SWOT Analysis of Asian Paints

SWOT Analysis of Asian Paints

Introduction ASIAN PAINTSThe company is having presently four paint manufacturing locations in India. Ankaleshwar, Bhandup, Patancheru, Kasna. The company is setting up a new facility in Sriperumbadur, Chennai where these new positions will be based. An Asian paint is the Indias largest paint company and ranks among the top 10 decorative coating companies.As we move towards becoming the one company and ranks among the top ten decorative coatings companies in the world today, with a turnover of Rs 20.67 billion (USD 435 million) and an enviable reputation in the Indian corporate world for Professionalism, Fast Track Growth, and Building Shareholder Equity.The October 2002 issue of Forbes Global magazine USA ranked Asian Paints among the 200th Best Small Companies in the World for 2002 and presented the Best under a Billion award, to the company. One of the countrys leading business magazines Business Today in Feb 2001 ranked Asian Paints as the Ninth Best Employer in India. A survey carried out by Economic Times in January 2000, ranked Asian Paints as the Fourth most admired company across industries in India. Among its various other achievements, Asian Paints is the only company in India to have won the prestigious Economic Times - Harvard Business School Association of India award on two separate occasions, once in the category of Mini-Giants and the other in Private sector GiantsThe company has come a long way since its small beginnings in 1942. Four friends who were willing to take on one of the worlds biggest, Most famous paint companies operating in India at that time set it up as a partnership firm. Over the course of 25 years Asian Paints became a corporate force and Indias leading Paints Company. Driven by its strong consumer-focus and innovative spirit, the company has been the market leader in paints since 1968. Today it is double the size of any other paint company in India.Asian Paints manufactures a wide range of paints for Decorative and Industrial use. Vertical integration has seen it diversify into Specialty products such as Phthalic Anhydride and Pentaerythritol. Not only does Asian Paints offer customers a wide range of Decorative and Industrial paints, it even Custom-creates products to meet specific requirements. Highlights: Net Sales and Operating Income of Asian Paint (India)Ltd. grew by 14.4% from Rs.16,966 million in 2003-04 to Rs. 19,415 million in 2004-05. Net Profit increased by 17.4% from Rs. 1,478 million in 2003-04 to Rs. 1735 million in 2004-05 The Board of Directors have recommended dividend of 95% for the year 2004-05 with a payout ratio of 60% State of the art emulsion paint manufacturing facility commissioned at Sriperumbudur near Chennai.

Board of directors: Ashwin C Choksi Non-Executive Chairman Ashwin S Dani Non-Executive Vice Chairman Murthy P M Managing Director & CEO Abhay Vakil Director Mahendra Choksi Director Amar A Vakil Director Ina Dani Director Tarjani Vakil Chairperson of Audit Committee Dipankar Basu Director Deepak M Satwalekar Director Rajendra Shah Director Dr. S Sivaram Director Mahendra M Shah Director Ramadorai S DirectorCORPORATE SOCIAL RESPONSIBILITY Asian Paints approaches Corporate Social Responsibility (CSR) from the perspective of being a responsible corporate citizen. There has been a continued effort to take up initiatives in various quarters and ensure sufficient resources for the sustenance and continuity of the same. The Company has identified projects across all its manufacturing locations in the country primarily in the areas of education, health care, and rain water harvesting.In the area of education, the Company has been involved in supporting various schools around its plants including the setting up of the Gattu school at Ankleshwar which provides eduction to around 2,500 students from various strata of society. In the area of health care, the Company continued operating Mobile Medicare Units (MMU) around Patancheru (Andhra Pradesh) and Kasna(UP) plants collaborating with HelpAge India, an NGO. The Company also took the initiative of treating people with cataract and successfully got around 460 patients operated at recognized eye- hospitals. International operations:Asian Paints operates in 23 countries across the world. It has manufacturing facilities in each of these countries and is the largest paint company in nine overseas markets. It is also Indias largest exporter of paints, exporting to over 15 markets in the Asia-Pacific region, the Middle East and Africa. In 12 markets, it operates through its subsidiary, Berger International Limited and in Egypt through SCIB Chemical SAE. Corporate vision: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.Finishes that give you great looking interiors, with the choice of every shade of the spectrum

