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A PROJECT REPORT OF INDUSTRIAL MARKETING ON PAINTS INDUSTRY

Tolani Institute Of Management Studies, Adipur

These are our group member names:

JAY PUJARA(11060) KAUSHIK SANGHANI (11069) HARDIK RAJGOR(11061) DEVENDRA RANA(11064) AJAY VAGHASIYA(11090) BHAVIN VARA (11094)

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ASIAN PAINTS
Product

Product Name: Asian Paints PU Exterior Matt Description:Asian Paints PU Exterior is a two component Polyurethane wood finish. It has a Clear-Matt finish. Asian paints PU Exterior provides excellent weather resistance, light fastness & preserves natural beauty of wood on exteriors for years Cost Range: Premium Finish: Clear-High Gloss Availability: Across all Colour World Dealers. Products information sheet

Product Name: Asian Paints PU Interior Glossy Description: Asian Paints PU Interior Glossy is a two component Polyurethane wood finish.it forms a tough coating that offers excellent resistance to scratches & stains. It has a unique non-yellowing property that accentuates the natural beauty of wood & keeps the furniture looking good for years. Cost Range: Premium Finish: Clear-High Gloss Availability: Across all Colour World Dealers. Products information sheet

Product Name: Asian Paints PU Interior Matt

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Description:Asian Paints PU Interior Matt is a two component Polyurethane wood finish.it forms a tough coating that offers excellent resistance to scratches & stains. It has a unique non-yellowing property that accentuates the natural beauty of wood & keeps the furniture looking good for years. Cost Range: Premium Finish: Clear-Matt Availability: Across all Colour World Dealers. Products information sheet

Product Name: Asian Paints Melamyne Glossy Description: Asian Paints Melamyne Glossy is an acid curing solvent based 2 pack wood finishes. It is specifically formulated as a protective & decorative clear coating of wood .It protects the Interior wood for many years. It has got excellent resistance to staining from oils, foods & hot beverages. Cost Range: Mid-Range Finish: Clear-Glossy Availability: Across all Colour World Dealers. Products information sheet

Product Name: Asian Paints Melamyne Matt Description:Asian Paints Melamyne Matt is an acid curing solvent based 2 pack wood finish. It is specifically formulated as an protective & decorative clear coating of wood .It protects the Interior wood for many years. It has got excellent resistance to staining from oils, foods & hot beverages. Cost Range: Mid-Range Finish: Clear-Matt Availability: Across all Colour World Dealers. Products information sheet

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Product Name: Asian Paints Melamyne Gold Clear Glossy Description: Asian Paints Melamyne Gold Clear Glossy is an acid cured solvent based 2 pack wood finish. It imparts a clear finish. It not only protects the wood but retains the natural look for years. It has good hardness & has excellent resistance to staining form oils, food & hot beverages. Cost Range: Mid-Range Finish: Clear-Glossy Availability: Available in select Markets Products information sheet

Product Name: Asian Paints Touchwood - Glossy Description:Asian Paints Touchwood Interior-Gloss is a single pack Polyurethane modified wood finish. It is a brush able clear wood finish. It enhances the natural look of wood and offers good resistance to normal wear and tear. It is also available in matt variant. Cost Range: Economy Finish: Clear-Glossy Availability: Across all Colour World Dealers.

Product Name: Asian Paints Apex Ultima Description:Asian Paints Apex Ultima Advanced Anti Algal Weather Proof Emulsion is a water-based, modified acrylic, anti-algal, high performance exterior wall finish. It incorporates the latest state-of-the-art technology to provide longlasting exterior performance even in the most extreme tropical conditions of India. Its unique advanced anti algal chemistry ensures that exterior walls are provided with power-packed resistance against algae and fungi growth. It has very good dirt pick up resistance and dirt cleaning properties
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Cost Range: Premium Finish: Rich Sheen Availability: Across all Color World Dealers. Products information sheet Available color shades Product Name: Asian Paints Apex Description: Apex Weatherproof Exterior Emulsion is a water-based 100% acrylic, exterior wall finish. A high performance, long-lasting exterior paint specially formulated to withstand extreme tropical conditions of high rainfall, humidity and heat, Apex provides excellent resistance against the growth of algae and fungi on the walls. It offers excellent protection against alkali and UV degradation too. Cost Range: Mid-Range Finish: Sheen Availability: Across all Color World Dealers. Products information sheet Available color shades

