INTRODUCTION

Indian Economy is dramatically changing the dramatic changes are

the result of hard realities. Too much of protection for too long a time has

hindered the economic development rather than facilitating it. The

immediate fallout could be seen in public sector units in the country.

Their losses got accumulated and became a drain of the National

Exchequer. Too much of regulation for too long time on private sector

had also proved to be disastrous.

All these regulations, curbs and restrictions has stifled the

enterprising spirit and discouraged healthy competition among the in

industrialists. The balance of payments position became so unmanageable

that even the international lending bodies like International Monetary

Fund and World Bank refuse additional finance for India unless Indian

economy is revamped.

Since than a series of economy policies were revamped. There was

a greater emphasis on Marketing. After liberalization the changed in

economic scenario India offers excellent marketing opportunities are

created for aspiring Entrepreneurs.

Indian markets are now “Buyers Markets”. Therefore the marketers

has to resign suitable. Strategies to stay successful in the market. Their

success depends on their ability to cater.

1
 OBJECTIVES

PRIMARY OBJECTIVES:

 To find out which factors has got influence on customer awareness in

Paints Industry.

 To know the awareness level of “Asian Paints” customers as well as

other customers.

SECONDARY OBJECTIVES:

 To identify the customer requirements.

 To analyze the customers perception regarding the preference of Asian

Paint Products.

2
 NEED FOR STUDY

The main objective of the study is to know the Customer awareness

with respect to Asian Paints.

The need for this can be explained if one knows the importance of

understanding the Customer awareness. So in the following paragraph

the Customer awareness and its role in the success of an organization has

been explained.

Customer awareness are taken up to boost the sales of a product by

the company. A company having production capabilities may produce a

product and price is according and sell through the dealers and retailers

by its distribution network.

Considering the fact that consumer according to the time need,

want and the purchasing power, it depends on the product, therefore, the

marketers rely on the marketing mix to cater to the customers efficiently

and effectively.

So the companies producing the product, pricing and planning

them have to care fully look into the minds of the consumers and place the

products favorably in the minds of the consumers.

3
 METHODOLOGY

In order to realize the study the objectives a considerably volume of

both primary and secondary data is needed. It has been therefore found

necessary to conduct an Interview schedule for gathering relevant data

from the users.

Primary Data has been collected from the industrial buyer during

May – June 2004 with the help of a structured Questionnaire with

stratified sample of 65 respondents have been taken for carrying out the

study.

Secondary Data the information regarding the Indian paint industry

has been drawn from various published sources. They include

Professional business Journals and Magazines, besides the News papers.

The data relating to Asian Paints has been collected from company

records.

This study is necessarily based on the limited knowledge and little

practical exposure the constraints of resources and time have further

imposed limits to the study boundaries.

4
 LIMITATIONS

 The respondents of the questionnaire are very busty and could not

afford more time to answer. The average time to response was 5-6

minutes only.

 A limited sample size of 65 customers was considered because of time

constraint. An assumption is made that the sample represents the

whole population. It will not carry the total reflection of the copier

market. Total sample size is comparatively less to represent the entire

population.

 A time period of only 45 days was allowed for the completion of this

product. So considering all the consumers for the study was not

possible.

 The data was of primary nature. So the degree biases were relatively

high as the sample was randomly selected.

 Study restricted to geographical territory of Visakhapatnam city only.

5
 PAINTS – THE COLOUR OF OUR LIFE

(A PROFILE)

What is Paint?

Basically, Paint is a mixture of four elements.

 Solvents

 Binders

 Pigments

 Additives

 Solvents

Which give a paint its flow, and enable it to be brushed on a surface

Binders

Which hold the paint together, as well bind it to the surface that is

painted, thus giving its property of durability.

Pigments

Which give paint its colour and opacity.

Additives

Which give paint special properties such as resistance to fungus, rust ..etc.,

6
Paints can be distinguished as

EMULSIONS :

These are water based paints Acrylic Emulsions are extremely

durable and give wall silky and smooth finish. They washable and easy to

maintain.

Eg: Asian Paints offers three brands to choose.

Premium Apcolite Royal Acrylic Emulsion.

Medium Apcolite Super Acrylic Emulsion.

Economical Super Decoplast.

DISTEMPERS:

These are also water based paints but their binders may be very

natural or synthetic. Distempers are economically priced, they offer good

value for money as they are durable.

Eg: Asian Paints has

Tractor Acrylic washable Distemper.

Tractor washable Synthetic Distemper.

7
LUSTER AND MATT FINISHES:

These are solvent based paints are extremely durable. The former

gives a gloss egg shell finish while matt finishes have a dead matt finish.

Eg: Asian Paint has

 Apcolite luster finish.

 Apcolite synthetic matt finish.

EXTERIOR FINISHES:

For exterior cement paint is mainly used as it is economical. It also

has a reasonable life if in areas where monsoon is not too heavy.

Eg: Gattu cem.

ENAMELS:

It provide the best coating for metals they are tough, durable, glossy

in finish. The smooth shiny look lasts for years. Enamels protect from

corrosioin.

Eg:

 Apcolite Synthetic Enamel.

 # mangoes Synthetic Enamel.

8
PRIMERS:

Primers are usually the first coat applied on a surface it is meant to

prepare the surface for painting. It offers protection to the paint.

Eg:

 Asian Metal Primer.

 Woodorite Primer.

FILLERS / PUTTIES:

It is used to fill up the crises or any unevenness to ensure that the

finish coat gives a smooth surface.

AUTOACQUER:

It is NITRO CELLULOSE paint for auto finishing.

Eg:

 Krilo

 Apca

 Aspa

9
10
 PAINT INDUSTRY IN INDIA

Foundation for paint was laid in the year 1902 with the setting up of

Shalimar Paints in Calcutta. It was during the and after the World War II.

That large number of paint manufacturing units was set up in India. Since

then the Indian paint industry has made substantial progress.

The paint industry has come to the recognition as an important

sector in the national economy in producing industrial coating and

decorative paints. Decorative paints available in wide range of

combination account for 70% of the coatings total production. While

industrial paints share the balance of 30%. This rate is diametrically

opposite to the trend in the industrialized countries where industrial

paints account for 70% and Decorative paints for the balance of 30%.

The Indian paint industry is at the crossroads. All most all-major

paint companies have expanded or are expanding its capacity

substantially. With demand rising slowly competition is becoming

increasingly intense.

The decreasing growth rate has made the paint companies to woo

customers aggressively. The customer is being offered 10% rebate in most

products, Unheard in the industry so far. Most companies have increased

their discounts to their dealers to unimaginable level dealers are offered

higher credit levels, flexibility in payment, foreign trips for selling even

low value products and the like. The increasing competition to offer

11
solutions through technology has made all the paint make as offer a large

number of shades through computerized colour dispensing system.

IMPORTANCE

Generally paints and coatings are applied to products to protect

them from

 Emnvironmental Corrosion.

 Protection of Food and Beverages in metal cans.

 Improve aesthetic appeal.

CATEGORIES

Paints are classified into two broad categories.

 Decorative or Architectural finish paints.

 Industrial Paints.

