Asian Paint Case

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Transcript of Asian Paint Case

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    By :

    Ankur Rai

    Shabbun

    Rahul Kumar

    ASIANPAINTS

    GOING WHERE THE CONSUMER IS

    An Asian Paint Wall

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    PAINTINDUSTRY

    ORGANIZED

    65%

    UNORGANIZED

    35%

    REVENUES

    TYPES

    PAINTS

    DECORATIVE

    70-75%

    INDUSTRIAL

    25-30%

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    INDUSTRIALSECTOR

    PAINTS

    AUTOMOTIVE

    COATINGS

    POWDERCOATINGS

    PROTECTIVE

    COATINGS

    DECORATIVEPAINTS

    NEW WALL

    FINISHES

    EXISTINGWALL

    FINISHES

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    INDUSTRIAL PAINTS

    ENAMELS

    EMULSIONS

    EXTERIOR PAINTS

    INDUSTRIAL PAINTS

    DECORATIVEPAINTSASIAN

    NEROLAC

    JENSON

    BERGER

    SNOWCEM

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    CURRENT STATISTICS

    Indias largest paint company

    Ranks amongst TOP 10 decorative coating

    companies in the world.

    Annual turnover of Rs 25.6 billion.

    Operates in 22 countries and has 29 paint

    manufacturing facilities in the world.

    Has been awarded the ISO 9001 certification.

    Has a 50:50 JV with PPG Industries.

    Has an exclusive chain of retail stores called

    COLOUR SHOP.

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    ASIAN PAINTS

    BERGERINTERNATIONAL

    APCO

    COATINGS

    SCIB

    CHEMICALS

    SUBSIDIARIES

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    APILs BRANDs

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    INDUSTRIAL SECTOR

    SUBSIDIARIESProtective

    coating,roadmarking,

    floor coating

    Powdercoating

    segment

    Automotivecoting

    segments

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    ASSOCIATIONS & JVs OF APIL

    50:50 JV with PPG Industries, the world leader

    in automotive coatings.

    Has a controlling stake in Delmege Forsyth &

    Company.

    Technology collaboration with Protech

    Chemicals.

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    COMPETITORS

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    MARKETING STRATEGIES

    Reaching the customers.

    Conveniently sized packs.

    50 ml packs for farmers. Bonding with dealers.

    Concentration on smaller towns.

    Mascot- Gattu

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    Contd..

    HAR GHAR

    KUCHKEHTA HAI

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    Contd..

    SOMETHINGS

    IN LIFE NEED

    A ROYALEWALL

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    EVOLUTION OF APILs ADVERTISING

    STRATEGY

    Launching of new products.

    Targeting niche segments such as D-I-Y Glass

    paints.

    Paint Clubs

    Increase Brand Visibility in TIER-II cities

    Increase product visibility. APIL should be innovative with technology, eg.

    Smart Coats.

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    Contd.

    Advertising strategies targeting the Initiators

    and Influencers rather than the buyers.

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    How should APIL, as a market leader in decorative

    Paint category, upgrade its customers to value

    added/ superior-quality/ high-margin products?Ans) It should be implemented in 2 parts

    First

    The penetration of the rural segment has to beachieved by offering them a basic product welltailored to match the low willingness to pay

    segment

    After basic penetration level has been achievedthese consumers can be offered a higher range of

    product with a view to upgrading the consumers

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    Second

    Communicate and convince the contractors andthe painters through dealers to buy the Asian

    paint low range brands (in initial period)

    Once they will realise the performance of Asianpaints as compare to their chuna, they will

    automatically switch to Asian paints

    Because it happens very rarely that a person whois using plastic paint will again go back to Chuna

    (Exceptions-economic crisis or financial problem)

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    ADVERTISING STRATEGY FOR

    INDUSTRIAL SEGMENT

    INFORMATIVE ADVERTISING

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    REMINDER ADVERTISING (Asserting its status)

    Use of existing distribution channels.

    Associations with automobile and heavyequipment industries.

    In decorative paints, Asian paints is successful

    because it is present in every segment from

    low to premium.

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    Contd.

    It should follow the same strategy in industrial

    segment too.

    It can introduce cheaper line extensions to

    cater to the needs of SSI and unorganized

    industries.