Submitted Submitted by :

to:
Abhinav
Bhatt
Mr. Anubhav Vij
Hitesh Manocha
Ankit Kochhar

Gunjan Sobti

Litika Gupta
Neha
Sharma

Saket Kumar
 Asian
Paints

Har Ghar Kuch

Kheta Hai
 Segments

Paints Chemicals

Decorative Paints Industrial Paints

Phthalic Anhydride

Interior Wall Finish Industrial Paints Penraerythritol

Exterior Wall Finish Powder Coating

Other Industrial
Enamels
paints

Wood Finishes
 Indian Paint and Market segment
• Per capita consumption (0.5 kg)
• Raw material intensive : Half of 200 materials imported,
rising raw material prices affect paint prices.
• Market Control : Organized Sector (70%)
Unorganized Sector (30 %)
Share of paint industry
In industrial paints (30%)
Nerolac dominant (41% market share)
In Decorative paints (70%)
price sensitive, cyclical nature
Premium paint - acrylic emulsion, big cities & metros
Medium range - enamels, small towns
Distempers - economy products , rural & suburban
areas, dominated by unorganized sector
 Asian Paint’s story at glance
1942 Champaklal K choksi, chimanlal H choksi, Suryakant C
Dani, Arvind R Vakil formed a partnership firm “Asian
Paints” ( picked from telephone directory) in garage.
1945 AP became private limited company “Asian Oil & Paint
Co. Pvt Ltd.
Mid Turnover of Rs. 350,000. Innovative marketing strategy
1940s “going where the customer is”
Created “Gattu”– India’s most visible advertising
symbol, created brand identity for AP
1940s- AP started small packs to suit exact customer needs
1950s (popular 50 ml packs)
late Produced international quality phenolic & maleic resins
1950s on simple coal furnace
1973 “Asian Paints Ltd” public company
1987 Backward Integration to lower production cost, joint
venture with Pentasia Chemicals Ltd to manufacture 2
major raw materials
 contd..
1997 50:50 joint venture with Pittsburg Pint & Glass
Industries Ltd.(PPG)
1998 Restructured itself to improve efficiency, sharpen
business focus, control costs, strengthen lead
position

Three SBUs of AP: a. Decorative India

b. Decorative International
c. Industrial & Chemical

Late Positioned as brand with largest range of colors 127

1990’s shades of green, 206 shades of blue, 118 shades of
– 2000 yellow and many other colors

Nov AP’s 1st Indian Acquisition “powder coatings

2001 business “of Hawkoplast Chemicals Ltd

2002 Golden Peacock Award for Patancheru plant

2002 Demarket “Gattu” and adopted new logo,
highlighting AP brand
 Making of brand “Asian paints”
• Positioned as a brand with largest range of
colors 127 shades of green, 206 shades of
blue, 118 shades of yellow and many other
colors
• To show the variety of color and shades they
showed the face of kathakali dancer and the
flags of different countries
• After conducting a research AP analyzed that
in northern India houses are a status symbol
Har Ghar kuch kheta hai
 Har ghar kuch kheta hai
Har ghar chup chaap se yeh kehta hai ki
andar usmein kaun rehta hai?
Chhat bataati hai... ...yeh kiska aasmaan
hai.
Rang kehte hain kiska yeh jahaan hai.
Kamron mein kiski kalpana jhalakti hai? Is
farsh par nange pair kiske bacche chalte
hain?
Kaun chun chunke ise pyaar se sajaata
hai? Kaun is makaan mein apna ghar
basaata hai...
Har ghar chup chaap se yeh kehta hai...ki
andar usmein kaun rehta hai
 Time to make region specific ads
•Started with Bengal
•AP was already a household name in West
Bengal, thanks to its' Sharad Sarnman Puraskar
for the best Durga Puja pandals in different
neighbourhoods.
•Bengal has strong cultural identity of its own
so they used Bengali alphabets in the walls, a
volume of Rabindranath Tagore's collected
works- with an AP shade card for a book-mark
 Further moves by AP.
• Longevity and ability to withstand adverse
weather conditions
• Later celebrity endorsements were used to
create recall or push sales.
• Akshay Khanna looked for the perfect spot
to hang a picture of him and his father,
Vinod Khanna. Akshay finally found the spot
on a wall painted with Royale.
• Purchasing the paint was still a decision
which family use to because it was
considered to be an expensive affair
• To break this mentality AP gave it cultural
look by associating it with regional festival
 Sales & Distribution
AP’s DISTRIBUTION STRUCTURE:
(AP followed this distribution system for
its product)
Had their presence in 3500 big and small
cities across the country
6 Distribution Centre(s) served 55 Depots

