ASIAN PAINTS    The Gattu- Spirit of Colours
Overview•   History•   Profile of products•   Marketing Mix•   BCG & ANSOFF Matrix•   Problem identification•   Strategies...
HISTORYo In the 1940’s it was largely multinational  Companies such as British paint &Jenson  &Nicholson that dominant the...
• In 1942,Four Young Mumbaikars –Champaklal  Choksey,Chimanlal Choksi,Suryakant Dani and Arvind  Vakil.• Started With a st...
• In 1954,APasked the famous cartoonist  R.K Laxman to create a mascot for the  company & from his pen was born  –’Gattu’.
Brand Leadershipa)1942-1967 Evolution Phaseb)1967-1982 Extension and Consolidation Phasec)1982-1986 The years of Excellenc...
The Evolution phase•   Stiff competition from MNC’s•   Product innovations•   Reaching rural•   Seeding relationships•   Q...
Brand Leadershipa)1942-1967 Evolution Phaseb)1967-1982 Extension and Consolidation Phasec)1982-1986 The years of Excellenc...
Extension and consolidation• Extension of the brand across borders.  International presence• Consolidation of gains/leader...
Brand Leadershipa)1942-1967 Evolution Phaseb)1967-1982 Extension and Consolidation Phasec)1982-1986 The years of Excellenc...
The Excellence Years• Launch of New technology in terms of  tinting which gave a huge fillip to shade  selling• Product in...
The Excellence Years• Despite leadership over a decade Asian Paints,  mindshare was perceived to be far lesser• It was the...
The Excellence Years• In 1983, the first corporate communcation  Objectives• (i) establishing Asian Paints as the leader i...
The Excellence Years• Launched a campaign ‘Spectrum Of  Excellence’  – a series of Press Advertisements talking of    exce...
The Excellence Years• The campaign increased saliency of the  AP Brand• In an otherwise quiet scenario, the  increase in s...
Brand Leadershipa)1942-1967 Evolution Phaseb)1967-1982 Extension and Consolidation Phasec)1982-1986 The years of Excellenc...
Moving Closer• The excellence campaigns didn’t increase  consumer feelings towards the brand• Consumer research showed  “P...
Moving Closer– Celebrate with Asian Paints - thus evolved.– It ventured to help people think of the joy that  follows pain...
Moving Closer– It established Asian Paints as a paint for all  surfaces, a paint that delivers “lasting beauty”  through i...
Moving Closer– By the end of this period,the brand ‘Asian  Paints’ achieved very high salience as well as  a highly favour...
Moving Closer• During this phase the process of product  innovation continued• Two launches one in rural and the other in ...
Brand Leadershipa)1942-1967 Evolution Phaseb)1967-1982 Extension and Consolidation Phasec)1982-1986 The years of Excellenc...
1997-99 Changing rules of the             game• There was a revamp of various  Management processes through a re-  structu...
1997-99 Changing rules of the              gameThe initiatives included:• Launch of a Asian Paints Helpline,a service to f...
Brand Leadershipa)1942-1967 Evolution Phaseb)1967-1982 Extension and Consolidation Phasec)1982-1986 The years of Excellenc...
1999- The new AP               Threats• Aggression from existing players.• The external environment saw an entry of  a lot...
Market Shares of five major players                                    AP-Asian paint                                    G...
Market Shares of five major players                                      AP-Asian paint                                   ...
Asian Paint –Sales Performance:             1998-2001Sales Value                        1373                            12...
Brands•   Apex•   Tractor•   Apcolite•   Royale•   TouchWood
Profile of products• Wall Paints  – Apcolite Royale Emulsion, Tractor Washable ,Apex    Exterior, Apcolite Finishes(interi...
Promotion• APIL Emulsion brand Royale Competed with ICI Dulux  Velvet touch in Discounting the products(3-10 Rs per litre ...
Contd• Mascot Gattu  – Indentified as Brand Icon of Asian Paints.• Uses IT systems in its operation to  improve inventory ...
Place-Plant & Facilities• It has 52 Sales offices and 14000 Distribution Channels.• Main Plant location   – Bhandup, Mahar...
APIL Ventures & Technology• APIL has Joint Ventures abroad in   – FIJI,Tongo,Solomon Islands   – Vanuata, Queensland in Au...
