Asian Paints is the market leader in the Indian paint industry with a 30% overall market share. It has a presence in 21 countries and saw 27% revenue growth in 2009-2010. The company focuses on decorative paints but is looking to expand in industrial paints. Asian Paints implemented a distribution strategy of focusing on rural and semi-urban areas, having many retail dealers through an open-door policy, and building a nationwide distribution network. This helped the company succeed where other paint companies focused only on urban areas and bulk buyers.

1. Marketing Management
…KYUNKI HAR GHAR KUCH KEHTA HAI…
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2. asian paints 06/01/162

3. Asian Paints
Asian paints- Market leader in the Indian paint industry
It has an overall market share of around 30% and a 54% market share in
the decorative paint segment.
Company registered 27% top line growth in 2009-10
The company has presence in 21 countries.
The international business grew by 29% led by the Middle East and South
Asia operations.
New plant in Rohtak to be commissioned in April’10.
The company is also looking to acquire land for its seventh plant in
Western Maharashtra.
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4. Contents
 The Indian paint industry
 The company
 Asian Paints Distribution Strategy
 The Implications of AP’s distribution strategy
 Distribution- AP’s showcase Function
 Leadership through distribution excellence
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5. Indian Paint Industry
The paint industry of India is 100 years old. Its beginning
can be traced to the setting up of a factory by Shalimar
Paints in Kolkata in 1902.
Paint industry estimated at Rs. 3600 crore or 5 lakh
tonnes.
Unorganized sector accounts to 30% of paint market.
Volume growth estimated at 15%.
India’s share in the world paint market is 0.6%.
Per capita consumption of paint in India is 1.2kg/annum.
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6. Indian Paint Industry
The industry comprises two main segments
decorative/architectural and industrial paints.
The decorative/architectural paint segment accounts for 70 per
cent of the total paint market while the industrial paint segment
accounts for the remaining 30 per cent.
The industry is, however, expected to undergo a structural shift
towards industrial paints in the next few years, when its share is
expected to go up to 50 per cent in line with the global trend.
Industrial paints thus holds greater growth potential in the
coming years.
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7. Introduction to Asian Paints
Started in 1942 by four entrepreneurs:
Champaklal choksey,
Chimanlal choksey,
Suryakant Dani and
Arvind Vakil as
“ASIAN OIL & PAINTS COMPANY.”
Within three years, their turnover reached 3.5 lacs.
In 1967, Asian paints became the 10th
largest paint company
in the world.
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8. Vision
“Asian Paints aims to become one of the top 5
Decorative Coatings companies worldwide 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.”
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9. MISSION
TOBETHELARGESTDECORATIVEPAINTCO.WORLDWIDEANDTOBE
THE5THLARGESTPAINTMANUFACTURINGCO.WORLDWIDE.
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10. Asian Paints- Today
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11. Company Profile
Product Profile
•INTERIOR PAINTS.
•EXTERIOR PAINTS.
•WOOD FURNISHES.
•WOOD & METAL
FURNISHES.
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12. Competitors
Market Shares of Five Major Players
Sr. Company Market Share (%)
Decorative Industrial Overall
1 Asian Paints 38 15 33
2 Goodlass Nerolac 14 41 18
3 Berger Paints 9 10 9
4 ICI Paints 9 9 9
5 Shalimar 6 8 7
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13. International Operations
Caribbean Islands
Barbados, Jamaica,
Trinidad & Tobago.
South Pacific
Fiji, Tonga,
Vanuatu, Solomon &
Samoa Islands.
South Asia
Bangladesh, Nepal
& Sri Lanka.
South East Asia
China, Malaysia,
Singapore &
Thailand.
Middle East
Bahrain, Egypt,
Oman &
United Arab
Emirates.
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14. Sector Composition
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15. Goodlass Nerolac has 70% share in OEM passenger car segment.
