Asian paints - Adverising effectiveness study


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Asian paints - Adverising effectiveness study

  1. 1. Vision<br />Asian Paints aims to become one of the top five Decorative coatings companies world-wide by leveraging its expertise in the higher growth emerging markets. Simultaneously, the company intends to build long term value in the Industrial coatings business through alliances with established global partners<br />MISSION <br />To provide paints as per market demand, ensuring desired level and quality of customer (dealer) service, continued availability of the right product mix of right quality at the right time.<br /> <br />CORE VALUES <br />• Commitment and Integrity in dealing with internal and external customers <br />•A strong belief in individual ability and creating an environment in whichentrepreneurial spirit is encouraged <br />• Ownership and Responsibility <br />• To continuously Rejuvenate every living and working space of people and bring joy to their lives <br />CORE PURPOSE <br />• To continuously rejuvenate every living and working space of people <br />and bring joy to their lives<br />INTRODUCING THE ASIAN PAINTS GROUP<br />Asian Paints is India’s largest paint company and Asia’s third largest paint company,<br />with a turnover of Rs 66.80 billion. The group has an enviable reputation in the corporate<br />world for professionalism, fast track growth, and building shareholder equity. Asian<br />Paints operates in 17 countries and has 23 paint manufacturing facilities in the world<br />servicing consumers in over 65 countries. Besides Asian Paints, the group operates<br />around the world through its subsidiaries Berger International Limited, Apco Coatings,<br />SCIB Paints and Taubmans.<br />Forbes Global magazine USA ranked Asian Paints among the 200 Best Small<br />Companies in the World for 2002 and 2003 and presented the 'Best under a Billion'<br />award, to the company. Asian Paints is the only paint company in the world to receive<br />this recognition. Forbes has also ranked Asian Paints among the Best under a Billion companies in Asia In 2005, 06 and 07,The company has come a long way since its small beginnings in 1942. Four friends whowere willing to take on the world's biggest, most famous paint companies operating in India at that time set it up as a partnership firm. Over the course of 25 years Asian Paints became a corporate force and India's leading paints company. Driven by its strong consumer-focus and innovative spirit, the company has been the market leader in paints since 1968. Today it is double the size of any other paint company in India. Asian Paints manufactures a wide range of paints for Decorative and Industrial use.<br />In Decorative paints, Asian Paints is present in all the four segments v.i.z Interior Wall Finishes, Exterior Wall Finishes, Enamels and Wood Finishes. It also introduced many innovative concepts in the Indian paint industry like Colour Worlds (Dealer Tinting Systems), Home Solutions (painting solutions Service), Kids World (painting solutions for kid’s room), Colour Next (Prediction of Colour Trends through in-depth research) and Royale Play Special Effect Paints, just to name a few.<br />Asian Paints has always been ahead when it comes to providing consumer experience. It has set up a Signature Store in Mumbai where consumers are educated on colours and how it can change their homes<br />Vertical integration has seen it diversify into products such as Phthalic Anhydride and Pentaerythritol, which are used in the paint manufacturing process. Asian Paints also operates through APPG (50:50 JV between Asian Paints and PPG Inc, USA, one of the largest automotive coatings manufacturer in the world) to service the increasing requirements of the Indian automotive coatings market. Another wholly owned subsidiary, Asian Paints Industrial Coatings Limited has been set up to cater to the powder coatings market which is one of the fastest growing segment in the industrial coatings market. Asian Paints also operates in Road Markings, Floor Coatings and General Industrial Liquid paints segments in industrial coatings.