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Mode of Advertising Effectiveness in rural

market with contract to Paint Industry

Submitted in the Partial Fulfillment for the Requirement of Post
Graduate Diploma in Management
(PGDM)




Guided by: Submi tted by:
Mr. Rajesh Sharma Rubisha Mittal
(Deputy Manager) 36 , 2013-15

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL
KALKAJI, DELHI







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STUDENT DECLARATION

This project titled Mode of advertising effectiveness in rural market
with contract to paint industry being submitted by me in the partial
fulfillment if requirements for the award of master of business
administration degree from Jims kalkaji, New Delhi.
I have not submitted this work anywhere else for another degree or
diploma.
All sources of information and help are authentic and have been
acknowledged in the report.












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Certificate from Guide
This is to certify that the minor project titled
Mode of advertising effectiveness in rural market with
contract to paint industry
It is an academic work done by Rubisha Mittal submitted in partial
fulfillment of the requirement for the diploma management at JAGANNATH
INTERNATIONAL MANAGEMENT SCHOOL Delhi under my guidance and
direction. To the best of my knowledge and belief the data and information
presented by her in the project has not been submitted earlier.










Mr. Rajesh Sharma
Deputy Manager











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TABLE OF CONTENT
Student Declaration
Certificate from guide
Acknowledgment
Executive summary
Introduction
Industry origin and growth
Industry Structure
History
Company Profile
Highlights
Government Rules and Regulation
SWOT Analysis
Industry present and future trend
Major firm in industry
Firms or company strategies
Comparative analysis of advertisement
Methodology
Secondary data
Objectives
Scope
Recommendation
Bibliography












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Acknowledgement


Though my words are not enough to express our indebtness and gratitude
to all those who helped me directly or indirectly in conducting this project.
I would like to take an opportunity to thank them collecting necessary
information and making of the report. I am grateful to all of them for their
time, energy and wisdom.
Getting a project ready requires the work and effort of many people. I would
like all those who have contributed in completing this project. First of all, I
would like to send my sincere thanks to MS. (AHUTI BHARGAV) her
helpful hand in the completion of my project.
















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Executive summary
About Shalimar paints:-
Shalimar Paints is one of the leading paints manufacturing companies of
India. Shalimar has three manufacturing units and more than 54 branches
and depots all across the country. The Company has a wide product range
in Decorative / Architectural and Industrial segments. The Architectural
Coatings cover both Interior and Exterior segments. The Company also has
tinting systems under the brand name "Color Space" where the Company
offers more than 9000 shades across all product lines to its customers.
Vision:
Shalimar's vision is to become one of the leading paint manufacturing
companies of the country, a leader in product innovation and customer
satisfaction. Shalimar intends to build long term value relationships with all
its suppliers and customers
Mission:
The Company's mission is to maximize returns of each stakeholder in the
Company be it customers, shareholders, suppliers or employees and
become a socially responsible global Corporate Citizen.
Environment policy
Shalimar shall comply with all applicable environmental legislation and
regulations. Shalimar shall Endeavour to operate all the plants and facilities
in a manner to ensure a clean and healthy environment. Shalimar shall
strive to achieve reduction of wastage and ensure optimize resource
utilization through source reduction, recycle or reuse of waste. Shalimar
shall impart training and education to all employees to work in a manner
which maximizes protection of the environment.
Social welfare
The Company runs a high School at Howrah where it imparts free
education to boys and girls from Class 1 to Class X. Besides this it also


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organizes various cultural activities for its staff all across the country.
Company appreciates success of merits student of employees and awards
them scholarship to encourage their spirit of education. Shalimar takes care
educational development of workers children, company distribute free
books to the children of workers. Shalimar conducts Annual Medical Health
Check-Up Program for all employees.

























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INTRODUCTION

Industry origin and growth
The earliest paint factory in India dates back to 1902, when Shalimar Paints
Color and Varnish Company, A Pinching Johnson unit, was established at
Calcutta. Growing industrialization expansion of the railways and introduction
of electric power a couple of years earlier had all kept business confidence
soaring high. However this did not provide a ready and expanding market for
the nascent paint industry then. Imports from Britain continued to swarm the
market and raw material were not easy to come by.
The industry still consisting of one lone unit went through a rather prolonged
period of infancy till the World War II brought in dramatic opportunities. With
the stoppage of imports owing to war conditions, the domestic market at last
became almost the exclusive reserve of the domestic industry. European
manufacturers hitherto exporting to India readily saw the advantages of setting
up manufacturing facilities here. The period between the wars thus saw the
greatest ever influx of foreign paint companies into India Good lass wall 1918
Elephant Oil Mills 1917 in Bombay and British paints Jenson Nicholson and Mac
far lances was brought over by the plodders and become a completely Indian
company while the other three i.e. Shalimar paints British paint and Jenson
Nicholson continued as British operated units.
While talking about the post independent development of the Paint industry in
India, mention must be made of Asian Paints, a completely Indian unit which
started on a very small scale, grew so big and so beyond recognition over the
years that it is today not only the largest unit in India but way ahead of the 2nd
largest, Kansai (Good lass) Nerolac Paints Ltd., formerly a unit of Good lass
Wall (UK).
Besides Asian Paints, numerous factories, wholly Indian in ownership and
with rare exceptions in technology as well was set up in Calcutta, Kanpur &
Bombay. The British units, though a few in number, were technically strong and
financially sound and, with the active support and patronage of the Government,
controlled a vastly higher share of the market. The post-independence period
witnessed a steady growth in the paint industry. From a mere Rs.200 million
turnover in 1950 the paint industry crossed the Rs.14000 million marks in
1990-91.


