:
* AP bypassed the bulk buyer segment and want to indi0vidual consumers of paints.
* AP went slow on urban areas and concentrated on semi-urban and rural areas.
* AP went retail
* AP went in for an open-door dealer policy.
* AP voted for nationwide marketing/distribution.
Though this segment was dominated totally by foreign companies and their wholesale
distributors, a new entrant to the business like AP would normally have rushed to this
segment and tried to garner a share of it. AP, however, had a totally different game plan
seeing that this segment was not a growth segment, though it was certainly the major
segment at the point of time. AP, decided to ignore this segment for the present and go to
individual consumers. And that was a crucial decision. It influenced every subsequent
decision AP took in the realm of distribution. Over time, AP proved to the paint industry
that there existed a large and bottomless segment in the paint business of India, outside the
bulk buyer segment, comprising of individual consumers.
AP’s distribution strategy had its associated implications. AP had to take due of them and
face them squarely.
Going to Individual Consumers Implied Wide Product Range and Complex
Distribution
Had AP concentrated on the bulk buyer segment, it could have managed with a limited
product range, at least, in the initial years. But, AP’s decision to turn to the individual
consumers necessarily meant a wide product range. In the nature of things, the individual
consumer segment involves a very wide choice in terms of products, materials, shades and
pack sizes. On top of this, AP believed in making products based on the preferences of
consumers. It gathered feedback from the consumers and turned out products, shades and
pack sizes on the basis of such feedback. This policy resulted in a further burgeoning o the
product range.
Smaller Packs proliferated the product depth further:
At the time of AP’s entry, paint companies were supplying paints in containers of 500 ml or
larger. AP saw that there was a felt need in the market for paints in smaller packs. All end
uses did not require a large quantity. Moreover, it was common practice for consumers to
buy paint initially in a larger quantity and supplement and shared supplying its pacts in
small packs – in 200ml, 100ml and 50ml packs. This proliferation in pack sizes also
contributed to AP’s growing product range. AP was by now manufacturing and marketing
as many as 2,000 distinct items of paints none of which was strictly a substitute for the
other.
Wide Product range Implied Expensive distribution:
The policy o having the widest range of products colors and pack sizes had its implications
on AP’s distribution. When 2,000 different items had to be made available to the
consumers, it automatically meant that the company had to be prepared for high inventory
holding in its various depots/retail outlets. Accounting and sales arrangements had also to
be provided for on a matching level. Naturally, distribution was becoming more complex
and expensive for AP.
The decision to go to the semi-urban and rural markets instead of confining to the urban
markets also meant enlargement of the distribution function. AP had to go in for more
dealers in order to serve the scattered semi urban and rural market. The decision also meant
that AP could not opt for a simple, centralized distribution of its products from its factory.
It had to go for a decentralized, field focused distribution, which a network located all over
the country/marketing territory. Without such extensive and intensive distribution network,
it would to have been possible for AP to cover the semi urban and rural markets.
Going retail Implied Deep Involvement in Channel Management:
Through its decision to go retail, AP was getting deeply involved in physical distribution
and channel management. In the system chosen by AP, the physical cum channel
management task was far more demanding compared to the wholesaler oriented system
practiced by the other paint companies. While, for companies that embraced the wholesale
oriented system, it was enough to service a handful of distributors. AP had to service a
network of thousands of retail dealers. Having taken the decision to go retail, AP
necessarily had to create and service a vast dealer network It also had to crate the physical
distribution facilities required for servicing such a large network.
National Marketing necessitated nationwide organization:
Extent of marketing territory and complexity of distribution organizations are interrelated.
The moment AP voted for nationwide it was getting into intensive as well as extensive
physical distribution and channel management AP thus had to create a nationwide
distribution cum marketing organization.
Main steps in the Implementation Process
1. AP crated a large network of dealers
2. It established a network of company depots to service the dealers.
3. It created a marketing organization that matched its distribution.
4. It successfully resolved the cost service conflict in distribution.
(a) A strong commitment to distribution cost control without compromising service level.
(b) Effective inventory management.
(c) Erective control of credit out standings
(d) IT initiatives in distribution cost control.
Target market
Asian Paints Apex(Exterior)
Segments – Houses & buildings builders,
Middle-Class families,
Industries,
Rural & Urban areas,
Paint contractors
& all exterior paints need.
Asian Paints Apex Ultima(Exterior)
Segments - Houses & Bungalows builders,
Rich class families, &
Urban areas.
Asian Paints Dura cast Fine Tex(Exterior Coatings)
Segments – Automobile industries,
Furnishing wooden coating Industries &
Iron & mining industries.
Asian Paints Tractor Acrylic Distemper(Interior)
Segments – Houses & buildings builders,
Middle-Class families,
Industries,
Rural & Urban areas,
Paint contractors &
All interior paint needs.
Asian Paints Utsav Acrylic Distemper(Interior)
Segments - Houses, buildings & Bungalow Builders,
Rural & Urban Area,
All classes ( middle & rich)
Paint contractors &
All type of paint needs.
Asian Paints Deco prime Wall Primer St (Interior)
Segments – Hotels & bungalows,
Urban Area &
Paint contractors.
