ASIAN PAINTS
THE MARKET LEADER IN INDIAN PAINT INDUSTRY
SUBMITTED BYJAYANT KUMAR BM-09086 MAYANK JAGGI BM-09105 NAVNEET KUMAR BMNAVEEN PANDAY
PAINT INDUSTRY IN INDIA
Setting up of Shalimar paints in 1902 in calcutta.
An important sector in the national economy.
Decorative paints account for 70% and Industrialized paints share the balance of 30%.
Indian paint industry is at the cross roads.
MAIN MARKET PLAYERS
Asian paints ltd.
Dulux paints ltd. Berger paints ltd.
Nerolac paints ltd.
Shalimar paints.
ASIAN PAINTS
It
is Indias largest paint company ,operating in 21 countries , serving in 65 nations.
Asian
paints is only paints company recognized by Forbes magazine.
Asian
paints started in 1942.
Besides Asian
the group operates in world through its subsidiary Burger international , APCO, SCIB and Taubmans.
ASIAN PAINTS
Market leader with 33% share in the paint market.
Largest brand equity. Largest distribution network.
Dominates the decorative segment with 38% market share.
Manufacturing facilities at 4 locations. SKUs - 2800
DISTRIBUTION STRATEGIES
Distribution outfit Mixing at retail outlet automated machine Targeted the individual consumers of paints Concentrated on semi-urban and rural areas Went retail An open-door dealer policy
PORTERs 5 point model ANALYSIS
THREAT FROM SUBSTITUTE PRODUCT
Price
elasticity lead to high risk from substitute products, as lime wash
THREAT FROM NEW ENTRANTS Low capital intensive and minimum government interfernce lead to low entry barrier
Additional threat from foreigner player setting up base in india
BARGAINING POWER OF SUPPLIER Major raw material being crude based ,supplier have more control over price BARGAINING POWER OF CUSTOMER Low bargaining power of customer
INTERNAL MARKET ENVIORNMENT
Market
size Rs.112 billion
Dividend
among organized player 65% and unorganized 35%
Organized
market control by 5-
6 player
Market
seasonal in nature
RECOMMENDATIONS
Change in policies to satisfy dealers Extra reward for large dealers
Improve credit terms
Price relaxation for dealers