project on marketing strategy of asian paints

8/8/2019 Project on Marketing Strategy of Asian Paints

1/52

A PROJECT REPORT ON

ASIAN PAINTS LIMITED

SUBMITTED TO PROF.N.RAJKUMAR

DEAN, IBAT SCHOOL OF MANAGEMENT

BHUBANESWAR

SUBMITTED BY—

1. DIANA SAHU (71)

2. PUSPANJALI KAR (!)

". SASWATO BHATTACHARJEE (#)$. SIBASIS MOHANTY (1!7)

MBA%I

SECTION B, GROUP NO%"

www.managementparadise.com


2/52

ACKNOWLEDGEMENT&

A successful project can never be prepared by the singular efforts but I also demands the

help and guardianship of some conversant person who under pin actively or passively in

the completion of a successful project.

Our project on 'ASIAN PAINTS LTD would not have taken the present

form in the absence of the invaluable guidance, inspiration and cooperation from many

people.

We take this opportunity to express our deep gratitude to rof. !.

"ajkumar, #ean, I$A% school of management, $hubaneswar who have given us the

opportunity to present this project and continuously monitored us to perform well.

In this context we would like to express our gratitude and thankfulness

to rof. &.'.(urty for providing us with his advise and support through our project

session.

We also express our thanks to )akti *ardware, #amana,+handrasekharpur, $hubaneswar for providing us with valuable data.

We are deeply indebted to the #irector ,faculty members of our

institute, I$A% school of management, $hubaneswar for helping us with their support and

guidance that help a lot in successfully completing this project.

inally we express our cordial thanks to our parents, friends for their unmatched

support , guidance and love throughout the project preparation.

-.#aina )ahu /-0

1.uspanjali 'ar 230

4. )aswato $hattacharjee 250

6. )ibasis (ohanty -3/0

)ection $,&roup !o74



3/52

CONTENTS

)8!O

-

+O(O!9!%)

9xecutive )ummary

I%9() +O:9"9# A&9 !O

1 Introduction -

4)ituation analysis7I

+ategory analysis)ales analysis

)hare rice analysis

-1

6

6

)ituation analysis7II

+ompetitor analysis

+ustomer analysisAssumptions of planning

;

/2

;

(arketing objectives

+orporate objective

#ivisional objective(arketing objectives

rogramme objectives

--

-1-4

-6

<

(arketing strategy7I

)trategy alternatives

+ompetitor strategy

-<

-/

/

(arketing strategy7II

ositioning strategy

+ustomer segmentationand %argeting

+ore strategy

13

11

1;

5

inancial #ocuments

+ontrol )trategy

)ales forecasts budgets

rofitability forecast

budgets

63

66

6<


-3

2

(arketingrogramme

ricing

roduct$rand

romotion#istribution

)ervice

"esearch

1/

12 41

44 4< 4/

45


4/52

2 6<

EECUTI*E SUMMARY

Asian aints is India=s largest paint company and the third largest paint company in Asia today,

with a turnover of "s 43.1 billion around >)#


5/52

Employees, Brand image, Dealer

Vendor relationship &

technology. Companys three

divisions are not e!ually

performing "ell. #o it has

di$erent objective & planning to

gain the top most position in the

%ndian paint market. sian 'aintshas di$erent marketing strategy for the urban aswell as the rural market in India.

%he company always maintaining some alternate strategy @ keeping in track with the

strategy maintaining by its competitor. In decorative sector company is strong enough, but it

need to take care of the Industrial sector so as to increase the overall sales.

+onsidering the pricing strategy of Asian paints, company has several priced products.

It starts from very low end to the premium level. Asian paints +olour World concept helped the

consumer to choose the colour combination @ other appropriates according to their wish from a

very wide range of product. +ompanyBs famous logo &A%%> helped it overcome while entering

into the rural market, as visualiCation has its own effect. Other than this Asian aints is using its



6/52

website as a very good medium to reach the highDupper middle class consumers. With these tools

company is expecting to generate much more revenue than the earlier years.

Asian paints wonderful promotional strategy helped the company to extend its business

in several other countries with success. A very attractive distribution policies @ proper

distribution channel with more than -;333 dealers helped Asian paints to spread its business in

more than 4;33 big @ small cities in India.

%he company used to maintain a very strong market research cell, which helps them to

take care of the consumers need @ intensify their "@# accordingly. Asian aints approaches the

environment issue from the perspective of waste minimiCation and conservation of resources.

%hus, the continued attempt is to reuse, recycle and eliminate waste, which results in less and

less waste being generated.

Asian aints, took a huge stride towards promoting the cause of total water management

by giving (umbai and neighboring districts like %hane0 its first %otal Water (anagement

%W(0 +entre, which is located in the premises of Asian aints manufacturing facility at

$handup.

INTRODUCTION &

Asian aints 8td. has a combined turnover of ) dollars. With its strong

presence in the Indian subcontinent, south 9ast Asia, ar 9ast, )outh pacific +aribbean, Africa @

9urope. Along with Asian paints the group consists of )+I$ chemicals, $erger International @

A+O coatings. %ogether the group has 43 manufacturing unit globally.



7/52

%he company was incorporated in the year -261 in India. Asian paints have extensively

computeriCed its operations in India using the cutting edge solution provided by )A @ i1. It

helped the company drive benefits of faster market analysis for better decision making.

%he product portfolio of the Asian aints group covers a large spectrum of finish coasts

@ ancillary products in decorative paints, wood finishes, automobile O9(s @ refinishes, marine

@ Industrial coatings.

SITUATION ANALYSIS%1

CATEGORY ANALYSIS

%he different categories of Asian paints 8td. are E

PAINT F

+ompanyBs paint business in India consists of decorative, Industrial @ Automotive

coating. In 133;73)%"IA8 +OA%I!&) F

Industrial coatings have a moderate growth rate than decorative coating, led by the

growth in automotive original e?uipment sector, powder coatings @ protective coatings.

Industrial coatings are classified into automotive @ non7automotive coatings are classified into

automotive @ non7automotive coatings. While Asian paints Industrial coating 8td. AI+80



8/52

services the powder coating segment, Asian paints 8td. caters to be remaining non7auto industrial

coatings segments.

