Internship Report

Cimage Professional College

Patna

Affiliated to Aryabhatta Knowledge University

A Project Report On
Sales and Marketing Framework of
‘Kansai Nerolac Paint’

In Partial fulfillment for the award of the degree of

Bachelor of Business Administration (2020-2023)

Under guidance of: Submitted by:

Mr. Nandan Kumar Prashant Raj
KNPL Patna Reg. No.-20302310058
BBA 5th Sem (2020-2023)

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Acknowledgement
I take this opportunity to express my deep sense of gratitude, thanks and
regards towards all of the people who have directly or indirectly helped me in
the successful completion of this project. And I am really grateful to state that I
have managed to successfully complete this internship on time. I wish to
express my deep sense of gratitude to my project guide Mr. Nandan Kumar for
his valuable guidance and help in completion of this project work.

I would like to thank my college director Mr. Neeraj Agrawal, Principal Dr.
Pawan Kumar Jha for their constant guidance to conduct the Present Project.
I also sincerely thanks Mr. Nandan Kumar for his constant supervision as well
as for providing me with the necessary information regarding the Internship
Program Assignment and also his support in completing this internship
assignment.
I am grateful to all faculty members of Cimage Professional College, Patna and
Aryabhatta Knowledge University to keep vision on our project and also my
friends who have helped me in the successful completion of this project.

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Project Introduction
The internship is undertaken at Kansai Nerolac Paint for a duration of 1 month
in Patna, Bihar. The project is done on the topic “Sale and marketing
Framework” during the 5th semester of Bachelor of Business Administration by
Cimage Professional College.

Sales framework is a structured approach to selling that outlines the steps

involved in the sales process. It provides a clear roadmap for sales
professionals to follow, helping them to be more efficient, effective and
consistent in their sales efforts.

Marketing refers to activities a company undertakes to promote the buying or

selling of a product or service. It includes advertising, selling, and delivering
products to consumer or other businesses. Marketing is about customer
satisfaction. Marketing is about planning and executing the development,
pricing, distribution and promotion of product and services to satisfy the needs
of your customer. The main role of marketing is to deliver customer value to
attracting new customers and keeping existing ones.

The marketing framework is the visual representation of how marketing is

done in once’s business. It details how to execute any marketing plans and
deliver the content to the audience. Sometimes, it is called the marketing
strategy framework. A marketing framework is meant to help the marketing
team function at its highest level. There are several benefits to create a
marketing framework.

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Declaration of Student

This is to certify that the project report entitled “Sales and Marketing
Framework – A case study of Kansai Nerolac Paints” submitted to Aryabhatta
Knowledge University in partial fulfillment of the requirement for the award of
the degree of Bachelor of Business Administration, is an original work carried
out by Prashant Raj, Registration No.- 20302310058 under the guidance of Mr.
Nandan Kumar.
The matter embodied in this project is a genuine work done by the student and
has not been submitted whether to this university or to any other university/
institute for the fulfillment of the requirement of any course of study.
RESEARCH GUIDE:
Mr. Nitish Rohatagi
Prof, Cimage Professional College

Signature of the Student

Name: Prashant Raj
Address: Patna

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Project Supervisor Details

 Company’s Guide Name – Mr. Nandan Kumar

 Email Id - nandankumar@nerolac.com

 Company Name – Kansai Nerolac Paint Limited (KNPL)

 Address – New bypass Road, Anishabad, Patna- 800002

 Mobile No. – 9955995238

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Table of Contents

SL. No. Particulars Page No.

