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.

1
 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.

2
 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.

3
 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.

4
 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.

5
 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.,

6
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.

7
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.

8
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

9
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. While industrial paints share the balance of 30%.

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,

11
flexibility in payment, foreign trips for selling even low value

products and the like. The increasing competition to offer

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.

12
 Price: Premium, Medium, Economy etc.,

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

13
and hence the unorganized 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 90’s 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

15
first salvo in offering 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.

16
Consumer have also benefited by this concept as the shopping

environment has changed dramatically with the advent of CCD.

EXTERIOR MARKET

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

18
 Pigment:- Titanium dioxid

Resins:- PAN,Pentaerythrill

Together these constitute 40-50% of the total raw material

dependent on the category of paints.

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

19
 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

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.

20
 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.

 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.

21
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 .

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%

22
 + 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.

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.

23
TARGET GROUP

According to the information provided by the company

personnel the target group differs from product to product.

Eg:

Utsav - rural (chunna and distemper)

Distemper - middle income group

Royal - 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 company’s 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,

26
automotives, or undercoats. Their end use could be in the sign

board, bus body, industry or household segments.

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.

27
Automotives

 Kirlo – an Acrlic Paint, Apca – nitro-cellulose based Paint, Aspa

– an Allkyd, autocare.

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

28
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 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.

29
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 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

30
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.

 Consumer preferences heavily influenced by regional cultures,

lifestyles, hence the market was fragmented.

 Servicing a huge semi-urban and rural market would entail

huge up-front 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 sector’s products

(Rs.3-25 ).

31
 Danger of eroding Tractor’s 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 Company’s 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

 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.

32
 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

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.

33
 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 company’s established 15,000

strong dealer network.

 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.

34
 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.

35
 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 . It’s 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.

36
 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

37
facilities of the company for paint products are currently spread

over four locations

# BHANDUP MAHARASTRA 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

38
 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.

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 movement’s 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.

39
Eg. Apcolite synthetic enamel 500ml bus green is one

sku

Apcolite synthetic enamel 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

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 sku’s is affected through multi plant

distribution system.

FORM-B

Bazaar sku’s which shades are under the specific focus

of management group new products, packs are not inventoried

at all branches / depots.

FORM-C1

40
 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.

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

41
 pay order upcountry dealers or
cash
location, local cheques if the
dealer
has local bank account.

Industrial customer’s local cheques, D.D payable locally. In

case absolutely necessary an upcountry cheques or D.D’s.

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.

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

42
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.

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

43
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

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.

44
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

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:

45
 Today’s 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

company’s first task is “to create customers.” But today’s

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 expectation of value and act on it.

Whether or not the offer lives up to the value expectation affects

customer’s 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

46
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.

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.

47
 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 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.

48
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.

 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.

49
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

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.

50
 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, off-spring etc., are the examples of sales

promotion techniques.

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.

51
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

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.

52
 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.

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.

53
 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.

54
Exhibit :1

CUSTOMER PURCHASING PATTERN

Occupation Frequency %of

Respondents
Builders 55 85
Contractors 4 6
Engineer 1 1.5
Others 5 7.5
Total 65 100

Graph :1

8%
2%
6%

Builders
Contractors
Engineers
Others

84%

55
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.

56
Exhibit :2

EXPERIENCE IN PAINTING PROCESS

No. of Experienced %of

Respondents
Respondents Respondents

65 65 100

Graph : 2

0%

100

100%

57
INFERENCE:

It is found that all the respondents have experienced in

painting process, even though, the buyers are purchasing then

products for the 1st time, since it is known that buying of paints

can be not only for self but even for other such as relations and

friends.

58
Exhibit :3

APPROXIMATE BUDGET TOWARDS PAINTING

Value of the Budget Frequency %of

Respondents

Below 50,000 12 18

50,000 – 75,000 4 6

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

59
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.

60
Exhibit :4

USAGE OF DIFFERENT INTEROIOR PRODUCTS

Interior Products Frequency %of

Respondents
Enamel 14 22
Distemper 34 52
Polish 4 6
Emulsion 13 20

Graph: 4

Enamel
Distemper
Polish
Emulsion

61
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.

62
Exhibit :5

USAGE OF DIFFERENT EXTEROIOR PRODUCTS

Exterior Products Frequency %of

Respondents
Cement Paint 12 18
Textured 3 5
Emulsion 23 35
Permanent Finish 1 2
SnowCem 26 40

Graph: 5

Enamel
Distemper
Polish
Emulsion

63
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.

64
Exhibit :6

LIFE EXPECTANCE FOR INTERIOR PAINTS BY CUSTOMERS

Period Frequency %of

Respondents
6 months - -
1 Year - -
2 Year 9 14
5 Year 56 86

Graph : 6

2 Year
5 Year

65
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.

