A PROJECT REPORT ON

ASIAN PAINTS LIMITED

SUBMITTED TO PROF.N.RAJKUMAR
DEAN, IBAT SCHOOL OF MANAGEMENT
BHUBANESWAR
SUBMITTED BY
1. DIANA SAHU (71)
2. PUSPANJALI KAR (!)
". SASWATO BHATTACHARJEE (#)
$. SIBASIS MOHANTY (1!7)
MBA%I
SECTION B, GROUP NO%"
1
ACKNOWLEDGEMENT&
A successful project can never be prepared by the singular efforts but I also
demands the help and guardianship of some conversant person who under pin
actively or passively in the completion of a successful project.
Our project on 'ASIAN PAINTS LTD( would not have taken the
present form in the absence of the invaluable guidance, inspiration and cooperation
from many people.
We take this opportunity to epress our deep gratitude to !rof.
". #ajkumar, $ean, I%A& school of management, %hubaneswar who have given
us the opportunity to present this project and continuously monitored us to perform
well.
In this contet we would like to epress our gratitude and
thankfulness to !rof. '.(.)urty for providing us with his advise and support
through our project session.
We also epress our thanks to *akti +ardware, $amana,
,handrasekharpur, %hubaneswar for providing us with valuable data.
We are deeply indebted to the $irector ,faculty members of our
institute, I%A& school of management, %hubaneswar for helping us with their
support and guidance that help a lot in successfully completing this project.
-inally we epress our cordial thanks to our parents, friends for their
unmatched support , guidance and love throughout the project preparation.
1.$aina *ahu ./10
1.!uspanjali (ar .230
4. *aswato %hattacharjee .250
6. *ibasis )ohanty .13/0
*ection %,'roup "o74
1
CONTENTS
*8"O
1
,O)!O"9"&*
9ecutive *ummary
I&9)* ,O:9#9$ !A'9 "O
1 Introduction 1
4
*ituation analysis7I
,ategory analysis
*ales analysis
*hare !rice analysis
1
1
6
6
*ituation analysis7II
,ompetitor analysis
,ustomer analysis
Assumptions of planning
;
/
2
;
)arketing objectives
,orporate objective
$ivisional objective
)arketing objectives
!rogramme objectives
11
11
14
16
<
)arketing strategy7I
*trategy alternatives
,ompetitor strategy
1<
1/
/
)arketing strategy7II
!ositioning strategy
,ustomer segmentation
and &argeting
,ore strategy
13
11
1;
5
-inancial $ocuments
,ontrol *trategy
*ales forecasts budgets
!rofitability forecast
budgets
63
66
6<
4
2
)arketing
!rogramme
!ricing
!roduct
%rand
!romotion
$istribution
*ervice
#esearch
1/
12
41
44
4<
4/
45
13
2 6<
E)ECUTI*E SUMMARY
Asian !aints is India=s largest paint company and the third largest paint company in Asia
today, with a turnover of #s 43.1 billion .around >*$ <53 million0. &he company has an
enviable reputation in the corporate world for professionalism, fast track growth, and
building shareholder e?uity. Asian !aints operates in 11 countries and has 43 paint
manufacturing facilities in the world servicing consumers in over <; countries. %esides
Asian !aints, the group operates around the world through its subsidiaries %erger
International 8imited, Apco ,oatings, *,I% !aints.
&he ,ompany=s paint business in India consists of $ecorative, Industrial @
Automotive coatings. $uring the fiscal year ended )arch 41, 133<, paints accounted for
/2.1A of the ,ompany=s sales. $ecorative paints include wall finishes for interior and
eterior use, enamels, wood finishes and ancillary products, such as primers and putties.
Industrial ,oatings comprise high performance coatings, powder coatings and auto
refinish coatings. &he automotive coating segments are catered to by the joint venture
Asian !!' Industries 8td. &he ,ompany also has chemicals businesses consisting of
phthalic anhydride and pentaerythritol manufactured at Ankleshwar, 'ujarat and
,uddalore, &amil "adu, respectively.
&he Indian paint market is highly saturated with many paint companies with
varieties of product. (ansai "erolac paints 8td. %erger paints India 8td. I,I India 8td.
*halimar !aint 8td, *nowcem India 8td are the main competitors of Asian !aints. Among
them "erolac !aints have a very good market share in the Industrial !aint segment.
Asian !aints adopted some marketing objectives @ strategies. Asian paint is
ready to achieve its corporate objective by taking care of the ,ustomers, 9mployees,
%rand image, $ealer :endor relationship @ technology.,ompanyBs three divisions are
not e?ually performing well.*o it has different objective @ planning to gain the top most
position in the Indian paint market. Asian !aints has different marketing strategy for the
urban as well as the rural market in India.
6
&he company always maintaining some alternate strategy @ keeping in track
with the strategy maintaining by its competitor. In decorative sector company is strong
enough, but it need to take care of the Industrial sector so as to increase the overall sales.
,onsidering the pricing strategy of Asian paints, company has several priced
products. It starts from very low end to the premium level. Asian paints ,olour World
concept helped the consumer to choose the colour combination @ other appropriates
according to their wish from a very wide range of product. ,ompanyBs famous logo
'A&&> helped it overcome while entering into the rural market, as visualiCation has its
own effect. Other than this Asian !aints is using its website as a very good medium to
reach the highDupper middle class consumers. With these tools company is epecting to
generate much more revenue than the earlier years.
Asian paints wonderful promotional strategy helped the company to etend its
business in several other countries with success. A very attractive distribution policies @
proper distribution channel with more than 1;333 dealers helped Asian paints to spread
its business in more than 4;33 big @ small cities in India.
&he company used to maintain a very strong market research cell, which helps
them to take care of the consumers need @ intensify their #@$ accordingly. Asian !aints
approaches the environment issue from the perspective of waste minimiCation and
conservation of resources. &hus, the continued attempt is to reuse, recycle and eliminate
waste, which results in less and less waste being generated.
Asian !aints, took a huge stride towards promoting the cause of total water
management by giving )umbai .and neighboring districts like &hane0 its first &otal
Water )anagement .&W)0 ,entre, which is located in the premises of Asian !aints
manufacturing facility at %handup.


;
INTRODUCTION &
Asian !aints 8td. has a combined turnover of <43 million >* dollars. With its
strong presence in the Indian subcontinent, south 9ast Asia, -ar 9ast, *outh pacific
,aribbean, Africa @ 9urope. Along with Asian paints the group consists of *,I%
chemicals, %erger International @ A!,O coatings. &ogether the group has 43
manufacturing unit globally.
&he company was incorporated in the year 1261 in India. Asian paints have
etensively computeriCed its operations in India using the cutting edge solution provided
by *A! @ i1. It helped the company drive benefits of faster market analysis for better
decision making.
&he product portfolio of the Asian !aints group covers a large spectrum of finish
coasts @ ancillary products in decorative paints, wood finishes, automobile O9)s @
refinishes, marine @ Industrial coatings.
SITUATION ANALYSIS%1
CATEGORY ANALYSIS
&he different categories of Asian paints 8td. are E
PAINT F
,ompanyBs paint business in India consists of decorative, Industrial @
Automotive coating. In 133;73<, these accounted for /2.1A of the group sales. It is
estimated that the local market for all paints including cement paints @ other powder
products manufactured by all companies big @ small would have been around #s.2;
billion in 133;73<.
10 $9,O#A&I:9 !AI"&*F
$ecorative paints account covers almost /;A of the overall paint market in India.
In this segment Asian paint has been a leader for almost four decades. $ecorative paints
include wall finishes, for interior @ eterior uses, eamples, wood finishes @ ancillary
products such as primers, putties, etc.
<
10 I"$>*&#IA8 ,OA&I"'* F
Industrial coatings have a moderate growth rate than decorative coating, led by
the growth in automotive original e?uipment sector, powder coatings @ protective
coatings. Industrial coatings are classified into automotive @ non7automotive coatings are
classified into automotive @ non7automotive coatings. While Asian paints Industrial
coating 8td. .A!I,80 services the powder coating segment, Asian paints 8td. caters to be
remaining non7auto industrial coatings segments.
