INTRODUCTION

Indian Economy is dramatically changing the dramatic changes are

the result of hard realities. Too much of protection for too long a time has
hindered the economic development rather than facilitating it.

The

immediate fallout could be seen in public sector units in the country.

Their losses got accumulated and became a drain of the National
Exchequer. Too much of regulation for too long time on private sector
had also proved to be disastrous.
All these regulations, curbs and restrictions has stifled the
enterprising spirit and discouraged healthy competition among the in
industrialists. The balance of payments position became so unmanageable
that even the international lending bodies like International Monetary
Fund and World Bank refuse additional finance for India unless Indian
economy is revamped.
Since than a series of economy policies were revamped. There was
a greater emphasis on Marketing.

After liberalization the changed in

economic scenario India offers excellent marketing opportunities are

created for aspiring Entrepreneurs.
Indian markets are now Buyers Markets. Therefore the marketers
has to resign suitable. Strategies to stay successful in the market. Their
success depends on their ability to cater.

OBJECTIVES
PRIMARY OBJECTIVES:
To find out which factors has got influence on customer awareness in
Paints Industry.
To know the awareness level of Asian Paints customers as well as

other customers.
SECONDARY OBJECTIVES:
To identify the customer requirements.
To analyze the customers perception regarding the preference of Asian
Paint Products.

NEED FOR STUDY

The main objective of the study is to know the Customer awareness
with respect to Asian Paints.
The need for this can be explained if one knows the importance of
understanding the Customer awareness. So in the following paragraph
the Customer awareness and its role in the success of an organization has
been explained.
Customer awareness are taken up to boost the sales of a product by
the company. A company having production capabilities may produce a
product and price is according and sell through the dealers and retailers
by its distribution network.
Considering the fact that consumer according to the time need,
want and the purchasing power, it depends on the product, therefore, the
marketers rely on the marketing mix to cater to the customers efficiently
and effectively.
So the companies producing the product, pricing and planning
them have to care fully look into the minds of the consumers and place the
products favorably in the minds of the consumers.

METHODOLOGY
In order to realize the study the objectives a considerably volume of
both primary and secondary data is needed. It has been therefore found
necessary to conduct an Interview schedule for gathering relevant data
from the users.
Primary Data has been collected from the industrial buyer during
May June 2004 with the help of a structured Questionnaire with
stratified sample of 65 respondents have been taken for carrying out the
study.
Secondary Data the information regarding the Indian paint industry
has been drawn from various published sources.

They include

Professional business Journals and Magazines, besides the News papers.

The data relating to Asian

Paints has been collected from company

records.
This study is necessarily based on the limited knowledge and little
practical exposure the constraints of resources and time have further
imposed limits to the study boundaries.

LIMITATIONS
The respondents of the questionnaire are very busty and could not
afford more time to answer. The average time to response was 5-6
minutes only.
A limited sample size of 65 customers was considered because of time
constraint.

An assumption is made that the sample represents the

whole population. It will not carry the total reflection of the copier
market. Total sample size is comparatively less to represent the entire
population.
A time period of only 45 days was allowed for the completion of this
product.

So considering all the consumers for the study was not

possible.
The data was of primary nature. So the degree biases were relatively
high as the sample was randomly selected.
Study restricted to geographical territory of Visakhapatnam city only.

PAINTS THE COLOUR OF OUR LIFE

(A PROFILE)
What is Paint?
Basically, Paint is a mixture of four elements.
Solvents
Binders
Pigments
Additives
Solvents
Which give a paint its flow, and enable it to be brushed on a surface
Binders
Which hold the paint together, as well bind it to the surface that is
painted, thus giving its property of durability.
Pigments
Which give paint its colour and opacity.
Additives
Which give paint special properties such as resistance to fungus, rust ..etc.,

Paints can be distinguished as

EMULSIONS :
These are water based paints Acrylic Emulsions are extremely
durable and give wall silky and smooth finish. They washable and easy to
maintain.
Eg: Asian Paints offers three brands to choose.
Premium

Apcolite Royal Acrylic Emulsion.

Medium

Apcolite Super Acrylic Emulsion.

Economical

Super Decoplast.

DISTEMPERS:
These are also water based paints but their binders may be very
natural or synthetic. Distempers are economically priced, they offer good
value for money as they are durable.
Eg: Asian Paints has
Tractor Acrylic washable Distemper.
Tractor washable Synthetic Distemper.

LUSTER AND MATT FINISHES:

These are solvent based paints are extremely durable. The former
gives a gloss egg shell finish while matt finishes have a dead matt finish.
Eg: Asian Paint has
Apcolite luster finish.
Apcolite synthetic matt finish.
EXTERIOR FINISHES:
For exterior cement paint is mainly used as it is economical. It also
has a reasonable life if in areas where monsoon is not too heavy.
Eg: Gattu cem.
ENAMELS:
It provide the best coating for metals they are tough, durable, glossy
in finish. The smooth shiny look lasts for years. Enamels protect from
corrosioin.
Eg:
Apcolite Synthetic Enamel.
# mangoes Synthetic Enamel.

PRIMERS:
Primers are usually the first coat applied on a surface it is meant to
prepare the surface for painting. It offers protection to the paint.
Eg:
Asian Metal Primer.
Woodorite Primer.
FILLERS / PUTTIES:
It is used to fill up the crises or any unevenness to ensure that the
finish coat gives a smooth surface.
AUTOACQUER:
It is NITRO CELLULOSE paint for auto finishing.
Eg:
Krilo
Apca
Aspa

10

PAINT INDUSTRY IN INDIA

Foundation for paint was laid in the year 1902 with the setting up of
Shalimar Paints in Calcutta. It was during the and after the World War II.
That large number of paint manufacturing units was set up in India. Since
then the Indian paint industry has made substantial progress.
The paint industry has come to the recognition as an important
sector in the national economy in producing industrial coating and
decorative paints.

Decorative paints available in wide range of

combination account for 70% of the coatings total production.

industrial paints share the balance of 30%.

While

This rate is diametrically

opposite to the trend in the industrialized countries where industrial

paints account for 70% and Decorative paints for the balance of 30%.
The Indian paint industry is at the crossroads. All most all-major
paint companies have expanded or are expanding its capacity
substantially. With demand rising slowly competition is becoming
increasingly intense.
The decreasing growth rate has made the paint companies to woo
customers aggressively. The customer is being offered 10% rebate in most
products, Unheard in the industry so far. Most companies have increased
their discounts to their dealers to unimaginable level dealers are offered
higher credit levels, flexibility in payment, foreign trips for selling even
low value products and the like.

