INTRODUCTION

Indian Economy is dramatically changing the dramatic

changes are the result of hard realities. Too much of protection
for too long a time has hindered the economic development
rather than facilitating it. The immediate fallout could be seen in
public sector units in the country. Their losses got accumulated
and became a drain of the National Exchequer. Too much of
regulation for too long time on private sector had also proved to
be disastrous.
All these regulations, curbs and restrictions has stifed the
enterprising spirit and discouraged healthy competition among
the in industrialists. The balance of payments position became
so unmanageable that even the international lending bodies lie
International !onetary "und and #orld $an refuse additional
%nance for India unless Indian economy is revamped.
&ince than a series of economy policies 'ere revamped.
There 'as a greater emphasis on !areting. After liberali(ation
the changed in economic scenario India o)ers excellent
mareting opportunities are created for aspiring Entrepreneurs.
Indian marets are no' *$uyers !arets+. Therefore the
mareters has to resign suitable. &trategies to stay successful in
the maret. Their success depends on their ability to cater.
1
OBJECTIVES
PRIMARY OBJECTIVES:
To %nd out 'hich factors has got infuence on customer
a'areness in ,aints Industry.
To no' the a'areness level of *Asian Paints+ customers as
'ell as other customers.
SECONDARY OBJECTIVES:
To identify the customer requirements.
To analy(e the customers perception regarding the preference
of Asian ,aint ,roducts.
2
NEED FOR STUDY
The main ob-ective of the study is to no' the .ustomer
a'areness 'ith respect to Asian ,aints.
The need for this can be explained if one no's the
importance of understanding the .ustomer a'areness. &o in the
follo'ing paragraph the .ustomer a'areness and its role in the
success of an organi(ation has been explained.
.ustomer a'areness are taen up to boost the sales of a
product by the company. A company having production
capabilities may produce a product and price is according and
sell through the dealers and retailers by its distribution net'or.
.onsidering the fact that consumer according to the time
need, 'ant and the purchasing po'er, it depends on the product,
therefore, the mareters rely on the mareting mix to cater to
the customers e/ciently and e)ectively.
&o the companies producing the product, pricing and
planning them have to care fully loo into the minds of the
consumers and place the products favorably in the minds of the
consumers.
3
METHODOLOGY
In order to reali(e the study the ob-ectives a considerably
volume of both primary and secondary data is needed. It has
been therefore found necessary to conduct an Intervie' schedule
for gathering relevant data from the users.
,rimary 0ata has been collected from the industrial buyer
during !ay 1 2une 3445 'ith the help of a structured
6uestionnaire 'ith strati%ed sample of 78 respondents have
been taen for carrying out the study.
&econdary 0ata the information regarding the Indian paint
industry has been dra'n from various published sources. They
include ,rofessional business 2ournals and !aga(ines, besides
the Ne's papers. The data relating to Asian ,aints has been
collected from company records.
This study is necessarily based on the limited no'ledge
and little practical exposure the constraints of resources and time
have further imposed limits to the study boundaries.
4
LIMITATIONS
The respondents of the questionnaire are very busty and could
not a)ord more time to ans'er. The average time to response
'as 897 minutes only.
A limited sample si(e of 78 customers 'as considered because
of time constraint. An assumption is made that the sample
represents the 'hole population. It 'ill not carry the total
refection of the copier maret. Total sample si(e is
comparatively less to represent the entire population.
A time period of only 58 days 'as allo'ed for the completion
of this product. &o considering all the consumers for the study
'as not possible.
The data 'as of primary nature. &o the degree biases 'ere
relatively high as the sample 'as randomly selected.
&tudy restricted to geographical territory of :isahapatnam
city only.

5
PAINTS THE COLOUR OF OUR LIFE
(A PROFILE)
#hat is ,aint;
$asically, ,aint is a mixture of four elements.
&olvents
$inders
,igments
Additives
&olvents
#hich give a paint its fo', and enable it to be brushed on a
surface
Bin!"s
#hich hold the paint together, as 'ell bind it to the surface
that is painted, thus giving its property of durability.
Pi#$!nts
#hich give paint its colour and opacity.
Aiti%!s
#hich give paint special properties such as resistance to fungus,
rust ..etc.,
6
Paints &an '! istin#(is)! as
EMULSIONS :
These are 'ater based paints Acrylic Emulsions are
extremely durable and give 'all sily and smooth %nish. They
'ashable and easy to maintain.
Eg< Asian ,aints o)ers three brands to choose.
P"!$i($ Apcolite =oyal Acrylic Emulsion.
M!i($ Apcolite &uper Acrylic Emulsion.
E&*n*$i&a+ &uper 0ecoplast.
DISTEMPERS:
These are also 'ater based paints but their binders may be
very natural or synthetic. 0istempers are economically priced,
they o)er good value for money as they are durable.
Eg< Asian ,aints has
Tractor Acrylic 'ashable 0istemper.
Tractor 'ashable &ynthetic 0istemper.
7
LUSTER AND MATT FINISHES:
These are solvent based paints are extremely durable. The
former gives a gloss egg shell %nish 'hile matt %nishes have a
dead matt %nish.
Eg< Asian ,aint has
Apcolite luster %nish.
Apcolite synthetic matt %nish.
E,TERIOR FINISHES:
"or exterior cement paint is mainly used as it is economical.
It also has a reasonable life if in areas 'here monsoon is not too
heavy.
Eg< >attu cem.
ENAMELS:
It provide the best coating for metals they are tough,
durable, glossy in %nish. The smooth shiny loo lasts for years.
Enamels protect from corrosioin.
Eg<
Apcolite &ynthetic Enamel.
? mangoes &ynthetic Enamel.
8
PRIMERS:
,rimers are usually the %rst coat applied on a surface it is
meant to prepare the surface for painting. It o)ers protection to
the paint.
Eg<
Asian !etal ,rimer.
#oodorite ,rimer.
FILLERS - PUTTIES:
It is used to %ll up the crises or any unevenness to ensure
that the %nish coat gives a smooth surface.
AUTOAC.UER:
It is NIT=@ .EAABA@&E paint for auto %nishing.
Eg<
Crilo
Apca
Aspa
9
10
PAINT INDUSTRY IN INDIA
"oundation for paint 'as laid in the year DE43 'ith the
setting up of &halimar ,aints in .alcutta. It 'as during the and
after the #orld #ar II. That large number of paint manufacturing
units 'as set up in India. &ince then the Indian paint industry
has made substantial progress.
The paint industry has come to the recognition as an
important sector in the national economy in producing industrial
coating and decorative paints. 0ecorative paints available in
'ide range of combination account for F4G of the coatings total
production. #hile industrial paints share the balance of H4G.
This rate is diametrically opposite to the trend in the
industriali(ed countries 'here industrial paints account for F4G
and 0ecorative paints for the balance of H4G.
The Indian paint industry is at the crossroads. All most all9
ma-or paint companies have expanded or are expanding its
capacity substantially. #ith demand rising slo'ly competition is
becoming increasingly intense.
The decreasing gro'th rate has made the paint companies
to 'oo customers aggressively. The customer is being o)ered
D4G rebate in most products, Bnheard in the industry so far.
!ost companies have increased their discounts to their dealers
to unimaginable level dealers are o)ered higher credit levels,
11
fexibility in payment, foreign trips for selling even lo' value
products and the lie. The increasing competition to o)er
solutions through technology has made all the paint mae as
o)er a large number of shades through computeri(ed colour
dispensing system.
IMPORTANCE
>enerally paints and coatings are applied to products to
protect them from
Emnvironmental .orrosion.
,rotection of "ood and $everages in metal cans.
Improve aesthetic appeal.
CATEGORIES
,aints are classi%ed into t'o broad categories.
0ecorative or Architectural %nish paints.
Industrial ,aints.
D!&*"ati%! *" A"&)it!&t("a+ /nis) 0aints:
This maret can be further segmented on the basis of the
follo'ing
C(st*$!" t10!s : Institutional I retail or domestic use
P"*(&t 2!at("!s - &at!#*"i!s: 0istempers, Enamels,
emulsions etc.
12
P"i&!: ,remium, !edium, Economy etc.,
In(st"ia+ Paints:
This maret can be further divided into the follo'ing four
sub segments depending on the end user pro%le.