40 A>&O)O&I:9 ,OA&I"'F
&he actual look and feel of a vehicle undergoes a sea of change over time. &he paint on a
vehicle loses gloss, is subjected to a lot of wear and tear and hence starts deteriorating.
Asian !aints is not having a very good market share in this segment.
CHEMICALS &
Asian paints have chemical business consisting of !thalic Ahydride @ pentaerythritol
manufactured at Ankleswar, 'ujrat @ ,uddalore, &amilnadu. $uring 133;73<
approimately 61A of companyBs chemical was sold in7house @ rest at open market.
SALES ANALYSIS &
*ales over the last < years .in #s. crores0
Gear 11
months
)arch
1331
)arch
1331
)arch
1334
)arch
1336
)arch
133;
)arch
133<
'ross
sales
1;1<.31 1<<1.44 155/./ 1111.35 14<<.1< 153/.3;
!ercentage
increasing
7 5.24 14.;; 11.54 11.35 15.<4
"et sales 1411.45 16;3./1 1<61.1/ 1561.21 134/.;; 1644.4/
!arentage
increase
7 2./ 14.14 11.11 13.<1 12.61
'raphical representation of net sales over the period E 13317133<.
/
Net sales
0
500
1000
1500
2000
2500
3000
2001 2002 2003 2004 2005 2006
R+,-./, 01 02+34/506 F
"et sales @ operating income of stand alone entity increased to #s.16444./
million from 134/; million showing a growth of 12.61A in the year 133;7133< .)arch0.
&his is driven mainly on account of good paint volume sales growth of 14.5A @
price revisions effected during the year. -or the group, net sales @ operating income
shows an income shows an increase of 1/.6A to #s.43113 million.
Asian !aints has a steady growth over the last < years, so the financial condition is
very much stable @ it is epected to reach at the top position in the Indian paint market.
SHARE PRICE ANALYSIS&
5
In the following share price analysis of Asian paints we have considered the
closing price of share of -ridayBs for the month of )ay, Hune, Huly 133<.
&able showing the share price .on -ridays of )ay, Hune, Huly 133<0
$ate ; )ay 11
)ay
12
)ay
1<
may
1
Hune
2
Hune
1<
Hun
14
Hun
43
Hun
/
Huly
16
Huly
11
Huly
15
Huly
,losing
share
price .in
#s0
<65/./ <4/.;
;
;//.1
;
;;4.4
3
;51.
/3
;;3.
/;
;<<.
<;
;/4 ;2/.
3;
;51.
<;
;/1.
5;
;51.
1;
;5;.6
;
'raphical representation of share price
Closing share price (in Rs)
500
520
540
560
580
600
620
640
660
5
/
5
/
0
6
5
/
1
2
/
0
6
5
/
1
9
/
0
6
5
/
2
6
/
0
6
6
/
2
/
0
6
6
/
9
/
0
6
6
/
1
6
/
0
6
6
/
2
3
/
0
6
6
/
3
0
/
0
6
7
/
7
/
0
6
7
/
1
4
/
0
6
7
/
2
1
/
0
6
7
/
2
8
/
0
6
$iscussion F
&hough there is a downfall in the share price of Asian paints but it is among the
most actively traded stocks in India market. In terms of absolute daily returns the best
performer in the paint market is godless "erolac, Where Asian paints comes at 6
th
place
with a return of 1/A. &he least risky stock among the paint market was Asian paints with
daily volatility of returns of around 1.64A.
&he investment on the stocks of Asian !aints could be a good investment option
from a medium there prospective. It is the largest player in the industry with a vital
strangle hold over the decorative segment.
2
With its high level of efficiency @ developed marketing infrastructure Asian
!aints is well placed in the market @ have a very high growth prospect.
SITUATION ANALYSIS%2
Asian paints limited with its three business units decorative, Industrial @
International business is one of the largest paint company in India. It had a sell over 433
million litres of paint in 133;73<. *ignificantly the group has crossed the #s.4333 crore
turnover mark7a preset mile stone for the company.
+ere we will be analyCing three situations of the company E
.i0 ,ompetitor analysis
.ii0 ,ustomer Analysis
.iii0 Assumption on planning
1) COMPETITOR ANALYSIS F
&he Indian paint market is highly saturated with many paint companies with
varieties of product. Asian paints ltd, (ansai "erolac paints 8td. %erger paints India 8td.
I,I India 8td. *halimar !aint 8td, *nowcem India 8td are the market leaders.
+ere we are only considering the nearby competitors of Asian !aints which are
"erolac paints 8td, %erger paints 8td @ Indian chemical Imperial .I,I0 8td.
S4.+, 01 7511+3+6/ 8092465+, 56 /:+ F5646854. ;+43 2!!<%2!!=
"ame of the
company
Asian paints ltd "erolac paints
ltd.
%erger paints I,I India ltd.
"et sales .in
#s. ,rore0
1644.4/ 13<6.11 265.;6 2/1.12
SWOT analysis of Asian paints @ its competitors F
13
,O)!A"G Asian !aints "erolac paints %erger paints I,I paints
*trengths 1. )arket leader
in overall paint
market @ in
decorative paint
market in India
share 63A
1. Available in
urban @ rural
area
4. +igh Iuality
)# @ )I*
6. !ricing
policy oriented
to all kinds of
customer
1. Well ahead
leader in
Industrial paint
market
1. &ie7up with
kansai paints
provides foreign
technology.
4. )ain supplier
in the Indian
Industrial @
automobile
market main
client maruty
udyog
1. In the IInd
position in the
industrial paint
sector.
1. &ie up with
+erbert7
'ermany
valspar of >*
@ &eodor ":
of +olland
1. In the
refinishing
business it has
one of the best
?uality refinish
paint for cars.
1. In decorative
paints it
performance is
good
4. recently
purchased 62A
share of Iuest
Int. India
limited.
Weakness 1. Industrial
paint sector
only 1;A share
1. "o tie up
with foreign
manufactures.
&hrough it has
units in several
countries.
4.Innovation in
developing new
product.
1. )arket share in
decorative paint
market is very
low.
1. )arket in rural
area is poor.
4. ,onsidering
overall paint
market Asian
paint is well
ahead of "erolac.
1. Overall
market position
is not very
impressive.
1. Asian paints
@ "erolac
paints capturing
the market
buyer for
behind
1. Industrial
paint market
eistence
almost 174A
1. Overall
market conduct
poor.
1. Ac?uiringD
Increasing
1. Improve its
position in
1. come up
with new
1. )erger with
Iuest will
11
Opportunities
market share in
Industrial paint
sector.
1. $eveloping
market in
automobile
industry, which
accounts for
;3A of
Industrial paint
market.
decorative paint
segment.
1. ,apturing
whole industrial
paint market
innovations to
challenge Asian
paints @ %erger
paints
provide to have
an eperience
in foreign
market,
particularly in
>(.
&hreats
1. $omination
of few foreign
countries
1. "erolac is
advancing
rapidly in
Industrial
market
1. Asian paints is
coming up rapidly
into the industrial
paint market with
its new plants @
products
1. Asian !aints
@ "erolac
paints are well
ahead @ I,I
paint is
competing
nearly
1. %erger paint
@ there are few
new entrants in
the market.
2) CUSTOMER ANALYSIS F
Asian paint with its natural competitive advantage of siCe ."umber 1 in India0,
*trong brand e?uity @ largest distribution "etwork has ac?uired the number one position
in $ecorative segment in India.
&here are few reasons due two which the customers in the decorative segment has
been choosing Asian !aint as their brand E
1. As we know brand name has its own value @ Asian paint is the number one in
decorative segment, so a purchaser automatically leans in purchasing it.
