Asian Paints Ltd

Marketing Management Report

Fr. C. Rodrigues Institute of Management Studies

Sector 9 A, Vashi Navi Mumbai - 400703.

By
Prashant Sarode (M1438)
Pranay Shetty(M1437)

CONTENTS
No.

Topics

Page No.

Paint Industry Overview

Top Contributors Of Paint Industry :

Asian Paints Overview

Asian Paints Ltd.- Year Events

Sales Growth

13

Product Mix

6.1 Product

15

6.2 Price

17

6.3 Place

17

6.4 Promotion

17

Macro Environment

19

Market Segmentation

20

Targeting

21

10 Positioning

23

11 Differentiating

23

12 Supply Chain

24

PAINT INDUSTRY OVERVIEW

The Indian paint industry has been growing rapidly since past few years. The future of paint
industry in India is even brighter as the per capita
capita consumption of paints in India is as low as
1.25 kg.
The size of the Indian paint industry is approximately 940 million litres/annum valued at
approximately $2 billion. Over the last ten years, the industry has grown at a compounded
annual growth rate (CAGR) of 12-13%
12 13% and in the next five years, it is expected to grow at a
CAGR of 11-12%.
Growth in housing, automobiles and construction are all driving the rise in current
consumption.
The paint industry is broadly divided into two segments:

Industrial
Paints
25%
Decorative
Paints
75%

Decorative paints
Decorative paints account for approx three-fourths
three fourths of the market in terms of volume and value.
The demand for decorative paints is direct and mainly in the unorganized sector of the
economy.
Industrial paints

Industrial paints make up the remaining one-fourth of Indian paints market. The demand for
industrial paints is a derived demand and mainly in the organized sector of the economy.
Following table shows details about market capitalisation of top paint manufacturing
companies of India:
Company
Name

Market Cap.
(Rs. Cr.)

Sales
Turnover (Rs.
Cr.)

Net Profit
(Rs. Cr.)

Total Assets
(Rs. Cr.)

Asian Paints

65,575.56

10,418.78

1,169.06

3,640.44

Berger Paints

12,562.09

3,384.82

234.25

1,434.69

Kansai Nerolac

10,303.07

3,154.40

206.6

1,474.91

Akzo Nobel
Shalimar
Paints
Jenson
Nicholso

6,075.17

2,417.91

150.22

847.8

300.86

483.04

-2.8

183.24

17.03

53.96

35.31

-251.44

TOP CONTRIBUTORS OF PAINT INDUSTRY

Kansai Nerolac Paints Ltd
Kansai Nerolac Paints Ltd(formerly known as Goodlass Nerolac Paints Ltd) is the largest
industrial paint and second largest decorative paint company of India based in Mumbai. It is
a subsidiary of Kansai Paints Ltd., Japan. It is engaged in the industrial, automotive and
powder coating business. It develops and supplies paint systems used on the finishing lines
of electrical components, cycle, material handling equipment, bus bodies, containers and
furniture industries.
Kansai Nerolac Paints has 5 paint manufacturing plants and about 67 contract
manufacturers. The Nerolac owned plants are at 1. Jainpur (Uttarpradesh) 2. Bawal
(Haryana) 3. Lote, Chiplun (Maharastra) 4. Chennai (Tamil Nadu) 5. Hosur (Tamil Nadu)
Kansai Nerolac Paints Ltd. has entered into many technical collaborations with other
industry leaders such as E.I. Du-products.
The Mumbai-based company is the leader in the industrial paints segment with a market
share of over 40%. It is the third-largest player in the decorative paints segment with a

modest market share of 13%. Nearly 75% of the Indian paints industry consists of the
decorative segment.
Akzo Nobel N.V
AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance
coatings and specialty chemicals. It is Headquartered in Amsterdam, the company has
activities in more than 80 countries, and employs approximately 50,000 people. Sales in
2013 were EUR 14.6 billion.
Following the acquisition of ICI, the company has restructured in 2 January 2008, and
rebranded itself in 25 April of the same year.
AkzoNobel consists of 11 business units, with business responsibility and autonomy.
Sherwin-Williams
The Sherwin-Williams Company is an American Fortune 500 company in the general
building materials industry.
The company primarily engages in the manufacture, distribution, and sale of paints,
coatings and related products to professional, industrial, commercial, and retail customers
primarily in North and South America and Europe. The company is mostly known through its
Sherwin-Williams Paints line.
It is founded by Henry Sherwin and Edward Williams in Cleveland, Ohio in 1866, the
company operates through four segments: Paint Stores Group (known as 'Sherwin-Williams
Stores'), Consumer Group, Latin America Coatings Group, and Global Finishes Group.
Nippon Paints
Nippon Paint is a Japanese paint and paint products manufacturing company.
The company, Nippon Paint was founded in 1881. Nippon Paint (Singapore) Co. Pte. Ltd. is
an affiliate of Nippon Paint Japan with experience in paint technology. In 1971, Nippon Paint
established a 50/50 joint venture with Bee Chemical which was named Nippon Bee
Chemical Co.,Ltd. In 2006, it became a wholly owned subsidiary of Nippon Paint. Nippon
Paint Singapore was established in 1962.
The company and its subsidiaries has presence in Japan, Singapore, Malaysia, South Korea,
China, Hong Kong, Indonesia, Philippines, Taiwan, Thailand, Vietnam, India, Pakistan, United
Kingdom, Germany, Greece, Norway, Netherlands, Lithuania, Poland, Russia, Slovenia,
Spain, Bulgaria, Estonia, Italy, United States, Brazil, Australia, and the United Arab Emirates.
It is among top 10 brands in Singapore.

