By Harshini Patel


Discussing about the development of paint industry after independence.Goodlass Wall (1918). was established. European manufacturers. British Paints and Jenson Nicholson continued as British operated units. while the other three: Shalimar Paints (Pinchin Johnson). But. readily saw the advantages of setting up manufacturing facilities here. Macfarlanes was brought over by the Poddars and became a completely Indian company. With the stoppage of imports owing to war conditions. thus far exporting to India. It grew so big by leaps and bounds over the years that it is today not only the largest unit in India but way ahead of the second largest. A Pinchin Johnson unit. This one lone unit industry grabbed the opportunity in World War 2 to flourish. The period between the wars thus saw the greatest ever influx of foreign paint companies into India. Elphant Oil Mills (1917) in Bombay. the imports from Britain made it harder for the industry to emerge and raw materials were not easily available..a completely Indian unit which started on a very small scale. we must not forget µAsian Paints¶. Mounting industrialization and infrastructure helped the industry to grow higher. Kanpur and Bombay wholly under Indian ownership The British . the domestic market at last became almost the exclusive reserve of the domestic industry. It was not only Asian Paints but also other numerous factories with mediocre technological support were well established and working in Calcutta. Color & Varnish Company. formerly a unit of Goodlass Wall (UK). and British Paints.INTRODUCTION Paint Industry origin and growth:The history of Indian paint industry starts from Calcutta in 1902 when Shalimar Paints. Kansai (Goodlass) Nerolac Paints Ltd. Jenson & Nicholson and Macfarlances in Calcutta.

units. the paint industry crossed the Rs. The post independence period witnessed a steady growth in the paint industry. with the active support and patronage of the Government. 49 Billion Sector. controlled a vastly higher share of the market. were technically strong and financially sound and. The paint industry today is a Rs.200 million turnover in 1950. From a mere Rs.14000 million mark in 1990-91. though a few in number. Paint Industry Product Sector Industrial 30% Decorative 70% Organized 70% Unorganized 30% The Paint industry in India is widely divided into sectors as above from which 70% is organized sector. .

.The major players of this industry are as follows:- Shalimar Jenson and Nicholson ICI Berger Paints Kansai Nerolac Others Asian Paints 6% 6% 8% 11% 13% 19% 37% This readily proves that Asian Paints is the king of paint industry The leader in the high volume medium and mass segments of decorative paints. Than comes Goodlass Nerolac and Berger Paints with market shares of 13 per cent and 11 per cent respectively. Asian Paints has been consolidating its market leadership over the last six years and now has the biggest slice of 37 per cent of the market for decorative paints in the organized sector as shown in the table above. Other major players from the organized sector include Jenson & Nicholson with a low 6 per cent and ICI with 8 per cent.

Commodity to FMCG Rise in disposable income THREATS:Foreign companies entering as sole players .SWOT ANALYSIS OF THE INDUSTRY:- STRENGTHS:Imp of brand image as barriers to new entrants Good technology backup WEAKNESS:Raw materials ± scarcity Requirement of high working capital Real estate in a depression phase. OPPORTUNITIES:Fiscal incentives provided by Government.

the mischievous kid) THE ASIAN PAINTS SAGA:³ASIAN OIL & PAINTS COMPANY. It touched the sky by reaching the turnover of 3. Asian Paints is India¶s largest paint company and the third largest paint company all over Asia today.5 lacs within 3 Years. It has also become 10th largest decorative paint company in the world. Suryakant Dani and Arvind Vakil-four entrepreneurs. . Chimanlal choksey. It is present in 22 countries with 27 manufacturing locations. Gattu.(Asian Paints mascot.´ Asian paints were started in 1942 by Champaklal choksey.

The company succeeded where others failed in three areas: First. a variety of shades and a wide range of paint types (enamels. Sells stake in Australian Unit (June 2007). to suit the needs of the mass market for a product that was much cheaper than costly emulsions but much better than the widely used whitewash and crude powder distempers.200 towns and 10. This opened up a huge market and today distemper accounts for 25% of the decoratives market in volumes and 15% in value. Asian Paints is a great marketing success in a branded consumer product business. . in the sixties. Vision of the company: . in the highly competitive market emulsions segment. aimed at the same rural and low income urban markets. And as recently as in 1992. Thus. the company introduced a synthetic distemper. Secondly.It bought:y y y Taubmans Paints (Fiji) In September 2003. branded Utsav. Investments were also made in computer technology to ensure up-to-date information interface between the marketing and production sides of the business. the company came out with plaster distemper.000 stockists. Today it has direct dealers in 3.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. emulsions) to suit different pockets. ICI India¶s Unit (February 2007). It set up an extensive national distribution network to tap demand in smaller towns. the company introduced as many as 151 shades in its Apcolite range when the competition was offering a maximum of 40 odd shades. distempers. It was the first to introduce small pack sizes. Tractor. The strategy paid off and Asian Paints today commands a 40% share in this segment.

