Rupal Naidu 134 Manushi Paul 140 Aditi Pilania 141 Nitika Sharma 148 Ananya Sinha 153 Apurva Srivastava 154

Industry Analysis. About the Company. Profile of Products. Market Segmentation. 4 P’s of Marketing. Sales and Distribution. Market Share. International Presence. SWOT Analysis.

Overview

Paint Industry

The per capita consumption of paints in India is still low at 1.25 kg (as against 51.7 kg in Qatar, 38 kg in Singapore or 25.8 kg in the U.S. Even China has a per capita consumption of 2.5 kg and Sri Lanka 3.5 kg).

India has a long way to go. Therefore, the future of the industry in India is quite bright.

History

Started in 1942 by four Mumbaikars – Champaklal Choksey, Chimanlal Choksi, Suryakant Dani and Arvind Vakil as a partnership firm for manufacturing paints.

Started with a strategy “Going to where Consumer is”.

Driven by Customer Focus and Innovative Spirit.

Mass Appeal By “Gattu”.

Asian Paints - Today

India’s largest paint company for nearly four decades.

Operates in 21 countries with 29 paint manufacturing facilities

having a capacity of 420 million litres per annum.

Asia’s third largest paint

company and leader in eleven countries.

Core Thought

Asian paints is about people who invest emotional energy in creating their homes.

Asian Paints is about homes which reflect the taste and love of their owners/residents.

Market Segmentation

Major segments:i. Decorative paints:

o Enamels - 50% o Distemper - 19% o Emulsions - 17% o Exterior Coatings - 12% o Wood Finishes - 2%

ii. Industrial paints:o Automotive Paints - 50% o High Performance Coating - 30% o Powder Coating - 10% o Coil Coating - 5% o Marine Paints - 5%

Sector-Wise Distribution

Profile of Products (Decorative)

Exterior Wall Paints (ACE, Apex, Apex Ultima, Apex Duracast, etc).

Interior Wall Paintso Distempers (Tractor Acrylic Distemper)o Emulsions (Royale)o Enamels (Royale Play)

Metal Paints (Apcolite Synthetic Enamel paints, etc). Wood Finishes (Apcolite Wood Varnish, Wood Finishing -

Matt & Glossy, Touchwood Finishes, etc).

Promotion

Promotional Expenditure grew from 15% in 2003 to 21% in 2008.

Promotion

APIL offered 1800+ Different Shades Touch Screen Facilities in shops to see the Colour Texture Color World with Tinting Machine Coverage test Brand ambassador

Promotion

Color Genie – Get your sample. Get your shade!

Bulk deals through architects Shifting Advertising Theme

o Mera Wala Concept to Mera Wala Rang to Mera Ghar Concept (According To Festive Seasons).

Home Solutions

Color Concept

ColourWeek

• In the Colourweek Sampler offer with every 200ml Sampler pack purchased, the consumer gets 2 Samplers of 200ml packs FREE!!! To avail this one time offer, consumers have to SMS Colourweek to 56161.

Events

Durga pooja – awards 25th anniversary

Website

• Game – ‘Help Saif create a wall’• Talk to interior designers• Paint Calculator• Choose your colour

Place - Plant & Facilities

Main focus of the company is to provide Quality @ Competitive prices.

The paints are generally priced higher than the competition but offer superior quality.

Despite high prices, customers are brand loyal as can be seen by the constantly expanding market share of the company.

Pricing

Pricing Strategy

Regional Manager

Area Manager 1

Unit Head 1 Unit Head 2

Key Accounts 1

Key Accounts 2

Project Sales

Officer

Sales Executive 1

Sales Executive 2

Area Manager 2

Sales & Distribution - Structure

Sales & Distribution - Features

Forecasting: o Sales trends follow a seasonal pattern. o Demand for new products is determined after extensive

research and feasibility studies mainly by means of consumer surveys.

C&F (Carrying & Forwarding) Agents:o Highly effective supply chain through C&F agents.

(Distributors place their goods at designated C&F points and distribute them from these points as and when requirement arises from the customers/dealers).

Reverse Logistics:o Heavy discounts on the products nearing the end of their shelf

life.o “Dumping” at the dealers to weed out competition.o Reusing expired paint chemicals to add to the newer paints.o Disposal in case the product is beyond usage.

Increase in Market Share

International Presence

SWOT AnalysisStrengths

1. No.1 player in decorative paints and No.2 in industrial paints.

2. Wide range of products with over 8500 colours.

3. Geographically well spread giving the company a logistical advantage.

4. International presence giving opportunity to reap benefit from international growth.

5. Wide distribution network (19,000+ dealers).6. Highest manufacturing capacity.7. Strong financials help the company to invest

in marketing and brand recall activities.

Weaknesses

1. Low share from the industrial paint segment.

Opportunities

1. High growth in both decorative and industrial paint industry.

2. Potential in overseas markets.

Threats

1. Growing industry and low capital intensive nature of business will attract competition.

2. Setting up a Greenfield project and buyout are viable options for international players to enter the domestic market.

3. Industry growth depends on two factors:• Repair Activity and,• Construction.

Any slow down in any of the two will have direct impact on company sales.

Thank You