Product Name: Asian Paints Dura cast Fine Tex Description:Asian Paints Dura cast Fine Tex is 100% acrylicd water based exterior product specially designed as an intermediate coating. It facilitates excellent adhesion of subsequent coats .Its unique texture pattern has distinctive appeal. 1.Asian Paint Dura cast Fine Tex is a roll able product which will provide opacity in single coat without any sagging 2.It serves as an undercoat which will not only provide protection but also decor for a variety of exterior & interior surfaces 3.It promotes adhesion of subsequent coats 3.It hides surface undulation & fine cracks Cost Range: Premium Finish: Fine texture Availability: Select Markets Products information sheet

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Product Name: Asian Paints Apex Dholpur Tex Description: Cost Range: Premium Finish: Dholpur Stone Finish Availability: Available through Asian Paints Project Sales Only. Products information sheet

Product Name: Asian Paints Dura castSwirltex Description: Cost Range: Premium Finish: Rich Sheen Availability: Across all Colour World Dealers. Products information sheet

Product Name: Asian Paints Apex Stretch Description: Asian Paints Apex Stretch Water Repellent Exterior Paint is a 100% acrylic, water-based hi-performance long-lasting exterior wall finish. This has an in built elasticity (Stretches more than 150% of its original size) which with adequate dry film thickness can bridge hairline cracks in the plaster up to 0.5mm. Due to the compactness Apex Stretch resists penetration of water caused by wind driven rain and is coupled with excellent anti-algal and anti-fungal properties. Cost Range: Premium Finish: Rich Sheen Availability: Available through Asian Paints Project Sales Only.

Industry and Company Analysis

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The Indian Paints Industry The Indian paints industry is valued at Rs. 66 billion with current demand estimated at 650,000 tons per annum. The organized sector accounts for 70% of the sales in India. The Indian paints industry is broadly split as follows:1) Decorative Paints (70%) 2) Industrial Paints (30%) Asian Paints is the overall market leader with 44% market share. Nerolac is the leader in The industrial paints sector and overall No. 2 with 20% share. Berger Paints and ICI Paints Are the other major competitors.

SWOT Analysis: Strength:

Market Leader with 55% Market Share. Strong in inventory control. Brand name has a 68 years experience. The prices strategy is oriented to middle & lower end Consumes.

Weakness:
Innovation in developing new product is inadequate. In Industrial Paints, Apex Paint has only 15% Market Share. Technology front in Industrial Paints.

Opportunities:
Competitors have gone in for Hi- technology compare to Apex Paint. Increasing market share in Industrial Paint sector.

Threats:
Domination of few foreign companies.
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Market, Business and Consumer Market Share

ICI-11% BERGER-17% NEROLEC-17% ASIAN PAINT-55%

Chart Title
ICI BERGER NEROLEC ASIAN PAINT

11% 17% 55% 17%

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Product Strategy
Product Level: 1. Basic Product : The basic need for paint is to protect the wall from cracks, leaks, make it look clean, make a proper ambience etc. 2. Expected Product : Decorative or Industrial paints further more like multi choice colors, oil based, Mat Finish, distemper, primer, wall paint, floor paint, metal paint, wood finish, powder coating, fresh coat etc. This level fulfills customers request & their need. 3. Augmented Product : Paint should be of acrylic type, washable, sunlight protected, leaks proof, long lasting chemical base so it dries fast, polished etc.

