Asian Paints: Royale

Luxury Emulsion
4 P’s Of Marketing
 Introduction
• 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."
• Mission

Asian Paints aims to become the largest decorative
paint company in the world and to rank among the top 5
paint manufacturing companies of the world.
•
 Introduction
• Asian Paints is India's largest paint company and the third
largest paint company in Asia today
• It’s a 3000 crore Indian MNC and is amongst top 10
decorative paint companies in India.
• Asian Paints operates in 22 countries and has 30 paint
manufacturing facilities in the world-servicing consumers
in over 65 countries.
• Forbes Global magazine USA ranked Asian Paints among the
200 Best Small Companies in the World for 2002 and
2003 and presented the 'Best under a Billion' award, to
the company.
• Asian Paints has a 50:50 joint venture with Pittsburgh Paints
and Glass Industries (PPG) of USA, the world leader in
automotive coatings, to meet the increasing demand of
the Indian automotive industry - www.asianppg.com.
• Asian Paints Industrial Coatings Limited has been set up to
cater to the powder coatings market which is one of the
fastest growing segments in the industrial coatings
market.
 Asian Paints


 PRODUCT MIX



PRODUCT
 PRODUCT MIX

1 . DECOPRIME 1 . ROYALE LUXURY 1 . APEX 1 . APCOILITE 1 . PU WOOD

SYNTHETIC CEMENT EMULSION EXTERIOR PREMIUM GLOSS FINISH
PRIMER - ST 2 . PREMIUM EMULSION ENAMEL 2 . AP
2 . DECOPROME EMULSION 2 . APEX 2 . APCOLITE MELAMYNE
SYNTHETIC CEMENT 3 . TRACTOR TEXTURED PREMIUM SATIN 3 . TOUCHWOOD
PRIMER – WT EMULSION
3 . TRACTOR OIL 4 . INTERIOR WALL EXTREIOR ENAMEL 4 . APCOLITE
PRIMER FINISH EMULSION 3 . GATTU CLEAR
4.METAL PRIMER 5 . AP INTERIOR APEX ULTIMA ENAMEL SYNTHETIC
CORRSION RESISTANT WALL FINISH EXTERIOR 4 . UTSAV
5 . AP ACRYLIC WALL 6 . TRACTOR EMULSION ENAMEL
PUTTY ACRYLIC 3 . ACE EXTERIOR 5 . APCOLITE
6 . APCOLITE KNIFING DISTEMPOR EMULSION HAMMERTONE
PASTE FILLER 7 . AP TRACTOR 4 . EXTERIOR 6 . 3 MANGOES
7.ASIAN NC CLEAR SYNTHETIC WALL PRIMER ALUMINIUM
WOOD FILLER DISTEMPOR 5 . EXTERIOR PAINT
8 . APCOLITE 8 . UTSAV ACRYLIC SEALER
UNIVERSAL STAINER DISTEMPOR
9 . APCOLITE WOOD 9 . UTSAV
STAINS DISTEMPER
 Market Share of Decorative
Segments

DECORATIVE SEGMENT

Others 19% Asian Paints

Shalimar 6% 38%

Jenson and
Nicholson
5%
Kansai
ICI 9%
Nerolac 14%
Berger paints
9%
 Asian Paints: Royale Luxury
Emulsion
4 P’s of Marketing


 PRODUCT



 PRODUCT

• Asian Paints Royale Luxury Sheen Emulsion is a water-based, 100% acrylic, interior wall
finish.
• Royale provides a silky sheen finish which lends a soft regal glow to the interiors of the
room.
• Royale has excellent flow giving a near brush mark free finish.
• Royale 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
Attribute properties.
Asian Paints
Coverage 325-350 Sq. ft/Lt

Drying time 15-20 min

Gloss Soft Sheen
Shelf Life 3 Yrs
Stability of Use within 24 Hrs.
Thinned Paint
 Product

• Line Stretching:
– Up Market Stretch: Royale Play
– Down Market Stretch: Royale
Shyne
–
Asian Paints, 4 P’s of
Marketing


 PRICE


 Royale Luxury Emulsion




 Pricing

• Royale luxury Emulsion is placed

as a luxury emulsion.
• Pricing strategy adopted is value
based pricing.
• Price range 4638-4975 for 20Lts.
•
 Pricing
Attribute Comparison
Attribute Asian Paints ICI Velvet Nerolac 24
Royale Touch carat
Impression

Coverage 320-350 sq. 300-325 sq. 220-240 sq.

ft/Lt ft/Lt ft/Lt
Drying Time 15-20 min 20-25 min 30 min

Shelf Life 3 Yrs. 2 Yrs. 1 Yrs.