Automotive paints.
!arine ,aints.
,o'der ,aints
Jigh ,erformance coatings
@ther general industrial %nishes.
In India, decorative paints dominate 'ith the share of F8G
of the total paints consumed 'hile in developed countries
Industrial paints have a share of 84 1 F4G.
0ecorative ,aints used in buildings include distempers,
emulsions, synthetic Enamels, .ement pains and #ood %nishes.
Interior ,aints maeup of the segment. The rest is made up of
exterior paints mainly cement paints.
PLAYERS IN DECORATIVE PAINTS
In decorative paints Asian ,aints dominates 'ith a HFG
maret share and number t'o player >oodlass Nerolac has a
maret share of D5G. These paints are by medium technology
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and hence the unorgani(ed sector has a ma-or share. A recent
estimate that over 3544 companies are in unorgani(ed sector.
INDUSTRIAL PAINTS
Industrial paints include automotive paints Koriginal auto
manufactures and re%nishesL, ,o'der coatings marine paints
high performance coatings and special purpose %nishes. These
are technology intensive and hence the presence of the
unorgani(ed sector is very limited. In fact, there is no presence
of the unorgani(ed sector in the original paints. This can be
explained by the fact that to bag an order from automobile
manufacturer collaboration 'ith a 'ell no'n foreign paint
company is a must >oodlass Nerolac is an un disputed leader n
industrial paint.
Till early E4Ms paints 'ere treated a s luxury items by the
governments this resulted in higher excise duty and higher end
prices, leading lo' consumption of paints in India. Jo'ever the
progressive reduction of the excise duty from 54G in EH9E5 to
DNG in E79EF, the companies have passed on the duty reductions
as price cuts.
Jo'ever the per capita consumption of India is still a merge
of .8 g compared to 37 g in B.& and D.3 g in Thailand.
14
As already mentioned paints 'ere vie'ed as luxury item by
many even today. Their productive value is not under stood and
repainting is limited and if ever done is once in F 1 D4 years. The
government interest to protect all surfaces is also lo' and the
loss due to corrosion is estimated to be over =s. 8444 crores p.a.
$y the central Electro chemical =esearch institute at Caraiad,
Tamilnadu.
#ith a vie' to emphasing the importance of protection
through painting the Indian paints Association KI,AL had brought
slogan in DEE8 *,aint and ,rotect+. This slogan is populari(ed
through various communications ho'ever a lot needs to be done
to reach the millions of customers e)ectively.
DEVELOPMENTS IN VARIOUS SEGMENTS
T'o signi%cant developments too place in the last three
years in the decorative paints segment.
Advent of .omputeri(ed .olour 0ispenser
&udden increase of Exterior !aret.
C*+*(" Dis0!ns!":
Traditionally companies used to supply pre mixed shades to
dealers 'ho in turn o)ered to their customers.
Asian ,aints brought in the manual colour dispensing
concept in DEEN and o)ered D8D shades through it. This 'as the
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%rst salvo in o)ering in variety of shades. This concept too o)
and Asian ,aints 'ent about establishing 3444 colour corners
'hich 'ould stoc the D8D shades. Additional shading
requirements 'ere catered by providing colours as per the
demand after mixing the bases 'ith strainers through colour
dipencer other companies follo'ed it soon and >oodlass Nerolac
introduce ed H4D shades under the same concept.
In DEE8 2henson and Nichelson, the 8
th
raning company in
the industry, pioneered the concept of ..0. And started
installing them at dealer shops 'ith the support of TICCB=IAA of
"INAAN0.
The concept is similar to that of the manual colour
dispenser except that the dispensing is automatic pre decided
formula registered in the computer and the shades are o)ered
instantly shops to customers.
Today $erger ,aints, is the 3
nd
.ompany to enter this
system o)ering 8444 shades a clear indication of the trend. In
the year DEEF9EN has seen the introduction of the concept by the
t'o giants. Asian ,aints and Nerolac. Today around D444 dealer
shops are installed this concept.
..0 or it is called *ABT@ .@A@B= 0I&@EN.E=+ have helped
the dealers to reduced their inventories o)er a large variety of
shades instantly, consistently and accurately. .onsumer have
16
also bene%ted by this concept as the shopping environment has
changed dramatically 'ith the advent of ..0.
E,TERIOR MAR3ET
The second development is the introduction of the D44G
Acrylic Exterior ,aints and the focus of ma-or companies on the
Exterior ,aints maret. Traditionally, the exterior paint maret
'as catered to by CIAAI.C NIO@N and several other small players.
The main o)ered 'ere cement paints in India. $ut the real
change has be thought by Asian ,aint through A,EO 1 its D44G
exterior paint maret has started gro'ing exponentially. In DEEE
Nerolac introduced EO.EA in the category and o)ered qualitative
product at lo' material cost. $oth Apex and Excel have
propelled the exterior paints gro'th by over 74G in 3443 and the
trend is expected to continue for at least of three more years.
A ma-or development in DEEF9EN 'as the *,ay by scooter I
car+ concept by companies. As practiced in 'estern countries, in
India also the concept of taing care of the complete painting -ob
has been under taen by paint companies. >oodlass Nerolac has
commenced this concept 'ith !ahindra cars by managing the
entire paint shop and being paint on the basis of per painted
cars. Asian ,aints also follo'ed it up 'ith a similar tie up 'ith
A!A for its scooters.
17
PO4DER COATINGS
The other *industrolycoat po'ers+, in collaboration 'ith
:AI&,A= .@=,@=ATI@N of B.&.
Jigher performance coatings is another rapidly gro'ing
segment 'hich is used at fertili(er I sugar plants, airports, big
construction pro-ects, $erger, Asian., Nerolac dominates this
segment due to their international collaborations and high
quality range of products.
PAINTS DEFINED
Technically paints can be de%ned as a homogenous fuid
made from our ingredients namely pigments, resins, solvents and
additives 'hich the ra' materials can be classi%ed into four
categories. A typical paint formation consists of over 844 input
materials.
Jo'ever the ey ra' materials are
18
,igment<9 Titanium dioxid
=esins<9 ,AN,,entaerythrill
Together these constitute 54984G of the total ra' material
dependent on the category of paints.
To conclude the follo'ing are the critical factors in success
in decorative and industrial paints.
DECORATIVE PAINTS
!anaging logistics
!anaging input costs
"ocus on rural marets and vie'ers segments
&trong mareting and brand equity
6uality and technology
INDUSTRIAL PAINTS
International technology
.onsistent quality
.ustomers service
.ompetitive price
.ontinuous innovation.
PAC3AGING
19
Asian ,aints has four production plants and each has four
distinct pacing pattern. &o that the 'or of the godo'n in
charge becomes easier in recogni(ing the tins from 'hich plant
they have come.
The pacing is as follo's
Anlesh'ar
$handup
,atancheru
Casna
And the products are paced as
Enamels 34, D4, 5, D liters
844, 344, D44, 84 ml
0istemper 34, D4, 8, 3, D gs.
Emulsions 34, D4, 5, D liters.
PLANT IDENTIFICATION
,lant identi%cation mars for cartoons, drums, tins are
given belo'.
B)an(0 0+ant
D. All liter number 'ill be four digit starting from D44D.
20
3. Alphabets $ as label indicate $handup plant
H. 0rums 'ill not have any brands on the top side
5. .artoons 'ill not be $lue in colour.
An5+!s)6a" 0+ant
All liter number 'ill be four digit starting from 344D.
Alphabets A as label indicate Anlesh'ar plant
0rums have one brand on the top side
.artoons 'ill red in colour.
Pata&n&)!"( 0+ant
a. All liter number 'ill be four digit starting from
H44D.
a. Alphabets p as label indicate ,atacncheru plant
b. 0rums have t'o brands on the top, one dotted
line.
c. .artoons green in colour.
3asna 0+ant
DP. All liter number 'ill be four digit starting from544D.
21
3. Alphabets C as label indicate Cisna plant
H. 0rums have one brand 'ith three dots 'ith nine
alternatives.
5. .artoons are bro'n in colour.
PRICING
In the narro'est sense price is the amount of money
charged for a product or service .
,rice has ben the ma-or factor in a)ecting buyer choice.
