Description
DEMAND ANALYSIS OF ASIAN PAINTS EMULSION
Objective of the research
Introduction
Research Methodology
Data Analysis and facts
Key Findings
Conclusion
Demand Analysis of Asian Paints (Emulsion)
Prepared By: Vikas Garg Manav Nath Divya Garg Prerna Kaul Gayatri Mittal Ankur Kalra
Flow of the presentation
? ? ? ? ? ? ?
Objective of the research Introduction Research Methodology Data Analysis and facts Key Findings Conclusion Limitations
OBJECTIVE OF THE STUDY
To analyse the demand of EMULSIONS of Asian Paints ? To forecast the future demand of Emulsions by taking in to consideration the potential Buyers of the product.
?
Introduction of Paint Industry In India
Oligopolistic Market ? Indeterminate Demand ? Few Sellers ? Differentiated Product ? The Indian paint industry is a $2 billion sector. ? Grew at 9% rate in the last fiscal ? Market Growth of about $200 - $400 million per year over next 5 years
?
?
Per capita consumption of paint in India is 800-900 grams compared to 15-25 kg in the developed countries
Contd…..
$ 2 b Paint Industry In India Organised Unorganised
33%
67%
Leaders in the Industry
Asian Paints (India) Ltd. (APIL) ? Kansai Nerolac Paints Ltd. (KNPL) ? Berger Paints ? Jenson & Nicholson Ltd (J&N) ? ICI (India) Ltd.
?
ASIAN PAINTS
Market Leader with 33% share in the organised paint market ? Largest distribution network ? Largest Brand Equity ? Berger Group and ICI are nearest competitors with 17% market share each ? Dominates the decorative segment with 38% market share ? More than 15000 retail outlets
?
Financial Picture of Asian Paints
Year Sales (In crores) 2008 2007 2006 2005 2004 3416.16 2821.29 2319.16 1941.52 1742.46 Operating Profit (Lakhs) 3595.53 2953.38 2447.78 2052.28 1800.63 Interest Net Profits Loans
8.27 6.87 3.83 2.75 5.27
377.89 269.93 187.81 173.82 147.58
1005.90 851.68 694.86 637.27 583
Research Methodology
Primary Research (Questionnaire) ? Sample survey ? Sample Size:
?
? Dealers
? Asian Paints Dealers ? Other Brands Dealers
? Customers:
? Existing Asian Paints Users ? Prospective Users
Data Analysis and Facts
?
3 types of consumers existing in the market divided on basis of income groups
? Premium (Prefer Emulsion) ? Average (Emulsion + Distemper) ? Poor (Prefer Distemper)
Distribution of Consumers
Poor 22% Average Premium 53% 25%
Data Analysis and Facts (Contd..)
Market Share in decorative paints Industry
J &N 12% Nerolac 16% Asian Paints 38%
ICI 17%
Berger 17%
Data Analysis and Facts (Contd..)
?
Consumers rely more on Dealers & Contractors other than ad’s
? Reasons being
? ? ? ? Info about Quality Durability Price Long Lastingness
Price sensitivity Factors
Raw material Intensive Industry ? Near half of them imported petroleum products ? Major Raw Materials:
?
? Titanium Dioxide ? Phthalic anhydride ? Peutarithrithol
Price sensitivity Factors (Cotd….)
?
Factors which influence price of paint
? ? ? ? ? Prices of the raw materials Import Policies Global Crude oil Prices Govt. Policies Packaging Costs
Elasticity of Demand of Paint
Demand for Decorative Paints is relatively Elastic in short term ? In Long term it depends on the overall economic growth ? Income of people also plays an important role ? Premium customers are more Quality conscious than price sensitive. ? Average customers are more price sensitive
?
Data Analysis and Facts
Availibility of Different Brands
92% 90% 92% 85% 70%
Asian
ICI
Berger
Nerolac
J &N
Data Analysis and Facts
?
Sales Information of different brands as projected by the dealers
BRAND 1 2 3 4 5 6 Asian Paints Dulux Berger Nerolac Shalimar Nitco
RANK
Data Analysis and Facts
Variation in Sales in different Quarters ? Comments by the dealers:
?
? Sales in the third quarter is equivalent to the rest of the year ? But, now growth in the third quarter is reduced by 10% compared with the same quarter of last year.
Feedbacks from Dealers
Not satisfied with policies of Asian Paints ? Negative Comments about the dealing of the company ? Main reason being the low profit margin compared to the other companies ? No Extra Rewards for the large dealers ? Demand more profit margin and extra
?
Key Findings
Asian paint emulsion used for interior decoration by the premium segment of customers. ? Dealers and Contractors : Tools for APIL to create a slot in the customer’s mind. ? Problems with the other brands give APIL the lead in the market.
?
Key Findings contd…
Low profit margin a great concern ? Sales rises in the third quarter. ? Little shift in the income of the average class makes them shift to the emulsion category. ? Bad credit terms.
?
Suggestions for still better Demand!
?
Dealers should get price relaxation.
Limitations !
Sample space limited to : 100 customers 30 dealers. ? Time constraint ? Dealers not co-operative ? So were some of the customers.
?