40 A>%O(O%I:9 +OA%I!&F

%he actual look and feel of a vehicle undergoes a sea of change over time. %he paint on a vehicle

loses gloss, is subjected to a lot of wear and tear and hence starts deteriorating. Asian aints is

not having a very good market share in this segment.

CHEMICALS &

Asian paints have chemical business consisting of thalic Axhydride @ pentaerythritol

manufactured at Ankleswar, &ujrat @ +uddalore, %amilnadu. #uring 133;73< approximately

61 of companyBs chemical was sold in7house @ rest at open market.

SALES ANALYSIS &

)ales over the last < years in "s. crores0

Gear -1

months

(arch

133-

(arch

1331

(arch

1334

(arch

1336

(arch

133;

(arch

133<

&ross

sales

-;1


9/52

36951 37316 37681 38047 38412 38777

0

500

1000

1500

2000

2500

3000

Net sales

R+-/ 0 0+34/506 F

!et sales @ operating income of stand alone entity increased to "s.16444./ million from

134/; million showing a growth of -2.61 in the year 133;7133< (arch0.

%his is driven mainly on account of good paint volume sales growth of -4.5 @ price

revisions effected during the year. or the group, net sales @ operating income shows an income

shows an increase of -/.6 to "s.431-3 million.

Asian aints has a steady growth over the last < years, so the financial condition is very

much stable @ it is expected to reach at the top position in the Indian paint market.

SHARE PRICE ANALYSIS&



10/52

In the following share price analysis of Asian paints we have considered the closing price

of share of ridayBs for the month of (ay, Hune, Huly 133


11/52

%he investment on the stocks of Asian aints could be a good investment option from a

medium there prospective. It is the largest player in the industry with a vital strangle hold over

the decorative segment.

With its high level of efficiency @ developed marketing infrastructure Asian aints is

well placed in the market @ have a very high growth prospect.

SITUATION ANALYSIS%2

Asian paints limited with its three business units decorative, Industrial @ International

business is one of the largest paint company in India. It had a sell over 433 million litres of paint

in 133;73


12/52

SWOT analysis of Asian paints @ its competitors F

+O(A!G Asian aints !erolac paints $erger paints I+I paints

)trengths -. (arket

leader in overall

paint market @

in decorative

paint market in

India share 63

1. Available in

urban @ rural

area

4. *igh uality

(" @ (I)

6. ricing

policy oriented

to all kinds of

customer

-. Well ahead

leader in

Industrial paint

market

1. %ie7up with

kansai paints

provides foreign

technology.

4. (ain supplier

in the Indian

Industrial @

automobile

market main

client maruty

udyog

-. In the IInd

position in the

industrial paint

sector.

1. %ie up with

*erbert7

&ermany

valspar of >)

@ %eodor !:

of *olland

-. In the

refinishing

business it has

one of the best

?uality refinish

paint for cars.

1. In decorative

paints it

performance is

good

4. recently

purchased 62

share of uest

Int. India

limited.

Weakness -. Industrial

paint sector

only -; share

1. !o tie up

with foreign

manufactures.

%hrough it has

units in several

-. (arket share in

decorative paint

market is very

low.

1. (arket in rural

area is poor.

4. +onsidering

-. Overall

market position

is not very

impressive.

1. Asian paints

@ !erolac

paints capturing

the market

-. Industrial

paint market

existence

almost 174

1. Overall

market conduct

poor.



13/52

countries.

4.Innovation in

developing new product.

overall paint

market Asian

paint is well

ahead of !erolac.

buyer for

behind

Opportunities

-. Ac?uiringD

Increasing

market share in

Industrial paint

sector.

1. #eveloping

market in

automobile

industry, which

accounts for

;3 of

Industrial paint

market.

-. Improve its

position in

decorative paint

segment.

1. +apturing

whole industrial

paint market

-. come up

with new

innovations to

challenge Asian

paints @ $erger

paints

-. (erger with

uest will

provide to have

an experience

in foreign

market,

particularly in

>'.

%hreats

-. #omination

of few foreign

countries

1. !erolac is

advancing

rapidly in

Industrial

market

-. Asian paints is

coming up

rapidly into the

industrial paint

market with its

new plants @

products

-. Asian aints

@ !erolac

paints are well

ahead @ I+I

paint is

competing

nearly

-. $erger paint

@ there are few

new entrants in

the market.

2) CUSTOMER ANALYSIS F



14/52

Asian paint with its natural competitive advantage of siCe !umber - in India0, )trong

brand e?uity @ largest distribution !etwork has ac?uired the number one position in #ecorative

segment in India.

%here are few reasons due two which the customers in the decorative segment has been

choosing Asian aint as their brand E

-. As we know brand name has its own value @ Asian paint is the number one in decorative

segment, so a purchaser automatically leans in purchasing it.

or example, we have two different types of paints, namely Apolite glass Aenamel @

Apolite care 9mulsion, which are from Asian aints, !erolac paints, $erger paints @ I+I

paints. Again due to the competitive market the price is very closed for all the companies.$ut due to the $ranch awareness of common people they mostly tend to purchase the

products from Asian paints.

1. +ompany have provided with different varieties of product for different income groups.

or e.g. J>%)A:K which is a low value paint, is growing at a faster rates @ penetrating

with high speed at the lower income group. %his policy is helping the company to move

from metros to small towns for branded products.

4. In India fre?uency of painting has still not increased, which is once is ; years only. )o

consumers are normally changing over to the better ?uantity @ branded paints.

6. In 133-, Asian aint launched a new product J%ractor 9mulsonK, which pulled the

customer who used distemper to move to emulation paints.

A88+5>55/; 0 A546 456/ /0 /:+ 8-/09+3 &

Asian paints have started a 16 hours customer help centre at *yderabad. It is information to

consumers to answer their needs for any ?uery related, to their products. %hrough this company

is also getting a lot of data related to the customers need @ appreciations of the products.

In order to provide better consumer service, company has connected all colour world

installations with Asian aintBs main system through software @ providing computes to dealers.

%his is speeding up order execution, electronic banking will speed up recovery @ money transfer.



15/52

M43?+/ S:43+ A64;5 F

%he market share clearly shows that Asian paint is the leader in Indian paint industry. %he

nearest competitors of Asian paints are !erolac @ $arger paints. Asian paints has the largest sells

in #ecorative paints.

