Presentation From

A competitive market analysis about Asian paints: current market scenario, consumer insight and competitor analysis

Brand profile of Asian Paints

Asian Paints is Indias largest paint company and Asias third largest paint company, with a turnover of Rs 77.06 billion. The group has an enviable reputation in the corporate world for professionalism, fast track growth, and building shareholder equity. Asian Paints operates in 17 countries and has 24 paint manufacturing facilities in the world servicing consumers in over 65 countries.

Brand profile of Asian Paints

Asian Paints Bangladesh Ltd (APBL) started its journey in Bangladesh in the year 2002 as a joint venture with Confidence Cement, a leading & reputed producer of cement in Bangladesh to produce top class range of paints for the discerning consumers of Bangladesh. Today APBL has come a long way from its humble beginnings, becoming the 2nd largest paint company in Bangladesh. With a Presence across all 64 districts, a 500 plus supportive dealer network, they are well placed to meet the painting demand of all category of consumers across Bangladesh. Their service to their customers through a network of strategically located depots in Dhaka, Chittagong, Sylhet, Khulna, Comilla and Bogra.

Market players

Market Share of Major brands

Others Roxy paints Pailac paints Asian paints Elite paints Romana paints

Berger paints
0 5 10 15 20 25 30 35 40 45

Source: http://www.reportbd.com/articles (2011)

Distribution Channel of competitive brands

70

60

50

40

Urban Semi Urban Rural National

30

20

10

Berger paints

Romana paints

Roxy paints

Pailac paints

Elite paints

Urban Berger paints Romana paints Roxy paints 65.9 56.3 39.6 33.2 37.4

Semi Urban 62.4 61.8 40 35.2 28.5

Rural 54.9 56 32.1 37 15.2

National 63.2 57.2 38.3 34.2 31.6

Source: http://www.reportbd.com/articles (2011)

Pailac paints Elite paints

Comparing brands product portfolio

Comparing brands product portfolio (Asian paints and Berger)

Asian Paints product portfolio

Comparing brands product portfolio

Asian Paints product portfolio

Survey results from questionnaire, personal observation and one to one interview
We have done our survey on categorizing three target groups. They are Household/family circle, shopkeepers and painters. Our sample size was 50 from different places of Dhaka. We surveyed on several things on this three target group. Among them we will portray the TOM paint brand, brand usage, and TGs influential source from household/family circle category. Brand availability, consumer preference, target customers will be shown in shopkeepers category and this are the points we will put emphasize on. In terms of painter we will only show their brand preference for painting and their experience regarding different paint brands which they are used to do painting.

TOM paint brand among household

15% Berger paints 10% Asian paints Navana paints Romana paints

50%

25%

Brand usage of paint brand among household

10%

Berger paints

20%

Asian paints

Romana paints

70%

Influential source of household

70

60

60% 50

40

30

20 20% 10 20%

0 FNF Parents Colleagues

Brand availability from shopkeepers end

5% 5%

10% Berger paints Asian paints Romana paints Roxy paints 20% 60% Elite paints

Consumers preference from shopkeepers end

5%

5%

20% Berger paints Asian paints 70% Romana paints Elite paints

Target customers from shopkeepers end

20%

10%

Landlord Painters 70% Flat owner

Brand preference from painter

5%

5%

20%

Berger paints

Asian paints
Romana paints Elite paints

70%

Paint brands of which painters are uncomfortable with

Navana paints

5%

Elite paints

5%

Romana paints

10%

Roxy paints

80%

10

20

30

40

50

60

70

80

Findings and remarks (Household/Family circle)

The age group is between 30-55 years. Majority have their own houses or flats and recently done painting to their house. The current market leaders are Berger, Asian, Romana and Roxy. But from our survey we can see that Berger and Asian are monopolizing the market. The top most brand (i.e.: Berger have created a very good top of mind among the customer and still they are working on it. Quality, after sales service, huge colour archive is the top most factor that customers pay attention into and they judge the brands with this attributes. It is a very rare scenario that the person who is using Berger switched to other brands like Romana, Roxy or Elite. Same goes for Asian paints. The brand loyalty is much more higher for this two brands Romana, Roxy, Pailac and some other brands are not up the mark according to our survey and their quality, after sale service is also very bad. FNF, colleagues, parents are the most influential source for choosing paint brand and most of their vote goes to Berger and Asian paints.

Findings and remarks (Shopkeepers)

As per shopkeepers the market leaders are still Berger, Navana, Asian and Roxy.

Consumer preference goes to Berger, Asian and Romana paints.

Shopkeepers always give preference to consumers demand and choice. Shopkeepers of Asian paints, Roxy also keep Berger paints in their shop. The price of different brands varies . The price of 1 gallon (3.64 ltr.) Berger, Asian paints differs shop to shop. (i.e: Sales volume, Cost) Most of cases influence from shopkeepers is not that much, but still they give preference to consumers choice.

Commission is a confidential issue. They did not expose the amount during our survey. Target customers of Berger, Asian paints are landlord, flat owner, developers, painters.

Findings and remarks (Painters)

Painters of different places of Dhaka have a common morality for a certain brandBerger is the best Asian Paints, Romana, Roxy are the secondary preference for them. As per consumers feedback painters also agree that Roxy, Pailac or Navana dont have that much of quality comparing to Asian and Berger paints. They dont have any pro-active suggestion but they do want to have a comfortable paint brand to work with.

SWOT Analysis of Asian paints

Strength
Has a world wide repute. Huge and strong product portfolio. Financially strong.

Weakness
Absence of communication comparing other brands. Lower brand visibility.

Opportunity
Market is saturated. Within 10 years they are now in 2nd position. So they should expand this development further.

Threat
New entrants. Local brands (i.e.: Moonstar )

Communications (Berger)

Communications (Berger)

Communications (Berger)

Communications (Berger)

Communications (Berger)

TVC of competing brands

Berger paints Elite paints

Pailac paints

Berger paints campaign

Berger paints campaign

Suggestion and improvement areas for Asian paints

Time to time communication, door to door service, maintaining up to the mark standard, Excellent after sales service, online colour consultancy, brand visibility, CSR, OOH strong visibility and huge colour portfolio is the main reason for Berger to be a truly a leading brand in paint industry of Bangladesh. Our suggestion only goes for communication and marketing part for Asian paints. Implementing a strong communication and buzzing the customers will do the trick. Strong distribution as well increase brand visibility will also help the customers to be aware of this brand.

Thank you