This is still true in poorer nations, among poorer groups and 'ith
commodity products. Jo'ever non price factors have become
more important in buyer choice behavior in recent decades.
#ith respect to Asian ,aints there are t'o price lists.
0ealers price list
!aximum price list.
D!a+!" 0"i&! +ist:
It is applicable to dealers and consists of their trade
discount of HG, additional trade discount of HG, cash discount
8G.
If 'ritten in equation
0,A Q trade discount HG
22
R Additional trade discount of HG
R .ash discount of 8G.
Ma7i$($ P"i&! List:
!,A Q consists of dealers price list 1 trade discount HG 9
additional trade discount HG 9 cash discount 8G R local tax.
Those dealers 'ho has regular payment of performance are
bene%ted largely by cash discount and those dealers 'hose
payment is not regular do not get products.
The company operates at a very lo' over due outstanding
rate. Thus it can be said that the company has very stringent
rules regarding the credit given to the dealers.
PROMOTION
!odern mareting call for more than -ust developing a good
product pricing attractively and maing it available to the target
customers companies also must communicate to their customers
and 'hat they communicate should not be left to chance.
Asian ,aints promotional activities consists of
advertisements, schemes, point of purchase, painters schemes.
The advertisement activities are given to @>IA:S AN0
!ATJE= 'ho has designed the advertisements as sho'n and
partly by contract ad agency.
23
TARGET GROUP
According to the information provided by the company
personnel the target group di)ers from product to product.
Eg<
Btsav 9 rural Kchunna and distemperL
0istemper 9 middle income group
=oyal 9 higher income group
24
FACTORS BEHIND SUCCESS OF ASIAN PAINTS
Asian paints 'as founded in DE53 as a small Indian
partnership %rm at a time 'hen the paint industry 'as %ercely
competitive. T'o mareting breathroughs propelled the
company to leap into the decorative segment. The %rst 'as the
introduction of smaller si(ed cans into the maret 'here the
paint 'as sold in bul. The second 'as a dealer expansion thrust
to reach out to end customers and o)ering them quality paints
'hich 'ere hitherto available to them in the urban areas only.
These t'o steps meant going beyond selling paints and, in
particular responding to the customers unmet need. The result
'as that in DE7F, Asian paints captured to the top position in the
decorative paint segment. Today the company is not -ust a
leader in the paint industry but sells t'ice as much paint as any
other company in India. In DEE59E8 the company had a turnover
of =s. 7D5 crores and HNG share of the organi(ed paint maret
Ma"5!tin# St"at!#i!s
The success of Asian ,aints is primarily attributed to
mareting acumen. The company has made excellent use of the
electronic and print media, besides publishing informative
brochures for all its products. The companyMs mascot *>attu+
created to give an ethnic touch has almost become synonymous
'ith the generic product.
25
C"iti&a+ S(&&!ss 2a&t*"s Dist"i'(ti*n
The mareting success of Asian ,aints 'as based on the
reali(ation that the semi9urban 'as untapped and the small
consumer neglected. To reach those consumers in small to'n,
the company built a broad distribution net'or across the 'hole
country. "rom small to'ns Asian ,aints moved to reach out to
the metropolitan maret. Today, the net'or 'ith DF,444
retailers across the country is maing the company responsive to
a large customer base.
Us! *2 In2*"$ati*n T!&)n*+*#1
To strengthen the distribution net'or, the company has
gone in for computeri(ation at the branch and the depot level.
All branches and 58 depots across the country are connected to
the four plants and the ,roduct !anagement >roup at the Jead
@/ce through the :&AT. The use of the IT has meant faster fo'
of information, more e/cient management of supplies, and
better inventory control.
4it) *2 P"*(&t Lin!
$ased on the surface on 'hich they are applied, decorative
paints are usually classi%ed as 'all, metal, 'ood and plastic
%nishes. The products could be emulsions, enamels, varnishes,
26
automotives, or undercoats. Their end use could be in the sign
board, bus body, industry or household segments.
Asian ,aint has o)ered brands in all possible applications.
"or instance<
&ynthetic I Acrylic #ashable 0istempers < Tractors
Acrylic Emulsion < Apcolite K6uality I,L =oyale Kpremium
categoryL
,lastic emulsion ,aint KInteriors I ExteriorsL < 0ecoplast
K6uality IIL, Apex K6uality IL.
&ynthetic Enamel < Apcolite, >attu
,acet 0istemper < Btsav
#ooden &urfaces < Touch #ood, &il'ood, Apcolite Natural
#ood %nish
.ement ,aint KexternalL < >attu
In(st"ia+ S!#$!nt
>eneral Industrial "inishes < Apcolite KJammerton "inishL
@ther Industrial ,roducts < Expory .oatings, .hlorinted =ubber
%nishes, viny I T ,olyurethane &ystems.
27
A(t*$*ti%!s
Cirlo 1 an Acrlic ,aint, Apca 1 nitro9cellulose based ,aint, Aspa
1 an Allyd, autocare.
P"i$!"s
Asian !etal ,rimer =edoxide
Tractor =edoxide ,rimer for !etal
#oodrite for #ood &ubstrate
0ecorative 1 .ement ,rimer
TECHNOLOGY TIE8UPS
The company has a technical collaboration 'ith ,I> of the
B0& and Nippon ,aint .o, 2apan for the manufacture of
automotive paints, po'der coatings, and coil coatings. Through
this move, Asian ,aints remains a step ahead because companies
lie 0ea'oo and >eneral !otors that use ,,> paint overseas are
liely to source their automobile paint requirements from Asian
,aints. Technical info's K "rom &igma .oating of the
NetherlandsL have also added to manufacturing capabilities in
the areas of heavy9duty marine coatings, anti9corrosion paints
and high9tech resinsKthat serve as ra' materialsL, thus ensuring
28
that product quality even in sophisticated items match
international standards.
P"*(&t +in! E7t!nsi*ns
As stated earlier under conceptual issue, line extensions, as
a part of mareting strategy is a lo'9cost, loss9ris 'ay to meet
the needs of various customer segments. It can satisfy
customersM desires to provide a 'ide variety of brands under a
single umbrella or family name.
Asian ,aints strategy to penetrate into the hitherto
unexplored distempers maret 'as a similar move, 'hich 'as a
departure from its earlier strategy of concentrating on higher9end
products.
N!6 Ma"5!t P!n!t"ati*ns
The search of ne' marets and overseas opportunities has
led the company to neighboring Nepal and the distant &outh
,aci%c Islands 1 "i-i, Tonga and the &oloman Islands. The
company also exports its to the !iddle East, &outh East Asia and
Europe.
La(n&) *2 +*6 0"i&! '"an as #"*6t) st"at!#1
In late DEE3, Asian ,aints introduced the brand called
9Utsa%: as a long term strategy to penetrate the rural maret.
29
The overall mareting strategy adopted by Asian ,aints for this
distemper is no' detailed.
Ent"1 int* t)! +*6 !n ist!$0!" $a"5!t
The =s. 345F paints maret has a pyramidal structure. At
the very top end are Upremium emulsions priced at about =s. D88
to =s. DF4 per literIg K'hich comprise brands lie =oyale and
:elvet touchLV next are the synthetic emulsions at the range of
=s. E4 to =s. D48 per liter K e.g. Apcolite, Nerolac, 0ulux and
=angoliLV and at the base is the distemper segment K'ith Asian
,aints TractorL bet'een =s. HH and =s. 54. There 'as a huge
untapped maret at the lo'er end 'hich no organi(ed player had
attempted to tap. This comprised largely pacet distempers, dry
distempers and lime ash, ha'ed in a brand band of =s. H to =s.
38.
R!as*n 2*" !nt"1
Around DEED a recession in the user industries and hie in
the excise rates had slo'ed the industry gro'th rate to 3.3G.
Asian ,aints reali(ed, that to overcome this phase of stagnation,
it had to penetrate ne' marets and real volumes 'ould come
only be converting consumers using lime'ash, dry distemper,
cement paint or other local painting methods into branded paint
uses. This 'ould also expand the maret base, besides reaping it
the *%rst mover advantage* among the ma-or producers of the
30
paint industry. All the company need 'as ne' paint to penetrate
into this segment.