!erolac paints being widely used in Industry it has a greater share price value. Industries

like $ajaj auto limited, (aruti >dyog @ many other car manufacturing companies use !erolac

paints.

%he Industrial paint are priced with premium in comparison to the decorative paint which

is mainly used in house hold decoration.

$erger paints @ I+I paints are also providing a shift competition to Asian aints in

decorative paint, but still there is no sign of threat from them.

Again in the Industrial sector !erolac paint far ahead of all its competitor. Asian paint

presently building up a new manufacturing unit solely to produce Industrial paint.

Asian paints annually spends on an average "s41; +r on its selling @ marketing

expenses. It givers us an idea about the effort the company put on expanding its market in all

segments.

When customers buy the products of Asian paints E As the customers normally uses the

products of Asian paints on certain occasions like. (arriage ceremony, #ewali or any other

special occasions, other than normal paint in houses, customers are very choosy @ brand

specific. %his appreciation by the customers helped Asian paints to become the number one paint

company in India.

". ASSUMPTIONS OF PLANNING &

i. %hough Asian paints is the largest paint company in India but in industrial sector its

performance is not satisfactory. A totally new manufacturing unit is coming up @ will

start production by 133/. %his will definitely through new challenges to !erolac

paints, which is the present leader in Industrial coating market. $ut before that, a

proper introduction of positing very important to sustain in market.



16/52

ii. With the advancement of technology the demand @ choice of people changes rapidly.

)o intensive " @ d will need to be continued to continuously enhance the ?uality of

the product.

iii. Internet purchasing is new becoming one of popular way to purchase. )o ade?uate

measure will be taken to satisfy customers regarding designing of website @

providing a brief demonstration.

iv. In International market also Asian aints has become a top paint company. $ut its

strategy regarding the international market must be reviewed at a certain internal so

as to maximiCe value.



17/52

MARKETING OBJECTI*ES

F0-3 M43?+/56@ O>+8/5+ 0 A546 P456/ 43+ 58-+ >+0%

i0 +orporate objective

ii0 #ivisional objective

iii0 (arketing Objective

iv0 rogramme Objective

C03034/5+ 0>+8/5+ & %he corporate objective of Asian aint is as follows 7JAsian aint

has become one of the top decorative company world wide by leveraging its expertise in the

higher growth emerging market. )imultaneously, the company intends to build long term value in

the Industrial coating business through alliance with established global partner.K

With 9conomic performance as objective the organiCation now has to develop short7term

goals to reach the overall objective. %hese &oals are usually functional target such as production,

)ales, new market develop, new product development and technology up gradation, once the

goal are determined the strategies can be evolved to meet the goals. %he organiCation is now on

the way to achieve the overall objective of 9conomic performance.

)teps followed by Asian paints for achieving its objective F

Asian paint is following certain steps for achieving its corporate objective. %hey are as

follows F

i0 +ustomer Asset F %he settings up Asian paints colour world, a chain of state art paint shop, is

a major step towards building customer asset. At the same time company is focusing more in

rural areas than urban area and continuing to provide good and ?uality service to the customer.



18/52

ii0 %echnology asset F Asian paint is one of first Indian company to go hi7tech. Asian paint has

always kept its competitor at bay by constantly re7innovating its business process and system.

iii0 9mployee Asset F Asian paint always praise its employee for its success in the market.

+ompany always considers employee as a biggest factor of its success.

iv0 #ealer vendor relationship F Asian paint always maintain a close relationship with its dealers

because company think that they play a major role in Asian paint recent success.

v0 $rand Asset F Although it is operating in the commodity market but still Asian paint is

investing heavily in branding. &attu7 Asian paint official mascot is very popular in India.

D555064 0>+8/5+ F Asian paint has following division that are as follows F

i0 #ecorative segment

ii0 Industrial segment

iii0 Automotive segment

#ecorative segment F Asian paint is the leader in this segment. It is ahead that its competitor

!erolac and $erger in #ecorative segment company still have certain objective for this sector

that to increase it sales and to ac?uire maximum position in the market share in Indian paint

market.

Objective for decorative segment F

• %o expanding its range in the economy segment.

• %o strengthen its position in the emulsion segment in both exterior and interior

emulsion.

• %o continue its strategy of pricing aggression and increase it sales and to gain

the market share along with a good operating margin.

• %o focus on the rural market as company believes as it as been its objective

since the beginning.



19/52

• %o focus more on adcampaign for enhancement of their sales in urban as well

as rural market.

Industrial segment F Asian paint second line of production deals with the industrial coating. %heconstraint in these segment is that it is not as successful as the decorative segment. In these

sector it has to face a stiff competition from its nearest competitor !erolac and $erger aints.

Objective for Industrial segment F

• %o build new infrastructure in the country for Industrial coating to increase the

production capacity.

• %o develop the ?uality of the product with a higher technological up gradation.

• %o increase the sales of the Industrial coating with the help of proper Ad. campaign

programme.

Automotive segment F Automotive is the third segment of the Asian paint. It is a product which

company target for the automobile market in India as well as abroad.

Objective of automotive segment F

• %o put emphasis on continuous improvement in ?uality and productivity.

• %o put emphasis on detect prevention

• %o reduce variation and wastage in the supply chain.

M43?+/56@ O>+8/5+ F Asian paints the leader in Indian paint Industry has a very strong

marketing division. With more than 4; market share Asian paint is still growing in leaps and

bounce to achieve higher targets. It is changing fundamentally with two objective in mind a

huge ramp in the market share and better growth over the next three years. reviously company

used to function as undifferentiated organiCation. $ut now they have divided it into three section

each. And each section has its own independent support system, targets and performance

parameter.

+ompany marketing objective F As follows



20/52

• +ompany is using +, :7sats based line and internal mesh to become most

networked corporation in India.

• +ompany is trying to cutdown the inventory and improve the working capitalcycle for a continuous production.

• Asian paint is highly accepted in the urban sector and now the company is

trying to access the rural market with low price product like >tsav targeting every

customer of all income level.

• %o enhance their marketing in rural sector a huge amount investment is made

in adcampaign and demonstration cum sales techni?ue is going on.

• %o increase its sales in the urban sector Asian paints today have 43 colour

world located in different cities of India where any body can have the real taste of the

colour.

• Online marketing has become an integrated part of the company and company

is trying install a strong integrated for online marketing.

