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Customer Preferances Asian Paints PDF
Customer Preferances Asian Paints PDF
the result of hard realities. Too much of protection for too long a time has
Exchequer. Too much of regulation for too long time on private sector
Fund and World Bank refuse additional finance for India unless Indian
economy is revamped.
1
OBJECTIVES
PRIMARY OBJECTIVES:
Paints Industry.
other customers.
SECONDARY OBJECTIVES:
Paint Products.
2
NEED FOR STUDY
The need for this can be explained if one knows the importance of
the Customer awareness and its role in the success of an organization has
been explained.
product and price is according and sell through the dealers and retailers
want and the purchasing power, it depends on the product, therefore, the
and effectively.
them have to care fully look into the minds of the consumers and place the
3
METHODOLOGY
both primary and secondary data is needed. It has been therefore found
Primary Data has been collected from the industrial buyer during
stratified sample of 65 respondents have been taken for carrying out the
study.
The data relating to Asian Paints has been collected from company
records.
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.
whole population. It will not carry the total reflection of the copier
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
5
PAINTS – THE COLOUR OF OUR LIFE
(A PROFILE)
What is Paint?
Solvents
Binders
Pigments
Additives
Solvents
Binders
Which hold the paint together, as well bind it to the surface that is
Pigments
Additives
Which give paint special properties such as resistance to fungus, rust ..etc.,
6
Paints can be distinguished as
EMULSIONS :
durable and give wall silky and smooth finish. They washable and easy to
maintain.
DISTEMPERS:
These are also water based paints but their binders may be very
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.
EXTERIOR FINISHES:
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:
8
PRIMERS:
Eg:
Woodorite Primer.
FILLERS / PUTTIES:
AUTOACQUER:
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
paints account for 70% and Decorative paints for the balance of 30%.
increasingly intense.
The decreasing growth rate has made the paint companies to woo
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
IMPORTANCE
them from
Emnvironmental Corrosion.
CATEGORIES
Industrial Paints.
12
Industrial Paints:
This market can be further divided into the following four sub
Automotive paints.
Marine Paints.
Powder Paints
a share of 50 – 70%.
cement paints.
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
intensive and hence the presence of the unorganized sector is very limited.
paints. This can be explained by the fact that to bag an order from
paint.
governments this resulted in higher excise duty and higher end prices,
reduction of the excise duty from 40% in 93-94 to 18% in 96-97, the
14
As already mentioned paints were viewed as luxury item by many
even today. Their productive value is not under stood and repainting is
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
painting the Indian paints Association (IPA) had brought slogan in 1995
customers effectively.
Colour Dispenser:
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.
per the demand after mixing the bases with strainers through colour
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.
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
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
offered qualitative product at low material cost. Both Apex and Excel
have propelled the exterior paints growth by over 60% in 2002 and the
concept of taking care of the complete painting job has been under taken
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
17
POWDER COATINGS
CORPORATION of U.S.
PAINTS DEFINED
our ingredients namely pigments, resins, solvents and additives which the
Resins:- PAN,Pentaerythrill
18
To conclude the following are the critical factors in success in
DECORATIVE PAINTS
Managing logistics
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
Ankleshwar
19
Bhandup
Patancheru
Kasna
PLANT IDENTIFICATION
Plant identification marks for cartoons, drums, tins are given below.
Bhandup plant
Ankleshwar plant
20
Alphabets A as label indicate Ankleshwar plant
Patacncheru plant
Kasna plant
3. Drums have one brand with three dots with nine alternatives.
PRICING
product or service .
21
Price has ben the major factor in affecting buyer choice. This is still
If written in equation
22
Those dealers who has regular payment of performance are
benefited largely by cash discount and those dealers whose payment is not
Thus it can be said that the company has very stringent rules regarding
PROMOTION
agency.
TARGET GROUP
Eg:
23
Utsav - rural (chunna and distemper)
24
FACTORS BEHIND SUCCESS OF ASIAN PAINTS
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
acumen. The company has made excellent use of the electronic and print
media, besides publishing informative brochures for all its products. The
25
Critical Success factors – Distribution
that the semi-urban was untapped and the small consumer neglected. To
distribution network across the whole country. From small towns Asian
network with 17,000 retailers across the country is making the company
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
are usually classified as wall, metal, wood and plastic finishes. The
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:
finish
Industrial Segment
Automotives
Allkyd, autocare.
