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Asian paints

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expansion strategy in international market

expansion strategy in international market

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  • 1. Welcome To ThePresentationGlobal Expansion Strategy of
  • 2. Group Members• Md. Mehedi Hasan• Kazi Nurul Islam Sohel• Ayesha Siddika• Razib Chandra Pal
  • 3. Overview Asia’s 3rd largest paint company. 38% market share in India. Currently is in the 13th position. With a turnover of Rs 77.06 billion in 2011. Operates in 17 countries. It has 24 paint manufacturing facilities. Servicing in over 65 countries. Trying to make position among the top 10 players.
  • 4. Global PresenceAsian Paints in South Asia(India, Bangladesh, Nepal andSri Lanka)SCIB Paints in EgyptBerger in South East Asia,Middle East, CaribbeanApco Coatings in SouthPacific (Fiji, Tonga, SolomonIslands and Vanuatu) Taubmans in South Pacific(Fiji and Samoa)
  • 5. History of Asian Paints It started the journey on Foras Road, Bombay in1942. The name was picked randomly from a telephonedirectory. After 25 years it became Indias leading paintscompany in 1968. Journey of a long way over 69 years.
  • 6. Market Size The Indian Paint industry is estimated at 170 billion. Organized and unorganized players at ratio of 70:30. Highest growth during the festival seasons. It expected to capture 59% of the Indian Paintindustry by 2015.
  • 7. Market Share of Asian Paints (India)
  • 8. Region wise Asian Paints Sales Contribution
  • 9. Competition Analysis More than 12 players in the organized sector. Over 2,000 in the unorganized sector. Company Industrial Market Decorative Market APIL 15% 38% KNPL 42.50% 10% Berger Paints 14.20% 11.20% ICI 7.80% 7.80% Jenson & Nicholson 8.10% 5.50% Others 12.90% 38%
  • 10. SWOT Analysis Strength: Weakness: • Market leader in overall paint market • Industrial paint sector only 15% share (44%) & in decorative paint market in India • No tie up with foreign manufactures (38% ) although it has units in several countries. • Pricing policy oriented to all kinds of • Seasonal demand and hence in off customer seasons it can lead to cash flow problems • Strong in inventory control • Widest product range in terms of products, shades • Nation wide coverage of the market SWOT Opportunity: • It can acquire / Increase market share in Threat: Industrial paint sector. • Competitors have gone in for hi-tech insta- • Developing market in automobile industry, colour spot mixing. which accounts for 50% of Industrial paint • Divestment in few foreign markets. market. • Competition is catching up fast, hi-tech • Introducing Water – based Paints. facilities gives abundant choices e.g. • Repositioning of existing Brands in Rural Nerolac is advancing rapidly in Industrial Market. market. • Broadening of Distribution Network.
  • 11. Competitors1. Kansai Nerolac2. Berger Paints3. Akzo Nobel4. Shalimar Paints5. Jenson & Nicholson
  • 12. Market TargetingInitially targeted smaller towns.Then they targeted urban areas.
  • 13. Market Segmentation Decorative Segment: • Royale • Gattu Synthetic • UTSAV Enamel • Tractor Acrylic Distemper • Apex Industrial Sector: •Apcomin Synthetic Enamel •Apcomin Synthetic Powder •Stainer •Premium surface & fillers Automotive Sector: •Allumium Paint •Fiber Paint •Apcolite Hammertone finish
  • 14. Marketing Mix (Product and Price) Sold over 800 million liters of paints in 2010-11 It crossed the Rs.6322 crore figure
  • 15. Place and PromotionPlace: 4 manufacturing units 6 regional distribution center 15,000 Dealers (Urban + Rural) 90,000 Sub dealers Exclusive 3000 Asian Paints store 4500 Color world storesPromotion: Advertising, Public relations, Sales promotion, External communication, Events & exhibitions.
  • 16. Alternative Mode of EntriesAsian Paints using following mode ofentries for their global expansion: Joint Venture Merging Acquisition
  • 17. Priority list1. Indonesia2. Singapore3. Philippines4. Malaysia5. Thailand
  • 18. Indonesia World’s 4th mostpopulous country. Valued at $1,276million in 2011 Expected to grow to$1,444 million by 2013 60% by value and 79%volume. High brand awareness,competitive pricing,extensive reach, and gooddealer networks.
  • 19. Asian Paints Exit Operation From China & Malaysia….
  • 20. China Berger Paints (China)Company Ltd. Ningbo. It is aggressively expanding itsdistribution network. Building a record of successfulprojects. 100% market share.
  • 21. Malaysia Berger International Sdn Bhdwas founded in 1997 and isbased in Klang, Malaysia. 96% market share in theMalaysian Market. Asian Paints Has only 4%market share.
  • 22. Continuing… The firm is expecting a "minor gain" Competitors are increasing gradually Competitive pressure will be strengthen
  • 23. Thank You……

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