• Asian paints international unit, which have a dedicated marketing team is also

targeting for a rapid growth in overseal market.

• Asian paint is concentrating on the development of technological in their

industrial coating so that to make the product more stronger positon in the market.

And do it they are following the product with huge ad compaign.

• Asian paint is now targeting to provide paint solution with insurance.

• Asian paint is following unl?ue strategy of marketing in the rural areas by

using their official mascot. According to the company it feels that picture are moredominant than name.

• Asian paint website Asian paints com provides several information regarding

the product and various other information that is being re?uired by customer and

dealer.



21/52

P30@3499+ O>+8/5+ F rogramme objective is one of the main objective of the company.

*ere the company frames the strategy about the products related issue and various other thing

relating to the business. (ost of the company follows the 6BBs policy namely price, product

peace and promotion.

roduct F Asian paint details with product that is i0 #ecorative ii0 Industrial iii0 Automative. In

decorative segment company has a wide range of product from low price to high price low price

product like utsav which is basically targeted to the rural customer and high price product Apex

cefirma for exterior and interior emulsion. Asian paint investing a huge amount of fun in " @ #

sector for uality and the technological development of product so that it compets globally.

rice F the price range of Asian paint varies according to the product. Asian paint had always a

stragegy in domination in the rural sector. %he product that is supplied to the rural area have low

price range. Where as in the urban sector some of the high price product circulates.

lace F Asian paint is available to all types of customer and the main advantage of the Asian paint

is that it is easily accessible to its customer. At present there are 13,333 dealer and a large no. of

retailer. Asian paints distribution channel extends to the thirty state of India. Asian paints is also

exporting to contrites like +aribbean, Africa, (iddle east Asia and south pacific.

romotion F Asian paint follow good promotional strategy regarding their sales of the product.

%heir promotional strategy are made looking at the different category of the product and price

associated with it. In urban areas Asian paint established colour world where the customer can

enjoy the taste real colour while in rural sector it follow sales demonstration programme along

with van displaying the product of Asian paint in the rural market. It also invest a huge amount

of funds in the advertising sector for the promotion of this product.



22/52

MARKETING STRATEGY 1

STRATEGY ALTERNATI*ES F

%he prospect of a paint company has many dependence like weather, occasions like puja,

id etc. when we consider the decorative segments. )o there is always a possibility of ups @

downs in the business. $esides this there is another very important factor i.e. the position of the

competitor. %hrough Asian paints is the largest paint company still under circumstances it will

have to go for some strategy alternatives.

Alternatives available F

-. As Asian paints market is mainly the decorative segment so a downfall in that market will

lead the company in trouble them it immediate focus will turn to the Industrial segment.

1. Importance on water based paints may recover a poor situation created due to sustain

poor weather condition in some region.

4. As there is every possibility that conventional coatings are likely to lose some share E

ecofriendly coasting is going to be very good alternatives.

6. With all countries in southeast Asia beginning to adhere to the A)9A! free trade Area

A%A0 that will reduce trade barriers for paints @ coatings. A reduce in domestic market

share of Asian paints then will not be a constant for growth, became export of paints to

the foreign countries will contribute a lot.

;. Increasing the product package @ application oriented service will make company

different from others.


23/52

5. 8astly but not the least price of oil is increasing day by day, which results to increase the

price of paints. If this can be controlled by stocking oil or directly linking up with foreign

cheap refineries so as get oil at least available price.

COMPETITOR STRATEGY &

In the Indian paint industry Asian paints is the leader keeping the other

competitors far behind. In terms of gross sales we can rank the competitors of Asian

paints as F

i0 !erolac paints ii0 $erger aints iii0 I+I aints.

In industry they are recogniCed as trailing firms. $ut with their high growth in the

industry the competitors can touch or even overtake Asian paitns, for that the three main

competitors have different strategies. Initially one common strategy must be their mind E

is to increase the market share.

!ow we are considering individual strategies of the three companies.

N+3048 P456/ &

!erolac, despite a strong brand name has grossly underutiliCed its potential in

decorative paints. $ut in industrial paint sector it is far ahead of other competitors. )o, its

two main targets are F 7

i0 to keep hold of the Industrial paint market

ii0 increase the market share in #ecorative paint sector.

All their business strategies mainly rounded this two issues. %he different

strategies they are dealing with F

-0 %hey want to see high growths from decorative segments. In Industrial

sector their supply chasing demand strategy accumulated lot of

inefficiencies, so there is a scoe for cost reduction. )o they want to upgrde



24/52

the e?uipments to improve efficiency in manufacturing @ secondly they are

taking advantage of I% to improve over all efficiencies.

10 In decorative segment, they are logging behind the demand. )o now set upis needed as well as they are concentrating on enamels. %hey are installing

colour dispensing machine across the country.

40 +oncentration on emulsions @ distempers, other words interior paints.

#istinguishing the high E low end products.

60 %hey want to concentrate also on the automobile paint industry. *ere they

are already established but Asian paints is also targeting this sector heavily.

;0 Another important strategy they are considering is to involve the vendor in

their organiCational process. or this they want to have proper vendor

management processes.

B+3@+3 P456/ F

$erger paints is considered as the dark horse of paint industry. While companyBs main

strength is in decorative sector, it has been actively pushing its presence in the industrial

paint segment. %o improve its business the company have some strategy F

i0 +ompany is mainly spreaded in 9astern @ )outhern part of the company, now

it is looking for a rapid expansion at the western region also.

ii0 "ecogniCing the saturation of the urban market, $erger is targeting the rural

market.

iii0 %hey are looking to export in nearby countries such as $angladesh, $hutan,

!epal to boost its revenue.

iv0 Within the paint industry, Industrial paint segment has a higher growth rate.

'eeping this in mind company has targeted a -; share of Industrial paints in

the companyBs product mix.



