Industrial Marketing Project

7/31/2019 Industrial Marketing Project

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Tolani Institute Of Management Studies, Adipur

A

PROJECT REPORT

OF

INDUSTRIAL MARKETING

ON

PAINTS INDUSTRY


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These are our group member names:

JAY PUJARA(11060)

KAUSHIK SANGHANI (11069)

HARDIK RAJGOR(11061)

DEVENDRA RANA(11064)

AJAY VAGHASIYA(11090)

BHAVIN VARA (11094)


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ASIAN PAINTS

Product

Product Name: Asian Paints PU Exterior Matt

Description:Asian Paints PU Exterior is a two component Polyurethane wood

finish. It has a Clear-Matt finish. Asian paints PU Exterior provides excellent

weather resistance, light fastness & preserves natural beauty of wood on

exteriors for years

Cost Range: Premium

Finish: Clear-High Gloss

Availability: Across all Colour World Dealers.

Products information sheet

Product Name: Asian Paints PU Interior Glossy

Description: Asian Paints PU Interior Glossy is a two component Polyurethane

wood finish.it forms a tough coating that offers excellent resistance to scratches

& stains. It has a unique non-yellowing property that accentuates the natural

beauty of wood & keeps the furniture looking good for years.

Cost Range: Premium

Finish: Clear-High Gloss



Product Name: Asian Paints PU Interior Matt
http://www.asianpaints.com/pdf/product_pis/PU%20EXTERIOR.pdfhttp://www.asianpaints.com/pdf/product_pis/PU%20INTERIORS.pdfhttp://www.asianpaints.com/pdf/product_pis/PU%20INTERIORS.pdfhttp://www.asianpaints.com/pdf/product_pis/PU%20EXTERIOR.pdf


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Description:Asian Paints PU Interior Matt is a two component Polyurethane wood

finish.it forms a tough coating that offers excellent resistance to scratches &

stains. It has a unique non-yellowing property that accentuates the natural beauty

of wood & keeps the furniture looking good for years.

Cost Range: PremiumFinish: Clear-Matt



Product Name: Asian Paints Melamyne GlossyDescription: Asian Paints Melamyne Glossy is an acid curing solvent based 2 pack

wood finishes. It is specifically formulated as a protective & decorative clear

coating of wood .It protects the Interior wood for many years. It has got excellent

resistance to staining from oils, foods & hot beverages.

Cost Range: Mid-Range

Finish: Clear-Glossy



Product Name: Asian Paints Melamyne Matt

Description:Asian Paints Melamyne Matt is an acid curing solvent based 2 pack

wood finish. It is specifically formulated as an protective & decorative clear

coating of wood .It protects the Interior wood for many years. It has got excellent

resistance to staining from oils, foods & hot beverages.Cost Range: Mid-Range

Finish: Clear-Matt


http://www.asianpaints.com/pdf/product_pis/PU%20INTERIORS.pdfhttp://www.asianpaints.com/pdf/product_pis/Melamyne%20PIS.pdfhttp://www.asianpaints.com/pdf/product_pis/Melamyne%20PIS.pdfhttp://www.asianpaints.com/pdf/product_pis/Melamyne%20PIS.pdfhttp://www.asianpaints.com/pdf/product_pis/Melamyne%20PIS.pdfhttp://www.asianpaints.com/pdf/product_pis/PU%20INTERIORS.pdf


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Product Name: Asian Paints Melamyne Gold Clear Glossy

Description: Asian Paints Melamyne Gold Clear Glossy is an acid cured solvent

based 2 pack wood finish. It imparts a clear finish. It not only protects the wood

but retains the natural look for years. It has good hardness & has excellent

resistance to staining form oils, food & hot beverages.


Finish: Clear-Glossy

Availability: Available in select Markets


Product Name: Asian Paints Touchwood - Glossy Description:Asian Paints Touchwood Interior-Gloss is a single pack

Polyurethane modified wood finish. It is a brush able clear wood finish. It

enhances the natural look of wood and offers good resistance to normalwear and tear. It is also available in matt variant.

Cost Range: Economy Finish: Clear-Glossy Availability: Across all Colour World Dealers.

