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Assignment On Marketing Management
Assignment On Marketing Management
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DR. N. N. SHARMA
(ASSIGNED FACULTY)
GAURI SAHU
PGDBM, 1ST TRIMESTER
ROLL NO:- 23/D/2009
08.09.2009
INTRODUCTION
Established in the year 1920, Kansai Nerolac Paints Limited (KNP) is
headquartered at Mumbai. KNP is a subsidiary of Kansai Paint Co. Ltd., Japan
(KPJ) a leading Japanese paint company.KPJ holds 69.27% shares in KNP . KNP
serves its vast customer base through its four strategically located factories at
Jainpur in U.P., Lote in Maharashtra, Perugundi in Tamil Nadu and Bawal in
Haryana as well as 65 sales locations. KNP is in the process of putting up its
fifth unit in Tamil Nadu. The managing Director of the company is |
|
KNP has a good name in the market being number one in the industrial,
automotive and Powder coating business. KNP is known for transformation,
innovation and style and has consistently been producing good re sults. Being
the fore runner in introducing new products, finishes and new technologies to
the market, taking the platform of innovation, KNP products and finishes enjoy
good brand image and its brands like ͚Impressions͛, ͛Beauty͛, ͚Excel͛, ͛Suraksha͛
are well trusted by the consumers.
÷ ÷
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Nerolac has two broad types of productsͶdecorative coatings and industrial
coatings. Decorative Coatings consisted of three products of decorative, auto
paints and wood coatings. Industrial coatings consisted of Original Equipment
Manufacturer (OIM) and protective coating. Further they can be classified as ---
Decorative Coatings
Interior-Nerolac͛s range of Decorative paints for inner walls
Ë âater based Paints
-Emulsions
-Distemper
Ë Solvent Based Paints
-Lustre
-Enamel
-Flat oil
Exterior- Nerolac͛s range of Decorative paints for building exteriors.
Ë Emulsions
Ë Textured
Ë Cement
Ë Nerolac Impressions Everlast
Industrial coatings
Ë Coating solutions for Bus, Load & Trailer Bodies
Ë Coating for drums and barrels, cylinders, beverage containers,
collapsible tools, crown & caps.
Ë Coil coatings for steel and aluminum substrates.
Ë Coatings for plastic substrates ranging from TV cabinets & Mobile
phones.
Ë Coatings conforming to IS, Defence & Road transpo rt specifications
Ë Coatings for cycle, helmets & furniture industry, etc..
Automotive Coatings of Kansai Nerolac have been tested and certified
by global automotive manufactures who have set up base in India, like
Suzuki Motors, Honda Motors, Toyota Motors, General Motors,
Corporation, IVECO Motors, Peugeot.
÷
Overheads were kept under control. Overall as a percentage to sales was more
or less at the same level as compared to the last year. Profit Before
Depreciation, Interest and Tax (PBDIT) for the year is lower at Rs. 157.44 crores
as against Rs. 186.55 crores of previous year reflecting a degrowth of 15.6%.
Table 4 :
I terest
De reciatio
÷ Paid
2% Divide d 0%
Retai ed Ear i gs Cor orate Tax 2%
4% Ma ower Cost 3%
4%
Excise Duty
12%
Materials
53%
erati g
ex e ses
20%
.
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At Nerolac, the marketing function has been one of the pillars behind
building a successful organization. They believe that their key strength lies in
understanding the consumer. Nerolac commercials have been well ʹloved ovr
the years and its jingle ʹ͚è
͛ Is now a familiar
tune in every Indian household.
Over the years, Nerolac has undertaken several initiatives, which have made
unprecedented success. Beginning with the introduction of the new Brush
stroke logo, which stands for the process of painting? It depicts motion,
dynamism and progress through change. The signal red color which is the color
of Nerolac, is symbolic o eternal joy and hope. It has now become an integral
part of the brand identity and now appears as a sign-off on any kind of
communication. ?
Another one of the marketing initiative was the unveiling of the new
corporate campaign with Mr. Amitabh Bachan as the brand ambassador and a
new baseline come into being i.e, ü .
Another one of the initiatives launched, during the festival season in Diwali
was ͚Har Din Diwali͛.
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Further, the paint market is divided into two partsͶLow End & High End.
The classification is shown in the Table 5
Table 5 :
÷÷
This shows the differences between the Market Competitors. Nerolac Paints
produce A to Z products in the market. According to the consumer survey, the
toughest competitor of Nerolac Paints is Asian Paints.
There is high demand for the product in the market but Nerolac launched the
entire Decorative Product Range as ͚lead free͛ product which is harmless and
good for the health. there are also govt. market who wants to buy low price
with poor durability. The products like Roof paint, Auto paint etc. are not
produced by Asian paints. So these features help Nerolac to grab the market.
The market share of various brands is shown in Table 6
Table 6 :
Sales Turnover Rs
Asian Paints 4270.05
II India 908.65
Asian Paints Kansai
Nerolac 1375.63
I I India
Berger
Kansai Nerol
Paints 1513.74
Berger Paints Shalimar
Shalimar Pain Paints 334.30
Jenson Nicho
Jenson
Nicholso 37.47
Nerolac͛s strength of wide spread distribution network is its right arm in
generating sales revenue from all parts of India. Nerolac has a wide distribution
network of over 11000 dealers. They have eight Sales Divisions and each
division has depots to take care of local needs. In all they have 66 depots . All
this ensures complete reach in India including rural and up country markets.
In the North-Eastern region there are sales manager who looks after the
sales of the company. The dealers are having a Dealers Net Price (DNP) in
which they get some rebate from the branch office . There were different
schemes provided by the company for fulfilling sales target on differ ent
products in different period of time. The overview of the rebate schemes by
the branch office and the company are shown in Table 2 and Table 3
respectively.
There are no any intermediaries in dealing with the ultimate customers . The
wholesalers and retailers are confined to dealers and the dealer cost is passed
to the consumers. The salesman visits the dealers, project sites, construction
sites. They also have contacts with the architects, interior designers, painters
who are the influencers of the consumers and visit them regularly. The regular
visit ensures that they always good contact with the consumers and
understand the sales strategies.
÷
÷
The age group between 20-25 years who are the future generation of the
use of Nerolac Paints is much more attracted towards Asian Paints. The
Nerolac likings as a product is less than an half as a decorative use in
households. They were quite concerned about Asian Paints which gets a huge
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1) The company should give more importance to advertisement available from
various sources like newspaper, hoardings, magazines, radio etc..
2) The price structure is in level. For a good quality product the price would be
obviously higher. But it should change to a little bit of margin to cope up
with competitors.
3) More instruction should be given to the dealers for the promotion of the
product. They can play as role of influencer and can increase the number of
sales and lead the company towards profit.
4) The shade of colours is good. The company should update the consumer͛s
choice according to the need of time and sustain the advantage.
5) The company should keep a record of the competitors and make required
changes looking at the market share. New steps should be taken to grab the
market.
÷ ÷
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÷ NTENTS
wIntroduction
wCompany Background
wProduct Portfolio
wManufacturing Strength
wProduct Features
wPromotion
wMarketing Strategy
wMarket Competition
wConsumers͛ Perception
wRecommendations
wConclusion
wQuestionnaire
c÷KN EDGEMENT
GAURI SAHU