Further, these 55 Depots (each depot

had a branch manager supervising
several sales persons (65 sales offices))
served 15000 dealers across the country
DISTRIBUTION STRUCTURE CHART
65 15000
55
6 RDCs SALES DEALER
DEPOTS
OFFICES S

S01
D1
SO2
RDC D2
S03
D3
S04
 INNOVATIVE MARKETING: COLOR WORLD

1998: AP launched ‘One stop

Color shops’ concept
‘COLOR WORLD’
Offered various services to
customers
4000 such shops were opened
Involved an expense of Rs 30 Cr
(upgrading cost)
 OFFERINGS OF AP IN COLOR WORLD
• Provided assistance to customers in color
selection process
(interactive touch screen computer, specially
designed panels, merchandising units)
• Offered a color consultancy services
(consultant: professional interior decorator)
• AP shade color pallet ( wide color options)
along with the recommendation of ‘AP Color
Cell’
AP Color Cell had recommendations made by AP people on
the basis of colors that were expected to be popular in
that year
• AP screen test service (digitally painting home)
Photograph of their homes/walls were required in order
to initiate the process
 OFFERINGS OF AP IN COLOR WORLD
• ‘Light effect service’
Allowed viewing of different shades in different
types commonly used lights (daylight,
domestic-tube light & domestic incandescent
light)
• ‘Spectrophotometer’ service
This could read the color of any object and
arrive at the same color for the paint on the
walls
• Providing samplers (200 ml packs)
Appearance of a shade on a wall might appear
different in two rooms of different decors
 AP COLOR WORLD’s offerings

Assistance in color selection via interactive touch screen computers

Color consultancy by a professional interior designer

Wide color options in Color pallet with ‘AP color cell’ recommendation

AP screen test service (digital photo print)

Light effect service

Spectrophotometer service

Samplers of 200 ml pack

Result of AP’s COLOR WORLD offerings
• Over half of the AP’s sales
came from this chain
• 1999: AP planned to refurbish
500 outlets in the same
manner across the country
• AP decided to extend newly
developed shades in its weak
markets (Delhi & Calcutta)
 Two more marketing initiatives
• ‘HELPLINE’

• ‘HOME SOLUTIONS’
 ‘Helpline’
In 1999 AP launched ‘HELPLINE’
An automated interactive voice response system
playing pre-recorded voice when a customer called up

UTILITIES PROVIDED TO CUSTOMERS:

1.) Informing about various paints available in markets
2.) How to choose type of paint depending on the room
3.) Allocation of budget
4.) Informing nearest dealer to the caller
COMPANY BENEFITED BY:
By extracting: Caller’s name, address, telephone
number, etc (Profile)
‘HELPLINE’ was installed in 23 cities across India
 ‘Home Solutions’
In 2001 AP pilot tested service called
‘Home Solutions’ in Hyderabad and
Calcutta
HOW IT WORKED:
• Customer could fill the online form on the
website or call on the toll free no.
• AP’s sales executive visited the customer’s house
• One time payment had to be made by the
customer for:
a. Cost of materials and labour.
b. This assured the timely completion of the job.
Power of suppliers
• Joint venture with Pentasia Chemicals
Ltd.
• Major raw material being crude oil
based (constitute 40%-50%)
• Supplier have more control over prices
Threat of substitutes

• Price elasticity White wash

•POP
• Wall paper
• Designer tiles
Power of buyers

• Bulk Buying by automotive Industry

• Low bargaining power in the hand of
customer
The threat of new entrants

• Local manufacturers
• Low capita intensive market
• Additional threat from foreign players
Competitive rivalry within an industry

• Nerolac enjoying greater market share

in industrial segment
 SWOT Analysis
Strengths
• Market leader with 39%market share.
• Widest product range in terms of products,
shapes, pack sizes.
• It catered to all the segments of customers.
Weakness
• Seasonal demand of the product
• Declining industrial paint segment market
share
Opportunities
• Overseas market
• Automobile industry

Threat
• Demand for decorative paints
was highly price sensitive
• Unorganized/local players
Recommendations
 RECOMMENDATIONS
• Increase market share in the
industrial paint segment
• Advertisement should be done for
wood finish and metallic paints also
• Explore and grab the potential in
overseas market
• Advertisement of waterproof paints 2
months before monsoon season
• Advertisement can be done during
non-festive season
• Eco friendly paints should be
promoted as growing concern for
the environment is prevalent
• Collaboration with leading
construction companies
• They can also come up with a
jingle, as it has high retention
power