Asian Paints

ASIAN PAINTS

The Gattu- Spirit of Colours

• History• Profile of products• Marketing Mix• BCG & ANSOFF Matrix• Problem identification• Strategies & Recommendations

Overview

History

• In 1942,Four Young Mumbaikars –Champaklal Choksey,Chimanlal Choksi,Suryakant Dani and Arvind Vakil.

• Started With a strategy “ Going to where Consumer is”.

• The R & D upgraded to international Quality in producing Phenolic & resins on its Coating.

• Driven by Customer Focus and Innovative Spirit.• Mass Appeal By Gattu• Won the Prestigious Economic times-Harvard Business

School

Brands

• Apex• Tractor• Apcolite• Royale• TouchWood

Profile of products

• Wall Paints– Apcolite Royale Emulsion, Tractor Washable ,Apex

Exterior, Apcolite Finishes(interior).

• Metal Paints– Apcolite Synthetic Enamel paints,

• Wood Finishes– Apcolite Wood Varnish, Wood Finishing (Matt &

Glossy), Touchwood Finishes

• Automotive paints– Apca NC Automotive,Krilo Acrylic Paint

Promotion

• APIL Emulsion brand Royale Competed with ICI Dulux Velvet touch in Discounting the products(3-10 Rs per litre on Emulsion Paints).

• APIL offered 1151 Different Shades.• Advertising Budget Increased Annually.• Urban Customers-Light Colours• Rural Customers- Dark Colurs• Touch Screen Facilities in shops to see the Colour

Texture

Contd

• Mascot Gattu– Indentified as Brand Icon of Asian Paints.

• Uses IT systems in its operation to improve inventory levels and Delivery Schedule.

• Shifting Advertising Theme – Mera Wala Concept to Mera Wala Rang to

MeraGhar Concept( According To Festive Seasons)

Place-Plant & Facilities

• It has 52 Sales offices and 14000 Distribution Channels.• Main Plant location

– Bhandup, Maharastra– Ankleshwar,Gujarat– Patancheru,Andhra pradesh– Kasna,Uttar pradesh

• Brand Equity makes APIL to increase Market Share by 1%.

APIL Ventures & Technology

• APIL has Joint Ventures abroad in– FIJI,Tongo,Solomon Islands– Vanuata, Queensland in Australia

• Technological Collaboration with Japan Nippon Co Ltd.,

• Asian Paints Research & Development Has acquired the Reputation of being Finest in South Asia.

Market Share: Decorative paints

34%

19%13%

12%

6%

5%

8% 3%

Asian PaintsNerolacBergerICIJ&KShalimarOthersRajdoot

Market Share: APIL

Market Share: Industrial Paints

16%

40%14%

9%

8%

8%5%

Asian Paints

Nerolac

Berger

ICI

J&K

Shalimar

Others

Market Share: APIL

BCG • Cash Cows

– Wall Paints (Interior & Exterior Paints)– Decorative paints

• Stars– Metal/Industrial paints– Wood Finishes(Varnish , Polish)

• Question Marks– APIL products launched in Abroad thro’ Joint

Ventures in Fiji ,Nepal , Solomon Islands, Australia.• Dogs

– Marine Paints,Automotive paints and others( Black board paints)

  Existing Products New Products

ExistingMarkets

Market Penetration     Product Development    

NewMarkets

    Market Development     Diversification

ANSOFF Matrix

Ansoff Matrix• Market Penetration

– Wood Finishes & Metal paints• Product Development

– Wall paints( New Washable & acrylic Emulsion paints E.g. Tractor & Emulsion acrylic paints)

• Diversification– Marine Paints(Heavy Duty) ,Automotive paints( TVS

Collaboration)• Market Development

– Venturing APIL Products abroad

Market Segmentation

• Divided into two segments• Decorative paints-70 % of total paint

market• Industrial paints• Synthetic enamels -47 % share• 34 % of market share• Interior paints and exterior paints• Automotive paints- 50 %

APIL Problems• Less exports in 1998-99 due to absence of third party exports. • 65% of Cost of Production is accounted for the Raw Materials.• 40-60% of the raw materials are imported.• Due to Imports APIL Faced with more Customs Duties• Excise Duties On Coating increased • Excise Duty was levied on MRP rather than on Manufacturing Cost.• Main Raw Materials

– Pthalic Anhydride, Resins– Titanium Dioxide,glycerine

• Due to increasing Duties the Prices of Products had to increase.• Decline in Sales Volume during Monsoon seasons

Solutions & Recommendations• Vendor Development

– Promote Vendors in supplying the raw Materials Rather than Importing.

– Develop suppliers in supplying basic ingredients for paints(pthalic anhydride, Resins)

• During Monsoon Seasons– Increase Exports to More countries (Already Captured exporting

to 22 markets-Asia Pacific,Middle East,Africa)• Pricing Strategy-Due to more Excise duties

– Penetration pricing– Destroyer pricing– Target Pricing

Contd

• Here in reworking Pricing strategy– Offer Seasonal Products E.g. Diwali in North,Pongal

in south & Christmas.– Increase promotional activities with regard to

Regional festivals.• Achieve the target using the target pricing during

seasonal products.• Offer other variety of products ( Wood Polishes)

at a discounted rate during sale of Decorative paints-predator pricing

Contd.,• Industrial paints

– tie up with Business units for longer periods.– Take over of small companies– In India there are 25 organized companies and 2000

unorganized companies.– Take over of Small companies to increase their

market Share.– Refinishing old Capital equipments/metals with paints

for industries @ low rates to prevent Corrosion.• Automotive paints

– Increase tie up with Automotives (Already with TVS)

Contd.,

• Increase the Per Capita Consumption in kgs( for india it is 0.3 kgs)

• Increase Production during Festive seasons

Per capita consumption of paint in kgs

23%

19%

17%15%

13%

13% 0%USGermanySwedenFranceUKJapanIndia

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