The Marketing Strategy
of
SMP - 09
Contents
Asian Paints – Mission & Vision
Industry Trends
Historical Information & Current Performance
Competitive Positioning (SWOT)
Marketing Strategies, Channels & Promotions
Marketing Strategy & Promotion Excellence
Asian Paints – Vision & Mission
Vision
“See Indian homes painted in variety of colors from a truly Indian company” • Asian paints wants to become one of the top 5 decorative coating companies world wide by
leveraging expertise in the higher growth in emerging markets.
• Simultaneously, the company intends to build long term value in the industrial coating business through alliances with established global partners.
Mission
“To provide paints as per market demand, ensuring desired level & quality of customers (dealer service)”
Contents
Asian Paints – Mission & Vision
Industry Trends
Historical Information & Current Performance
Competitive Positioning (SWOT)
Marketing Strategies, Channels & Promotions
Marketing Strategy & Promotion Excellence
Paint Industry Trends at a Glance
Indian Paint Industry
Decorative Segment
70%
Premium Range
(high end acrylic emulsion)
Metros & Large Cities
Medium Range
(enamel paints)
Small Cities
Distemper Range
(Low end paints)
Sub Urban & Rural Area
Industrial Segment
30%
Automotive Sector
Consumer durables
(marine paints & other OEMs)
Contents
Asian Paints – Mission & Vision
Industry Trends
Historical Information & Current Performance
Competitive Positioning (SWOT)
Marketing Strategies, Channels & Promotions
Marketing Strategy & Promotion Excellence
Asian Paints – Current Position
India’s Largest & world’s 10th largest Paint Company
Asia’s 3rd largest company with a turn over of over Rs. 96.32 bn
Market share of about 45% of total paint industry
Operates in 17 countries with 24 mfg facilities
Servicing consumers in over 65 countries
Ranked ‘Best under a Billion companies in Asia’ in 2005, 2006 and 2007 by Forbes
87th valuable brand in India
Manufacturing Capacity and Volumes
Market Share of Major Players in India
53%
18%
20%
9%
Asian Paints
Kansai Nerolac
Berger
Others
International Presence
No. of Plants
12
1
3
5
3
Global Operations
Regions
1
2
3
4
5
Served International Markets
Distribution Channel
6 Divisions
90 Depots, 2500 SKUs, 27000 Retailers, 95000 Sub Retailers
2 Chemical Plants, 21 Manufacturing Centers, Operating in 17 countries, 6 Subsidiaries
4500 Employees, Servicing Consumers in 65 Countries
800 Raw Material Suppliers
350 Packing Material Vendors
Contents
Asian Paints – Mission & Vision
Industry Trends
Historical Information & Current Performance
Competitive Positioning (SWOT)
Marketing Strategies, Channels & Promotions
Marketing Strategy & Promotion Excellence
SWOT Analysis
Strength Market Leader @32%
Capacity Expansion Plans
Pricing Power
Manufactures PAN India
Wide Distribution Network
Weakness Industrial Business Performing Below Par
Hiccups in International Business ( struggling in Egypt & Bahrain)
International Presence restricted to small pockets
Opportunity
Growing Automobile Market
Increasing use of Industrial Paints
due to growing economy
Threats
Domination of Few Foreign Players
High-tech Instant Spot Fixing Color Automated Paint Blending in Retail Points
SWOT
Contents
Asian Paints – Mission & Vision
Industry Trends
Historical Information & Current Performance
Competitive Positioning (SWOT)
Marketing Strategy & Functional Excellence
Marketing Strategy & Promotion Excellence
BCG Matrix
Cash Cow Wall paints (Interior & Exterior Paints)
Decorative Paints
Star Metal/Industrial Paints
Wood Finishes (varnish & polish)
Question Mark
APIL Product launched in abroad through JV Fiji, Nepal, Solomon Island & Australia
Dogs
Marine Paints
Automotive Paints & other Black Board paints
BCG Matrix
Marketing Mix
Price Royal for Premium Segment
Apcolite for Middle Segment
Tractor & Utsav for lower Segment
Product/Quality Wall Paints
Metal Paints
Wood Finishes
Backward Integration
Pyridine Latex for Rubber Tyres
Price/Distribution
23 plants
90 Depots
2500 SKUs
28000 Retailers
Promotion/Advertisement
Warranty Scheme
50 ML Packs
Gattu
Saif Ali Khan for Premium Class
Badiya Hai Campaign (middle Class Households)
4Ps of Asian Paints
Strategies
Reach to Remotest Corner Focus on Smaller Towns Gattu Small Packs – Meeting Everybody’s need Close Relationship with Dealers – Business Partnership 1990 – Target by lowering prices (consumers are brand conscious and involved) Change of Logo – Fresh & Rejuvenated Look O&M Strategy – Every Home has a story Vertical Integration 1998 – Shade Card, One Stop Color Machine, Exclusive showroom in Mumbai 2004 – Positioned as Umbrella Brand 2007 – Tie Up with IIT Horizontal Integration for rubber tyre Early 200 – Direct Link with Customers Covers all segments Discount to attract retailers, Professional Painting Service Ads create social, psychological and emotional connect with customers
Margins Strategy
Growth Strategy
International Market Strategy
To enter the high – growth emerging markets Adopt a regional hub approach to international operations Apply the emerging market business model : - Introduce new products suited to local needs - Introduce new technology, accordingly - Focus to improve all areas of Operations, especially supply chain
Elements of Supply Chain
Dealer Network & Reach
Reuse
Recycle
Eliminate Waste
Environment and Safety
Information Technology
& Customer Relation Management (CRM)
Leveraging IT Investments
Research & Development
Innovation/Differentiation Strategies
Innovation Strategies
Contents
Asian Paints – Mission & Vision
Industry Trends
Historical Information & Current Performance
Competitive Positioning (SWOT)
Marketing Strategy & Functional Excellence
Marketing Strategy & Promotion Excellence
Promotions – Online selection
Color Guides
Continuous visibility – TV Commercials
Endorsement through
Celebrities
Interactive Engagement – Website platforms
Color Dezigner
Caring for “All Ages”
Self Designing – A Sense of Achievement
Guiding customers - Interior Design Ideas
Glam Decor
Cool Decor
Vibrant Decor
Neutral Decor