27
Primers
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
28
various customer segments. It can satisfy customers’ desires to provide a
distempers market was a similar move, which was a departure from its
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
long term strategy to penetrate the rural market. The overall marketing
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
distempers and lime ash, hawked in a brand band of Rs. 3 to Rs. 25.
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,
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
market.
Unorganized sector brands were priced low and offered heavy dealer
30
Consumer preferences heavily influenced by regional cultures,
Servicing a huge semi-urban and rural market would entail huge up-
customer dissatisfaction.
High degree of awareness about the company among the target market
constituents.
pressures
31
Core competence in paints, wide variety and well-developed R & D.
markets.
habit.
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
required.
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. 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
incorporate market feedback from the other regions and change the
33
Undertook innovative promotional campaigns, like arranging
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
Utsav has been a success in the markets where it has been launched.
The brand has gained market share at the expense of local packed
distemper brands. Margins for the product are low about 2-3%, while
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
Asian paints – one of the largest among the top 10 decorative paint
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.
India.
35
The closest competitors of Asian paints do not have even half of
Asian paints turn over in other major performance factors like Profits,
How did Asian paints achieve this success? Naturally, it was the
through its distribution that Asian paints took its marketing endeavor to
perfection.
THE COMPANY
36
# ANKLESWAR GUJRAT 1980
# KASNA
paints among all the paint companies in India, in terms of products shades
subsidiaries.
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
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
DISTRIBUTION
Asian paints offer the widest range of products, shades and packs to the
37
This is achieved through a sophisticated material distribution
excise duty has not been paid is stored. Each plant has a bonded store
these materials are dispatched it moves out of the bonded store room.
will often be made to an SKU and SAU. An sku is acronym for stock
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
38
Inventoried sku are those for which constant demand for which
FORM-A
system.
FORM-B
branches / depots.
FORM-C1
company level.
FORM-C2
levels.
FORM-D
39
FORM-E
FORM-F
stocks, old stock –packed before 3yrs for trade products and beyond
40
2. DD/Pay date of DD as the ordered customer is debited as soon as DD
Phase-I
share for total and major products, growth assessment segment wise for
this purpose retail audit is conducted. All the sale representatives collect
Phase-I I
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
41
Phase-IV
B: input plans
PROFITS
Asian Paints during the year 2003 – 2004 made huge profits.
extend the credit period. In spite of having such stringent policies the
work of great managers and sales staff of the company. It indicated the
company dominate the decorative paints segment, and the whole thing is
Asian Paints net sales rise by 16.08% and net profit rise by 13.24% in
PRODUTION CAPACITY
42
ANKLESHWAR
BHANDUP
PATANCHERU
KASNA
The production plats are like four pillars to the company and the
7produce four new products every year. And the new products added till
dates are
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
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
THEORTICAL ASPECTS
INTRODUCTION:
Companies can outdo their competition if they can move from a product
task is “to create customers.” But today’s customers face a vast array of
Now the customers started estimating which offer will deliver the
44
expectation of value and act on it. Whether or not the offer lives up to the
CUSTOMR AWARENESS:
of the products.
PHILLIP KOTLER
company.
45
4. Awareness includes, advertising, personal selling and other sale
promotion techniques.
Consumers must have awareness about the new products and their
they must inform consumers about the product benefits and carefully
ADVERTISING:
sponsor.
-- PHILLIP KOTLER
46
have dug up signs announcing various events and offers. The roman
pictures promoting their waves and large locks along parade routes.
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
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
However some specific factors are that should be considered when the
3. Message Decision
have very different results studies show that creative advertising message
spent.
4. Message Strategy
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
48
Reach is a measure of the percentage of the people in the target
time.
medium.
Newspapers Magazines
Televisions Radios
Outdoors Internet
c) Media timing
SALES PROMOTIOIN
publicity and public relations which are used in promoting sales of the
49
Samples - Offers to consumers of a trail amount of a product.
specified product.
manufacture.
Premiums – Goods offered either free or low cost and incentive to buy a
product.