The increasing competition to offer

11

solutions through technology has made all the paint make as offer a large
number of shades through computerized colour dispensing system.
IMPORTANCE
Generally paints and coatings are applied to products to protect
them from
Emnvironmental Corrosion.
Protection of Food and Beverages in metal cans.
Improve aesthetic appeal.
CATEGORIES
Paints are classified into two broad categories.
Decorative or Architectural finish paints.
Industrial Paints.
Decorative or Architectural finish paints:
This market can be further segmented on the basis of the following
Customer types : Institutional / retail or domestic use
Product features / categories: Distempers, Enamels, emulsions etc.
Price: Premium, Medium, Economy etc.,

12

Industrial Paints:
This market can be further divided into the following four sub
segments depending on the end user profile.
Automotive paints.
Marine Paints.
Powder Paints
High Performance coatings
Other general industrial finishes.
In India, decorative paints dominate with the share of 75% of the
total paints consumed while in developed countries Industrial paints have
a share of 50 70%.
Decorative Paints used in buildings include distempers, emulsions,
synthetic Enamels, Cement pains and Wood finishes.

Interior Paints

makeup of the segment. The rest is made up of exterior paints mainly

cement paints.
PLAYERS IN DECORATIVE PAINTS
In decorative paints Asian Paints dominates with a 37% market
share and number two player Goodlass Nerolac has a market share of
14%. These paints are by medium technology and hence the unorganized

13

sector has a major share. A recent estimate that over 2400 companies are
in unorganized sector.

INDUSTRIAL PAINTS
Industrial

paints

include

automotive

paints

(original

auto

manufactures and refinishes), Powder coatings marine paints high

performance coatings and special purpose finishes. These are technology
intensive and hence the presence of the unorganized sector is very limited.
In fact, there is no presence of the unorganized sector in the original
paints.

This can be explained by the fact that to bag an order from

automobile manufacturer collaboration with a well known foreign paint

company is a must Goodlass Nerolac is an un disputed leader n industrial
paint.
Till early 90s paints were treated a s luxury items by the
governments this resulted in higher excise duty and higher end prices,
leading low consumption of paints in India. However the progressive
reduction of the excise duty from 40% in 93-94 to 18% in 96-97, the
companies have passed on the duty reductions as price cuts.
However the per capita consumption of India is still a merge of .5
kg compared to 26 kg in U.S and 1.2 kg in Thailand.

14

As already mentioned paints were viewed as luxury item by many

even today. Their productive value is not under stood and repainting is
limited and if ever done is once in 7 10 years. The government interest
to protect all surfaces is also low and the loss due to corrosion is estimated
to be over Rs. 5000 crores p.a. By the central Electro chemical Research
institute at Karaikad, Tamilnadu.
With a view to emphasing the importance of protection through
painting the Indian paints Association (IPA) had brought slogan in 1995
Paint and Protect.

This slogan is popularized through various

communications however a lot needs to be done to reach the millions of

customers effectively.
DEVELOPMENTS IN VARIOUS SEGMENTS
Two significant developments took place in the last three years in
the decorative paints segment.
Advent of Computerized Colour Dispenser
Sudden increase of Exterior Market.
Colour Dispenser:
Traditionally companies used to supply pre mixed shades to dealers
who in turn offered to their customers.
Asian Paints brought in the manual colour dispensing concept in
1998 and offered 151 shades through it. This was the first salvo in offering
15

in variety of shades. This concept took off and Asian Paints went about
establishing 2000 colour corners which would stock the 151 shades.
Additional shading requirements were catered by providing colours as
per the demand after mixing the bases with strainers through colour
dipencer other companies followed it soon and Goodlass Nerolac
introduce ed 301 shades under the same concept.
In 1995 Jhenson and Nichelson, the 5th ranking company in the
industry, pioneered the concept of CCD. And started installing them at
dealer shops with the support of TIKKURILA of FINLAND.
The concept is similar to that of the manual colour dispenser except
that the dispensing is automatic pre decided formula registered in the
computer and the shades are offered instantly shops to customers.
Today Berger Paints, is the 2nd Company to enter this system
offering 5000 shades a clear indication of the trend. In the year 1997-98
has seen the introduction of the concept by the two giants. Asian Paints
and Nerolac. Today around 1000 dealer shops are installed this concept.
CCD or it is called AUTO COLOUR DISOENCER have helped the
dealers to reduced their inventories offer a large variety of shades
instantly, consistently and accurately. Consumer have also benefited by
this concept as the shopping environment has changed dramatically with
the advent of CCD.
EXTERIOR MARKET

16

The second development is the introduction of the 100% Acrylic

Exterior Paints and the focus of major companies on the Exterior Paints
market.

Traditionally, the exterior paint market was catered to by

KILLICK NIXON and several other small players. The main offered were
cement paints in India. But the real change has be thought by Asian Paint
through APEX its 100% exterior paint market has started growing
exponentially. In 1999 Nerolac introduced EXCEL in the category and
offered qualitative product at low material cost. Both Apex and Excel
have propelled the exterior paints growth by over 60% in 2002 and the
trend is expected to continue for at least of three more years.
A major development in 1997-98 was the Pay by scooter / car
concept by companies. As practiced in western countries, in India also the
concept of taking care of the complete painting job has been under taken
by paint companies. Goodlass Nerolac has commenced this concept with
Mahindra cars by managing the entire paint shop and being paint on the
basis of per painted cars. Asian Paints also followed it up with a similar
tie up with LML for its scooters.

17

POWDER COATINGS
The other industrolycoat powers, in collaboration with VAISPAR
CORPORATION of U.S.
Higher performance coatings is another rapidly growing segment
which is used at fertilizer / sugar plants, airports, big construction
projects, Berger, Asian., Nerolac dominates this segment due to their
international collaborations and high quality range of products.
PAINTS DEFINED
Technically paints can be defined as a homogenous fluid made from
our ingredients namely pigments, resins, solvents and additives which the
raw materials can be classified into four categories.

A typical paint

formation consists of over 500 input materials.

However the key raw materials are
Pigment:- Titanium dioxid
Resins:- PAN,Pentaerythrill
Together these constitute 40-50% of the total raw material
dependent on the category of paints.

18

To conclude the following are the critical factors in success in

decorative and industrial paints.

DECORATIVE PAINTS
Managing logistics
Managing input costs
Focus on rural markets and viewers segments
Strong marketing and brand equity
Quality and technology
INDUSTRIAL PAINTS
International technology
Consistent quality
Customers service
Competitive price
Continuous innovation.
PACKAGING
Asian Paints has four production plants and each has four distinct
packing pattern. So that the work of the godown in charge becomes easier
in recognizing the tins from which plant they have come.
The packing is as follows
Ankleshwar

19

Bhandup
Patancheru
Kasna
And the products are packed as

Enamels

20, 10, 4, 1 liters

500, 200, 100, 50 ml

Distemper

20, 10, 5, 2, 1 kgs.

Emulsions

20, 10, 4, 1 liters.

PLANT IDENTIFICATION
Plant identification marks for cartoons, drums, tins are given below.
Bhandup plant
1. All liter number will be four digit starting from 1001.
2. Alphabets B as label indicate Bhandup plant
3. Drums will not have any brands on the top side
4. Cartoons will not be Blue in colour.
Ankleshwar plant
All liter number will be four digit starting from 2001.

20

 Alphabets A as label indicate Ankleshwar plant

Drums have one brand on the top side
Cartoons will red in colour.

Patacncheru plant
a.

All liter number will be four digit starting from 3001.

a.

Alphabets p as label indicate Patacncheru plant

b.

Drums have two brands on the top, one dotted line.

c.