And finally. dealer relations. thinner. the company has displayed considerable savvy in its advertising campaigns. wall putty. wood primers. redoxide oil primer. exterior sealer and floor color. Royal play tools. the company has played a pioneering role in expanding the Indian paints market by identifying high demand potential areas and then tapping them to maximum effect. this includes wall primers. point of sale publicity and product demonstrations to consolidate and expand markets.  Automotive applicants . In fact. metal primer. knifing paste filler. PRODUCT RANGE OF THE COMPANY:Asian Paints provides wide range of products to the consumers like:-  Ancillaries.

    Akzo Nobel Berger Paints Shalimar Paints Jenson Nicholson .  Industrial. floor coatings. this includes protective coatings. interior walls:. powder markings. COMPETITIORS OF THE COMPANY:Asian paint doesn¶t really face much competition. enamels). metal surfaces and wood surfaces:.(Clear finish. Decorative Paints. Emulsions) . As it is more than twice the size of its nearest competitor which is ± Kansai Nerolac Then comes.(distempers. this includes paints for exterior walls. opaque finish. road markings.

using and disposing of goods and services. REPORT ON CONSUMER BEHAVIOUR FOR ASIAN PAINTS:Asian paints have always been known as a valued brand and have created a trust among its customers throughout its life. perception etc. The market tries to understand the needs of different consumers as different consumers have different needs based on their preferences. preferences and buying power.per kg which was easily viable for price conscious customer. durable goods. promotion and place. It sold oil based distemper qt Rs. Consumer behaviour is the decision making process and physical activity involved in acquiring. price. we also consume and buy products according to our needs.  It was firm in offering ³value for money´.CONSUMER BEHAVIOUR Consumers consume things of daily use. 26/.  Gattu. beliefs. evaluating. the mascot of Asian paints and other promotional activities like undertaking demonstration campaigns helped them create strong customer awareness and also a new service provided by them online for knowing rates of painting their house and choosing right colors . It has very well used the concept of 4p¶s of marketing that areproduct. special goods or industrial goods. Price Promotion Product Marketing Mix Place  Asian Paints rightly introduced variety of products and branded almost all of them which fascinated the customers. These can be consumable goods.

It provided faster customer acquisition and ³paint by yourself´ concept which attracted maximum of Indian consumers also focus on special festival launches also helped it gain popularity. automotive etc gives them a wide scope of penetration into different markets as customer are already aware of the brand and they can easily except it in other sectors also. Asian Paint¶s width of product line and market segmentation like industrial. Asian paints has targeted and positioned itself strongly in the market and their rigorous advertisements and easy availability has made it easy for the consumer to buy it. Buyer¶s attitude. Consumer also had ³brand belief´ in case of Asian paints as it is existing since independence and also has maintained its brand name and gained popularity all over the world and satisfies consumers of all income level. .also is a reason for brand popularity and inclination of customers towards their brand. Preferences and performance:Buyers had a perception about Asian paints that it is a reliable and economically feasible product due to its past record and brand name so they prefer to chose Asian paint instead of any other paint. Influences On Consumer Behaviour:- It introduced wide range of products affordable to all classes of people like: Utsav for rural (chunna and distemper)  Distemper for middle income group  Royal for higher income group Due to this range all income group people could use Asian paints and that gave them a sense of pride and equality also the lower income group¶s urge for status was fulfilled.  It did launch of its brands keeping in mind regional festivals and other regional (Place) influences.

she would also not shift the brand as she is contended with the quality. another MBA student says she uses asian ROYALE range to paint her house because it¶s been a trend of the family of using asian paints and as it updates its products and shades with the span of time. she uses asian paints because of their customer services like various textures and its sample patching demonstration and a variety of shades available. many other customers prefer ASIAN PAINTS due to:y y y y y Easy Availability Awareness due to advertisements Variety Cultural influence & Affordability . price and trend at the available price. trend is not an issue. If given a chance. an MBA student says. Like these students. Deepenti Lalwani.BRAND LOYALTY AND PERSONAL OPINION:I would always use Asian paints as I have had a nice experience using asian paints and also is available in affordable ranges. She would never switch the brand as she gets ³value for money´ Geetika Gupta.

Sign up to vote on this title
UsefulNot useful