Beruflich Dokumente
Kultur Dokumente
Submitted By
Abhishek Jagwani
(Roll No.10)
Under the Guidance
Of
Sidharth Arya
Territory Sales Officer
Asian Paints
Submitted to
Prof: Rupali Rajesh
INDEX
Sr No.
Particulars
1.
Introduction
2.
3.
Competitors Analysis
4.
Customer Analysis
5.
Marketing Strategy
6.
Segmentation
7.
Targeting
8.
Positioning
9.
10.
11.
12.
Learning
13.
WeBliography
14.
15.
Page No.
INTRODUCTION
Asian Paints is Indias largest paint company and Asias third largest paint company, with a
turnover of Rs 77.06 billion. The group has an enviable reputation in the corporate world for
professionalism, fast track growth, and building shareholder equity. Asian Paints operates in 17
countries and has 23 paint manufacturing facilities in the world servicing consumers in over 65
countries. Besides Asian Paints, the group operates around the world through its subsidiaries
Berger International Limited, Apco Coatings, SCIB Paints and Taubmans. The company was
incorporated in the year 1942 in India. Asian paints have extensively computerized its operations
in India using the cutting edge solution provided by SAP & i2. Decorative paints include wall
finishes for interior and exterior use, enamels, wood finishes and ancillary products, such as
primers and putties. Industrial Coatings comprise high performance coatings, powder coatings
and auto refinish coatings. The automotive coating segments are catered to by the joint venture
Asian PPG Industries Ltd. The Company also has chemicals businesses consisting of phthalic
anhydride and pentaerythritol manufactured at Ankleshwar, Gujarat and Cuddalore, Tamil Nadu,
respectively.
It also introduced many innovative concepts in the Indian paint industry like Colour Worlds
(Dealer Tinting Systems), Home Solutions (painting solutions Service), Kids World (painting
solutions for kids room), Colour Next (Prediction of Colour Trends through in-depth research)
and Royale Play Special Effect Paints, just to name a few. Asian Paints has always been ahead
when it comes to providing consumer experience. It has set up a Signature Store in Mumbai
where consumers are educated on colours and how it can change their homes.
PAINTS
Companys paint business in India consists of decorative, Industrial & Automotive coating. In
2005-06, these accounted for 79.1% of the group sales. It is estimated that the local market for all
paints including cement paints & other powder products manufactured by all companies big &
small would have been around Rs.95 billion in 2005-06.
1.
Decorative paints
Decorative paints account covers almost 75% of the overall paint market in India. In this
segment Asian paint has been a leader for almost four decades. Decorative paints include wall
finishes, for interior & exterior uses, examples, wood finishes & ancillary products such as
primers, putties, etc.
2. Industrial coatings
Industrial coatings have a moderate growth rate than decorative coating, led by the growth in
automotive original equipment sector, powder coatings & protective coatings. Industrial coatings
are classified into automotive & non-automotive coatings are classified into automotive & nonautomotive coatings. While Asian paints Industrial coating Ltd. (APICL) services the powder
coating segment, Asian paints Ltd. caters to be remaining non-auto industrial coatings segments.
3. Automotive Coating
The actual look and feel of a vehicle undergoes a sea of change over time. The paint on a vehicle
loses gloss, is subjected to a lot of wear and tear and hence starts deteriorating. Asian Paints is
not having a very good market share in this segment.
CHEMICALS
Asian paints have chemical business consisting of Pthalic Axhydride & pentaerythritol manufactured at
Ankleswar, Gujrat & Cuddalore, Tamilnadu.
Benefits of CRM
1) Reduced costs, because the right things are being done (ie., effective and efficient
operation).
2) Increased customer satisfaction, because they are getting exactly what they want (ie.
3)
4)
5)
6)
7)
8)
Asian paints limited with its three business units decorative, Industrial & International business
is one of the largest paint company in India. It had a sell over 300 million liters of paint in 20092010. Significantly the group has crossed the Rs.3000 Cr turnover mark-a preset mile stone for
the company.
Here we will be analyzing two situations of the company
(i)
Competitor analysis
(ii)
Customer Analysis
1. Competitor Analysis
The Indian paint market is highly saturated with many paint companies with varieties of product.
Asian paints ltd, Kansai Nerolac paints Ltd. Berger paints India Ltd. ICI India Ltd. Shalimar
Paint Ltd, Snowcem India Ltd are the market leaders.
Here we are only considering the nearby competitors of Asian Paints which are Nerolac paints
Ltd, Berger paints Ltd & Indian chemical Imperial (ICI) Ltd.
