Asian Paints

ASIAN PAINTS

The Gattu- Spirit of Colours

Overview • • • • • •

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

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: APIL M a rk e t S h a r e : D e c o r a tiv e p a in ts

8%

3% A s ia n P a in ts

5% 34%

6%

N e ro la c B e rg e r IC I J& K

12%

S h a lim a r O th e rs 13%

R a jd o o t 19%

Market Share: APIL M a rk e t S h a re : In d u s tria l P a in ts

8%

5%

16%

8%

A s ian P aints N erolac B erger IC I

9%

J& K 14%

40%

S halim ar O thers

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)

ANSOFF Matrix Existing Products

New Products

Market Penetration

Product Development

Market Development

Diversification

Existing Markets

New Markets

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 marketsAsia 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 13% 0%

US 23%

Germany Sweden

13%

France 19%

15% 17%

UK Japan India

THANK YOU