Rural marketing in Asian Paints
Rural marketing in Asian Paints
Presented by: chiranjeet bhatt Shashi tripathi Devendra mishra Arnikabaranwal Vamshi pyiya Rajlakshmi
CONTENTS Paint industry
Introduction
History
Vision & Mission
Business strategy
Marketing sales distribution
Supply chain
Supply Elements
Distribution channel
Business strategy: Rural marketing
Wide range of products of rural marketing
Distribute to rural areas
Tool for understanding rural markets
Paint industry estimated at Rs. 135bn.
Unorganized sector accounts to 35% of paint market.
Volume growth estimated at 15%.
India’s share in the world paint market is 0.6%.
Per capita consumption of paint in India is 1.2kg/annum.
Paint industry
Introduction• Started in 1942 by four entrepreneurs:
Champaklal choksey, Chimanlal choksey, Suryakant Dani and Arvind Vakil as
“ASIAN OIL & PAINTS COMPANY.”
• Within three years, their turnover reached 3.5 lacs.
• Started with a strategy “Going to where Consumer is”.
• In 1967, Asian paints became the 10th largest paint company in the world.
History
In 1942, a partnership was started by four entrepreneurs.Mr. Champaklal choksey, Mr. Chimanlal choksey, Mr. Suryakant Dani and
Mr. Arvind Vakil as “ASIAN OIL & PAINTS COMPANY.”
In 1945, the firm was turned into a company.
In 1957, a plant was set up at Bhandup, Mumbai.
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 with market share of 44%.
Vision & Mission
Vision:
“Asian Paints aims to become one of the top 5 Decorative Coatings companies worldwide 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:TO BE THE LARGEST DECORATIVE PAINT CO.
WORLDWIDE AND TO BE THE 5TH LARGEST PAINT MANUFACTURING CO. WORLDWIDE.
Business Strategy: Asian Paints
• AP has acquired short-term competitive advantages by using its distribution strength and logistical efficiency in order to raise the Cost of doing business for all its competitors to attain this advantage.
• The advantage is short-lived and ultimately imitable. • Moreover, AP has established such an extensive network that
getting incremental advantage would be very difficult. • Futuristic approach should be gaining competitive advantage
through channel control or occupying mind space.
Marketing, Sales & Distribution for rural marketing
• Rural Marketing Initiatives since 1960.• Distribution is one of the main strategy of Asian
Paints.• Advertising & Promotional Expenditure started in
1980s.• Advertising Methods- Radio, TVCs, Print, Internet, OOH, POP, Retail Outlets, Seminars, Workshops.
Supply chain of Asian Paints
Headquarters in Mumbai 4 Factories 18 Processing Centers 350 raw material and intermediate goods suppliers 140 Packing Material Vendors 6 Regional Distribution Centre 72 depots are integrated
Elements of Supply Chain
• 3000 SKU’S
• RAW MATER
IALS• PACKAGING
MATERIAL
• KEY SUCCESS FACTORS• FLEXIBLE
OPERATIONS
• LOWER OUTPUT
TIME• LOW DELIVERY
COST
• 4 PLANT
S• 6 RDC• 35
JOB WORK CENTRES
• 77 DEPO
TS• 15000 DEALER
S
• 500 INDUSTR
IAL CONSUM
ERS
ANKLESHWAR
PLANT
KASNA
PLANT
PATANCHERU
PLANTBHANDUP
Secunderabad based location
Delhi based location
Bangalore based location
Chennaibased
location
Ahmedabadbased
location
Kolkatabased
location
77DEPOT
CENTRES
ASIAN PAINTS
HEADQUARTERS
MUMBAI
Distribution Network
Business Strategy: Rural Market
• Rural segment not mature enough to appreciate service related offerings
• Strategy should be product related. • Customer up gradation strategy should be
adopted. It should be Implemented in two parts.
1. The penetration of the rural segment have to be achieved by offering a basic product well tailored to match the low willingness to pay of the rural consumer.
2. After basic penetration levels have been achieved the rural consumer can be offered a “higher ” range of products with a view to up grading the consumers.
Wide Range of Products for rural market
Asian Paints used the strategy of offering a wide range of products to push competitors to the side and become the leading Indian company in decorative paint.
Companies that have a larger selection available for clients or customers are more likely to retain those clients and customers than companies which are limited and do not have the color choices.
By offering a wide range of products, Asian Paints has been able to broaden its customer base.
Distribute to Rural Areas A big problem with asian paint company in India was a competitive
market in the large cities, where distribution was relatively easy and the risks were low.
Asian Paints started by working from the rural areas, where distribution was a challenge and where the other companies had overlooked.
Instead of focusing in cities and urban areas, Asian Paints focused on a national level and worked in until reaching the cities
Tools for understanding rural markets in asian paints
Understanding of geographical differentiation. Media reports and exports opinions Interaction with brand developers, marketer researcher
& advertising experts. Inputs from one’s one marketing team Visit to rural areas and knowledge from first- hand
interaction with rural consumer.
Thank You