7/31/2019 Industrial Marketing Project
1/46
1
Tolani Institute Of Management Studies, Adipur
A
PROJECT REPORT
OF
INDUSTRIAL MARKETING
ON
PAINTS INDUSTRY
7/31/2019 Industrial Marketing Project
2/46
2
Tolani Institute Of Management Studies, Adipur
These are our group member names:
JAY PUJARA(11060)
KAUSHIK SANGHANI (11069)
HARDIK RAJGOR(11061)
DEVENDRA RANA(11064)
AJAY VAGHASIYA(11090)
BHAVIN VARA (11094)
7/31/2019 Industrial Marketing Project
3/46
3
Tolani Institute Of Management Studies, Adipur
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
Availability: Across all Colour World Dealers.
Products information sheet
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.pdf7/31/2019 Industrial Marketing Project
4/46
4
Tolani Institute Of Management Studies, Adipur
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
Availability: Across all Colour World Dealers.
Products information sheet
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
Availability: Across all Colour World Dealers.
Products information sheet
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
Availability: Across all Colour World Dealers.
Products information sheet
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.pdf7/31/2019 Industrial Marketing Project
5/46
5
Tolani Institute Of Management Studies, Adipur
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.
Cost Range: Mid-Range
Finish: Clear-Glossy
Availability: Available in select Markets
Products information sheet
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.pdf7/31/2019 Industrial Marketing Project
6/46
6
Tolani Institute Of Management Studies, Adipur
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.
Cost Range: Mid-Range
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
Products information sheet
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.pdf7/31/2019 Industrial Marketing Project
7/46
7
Tolani Institute Of Management Studies, Adipur
Product Name: Asian Paints Apex Dholpur Tex
Description:
Cost Range: Premium
Finish: Dholpur Stone Finish
Availability: Available through Asian Paints Project Sales Only.
Products information sheet
Product Name: Asian Paints Dura castSwirltex
Description:
Cost Range: Premium
Finish: Rich Sheen
Availability: Across all Colour World Dealers.
Products information sheet
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.pdf7/31/2019 Industrial Marketing Project
8/46
8
Tolani Institute Of Management Studies, Adipur
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.
7/31/2019 Industrial Marketing Project
9/46
9
Tolani Institute Of Management Studies, Adipur
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
7/31/2019 Industrial Marketing Project
10/46
10
Tolani Institute Of Management Studies, Adipur
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
7/31/2019 Industrial Marketing Project
11/46
11
Tolani Institute Of Management Studies, Adipur
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
7/31/2019 Industrial Marketing Project
12/46
12
Tolani Institute Of Management Studies, Adipur
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.
7/31/2019 Industrial Marketing Project
13/46
13
Tolani Institute Of Management Studies, Adipur
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)
7/31/2019 Industrial Marketing Project
14/46
14
Tolani Institute Of Management Studies, Adipur
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
7/31/2019 Industrial Marketing Project
15/46
15
Tolani Institute Of Management Studies, Adipur
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
7/31/2019 Industrial Marketing Project
16/46
16
Tolani Institute Of Management Studies, Adipur
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
7/31/2019 Industrial Marketing Project
17/46
17
Tolani Institute Of Management Studies, Adipur
Supply Chain Strategy
7/31/2019 Industrial Marketing Project
18/46
18
Tolani Institute Of Management Studies, Adipur
Promotion Strategy
7/31/2019 Industrial Marketing Project
19/46
19
Tolani Institute Of Management Studies, Adipur
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%
7/31/2019 Industrial Marketing Project
20/46
20
Tolani Institute Of Management Studies, Adipur
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.
7/31/2019 Industrial Marketing Project
21/46
21
Tolani Institute Of Management Studies, Adipur
Latest TV Ads
7/31/2019 Industrial Marketing Project
22/46
22
Tolani Institute Of Management Studies, Adipur
PRINT ADS:
7/31/2019 Industrial Marketing Project
23/46
23
Tolani Institute Of Management Studies, Adipur
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
7/31/2019 Industrial Marketing Project
24/46
24
Tolani Institute Of Management Studies, Adipur
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.
7/31/2019 Industrial Marketing Project
25/46
25
Tolani Institute Of Management Studies, Adipur
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
7/31/2019 Industrial Marketing Project
26/46
26
Tolani Institute Of Management Studies, Adipur
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
7/31/2019 Industrial Marketing Project
27/46
27
Tolani Institute Of Management Studies, Adipur
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=10767/31/2019 Industrial Marketing Project
28/46
28
Tolani Institute Of Management Studies, Adipur
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=10817/31/2019 Industrial Marketing Project
29/46
29
Tolani Institute Of Management Studies, Adipur
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=10877/31/2019 Industrial Marketing Project
30/46
30
Tolani Institute Of Management Studies, Adipur
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-paints7/31/2019 Industrial Marketing Project
31/46
31
Tolani Institute Of Management Studies, Adipur
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.
7/31/2019 Industrial Marketing Project
32/46
32
Tolani Institute Of Management Studies, Adipur
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.
7/31/2019 Industrial Marketing Project
33/46
7/31/2019 Industrial Marketing Project
34/46
34
Tolani Institute Of Management Studies, Adipur
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
7/31/2019 Industrial Marketing Project
35/46
35
Tolani Institute Of Management Studies, Adipur
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%
7/31/2019 Industrial Marketing Project
36/46
36
Tolani Institute Of Management Studies, Adipur
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
7/31/2019 Industrial Marketing Project
37/46
37
Tolani Institute Of Management Studies, Adipur
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
7/31/2019 Industrial Marketing Project
38/46
38
Tolani Institute Of Management Studies, Adipur
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
7/31/2019 Industrial Marketing Project
39/46
39
Tolani Institute Of Management Studies, Adipur
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
7/31/2019 Industrial Marketing Project
40/46
40
Tolani Institute Of Management Studies, Adipur
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.
7/31/2019 Industrial Marketing Project
41/46
41
Tolani Institute Of Management Studies, Adipur
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.
7/31/2019 Industrial Marketing Project
42/46
7/31/2019 Industrial Marketing Project
43/46
43
Tolani Institute Of Management Studies, Adipur
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/Inventory7/31/2019 Industrial Marketing Project
44/46
44
Tolani Institute Of Management Studies, Adipur
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.
7/31/2019 Industrial Marketing Project
45/46
45
Tolani Institute Of Management Studies, Adipur
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-Uak87/31/2019 Industrial Marketing Project
46/46
46
a focus on the Healthy Paint attribute be considered a powerful
differentiator?