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But even in this period, paints were considered a luxury item. Only people with
high incomes were expected to decorate their houses with the use of paints.
Paints, as a protective element were totally unheard of. The industrial segment
which was traditionally a low user of paints, vis--vis its counter parts in the
decorative segment too contributed to this notion in line with this misconceived
notion the government drastically increased duties on paints in the early
nineties with an aim to bolster exchequer revenues. The result was obvious.
This inevitably brought about a downturn in the fortunes of the industry.
The product which is highly price elastic saw a negative growth rate of 20%
in 1991-92. The next year was also not good registering a growth of only 2%
bringing it back to the 1990-91 level thus corroborating the fact that the
industry needed lower excise level to grow. The industrial slowdown during
that period also did not help matters. In the line with the liberalized policies &
realization that paints is not necessarily a luxury items duties were progressively
reduced from1993-94.
This squared growth as most companies passed on duty reductions. Further
the entry of world majors in the automobile and white goods market in India
since1993 helped the market to expand. Demand for auto paints shot up
suddenly. Form a modest 8% growth rate in 1993-94 paint demand touched
12% in 1995-96.
Rapid industrialization and improvements in the infrastructure such as
transport energy and communication during the last decade gave a further
fillip to the growth of the paint industry Aided by government liberal policy of
technology import the automotive and consumer durable segment expanded
phenomenally with a flurry of foreign collaboration. Increased demand for
decorative protective and functional coatings was natural fall out which brought
in its stride a host of indigenous developments as well as the injection of new
technology.
The Indian paint industry estimated to be Rs.21000 cr.Industry has been
growing at a rate of above 15%for the past few years. The organized
players of the industry cater to about 65%of the overall demand whereas
the unorganized player takes care of the remaining 35 %in value terms.
The unorganized players mainly dominate the distemper segment. The
industry consists of two segment namely Decorative segment cater to the
housing sector and Industrial segment consists of powder coatings, floor
coatings and other protective coating catering to the automobile marine and
other industries.


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In the domestic market decorative segment account for 70%of the total
demand for paints whereas the industrial segment account for remaining
30%.Globally the demand for paint is almost equally distributed where both
the segments account for close to 50% of demand. The paint industry
volume in India has been growing at 15%p.a for quite some years now. As
far as the future growth prospects are concerned the industry is expected
to grow at 12-13% annually over the next five years. FY11 was challenging
year for the industry as whole due to subdued demand across key sectors
and rising inflation.










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Industry Structure
Indian Paint Industry is over 1000 years old. Its beginning can be traced
back to the setting up of a factory by Shalimar paints in Calcutta back in
1902. Till the Second World War the industry consisted of small producers
and two foreign companies. After the war, the imports stopped which led to
the setting up of manufacturing facilities by local entrepreneurs. Still the
foreign companies continued to dominate the market, which in a way is the
current scenario as well.
The initial decades saw the complete dominance of British Paint
companies such as good lass Walls (now good lass Nerolac), ICI, British
Paints (now Berger paints), Jenson &Nicholson and Blundell & Eomite. The
Indian Paints sector is valued at Rs. 6,800 cores in value terms and is very
fragmented. The current demand is estimated to be around 650,000 tons
per annum and is seasonal in nature. The per capita consumption of paints
in India stands at 1.0-kgp.a. As compared to 1.6 kg in China and 22 kg in
the developed economies. India share in the world paint market is just
0.6%. The Indian Paint industry can be divided as: The organized sector
comprising of large and medium size units. The unorganized and the small
scale sector. There are now twelve players in the organized sector with a
market share of 70%.
This is in contrast to the 55% share that the sector commanded a few years
back. Major companies in this segment include Asian Paints (44% market
share), Berger Paints- 17% market share, ICI -12% market share, good
lass Nerolac 15% market share, Jenson Nicholson 6% market share,
Shalimar Paints and Rajkot Paints. The organized sector has grown at a
CAGR of 11.5%in the last five years. The unorganized sector comprising of
over 2000 units has a combined market share of around 30%. The major
players are Asian Paints, good lass Nerolac, Berger, ICI and Shalimar.
Recently, world leaders like PPG, DuPont and BASF have set up base in
India with product ranges such as auto refinishes powders and industrial
coatings. Kansai Paints of Japan, which entered into collaboration with
Good lass Nerolac in 1984, is now the holding company for good lass


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Nerolac with 64.52 % equity holding. PPG has a joint venture with Asian
Paints to manufacture industrial coatings. Jenson & Nicholson are no
longer active players because of dwindling sales in recent years. In the
1990s, helped by a growing economy, the paint industry had recorded a
healthy growth of12-13 % annually.
This was mainly due to a drastic reduction in excise from a staggering 40%
to16%. However the growth was restricted in 2000-03 to single digits.
There was a revival in2003-2004 with a robust growth of 13%.8.The per
capita consumption of paint in India is 700grams against 19 kg in the U.S.,
and 2.7 kg and 5.8 kg in other developing countries like China and Brazil.
As the consumption goes with affordability, the low Indian figure is not a
surprise .High excise duties, low technology and low capital costs for
production led to the incidence of a high number of units in the small scale
sector. However, since 1992 the government has been consistently
lowering duties from 40.5% in 1992 to around 16% currently. This has led
to lowering of price differential between the organized and unorganized
sector. Moreover the paints sector was also allowed to claim MODVAT
credit on petro-based products thus lowering the excise incidence further.
















