Assignment - I

SALES AND PROMOTIONS

Submitted to: - Mr. Nitin Dhir SUBMITTED BY ROLLNO

Vaarun Maingi 1902 A55
Samujjal 1902 A49
Bharti 1902 A15
Vikash 1901 B51
Vivek 1901 B
ASIAN PAINTS
It is India's largest paint company based in Mumbai. It operates in 17 countries
and has 23 paint manufacturing facilities in the world servicing consumers in over 65 countries.
Asian Paints Company was founded in 1942. Within three years, their turnover reached 3.5 lacs.
In 1967, Asian paints became the 10th largest paint company in the world. They started With a
strategy “Going to where Consumer is”. In 1945, the firm was turned into a company. In 1957, a
plant was set up at Bhand up, Mumbai. In 1973, AP became a public ltd company. In 2002 AP
was a market leader of Indian Decorative Paints with market share of 44%. The Headquarter of
Asian paints is at Mumbai. MD & CEO of Asian Paints is Mr. P.M.Murty. Indian paint industry
is worth Rs85 billion in that (65% organized) (35% unorganized).

The total revenue of Asian Paints is 6680.94 crore rupees, and total profit is
1256.09 crore rupees. Number of Employee is near about 4700. According to Forbes Global
magazine Asian Paints is ranked among the 200 Best Small Companies in the World for 2002
and 2003 and presented the 'Best under a Billion' award, to the company. Asian Paints is the only
paint company in the world to achieve this award. Asian Paints is the leader in the decorative
paint industry in India, while it is on the fourth position in the world. It is India largest paint
company nearly four decades and leader in 11 countries.

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.”

Segmentation
The paint market has two a broad segment Decorative paints & industrial paints
Decorative paints were further classified as premium medium and distemper segments.
Premium paints were acrylic emulsion used in mostly in metros and big cities.
 Decorative paints (70%)
 Industrial paints (30%).
Decorative paint is used for fresh coating on existing walls & new wall finishes. The
medium range consisted of enamels, which were popular in smaller cities & towns.
Distemper were economy products popular in suburban & rural markets.
 Industrial paint segment include-:
 Automotive coating
 Protective coating and
  Powder coating
Asian Paints is the leader in the decorative paint industry in India, while it is on the fourth
position in the world.

COMPETITOR
 Asian Paints (34% market share)
 Nerolac (16%)
 Berger (12%)
 ICI India(8%)
 Jenson Nicholson (30%) in enamel category.

Marketing, Sales & Distribution

 Rural Marketing Initiatives since 1960.
 Distribution is one of the main strategies of Asian Paints.
 Advertising & Promotional Expenditure started in 1980s.
 Advertising Methods- Radio, TVCs, Print, Internet, Retail Outlets, Seminars, Workshops
 Promotional Expenditure grew from 15% in 2003 to 21% in 2008.

PROMOTIONAL STARTEGIES
 By 2004 AP has 13 brands with 1100 shades targeting different niches.
 They decided to promote all these brands under one umbrella. The reason for this was
that now people are becoming more brand conscious then they were before.
 APIL realized the new generation consumer changed and festivals have become less
important.
 Now APIL wants to give brand image an upgrade.
 Give it a facelift with new packaging, a contemporary logo and corporate colors.
APIL BRANDS AND PRODUCT
AIPL introduced various brands for different segments. These are as follows:

1. ROYAL
2. APCOLITE
3. GATTU, TRACTOR & UTSAV

These three has been used to cater different segments which are premium, middle, and lower
resp. They further introduced a “One-Step Colour Shop” from which a consumer can
choose more than 1500 colour combinations. They always provide so much colour that
customer never want to visit any other brad as his all needs is being satisfied under one roof.

There are various types of paints in Asian Paints. Which are as follows:-

1. Metal Paints
2. Wood Finishes
3. Primers
4. Wall painting
5. Distempers & Emulsion.

Strategy
In this we would be concedring those factors which to them applying AIPL has become the
leading manufacturer among its competitor. They always look for what the customer wants
and according to that they made their product. Some of which has been given below:-

 AIPL always believe that “Customer is the King”.

 They focus on the customers wants.
 To provide customer satisfaction they started the “One-Step Colour Shop”.
 It even custom creates the products to meet the specific customer needs.
 Recently introduced the interactive marketing startegies.
 A customer can now choose among 10,000 colours and combinations.
 The Asianpaint.com also provides customers to choose the designs to paint their wall
differently.
MARKETING STRATEGIES
 From its inception, APIL focused on marketing to create brand awareness and to increase
market share.