Market Share: APIL      Market Share: Decorative paints                3%           8%      5%                            ...
Market Share: APIL     Market Share: Industrial Paints          5%     8%           16%                                   ...
BCG• Cash Cows   – Wall Paints (Interior & Exterior Paints)   – Decorative paints• Stars   – Metal/Industrial paints   – W...
ANSOFF Matrix            Existing Products      New ProductsExisting   Market Penetration   Product DevelopmentMarkets New...
Ansoff Matrix• Market Penetration   – Wood Finishes & Metal paints• Product Development   – Wall paints( New Washable & ac...
Market Segmentation• Divided into two segments• Decorative paints-70 % of total paint  market• Industrial paints• Syntheti...
APIL Problems•   Less exports in 1998-99 due to absence of third party exports.•   65% of Cost of Production is accounted ...
Solutions & Recommendations• Vendor Development   – Promote Vendors in supplying the raw Materials Rather     than Importi...
Contd• Here in reworking Pricing strategy  – Offer Seasonal Products E.g. Diwali in North,Pongal    in south & Christmas. ...
Contd.,• Industrial paints   – tie up with Business units for longer periods.   – Take over of small companies   – In Indi...
Contd.,                            Per capita consumption of paint in kgs• Increase the Per Capita                        ...
RURAL MARKETING• Only paid company with an organised  rural network(higher product visibility)• First one to introduce SMA...
LATEST SCENARIO
SALES BREAK UP
The 5 Themes for Colour Next 09• Indigene: - Consisting of earthy tone and  shades, they represent the colours that best  ...
• Multiplicity: - A melting pot of colours. It makes way for  contrasting shades, subdued tones and everything in  between...
Results for the FY ended March               09• “Demand conditions for decorative business  improved in the fourth quarte...
PAINTS• The unorganised sector controls around  35% of the paint market, with the  organised sector accounting for the  ba...
PORTER’s MODEL• Supply : Supply exceeds demand in both the decorative as  well as the industrial paints segments. Industry...
• Bargaining power of suppliers : Price increase constrained  with the presence of the unorganised sector for the decorati...
THANK YOU
Asian paints
Asian paints
Asian paints
Asian paints
Asian paints
Asian paints
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Asian paints

  1. 1. ASIAN PAINTS The Gattu- Spirit of Colours
  2. 2. Overview• History• Profile of products• Marketing Mix• BCG & ANSOFF Matrix• Problem identification• Strategies & Recommendations
  3. 3. HISTORYo In the 1940’s it was largely multinational Companies such as British paint &Jenson &Nicholson that dominant the Indian paint marketo In order to increase revenue ,AP concentrated on the rural market ignored by multinationals.
  4. 4. • In 1942,Four Young Mumbaikars –Champaklal Choksey,Chimanlal Choksi,Suryakant Dani and Arvind Vakil.• Started With a strategy “ Going to where Consumer is”.• The R & D upgraded to International Quality in producing Phenolic & resins on its Coating.• Driven by Customer Focus and Innovative Spirit.• Mass Appeal By Gattu• Won the Prestigious Economic times-Harvard Business School twice
  5. 5. • In 1954,APasked the famous cartoonist R.K Laxman to create a mascot for the company & from his pen was born –’Gattu’.
  6. 6. Brand Leadershipa)1942-1967 Evolution Phaseb)1967-1982 Extension and Consolidation Phasec)1982-1986 The years of Excellenced)1987-1997 Moving Closer to the Consumere)1997-1999 Changing rules of the gamef)1999- The new Asian Paints
  7. 7. The Evolution phase• Stiff competition from MNC’s• Product innovations• Reaching rural• Seeding relationships• Quality Products• Ensuring service to networkAll this leading to leadership status in 1967
  8. 8. Brand Leadershipa)1942-1967 Evolution Phaseb)1967-1982 Extension and Consolidation Phasec)1982-1986 The years of Excellenced)1987-1997 Moving Closer to the Consumere)1997-1999 Changing rules of the gamef)1999- The new Asian Paints
  9. 9. Extension and consolidation• Extension of the brand across borders. International presence• Consolidation of gains/leadership status• Product Innovation in new categories• The core value getting strengthened by a series of investment into systems to ensure better product delivery
  10. 10. Brand Leadershipa)1942-1967 Evolution Phaseb)1967-1982 Extension and Consolidation Phasec)1982-1986 The years of Excellenced)1987-1997 Moving Closer to the Consumere)1997-1999 Changing rules of the gamef)1999- The new Asian Paints
  11. 11. The Excellence Years• Launch of New technology in terms of tinting which gave a huge fillip to shade selling• Product innovation• Connectivity with the sales set up
  12. 12. The Excellence Years• Despite leadership over a decade Asian Paints, mindshare was perceived to be far lesser• It was the largest manufacturer of paints in Asia and the sixth largest in the world. However, this was not perceived by the consumer• Asian Paints also seen to be a company that made paints such as distemper, ordinary enamel and emulsion paints, for the masses.