Value BEST GOOD AVERAGE

Addition
Asian Paints, 4 P’s of
Marketing


 PLACE


 Royale Luxury Emulsion




 PLACE

 Extensive distribution network

of:
– 4 Manufacturing units
– 6 Regional distribution centers
– 55 Depots
– 15,000 Dealers(Urban + Rural)
– 90,000 Sub Dealers
 Exclusive 3000 Asian Paints
Store.
 PLACE

• AP bypassed the bulk buyer segment and

went to individual consumers of paints.
• AP went slow on urban areas and
concentrated on semi-urban and rural
areas.
• AP went retail.
• AP went in for an open-door dealer policy.
• AP voted for nationwide marketing /
distribution.
•
 Promotion Mix

• Advertising
• Public Relations
• Sales Promotion
• External Communication
• Events and Exhibitions
•
 Promotion Mix
Advertising: Electronic Ad’s
• The promotional strategy adopted by Asian is quite
unique. The company is using high profile brand
ambassadors like Akshay Khanna, Saif Ali khan &
Soha Ali Khan” to promote Royale Luxury
Emulsion.
 Promotion Mix
Advertising: Electronic Ad’s

• Some other Ad includes:

Promotion Mix
Advertising: Print Ad’s
 Promotion Mix
Public Relation
• PR activities does not work in isolation.
•
• Asian Paints merges its Events and PR activities.
•
• It hosts innovative events like the launch of Colour
Next 2009 as to attract the media.
•
• Moreover Asian Paints Celebrated Colour Week
which attracted media coverage for a whole week
 Promotion Mix
Sales Promotion
• VIA Dealers Meeting (quarterly).
• VIA Painters Meeting (annually).
• VIA incentives to Painters(Token
Exchange, Cash in the Bucket).
• VIA Privilege Club Members.
• VIA distributing merchandise to
painters such as T-shirts, caps
etc.
 Promotion Mix
External Communication

Home Solutions

Colour World

Online Consultancy

Helpline

Estimate Calculator

Paint Selector
Promotion Mix
External Communication
 Promotion Mix
EVENTS

• Asian Paints Sharad Shamman

• Sponsored Star Screen Awards
from year 2000-2004.
•
 PRICING

1. AP BYPASS THE BULK BUYER SEGMENT AND

GOES TO INDIVIDUAL CONSUMERS
 Bulk buyer segment was the major segment of the paint
business in the earlier days and any paint company needed a
share of this major segment for sheer survival. Though, this
segment was dominated totally by foreign companies and their
wholesale distributors, a new entrant to the business like AP
would normally have rushed to this segment and tried to garner a
share of it. AP, however, had a totally different game plan.
Seeing that this segment was not a growth segment, though it
was certainly the major segment at that point of time, AP decided
to ignore this segment for the present and go to individual
consumers. And that was a crucial decision. It influenced every
subsequent decision AP took in the realm of distribution. Over
time, AP proved to the paint industry that there existed a large
and bottomless segment in the paint business of India, outside the
bulk buyer segment, comprising of individual consumers.
 PRICING

 2. AP went slow on urban areas and

concentrated on semi-urban and rural areas.
 



Along with the decision to go to individual consumer
segment leaving aside the bulk buyer segment, AP also decided
that within the individual consumer segment, semi-urban and
rural areas would constitute AP’s priority market.APclearly saw
that a large market for paints was emerging in the semi-urban
and rural areas, and felt it wise to tap this market. AP found it
difficult to attract the wholesalers in the cities to deal in its
products. It had to necessarily turn to the semi-urban and rural
areas for support. AP wisely decided against committing all its
resources on a head on collision by launching its own Sales Force
who will to the ground level .
 .
 PRICING

 3. AP GOES RETAIL
 Going directly to retail dealers was the next major strategic
decision of AP in the realm of marketing and distribution. Here
too, AP totally broke with the prevailing distribution practice. The
foreign companies, who were the main players, were practisinga
wholesale distributor-dependant marketing system. AP did not
see any great merit in the system. It totally bypassed the well-
entrenched wholesale distributors and went directly to the
retailers. While AP’s competitors remained content with their
linkage with a handful of wholesale distributors, AP preferred
direct contact with hundreds of retail dealers.
 PRICING

 4. AP GOES IN FOR AN OPEN-DOOR DEALER

POLICY
 AP followed an open-door policy in the matter of adding
retail dealers to its network. The prevailing trend in those days
was to limit the number of dealers to the barest minimum. AP
broke this trend and chose to use practically everyone in the
trade, who was willing to function as its dealer. It was as a
combined result of the policy of going directly to retailers and the
policy of open door to dealership that AP’s dealer network swelled
rapidly. Even after achieving stability and maturity in distribution,
AP continued to follow a policy of continuous expansion of dealer
network. By 1990, AP was having a 7,000 strong dealer network.
By the year 2000, the number had swelled to 12,000. And even
now, on an average, AP is adding 200 to 250 new dealers every
year.

 PRICING

 5. AP VOTES FOR NATIONWIDE MARKETING/

DISTRIBUTION
 AP took yet another important and strategic decision in the
realm of distribution. Those days nationwide
distribution/marketing was not the standard practice in the paint
business. On the one side, there were the 1,000 odd small paint
companies who, as a class, believed in marketing their paints in
limited territories in and around their point of production. On the
other side were the big companies, who as a class, believed in
limiting their distribution to the big cities. In contrast to both
these existing practices. AP voted for a nationwide
distribution/marketing. It wanted to have an active presence
throughout the country, in all the geographical zones, states and
territories.