Product Name: Asian Paints Apex Ultima

Description:Asian Paints Apex Ultima Advanced Anti Algal Weather ProofEmulsion is a water-based, modified acrylic, anti-algal, high performance exterior

wall finish. It incorporates the latest state-of-the-art technology to provide long-

lasting exterior performance even in the most extreme tropical conditions of

India. Its unique advanced anti algal chemistry ensures that exterior walls are

provided with power-packed resistance against algae and fungi growth. It has very

good dirt pick up resistance and dirt cleaning properties
http://www.asianpaints.com/pdf/product_pis/MGCfront.pdfhttp://www.asianpaints.com/pdf/product_pis/MGCfront.pdf


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Cost Range: Premium

Finish: Rich Sheen

Availability: Across all Color World Dealers.

Products information sheet Available color shades

Product Name: Asian Paints Apex

Description: Apex Weatherproof Exterior Emulsion is a water-based 100% acrylic,

exterior wall finish. A high performance, long-lasting exterior paint specially

formulated to withstand extreme tropical conditions of high rainfall, humidity and

heat, Apex provides excellent resistance against the growth of algae and fungi on

the walls. It offers excellent protection against alkali and UV degradation too.


Finish: Sheen

Availability: Across all Color World Dealers.

Products information sheet Available color shades

Product Name: Asian Paints Dura cast Fine Tex

Description:Asian Paints Dura cast Fine Tex is 100% acrylicd water based exterior

product specially designed as an intermediate coating. It facilitates excellent

adhesion of subsequent coats .Its unique texture pattern has distinctive appeal.

1.Asian Paint Dura cast Fine Tex is a roll able product which will provide opacity in

single coat without any sagging 2.It serves as an undercoat which will not only

provide protection but also decor for a variety of exterior & interior surfaces 3.It

promotes adhesion of subsequent coats 3.It hides surface undulation & fine

cracks

Cost Range: Premium

Finish: Fine texture

Availability: Select Markets

http://www.asianpaints.com/pdf/product_pis/APEX%20ULTIMA%20PIS_FRONT.pdfhttp://www.asianpaints.com/world_of_colours/colour_spectra.aspx?productcode=0068&productname=Asian%20Paints%20Apex%20Ultimahttp://www.asianpaints.com/pdf/product_pis/APEX%20FRONT.pdfhttp://www.asianpaints.com/world_of_colours/colour_spectra.aspx?productcode=0012&productname=Asian%20Paints%20Apexhttp://www.asianpaints.com/pdf/product_pis/DURACAST%20FINETEX%20FRONT.pdfhttp://www.asianpaints.com/pdf/product_pis/DURACAST%20FINETEX%20FRONT.pdfhttp://www.asianpaints.com/world_of_colours/colour_spectra.aspx?productcode=0012&productname=Asian%20Paints%20Apexhttp://www.asianpaints.com/pdf/product_pis/APEX%20FRONT.pdfhttp://www.asianpaints.com/world_of_colours/colour_spectra.aspx?productcode=0068&productname=Asian%20Paints%20Apex%20Ultimahttp://www.asianpaints.com/pdf/product_pis/APEX%20ULTIMA%20PIS_FRONT.pdf


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Product Name: Asian Paints Apex Dholpur Tex

Description:

Cost Range: Premium

Finish: Dholpur Stone Finish

Availability: Available through Asian Paints Project Sales Only.


Product Name: Asian Paints Dura castSwirltex

Description:

Cost Range: Premium

Finish: Rich Sheen



Product Name: Asian Paints Apex Stretch

Description: Asian Paints Apex Stretch Water Repellent Exterior Paint is a 100%

acrylic, water-based hi-performance long-lasting exterior wall finish. This has an in

built elasticity (Stretches more than 150% of its original size) which with adequate

dry film thickness can bridge hairline cracks in the plaster up to 0.5mm. Due tothe compactness Apex Stretch resists penetration of water caused by wind driven

rain and is coupled with excellent anti-algal and anti-fungal properties.

Cost Range: Premium

Finish: Rich Sheen

Availability: Available through Asian Paints Project Sales Only.

Industry and Company Analysis
http://www.asianpaints.com/pdf/product_pis/PIS_Apex%20Duracast%20Dholpurtex.pdfhttp://www.asianpaints.com/pdf/product_pis/PIS_Apex%20Duracast%20Swirltex.pdfhttp://www.asianpaints.com/pdf/product_pis/PIS_Apex%20Duracast%20Swirltex.pdfhttp://www.asianpaints.com/pdf/product_pis/PIS_Apex%20Duracast%20Dholpurtex.pdf


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The Indian Paints Industry

The Indian paints industry is valued at Rs. 66 billion with current demand

estimated at

650,000 tons per annum. The organized sector accounts for 70% of the sales in

India.The Indian paints industry is broadly split as follows:-

1) Decorative Paints (70%)

2) Industrial Paints (30%)

Asian Paints is the overall market leader with 44% market share. Nerolac is the

leader in

The industrial paints sector and overall No. 2 with 20% share. Berger Paints and

ICI Paints

Are the other major competitors.