  13. 13. The Excellence Years• In 1983, the first corporate communcation Objectives• (i) establishing Asian Paints as the leader in the paint category• (ii) presenting it as a manufacturer of premium paints• (iii) establishing high salience for Asian Paints in what was inherently a low interest category
  14. 14. The Excellence Years• Launched a campaign ‘Spectrum Of Excellence’ – a series of Press Advertisements talking of excellence in AP products
  15. 15. The Excellence Years• The campaign increased saliency of the AP Brand• In an otherwise quiet scenario, the increase in saliency itself resulted in higher intention to purchase
  16. 16. Brand Leadershipa)1942-1967 Evolution Phaseb)1967-1982 Extension and Consolidation Phasec)1982-1986 The years of Excellenced)1987-1997 Moving Closer to the Consumere)1997-1999 Changing rules of the gamef)1999- The new Asian Paints
  17. 17. Moving Closer• The excellence campaigns didn’t increase consumer feelings towards the brand• Consumer research showed “Paints are seen to rejuvenate and brighten up a gloomy place, and give a room a more spacious look. Painting signifies festivity, life and plenitude”
  18. 18. Moving Closer– Celebrate with Asian Paints - thus evolved.– It ventured to help people think of the joy that follows painting rather than the tedium of the process.
  19. 19. Moving Closer– It established Asian Paints as a paint for all surfaces, a paint that delivers “lasting beauty” through its durability and good quality– It also created advertising that related to specific festive occasions in each part of the country delivering regional empathy • Asian Paints associated with festive events across the country
  20. 20. Moving Closer– By the end of this period,the brand ‘Asian Paints’ achieved very high salience as well as a highly favourable disposition– Asian Paints also seen as a manufacturer of premium paints.– Above , there was a warmth which people felt for Asian Paints • Established Asian Paints top of mind with a huge competitive edge.
  21. 21. Moving Closer• During this phase the process of product innovation continued• Two launches one in rural and the other in Exteriors gave a fillip to the overall image of the brand• A series of brand building efforts were undertaken in lower market share geographies• A lot of excitement was created by investing into communication for other brands
  22. 22. Brand Leadershipa)1942-1967 Evolution Phaseb)1967-1982 Extension and Consolidation Phasec)1982-1986 The years of Excellenced)1987-1997 Moving Closer to the Consumere)1997-1999 Changing rules of the gamef)1999- The new Asian Paints
  23. 23. 1997-99 Changing rules of the game• There was a revamp of various Management processes through a re- structuring exercise• This helped in bringing more focus to the corporate brand and aided the process of innovation in products and services• A series of initiatives launched bringing the brand more closer to the user
  24. 24. 1997-99 Changing rules of the gameThe initiatives included:• Launch of a Asian Paints Helpline,a service to fulfill the information needs of any person planning to paint• Launch of retail shops offering a series of decision making tools and shade options along with a communication campaign to create the excitement• Investing in technology to improve supply chain efficiencies and giving a platform to enter into some CRM initiatives
  25. 25. Brand Leadershipa)1942-1967 Evolution Phaseb)1967-1982 Extension and Consolidation Phasec)1982-1986 The years of Excellenced)1987-1997 Moving Closer to the Consumere)1997-1999 Changing rules of the gamef)1999- The new Asian Paints
  26. 26. 1999- The new AP Threats• Aggression from existing players.• The external environment saw an entry of a lot of multinationals trying to attack us on various segments.