History1942During the Second World War, it was hardly a promising time to set up a new company in India, but that is exactly what four young men did in Bombay.The name Asian Paints was picked randomly from the telephone directory.And the four young men started manufacturing paint in a garage rented for Rs. 75 a month, equipped with little more than a traditional Gujarati rhyme that reminded them that you can make any colour by mixing the right proportions of red, blue and yellow.1945The company had touched a modest turnover of Rs. 350,000, way beyond the wildest dreams of the partners. Up against the giant international paint companies, Asian Paints hit on the innovative marketing strategy of going where the consumer is, reaching out to the remotest corners of the country to give consumers products the way he wanted them-in conveniently-sized packs. It was also around this time that the company created its mascot, Gattu, which has grown into one of Indias most recognizable advertising symbols and representative of Asian Paints strong Indian identity.1957It was the beginning of a decade of dramatic growth. The companys R&D department figured out a way to produce international quality Phenolic and Maleic resins on its simple coal-fumace, with a hand-stirring process. This led Balmer Lawrie to reject the products offered by a leading giant UK-owned paint company, despite the latter is perceived technological advantage and switch to Asian Paints products. Simultaneously the company embarked on an ambitious marketing campaign, forming close bonds with thousands of dealers in small towns all over India. These bonds in true Asian Paints style were so close that it developed a very strong link between the organization and dealers these efforts paid off handsomely as the story of the subsequent years shows.1968By 1968 the company surprised its big-name multinational competitors by emerging as Indias No. 1 paint company. Ever since 1968, the company has been a leader in this industry. The company presently has 27 % market share of the total paint market Even though being a leader in this industry, it has realized that it can further consolidate its position.1998In 1998, the company embarked on a major restructuring strategy under the guidance of management consultants, Booz Allen & Hamilton. The restructuring was done to bring greater focus to its business, improve efficiencies, control cost and strengthen its leadership position. After the completion of the restructuring, the vision for the company was stated. The company is committed to realizing its vision and has chartered a complete plan of action for realizing its vision.Today Asian Paints becomes the 10th largest decorative paint company in the world Asian Paints is more than twice the size of its nearest competitor It is one of the most admired companies in India Present in 22 countries with 27 manufacturing locations, over 2500 SKU's, Integrated SAP - ERP & i2 - SCM solution Rated Best Employer by BT-Hewitt survey, 2000 Bluest of the blue chips by Hindu Business Line; Most admired company to work for by ET-BT survey, 2000 On the recommendations of Booz, Allen and Hamilton, Asian Paints restructured itself into Growth, Decorative and International business units and adopted SCM and ERP technology Asian Paints aims to become the 5th largest decorative paint company in the world

New capacity

New paint plant at sriperumbudur

Asian Paints, new paint plant at Sriperumbudur, near Chennai in the State of Tamil Nadu commenced production on January 20, 2005. It is located at SIPCOT (State Industrial Promotion Corporation of Tamil Nadu) Industrial Park, Sriperumbudur. This state of the art plant, erected in record time, has been established to manufacture emulsion paints alone with an initial capacity of 30,000 KL per annum. This is Asian Paints fifth paint plant in India.

PAINT PRODUCTION PLANTThe plant is presently equipped with: Modern material handling facilities including storage of raw material in silos. Capability to handle batch sizes upto 20 KL, High speed packing lines. The latest automated process control system. Pollution abatement, waste usage in a closed loop manufacturing system and advanced pollution treatment facilities.

These facilities will enable the company to implement Right First Time and Zero Defect concepts. The plant is Zero Discharge plant and has Environment, Health, and Safety features of the highest standard.

Global Presence of Asian Paints:Asian Paints has had international presence right since the 1960s. It set up its first overseas unit in 1977 at Fiji. Asian Paints now has a strong presence in the Indian subcontinents, Southeast Asia, Far East, Middle East, South Pacific, Caribbean, Africa and Europe. Along with Asian Paints, the group consists of sub Chemicals, Berger International and Apco Coatings. Together, the group has 27 manufacturing locations globally.Having established a position as one of the top ten decorative coatings companies in the world, our constant endeavor is to give you the best in paints which stems form the motto: Any surface that needs painting needs Asian Paints.REGIONSCOUNTRIESOPERATING COMPANY

South PacificAustralia, Fiji, Solomon Islands, Samoa, Tonga, VanuatuAsian Paints and its subsidiaries

South East AsiaChina, Malaysia, Myanmar, Singapore, ThailandBerger International and its subsidiaries