SWOT analysis of Asian paints & its competitors:
COMPANY
Asian Paints
Nerolac paints
Berger
paints
ICI paints
Strengths
1. Market leader in
1. Well ahead
1. In the IInd
1. In the
overall paint
leader in
position in the
refinishing
market & in
Industrial paint
industrial paint
business it has
decorative paint
market
sector.
2. Tie-up with
2. Tie up with
kansai paints
Herbert-
2. Available in
provides foreign
Germany
2. In decorative
technology.
valspar of US
paints it
3. High Quality
3. Main supplier
& Teodor NV
performance is
MR & MIS
in the Indian
of Holland
good
market in India
share 40%
4. Pricing policy
oriented to all
kinds of customer
quality refinish
paint for cars.
Industrial &
3. recently
automobile
purchased 49%
market main
share of Quest
client Maruty
Udyog
Weakness
1. Industrial paint
1. Market share
1. Overall
1. Industrial paint
in decorative
market position
market existence
share
paint market is
is not very
almost 2-3%
very low.
impressive.
2. No tie up with
foreign
manufactures.
area is poor.
Through it has
units in several
countries.
3. Considering
overall paint
market Asian
2. Overall market
conduct poor.
& Nerolac
paints
capturing the
market buyer
for behind
3.Innovation in
paint is well
developing new
ahead of
product.
Nerolac.
1. Acquiring/
1. Improve its
1. come up
1. Merger with
Increasing market
position in
with new
Quest will
share in Industrial
decorative paint
innovations to
provide to have
Opportunitie
paint sector.
segment.
2. Developing
2. Capturing
market in
whole industrial
automobile
paint market
particularly in
UK.
industry, which
accounts for 50%
of Industrial paint
market.
1. Domination of
1. Asian paints is
1. Asian Paints
few foreign
coming up
& Nerolac
countries
new entrants in
industrial paint
the market.
paint is
competing
products
nearly
2. Nerolac is
Threats
advancing rapidly
in Industrial
market
2. Customer analysis
Asian paint with its natural competitive advantage of size (Number 1 in India), Strong brand
equity & largest distribution Network has acquired the number one position in Decorative
segment in India.
There are few reasons due two which the customers in the decorative segment has been choosing
Asian Paint as their brand
1. As we know brand name has its own value & Asian paint is the number one in decorative
segment, so a purchaser automatically leans in purchasing it.
For example, we have two different types of paints, namely Apolite glass Aenamel &
Apolite care Emulsion, which are from Asian Paints, Nerolac paints, Berger paints & ICI
paints. Again due to the competitive market the price is very closed for all the companies.
But due to the Branch awareness of common people they mostly tend to purchase the
products from Asian paints.
2. Company have provided with different varieties of product for different income groups.
For e.g. UTSAV which is a low value paint, is growing at a faster rates & penetrating
with high speed at the lower income group. This policy is helping the company to move
from metros to small towns for branded products.
3. In India frequency of painting has still not increased, which is once is 5 years only. So
consumers are normally changing over to the better quantity & branded paints.
4. In 2001, Asian Paint launched a new product Tractor Emulson, which pulled the
customer who used distemper to move to emulation paints.
Nerolac paints being widely used in Industry it has a greater share price value. Industries like
Bajaj auto limited, Maruti Udyog & many other car manufacturing companies use Nerolac paints.
The Industrial paint are priced with premium in comparison to the decorative paint which is
mainly used in house hold decoration.
Berger paints & ICI paints are also providing a shift competition to Asian Paints in decorative
paint, but still there is no sign of threat from them.
Again in the Industrial sector Nerolac paint far ahead of all its competitor. Asian paint presently
building up a new manufacturing unit solely to produce Industrial paint.
Asian paints annually spends on an average Rs325 Cr on its selling & marketing expenses. It
givers us an idea about the effort the company put on expanding its market in all segments.
When customers buy the products of Asian paints As the customers normally uses the products
of Asian paints on certain occasions like. Marriage ceremony, Dewali or any other special occasions,
other than normal paint in houses, customers are very choosy & brand specific. This appreciation by the
customers helped Asian paints to become the number one paint company in India
The prospect of a paint company has many dependence like weather, occasions like puja, id etc.
when we consider the decorative segments. So there is always a possibility of ups & downs in the
business. Besides this there is another very important factor i.e. the position of the competitor. Through
Asian paints is the largest paint company still under circumstances it will have to go for some strategy
alternatives.