<br />INTERNATIONAL PRESENCE<br />Today the Asian Paints group operates in 17 countries across the world. It has manufacturing facilities in each of these countries and is the largest paint company in eleven countries. The group operates in five regions across the world viz. South Asia, South East Asia, South Pacific, Middle East and Caribbean region through the five corporate brands viz. Asian Paints, Berger International, SCIB Paints, Apco Coatings and Taubmans. The Group operates as:<br />􀂙 Asian Paints in South Asia (India, Bangladesh, Nepal and Sri Lanka)<br />􀂙 SCIB Paints in Egypt<br />􀂙 Berger in South East Asia (Singapore), Middle East (UAE, Bahrain and Oman),<br />Caribbean (Jamaica, Barbados, Trinidad & Tobago)<br />􀂙 Apco Coatings in South Pacific (Fiji, Tonga, Solomon Islands and Vanuatu)<br />􀂙 Taubmans in South Pacific (Fiji and Samoa). The company has a dedicated Group R&D Centre in India and has been one of the pioneering companies in India for effectively harnessing Information Technology solutions to maximize efficiency in operations.<br />Awards & Recognition<br />Awarded the "Sword of Honour" by the British Safety Council for all the paint plants in India. This award is considered as the pinnacle of achievement in safety across the world.<br />Forbes Global magazine, USA ranked Asian Paints amongst the 200 'Best Small Companies of the world' in 2002 and 2003 and amongst the top 200 'Under a Billion Firms' of Asia in 2005.<br />Ranked 24th amongst the top paint companies in the world by Coatings World - Top Companies Report 2006.<br />The Asset - one of Asia's leading financial magazine ranked Asian Paints amongst the leading Indian companies in Corporate Governance in 2002 and 2005.<br />Received the Ernst & Young "Entrepreneur of the Year - Manufacturing" award in 2003<br />STRATEGIC MANTRAS OF ASIAN PAINTS LIMITED - <br />Audacious in vision.Focus on what know best.Trim flab to achieve operational excellence.Good governance made the business senseForge stronger partnerships with supplier base.Pursue quality with zeal.Innovate to create value for customers.Good in distribution<br />STRATEGIC MANTRAS OF ASIAN PAINTS LIMITED - A WHOLE AND REALISTIC VIEW<br />Asian Paints sound marketing has earned it strong brand equity. It has been able to do it by focusing on product features that are appreciated by customers. And by ensuring that the products are of high and consistent quality and are widely available b Enviable track record in breaking away the position of MNCs in the Indian paint Industry building a strong distribution system. <br />The paint industry of India is more then 100 years old. Its beginning can be traced to the setting up of factory by Shalimar Paints in Kolkata in 1902. Till the advent of World War II. The industry consisted of just a few foreign companies and some small. Indigenous producers. Foreign companies continued to dominate the industry. <br />At the time Asian Paints entered the Indian paint business. Distribution was the most crucial task for any new entrant. Both physical distribution and channel management posed formidable challenges. The foreign companies and their wholesale distributors dominated the business. Also they were shutting the doors on any new paint company seeking an entry into the business. They concentrated on big cities where they could make the sales without much investment in distribution infrastructure and market development. <br />Asian Paints sized up the scenario and formulated a unique strategy. It went in <br />for a strategy that differed totally from the existing pattern. <br />Elements of Asian Paints Marketing Strategy <br />1. Bypassed the bulk buyer segment and went to individual consumers of paints. <br />2. Went slow on urban areas and concentrated on semi urban and rural areas. <br />3. Asian Paints went retail. While its competitors remained content with a handful of wholesale distributors. AP preferred direct contact with hundreds of retail dealers. <br />4. Asian Paints went in for an open door policy. It broke the prevailing trend in those days. Of limiting the number of dealers to the barest minimum. And chose to use practically everyone in the trade. Who was willing to function as its dealer? <br />5. Asian Paints voted for nationwide marketing/distribution. It wanted to have an active presence throughout the country. In all the geographical zones. States and territories. <br />Brand Image – USP – Positioning with Advt Examples<br />BRAND POSITIONING:<br /> <br />It is how the Asian paints enabled people to form a mental image for theirproducts in the customer’s mind. The strategies that they followed where asfollows,<br />Brand Image: <br />The ways in which Asian Paints attempted to meet the customer’s psychologicaland social needs.Indian paint industry is a low involvement industry. Till 1990speople will just tell their budget for painting their house to their contractors.And few customers will also mention the colour they need. During that periodAsian Paints analyzed the customer market and found that people where notbrand conscious but their concern was only the price of the paint. To meet thisneeds of the customer• Asian paints reduced the cost of the raw materials by backward integration inorder to reduce the cost of the paints• Established an advertising strategy with created an emotional touch among thecustomersAll these strategies helped them in creating a “Brand Image” for their productsamong people and people started realizing the need for brand conscious in thisindustry.