Decorative or Architectural finish paints:

This market can be further segmented on the basis of the following

 Customer types : Institutional / retail or domestic use

 Product features / categories: Distempers, Enamels, emulsions etc.

 Price: Premium, Medium, Economy etc.,

12
Industrial Paints:

This market can be further divided into the following four sub

segments depending on the end user profile.

 Automotive paints.

 Marine Paints.

 Powder Paints

 High Performance coatings

 Other general industrial finishes.

In India, decorative paints dominate with the share of 75% of the

total paints consumed while in developed countries Industrial paints have

a share of 50 – 70%.

Decorative Paints used in buildings include distempers, emulsions,

synthetic Enamels, Cement pains and Wood finishes. Interior Paints

makeup of the segment. The rest is made up of exterior paints mainly

cement paints.

PLAYERS IN DECORATIVE PAINTS

In decorative paints Asian Paints dominates with a 37% market

share and number two player Goodlass Nerolac has a market share of

14%. These paints are by medium technology and hence the unorganized

13
sector has a major share. A recent estimate that over 2400 companies are

in unorganized sector.

INDUSTRIAL PAINTS

Industrial paints include automotive paints (original auto

manufactures and refinishes), Powder coatings marine paints high

performance coatings and special purpose finishes. These are technology

intensive and hence the presence of the unorganized sector is very limited.

In fact, there is no presence of the unorganized sector in the original

paints. This can be explained by the fact that to bag an order from

automobile manufacturer collaboration with a well known foreign paint

company is a must Goodlass Nerolac is an un disputed leader n industrial

paint.

Till early 90’s paints were treated a s luxury items by the

governments this resulted in higher excise duty and higher end prices,

leading low consumption of paints in India. However the progressive

reduction of the excise duty from 40% in 93-94 to 18% in 96-97, the

companies have passed on the duty reductions as price cuts.

However the per capita consumption of India is still a merge of .5

kg compared to 26 kg in U.S and 1.2 kg in Thailand.

14
 As already mentioned paints were viewed as luxury item by many

even today. Their productive value is not under stood and repainting is

limited and if ever done is once in 7 – 10 years. The government interest

to protect all surfaces is also low and the loss due to corrosion is estimated

to be over Rs. 5000 crores p.a. By the central Electro chemical Research

institute at Karaikad, Tamilnadu.

With a view to emphasing the importance of protection through

painting the Indian paints Association (IPA) had brought slogan in 1995

“Paint and Protect”. This slogan is popularized through various

communications however a lot needs to be done to reach the millions of

customers effectively.

DEVELOPMENTS IN VARIOUS SEGMENTS

Two significant developments took place in the last three years in

the decorative paints segment.

 Advent of Computerized Colour Dispenser

 Sudden increase of Exterior Market.

Colour Dispenser:

Traditionally companies used to supply pre mixed shades to dealers

who in turn offered to their customers.

Asian Paints brought in the manual colour dispensing concept in

1998 and offered 151 shades through it. This was the first salvo in offering

15
in variety of shades. This concept took off and Asian Paints went about

establishing 2000 colour corners which would stock the 151 shades.

Additional shading requirements were catered by providing colours as

per the demand after mixing the bases with strainers through colour

dipencer other companies followed it soon and Goodlass Nerolac

introduce ed 301 shades under the same concept.

In 1995 Jhenson and Nichelson, the 5th ranking company in the

industry, pioneered the concept of CCD. And started installing them at

dealer shops with the support of TIKKURILA of FINLAND.

The concept is similar to that of the manual colour dispenser except

that the dispensing is automatic pre decided formula registered in the

computer and the shades are offered instantly shops to customers.

Today Berger Paints, is the 2nd Company to enter this system

offering 5000 shades a clear indication of the trend. In the year 1997-98

has seen the introduction of the concept by the two giants. Asian Paints

and Nerolac. Today around 1000 dealer shops are installed this concept.

CCD or it is called “AUTO COLOUR DISOENCER” have helped the

dealers to reduced their inventories offer a large variety of shades

instantly, consistently and accurately. Consumer have also benefited by

this concept as the shopping environment has changed dramatically with

the advent of CCD.

EXTERIOR MARKET

16
 The second development is the introduction of the 100% Acrylic

Exterior Paints and the focus of major companies on the Exterior Paints

market. Traditionally, the exterior paint market was catered to by

KILLICK NIXON and several other small players. The main offered were

cement paints in India. But the real change has be thought by Asian Paint

through APEX – its 100% exterior paint market has started growing

exponentially. In 1999 Nerolac introduced EXCEL in the category and

offered qualitative product at low material cost. Both Apex and Excel

have propelled the exterior paints growth by over 60% in 2002 and the

trend is expected to continue for at least of three more years.

A major development in 1997-98 was the “Pay by scooter / car”

concept by companies. As practiced in western countries, in India also the

concept of taking care of the complete painting job has been under taken

by paint companies. Goodlass Nerolac has commenced this concept with

Mahindra cars by managing the entire paint shop and being paint on the

basis of per painted cars. Asian Paints also followed it up with a similar

tie up with LML for its scooters.

17
POWDER COATINGS

The other “industrolycoat powers”, in collaboration with VAISPAR

CORPORATION of U.S.

Higher performance coatings is another rapidly growing segment

which is used at fertilizer / sugar plants, airports, big construction

projects, Berger, Asian., Nerolac dominates this segment due to their

international collaborations and high quality range of products.

PAINTS DEFINED

Technically paints can be defined as a homogenous fluid made from

our ingredients namely pigments, resins, solvents and additives which the

raw materials can be classified into four categories. A typical paint

formation consists of over 500 input materials.

However the key raw materials are

Pigment:- Titanium dioxid

Resins:- PAN,Pentaerythrill

Together these constitute 40-50% of the total raw material

dependent on the category of paints.

18
 To conclude the following are the critical factors in success in

decorative and industrial paints.

DECORATIVE PAINTS

 Managing logistics

 Managing input costs

 Focus on rural markets and viewers segments

 Strong marketing and brand equity

 Quality and technology

INDUSTRIAL PAINTS

 International technology

 Consistent quality

 Customers service

 Competitive price

 Continuous innovation.

PACKAGING

Asian Paints has four production plants and each has four distinct

packing pattern. So that the work of the godown in charge becomes easier

in recognizing the tins from which plant they have come.

The packing is as follows

Ankleshwar

19
 Bhandup

Patancheru

Kasna

And the products are packed as

Enamels 20, 10, 4, 1 liters

500, 200, 100, 50 ml

Distemper 20, 10, 5, 2, 1 kgs.

Emulsions 20, 10, 4, 1 liters.

PLANT IDENTIFICATION

Plant identification marks for cartoons, drums, tins are given below.

Bhandup plant

1. All liter number will be four digit starting from 1001.

2. Alphabets B as label indicate Bhandup plant

3. Drums will not have any brands on the top side

4. Cartoons will not be Blue in colour.

Ankleshwar plant

 All liter number will be four digit starting from 2001.

20
  Alphabets A as label indicate Ankleshwar plant

 Drums have one brand on the top side

 Cartoons will red in colour.

Patacncheru plant

a. All liter number will be four digit starting from 3001.

a. Alphabets p as label indicate Patacncheru plant

b. Drums have two brands on the top, one dotted line.

c. Cartoons green in colour.