4. Potential Product : Here the customer future requirement is judge & tries to give any such kind of product so we can say a kind of Mass customization product. Some example can be like getting paints which are pearl kind shining, reflective, mirror view color etc.

Product Mix: Width of Product Mix: APLs product mix has a width of 3 major Product Lines: Decorative Paints

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Industrial Paints Chemicals

Length & Depth of Product Mix: APLs product mix has a length of Decorative Paints o Interior wall paints Distempers (4) Emulsions (4) Enamels o Exterior wall paints (9) o Metal finishes(4) o Wood finishes(10) Industrial paints o Protective coatings o Floor coatings o Road markings o Powder coatings o Automotive paints Chemicals o Phthalic Anhydride o Penraerythritol

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Product classification: Durability and Tangibility > Durable: This good is one type of tangible goods. If we use this paint for a single time, it runs long time. Consumer Goods classification > Shopping Goods: In shopping goods Asian paint is Homogeneous shopping goods because all the product of the Asian paint is same in quality but different in prices. Industrial goods Classification > Supplies and business services In this Asian paint follows Maintenance and repair services.

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Price Strategy
A Price Mix includes the following: Pricing Strategy Price List Discounts and Allowances Payment Period Credit Terms At APL: Company follows the principle providing the customer different kind of products and different price. The cost of the produce of Asian paint varies according different income level of the consumer. The product that is supplied to the rural real has low price range. Whereas in the urban sector some of the high price product circulates. In Decorative Segment: ROYALS, EMULSION (Rs.250-400) High Income Group & Middle Income Group

UTSAV, TRACTOR EMLSION (Rs.40-100)

Lower Income Group

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In Industrial Segment: ALL PRODUCTS Premium Price

Factors Affecting its Pricing Strategy: Prices Of Raw Materials Import Policies Global Crude Policies Govt. Policies Packaging Cost

PRICE RANGE

The various products and its price ranges are as follows: PRODUCT PRICE RANGE Price of 20 lts. Range from Asian Paints Apex Rs.3142.00 3328.00 Price of 20 lts. Ranges from

Asian Paints Ace

Rs.1761.00 Rs. 2059.00

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Asian Paints Tractor Emulsion

Price

of

20

lts.

Ranges

from

Rs.1435.00 Rs. 2047.00

Asian Paints Super Decoplast Plastic Price of 20 Ltd. ranges from Emulsion Paints Asian Paints Interior Wall Finish Matt (White) Asian Paints Interior Wall Finish Luster (White) Product Asian Paints Tractor Synthetic Rs.2239.00 Rs.2544.00

Price of 20 lts. Is Rs. 2244.00

Price of 20 lts. Is Rs.2311.00

Price range

Distemper Wall Finishes

Its price ranges from Rs.690 to 757

It range from Rs.4638- Rs,4975 The price for 20 lts. Ranges from Rs.4638- Rs.4975. Range of 20 lts of this product ranges from Rs.2648-Rs.3118

Asian Paints Royale

Asian Paints Premium Emulsion

Enamels Asian Paints Apcoute Premium Gloss For 20 lts the range varies from
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Enamel

Rs.2068 to Rs.2350. For 20 lts the range varies from Rs. 1458 to Rs.1836 For 20 lts the range varies from Rs.1425 to Rs.1652.

Asian Paints Gattu Synthetic Enamel

Asian Paints Utsav Enamel

Stainer, Aluminium Paints & Others Stainers For per bottle in plastic bottle of Apcolite Universal Stainers 200ml the price ranges from Rs.41Rs.77. For per bottle in plastic bottle of 20 ml its price is Rs.34. For per bottle in plastic bottle of 5 Asian Paints Wood Stains lts the range varies from Rs.1000Rs.1250. Aluminum Paints (Asian paints 3 mangoes Aluminum)

UtsavStainer

For 20 lts its price is Rs.2593

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Supply Chain Strategy

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Promotion Strategy

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AT APL: Asian paint follows good promotional strategy regarding their sales of the product. Their promotional strategies are made looking at the different category of the product and price associated with it. In urban areas Asian paint established colour world where the customer can enjoy the taste real colour while in rural sector it follow sales demonstration programme along with van displaying the product of Asian paint in the rural market.

