NAME & AJAY (1), FARHANAZ (13),ROLL NO.: FOUZIA (14), HIMALI (19),

LEENA (28), NIDHI (35) INSTITUTE: IIPM, MUMBAIBATCH: 2010-2012/FW/B5SUBJECT: MARKETING ESSESNTIALSTOPIC: MARKET ANALYSIS

BASED ON 4P’SSUBMITTED ON: 26 OCT, 2010SUBMITTED TO: PROF. VHORA

OVERVIEW : ASIAN PAINTS Started in 1942 by four entrepreneurs – Chimanlal

Chowksi, Champaklal Choksey, Suryakant Dani & Arvind Vakil as a partnership firm for manufacturing paints, in a garage rented for Rs.75 a month in Kapadwanj in the Kheda district in the state of Gujarat as a collection of small plants. Over the course of 25 years, Asian Paints has became a corporate force

India's largest paint company, Asia’s third largest company & ranks among the top ten Decorative coatings companies in the world

Turnover – INR 0.35 million (1945) to 66.80 billion (2010)

Appointed Mr. P M Murthy as Managing Director & CEO on 1st April, 2009

Operates in 20 countries globally with 28 paint manufacturing facilities servicing consumers in 65 countries

Market share of about 45 % of total paint industry

The countries that Asian Paints has presence are as follows: South Asia : Bangladesh, Nepal, and Sri Lanka South East Asia : China, Malaysia, Singapore & Thailand Caribbean Islands : Barbados, Jamaica, Trinidad and Tobago Middle East : Bahrain, Egypt, Oman and United Arab Emirates South Pacific : Australia, Fiji, Solomon Islands, Samoa Islands, Tonga and Vanuatu

It operates through its subsidiaries:

Apco Coatings Limited

Asian Paints Industrial Coatings Limited

Berger International Limited (BIL)

SCIB Paints

Asian PPG Industries Limited

Taubmans Paints

VISIONMr. Choksey’s vision was to ‘See Indian homes painted in a variety of colors from a truly Indian company.’ Asian Paints aims to become one of the top five decorative coatings companies world-wide 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.

MISSIONThe mission statement read ‘To provide paints as per market demand, ensuring desired level and quality of customer (dealer) service. Asian paints aims to become the largest decorative paint company in the world & to rank among the top five paint manufacturing companies of the world.

MARKETING MIX Also known as The 4 Ps of Marketing, refers to the primary elements that must be attended to in order to properly market a product. It is referred to as the set of controllable tools that the firm blends to produce the response it wants in the target market, so it consists of everything the firm can do to influence the demand for its product. Traditional 4Ps extended to encompass growth of service industry: 7Ps – Price, Product, Promotion, Place, People, Process, Physical Environment. In order to prove that marketing mix caters not only seller's view of market analysis but also customers view, attempt is made to match 4 Ps of marketing with 4 Cs of marketing to address consumer views:Product – Customer Solution Price – Customer CostPlacement – ConveniencePromotion – Communication

PRODUCTS MIX OF ASIAN PAINTS

ANCILLARIES•Primers•Fillers•Stainers•Sealers

AUTOMOTIVE•2K Nexa Autocolor•Deltorn•Delfleet•Bilux•Aspa

DECORATIVE PAINTS

•Exterior Walls- Apex,Ultima, ACE,Duracast•Interior Walls- Distempers, Emulsions, Enamels•Metal Surfaces•Wood Surfaces

INDUSTRIAL•Protective Coatings•Floor Coatings •Road Markings•Industrial Tinting System•Powder Coatings•Pthalics•Intumescent Coatings

Overall market share

Asian PaintsKansai NerolacBerger PaintsICI PaintsJenson & nicholsonShalimar Paintsothers18%

33%

9

9

18%

6

7

decorative segment

asian paintskansai nerolacberger paintsICI paintsJenson & nicholasShalimarothers

14

6 38

99

5

19

ASIAN PAINTSROYALE LUXURY EMULSION

4 P’s OF MARKETING

PRODUCTProduct includes all features and combination of goods and related services that a company offers to its customers. For manufacturers, products are the market expression of the company's productive capabilities and determine its ability to link with consumers. So product policy and strategy are of prime importance to an enterprise, and product decisions dictate the scope and direction of company activity. The market indicators such as profits, sales, image, market share, reputation and stature are also dependent on them. The product of any organization is both a component and a determinant of the marketing mix as it has a great influence on the other elements of the mix. Without proper product policy, a company can not pursue for further elements of marketing mix.

ASIAN PAINTS : ROYALE LUXURY EMULSION : PRODUCT

PERFORMANCE FEATURES & BENEFITSRoyale Luxury Sheen Emulsion is anemulsion paint that provides aluxurious finish and a silky glowingappearance to your walls. A water-based, 100% acrylic interior wall finish, it has excellent flow giving a near exquisite rush mark free finish. It also offers high stain resistance - walls painted with Royale are easy to clean and maintain that new look for years. Royale also offers good anti-fungal properties, and can be applied on all types of smooth plasters, false ceilings, asbestos sheets, concrete etc.

