Upload
yuvraj-zala
View
14.637
Download
103
Embed Size (px)
DESCRIPTION
Introduction to Asian paints and its marketing and business strategy
Citation preview
asian Paints
Paint Industry
Paint industry estimated at INR 135bn.
Unorganized sector accounts to 35% of paint market.
Volume growth estimated at 15%.
India’s share in the world paint market is 1.6%.
Per capita consumption of paint in India is 1.2kg/annum.
Introduction to Asian Paints
Started in 1942 by four entrepreneurs:
Choksey Bros,
“ASIAN OIL & PAINTS COMPANY.”
In 1967, Asian paints became the 10th largest paint company in the world.
In 1973, AP became a public ltd company.
In 2002. AP was a market leader of Indian Decorative Paints
Introduction to Asian Paints
Turnover of INR 7750 crore ($1.73 Bn)
Asian Paints along with its subsidiaries have operations in 17 countries across the world
Consist of 23 paint manufacturing facilities
Asian Paints has two alliances, one with PPG Industries USA & other with Protech Chemicals, Canada.
6
Competitors
Market Share in India
Segments se
gm
ents
Paint
Decorative Paints
Industrial Paints
Chemicals
Phthatic Anhydried
Penraerythritol
Interior Paints
Exterior Paints
Wood Furnishes
Wood & Metal Furnishes
Product Profile
Group subsidiaries
Company in South pacific island. AP operates in Australia, Fiji,
Tonga,Soloman Island under brand name APCO.
England based Company. In 2002, became part of AP
Egypt company which became part of AP in August 2002
US Company with 50:50 equity sharing with AP in 1997. Pittsburgh Paints and Glass Industries (PPG), USA
Fiji company became a part of AP in September 2003.
Continued
Indian Manufacturing Plants
Asian Plants
Bhandup (Maharashtra) in India Asian Plants
Kasna (Uttar Pradesh) in India
Asian Plants
Sriperumbudur in India Asian Plants (Rohtak, Haryana)
Overseas
Berger International Plants
Barbados Berger International Plants
Bahrain Berger International Plants
Jamaica
Berger International Plants
Singapore
Berger International Plants
Trinidad
RETAIL INITIATIVES
Asian Paints has fostered a customer-centric approach to business
Asian Paints Home Solutions Offers a “painted surface” vs. just “paint” Aimed at controlling the quality of end
product
Brand Mascot
Growth Strategies
Growth Strategy: To increase sales growth rate of the group
beyond past levels using a two-pronged approach:
Market Share Gain
Market Expansion
Organic Growth
International
M & A’s
Domestic
M & A’s
Inorganic Growth
Buys Taubmans Paints (Fiji) In September 2003.
Acquires ICI India’s Unit (February 2007).
Sells stake in Australian Unit (June 2007).
Marketing Strategies
Rural Marketing Initiatives since 1970.
Distribution is one of the main focus strategy of Asian Paints.
Advertising & Promotional Expenditure started in 1980s.
Advertising Methods- Radio, TVCs, Print, Internet,
OOH, POP, Retail Outlets, Seminars, Workshops.
Marketing Strategies
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”
Online marketing for urban customer as well as Asian paints has started cutomer helpline service(24x7)
•Promotional Expenditure grew from 15% in 2003 to 22% in 2010.
Diagrammatic Representation of Management
Majority of employees are hired from premium management institutes.
Recreational facilities are provided to the employees.
Water Conservation-Total Water Management Center
Age Care
Education
Other Initiatives
SWOT ANALYSIS
STRENGTH
Market leaders with 35%+ market shares.
Strong in inventory control.
The pricing strategy is oriented to middle and lower end consumers.
Widest product range in terms of products, shades, pack sizes.
Comprehensive nation wide coverage of the market.
SWOT ANALYSIS
WEAKNESSES
Seasonal demand and hence in off seasons it can
lead to cash flow problems.
Innovation in developing new product is inadequate.
Weakness on the technology front in industrial
paints.
SWOT ANALYSIS
Opportunities
The automobile industry accounted for 50% of the
industrial markets.
Can increase investment in IT
Rural Market
SWOT ANALYSIS
Threats
Competitors have gone in for hi-tech instacolour spot
mixing.
Domination of few foreign companies.
Competition is catching up fast, hi-tech facilities
gives abundant choices.
Rural markets have considerable potential. Companies that can establish a dealer network in these markets are likely to get the edge in positing above par growth rates over the next few years.
As setting up distribution infrastructure is expensive, it would mean that the competition is limited to the top players.
Due to substantial hike in raw material prices, Asian Paints has raised the prices of solvent based paints, thus demand would be affected to some extent.
Prepared by:
Yuvraj Zala
Shivani Singh