Relationship Marketing In

Asian Paints (India) Limited

and Kansai Nerolac Paints
Limited.

Presented by:
Shiksha Agarwal
Roll no: 51
 INDEX
What is relationship marketing
Techniques of developing relationship7 marketing
Indian paint industry
Asian Paints(India)Ltd
Overview of the company
SWOT Analysis
Kansai Nerolac Paints Ltd
Overview
SWOT Analysis
Point of Parity
Point of Differences
Problems solved by relationship marketing
strategies
Conclusion
 7

NEED FOR RELATIONSHIP

MARKETING?
 Relationship Marketing
Relationship marketing is defined as "Bringing Quality, Customer
Service and Marketing Together". But if the quality of the product is
not up to the mark, relationship marketing will fail as customers will
not accept an inferior quality product. Even though a company may
be very good in developing customers relation with a poor quality
product it cannot exercise relationship marketing. Similarly, a
strong customer service will enhance relationship marketing. But, if
the customer service is poor in after sales this will generate more
enemies than supporters. Hence, "CQM" will enable the company to
practice relationship marketing better.
Techniques of developing
Relationship Marketing
 Phone a customer a day
 Be proactive
 Frequent purchase scheme
 Increasing Key Customer visit
 Improve communication process
 Improve service
WHY RELATATIONSHIP MARKETING
IN PAINT INDUSTRY?
Indian Paint Industry
 Indian Paint Industry
The Indian paint industry has come a long way 7
from the days when paint was considered to be
a luxury item. The Indian paint industry can
be classified as as follows:

Indian Paint Industry Market Segmentation

Total Market size – Rs.6780 Cr.

Unorganised
1) Organized Sector – 70% (Rs.
sector 4730 Cr.)
30%

2) Unorganized Sector – 30% (Rs.

Organised
Sector 2050 Cr.)
70%

Comprising of about 2500 units

manufacturing low technology paints
for local use
 Market Share of the Major Players
(2008-09)

Kansai Nerolac
23%

Asian Paints
43%

ICI Paints
12%

Berger Paints
Others Snowcem
17%
2% India
3%
 PROFILE
Organized Sector can be divided into 2 distinct segments
i) Industrial Segment - 24% (Rs.1630 Cr.)
ii) Decorative Segment - 76% (Rs. 5150Cr.)
Decorative Segment
The decorative segment is broadly divided into interior
paints and exterior paints. The growth in revenues is
dependent on the housing sector.
Industrial Segment
The industrial and automotive paint manufacturing however, is
technology intensive wherein domestic majors have tied up with
select global majors like Nippon Paints, DuPont, PPG and Kansai
for technology. Industrial paints have applications in
automobiles, consumer durables, infrastructure projects and in
the manufacturing sector.
 Asian Paints- History
 In 1942, a partnership was started by four
entrepreneurs.
 In 1945, the firm was turned into a company.
 In 1957, a plant was set up at Bhandup,
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%.

Har GhaR Kuch Kehta

hai
 SUBSIDIARY
7
 Asian Paints Industrial coatings (100% Subsidiary)

 Berger International Limited (50.1% stake of Asian paints India

Limited, APIL)

 Asian Paints International Limited Mauritius,(Wholly owned

subsidiary of APIL)

 SCIB chemical (60% stake of APIL)

 SAE, Egypt

Har GhaR Kuch Kehta

hai
 VISION

Identifying needs of the customers. 7

Delivering customers value for money.

Contribution to the society.

Maximum long term value for the stake holders.

BRANDS
Premium Segment- ROYALE
Middle Segment- APCOLITE, APEX
Lower Segment-GATTU, TRACTOR, UTSAV, 3-MANGO

Har GhaR Kuch Kehta

 SWOT Analysis

STRENGTH
 Market leaders with 44% market shares.
 Strong in inventory control.
 The pricing strategy is oriented to middle and lower
end consumers.
 Widest product range in terms of products, shades,
pack sizes.
 Comprehensive nation wide coverage of the market.

Har GhaR Kuch Kehta

hai
 WEAKNESS
 Seasonal demand and hence in off seasons it can
lead to cash flow problems.

 Innovation in developing new product is inadequate.

 Weakness on the technology front in industrial

paints.

 Low recognition in Automotives Paints sector.

 Lack of focus.

Har GhaR Kuch Kehta

 Opportunity
 Huge potential in Industrial paints sector.
 Huge potential in decorative segment.
 Good monsoon leading to high GDP growth.
 Change in customer involvement.
 Increased usage of paints for Maintenance Purpose.
 High opportunities in international business.
Threats
 Competitors have gone in for hi tech instacolour spot
mixing.
 Domination of few foreign companies.