  27. 27. Market Shares of five major players AP-Asian paint GN-Goodlass Nerolac BP-Berger Paint 40 ICI P-ICI Paint SH-Shalimar Decorative 30 & Decorative Industrial 20 Industrial(Market Share %) 10 o AP GN BP ICI P Sh Company
  28. 28. Market Shares of five major players AP-Asian paint GN-Goodlass Nerolac 40 BP-Berger Paint 33 ICI P-ICI Paint SH-Shalimar 30 20 18 Overall(M S %) 9 9 10 7 AP GN BP ICI P SH Company
  29. 29. Asian Paint –Sales Performance: 1998-2001Sales Value 1373 1221 (crore) 1033 911 1998 1999 2000 2001
  30. 30. Brands• Apex• Tractor• Apcolite• Royale• TouchWood
  31. 31. Profile of products• Wall Paints – Apcolite Royale Emulsion, Tractor Washable ,Apex Exterior, Apcolite Finishes(interior).• Metal Paints – Apcolite Synthetic Enamel paints,• Wood Finishes – Apcolite Wood Varnish, Wood Finishing (Matt & Glossy), Touchwood Finishes• Automotive paints – Apca NC Automotive,Krilo Acrylic Paint
  32. 32. Promotion• APIL Emulsion brand Royale Competed with ICI Dulux Velvet touch in Discounting the products(3-10 Rs per litre on Emulsion Paints).• APIL offered 1151 Different Shades.• Advertising Budget Increased Annually.• Urban Customers-Light Colours• Rural Customers- Dark Colurs• Touch Screen Facilities in shops to see the Colour Texture
  33. 33. Contd• Mascot Gattu – Indentified as Brand Icon of Asian Paints.• Uses IT systems in its operation to improve inventory levels and Delivery Schedule.• Shifting Advertising Theme – Mera Wala Concept to Mera Wala Rang to MeraGhar Concept( According To Festive Seasons)
  34. 34. Place-Plant & Facilities• It has 52 Sales offices and 14000 Distribution Channels.• Main Plant location – Bhandup, Maharastra – Ankleshwar,Gujarat – Patancheru,Andhra pradesh – Kasna,Uttar pradesh• Brand Equity makes APIL to increase Market Share by 1%.
  35. 35. APIL Ventures & Technology• APIL has Joint Ventures abroad in – FIJI,Tongo,Solomon Islands – Vanuata, Queensland in Australia• Technological Collaboration with Japan Nippon Co Ltd.,• Asian Paints Research & Development Has acquired the Reputation of being Finest in South Asia.
  36. 36. Market Share: APIL Market Share: Decorative paints 3% 8% 5% Asian Paints 34% Nerolac 6% Berger ICI J&K12% Shalimar Others Rajdoot 13% 19%
  37. 37. Market Share: APIL Market Share: Industrial Paints 5% 8% 16% Asian Paints8% Nerolac Berger9% ICI J&K Shalimar 14% 40% Others
  38. 38. BCG• Cash Cows – Wall Paints (Interior & Exterior Paints) – Decorative paints• Stars – Metal/Industrial paints – Wood Finishes(Varnish , Polish)• Question Marks – APIL products launched in Abroad thro’ Joint Ventures in Fiji ,Nepal , Solomon Islands, Australia.• Dogs – Marine Paints,Automotive paints and others( Black board paints)
  39. 39. ANSOFF Matrix Existing Products New ProductsExisting Market Penetration Product DevelopmentMarkets New Market Development DiversificationMarkets
  40. 40. Ansoff Matrix• Market Penetration – Wood Finishes & Metal paints• Product Development – Wall paints( New Washable & acrylic Emulsion paints E.g. Tractor & Emulsion acrylic paints)• Diversification – Marine Paints(Heavy Duty) ,Automotive paints( TVS Collaboration)• Market Development – Venturing APIL Products abroad
  41. 41. Market Segmentation• Divided into two segments• Decorative paints-70 % of total paint market• Industrial paints• Synthetic enamels -47 % share• 34 % of market share• Interior paints and exterior paints• Automotive paints- 50 %
  42. 42. APIL Problems• Less exports in 1998-99 due to absence of third party exports.• 65% of Cost of Production is accounted for the Raw Materials.• 40-60% of the raw materials are imported.• Due to Imports APIL Faced with more Customs Duties• Excise Duties On Coating increased• Excise Duty was levied on MRP rather than on Manufacturing Cost.• Main Raw Materials – Pthalic Anhydride, Resins – Titanium Dioxide,glycerine• Due to increasing Duties the Prices of Products had to increase.• Decline in Sales Volume during Monsoon seasons
  43. 43. Solutions & Recommendations• Vendor Development – Promote Vendors in supplying the raw Materials Rather than Importing. – Develop suppliers in supplying basic ingredients for paints(pthalic anhydride, Resins)• During Monsoon Seasons – Increase Exports to More countries (Already Captured exporting to 22 markets-Asia Pacific,Middle East,Africa)• Pricing Strategy-Due to more Excise duties – Penetration pricing – Destroyer pricing – Target Pricing