South AsiaIndia, Bangladesh, Nepal, SrilankAsian Paints and its subsidiaries

Middle EastBahrain, UAEBerger international and its subsidiaries

CaribbeanBarbados, Jamaica, Trinidad & TobagoBerger International and its subsidiaries

Product range in a company:The company produces different rang of paints in interiors decoration as well as exterior decoration, to satisfy the consumers. INTERIORS:Company product ranges are1. ROYAL LUXURY EMULSION: is an acrylic emulsion that gives a wall a silky shine that stays for years to come.2. PREMIUSM EMULSION: PE is a good choice for great looking walls. It gives a smooth finish to the walls and is completely washable.3. INTERIOR WALL FINISH - LUSTER gives a glass like finish, best suited for kitchens and washrooms where there is a lot of moisture and dirt.4. INTERIOR WASS FINISH-MATT: give a matt look to your walls and can be used to create interesting effects.5. TRACTOR EMULSION: TE is a good choice for people who are looking for value for their money. It promises smoothness along with the legendary qualities of tractor.6. TRACTOR ACRYLIC DISTEMPER: TAD gives a superio9r finish and comes in the range of over 200 shades.7. TRACTOR SYNTHETIC DISTEMPER: TSD is India is largest selling distemper. This wall finish comes in beautiful shades and is washable.8. APCOLITE PREMIUM GLASS ENAMEL: APGE is a premium product used for metals and wood. It can withstand rigged condition sunlight and dust.EXTERIOR:1 APEX: Apex creates beautiful exterior. It withstands extreme typical conditions of high rainfall, humidity and heat. It protects against, sunlight, fungus and algae.2 ACE: provides production from the elements of nature. It is suitable for non - coastal areas and places with dry to moderate climate.

PRIMERS & ANCILLARIES:1. DECOPRIME WALL PRIMER (solvent thinnable): DWP is an application for interior surfaces. It has good sealing properties and strong resistance to alkalinity, moisture & fungus.2. DECOPRIME WALL PRIMER (water thinnable): DWP is used on plastered walls, asbestos, cement and concrete. It is also fortified with fungicides.3. WOOD PRIMER: WP has excellent sealing and filling properties, which protect wood from swelling due to absorption of moisture.4. METAL PRIMER: MP has good adhesion and prevents metal from rusting, by forming a hard tough coating.5. ACRLIC WALL PUTTY: AWP is a smooth, easy to use under coat with excellent adhesive properties.

Products of Asian paints

Marketing strategy of asian paints: Product Mix:Asian Paint Company manufactures and markets, a wide arrange of products such as surface coatings and ancillaries, which include Architectural and Heavy Duty Coating for maintenance purpose. Asian paints provide wide range of color shades (about 1400) for different kinds of surface. All the shades are created by All India Institute of Fashion Technology. They create colors according to the Indian Taste. Distribution Mix:In India, the distribution network of the company consists of 56 sales offices and 6 Regional Distribution centers each with its own warehouse distributing products to cater over 15,000 retail outlets and industrial users spread across the country.In every place where there is a population of around 20,000 there is an Asian paint dealer. There is no middle men or sub stockiest. When an order placed to the company the company distributes the goods to the dealer directly from its own godowns.As there are no middle men, the service is fast. It reaches to the end user i.e., the consumers in a very short time. In Davangere the company has got 18 dealers. Promotion Mix:The company promotes the products through advertisement in Television, maga- zines etc. The ads are created bearing in mind, the culture, people, area etc. The ads are seasonal in nature. The advertisers for Asian paints is O and M (Oglive and Mother). Most of the ads are created on the basis of the family as the members of the family who decides the type of paint, shade of paint etc. Price Mix:The prices of the products of the company are on par when compared with the other companies in the organized sector. The price of Asian Paints, compared to the paints of other companies is same. But slightly higher that the prices of unbranded products. It does not mean that the products of Asian Paints are inferior. Asian Paints have succeeded in reducing the process and supplying the quality products at a reasonable rate because of huge investment in Research and Development. Through Research and Development, the company has improved the quality of paints and increased the life of paints. From the above table it is clear that even middle class people buy paying a slightly higher price (compared to prices of unbranded paints) they can get quality products of Asian Paints Ltd.,