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History
Shalimar Paints incorporated in 1902, is one of the leading paints
manufacturing companies in India. The company has a color bank of 9000
shades.

The Company has a wide product range in both Architectural and Industrial
sectors. It has network of 54 branches and depots spread across India.
The Company also has tinting systems under the brand name 'Color
Space. It has network of 6000 dealers.

Manufacturing facilities
The company has three manufacturing facilities located Howrah, Nasik and
Sikandrabad. These units have ISO 9000 accreditation for its quality
management. Its Howrah plant, is the first large scale paint manufacturing
plant located in South East Asia. It has installed capacity of 14204 MT per
year. This plant also has in-house research and development laboratory
that is recognized by Dept. of Scientific and Industrial Research, Govt. of
India. Its Sikandrabad unit was set up in technical collaboration with
Sherwin Williams of USA.
Product
Decorative- The Company manufactures wide range of decorative
paints used for interior or exterior, every surface - concrete, plaster,
metal or wood. Under this it has created brand like Extra, Superlac,
Shakti man, Superlac Hi-Gloss and Husain Collection.
Industrial- Under this the company has association with companies
like Pinching Johnson Co. and International Paints PLC of the U.K. It
manufactures and markets industrial coatings, aviation coatings,
marine paints and coatings for metal decoration and food can
lacquers.
Outlook
With the Indian economy continuing its buoyant growth and massive
investments forthcoming in infrastructure and housing, there is
considerable potential for growth of the paints industry.






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COMPANY PROFILE
Established in 1902 Shalimar paint limited bears the distinction of being
one of the oldest paint companies of the world and is currently the fifth
largest paint company of India .It is jointed promoted by Mr. Girish
Jhunjhnwala and Mr.Ratan Jindal. It has a diversified revenue mix with
presence in both decorative and industrial paints and a wide product range
across both segment and across all price points. For industrial segments it
service marquee clients in the following industries-a)Oil and Gas,
b)Petrochemical ,c)Fertilizer, d)Power ,e)Steel, f)Engineering ,g)Shipping,
h)Auto ancillaries etc.
It has strong research and development capabilities with a proven history of
developing indigenous products for both the decorative and industrial
segments.
Product range- Its range of decorative paints includes exterior wall
,Emulsions and cement paints, interior wall Emulsion and distemper Paints,
metal wood and floor surfaces , paint under coats , where as its industrial
range includes protective coating , product finish , meta decorative coating
and marine paints.
Manufacturing plants and research & development centers-It has three
manufacturing plant across the country with a capacity of 66000 tones p.a.
A fourth plant in Chennai, Tamil Nadu is expected to start operation in FY
15. Howrah and Nasik plant also have resin manufacturing facilities which
help Shalimar paints limited operate effectively in industrial paints. It has
two research and development centers one at Howrah, west Bengal and
one at Nasik, Maharashtra set up in 2009 spread over 10000 sq. ft. Both of
them are recognized by department of scientific and industrial research
(DSIR). Research and development center at Howrah was the first in house
R&D unit to be recognized by DSIR in 1979.
Distribution Reach-It has a national wide distribution network with three
regional distribution centers (RDCs) more than 54 branches and depots
and 7000 dealers .It also have dedicated sales and marketing teams for
decorative and industrial paints .It also has tinting systems under the brand


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name Color space where it offers more than 10000 shades across all
product lines to its customers.
Highlights
The Indian paint industry is Rs. 49 billion sector.

The demand for paints is relatively price-elastic but is linked to the
Industrial and economic growth.

The per capita consumption of paints in India is very low at 0.5 kg
Per annum if compared with 4 kg in the South East Asian nations and
22 kg in developed countries. The global average per capita
consumption is 15 kg

In India the organized sector controls 70 percent of the total market
with
The remaining 30percent being in the hands of nearly 2000 small-
scale units.

In most developed countries the ratio of decorative paints visa-A- via
industrial paints around 50:50

In India the industrial paint segment accounts for 30 percent of the
paint market while the decorative paint segment accounts for 70 per
cent of paints sold in India.

All the industry majors have a vast dealership network and are
required to maintain high inventory level.

Most of the paint leaders have technical tie-ups with global paint
leaders.

Government rules and regulations
Government take steps to resolve paint industry crisis December 11,
2008 (India)Government has announced several relief measures to support
the paint industry from time to time, which has been representing that paint
exports have been affected by the global recession.



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1. The Technology Up gradation Fund Scheme (TUFS) was launched to
facilitate the modernization and up gradation of the paint industry both in
the organized and unorganized sector. The Scheme has been further fine-
tuned to promote the rapid investments in the targeted sub-sectors of the
paint industry. The cost of machinery has been further brought down by
reducing the customs duty on imports.

2.To provide the paint industry with world-class facilities for setting up their
paints units, meeting international environmental and social standards,
a Public-Private Partnership (PPP) based Scheme known as the Scheme
for Integrated paint (SIP) has been introduced in August 2005.