Kasna plant

1`. All liter number will be four digit starting from4001.

2. Alphabets K as label indicate Kisna plant

3. Drums have one brand with three dots with nine alternatives.

4. Cartoons are brown in colour.

PRICING

In the narrowest sense price is the amount of money charged for a

product or service .

21
 Price has ben the major factor in affecting buyer choice. This is still

true in poorer nations, among poorer groups and with commodity

products. However non price factors have become more important in

buyer choice behavior in recent decades.

With respect to Asian Paints there are two price lists.

 Dealers price list

 Maximum price list.

Dealer price list:

It is applicable to dealers and consists of their trade discount of 3%,

additional trade discount of 3%, cash discount 5%.

If written in equation

DPL = trade discount 3%

+ Additional trade discount of 3%

+ Cash discount of 5%.

Maximum Price List:

MPL = consists of dealers price list – trade discount 3% - additional trade

discount 3% - cash discount 5% + local tax.

22
 Those dealers who has regular payment of performance are

benefited largely by cash discount and those dealers whose payment is not

regular do not get products.

The company operates at a very low over due outstanding rate.

Thus it can be said that the company has very stringent rules regarding

the credit given to the dealers.

PROMOTION

Modern marketing call for more than just developing a good

product pricing attractively and making it available to the target

customers companies also must communicate to their customers and what

they communicate should not be left to chance.

Asian Paints promotional activities consists of advertisements,

schemes, point of purchase, painters schemes.

The advertisement activities are given to OGILVY AND MATHER

who has designed the advertisements as shown and partly by contract ad

agency.

TARGET GROUP

According to the information provided by the company personnel

the target group differs from product to product.

Eg:

23
Utsav - rural (chunna and distemper)

Distemper - middle income group

Royal - higher income group

24
 FACTORS BEHIND SUCCESS OF ASIAN PAINTS

Asian paints was founded in 1942 as a small Indian partnership firm

at a time when the paint industry was fiercely competitive. Two

marketing breakthroughs propelled the company to leap into the

decorative segment. The first was the introduction of smaller sized cans

into the market where the paint was sold in bulk. The second was a dealer

expansion thrust to reach out to end customers and offering them quality

paints which were hitherto available to them in the urban areas only.

These two steps meant going beyond selling paints and, in particular

responding to the customers unmet need. The result was that in 1967,

Asian paints captured to the top position in the decorative paint segment.

Today the company is not just a leader in the paint industry but sells twice

as much paint as any other company in India. In 1994-95 the company had

a turnover of Rs. 614 crores and 38% share of the organized paint market

Marketing Strategies

The success of Asian Paints is primarily attributed to marketing

acumen. The company has made excellent use of the electronic and print

media, besides publishing informative brochures for all its products. The

company’s mascot “Gattu” created to give an ethnic touch has almost

become synonymous with the generic product.

25
Critical Success factors – Distribution

The marketing success of Asian Paints was based on the realization

that the semi-urban was untapped and the small consumer neglected. To

reach those consumers in small town, the company built a broad

distribution network across the whole country. From small towns Asian

Paints moved to reach out to the metropolitan market. Today, the

network with 17,000 retailers across the country is making the company

responsive to a large customer base.

Use of Information Technology

To strengthen the distribution network, the company has gone in

for computerization at the branch and the depot level. All branches and

45 depots across the country are connected to the four plants and the

Product Management Group at the Head Office through the VSAT. The

use of the IT has meant faster flow of information, more efficient

management of supplies, and better inventory control.

Width of Product Line

Based on the surface on which they are applied, decorative paints

are usually classified as wall, metal, wood and plastic finishes. The

products could be emulsions, enamels, varnishes, automotives, or

undercoats. Their end use could be in the sign board, bus body, industry

or household segments.

26
 Asian Paint has offered brands in all possible applications. For

instance:

 Synthetic / Acrylic Washable Distempers : Tractors

 Acrylic Emulsion : Apcolite (Quality I,) Royale (premium category)

 Plastic emulsion Paint (Interiors / Exteriors) : Decoplast (Quality II),

Apex (Quality I).

 Synthetic Enamel : Apcolite, Gattu

 Packet Distemper : Utsav

 Wooden Surfaces : Touch Wood, Silkwood, Apcolite Natural Wood

finish

 Cement Paint (external) : Gattu

Industrial Segment

 General Industrial Finishes : Apcolite (Hammerton Finish)

 Other Industrial Products : Expory Coatings, Chlorinted Rubber

finishes, viny I & Polyurethane Systems.

Automotives

 Kirlo – an Acrlic Paint, Apca – nitro-cellulose based Paint, Aspa – an

Allkyd, autocare.

27
Primers

 Asian Metal Primer Redoxide

 Tractor Redoxide Primer for Metal

 Woodrite for Wood Substrate

 Decorative – Cement Primer

TECHNOLOGY TIE-UPS

The company has a technical collaboration with PIG of the UDS and

Nippon Paint Co, Japan for the manufacture of automotive paints, powder

coatings, and coil coatings. Through this move, Asian Paints remains a

step ahead because companies like Deawoo and General Motors that use

PPG paint overseas are likely to source their automobile paint

requirements from Asian Paints. Technical inflows ( From Sigma Coating

of the Netherlands) have also added to manufacturing capabilities in the

areas of heavy-duty marine coatings, anti-corrosion paints and high-tech

resins(that serve as raw materials), thus ensuring that product quality

even in sophisticated items match international standards.

Product line Extensions

As stated earlier under conceptual issue, line extensions, as a part of

marketing strategy is a low-cost, loss-risk way to meet the needs of

28
various customer segments. It can satisfy customers’ desires to provide a

wide variety of brands under a single umbrella or family name.

Asian Paints strategy to penetrate into the hitherto unexplored

distempers market was a similar move, which was a departure from its

earlier strategy of concentrating on higher-end products.

New Market Penetrations

The search of new markets and overseas opportunities has led the

company to neighboring Nepal and the distant South Pacific Islands – Fiji,

Tonga and the Soloman Islands. The company also exports its to the

Middle East, South East Asia and Europe.

Launch of low priced brand as growth strategy

In late 1992, Asian Paints introduced the brand called “Utsav” as a

long term strategy to penetrate the rural market. The overall marketing

strategy adopted by Asian Paints for this distemper is now detailed.

Entry into the low end distemper market

The Rs. 2047 paints market has a pyramidal structure. At the very

top end are [premium emulsions priced at about Rs. 155 to Rs. 170 per

liter/kg (which comprise brands like Royale and Velvet touch); next are

the synthetic emulsions at the range of Rs. 90 to Rs. 105 per liter ( e.g.

Apcolite, Nerolac, Dulux and Rangoli); and at the base is the distemper

segment (with Asian Paints Tractor) between Rs. 33 and Rs. 40. There was

29
a huge untapped market at the lower end which no organized player had

attempted to tap. This comprised largely packet distempers, dry

distempers and lime ash, hawked in a brand band of Rs. 3 to Rs. 25.

