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. . . KYUNKI HAR GHAR KUCH KEHTA HAI

BY PAINTERS :

DHIRENDRA SUMANSAURABH JAISWALMONICA THACKERDIPESH SETHI

PAINT INDUSTRY BY VALUE

INTRODUCTION TO ASIAN PAINTSAsian Oil And Paints Company.Started in 1942 in garage by four entrepreneurs: Champaklal Choksey, Chimanlal Choksey, Suryakant Dani and Arvind Vakil.In 1967, it became 10th largest company in world.

ASIAN PAINTS-TODAY

COMPETITORS

Asian paints 37%Goodlass Nerolac 15.9%Shalimar 4%Berger Paints 13.8%Market Share in India

FINANCIAL ANALYSIS

NET SALES

MARKET CAPITALISATION

BRANDING OF COMPANY IMAGE In 1954, Asian Paints asked the famous cartoonist R.K. Laxman to create a mascot for the company, and from his pen was born Gattu, which emerged as one of India's most memorable mascots.Brand focused mainly on mass and rural market.

GATTU- THE COMMON MANS MASCOT

BUILDING OF A NEW PRODUCT PORTFOLIOConsumer Research- Paints are seen to rejuvenate and brighten up a gloomy place, and give room a more spacious look. Painting signifies festivity, life and plenitude.Celebrate with Asian Paints - thus evolved.It also created advertising that related to specific festive occasions and also delivered regional empathy in country.Asian Paints associated with festive events across the country.

FESTIVAL AD

NEED FOR CHANGEAlthough volume displayed leadership position, but share of mind for the brand was very low.Industry was driven by channel driven promotions, building a brand at that time was" uncommon sense.During 1983, the company tried to reposition the brand as a premium brand.The corporate campaign " Spectrum of Excellence" was aimed to increase the Salience of the brand in a quiet market.

RESTRUCTURING OF THE BRAND In order to achieve its goal, it focused on three main areas Building the AP brand in terms of a new product portfolio. Changing its logo and packaging. The new AP was expected to be even more customer-friendly.Appointed Ogilvy & Mather (O&M) as their advertising agent.

THE CHANGING ENVIRONMENT

The consumer was changing.Festivals have less important in the overall scheme of things.Too much clutter around the festival platform reducing the uniqueness of the proposition.The painting itself becoming less seasonal.

STRATEGIESDisposable Income.Urbanization.Standard of Living.Increase in GDP. Being the best performer in its industry, Asian Paints is in a good position to reap benefits of the growing economy.

EMPHASIS ON PACKAGING AND PRICING

Product at every price pointPremium-OPAL - the premium wood finish launched all across theCountryRoyale Luxury Emulsion

Economy- Utsav Enamel Utsav Acrylic Distemper Tractor Gold Ace : Economy Emulsion Exterior paint

AGGRESIVE ADVERTISING

MARKETING, SALES & DISTRIBUTION

Rural Marketing Initiatives since 1960.Distribution is one of the main strategy of Asian Paints.Advertising & Promotional Expenditure started in 1980s.Advertising Methods-Radio, TVCs, Print, Internet, OOH, POP, Retail Outlets, Seminars, Workshops.Promotional Expenditure grew from 15% in 2003 to 21% in 2008.

MARKETING STRATEGY

CUSTOMER-FRIENDLY & SERVICE ORIENTEDHelp Line-

Asian Paints Helpline launched in 16 cities.Receives an enthusiastic response.The information powerhouse to the consumer.A step to bring the consumer closer to the Company.90 % of the calls are converted to sales.Adds further value to the Corporate Brand.

CUSTOMER-FRIENDLY & SERVICE ORIENTEDHome Solutions-

Asian Paints Home Solutions launched in Hyderabad.Painting your home for you.Asian Paints new website provides greater interactivity with the user.Painting solutions provided to the user.Online officer to answer all queries.

IT INITIATIVES

Revamp of Existing Transaction Systems.Implementation of ERP (SAP R/3 and Business Warehouse) for improved financial reporting and analysis.To complement the SCM solution from i2 Technologies.Revamp of communication network.Connectivity using terrestrial and satellite media to all 86 locations of the company within India.

MERGERS & ACQUISITIONS

Buys Taubmans Paints (Fiji) In September 2003.

Acquires ICI Indias Unit (February 2007).

Sells stake in Australian Unit (June 2007).

EXPANDING INTERNATIONAL OPERATIONS

Caribbean IslandsBarbados, Jamaica, Trinidad & Tobago.South PacificFiji, Tonga, Vanuatu, Solomon & Samoa Islands.South AsiaBangladesh, Nepal & Sri Lanka.South East AsiaChina, Malaysia, Singapore & Thailand.Middle EastBahrain, Egypt,Oman & United Arab Emirates.

FUTURE OF THE COMPANYAsian Paints is planning to increase the capacity by setting up a plant at Rohtak, Haryana.

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

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

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

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

FUNNY AD

THANK YOU

Chart1

Indias largest paint company with market capital of14,000 crAsias third largest paint company and leader in 11 countries.Operates in 21 countries with 29 paint mfg. facilities with capacity of 420 mn. Lts/annum.

Sheet1Sales1st Qtr8.22nd Qtr3.23rd Qtr1.44th Qtr1.2To resize chart data range, drag lower right corner of range.

Chart10.370.1590.1380.110.0570.040.12

paint manufacturing companies

Sheet1paint manufacturing companiesAsian Paints37%Goodlass Nerolac15.90%Berger Paints13.80%ICI11%Jenson & Nicholson5.70%Shalimar4%Others12%

Chart10.370.1590.1380.110.0570.040.12

ICI 11%Jenson & Nicholson 5.7%Others 12%Paint Manufacturing Companies

Sheet1Paint Manufacturing CompaniesAsian Paints37%Goodlass Nerolac15.90%Berger Paints13.80%ICI11%Jenson & Nicholson5.70%Shalimar4%Others12%

Chart10.170.020.81

3,563(81%)International737.33(16.7%)Others 104.29 (2.4%)Paints IndiaNet SalesNet Sales(All Figures in Rs. Crores)

Sheet1Net SalesInternational17%Others2%Paints India81%To resize chart data range, drag lower right corner of range.