11
-or eample, we have two different types of paints, namely Apolite glass
Aenamel @ Apolite care 9mulsion, which are from Asian !aints, "erolac paints,
%erger paints @ I,I paints. Again due to the competitive market the price is very
closed for all the companies. %ut due to the %ranch awareness of common people
they mostly tend to purchase the products from Asian paints.
1. ,ompany have provided with different varieties of product for different income
groups. -or e.g. J>&*A:K which is a low value paint, is growing at a faster rates
@ penetrating with high speed at the lower income group. &his policy is helping
the company to move from metros to small towns for branded products.
4. In India fre?uency of painting has still not increased, which is once is ; years
only. *o consumers are normally changing over to the better ?uantity @ branded
paints.
6. In 1331, Asian !aint launched a new product J&ractor 9mulsonK, which pulled
the customer who used distemper to move to emulation paints.
A88+,,5>5.5/; 01 A,546 2456/, /0 /:+ 8-,/09+3, &
Asian paints have started a 16 hours customer help centre at +yderabad. It is information
to consumers to answer their needs for any ?uery related, to their products. &hrough this
company is also getting a lot of data related to the customers need @ appreciations of the
products.
In order to provide better consumer service, company has connected all colour
world installations with Asian !aintBs main system through software @ providing
computes to dealers. &his is speeding up order eecution, electronic banking will speed
up recovery @ money transfer.
M43?+/ S:43+ A64.;,5, F
&he market share clearly shows that Asian paint is the leader in Indian paint industry.
&he nearest competitors of Asian paints are "erolac @ %arger paints. Asian paints has the
largest sells in $ecorative paints.
14
"erolac paints being widely used in Industry it has a greater share price value.
Industries like %ajaj auto limited, )aruti >dyog @ many other car manufacturing
companies use "erolac paints.
&he Industrial paint are priced with premium in comparison to the decorative
paint which is mainly used in house hold decoration.
%erger paints @ I,I paints are also providing a shift competition to Asian !aints
in decorative paint, but still there is no sign of threat from them.
Again in the Industrial sector "erolac paint far ahead of all its competitor. Asian
paint presently building up a new manufacturing unit solely to produce Industrial paint.
Asian paints annually spends on an average #s41; ,r on its selling @ marketing
epenses. It givers us an idea about the effort the company put on epanding its market in
all segments.
When customers buy the products of Asian paints E As the customers normally
uses the products of Asian paints on certain occasions like. )arriage ceremony, $ewali
or any other special occasions, other than normal paint in houses, customers are very
choosy @ brand specific. &his appreciation by the customers helped Asian paints to
become the number one paint company in India.
". ASSUMPTIONS OF PLANNING &
i. &hough Asian paints is the largest paint company in India but in industrial
sector its performance is not satisfactory. A totally new manufacturing unit is
coming up @ will start production by 133/. &his will definitely through new
challenges to "erolac paints, which is the present leader in Industrial coating
market. %ut before that, a proper introduction of positing very important to
sustain in market.
ii. With the advancement of technology the demand @ choice of people changes
rapidly. *o intensive # @ d will need to be continued to continuously enhance
the ?uality of the product.
16
iii. Internet purchasing is new becoming one of popular way to purchase. *o
ade?uate measure will be taken to satisfy customers regarding designing of
website @ providing a brief demonstration.
iv. In International market also Asian !aints has become a top paint company.
%ut its strategy regarding the international market must be reviewed at a
certain internal so as to maimiCe value.
1;
MARKETING OBJECTI*ES
F0-3 M43?+/56@ O>A+8/5B+, 01 A,546 P456/, 43+ 75,8-,,+7 >+..0C%
.i0 ,orporate objective
.ii0 $ivisional objective
.iii0 )arketing Objective
.iv0 !rogramme Objective
C032034/5B+ 0>A+8/5B+ & &he corporate objective of Asian !aint is as follows 7JAsian
!aint has become one of the top decorative company world wide by leveraging its
epertise in the higher growth emerging market. *imultaneously, the company intends to
build long term value in the Industrial coating business through alliance with established
global partner.K
With 9conomic performance as objective the organiCation now has to develop
short7term goals to reach the overall objective. &hese 'oals are usually functional target
such as production, *ales, new market develop, new product development and technology
up gradation, once the goal are determined the strategies can be evolved to meet the
goals. &he organiCation is now on the way to achieve the overall objective of 9conomic
performance.
*teps followed by Asian paints for achieving its objective F
Asian paint is following certain steps for achieving its corporate objective. &hey
are as follows F
.i0 ,ustomer Asset F &he settings up Asian paints colour world, a chain of state art paint
shop, is a major step towards building customer asset. At the same time company is
focusing more in rural areas than urban area and continuing to provide good and ?uality
service to the customer.
.ii0 &echnology asset F Asian paint is one of first Indian company to go hi7tech. Asian
paint has always kept its competitor at bay by constantly re7innovating its business
process and system.
1<
.iii0 9mployee Asset F Asian paint always praise its employee for its success in the
market. ,ompany always considers employee as a biggest factor of its success.
.iv0 $ealer vendor relationship F Asian paint always maintain a close relationship with its
dealers because company think that they play a major role in Asian paint recent success.
.v0 %rand Asset F Although it is operating in the commodity market but still Asian paint is
investing heavily in branding. 'attu7 Asian paint official mascot is very popular in India.
D5B5,5064. 0>A+8/5B+ F Asian paint has following division that are as follows F
.i0 $ecorative segment
.ii0 Industrial segment
.iii0 Automotive segment
$ecorative segment F Asian paint is the leader in this segment. It is ahead that its
competitor "erolac and %erger in $ecorative segment company still have certain
objective for this sector that to increase it sales and to ac?uire maimum position in the
market share in Indian paint market.
Objective for decorative segment F
&o epanding its range in the economy segment.
&o strengthen its position in the emulsion segment in both eterior and
interior emulsion.
&o continue its strategy of pricing aggression and increase it sales and
to gain the market share along with a good operating margin.
&o focus on the rural market as company believes as it as been its
objective since the beginning.
&o focus more on adcampaign for enhancement of their sales in urban
as well as rural market.
Industrial segment F Asian paint second line of production deals with the industrial
coating. &he constraint in these segment is that it is not as successful as the decorative
1/
segment. In these sector it has to face a stiff competition from its nearest competitor
"erolac and %erger !aints.
Objective for Industrial segment F
&o build new infrastructure in the country for Industrial coating to increase the
production capacity.
&o develop the ?uality of the product with a higher technological up gradation.
&o increase the sales of the Industrial coating with the help of proper Ad.
campaign programme.
Automotive segment F Automotive is the third segment of the Asian paint. It is a product
which company target for the automobile market in India as well as abroad.
Objective of automotive segment F
&o put emphasis on continuous improvement in ?uality and productivity.
&o put emphasis on detect prevention
&o reduce variation and wastage in the supply chain.
M43?+/56@ O>A+8/5B+ F Asian paints the leader in Indian paint Industry has a very
strong marketing division. With more than 4;A market share Asian paint is still growing
in leaps and bounce to achieve higher targets. It is changing fundamentally with two
objective in mind a huge ramp in the market share and better growth over the net three
years. !reviously company used to function as undifferentiated organiCation. %ut now
they have divided it into three section each. And each section has its own independent
support system, targets and performance parameter.
,ompany marketing objective F As follows
,ompany is using !,, :7sats based line and internal mesh to become
most networked corporation in India.
,ompany is trying to cutdown the inventory and improve the working
capital cycle for a continuous production.
15
Asian paint is highly accepted in the urban sector and now the
company is trying to access the rural market with low price product like >tsav
targeting every customer of all income level.
&o enhance their marketing in rural sector a huge amount investment
is made in adcampaign and demonstration cum sales techni?ue is going on.
&o increase its sales in the urban sector Asian paints today have 43
colour world located in different cities of India where any body can have the
real taste of the colour.
Online marketing has become an integrated part of the company and
company is trying install a strong integrated for online marketing.