66
Exhibit :7

LIFE EXPECTANCE FOR EXTERIOR PAINTS BY CUSTOMERS

Period Frequency %of

Respondents
6 months - -
1 Year 3 5-
2 Year 22 34
5 Year 40 61

Graph :7

1 Year
2 Year
5 Year

INFERENCE:

67
 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.

68
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 8 12
Others 1 1.5

Graph: 8

Smooth
Textured
Permanent
Others

INFERENCE:

69
 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.

70
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

71
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.

72
Exhibit :10

WOOD FINISH PRODUCT PREFERENCE BY CUSTOMERS

Type of Finish Frequency %of

Respondents
Enamel(glassy) 57 87
Enamel(satin) 5 8.5
Melamine 2 3
Poly Utherene (OPAL) 1 1.5

Graph : 10

Enamel(glassy)

Enamel(satin)

Melamine

Poly Utherene
(OPAL)

INFERENCE:

73
 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.

74
Exhibit :11

AWARENESS ABOUT ASIAN PAINTS PRODUCTS

Awareness Frequency %of

Respondents
Yes 59 90
No 6 10

Graph : 11

Yes

No

75
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.

76
Exhibit :12

AWARENESS ABOUT COLOUR WORLD CONCEPT

Awareness Frequency %of

Respondents
Yes 23 35
No 42 65

Graph : 12

Yes

No

77
INFERENCE:

From the above table, out of 65 respondents, 35%f the

respondents are aware of “Colour World”tinting 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.

78
Exhibit :13

CUSTOMERS’ CHOICE OF COMPANY FOR INTEREIORS

Name of the Frequency %of

Company Respondents
Asian 37 57
Berger 16 25
Nerolac 5 8
Others 7 10

Graph : 13

Asian
Berger
Nerolac
Others

INFERENCE:

79
 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.

80
Exhibit :14

CUSTOMERS’ CHOICE OF COMPANY FOR EXTEREIORS

Name of the Frequency %of

Company Respondents
Asian 32 50
Berger 15 23
Nerolac 58 12
Others 10 15

Graph : 14

Asian
Berger
Nerolac
Others

INFERENCE:

81
 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.

82
Exhibit :15

TYPE OF GUIDANCE EXPECTED FROM COMPANY BY THE

CUSTOMERS

Type of Guidance Frequency %of

Respondents
Provide details on recent 25 38

development & products

Educate on product features 15 24
Appraise on product 5 8

suitability
Knowledge of sales Discount 10 15
Budgeting while painting 10 15

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:

83
 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.

84
 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.

85
 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.

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

86
 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.

87
 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.

88
 BIBLIOGRAPHY

Principles of Management

Philip Kotler

Marketing Management

Rama Swamy

The Hindu Guide Magazines

Business India

WEBSITE:

www.asianpaints.com

89
 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

90
 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 Mr.G.SRINIVASA RAO

Date: M.Sc.,
M.B.A.,M.Phil, P.G.D.C.A.
H.O.D.& Project Guide
Samata Degree &
P.G.College,
Visakhapatnam.

91
 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

92
CHAPTER – I

 INTRODUCTION
 OBJECTIVES OF THE STUDY
 NEED FOR THE STUDY
 METHODOLOGY
 LIMITATIONS OF THE STUDY

93
CHAPTER – II

 PAINTS – THE COLOUR OF

OUR LIFE
 PROFILE OF PAINT INDUSTRY
(A Profile)
 PROFILE OF THE COMPANY

94
CHAPTER – III
 THEORETICAL ASPECTS

95
CHAPTER – IV
 ANALYSIS & INTERPRETATION

96
CHAPTER – V

 SUMMARY
 FINDINGS
 SUGGESTIONS

97
Annexure

98
Bibliography

99
 CONTENTS
Page No.

CHAPTER – I

 Introduction 1
 Objectives of the Study
2
 Need for Study
3
 Methodology 4
 Limitations of the Study
5

CHAPTER – II

 Paints – The Colour of our Life

6
 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

100
 Suggestions
84
BIBLIOGRAPHY
ANNEXURES

101
 TABLE AND GRAPH INDEX

Table and Description Page

Graph No. No
1 Customer Purchasing Pattern 51
2 Experience in Painting Process 53
3 Approximate Budget towards 55
Painting
4. Usage of Different Interior Products 57
5 Usage of Different Exterior Products 59
6 Life Experience for Interior Pains by 61
Customers
7 Life Experience for Exterior Pains by 63
Customers
8 Type of Finished required for Exterior 65
Paints by Customers
9 Type of Finished required for Interior 67
Paints by Customers
10 Wood Finish Product Preference by 69
Customers

11 Awareness About Asian Paints 71

Products
12. Awareness about Colour World 73
Concept
13 Customer choice of company for 75
Interiors
14 Customer choice of company for 77
Exteriors
15 Type of Guidance expected from 79

102
Company by the Customers

103
 DECLARATION

I 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:

104