Asian Paints

Branding 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.
 RESTRUCTURING OF THE
BRAND

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.
 BUILDING OF A NEW PRODUCT
PORTFOLIO
 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.
 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 the
 Country
 Royale Luxury Emulsion
Economy-
 ‘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.
CUSTOMER-FRIENDLY & SERVICE
ORIENTED
 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.
 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 Middle East

Bahrain, Egypt,
Barbados, Jamaica,
Oman &
Trinidad & Tobago.
United Arab
Emirates.

South Pacific South East Asia

South Asia China, Malaysia,

Fiji, Tonga,
Vanuatu, Solomon & Singapore & Thailand.
Samoa Islands. Bangladesh, Nepal
& Sri Lanka.
 ASIAN PAINTS-TODAY

India’s Operates Asia’s

largest in 21 third
paint countries largest
company with 29 paint
paint mfg. company
with
facilities and
market
with leader in
capital of capacity of 11
14,000 cr 420 mn. countries
Lts/annu .
m.
 COMPETITORS

Market Share in India

Sh
al
im
ar
4%
ts 37%
pain
an
Asi
8%

Goo
3.
15.9
1
ts

d
n

%
lass
P ai
er

Ner
rg
Be

olac
 FINANCIAL ANALYSIS
Rs. In crore
4500 Gross Sales
4059.9
4000

3500 3360.7

3000 2777.4

2500 2338.8
2025.9
2000

1500

1000

500

0
2003-04 2004-05 2005-06 2006-07 2007-08
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.

Assetting 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