3. in 2004-05 Budget, the entire paint sector, except for man-made and
filament yarn was provided optional exemption from excise duty. In 2005-
06 Budgets, Central Value-added Tax (CENVAT) on Polyester Filament
Yarn has been reduced from 24% to 16%. These modifications in fiscal
levies aim at attracting more investments for modernization of textile sector.

4. To facilitate import of state of the art machinery to make our products
internationally competitive in post quota regime, in 2005-06 Budget, the
customs duty paint machinery has been brought down to 10% except for 23
machinery appearing in List 49, which attracts Basic Customs Duty (BCD)
of 15%. The concessional duty of 5% continues to be at 5% on most of the
machinery items.

5. Government has launched the Debt Restructuring Scheme in. Sept 2003
with the principal objective to permit banks to lend to the paint sector at 8-
9% rate of interest.

6. Government has allowed 100% Foreign Direct Investment in the paint
sector under automatic route.

7. Government has de-reserved the readymade garments, hosiery and
knitwear from SSI sector so that large-scale investments may be
encouraged in these sectors.

8. National Institute of Fashion Technology (NIFT) has been set up to
provide the leadership role in sensitizing the Industry to the concept
of value addition by inducting trained professionals to manage the industry.


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This has resulted in an increased demand for trained professionals in
various sectors servicing the industry.

9. A series of relief measures to paint exporters such as enhanced DEPB &
Duty drawback rates, reduced ECGC premium, subvention on credit rates,
refund of service tax paid by exporters on various services etc.

10. Apparel Export Promotion Council (AEPC) has established Apparel
Training Design Centers (ATDCs) throughout the country to cope with
the requirement of skilled / semi-skilled manpower for the paint industry.

SWOT ANALYSIS
Strength
1. Shalimar Paints was first large-scale paint manufacturing unit in
South-Asia, hence has vast experience in this industry.
2. Shalimar Paints offers wide range of decorative products both in
interior and exterior categories and it offers paints at all price bands
thus catering to customers in all segments.
3. Introduction of tinting systems at dealer locations has helped
customers a wide choice of 9000+ shades.
4. They are pioneers in industrial paints category as they have
association with Pin chin Johnson Co. & International paints.
5. With products in marine coating, High performance Coating,
packaging and General Industrial, they are 3rd largest in the industrial
paints category.
6. Currently 3 manufacturing facilities strategically located at Howrah,
Sikandrabad and Nasik which jointly have capacity of 57000 tones
p.a.
7. Company has good Pan-India presence with well-established
Sales & Distribution Network.



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Weakness
In spite of having the first movers advantage in the paints industry it
lags behind Asian Paints, Berger Paints, and Alzo Nobel in many
segments.
Customer tastes and perceptions change very fast and products may
become obsolete with change in trends, hence production planning
and inventory problem.

Opportunity
1. Shalimar is introducing a Self-Clean Paint: paint with a new technology
that doesnt allow water to stay on walls, it turns water into tiny balls that
roll down the wall taking dirt away.
2. New Facility at Chennai is under construction stage would increase the
capacity by 18,000 tones p.a. and would cater to South India.
3. Current Mfg. facilities stands only approx. 1/3rd of the land available,
hence there is a great opportunity of expansion if desired.
4. Continuous R&D provides scope of reduction of VOC and HAP; develop
more eco-friendly products which have high potential growth.
5. Tremendous growth opportunities in Rural India
Threat
1. Stringent Government rules and regulations regarding the quality of
products and manufacturing facilities as Environment policies are given
more emphasis
2.Raw material scarcity and volatility in prices.
3. Competition from national and international brands as they target India
owing to its large market.






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Industry present & future trends
The Indian paint and coatings industry is riding high on the growth in
the Indian automobile industry, new construction in the housing segment
and improving infrastructure throughout the country. Thirty percent of the
paint business is comprised of new construction projects. GDP growth
projections of six to 6.5% in the current year mean a growth of nine to ten
percent in Indian paint business. The growth will be 12-13% in the industrial
segment and eight to nine percent for decorative paint.

The Indian automobile industry has been performing remarkably well and
will benefit the market leader in the segment Good lass Nicolas. As for the
future, the industry has predicted a CAGR of eight to nine percent for the
next five years compared to last years growth levels of 27.4% for cars and
8.9% for two wheelers. The Indian housing industry is likely to do well in the
current year as well, recording a growth rate of 35% last year. As a result of
the overall health of Indias economy, it is safe to predict a nine to ten
percent growth rate for the Indian paint industry in the next five years
.Consumers can look forward to new product launches, some for
application in special areas.

Companies will be increasing the value added services available to
customers by offering a variety of finishes through specialized and trained
applicators. There will be more options like ranges of colors/finishes for
wood applications through the tinting machines. Additionally, the trend
towards water-based coatings is likely to set in both for industrial
and decorative applications. While India has not yet embraced the DIY
concept as cheap labor is still available, exclusive retail chain stores
sponsored and run by Indian paint companies will become a reality. The
Indian paint industry has progressed well and moving ahead is likely to be
influenced by several factors including new technologies, new innovative
products, new associations, consolidation of industry and poor performers
getting out of the market. Ultimately, in the years ahead there will be only
four or five key players operating in the Indian paint market.







