Asian Paints

Asian Paints: Royale Luxury Emulsion

Asian Paints: Royale Luxury Emulsion

4 P’s Of Marketing4 P’s Of Marketing

Introduction

• Vision:"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 Asian Paints aims to become the largest decorative paint company in the world and to rank among the top 5 paint manufacturing companies of the world.

Introduction

• Asian Paints is India's largest paint company and the third largest paint company in Asia today

• It’s a 3000 crore Indian MNC and is amongst top 10 decorative paint companies in India.

• Asian Paints operates in 22 countries and has 30 paint manufacturing facilities in the world-servicing consumers in over 65 countries.

• Forbes Global magazine USA ranked Asian Paints among the 200 Best Small Companies in the World for 2002 and 2003 and presented the 'Best under a Billion' award, to the company.

• Asian Paints has a 50:50 joint venture with Pittsburgh Paints and Glass Industries (PPG) of USA, the world leader in automotive coatings, to meet the increasing demand of the Indian automotive industry - www.asianppg.com.

• Asian Paints Industrial Coatings Limited has been set up to cater to the powder coatings market which is one of the fastest growing segments in the industrial coatings market.

Asian PaintsAsian Paints

PRODUCT MIX

PRODUCTPRODUCT

Asian Paints

Decorative

Fresh Coat

New Wall Finishes

Industrial

Automotive

Powder Coatings

Protective Coatings

PRODUCT MIXASIAN PAINTS

ANCILLARIES

INTERIOR

EXTERIOR

METAL FINISHES

WOOD FINISHES

1.DECOPRIME SYNTHETIC CEMENT PRIMER-ST2.DECOPROME SYNTHETIC CEMENT PRIMER – WT3.TRACTOR OIL PRIMER4.METAL PRIMER CORRSION RESISTANT5.AP ACRYLIC WALL PUTTY6.APCOLITE KNIFING PASTE FILLER7.ASIAN NC CLEAR WOOD FILLER8.APCOLITE UNIVERSAL STAINER9.APCOLITE WOOD STAINS

1.ROYALE LUXURY EMULSION2. PREMIUM EMULSION3.TRACTOR EMULSION4.INTERIOR WALL FINISH5.AP INTERIOR WALL FINISH6.TRACTOR ACRYLIC DISTEMPOR7.AP TRACTOR SYNTHETIC DISTEMPOR8.UTSAV ACRYLIC DISTEMPOR9.UTSAV DISTEMPER

1. APEX EXTERIOR EMULSION2.APEX TEXTURED EXTREIOR EMULSIONAPEX ULTIMA EXTERIOR EMULSION3.ACE EXTERIOR EMULSION4. EXTERIOR WALL PRIMER5. EXTERIOR SEALER

1.APCOILITE PREMIUM GLOSS ENAMEL2.APCOLITE PREMIUM SATIN ENAMEL3.GATTU ENAMEL4.UTSAV ENAMEL5.APCOLITE HAMMERTONE6.3 MANGOES ALUMINIUM PAINT

1.PU WOOD FINISH2.AP MELAMYNE3.TOUCHWOOD4.APCOLITE CLEAR SYNTHETIC

Market Share of Decorative Segments

• DECORATIVE SEGMENT

• Asian Paints • 38%

• Kansai • Nerolac 14%

• Berger paints • 9%

• ICI 9%

• Jenson and • Nicholson

• 5%

• Shalimar 6%

• Others 19%

Asian Paints: Royale Luxury Emulsion

4 P’s of Marketing

Asian Paints: Royale Luxury Emulsion

4 P’s of Marketing

PRODUCT

PRODUCT

• Asian Paints Royale Luxury Sheen Emulsion is a water-based, 100% acrylic, interior wall finish.

• Royale provides a silky sheen finish which lends a soft regal glow to the interiors of the room.

• Royale has excellent flow giving a near brush mark free finish. • Royale also offers high stain resistance - walls painted with Royale are easy to clean and

maintain that new look for years. • Royale also offers good anti-fungal properties.Attribute Asian Paints

Coverage 325-350 Sq. ft/Lt

Drying time 15-20 min

Gloss Soft Sheen

Shelf Life 3 Yrs

Stability of Thinned Paint

Use within 24 Hrs.

Product

• Line Stretching:– Up Market Stretch: Royale Play– Down Market Stretch: Royale Shyne

Asian Paints, 4 P’s of MarketingAsian Paints, 4 P’s of Marketing

PRICE

Royale Luxury Emulsion

Pricing

• Royale luxury Emulsion is placed as a luxury emulsion.

• Pricing strategy adopted is value based pricing.

• Price range 4638-4975 for 20Lts.

Pricing

Attribute Asian Paints Royale

ICI Velvet Touch Nerolac 24 carat Impression

Coverage 320-350 sq. ft/Lt 300-325 sq. ft/Lt 220-240 sq. ft/Lt

Drying Time 15-20 min 20-25 min 30 min

Shelf Life 3 Yrs. 2 Yrs. 1 Yrs.