ASIAN PAINTS

Asian Paints, founded in 1942, is an Indian chemicals company headquartered in

Mumbai,India.
It manufactures a wide range of paints for decorative and industrial purpose. Asian Paints is
India's largest and Asia's third largest paint company, with a turnover of Rs 96.32 billion,
revenue of Rs 7964 crore and 4640 employees. The founders were four young Mumbaikars
Champaklal Choksey, Chimanlal Choksi, Suryakant Dani and Arvind Vakil. Mr. K.B.S Anand
is the current Managing Director and CEO of the company.
Asian Paints operates in 21 countries with 29 paint mfg. facilities with capacity of 440 mn.
Lts/annum, servicing consumers in 65 countries. Asian Paints operates in five regions across
the world viz. South Asia, Southeast Asia, South Pacific, Middle East and Caribbean region
through the five corporate brands viz. Asian Paints, Berger International, SCIB Paints, Apco
Coatings and Taubmans. The countries that Asian Paints has presence are as follows:
Asian Paints in South Asia (India, Bangladesh, Nepal and Sri Lanka).
SCIB Paints in Egypt.
Berger in South East Asia (Singapore), Middle East (UAE, Bahrain and Oman), Caribbean
(Jamaica, Barbados, Trinidad & Tobago).
Apco Coatings in South Pacific (Fiji, Tonga, Solomon Islands and Vanuatu).
Taubmans in South Pacific (Fiji and Samoa).

Most of its revenue from outside India come from the Middle East.
Apart from these the company also manufactures various Accessories like, Wall Primer, Wood
Primer, Putty and Stainers etc. Driven by its strong consumerfocus and innovative spirit, the
company has been the market leader in paints since 1967.
Besides Asian Paints, the group operates around the world through its subsidiaries Berger
International, Apco Coatings, SCIB Paints and Taubmans, Berger International, SCIB Paints
Egypt, Asian Paints, Apco Coatings and Taubmans. Asian Paints operates in 5 regions across the
world viz. South Asia, South East Asia, South Pacific, Middle East and Caribbean region through
the five corporate brands viz. Asian Paints, Berger International, SCIB Paints, Apco Coatings and
Taubmans. In 10 markets, it operates through its subsidiary, Berger International Limited; in
Egypt through SCIB Paints; in 5 markets in the South Pacific it operates through Apco Coatings
and in Fiji and Samoa it also operates through Taubmans.
The company is having its strategically located Indian plants at Bhandup (Maharashtra), Kasna
(Uttar Pradesh) and Sriperumbudur (Tamil Nadu), Ankleshwar (Gujarat), Patancheru (Andhra
Pradesh) and the newly built plant at Rohtak (Haryana).

The company is having three subsidiaries viz, APCO Coatings it is a subsidiary of Asian Paints in
the South Pacific islands. The company operates in Australia, Fiji, Tonga, Solomon Islands and
Vanuatu under the brand name of APCO Coatings.
The other subsidiary of the company is Asian Paints Industrial Coatings Limited which has been
set up to cater to the powder coatings market which is one of the fastest growing segments in
the industrial coatings market.
Today, the name of Berger is synonymous with quality and innovation. BIL has presence across
three regions viz. Middle East, Caribbean and South East Asia. Asian Paints participates in the
Industrial Coatings segment directly, through a 50:50 JV with PPG Inc. of US as well as through a
100% subsidiary.
Asian Paints has dedicated Research and Technology facility at Turbhe (Near Mumbai) with
over 150 scientists, successfully managed to develop Highend exterior finished and wood
finishes inhouse, which was earlier imported into the country. These products are currently
marketed under Asian Paints Elastomeric HiStretch Exterior paint and Asian Paints PU wood
finish respectively. It Supports company strategy around Technology development, Sustainable
new products, Green products, Value re-engineering for productivity improvement and cost
optimization. Asian Paints scientists had won the Roon award in 2013one of the highest
technical achievements in the coatings industry.
Vision Of Asian Paints
Asian Paints aims to become one of the top five Decorative coatings companies world-wide by
leveraging its expertise in the higher growth emerging markets. Simultaneously, the company
intends to build long term value in the Industrial coatings business through alliances with
established global partners.
Asian Paints is the leader in the Indian paint industry. Through a 50:50 joint venture with PPG
Industries, US, the company also has presence in the automotive paints segment. In FY12, the
company announced its plan forming a new 50:50 joint venture with PPG Industries for
servicing the protective, powder coatings and light industrial coatings market.

