K.E.

S SHROFF COLLEGE OF ARTS AND COMMERCE

Name : Chirag Rana Roll NO : 27 Subject : Marketing Management Topic: Presentation on Asian Paints Presented To: Miss Amisha.

COMPANY PROFILE

Asian Paints is India's largest paint company and ranks among the top ten decorative coatings companies in the world today. It was formed as a partnership firm by four friends in 1942. Asian Paints operates in five regions across the world viz. South Asia, South East Asia, South Pacific, Middle East and Caribbean region. A talent pool of over 4700 employees employed across twenty-three countries brings in a unique blend of mindsets and skills.

PRODUCT MIX

Asian Paints produces a wide range of paints for decorative and industrial use. APIL's product range includes Wall paints, Metal paints, Wood Finishes, Primers and others. Famous product are Apex Weatherproof Exterior Emulsion is a water-based 100% acrylic, exterior wall finish. Premium Emulsion provides a rich and matt finish to interior walls due to its super-acrylic quality.

Apcolite Premium Satin Enamel is a solvent-based finish.

MARKETS

The countries that Asian Paints has presence are as follows: South Asia Bangladesh, Nepal, India and Sri Lanka. South East Asia China, Malaysia, Myanmar, Singapore and Thailand. Africa Egypt Caribbean Islands Barbados, Jamaica, Trinidad and Tobago. Middle East Bahrain, Dubai and Oman. South Pacific Australia, Fiji, Solomon Islands, Tonga, Vanuatu and Samoa Islands.

SALES REVENUE IN THE YEAR 2005

H1-FY 2005
Caribbea n 25.0% Middle East 34.9%

South Pacific 13.4% S.E. Asia 15.6% South Asia 11.1%

RAW MATERIAL AND SOURCES OF AVAIBILITY

Paint involves the mixing of various raw materials in various proportions. The raw materials are of a wide variety. Raw materials are divided into three major groups, namely, pigments (titanium dioxide, zinc oxide etc.), solvents (mineral turpentine) and resins and additives. Pigments are finely ground solids of different shades to give colour, durability, consistency and other properties to paint. Solvents are volatile organic compounds (VOC) used to dissolve, suspend or change the physical properties of other materials.

Binders are generally oils, resins and plasticisers that give paints its protective property. Additives are added in small proportion to the paint to improve its performance characteristics in various ways. Around 600 raw materials are required by the industry and all raw materials are not directly related to crude oil. The basket of raw materials is quite exhaustive. Raw materials, which constitutes around 60 per cent of total cost for the paints industry is an important factor for maintaining operating margins.

MARKETING AND SALES

Product: Asian Paints Colour World is the brand name for the one-stop colour shop of Asian Paints, which are unique paint shops where shades are generated with the help of a computer with software. Advertising Objective: The advertising should create enough interest in potential consumers to ensure that they come to the Asian Paints Colour World outlet or at least call the Asian Paints helpline. CUSTOMERS: According to the company customer is most important thing. The customer is not dependent on company but the company is dependent on the customer. The company does not favor the customer by serving him but the customer is doing them a favor by giving them an opportunity to do so.

MARKET STANDING

Asian paints is the market leader in Indias paint industry with a commanding market share of about 39% in the organized segment. Asian Paints has been the market leader in the Indian paint industry for over three decades. Today the company has a very high market share. The nearest competitor is half of there size. The company's market share has increased over 3 per cent in the past seven years.

11.1% 17.3%

0.4% 3.9%

20.3%

46.9%

Asian Paints ICI

Nerolac J&N

Berger Shalimar

Comment

1. The ware housing facilities are well maintained. 2. The company specially looks after the environmental aspects and tries to avoid pollution and pollutants by adapting eco friendly production methods. 3. The company keeps low inventories in off seasons, and high inventory in festival seasons. 4. The company has huge base of raw material suppliers, giving company bargaining power resulting in higher profit margins then competitors. 5. The company has succeeded in establishing themselves in rural parts of India by large distribution network, retail outlets etc.

Suggestions

As seen above the companys raw material price is directly related to crude oil prices, keeping this in mind the company should try to keep optimum level of raw material to avoid breakdownns in production function.