Ba""i!"s t* Ent"1
No data on maret si(e, consumer buying habits, etc., on the
distemper maret.
=egional brands, many in number, had an established
clientele.
Bnorgani(ed sector brands 'ere priced lo' and o)ered heavy
dealer discounts to push their brands.
National players I !aret leader rised losing premium image
and quality association by entry into this lo' priced segment.
.onsumer preferences heavily infuenced by regional cultures,
lifestyles, hence the maret 'as fragmented.
&ervicing a huge semi9urban and rural maret 'ould entail
huge up9front investment, 'ith returns not assured.
0ominance of pacet distemper brands, e.g., 0ilash and
Aami, 'hich %lled the aspirational value slot.
C*$0an1 s0!&i/& 0"*'+!$s - Disin&!nti%!s
Aarge price di)erential bet'een the company distemper brand
Tractor K,rice =s. 58 L and the unorgani(ed sectorMs products
K=s.H938 L.
31
0anger of eroding TractorMs equity if a lo' price variant is
introduced.
Threat of substitution of the higher period Tractor brand by the
cheaper one by the painter, 'hich had a poorer %nish resulting
in customer dissatisfaction.
T)! C*$0an1;s C*$0!titi%! a%anta#!
Jigh degree of a'areness about the company among the
target maret constituents.
.ompany regarded as a quality9produce maer.
!aret leader, %nancial and mareting strength to sustain
investment pressures
.ore competence in paints, 'ide variety and 'ell9developed =
T 0.
#ide dealer net'or and good information base about
di)erent marets.
T)! T*ta+ St"at!#1 2*++*6!
(a) St"at!#i& T)in5in#
This 'as infuenced by the follo'ing factors<
F4G of the Indian houses 'ere of the non9pucca variety.
32
,ainting of the hose, especially interiors, 'as a deeply
entrenched habit.
#all9,aints usage 'as dominated by lime 'ash and dry
distempers.
$randed paints 'ere perceived to be out of reach by the
ordinary consumers.
,enetration of all ma-or paint brands put together 'as 35G of
the users.
The company reali(ed that the only option it had 'as to
reduce margins and relentlessly chase volumes. $ut to
achieve volumes, a high penetration in the rural and semi9
urban marets 'ould be required.
(') P"*(&t an P"i&!
The company reali(ed that it 'ould have to develop a brand
that 'ould o)er *:alue for !oney+. Jence in late DEE3, it
unveiled its ne' distemper Btsav, the name denoting seasonal
and festival9oriented relevance of the product. It 'as position as
do9it9yourself, oil9based9distemper. At =s. 37 per g, it greatly
narro'ed the price di)erential and brought, for the %rst time, a
ma-or branded paint 'ithin the reach of the price9conscious
consumer.
33
The pacet si(e 'as %xed at D g, a small si(e, since the
users had smaller9si(ed houses and did not require large pac
si(es. Also, the product 'as found to cover more surface area
than other products. The product as o)ered inn eight ne'
shades, typically in deep colours, eeping the end9user pro%le in
mind.
(&) P+a&! - Dist"i'(ti*n
=egion 'ise launch of the brand, to coincide 'ith regional
festivals.
"ocusing on the north Indian !aret, the largest, 'as
scheduled to incorporate maret feedbac from the other
regions and change the mareting9mix elements if required.
.ompany salesman lined up 'ith sub dealers and petty
dealers, usually grocers, in villages and small to'ns, 'ho in
turn 'ould be serviced by the companyMs established D8,444
strong dealer net'or.
Bndertoo innovative promotional campaigns, lie arranging
demonstration sessions, besides using the regional media and
local print media, and customer education to create strong
brand pull that 'ould help increase of tae and provide the
small retailer the incentive to stoc Btsav. There 'as also the
prestige element in stocing Asian ,aints products, 'hich the
company exploited to the hilt.
34
The .ompany funded its KestablishedL dealers transportation
overheads incurred in reaching out to the ne' N4,444 odd
outlets.
() T)! U+ti$at!
Btsav has been a success in the marets 'here it has been
launched.
It has overcome the main hurdle of dealer and consumer
resistance.
The brand has gained maret share at the expense of local
paced distemper brands. !argins for the product are lo'
about 39HG, 'hile the higher end brands fetch 34G.
Jo'ever, the product has provided the company a clear
advantage. It can no' use its rural net'or to build its entire
economy range comprising the Enamel range >attu and other
products lie primers. Thus it has a clear head start over its
competitors in the volumes game.
35
PROFILE OF ASIAN PAINTS
Today Asian paints is the maret leader in the paint
business of India, commanding a maret share of more than H8G
in organi(ed sector . ItMs Annual sales turn over us around =s.
33.7 billion.
Asian paints 1 one of the largest among the top D4
decorative paint companies in the 'orld. It operates in 33
countries across the 'orld serving consumers in over 78
countries.
"orbes global maga(ine B&A raned Asian ,aints among
344 best small companies in the 'orld for 3443, and in the year
344H presented the *$est under the $illion+ a'ard to the
company. It is one and only the company.
@ne of the country leading business maga(ine *$usiness
Aine+ in "eb 344Draned Asian paints as the ninth best employer
in India.
A survey carried out by Economic Times in 2anuary 3444
rans Asian ,aints as the fourth most admired company across
industries in India.
A talent pool of 5F44 employees employed across 3H
countries.
36
The closest competitors of Asian paints do not have even
half of Asian paints turn over in other ma-or performance factors
lie ,ro%ts, Asian paints is far ahead all it competitors in the
industry.
The achievement of such an over 'helming leader ship
position, by a company that is fully Indian in capital management
is an industry traditionally dominated by multinationals is
certainly a grand feat.
Jo' did Asian paints achieve this success; Naturally, it
'as the cumulative result of a pacage of strategies 'ith respect
to maret targeting, product mix distribution and other aspects
.The maximum credits for success should, ho'ever go to its
distribution strategy. It 'as through its distribution that Asian
paints too its mareting endeavor to perfection.
Asian paints E.3G stac in I.I India Atd. It acquired
controlling stac in $erger International Atd., &ingapore. And it
begins $angladesh operations. It maes the company eleventh
-oint venture in international.
THE COMPANY
Asian paints manufacturers and marets a 'ide
spectrum of coatings and ancillaries, 'hich include decoratives,
protection paints and heavy duty coatings. The manufacturing
37
facilities of the company for paint products are currently spread
over four locations
? $JAN0B, !AJA=A&T=A DE88
? ANCAE&#A= >B2=AT DEN4
? ,ATAN.JE=B A.,. DEND
? CA&NA
The manufacturing of paints in patancheru started in DEN8.
Asian paints, their modern manufacturing facility o)ers the
'idest range of paints among all the paint companies in India, in
terms of products shades as 'ell as pac si(es. Asian paints have
promoted 8 successful overseas subsidiaries.
Asian paints has been turning out consistency good
performance over the years. "or more than t'o decades no', it
has continuously been the leader in the industry. $esides being
the maret leader the company has also respectively provided its
excellence in terms of operating performance 'hich has earned
the company a place among the 'orlds leading manufacturers.
And Asian paints logo *>ATTB+, the impish boy holding paint tin
and brush is one of the most recogni(ed and most prosperous
mascots in Indian business.
DISTRIBUTION
38
In an industry the availability of stocs is crucial
determinant of sale, control of material units assumes great
signi%cance especially since Asian paints o)er the 'idest range
of products, shades and pacs to the DH444 dealers in the
country through the net'or of over 5F depots.
This is achieved through a sophisticated material
distribution system 'hich optimi(es production and movement
from plants and meshes it 'ith demand pattern in the maret.
The distribution system monitors the dispatch of materials
from plants I other processing units to the branches I depots
directly or through the 'arehouses or regional distribution
centre.
A bonded store room K$&=L in one 'here in material for
'hich excise duty has not been paid is stored. Each plant has a
bonded store room 'here material is sent immediately after
production. As and 'hen these materials are dispatched it moves
out of the bonded store room. Excise duty is livable at applicable
rates on actual movementMs basis.
0uring the course of this section and subsequent sections
reference 'ill often be made to an &CB and &AB. An su is
acronym for stoc eeping unit 'hich is combination of particular
pac, product, shade.