ASIAN PAINTS LTD.- YEAR EVENTS

1st February, 1942

Armed with little knowledge and great determination, Champaklal H. Choksey, Chimanlal
N. Choksi, Suryakant C. Dani and Arvind R. Vakil get together to manufacture paint in a
garage on Foras Road, Bombay. They name their company 'The Asian Oil & Paint
Company', a name that they picked randomly from a telephone directory.

1945
The Company was incorporated as a private limited company under the name of Asian Oil
and Paint Company Pvt. Ltd. It was converted into a public limited company in 1973. The
Company manufacture a wide range of surface coatings catering to different end-uses. It
also manufactures vinyl pyridine latex used in the manufacture of rubber tyres.
The company expanded its products range, developed its own technology, set up a
distribution network penetrating in smaller towns and ploughed back a large part of
earnings into creation of new facilities.

1965
The name was changed from Asian Oil and Paint Company Pvt. Ltd. to Asian Paints (India)
Pvt. Ltd.
1974
A major modernisation programme was undertaken to streamline the paint production
facilities by improving the layout of machines, addition to balancing equipment and
replacement of old machinery. The Company embarked on phased modernisation of resin
manufacturing facilities as well.
The Bhandup plant of the Company is reportedly the largest single paint factory in the
country and one of the most up-to-date with sophisticated machinery and equipment for
manufacturing a wide range of paints and other products besides adequate resin
manufacturing capacity to meet its entire requirements.
1982
Public issue of capital to fulfill the listing requirements of the Stock Exchange and to
provide part of the finance for the increased operations.
1985
The Company undertook to set up a third paint unit at Patancheru, a notified backward
area near Hyderabad, for the manufacture of 15,000 MT of paints and enamels.
Asian Paints set up a fourth paint plant in Uttar Pradesh with a capacity of 23,000 tonnes
per annum of paints, varnishes and enamels and 65,000 tonnes per annum of synthetic
resins (for captive consumption).

The Company entered into a collaboration agreement with Nippon Paints Co. Ltd., Japan,
to obtain technical know-how to manufacture powder coating and coil coatings under an
exclusive licence. Necessary manufacturing facilities for the powder coatings with a
capacity of 300 MT were installed and commissioned at Kasna plant during 1992-93.
1987
The Company commissioned a plant for the manufacture of synthetic rubbers lattices with
a capacity of 1,200 tonnes per annum. The Company received a letter of intent to
manufacture 9,000 tonnes of phthalic anhydride. The project would be based on imported
Van Heyden low energy process technology with engineering package from Davy McKee of
Cologne, West Germany. The project was commissioned in March 1990. But, a fire accident
in the succeeding month damaged a storage tank, nearby pipes and support structures.
The plant was repaired and restarted only in August 1990.
The Company jointly with Tamil Nadu Industrial Development Corporation (TIDCO)
promoted a joint sector Company under the name Pentasia Chemicals Ltd. (PCL), for the
manufacture of 3,000 TPA of pentaerythritol and 1,800 TPA of sodium formate. The project
commissioned in March.
1989
A scheme of arrangement was finalised for vesting of the assets and liabilities of the
Company's Apcotex division with Apcotex Lattices Ltd. (ALL). As per the scheme of
arrangement, one equity share of Rs 10 each of ALL was allotted without payment in cash
to the shareholders of Asian Paints (India) Ltd., for every 13 equity shares held by them in
the company, i.e., Asian Paints (India) Ltd.
The first phase of the project with an initial installed capacity of 16,000 tonnes per annum
was commissioned during the year.
1990
Asian Paints (South Pacific) Ltd., in Fiji and Asian Paints (Tonga) Ltd., are two joint venture
set up abroad with the Company supplying the necessary know-how. Both these are the
Company's subsidiaries and the equity participation by the Company amounted to 51% in
the former and 25% in the latter as at 31st December. Asian Paints (South Pacific) Ltd.,
holds an additional 25% in the equity capital of Asian Paints (Tonga) Ltd.
The Company also set up two more joint ventures under the names and styles of Asian
Paints (Nepal) Pvt. Ltd., and Asian Paints (S.I.) Ltd., both of which are subsidiaries of the
Company.
The Company had set up a joint venture unit Asian Paints (Vanuatu) Ltd., for the
manufacture of paints and enamels in the Pacific Island of Vanuatu. The Vanuatu company
had issued 54,000 ordinary shares of US $1 each to the Company as fully paid-up shares
against the plant and machinery supplied.
1991
Pentasia Chemicals Ltd., became a subsidiary of the Company. Pentasia Investments Ltd., is