Alternatives available
1. As Asian paints market is mainly the decorative segment so a downfall in that market will lead
the company in trouble them it immediate focus will turn to the Industrial segment.
2. Importance on water based paints may recover a poor situation created due to sustain poor
weather condition in some region.
3. As there is every possibility that conventional coatings are likely to lose some share ecofriendly
coasting is going to be very good alternatives.
4.
With all countries in southeast Asia beginning to adhere to the ASEAN free trade Area (AFTA)
that will reduce trade barriers for paints & coatings. A reduce in domestic market share of Asian
paints then will not be a constant for growth, became export of paints to the foreign countries will
contribute a lot.
5. Increasing the product package & application oriented service will make company different from
others.
6. A strong post sales service division will be an important factor in building customer loyalty.
7.
Lastly but not the least price of oil is increasing day by day, which results to increase the price of paints.
If this can be controlled by stocking oil or directly linking up with foreign cheap refineries so as get oil at
least available price.
Decorative (ii) Industrial (iii) Automotive. Their customers are all also segmented based on the usage of
these products.
CUSTOMER SEGMENTATION
Base
Decorative coating
Premium
Industrial coating
Medium
Popular
High
Automotive coating
Powder coating
performance
Quality
Finished
coating
coating
coating
Buyer
characteristic
Up
market
High
Middle
buyers
income
class
achiever
group
Key
purchasing
factor
Research &
Used
petrochemicals &
manufacturers
rural
atomic
Upper
market
installations
fashion
middle
mostly
mainly
Secker
class
low
where to reduce
Socially
income
corrosion
conscious
group
losses
Quality
Quality
Cost
Quality
surfaces
surfaces
influences
shades
quality
&
&
&
Used by fertilizer
by Large
other
cars
small scale
are mainly
car
recoloured
industrial
industrial
mostly tied
products
up
led
&
& Old
companies
utilization power
Quality,
Brightness
surfaced &
& cost
conting
strength
Brand loyal
Brand loyal
+ Cost
Evaluation
Cost
Utility
Variety seeking
Brand loyal
Cost+
variety
variety
seeking
seeking
Purchase
Companys
through
Packet or
Company
Authorised
dealer paint
paint can
approaches
dealer paints
or
points
the
purchasing
sold
customer
paint
com
&
Other
Tie up with
Old
manufactures
the
vehicles
anto
company
send
to
work shops
or purchase
house
of 1,2, 5,
10, litre
Post
Purchase
A warranty Limited or
No
High scale
Medium or no
Service
Service
period
warranty
service of
warranty
provided
provided
for limited
for 0-2
years
years.
for
no warranty
some years
Market
warranty
50% share
there
TARGETING
Asian paints have a unique customer targeting strategy. They used to follow V tier customer Target
strategy.
Tires
Tires 1
Tire 2 Tire 4
Tire 3
Tire 1 - In the recipient end there are strategic solution seekers. Company thinks of cost reductions,
performance & productivity improvement for clients improving customers & share holder profitability.
Tier 2 Here the Customers whom can be considered as the value or brand sensitive. Asian paints target
this customers with value added VDS integration customer level service.
Tier 3 These part of the consumer are price sensitive. They least bothered about the service. These are
mainly middle or low income group people Asian paints have several brand like UTSAV to serve them.
Tier-4 Here the company targets the small manufacturing & local companies, which can generate revenue,
company utilizes its & business & telesales technology to address & satisfy their needs.
Tier-5 This tier is composed of specific targeted companies that although small in size, deserve special
attention because they are highly innovative in nature. Asian paints have a good prospect over here.
Although operating in commodity market. Asian paints have invested heavily in branding,
GATTU, the Asian paints official Mascot is a familiar icon across India. The company recently
augmented their web pressure. Their website, Asian paints.com is an exhaustive hub of Painting
solutions. The site use Maximum interactivity to enhance user experience. There are painting lips, online
shades cards, cost calculation (based on floor area and number of rooms0 dealer locator and a short of
other innovative services.
From the perceptual map we can understand that Asian paints, have wider range of products for all type of
customers consisting of different income levels. It has a product range from Royal Emulsion, Priced 250400 which is targeted for up market buyers. Hpcolilen is a product which is targeted for high income and
upper middle class people. For lowers income group it has UTSAV, TRACTOR EMLSION which priced
vary from 40-100 Rupees. These products are mainly targeted to rural customers.
