Professional Documents
Culture Documents
ON
ASIAN PAINTS LIMITE
SUBMITTED SUBMITTED
TO BY
Prof S.Balasubramanyam C.SOWBHAGYA
LAKSHMI
. M.B.A 1st year,Roll No:
89535
SCHOOL OF MANGEMENT
WARANGAL-506004
Asian Paints Limited(APL) is the market leader in the Indian paint industry,
commanding a market share of 38 per cent in decorative paints and 33 per cent
overall in the organised sector. Its annual sales turnover exceeds Rs. 1,300
crore, way ahead of all the competitors in the industry. In profits too, Asian
Paints is far ahead. Asian paints market leadership in the decorative paints
segments can be grasped correctly when we take note of the relative position of
the various players in the industry. Whereas Asian Paints has a market share of
38 per cent, its nearest rival, Goodlass Nerolac, commands a share of just 14 per
* Sourcing efficiencies
2. Background
1.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
2. MISSION
To provide paints as per market demand, ensuring desired level and quality of
customer (dealer) service, continued availability of the right product mix of
right quality at the right time.
CORE VALUES
• Commitment and Integrity in dealing with internal and external
customers
• A strong belief in individual ability and creating an environment in which
entrepreneurial spirit is encouraged
• Ownership and Responsibility
• To continuously Rejuvenate every living and working space of people
and bring joy to their lives
CORE PURPOSE
Year Events
APL’s whole business operation can be divided into two segments i.e. Paints
and Chemicals.
➢ Asian Paints is more than twice the size of its nearest competitor.
➢ strong in inventory control (18 processing centres, 350 raw material and
intermediate goods suppliers, 140 packing material vendors, 6 regional
distribution centres, 72 depots are integrated)
Human Resources :
➢ HIGH calibre
Information Technology :
7. Corporate factors :
➢ AWARDS
• Awarded the "Sword of Honour" by the British Safety Council for all the
paint plants in India. This award is considered as the pinnacle of
achievement in safety across the world.
• Forbes Global magazine, USA ranked Asian Paints amongst the 200 'Best
Small Companies of the world' in 2002 and 2003 and amongst the top 200
'Under a Billion Firms' of Asia in 2005.
• Ranked 24th amongst the top paint companies in the world by Coatings
World - Top Companies Report 2006.
• The Asset - one of Asia's leading financial magazine ranked Asian Paints
amongst the leading Indian companies in Corporate Governance in 2002 and
2005.
• Received the Ernst & Young "Entrepreneur of the Year - Manufacturing"
award in 2003
ENVIRONMENT AND SAETY :
➢ Asian Paints approaches the environment issue from the perspective of
waste minimisation and conservation of resources.
➢ It attempt is to reuse, recycle and eliminate waste, which results in less
and less waste being generated. Accordingly, the material losses in
manufacturing have been reduced substantially over the last few years.
➢ It has ISO 14001 certification for environment management standards.
➢ It has achieved 'zero industrial discharge' capability. This has been
achieved by the installation of upgraded effluent treatment facilities and
installation of reverse osmosis plants in conjunction with appropriate
recycling and reuse schemes. Our emulsion manufacturing facility has
QUALITY POLICY:
• We shall provide products and services that meet stated standards on
time, every time.
• We accept Zero Defect as a quality absolute, and shall design and operate
our quality system accordingly.
• We will organise our work practices to do a job right the first time, every
time.
• We are committed to continuous improvement in quality in all business
processes and shall track such improvement through measurable
indicators.
Strength :
weakness :
opportunity :
Threats :
➢ Growing industry and low capital intensive nature of business will attract
competition.
10.Market segmentation :
Asian Paints segment the market based on the usage :
BRAND POSITIONING
It is how the Asian paints enabled people to form a mental image for their
products in the customer’s mind. The strategies that they followed where as
follows,
Brand Image
The ways in which Asian Paints attempted to meet the customer’s psychological
and social needs.Indian paint industry is a low involvement industry. Till 1990s
people will just tell their budget for painting their house to their contractors.
And few customers will also mention the colour they need. During that period
Asian Paints analyzed the customer market and found that people where not
brand conscious but their concern was only the price of the paint. To meet this
needs of the customer
• Asian paints reduced the cost of the raw materials by backward integration in
order to reduce the cost of the paints
• Established an advertising strategy with created an emotional touch among the
customers
All these strategies helped them in creating a “Brand Image” for their products
among people and people started realizing the need for brand conscious in this
industry.
Umbrella Brand
In 2004 the company realized that though they have almost 20 brands only few
products like Apex emulsion, Royale interior emulsion, Apcolite and Touch
wood had high recall among the customers. Therefore they decided to promote
Brand Portfolio:
Asian Paints has embarked on an umbrella branding policy encompassing all its
products and services. The project includes a new visual identity that establishes
the company name as the dominant reason for purchase. Tractor, Royale, Utsav
and Apcolite names are no longer the focus on the can, rather consumers will be
buying "Asian Paints." Some key brand names are being retained for the time
being--to signal a position in the market rather than a product or surface. For
instance, Tractor will represent the "value for money" brands.
The immediate advantage is obvious. Rather than spread resources thinly across
brands and sub-brands, a company centric portfolio can synergize
communication efforts. To be competitive in a world of fragmentation and
rising costs, traditional mass media, such as television, can be prohibitively
costly.
With the umbrella-branding move, Asian Paints can also afford to move
forward from a mere functional platform for each individual product to the high
ground of a mood-based emotional dimension.
An Underlying Theme
At Asian Paints, the underlying theme is "har ghar kuchh kehta hai," or "every
home has something to say." The depth and texture visualized by this line goes
into the customer's basic psyche of owning a home, and will carry through
various messages emanating from the company, which is the leader in the
decorative coatings market in India.
11.ANSOFF Matrix
Asian Paint’s value for the customers was build through innovative package
(size),distribution , and communication .In 1970’s they decide to computerize
and network their 30 depots round the country ,to provide proper feedback of
market needs ,resulting in quick response to meet the needs.
They planned a new distribution structure , smaller packages and
computerized communication networks. Asian paints differentiation strategy
starts from market segment, distribution & packaging .
With 27% market share, they enjoyed double the market share than their
nearest competitor .In order to maintain this leadership position they have
drawn up the following strategy.
12.Future Plans :
The company plans to consolidate its dominant position in India by launching
new products in line with the market developments in both decorative paint and
industrial coating segments. The company is focusing on further improving the
operations of all of its subsidiaries in India and abroad and has already launched
E-Strides, an ERP initiative through which all the overseas ventures are being
covered for sharing of global knowledge, best practices and better control on
operations. The company’s objective is to be among the top three players in
each market where it is currently operating or plans to operate in the future
Since the firm has following good strategies ,but it must be careful about MNCs
coming for various segments.and there is aggression from existing palyers.
14.CONCLUSION
• An independent survey named Asian Paints to be one of the best
companies in Asia in paint industry and other.
• Business Today showed that the company was one of the most
transparent and a leader on the issue of innovative methods.
EXCELLENT MANAGEMENT SYSTEM
EFFECTIVE OPERATIONAL MANGEMENT
GOOD NUMBER OF SUPPLIERS AND DISTRIBUTORS.
LOTS OF AWARDS
No.1 PAINT COMPANY IN PAINT INDUSTRY
PLAYING LEADER ROLE IN PAINT INDUSTRY.
GIVING MORE IMPOTANCE FOR HUMAN POWER.
HIGHLY INNOVATED IN TECHNOLOGY.