a subsidiary of the Company.

1993
The Company undertook to set up a joint venture unit along with its overseas subsidiaries,
in Queensland, Australia for manufacture of paints, enamels and varnishes. The Company
was to invest a $2,00,000 in the share capital of Asian Paints (Queensland) Pvt. Ltd. a joint
stock company, Australia.
1994
The Company proposed to expand its existing capacities for the manufacture of paints and
enamels to 50,000 tonnes per annum at each of its plants in Ankleshwar, Patancheru and
Kasna.
1995
Pantasia Chemicals Ltd. (PCL) was merged with the Company. The assets and liabilities of
the erstwhile PCL are vested with the Company with effect from 1.10.1994.
The company undertook to set up a joint venture unit for the manufacture of paints,
enamels and varnishes in the Republic of Mauritius. The joint venture involves a total cost
of 1,83,00,000 Mauritius Rupees of which 49% will be financed by the Company and the
balance from Mauritian parties.
1996
The Company proposed to set up a fifth point manufacturing plant at Ratnagiri,
Maharashtra.
A joint venture company viz. Asian PPG Industries Pvt. Ltd. ws set up alongwith PPG
Industries, Inc. of USA to market and/or manufacture automotive paints and certain
Industrial products as may be decided upon mutually between the partners.
1998
The new initiative to install 350 colourworlds received encouraging response and made
significant contribution to performance. Three new products, NC range of wood finishes,
ACE exterior emulsion and Asian wall putty were launched.
Asian Paints, the Rs.737.20 crore paints major, has launched a new marketing thrust with
the introduction of a one-stop colour shop for paints complete with a software for
consumers to choose and select their different shade combinations.
Asian Paints, India's No.1 Paint Company, launched their latest offering `Asian Paints
Colour World'.
Two subsidiaries of Asian Paints - Pentasia Chemicals and Pentasia Investments - have
been merged with the p arent company following the approval of the Board for Industrial
& Financial Reconstruction (BIFR).
Asian Paints Limited, the largest paint company in India, launched its first exclusive
showroom in Mumbai.

1999
The company has joint venture companies in the overseas market. All these ventures are
doing well and have a strong hold in their respective markets.
In its first-ever acquisition overseas, Asian Paints Ltd (APL) has acquired a 76 per cent
equity stake in Sri Lanka-based Delmege Forsyth & Co (Paints) Ltd.
2000
Asian Paints has launched two variants in polyurethane (PU) wood finish under the brand
name Opal.
The Company has proposed to issue bonus shares in the ratio of three shares for every five
shares held.
Asian Paints has opened a manufacturing plant in oman in partnership with a local
company.
Asian Pains has acquired the entire paints business of Pacific Paints Company based in
Australia for over Rs 1 crore.
Asian Paints has lifted the lockout at its factory in Uttar Pradesh. The Company suspended
operations at Kasna in July after the workers resorted to a "sit-in-strike".
Asian Paints rated Best Employer by BTHewitt survey, 2000 Bluest of the blue chips by
Hindu Business Line and most admired company to work for by ETBT survey, 2000
2001
Asian Paints has introduced Utsav Enamel for the festive season.

2002
Asian Paints revamps its international operations, transferres shares in its subsidiaries in
Fiji, Tonga, Solomon Island, Vanuata, Australia and the Sultanate of Oman to the Mauritius
based subsidiary Asian Paints International.
Asian Paints executes agreement for purchase of 60% equity capital of SCIB Chemicals
S.A.E., Egypt
Asian Paints launches its $3 million joint venture with Bangladesh-based Confidence
Cements in which the holds 51 per cent stake
Asian Paints acquires controlling stake of 50.1 per cent in Berger International, Singapore,
for Rs 58 crore.
Forbes Global magazine, USA ranked Asian Paints amongst the 200 'Best Small Companies
of the world'
2003
Asian Paints, via its Singapore-based subsidiary - Berger International - inks a technology
and brand licensing agreement with PT Abadi Coatings Solusi, an Indonesian paint
company
Asian Paints acquires Taubmans Paints (Fiji) Ltd. through its subsidiary in Fiji, Asian Paints