Reason for entry

Around 1991 a recession in the user industries and hike in the excise

rates had slowed the industry growth rate to 2.2%. Asian Paints realized,

that to overcome this phase of stagnation, it had to penetrate new markets

and real volumes would come only be converting consumers using

limewash, dry distemper, cement paint or other local painting methods

into branded paint uses. This would also expand the market base, besides

reaping it the “first mover advantage“ among the major producers of the

paint industry. All the company need was new paint to penetrate into this

segment.

Barriers to Entry

 No data on market size, consumer buying habits, etc., on the distemper

market.

 Regional brands, many in number, had an established clientele.

 Unorganized sector brands were priced low and offered heavy dealer

discounts to push their brands.

 National players / Market leader risked losing premium image and

quality association by entry into this low priced segment.

30
 Consumer preferences heavily influenced by regional cultures,

lifestyles, hence the market was fragmented.

 Servicing a huge semi-urban and rural market would entail huge up-

front investment, with returns not assured.

 Dominance of packet distemper brands, e.g., Dilkash and Lakmi, which

filled the aspirational value slot.

Company specific problems / Disincentives

 Large price differential between the company distemper brand Tractor

(Price Rs. 45 ) and the unorganized sector’s products (Rs.3-25 ).

 Danger of eroding Tractor’s equity if a low price variant is introduced.

 Threat of substitution of the higher period Tractor brand by the

cheaper one by the painter, which had a poorer finish resulting in

customer dissatisfaction.

The Company’s Competitive advantage

 High degree of awareness about the company among the target market

constituents.

 Company regarded as a quality-produce maker.

 Market leader, financial and marketing strength to sustain investment

pressures

31
  Core competence in paints, wide variety and well-developed R & D.

 Wide dealer network and good information base about different

markets.

The Total Strategy followed

(a) Strategic Thinking

This was influenced by the following factors:

 70% of the Indian houses were of the non-pucca variety.

 Painting of the hose, especially interiors, was a deeply entrenched

habit.

 Wall-Paints usage was dominated by lime wash and dry distempers.

 Branded paints were perceived to be out of reach by the ordinary

consumers.

 Penetration of all major paint brands put together was 24% of the users.

 The company realized that the only option it had was to reduce

margins and relentlessly chase volumes. But to achieve volumes, a

high penetration in the rural and semi-urban markets would be

required.

(b) Product and Price

32
 The company realized that it would have to develop a brand that

would offer “Value for Money”. Hence in late 1992, it unveiled its new

distemper Utsav, the name denoting seasonal and festival-oriented

relevance of the product. It was position as do-it-yourself, oil-based-

distemper. At Rs. 26 per kg, it greatly narrowed the price differential and

brought, for the first time, a major branded paint within the reach of the

price-conscious consumer.

The packet size was fixed at 1 kg, a small size, since the users had

smaller-sized houses and did not require large pack sizes. Also, the

product was found to cover more surface area than other products. The

product as offered inn eight new shades, typically in deep colours,

keeping the end-user profile in mind.

(c) Place / Distribution

 Region wise launch of the brand, to coincide with regional festivals.

 Focusing on the north Indian Market, the largest, was scheduled to

incorporate market feedback from the other regions and change the

marketing-mix elements if required.

 Company salesman linked up with sub dealers and petty dealers,

usually grocers, in villages and small towns, who in turn would be

serviced by the company’s established 15,000 strong dealer network.

33
  Undertook innovative promotional campaigns, like arranging

demonstration sessions, besides using the regional media and local

print media, and customer education to create strong brand pull that

would help increase of take and provide the small retailer the incentive

to stock Utsav. There was also the prestige element in stocking Asian

Paints products, which the company exploited to the hilt.

 The Company funded its (established) dealers transportation

overheads incurred in reaching out to the new 80,000 odd outlets.

(d) The Ultimate

 Utsav has been a success in the markets where it has been launched.

 It has overcome the main hurdle of dealer and consumer resistance.

 The brand has gained market share at the expense of local packed

distemper brands. Margins for the product are low about 2-3%, while

the higher end brands fetch 20%.

 However, the product has provided the company a clear advantage. It

can now use its rural network to build its entire economy range

comprising the Enamel range Gattu and other products like primers.

Thus it has a clear head start over its competitors in the volumes game.

34
 PROFILE OF ASIAN PAINTS

Today Asian paints is the market leader in the paint business of

India, commanding a market share of more than 35% in organized sector .

It’s Annual sales turn over us around Rs. 22.6 billion.

Asian paints – one of the largest among the top 10 decorative paint

companies in the world. It operates in 22 countries across the world

serving consumers in over 65 countries.

Forbes global magazine USA ranked Asian Paints among 200 best

small companies in the world for 2002, and in the year 2003 presented the

“Best under the Billion” award to the company. It is one and only the

company.

One of the country leading business magazine “Business Line” in

Feb 2001ranked Asian paints as the ninth best employer in India.

A survey carried out by Economic Times in January 2000 ranks

Asian Paints as the fourth most admired company across industries in

India.

A talent pool of 4700 employees employed across 23 countries.

35
 The closest competitors of Asian paints do not have even half of

Asian paints turn over in other major performance factors like Profits,

Asian paints is far ahead all it competitors in the industry.

The achievement of such an over whelming leader ship position, by

a company that is fully Indian in capital management is an industry

traditionally dominated by multinationals is certainly a grand feat.

How did Asian paints achieve this success? Naturally, it was the

cumulative result of a package of strategies with respect to market

targeting, product mix distribution and other aspects .The maximum

credits for success should, however go to its distribution strategy. It was

through its distribution that Asian paints took its marketing endeavor to

perfection.

Asian paints 9.2% stack in ICI India Ltd. It acquired controlling

stack in Berger International Ltd., Singapore. And it begins Bangladesh

operations. It makes the company eleventh joint venture in international.

THE COMPANY

Asian paints manufacturers and markets a wide spectrum of

coatings and ancillaries, which include decoratives, protection paints and

heavy duty coatings. The manufacturing facilities of the company for

paint products are currently spread over four locations

# BHANDUP MAHARASTRA 1955

36
 # ANKLESWAR GUJRAT 1980

# PATANCHERU A.P. 1981

# KASNA

The manufacturing of paints in patancheru started in 1985. Asian

paints, their modern manufacturing facility offers the widest range of

paints among all the paint companies in India, in terms of products shades

as well as pack sizes. Asian paints have promoted 5 successful overseas

subsidiaries.

Asian paints has been turning out consistency good performance

over the years. For more than two decades now, it has continuously been

the leader in the industry. Besides being the market leader the company

has also respectively provided its excellence in terms of operating

performance which has earned the company a place among the worlds

leading manufacturers. And Asian paints logo “GATTU”, the impish boy

holding paint tin and brush is one of the most recognized and most

prosperous mascots in Indian business.

DISTRIBUTION

In an industry the availability of stocks is crucial determinant of

sale, control of material units assumes great significance especially since

Asian paints offer the widest range of products, shades and packs to the

13000 dealers in the country through the network of over 47 depots.

37
 This is achieved through a sophisticated material distribution

system which optimizes production and movement from plants and

meshes it with demand pattern in the market.

The distribution system monitors the dispatch of materials from

plants / other processing units to the branches / depots directly or

through the warehouses or regional distribution centre.