The Promotional Mix of the company consists of:

Advertising Public Relations Sales Promotion External Communication Events and Exhibitions

PROMOTIONAL MIX Advertisement Sales promotion 33% 45%

ASIAN PAINTS

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MEDIA OF ADVERTISEMENT: Newspapers Magazines Television Direct Mail Outdoor Brouchers Internet AT APL:

Asian Paints advertising has created brand awareness, highlighted what the brand has to offer and has consistently brought all of it top-of-the-mind for the customer The ads are a reflection of the fact that people are a lot more involved in doing up their homes now.

Asian Paints has had several memorable advertising campaigns The colourful, almost lyrical Hargharkuchkehtahai... campaign, which was laun, is essentially about the relationship people have with their homes. One of their most successful campaigns has been the merawala green. It has a very subtle way of telling the people that all possible colors in all possible shades are available with them.

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Latest TV Ads

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PRINT ADS:

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At APL: Asian paint uses it sale promotion as key ingredient in its marketing campaign. It consists of various incentive designed to stimulate faster or greater purchase of their products. Sales promotion can broadly be divided into two categories: 1) Customer Promotion this section includes all the sales promotion activities directed towards the customers. Coupons - The Company gives coupons inside the paint pack so that could be taken by the customer as a gift from the company.

Gifts -There are a number of gifts and schemes on the larger packs. Free gifts are offered on packs of more than 10 kgs.

Schemes - The Company comes out with many different sales promotion schemes during the festival season, especially the DurgaPooja festival in Orissa and West Bengal.

Samples - Asian Paints Samplers of 200 ml paint packs in a range of shades that are available through an Asian Paints Colour World outlet are provided as samples

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2) Trade Promotion As part of the companys policy, huge emphasis is given on trade promotion. The dealers and contractors who are a part of the distribution chain are given special attention. The company comes up with several incentive schemes for the dealers.

Discount the company gives certain amount of discount to the dealer if he increases the sales of the company product.

Trade show the company always open its stall in the Industry trade so that it products would be promoted globally. Others -The most popular schemes include cash discounts, foreign trips, and gifts.

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NEROLAC PAINTS
COMPANY PROFILE:

BACKGROUND: GNPL was established in 1920, by Tata stable in collaboration with Goodlass of UK, apart of the Cooksons group. The Tatas had a 40% stake in the Company; through group company Forbes Gokak Ltd. In 1983, the Company entered into a technical cum financial collaboration with Kansai Paints , Japan , Kansai who currently has a stake of 40% is the other major shareholder .Manufacturing activities began with the establishment of a paints unit at Parel in 1920. In 1971 another plant was established pigments, one of the major ingredients ion paints manufacture pigments, one of the major ingredients in paints manufacture pigments, one of the major ingredients in paint manufacture. In FY92, the company made a right issue, for par funding its new Kanpur plant, which was commissioned in August 93 .Last year Kansai bought over the stake of Tatas , thus making GNPL its subsidiary. GNPL , The Indian arm of Jap[[an based Kansai paints , is one of the leading players in the Indian paints market with presence in decorative paints as well as industrial paints , coatings , varnishes , enamels etc. it is the domestic leader in industrial paints and has virtually half of the auto paints marker. Paints sector can be segment as decorative paints and industrial paints. While both are characterized by low capital costs and high working capital, industrial paints require special technology. Capacities are normally set up close to markets, so as to be able to offer a multitude of shades and colors to customers. Brand