Asian paints international unit, which have a dedicated marketing team
is also targeting for a rapid growth in overseal market.
Asian paint is concentrating on the development of technological in
their industrial coating so that to make the product more stronger positon in
the market. And do it they are following the product with huge ad compaign.
Asian paint is now targeting to provide paint solution with insurance.
Asian paint is following unl?ue strategy of marketing in the rural
areas by using their official mascot. According to the company it feels that
picture are more dominant than name.
Asian paint website Asian paints com provides several information
regarding the product and various other information that is being re?uired by
customer and dealer.
P30@3499+ O>A+8/5B+ F !rogramme objective is one of the main objective of the
company. +ere the company frames the strategy about the products related issue and
various other thing relating to the business. )ost of the company follows the 6B!Bs policy
namely price, product peace and promotion.
!roduct F Asian paint details with product that is .i0 $ecorative .ii0 Industrial .iii0
Automative. In decorative segment company has a wide range of product from low price
12
to high price low price product like utsav which is basically targeted to the rural customer
and high price product Ape cefirma for eterior and interior emulsion. Asian paint
investing a huge amount of fun in # @ $ sector for Iuality and the technological
development of product so that it compets globally.
!rice F the price range of Asian paint varies according to the product. Asian paint had
always a stragegy in domination in the rural sector. &he product that is supplied to the
rural area have low price range. Where as in the urban sector some of the high price
product circulates.
!lace F Asian paint is available to all types of customer and the main advantage of the
Asian paint is that it is easily accessible to its customer. At present there are 13,333
dealer and a large no. of retailer. Asian paints distribution channel etends to the thirty
state of India. Asian paints is also eporting to contrites like ,aribbean, Africa, )iddle
east Asia and south pacific.
!romotion F Asian paint follow good promotional strategy regarding their sales of the
product. &heir promotional strategy are made looking at the different category of the
product and price associated with it. In urban areas Asian paint established colour world
where the customer can enjoy the taste real colour while in rural sector it follow sales
demonstration programme along with van displaying the product of Asian paint in the
rural market. It also invest a huge amount of funds in the advertising sector for the
promotion of this product.
13
MARKETING STRATEGY 1
STRATEGY ALTERNATI*ES F
&he prospect of a paint company has many dependence like weather, occasions
like puja, id etc. when we consider the decorative segments. *o there is always a
possibility of ups @ downs in the business. %esides this there is another very important
factor i.e. the position of the competitor. &hrough Asian paints is the largest paint
company still under circumstances it will have to go for some strategy alternatives.
Alternatives available F
1. As Asian paints market is mainly the decorative segment so a downfall in that
market will lead the company in trouble them it immediate focus will turn to the
Industrial segment.
1. Importance on water based paints may recover a poor situation created due to
sustain poor weather condition in some region.
4. As there is every possibility that conventional coatings are likely to lose some
share E ecofriendly coasting is going to be very good alternatives.
6. With all countries in southeast Asia beginning to adhere to the A*9A" free trade
Area .A-&A0 that will reduce trade barriers for paints @ coatings. A reduce in
domestic market share of Asian paints then will not be a constant for growth,
became eport of paints to the foreign countries will contribute a lot.
;. Increasing the product package @ application oriented service will make company
different from others.
<. A strong post sales service division will be an important factor in building
customer loyalty.
/. &ie up with automobile sector with strong appearance will be effective.
5. 8astly but not the least price of oil is increasing day by day, which results to
increase the price of paints. If this can be controlled by stocking oil or directly
linking up with foreign cheap refineries so as get oil at least available price.
11
COMPETITOR STRATEGY &
In the Indian paint industry Asian paints is the leader keeping the other
competitors far behind. In terms of gross sales we can rank the competitors of
Asian paints as F
i0 "erolac paints .ii0 %erger !aints .iii0 I,I !aints.
In industry they are recogniCed as trailing firms. %ut with their high growth
in the industry the competitors can touch or even overtake Asian paitns, for that
the three main competitors have different strategies. Initially one common strategy
must be their mind E is to increase the market share.
"ow we are considering individual strategies of the three companies.
N+30.48 P456/, &
"erolac, despite a strong brand name has grossly underutiliCed its potential
in decorative paints. %ut in industrial paint sector it is far ahead of other
competitors. *o, its two main targets are F 7
i0 to keep hold of the Industrial paint market
ii0 increase the market share in $ecorative paint sector.
All their business strategies mainly rounded this two issues. &he different
strategies they are dealing with F
.10 &hey want to see high growths from decorative segments. In
Industrial sector their supply chasing demand strategy accumulated
lot of inefficiencies, so there is a scoe for cost reduction. *o they
want to upgrde the e?uipments to improve efficiency in
manufacturing @ secondly they are taking advantage of I& to
improve over all efficiencies.
11
.10 In decorative segment, they are logging behind the demand. *o now
set up is needed as well as they are concentrating on enamels. &hey
are installing colour dispensing machine across the country.
.40 ,oncentration on emulsions @ distempers, other words interior
paints. $istinguishing the high E low end products.
.60 &hey want to concentrate also on the automobile paint industry.
+ere they are already established but Asian paints is also targeting
this sector heavily.
.;0 Another important strategy they are considering is to involve the
vendor in their organiCational process. -or this they want to have
proper vendor management processes.
B+3@+3 P456/, F
%erger paints is considered as the dark horse of paint industry. While companyBs
main strength is in decorative sector, it has been actively pushing its presence in
the industrial paint segment. &o improve its business the company have some
strategy F
i0 ,ompany is mainly spreaded in 9astern @ *outhern part of the
company, now it is looking for a rapid epansion at the western region
also.
ii0 #ecogniCing the saturation of the urban market, %erger is targeting the
rural market.
iii0 &hey are looking to eport in nearby countries such as %angladesh,
%hutan, "epal to boost its revenue.
iv0 Within the paint industry, Industrial paint segment has a higher growth
rate. (eeping this in mind company has targeted a 1;A share of
Industrial paints in the companyBs product mi.
14
v0 %ergerBs performance in Automotive sector over the lst few years has
been fairly. +ere also they are targeting to build up some tie7up with
automobile companies.
vi0 %erger had ticups with "ippon paints of Hapan @ orica of Australia.
+ere they would like to go for the branding of products through proper
advertisement compaign @ with their new logo.
vii0 An establishment of new plant in #ussia was done in 133;, which is
epected to start production by the end of 133<. company is likely to
utiliCe the #ussian plant to cater to the markets of ,I* countries in the
future.
ICI P456/, F
Within 4 years of launch of colour future from I,I it proved to define the
International interior designing trend. &he company has invested a million dollars
in the #@$ of the colour futures concept. Which helps to forecast the international
colour trends in paints. &hough I,I is considered as the 6
th
paint against in India,
but its presence @ development can be a threat to the others.
As a part of its strategy I,I is taking the measures F 7
.i0 It is not looking at the increasing Investments but focusing on
debottenecking the capacity.
.ii0 ,onsidering the increment of channel partners.
.iii0 Improving technology @ offering better ?uality at a moderate price will
help to capture the rural market easily.
.iv0 Improved service @ solution to the customers.
&he company is slowing penetrating to both of decorative @ Industrial paint
segment.
16
MARKETING STRATEGY 2
POSITIONING STRATEGY OF ASIAN PAINTS LIMITED &
Although operating in commodity market. Asian paints have invested heavily in
branding, 'A&&>, the Asian paints official )ascot is a familiar icon across India. &he
company recently augmented their web pressure. &heir website, Asian paints.com is an
ehaustive hub of L!ainting solutionsB. &he site use )aimum interactivity to enhance
user eperience. &here are painting lips, online shades cards, cost calculation .based on
floor area and number of rooms3 dealer locator and a short of other innovative services.
-rom the perceptual map we can understand that Asian paints, have wider range
of products for all type of customers consisting of different income levels. It has a
product range from #oyal 9mulsion, !riced 1;37633 which is targeted for up market
buyers. +pcolilen is a product which is targeted for high income and upper middle class
people. -or lowers income group it has >&*A:, &#A,&O# 9)8*IO" which priced
vary from 637133 #upees. &hese products are mainly targeted to #ural customers.
