MARKETING MIX A COMPARATIVE STUDY
ASIAN PAINTS INDIA LTD (ROYAL) & TOTAL (ELF)
PREPARED BY: ABHIK TUSHAR DAS EXE-MBA-10 ROLL NO: 20104001
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TABLE OF CONTENTS:PAGE NOS S N O. 1 2 3 4 5 6 TOPIC NAME OF ORGANIZATION AREA OF BUSINESSVISION , SYNOPSIS , INDUSTRY PROFILING , HISTORY
APIL (ROYAL) 3 3 3-4 4,5 5 6-7
TOTAL (ELF) 12 12 12 13 14 14
MARKETING STRATEGIES , PRODUCT NEED ,COMPOSITION
PRODUCT MIX SITUATION ANALYSIS 1. 2. 3.INTERNAL CUSTOMER EXTERNAL
7 8 9 10 11 12 13 14
7-8 8 8-9 9 10 10 11 20 21
15 16 17 17 18 18 19
MARKETING GOALS & OBJECTIVES MARKETING STRATEGY (S-T-P ) PRODUCT STRATEGY PRICING STRATEGY DISTRIBUTION & SUPPLY-CHAIN STRATEGY CONCLUSIONS COMPARISON MATRIX INFERENCES
References:1. 2. 3. 4. 5. www.asianpaints.com www.total.co.in www.en.wikipedia.org www.google.co.in Strategic Marketing Ferrell and Hartline
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PROJECT: MARKETING STRATEGYName of the organization: Asian Paints India Ltd (APIL) Area of business: Paints (Decorative and refinish) Vision: To become one of the top-5 paint companies in the world by leveraging its expertise in the higher growth emerging markets. Simultaneously the company intends to build long term value in the industrial coating business through alliances with established global partners. Synopsis: Asian Paints is the largest paint company in India in terms of market share (30%) and turnover (INR 66.80 billion). It has operations in 17 countries in the world with 23 manufacturing facilities to complement its volume of sales. Through strategic mergers and acquisitions, it has subsidiaries like Berger International, SCIB Paints Egypt, Asian Paints, Apco Coatings and Taubmans. The Paint industry: The market size of the Indian paint industry is approximately INR 210 billion ( 0.32% of India GDP of 1.31 trillion USD ); growing at approximately 15% annually. The per-capita consumption (0.6%) of paints in India is a mere 0.5 kg as compared to 1.6kg in China, 4.0kg in South-East Asia and 22kg in developed economies around the world. The growth in the Indian real-estate (housing) sector has been a significant 35% annually and the Indian automobile sector grew by 15 20% annually being the major end-users of the Paint Industry (decorative and refinish). Decorative paints constitute a staggering 75% of t he paint market; hence the growth potential is enormous. History of the company: Promoters: Shri. C H Choksi, Shri. C N Choksi, Shri. S C Dani, Shri. A R Vakil Started as The Asian Oil and Paint Company in 1942. The Asian Paint mascot GATTU created in 1954.
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Transformed from a family based business to a professionally managed group in 1957. Emerges as Indias leading Paint Company in 1967.
