The Marketing Strategy - · PDF fileThe Marketing Strategy of SMP - 09 . ... Competitive Positioning (SWOT) Marketing Strategies, Channels & Promotions Marketing Strategy &...

The Marketing Strategy

of

SMP - 09

Contents

Asian Paints – Mission & Vision

Industry Trends

Historical Information & Current Performance

Competitive Positioning (SWOT)

Marketing Strategies, Channels & Promotions

Marketing Strategy & Promotion Excellence

Asian Paints – Vision & Mission

Vision

“See Indian homes painted in variety of colors from a truly Indian company” • Asian paints wants to become one of the top 5 decorative coating companies world wide by

leveraging expertise in the higher growth in emerging markets.

• Simultaneously, the company intends to build long term value in the industrial coating business through alliances with established global partners.

Mission

“To provide paints as per market demand, ensuring desired level & quality of customers (dealer service)”

Contents

Asian Paints – Mission & Vision

Industry Trends

Historical Information & Current Performance

Competitive Positioning (SWOT)

Marketing Strategies, Channels & Promotions

Marketing Strategy & Promotion Excellence

Paint Industry Trends at a Glance

Indian Paint Industry

Decorative Segment

70%

Premium Range

(high end acrylic emulsion)

Metros & Large Cities

Medium Range

(enamel paints)

Small Cities

Distemper Range

(Low end paints)

Sub Urban & Rural Area

Industrial Segment

30%

Automotive Sector

Consumer durables

(marine paints & other OEMs)

Contents

Asian Paints – Mission & Vision

Industry Trends

Historical Information & Current Performance

Competitive Positioning (SWOT)

Marketing Strategies, Channels & Promotions

Marketing Strategy & Promotion Excellence

Asian Paints – Current Position

India’s Largest & world’s 10th largest Paint Company

Asia’s 3rd largest company with a turn over of over Rs. 96.32 bn

Market share of about 45% of total paint industry

Operates in 17 countries with 24 mfg facilities

Servicing consumers in over 65 countries

Ranked ‘Best under a Billion companies in Asia’ in 2005, 2006 and 2007 by Forbes

87th valuable brand in India

Manufacturing Capacity and Volumes

Market Share of Major Players in India

53%

18%

20%

9%

Asian Paints

Kansai Nerolac

Berger

Others

International Presence

No. of Plants

12

1

3

5

3

Global Operations

Regions

1

2

3

4

5

Served International Markets

Distribution Channel

6 Divisions

90 Depots, 2500 SKUs, 27000 Retailers, 95000 Sub Retailers

2 Chemical Plants, 21 Manufacturing Centers, Operating in 17 countries, 6 Subsidiaries

4500 Employees, Servicing Consumers in 65 Countries

800 Raw Material Suppliers

350 Packing Material Vendors

Contents

Asian Paints – Mission & Vision

Industry Trends

Historical Information & Current Performance

Competitive Positioning (SWOT)

Marketing Strategies, Channels & Promotions

Marketing Strategy & Promotion Excellence

SWOT Analysis

Strength Market Leader @32%

Capacity Expansion Plans

Pricing Power

Manufactures PAN India

Wide Distribution Network

Weakness Industrial Business Performing Below Par

Hiccups in International Business ( struggling in Egypt & Bahrain)

International Presence restricted to small pockets

Opportunity

Growing Automobile Market

Increasing use of Industrial Paints

due to growing economy

Threats

Domination of Few Foreign Players

High-tech Instant Spot Fixing Color Automated Paint Blending in Retail Points

SWOT

Contents

Asian Paints – Mission & Vision

Industry Trends

Historical Information & Current Performance

Competitive Positioning (SWOT)

Marketing Strategy & Functional Excellence

Marketing Strategy & Promotion Excellence

BCG Matrix

Cash Cow Wall paints (Interior & Exterior Paints)

Decorative Paints

Star Metal/Industrial Paints

Wood Finishes (varnish & polish)

Question Mark

APIL Product launched in abroad through JV Fiji, Nepal, Solomon Island & Australia

Dogs

Marine Paints

Automotive Paints & other Black Board paints

BCG Matrix

Marketing Mix

Price Royal for Premium Segment

Apcolite for Middle Segment

Tractor & Utsav for lower Segment

Product/Quality Wall Paints

Metal Paints

Wood Finishes

Backward Integration

Pyridine Latex for Rubber Tyres

Price/Distribution

23 plants

90 Depots

2500 SKUs

28000 Retailers

Promotion/Advertisement

Warranty Scheme

50 ML Packs

Gattu

Saif Ali Khan for Premium Class

Badiya Hai Campaign (middle Class Households)

4Ps of Asian Paints

Strategies

Reach to Remotest Corner Focus on Smaller Towns Gattu Small Packs – Meeting Everybody’s need Close Relationship with Dealers – Business Partnership 1990 – Target by lowering prices (consumers are brand conscious and involved) Change of Logo – Fresh & Rejuvenated Look O&M Strategy – Every Home has a story Vertical Integration 1998 – Shade Card, One Stop Color Machine, Exclusive showroom in Mumbai 2004 – Positioned as Umbrella Brand 2007 – Tie Up with IIT Horizontal Integration for rubber tyre Early 200 – Direct Link with Customers Covers all segments Discount to attract retailers, Professional Painting Service Ads create social, psychological and emotional connect with customers

Margins Strategy

Growth Strategy

International Market Strategy

To enter the high – growth emerging markets Adopt a regional hub approach to international operations Apply the emerging market business model : - Introduce new products suited to local needs - Introduce new technology, accordingly - Focus to improve all areas of Operations, especially supply chain

Elements of Supply Chain

Dealer Network & Reach

Reuse

Recycle

Eliminate Waste

Environment and Safety

Information Technology

& Customer Relation Management (CRM)

Leveraging IT Investments

Research & Development

Innovation/Differentiation Strategies

Innovation Strategies

Contents

Asian Paints – Mission & Vision

Industry Trends

Historical Information & Current Performance

Competitive Positioning (SWOT)

Marketing Strategy & Functional Excellence

Marketing Strategy & Promotion Excellence

Promotions – Online selection

Color Guides

Continuous visibility – TV Commercials

Endorsement through

Celebrities

Interactive Engagement – Website platforms

Color Dezigner

Caring for “All Ages”

Self Designing – A Sense of Achievement

Guiding customers - Interior Design Ideas

Glam Decor

Cool Decor

Vibrant Decor

Neutral Decor