Patronage reward – Cash or other rewards for the regular use of a certain
time.
PUBLIC RELATIONS
50
Another major promotion tool ism public relations – building good
unfavorable rumors, stores and events. The old name for marketing
paid for by the sponsor. Public relations are much broader concept that
relations.
relations.
51
PERSONAL SELLING
PUBLICITY
52
53
Exhibit :1
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 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
Respondents Respondents
65 65 100
Graph : 2
0%
100
100%
56
INFERENCE:
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
57
Exhibit :3
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
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
59
Exhibit :4
Graph: 4
Enamel
Distemper
Polish
Emulsion
60
INFERENCE:
the respondents are in requirement of Asian Paint polish, while the other
61
Exhibit :5
Graph: 5
Enamel
Distemper
Polish
Emulsion
62
INFERENCE:
35% of the respondents required the Exterior Paint like emulsion and 2%
families are using Snowcem, and next to snowcem the familiar product is
emulsion.
63
Exhibit :6
Graph : 6
2 Year
5 Year
64
INFERENCE:
years and the remaining 86% of the customers are expecting more than 5
And most of the customers are expecting their product life above 5 years.
65
Exhibit :7
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
67
Exhibit: 8
CUSTOMERS
Graph: 8
Smooth
Textured
Permanent
Others
68
INFERENCE:
69
Exhibit :9
CUSTOMERS
Graph: 9
Distemper
Emulsion
70
INFERENCE:
71
Exhibit :10
Graph : 10
Enamel(glassy)
Enamel(satin)
Melamine
Poly Utherene
(OPAL)
72
INFERENCE:
finish.
73
Exhibit :11
Graph : 11
Yes
No
74
INFERENCE:
90% of the respondents are aware of Asian Paint Products , while the other
75
Exhibit :12
Graph : 12
Yes
No
76
INFERENCE:
while the other 65% of the respondents are not aware of this concept.
programme or by advertisement.
77
Exhibit :13
Graph : 13
Asian
Berger
Nerolac
Others
78
INFERENCE:
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
So, it is clear that Asian Interior Paint products have more customer
79
Exhibit :14
Graph : 14
Asian
Berger
Nerolac
Others
80
INFERENCE:
respondents are opting for Asian Exterior Paints, while 23% of the
respondents are preferring for Berger Exterior Paints, and 12% of the
remaining 15% of the respondents are opting for some other companies
interior products.
81
Exhibit :15
CUSTOMERS
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%
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.
that by looking at the drum or cartons the plant identification become easy
84
Asian Paints has developed many brands and which have well
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
85
FINDINGS
from the customers, have resulted from the survey. They are summarized
in following paragraph.
Awareness”.
The First and foremost observation that has been made from the study
At last, most of the customers are satisfied with Asian Paint products,
but at the same time they require guidance regarding the recent
86
SUGGESTIONS
new market strategies to compete with competitors and to extend the market
share.
companies as well as with painting contractors with the help of the dealers.
about the latest development in the paint industry and their products.
very low.
87
BIBLIOGRAPHY
Principles of Management
Philip Kotler
Marketing Management
Rama Swamy
Business India
WEBSITE:
www.asianpaints.com
88
CUSTOMER AWARENESS
(A Study with reference to Asian Paints India Ltd.)
By
K. SRINIVASA RAO
89
CERTIFICATE
SAMATA DEGREE & P.G. COLLEGE in partial fulfillment for the award
supervision.
90
ACKNOWLEDGEMENT
K. SRINIVASA RAO
91
CHAPTER – I
INTRODUCTION
OBJECTIVES OF THE STUDY
NEED FOR THE STUDY
METHODOLOGY
LIMITATIONS OF THE STUDY
92
CHAPTER – II
93
CHAPTER – III
THEORETICAL ASPECTS
94
CHAPTER – IV
95
CHAPTER – V
SUMMARY
FINDINGS
SUGGESTIONS
96
Annexure
97
Bibliography
98
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
CHAPTER – III
Theoretical Aspects 42
CHAPTER – IV
CHAPTER – V
Summary 81
Findings 83
Suggestions 84
BIBLIOGRAPHY
ANNEXURES
99
TABLE AND GRAPH INDEX
100
DECLARATION
101