39
Eg. Apcolite synthetic enamel 844ml bus green is one
su
Apcolite synthetic enamel 844ml sy blue is
one su
CLASSIFICATION OF S3U
All products can be divided into ba(aar and industrial on
the end use. $a(aar and industrial item can further be divided
into inventoried and non inventoried items
Inventoried su are those for 'hich constant demand for
'hich sales forecast 'ith a degree of certainty.
FORM8A
$a(aar su inventoried at company I branches I depots.
The supply of suMs is a)ected through multi plant
distribution system.
FORM8B
$a(aar suMs 'hich shades are under the speci%c focus
of management group ne' products, pacs are not inventoried at
all branches I depots.
FORM8C<
40
=egular ba(aar s5( inventoried at branch I depotI but
not at company level.
FORM8C=
$a(aar s5( not inventoried at the branch I depotsI
company levels.
FORM8D
Industrial inventoried s5(>
FORM8E
Industrial not inventoried s5(>
FORM8F
All non con%rming stocsK This includes damaged stocs
defective stocs, old stoc 1paced before Hyrs for trade products
and beyond validity period for the industrial products.
CUSTOMER ACCOUNTING PROCEDURES
TYPES OF CUSTOMERS MODE OF
PAYMENT
D. Aocal dealers Aocal cheques I pay
order
3. =etail sales I cash salesI Aocal cheques party is
no'n as
41
pay order upcountry dealers or
cash
location, local cheques if the
dealer
has local ban account.
Industrial customerMs local cheques, 0.0 payable locally. In
case absolutely necessary an upcountry cheques or 0.0Ms.
.ash I local cheques 99 0ate of collection memo
D. Bpcountry cheques 9 Fdays from the date of collection memo
as it taes around Fdays for an up country cheques to be cleared.
3. 00I,ay date of 00 as the ordered customer is debited as
soon as 00 is purchased by the customer. Although the company
may not be creditedKi.e the customer is given the bene%t.L
PLANING PROCESS In the sales function the planning is as
follo's
P)as!8I
*!aret assessment+ It consists of assessment of maret
and maret share for total and ma-or products, gro'th
assessment segment 'ise for this purpose retail audit is
conducted. All the sale representatives collect data form each
retailer.
42
P)as!8I I
9@b-ectiove %xation+ $ased on the above analysis all units
should set ob-ective of achievement of total sales volume I sales
gro'th. :olume sales strategically important products lie
emuilsions auto re%nishes, 'ood %nishes and collection
e/ciency.
P)as!8I I I
In this phase plan for meeting the budget sho'n be dra'n
up. These plans involving product I segment focus, to'n focus,
dealer focus 'ould form the basis of the planning document.
P)as!8IV
9=esource planning+ It consists of
A< *man po'er planning+
$< input plans
.< sales promotion plans
PROFITS
Asian ,aints during the year 344H 1 3445 made huge
pro%ts. Though the company has stringent rules and regulations
regarding to'ards the credit policies and payment bills, dealers
demanding to extend the credit period. In spite of having such
stringent policies the company managing such a pro%t is
43
something 'hich has been attained by 'or of great managers
and sales sta) of the company. It indicated the planning an the
performance of the company personnel 'hich made the
company dominate the decorative paints segment, and the
'hole thing is baced up by quality, of the paints.
Asian ,aints net sales rise by D7.4NG and net pro%t rise by
DH.35G in 344H93445. And announces dividend to the share
holders WH8G.
PRODUTION CAPACITY
The company has four production centers to cater to the
needs of the customers in India they are as follo's
ANCAE&J#A=
$JAN0B,
,ATAN.JE=B
CA&NA
The production plats are lie four pillars to the company
and the company is planning to set up a ne' plant by expanding
its capacity.
The aggregate capacity of the four plants roughly mounts
to F444 tones I month in the decorative paints segment.
NE4 PRODUCTS DEVELOPMENT
Asian paints have got a full fedged research and
development function to counter the competition and produce
44
the technologically advanced products to provide a better service
to the customers.
The research and development and the management has a
plan to Fproduce four ne' products every year. And the ne'
products added till dates are
? A,EO anti fungal exterior paint
? A.E economy emulsion
? Btsav
? Asian 'all putty
? N. sanding sealer
and in the future the tally is going to be increased by their
research and development function.
LOGO
Aogo is a symbol 'hich represents the company by looing
at the logo any one 'ho has little no'ledge about the paints
'ould say that it is gattu and the company is Asian ,aints.
A boy standing 'ith a brush and a paint tin is famously
no'n and the logo for Asian ,aints 'hich is a popular one has
been designed by =.C.AAO!AN a 'ell no'n cartoonist.
THEORTICAL ASPECTS
INTRODUCTION:
TodayMs companies are facing their toughest competition
ever. .ompanies can outdo their competition if they can move
from a product and sales philosophy to a mareting philosophy.
45
The success of the companies lies in doing a better -ob of
meeting and satisfying customer needs. @nly customer9centered
companies are adept at building customers, not -ust building
products.
@ver H8 years ago, ,eter 0rucer observed that a
companyMs %rst tas is *to create customers.+ $ut todayMs
customers face a vast array of product and brand choices, prices,
and supplies.
No' the customers started estimating 'hich o)er 'ill
deliver the most value. .ustomers are value9maximi(ers, 'ithin
the bounds of search costs and limited no'ledge, mobility, and
income. They form an expectation of value and act on it.
#hether or not the o)er lives up to the value expectation a)ects
customerMs satisfaction.
CUSTOMR A4ARENESS:
.ustomers are informed and remaindered about the
products and are requested and persuaded to purchase their
products. &uch communication may be made their along the
product or 'ell in advance of the introduction of product into the
maret. &uch communication becomes necessary 'hen a ne'
product or service is introduced in the maret or an old product is
improved or it is simply to increase the sales of the products.
46
*A6a"!n!ss &*$0ass!s a++ t)! t**+s in t)! $a"5!tin#
$i7 6)*s! $a?*" "*+! is 0!"s(asi%! &*$$(ni&ati*ns>:
PHILLIP 3OTLER
The main features of a'areness are<
D. .ustomers are informed about the product or services of
the company. Either at the time of introduction of a ne'
product into the maret or 'hen any change is made in the
existing product.
3. .ustomers are reminded of the products and services of the
company.
H. .ustomers are requested or persuaded to purchase the
product and services of the company.
5. A'areness includes, advertising, personal selling and other
sale promotion techniques.
.onsumers must have a'areness about the ne' products
and their usage. &uch activities are performed by the
manufacturer. It is the responsibility of the producer to get
information about the consumers and prospective consumers so
that the necessary product may be served to meet their
demands.
&ub-ect matter companies must do more than mae good
products they must inform consumers about the product bene%ts
47
and carefully position products in customers mind. To do this
must sillfully use the mass promotion tools lie advertising,
sales promotion and public relations, personal selling, publicity.
ADVERTISING:
Advertising is de%ned as any paid form of non personal
presentation and promotion of an idea, goods or services by an
identi%ed sponsor.
9T)! '!st a%!"tisin# is *n! '1 satis/!
&(st*$!"s>:
88 PHILLIP 3OTLER
Advertising can be traced bac to the beginning of the
recorded history. Archeologist 'oring in the countries around
mediterrian sea have dug up signs announcing various events
and o)ers. The roman painted 'alls to announce >ladiator
%ghts, and the ,hoenician painted pictures promoting their
'aves and large locs along parade routes.
In DEEH advertisers ran up of bill of more than X DHN
billions through advertising is used mostly by business %rms it is
also by a 'ide range of non pro%t organi(ation professionals
social agencies that advertiser target to various target publics.
Ma?*" D!&isi*n In A%!"tisin#:
48
A%!"tisin# has the impersonal contact and gives
message to the receiver. The advertiser uses visual media lie
ne'spapers, maga(ines, radio, television, posters and
pamphlets. There is no feedbac to no' the response from the
people. Advertising is directed to'ards consumers. This leads to
more expenses and so the things become an costly a)air.
<> A%!"tisin# O'?!&ti%!s
aL To inform
bL To persuade
cL To remind
=> S!ttin# t)! a%!"tisin# '(#!t
After determining the advertising the ob-ectives, the company
next sets its adverting.
$udget for each product. The role of advertising is to e)ect
demand for the product.