Marketing strategies adopted: day. Why do we need to paint? Houses consist of walls which are made up of Steel reinforcements, bricks and cement. The very nature of our walls is porous in nature, thus allowing air and water to seep inside and come in contact with the reinforced steel structure. Cement is alkaline in nature and it reacts with c arbon-di-oxide in the air in the presence of moisture to form calcium carbonate which is more porous. This magnifies the intensity of the seepage and the ferrous content in the Mild Steel is slowly oxidized, a phenomenon commonly called as rusting. The rusted structure expands inside the cement layer resulting in flaking of the outside layer of the paint film. Paint film also prevents biocide and fungicide attacks. Paint also improves the aesthetics of a wall. Go where the customer is. Asian Paints colour world. Asian Paints Toll-free Helpline. A customer care helpline to connect customers and painters. Asian Paints Home Solutions A painting service in select cities. Asian Paints Colour-Next. A rich collection of shades. Kids World A customised painting design for kids room walls. Do-it-yourself. An online paint selector to help you visualize your walls. Surprise-your-spouse. A makeover of your walls by expert painters in one
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Composition of Paints: Pigment Binders Additives Stabilizers Solvent
Product mix in Decorative segment: Ancillaries: Wall primer ( Deco-prime) Wall putty Wood primer Wood finish: Clear finish (PU / Melamyne) Opaque finish (PU / Melamyne Palette) Enamels (Premium / Apcolite / Utsav) Metal surface: Premium semi-gloss enamel Apcolite Utsav
Exterior paints: Apex Apex stretch (water-resistant) Dura-cast (textured) Interior paints: Distempers (Tractor / Utsav) Emulsions (Royale / Premium / Tractor)
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Situation Analysis: a) Analysis of the internal environment: Market leader (30% market-share) Strong distribution network Manufacturing facilities across the country High visibility in the television and print media. Product ranges from low cost distempers to premium emulsions. Brand ambassador (Saif Ali Khan) to promote the premium brands as an extension to his personality. This is to convey the customer that painting of your house is not a necessity driven job rather it is an extension to your style quotient. The advertisement campaigns have also shifted focus from being purely benefit-driven to self-expression driven models. b) Analysis of the customer environment: Target market classified into; 1. New construction buildings where dealer discounts used for promotion as a B2B marketing strategy. 2. Repainting of existing homes involves easy availability and high visibility. 3. Target marketing for children involves the concept of Kids World. 4. House wives are in-charge of managing affairs at home have been targeted in the recently launched Surprise-your-spouse tagline. Research and development has yielded in different variants in paints, the latest being textured versions where aesthetics has an edge over protection. Socially in India, houses are only painted around the auspicious festival of Diwali; hence the peak sales are achieved only in the months of August September-October-November. The months for lean sales constitute of April-May-June-July. With disposable incomes on the rise and a house becoming a mark of ones affluence, people are willing to spend. It isnt about home rejuvenation anymore, paint has moved into the sacred domain of emotional rejuvenation.
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c) Analysis of the external environment: The organized paint market in India consists of players like Goodlass Nerolac, Berger Paints, ICI Dulux, Shalimar Paints and Jenson and Nicholson. Asian Paints, Goodlass Nerolac, Berger Paints and ICI Dulux focus on the upper income level market segment. Shalimar Paints, Jenson & Nicholson and Snowcem India target the middle income level market segment. The un-organized sector with a 35% market share taps the bottom income level of the customer pyramid. SWOT Analysis: Strengths: a) Market leader b) Strong distribution channel c) High visibility d) Wide range of SKUs Weaknesses: a) No foreign partner to bank upon on technology transfers / R&D initiatives. Opportunities: a) As the paint market is fragmented in the un-organized sector with a market-share of 35%, there exists huge potential for strong players like Asian Paints to capture the bottom end of the customer pyramid by mergers and acquisitions where volume of sales are high but profit margins are low. b) The nearest competitor for Asian Paints in terms of market share captures only 20% of the market. This provides AIPL with an opportunity to be aggressive in marketing without bothering about the competition.
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Threats: a) Worlds leading paint manufacturing company Akzo-Nobel recent takeover of ICI Paints which has an established brand known as Dulux, is a cause of concern for AIPL. b) Kansai (Japanese Paint Company) has entered into a JV with Nerolac Paints to form Kansai Nerolac Paints (KNPL). The entry of foreign players is seen as a threat to the AIPL market share.
Marketing goals and objectives: To grow the emulsion based volumes which have high profitability To achieve competitiveness in price differentials with competitors
per litre of paint sold, Royal brand of emulsion. through smaller SKU based approach and aggressive supply chain tightening. To reach the upper segment in Indian village and Tier-2/3 cities tap the emotional quotient of the customer especially his/her desire to project ones house as a style statement. It is noteworthy that the in Tier -2/3 cities people live in their own houses than flats which are predominant in the cities, and hence the ownership quotient in the rural market is significantly higher. To promote the product as a means to change the emotional appeal of the house and develop the concept similar to the one like NeighborsEnvy-Owners-Pride.
Marketing Strategy for Royal emulsions: Segmentation: The market for the premium royal is the urban population living in metro/ Tier-1 cities. The product is to be expanded to the niche markets like Tier-2/3 cities and villages. Targeting: Women are comparably more aesthetic oriented than males; hence to target a product at women can help form opinion leaders within the family.