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building and dealer network act as effective entry barriers. Demand is seasonal in nature low during monsoon, high during festive seasons. Domestic pains sector, dominated by decorative paints (70%) , is expected to undergo a structural shift towards industrial paints , as cross-border tie-ups in industrial are becoming order of the day. Most organized sector players are established with well- entrenched distribution network and established brands. Threat of global competition is minimal .The under developer industrial paints market holds maximum growth potential albeit on a lower base .In future the industry will witness brand competition, product innovations and superior distribution networks. GNPL management has been focused on paints business in the lat three decades .GNP has a network of 10700 dealers &550 computerized color-dispensing machines. With multi location manufacturing facilities helping it to have a very wide geographic reach, it has an enviable leadership in Automotive OEM. GNPLs prospects are inextricable linked to those of the user sectors in automobiles and other industrial sectors .The two subsidiary companies primarily manufacture paints & enamels for parent company on contract basis .GNPL has set a target for to achieve a sales turnover of Rs 12bn and a market share of 25% 2002-03

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Product

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Inte
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rior

Exterior

Woods

Metals

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Industry and Company Analysis

Kansai Nerolac Paints was at first known as GoodlassNerolac Paints. The Kansai Nerolac Paints Ltd produces various kinds of products that range from industrial sophisticated coatings for the industries to architectural coatings for hospitals, homes, and offices. Kansai Nerolac Paints Company has manufacturing units situated in Vatva, LoteParshuram, Jainpur, Bawal, and Perungudi. The total production capacity of the plants of the company is around 161,100 TPA and all the plants are technologically advanced and comparable to most state-of-the-art plants in the world. Kansai Nerolac Paints has a very wide network of more than 11,000 dealers spread all over the country.

Kansai Nerolac Paints is a market leader in the sector of automotive segment where it supplies more than 90% of the required original equipment. Kansai Nerolac Paints is the 2nd biggest company in the coating sector in India where it has more than a 20% market share. The company has entered into collaboration with OshimaKogya Company, Japan and E.I. Du-Pont de Nemours & Company Inc., USA for the manufacture of various innovative items and a brand new product line. The total income of the Kansai Nerolac Paints Company amounted to ` 2732.9 million in 2005-2006 which shot up to ` 3270 million by 2006-2007. The net profit of the company amounted to ` 271.00 million in 2005-2006 and the next year the net profit of the company increased to ` 324.7 million. Kansai Nerolac Paints Ltd. is planning to expand by setting up a paint facility at Hosur with an investment of around ` 690 million.

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Latest Financial Figures ET 500 Rank(2011) Industry Turnover Profit after Tax(PAT) MCAP (Market Capitalization) Assets

(Figures in Rs. Crores) 299 Paints/Varnishes 2162.19 205.98 4549.15 998.65

Kansai Nerolac Paints prides itself on its organizational strengths such as its values, vision, R&D, experience, strategic alliances, marketing skills, and its extensive distribution network. The various plants of Kansai Nerolac Paints have been certified by agencies such as BVQI and Intertek, ISO 14000, ISO 9000 2000, OHSAS 18000 are just some of the certifications that Kansai Nerolac Paints has received for its efficiencies in work processes and standards. Kansai Nerolac Paints has become one of the topmost companies in the coating sector in India due to its quality of products which are the best in the market. The company has a presence in several Indian states such as West Bengal, Assam, Gujarat, Haryana, U.P, M.P, and Maharashtra. Kansai Nerolac Paints is headed by Mr. Jamshed J. Irani who is the chairman of the company. Mr. HarishchandraBharukha is the managing director of Kansai Nerolac Paints which employs more than 2000 people.