Cartoons green in colour.

Kasna plant
1`.

All liter number will be four digit starting from4001.

2.

Alphabets K as label indicate Kisna plant

3.

Drums have one brand with three dots with nine alternatives.

4.

Cartoons are brown in colour.

PRICING
In the narrowest sense price is the amount of money charged for a
product or service .

21

Price has ben the major factor in affecting buyer choice. This is still
true in poorer nations, among poorer groups and with commodity
products. However non price factors have become more important in
buyer choice behavior in recent decades.
With respect to Asian Paints there are two price lists.
Dealers price list
Maximum price list.
Dealer price list:
It is applicable to dealers and consists of their trade discount of 3%,
additional trade discount of 3%, cash discount 5%.
If written in equation
DPL = trade discount 3%
+ Additional trade discount of 3%
+ Cash discount of 5%.
Maximum Price List:
MPL = consists of dealers price list trade discount 3% - additional trade
discount 3% - cash discount 5% + local tax.

22

Those dealers who has regular payment of performance are

benefited largely by cash discount and those dealers whose payment is not
regular do not get products.
The company operates at a very low over due outstanding rate.
Thus it can be said that the company has very stringent rules regarding
the credit given to the dealers.
PROMOTION
Modern marketing call for more than just developing a good
product pricing attractively and making it available to the target
customers companies also must communicate to their customers and what
they communicate should not be left to chance.
Asian Paints promotional activities consists of advertisements,
schemes, point of purchase, painters schemes.
The advertisement activities are given to OGILVY AND MATHER
who has designed the advertisements as shown and partly by contract ad
agency.
TARGET GROUP
According to the information provided by the company personnel
the target group differs from product to product.
Eg:

23

Utsav Distemper Royal -

rural (chunna and distemper)

middle income group
higher income group

24

FACTORS BEHIND SUCCESS OF ASIAN PAINTS

Asian paints was founded in 1942 as a small Indian partnership firm
at a time when the paint industry was fiercely competitive.

Two

marketing breakthroughs propelled the company to leap into the

decorative segment. The first was the introduction of smaller sized cans
into the market where the paint was sold in bulk. The second was a dealer
expansion thrust to reach out to end customers and offering them quality
paints which were hitherto available to them in the urban areas only.
These two steps meant going beyond selling paints and, in particular
responding to the customers unmet need. The result was that in 1967,
Asian paints captured to the top position in the decorative paint segment.
Today the company is not just a leader in the paint industry but sells twice
as much paint as any other company in India. In 1994-95 the company had
a turnover of Rs. 614 crores and 38% share of the organized paint market
Marketing Strategies
The success of Asian Paints is primarily attributed to marketing
acumen. The company has made excellent use of the electronic and print
media, besides publishing informative brochures for all its products. The
companys mascot Gattu created to give an ethnic touch has almost
become synonymous with the generic product.

25

Critical Success factors Distribution

The marketing success of Asian Paints was based on the realization
that the semi-urban was untapped and the small consumer neglected. To
reach those consumers in small town, the company built a broad
distribution network across the whole country. From small towns Asian
Paints moved to reach out to the metropolitan market.

Today, the

network with 17,000 retailers across the country is making the company
responsive to a large customer base.
Use of Information Technology
To strengthen the distribution network, the company has gone in
for computerization at the branch and the depot level. All branches and
45 depots across the country are connected to the four plants and the
Product Management Group at the Head Office through the VSAT. The
use of the IT has meant faster flow of information, more efficient
management of supplies, and better inventory control.
Width of Product Line
Based on the surface on which they are applied, decorative paints
are usually classified as wall, metal, wood and plastic finishes.

The

products could be emulsions, enamels, varnishes, automotives, or

undercoats. Their end use could be in the sign board, bus body, industry
or household segments.

26

Asian Paint has offered brands in all possible applications. For

instance:
Synthetic / Acrylic Washable Distempers : Tractors
Acrylic Emulsion : Apcolite (Quality I,) Royale (premium category)
Plastic emulsion Paint (Interiors / Exteriors) : Decoplast (Quality II),
Apex (Quality I).
Synthetic Enamel : Apcolite, Gattu
Packet Distemper : Utsav
Wooden Surfaces : Touch Wood, Silkwood, Apcolite Natural Wood
finish
Cement Paint (external) : Gattu
Industrial Segment
General Industrial Finishes : Apcolite (Hammerton Finish)
Other Industrial Products : Expory Coatings, Chlorinted Rubber
finishes, viny I & Polyurethane Systems.
Automotives
Kirlo an Acrlic Paint, Apca nitro-cellulose based Paint, Aspa an
Allkyd, autocare.

27

Primers
Asian Metal Primer Redoxide
Tractor Redoxide Primer for Metal
Woodrite for Wood Substrate
Decorative Cement Primer
TECHNOLOGY TIE-UPS
The company has a technical collaboration with PIG of the UDS and
Nippon Paint Co, Japan for the manufacture of automotive paints, powder
coatings, and coil coatings. Through this move, Asian Paints remains a
step ahead because companies like Deawoo and General Motors that use
PPG paint overseas are likely to source their automobile paint
requirements from Asian Paints. Technical inflows ( From Sigma Coating
of the Netherlands) have also added to manufacturing capabilities in the
areas of heavy-duty marine coatings, anti-corrosion paints and high-tech
resins(that serve as raw materials), thus ensuring that product quality
even in sophisticated items match international standards.
Product line Extensions
As stated earlier under conceptual issue, line extensions, as a part of
marketing strategy is a low-cost, loss-risk way to meet the needs of

28

various customer segments. It can satisfy customers desires to provide a

wide variety of brands under a single umbrella or family name.
Asian Paints strategy to penetrate into the hitherto unexplored
distempers market was a similar move, which was a departure from its
earlier strategy of concentrating on higher-end products.
New Market Penetrations
The search of new markets and overseas opportunities has led the
company to neighboring Nepal and the distant South Pacific Islands Fiji,
Tonga and the Soloman Islands. The company also exports its to the
Middle East, South East Asia and Europe.
Launch of low priced brand as growth strategy
In late 1992, Asian Paints introduced the brand called Utsav as a
long term strategy to penetrate the rural market. The overall marketing
strategy adopted by Asian Paints for this distemper is now detailed.
Entry into the low end distemper market
The Rs. 2047 paints market has a pyramidal structure. At the very
top end are [premium emulsions priced at about Rs. 155 to Rs. 170 per
liter/kg (which comprise brands like Royale and Velvet touch); next are
the synthetic emulsions at the range of Rs. 90 to Rs. 105 per liter ( e.g.
Apcolite, Nerolac, Dulux and Rangoli); and at the base is the distemper
segment (with Asian Paints Tractor) between Rs. 33 and Rs. 40. There was

29

a huge untapped market at the lower end which no organized player had
attempted to tap.