A bonded store room (BSR) in one where in material for which

excise duty has not been paid is stored. Each plant has a bonded store

room where material is sent immediately after production. As and when

these materials are dispatched it moves out of the bonded store room.

Excise duty is livable at applicable rates on actual movement’s basis.

During the course of this section and subsequent sections reference

will often be made to an SKU and SAU. An sku is acronym for stock

keeping unit which is combination of particular pack, product, shade.

Eg. Apcolite synthetic enamel 500ml bus green is one sku

Apcolite synthetic enamel 500ml sky blue is one sku

CLASSIFICATION OF SKU

All products can be divided into bazaar and industrial on the end

use. Bazaar and industrial item can further be divided into inventoried

and non inventoried items

38
 Inventoried sku are those for which constant demand for which

sales forecast with a degree of certainty.

FORM-A

Bazaar sku inventoried at company / branches / depots.

The supply of sku’s is affected through multi plant distribution

system.

FORM-B

Bazaar sku’s which shades are under the specific focus of

management group new products, packs are not inventoried at all

branches / depots.

FORM-C1

Regular bazaar sku inventoried at branch / depot/ but not at

company level.

FORM-C2

Bazaar sku not inventoried at the branch / depots/ company

levels.

FORM-D

Industrial inventoried sku.

39
FORM-E

Industrial not inventoried sku.

FORM-F

All non confirming stocks( This includes damaged stocks defective

stocks, old stock –packed before 3yrs for trade products and beyond

validity period for the industrial products.

CUSTOMER ACCOUNTING PROCEDURES

TYPES OF CUSTOMERS MODE OF PAYMENT

1. Local dealers Local cheques / pay order

2. Retail sales / cash sales/ Local cheques party is known as
pay order upcountry dealers or cash
location, local cheques if the dealer
has local bank account.

Industrial customer’s local cheques, D.D payable locally. In case

absolutely necessary an upcountry cheques or D.D’s.

Cash / local cheques -- Date of collection memo

1. Upcountry cheques - 7days from the date of collection memo as it takes

around 7days for an up country cheques to be cleared.

40
2. DD/Pay date of DD as the ordered customer is debited as soon as DD

is purchased by the customer. Although the company may not be

credited(i.e the customer is given the benefit.)

PLANING PROCESS In the sales function the planning is as follows

Phase-I

“Market assessment” It consists of assessment of market and market

share for total and major products, growth assessment segment wise for

this purpose retail audit is conducted. All the sale representatives collect

data form each retailer.

Phase-I I

“Objectiove fixation” Based on the above analysis all units should

set objective of achievement of total sales volume / sales growth. Volume

sales strategically important products like emuilsions auto refinishes,

wood finishes and collection efficiency.

Phase-I I I

In this phase plan for meeting the budget shown be drawn up.

These plans involving product / segment focus, town focus, dealer focus

would form the basis of the planning document.

41
Phase-IV

“Resource planning” It consists of

A: “man power planning”

B: input plans

C: sales promotion plans

PROFITS

Asian Paints during the year 2003 – 2004 made huge profits.

Though the company has stringent rules and regulations regarding

towards the credit policies and payment bills, dealers demanding to

extend the credit period. In spite of having such stringent policies the

company managing such a profit is something which has been attained by

work of great managers and sales staff of the company. It indicated the

planning an the performance of the company personnel which made the

company dominate the decorative paints segment, and the whole thing is

backed up by quality, of the paints.

Asian Paints net sales rise by 16.08% and net profit rise by 13.24% in

2003-2004. And announces dividend to the share holders @35%.

PRODUTION CAPACITY

The company has four production centers to cater to the needs of

the customers in India they are as follows

42
 ANKLESHWAR
BHANDUP
PATANCHERU
KASNA
The production plats are like four pillars to the company and the

company is planning to set up a new plant by expanding its capacity.

The aggregate capacity of the four plants roughly mounts to 7000

tones / month in the decorative paints segment.

NEW PRODUCTS DEVELOPMENT

Asian paints have got a full fledged research and development

function to counter the competition and produce the technologically

advanced products to provide a better service to the customers.

The research and development and the management has a plan to

7produce four new products every year. And the new products added till

dates are

# APEX anti fungal exterior paint

# ACE economy emulsion
# Utsav
# Asian wall putty
# NC sanding sealer
and in the future the tally is going to be increased by their research

and development function.

LOGO

43
 Logo is a symbol which represents the company by looking at the

logo any one who has little knowledge about the paints would say that it

is gattu and the company is Asian Paints.

A boy standing with a brush and a paint tin is famously known and

the logo for Asian Paints which is a popular one has been designed by

R.K.LAXMAN a well known cartoonist.

THEORTICAL ASPECTS

INTRODUCTION:

Today’s companies are facing their toughest competition ever.

Companies can outdo their competition if they can move from a product

and sales philosophy to a marketing philosophy.

The success of the companies lies in doing a better job of meeting

and satisfying customer needs. Only customer-centered companies are

adept at building customers, not just building products.

Over 35 years ago, Peter Drucker observed that a company’s first

task is “to create customers.” But today’s customers face a vast array of

product and brand choices, prices, and supplies.

Now the customers started estimating which offer will deliver the

most value. Customers are value-maximizers, within the bounds of search

costs and limited knowledge, mobility, and income. They form an

44
expectation of value and act on it. Whether or not the offer lives up to the

value expectation affects customer’s satisfaction.

CUSTOMR AWARENESS:

Customers are informed and remaindered about the products and

are requested and persuaded to purchase their products. Such

communication may be made their along the product or well in advance

of the introduction of product into the market. Such communication

becomes necessary when a new product or service is introduced in the

market or an old product is improved or it is simply to increase the sales

of the products.

“Awareness compasses all the tools in the marketing mix whose

major role is persuasive communications.”

PHILLIP KOTLER

The main features of awareness are:

1. Customers are informed about the product or services of the

company. Either at the time of introduction of a new product into

the market or when any change is made in the existing product.

2. Customers are reminded of the products and services of the

company.

3. Customers are requested or persuaded to purchase the product and

services of the company.

45
 4. Awareness includes, advertising, personal selling and other sale

promotion techniques.

Consumers must have awareness about the new products and their

usage. Such activities are performed by the manufacturer. It is the

responsibility of the producer to get information about the consumers and

prospective consumers so that the necessary product may be served to

meet their demands.

Subject matter companies must do more than make good products

they must inform consumers about the product benefits and carefully

position products in customers mind. To do this must skillfully use the

mass promotion tools like advertising, sales promotion and public

relations, personal selling, publicity.

ADVERTISING:

Advertising is defined as any paid form of non personal

presentation and promotion of an idea, goods or services by an identified

sponsor.

“The best advertising is done by satisfied customers.”

-- PHILLIP KOTLER

Advertising can be traced back to the beginning of the recorded

history. Archeologist working in the countries around mediterrian sea

46
have dug up signs announcing various events and offers. The roman

painted walls to announce Gladiator fights, and the Phoenician painted

pictures promoting their waves and large locks along parade routes.

In 1993 advertisers ran up of bill of more than $ 138 billions

through advertising is used mostly by business firms it is also by a wide

range of non profit organization professionals social agencies that

advertiser target to various target publics.