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Market, Business and Consumer

The Rs 760-crore GoodlassNerolac group, the second largest paint entity in India after Asian Paints and market leader in the industrial paints segment, is painting a fresh coat of distribution and promotional strategy to bolster its presence in the decorative paints market. The Rs 2,800-crore decorative paints segment, which addresses domestic retail consumers, includes products like acrylic and oil-bound distempers, enamels and plastic emulsions. The decorative segment in India accounts for around 70 per cent of the overall paints market unlike in the mature markets where the ratio of industrial paints (like paints for automobiles) vis-a-vis decorative paints is 50:50. GoodlassNerolac, which has a market share of around 45 per cent in the industrial segment and 15 per cent in the decorative segment, has over the last two years focused on the decorative segment. As such its advertising and marketing spend has shot up from Rs 11 crore in 2000-01 to Rs 23 crore in 2001-02 and is expected to touch Rs 25 crore in the current fiscal. The company plans to focus its marketing and distribution efforts towards markets in West, East and the North-East.? The company also plans to expand its ColorScape project that involves the use of colour dispensing machines. GoodlassNerolac has plans to develop a ColorScape-installed network of 2,000 retail outlets over the next one year, up from 1,700 outlets as of date. The ColorScape network accounts for around 40 per cent of the company's retail sales. The company deals directly with around 11,000 dealers who service around one lakh retail outlets across the country. Plans are also afoot to cover 50 retailers under the Magic Eye programme up from 15 currently. ''Magic Eye' is a colour measurement device capable of detecting 50 lakh shades and preparing any shade instantly.

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Market Share
The paint industry worldwide is classified into 2 segments viz. decorative and industrial segment in India constitutes nearly 70% of the market whereas the scenario is just the reverse in the developed countries. Decorative Segment is dominated by the unorganized sector which now accounts for 70% of the total paint production as against 75% three to four ago. The unorganized sector has an advantage over the organized sector since it is fully exempted from the 20% excise duty and other government levies. In the organized sector Asian is the market share of 31% followed by GoodlassNerolac with a share of 16% Latest Developments: New foreign equity is getting highly attracted in this sector. Kansai Paints acquired controlling interest in GoodlassNerolac - the second largest Indian paint company. There are talks about other companies also being taken over by foreign companies. Some foreign companies have actually opened shops in India

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Organized Sector Market Shares Value:

Asian Paints GoodlassNerolac Berger Paints ICI Jenson & Nicholson Shalimar Others

37% 15.9% 13.8% 11% 5.7% 4% 12%

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Paint Market Of India

4% 6% 11% 14% 16% 12% 37%

Asian Paints ICI Others

Goodlass Nerolac Jenson & Nicholson

Berger Paints Shalimar

Sector wise contribution:

Architectural Industrial
Architectural Segment
19% 6% 6% 8% 11%
Asian Paints ICI Others