In Industrial segment companies position is relatively weak here Werolac paints
captured more than ;3A market share. In this segment Asian paints have products like
Apcomin synthetic enamel which is used for industrial coating, and Apco synthetic
power which is used in automobile sector. In this segment also Asian paints faced stiff
competition from %erger and I,I !aints. %ajaj automobiles in the main customer of Asian
paints in automotive sector.

1;
POSITIONING STRATEGY OF ASIAN PAINTS
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CUSTOMER SEGMENTATION D TARGETING &
,ustomer segmentation is the most important part of the marketing strategy of any
company. Asian paints, the market leader in the Indian paint market segmented their
products mainly in three sectors. .i0 $ecorative .ii0 Industrial .iii0 Automotive. &heir
customers are all also segmented based on the usage of these products.
CUSTOMER SEGMENTATION F
Base ecorati!e coating "n#$strial coating %$to&oti!e coat
're&i$& (e#i$& 'op$lar )igh
per*or&ance
coating
'o+#er
coating
,$alit-
coating
.inishe#
coating
B$-er
ccharacteristi
c
/p &ar0et
1$-ers
achie!er
2$alit- 3
*ashion
4ec0er
)igh
inco&e
gro$p 3
/pper
&i##le
class
4ociall-
conscio$s
(i##le
class 3
r$ral
&ar0et
&ostl-
lo+
inco&e
gro$p
/se# 1-
*ertili5er
petroche&icals
3 ato&ic
energ-
installations
&ainl- $se#
+here to
re#$ce
corrosion le#
losses
/se# 1-
&an$*act$rer
s o* +hile
goo#s 3 other
in#$strial
pro#$cts
6arge 3
s&all
scale car
in#$strial
&ostl- tie#
$p
co&panie
s
7l# cars are
&ainl-
recolo$re#
8e-
p p$rchasing
*actor
,$alit-
s$r*aces
in*l$ences
,$alit-
s$r*aces
sha#es
Cost ,$alit- 3
$tili5ation
po+er
,$alit- 3 cot ,$alit-9
s$r*ace# 3
conting
strength
Brightness 3
cost
1/
4earch 3
:!al$ation
Bran# lo-al Bran#
lo-al ;
Cost ;
!ariet-
see0ing
Cost /tilit- <ariet-
see0ing
Bran#
lo-al
Cost;
!ariet-
see0ing
'$rchase
Co&pan-=s
%$thorise#
#ealer
paints the
c$sto&er
ho$se
thro$gh
#ealer
paint or
p$rchasing
paint co&
o* 1929 59
109 litre
'ac0et
or paint
can
Co&pan-
approaches 3
points #irectl-
sol#
7ther
&an$*act$res
paints can
>ie $p +ith
the anto
co&pan-
7l# !ehicles
sen# to +or0
shops or
p$rchase
'ost
' '$rchase
% +arrant-
perio# *or
so&e
-ears
6i&ite# or
no
+arrant-
No
+arrant-
)igh scale
ser!ice o*
+arrant-
(e#i$& or no
+arrant-
4er!ice
pro!i#e#
*or li&ite#
-ears
4er!ice
pro!i#e# *or
0?2 -ears@

(ar0et
%sian paint is the &ar0et paint
lea#er9 +ith &ore than 50A &ar0et
share@ Nerolac9 1erger9 "C" 3
4hali&ar are there
Nerolac is the &ar0et lea#er@
%sian paint ha!e onl- 12A
&ar0et share@ 7ther pla-ers B
"C"
Nerolac &ar0et lea#er9
50A share
%sian paint penetrating
slo+l-
TARGETING &
Asian paints have an uni?ue customer targeting strategy. &hey used to follow : tier
customer E &arget strategy.
15
&ires
&ires 1

&ire 1 &ire 6 &ire 4
&ire E 1 7 In the recipient end there are strategic solution seekers. ,ompany thinks of
cost reductions, performance @ productivity improvement for clientBs improving
customers @ share holder profitability.
&ier E1 E +ere the ,ustomers whom can be considered as the value or brand sensitive.
Asian paints target this customers with value added :$* integration customer level
service.
&ier E4 E &hese part of the consumer are price sensitive. &hey least bothered about the
service. &hese are mainly middle or low income group people Asian paints have several
brand like >&*A: E to serve them.
&ier76 +ere the company targets the small manufacturing @ local companies, which can
generate revenue, company utiliCes its @ business @ telesales technology to address @
satisfy their needs.
&ier7; E &his tier is composed of specific targeted companies that although small in siCe,
deserve special attention because they are highly innovative in nature. Asian paints have
a good prospect over here.
CORE STRATEGY OF ASIAN PAINTS LIMITED & %
An origination like Asian paints will always restrict itself for its core strategy on
LinnovationB. -or an organiCation like Asian paints to create a strong future, it has to bred
innovation continuously. &his strategy of innovative facts will help any organiCation to
fulfill their commitment and integrity in dealing, with internal and eternal customers.
12
-or this core strategy of innovation Asian paints encouraged entrepreneurship.
&hey also give grater autonomy to managers in their reasonability. organiation also
develop high tolerance for failures and encouraged risk taking.
Asian !aints another important core strategy is of managing people and
technology which are also the two important assets.
As it is always a people focused company its employees are the main leaders who
bring a difference to the company.
Asian paints has stressed on employee development and creating leaders of
tomorrow. It always have strong belief in individual ability and creating an environment
in which an entrepreneurial spirit in encouraged. &his is why Asian paints have believed
to be a best employees for personal and personal growth.
Along with )ass customiCation, Asian paints has created a plat form
where &alent is shared across the organiCation as )anager are given in different areas of
operations. It gives Asian paints on overall good perspectives of business along with
challenges of chandelling new Ares of operations.
&he second most important core strategy of Asian paints limited is its technology.
&echnology includes both research and development and information technology. Asian
paints has used technology throughout its year to gain a competitive edge in the market
place today, the company has formulated the entire range of decorative coatings though
home grown technology. It has used I& as a tool to bring efficiencies and stress line
operations. &his applications will continue in future and Asian paints will not hesitate in
making investment in these areas to gain advantages of the organiCation.
&he &hird but important core strategy of Asian paints. In #econfiguration of value
chain activities F
It is a key task for Asian paints to retain competitiveness and achieve highest
value cost leveraging. +ere a Iuestion arises that as per this given re?uirement who were
the (ey initiatives taken by Asian paints during the last ; years in this regard.
In last ; year, reconfiguration of value chain activities to increase competitiveness
has been one of the )ajor core area of Asian paints. An fact Asian paints has been drain
43
stormed as an organiCation with highest sales and profit figures. %ut most important has
been initiatives under taken in all areas of operations to increase efficiencies some of the
key initiatives undertaken are F
7 Initiatives in manufacturing to reduce losses at factory.
7 *ourcing efficiencies
7 *urat eisting assets for better productivity
7 Introduction of new technology to drive efficiencies and increase productivity.
7 Implementation of new supply chain solution.
7 Implementation of an 9#! solution.
%esides the above Asian paints have focused on continuously improving
environmental )anagement standards at our plants. &oday all Asian !aints
manufacturing facilities are accredited with I*O 1633D certification for environment
management standards. &hese systems have enable company to reduce affluent from the
manufacturing facilities. &he introduction of new supply chain has transformed
management of inventory and forecasting has brought significant benefit for the
company through reduction of working capital. It has completely changed the manner of
functioning of the supply chain division.
MARKETING PROGRAMME
PRICING
Asian paints limited with its three business units decorative, industrial @ International
business is one of the largest paint company in India. It has a sell over 433 million liters
41
of paints in 133;73<. *ignificantly the group has crossed the #s.4333 crores turnover
mark a preset mile stone for the company.