About services:The company starts services by the name called Home Solutions. Home solutions means the company provides technical information on process of painting. It gives complete information about how the customer selects the paints from different range. Which color, range of paints suits to home, how to paint a home, etc., This facilities available only big cities, like Bangalore, Bombay, Kolkata, Delhi, Chennai etc.,

Perfect applications that work in unison with every wall finish. Giving surfaces the best results

Consumer behaviour

Understanding consumer behavior and knowing consumer are never simple. Consumers may state their needs and wants but act otherwise. Consumer behavior is largely determined by how the customer thinks and processes information.Consumer behavior is one of the important variables on controllable in the marketing environment. Buyer behavior is a comparatively new field of study. It is the attempt to understand and predict human actions in the buying notes. It has assumed gracing importance uses market oriented for consumer oriented marketing, planning and management, buyer market for many products and the growth of consumerism and consumer legislation. Since 1960, have created special interest in buyer behavior and formation of marketing programmer to respond favorably buyer behavior in the market place.Every marketing activity revolves around the customer. In early stages of economic evaluation the consumer had to accept what producers had produced but today the consumer dictates terms to the manufacturer to manufacture the product he wants. Consumer purchases a commodity as dictated by there mental an economic force. As consumption initials production the producer purchase this helps into offer a total product that can give consumer satisfaction.

Major factor influencing buying behaviour

Consumers make purchase decisions on the basis of who they are where they line and now much they earn.

BUYERS

Psychological factorsSocio-cultural factorsEconomical factorsEnvironmental factors

Motivation Perception Learning Belief & attitudes Personality Family Reference group Social class Culture Personal income Income expectation Savings Consumer credit Political Legal Technological Ethical

1. Psychological factors MotivationIt is a psychological technique of inspiring human beings to act in a particular way. Motivation acts as a driving force in the flow towards purchase action. Motivation has a direct cause and effect relationship. Motivation is the drive to act, to move to obtain a goal or an objective. Motivation is a mental phenomenon. It is affected by perceptions, attitudes, and personality traits and by outside influences such as culture and marketing efforts. PerceptionPerception gives the direction or path to be taken by the behavior perception is the meaning we give on the basis of our past experience. To perceive is to see, to hear, to touch, to taste, to smell and to sense same thing or event or relation and to organize, interpret and find meaning in the experience our senses perceive the color, shape, sound, smell, taste etc., of the stimulus our behavior is governed by these physical perceptions.

LearningAll theories of buyer behavior have been primarily based on a learning model. Learning is the central topic in the study of human behavior learning is defined as all changes in behavior that result from previous experience and behavior in similar situations. It refers to changes in the behavior, which occurs as a result of practice. Learning is the product of reasoning, thinking, information processing and of course, perception. AttitudesSocial psychologist defines attitude as an emotionalized predisposition to suspend positively or negatively to an object or class of objects. The concept of predisposition includes our familiar concepts of attitudes beliefs, goals and values. Attitudes affect both perception and behavior. In general an attitude is a state of mind or feeling. It induces a predisposition to behave in some way. Attitudes are very important in explaining buyer behavior. PersonalityPersonality is a complex psychological concept. Ts primary features are self-concept, roles and levels of consciousness. The self-concept refers to how a person sees himself and how he believes others to see him at a particular time. The buyer behavior is influenced by the particular role upon which a buyer is concentrating at a given time. Personality traits such as dominance, sociability, friendliness, responsibility, dependence etc., can indicate how people behave.2. Social cultural factors

FamilyMost consumers belong to a family group. The family can exert considerable influence in shaping the pattern of consumption and indicating the decision making roles personal values, attitudes and buying habits have been shaped by family influences.

Reference groupThe concept of reference group is borrowed from sociology and psychology. Buyer behavior is influenced by the small groups to which the buyer belongs. Reference groups are the social, economic or professional groups and a buyer uses to evaluate his or her opinions and beliefs. Reference group is useful for self evaluation and attitude formation.

Social classSociology points out the relationship between social class and consumption patters. As a predictor of consumption patterns, marketing management is familiar with social classes consumers buying behaviour is determined by the social class to which they belong or to which they aspire rather than by their income alone. Broadly speaking, we have three distinct social classes upper, middle and lower classes. Upper class people are aggressive in buying and analysed less. Middle class people are more informative but lower class people are essentially non national purchases and show limited sense of choice making.