(South Pacific) Ltd (APSP)

Acquisition of 9.2% shares in ICI India Ltd.
Asian Paints bags Ken Sharma award
Asian Paints received the Ernst & Young 'Entrepreneur of the Year Manufacturing' award
Forbes Global magazine, USA ranked Asian Paints amongst the 200 'Best Small Companies
of the world'.
2004
Asian Paints launches paint solutions for kids'
2005
Berger Intl partners with Filipino firm Dutch Boy
Company has changed its name from Asian Paints (India) Ltd. to Asian Paints Ltd. 2006
Asian Paints - APICL's new manufacturing plant at Baddi commences commercial
production
2010
Berger International Ltd Singapore (BIL), a subsidiary of Asian Paints Ltd , became a wholly
owned subsidiary of the Company
The Company's new paint plant at Rohtak in the State of Haryana has commenced
commercial production
Asian Paints Signed a MOU with Maharashtra Govt. to set up a Mega Project for
manufacture of Paints & Intermediate

2011
Asian Paints to form second Joint Venture with PPG Industries.
Asian Paints - Company's subsidiary, SCIB Chemicals SAE has temporarily restarted the
operations of its two plants in Egypt
Asian Paints receives the Best Audit Committee Award from the Asian Centre for Corporate
Governance & Sustainability.
Asian Paints was included in Forbes Magazine's Asia's Fab 50 List of companies

2012
Asian Paints - Production at the Company's Plant at Rohtak, Haryana has been restarted
Asian Paints was included in Forbes Magazine's Asia's Fab 50 List of companies

2013
Asian Paints has acquired 51% stake in the Kitchen solutions provider company, Sleek
International Private Limited.
Asian Paints was ranked 13th amongst the top paint companies in the world by Coatings
World Top Companies Report 2013
Asian Paints was included in Forbes Magazine's Asia's Fab 50 List of companies

2014
Asian Paints (International) Ltd (APIL), a whollyowned subsidiary of Indias largest paints
company Asian Paints Ltd, hiked its stake in Berger International Ltd (BIL), to around 96.7
per cent. later BIL was delisted from the Singapore Exchange (SGX).
Asian Paints was included in Forbes Magazine's Asia's Fab 50 List of companies

Sales Growth 2013-2014

ASAHI
SONGWON
23%

KANSAI
NEROLAC
18%

ASIAN PAINTS
18%
AKZO NOBEL
22%

BERGER PAINTS
19%

Sales Growth of Asian Paints over the years with different goods:
2014
Product Name

2013

2012

Sales(in
cr.)

% of Total
Sales

Sales(in
cr.)

% of Total
Sales

Sales(in
cr.)

% of Total
Sales

Paints, Enamels,
Varnishes & Black

11,445.84

94.07

10,001.96

95.49

8,702.30

95.22

Traded Goods

415.39

3.41

279.36

2.67

232.68

2.55

Others

181.35

1.49

123.68

1.18

129.31

1.41

Subsidy

65.89

0.54

43.41

0.41

34.64

0.38

Processing
Charges

45.56

0.37

19

0.18

20.47

0.22

Scrap

7.03

0.06

6.79

0.06

15.17

0.17

Sale of services

5.88

0.05

0.31

4.74

0.05

Lease Rentals

0.08

0.06

0.08

Asian Paints Sales Growth (2010-14)

(2010
in cr.
14,000.00
12,000.00
10,000.00
8,000.00
6,000.00
4,000.00
2,000.00
0.00
2010

2011

2012

2013

2014

Net Sales of Asian Paints over different Regions for year 2012-13
2012
and 2013-14
14 as follows:

It showss that Asian Paints has more sales in Middle East as compare to other regions and %
growth of net sales over the years is maximum in Asia
Asian Paints

Paints

Chemicals

Decorative
Paints

Phthatic
Anhydride (PAN)

Industrial Paints

Penraerithritol
(PET)