In Industrial segment companies position is relatively weak here Nerolac paints captured more
than 50% market share. In this segment Asian paints have products like Apcomin synthetic enamel which
is used for industrial coating, and Apco synthetic power which is used in automobile sector. In this
segment also Asian paints faced stiff competition from Berger and ICI Paints. Bajaj automobiles is the
main customer of Asian paints in automotive sector.
PREMIUM PRICE
ROYALE
INDUSTRIAL
PAINTS
Key Challenges
A Fresh Approach to the Customer Experience
In 2001 Asian Paints executives realized that the firms long term growth depended on their ability to
forge ever-closer ties to the end consumer. At the same time, the Asian
Paints help line had received calls from these consumers expressing a need for a more complete solution
to their home painting needs and Asian Paints learned that they had demanding expectations when it
came to service and overall project execution. But because the company sold its products through a
network of dealers, it lacked visibility into the entire painting process and the needs of the homeowner.
This situation prompted Asian Paints Executives to explore ways to establish a more direct link to the end
customer.
Implementation Process
In launching its new service business, Asian Paintss key objective was to deepen its ties
to the end consumer.As a result, the CRM system needed to offer visibility into all
customer interactions and financial transactions. At the same time, this system would
standardize business processes at each stage of a painting job. Thanks to the
implementation of SAP CRM and the custom solution, processes were optimized in the
following areas
1) Financial controls
There is now greater transparency into all financial transactions from billing and collections to
contractordealer payments.
2) Sales delivery
Asian Paints standardized the sales delivery processes to be followed by each provider. Since the
sales delivery process can be lengthy, the system allows Asian Paints to monitor the quality of
service its customers receive from the start of a project to its completion.
in the development of predictability models, among other activities. And because this data is
available in real time, reports can be generated instantaneously.
Customer
Interaction
Center
Lead Details
SOA, and so on
Reports
SAP CRM
Asian Paints
Home
Solutions
Business
SAP
NetWeaver BI
Web-Based System
Via Internet
Relationship
Associate
Applicator
Sales
Associate
Close collaboration between Asian Paints and SAP resulted in adherence to tight schedules. The SAP
Customer Competence Center location in Singapore developed prototype scenarios specific to Asian
Paints, and SAP Labs made valuable contributions to the design and configuration of the custom solution.
Asian Paints has made clear gains in achieving its long-term goals, as follows.
Revenue
In the four years since the implementation went live, 17,500 persons registered for Asian Paints Home
Solutions consultations, and of these, 5,000 signed up for painting jobs. Targeted revenue for the period
2006 2007 is US$8 million to $10 million, and the company crossed the 30,000 mark in cumulative
number of customers.
Scalability
This new solution can accommodate Asian Paints continued growth well into the future. In fact, Asian
Paints doubled the number of cities covered without modifications to the CRM system.
Processes
Area
Problems
After SAP
Software
Impact
Financial
Controls
Inability to monitor
financial transactions
between providers and
customers
or between providers and
contractors
Sales delivery
Customer data
management
Ordering and
accounting system
used by all
providers
Accounting transparency
Optimized financial process
controls Improved data
transparency.
Improved customer
satisfaction
Reduced time required to
service customers
Created a direct channel to
customer
Increased employee
Productivity
Improved customer service
Improved customer
acquisition and retention
management. Through its implementation of SAP CRM, Asian Paints has established a
direct link to its end customers, and put in place processes to ensure that their high expectations will be
met. In an effort to realize an even greater return on its IT investment, Asian Paints used its SAP CRM
infrastructure to develop an e-recruitment platform. This platform allows employment agencies to review
openings and upload job candidate information, reducing the time required to fill open positions.
In the future, Asian Paints plans to leverage its SAP CRM investment in the following areas:
Campaign management
With improved customer intelligence, Asian Paints now plans targeted campaigns to its customers.
Complaint-handling system
Asian Paints plans to develop a formal complaint-handling system to tackle customer problems with both
service and paint. By having selected a scalable system such as SAP CRM, Asian Paints has laid the
foundation for its long-term growth.
Learning
Asian paints have increased the capacity by setting up a plant in Rohtak Haryana. No other company has
planned to increase its capacity; this has given Asian paints a competitive advantage in terms of pricing. It
has widest product range in terms of products, shades , pack sizes and their pricing strategy is oriented to
middle and lower end consumers. Asian Paints is a market leader with more than 50% market share.
SAP CRM enabled Asian Paints to build a service brand through Asian Paints Home Solutions. With its
scalable CRM infrastructure, Asian Paints is poised to continue its expansion into the services market.
WEBILOGRAPHY
1)http://www.asianpaints.com
2)http://www.sdn.sap.com