CultureCulture represents am overall social heritage, a distinctive form of environmental adaptation by a whole society of people. It includes a set of learned beliefs, values, attitudes, morals, customs, habits and forms of behaviour that are shared by a society and transmitted from generation to generation within that society cultural influence is a force shaping both patterns of consumption and patters of decision making from infancy.

3. Economical factors

Personal incomeThe economist made attempts to establish relationship between income and spending. This income represents potential purchasing power that a buyer has. The change in income has direct relation on buying habit.

Income expectationThe expected income to receive in future has direct relations with buying behavior. The expectation of higher or lower income has a direct affect on spending plans. SavingsA change in the amount of saving leads to a change in the expenditure of an individual. It he decides to save more he will spend less an comforts and luxury. Consumer creditFacility of consumer credit system like hire purchase installment purchase credit cards etc., play an important role in purchase decision.

4. Environmental factors

PoliticalThe system of government influences both consumer and market behavior. If the government is rigid the buying pattern of consumer may be less frequent. On the other hand if there is stable and modern approach, buyers will by frequently. LegalThe legalities and politics of the government like taxation policy, import export policy etc., are more rigid. Market will play to a less extent and if the policies are liberal buyers are more free to buy.

TechnicalThe advancement of science and technology changes the standard of living and income level of buyers and they go for durable and comfort goods.

EthicalThe business policy of commercial undertaking also influences the buying behavior of consumer.

Meaning of attitudeAn attitude is an enduring organization of motivational, emotional, perceptual, and cognitive process with respect to some aspect of our environment. It is a learned predisposition to respond in a consistently favorable or unfavorable manner with respect to a given object. Thus, an attitude is the way we think, feel, and act toward some aspect of our environment such as retailers store, Television programmes, or Product (paints).

Attitude Components:Attitude as having three components:1. Cognitive Component:Person beliefs about the paint many beliefs about the product (paint) attribute are evaluated in nature. That is attractive styling, availability, quality, reliable performance etc. Than the person belief is positive.

2. Affective Component:Our feeling or emotional reaction to an object represent the affective component of an attitude. A person feeling like/ dislike concerning the paints.

3. Behavioral Component:The behavioral component of an attitude is ones tendency to respond in a certain manner toward on object or activity. A person action tendencies or predisposition towards the paint. If a person holds a favorable belief toward a product (say paint) he will generally behave in a supportive manner towards that product (i.e. paint). An attitude is relevant when purchase behavior is formed as a result of direct experience with the product (paint) information acquired from others and exposure to mass media like advertisement etc. So attitudes are leaved predisposition and is true in case of paint. Attitude are not synonymous with behavior, but reflect either favorable or an unfavorable of the attitude towards the product. Attitude of the consumers are not permanent. They do change according to the changing conditions. So we must consider the influence of the situation on the consumer attitude and behavior.

Buying behaviorThe consumer decision making varies with the type of buying decision.1. Complex buying behavior: In this type consumers go through complex buying behavior when they are highly involved in a purchase and aware of significant difference among brands.

2. Dissonance reducing buying behavior: Sometimes the consumer is highly involved in a purchase but sees little difference in brands. In this case the buyer will shop around to learn what is available but will fairly and quickly because brand differences are not pronounced.

3. Habitual buying: Many products are brought under conditions of low consumer involvement and the absence of significant brand difference.

4. Variety seeking buying behavior: Some buying situations are characterized by low consumer involvement but significant brand differences. Here consumers are often observed to do a lot of brand switching.

Measurements of attitudes

The attitudes of consumers should be measured to implement the new strategy, it is also a very difficult task since, and there is no physical component of attitudes. So it is substantially difficult to measure this attitude as compared to measuring of physical characteristics viz. Weight, length, volume etc., The inferences based on self reports of belief, feeling and behaviors can be measured using rating scales, paired comparisons etc.Consumer attitude is a very complex and important aspects in marketing activity. Consumer needs and preferences should be understood properly. The negative attitude towards the object should be changed to positive. In case of paints also, the marketer should understand consumer needs and preferences in order which change the attitudes in favorable manner.