This comprised largely packet distempers, dry

distempers and lime ash, hawked in a brand band of Rs. 3 to Rs. 25.
Reason for entry
Around 1991 a recession in the user industries and hike in the excise
rates had slowed the industry growth rate to 2.2%. Asian Paints realized,
that to overcome this phase of stagnation, it had to penetrate new markets
and real volumes would come only be converting consumers using
limewash, dry distemper, cement paint or other local painting methods
into branded paint uses. This would also expand the market base, besides
reaping it the first mover advantage among the major producers of the
paint industry. All the company need was new paint to penetrate into this
segment.
Barriers to Entry
No data on market size, consumer buying habits, etc., on the distemper
market.
Regional brands, many in number, had an established clientele.
Unorganized sector brands were priced low and offered heavy dealer
discounts to push their brands.
National players / Market leader risked losing premium image and
quality association by entry into this low priced segment.

30

 Consumer preferences heavily influenced by regional cultures,

lifestyles, hence the market was fragmented.
Servicing a huge semi-urban and rural market would entail huge upfront investment, with returns not assured.
Dominance of packet distemper brands, e.g., Dilkash and Lakmi, which
filled the aspirational value slot.
Company specific problems / Disincentives
Large price differential between the company distemper brand Tractor
(Price Rs. 45 ) and the unorganized sectors products (Rs.3-25 ).
Danger of eroding Tractors equity if a low price variant is introduced.
Threat of substitution of the higher period Tractor brand by the
cheaper one by the painter, which had a poorer finish resulting in
customer dissatisfaction.
The Companys Competitive advantage
High degree of awareness about the company among the target market
constituents.
Company regarded as a quality-produce maker.
Market leader, financial and marketing strength to sustain investment
pressures

31

 Core competence in paints, wide variety and well-developed R & D.

Wide dealer network and good information base about different
markets.
The Total Strategy followed
(a) Strategic Thinking
This was influenced by the following factors:
70% of the Indian houses were of the non-pucca variety.
Painting of the hose, especially interiors, was a deeply entrenched
habit.
Wall-Paints usage was dominated by lime wash and dry distempers.
Branded paints were perceived to be out of reach by the ordinary
consumers.
Penetration of all major paint brands put together was 24% of the users.
The company realized that the only option it had was to reduce
margins and relentlessly chase volumes. But to achieve volumes, a
high penetration in the rural and semi-urban markets would be
required.
(b) Product and Price

32

The company realized that it would have to develop a brand that

would offer Value for Money. Hence in late 1992, it unveiled its new
distemper Utsav, the name denoting seasonal and festival-oriented
relevance of the product.

It was position as do-it-yourself, oil-based-

distemper. At Rs. 26 per kg, it greatly narrowed the price differential and
brought, for the first time, a major branded paint within the reach of the
price-conscious consumer.
The packet size was fixed at 1 kg, a small size, since the users had
smaller-sized houses and did not require large pack sizes.

Also, the

product was found to cover more surface area than other products. The
product as offered inn eight new shades, typically in deep colours,
keeping the end-user profile in mind.
(c) Place / Distribution
Region wise launch of the brand, to coincide with regional festivals.
Focusing on the north Indian Market, the largest, was scheduled to
incorporate market feedback from the other regions and change the
marketing-mix elements if required.
Company salesman linked up with sub dealers and petty dealers,
usually grocers, in villages and small towns, who in turn would be
serviced by the companys established 15,000 strong dealer network.

33

 Undertook

innovative

promotional

campaigns,

like

arranging

demonstration sessions, besides using the regional media and local

print media, and customer education to create strong brand pull that
would help increase of take and provide the small retailer the incentive
to stock Utsav. There was also the prestige element in stocking Asian
Paints products, which the company exploited to the hilt.
The

Company

funded

its

(established)

dealers

transportation

overheads incurred in reaching out to the new 80,000 odd outlets.

(d) The Ultimate
Utsav has been a success in the markets where it has been launched.
It has overcome the main hurdle of dealer and consumer resistance.
The brand has gained market share at the expense of local packed
distemper brands. Margins for the product are low about 2-3%, while
the higher end brands fetch 20%.
However, the product has provided the company a clear advantage. It
can now use its rural network to build its entire economy range
comprising the Enamel range Gattu and other products like primers.
Thus it has a clear head start over its competitors in the volumes game.

34

PROFILE OF ASIAN PAINTS

Today Asian paints is the market leader in the paint business of
India, commanding a market share of more than 35% in organized sector .
Its Annual sales turn over us around Rs. 22.6 billion.
Asian paints one of the largest among the top 10 decorative paint
companies in the world. It operates in 22 countries across the world
serving consumers in over 65 countries.
Forbes global magazine USA ranked Asian Paints among 200 best
small companies in the world for 2002, and in the year 2003 presented the
Best under the Billion award to the company. It is one and only the
company.
One of the country leading business magazine Business Line in
Feb 2001ranked Asian paints as the ninth best employer in India.
A survey carried out by Economic Times in January 2000 ranks
Asian Paints as the fourth most admired company across industries in
India.
A talent pool of 4700 employees employed across 23 countries.

35

The closest competitors of Asian paints do not have even half of

Asian paints turn over in other major performance factors like Profits,
Asian paints is far ahead all it competitors in the industry.
The achievement of such an over whelming leader ship position, by
a company that is fully Indian in capital management is an industry
traditionally dominated by multinationals is certainly a grand feat.
How did Asian paints achieve this success? Naturally, it was the
cumulative result of a package of strategies with respect to market
targeting, product mix distribution and other aspects .The maximum
credits for success should, however go to its distribution strategy. It was
through its distribution that Asian paints took its marketing endeavor to
perfection.
Asian paints 9.2% stack in ICI India Ltd. It acquired controlling
stack in Berger International Ltd., Singapore. And it begins Bangladesh
operations. It makes the company eleventh joint venture in international.
THE COMPANY
Asian paints manufacturers and markets a wide spectrum of
coatings and ancillaries, which include decoratives, protection paints and
heavy duty coatings. The manufacturing facilities of the company for
paint products are currently spread over four locations
# BHANDUP

MAHARASTRA

36

1955

# ANKLESWAR

GUJRAT

1980

# PATANCHERU

A.P.

1981

# KASNA
The manufacturing of paints in patancheru started in 1985. Asian
paints, their modern manufacturing facility offers the widest range of
paints among all the paint companies in India, in terms of products shades
as well as pack sizes. Asian paints have promoted 5 successful overseas
subsidiaries.
Asian paints has been turning out consistency good performance
over the years. For more than two decades now, it has continuously been
the leader in the industry. Besides being the market leader the company
has also respectively provided its excellence in terms of operating
performance which has earned the company a place among the worlds
leading manufacturers. And Asian paints logo GATTU, the impish boy
holding paint tin and brush is one of the most recognized and most
prosperous mascots in Indian business.
DISTRIBUTION
In an industry the availability of stocks is crucial determinant of
sale, control of material units assumes great significance especially since
Asian paints offer the widest range of products, shades and packs to the
13000 dealers in the country through the network of over 47 depots.

37

This is achieved through a sophisticated material distribution

system which optimizes production and movement from plants and
meshes it with demand pattern in the market.