<br />Umbrella Brand:<br /> <br />In 2004 the company realized that though they have almost 20 brands only fewproducts like Apex emulsion, Royale interior emulsion, Apcolite and Touchwood had high recall among the customers. Therefore they decided to promote Brand Portfolio: <br />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 brands “... <br />Asian Paints has embarked on an umbrella branding policy encompassing all its products and services. The project includes a new visual identity that establishes the company name as the dominant reason for purchase. Tractor, Royale, Utsav and Apcolite names are no longer the focus on the can, rather consumers will be buying "Asian Paints." Some key brand names are being retained for the time being--to signal a position in the market rather than a product or surface. For instance, Tractor will represent the "value for money" brands. <br />The immediate advantage is obvious. Rather than spread resources thinly across brands and sub-brands, a company centric portfolio can synergize communication efforts. To be competitive in a world of fragmentation and rising costs, traditional mass media, such as television, can be prohibitively costly. <br />With the umbrella-branding move, Asian Paints can also afford to move forward from a mere functional platform for each individual product to the high ground of a mood-based emotional dimension. <br />An Underlying Theme : At Asian Paints, the underlying theme is "Har ghar kuchh kehta hai," or "every home has something to say." The depth and texture visualized by this line goes into the customer's basic psyche of owning a home, and will carry through various messages emanating from the company, which is the leader in the decorative coatings market in India. <br />Asian Paints: Every Color Tells a Story <br />Asian Paints started its journey in 1942 with four young men in a garage in Bombay. The name Asian Paints was picked randomly from the telephone directory. The brand has traveled from that garage to become a Rs 1000 crore brand.From 1968 ,this brand occupies a premium position in the Indian Paint industry.The story of the evolution of Asian Paints as a brand is interesting. The brand now has an iconic status in the industry thanks to some blockbuster big ideas from O&M. The brand once positioned as a Mass market brand has evolved itself to a higher plane.Indian paint industry can be broadly divided into two segmentsa.Decorative segment which constitutes the wall paints: Exterior and Interior, wood paints.etcb.Industrial segment which consists of automotive paints, and paints for industrial sector.Decorative segment constitutes around 75 % of the total paint industry and Asian Paints is the market leader with around 44% share. In the Industrial segment, Nerolac is the marketleader.In the decorative segment, it is interesting to see how Asian Paints have changed the buying process of the product like paints. Paints are usually considered to be a low involvement product. In earlier times, the decision of the brand was taken by the builder/contractor and the home owners does not involve much in the process may be the decision of color rest with the house owners.Asian Paints realized the need for brand building even during sixties. But at that point of time, the company had a wide range of brands/subbrands. The focus of the company was on product innovation and service network and managing quality proposition. <br />The brand focused on mass and rural market. Asian Paints had a mascot called Gattu who was created by the celebrated cartoonist R K Laskhman. These efforts made the brand a leader during the late sixties.Then the company realised that although volume justified the leadership position, share of mind for the brand was very low. That was the result of the mass segmentation adopted by the brand. Rightly so because the industry was driven by channel driven promotions, building a brand at that time was" uncommon sense". During 1983, the company tried to reposition the brand as a premium brand. Asian Paints initiated the corporate campaign aimed to position the company as the number one player in the industry. The objective was to upgrade to a more margin premium product marketer The corporate campaign " Spectrum of Excellence" was aimed to increase the Salience of the brand in a quiet market.But this campaign failed to