Introduction to Asian paints and its marketing and business strategy

1. asian Paints

3. 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.

4. 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

5. 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. 6

7. Competitors
Market Share in India

8. Segments
Decorative
Paints
segments
Paint
Industrial Paints
Phthatic
Anhydried
Chemicals
Penraerythritol

9. Interior Paints
Exterior Paints
Wood Furnishes
Wood & Metal Furnishes
Product Profile

10. 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

11. Continued
 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.

12. Indian Manufacturing Plants
Asian Plants
Bhandup (Maharashtra) in India Asian Plants
Kasna (Uttar Pradesh) in India
Asian Plants
Asian Plants
Sriperumbudur in India
(Rohtak, Haryana)

13. Overseas
Berger International Plants Berger International Plants
Barbados Berger International Plants
Bahrain
Jamaica
Berger International Plants Berger International Plants
Singapore Trinidad

14. 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

15. Brand Mascot

16. Growth Strategies
Growth Strategy: To increase sales growth rate of the group
beyond past levels using a two-pronged approach:
Organic Inorganic
Growth Growth
Market Share International
Gain M & A’s
Market Domestic
Expansion M & A’s

17.  Buys Taubmans Paints (Fiji) In September 2003.
 Acquires ICI India’s Unit (February 2007).
 Sells stake in Australian Unit (June 2007).

18. 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.

19. 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)

20. •Promotional Expenditure grew
from 15% in 2003 to 22% in 2010.

22. Diagrammatic Representation of Management

23.  Majority of employees are hired from premium
management institutes.
 Recreational facilities are provided to the employees.

25.  Water Conservation-Total
Water Management Center
 Age Care
 Education
 Other Initiatives

27. 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.

28. 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.

29. SWOT ANALYSIS
Opportunities
 The automobile industry accounted for 50% of the
industrial markets.
 Can increase investment in IT
 Rural Market

30. 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.

31.  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.

32. Prepared by:
Yuvraj Zala
Shivani Singh