  44. 44. Contd• Here in reworking Pricing strategy – Offer Seasonal Products E.g. Diwali in North,Pongal in south & Christmas. – Increase promotional activities with regard to Regional festivals.• Achieve the target using the target pricing during seasonal products.• Offer other variety of products ( Wood Polishes) at a discounted rate during sale of Decorative paints-predator pricing
  45. 45. Contd.,• Industrial paints – tie up with Business units for longer periods. – Take over of small companies – In India there are 25 organized companies and 2000 unorganized companies. – Take over of Small companies to increase their market Share. – Refinishing old Capital equipments/metals with paints for industries @ low rates to prevent Corrosion.• Automotive paints – Increase tie up with Automotives (Already with TVS)
  46. 46. Contd., Per capita consumption of paint in kgs• Increase the Per Capita US Consumption in kgs( for 13% 0% 23% Germany Sweden india it is 0.3 kgs) 13% France 19% UK 15%• Increase Production 17% Japan India during Festive seasons
  47. 47. RURAL MARKETING• Only paid company with an organised rural network(higher product visibility)• First one to introduce SMALL PACK sizes for a wide variety of paints.• Choice of Darker Shades like green and red suiting the rural markets.
  48. 48. LATEST SCENARIO
  49. 49. SALES BREAK UP
  50. 50. The 5 Themes for Colour Next 09• Indigene: - Consisting of earthy tone and shades, they represent the colours that best describe India. Consisting of earthy tone and shades, they represent the colours that best describe India.• Earth Song:- It resonates softer colours that have a soothing effect, think environmental friendliness. It resonates softer colours that have a soothing effect, think environmental friendliness.
  51. 51. • Multiplicity: - A melting pot of colours. It makes way for contrasting shades, subdued tones and everything in between. A melting pot of colours. It makes way for contrasting shades, subdued tones and everything in between.• Homepage: - Colours that dominate the virtual world and cyber space. Of the digital era, the theme is inspired by the Gen - Y. Colours that dominate the virtual world and cyber space. Of the digital era, the theme is inspired by the Gen - Y.• Metropolis: - These are dominating colours that speak the bold language of the urban individual. These are dominating colours that speak the bold language of the urban individual.
  52. 52. Results for the FY ended March 09• “Demand conditions for decorative business improved in the fourth quarter. Our objective will be to secure growth through a host of retailing and customer centric initiatives. The industrial coatings business (including automotive paints) was impacted by the general demand slowdown. Our international operations performed well on the back of good growth in Middle East and South Asia regions.” said PM Murty, Managing Director & CEO, Asian Paints Limited.
  53. 53. PAINTS• The unorganised sector controls around 35% of the paint market, with the organised sector accounting for the balance.• Top organised players include Asian Paints (30% market share), Kansai Nerolac (20% market share), Berger Paints (19% market share) and ICI (12% market share).
  54. 54. PORTER’s MODEL• Supply : Supply exceeds demand in both the decorative as well as the industrial paints segments. Industry is fragmented.• Demand : Demand for decorative paints depends on the housing sector and good monsoons. Industrial paint demand is linked to user industries like auto, engineering and consumer durables.• Barriers to entry: Brand, distribution network, working capital efficiency and technology play a crucial role.
  55. 55. • Bargaining power of suppliers : Price increase constrained with the presence of the unorganised sector for the decorative segment. Sophisticated buyers of industrial paints also limit the bargaining power of suppliers. It is therefore that margins are better in the decorative segment.• Bargaining power of customers : High due to availability of wide choice.• Competition : In both categories, companies in the organised sector focus on brand building. Higher prices through product differentiation are also followed as a competitive strategy.
  56. 56. THANK YOU
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