INTRODUCTION TO ASIAN PAINTS “Asian Oil And Paints Company”. Started in 1942 in garage by four entrepreneurs: Champaklal Choksey, Chimanlal Choksey, Suryakant Dani and Arvind Vakil. In 1967, it became 10th largest company in world.
ASIAN PAINTS-TODAY India’s Operates Asia’s largest in 21 third paint countries largestcompany with 29 paint paint mfg. company with facilities and market with leader incapital of capacity of 1114,000 cr 420 mn. countries Lts/annu . m.
BRANDING OF COMPANY IMAGE In 1954, Asian Paints asked the famous cartoonist R.K. Laxman to create a mascot for the company, and from his pen was born – Gattu, which emerged as one of Indias most memorable mascots. Brand focused mainly on mass and rural market.
BUILDING OF A NEW PRODUCT PORTFOLIO Consumer Research- “Paints are seen to rejuvenate and brighten up a gloomy place, and give room a more spacious look. Painting signifies festivity, life and plenitude.” “Celebrate with Asian Paints” - thus evolved. It also created advertising that related to specific festive occasions and also delivered regional empathy in country. Asian Paints associated with festive events across the country.
NEED FOR CHANGE Although volume displayed leadership position, but share of mind for the brand was very low. 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. The corporate campaign " Spectrum of Excellence" was aimed to increase the Salience of the brand in a quiet market.
RESTRUCTURING OF THE BRAND In order to achieve its goal, it focused on three main areas – Building the AP brand in terms of a new product portfolio. Changing its logo and packaging. The new AP was expected to be even more customer- friendly. Appointed Ogilvy & Mather (O&M) as their advertising agent.
THE CHANGING ENVIRONMENT The consumer was changing. Festivals have less important in the overall scheme of things. Too much clutter around the festival platform reducing the uniqueness of the proposition. The painting itself becoming less seasonal.
STRATEGIES Disposable Income. Urbanization. Standard of Living. Increase in GDP. Being the best performer in its industry, Asian Paints is in a good position to reap benefits of the growing economy.
EMPHASIS ON PACKAGING AND PRICINGProduct at every price pointPremium-„OPAL‟ - the premium woodfinish launched all across theCountryRoyale Luxury EmulsionEconomy- „Utsav‟ Enamel „Utsav‟ Acrylic Distemper Tractor Gold „Ace‟ : Economy EmulsionExterior paint
MARKETING, SALES & DISTRIBUTION Rural Marketing Initiatives since 1960. Distribution is one of the main strategy of Asian Paints. Advertising & Promotional Expenditure started in 1980s. Advertising Methods- Radio, TVCs, Print, Internet, OOH, POP, Retail Outlets, Seminars, Workshops. Promotional Expenditure grew from 15% in 2003 to 21% in 2008.
CUSTOMER-FRIENDLY & SERVICE ORIENTEDHelp Line- Asian Paints „Helpline‟ launched in 16 cities. Receives an enthusiastic response. The information powerhouse to the consumer. A step to bring the consumer closer to the Company. 90 % of the calls are converted to sales. Adds further value to the Corporate Brand.
CUSTOMER-FRIENDLY & SERVICE ORIENTEDHome Solutions- Asian Paints Home Solutions launched in Hyderabad. „Painting your home‟ for you. Asian Paints new website provides greater interactivity with the user. Painting solutions provided to the user. Online officer to answer all queries.
IT INITIATIVES Revamp of Existing Transaction Systems. Implementation of ERP (SAP R/3 and Business Warehouse) for improved financial reporting and analysis. To complement the SCM solution from i2 Technologies. Revamp of communication network. Connectivity using terrestrial and satellite media to all 86 locations of the company within India.
MERGERS & ACQUISITIONS Buys Taubmans Paints (Fiji) In September 2003. Acquires ICI India‟s Unit (February 2007). Sells stake in Australian Unit (June 2007).
EXPANDING INTERNATIONAL OPERATIONS Caribbean Islands Middle East Bahrain, Egypt,Barbados, Jamaica, T Oman & rinidad & Tobago. United Arab Emirates. South Pacific South East Asia South Asia China, Malaysia, Fiji, Tonga,Vanuatu, Solomon & Singapore & Thailand. Samoa Islands. Bangladesh, Nepal & Sri Lanka.
FUTURE OF THE COMPANY Asian Paints is planning to increase the capacity by setting up a plant at Rohtak, Haryana. No other company is planning to increase its capacity in the near future, this will give Asian Paints a competitive advantage in terms of pricing.
Rural markets have considerable potential. Companies that can establish a dealer network in these markets are likely to get the edge in positing above par growth rates over the next few years. As setting up distribution infrastructure is expensive, it would mean that the competition is limited to the top players. Due to substantial hike in raw material prices, Asian Paints has raised the prices of solvent based paints, thus demand would be affected to some extent.