PRODUCT MIX
PRODUCT:
Asian Paint details with product that is Decorative, Industrial, Automotive, Chemicals.
In decorative segment company has a wide range of product from low price to high price
product like Utsav which is basically targeted to the Rural Customer and High price product
like Royale Play/ Apex cefirma targeted for exterior and interior emultion.
Asian Paint investing in huge amount in Research and Development for Quality and the
technological development of product so that it competes globally.
In Decorative paints, Asian Paints is present in all the four segments Interior Wall Finishes,
Exterior Wall Finishes, Enamels and Wood Finishes. It also introduced many innovative
concepts in the Indian paint industry like Colour Worlds (Dealer Tinting Systems), Home
Solutions (painting solutions Service), Kids World (painting solutions for kids room), Colour
Next (Prediction of Colour Trends through indepth research) and Royale Play Special Effect
Paints etc.
The width of Asian Paints' product mix refers to how many different product line the
company carries such as (for decorative paints) exterior paints, interior paints, metal
finishes, wooden finishes, smart care products, royale play.
The length of Asian Paint's product mix refer to the total number of items in its product
mix such as (for decorative paints) exterior paints product line has 5 brands-Apex Ultima,
Apex Exterior Emulsion, Apex Duracast, Ace Emulsion, Apex Tile Guard.
The depth of a Asian Paints' product mix refers to how many variants are offered of each
product in the line such as number of (colour variants available)*(packaging formats
available).
Asian Paints has recently made Upward Line Stretching of Royale Play Affects variants with
high quality such as Royale Safari, Royale Dune and side by side stretching by adding colour
variants.
Following block shows product line of Asian Paints Ltd:

Decorative
Exterior
Wood
Interior Paints Metal Finishes
Paints
Finishes
Premium
Apex Ultima
Royale
Semi-Gloss
Interior
Enamel
Apcolite
Apex Exterior Royale
Premium
Exterior
Emulsion
Sensations
Satin Enamel
Apcolite
Apex Duracast Royale Play
Premium
Italian
Gloss Enamel
Apcolite
Tractor
Ace Emulsion
Emulsions
Enamel
Apex Tile
Tractor
Guard
Emulsion
Distempers

Automotive
Body
Plastic
Coatings
Coatings
PrePreTreatment Treatment
Chemicals Chemicals
Cathodic Primer For
E-Coat
TPO/PP
Primer
Primer For
ABS/Nylon

Solid
Monocoat
Base Coat

Solid
Monocoat
1k Base
Coat

Clear Coat

2k Clear

Smart Care
Products

Royale Play

Damp Block

Royale Play
Stucco

Damp Proof

Royale Play
Dune

Crack Seal

Royale Play
Safari

Acrylmax
Unyverseal
Vitalia

Industrial
Coil And Consumer Transco
Heavy
Extrusion Electronics
Duty
Equipment
Duranar
Liquid
Primer
Liquid

Arc 2001

Electrocoat

Coraflon

Powder

Royale Play
Special Effects
Royale Play
Metallics
Royale Play
Textile

Auto Parts

Packaging
Coatings

Liquid

Beer &
Beverage

Top
Coat
Base
Coat

Electrocoat Electrocoat
Powder

Powder

Clear
Coat

PreTreatment

PreTreatment

PreTreatment
Beverage
Easy- OpenEnds / Can
Ends
Food
Monobloc
Aerosols &
Tubes
General
Line
Caps,
Closures

Marine
Sigma
Coatings

PRICE:

The price range of Asian Paints varies according to product, Asian Paints has strategy for
targeting Rural, Urban and Semi- Urban sector viz. Urban sector has some of the high price
product circulates.

PLACE :

Asian Paints is available to all types of customers and the main advantage of the company
product is that it is easily available or accessible to its customer.
At present there are above 27000 Colour World dealers and large number of retailers.
Asian Paints distribution channel extends to the nearly all states of India. Asian Paints is also
exporting to countries like US, Africa, Middle East Asia.

PROMOTION:

Gattu, the mascot for Asian Paints was created by cartoonist R.K. Laxman in 1954. Soon
Gattu, with his "shock of black hair eternally dangling over his right eye", became
popular and remained so for many decades, even featured in business quizzes. After
over four decades, it was eventually phased out after 2002, when company's advertising
agency Ogilvy & Mather (O&M) initiated a rebranding exercise. The logo was changed to
a contemporary upmarket, the logo/design was to convey self-expression, sophistication
and Technology. Asian Paint brand is about people and homes and homes reflect the
people living in it- " Har Ghar Kuch Kehta Hai" or " Every Home has a story to tell". This
campaign is a perfect example of a brand laddering up and connecting to a higher level
in the mind of the customer. The campaigns reinforced the brand as a premium

emotional brand. Along with the campaign Asian Paints also ran parallel ads for its sub
brands.
Asian Paint follow good promotional strategy regarding their sales of the product. Their
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 of 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 advertising sector for promotion of there
products. Asian Paints promotional strategy active in festive periods.
Asian Paints Rural Marketing started in 1970. Distribution is one of the main focus
strategy of Asian Paints. Advertising & Promotional Expenditure was started in 1980s.
Advertising Methods used - Radio, TVs, Print, Internet, OOH, POP, Retail Outlets,
Seminars, Workshops.
Asian Paints brand Ambassadors, Soha Ali Khan Saif Ali Khan bond over in the new ad of
the brand. Asian Paints have come up with a new paint named Royale Aspira which
gives 5 years of warranty. In the new ad the brother sister duo are speechless after
looking at the Royale Aspira painted wall. Saif and Soha Ali Khan had previously done an
ad together in the year 2011 for Asian Paints Royale - PLAY.