SWOT Analysis:

Strength:

Market Leader with 55% Market Share. Strong in inventory control. Brand name has a 68 years experience. The prices strategy is oriented to middle & lower end Consumes.

Weakness:

Innovation in developing new product is inadequate. In Industrial Paints, Apex Paint has only 15% Market Share. Technology front in Industrial Paints.

Opportunities:

Competitors have gone in for Hi- technology compare to Apex Paint. Increasing market share in Industrial Paint sector.

Threats:

Domination of few foreign companies.


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Market, Business and Consumer

Market Share

ICI-11%

BERGER-17%

NEROLEC-17%

ASIAN PAINT-55%

11%

17%

17%

55%

Chart TitleICI BERGER NEROLEC ASIAN PAINT


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Product Strategy

Product Level:

1. Basic Product :The basic need for paint is to protect the wall from cracks, leaks, make it look

clean, make a proper ambience etc.

2. Expected Product :Decorative or Industrial paints further more like multi choice colors, oil

based, Mat Finish, distemper, primer, wall paint, floor paint, metal paint,wood finish, powder coating, fresh coat etc. This level fulfills customers

request & their need.

3.Augmented Product :Paint should be of acrylic type, washable, sunlight protected, leaks proof, long

lasting chemical base so it dries fast, polished etc.

4.Potential Product :Here the customer future requirement is judge & tries to give any such kind

of product so we can say a kind of Mass customization product. Some

example can be like getting paints which are pearl kind shining, reflective,

mirror view color etc.

Product Mix:

Width of Product Mix:

APLs product mix has a width of3 major Product Lines:

Decorative Paints


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Industrial Paints Chemicals

Length & Depth of Product Mix:

APLs product mix has a length of

Decorative Paintso Interior wall paints

Distempers (4) Emulsions (4) Enamels

o Exterior wall paints (9)o Metal finishes(4)o Wood finishes(10)

Industrial paintso Protective coatingso Floor coatingso Road markingso Powder coatingso Automotive paints

Chemicalso Phthalic Anhydrideo Penraerythritol


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Product classification:

Durability and Tangibility

> Durable:

This good is one type of tangible goods. If we use this paint for a

single time, it runs long time.

Consumer Goods classification

> Shopping Goods:

In shopping goods Asian paint is Homogeneous shopping goods

because all the product of the Asian paint is same in quality but different in

prices.

Industrial goods Classification

> Supplies and business services

In this Asian paint follows Maintenance and repair services.


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Price Strategy

A Price Mix includes the following:

Pricing Strategy Price List Discounts and Allowances Payment Period Credit Terms

At APL:

Company follows the principle providing the customer different kind of products

and different price.

The cost of the produce of Asian paint varies according different income level of

the consumer.

The product that is supplied to the rural real has low price range. Whereas in the urban sector some of the high price product circulates.

In Decorative Segment:

ROYALS, EMULSION High Income Group &(Rs.250-400) Middle Income Group

UTSAV, TRACTOR EMLSION - Lower Income Group(Rs.40-100)


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In Industrial Segment:

ALL PRODUCTS Premium Price

Factors Affecting its Pricing Strategy:

Prices Of Raw Materials Import Policies Global Crude Policies Govt. Policies Packaging Cost

PRICE RANGE

The various products and its price ranges are as follows:

PRODUCT PRICE RANGE

Asian Paints Apex

Price of 20 lts. Range from

Rs.3142.00 3328.00

Asian Paints AcePrice of 20 lts. Ranges from

Rs.1761.00 Rs. 2059.00


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Asian Paints Tractor EmulsionPrice of 20 lts. Ranges from

Rs.1435.00 Rs. 2047.00

Asian Paints Super Decoplast Plastic

Emulsion Paints

Price of 20 Ltd. ranges from

Rs.2239.00 Rs.2544.00

Asian Paints Interior Wall Finish

Matt (White)Price of 20 lts. Is Rs. 2244.00

Asian Paints Interior Wall Finish

Luster (White) Price of 20 lts. Is Rs.2311.00

Product Price range

Asian Paints Tractor Synthetic

DistemperIts price ranges from Rs.690 to 757

Wall Finishes It range from Rs.4638- Rs,4975

Asian Paints RoyaleThe price for 20 lts. Ranges from

Rs.4638- Rs.4975.