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Major firms in an industry
The Indian Paint Industry
In India, Indian Paint industrys total market size is US$1400 million.
The organized sector of the industry is 55%. The 45% unorganized sector
has about 2500 units. The big players and their market share-value of the
organized sector are
Asian Paints 37%
Good lass Nerolac 15.9%
Berger Paints 13.8%
ICI 11%
Jenson & Nicholson 5.7%
Shalimar 4%
Others 12%
The market segment is divided into two sectors.
Architectural 70%
Industrial 30%
The total volume of the market is 600,000Mt.

Firms or company strategies
MARKET SHARE
The overall organized sector market share is shown in the following graph.
Asian Paints -37 %
Good lass Nerolac -16 %
Berger Paints - 14 %

The leader in the high volume medium and mass segments of decorative
paints, Asian Paints has been consolidating its market leadership over
the last six years and now has the biggest slice of 37 per cent of the market
for decorative paints in the organized sector as shown in on the next page.
Trailing behind are Good lass Nerolac and Berger Paints with market
shares of 16per cent and 14 per cent respectively. Other major players
from the organized sector include Jenson & Nicholson with a low 6 per
cent and ICI with 8 per cent. With the exception of Asian Paints, the market
shares of most of the major players have been stagnating over the last few
years. This was primarily due to extensive focus on urban markets and
neglecting the high-potential semi urban and rural markets. On the other
hand, one of the earliest entrants to take a lead good lass Nerolac


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dominates the market for industrial paints with an impressive share of
43 per cent of the market as shown in the following graph. Though other
players trail behind Good lass Nerolac by a wide margin, competition in
industrial paints is increasing. While Asian Paints and Berger have a
market share of 14 per cent each, ICIs share is lower at 8 percent.











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Comparative analysis of advertisement
1. Interior Paint
Bergers Paint
Product Name- Berger Rangoli Easy
Description- Father and son made up a mess of the wall, then mom comes
up and looks at their scared faces and says that its easy clean paint where
walls can be washed to remove dirt without affecting the color.
Attention Factor- The display is quite capable of getting the attention
of the common mass as we can see that the lady in the house who is
generally most concerned about the cleanliness and longevity of the
house takes everything casually as she knows what has been done
can be undone easily. This usually attracts the attention of the wives
and even the husbands.
Memorizing Factor -The punch line in this display i.e. daag jaye par
rang na jaye, is quite appealing and people will remember this add
for this punch line.
Sentimental Appeal -The casual approach of the lady shown in this
act works as sentimental appeal for all women who usually are the
most concerned within the family.
Education Factor Just a wash can free the wall of all dust, dirt and
stains.




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Asian Paints
Product Name- Asian Paints Royale (Luxury Emulsion)

Description- Saif Ali Khan who was playing video game and was
unaware of the fact that there was a clash between his dog and his
house butler, who was carrying some food and drinks for Saif and
eventually all the food and drinks gets spilt on the walls making a
mess of it, later it could be
Easily wiped out because of the Teflon surface protector.

Attention Factor -1.Saif Ali Khan a Bollywood superstar 2. Less
cautious nature while at home.

Memorizing Factor -This advertisement is repeated a lot in most of
the commercial and news channels which serves the memorizing
factor.

Sentimental Appeal -Saif Ali Khan a Bollywood superstar and a
member of the royal family advertising for Asian Paints Royale. Its a
good strategy of Asian Paints to bring both the Royals together.

Education Factor- Because of the Teflon surface protector in the
paint, the walls will not get easily damaged.




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Kansai Nerolac
Product Name -Nerolac Impressions Eco Clean
Description- In a newly painted house the husband (SRK) is with his
daughter and pregnant wife. As the paint is free of VOC and Lead its
harmless for even new born children. It is shown that any scribbling in
the walls can be easily washed off i.e. the paint is washable.
Attention Factor- Firstly, as because of no fumes and pollutants in the
paint its even safe for pregnant women as well as new born babies
and secondly, paints are wash proof.
Memorizing Factor- Its not a much repeated commercial as
compared to Asian Paints and Berger Paints. Hence its memorizing
factor is low as compared to the rest.
Sentimental Appeal -Appearance of King Khan in this commercial as
a Brand ambassador is itself the strongest sentimental appeal
compared to others for a major section of the population.
Education Factor -Its not having any side effect as it comes with low
VOC and its totally lead free.





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Exterior Paints
Berger Paints
Product Name- Weather Coat All Guard Exterior Paints.

Description- A girl child standing in the window and experiencing the
reverse effect of rain i.e. water moving up back to the sky, resembling
the same in case of the exterior walls where water will not percolate
and damage the construction after the rains.

Attention Factor- Slogans like Reverse the effect of rain and 7
years of warranty are good for gaining the attention of the viewers.

Memorizing Factor- Reverse the effect of rain is said a numerous
times within the ad which will stay in mind easily.

Sentimental Appeal -Keeping the walls fungus free and spotless

Education Factor -Presence of silicon pushes water away leaving the
walls spotless, fungus free, and rain proof.







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Asian Paints
Product Name -Asian Paints Ultimo

Description- Features or key advantages are not shown directly to the
customers but through expressions and acts it is made
understandable that year after year the exterior paint of the house
stays without losing its color and glamour, starting from the birth of
the child till marriage.