70% 30%

37% z 13%

Goodlass Nerolac Jenson & Nicholson

Berger Paints Shalimar

Industrial Composition
8% 8% 8% 14% 42% 6% 14%

Asian Paints Others

Goodlass Nerolac

ICI Jenson & Nicholson Tolani Institute Of Management Studies, Adipur

Berger Paints Shalimar

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Product Strategy

The Rs 480 croreGoodlassNerolac became the last of the big pain major to jump into the instant shades market with the launch of Nerolaccolour scape, an integrated colour matching system designed to be a one-stop colour shop. Colour Scape were launched across India by April of year 1998 , initiated by Jenson & Nicholsons Instacolor in the late 1996 , followed by Berger Paints colour Bank and ICIs Colour solutions , tinting machines have become the marketing stunt for all paint majors. Nerolacs move foloes soon after Asian Paints launched Color world . Asian Paints launched Colour world earlier in January in the same year .NerolacColour Scape was launched by establishing what the company calls in the NerolacColourClub , an interactive platform aimed at benefiting both the dealers and the company as soon as the dealer opts to set a Colour Scape shop, he will become a member of the NerolacColour Club. Colour Scape costs the dealer Rs 5.95 lacs , compared with Asian Paints Colour World which costs 6.5 lakh and Jenson and Nicholson s Rs 8 lakh. Dealers have the benefit to avail it through several installment schemes with a down payment of minimum of Rs 1 lakh. The company was aware that such projects had proved expensive for companies like J&N, and will restrain its marketing efforts to potentially viable market. Hence, it did not set itself an installation target. Though initial responses from the dealers in Mumbai were encouraging, they did not offer it indiscriminately to every dealer who opted for it, and instead strategically placed these kind of shops in accordance with the location and the quantam of sales of the particular dealer. Both these aspects , in
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addition with some other minor aspects like the potential of the location , even if the sales at that point of time were not up to the mark, were given their due importance. ColourScape , however , is nor just a colour dispensing machine , it has several added features by which the company expects to change the way paints are sold in this county. While the customer will have access to over 1.05 shades and can see how their rooms will look with the help of a visualisersystem , the dealer will be able to tip them on the variety of paints , This can prove to be a major marketing strategy for the Nerolac paints , considering the fact that Paints purchase is more of purchases which comes under the category of emotional purchases and customers are not very particular about the color and the type . So , this kind of strategy at the point of purchase convinces the customer to become a consumer by enabling him to see exactly what his dram home will look like after the painting . The number two paint manufacture GooldlassNerolac Paints (GNPL) has not seen the semblance of a bull in the last two years .Even when the Sensex has risen 25 per cent since May 1999 ,GNPL has emained range bound between Rs 140 and Rs 160 .In terms of discounting the scrip trades at a price-earning ratio of 10.1 against Asian paints 17.1. The bullishness for GNPL stems from the fact hat its major presence is in industrial paints , especially automotive paints, and it hopes the they will bring good times to it. The growth of the paints industry is directly linked to the GDP and the industrial paints segment is linked to the automobile sector .The industrial paints segment account for 30 per cent of the Rs 2700 crore organized market. Industrial paints are technologically intensive but GNPL is well positioned due to its Japanese
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technical collaborators Kansai and Nihon Tokushu Toryo. Kansai also hold a 36 per cent stake in stake in GNPL while Forbes Gokak, a Tata company has a 30 Per cent stake. The company has three manufacturing facilities at parel in Mumbai , Kanpur in Uttar Pradesh and LoteParshuram is Maharashtra .GNPL manufactures paints , varnishes and synthetic enamels and pigments .The company has been conscious enough to maintain a strong product profile through regular brand launches . Its brand are Nerolac, Excel, Llscapes and Pearl .It spends nearly Rs9-10crore a year on advertising and sales promotion and this has helped it to expand its presence in the decorative segment also, besides being a leader in the industrial segment. GNPL is the number one player in industrial paints with a 43 per cent share , far ahead of Asian Paints at 15-17 per cent and ICI with 9 per cent .It account for 90 per cent of Marutis requirement which in turn contributes 8-10 per cent to the GNPL turnover .Maruti sales have risen 17.2 per cent for quarter April June 1999 and in June itself .They were up 27 per cent over previous month .Apart from automobiles the white good industrial paints . This industry is also expected to do well with the economy. GNPL has also signed agreements with Mitsubishi Honda and Telco Indica .With the entry of new players , GNPL s positions will be consolidated .GNPL has also enter into a strategic tie-up with Dupont o US for the OEM segment to cater to the Us car manufacturers in India .This should give GNPL an added advantage to combat Asian Paints PPG(50:50) in the industrial paints segment . Despite being a late entrant in the decorative segment, GNPL: has become the number two player in three years. Nearly 50 per cent of sales comes from