inspire any interest in the consumers and the company felt that the market is moving towards a commodity market where price is the most important differential. Asian Paints undertook a consumer research aimed at understanding the perception of consumers about the product category. The research revealed lot of interesting insights. Consumers felt that paints could change the mood of the space and it was a sign of festival and plenitude. It could make a gloomy place bright and pleasant. From this insight came the campaign of Asian Paints associating itself with festivals. Research also confirmed that customers tend to repaint their houses on the occasion of festivities. Thus born the campaign "Celebrate with Asian Paints". The campaigns were carefully crafted and there were different campaign for different regions. These campaigns effectively enhanced the brand equity of Asian Paints and established itself as a premium brand. More than that, these campaign ensured an emotional connect with a brand in a low involvement category. The brand also phased out many sub brands and rest of the sub brands was brought under Asian Paint's umbrella brand.During the late nineties the brand had to be reinvented. Because no longer festivities formed an important part in ones life. Since many brands went after festival seasons, the positioning platform has become cluttered. More over the consumer buying behavior has changed. The category was becoming less seasonal. People started associating more importance to home decor and interiors. The choice of color became a high involvement decision. From a low involvement category, paint was increasingly becoming a high involvement category.The brand also went in a brand overhaul. The logo was changed to a contemporary upmarket one designed by Entreprise IG based in Singapore. The logo/design was to convey self expression, sophistication and Technology.Thus came the birth of a wonderful positioning strategy created by O&M. The insight was that the brand is about people and homes and homes reflect the people living in it. Hence " Har Ghar Kuch Kehta Hai" translated to " Every Home has a story to tell". This campaign is a perfect example of a brand laddering up and connecting to a higher level in the mind of the customer. The campaigns reinforced the brand as a premium emotional brand.Along with the campaign Asian Paints also ran parallel ads for its sub brands. Saif Ali Khan endorsed the premium brand Royale. For Apex Ultima, the campaign was highly localized and was different in different market.<br />View Asian Paints ad here:Saif AdTaking a cue from the success of Ghar campaign , the brand took ownership of the COLOR. The insight is that each color has a story to tell. The latest campaign reflects on the color and uses the campaign " Har Rang Kuch Kehta hai" translated to "Every color has a story to tell". The brand is so serious about the color that it has tied up with IIT to explore new colors and conduct research on colors.Asian Paints is a classic branding story and the brand is still exploring and growing.<br />Asian Paints adds a splash of colour to the telly, yet again!“Life is a great big canvas, and you should throw all the paint you can on it,” said the late Danny Kaye, one of America’s leading comedians. The masterminds behind the Asian Paints commercials seems to have taken his words to heart. Asian Paints, the country’s Numero Uno player in the paints market, has always been able to forge an emotional connect with the audience at large right from the days when the adorable Gattu served as their mascot to the more recent “Har Rang Kuch Kehta hai” campaign.The latest campaign from their stable takes the ’Har Rang Kuch Kehta hai’ plank forward to ‘Har Ghar Kuch Kehta hai’. Abhijit Avasthi, Group Creative Director, Ogilvy & Mather sheds light on the thought process behind the commercial: “The brief was to build upon the ‘Har Rang Kuch Kehta Hai’ campaign, which brings alive the role of colour in home decor. The aim is to tell people how colour fires the imagination.” Of course, crafting a creative for Asian Paints will forever remain a challenge for the creative brains, as “the tone and manner of the message must always remain intact, yet the communication must keep refreshing itself for the audiences each time…” points out Awasthi. More so, when the brand already has a long heritage of great advertising in its kitty.The latest commercial sets out by focusing on two kids devising a plan to get hold of chocolates from their grandmother. The girl points towards a purple wall in the house and tells her grandmom that it’sher mom’s favourite wall: “Kyun ki mummy ko jamun bahut pasand hai!” The girl next