Attention Factor -7 years warranty with color stay this slogan which
means that year after year the conditions of the exterior walls remain
unchanged is good in attracting the attention of the viewers.

Memorizing Factor- 4 to 5 times when the owner of the house tries to
tell about the qualities of his son to the different visitors, the visitors
without giving attention to his son starts praising or complementing
the paint which he has used for his exterior walls.

Sentimental Appeal- No such sentimental stuffs are related to this
advertisement.

Education Factor- No such educating stuffs are related to this
advertisement.





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Kansai Nerolac
Product Name Nerolac Excel Exterior Paint

Description- Son was trying to take a rotten apple then mom comes
up and says which is rotten from outside its even rotten from inside,
now the brand ambassador SRK comes up and says that the same is
the case with the house (directing towards their house which presents
a shabby look from outside) so put Neola paints to keep your house
safe from outside which will automatically keep it safe from inside,
using the key words like anti-germs, anti-allergy and anti-pollution.

Attention Factor- Anti Germs Anti-Allergy Anti-Pollution No Harmful
Fumes.

Memorizing Factor- The comparison shown between the rotten apple
and the house.
Sentimental Appeal -The Bollywood star ShaRukh Khan giving
promotion to any product will itself have a sentimental appeal for a
major section of the Indian population.

Education Factor- Tagged as Healthy home paints (low VOC and
Lead Free)



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ASIAN PAINTS

Asian Paints is India's largest paint company and the third largest paint
company in Asia today with a turnover of Rs 30.2 billion (around USD 680
million). The company has an enviable reputation in the corporate world for
professionalism, fast track growth, and building shareholder equity. Asian
Paints operates in 21 countries and has 29 paint manufacturing facilities in
the world servicing consumers in over 65 countries. Asian Paints is a great
marketing success in a branded consumer product business. The company
succeeded where others failed in three areas:-

1. It understood the requirements of the Indian paints market better than
the MNCs which did not bother to respond to local consumer needs. It was
the first to introduce small pack sizes, a variety of shades and a wide range
of paint types (enamels, distempers, emulsions) to suit different pockets.
Thus, in the sixties, the company came out with plaster distemper, Tractor,
to suit the needs of the mass market for a product that was much cheaper
than costly emulsions but much better than the widely used whitewash and
crude powder distempers. This opened up a huge market and today
distemper accounts for 25% of the decorative market in volumes and 15%
in value. And as recently as in 1992, the company introduced a synthetic
distemper, branded Utsav, aimed at the same rural and low income urban
markets .

2. In the highly competitive market emulsions segment, the company
introduced as many as 151 shades in its Apcolite range when the
competition was offering a maximum of 40 odd shades. The strategy paid
off and Asian Paints today commands a 40% share in this segment. It
setup an extensive national distribution network to tap demand in smaller
towns. Today it has direct dealers in 3,200 towns and 10,000 stickiest.
Investments were also made in computer technology to ensure up-to-date
information interface between the marketing and production sides of
the business. And finally, the company has displayed considerable savvy in
its advertising campaigns, dealer relations, point of sale publicity and
product demonstrations to consolidate and expand markets. In fact, the
company has played a pioneering role in expanding the Indian paints
market by identifying high demand potential areas and then tapping them to
maximum effect. This ratio is defined as profit after tax divided by
the shareholders fund. It measures the profitability of the funds invested in


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the firm. It is regarded as a very important measure because it reflects the
productivity of the risk capital employed in the firm. This ratio measures
sales per rupee of Investment in fixed assets. It measures the efficiency
with which the Fixed Assets are employed- a high ratio indicates a high
degree of efficiency in asset utilization and a low ratio indicates inefficient
use of assets. It can be seen form the graph that this ratio is increasing for
Asian Paints indicating good asset management.

Product Level

Basic Product: The basic need for paint is to protect the wall from
cracks, leaks, make it look clean, make and proper ambience etc.

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, protective
coating, fresh coats etc. This level fulfills customers requirement and
their needs.

Augmented Product: Paint should be of acrylic type, washable,
sunlight protected, leaks proof, long lasting, chemical base so it dries
fast, polished etc.

Potential Product: Here the customer future requirement is judged
and 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.

Price: Royale luxury Emulsion is placed as a luxury emulsion, pricing
strategy adopted is value based pricing, Price range 315-345 for 1Lts.

Place: - Extensive distribution network of 4 Manufacturing units, 6
Regional distribution centers ,55 Depots ,15,000 Dealers including
Urban and Rural, 90,000 Sub Dealers, Exclusive 3000 Asian Paints
Store and 4500 Color World Stores. Asian paint bypassed the bulk
buyer segment and went to individual consumers of paints. It went
slow on urban areas and concentrated on semi-urban and rural
areas. Asian Paint went retail. It went in for an open-door dealer
policy. Asian Paint voted for nationwide marketing / distribution.


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Promotion Mix: The promotional strategy adopted by Asian is quite
unique. The company is using high profile brand ambassadors like
AK shay Khanna, Saif Ali khan to promote Royale Luxury Emulsion.