ATTRIBUTES ROYALE LUXURY EMULSIONCoverage 325-350 sq.ft/ Lt.Drying Time 15-20 MinutesGloss Soft SheenShelf Life 3 years

Stability of Thinned Paint Use within 24 hours

Safety Features Non-Flammable

Recommended Application Apply 2 coats for repainting & 3 coats for fresh surface painting

Pack Sizes 1 ltr, 4 ltr, 10 ltr, 20 ltr

Shade Range As per the Colourworld Fandeck

ASIAN PAINTS : ROYALE LUXURY EMULSION : PRODUCT

Asian Paints Royale

ICI Velvet Touch

Nerolac Impressions

Berger Luxol Silk

Others

42%

35%

9%

6%8%

MARKET SHARE

ASIAN PAINTS : ROYALE LUXURY EMULSION : PRODUCT

LINE STRETCHINGUp Market Stretch : Royale Play

Spatula Effect Brushing Effect Sponging Effect Ragging Effect

Down Market Stretch : Royale Shyne

Enhanced Smoother Anti-Fungal Stain Durability Finish Shield Resistance

ASIAN PAINTS : ROYALE LUXURY EMULSION : PRODUCT

ASIAN PAINTS : ROYALE LUXURY EMULSION : PRODUCT

Asian Paints Royale Luxury Emulsion satisfies the basic need of the paint that is to protect the wall from cracks, leaks, make it look clean & create a proper ambience etc. which does.Multi-choice colors, oil based, mat finish, distemper, primer, wall paint, floor paint, metal paint, wood finish powder coating, protective coating and fresh coats etc, in decorative & industrial paints, satisfies customer’s requirement & their needs.Asian Paints Royale is of acrylic type, washable, sunlight protected, leaks proof, long lasting, chemical base so it dries fast, polished etc.Asian Paints Royale judges the future requirement of the customer & tries to give such kind of result that it can be called mass ‘customization product’. For example getting paints which are pearl kind-shining, reflective, mirror view color, etc.

PRICEPricing is basically setting a specific price for a product or service offered. The concept of price refers to the amount of money that customers have to pay to obtain the product. This cost may be monetary, or it may instead require the consumer to give up intangibles, such as time or effort. If the costs outweigh the benefits for an individual, the perceived value of the offering will be low and it will be unlikely to be adopted & if the benefits are perceived as greater than their costs, chances of trial and adoption of the product is much greater. These perceptions of costs and benefits can be determined through research, and used in positioning the product & adopting right pricing strategies for the product.

ASIAN PAINTS : ROYALE LUXURY EMULSION : PRICE

•Asian Paints Royale Luxury Emulsion is placed as a Luxury product.•Pricing Strategy adopted is value-based pricing.•The current price of Royale Luxury Emulsion is as below:

•As per the conversation with a local dealer of Royale Luxury Emulsion, there will be an increase of Rs. 8-10 per liter in the current price.

QUNTITY (IN LITERS) PRICE (IN RUPEES)

1 liter 325

4 liter 1240

10 liter 3150

20 liter 5850

ATTRIBUTE ASIAN PAINTS ROYALE

ICI VELVET TOUCH

NEROLAC 24 CARAT IMPRESSION

Coverage 320-350 sq. ft/ltr

300-325 220-240

Drying Time 15-20 minutes 20-25 minutes 30 minutes

Shelf Life

Value Addition

BEST GOOD AVERAGE

ATTRIBUTE COMPARISON

PLACEPlace describes the way that the product reaches the consumer from the producer. It refers to the distribution system including the warehouse, trucks, sales force, retail outlets where it is sold, or places where it is given out for free, through the mail, via downloadable files, on a cruise ship, in a hair salon. This may also include doctors' offices, shopping malls, mass media vehicles or in-home demonstrations where consumers are reached with information & training. Another element of place is deciding how to ensure accessibility of the offering and quality of the service delivery. By determining the activities and habits of the target audience, as well as their experience and satisfaction with the existing delivery system, researchers can pinpoint the most ideal means of distribution for the offering.

Extensive distribution network of:• 4 manufacturing units• 6 regional distribution centres• 55 Depots• 15,000 Dealers (Urban+local)• 90,000 Sub-dealers

Exclusive 3000 asian paints stores4500 colour world stores

Ap bypassed the bulk buyer segment & went to individual consumer paintsAp went slow on urban areas & concentrated on semi-urban & rural areasAp went retailAp went in for open door dealer policyAp voted for nation-wide marketing/distribution

PROMOTIONPromotional strategies include all means through which a company communicates the benefits and values of its products and persuades targeted customers to buy them. It is the company strategy to cater for the marketing communication process that requires interaction between two or more people or groups, encompassing senders, messages, media and receivers. Promotion consists of the integrated use of advertising, public relations, promotions, media advocacy, personal selling, entertainment vehicles, public service announcements, & other methods such as coupons, media events, editorials, "Tupperware"-style parties or in-store displays. The focus is on creating and sustaining demand for the product. Research is crucial to determine the most effective and efficient vehicles to reach the target audience and increase demand.