Major Decision In Advertising:

Advertising has the impersonal contact and gives message to the

receiver. The advertiser uses visual media like newspapers, magazines,

radio, television, posters and pamphlets. There is no feedback to know

the response from the people. Advertising is directed towards consumers.

This leads to more expenses and so the things become an costly affair.

1. Advertising Objectives

a) To inform

b) To persuade

c) To remind

2. Setting the advertising budget

 After determining the advertising the objectives, the company next sets

its adverting.

47
 Budget for each product. The role of advertising is to effect demand

for the product.

 However some specific factors are that should be considered when the

setting the advertising budget.

a) Stage in product life cycle.

b) Market share
c) Competition
d) Advertising frequency
e) Product differentiation.

3. Message Decision

A large advertisers can spent the same amount on advertising, yet

have very different results studies show that creative advertising message

can be more important to advertising success than the number of dollars

spent.

4. Message Strategy

The purpose of advertising is to get consumers to think about or

react to the product company in certain way. People will react only if they

believe that they will benefit form doing o. Effective message consist of

customers benefit, creativity, Meanings, distinctive in nature.

5. Major steps in media selection.

a) Deciding on reach, frequency, impact

48
 Reach is a measure of the percentage of the people in the target

market who are exposed to the ad campaign during a given period of

time.

Frequency is a measure of how many times the average person in the

target market exposed to the message.

Impact – qualitative value of a message exposure through a given

medium.

b) Choosing various media types:

Newspapers Magazines

Televisions Radios

Outdoors Internet

c) Media timing

SALES PROMOTIOIN

It includes activities other than advertising, personal selling,

publicity and public relations which are used in promoting sales of the

product or in persuading the customer to purchase the product.

Distribution of samples, premium coupon, point of purchase display, off-

spring etc., are the examples of sales promotion techniques.

49
Samples - Offers to consumers of a trail amount of a product.

Coupons - Certificate that give buyer a saving when they purchase a

specified product.

Rebates (cash refund offers) – It offers to refund part of the purchase

price of the product to consumers who send a “proof of purchase” to the

manufacture.

Principles - It reduce prices that are marked by the producer directly on

the label or package.

Premiums – Goods offered either free or low cost and incentive to buy a

product.

Advertising specialties – useful articles imprinted with an advertisers

name given as gift to consumers.

Patronage reward – Cash or other rewards for the regular use of a certain

companies products or services.

Point of purchase(POP) – It displays and demonstration that takes place

at the point of purchase of sale.

Discount – Straight discount on price on purchase during a period of

time.

PUBLIC RELATIONS

50
 Another major promotion tool ism public relations – building good

relations with the companies various publics by obtaining favorable

publicity, building up a good “Corporate image” and handling off

unfavorable rumors, stores and events. The old name for marketing

public relations was publicity, which was seen simply as activities to

promote a company or its products by planting news about it in media not

paid for by the sponsor. Public relations are much broader concept that

includes publicity ass well as many other activities. Public relations

department may perform following functions.

a) Press relations – Creating and placing news worthy information in the

media to attack attention to a person, product or service.

b) Produce publicity – Publicizing specific products.

c) Public affairs – Building and maintaining national or local community

relations.

d) Lobbying – Building and maintaining national or local community

relations.

e) Investors relations – Maintaining relationship with shareholders and

others in the financial community.

f) Development – Public relations with donors or members of non profit

organization to gain financial or volunteer support.

51
PERSONAL SELLING

Selling is one of the oldest professions in the world. The people

who do selling go by many names.

Sales people, sales representatives, Account executives, Sales

consultants, Sales engineers, Agent District managers, and Marketing

representatives to name just few.

Sales person, an individual acting for a company by performing one

of more following activities.

Prospecting, communicating, Servicing and information gathering.

PUBLICITY

Publicity is a non-personal not paid stimulation of demand of the

products or services or business units by planting commercially significant

news or editorial comment in the print media or by obtaining a favorable

presentation of it upon radio, television or stage.

52
53
Exhibit :1

CUSTOMER PURCHASING PATTERN

Occupation Frequency %of

Respondents
Builders 55 85
Contractors 4 6
Engineer 1 1.5
Others 5 7.5
Total 65 100

Graph :1

8%
2%
6%

Builders
Contractors
Engineers
Others

84%

54
INFERENCE:

From the above table it is found that 85% of the product purchasers

are builders.

It is found that 6% of the customers are contractors. 1.5% of product

purchasers are engineers and 7.5% of product bought by others.

It is clear from the above data above, that 85% of the customers are

builders because they do painting before handing over the houses to the

respective owner.

55
Exhibit :2

EXPERIENCE IN PAINTING PROCESS

No. of Respondents Experienced %of

Respondents Respondents

65 65 100

Graph : 2

0%

100

100%

56
INFERENCE:

It is found that all the respondents have experienced in painting

process, even though, the buyers are purchasing then products for the 1 st

time, since it is known that buying of paints can be not only for self but

even for other such as relations and friends.

57
Exhibit :3

APPROXIMATE BUDGET TOWARDS PAINTING

Value of the Budget Frequency %of

Respondents

Below 50,000 12 18

50,000 – 75,000 4 6

75,000 – 1,00,000 20 31

Above 1,00,000 29 45

Graph:3

Below 50,000

50,000 - 75,000

75,000 - 1,00,000

Above 1,00,000

58
INFERENCE:

From the above table out of 65 respondents it was found that 18% of

the respondents are in budget below Rs. 50,000/- which means they are

ready to spend for paints. 6% of the respondents are in budget between

Rs. 50,000/- to Rs.75,000/-. 31% of the respondents are in budget between

Rs.75,000/- to Rs.1,00,000/- and the remaining 45% of the respondents are

in budget above Rs.1,00,000/-.

So it was found that maximum numbers of respondents are ready to

spend upto Rs.1,00,000/- and above for paints.

59
Exhibit :4

USAGE OF DIFFERENT INTEROIOR PRODUCTS

Interior Products Frequency %of

Respondents
Enamel 14 22
Distemper 34 52
Polish 4 6
Emulsion 13 20

Graph: 4

Enamel
Distemper
Polish
Emulsion

60
INFERENCE:

From the above table out of 65 respondents, it is found that 22% of

the respondents are in requirements of enamel paint for their interiors,

52% of the respondents required the interior paint like distemper, 6% of

the respondents are in requirement of Asian Paint polish, while the other

20% of the respondent are in requirement of Emulsion.

In interior product usage, there is a greater demand for the

distemper followed by the enamel.

61
Exhibit :5

USAGE OF DIFFERENT EXTEROIOR PRODUCTS

Exterior Products Frequency %of

Respondents
Cement Paint 12 18
Textured 3 5
Emulsion 23 35
Permanent Finish 1 2
SnowCem 26 40

Graph: 5

Enamel
Distemper
Polish
Emulsion

62
INFERENCE:

From the above table out of 65 respondents, it is found that 18% of

the respondents are in requirement of cement paint for their exterior

purpose, 5% of the respondents are in requirement of textured, where as

35% of the respondents required the Exterior Paint like emulsion and 2%

of the respondent are in requirement of permanent finish product, while

the remaining 40% of the respondents are in requirement of Snowcem.