Asian Paints Premium EmulsionRange of 20 lts of this product

ranges from Rs.2648-Rs.3118

Enamels

Asian Paints Apcoute Premium Gloss For 20 lts the range varies from


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Enamel Rs.2068 to Rs.2350.

Asian Paints Gattu Synthetic EnamelFor 20 lts the range varies from Rs.

1458 to Rs.1836

Asian Paints Utsav EnamelFor 20 lts the range varies from

Rs.1425 to Rs.1652.

Stainer, Aluminium Paints & Others

Stainers

Apcolite Universal Stainers

For per bottle in plastic bottle of

200ml the price ranges from Rs.41-

Rs.77.

UtsavStainerFor per bottle in plastic bottle of 20

ml its price is Rs.34.

Asian Paints Wood Stains

For per bottle in plastic bottle of 5

lts the range varies from Rs.1000-

Rs.1250.

Aluminum Paints (Asian paints 3

mangoes Aluminum)For 20 lts its price is Rs.2593


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Supply Chain Strategy


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Promotion Strategy


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AT APL:

Asian paint follows good promotional strategy regarding their sales of the

product. Their promotional strategies are made looking at the different category

of the product and price associated with it.

In urban areas Asian paint established colour world where the customer can enjoy

the taste real colour while in rural sector it follow sales demonstration

programme along with van displaying the product of Asian paint in the rural

market.

The Promotional Mix of the company consists of:

Advertising Public Relations Sales Promotion External Communication Events and Exhibitions

PROMOTIONAL MIX ASIAN PAINTS

Advertisement33%

Sales promotion45%


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MEDIA OF ADVERTISEMENT:

Newspapers

Magazines Television Direct Mail Outdoor Brouchers InternetAT APL:

Asian Paints advertising has created brand awareness, highlighted what the

brand has to offer and has consistently brought all of it top-of-the-mind for the

customer The ads are a reflection of the fact that people are a lot more involved

in doing up their homes now.

Asian Paints has had several memorable advertising campaigns

The colourful, almost lyrical Hargharkuchkehtahai... campaign, which waslaun, is essentially about the relationship people have with their homes.

One of their most successful campaigns has been the merawala green. Ithas a very subtle way of telling the people that all possible colors in all

possible shades are available with them.


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Latest TV Ads


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PRINT ADS:


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At APL:

Asian paint uses it sale promotion as key ingredient in its marketing campaign. It

consists of various incentive designed to stimulate faster or greater purchase oftheir products.

Sales promotion can broadly be divided into two categories:

1) Customer Promotion this section includes all the sales promotion activitiesdirected towards the customers.

Coupons - The Company gives coupons inside the paint pack so thatcould be taken by the customer as a gift from the company.

Gifts -There are a number of gifts and schemes on the larger packs.Free gifts are offered on packs of more than 10 kgs.

Schemes - The Company comes out with many different sales promotionschemes during the festival season, especially the DurgaPooja festival

in Orissa and West Bengal.

Samples - Asian Paints Samplers of 200 ml paint packs in a range ofshades that are available through an Asian Paints Colour World outlet

are provided as samples


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2) Trade PromotionAs part of the companys policy, huge emphasis is given on

trade promotion. The dealers and contractors who are a part of the distribution

chain are given special attention. The company comes up with several incentive

schemes for the dealers.

Discount the company gives certain amount of discount to thedealer if he increases the sales of the company product.

Trade show the company always open its stall in the Industry trade sothat it products would be promoted globally.

Others -The most popular schemes include cash discounts, foreign trips,and gifts.


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NEROLAC PAINTS

COMPANY PROFILE:

BACKGROUND:

GNPL was established in 1920, by Tata stable in collaboration with Goodlass of

UK, apart of the Cooksons group. The Tatas had a 40% stake in the Company;

through group company Forbes Gokak Ltd. In 1983, the Company entered into a

technical cum financial collaboration with Kansai Paints , Japan , Kansai who

currently has a stake of 40% is the other major shareholder .Manufacturing

activities began with the establishment of a paints unit at Parel in 1920. In 1971

another plant was established pigments, one of the major ingredients ion paints

manufacture pigments, one of the major ingredients in paints manufacture

pigments, one of the major ingredients in paint manufacture. In FY92, the

company made a right issue, for par funding its new Kanpur plant, which was

commissioned in August 93 .Last year Kansai bought over the stake of Tatas ,thus making GNPL its subsidiary.