!roducts and its price ranges F
&he various products and its price ranges are as follows F
!roduct !rice range
EE/+3503&%
Asian !aints Ape !rice of 13 lts. #ange from
#s.4161.33 E 4415.33
Asian !aints Ace !rice of 13 lts. #anges from #s.1/<1.33 #s.
13;2.33
Asian !aints &ractor 9mulsion !rice of 13 lts. #anges from #s.164;.33 E
#s. 136/.33
Asian !aints *uper $ecoplast !lastic
9mulsion !aints
!rice of 13 8td. ranges from #s.1142.33 E
#s.1;66.33
Asian !aints Interior Wall -inish E )att
.White0
!rice of 13 lts. Is #s. 1166.33
Asian !aints Interior Wall -inish E 8uster
.White0
!rice of 13 lts. Is #s.1411.33
!roduct !rice range
Asian !aints &ractor *ynthetic $istemper Its price ranges from #s.<23 to /;/
Wall -inishes It range from #s.6<457 #s,62/;
Asian !aints #oyale &he price for 13 lts. #anges from #s.6<457
#s.62/;.
Asian !aints !remium 9mulsion #ange of 13 lts of this product ranges from
#s.1<657#s.4115
9namels
41
Asian !aints Apcoute !remium 'loss
9namel
-or 13 lts the range varies from #s.13<5 to
#s.14;3.
Asian !aints 'attu *ynthetic 9namel -or 13 lts the range varies from #s. 16;5 to
#s.154<
Asian !aints >tsav 9namel -or 13 lts the range varies from #s.161; to
#s.1<;1.
*tainer, Aluminium !aints @ Others
*tainers
Apcolite >niversal *tainers -or per bottle in plastic bottle of 133ml the
price ranges from #s.617#s.//.
>tsav *tainer -or per boltle in plastic bottle of 13 ml its
price is #s.46.
Asian !aints Wood *tains -or per bottle in plastic bottle of ; lts the
range varies from #s.13337#s.11;3.
Aluminium !aints .Asian paints 4
mangoes Aluminium0
-or 13 lts its price is #s.1;24
9ffect of price on futureF
In the present economic situation, the '$! growth is epected at <A for cude oil price
are soaring. Industrial sector has declined at a low rate with continuous slowdown
increment sector. &here is depreciation in rupee.
$espite such discouraging macroeconomics it is creditable that Asian paints has posted
very good result.
Asian !aints is trying desperately to keep the same price overcoming the constraints.
44
PRODUCT
Asian paint produces a wide range of products which have more than 1133
shades. &heir product were targeted to the different segment of the society. &he cost of
the produce of Asian paint varies according different income level of the consumer.
,ompany follows the principle providing the customer different kind of products and
different price. In companyBs $ecorative premium sector company have products like
Asian paint #oyals and Asian paint 9mulsion. &he cost of these product is #s.1/; and the
latter #s. 131 where the product like 'A&&> and >tsav7family product are targeted to
lower income segment people the cost varies from #s.1; E #s. 13.
!roducts of Asian paints in decorative segment F
As Asian !aint is the leader in the decorative segment in the Indian paint market it
has wide variety of product. &he products are F
.i0 Asian !aints #oyale
.ii0 Asian !aints !remium 9mulsion
.iii0 Asian !aints Apcolite !remium 9namel
.iv0 Asian !aints 'attu *ynthetic
.v0 Asian !aints >tsav 9namel
.vi0 Asian !aints &rator Acylic $istemper
.vii0 Asian !aint >tsav Acrylic $istemper
.viii0 Asian !aint Ape
.i0 Asian !aint Ace
.0 Asian !aints &ractor *ynthetic $istemper.
Asian !aints #oyale F &his product of Asian paint is targeted to higher income group and
customer of urban area. &he product contains different shades and price of each shade
very. 9.g. #egal white
46
Asian !aints 9mulsion F it is another product which is targeted to urban area. It is high
price premium product. &he shades are white, palm group and base.
Asian !aints 'attu synthetic F It is a product which is targeted customer of reral area. It
price varies #s.1; to #s.113 and it has different shades like white, A?uamarine, ACure
%lue and etc.
Asain !aints >tsav !aint F it is product which is targeted to lower income people as well
as rural customer. &he various shades were Adyrey, backN, white, super white and etc.
Asian !aints Ape F &his product is one of the major product of the saian paints as this
product is targeted to middle class people and avg income level. &hese paint have wider
range of shades such as classic white, blue ice, Alliance, Anti?ue white, sweet time and
etc. &he price varies from #s.1537#s. 11;.
!roducts of Asian !aints in Industrial sector F it is the second category of the product that
Asian paint produces. In this segment Asian !aints targets to industry where the paint are
used for protective coatings of the machinery. #oad mapping and various other industrial
uses. In these segment the product are normally sold at the premium price. Asian paint in
these sector is behind its competitor "erolac. "ow Asian !aints is trying a lot to improve
the product technology and by bringing new product in this sector to compete with its
competitor. &he products are
.i0 Apcomin *ynthetic 9namel
.ii0 Apcomin *ynthetic !owder
.iii0 *tainer
.iv0 !remium surface @ fillers
&hese products are based on high technological products and are used for asset
.)achinery, tools, e?uipments0 coloring and upcoming synthetic powder is used as
lubricating agent in the machinery. !remium surface and fillers and strainers are used in
for road marking and various other tings in the Industrial sector.
!roduct for automotive sector F &his is the third category of product which is produced by
Asian paint. &hese segment is slowly being emerging great user of paint in the Indian
market previously automotive company used to import the product from other country.
4;
%ut now some companies like Asian paint, nerolac, %erger have their products in this
segment. &his sector is emerging market in India.
!roducts F &he products of Asian paint in this segment are
.10 Allumium !aint
.10 -ibre !aint
.40 Apcolite +ammertone finish
%asically the product in this segment are new but the product are in the great
demand automotive vehicles in India. &he product are available in different colour
basically they are used for colouring the vehicles and the spare parts.
!roduct life cycle F !roduct life cycle suggests the different stages that a product
undergoes during its life cycle Introduction stageF In these stage the product are
introduced to the market.
.i0 'rowth state E In growth stage the product gens the memeenturn an grows
rapidly in these stage.
.ii0 )aturity F In these stage the product attains the saturation level it reaches its
maimum point and from that point it starts downfall.
.iii0 $ecline stage F In these stage product slowly goes downward in to the slope
because of low demand and various other things. It end stage of a product.
BRAND
a brand is a name, term, sign, symbol, design or a combination of all which is build
intended to identify products or services of a company to differentiate it from its
competitor. Asian paints, the largest paint company in India have established its position
as a great brand. Asian paints promise to deliver consistently a specific set of features,
benefits @ services to buyers.
4<
Asian paints as a brand name is very much attached with allits products. What evr
may be the product, like ultima, 9mulsion, wall finish lustce, Apcolite premium in the
urban area or the >&*A: at the rural area, the brand name is directly attached.
&he brand name Asian paints brings to the mind of people certain attributes lie E
wonderful coloring, royal treatment, 1333Bs of colour combinations, pricing not an
important factor of concern as the company provides products for all category of
consumers. !ost purchase service is also an important issue related to brand name.
Asian paints %rand etension policies helped them to reduce the effective cost of
launching new colours products in new form, with new name. 8ine 9tension techni?ue
of branding helped them to go with new forms like E Asian paints >&*A: 9namel,
Asian !aints &ractor 9mulsion, Asian paints #oyal.
,ompanyBs universal logo J'A&&>B which is not going to be a logo anymore,
helped Asian paints to promote its products in through out India, particularly in rural
areas it got the most popularity.
Asian paints is using its website as a very strong mode for the promotion of
%rand. &he wonderful information related to pre7painting @ after sales services helped
the company to build its uni?ue brand. &he on7line services, colour world @
Advertisements also helped to build the %rand of Asian paints.