THANK YOU !!
doc_661820757.ppt
DEMAND ANALYSIS OF ASIAN PAINTS EMULSION
Objective of the research
Introduction
Research Methodology
Data Analysis and facts
Key Findings
Conclusion
Demand Analysis of Asian Paints (Emulsion)
Prepared By: Vikas Garg Manav Nath Divya Garg Prerna Kaul Gayatri Mittal Ankur Kalra
Flow of the presentation
? ? ? ? ? ? ?
Objective of the research Introduction Research Methodology Data Analysis and facts Key Findings Conclusion Limitations
OBJECTIVE OF THE STUDY
To analyse the demand of EMULSIONS of Asian Paints ? To forecast the future demand of Emulsions by taking in to consideration the potential Buyers of the product.
?
Introduction of Paint Industry In India
Oligopolistic Market ? Indeterminate Demand ? Few Sellers ? Differentiated Product ? The Indian paint industry is a $2 billion sector. ? Grew at 9% rate in the last fiscal ? Market Growth of about $200 - $400 million per year over next 5 years
?
?
Per capita consumption of paint in India is 800-900 grams compared to 15-25 kg in the developed countries
Contd…..
$ 2 b Paint Industry In India Organised Unorganised
33%
67%
Leaders in the Industry
Asian Paints (India) Ltd. (APIL) ? Kansai Nerolac Paints Ltd. (KNPL) ? Berger Paints ? Jenson & Nicholson Ltd (J&N) ? ICI (India) Ltd.
?
ASIAN PAINTS
Market Leader with 33% share in the organised paint market ? Largest distribution network ? Largest Brand Equity ? Berger Group and ICI are nearest competitors with 17% market share each ? Dominates the decorative segment with 38% market share ? More than 15000 retail outlets
?
Financial Picture of Asian Paints
Year Sales (In crores) 2008 2007 2006 2005 2004 3416.16 2821.29 2319.16 1941.52 1742.46 Operating Profit (Lakhs) 3595.53 2953.38 2447.78 2052.28 1800.63 Interest Net Profits Loans
8.27 6.87 3.83 2.75 5.27
377.89 269.93 187.81 173.82 147.58
1005.90 851.68 694.86 637.27 583
Research Methodology
Primary Research (Questionnaire) ? Sample survey ? Sample Size:
?
? Dealers
? Asian Paints Dealers ? Other Brands Dealers
? Customers:
? Existing Asian Paints Users ? Prospective Users
Data Analysis and Facts
?
3 types of consumers existing in the market divided on basis of income groups
? Premium (Prefer Emulsion) ? Average (Emulsion + Distemper) ? Poor (Prefer Distemper)
Distribution of Consumers
Poor 22% Average Premium 53% 25%
Data Analysis and Facts (Contd..)
Market Share in decorative paints Industry
J &N 12% Nerolac 16% Asian Paints 38%
ICI 17%
Berger 17%
Data Analysis and Facts (Contd..)
?
Consumers rely more on Dealers & Contractors other than ad’s
? Reasons being
? ? ? ? Info about Quality Durability Price Long Lastingness
Price sensitivity Factors
Raw material Intensive Industry ? Near half of them imported petroleum products ? Major Raw Materials:
?
? Titanium Dioxide ? Phthalic anhydride ? Peutarithrithol
Price sensitivity Factors (Cotd….)
?
Factors which influence price of paint
? ? ? ? ? Prices of the raw materials Import Policies Global Crude oil Prices Govt. Policies Packaging Costs
Elasticity of Demand of Paint
Demand for Decorative Paints is relatively Elastic in short term ? In Long term it depends on the overall economic growth ? Income of people also plays an important role ? Premium customers are more Quality conscious than price sensitive. ? Average customers are more price sensitive
?
Data Analysis and Facts
Availibility of Different Brands
92% 90% 92% 85% 70%
Asian
ICI
Berger
Nerolac
J &N
Data Analysis and Facts
?
Sales Information of different brands as projected by the dealers
BRAND 1 2 3 4 5 6 Asian Paints Dulux Berger Nerolac Shalimar Nitco
RANK
Data Analysis and Facts
Variation in Sales in different Quarters ? Comments by the dealers:
?
? Sales in the third quarter is equivalent to the rest of the year ? But, now growth in the third quarter is reduced by 10% compared with the same quarter of last year.
Feedbacks from Dealers
Not satisfied with policies of Asian Paints ? Negative Comments about the dealing of the company ? Main reason being the low profit margin compared to the other companies ? No Extra Rewards for the large dealers ? Demand more profit margin and extra
?
Key Findings
Asian paint emulsion used for interior decoration by the premium segment of customers. ? Dealers and Contractors : Tools for APIL to create a slot in the customer’s mind. ? Problems with the other brands give APIL the lead in the market.
?
Key Findings contd…
Low profit margin a great concern ? Sales rises in the third quarter. ? Little shift in the income of the average class makes them shift to the emulsion category. ? Bad credit terms.
?
Suggestions for still better Demand!
?
Dealers should get price relaxation.
Limitations !
Sample space limited to : 100 customers 30 dealers. ? Time constraint ? Dealers not co-operative ? So were some of the customers.
?
THANK YOU !!
doc_661820757.ppt