GNPL , The Indian arm of Jap[[an based Kansai paints , is one of the leading

players in the Indian paints market with presence in decorative paints as well as

industrial paints , coatings , varnishes , enamels etc. it is the domestic leader in

industrial paints and has virtually half of the auto paints marker.

Paints sector can be segment as decorative paints and industrial paints. Whileboth are characterized by low capital costs and high working capital, industrial

paints require special technology. Capacities are normally set up close to markets,

so as to be able to offer a multitude of shades and colors to customers. Brand


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building and dealer network act as effective entry barriers. Demand is seasonal in

nature low during monsoon, high during festive seasons.

Domestic pains sector, dominated by decorative paints (70%) , is expected to

undergo a structural shift towards industrial paints , as cross-border tie-ups in

industrial are becoming order of the day. Most organized sector players are

established with well- entrenched distribution network and established brands.

Threat of global competition is minimal .The under developer industrial paints

market holds maximum growth potential albeit on a lower base .In future the

industry will witness brand competition, product innovations and superior

distribution networks.

GNPL management has been focused on paints business in the lat three decades

.GNP has a network of 10700 dealers &550 computerized color-dispensing

machines. With multi location manufacturing facilities helping it to have a very

wide geographic reach, it has an enviable leadership in Automotive OEM.

GNPLs prospects are inextricable linked to those of the user sectors in

automobiles and other industrial sectors .The two subsidiary companies primarily

manufacture paints & enamels for parent company on contract basis .GNPL has

set a target for to achieve a sales turnover of Rs 12bn and a market share of 25%

2002-03


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Product
http://www.nerolac.com/product-details?id=1075http://www.nerolac.com/product-details?id=1076http://www.nerolac.com/product-details?id=1075http://www.nerolac.com/product-details?id=1076


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http://www.nerolac.com/product-details?id=1079http://www.nerolac.com/product-details?id=1080http://www.nerolac.com/product-details?id=1081http://www.nerolac.com/product-details?id=1079http://www.nerolac.com/product-details?id=1080http://www.nerolac.com/product-details?id=1081http://www.nerolac.com/product-details?id=1079http://www.nerolac.com/product-details?id=1080http://www.nerolac.com/product-details?id=1081http://www.nerolac.com/product-details?id=1079http://www.nerolac.com/product-details?id=1080http://www.nerolac.com/product-details?id=1081


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Inte
http://www.nerolac.com/product-details?id=1089http://www.nerolac.com/product-details?id=1088http://www.nerolac.com/product-details?id=1087http://www.nerolac.com/product-details?id=1089http://www.nerolac.com/product-details?id=1088http://www.nerolac.com/product-details?id=1087http://www.nerolac.com/product-details?id=1089http://www.nerolac.com/product-details?id=1088http://www.nerolac.com/product-details?id=1087http://www.nerolac.com/product-details?id=1089http://www.nerolac.com/product-details?id=1088http://www.nerolac.com/product-details?id=1087http://www.nerolac.com/product-details?id=1089http://www.nerolac.com/product-details?id=1088http://www.nerolac.com/product-details?id=1087


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rior

Exterior

Woods

Metals
http://www.nerolac.com/products/decorative-wood-paintshttp://www.nerolac.com/products/decorative-exterior-paintshttp://www.nerolac.com/products/decorative-metal-paintshttp://www.nerolac.com/products/decorative-interior-paintshttp://www.nerolac.com/products/decorative-wood-paintshttp://www.nerolac.com/products/decorative-exterior-paintshttp://www.nerolac.com/products/decorative-metal-paintshttp://www.nerolac.com/products/decorative-interior-paintshttp://www.nerolac.com/products/decorative-wood-paintshttp://www.nerolac.com/products/decorative-exterior-paintshttp://www.nerolac.com/products/decorative-metal-paintshttp://www.nerolac.com/products/decorative-interior-paintshttp://www.nerolac.com/products/decorative-wood-paintshttp://www.nerolac.com/products/decorative-exterior-paintshttp://www.nerolac.com/products/decorative-metal-paintshttp://www.nerolac.com/products/decorative-interior-paints


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Industry and Company Analysis

Kansai Nerolac Paints was at first known as GoodlassNerolac Paints. The

Kansai Nerolac Paints Ltd produces various kinds of products that range fromindustrial sophisticated coatings for the industries to architectural coatings for

hospitals, homes, and offices.