PROMOTION
Asian paints the market leader of the decorative segment in the paint market of
the India. As it is not for behind in the other tow section that is industrial coating and
automotive coating. In achieve the current position a lot things are being done by the
Asian paints. &he promotion strategy of Asian paints is bringing a lot of positive output
to the company. ,ompany is using different techni?ues such ad. ,ompaign, sales
promotion, personal selling, driect marketing and public relation.
4/
!romotion strategy F
$irect response marketing F Asian paints is using :7sts based in the and 16 hours online
customer help line service open. In enable the customer to interact with the company
and know the details about the product, pricing and many things related to the company.
Asian paints is dominating the television advertisemnt by increasing other ad
campaign cost over ;3A from net year. A total amount of 5; crores is spent ont eh ad
campaign by asian paint. With huge ad campaign support behind the product the
company is able to making a brand name in the mind of customer. &heir particular ad
campaign L)era Walla %lueK Jhar ghar kuch kehta hiaK are being liked by the customer.
Online marketing for urban customer F Asian paint online marketing system is helping
company in lot of ways many customer all the necessary information to the customer. It
is an uni?ue way of promotion.
,olour world F Asian paint had established 43 colur world thorugh out the country giving
the people real taste of colur. &he punchline for the colour world is JHjahan )ilen world
ke saare colourK
!romoting in different cities F Asian paint have large area of "etwork of distribution. It
has almost retail outlets through out the country situated in the different city of India. All
the customer could easily access the product of Asian paint anywhere and any time.
Promotional strategy followed by Asian paints in rural market
On of thing which is contributing to the profit of Asian paint is that its entry to the
rural market. As Asian paint gets an competitive advantage from its competitor in this
sector. As "erolac and %erger were only targeting the urban customer.
-irst of al Asian paint is bring different low cost product like >tsav group in the
rural market.
&here packaging very from 133gm to 1 kg Nand prices are also relatively low.
&o enhance their sales in the rural market they are spending a huge amount of
money in ad campaigns.
45
In rural areas they follow sales demonstration programme where they demonstrate
their different product where a large no. of discount is given on the product, lucky
coupons, free gifts are given to the customer.
)oving vans are being employed to sell their product in different village.
Promotion in international arena
Asian paint is taking we from the domestic market and promoting its product in the
international market with establishing colour world in those place particularly ,aribbean,
Africa )iddle east Asia and south pacific. A huge amount fund is invested adcapaign for
these product in the international market.
!romotion through Ad campaign F Asian paint has different brands over 1133 shades
targeting different segments. &he company decide to promote all the brand under one
name of JAsian paintB &his was a advantage for Asian paint in the 8ow involvement
segment as the people asked the paint by brand.
&arget Audience F &he primary target audience for all of the brands marketing and
communication activities has been the adult male who is the primary decision maker.
+owever female members of the house play an important role in selecting a shade so a
large number of ad are done keeping in mind that thing..
&he non7sue of caps in the headline as in the original ad JAsian !aintK logo which
is sin similar font, the design is meant for better readability and structure of colour
used.
&he company mascot J'attuK an impish boy with the paint tin and the brush, is
most popular and easily reconciled and is one of the ideal mascot.
*ates promotion F Asian paint uses it sale promotion as key ingredient in its marketing
campaign. It consist of various incentive designed to stimulate faster or greater purchase
of their products.
'iving discount to the dealer O Asian paint gives certain amount of discount to the dealer
if he increases the sales of the company product.
42
*pecialty advertising F 'iving Asian paint &7shirt, ,aps and other small things to painter
for their advertisement.
&rade show F Asian paint always open its stall in the Industry trade so that it products
would be promoted globally.
,onsumer preference F &he customer of Asian vary from a period to a big industry in
order to enhance it sales it gives price discount on bulk amount of purchase. &he
company give coupons inside the paint pack so that could be taken by the customer as a
gift from the company. Asian paint always try to improve the packaging of the product. If
the product would be fancy and stylish then it would increase the sales of the products.
As industrial coating is one of tis major product the company uses the name of the
company it supply the paint for its promotion.
&he promotional strategy adopted by Asian is ?uite uni?ue apart from having such
good strategy the company is using high profile brand ambassador like Akshay (hanna,
*aif AlikhanK to promote their product in the paint market. !romotional strategy of Asian
paint is always aimed looking at customer and this needs and for this strategy company is
enjoying the "o 1 !osition in the Indian paint market.
DISTRIBUTION
Asian paints have an etensive distribution channel through out the country. It
used to maintain uni?ue channel from the manufacturer to the customer. $istribution
system at Asian paints F 7
1. )ultiplant $istribution setup.
"either geographic nor product specific.
Offers fleibility @ variable cost advantages
1. *ervicing has been key competitive advantage.
4. Around 1;333 dealers serviced from around 5; sales location.
63
6. #ole of distribution department is to ensure timely product availability at these
locations at minimum cost.
&he company ahs 6 manufacturing facilities @ more than 1533 stock keeping units
.*(>s0 &hese are supported by < regional distribution centers, which cater ;; deposits.
9ach depot is having branch manager for supervision over more than 1;333 dealers in
more than 4;33 small @ big cities in India.
Asian paint implemented @ concisely improving its I& systems over the years. It
has already linked all sites @ $epots through :7*A& technology, which helps them to
monitor constantly @ has given benefits in streamlining the distribution channel.
Asian paints also implemented 11 solutions to increase its networkings @
solutions, which is a very good replacement of 9#!.
SER*ICE
Asian paints is IndiaBs largest paint company @ the third largest paint company of
Asia today , has an enviable reputtion in corporate @ society level for its wonderful
serving.
Asian paints have three different segments F .i0 $ecorative paints .ii0 Industrial @
.iii0 Automotive paints.
Its service strategy is also different according to these segments.
.i0 $ecorative paints F
61
Asian paints some solutions E which actually offer a hastle free painting
eperiences to the consumer is presently available in 11 different cities in India. It is
particularly meant for premium consumers. In this case painting is done by eperienced,
trained applicators @ according to the wish @ choice of customer in presence of him.
+ere time bound completions of the job is assured.
In the website of Asian paints .www.asianpaint.com0 all the details related to the
availability of the above facility @ the help desk is designed to provide the customer
ample choices.
Asian paints clour world is the uni?ue paint shop of Asian paint available through
out the India, where consumer can directly see the different paint combinations through
software @ chose accordingly.
In all t here cases Asian paints also provide warranty for their products @ for
home solutions free after paint services to the consumer, if anything wrong happens with
the paint.
-or the rural areas, where the most popular product >&*A:, dominate the
market, Asian paint used to organiCe rallys, car or van advertisement of their product @
make aware the people about their services.
ii0 Industrial paint F
here the products are tested under etreme conditions to ensure their durability @
how they can withstand different climatic changes. As corporate level the main consumer
here Asian paint used to provide importance in servicing this sector too. Its website gives
all the product details. It provides technical details regarding the uses of the paint.
,oating specification, health @ safety are also given importance as a part of services.
iii0 Automotive coatings F
In this segment Asian paints is improving its market share with high speed. +ere
the vehicles ultimately goes to the consumer, so Asian paints used to provide direct
consumer service, private cars, motor bikes @ )>: .)ulti usage vehicles0 vehicle
manufactures are directly provided with the post paint service.
61
Asian paint have implemented is solutions. Which helped them to overcome the
homegrown supply chain, which had certain drawbacks, in terms of customer service.
&he is solution helped them to continuously monitor the changing needs of the market
place @ serve the customers accordingly.
In future so as to become open of largest paint company in the world Asian paints
is also taking care of the services they provide. &hey want to have more feedback from
the customers through their website @ colour world. It is now turning its helpline into an
integral part of its operations. #oughly /; lakh rupees is considered as the annual service
cost. Iuality service is the future mothe of the company.
RESEARCH
Asian paints, the largest paint company of India have a very strong research
methodology. &here are two ways they follow F 7 .i0 )arket #esearch .ii0 #esearch @
$evelopment of the products according to customers need @ choices.
