CASE: GOING WHERE THE CUSTOMER IS

Submitted by Group 8

Indian Paint Industry:

In 2005, the indian paints industry was around Rs.85 million. It has a huge potential as the per capita consumption in india is low as compared to foreign countries 65% - organised sector 35% - unorganised sector Paint advertising is festival driven

Bifurcation of the industry:

Decorative Paints
Fresh coats New wall finishes

Industrial Paints
Automotive Powder coating Protective coating

Asian Paints:
Indias largest paint company Ranked in top ten global players in decorative coatings It has a turnover of Rs.25.6 billion Operates in 22 countries with 29 paint manufacturing facilities Service consumers in 65 countries The company has ISO 9001 certification

Asian Paints:

Established brands in each segment Royal in premium segment Apcolite in middle segment Tractor, Utsav, 3- Mango in lower segment APIL accounts for 78% of group sales

Asian PPG A 50:5O Joint venture with PPG industries Wholly owned subsidiary APICL APIL (Asian Paints India Ltd.)

Automotive coating segment

Powder coating segment

The remaining non-auto industrial coating segments e.g. protective coating, road marking, floor coating

Marketing Strategy:
Going global Introduction of shade cards
Stress on functional benefits Maintenance of low production cost Formation of network
Tapping the untapped

Marketing Strategy

Tapping the untapped: focused on remote places of India by going where the consumer was - introduced small sized packs. - intoduced the mascot Gattu to connect to the common man Formation of network: formed close relations with thousands of dealers across India thus became no. 1 in 1968

Marketing Strategy

Maintenance of low production cost: Realized people were price conscious thus maintained low production cost. Stress on functional Benefits: The ad campaigns focused more on issues such as durability, wide range of colors Shade cards: Introduced the apcotile range with 151 shades and a shade card to chose from. - the cards became quite popular.

Marketing Strategy

Going Global: Gattu - more relevant to the Indian common man - thus to connect to consumers across the world, the company removed the mascot.

Changing Scenario:
Festivals have become less important in overall scheme of things Increased conscious around home dcor. Difficult to reach to consumers and building brand loyalty. Repositioning the brand to understand both the emotional as well as functional needs.

Alternative ad campaign
Zindagi Bhar ka Rishta Rohan has lived across India. His father has transferrable job. Each time he moves into a new house, he takes part in the painting activity. These memories are captured. At 40, he now shares these moments along with friends and family. He looks around his own house which has been painted using Asian Paints, and feels proud of himself. This ad addresses a large segment which has moved from middle class to upper middle class. Suggestion - Allow social networking sites account holders to make their own themes.

Upgrading Existing Customers

Identify your dealers/area who sell a high proportion of only one segment e.g. upper segment. Increase the margin for dealer or give additional scheme in those segments where your sales are not high but competitors sales are high to make sure that the dealer is interested. Distribute more no of free samples to the dealer in that segment Emphasize on special qualities like water repellant, scratch resistant, variety of shades or special texture effects and market it aggressively.

Advertising strategy in industrial segment

Automotive

Already have a 50:50 joint venture with world leader in industrial paints i.e. PPG Give live demonstration on factory premises e.g. car manufacturers

Powder Coatings

Aluminum products/ furniture industry is the major consumer in this segment Thus concentrate on this industry with a bigger task force

Protective coating

Emphasize on participation in trade fairs Open more no. of portals where the entreprenuers send in their queries.

THANK YOU