 The company realized that consumers were not brand conscious and it was price that
influenced the buying decision.

 In order to keep its price low so it undertook backward integration to reduce production
cost.

 The earlier ad campaigns of APIL stressed on the functional benefits such as

1. Durability

2. Long lasting beauty of the walls,

3. Availability of wide range of colors.

 IN 1990 APIL promoted APCOLITE brand which offers 151 shades. It also gave
consumers a shade card to help them.

 The effect of this promotional activity is that now whenever a consumer is purchasing the
paint of any other brand , they refer to the APCOLITE shade card

 In 2002 APIL dropped its famous mascot “GATTU”.

 Asain Paints now wanted to attract the MASS MARKET .

 They uplift their product from the common man’s market and designed a brand new logo
SWOT ANALYSIS OF ASIAN PAINTS

S-STRENGTH-
 COLLABORATION WITH PETROCHEMICAL LTD.

PETRO CHEMICAL is a company in Canada in with they (Asian paints) collaborated.

The basis for such collaboration is to get international level and also to get raw material
at lower cost.

 MARKET LEADER WITH 34% SHARE.

Market share of company is very good. As per analysis done Asian paint is at 1 st position
with 34%share in the market.

 HUGE CUSTOMER BASE

As India have huge population residing in them, so company treat them as a broad and
huge customer base for them.

 LOW COST OF RAW MATERIAL

Asian paint is able to get their raw material at lower cost. Collaboration with Canadian
company is also a step in this regards.

 GOODWILL

Asian paints enjoy a strong goodwill in the market. They make huge strategy and invest a
lot to make their goodwill strong and even good quality is a factor for their strong
goodwill.

 GLOBALISED MARKET(65 COUNTRY)

Asian paint serve their product in nearly 65 country and they manufacturer their product
in nearly 22 country.

 PACKAGING.

Asian is able to serve their product in a very convenient packaging.

 W-weakness
 USAGE POWER OF CUSTOMER.

As per one analysis they found that in developing country like India a person is using
only 800-900 gram of paint but in developed country a person use nearly 20-25 kg of
paint, so in India usage power of their product is very less.

 ENAMEL SEGMENT IS GROWING AT SLOWER RATE

Enamel segment is one of the biggest segment in their hand but even then they found that in
this segment their they are growing at very low pace. Reason they found that they do very
less advertisement for this segment.

0-opportunities
 FESTIVAL SEASON

In country like India in festival season like Dewali people like to get their house paint. So
these kind of festival are one of the opportunity for them to grab more customer.

 LAUNCH ACE SEGMENT IN OTHER MARKET.

Asian paint launches their ace in limited segment only, but they can launch this famous
product in other segments also.

ROAD PROJECT IN INDIA

This is one the biggest opportunity in their hand, country like India where there daily lots of
road project goes on. So here they can get a contract for paints for them.

T-THREAT
  COMPETITION WITH LOWER PRICE.

To give tight competition to Asian paint their competitor is launching various new
product at lower cost as compare to Asian paints.

 ACE IS BOUNDED IN LOWER MARKET

As they bound their ace product in limited segment. They can launch this in other markets also.
Otherwise competitor can grab those markets.

RECENT CAMPAIGNS
• BADIYA HAI” Campaign.

• This campaign depicts how the brand helps the customers achieve social appreciation's
for ones house. 2nd campaign “HAR GHAR KUCH KEHTA HAI”.

• This ad encourages people to use more colors in their house apart from regular colors In
more innovative and imaginative way.

• The tagline “ HAR GHAR KUCH KEHTA HAI …KI ANDAR USME KAUN REHTA
HAI” encourages the customers to express themselves through their homes.

• SOMETHING IN LIFE NEED A ROYALE WALL”

• The idea is to convey that Asian Paints as the brand with the largest range of colors and
one that will satisfy the consumer and is able to give him precisely what he wants.

• The advertising through the campaign is single minded and focussed in its proposition,
communication and target audience

RECOMMENDATIONS
• Consumers have become harder to reach , they are busier and more distracted so try new
promotional campaigns using “Pursuade & recognition” as the objective of advertising.

• Now a days , customers are not paying a huge amount for the functionality , but because
it represents a way of life.
So when launching or repositioning a brand company have to understood the emotional
needs as well as the functional ones

• Cater the industrial paint segment because it is growing at a pace.

• Innovate new products to create new market segments.

• Ensure the constant touch with the consumer to feel the pulse of the market and
understand the need of the consumer.