25/52

v0 $ergerBs performance in Automotive sector over the lst few years has been

fairly. *ere also they are targeting to build up some tie7up with automobile

companies.

vi0 $erger had ticups with !ippon paints of Hapan @ orica of Australia. *ere they

would like to go for the branding of products through proper advertisement

compaign @ with their new logo.

vii0 An establishment of new plant in "ussia was done in 133;, which is expected

to start production by the end of 133


26/52

POSITIONING STRATEGY OF ASIAN PAINTS LIMITED &

Although operating in commodity market. Asian paints have invested heavily in

branding, &A%%>, the Asian paints official (ascot is a familiar icon across India. %he companyrecently augmented their web pressure. %heir website, Asian paints.com is an exhaustive hub of

Lainting solutionsB. %he site use (aximum interactivity to enhance user experience. %here are

painting lips, online shades cards, cost calculation based on floor area and number of rooms3

dealer locator and a short of other innovative services.

rom the perceptual map we can understand that Asian paints, have wider range of

products for all type of customers consisting of different income levels. It has a product range

from "oyal 9mulsion, riced 1;37633 which is targeted for up market buyers. *pcolilen is a product which is targeted for high income and upper middle class people. or lowers income

group it has >%)A:, %"A+%O" 9(8)IO! which priced vary from 637-33 "upees. %hese

products are mainly targeted to "ural customers.

In Industrial segment companies position is relatively weak here Werolac paints captured

more than ;3 market share. In this segment Asian paints have products like Apcomin synthetic

enamel which is used for industrial coating, and Apco synthetic power which is used in

automobile sector. In this segment also Asian paints faced stiff competition from $erger and I+I

aints. $ajaj automobiles in the main customer of Asian paints in automotive sector.



27/52

%(D)#*+%

'%(*#

'+E-%)- '+%CE

+/E

POSITIONING STRATEGY OF ASIAN PAINTS



28/52

CUSTOMER SEGMENTATION TARGETING &

+ustomer segmentation is the most important part of the marketing strategy of any company.

Asian paints, the market leader in the Indian paint market segmented their products mainly in

three sectors. i0 #ecorative ii0 Industrial iii0 Automotive. %heir customers are all also

segmented based on the usage of these products.

CUSTOMER SEGMENTATION F

e Decoratie coating !n"#strial coating $#to%otie coat

&re%i#% 'e"i#% &op#lar igh

peror%ance

coating

&o*"er

coating

+#alit,

coating

-inishe"

coating

B#,er

teristi

.p %ar/et

#,ers

achieer

#alit,

ashion

ec/er

igh

inco%e

gro#p

.pper

%i""le

class

ociall,

conscio#s

'i""le

class

r#ral

%ar/et

%ostl,

lo*

inco%e

gro#p

.se" ,

ertilier

petroche%ical

s ato%ic

energ,

installations

%ainl, #se"

*here to

re"#ce

corrosion le"

losses

.se" ,

%an#act#rer

s o *hile

goo"s other

in"#strial

pro"#cts

arge

s%all

scale car

in"#strial

%ostl, tie"

#p

co%panie

s

l" cars ar

%ainl,

recolo#re"



29/52

e,

asing

+#alit,

s#races

inl#ences

+#alit,

s#races

sha"es

Cost +#alit,

#tiliation

po*er

+#alit, cot +#alit,

s#race"

conting

strength

Brightness

cost

ation

Bran"

lo,al

Bran"

lo,al :

Cost :

ariet,

see/ing

Cost .tilit, ;ariet,

see/ing

Bran"

lo,al

Cost:

ariet,

see/ing

se

Co%pan,<

s

$#thorise"

"ealer

paints the

c#sto%er ho#se

thro#gh

"ealer

paint or

p#rchasin

g paint

co% o 12 5 10

litre

&ac/et

or paint

can

Co%pan,

approaches

points "irectl,

sol"

ther

%an#act#res

paints can

=ie #p *ith

the anto

co%pan,

l" ehicle

sen" to *or

shops o

p#rchase

&ost

hase

$ *arrant,

perio" or

so%e

,ears

i%ite" or

no

*arrant,

No

*arrant

,

igh scale

serice o

*arrant,

'e"i#% or no

*arrant,

erice

proi"e"

or li%ite"

,ears

erice

proi"e" or

0>2 ,ears?

et

$sian paint is the %ar/et paint

lea"er *ith %ore than 50@ %ar/et

share? Nerolac erger !C!

hali%ar are there

Nerolac is the %ar/et lea"er?

$sian paint hae onl, 12@

%ar/et share? ther pla,ers A

!C!

Nerolac %ar/et lea"e

50@ share

$sian paint penetratin

slo*l,



30/52

TARGETING &

Asian paints have an uni?ue customer targeting strategy. %hey used to follow : tier customer E

%arget strategy.

%ire 1 %ire 6 %ire 4

%ire E - 7 In the recipient end there are strategic solution seekers. +ompany thinks of cost

reductions, performance @ productivity improvement for clientBs improving customers @ share

holder profitability.

%ier E1 E *ere the +ustomers whom can be considered as the value or brand sensitive. Asian

paints target this customers with value added :#) integration customer level service.

%ier E4 E %hese part of the consumer are price sensitive. %hey least bothered about the service.

%hese are mainly middle or low income group people Asian paints have several brand like

>%)A: E to serve them.

%ier76 *ere the company targets the small manufacturing @ local companies, which can generate

revenue, company utiliCes its @ business @ telesales technology to address @ satisfy their needs.

%ier7; E %his tier is composed of specific targeted companies that although small in siCe, deserve

special attention because they are highly innovative in nature. Asian paints have a good prospect

over here.


%ires

%ires -


31/52

CORE STRATEGY OF ASIAN PAINTS LIMITED & %

An origination like Asian paints will always restrict itself for its core strategy on

LinnovationB. or an organiCation like Asian paints to create a strong future, it has to bred

innovation continuously. %his strategy of innovative facts will help any organiCation to fulfill

their commitment and integrity in dealing, with internal and external customers.

or this core strategy of innovation Asian paints encouraged entrepreneurship. %hey also

give grater autonomy to managers in their reasonability. organiation also develop high tolerance

for failures and encouraged risk taking.

Asian aints another important core strategy is of managing people and technology which

are also the two important assets.

As it is always a people focused company its employees are the main leaders who bring a

difference to the company.

Asian paints has stressed on employee development and creating leaders of tomorrow. It

always have strong belief in individual ability and creating an environment in which an

entrepreneurial spirit in encouraged. %his is why Asian paints have believed to be a best

employees for personal and personal growth.

Along with (ass customiCation, Asian paints has created a plat form where %alent

is shared across the organiCation as (anager are given in different areas of operations. It gives

Asian paints on overall good perspectives of business along with challenges of chandelling new

Ares of operations.