.i0 )arket #esearch F
Asian paints used to hold a very strong market research team. &he colour worlds
available throughout India is also keeping the consumer databases @ their feed backs.
&here are three important respect which came out.
.i0 ,onsumer presences
.ii0 Increasing global competition
.iii0 #apidly disappearing completive advantages.
&he market research suggests company need to improve its presence in Industrial
sector. !roducts related to surface coatings @ Intermediates need to be modified. >&*A:
range of products achieved a great success in rural market in this area Asian paint need to
take the competitive advantage.
.ii0 #esearch @ $evelopments F
Asian paints have invested 163.;6 million #s. In 133;73< in the # @ $ sector,
Which gives an idea about the companyBs paid interest in # @ $.
&he various sector where company is taking care of are E
64
.i0 $evelopment of analytical test methods, characteriCation techni?ue @ application
techni?ues essential for product development, bench marketing @ customer servicing.
.ii0 >p gradation of products @ processes to reduce environmental @ safety concerns.
.iii0 As the price of crude oil is increasing day by day. Asian paints is looking for
identification of alternate @ new raw materials for the products.
.iv0 Iuality improvement, cost benefits, supply chain fleibility @ crisis management are
also the matter of concern.
-uture planning F
Asian paints is growing rapidly throughout the world. In international market company is
planning to introduce new @ attractive products though its subsidiaries, like %erger, Apco
coating etc. In Hamaica @ -uji companyBs market is yet not satisfactory, which is also a
matter of concern. In domestic market company will concentrate on development of
new productsD product systems. With improved supply chain management.
Asian paints is looking to invest approimately #s.1<3 million in # @ $ in 133<7
133/ financial years. Iuality control system will be upgraded @ implementation of in
solution will be helpful to grow.
FINANCIAL DOCUMENTS
Asian paints, one of the leading paint company in Indian market, consists of three
different segment. $ecorative, industrial @ automotive company presently standing in a
very good position as per as the competitors are concern with more than ;3A market
share. ,ompany has some planning to increase its overall sales for the financial year
133<73/.
SALES FORECASTS BUDGET OF ASIAN PAINTS & %
66
!aints is a product which is not used in daily life -),'. Its purchase is mainly
based on the re?uirement of the consumer. "atural factors, festivals are some factor
which effect the sales.
&o increase the sales company is looking at the following factors F 7
.i0 !roduct *tyle .ii0 Iuality .iii0 !ricing .iv0 #aw material supply .v0
$istribution system .vi0 !romotional activity.
&able showing the previous < years data F 7
#s. E ,rore
Gear Advertising @
marketing 9p.
'ross sales "et profit .!A&0
)arch 1331
1331
1334
1336
133;
133<
1/<.1<
121.62
11<.;5
162.12
1<2.1;
414.;5
1;1<.31
1<<1.44
155/./
111.35
14<<.1<
153/.5;
13;.;5
116.41
161.31
16/./2
1/4.64
15<./5
"ow, to forecast the sales for the year 133<73/ we can use the regression analysis
method. &he sales for the previous years are increasing in manner @ the growth rate
follows a certain trend. *o we are using last s?nare method.
Gears M *ales .G0 MG M
1

1331
1331
1334
1336
13;
133<
1
1
4
6
;
<
1;1<
1<<1
1555
1111
14<<
153/
1;1<
4416
;<<6
5666
11543
1<561
1
6
2
1<
1;
4<
P11 yP114<3 yP6/<43
1
P21
6;
-ormula P y P a Q b
y P a Q b
1

putting the values E
.114<3 P <a Q 11b0 11 PPR 1;2;<3 P 11< a Q 661b
.6/<43 P 11a Q 21b0 < PPR 15;/53 P 11<aQ;6< b
solving we get a P 115<.3;
b P 162./
y P 115<.3; Q 162./
for the year 133/O P /.
G P 1246
"ow, 'ross sales .estimated D forecasted0 of Asian paints for -G 133<73/ in 1246 ,r.
.appro0.
R+.4/506 F G30,, ,4.+, D A7B+3/5,+9+6/ D 943?+/56@ 80,/ &
'ross sales of a company is strongly effected by the advertisement epanses
incurred.
&he advertisement @ marketing epanses a percentage of the 'ross sales for 1331
7 133< in as follows F
#s. In crores F
Gear 'ross sales A$ @ )ar. 9. A
1331
1331
1;1<
1<<1
1/<.1<
121.;
11.;;
11.;5
6<
1334
1336
133;
133<
1555
1111
14<<
153/
11<.;
162.12
1<2.1;
414.<
11.6<
11.53
11.4/
11.;1
&he above table shows that 'ross sales @ Ad @ marketing epenses of Asian paints have
a certain trend. Ad. @ )arketing epenses is almost 11.;A of the gross sales.
-or the year E 133<73/ E 'ross sales P 1246 ,r. .Appro0
Advertisement epenses P 1246 11;5 P 463 ,r .appro0
'raph showing the A relation of 'ross sales @ Ad e.
6/
11@1
11@2
11@3
11@4
11@5
11@6
11@7
11@8
11@9
1 2 3 4 5 6
E11+8/ 01 -6506 B-7@+/ 2!!=%!7 01 ,4.+, &
-or the paint sector the union %udget 133<73/ have two import ant implications.
.i0 #eduction in !eak customs duty, lead to reduction in customs duty on most of
the inputs from 1;A to 11.;A.
.ii0 ,:$ of 6A has been imposed accorss the board of tall the imports to
compensate for the sales &aD :A& in the domestic market. -ull credit of this
duty will be allowed to manufactures of ecisable goods.
&he budget has a positive outlook @ Asian paints is epected to be benefited from it
in terms of sales. &hough it has a force casted sales of 124; core company is epected
to increase it. ,ertain unidable impacts like increase of price of crude oil, non7
availability of raw material, are certain barriers. Asian paints have achieved a gross
sale of #s.<34.44 in I1 of #y3<73/. &he I1 is the prime season of the company as it
is the occasion period. +ere company is epected to increase its sales volume
tremendously.
PROFITABILITY FORECAST BUDGET OF ASIAN PAINTS &%
65
!rofitability of a company for any particular financial year is mainly calculated
based on the two factors E .i0 &otal Income .ii0 !%$I&
Where total income is the addition of gross sales @ other source of income @
!%$I& is profit before depreciation @ Income &a.
&able showing E &otal income @ $%$I& for 13317133<
#s. In crore .
Gear &otal income !%$I& !rofitability
1331
1331
1334
1336
133;
133<
1;64.5;
1<4;.;
1215.41
1141.36
16<1.1
1543.11
135.;;
14<.1;
15/.25
121.44
41;.<<
423.<1
3.16
3.16
3.1;
3.16
3.14
3.16
WHERE PROFITABILITY G PBDIT
&otal Income
"ow, to forecast the profitability of -G 133<73/ we need to forecast the &otal income @
the !%$I& of the year.
-or this we use the regression analysis method by regression analysis of the total
Income @ forecasting it for -G133<73/ we get the amount o be #s.1222 crore .appro0.
"ow, !%$I& is measure of profit made by a company for any financial year.
&hough actual profit or !A& is different, but !%$I& gives us a measure of the
profitability.
"ow, !%$I& of Asian paints for the last ; years is shown in the above diagram,
as it is to some etent linear increment, we can consider regression analysis method to
forecast the !%$I& for -y 133<73/.
%y forecasting we get E !%$I& for -y E 133<73/ P 635.65 crore
62
"ow, we have profitability P !%$I&D &otal income
-or -y7133< E3/ as per our forecasting
Is concerned profitability P 635.65D1222 P 314<1
"ow in percentage term for forecasted profitability of Asian paints for fy7133<73/ is
14.<1A

0@12
0@125
0@13
0@135
0@14
0@145
0@15
0@155
1 2 3 4 5 6
G9A# WI*9 !#O-I&A%I8I&G '#A!+
;3