Kansai Nerolac Paints Company has manufacturing units situated in Vatva,

LoteParshuram, Jainpur, Bawal, and Perungudi. The total production capacity of

the plants of the company is around 161,100 TPA and all the plants are

technologically advanced and comparable to most state-of-the-art plants in the

world. Kansai Nerolac Paints has a very wide network of more than 11,000 dealers

spread all over the country.

Kansai Nerolac Paints is a market leader in the sector of automotive

segment where it supplies more than 90% of the required original equipment.

Kansai Nerolac Paints is the 2nd biggest company in the coating sector in India

where it has more than a 20% market share. The company has entered into

collaboration with OshimaKogya Company, Japan and E.I. Du-Pont de Nemours &

Company Inc., USA for the manufacture of various innovative items and a brand

new product line.

The total income of the Kansai Nerolac Paints Company amounted to ` 2732.9

million in 2005-2006 which shot up to ` 3270 million by 2006-2007. The net profit

of the company amounted to ` 271.00 million in 2005-2006 and the next year the

net profit of the company increased to ` 324.7 million. Kansai Nerolac Paints Ltd.

is planning to expand by setting up a paint facility at Hosur with an investment of

around ` 690 million.


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Latest Financial Figures (Figures in Rs. Crores)

ET 500 Rank(2011) 299

Industry Paints/Varnishes

Turnover 2162.19

Profit after Tax(PAT) 205.98

MCAP (Market Capitalization) 4549.15

Assets 998.65

Kansai Nerolac Paints prides itself on its organizational strengths such as its

values, vision, R&D, experience, strategic alliances, marketing skills, and its

extensive distribution network. The various plants of Kansai Nerolac Paints have

been certified by agencies such as BVQI and Intertek, ISO 14000, ISO 9000 2000,

OHSAS 18000 are just some of the certifications that Kansai Nerolac Paints has

received for its efficiencies in work processes and standards.

Kansai Nerolac Paints has become one of the topmost companies in the coatingsector in India due to its quality of products which are the best in the market. The

company has a presence in several Indian states such as West Bengal, Assam,

Gujarat, Haryana, U.P, M.P, and Maharashtra. Kansai Nerolac Paints is headed by

Mr. Jamshed J. Irani who is the chairman of the company. Mr.

HarishchandraBharukha is the managing director of Kansai Nerolac Paints which

employs more than 2000 people.


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Market Share

The paint industry worldwide is classified into 2 segments viz. decorative

and industrial segment in India constitutes nearly 70% of the market

whereas the scenario is just the reverse in the developed countries.

Decorative Segment is dominated by the unorganized sector which now

accounts for 70% of the total paint production as against 75% three to

four ago. The unorganized sector has an advantage over the organized

sector since it is fully exempted from the 20% excise duty and other

government levies. In the organized sector Asian is the market share of

31% followed by GoodlassNerolac with a share of 16%

Latest Developments: New foreign equity is getting highly attractedin this sector. Kansai Paints acquired controlling interest in

GoodlassNerolac - the second largest Indian paint company. There

are talks about other companies also being taken over by foreign

companies. Some foreign companies have actually opened shops in

India


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Organized Sector Market Shares Value:

Asian Paints 37%

GoodlassNerolac 15.9%

Berger Paints 13.8%

ICI 11%

Jenson & Nicholson 5.7%

Shalimar 4%

Others 12%


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Sector wise contribution:

Architectural 70%

Industrial 30%

Industrial Composition

14%

42%14%

8%

8%

8% 6%

Asian Paints Goodlass Nerolac Berger Paints

ICI Jenson & Nicholson Shalimar

Others

Architectural Segment

37%

13%11%8%

6%

6%

19%

Asian Paints Goodlass Nerolac Berger PaintsICI Jenson & Nicholson Shalimar

Others

Paint Market Of India

37%

16%14%

11%

6%

4% 12%

Asian Paints Goodlass Nerolac Berger Paints

ICI Jenson & Nicholson Shalimar

Others


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Product Strategy

The Rs 480 croreGoodlassNerolac became the last of the big pain major to

jump into the instant shades market with the launch of Nerolaccolour scape, an

integrated colour matching system designed to be a one-stop colour shop.

Colour Scape were launched across India by April of year 1998 , initiated by

Jenson & Nicholsons Instacolor in the late 1996 , followed by Berger Paints

colour Bank and ICIs Colour solutions , tinting machines have become the

marketing stunt for all paint majors.