%he second most important core strategy of Asian paints limited is its technology.

%echnology includes both research and development and information technology. Asian paints

has used technology throughout its year to gain a competitive edge in the market place today, the

company has formulated the entire range of decorative coatings though home grown technology.

It has used I% as a tool to bring efficiencies and stress line operations. %his applications will



32/52

continue in future and Asian paints will not hesitate in making investment in these areas to gain

advantages of the organiCation.

%he %hird but important core strategy of Asian paints. In "econfiguration of value chain

activities F

It is a key task for Asian paints to retain competitiveness and achieve highest value cost

leveraging. *ere a uestion arises that as per this given re?uirement who were the 'ey

initiatives taken by Asian paints during the last ; years in this regard.

In last ; year, reconfiguration of value chain activities to increase competitiveness has

been one of the (ajor core area of Asian paints. An fact Asian paints has been drain stormed as

an organiCation with highest sales and profit figures. $ut most important has been initiativesunder taken in all areas of operations to increase efficiencies some of the key initiatives

undertaken are F

7 Initiatives in manufacturing to reduce losses at factory.

7 )ourcing efficiencies

7 )urat existing assets for better productivity

7 Introduction of new technology to drive efficiencies and increase productivity.

7 Implementation of new supply chain solution.

7 Implementation of an 9" solution.

$esides the above Asian paints have focused on continuously improving environmental

(anagement standards at our plants. %oday all Asian aints manufacturing facilities are

accredited with I)O -633D certification for environment management standards. %hese systems

have enable company to reduce affluent from the manufacturing facilities. %he introduction of

new supply chain has transformed management of inventory and forecasting has brought

significant benefit for the company through reduction of working capital. It has completely

changed the manner of functioning of the supply chain division.



33/52

MARKETING PROGRAMME

PRICING

Asian paints limited with its three business units decorative, industrial @ International business is

one of the largest paint company in India. It has a sell over 433 million liters of paints in 133;7

3


34/52

roduct rice range

Asian aints %ractor )ynthetic #istemper Its price ranges from "s.


35/52

9ffect of price on futureF

In the present economic situation, the growth is expected at tsav 9namel

vi0 Asian aints %rator Acylic #istemper



36/52

vii0 Asian aint >tsav Acrylic #istemper

viii0 Asian aint Apex

ix0 Asian aint Ace

x0 Asian aints %ractor )ynthetic #istemper.

Asian aints "oyale F %his product of Asian paint is targeted to higher income group and

customer of urban area. %he product contains different shades and price of each shade very. 9.g.

"egal white

Asian aints 9mulsion F it is another product which is targeted to urban area. It is high price

premium product. %he shades are white, palm group and base.

Asian aints &attu synthetic F It is a product which is targeted customer of reral area. It price

varies "s.-; to "s.-13 and it has different shades like white, A?uamarine, ACure $lue and etc.

Asain aints >tsav aint F it is product which is targeted to lower income people as well as rural

customer. %he various shades were Adyrey, backM, white, super white and etc.

Asian aints Apex F %his product is one of the major product of the saian paints as this product is

targeted to middle class people and avg income level. %hese paint have wider range of shades

such as classic white, blue ice, Alliance, Anti?ue white, sweet time and etc. %he price varies from

"s.-537"s. --;.

roducts of Asian aints in Industrial sector F it is the second category of the product that Asian

paint produces. In this segment Asian aints targets to industry where the paint are used for

protective coatings of the machinery. "oad mapping and various other industrial uses. In these

segment the product are normally sold at the premium price. Asian paint in these sector is behind

its competitor !erolac. !ow Asian aints is trying a lot to improve the product technology and

by bringing new product in this sector to compete with its competitor. %he products are

i0 Apcomin )ynthetic 9namel

ii0 Apcomin )ynthetic owder

iii0 )tainer



37/52

iv0 remium surface @ fillers

%hese products are based on high technological products and are used for asset (achinery,

tools, e?uipments0 coloring and upcoming synthetic powder is used as lubricating agent in the

machinery. remium surface and fillers and strainers are used in for road marking and various

other tings in the Industrial sector.

roduct for automotive sector F %his is the third category of product which is produced by Asian

paint. %hese segment is slowly being emerging great user of paint in the Indian market

previously automotive company used to import the product from other country. $ut now some

companies like Asian paint, nerolac, $erger have their products in this segment. %his sector is

emerging market in India.

roducts F %he products of Asian paint in this segment are

-0 Allumium aint

10 ibre aint

40 Apcolite *ammertone finish

$asically the product in this segment are new but the product are in the great demand

automotive vehicles in India. %he product are available in different colour basically they are used

for colouring the vehicles and the spare parts.

roduct life cycle F roduct life cycle suggests the different stages that a product undergoes

during its life cycle Introduction stageF In these stage the product are introduced to the market.

i0 &rowth state E In growth stage the product gens the memeenturn an grows rapidly in

these stage.

ii0 (aturity F In these stage the product attains the saturation level it reaches its

maximum point and from that point it starts downfall.

iii0 #ecline stage F In these stage product slowly goes downward in to the slope because

of low demand and various other things. It end stage of a product.



38/52

BRAND

a brand is a name, term, sign, symbol, design or a combination of all which is build intended to

identify products or services of a company to differentiate it from its competitor. Asian paints,

the largest paint company in India have established its position as a great brand. Asian paints

promise to deliver consistently a specific set of features, benefits @ services to buyers.

Asian paints as a brand name is very much attached with allits products. What evr may be

the product, like ultima, 9mulsion, wall finish lustce, Apcolite premium in the urban area or the

>%)A: at the rural area, the brand name is directly attached.

%he brand name Asian paints brings to the mind of people certain attributes lie E

wonderful coloring, royal treatment, -333Bs of colour combinations, pricing not an important

factor of concern as the company provides products for all category of consumers. ost purchase

service is also an important issue related to brand name.

Asian paints $rand extension policies helped them to reduce the effective cost of

launching new colours products in new form, with new name. 8ine 9xtension techni?ue of

branding helped them to go with new forms like E Asian paints >%)A: 9namel, Asian aints

%ractor 9mulsion, Asian paints "oyal.