Har GhaR Kuch Kehta

 Relationship Marketing
Programs
 Asian Paints Color World
 Installation of Tinting Machines
 Asian paints foresite – display
 Samplers – 200ml, paint packs
 Asian Paints Home Solutions- along with
warranty card with validity period-1year
 Installation of ERP
 Cost Calculators in the website

Har GhaR Kuch Kehta

 History
 In 1920, it was known as Gahagan Paints and Varnish Co.
Ltd.
 In 1957, Goodlass Wall Pvt. Ltd. grew popular as Goodlass
Nerolac Paints (Pvt.) Ltd and it also went public.
 In 1983, Goodlass Nerolac Paints Ltd. strengthened itself by
entering in technical collaboration agreements with Kansai
Paint Co. Ltd., Japan and Nihon Tokushu Toryo Co. Ltd.,
Japan. 
 In 2006, on the 11th of July, Goodlass Nerolac Paints Ltd.
name has been changed to Kansai Nerolac Paints Ltd.
 In 2010, the company has been operating since 80 years in
both decorative and industrial segment.

Yeh rang hai jo har

kisi ko chutta hai!!!!
 SWOT Analysis
STRENGTH
 The second largest paint company in India
 Undisputed leader in Industrial segment, with market
share of 45%
 It has a technical-cum-financial collaboration with
Japan's Kansai Paint Company.
 Nerolac has a wide distribution network of 11000 dealers
across India.
 Strong technology
 Thrust on product innovation by leveraging global
technology available from collaborators.
 The advertising campaign - the tune, the symbol GOODY
the smiling tiger, and celebrity endorsement.
Yeh rang hai jo har
kisi ko chutta hai!!!!
 WEAKNESS
 Market share of roughly 13 – 14% in decorative paint
as compared to Asian paints ltd.
 Over dependence on industrial segment, although
now it has been able to manage a considerable good
share in decorative segment too.

OPPORTUNITIES
 More focus on the decorative paints segment, as it is
a higher margin business.
 Consistent fall in interest rates and tax incentives on
housing loans.

Yeh rang hai jo har

kisi ko chutta hai!!!!
 Continued..
 Expand market coverage in untapped and emerging
markets like plastics, can coatings & coil coatings.
 Try and regain its market supremacy in markets like
General Industries & Auto ancillaries, which it had
exited due to capacity constraints.

THREATS
 Strong competition from Asian paints, Berger and ICI
in decorative segment
 Over dependence could hurt margins as the
bargaining power is high.

Yeh rang hai jo har

kisi ko chutta hai!!!!
 POINT OF PARITY
 Huge investment in Information Technology
 Investment and Development of human resources
 Management and Governance Process(including
Role Specification and employee motivation)
 Performance Evaluation Process
 Take away the customer problem by providing the
best solution
 Bring out Product’s full benefit.
 POINT OF DIFFERENCES
 Relationship marketing programs
 Managing customer acquisitions
 Crafts custom made solution
 Provide electronic access to customers and
tinting machines.
 Marketing Strategies
 Marketing Strategies
Asian paints
 Direct Marketing
 Telemarketing
 Advertisements
 Web Marketing
Kansai Nerolac Paints

 Akanksha “Touch a child’s life”

 Contests - Interactive shade card
Har din diwali
 Free Insurance scheme to trigger demand
 Expenditure on Advertisements.
 Solutions provided by
Relationship Marketing Strategies

Managing customer retention

The Home Solutions division of Asian Paints was facing the

problem of rising voluntary attrition. High attrition rates mean
that a large number of customers were being lost affecting
overall profitability levels. Then what could they do to prevent
it??
Deploy Retention Agents to retain customers using partly the
product or service of the company.
Design proactive retention programs to retain customers who
are likely to switch.

Solution Implemented
Use of proactive retention program to identify well in advance
the customers who are likely to switch.

Data used
Asian paints data
Home solutions data
Data about lost customers

Concentrate on those customers with high propensity to leave

and who yield higher profits.
Effects-

Increase in retention rates

Reduction in the cost per retention account

Kansai Nerolac Paints Limited

In a similar situation would adopt a similar relationship

marketing strategy.

Though the strategies of asian paints are more rigorous.

 CONCLUSION
Both the companies cater to the consumers of the two
segments of the paint industry i.e., industrial and
decorative. But we know that APIL is major market
player in the decorative sector whereas Nerolac paints is
in industrial sector. There is a higher profit margin in
the decorative segment and APIL by continuously
upgrading its technology is a consumer favourite. The
profit margin is low in industrial segment as compared
to decorative segment due to bargaining power of
customers. Nerolac being the major player in industrial
sector does not need to continuously improve its
technology abilities although they keep on doing it to
drive away the competitors. Now, Nerolac is focusing all
its energy on decorative segment. There are a lot of
similarities in operation of both companies yet
innovation will be the key to the success of each
companies product.
 THANK YOU!!

Thank
you...!!