Jo'ever some speci%c factors are that should be considered
'hen the setting the advertising budget.
a) &tage in product life cycle.
') !aret share
&) .ompetition
) Advertising frequency
!) ,roduct di)erentiation.
@> M!ssa#! D!&isi*n
49
A large advertisers can spent the same amount on
advertising, yet have very di)erent results studies sho' that
creative advertising message can be more important to
advertising success than the number of dollars spent.
A> M!ssa#! St"at!#1
The purpose of advertising is to get consumers to thin
about or react to the product company in certain 'ay. ,eople 'ill
react only if they believe that they 'ill bene%t form doing o.
E)ective message consist of customers bene%t, creativity,
!eanings, distinctive in nature.
B> Ma?*" st!0s in $!ia s!+!&ti*n>
aL 0eciding on reach, frequency, impact
=each is a measure of the percentage of the people in the
target maret 'ho are exposed to the ad campaign during a
given period of time.
"requency is a measure of ho' many times the average
person in the target maret exposed to the message.
Impact 1 qualitative value of a message exposure through a
given medium.
bL .hoosing various media types<
50
Ne'spapers !aga(ines
Televisions =adios
@utdoors Internet
cL !edia timing
SALES PROMOTIOIN
It includes activities other than advertising, personal
selling, publicity and public relations 'hich are used in promoting
sales of the product or in persuading the customer to purchase
the product. 0istribution of samples, premium coupon, point of
purchase display, o)9spring etc., are the examples of sales
promotion techniques.
Sa$0+!s 8 @)ers to consumers of a trail amount of a product.
C*(0*ns 8 .erti%cate that give buyer a saving 'hen they
purchase a speci%ed product.
R!'at!s (&as) "!2(n *C!"s) It o)ers to refund part of the
purchase price of the product to consumers 'ho send a *proof of
purchase+ to the manufacture.
P"in&i0+!s 8 It reduce prices that are mared by the producer
directly on the label or pacage.
P"!$i($s >oods o)ered either free or lo' cost and incentive
to buy a product.
51
A%!"tisin# s0!&ia+ti!s 1 useful articles imprinted 'ith an
advertisers name given as gift to consumers.
Pat"*na#! "!6a" 1 .ash or other re'ards for the regular use
of a certain companies products or services.
P*int *2 0("&)as!(POP) 1 It displays and demonstration that
taes place at the point of purchase of sale.
Dis&*(nt 1 &traight discount on price on purchase during a
period of time.
PUBLIC RELATIONS
Another ma-or promotion tool ism public relations 1 building
good relations 'ith the companies various publics by obtaining
favorable publicity, building up a good *.orporate image+ and
handling o) unfavorable rumors, stores and events. The old
name for mareting public relations 'as publicity, 'hich 'as
seen simply as activities to promote a company or its products
by planting ne's about it in media not paid for by the sponsor.
,ublic relations are much broader concept that includes publicity
ass 'ell as many other activities. ,ublic relations department
may perform follo'ing functions.
52
aL P"!ss "!+ati*ns .reating and placing ne's 'orthy
information in the media to attac attention to a person, product
or service.
bL P"*(&! 0('+i&it1 ,ublici(ing speci%c products.
cL P('+i& aCai"s $uilding and maintaining national or local
community relations.
dL L*''1in# $uilding and maintaining national or local
community relations.
eL In%!st*"s "!+ati*ns !aintaining relationship 'ith
shareholders and others in the %nancial community.
fL D!%!+*0$!nt ,ublic relations 'ith donors or members of
non pro%t organi(ation to gain %nancial or volunteer support.
PERSONAL SELLING
&elling is one of the oldest professions in the 'orld. The
people 'ho do selling go by many names.
&ales people, sales representatives, Account executives,
&ales consultants, &ales engineers, Agent 0istrict managers, and
!areting representatives to name -ust fe'.
&ales person, an individual acting for a company by
performing one of more follo'ing activities.
53
,rospecting, communicating, &ervicing and information
gathering.
PUBLICITY
,ublicity is a non9personal not paid stimulation of demand
of the products or services or business units by planting
commercially signi%cant ne's or editorial comment in the print
media or by obtaining a favorable presentation of it upon radio,
television or stage.
54
E7)i'it :<
CUSTOMER PURCHASING PATTERN
G"a0) :<
O&&(0ati*n F"!D(!n&1 E*2
R!s0*n!nts
$uilders 88 N8
.ontractors 5 7
Engineer D D.8
@thers 8 F.8
Total 78 D44
55
6%
2%
8%
84%
Builders
Contractors
Engineers
Others
INFERENCE:
"rom the above table it is found that N8G of the product
purchasers are builders.
It is found that 7G of the customers are contractors. D.8G
of product purchasers are engineers and F.8G of product bought
by others.
It is clear from the above data above, that N8G of the
customers are builders because they do painting before handing
over the houses to the respective o'ner.
56
E7)i'it :=
E,PERIENCE IN PAINTING PROCESS
G"a0) : =
INFERENCE:
N*> *2
R!s0*n!nts
E70!"i!n&!
R!s0*n!nts
E*2
R!s0*n!nts
78 78 D44
57
0%
100%
0% 0%
100
It is found that all the respondents have experienced in
painting process, even though, the buyers are purchasing then
products for the D
st
time, since it is no'n that buying of paints
can be not only for self but even for other such as relations and
friends.
58
E7)i'it :@
APPRO,IMATE BUDGET TO4ARDS PAINTING
G"a0):@
INFERENCE:
Va+(! *2 t)! B(#!t F"!D(!n&1 E*2
R!s0*n!nts
$elo' 84,444 D3 DN
84,444 1 F8,444 5 7
F8,444 1 D,44,444 34 HD
Above D,44,444 3E 58
59
Below 50,000
50,000 - 75,000
75,000 - 1,00,000
!o"e 1,00,000
"rom the above table out of 78 respondents it 'as found
that DNG of the respondents are in budget belo' =s. 84,444I9
'hich means they are ready to spend for paints. 7G of the
respondents are in budget bet'een =s. 84,444I9 to =s.F8,444I9.
HDG of the respondents are in budget bet'een =s.F8,444I9 to
=s.D,44,444I9 and the remaining 58G of the respondents are in
budget above =s.D,44,444I9.
&o it 'as found that maximum numbers of respondents are
ready to spend upto =s.D,44,444I9 and above for paints.
60
E7)i'it :A
USAGE OF DIFFERENT INTEROIOR PRODUCTS
G"a0): A
INFERENCE:
Int!"i*" P"*(&ts F"!D(!n&1 E*2
R!s0*n!nts
Enamel D5 33
0istemper H5 83
,olish 5 7
Emulsion DH 34
61
Ena#el
$iste#%er
&olish
E#ulsion
"rom the above table out of 78 respondents, it is found that
33G of the respondents are in requirements of enamel paint for
their interiors, 83G of the respondents required the interior paint
lie distemper, 7G of the respondents are in requirement of
Asian ,aint polish, 'hile the other 34G of the respondent are in
requirement of Emulsion.
In interior product usage, there is a greater demand for the
distemper follo'ed by the enamel.
62
E7)i'it :B
USAGE OF DIFFERENT E,TEROIOR PRODUCTS
G"a0): B
INFERENCE:
E7t!"i*" P"*(&ts F"!D(!n&1 E*2
R!s0*n!nts
.ement ,aint D3 DN
Textured H 8
Emulsion 3H H8
,ermanent "inish D 3
&no'.em 37 54
63
Ena#el
$iste#%er
&olish
E#ulsion
"rom the above table out of 78 respondents, it is found that
DNG of the respondents are in requirement of cement paint for
their exterior purpose, 8G of the respondents are in requirement
of textured, 'here as H8G of the respondents required the
Exterior ,aint lie emulsion and 3G of the respondent are in
requirement of permanent %nish product, 'hile the remaining
54G of the respondents are in requirement of &no'cem.
&no'cem had a greater demand, because most of the
middle class families are using &no'cem, and next to sno'cem
the familiar product is emulsion.