+ompanyBs universal logo J&A%%>B which is not going to be a logo anymore, helped

Asian paints to promote its products in through out India, particularly in rural areas it got the

most popularity.

Asian paints is using its website as a very strong mode for the promotion of $rand. %he

wonderful information related to pre7painting @ after sales services helped the company to buildits uni?ue brand. %he on7line services, colour world @ Advertisements also helped to build the

$rand of Asian paints.



39/52

PROMOTION

Asian paints the market leader of the decorative segment in the paint market of the India.

As it is not for behind in the other tow section that is industrial coating and automotive coating.

In achieve the current position a lot things are being done by the Asian paints. %he promotion

strategy of Asian paints is bringing a lot of positive output to the company. +ompany is using

different techni?ues such ad. +ompaign, sales promotion, personal selling, driect marketing and

public relation.

romotion strategy F

#irect response marketing F Asian paints is using :7sts based in the and 16 hours online customer

help line service open. In enable the customer to interact with the company and know the details

about the product, pricing and many things related to the company.

Asian paints is dominating the television advertisemnt by increasing other ad campaign

cost over ;3 from next year. A total amount of 5; crores is spent ont eh ad campaign by asian

paint. With huge ad campaign support behind the product the company is able to making a brand

name in the mind of customer. %heir particular ad campaign L(era Walla $lueK Jhar ghar kuch

kehta hiaK are being liked by the customer.

Online marketing for urban customer F Asian paint online marketing system is helping company

in lot of ways many customer all the necessary information to the customer. It is an uni?ue way

of promotion.

+olour world F Asian paint had established 43 colur world thorugh out the country giving the

people real taste of colur. %he punchline for the colour world is JHjahan (ilen world ke saare

colourK

romoting in different cities F Asian paint have large area of !etwork of distribution. It has

almost retail outlets through out the country situated in the different city of India. All the

customer could easily access the product of Asian paint anywhere and any time.



40/52

Promotional strategy followed by Asian paints in rural market

On of thing which is contributing to the profit of Asian paint is that its entry to the ruralmarket. As Asian paint gets an competitive advantage from its competitor in this sector. As

!erolac and $erger were only targeting the urban customer.

• irst of al Asian paint is bring different low cost product like >tsav group in the rural

market.

• %here packaging very from 133gm to - kg Mand prices are also relatively low.

• %o enhance their sales in the rural market they are spending a huge amount of money in

ad campaigns.

• In rural areas they follow sales demonstration programme where they demonstrate their

different product where a large no. of discount is given on the product, lucky coupons,

free gifts are given to the customer.

• (oving vans are being employed to sell their product in different village.

Promotion in international arena

Asian paint is taking we from the domestic market and promoting its product in the international

market with establishing colour world in those place particularly +aribbean, Africa (iddle east

Asia and south pacific. A huge amount fund is invested adcapaign for these product in the

international market.

romotion through Ad campaign F Asian paint has different brands over --33 shades targeting

different segments. %he company decide to promote all the brand under one name of JAsian

paintB %his was a advantage for Asian paint in the 8ow involvement segment as the people asked

the paint by brand.

%arget Audience F %he primary target audience for all of the brands marketing and

communication activities has been the adult male who is the primary decision maker. *owever



41/52

female members of the house play an important role in selecting a shade so a large number of ad

are done keeping in mind that thing..

• %he non7sue of caps in the headline as in the original ad JAsian aintK logo which is sin

similar font, the design is meant for better readability and structure of colour used.

• %he company mascot J&attuK an impish boy with the paint tin and the brush, is most

popular and easily reconciled and is one of the ideal mascot.

)ates promotion F Asian paint uses it sale promotion as key ingredient in its marketing campaign.

It consist of various incentive designed to stimulate faster or greater purchase of their products.

&iving discount to the dealer N Asian paint gives certain amount of discount to the dealer if he

increases the sales of the company product.

)pecialty advertising F &iving Asian paint %7shirt, +aps and other small things to painter for their

advertisement.

%rade show F Asian paint always open its stall in the Industry trade so that it products would be

promoted globally.

+onsumer preference F %he customer of Asian vary from a period to a big industry in order to

enhance it sales it gives price discount on bulk amount of purchase. %he company give couponsinside the paint pack so that could be taken by the customer as a gift from the company. Asian

paint always try to improve the packaging of the product. If the product would be fancy and

stylish then it would increase the sales of the products. As industrial coating is one of tis major

product the company uses the name of the company it supply the paint for its promotion.

%he promotional strategy adopted by Asian is ?uite uni?ue apart from having such good

strategy the company is using high profile brand ambassador like Akshay 'hanna, )aif AlikhanK

to promote their product in the paint market. romotional strategy of Asian paint is always aimedlooking at customer and this needs and for this strategy company is enjoying the !o - osition in

the Indian paint market.



42/52

DISTRIBUTION

Asian paints have an extensive distribution channel through out the country. It used to

maintain uni?ue channel from the manufacturer to the customer. #istribution system at Asian paints F 7

-. (ultiplant #istribution setup.

!either geographic nor product specific.

Offers flexibility @ variable cost advantages

1. )ervicing has been key competitive advantage.

4. Around -;333 dealers serviced from around 5; sales location.

6. "ole of distribution department is to ensure timely product availability at these locations

at minimum cost.

%he company ahs 6 manufacturing facilities @ more than 1533 stock keeping units )'>s0

%hese are supported by < regional distribution centers, which cater ;; deposits. 9ach depot is

having branch manager for supervision over more than -;333 dealers in more than 4;33 small @

big cities in India.

Asian paint implemented @ concisely improving its I% systems over the years. It has

already linked all sites @ #epots through :7)A% technology, which helps them to monitor

constantly @ has given benefits in streamlining the distribution channel.

Asian paints also implemented -1 solutions to increase its networkings @ solutions,

which is a very good replacement of 9".



43/52

SER*ICE

Asian paints is IndiaBs largest paint company @ the third largest paint company of Asia

today , has an enviable reputtion in corporate @ society level for its wonderful serving.

Asian paints have three different segments F i0 #ecorative paints ii0 Industrial @ iii0

Automotive paints.

Its service strategy is also different according to these segments.

i0 #ecorative paints F

Asian paints some solutions E which actually offer a hastle free painting experiences to

the consumer is presently available in -- different cities in India. It is particularly meant for

premium consumers. In this case painting is done by experienced, trained applicators @

according to the wish @ choice of customer in presence of him. *ere time bound completions of

the job is assured.