BERGER PAINTS
Berger Paint is the culmination of over seven decade process of evolution
and growth that began in 1923.Its growth has been closely linked with the
business and industrial development of modern India. The performance of
this company is anchored today in a wide variety of decorative and
industrial paints which continue to gain an increasing share of the highly
competitive Indian paint market .Being an ISO 9001 company its quality
products have attained instant and worldwide recognition and continues to
meet quality requirements that are demanded today even in the domestic
market. The countrys third largest paint manufacturer with its headquarters
in Calcutta, Berger control a distribution network comprising of 66 stock
points and approximately 10,000 dealers, spread across the country. BPIL
has technical tie ups with Herberts a subsidiary of the German
pharmaceutical major Hoechst for automotive paints, Tender NV of Holland
for powder coatings and Valspar Corporation, USA for heavy duty coatings.
The company is particularly active in the powder coating segment and is
a supplier to most OEMs in the white good segment. With its thrust shifting
to industrial coatings, the company is expanding its powder coating
capacity from 840 metric tons to 1,840 metric tons at its existing plant.
Recently, it introduced Color Bank, a computerized mixer tinting machine in
technical collaboration with Italy Tinto of Italy. Special software, Tinto vision
installed in the Color Bank gives the customers a choice of more than
5,000 shades and can even produce the colors offered by the
companys competitors. Another achievement of Berger is the setting up of
Berger Pro links.
Pro links is Berger paints response to a market environment that is
increasingly driven by technology and calibrated by expertise. Pro links is
aimed at placing the initiative in the hand of builders and designers to


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enable them to directly source innovative product and services. The team is
entrusted with maintaining a seamless interface between paint specifies
and Berger paints. The objective is to provide specifies with a complete
basis for recommending products and processes database technical
services, color consultancy, site inspection etc. Pro link experts ensure
specific solutions to specific problems; whether it is a particular shade that
needs development, special climatic factors to be provided for or
application factors that have to be maintained. From known how to
legwork the pro link team delivers total support.
ICI INDIA
ICI India was the subsidiary of the $15bn British multinational company ICI
Plc. Brunner Mond and Company one of the four Companies that combined
to form ICI in UK in 1926, opened a trading office to sell alkalis and dyes in
Calcutta. In 1923, Brunner Mond & Co. India was incorporated and the
company's name was subsequently changed to Imperial Chemical
Industries India Ltd., in 1929.ICI India is ranked fourth in the paint business,
after Asian Paints, Good lass Nicolas -17.Paints and Berger paints unlike
the other paint companies ICI India was advertised unit and paint
constituted 43% of its net sales.
It identified paints as a thrust area and was aggressively moving to improve
its position. The company invested $11 million in a new decorative paints
plant near Bombay and constructed a $16.7 million plant for industrial
paints near Chandigarh in North India. In order to increase its presence in
the paints market, ICIs growth plan is to beef up its distribution network,
widen the purview of specialty products, access newer technologies
through joint ventures and of course, targeting the urban and semi-urban
markets by introducing more products in the lower and middle segment of
the paints market. In order to be amongst the top two players in the
industry, the company is firming up plans to aggressively market its
products in the country.
The Gliddens brand is being positioned in the middle segment to
supplement Maxi lite in the mass-segment and Deluxe in the premium
segment. In response to Jenson & Nicholsons Insta color ICI launched


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color solution which can be used for both interior and exteriors. This
comprises a menu driven, user friendly touch color screen on a computer
that helps consumers visualize as many as 6000 shades on house
structures resembling their homes.
JENSON AND NICHOLSON
Jenson & Nicholson, a leading paint company in the country today was
established in the year 1922. It has a country wide presence with 33
branches and stock points across the country and manufacturing plants
at Naihati near Kolkata, Sikandrabad near Delhi and Panel near Mumbai.
In 1955, it launched Indias first Plastic Emulsion paint, under the brand
name of Robbialac. It ventured into the Powder coatings market in 1986,
thus becoming the first company in the organized sector to offer this
extremely environment friendly coating technology. Subsequently it
introduced Instacolor in technical collaboration with M/s Tikkurilla OY of
Finland. It is the first company in the country to introduce computerized
dispensing system. Jenson and Nicholson launched the Stand ox brand of
products in 1996 which offers over 45,000 colors to the Indian car owner.
In the very next year, the company in order to cater to highly
specialized Marine paints sector, entered into a 50:50 joint venture project
with M/s Chugoku Marine paints of Japan. Chugoku is the second largest
supplier of marine paints in the world with 30% market share. The new
company also handles heavy duty coatings.

KANSAI NEROLAC GOODLASS NEROLAC

It was established in 1920 as GA Hagan Paints and Varnish Co. Ltd. at
Bombay. In 1930, three British companies merged to formulate Lead
Industries Group Ltd. In 1933, Lead Industries Group Ltd. acquired entire
share capital of GA Hagan Paints in 1933 and thus, Good Lass Wall (India)
Ltd. was born. Subsequently, by 1946, Good lass Wall (India) Ltd. were
known as Good lass Wall Pvt. Ltd. In 1957, Good lass Wall Pvt. Ltd. grew
popular as Good lass Nicolas Paints private limited.

