INTRODUCTION
Asian Paints is India's largest paint company and Asia's third largest paint company ? It manufactures a wide range of paints for decorative and industrial use. ? is an Indian chemicals company headquartered in Mumbai, India ? turnover of Rs 96.32 billion ? its market share is more than twice its nearest rival
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FOUR P’S
PRODUCT
AUTOMATIVE
ANCILLARIES Primers Fiillers Stainers Sealers
2k Nexa Autocolor Deltron Delfeet Aspa Enza Aquabase plus
DECORATIVE PAINTS Exterior Walls Intereior Walls Metal Surfaces Wood Surfaces
INDUSTRIAL PAINTS Protective and floor Coatings, Road Markings, Powder Coatings, Industrial Tinting System
BRANDS
Apex ? Royale ? Apcolite ? Tractor Emulsion ? Ace ? Premium Emulsion ? Utsav
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Size Innovative package size which has given a tremendous boost to the company’s brand recall ? Variety more than 8500 shades ? Service toll free number where people can dial and consult an expert in paints ? Feature introduced new features to differentiate our products by innovating Tractor Emulsion which gives a water thinnable effect
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PROMOTION
Public Relations ? Sales Promotion(Dealers & Painters meeting, Incentives & Merchandise to Painters) ? Events and Exhibitions.(Sponsors Sharad Shaman, Awards) ? Advertising ? 'Mera Wala' campaign ? 'Har Ghar Kuch Kehta Hai ? 'Badhiya Hai’’
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PLACE
operates in 17 countries ? 24 paint manufacturing facilities in the world servicing consumers in over 65 countries ? Main Plant location Maharashtra Gujarat Andhra Pradesh UP ? More than 5000 color world stores
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SEGMENTATION
GEOGRAPHICAL ? South Asia ? South East Asia ? Africa ? Caribbean Islands ? Middle East
DEMOGRAPHICS
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Occupation-Service/working professional/self employed Religion-Insignificant Socio Economic Class-B and upwards Family life cycle-Middle aged
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BEHAVIORAL
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Occasion – Holidays/Festivals and Special Occasions Benefits-Social status User status-Potential/ first time/ Regular
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PSYCHOGRAPHIC
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Social class-Upper middle class and upwards Personality- Any individual
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SWOT
Strength : ? NO.1 Player in decorative paints and 2nd in industrial paint segment. ? Wide range of products with around 8500 colours. ? Geographically well spread giving the company logistical advantage. ? International presence giving opportunity to reap benefit from international growth. ? wide distribution network i.e. 19,000 dealers. ? Highest manufacturing capacity. ? Strong financial helps the company to invest in marketing and brand recall activities.
Weakness :
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Low share from the industrial paint segment.
Opportunity :
High growth in both decorative paint and industrial paint. ? Potential in overseas markets
?
Threats :
Industry growth depends on two factors (a) Repaint activity and (b)Construction. Any slowdown in any of the two will have direct impact on the company sales. ? Aggression from existing players
?
VALUE CHAIN Primary value chain activities Inbound LogisticsRaw material constitutes around 60 % of total cost of the paint industry ? Most companies are hit by the fact that they do not make the raw material themselves ? Asian paints is the only company which manufactures PAN ? The other company have to import their stock by which they end up paying a fortune when price rise ? Asian paints benefit by selling PAN in the open market
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Transportation Company has outsourced its transport management to Dynamic Logistic Pvt. Ltd
Inventory The company prefers to maintain low inventory levels due to having large no. of suppliers at bay. The co. has 350 raw material and intermediate and goods suppliers.
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Packaging Co. has 140 packaging material vendors
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Outbound Logistics ? Warehousing The company has 72 warehouses scattered all over India.
Distribution ? Asian Paints has bypassed the bulk buyer segment and went to individual consumers of paints ? AP preferred direct contact with hundreds of retail dealers. ? Asian Paints hag gone for open door policy ? Wide distribution network of 19000 dealers
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Primary Activities are supported by-
Human Resources Management: ? Asian Paints believes that people are its strongest assets ? With a talent pool of over 4700 employees employed across 23 countries brings in a unique blend of mindsets and skills ? Excellent training is provided to develop leaders and re-strengthen competencies from within the organisation.
Technological Development : ? Asian Paints is the only company in India to have integrated Supply Chain Management (SCM) Solution from i2 Technologies,& Enterprise Resource Planning (ERP) solution from SAP. ? CRM tools are being used in Asian Paints Helpline and Home Solutions initiatives to Improve efficiency in the business as well as increase the transparency and accuracy of information across the country. Research & Development : ? At Asian Paints, R&D plays an important role in developing new products and innovations, and reducing costs ? It consists of 140 strong R&D team consisting of 7 doctorates& around115 qualified scientists ? Asian Paints' R&D team has successfully managed to develop High-end exterior finished and wood finishes inhouse.
This chain runs through a wide spectrum of functions right from materials planning to procurement to primary distribution. ? It has enhanced the flexibility of operations ? Lowered output time ? Reduced delivery costs ? which has improved customer-servicing levels and profitability.
?
POSITIONING
This is how a mental image was created about the product in the minds of people ? Brand image ? till 1990’s people would just tell the budget for painting and some mentioned the colour they need ? Company realized that people were not brand conscious but their concern was price ? To meet this Reduced the cost of Raw material by backward integration in order to reduce the cost of the paints Established an advertising strategy which created an emotional touch among the customers
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UMBRELLA BRAND
It was realized that instead of spending on individual brands and in promoting them ? it was logical to promote their corporate image and all the brands under their Umbrella Brand “Asian Paint”, which became their mother brand. ? This created a “Brand Awareness” as a whole among the customers
?