64
E7)i'it :F
LIFE E,PECTANCE FOR INTERIOR PAINTS BY CUSTOMERS
G"a0) : F
INFERENCE:
P!"i* F"!D(!n&1 E*2
R!s0*n!nts
7 months 9 9
D Sear 9 9
3 Sear E D5
8 Sear 87 N7
65
2 'ear
5 'ear
"rom the above table, out of 78 respondents, it is found
that D5G of the respondents or customers are expecting the life
of interior paint to be 3 years and the remaining N7G of the
customers are expecting more than 8 years of lie, for their
interior products.
In details, if 'e go, *No customer is expecting life belo' 3
years+. And most of the customers are expecting their product
life above 8 years.
66
E7)i'it :G
LIFE E,PECTANCE FOR E,TERIOR PAINTS BY CUSTOMERS
G"a0) :G
INFERENCE:
P!"i* F"!D(!n&1 E*2
R!s0*n!nts
7 months 9 9
D Sear H 89
3 Sear 33 H5
8 Sear 54 7D
67
1 'ear
2 'ear
5 'ear
"rom the above table, out of 78 respondents, 'e can %nd
that 7DG of the customers are expecting more than 8 years of
life for the exterior paints and H5G of customers are expecting
more than a life of 3 years, 'hile the remaining 8G of
respondents are expecting more than D year of life for their
exterior paints.
No one among respondents are expecting the life of interior
paint products for less than D year.
68
E7)i'it: H
TYPE OF FINISH RE.UIRED FOR E,TERIOR PAINTS BY
CUSTOMERS
G"a0): H
INFERENCE:
T10! *2 Finis) F"!D(!n&1 E*2
R!s0*n!nts
&mooth 55 7N.8
Textured D3 DN
,ermanent N D3
@thers D D.8
69
(#ooth
)e*tured
&er#anent
Others
"rom the above table, out of 78 respondents, A smooth type
of %nish is required by 7N.8G of the respondents 'here as DNG
of the respondents require a textured type of %nish, and D3G of
the customers require permanent type of %nish, 'hile the
remaining D.8G of the customers require other type of %nishes.
70
E7)i'it :I
TYPE OF FINISH RE.UIRED FOR INTERIOR PAINTS BY
CUSTOMERS
G"a0): I
INFERENCE:
T10! *2 Finis) F"!D(!n&1 E*2
R!s0*n!nts
0istemper 84 FF
Emulsion D8 3H
71
$iste#%er
E#ulsion
"rom the above table, out of 78 respondents, *0istemper
%nish+ is required by FFG of the respondents, 'hile the other
3HG of the respondents require emulsion %nishing for their
interiors.
72
E7)i'it :<J
4OOD FINISH PRODUCT PREFERENCE BY CUSTOMERS
G"a0) : <J
INFERENCE:
T10! *2 Finis) F"!D(!n&1 E*2
R!s0*n!nts
EnamelKglassyL 8F NF
EnamelKsatinL 8 N.8
!elamine 3 H
,oly Btherene K@,AAL D D.8
73
Ena#el+glass,-
Ena#el+satin-
.ela#ine
&ol, /therene
+O&0-
"rom the above table, out of 78 respondents, it came to
no' that NFG of the respondents prefer for enamelKglassyL type
of 'ood %nish, 'here as N.8G of the respondents prefer for
EnamelKsatinL type of 'ood %nish, and HG of the respondents
prefer !elamine and the remaining D.8G of the respondents
prefer poly9utherene type of 'ood %nish.
&o it is clear from the above analysis that most of the
respondents i.e.,NFG of the respondents are going for
enamelKglassyL type of 'ood %nish.
74
E7)i'it :<<
A4ARENESS ABOUT ASIAN PAINTS PRODUCTS
G"a0) : <<
A6a"!n!ss F"!D(!n&1 E*2
R!s0*n!nts
Ses 8E E4
No 7 D4
75
'es
1o
INFERENCE:
"rom the above table, out of 78 respondents, it came to
no' that E4G of the respondents are a'are of Asian ,aint
,roducts , 'hile the other D4G of the respondents are not a'are
of Asian ,aint ,roducts.
&o company can go for some more a'areness programme
in order to capture the remaining una'are sector.
76
E7)i'it :<=
A4ARENESS ABOUT COLOUR 4ORLD CONCEPT
G"a0) : <=
A6a"!n!ss F"!D(!n&1 E*2
R!s0*n!nts
Ses 3H H8
No 53 78
77
'es
1o
INFERENCE:
"rom the above table, out of 78 respondents, H8Gf the
respondents are a'are of 9C*+*(" 4*"+:tinting machines
concept of Asian paints, 'hile the other 78G of the respondents
are not a'are of this concept.
&o, the company need to communicate about the a
9C*+*(" 4*"+: tinting machine concept to the customers by
conducting a'areness programme or by advertisement.
78
E7)i'it :<@
CUSTOMERS; CHOICE OF COMPANY FOR INTEREIORS
G"a0) : <@
INFERENCE:
Na$! *2 t)!
C*$0an1
F"!D(!n&1 E*2
R!s0*n!nts
Asian HF 8F
$erger D7 38
Nerolac 8 N
@thers F D4
79
sian
Berger
1erolac
Others
"rom the above table, out of 78 respondents, NFG of the
respondents are opting for Asian Int!"i*" Paints, 'hile 38G of
the respondents are preferring for $erger Interior ,aints, and NG
of the respondents are opting for Nerolac Interior ,ains, 'here as
the remaining D4G of the respondents are opting for some other
companies for the interiors.
&o, it is clear that Asian Interior ,aint products have more
customer preference 'hen compared to other brands.
80
E7)i'it :<A
CUSTOMERS; CHOICE OF COMPANY FOR E,TEREIORS
G"a0) : <A
INFERENCE:
Na$! *2 t)!
C*$0an1
F"!D(!n&1 E*2
R!s0*n!nts
Asian H3 84
$erger D8 3H
Nerolac 8N D3
@thers D4 D8
81
sian
Berger
1erolac
Others
"rom the above table, out of 78 respondents, NFG of the
respondents are opting for Asian E7t!"i*" Paints, 'hile 3HG of
the respondents are preferring for $erger Exterior ,aints, and
D3G of the respondents are opting for Nerolac Interior ,ains,
'hereas as the remaining D8G of the respondents are opting for
some other companies for the interiors.
#hen compared to interior paints, company exterior paints
are not preferred by some of the customers 'ho 'ere preferring
Asian paint interior products.
82
E7)i'it :<B
TYPE OF GUIDANCE E,PECTED FROM COMPANY BY THE
CUSTOMERS
G"a0) : <B
INFERENCE:
T10! *2 G(ian&! F"!D(!n&1 E*2
R!s0*n!nts
,rovide details on recent
development T products
38 HN
Educate on product features D8 35
Appraise on product
suitability
8 N
Cno'ledge of sales 0iscount D4 D8
$udgeting 'hile painting D4 D8
83
&ro"ide details on
recent de"elo%#ent 2
&roducts
Educate on %roduct
3eatures
%%raise on %roduct
susita!ilit,
4nowledge o3 sales
$iscount
Budgeting while
%ainting
(lice 6
ting
"rom the above table, out of 78 respondents, it 'as found
that HNG of the respondents are in need of guidance regarding
the details on recent development and products, 'hereas 35G of
the respondents are in need of guidance regarding education on
product features. #hile NG of the respondents are in need of
guidance for appraise on product suitability. D8G of the
respondents are in need of guidance regarding the no'ledge on
sales discounts. #hile the remaining D8G of the respondents are
in need of guidance regarding the $udgeting 'hile ,ainting.
84
SUMMARY
,aint industry has sho'n a rapid gro'th in the last year
344H93445, and since then there has been a decreasing gro'th
in the industry.
Asian ,aints 1 one of the largest paint companies in India,
'hich has sho'n a tremendous gro'th since its establishment,
liberali(ation. This is an achievement, achieved by careful
planning a follo'ing %rm procedures set by the company
management.
Asian is qualitative company 'ith strict rules and
regulations. All the planning taes place at the central o/ce
!umbai.
Each Asian paint production center has a distinguished
pacing so that by looing at the drum or cartons the plant
identi%cation become easy to the godo'n incharge.
The company has a excellent distribution net'or 'hich is
the prime reason for its success follo'ed by mareting plans.
The company has a full fedge research of development
function, 'hose aim is develop and present ne' products every
year.