Nerolacs move foloes soon after Asian Paints launched Color world . Asian Paints

launched Colour world earlier in January in the same year .NerolacColour Scape

was launched by establishing what the company calls in the NerolacColourClub ,

an interactive platform aimed at benefiting both the dealers and the company as

soon as the dealer opts to set a Colour Scape shop, he will become a member of

the NerolacColour Club.

Colour Scape costs the dealer Rs 5.95 lacs , compared with Asian Paints Colour

World which costs 6.5 lakh and Jenson and Nicholson s Rs 8 lakh.

Dealers have the benefit to avail it through several installment schemes with a

down payment of minimum of Rs 1 lakh. The company was aware that such

projects had proved expensive for companies like J&N, and will restrain its

marketing efforts to potentially viable market. Hence, it did not set itself an

installation target. Though initial responses from the dealers in Mumbai were

encouraging, they did not offer it indiscriminately to every dealer who opted for

it, and instead strategically placed these kind of shops in accordance with the

location and the quantam of sales of the particular dealer. Both these aspects , in


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addition with some other minor aspects like the potential of the location , even if

the sales at that point of time were not up to the mark, were given their due

importance.

ColourScape , however , is nor just a colour dispensing machine , it has several

added features by which the company expects to change the way paints are sold

in this county. While the customer will have access to over 1.05 shades and can

see how their rooms will look with the help of a visualisersystem , the dealer will

be able to tip them on the variety of paints , This can prove to be a major

marketing strategy for the Nerolac paints , considering the fact that Paints

purchase is more of purchases which comes under the category of emotional

purchases and customers are not very particular about the color and the type . So

, this kind of strategy at the point of purchase convinces the customer to become

a consumer by enabling him to see exactly what his dram home will look like after

the painting .

The number two paint manufacture GooldlassNerolac Paints (GNPL) has not

seen the semblance of a bull in the last two years .Even when the Sensex has risen

25 per cent since May 1999 ,GNPL has emained range bound between Rs 140

and Rs 160 .In terms of discounting the scrip trades at a price-earning ratio of 10.1

against Asian paints 17.1. The bullishness for GNPL stems from the fact hat its

major presence is in industrial paints , especially automotive paints, and it hopes

the they will bring good times to it.

The growth of the paints industry is directly linked to the GDP and the industrial

paints segment is linked to the automobile sector .The industrial paints segment

account for 30 per cent of the Rs 2700 crore organized market. Industrial paints

are technologically intensive but GNPL is well positioned due to its Japanese


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technical collaborators Kansai and Nihon Tokushu Toryo. Kansai also hold a 36 per

cent stake in stake in GNPL while Forbes Gokak, a Tata company has a 30 Per cent

stake.

The company has three manufacturing facilities at parel in Mumbai , Kanpur in

Uttar Pradesh and LoteParshuram is Maharashtra .GNPL manufactures paints ,

varnishes and synthetic enamels and pigments .The company has been conscious

enough to maintain a strong product profile through regular brand launches . Its

brand are Nerolac, Excel, Llscapes and Pearl .It spends nearly Rs9-10crore a year

on advertising and sales promotion and this has helped it to expand its presence

in the decorative segment also, besides being a leader in the industrial segment.

GNPL is the number one player in industrial paints with a 43 per cent share , far

ahead of Asian Paints at 15-17 per cent and ICI with 9 per cent .It account for 90

per cent of Marutis requirement which in turn contributes 8-10 per cent to the

GNPL turnover .Maruti sales have risen 17.2 per cent for quarter AprilJune 1999

and in June itself .They were up 27 per cent over previous month .Apart from

automobiles the white good industrial paints . This industry is also expected to do

well with the economy.

GNPL has also signed agreements with Mitsubishi Honda and Telco Indica .With

the entry of new players , GNPL s pos itions will be consolidated .GNPL has also

enter into a strategic tie-up with Dupont o US for the OEM segment to cater to

the Us car manufacturers in India .This should give GNPL an added advantage to

combat Asian PaintsPPG(50:50) in the industrial paints segment .

Despite being a late entrant in the decorative segment, GNPL: has become the

number two player in three years. Nearly 50 per cent of sales comes from


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decorative and the company has been an aggressive advertiser. Paints demand

from the housing sector will also o\improve with the economy.