THANK YOU
doc_793533094.pptx
Asian Paints is India's largest paint company and Asia's third largest paint company ? It manufactures a wide range of paints for decorative and industrial use. ? is an Indian chemicals company headquartered in Mumbai, India ? turnover of Rs 96.32 billion ? its market share is more than twice its nearest rival
?
FOUR P’S
PRODUCT
AUTOMATIVE
ANCILLARIES Primers Fiillers Stainers Sealers
2k Nexa Autocolor Deltron Delfeet Aspa Enza Aquabase plus
DECORATIVE PAINTS Exterior Walls Intereior Walls Metal Surfaces Wood Surfaces
INDUSTRIAL PAINTS Protective and floor Coatings, Road Markings, Powder Coatings, Industrial Tinting System
BRANDS
Apex ? Royale ? Apcolite ? Tractor Emulsion ? Ace ? Premium Emulsion ? Utsav
?
Size Innovative package size which has given a tremendous boost to the company’s brand recall ? Variety more than 8500 shades ? Service toll free number where people can dial and consult an expert in paints ? Feature introduced new features to differentiate our products by innovating Tractor Emulsion which gives a water thinnable effect
?
PROMOTION
Public Relations ? Sales Promotion(Dealers & Painters meeting, Incentives & Merchandise to Painters) ? Events and Exhibitions.(Sponsors Sharad Shaman, Awards) ? Advertising ? 'Mera Wala' campaign ? 'Har Ghar Kuch Kehta Hai ? 'Badhiya Hai’’
?
PLACE
operates in 17 countries ? 24 paint manufacturing facilities in the world servicing consumers in over 65 countries ? Main Plant location Maharashtra Gujarat Andhra Pradesh UP ? More than 5000 color world stores
?
SEGMENTATION
GEOGRAPHICAL ? South Asia ? South East Asia ? Africa ? Caribbean Islands ? Middle East
DEMOGRAPHICS
?
Occupation-Service/working professional/self employed Religion-Insignificant Socio Economic Class-B and upwards Family life cycle-Middle aged
?
?
?
BEHAVIORAL
?
Occasion – Holidays/Festivals and Special Occasions Benefits-Social status User status-Potential/ first time/ Regular
?
?
PSYCHOGRAPHIC
?
Social class-Upper middle class and upwards Personality- Any individual
?
SWOT
Strength : ? NO.1 Player in decorative paints and 2nd in industrial paint segment. ? Wide range of products with around 8500 colours. ? Geographically well spread giving the company logistical advantage. ? International presence giving opportunity to reap benefit from international growth. ? wide distribution network i.e. 19,000 dealers. ? Highest manufacturing capacity. ? Strong financial helps the company to invest in marketing and brand recall activities.
Weakness :
?
Low share from the industrial paint segment.
Opportunity :
High growth in both decorative paint and industrial paint. ? Potential in overseas markets
?
Threats :
Industry growth depends on two factors (a) Repaint activity and (b)Construction. Any slowdown in any of the two will have direct impact on the company sales. ? Aggression from existing players
?
VALUE CHAIN Primary value chain activities Inbound LogisticsRaw material constitutes around 60 % of total cost of the paint industry ? Most companies are hit by the fact that they do not make the raw material themselves ? Asian paints is the only company which manufactures PAN ? The other company have to import their stock by which they end up paying a fortune when price rise ? Asian paints benefit by selling PAN in the open market
?
Transportation Company has outsourced its transport management to Dynamic Logistic Pvt. Ltd
Inventory The company prefers to maintain low inventory levels due to having large no. of suppliers at bay. The co. has 350 raw material and intermediate and goods suppliers.
?
Packaging Co. has 140 packaging material vendors
?
Outbound Logistics ? Warehousing The company has 72 warehouses scattered all over India.
Distribution ? Asian Paints has bypassed the bulk buyer segment and went to individual consumers of paints ? AP preferred direct contact with hundreds of retail dealers. ? Asian Paints hag gone for open door policy ? Wide distribution network of 19000 dealers
?
Primary Activities are supported by-
Human Resources Management: ? Asian Paints believes that people are its strongest assets ? With a talent pool of over 4700 employees employed across 23 countries brings in a unique blend of mindsets and skills ? Excellent training is provided to develop leaders and re-strengthen competencies from within the organisation.
Technological Development : ? Asian Paints is the only company in India to have integrated Supply Chain Management (SCM) Solution from i2 Technologies,& Enterprise Resource Planning (ERP) solution from SAP. ? CRM tools are being used in Asian Paints Helpline and Home Solutions initiatives to Improve efficiency in the business as well as increase the transparency and accuracy of information across the country. Research & Development : ? At Asian Paints, R&D plays an important role in developing new products and innovations, and reducing costs ? It consists of 140 strong R&D team consisting of 7 doctorates& around115 qualified scientists ? Asian Paints' R&D team has successfully managed to develop High-end exterior finished and wood finishes inhouse.
This chain runs through a wide spectrum of functions right from materials planning to procurement to primary distribution. ? It has enhanced the flexibility of operations ? Lowered output time ? Reduced delivery costs ? which has improved customer-servicing levels and profitability.
?
POSITIONING
This is how a mental image was created about the product in the minds of people ? Brand image ? till 1990’s people would just tell the budget for painting and some mentioned the colour they need ? Company realized that people were not brand conscious but their concern was price ? To meet this Reduced the cost of Raw material by backward integration in order to reduce the cost of the paints Established an advertising strategy which created an emotional touch among the customers
?
UMBRELLA BRAND
It was realized that instead of spending on individual brands and in promoting them ? it was logical to promote their corporate image and all the brands under their Umbrella Brand “Asian Paint”, which became their mother brand. ? This created a “Brand Awareness” as a whole among the customers
?
THANK YOU
doc_793533094.pptx