40% share of two wheeler OEM market
20% of commericial vehicle OEM market
20% of white goods market
Since, Industrial Paints need technical expertise, the company
with its joint venture with PPG industries is aggressively targeting
automobile sector.
It is now 100% OEM supplier to Hyundai, Ford, Daewoo, GM.
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16. ‘We have been able to build strong brand equity for our
products by focusing on features that are appreciated by
customers, ensuring that our products are of high and
consistent quality, offering a wide range of shades and
packs, and ensuring that our products are available
wherever and whenever required, by building a strong
distribution system.’
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17. AP strikes a new path in distribution
 When Asian Paints needed a competitive edge in the challenging Indian
marketplace, the company found a clear advantage in establishing a
leaner, more agile and cost-efficient supply chain.
 At the time AP entered market, 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.
 Wholesalers concentrated in Urban areas only.
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18. Elements of AP’s Distribution Strategy
AP bypassed the bulk buyer segment and went to individual
consumers of paints.
AP went slow on urban areas and concentrated on semi-urban
and rural areas.
AP went retail.
AP went in for an open-door dealer policy.
AP voted for nationwide marketing / distribution.
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19. Bypass the bulk segment
It recognized that bulk segment was not a growth
segment.
AP proved to the industry that consumer segment
was a large bottom less segment in paint industry in
India.
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20. Goes to Semi Urban and Rural areas
Its priority market is in Semi urban and rural areas.
Difficult to attract wholesalers in urban areas.
Not committing resources on head on collision with
already existing wholesalers and foreign companies.
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21. Goes Retail
Going directly to retail dealers was the next major
strategic decision of AP in the realm of marketing
and distribution.
While AP’s competitors remained content with their
linkage with a handful of wholesale distributors, AP
preferred direct contact with hundreds of retail
dealers.
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22. An open door dealer policy
Prevailing trend was to limit the number of dealers.
Dealer network swelled rapidly.
By 1990, AP was having a 7,000 strong dealer
network. By the year 2000, the number had swelled
to 12,000. And even now, on an average, AP is
adding 200 to 250 new dealers every year.
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23. Nationwide Marketing/ Distribution
Another strategic step in distribution.
AP voted for a nationwide distribution/marketing.
 It wanted to have an active presence throughout the
country, in all the geographical zones, states and
territories.
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24. Implications of distribution strategy
AP’s decision to turn to the individual consumers necessarily
meant a wide product range and complex distribution.
 AP made products according to customer choice.
 Smaller packs proliferated the product depth further.
 Wide product range implied expensive distribution- high inventory,
accounting/ sales arrangement etc.
Going to semi urban and rural areas further enlarged
distribution.
 AP had to go in for more dealers in order to serve the scattered semi-
urban and rural market.
 It had to go in for a decentralized, field- focussed distribution, with a
network of depots located all over the country/marketing territory.
Without such extensive and intensive distribution network, it would
not have been possible for AP to cover the semi-urban and rural
markets.
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25. Implications of distribution strategy
Going retail implied deep involvement in channel
management.
 In the system chosen by AP, the physical distribution-cum-channel
management task was far more demanding, compared to the
wholesaler-oriented system practiced by the other paint companies.
 Having taken the decision to go retail, AP necessarily had to create and
service a vast dealer network.
 It also had to create the physical distribution facilities required for
servicing such a large network.
National Marketing Necessitated Nationwide Organization.
 The moment AP voted for nationwide marketing, it was getting into
intensive as well as extensive physical distribution and channel
management. AP thus had to create a nationwide distribution-cum-
marketing organisation.
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26. 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.
 GDP growth slowdown in the growth rate of two important activities i.e. repaint activity
and construction activity will have direct impact on the volume of APL, thus effecting its
profitability and margins.
 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.
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27. PAINTERS
Manju Chandel
Vaibhav Raj Dixit
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28. References
 Ramaswamy, V.S. Namakumari, S.(2009). Marketing Management.
New Delhi: Macmillan
 http://www.business-standard.com/pdf/asian_paints_250110_03.pdf
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