Snowcem had a greater demand, because most of the middle class

families are using Snowcem, and next to snowcem the familiar product is

emulsion.

63
Exhibit :6

LIFE EXPECTANCE FOR INTERIOR PAINTS BY CUSTOMERS

Period Frequency %of

Respondents
6 months - -
1 Year - -
2 Year 9 14
5 Year 56 86

Graph : 6

2 Year
5 Year

64
INFERENCE:

From the above table, out of 65 respondents, it is found that 14% of

the respondents or customers are expecting the life of interior paint to be 2

years and the remaining 86% of the customers are expecting more than 5

years of lie, for their interior products.

In details, if we go, “No customer is expecting life below 2 years”.

And most of the customers are expecting their product life above 5 years.

65
Exhibit :7

LIFE EXPECTANCE FOR EXTERIOR PAINTS BY CUSTOMERS

Period Frequency %of

Respondents
6 months - -
1 Year 3 5-
2 Year 22 34
5 Year 40 61

Graph :7

1 Year
2 Year
5 Year

INFERENCE:

66
 From the above table, out of 65 respondents, we can find that 61% of

the customers are expecting more than 5 years of life for the exterior paints

and 34% of customers are expecting more than a life of 2 years, while the

remaining 5% of respondents are expecting more than 1 year of life for

their exterior paints.

No one among respondents are expecting the life of interior paint

products for less than 1 year.

67
Exhibit: 8

TYPE OF FINISH REQUIRED FOR EXTERIOR PAINTS BY

CUSTOMERS

Type of Finish Frequency %of

Respondents
Smooth 44 68.5
Textured 12 18
Permanent 8 12
Others 1 1.5

Graph: 8

Smooth
Textured
Permanent
Others

68
INFERENCE:

From the above table, out of 65 respondents, A smooth type of

finish is required by 68.5% of the respondents where as 18% of the

respondents require a textured type of finish, and 12% of the customers

require permanent type of finish, while the remaining 1.5% of the

customers require other type of finishes.

69
Exhibit :9

TYPE OF FINISH REQUIRED FOR INTERIOR PAINTS BY

CUSTOMERS

Type of Finish Frequency %of

Respondents
Distemper 50 77
Emulsion 15 23

Graph: 9

Distemper

Emulsion

70
INFERENCE:

From the above table, out of 65 respondents, “Distemper finish” is

required by 77% of the respondents, while the other 23% of the

respondents require emulsion finishing for their interiors.

71
Exhibit :10

WOOD FINISH PRODUCT PREFERENCE BY CUSTOMERS

Type of Finish Frequency %of

Respondents
Enamel(glassy) 57 87
Enamel(satin) 5 8.5
Melamine 2 3
Poly Utherene (OPAL) 1 1.5

Graph : 10

Enamel(glassy)

Enamel(satin)

Melamine

Poly Utherene
(OPAL)

72
INFERENCE:

From the above table, out of 65 respondents, it came to know that

87% of the respondents prefer for enamel(glassy) type of wood finish,

where as 8.5% of the respondents prefer for Enamel(satin) type of wood

finish, and 3% of the respondents prefer Melamine and the remaining

1.5% of the respondents prefer poly-utherene type of wood finish.

So it is clear from the above analysis that most of the respondents

i.e.,87% of the respondents are going for enamel(glassy) type of wood

finish.

73
Exhibit :11

AWARENESS ABOUT ASIAN PAINTS PRODUCTS

Awareness Frequency %of

Respondents
Yes 59 90
No 6 10

Graph : 11

Yes

No

74
INFERENCE:

From the above table, out of 65 respondents, it came to know that

90% of the respondents are aware of Asian Paint Products , while the other

10% of the respondents are not aware of Asian Paint Products.

So company can go for some more awareness programme in order

to capture the remaining unaware sector.

75
Exhibit :12

AWARENESS ABOUT COLOUR WORLD CONCEPT

Awareness Frequency %of

Respondents
Yes 23 35
No 42 65

Graph : 12

Yes

No

76
INFERENCE:

From the above table, out of 65 respondents, 35%f the respondents

are aware of “Colour World”tinting machines concept of Asian paints,

while the other 65% of the respondents are not aware of this concept.

So, the company need to communicate about the a “Colour World”

tinting machine concept to the customers by conducting awareness

programme or by advertisement.

77
Exhibit :13

CUSTOMERS’ CHOICE OF COMPANY FOR INTEREIORS

Name of the Company Frequency %of

Respondents
Asian 37 57
Berger 16 25
Nerolac 5 8
Others 7 10

Graph : 13

Asian
Berger
Nerolac
Others

78
INFERENCE:

From the above table, out of 65 respondents, 87% of the respondents

are opting for Asian Interior Paints, while 25% of the respondents are

preferring for Berger Interior Paints, and 8% of the respondents are opting

for Nerolac Interior Pains, where as the remaining 10% of the respondents

are opting for some other companies for the interiors.

So, it is clear that Asian Interior Paint products have more customer

preference when compared to other brands.

79
Exhibit :14

CUSTOMERS’ CHOICE OF COMPANY FOR EXTEREIORS

Name of the Company Frequency %of

Respondents
Asian 32 50
Berger 15 23
Nerolac 58 12
Others 10 15

Graph : 14

Asian
Berger
Nerolac
Others

80
INFERENCE:

From the above table, out of 65 respondents, 87% of the

respondents are opting for Asian Exterior Paints, while 23% of the

respondents are preferring for Berger Exterior Paints, and 12% of the

respondents are opting for Nerolac Interior Pains, whereas as the

remaining 15% of the respondents are opting for some other companies

for the interiors.

When compared to interior paints, company exterior paints are not

preferred by some of the customers who were preferring Asian paint

interior products.

81
Exhibit :15

TYPE OF GUIDANCE EXPECTED FROM COMPANY BY THE

CUSTOMERS

Type of Guidance Frequency %of

Respondents
Provide details on recent 25 38

development & products

Educate on product features 15 24
Appraise on product suitability 5 8
Knowledge of sales Discount 10 15
Budgeting while painting 10 15

Graph : 15

Provide details on
recent development &
Products
Educate on product
features

Appraise on product
susitability

Knowledge of sales
Discount

Budgeting while
painting

Slice 6

ting

INFERENCE:

82
 From the above table, out of 65 respondents, it was found that 38%

of the respondents are in need of guidance regarding the details on recent

development and products, whereas 24% of the respondents are in need of

guidance regarding education on product features. While 8% of the

respondents are in need of guidance for appraise on product suitability.

15% of the respondents are in need of guidance regarding the knowledge

on sales discounts. While the remaining 15% of the respondents are in

need of guidance regarding the Budgeting while Painting.

83
 SUMMARY

Paint industry has shown a rapid growth in the last year 2003-2004,

and since then there has been a decreasing growth in the industry.

Asian Paints – one of the largest paint companies in India, which

has shown a tremendous growth since its establishment, liberalization.

This is an achievement, achieved by careful planning a following firm

procedures set by the company management.

Asian is qualitative company with strict rules and regulations. All

the planning takes place at the central office Mumbai.

Each Asian paint production center has a distinguished packing so

that by looking at the drum or cartons the plant identification become easy

to the godown incharge.

