4P on Asian Paint

1. NAME & AJAY (1), FARHANAZ (13), ROLL NO.: FOUZIA (14), HIMALI (19), LEENA (28), NIDHI (35) INSTITUTE: IIPM, MUMBAI BATCH: 2010-2012/FW/B5 SUBJECT: MARKETING ESSESNTIALS TOPIC: MARKET ANALYSIS BASED ON 4P’S SUBMITTED ON: 26 OCT, 2010 SUBMITTED TO: PROF. VHORA

3. OVERVIEW : ASIAN PAINTS Started in 1942 by four entrepreneurs – Chimanlal Chowksi, Champaklal Choksey, Suryakant Dani & Arvind Vakil as a partnership firm for manufacturing paints, in a garage rented for Rs.75 a monthin Kapadwanj in the Kheda district in the state of Gujarat as a collection of small plants. Over the course of 25 years, Asian Paints has became a corporate force India's largest paint company, Asia’s third largest company & ranks among the top ten Decorative coatings companies in the world Turnover – INR 0.35 million (1945) to 66.80 billion (2010) Appointed Mr. P M Murthy as Managing Director & CEO on 1st April, 2009 Operates in 20 countries globally with 28 paint manufacturing facilities servicing consumers in 65 countries Market share of about 45 % of total paint industry

4. The countries that Asian Paints has presence are as follows: South Asia : Bangladesh, Nepal, and Sri Lanka South East Asia : China, Malaysia, Singapore & Thailand Caribbean Islands : Barbados, Jamaica, Trinidad and Tobago Middle East : Bahrain, Egypt, Oman and United Arab Emirates South Pacific : Australia, Fiji, Solomon Islands, Samoa Islands, Tonga and Vanuatu It operates through its subsidiaries: Apco Coatings Limited Asian Paints Industrial Coatings Limited Berger International Limited (BIL) SCIB Paints Asian PPG Industries Limited Taubmans Paints

5. VISION Mr. Choksey’s vision was to ‘See Indian homes painted in a variety of colors from a truly Indian company.’ 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. MISSION The mission statement read ‘To provide paints as per market demand, ensuring desired level and quality of customer (dealer) service. Asian paints aims to become the largest decorative paint company in the world & to rank among the top five paint manufacturing companies of the world.

7. Traditional 4Ps extended to encompass growth of service industry: 7Ps – Price, Product, Promotion, Place, People, Process, Physical Environment.

8. In order to prove that marketing mix caters not only seller's view of market analysis but also customers view, attempt is made to match 4 Ps of marketing with 4 Cs of marketing to address consumer views:Product – Customer Solution Price – Customer CostPlacement – ConveniencePromotion – Communication

10. Road Markings

12. Pthalics

15. Fillers

16. Stainers

18. Deltorn

19. Delfleet

20. Bilux

22. 19 38 5 9 9

23. ASIAN PAINTS ROYALE LUXURY EMULSION 4 P’s OF MARKETING

24. PRODUCT Product includes all features and combination of goods and related services that a company offers to its customers. For manufacturers, products are the market expression of the company's productive capabilities and determine its ability to link with consumers. So product policy and strategy are of prime importance to an enterprise, and product decisions dictate the scope and direction of company activity. The market indicators such as profits, sales, image, market share, reputation and stature are also dependent on them. The product of any organization is both a component and a determinant of the marketing mix as it has a great influence on the other elements of the mix. Without proper product policy, a company can not pursue for further elements of marketing mix.

26. It also offers high stain resistance - walls painted with Royale are easy to clean and maintain that new look for years.

28. ASIAN PAINTS : ROYALE LUXURY EMULSION : PRODUCT 8% 6% 42% 9% 35% MARKET SHARE

29. ASIAN PAINTS : ROYALE LUXURY EMULSION : PRODUCT Line Stretching Up Market Stretch : Royale Play Spatula Effect Brushing Effect Sponging Effect Ragging Effect Down Market Stretch : Royale Shyne Enhanced Smoother Anti-Fungal Stain Durability Finish Shield Resistance

31. Multi-choice colors, oil based, mat finish, distemper, primer, wall paint, floor paint, metal paint, wood finish powder coating, protective coating and fresh coats etc, in decorative & industrial paints, satisfies customer’s requirement & their needs.

32. Asian Paints Royale is of acrylic type, washable, sunlight protected, leaks proof, long lasting, chemical base so it dries fast, polished etc.

35. Pricing Strategy adopted is value-based pricing.

36. The current price of Royale Luxury Emulsion is as below:

38. PLACE Place describes the way that the product reaches the consumer from the producer. It refers to the distribution system including the warehouse, trucks, sales force, retail outlets where it is sold, or places where it is given out for free, through the mail, via downloadable files, on a cruise ship, in a hair salon. This may also include doctors' offices, shopping malls, mass media vehicles or in-home demonstrations where consumers are reached with information & training. Another element of place is deciding how to ensure accessibility of the offering and quality of the service delivery. By determining the activities and habits of the target audience, as well as their experience and satisfaction with the existing delivery system, researchers can pinpoint the most ideal means of distribution for the offering.

40. 4 manufacturing units

41. 6 regional distribution centres

42. 55 Depots

43. 15,000 Dealers (Urban+local)

44. 90,000 Sub-dealers

45. Exclusive 3000 asian paints stores

47. PROMOTION Promotional strategies include all means through which a company communicates the benefits and values of its products and persuades targeted customers to buy them. It is the company strategy to cater for the marketing communication process that requires interaction between two or more people or groups, encompassing senders, messages, media and receivers. Promotion consists of the integrated use of advertising, public relations, promotions, media advocacy, personal selling, entertainment vehicles, public service announcements, & other methods such as coupons, media events, editorials, "Tupperware"-style parties or in-store displays. The focus is on creating and sustaining demand for the product. Research is crucial to determine the most effective and efficient vehicles to reach the target audience and increase demand.