asian paints branding startegy
TRANSCRIPT
Asian PaintsBranding Strategy
PAINTERS:-JAYSHANKARAN S. IYER
SAGAR S. LAHOTI
LEENA S. JADHAV
NITIN C. DHADAGE
ROHAN V. CHAVAN
. . . KYUNKI HAR GHAR KUCH KEHTA HAI
SCENARIO OF INDIAN PAINT INDUSTRY
PAINT INDUSTRY BY VALUE
INTRODUCTION TO ASIAN PAINTS
“Asian 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.
VISION
“Asian Paints aims to become one of the top 5 Decorative Coatings companies worldwide by leveraging its expertise in the higher growth emerging markets. Simultaneously, the company intends to build long term value in the Industrial coatings business through alliances with established global partners.”
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 MAN’S MASCOT
NEED FOR CHANGE
Is the common man important? Frankly, I think we don't need a mascot anymore."
-Rajiv Kumar Garodia, Advertising Manager, Asian Paints in July 2002.
"We want the logo and the packaging to reflect the new mood we are trying to move the brand towards."
-K.B.S. Anand, Head, Vice-President, Sales & Marketing, Asian Paints in September
NEED FOR CHANGE
Although 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.
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.
RESTRUCTURING OF THE BRAND
Consumer 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.
BUILDING OF A NEW PRODUCT PORTFOLIO
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.
STRATEGY
Disposable 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 point
Premium- ‘OPAL’ - the premium wood
finish launched all across theCountryRoyale Luxury EmulsionEconomy- ‘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.
CUSTOMER-FRIENDLY & SERVICE ORIENTED
Help 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.
Home 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.
CUSTOMER-FRIENDLY & SERVICE ORIENTED
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 India’s Unit (February 2007).
Sells stake in Australian Unit (June 2007).
EXPANDING INTERNATIONAL OPERATIONS
Caribbean Islands
Barbados, Jamaica, Trinidad & Tobago.
South Pacific
Fiji, Tonga, Vanuatu, Solomon &
Samoa Islands.
South Asia
Bangladesh, Nepal & Sri Lanka.
South East Asia
China, Malaysia, Singapore & Thailand.
Middle East
Bahrain, Egypt,Oman &
United Arab Emirates.
ASIAN PAINTS-TODAY
India’s largest paint
company with
market capital of14,000 cr
Asia’s third
largest paint
company and
leader in 11
countries.
Operates in 21
countries with 29
paint mfg. facilities
with capacity of 420 mn. Lts/annu
m.
COMPETITORS
Asian paints
37%
Good
lass
Nerolac 1
5.9
%
Shalimar
4%
Berge
r Pa
ints
13.8
%Market Share in India
FINANCIAL ANALYSIS
2003-04 2004-05 2005-06 2006-07 2007-080
500
1000
1500
2000
2500
3000
3500
4000
4500
2025.9
2338.8
2777.4
3360.7
4059.9Gross Sales Rs. In cr...
NET SALES
MARKET CAPITALISATION
FUTURE OF THE COMPANY
Asian 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.
GDP growth slowdown in the growth rate of two important activities i.e. repaint activity and construction activity will have direct impact on the volume of AP, thus effecting its profitability and margins.
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.
THANK YOU