ATTITUDE CHANGING STRATEGIES

1. Change the Affective Component: Classical Conditioning Affect toward the Ad More ExposureAttitude Change Strategy Focusing on Affect

2. Change the Behavioral Component: Attitude Change Strategy Focusing on Behavior

3. Change the Cognitive Component Change beliefs Shift importance Add beliefs Change Ideal

SWOT ANALYSIS

Strengths:

ASIAN believes that Asian Paints India strengths include its well-established brands and the global nature of the business which allow ASIAN Paints to use its resources, expertise and experience to offer the best solution for each local market and the needs of the end users. Great presence in places that the brand is better recognized and has a good customer base. A well Established Brand

Asian Paintscelebrates its productions Silver Jublee this year. Even after 25 years of produc-tion, it has never needed to re-brand itself. The USP of the product is so strong and has a great credibility for the consumer. A quality innovation driven attitude has kept the brand still alive and on the top of the mind recall of most of its existing and prospective consum-ers. Strong Brand Image

Asian Paintsis has maintained an im-age of being the most expensive in the category along with providing the best quality among its competi-tors. With the help of a lot of promotional activities for its dealers as well as consumers, it has earned a great amount of goodwill over the years. There is a lot of recall when it comes to Velvet Touch, when-ever someone thinks of paints and pearl glow finished he necessarily has to be thinking about Asian Paintsonly. Quality driven

While its competitors concentrate more on va-riety and mass production and a lot of other different strategies, the company is essentially a quality centric company. This has helped the company grow and sus-tain its brands

First Mover AdvantageAsian Paints as a brand has been aounrd for more than two decades and the only competition it be-gan facing was only a decade after they launched the smooth finish technology. This in itself help strength-en the credibility of the brand promise and now it is.Weaknesses:

No Innovation in productsOne of the major downfalls of the company is that, ASIAN has not innovated in technology and market-ing over the years. Being one of the oldest and the globally trusted brand it has not changed with time. This change which is very cardinal for every compa-ny to grow over the years is non existent in Dullux.

Weak DistributionAsian Paints as a brand does not make an effort to penetrate and create a stronghold not only inn the cities but the rural areas as well. The distribution concentrates only on the developed areas of the country which is only about 30% of the total population of India. Comparing its aggregate sales with its competitors in India, Dulux needs to widen the distribution in areas which are developing as well as rural.

Concentrating only on dealer related marketingAccording to Velvet Touchs Regional Sales Manager Mumbai, the important thing for them is the dealers. The end users are no their target. Asian Paintsmarketing takes only dealers into consideration. The company does not want to convert the product into a high involvement product. This factor, today, has gravely affected the brand presence as well as the credibility of the brand among the consumers.

Depending on previously established GoodwillAsian Paints has not evolved with time. The company also does not believe that they need to rebrand themselves and also bring back the brand at

Opportunities: Greater Penetration

One of the biggest opportunities ASIAN has in India is to become the positioned leader in all parts of the country. At present, there is very less penetration of ASIAN brands in the rural market. ASIAN could reap great profits coming from the rural areas as well.

Better Brand Presence

With a great stronghold among the existing dealers in major cities, there are chances of Asian Paints becoming an unmatched and better known brand among competitors. With a better strategy and substantial goals a better brand presence can be built for Velvet Touch.

Real Estate Boom

The real estate boom which is gaining momentum by the day, is a great boon to the entire paint industry. This would actually be a good opportunity for all of the industry to cash in on their profits.

Consumer InvolvementWith increasing direct contact with the consumer, there are more chances of the paint brands to gain a lot of momentum and make their mark in the consumers minds. More and more paint products are repositioning themselves and making their marketing strategies more appealing to the house owners rather than the contractors. This ensures the consumers total involvement in the decision making.

Threats: Reaching Brand Graveyard

One of the threats Asian Paints could face is the brand graveyard. When it comes to recall Asian Paints on its own has a lot of credibility, but some-times by a layman it is mistaken as an Asian Paints brand. This is very dangerous for the brand loyalty of Velvet Touch. This trend may even end up in making only the brand name generic like Bisleri (a name given to any mineral water bottle brand now) in India. This practice of a lot of painters and people who are unaware of the market would prove to be very dangerous for Velvet Touch.

Tag of a Tired Brand

Asian Paints has been a strong contender in the market for a long time now but is loosing its grip now. This according to a lot of brand valuation processes is a sign of a tired brand. Tired brands usually wear out and do not bounce back up. Once the tag of a tired brand is given, the brand will immediately loose all credibility as well as loyalty.

Loss Of Loyal Customers

Because Asian Paints is one of the oldest and one of the most bankable brands in the market today, it has a lot of demand as well as appeal among consumers. With a lot of innovations and a lot of movement in the market, the loyal consumer might just get inquisitive and opt or a competitor brand. A study shows that most loyal brand users opt for new brands because boredom sets in and change seems to be a great option.

