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Welcome To The Presentation Global Expansion Strategy of

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Page 1: Asian paints

Welcome To The

PresentationGlobal Expansion Strategy

of

Page 2: Asian paints

Group Members

• Md. Mehedi Hasan• Kazi Nurul Islam Sohel• Ayesha Siddika• Razib Chandra Pal

Page 3: Asian paints

Asia’s 3rd largest paint company.

38% market share in India.

Currently is in the 13th position.

With a turnover of Rs 77.06 billion in 2011.

Operates in 17 countries.

It has 24 paint manufacturing facilities.

Servicing in over 65 countries.

Trying to make position among the top 10 players.

Overview

Page 4: Asian paints

Asian Paints in South Asia (India, Bangladesh, Nepal and Sri Lanka)

SCIB Paints in EgyptBerger in South East Asia,

Middle East, Caribbean Apco Coatings in South

Pacific (Fiji, Tonga, Solomon Islands and Vanuatu)

Taubmans in South Pacific (Fiji and Samoa)

Global Presence

Page 5: Asian paints

It started the journey on Foras Road, Bombay in

1942.

The name was picked randomly from a telephone

directory.

After 25 years it became India's leading paints

company in 1968.

Journey of a long way over 69 years.

History of Asian Paints

Page 6: Asian paints

The Indian Paint industry is estimated at 170 billion.

Organized and unorganized players at ratio of 70:30.

Highest growth during the festival seasons.

It expected to capture 59% of the Indian Paint

industry by 2015.

Market Size

Page 7: Asian paints

Market Share of Asian Paints(India)

Page 8: Asian paints

Region wise Asian Paints Sales Contribution

Page 9: Asian paints

Competition Analysis

Company Industrial Market Decorative Market

APIL 15% 38%

KNPL 42.50% 10%

Berger Paints 14.20% 11.20%

ICI 7.80% 7.80%

Jenson & Nicholson 8.10% 5.50%

Others 12.90% 38%

More than 12 players in the organized sector.

Over 2,000 in the unorganized sector.

Page 10: Asian paints
Page 11: Asian paints

SWOT Analysis Strength:• M

arket leader in overall paint market (44%) & in decorative paint market in India (38% )

• Pricing policy oriented to all kinds of customer

• Strong in inventory control

• Widest product range in terms of products, shades

• Nation wide coverage of the market

Weakness:• I

ndustrial paint sector only 15% share

• No tie up with foreign manufactures although it has units in several countries.

• Seasonal demand and hence in off seasons it can lead to cash flow problems

SWOT

Page 12: Asian paints

Competitors

1. Kansai Nerolac2. Berger Paints3. Akzo Nobel4. Shalimar Paints5. Jenson & Nicholson

Page 13: Asian paints

Market Targeting

Initially targeted smaller towns.

Then they targeted urban areas.

Page 14: Asian paints

Market Segmentation Decorative Segment:• Royale • Gattu Synthetic• UTSAV Enamel• Tractor Acrylic Distemper• Apex

Industrial Sector:• Apcomin Synthetic Enamel • Apcomin Synthetic Powder • Stainer • Premium surface & fillers

Automotive Sector: • Allumium Paint • Fiber Paint • Apcolite Hammertone finish

Page 15: Asian paints

Marketing Mix (Product and Price)

Sold over 800 million liters of paints in 2010-11 It crossed the Rs.6322 crore figure

Page 16: Asian paints

Place and PromotionPlace: 4 manufacturing units 6 regional distribution center 15,000 Dealers (Urban + Rural) 90,000 Sub dealers Exclusive 3000 Asian Paints

store 4500 Color world stores

Promotion: Advertising, Public relations,

Sales promotion, External communication, Events & exhibitions.

Page 17: Asian paints

Alternative Mode of Entries

Asian Paints using following mode of entries for their global expansion:

Joint Venture Merging Acquisition

Page 18: Asian paints

Priority list

1. Indonesia2. Singapore3. Philippines 4. Malaysia5. Thailand

Page 19: Asian paints

Indonesia World’s 4th most populous country. Valued at $1,276 million in 2011 Expected to grow to $1,444 million by 2013 60% by value and 79% volume. High brand awareness, competitive pricing, extensive reach, and good dealer networks.

Page 20: Asian paints

Asian Paints Exit Operation From China & Malaysia….

Page 21: Asian paints

China

Berger Paints (China)

Company Ltd. Ningbo.

It is aggressively expanding its

distribution network.

Building a record of successful

projects.

100% market share.

Page 22: Asian paints

Malaysia

Berger International Sdn Bhd

was founded in 1997 and is

based in Klang, Malaysia.

96% market share in the

Malaysian Market.

Asian Paints Has only 4%

market share.

Page 23: Asian paints

Continuing…

The firm is expecting a "minor gain"

Competitors are increasing gradually

Competitive pressure will be strengthen

Page 24: Asian paints

Thank You……