The distribution system monitors the dispatch of materials from

plants / other processing units to the branches / depots directly or
through the warehouses or regional distribution centre.
A bonded store room (BSR) in one where in material for which
excise duty has not been paid is stored. Each plant has a bonded store
room where material is sent immediately after production. As and when
these materials are dispatched it moves out of the bonded store room.
Excise duty is livable at applicable rates on actual movements basis.
During the course of this section and subsequent sections reference
will often be made to an SKU and SAU. An sku is acronym for stock
keeping unit which is combination of particular pack, product, shade.
Eg.

Apcolite synthetic enamel

Apcolite synthetic enamel

500ml

bus green is one sku

500ml

sky blue is one sku

CLASSIFICATION OF SKU
All products can be divided into bazaar and industrial on the end
use. Bazaar and industrial item can further be divided into inventoried
and non inventoried items
38

Inventoried sku are those for which constant demand for which
sales forecast with a degree of certainty.

FORM-A
Bazaar sku inventoried at company / branches / depots.
The supply of skus is affected through multi plant distribution
system.
FORM-B
Bazaar skus which shades are under the specific focus of
management group new products, packs are not inventoried at all
branches / depots.
FORM-C1
Regular bazaar sku inventoried at branch / depot/ but not at
company level.
FORM-C2
Bazaar sku not inventoried at the branch / depots/ company
levels.
FORM-D
Industrial inventoried sku.

39

FORM-E
Industrial not inventoried sku.

FORM-F
All non confirming stocks( This includes damaged stocks defective
stocks, old stock packed before 3yrs for trade products and beyond
validity period for the industrial products.
CUSTOMER ACCOUNTING PROCEDURES
TYPES OF CUSTOMERS

MODE OF PAYMENT

1. Local dealers

Local cheques / pay order

2. Retail sales / cash sales/

Local cheques party is known as

pay order upcountry dealers or cash
location, local cheques if the dealer
has local bank account.

Industrial customers local cheques, D.D payable locally. In case

absolutely necessary an upcountry cheques or D.Ds.
Cash / local cheques -- Date of collection memo
1. Upcountry cheques - 7days from the date of collection memo as it takes
around 7days for an up country cheques to be cleared.

40

2. DD/Pay date of DD as the ordered customer is debited as soon as DD

is purchased by the customer. Although the company may not be
credited(i.e the customer is given the benefit.)

PLANING PROCESS

In the sales function the planning is as follows

Phase-I
Market assessment It consists of assessment of market and market
share for total and major products, growth assessment segment wise for
this purpose retail audit is conducted. All the sale representatives collect
data form each retailer.
Phase-I I
Objectiove fixation Based on the above analysis all units should
set objective of achievement of total sales volume / sales growth. Volume
sales strategically important products like emuilsions auto refinishes,
wood finishes and collection efficiency.
Phase-I I I
In this phase plan for meeting the budget shown be drawn up.
These plans involving product / segment focus, town focus, dealer focus
would form the basis of the planning document.

41

Phase-IV
Resource planning It consists of
A: man power planning
B: input plans
C: sales promotion plans

PROFITS
Asian Paints during the year 2003 2004 made

huge profits.

Though the company has stringent rules and regulations regarding

towards the credit policies and payment bills, dealers demanding to
extend the credit period. In spite of having such stringent policies the
company managing such a profit is something which has been attained by
work of great managers and sales staff of the company. It indicated the
planning an the performance of the company personnel which made the
company dominate the decorative paints segment, and the whole thing is
backed up by quality, of the paints.
Asian Paints net sales rise by 16.08% and net profit rise by 13.24% in
2003-2004. And announces dividend to the share holders @35%.
PRODUTION CAPACITY
The company has four production centers to cater to the needs of
the customers in India they are as follows

42

ANKLESHWAR
BHANDUP
PATANCHERU
KASNA
The production plats are like four pillars to the company and the
company is planning to set up a new plant by expanding its capacity.
The aggregate capacity of the four plants roughly mounts to 7000
tones / month in the decorative paints segment.
NEW PRODUCTS DEVELOPMENT
Asian paints have got a full fledged research and development
function to counter the competition and produce the technologically
advanced products to provide a better service to the customers.
The research and development and the management has a plan to
7produce four new products every year. And the new products added till
dates are
#

APEX anti fungal exterior paint

ACE economy emulsion

Utsav

Asian wall putty

NC sanding sealer

and in the future the tally is going to be increased by their research

and development function.
LOGO

43

Logo is a symbol which represents the company by looking at the

logo any one who has little knowledge about the paints would say that it
is gattu and the company is Asian Paints.
A boy standing with a brush and a paint tin is famously known and
the logo for Asian Paints which is a popular one has been designed by
R.K.LAXMAN a well known cartoonist.

THEORTICAL ASPECTS
INTRODUCTION:
Todays companies are facing their toughest competition ever.
Companies can outdo their competition if they can move from a product
and sales philosophy to a marketing philosophy.
The success of the companies lies in doing a better job of meeting
and satisfying customer needs. Only customer-centered companies are
adept at building customers, not just building products.
Over 35 years ago, Peter Drucker observed that a companys first
task is to create customers. But todays customers face a vast array of
product and brand choices, prices, and supplies.
Now the customers started estimating which offer will deliver the
most value. Customers are value-maximizers, within the bounds of search
costs and limited knowledge, mobility, and income. They form an

44

expectation of value and act on it. Whether or not the offer lives up to the
value expectation affects customers satisfaction.
CUSTOMR AWARENESS:
Customers are informed and remaindered about the products and
are requested and persuaded to purchase their products.

Such

communication may be made their along the product or well in advance

of the introduction of product into the market.

Such communication

becomes necessary when a new product or service is introduced in the

market or an old product is improved or it is simply to increase the sales
of the products.
Awareness compasses all the tools in the marketing mix whose
major role is persuasive communications.
PHILLIP KOTLER
The main features of awareness are:
1. Customers are informed about the product or services of the
company. Either at the time of introduction of a new product into
the market or when any change is made in the existing product.
2. Customers are reminded of the products and services of the
company.
3. Customers are requested or persuaded to purchase the product and
services of the company.
45

4. Awareness includes, advertising, personal selling and other sale

promotion techniques.
Consumers must have awareness about the new products and their
usage.

Such activities are performed by the manufacturer.

It is the

responsibility of the producer to get information about the consumers and

prospective consumers so that the necessary product may be served to
meet their demands.
Subject matter companies must do more than make good products
they must inform consumers about the product benefits and carefully
position products in customers mind. To do this must skillfully use the
mass promotion tools like advertising, sales promotion and public
relations, personal selling, publicity.
ADVERTISING:
Advertising is defined as any paid form of non personal
presentation and promotion of an idea, goods or services by an identified
sponsor.
The best advertising is done by satisfied customers.