Value Addition BEST GOOD AVERAGE

Attribute Comparison

Asian Paints, 4 P’s of MarketingAsian Paints, 4 P’s of Marketing

PLACE

Royale Luxury Emulsion

PLACE

• Extensive distribution network of:– 4 Manufacturing units– 6 Regional distribution centers– 55 Depots– 15,000 Dealers(Urban + Rural)– 90,000 Sub Dealers

• Exclusive 3000 Asian Paints Store.

• 4500 Color World Stores.

PLACE

AP bypassed the bulk buyer segment and went to individual consumers of paints.

AP went slow on urban areas and concentrated on semi-urban and rural areas.

AP went retail. AP went in for an open-door dealer policy. AP voted for nationwide marketing /

distribution.

Promotion Mix

• Advertising• Public Relations• Sales Promotion• External Communication• Events and Exhibitions

Promotion Mix

• The promotional strategy adopted by Asian is quite unique. The company is using high profile brand ambassadors like Akshay Khanna, Saif Ali khan & Soha Ali Khan” to promote Royale Luxury Emulsion.

Advertising: Electronic Ad’s

Promotion Mix

• Some other Ad includes:

Advertising: Electronic Ad’s

Promotion Mix

Advertising: Print Ad’s

Promotion Mix

• PR activities does not work in isolation.

• Asian Paints merges its Events and PR activities.

• It hosts innovative events like the launch of Colour Next 2009 as to attract the media.

• Moreover Asian Paints Celebrated Colour Week which attracted media coverage for a whole week

Public Relation

Promotion Mix

• VIA Dealers Meeting (quarterly).• VIA Painters Meeting (annually).• VIA incentives to Painters(Token

Exchange, Cash in the Bucket).• VIA Privilege Club Members.• VIA distributing merchandise to

painters such as T-shirts, caps etc.

Sales Promotion

Promotion Mix

External Communication

Home Solutions

Colour World

Online Consultancy

Helpline

Estimate Calculator

Paint Selector

Promotion Mix

External Communication

Promotion Mix

• Asian Paints Sharad Shamman• Sponsored Star Screen Awards

from year 2000-2004.

EVENTS

PRICING

1. AP BYPASS THE BULK BUYER SEGMENT AND GOES TO INDIVIDUAL CONSUMERS

Bulk buyer segment was the major segment of the paint business in the earlier days and any paint company needed a share of this major segment for sheer survival. Though, this segment was dominated totally by foreign companies and their wholesale distributors, a new entrant to the business like AP would normally have rushed to this segment and tried to garner a share of it. AP, however, had a totally different game plan. Seeing that this segment was not a growth segment, though it was certainly the major segment at that point of time, AP decided to ignore this segment for the present and go to individual consumers. And that was a crucial decision. It influenced every subsequent decision AP took in the realm of distribution. Over time, AP proved to the paint industry that there existed a large and bottomless segment in the paint business of India, outside the bulk buyer segment, comprising of individual consumers.

PRICING

2. AP went slow on urban areas and concentrated on semi-urban and rural areas.

Along with the decision to go to individual consumer segment leaving aside the bulk buyer segment, AP also decided that within the individual consumer segment, semi-urban and rural areas would constitute AP’s priority market.AP clearly saw that a large market for paints was emerging in the semi-urban and rural areas, and felt it wise to tap this market. AP found it difficult to attract the wholesalers in the cities to deal in its products. It had to necessarily turn to the semi-urban and rural areas for support. AP wisely decided against committing all its resources on a head on collision by launching its own Sales Force who will to the ground level .

.

PRICING

3. AP GOES RETAILGoing directly to retail dealers was the next major strategic decision of AP in the realm of marketing and distribution. Here too, AP totally broke with the prevailing distribution practice. The foreign companies, who were the main players, were practising a wholesale distributor-dependant marketing system. AP did not see any great merit in the system. It totally bypassed the well-entrenched wholesale distributors and went directly to the retailers. While AP’s competitors remained content with their linkage with a handful of wholesale distributors, AP preferred direct contact with hundreds of retail dealers.

PRICING

4. AP GOES IN FOR AN OPEN-DOOR DEALER POLICYAP followed an open-door policy in the matter of adding retail dealers to its network. The prevailing trend in those days was to limit the number of dealers to the barest minimum. AP broke this trend and chose to use practically everyone in the trade, who was willing to function as its dealer. It was as a combined result of the policy of going directly to retailers and the policy of open door to dealership that AP’s dealer network swelled rapidly. Even after achieving stability and maturity in distribution, AP continued to follow a policy of continuous expansion of dealer network. By 1990, AP was having a 7,000 strong dealer network. By the year 2000, the number had swelled to 12,000. And even now, on an average, AP is adding 200 to 250 new dealers every year.

PRICING

5. AP VOTES FOR NATIONWIDE MARKETING/ DISTRIBUTIONAP took yet another important and strategic decision in the realm of distribution. Those days nationwide distribution/marketing was not the standard practice in the paint business. On the one side, there were the 1,000 odd small paint companies who, as a class, believed in marketing their paints in limited territories in and around their point of production. On the other side were the big companies, who as a class, believed in limiting their distribution to the big cities. In contrast to both these existing practices. AP voted for a nationwide distribution/marketing. It wanted to have an active presence throughout the country, in all the geographical zones, states and territories.