Asian Paints Exterior Wall Primer (Exterior)
Segments - Hotels & bungalows,
Urban Area &
Paint contractors.
Differentiation strategies
Product differentiation
Exterior walls
Asian Paints offers a range of emulsion paints for your exterior walls. You can choose
from ACE, Apex, Apex Ultima, Apex Duracast and more, based on the specific demand of
surface area.
Interior walls
Distempers offer strong performance to the interior wall surface in terms of protection and
adhesion. Tractor Acrylic Distemper, with better durability, is one of the best performing
distemper made by Asian Paints.
EmulsionsInterior emulsions are advanced water based paints with better quality and shade range.
Adhesion to wall surface, anti fungal properties and durability is more in emulsions.
Check out products range for more information.
.TextureRoyale Play textures brings design and visual appeal to otherwise plain walls and gives
them dimension, gives them life. In its new Avatar, the Royale Play range is far richer
and has something on offer, for every dream wall
METAL SURFACESSuitable for metal surfaces, this enamel product brings a suitable effect. With different
surface preparation and undercoat system, read the directions for usage carefully
before application.
WOOD SURFACESClear Finish
Clear Finishes act as protective coatings providing a high degree of resistance from
water, dirt, grime, chemicals and abrasion, along with enhancing the natural beauty of
the wood.
Opaque Finish
Wood Palette, the range of opaque wood finishes from Asian Paints brings you a high
gloss, tough scratch proof coloured wood finish that brings new style and
sophistication that’s beautiful and stays that way under heavy usage.
These are essentially enamel paints suitable for wood surfaces. With different surface
preparation and undercoat system, read the directions for usage carefully before
application.
Marketing differentiation
Asian Paints Home Solutions
• Launched in six main cities
• 6780 sites painted by APHS in FY’05 till Oct’ 08
• Response has been good and consistent across cities
• Close linkages with applicators is helping to enhance the
Knowledge base on paint application practices
Direct marketing by Project Sales aiding growth in exterior segment
Brand Rejuvenation
New look for the Asian Paints brand & packaging:
– Transition to a corporate centric Brand Portfolio, to make Asian
Paints among the more salient brands
– To contemporize the brand Asian Paints & the packaging
New advertising campaign:
– Increased interest in home décor - a definitive social trend
– More involved urban home makers; smaller towns also
Catching up
– “Homes are high involvement but painting is not”
– Homes involves a lot of emotions
– Have been successful in appropriating the emotions relating to
Creation of home décor
Rural marketing strategies of Asian paints.
• Rural segment not mature enough to appreciate service related offerings
• Strategy should be product related.
• Customer up gradation strategy should be adopted. It should be Implemented in two
parts.
1. The penetration of the rural segment has to be achieved by offering a basic product well
tailored to match the low willingness to pay of the rural consumer.
2. After basic penetration levels have been achieved the rural consumer can be offered a
“higher” range of products with a view to up grading the consumers.
Product strategy
The first decision to be made in product strategy in the rural context is whether the product
that is sold in the urban market can be supplied to the rural market as it is, or whether it
must be adapted. It depends on the situation and the nature of the product. In many cases
some adaptation will be advantageous. Basically the firm must find out what kind of product
is actually required by the rural consumers and then decide if it make an altogether distinct
product or adapt the existing product.
Economic and income realities of the market should certainly be considered while
developing the product strategy for the rural market. In addition, socio-cultural realities
should also be considered. When products are designed reflecting both these influences the
chance of success is greater.
Lower priced product versions do help in many cases in the realization can be made in this
regard. Many companies try to reduce the prices of their products for the rural market by
creating smaller size or by decreasing the equality the approach works sometimes and with
some products all times with all products.
Specifically designed Products:
Specifically designed products do help in many cases:
The tractor/trailer: The tractor/trailer is an apt example.
It is product specifically designed for the rural market. It is designed as a replacement for
the plough as well as vehicle for transporting both men and material in the rural areas.
Color variants:
The rural consumers differ from their urban cousins in color preference. In the case of some
products, color may matter very much. Firms can exploit this fact to their advantage. For
example in the paint business, Asian paints understood the substantial difference between
the urban and rural buyer in color preference. AP introduced paints with bright colors for the
rural markets. AP also communicated the features well through its communication
campaigns.
Different products/Models, Different Brands Packing, Pricing and different
positioning:
By and large the rural market can be tapped better through different products/models,
different brands, different packaging and different positioning.
Package Design and Pack Size:
In some cases, the product can be the same, but the package and pack size may have to be
different of the rural target group. Package design and color help identification based by
rural buyers. Many rural consumers are not quite conversant with the various brands. All the
same, they manage to pick the brands that they want. They recognize the brand by its
packaging. This is the reason why a number of local brands in rural areas imitate the
packing of big national brands.
Product life cycle
The title of the project is “Data Analysis & Management of Demand Generation and
Competitor Market Potential “.
Demands are wants for specific products that are backed by the ability and willingness to
buy them. Demand for a product can be either by the end user or its intermediaries. In the
paint market the network is as follows:
This simple network of Asian Paints shows that there can be either a pull or a push
strategy. If the company adopts a push strategy it will not be successful in the long run if
there is no end demand, i.e. by the end customers.