-- PHILLIP KOTLER
Advertising can be traced back to the beginning of the recorded
history. Archeologist working in the countries around mediterrian sea

46

have dug up signs announcing various events and offers. The roman
painted walls to announce Gladiator fights, and the Phoenician painted
pictures promoting their waves and large locks along parade routes.
In 1993 advertisers ran up of bill of more than

$ 138 billions

through advertising is used mostly by business firms it is also by a wide

range of non profit organization professionals social agencies that
advertiser target to various target publics.
Major Decision In Advertising:
Advertising has the impersonal contact and gives message to the
receiver. The advertiser uses visual media like newspapers, magazines,
radio, television, posters and pamphlets. There is no feedback to know
the response from the people. Advertising is directed towards consumers.
This leads to more expenses and so the things become an costly affair.
1. Advertising Objectives
a) To inform
b) To persuade
c) To remind
2. Setting the advertising budget
After determining the advertising the objectives, the company next sets
its adverting.

47

 Budget for each product. The role of advertising is to effect demand

for the product.
However some specific factors are that should be considered when the
setting the advertising budget.
a) Stage in product life cycle.
b) Market share
c) Competition
d) Advertising frequency
e) Product differentiation.
3. Message Decision
A large advertisers can spent the same amount on advertising, yet
have very different results studies show that creative advertising message
can be more important to advertising success than the number of dollars
spent.
4. Message Strategy
The purpose of advertising is to get consumers to think about or
react to the product company in certain way. People will react only if they
believe that they will benefit form doing o. Effective message consist of
customers benefit, creativity, Meanings, distinctive in nature.
5. Major steps in media selection.
a) Deciding on reach, frequency, impact

48

Reach is a measure of the percentage of the people in the target

market who are exposed to the ad campaign during a given period of
time.
Frequency is a measure of how many times the average person in the
target market exposed to the message.
Impact qualitative value of a message exposure through a given
medium.

b) Choosing various media types:

Newspapers Magazines
Televisions Radios
Outdoors Internet
c) Media timing
SALES PROMOTIOIN
It includes activities other than advertising, personal selling,
publicity and public relations which are used in promoting sales of the
product or in persuading the customer to purchase the product.
Distribution of samples, premium coupon, point of purchase display, offspring etc., are the examples of sales promotion techniques.

49

Samples - Offers to consumers of a trail amount of a product.

Coupons - Certificate that give buyer a saving when they purchase a
specified product.
Rebates (cash refund offers) It offers to refund part of the purchase
price of the product to consumers who send a proof of purchase to the
manufacture.
Principles - It reduce prices that are marked by the producer directly on
the label or package.
Premiums Goods offered either free or low cost and incentive to buy a
product.
Advertising specialties useful articles imprinted with an advertisers
name given as gift to consumers.
Patronage reward Cash or other rewards for the regular use of a certain
companies products or services.
Point of purchase(POP) It displays and demonstration that takes place
at the point of purchase of sale.
Discount Straight discount on price on purchase during a period of
time.
PUBLIC RELATIONS

50

Another major promotion tool ism public relations building good

relations with the companies various publics by obtaining favorable
publicity, building up a good Corporate image and handling off
unfavorable rumors, stores and events.

The old name for marketing

public relations was publicity, which was seen simply as activities to

promote a company or its products by planting news about it in media not
paid for by the sponsor. Public relations are much broader concept that
includes publicity ass well as many other activities.

Public relations

department may perform following functions.

a) Press relations Creating and placing news worthy information in the

media to attack attention to a person, product or service.

b) Produce publicity Publicizing specific products.
c) Public affairs Building and maintaining national or local community

relations.
d) Lobbying Building and maintaining national or local community

relations.
e) Investors relations Maintaining relationship with shareholders and

others in the financial community.

f) Development Public relations with donors or members of non profit

organization to gain financial or volunteer support.

51

PERSONAL SELLING
Selling is one of the oldest professions in the world. The people
who do selling go by many names.
Sales people, sales representatives, Account executives, Sales
consultants, Sales engineers, Agent District managers, and Marketing
representatives to name just few.
Sales person, an individual acting for a company by performing one
of more following activities.
Prospecting, communicating, Servicing and information gathering.
PUBLICITY
Publicity is a non-personal not paid stimulation of demand of the
products or services or business units by planting commercially significant
news or editorial comment in the print media or by obtaining a favorable
presentation of it upon radio, television or stage.

52

53

Exhibit :1
CUSTOMER PURCHASING PATTERN

Occupation

Frequency

%of
Respondents

Builders

55

85

Contractors

Engineer

1.5

Others

7.5

Total

65

100

Graph :1

8%
2%
6%
Builders
Contractors
Engineers
Others
84%

54

INFERENCE:
From the above table it is found that 85% of the product purchasers
are builders.
It is found that 6% of the customers are contractors. 1.5% of product
purchasers are engineers and 7.5% of product bought by others.
It is clear from the above data above, that 85% of the customers are
builders because they do painting before handing over the houses to the
respective owner.

55

Exhibit :2
EXPERIENCE IN PAINTING PROCESS

No. of Respondents

Experienced

%of

Respondents

Respondents

65

100

65

Graph : 2

0%

100

100%

56

INFERENCE:
It is found that all the respondents have experienced in painting
process, even though, the buyers are purchasing then products for the 1 st
time, since it is known that buying of paints can be not only for self but
even for other such as relations and friends.

57

Exhibit :3
APPROXIMATE BUDGET TOWARDS PAINTING

Value of the Budget

Frequency

%of
Respondents

Below 50,000

12

18

50,000 75,000

75,000 1,00,000

20

31

Above 1,00,000

29

45

Graph:3

Below 50,000
50,000 - 75,000
75,000 - 1,00,000
Above 1,00,000

58

INFERENCE:
From the above table out of 65 respondents it was found that 18% of
the respondents are in budget below Rs. 50,000/- which means they are
ready to spend for paints. 6% of the respondents are in budget between
Rs. 50,000/- to Rs.75,000/-. 31% of the respondents are in budget between
Rs.75,000/- to Rs.1,00,000/- and the remaining 45% of the respondents are
in budget above Rs.1,00,000/-.
So it was found that maximum numbers of respondents are ready to
spend upto Rs.1,00,000/- and above for paints.

59

Exhibit :4
USAGE OF DIFFERENT INTEROIOR PRODUCTS
Interior Products

Frequency

%of
Respondents

Enamel

14

22

Distemper

34

52

Polish

Emulsion

13

20

Graph: 4

Enamel
Distemper
Polish
Emulsion

60

INFERENCE:
From the above table out of 65 respondents, it is found that 22% of
the respondents are in requirements of enamel paint for their interiors,
52% of the respondents required the interior paint like distemper, 6% of
the respondents are in requirement of Asian Paint polish, while the other
20% of the respondent are in requirement of Emulsion.
In interior product usage, there is a greater demand for the
distemper followed by the enamel.

61

Exhibit :5
USAGE OF DIFFERENT EXTEROIOR PRODUCTS
Exterior Products

Frequency

%of
Respondents

Cement Paint

12

18

Textured

Emulsion

23

35

Permanent Finish

SnowCem

26

40

Graph: 5

Enamel
Distemper
Polish
Emulsion

62

INFERENCE:
From the above table out of 65 respondents, it is found that 18% of
the respondents are in requirement of cement paint for their exterior
purpose, 5% of the respondents are in requirement of textured, where as
35% of the respondents required the Exterior Paint like emulsion and 2%
of the respondent are in requirement of permanent finish product, while
the remaining 40% of the respondents are in requirement of Snowcem.
Snowcem had a greater demand, because most of the middle class
families are using Snowcem, and next to snowcem the familiar product is
emulsion.