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decorative and the company has been an aggressive advertiser. Paints demand from the housing sector will also o\improve with the economy. Though the paint industry is raw material and working capital intensive ,GNPL is strongly positioned with neatly Rs 40 crore plus in the form of investments and cash .Besides an expanded capacity and a strong domestic network coupled with a recovery in demand entails a good future .GNPL was not able to appreciate in this bull run while Asian Paints drastically rebounded to Rs 363 from Rs 197 in may 1999! Second rung paint stock should see a bull run led by GoodlassNerolac . GoodlassNerolac , now a subsidiary of Kansa Paint of Japan is going for a brand consolidation strategy and reduce the number of brand to 6-7 from its portfolio of 17 . Senior company officials say the brands that would be retained are Alscapes .Nerolac ,Excell , suraksha , Cloudscapes and Goodygold . The company is also planning an aggressive foray into the rural market with its brand Good- Gold .This will be a relatively cheaper and afforded brand as compared to the other brand . Rural market in India has a hug potential which is yet to be tapped , company officials said. GoodllassNerolac is also looking also growing through the acquisition route, but the exact plans cannot be ascertained due to obvious reasons. We have kept our doors open for that possibility, was the only reply that came from the senior official that was visited. GoodlassNerolac, has, as already stated, three manufacturing units in the Western region of the country and one each in the North and south. And, to enhance their presence in the eastern region, the company will be concentrating on indirect distribution channel.
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GoodlassNerolac, Which is the leading player in industrial paints, has decided to increase, its focus on the decorative paints segment as well, where it trails Asian Paints. In the decorative paints segment, it has a share of 14 per cent and plans to increase it to percent. Currently the company ranks second in the decorative paints. In order to grow in the decorative market the company in under taking other initiative like increasing its advertisement budget from Rs 12 crores to Rs 18 crores.

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Supply Chain Strategy

Supply Chain Layout

Over 2000 SKUs
Five Manufacturing Locations

Ten Regional Distribution Centers

Over 500 RMs

Sixty Six Sales locations

Supply chain management must address the following problems: Distribution Network Configuration: Number and location of suppliers, production facilities, distribution centers, warehouses and customers. Distribution Strategy: Centralized versus decentralized, direct shipment, Cross docking, pull or push strategies, third party logistics. Information: Integrate systems and processes through the supply chain to share valuable information, including demand signals, forecasts, inventory and transportation etc.

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Inventory Management: Quantity and location of inventory including raw materials, work-in-process and finished goods. Supply chain execution is managing and co ordinating the movement of materials information and funds accross the supply chain. The flow is bi directional.

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Promotion Strategy

Nerolac launches new promotion scheme Kansai Nerolac Paints Limited, one of the leading players in the Indian paint industry has launched a new ad campaign for its new consumer promotion scheme. This scheme is to promote their premium brand Nerolac Impression 24 Carat in interior paint category and Nerolac Excel Total in exterior paint category in Delhi, Punjab and Gujarat This new ad is a print campaign supported by consumer scheme and has been introduced to unify the benefits of the 2 brands ?Nerolac Impressions (interior paints), that stands for trendsetting style &Nerolac Excel Total (exterior paints) that gives homes total protection from heat, water &dust ?to create the platform of style with substance, while highlighting the consumer offer. The tagline ?Style that makes a lasting impression? elucidates long lasting benefits of both the brands. Since the consumer scheme has been launched in Delhi, Punjab & Gujarat the body copy of the ad is in Hindi & Gujarati.

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This year, the brand decided to make another high profile attempt using none other than Shah Rukh Khan to endorse the brand. The brand is now running lot of TVCs featuring the new celebrity ambassador. In a significant move the brand has repositioned itself. In tune with the global positioning of its parent Kansai Paints, Nerolac also adopted the positioning based on environment -friendly attribute. The new campaign positions Nerolac as a healthy paint with no lead content and Eco-clean property. Shah Rukh sells this idea through the TVCs

Watch the Ad here: Nerolac So far Nerolac's major marketing issue was its inability to create a meaningful differentiation from Asian Paints. While Asian Paints established itself on the Color platform,Nerolac was confused about its own strength. This was reflected in most of their campaigns. Although the campaigns were well made, these ads did not reflect any image for Nerolac. Now the brand seems to focus on the Environment Friendly Healthy Paint as its core positioning platform. The question is whether this positioning is important and meaningful for the consumers. It is true that Indian consumers are aware of the harmful effects of paint fumes. But this issue happens only during paining and after the painting is done, the harmful effects are hardly noticed. So will
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a focus on the Healthy Paint attribute be considered a powerful differentiator?

Tolani Institute Of Management Studies, Adipur