Also, it went public in the same year and established itself as Good lass
Nicolas Paints Ltd. It is among the oldest paint companies of the country
and the undisputed market leader in industrial paints, with a43% share of
this segment. It is a dominant player in the auto paints market


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which accounts for around one-third of the industrial paints segment. Good
lass Nicolas paints strength comes from the higher end of the auto paints
market - passenger cars and light commercial vehicles (LCVs) account for
60% of the companys auto paint sales. The rest comes from heavy trucks
and two wheelers. In auto paints, the market share of Good lass is now
estimated to be around 50% with a 90% share in passenger cars, 60% in
LCVs, 40% in two wheelers and heavy trucks. Right now, the company is
the only significant producer of CED (catholic electro-deposition) primer,
with technical know-how from its Japanese promoters, Kansai Paints.

Good lass is the only company offering a complete automotive
paint system comprising pre-treatment chemicals, primers, anti-rust
coatings, intermediate and top coatings as well as auto refinishes. GNPL
supplies 90% of the requirements of MarutiUdyog Ltd. which produces 300
cars a day. The company has a tie-up with Nihon Toshuku Tokyo of
Japan for sophisticated coatings for automotive and industrial sectors.
Having lost Daewoos Ceil contract to Asian Paints, GNPL is pursuing
business opportunities with car majors planning to enter the country. It
recently tied-up with DuPont, USA for supplying automotive paints to
DuPonts clients in India. Good lass Nicolas Paints Ltd. changed its
name to Kansai Nicolas Paints Ltd. in 2006. The present human asset
consists of over 2000 professionals and a sales turnover of 1226 cores. It is
the second largest coating company in India with a market share of over
20% and also the leader in powder coatings.

Method of Collection
Secondary Data
Secondary data means data that are already available i.e., they refer to the
data which have already been collected and analyzed by someone else.
When the researcher utilizes secondary data, then he has to look into
various sources from where he can obtain them. In this case he is certainly
not confronted with the problems that are usually associated with the
collection of original data. Secondary data may either be published data or
unpublished data.




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Objectives
To promote and protect the small scale paint industry in India.
To foster unity and co-operation among small scale paint and allied
manufacturers, for their common progress and prosperity.
To represent and seek redress from Government for the difficulties
experienced by its members, by written submission to Government,
interaction and representation on relevant Government bodies.
To disseminate among its Members updates in technology and
management practices.
To update Members about changes in Government regulations
affecting their industry.
Identify problems that may arise, affecting the small scale paint
industry and take preemptive measures.
Maintain a library offering member ready access to several national
and international publication but most important the standards for
paints laid down by the Bureau of Indian.
Scope
The Indian paint industry has come a long way from the days when paints
were considered a luxury item. Today the awareness level on preventing
corrosion through paints is relatively high, development that should be a
huge boost to the paint industry. This report provides in-depth information
and analysis on the US$ 925.0 million (2000-01) worth India paint industry.
The Indian paints industry offers lucrative scope for stable revenue streams
to manufacturers of both decorative and industrial paints.
They focused on all such crucial parameters that make India favorable
proposition. Factors that have been given emphasis include the low per
capita consumption of paints 1.0 kg growth in construction sector it is being
offered industry status and growth in the auto /white good market
respectively spurring demand for decorative and industrial paints. The
industry has also witnessed increased activity in the industrial variety of
paints with the entry of MNCs in auto, consumer durables etc. The report
covers both the segment for varieties of paints along with elaboration on


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product sub- segments. The typical characteristics of the Indian paint
industry have been discussed in depth covering the typical features of the
Indian industry via raw material intensiveness, working capital
intensiveness; seasonality of the current global scenario with reference to
the paint industry has been covered with special focus on auto coat market
which is a key growth area in the international market. The current scenario
prevailing in the Indian paint industry has been pictured in detail. The share
of the organized and unorganized sector has been dealt with in detail,
discussing the impact of recent issues and trends like excise duty
rationalizations, quality consciousness in user segments on the industry
dynamics. The demand-supply scenario existing in the industry has been
covered, detailing paint production trends in India, consumption across
user segments, the trends in the exports and imports front and factors
influencing pricing. Raw material is a major cost-driver in the paint industry,
and thus the report provides comprehensive coverage on duty structure
applicable for raw materials, the organized sector has been given an in-
depth focus detailing major players, their forte market shares of major
across product mixes and price categories.


Recommendation
The company should reduce the dealer discount which was high as
compared to the industry.
The company is also trying to shift product mix form lower margin
protection paint towards high margin decorative paint.
The company focuses on volume growth, product mix and margin.
The current management focus on cost and operational efficiencies
may help in improving working capital efficiency.
The good monsoon will increase the demand for decorative paint
especially in rural market .it is believe that good monsoon augurs well
for automobiles and consumer durables segment which likely to
increase demand for industrial paint going ahead.
Organized manufacturers effort to enhance its distribution network
and product offerings move closer to the customer by setting up


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flagship store and improve service level will help the industry in its
drive to make customer shift from unbranded products to branded
products.
Conclusion:-
The top 5 companies make up more than 80%sales of the organized
market. The market share of this sector is continuously improving as
consumer preference is shifting towards better product offered by the
leading brands. Established foreign companies have entered the Indian
market by acquiring existing Indian companies. Kansai paint, japan entered
the Indian market by acquiring Nerolac, Alzo Nobel the world largest Paint
Company entered the Indian market by acquiring ICI paints now Alzo Nobel
India


Bibliography
www.slideshare.net
http://www.shalimarpaints.com/aboutus.html
http://www.scribd.com/doc/24945245/Paint-Industry