In the website of Asian paints www.asianpaint.com0 all the details related to the

availability of the above facility @ the help desk is designed to provide the customer ample

choices.

Asian paints clour world is the uni?ue paint shop of Asian paint available through out the

India, where consumer can directly see the different paint combinations through software @

chose accordingly.

In all t here cases Asian paints also provide warranty for their products @ for home

solutions free after paint services to the consumer, if anything wrong happens with the paint.

or the rural areas, where the most popular product >%)A:, dominate the market, Asian

paint used to organiCe rallys, car or van advertisement of their product @ make aware the people

about their services.

ii0 Industrial paint F


http://www.asianpaint.com/http://www.asianpaint.com/


44/52

here the products are tested under extreme conditions to ensure their durability @ how

they can withstand different climatic changes. As corporate level the main consumer here Asian

paint used to provide importance in servicing this sector too. Its website gives all the product

details. It provides technical details regarding the uses of the paint. +oating specification, health

@ safety are also given importance as a part of services.

iii0 Automotive coatings F

In this segment Asian paints is improving its market share with high speed. *ere the

vehicles ultimately goes to the consumer, so Asian paints used to provide direct consumer

service, private cars, motor bikes @ (>: (ulti usage vehicles0 vehicle manufactures are

directly provided with the post paint service.

Asian paint have implemented is solutions. Which helped them to overcome the

homegrown supply chain, which had certain drawbacks, in terms of customer service. %he is

solution helped them to continuously monitor the changing needs of the market place @ serve the

customers accordingly.

In future so as to become open of largest paint company in the world Asian paints is also

taking care of the services they provide. %hey want to have more feedback from the customers

through their website @ colour world. It is now turning its helpline into an integral part of itsoperations. "oughly /; lakh rupees is considered as the annual service cost. uality service is

the future mothe of the company.

RESEARCH

Asian paints, the largest paint company of India have a very strong research

methodology. %here are two ways they follow F 7 i0 (arket "esearch ii0 "esearch @

#evelopment of the products according to customers need @ choices.

i0 (arket "esearch F

Asian paints used to hold a very strong market research team. %he colour worlds

available throughout India is also keeping the consumer databases @ their feed backs. %here are

three important respect which came out.



45/52

i0 +onsumer presences

ii0 Increasing global competition

iii0 "apidly disappearing completive advantages.

%he market research suggests company need to improve its presence in Industrial sector.

roducts related to surface coatings @ Intermediates need to be modified. >%)A: range of

products achieved a great success in rural market in this area Asian paint need to take the

competitive advantage.

ii0 "esearch @ #evelopments F

Asian paints have invested -63.;6 million "s. In 133;73< in the " @ # sector, Which

gives an idea about the companyBs paid interest in " @ #.

%he various sector where company is taking care of are E

i0 #evelopment of analytical test methods, characteriCation techni?ue @ application techni?ues

essential for product development, bench marketing @ customer servicing.

ii0 >p gradation of products @ processes to reduce environmental @ safety concerns.

iii0 As the price of crude oil is increasing day by day. Asian paints is looking for identification of

alternate @ new raw materials for the products.

iv0 uality improvement, cost benefits, supply chain flexibility @ crisis management are also

the matter of concern.

uture planning F

Asian paints is growing rapidly throughout the world. In international market company is

planning to introduce new @ attractive products though its subsidiaries, like $erger, Apco

coating etc. In Hamaica @ uji companyBs market is yet not satisfactory, which is also a matter of

concern. In domestic market company will concentrate on development of new productsD

product systems. With improved supply chain management.



46/52

Asian paints is looking to invest approximately "s.-


47/52

133;

133<

1


48/52

R+4/506 G30 4+ A+3/5+9+6/ 943?+/56@ 80/ &

&ross sales of a company is strongly effected by the advertisement expanses incurred.

%he advertisement @ marketing expanses a percentage of the &ross sales for 133- 7 133<

in as follows F

"s. In crores F

Gear &ross sales A# @ (ar. 9x.

133-

1331

1334

1336

133;

133<

-;1<

-


49/52

&raph showing the relation of &ross sales @ Ad ex.

1 2 3 4 5 6

11?1

11?2

11?3

11?4

11?5

11?6

11?7

11?8

11?9

E+8/ 0 -6506 B-@+/ 2!!=%!7 0 4+ &

or the paint sector the union $udget 133


50/52

+ertain unidable impacts like increase of price of crude oil, non7availability of raw material,

are certain barriers. Asian paints have achieved a gross sale of "s.


51/52

or this we use the regression analysis method by regression analysis of the total Income

@ forecasting it for G133


52/52

F03 M03+ F3++ MBA P30+8/ R+03/&%

httpFDDwww.managementparadise.comDmba7projects7download.php

A>0-/ U& (anagementaradise.com is a free to join community started

with a simple vision to provide a ?uality platform for (anagement

students. At ( you can collaborate on ($A project reports, share

research, ind a plethora of information through various modes like

articles, blogs, videos, projects, enriching you with lot of management

knowledge, +heck Institutes and courses, &et recommendations and

your connections help you land jobs and close deals.

T0 ?60 903+ 06 M464@+9+6/ P4345+&

httpFDDwww.managementparadise.comD
http://www.managementparadise.com/mba-projects-download.phphttp://www.managementparadise.com/mba_groups/http://www.managementparadise.com/mba_groups/http://www.managementparadise.com/mba-projects-download.phphttp://www.managementparadise.com/mba_blogs/http://www.managementparadise.com/mba-management-videos/http://www.managementparadise.com/top_mba_institutes_india/http://www.managementparadise.com/search-mba-jobs/http://www.managementparadise.com/http://www.managementparadise.com/mba-projects-download.phphttp://www.managementparadise.com/mba_groups/http://www.managementparadise.com/mba_groups/http://www.managementparadise.com/mba-projects-download.phphttp://www.managementparadise.com/mba_blogs/http://www.managementparadise.com/mba-management-videos/http://www.managementparadise.com/top_mba_institutes_india/http://www.managementparadise.com/search-mba-jobs/http://www.managementparadise.com/

project on marketing strategy of asian paints

Documents