Possibility of Running out of FashionNew trends keep coming up and they have a lot of impact on the consumption patterns of people. Moods and a lot of other factors also are taken into consideration when it comes to choosing consumer goods. With so many different innovations and finishes launching in the industry, a consumer is very prone to get deviated from his original choice. This deviation influences the consumer to try out a new product which has an element of surprise in it as well.

Brand BenefitInitially Royale positioned itself as an Elite brand, it has built a sense of confidence in peoples minds. A sense of assurance that this brand ensures optimum quality is embedded in peoples minds. More than anything else their marketing and distribu-tion has ensured that when people think of paints they think of Asian Paints.

ConsistencyWhen Asian Paints Royale first launched its quality was not appreciated for cost it was being sold. There were problems and the brand had no takers then. Later in the year 2000 when Royale was reposi-tioned in a new and with a different outlook, the sales sky rocketed to the top instantly. There have been no complaints ever since the product was re-launched. With a great customer service center set up nationally, Asian Paints has also made itself a leader in customer satisfaction and consistency. From the retailers point of view also the service is impeccable, in most parts of India they have a three hour order settle time and in case of any grievances the sales officers at the dis- trict dispatch centers take personal care of the same.

Co-Ordinated MarketingAsian Paints follow an open market policy, they do not believe in the classical distribution pat-tern. It has a lott of loop holes according to them. The point of interaction of the retailer and the company is direct which makes each dealer feel secure about the authentAsianty of the services provided to him. A distribution led company has to have a strong hold on each and every nook and corner of the market. That is what 18000 retailers are present for in India. In every metro there are two main warehouses from which supply is dispatched to all the retailers within the city. Asian Paints have recognized their end user properly and therefore pay more attention on the local Naka Meets which happen every week in small Paint hubs in the cities. For example South Mumbai has 4 paint hubs, they are CP Tank, Tardeo, Sewri and Dadar. Every week contractors and small time painters and artisans come together for getting small jobs and contracts for the week. When retail-ers are given better schemes they promote the prod-ucts better and sell them more. Asian paints has set schemes and is not flexible in making exceptions for retailers.

Data Analysis & Interpretation1. Which company are you dealing with?

Asian35%

Dulux 30%

Berger25%

Other 10%

It is the evident from the above pie chart, maximum sub-dealers are selling Asian Products in Mumbai market.

2. What is the region for selling a particular paint companies product ?

Advertisement15%

Quality30%

Name of Brand25%

Cost effectiveness20%

Others10%

It is evident from the above pie chart, the maximum sub-dealer like to sell paint products having good quality, Name of brand, low cost and advertisement in Mumbai market.

3. Which brand is highest selling in your counter ?

Interior60%

Exterior40%

Is shown the above pie chart that 60% of the sub-dealer said Interior paint and 40% said exterior paint are highest selling.

4. What is your source of purchasing product ?

Dealer70%

Company25%

Both5%

In the above pie chart most sub-dealer i.e. 70% purchasing paint product from Dealers, 25% purchasing direct from company and 5% purchasing both dealer and company.

5. What is your expectation for taking the dealership of any company?Easy delivery20%

% of margin34%

Both36%

Other10%

In the above pie chart 36% sub-dealer tell Easy delivery and %of margin both the expectation of taking dealership in Mumbai market.

6. Are you interested for taking dealership of Asian Paints ?

Yes60%

No40%

In the above pie chart 60% sub-dealer wants to take dealership in Mumbai market.

7. Which type of advertisement is useful?

Radio5

Television50

Poster15

Newspaper10

Company5

Others15

In the above pie chart 50% sub-dealer told television advertisement in useful.

8. Are you satisfied with Asian Paint Service?

Yes70%

No30%

In the above pie chart, most of the sub-dealers i.e. 70% are satisfied with Asian Paint service.

9. What is the response of Asian Paint amongst consumers ?

Good10

Satisfactory65

Excellient25

In the above pie chart,65% consumer are said its satisfactory & 25% said excellent

.

10. Does your shop gets visited by companies sales personnel?

Yes40%

No60%

In the above pie chart, most of the sub-dealers i.e, 60% are the companies personnel do not visit for sub-dealers counter.

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