85
The price and selection of target is also done to protection.
.onsidering the promotional part Asian ,aints employed @gilvy
and !ather to attract the customers.
Asian ,aints has developed many brands and 'hich have
'ell penetrated in the minds of customers.
Ex< Apcolite, Apex, A.E, etc.,
And Asian ,aints 'as the %rst to enter 'ith manual color
dispensing concept 'hich too o) 'ith the advent of computers,
Asian is not lacing behind in this they have developed *.olour
#orld+ for the consumers 'ith DD84 shades to be selected from.
The study of my topic is *.ustomer A'areness+ 'ith
reference to Asian ,aints India Aimited. And Advertising, sales
promotion, personal selling, public relations, and publicity are the
customers a'areness programs to be conducted by the company
.
86
FINDINGS
As a part of my study, survey on 9C(st*$!" A6a"!n!ss:
'as conducted during !ay 1 2une 3444. Important %ndings are
concerning from the customers, have resulted from the survey.
They are summari(ed in follo'ing paragraph.
There are 78 respondents in the sample of a study on
*.ustomer A'areness+.
The "irst and foremost observation that has been made from
the study is that *Asian ,aints+ is the leader in the industry of
paints. It has a very high brand equity in the maret.
According to observations of the survey, price is the
dominating factors, 'hich infuences the purchasing decision
of the respondents follo'ed by quality, company name,
coverage and service. .omparing to competitors Asian ,aint
.ompany ,rices is high.
"rom the analysis point of vie', 'hen compared to interior
paints, company exterior paints are not preferred by some of
the customers, 'ho are preferring Asian ,aints interior
product.
At last, most of the customers are satis%ed 'ith Asian ,aint
products, but at the same time they require guidance
regarding the recent development of the products.
87
SUGGESTIONS
&ales promotion committee should be formed to formulate and
implement n!6 $a"5!t st"at!#i!s to compete 'ith
competitors and to extend the maret share.
.ompany sales representatives must maintain "!+ati*ns 'ith
construction companies as 'ell as 'ith painting contractors 'ith
the help of the dealers.
.ompany should conduct $!!tin#sK at least to mae the
customers to no' about the latest development in the paint
industry and their products.
.ompanies should even &*n&!nt"at! on Exterior ,aints as its
maret share is very lo'.
A%!"tis!$!nt should be increased to update the image of
Asian ,aints in the changing environment.
.ompany must loo after, there is a &+*s! "!+ati*ns)i0 bet'een
sales representatives and dealers 'ith the customers.
.ompany should maintain the &(st*$!" "!&*"s>
88
BIBLIOGRAPHY
,rinciples of !anagement
Philip Kotler
!areting !anagement
Rama Swamy
The Jindu >uide !aga(ines
Business India
4EBSITE:
'''.asianpaints.com
89
CUSTOMER A4ARENESS
(A St(1 6it) "!2!"!n&! t* Asian Paints Inia Lt>)
A Project report submitted to Andhra University,
Visakhapatnam in partial fulfllment for the award of the
degree of
MASTER OF BUSINESS ADMINISTRATION
By
3> SRINIVASA RAO
Under the esteemed guidance of
M"> G> SRINIVASA RAOK M>S&>K M>B>A>KM>P)i+K P>G>D>C>A>
H!a *2 t)! D!0a"t$!nt
DEPARTMENT OF MANAGEMENT STUDIES
SAMATA DEGREE L P>G> COLLEGE
(Afliated to Andhra University and Approved y
A!I!"!#!$%
VISA3HAPATNAM8B@JJ<G
=JJ@8=JJB
90
"$R#I&I"A#$
This is to certify that pro-ect titled YCUSTOMER
A4ARENESSY 'ith reference to Asian Paints Inia Li$it!K
Visa5)a0atna$ submitted by M"> 3> SRINIVASA RAOK to the
college of !anagement &tudies, SAMATA DEGREE L P>G>
COLLEGE in partial ful%llment for the a'ard of the 0egree of
MASTER OF BUSINESS ADMINISTRATION is a record of
bona%de 'or carried out by her under my guidance and
supervision.
,lace< :isahapatnam M">G>SRINIVASA RAO
0ate< M>S&>K
M>B>A>KM>P)i+K P>G>D>C>A>
J.@.0.T ,ro-ect >uide
&amata 0egree T
,.>..ollege,
:isahapatnam.

91
AC3NO4LEDGEMENT
I express our deep sense of gratitude and indebtedness to
M"s>R>VIJAYA RAVINDRA, ,rincipal, Sa$ata D!#"!! an P>G>
C*++!#!K :isahapatnam, for the encouragement given to me to
complete the pro-ect and for the facilities provided to me through
out the pro-ect.
I am thanful to our guide and coordinator M"> G>SRINIVAS
RAOK M>S&K MBAK M>P)i+K PGDCAK for his valuable guidance
and ind cooperation right from the beginning of the pro-ect
report. I am thanful very much for his ind constant
encouragement and guidance sho'n during the course of our
pro-ect.
I also extend my sincere gratitude to the :isahapatnam
Area !anager of Asian ,aints India Atd., for giving me the
opportunity to complete the pro-ect under their able guidance.
I express my gratitude to M"> NAGA RAJU (A"!a
Mana#!")K M"> 3RISHNAM RAJU (P"*?!&t Sa+!s
In&)a"#!)K for their continuous support and encouragement
throughout my pro-ect 'or. Aast but not the least, I 'ould lie to
express my sincere thans to the respondents and my others not
specially mentioned.
3> SRINIVASA RAO
92

CHAPTER I
INTRODUCTION
OBJECTIVES OF THE STUDY
NEED FOR THE STUDY
METHODOLOGY
LIMITATIONS OF THE STUDY

93
CHAPTER II
PAINTS THE COLOUR OF
OUR LIFE
PROFILE OF PAINT INDUSTRY
(A P"*/+!)
PROFILE OF THE COMPANY

94
CHAPTER III
THEORETICAL ASPECTS
95
CHAPTER IV
ANALYSIS L INTERPRETATION

96
CHAPTER V
SUMMARY
FINDINGS
SUGGESTIONS
97

Anne'ure

98
Biliography
99
"()#$)#S
Page )o!
CHAPTER I
Introduction *
(+ectives of the Study
,
)eed for Study
-
.ethodology /
0imitations of the Study
1
CHAPTER II
Paints 2 #he "olour of our 0ife
3
Pro4le of Paint Industry (A Pro4le%
*5
Pro4le of the "ompany
--
CHAPTER III
#heoretical Aspects
/,
CHAPTER IV
Analysis of the Study
1*
CHAPTER V
Summary 6*
100
&indings 6-
Suggestions
6/
BIBLIOGRAPHY
ANNE,URES
101
TABLE AND GRAPH INDE,
Ta'+! an
G"a0) N*>
D!s&"i0ti*n Pa#!
N*
D .ustomer ,urchasing ,attern 8D
3 Experience in ,ainting ,rocess 8H
H Approximate $udget to'ards ,ainting 88
5. Bsage of 0i)erent Interior ,roducts 8F
8 Bsage of 0i)erent Exterior ,roducts 8E
7 Aife Experience for Interior ,ains by
.ustomers
7D
F Aife Experience for Exterior ,ains by
.ustomers
7H
N Type of "inished required for Exterior
,aints by .ustomers
78
E Type of "inished required for Interior
,aints by .ustomers
7F
D4 #ood "inish ,roduct ,reference by
.ustomers
7E
DD A'areness About Asian ,aints
,roducts
FD
D3. A'areness about .olour #orld
.oncept
FH
DH .ustomer choice of company for
Interiors
F8
D5 .ustomer choice of company for
Exteriors
FF
D8 Type of >uidance expected from
.ompany by the .ustomers
FE
102
7$"0ARA#I()
I declare that this pro-ect report entitled *CUSTOMER
A4ARENESS+ of Asian Paints Inia Lt>K Visa5)a0atna$
submitted by me to the &A!ATA 0E>=EE T ,.> .ollege of
!anagement &tudies, A/liated to Andhra Bniversity, is my o'n
and is not submitted to any other Bniversity or has been
published anytime before.
,lace< :isahapatnam (3> SRINIVASA
RAO)
0ate<
103