63

Exhibit :6
LIFE EXPECTANCE FOR INTERIOR PAINTS BY CUSTOMERS
Period

Frequency

%of
Respondents

6 months

1 Year

2 Year

14

5 Year

56

86

Graph : 6

2 Year
5 Year

64

INFERENCE:
From the above table, out of 65 respondents, it is found that 14% of
the respondents or customers are expecting the life of interior paint to be 2
years and the remaining 86% of the customers are expecting more than 5
years of lie, for their interior products.
In details, if we go, No customer is expecting life below 2 years.
And most of the customers are expecting their product life above 5 years.

65

Exhibit :7
LIFE EXPECTANCE FOR EXTERIOR PAINTS BY CUSTOMERS
Period

Frequency

%of
Respondents

6 months

1 Year

5-

2 Year

22

34

5 Year

40

61

Graph :7

1 Year
2 Year
5 Year

INFERENCE:

66

From the above table, out of 65 respondents, we can find that 61% of
the customers are expecting more than 5 years of life for the exterior paints
and 34% of customers are expecting more than a life of 2 years, while the
remaining 5% of respondents are expecting more than 1 year of life for
their exterior paints.
No one among respondents are expecting the life of interior paint
products for less than 1 year.

67

Exhibit: 8
TYPE OF FINISH REQUIRED FOR EXTERIOR PAINTS BY
CUSTOMERS

Type of Finish

Frequency

%of
Respondents

Smooth

44

68.5

Textured

12

18

Permanent

12

Others

1.5

Graph: 8

Smooth
Textured
Permanent
Others

68

INFERENCE:
From the above table, out of 65 respondents, A smooth type of
finish is required by 68.5% of the respondents where as 18% of the
respondents require a textured type of finish, and 12% of the customers
require permanent type of finish, while the remaining 1.5% of the
customers require other type of finishes.

69

Exhibit :9
TYPE OF FINISH REQUIRED FOR INTERIOR PAINTS BY
CUSTOMERS

Type of Finish

Frequency

%of
Respondents

Distemper

50

77

Emulsion

15

23

Graph: 9

Distemper
Emulsion

70

INFERENCE:
From the above table, out of 65 respondents, Distemper finish is
required by 77% of the respondents, while the other 23% of the
respondents require emulsion finishing for their interiors.

71

Exhibit :10
WOOD FINISH PRODUCT PREFERENCE BY CUSTOMERS

Type of Finish

Frequency

%of
Respondents

Enamel(glassy)

57

87

Enamel(satin)

8.5

Melamine

Poly Utherene (OPAL)

1.5

Graph : 10

Enamel(glassy)
Enamel(satin)
Melamine
Poly Utherene
(OPAL)

72

INFERENCE:
From the above table, out of 65 respondents, it came to know that
87% of the respondents prefer for enamel(glassy) type of wood finish,
where as 8.5% of the respondents prefer for Enamel(satin) type of wood
finish, and 3% of the respondents prefer Melamine and the remaining
1.5% of the respondents prefer poly-utherene type of wood finish.
So it is clear from the above analysis that most of the respondents
i.e.,87% of the respondents are going for enamel(glassy) type of wood
finish.

73

Exhibit :11
AWARENESS ABOUT ASIAN PAINTS PRODUCTS
Awareness

Frequency

%of
Respondents

Yes

59

90

No

10

Graph : 11

Yes
No

74

INFERENCE:
From the above table, out of 65 respondents, it came to know that
90% of the respondents are aware of Asian Paint Products , while the other
10% of the respondents are not aware of Asian Paint Products.
So company can go for some more awareness programme in order
to capture the remaining unaware sector.

75

Exhibit :12
AWARENESS ABOUT COLOUR WORLD CONCEPT

Awareness

Frequency

%of
Respondents

Yes

23

35

No

42

65

Graph : 12

Yes
No

76

INFERENCE:
From the above table, out of 65 respondents, 35%f the respondents
are aware of Colour Worldtinting machines concept of Asian paints,
while the other 65% of the respondents are not aware of this concept.
So, the company need to communicate about the a Colour World
tinting machine concept to the customers by conducting awareness
programme or by advertisement.

77

Exhibit :13
CUSTOMERS CHOICE OF COMPANY FOR INTEREIORS

Name of the Company

Frequency

%of
Respondents

Asian

37

57

Berger

16

25

Nerolac

Others

10

Graph : 13

Asian
Berger
Nerolac
Others

78

INFERENCE:
From the above table, out of 65 respondents, 87% of the respondents
are opting for Asian Interior Paints, while 25% of the respondents are
preferring for Berger Interior Paints, and 8% of the respondents are opting
for Nerolac Interior Pains, where as the remaining 10% of the respondents
are opting for some other companies for the interiors.
So, it is clear that Asian Interior Paint products have more customer
preference when compared to other brands.

79

Exhibit :14
CUSTOMERS CHOICE OF COMPANY FOR EXTEREIORS
Name of the Company

Frequency

%of
Respondents

Asian

32

50

Berger

15

23

Nerolac

58

12

Others

10

15

Graph : 14

Asian
Berger
Nerolac
Others

80

INFERENCE:
From the above table, out of 65 respondents, 87% of the
respondents are opting for Asian Exterior Paints, while 23% of the
respondents are preferring for Berger Exterior Paints, and 12% of the
respondents are opting for Nerolac Interior Pains, whereas as the
remaining 15% of the respondents are opting for some other companies
for the interiors.
When compared to interior paints, company exterior paints are not
preferred by some of the customers who were preferring Asian paint
interior products.

81

Exhibit :15
TYPE OF GUIDANCE EXPECTED FROM COMPANY BY THE
CUSTOMERS

Type of Guidance

Frequency

%of
Respondents

Provide

details

on

recent

25

38

Educate on product features

15

24

Appraise on product suitability

Knowledge of sales Discount

10

15

Budgeting while painting

10

15

development & products

Graph : 15

Provide details on
recent development &
Products
Educate on product
features
Appraise on product
susitability
Knowledge of sales
Discount
Budgeting while
painting
Slice 6
ting

INFERENCE:

82

From the above table, out of 65 respondents, it was found that 38%
of the respondents are in need of guidance regarding the details on recent
development and products, whereas 24% of the respondents are in need of
guidance regarding education on product features. While 8% of the
respondents are in need of guidance for appraise on product suitability.
15% of the respondents are in need of guidance regarding the knowledge
on sales discounts. While the remaining 15% of the respondents are in
need of guidance regarding the Budgeting while Painting.

83

SUMMARY
Paint industry has shown a rapid growth in the last year 2003-2004,
and since then there has been a decreasing growth in the industry.
Asian Paints one of the largest paint companies in India, which
has shown a tremendous growth since its establishment, liberalization.
This is an achievement, achieved by careful planning a following firm
procedures set by the company management.
Asian is qualitative company with strict rules and regulations. All
the planning takes place at the central office Mumbai.
Each Asian paint production center has a distinguished packing so
that by looking at the drum or cartons the plant identification become easy
to the godown incharge.
The company has a excellent distribution network which is the
prime reason for its success followed by marketing plans.
The company has a full fledge research of development function,
whose aim is develop and present new products every year.
The price and selection of target is also done to protection.
Considering the promotional part Asian Paints employed Ogilvy and
Mather to attract the customers.

