demand analysis of asian paints emulsions
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Demand Analysis Demand Analysis of Asian Paints of Asian Paints
(Emulsion)(Emulsion)
Prepared By:Vikas GargManav NathDivya GargPrerna KaulGayatri MittalAnkur Kalra
Flow of the presentationFlow of the presentationObjective of the research IntroductionResearch MethodologyData Analysis and factsKey FindingsConclusionLimitations
OBJECTIVE OF THE STUDYOBJECTIVE OF THE STUDYTo analyse the demand of
EMULSIONS of Asian PaintsTo forecast the future demand of
Emulsions by taking in to consideration the potential Buyers of the product.
Introduction of Paint Industry Introduction of Paint Industry In IndiaIn IndiaOligopolistic Market
Indeterminate Demand Few Sellers Differentiated Product
The Indian paint industry is a $2 billion sector.
Grew at 9% rate in the last fiscalMarket Growth of about $200 - $400
million per year over next 5 yearsPer capita consumption of paint in
India is 800-900 grams compared to 15-25 kg in the developed countries
Contd…..Contd…..
Leaders in the IndustryLeaders in the IndustryAsian Paints (India) Ltd. (APIL)Kansai Nerolac Paints Ltd. (KNPL)Berger PaintsJenson & Nicholson Ltd (J&N)ICI (India) Ltd.
ASIAN PAINTSASIAN PAINTSMarket Leader with 33% share in
the organised paint marketLargest distribution networkLargest Brand EquityBerger Group and ICI are nearest
competitors with 17% market share each
Dominates the decorative segment with 38% market share
More than 15000 retail outlets
Financial Picture of Asian Paints
Year Sales
(In crores)
Operat-ing Profit (Lakhs)
Interest
Net Profits
Loans
2008 3416.16
3595.53
8.27 377.89 1005.90
2007 2821.29
2953.38
6.87 269.93 851.68
2006 2319.16
2447.78
3.83 187.81 694.86
2005 1941.52
2052.28
2.75 173.82 637.27
2004 1742.46
1800.63
5.27 147.58 583
Research MethodologyResearch MethodologyPrimary Research (Questionnaire)Sample surveySample Size:
◦Dealers Asian Paints Dealers Other Brands Dealers
◦Customers: Existing Asian Paints Users Prospective Users
Data Analysis and FactsData Analysis and Facts3 types of consumers existing in
the market divided on basis of income groups◦Premium (Prefer Emulsion)◦Average (Emulsion + Distemper)◦Poor (Prefer Distemper)
Data Analysis and Facts Data Analysis and Facts (Contd..)(Contd..)
Data Analysis and Facts Data Analysis and Facts (Contd..)(Contd..)Consumers rely more on Dealers
& Contractors other than ad’s◦Reasons being
Info about Quality Durability Price Long Lastingness
Price sensitivity FactorsPrice sensitivity FactorsRaw material Intensive IndustryNear half of them imported
petroleum productsMajor Raw Materials:
◦Titanium Dioxide◦Phthalic anhydride ◦Peutarithrithol
Price sensitivity Factors Price sensitivity Factors (Cotd….)(Cotd….)Factors which influence price of
paint◦Prices of the raw materials◦Import Policies◦Global Crude oil Prices◦Govt. Policies◦Packaging Costs
Elasticity of Demand of Elasticity of Demand of PaintPaintDemand for Decorative Paints is
relatively Elastic in short termIn Long term it depends on the
overall economic growthIncome of people also plays an
important rolePremium customers are more
Quality conscious than price sensitive.
Average customers are more price sensitive
Data Analysis and FactsData Analysis and Facts
Data Analysis and FactsData Analysis and Facts
RANK BRAND
1 Asian Paints
2 Dulux
3 Berger
4 Nerolac
5 Shalimar
6 Nitco
Sales Information of different brands as projected by the dealers
Data Analysis and FactsData Analysis and FactsVariation in Sales in different
QuartersComments by the dealers:
◦Sales in the third quarter is equivalent to the rest of the year
◦But, now growth in the third quarter is reduced by 10% compared with the same quarter of last year.
Feedbacks from DealersFeedbacks from DealersNot satisfied with policies of Asian
PaintsNegative Comments about the dealing
of the companyMain reason being the low profit
margin compared to the other companies
No Extra Rewards for the large dealersDemand more profit margin and extra
incentives for better sales performance
Key FindingsKey FindingsAsian paint emulsion used for
interior decoration by the premium segment of customers.
Dealers and Contractors : Tools for APIL to create a slot in the customer’s mind.
Problems with the other brands give APIL the lead in the market.
Key Findings contd…Key Findings contd…Low profit margin a great
concernSales rises in the third quarter.Little shift in the income of the
average class makes them shift to the emulsion category.
Bad credit terms.
Suggestions for still better Suggestions for still better Demand!Demand!Dealers should get price
relaxation.
Limitations !Limitations !Sample space limited to :100 customers 30 dealers.Time constraintDealers not co-operativeSo were some of the customers.
THANK THANK YOU !! YOU !!