Asian PaintsBranding Strategy

PAINTERS:-JAYSHANKARAN S. IYER

SAGAR S. LAHOTI

LEENA S. JADHAV

NITIN C. DHADAGE

ROHAN V. CHAVAN

. . . KYUNKI HAR GHAR KUCH KEHTA HAI

SCENARIO OF INDIAN PAINT INDUSTRY

PAINT INDUSTRY BY VALUE

INTRODUCTION TO ASIAN PAINTS

“Asian Oil And Paints Company”. Started in 1942 in garage by four

entrepreneurs:

Champaklal Choksey,

Chimanlal Choksey,

Suryakant Dani and

Arvind Vakil. In 1967, it became 10th largest company in

world.

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.”

BRANDING OF COMPANY IMAGE

In 1954, Asian Paints asked the famous cartoonist R.K. Laxman to create a mascot for the company, and from his pen was born – Gattu, which emerged as one of India's most memorable mascots.

Brand focused mainly on mass and rural market.

GATTU- THE COMMON MAN’S MASCOT

NEED FOR CHANGE

Is the common man important? Frankly, I think we don't need a mascot anymore."

-Rajiv Kumar Garodia, Advertising Manager, Asian Paints in July 2002.

"We want the logo and the packaging to reflect the new mood we are trying to move the brand towards."

-K.B.S. Anand, Head, Vice-President, Sales & Marketing, Asian Paints in September

NEED FOR CHANGE

Although volume displayed leadership position, but share of mind for the brand was very low.

Industry was driven by channel driven promotions, building a brand at that time was" uncommon sense“.

During 1983, the company tried to reposition the brand as a premium brand.

The corporate campaign " Spectrum of Excellence" was aimed to increase the Salience of the brand in a quiet market.

In order to achieve its goal, it focused on three main areas –

Building the AP brand in terms of a new product portfolio.

Changing its logo and packaging. The new AP was expected to be even more customer-

friendly. Appointed Ogilvy & Mather (O&M) as their

advertising agent.

RESTRUCTURING OF THE BRAND

Consumer Research- “Paints are seen to rejuvenate and brighten up a gloomy place, and give room a more spacious look. Painting signifies festivity, life and plenitude.”

“Celebrate with Asian Paints” - thus evolved. It also created advertising that related to specific

festive occasions and also delivered regional empathy in country.

Asian Paints associated with festive events across the country.

BUILDING OF A NEW PRODUCT PORTFOLIO

THE CHANGING ENVIRONMENT

The consumer was changing. Festivals have less important in the overall scheme

of things. Too much clutter around the festival platform

reducing the uniqueness of the proposition. The painting itself becoming less seasonal.

STRATEGY

Disposable Income. Urbanization. Standard of Living. Increase in GDP.

Being the best performer in its industry, Asian

Paints is in a good position to reap benefits of the growing economy.

EMPHASIS ON PACKAGING AND PRICING

Product at every price point

Premium- ‘OPAL’ - the premium wood

finish launched all across theCountryRoyale Luxury EmulsionEconomy- ‘Utsav’ Enamel ‘Utsav’ Acrylic Distemper Tractor Gold ‘Ace’ : Economy Emulsion

Exterior paint

AGGRESIVE ADVERTISING

MARKETING, SALES & DISTRIBUTION

Rural Marketing Initiatives since 1960. Distribution is one of the main strategy of Asian

Paints. Advertising & Promotional Expenditure started

in 1980s. Advertising Methods-Radio, TVCs, Print,

Internet, OOH, POP, Retail Outlets, Seminars, Workshops.

Promotional Expenditure grew from 15% in 2003 to 21% in 2008.

CUSTOMER-FRIENDLY & SERVICE ORIENTED

Help Line-

Asian Paints ‘Helpline’ launched in 16 cities. Receives an enthusiastic response. The information powerhouse to the consumer. A step to bring the consumer closer to the

Company. 90 % of the calls are converted to sales. Adds further value to the Corporate Brand.

Home Solutions-

Asian Paints Home Solutions launched in Hyderabad.

‘Painting your home’ for you. Asian Paints new website provides greater

interactivity with the user. Painting solutions provided to the user. Online officer to answer all queries.

CUSTOMER-FRIENDLY & SERVICE ORIENTED

IT INITIATIVES

Revamp of Existing Transaction Systems. Implementation of ERP (SAP R/3 and Business

Warehouse) for improved financial reporting and analysis.

To complement the SCM solution from i2 Technologies.

Revamp of communication network. Connectivity using terrestrial and satellite media

to all 86 locations of the company within India.

MERGERS & ACQUISITIONS

Buys Taubmans Paints (Fiji) In September 2003.

Acquires ICI India’s Unit (February 2007).

Sells stake in Australian Unit (June 2007).

EXPANDING INTERNATIONAL OPERATIONS

Caribbean Islands

Barbados, Jamaica, Trinidad & Tobago.

South Pacific

Fiji, Tonga, Vanuatu, Solomon &

Samoa Islands.

South Asia

Bangladesh, Nepal & Sri Lanka.

South East Asia

China, Malaysia, Singapore & Thailand.

Middle East

Bahrain, Egypt,Oman &

United Arab Emirates.

ASIAN PAINTS-TODAY

India’s largest paint

company with

market capital of14,000 cr

Asia’s third

largest paint

company and

leader in 11

countries.

Operates in 21

countries with 29

paint mfg. facilities

with capacity of 420 mn. Lts/annu

m.

COMPETITORS

Asian paints

37%

Good

lass

Nerolac 1

5.9

%

Shalimar

4%

Berge

r Pa

ints

13.8

%Market Share in India

FINANCIAL ANALYSIS

2003-04 2004-05 2005-06 2006-07 2007-080

500

1000

1500

2000

2500

3000

3500

4000

4500

2025.9

2338.8

2777.4

3360.7

4059.9Gross Sales Rs. In cr...

NET SALES

MARKET CAPITALISATION

FUTURE OF THE COMPANY

Asian Paints is planning to increase the capacity by setting up a plant at Rohtak, Haryana.

No other company is planning to increase its capacity in the near future, this will give Asian Paints a competitive advantage in terms of pricing.

GDP growth slowdown in the growth rate of two important activities i.e. repaint activity and construction activity will have direct impact on the volume of AP, thus effecting its profitability and margins.

Rural markets have considerable potential. Companies that

can establish a dealer network in these markets are likely to get the edge in positing above par growth rates over the next few years.

As setting up distribution infrastructure is expensive, it would mean that the competition is limited to the top players.

Due to substantial hike in raw material prices, Asian Paints has raised the prices of solvent based paints, thus demand would be affected to some extent.

THANK YOU