drags the hapless octogenarian to a green wall and claims that her dad loves that wall: “Kyun ki papa ko matar bahut pasand hai.” The girl then points toward a brown wall and hopefully prods, “Yeh Chintu aur meri favorite wall hai.” The grandmother ponders the question; “brown?” to which the tot seiz- es her opportunity, “Brown nahin nani, chocolate…. Kyun ki humein chocolate bahut pasand hai!” The visibly enlightened grandmother hugs the children and the VO encapsulates: “Har rang mein chhupi ek kahani hai. Asian Paints. Har ghar kuch kehta hai.”Shot at Kamala Mills Compound in Mumbai by Prashant Issar from Corcoise Films, the cinematographer for the commercial was Ravi K. Chandran. Abhijit also makes a quick mention of Shekhar Jha and Suresh Babu, who worked on the ad-film along with him in the creatives. Shooting with kids can be quite taxing as they are prone to travelling on their own flights of fancy and thus difficult to rein in. But Abhijit quickly pointed out that since “we had shot with both these kids earlier, and so getting them to do the right things was easier this time.”“Strangely enough, the previous film on this campaign (the Cutting- Shutting ad) was shot just after July 26th last year and we waded through water to the sets. This year as well it poured like crazy and we all literally waded into the sets. Next year, when we finalize the shoot dates for the next ad we will inform the Meteorological department... it seems to be a more accurate way of predicting floods in Mumbai!” jokes Abhijeet. Yet another gem in Ogilvy’s stunning tiara, this tongue-in cheek ad stands out for its easy & poignant appeal. But then using cute kids to convey a brand message always does pay, right?<br />asian paints.campaign ( hindi )<br />The ads are to be placed in different regions in india, depending on the popularity of the particular festival.The target audience here is that certain class of people, hindus mostly who paint their houses every year during festive occasions.<br />Asian Paints: MOULDING GODLY HOMES<br />Paint Manufacturer: ASIAN PAINTS COLOUR STORE<br />Asian Paints: Chocolate<br />Consumer Survey and Report:<br />Here we have taken 15 samples of the Asian paints consumers, ref taken from Asian Paint shop and taken their feedback on advt effectiveness.<br />Questionnaire: <br /><ul><li>What did you consider before made up your mind on Painting your house?
  2. 2. How many companies did u check before finalizing on Paint company? Which were they?
  3. 3. Whats ur perception about Asian Paints on Paints?
  4. 4. Did you use Asian Paints 1st time?
  5. 5. Was it for renovating your house or for new house painting?
  6. 6. Did you upgraded from your last time selection of colors?
  7. 7. How was your experience using Asian Paints?
  8. 8. Do you feel asian Paints understand your colors need better?
  9. 9. Do you know any of their new initiatives; do you like any of their new initiatives?
  10. 10. What were the influencers on your decisions?
  11. 11. Did advertising play any role in it?
  12. 12. By advertising which ads came into your mind?
  13. 13. What did you like in that advertising?
  14. 14. Did AP advertising appealing you in your buying decision?
  15. 15. Do you have any suggestion for their advertising as well as product or company improvement?</li></ul>Analysis:<br /><ul><li>Majority were happy with using Asian Paints.
  16. 16. For household paint it has become synonymous name.
  17. 17. They even feel proud using Asian Paints being an Indian company and feel made for every Indian
  18. 18. Quality, Reliability, variety in products and Fair price comes in their mind with Asian Paints name
  19. 19. Their ads are highly appealing to them specially Har Ghar / Color Kuch Kehta Hai, Khusiyon Ke Rang Asian Paints Ke Sang and Kyun Sharmaji Naya Ghar, Nayi Gadi – Badhiyan Hai (Ad Recall Side)
  20. 20. They feel their ad becomes many times talk of the town and whether they want to buy it or not it induces them to renovate their house.
  21. 21. Colors are part of their life since everybody feels like their house is their Identity and Image; they feel Asian Paints helps them in fulfilling their need.
  22. 22. Asian Paints ads narrate colors very well.
  23. 23. They like their initiatives like Asian Paints Royale walls and expect many more to come.
  24. 24. Asian Paints pricing few felt is high compare to competitors.
  25. 25. They expect company should promote Painting expert programme so along with colors they may get newer ways to design their house.
  26. 26. Many time they are misguided with color combination so expect some solutions for it.
  27. 27. They expect their contribution towards society also with CSR.