A pull is created when demand is created in the market and is the most beneficial. To
implement such a strategy we have to first assess the needs of the market, judging the
perception of customers and contractors and finding out new locations and convert them
into new dealers so that there is more availability of the product in the market.
Opportunity analysis can be done by analyzing
the construction sites to generate demand for the product by making the concerned aware
of the benefits and wide range of products available for all possible segments.
Assessing competitor market and developing a strategy to kill or overcome competition is
the second part of the report. The way to increase market share is by making sure that
your product is available whenever and wherever needed. Opening new dealers in the
market will take care of this. Expanding the dealer network helps in market penetration.
All the effort will be a waste if there is no demand from the end consumer of goods. The
end customer is influenced by painters, contractors, advertisements, friends and family.
So the main demand is generated by the end customer. The perception of the end
customer is judged in the third part of the report. This shows the acceptance level of
Asian Paints in the market.
The report finally gives recommendations to the company for future so as to improve its
operations in the region as well...
Life cycle stage of products
Asian Paints Apex - Maturity stage
Asian Paints Apex Ultima - Maturity stage
Asian Paints Royal emulsion - Growth stage
Asian Paints Tractor Acrylic Distemper - Growth stage
Asian Paints Tractor Acrylic Distemper - Maturity stage
(Utsav)
Growth Strategy of Asian paints
The story of the evolution of Asian Paints as a brand is interesting. The brand now has an
iconic status in the industry thanks to some blockbuster big ideas from O&M. The brand once
positioned as a mass market brand has evolved itself to a higher plane.
Indian paint industry can be broadly divided into two segments
a).Decorative segment which constitutes the wall paints : exterior and interior, wood paints etc
b).Industrial segment which consists of automotive paints, and paints for industrial sector.
Decorative segment constitutes around 75 % of the total paint industry and Asian Paints is the
market leader with around 44% share. In the Industrial segment, Nerolac is the market leader.
In the decorative segment, it is interesting to see how Asian Paints have changed the buying
process of the product like paints. Paints are usually considered to be a low involvement
product. In earlier times, the decision of the brand was taken by the builder/contractor and the
home owners do not involve much in the process may be the decision of color rest with the
house owners.
Asian Paints realized the need for brand building even during sixties. But at that point of time,
the company had a wide range of brands/sub brands. The focus of the company was on product
innovation and service network and managing quality proposition. The brand focused on mass
and rural market. Asian Paints had a mascot called Gattu who was created by the celebrated
cartoonist R K Laskhman.These efforts made the brand a leader during the late sixties.
Then the company realized that although volume justified the leadership position, share of
mind for the brand was very low. That was the result of the mass segmentation adopted by the
brand. Rightly so because the industry was driven by channel driven promotions, building a
brand at that time was" uncommon sense". During 1983, the company tried to reposition the
brand as a premium brand. Asian Paints initiated the corporate campaign aimed to position the
company as the number one player in the industry.The objective was to upgrade to a more
margin premium product marketer .The corporate campaign " Spectrum of Excellence" was
aimed to increase the Salience of the brand in a quiet market.
But this campaign failed to inspire any interest in the consumers and the company felt that the
market is moving towards a commodity market where price is the most important differential.
Asian Paints undertook a consumer research aimed at understanding the perception of
consumers about the product category. The research revealed lot of interesting insights.
Consumers felt that paints could change the mood of the space and it was a sign of festival and
plenitude.It could make a gloomy place bright and pleasant. From this insight came the
campaign of Asian Paints associating itself with festivals. Research also confirmed that
customers tend to repaint their houses on the occasion of festivities. Thus born the campaign
"Celebrate with Asian Paints". The campaigns were carefully crafted and there were different
campaign for different regions. These campaigns effectively enhanced the brand equity of
Asian Paints and established itelf as a premium brand. More than that , these campaign ensured
an emotional connect with a brand in a low involvement category.The brand also phased out
many subbrands and rest of the subbrands was brought under Asian Paint's umbrella brand.
During the late nineties the brand had to be reinvented. Because no longer festivities formed an
important part in ones life. Since many brands went after festival seasons,the positioning
platform has become cluttered.More over the consumer buying behavior has changed. The
category was becoming less seasonal. People started associating more importance to home
decor and interiors. The choice of color became a high involvement decision. From a low
involvement category, paint was increasingly becoming a high involvement category.
The brand also went in a brand overhaul. The logo was changed to a contemporary upmarket
one designed by Entreprise IG based in Singapore.The logo/design was to convey self
expression, sophistication and Technology.Thus came the birth of a wonderful positioning
strategy created by O&M. The insight was that the brand is about people and homes and homes
reflect the people living in it. Hence " Har Ghar Kuch Kehta Hai" translated to " Every Home
has a story to tell". This campaign is a perfect example of a brand laddering up and connecting
to a higher level in the mind of the customer. The campaigns reinforced the brand as a premium
emotional brand.
Bibliography
Links
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http://www.indianjournalofmarketing.com/April2009.pdf