Though the paint industry is raw material and working capital intensive ,GNPL is

strongly positioned with neatly Rs 40 crore plus in the form of investments and

cash .Besides an expanded capacity and a strong domestic network coupled with

a recovery in demand entails a good future .GNPL was not able to appreciate in

this bull run while Asian Paints drastically rebounded to Rs 363 from Rs 197 in

may 1999! Second rung paint stock should see a bull run led by GoodlassNerolac .

GoodlassNerolac , now a subsidiary of Kansa Paint of Japan is going for a brand

consolidation strategy and reduce the number of brand to 6-7 from its portfolio of

17 .

Senior company officials say the brands that would be retained are Alscapes

.Nerolac ,Excell , suraksha , Cloudscapes and Goodygold .

The company is also planning an aggressive foray into the rural market with its

brand Good- Gold .This will be a relatively cheaper and afforded brand as

compared to the other brand . Rural market in India has a hug potential which is

yet to be tapped , company officials said.

GoodllassNerolac is also looking also growing through the acquisition route, but

the exact plans cannot be ascertained due to obvious reasons. We have kept our

doors open for that possibility, was the only reply that came from the senior

official that was visited.

GoodlassNerolac, has, as already stated, three manufacturing units in the

Western region of the country and one each in the North and south. And, to

enhance their presence in the eastern region, the company will be concentrating

on indirect distribution channel.


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GoodlassNerolac, Which is the leading player in industrial paints, has decided to

increase, its focus on the decorative paints segment as well, where it trails Asian

Paints.

In the decorative paints segment, it has a share of 14 per cent and plans to

increase it to percent. Currently the company ranks second in the decorative

paints.

In order to grow in the decorative market the company in under taking other

initiative like increasing its advertisement budget from Rs 12 crores to Rs 18

crores.


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Inventory Management: Quantity and location of inventory including rawmaterials, work-in-process and finished goods.

Supply chain execution is managing and co ordinating the movement of materialsinformation and funds accross the supply chain. The flow is bi directional.
http://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Inventory


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Promotion Strategy

Nerolac launches new promotion scheme

Kansai Nerolac Paints Limited, one of the leading players in the Indian paint

industry has launched a new ad campaign for its new consumer promotionscheme. This scheme is to promote their premium brand Nerolac Impression 24

Carat in interior paint category and Nerolac Excel Total in exterior paint category in

Delhi, Punjab and Gujarat

This new ad is a print campaign supported by consumer scheme and has been

introduced to unify the benefits of the 2 brands ?Nerolac Impressions (interior

paints), that stands for trendsetting style &Nerolac Excel Total (exterior paints) that

gives homes total protection from heat, water &dust ?to create the platform of

style with substance, while highlighting the consumer offer.

The tagline ?Style that makes a lasting impression? elucidates long lasting benefitsof both the brands. Since the consumer scheme has been launched in Delhi, Punjab

& Gujarat the body copy of the ad is in Hindi & Gujarati.


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This year, the brand decided to make another high profile attempt using none

other than Shah Rukh Khan to endorse the brand. The brand is now running lot of

TVCs featuring the new celebrity ambassador.In a significant move the brand has repositioned itself. In tune with the global

positioning of its parent Kansai Paints, Nerolac also adopted the positioning based

on environment -friendly attribute. The new campaign positions Nerolac as a

healthy paint with no lead content and Eco-clean property. Shah Rukh sells this

idea through the TVCs

Watch the Ad here: Nerolac

So far Nerolac's major marketing issue was its inability to create a

meaningful differentiation from Asian Paints. While Asian Paints

established itself on the Color platform,Nerolac was confused about its

own strength. This was reflected in most of their campaigns. Although

the campaigns were well made, these ads did not reflect any image for

Nerolac. Now the brand seems to focus on the Environment FriendlyHealthy Paint as its core positioning platform.

The question is whether this positioning is important and meaningful for

the consumers. It is true that Indian consumers are aware of the harmful

effects of paint fumes. But this issue happens only during paining and

after the painting is done, the harmful effects are hardly noticed. So will
http://www.youtube.com/watch?v=ldxMvu-Uak8http://www.youtube.com/watch?v=ldxMvu-Uak8http://4.bp.blogspot.com/-sFoqQVdXgas/TZ7ptl1HteI/AAAAAAAAChE/ZHh7jptu_tE/s1600/img8.JPGhttp://www.youtube.com/watch?v=ldxMvu-Uak8


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a focus on the Healthy Paint attribute be considered a powerful

differentiator?

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