Corporate Social Responsibility (CSR):

In Ankleshwar - Gujarat, Asian Paints continues to support the "Shree Gattu Vidyalaya"
school which was established along with the Ankleshwar Industrial Development Society
in 1983. The school today boasts of around 2,500 students in primary as well as
secondary sections and Asian Paints has sustained its commitment of providing
infrastructure support to this school, be it through donations of computers, tables and
chairs, or through assistance in other maintenance work for the school and conducts
Vaccination and Health camps too.
In Sriperumbudur (South India) also, Asian Paints presented the Pondur primary school
with desks, tables, a PA system and even school bags for the students.
Asian Paints in Kasna (UttarPradesh), Patancheru (Andhra Pradesh), Sriperumbudur
(Tamil Nadu) and Ankleshwar(Gujarat) have taken up the cause of providing healthcare
facilities to the disadvantaged elderly sections of the society in their localities.
The Mobile Medicare Units (MMUs)which the Kasna, Patancheru and Sriperumbudur
facilities operate is really a novel effort of bringing healthcare to the doorsteps of the
lesser fortunate senior citizens. Its really heartening to learn that Asian Paints reached
out to more than 2,00,000 senior citizens through our various age care initiatives..

MACRO ENVIRONMENT

Overall global economic environment is volatile with the Euro crisis and Crude oil prices still
not completely addressed.
There are risks of growth not picking up in developed countries, which can have an impact
on the global economic environment.
The socio-political situation in some of the key oil producing nations has been fragile for
some time now. Any deterioration of conditions in any of these countries can affect the
global crude prices, which can have significant impact on prices across the board.
Costs of key raw materials like used in paint industry have been on rise for some time now
due to their relative shortage, inadequate investment in fresh capacities and buoyant
demand conditions. There is risk of the prices not coming down anytime soon.
The Apr-Sept 2014 period witnessed slowdown in growth across advanced economies
The domestic economy recovery would be more gradual than expected though some
improvement in fundamentals witnessed
The Rupee was relatively stable unlike other Emerging market currencies, trading in the
range of Rs.60-62 to a dollar

Environment and Safety

Asian Paints approaches the environment issue from the perspective of waste minimization
and conservation of resources. Determined to reuse, recycle and eliminate waste, Asian
Paints' material losses in manufacturing have reduced substantially over the last few years.
All the paint plants and chemical manufacturing plants of Asian Paints have ISO 14001
environmental certification.
All Asian paint plants have achieved 'zero industrial discharge' capability. This has been
achieved by the installation of upgraded effluent treatment facilities and installation of
reverse osmosis plants in conjunction with appropriate recycling and reuse schemes and
adopted the principles of "green productivity".
Some of innovative schemes which enhance green productivity are dealer tinting systems
which has resulted in large batch sizes; bulk storage facility for monomers which reduces
wastage; Use of natural gas which is a cleaner fuel ; solvent recovery plants have been set
up which has resulted in zero reduction of solvent disposal ; improved incinerating systems
and reverse osmosis.

MARKET SEGMENTATION
Asian Paints has a number of offerings to its customers depending on their affordability
and requirement:

Decorative Paints: Decorative Paints business contributes around 94% to the total paint
business. In the decorative paint segment, the company operates in 4 main segments interior wall finish, Exterior wall finish, Enamels and Wood Finishes. Besides, the
company outsources around 25-30% of its total production.

Industrial Paint Segment: In this segment, the company caters to automotive, powder,
protective coatings, road markings segment, floor coatings and General Industrial
Paints.