The company has a excellent distribution network which is the

prime reason for its success followed by marketing plans.

The company has a full fledge research of development function,

whose aim is develop and present new products every year.

The price and selection of target is also done to protection.

Considering the promotional part Asian Paints employed Ogilvy and

Mather to attract the customers.

84
 Asian Paints has developed many brands and which have well

penetrated in the minds of customers.

Ex: Apcolite, Apex, ACE, etc.,

And Asian Paints was the first to enter with manual color

dispensing concept which took off with the advent of computers, Asian is

not lacking behind in this they have developed “Colour World” for the

consumers with 1150 shades to be selected from.

The study of my topic is “Customer Awareness” with reference to

Asian Paints India Limited. And Advertising, sales promotion, personal

selling, public relations, and publicity are the customers awareness

programs to be conducted by the company .

85
 FINDINGS

As a part of my study, survey on “Customer Awareness” was

conducted during May – June 2000. Important findings are concerning

from the customers, have resulted from the survey. They are summarized

in following paragraph.

There are 65 respondents in the sample of a study on “Customer

Awareness”.

 The First and foremost observation that has been made from the study

is that “Asian Paints” is the leader in the industry of paints. It has a

very high brand equity in the market.

 According to observations of the survey, price is the dominating

factors, which influences the purchasing decision of the respondents

followed by quality, company name, coverage and service. Comparing

to competitors Asian Paint Company Prices is high.

 From the analysis point of view, when compared to interior paints,

company exterior paints are not preferred by some of the customers,

who are preferring Asian Paints interior product.

 At last, most of the customers are satisfied with Asian Paint products,

but at the same time they require guidance regarding the recent

development of the products.

86
 SUGGESTIONS

 Sales promotion committee should be formed to formulate and implement

new market strategies to compete with competitors and to extend the market

share.

 Company sales representatives must maintain relations with construction

companies as well as with painting contractors with the help of the dealers.

 Company should conduct meetings, at least to make the customers to know

about the latest development in the paint industry and their products.

 Companies should even concentrate on Exterior Paints as its market share is

very low.

 Advertisement should be increased to update the image of Asian Paints in

the changing environment.

 Company must look after, there is a close relationship between sales

representatives and dealers with the customers.

 Company should maintain the customer records.

87
 BIBLIOGRAPHY

Principles of Management

Philip Kotler

Marketing Management

Rama Swamy

The Hindu Guide Magazines

Business India

WEBSITE:

www.asianpaints.com

88
 CUSTOMER AWARENESS
(A Study with reference to Asian Paints India Ltd.)

A Project report submitted to Andhra University, Visakhapatnam in

partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

By

K. SRINIVASA RAO

Under the esteemed guidance of

Mr. G. SRINIVASA RAO, M.Sc., M.B.A.,M.Phil, P.G.D.C.A.

Head of the Department

DEPARTMENT OF MANAGEMENT STUDIES

SAMATA DEGREE & P.G. COLLEGE
(Affiliated to Andhra University and Approved by A.I.C.T.E)
VISAKHAPATNAM-530017
2003-2005

89
 CERTIFICATE

This is to certify that project titled "CUSTOMER AWARENESS"

with reference to Asian Paints India Limited, Visakhapatnam submitted

by Mr. K. SRINIVASA RAO, to the college of Management Studies,

SAMATA DEGREE & P.G. COLLEGE in partial fulfillment for the award

of the Degree of MASTER OF BUSINESS ADMINISTRATION is a

record of bonafide work carried out by her under my guidance and

supervision.

Place: Visakhapatnam Mr.G.SRINIVASA RAO

Date: M.Sc., M.B.A.,M.Phil, P.G.D.C.A.
H.O.D.& Project Guide
Samata Degree & P.G.College,
Visakhapatnam.

90
 ACKNOWLEDGEMENT

I express our deep sense of gratitude and indebtedness to

Mrs.R.VIJAYA RAVINDRA, Principal, Samata Degree and P.G. College,
Visakhapatnam, for the encouragement given to me to complete the
project and for the facilities provided to me through out the project.

I am thankful to our guide and coordinator Mr. G.SRINIVAS RAO,

M.Sc, MBA, M.Phil, PGDCA, for his valuable guidance and kind
cooperation right from the beginning of the project report. I am thankful
very much for his kind constant encouragement and guidance shown
during the course of our project.

I also extend my sincere gratitude to the Visakhapatnam Area

Manager of Asian Paints India Ltd., for giving me the opportunity to
complete the project under their able guidance.

I express my gratitude to Mr. NAGA RAJU (Area Manager),

Mr. KRISHNAM RAJU (Project Sales Incharge), for their continuous
support and encouragement throughout my project work. Last but not the
least, I would like to express my sincere thanks to the respondents and
my others not specially mentioned.

K. SRINIVASA RAO

91
CHAPTER – I

 INTRODUCTION
 OBJECTIVES OF THE STUDY
 NEED FOR THE STUDY
 METHODOLOGY
 LIMITATIONS OF THE STUDY

92
CHAPTER – II

 PAINTS – THE COLOUR OF OUR

LIFE
 PROFILE OF PAINT INDUSTRY
(A Profile)
 PROFILE OF THE COMPANY

93
CHAPTER – III

 THEORETICAL ASPECTS

94
CHAPTER – IV

 ANALYSIS & INTERPRETATION

95
CHAPTER – V

 SUMMARY
 FINDINGS
 SUGGESTIONS

96
Annexure

97
Bibliography

98
 CONTENTS
Page No.

CHAPTER – I

 Introduction 1
 Objectives of the Study 2
 Need for Study 3
 Methodology 4
 Limitations of the Study 5

CHAPTER – II

 Paints – The Colour of our Life 6

 Profile of Paint Industry (A Profile) 10
 Profile of the Company 33

CHAPTER – III

 Theoretical Aspects 42

CHAPTER – IV

 Analysis of the Study 51

CHAPTER – V

 Summary 81
 Findings 83
 Suggestions 84
BIBLIOGRAPHY
ANNEXURES

99
 TABLE AND GRAPH INDEX

Table and Description Page

Graph No. No
1 Customer Purchasing Pattern 51
2 Experience in Painting Process 53
3 Approximate Budget towards Painting 55
4. Usage of Different Interior Products 57
5 Usage of Different Exterior Products 59
6 Life Experience for Interior Pains by 61
Customers
7 Life Experience for Exterior Pains by 63
Customers
8 Type of Finished required for Exterior 65
Paints by Customers
9 Type of Finished required for Interior 67
Paints by Customers
10 Wood Finish Product Preference by 69
Customers
11 Awareness About Asian Paints Products 71
12. Awareness about Colour World Concept 73
13 Customer choice of company for Interiors 75
14 Customer choice of company for Exteriors 77
15 Type of Guidance expected from 79
Company by the Customers

100
 DECLARATION

I declare that this project report entitled “CUSTOMER

AWARENESS” of Asian Paints India Ltd., Visakhapatnam submitted by
me to the SAMATA DEGREE & P.G College of Management Studies,
Affiliated to Andhra University, is my own and is not submitted to any
other University or has been published anytime before.

Place: Visakhapatnam (K. SRINIVASA RAO)

Date:

101