84

Asian Paints has developed many brands and which have well
penetrated in the minds of customers.
Ex: Apcolite, Apex, ACE, etc.,
And Asian Paints was the first to enter with manual color
dispensing concept which took off with the advent of computers, Asian is
not lacking behind in this they have developed Colour World for the
consumers with 1150 shades to be selected from.
The study of my topic is Customer Awareness with reference to
Asian Paints India Limited. And Advertising, sales promotion, personal
selling, public relations, and publicity are the customers awareness
programs to be conducted by the company .

85

FINDINGS
As a part of my study, survey on Customer Awareness was
conducted during May June 2000. Important findings are concerning
from the customers, have resulted from the survey. They are summarized
in following paragraph.
There are 65 respondents in the sample of a study on Customer
Awareness.
The First and foremost observation that has been made from the study
is that Asian Paints is the leader in the industry of paints. It has a
very high brand equity in the market.
According to observations of the survey, price is the dominating
factors, which influences the purchasing decision of the respondents
followed by quality, company name, coverage and service. Comparing
to competitors Asian Paint Company Prices is high.
From the analysis point of view, when compared to interior paints,
company exterior paints are not preferred by some of the customers,
who are preferring Asian Paints interior product.
At last, most of the customers are satisfied with Asian Paint products,
but at the same time they require guidance regarding the recent
development of the products.

86

SUGGESTIONS
Sales promotion committee should be formed to formulate and implement

new market strategies to compete with competitors and to extend the market
share.
Company sales representatives must maintain relations with construction

companies as well as with painting contractors with the help of the dealers.
Company should conduct meetings, at least to make the customers to know

about the latest development in the paint industry and their products.
Companies should even concentrate on Exterior Paints as its market share is

very low.
Advertisement should be increased to update the image of Asian Paints in

the changing environment.

Company must look after, there is a close relationship between sales

representatives and dealers with the customers.

Company should maintain the customer records.

87

BIBLIOGRAPHY
Principles of Management
Philip Kotler
Marketing Management
Rama Swamy
The Hindu Guide Magazines
Business India
WEBSITE:
www.asianpaints.com

88

CUSTOMER AWARENESS
(A Study with reference to Asian Paints India Ltd.)
A Project report submitted to Andhra University, Visakhapatnam in
partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

By

K. SRINIVASA RAO
Under the esteemed guidance of

Mr. G. SRINIVASA RAO, M.Sc., M.B.A.,M.Phil, P.G.D.C.A.

Head of the Department

DEPARTMENT OF MANAGEMENT STUDIES

SAMATA DEGREE & P.G. COLLEGE
(Affiliated to Andhra University and Approved by A.I.C.T.E)

VISAKHAPATNAM-530017
2003-2005
89

CERTIFICATE
This is to certify that project titled "CUSTOMER AWARENESS"
with reference to Asian Paints India Limited, Visakhapatnam submitted
by Mr. K. SRINIVASA RAO, to the college of Management Studies,
SAMATA DEGREE & P.G. COLLEGE in partial fulfillment for the award
of the Degree of MASTER OF BUSINESS ADMINISTRATION is a
record of bonafide work carried out by her under my guidance and
supervision.

Place: Visakhapatnam
Date:

Mr.G.SRINIVASA RAO
M.Sc., M.B.A.,M.Phil, P.G.D.C.A.

H.O.D.& Project Guide

Samata Degree & P.G.College,
Visakhapatnam.

90

ACKNOWLEDGEMENT
I express our deep sense of gratitude and indebtedness to
Mrs.R.VIJAYA RAVINDRA, Principal, Samata Degree and P.G. College,
Visakhapatnam, for the encouragement given to me to complete the
project and for the facilities provided to me through out the project.
I am thankful to our guide and coordinator Mr. G.SRINIVAS RAO,
M.Sc, MBA, M.Phil, PGDCA, for his valuable guidance and kind
cooperation right from the beginning of the project report. I am thankful
very much for his kind constant encouragement and guidance shown
during the course of our project.
I also extend my sincere gratitude to the Visakhapatnam Area
Manager of Asian Paints India Ltd., for giving me the opportunity to
complete the project under their able guidance.
I express

my gratitude to Mr. NAGA RAJU (Area Manager),

Mr. KRISHNAM RAJU (Project Sales Incharge), for their continuous

support and encouragement throughout my project work. Last but not the
least, I would like to express my sincere thanks to the respondents and
my others not specially mentioned.

K. SRINIVASA RAO

91

CHAPTER I
INTRODUCTION
OBJECTIVES OF THE STUDY
NEED FOR THE STUDY
METHODOLOGY
LIMITATIONS OF THE STUDY

92

CHAPTER II
PAINTS THE COLOUR OF OUR
LIFE
PROFILE OF PAINT INDUSTRY
(A Profile)

PROFILE OF THE COMPANY

93

CHAPTER III

THEORETICAL ASPECTS

94

CHAPTER IV

ANALYSIS & INTERPRETATION

95

CHAPTER V
SUMMARY
FINDINGS
SUGGESTIONS

96

Annexure

97

Bibliography

98

CONTENTS
Page No.
CHAPTER I
Introduction

Objectives of the Study

Need for Study

Methodology

Limitations of the Study

CHAPTER II
Paints The Colour of our Life

Profile of Paint Industry (A Profile)

10

Profile of the Company

33

CHAPTER III
Theoretical Aspects

42

CHAPTER IV
Analysis of the Study

51

CHAPTER V
Summary

81

Findings

83

Suggestions

84

BIBLIOGRAPHY
ANNEXURES

99

TABLE AND GRAPH INDEX

Table and
Graph No.

Description

Page
No

Customer Purchasing Pattern

51

Experience in Painting Process

53

Approximate Budget towards Painting

55

4.

Usage of Different Interior Products

57

Usage of Different Exterior Products

59

Life Experience for Interior Pains by

Customers

61

Life Experience for Exterior Pains by

Customers

63

Type of Finished required for Exterior

Paints by Customers

65

Type of Finished required for Interior

Paints by Customers

67

10

Wood Finish Product Preference

Customers

69

11

Awareness About Asian Paints Products

71

12.

Awareness about Colour World Concept

73

13

Customer choice of company for Interiors

75

14

Customer choice of company for Exteriors

77

15

Type of Guidance expected

Company by the Customers

79

100

by

from

DECLARATION

declare

that

this

project

report

entitled

CUSTOMER

AWARENESS of Asian Paints India Ltd., Visakhapatnam submitted by

me to the SAMATA DEGREE & P.G College of Management Studies,
Affiliated to Andhra University, is my own and is not submitted to any
other University or has been published anytime before.

Place: Visakhapatnam

(K. SRINIVASA RAO)

Date:

101