Chemicals
In this segment, the company caters to chemicals like PAN, PET.
Asian Paints has adopted some rigorous marketing strategies which have helped it gain
dominance over other players.
Further Segmentation of Asian Paints carried out on the basis of the following Buyer
Characteristics / Economical Status of the buyer:

Segmentation
Buyer Characteristics / Economical Status of
the buyer
Up market buyers and high quality seekers

Upper Middle class - High income group and

socially conscious
Middle Class - Low income group and rural
market

TARGETING

Exterior paints are targeted at builders, real estate developers and contractors. An
exterior finish known as gattu or cement paint, is
is used on walls as it is extremely
economical and durable. The main requirement for such customers is the durability
rather than smoothness or colour.
Interior Paints on the other hand are targeted primarily at home owners, interior
designers, as well as carpenters
arpenters and contractors. Here stress will be laid on the
smoothness, texture, colour and finish of the paint. The colour stores go a long way in
promoting the Interior Emulsions.
The primers,
rs, putties and the other such ancillary products would be purchas
purchased by
contractors and carpenters as a part of the painting process.
Targeting is based on the quality and pricing of the paints. Within each segment, Asian
Paints offers innumerable products.
In the Exterior Emulsions Asian Paints Apex Ultima is a premium, high-performance
performance
brand which caters to the economically higher class and is used on premium buildings.
Asian Paints Apex is a Mid Range brand catering to the next segment of society.
Similarly, in the Interior Paints sector, the products are price-differentiated
price
ntiated in the
following way:
Emulsions : These are water based paints Acrylic Emulsions are extremely durable
Eg: Asian Paints offers three brands to choose.

Premium - Apcolite Royal Acrylic Emulsion.

Medium - Apcolite Super Acrylic Emulsion.
Economical - Super Decoplast
Distempers: These are also water based paints but their binders may be very natural or
synthetic. Distempers are economically priced, they offer good value for money as they
are durable.
Eg: Asian Paints has Tractor Acrylic washable Distemper, Tractor washable Synthetic
Distemper .

Asian Paints follows a V-Tier Customer Target Strategy

Tire 1 - On the recipient end there are strategic solution seekers. Company thinks of
cost reductions, performance & productivity improvement for clients, improving
customers & shareholders profitability.
Tier 2 Here the customers can be considered as value or brand sensitive. Asian paints
targets these customers with value added VDS integration customer level service.
Tier 3 These consumers are price sensitive. They are least bothered about the
service. These are mainly middle or low income group people Asian paints have several
brand like UTSAV to serve them.
Tier-4 Here the company targets the small manufacturing & local companies, which can
generate revenue. Company utilizes its business & telesales technology to address &
satisfy their needs.
Tier-5 This tier is composed of specific targeted companies that although small in size,
deserve special attention because they are highly innovative in nature. Asian paints has
a good prospect over here.

POSITIONING

From 1999, Asian Paints has undergone a transformation and repositioning, thereby
emerging as a consumer oriented, value added paints company. The consumer market
had steadily been changing, and repainting of houses primarily during festival seasons
was becoming a less dominant trend. Painting became less seasonal and utility based.
Instead, consumers became more aware and conscious about home dcor and home
making.
The rise in colour consultants and Interior designers also contributed greatly to this
trend. As a result, Asian Paints began to position itself as a part of this high voltage
emotion of home creation.
Core Thought : Asian Paints is about people who invest emotional energy in creation of
their homes. This sentiment is captured even in the advertisements where painting a
wall is associated with a number of different events or emotions.

Change in Visual Identity

Asian paints revamped its image as well as its packaging to get a more contemporary and
international look and enhance the visual appeal of the brand.
Service Offering
Asian Paints introduced a new dimension of service offering where it finally delivers not just
paint but a painted home.
Asian Paint offers Paint Selector, Paint Budget Calculator, Colour Ideas Store.

DIFFERENTIATING

Asian Paints team listens to what a consumer wants and able to identify latent demand
and meet consumer expectations much before other competitors.
From the launch of small packs, to the introduction of exterior paints, to a foray in the
painting service sector with Asian Paints Home Solutions, was the first in the industry to
introduce such offerings.
Asian Paints not only differetiates its products by innovating ideas but also online and
offline colour budgeting, colour selection services to potential customers to drive the
market demands

SUPPLY CHAIN

The company is having stateoftheart supply chain system using cutting edge technology
to integrate all its plants, regional distribution centres, outside processing centres and
branches in India.
All the companys paints plants in India, two chemical plants, 18 processing centres, 350
raw material and intermediate goods suppliers, 140 packing material vendors, 6 regional
distribution centres, 72 depots are integrated.
A competitive edge in the challenging Indian marketplace, Asian Paints found a clear
advantage in establishing a leaner, more agile and cost-efficient supply chain.
Asian Paints is Indias largest paint company and is ranked among the top 10 decorative
coatings companies in the world. The company provides innovative solutions for decorative
home improvement, industrial and automotive painting requirements.
Asian Paints sells through some 27,000 local retailers, who resell its products to home
users, contractors and painters. The company also sells paints and colors to original
equipment manufacturers (OEM) and to large contractors serving the OEM marketplace. To
serve those demanding market segments, Asian Paints produces more than 1,200 standard
paint product SKUs and many made-to-order formulations, and operates about 80 sales
offices.