Cover Page
Acknowledgement
Project Introduction
Declaration of Student
Project Supervisor Details
Certificate of Internship
Table of Content
Executive Summary
1 Chapter 1 – About Paint Industry 10
Paint Industry in India
Paint Industry Structure
Paint
Components of Paint
Paint Manufacturing Process
Uses of Paint
2 Chapter 2 - Introduction of the Organization 17
Introduction of organization
History of Organization
Milestones
Awards
Company Core Values
Vision, Values and Culture
3 Chapter 3 – KNPL 25
Organizational Strength
Organizational Structure
Product Profile of Kansai Nerolac Paint Ltd.
Decorative Paints
Industrial Paints
Market Status of the Organization
Market Capitalization

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Total assets history

Total Revenue
Net Profit
Market Share of Paint Industry across India
Competitors of the Organization
Top Indian Paint Company Analysis
4 Chapter 4 – Literature Review 44
Marketing
Objective of Marketing
Importance of Marketing for Businesses
5 Chapter 5 – Marketing Strategies 48
Nerolac’s Marketing Strategy and interesting reasons
behind its Grand Success
4P Marketing Strategy of KNPL
SWOT Analysis
Customer Value Driven Marketing Strategy
STP Strategy
BCG Matrix
6 Chapter 6 – Impacts on Organization 69
Critical Success Factors
Challenges and Recommendations
Covid-19 Impact on the company
7 Chapter 7 73
Conclusion
Biblography

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Executive Summary
During my internship I gained practical knowledge on how the deal with
account in day-to-day life its activities to ensure smooth functioning of the
organization at all levels by ensuring right numbers of people are available at
the right time to do the right job. Not only that I also gained insight into the
working culture of the organization and observed how the organization
handles its employees with value and empowerment to ensure they are
motivated to give their best to the organization.

The report starts with a company profile of Kansai Nerolac Paints giving its
background, mission, vision its products and services, the organizational
structure of the company.

The next part of the project carries out SWOT Analysis that touches upon
strengths, competitors, opportunities and threats to the Company followed by
critical factors affecting organization.

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Chapter 1
About Paint
Industry

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PAINT INDUSTRY IN INDIA

 The Indian paint industry is over 100 years old. Its beginning can
be traced back to the setting up of a factory by Shalimar Paints in
Calcutta (now Kolkata) in 1902. Until World War II, the industry
consisted of small producers and two foreign companies.
 The domestic paint industry is estimated to be a Rs 500 billion
industry with the decorative paint category constituting almost
75% of the market. The decorative paint market includes multiple
categories depending on the nature of the surface like exterior
wall paints, interior wall paints, wood finishes, enamels as well as
ancillary products like primers, putties, etc.
 The industrial paint category constitutes the balance 25% of the
paint market and includes a broad array of segments like
automotive coatings, marine coatings, packaging coatings, powder
coatings, protective coatings and other general industrial coatings.
 Growth of the industrial paint segment is highly dependent on the
automotive sector. The auto sector has been the leading consumer
of industrial paints with 40-50% of the demand coming from
it. Within the industrial paints segment, Kansai Nerolac is the
leader, with the segment contributing 45% to its overall revenue.
 Small unorganised paint manufacturers primarily catering to the
lower end of the price points still maintain a sizeable 30- 35%
share in the overall paint industry.
 The paints sector is raw material intensive, with over 300 raw
materials (50% crude-based derivatives) involved in the
manufacturing process. Since most of the raw materials are
petroleum based, the industry benefits from softening crude
prices.
 A rise in disposable income of the average middle class,
urbanization, growing rural market, shortening of repainting
cycle, and increase in sale of premium-end products are the
major drivers that are pushing the growth of the organized paint
industry

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 Paints stocks are usually risker as their fortunes are prone to

economic booms and busts and for this reason, they are often
called cyclical stocks. Generally considered an offensive tactic in
investing, cyclical stocks can be used to generate high returns
when the economy is doing well.
 Therefore, the best time to buy such stocks is at the start of an
economic expansion and the best time to sell them is just before
the economy begins to slow down.

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Paint
Paint is the general term for liquid that is used to add colour to the surface of
an object by covering it with a pigmented (coloured) coating. As a
verb, painting means "applying paint" (putting paint onto something).
Someone who paints is called a painter.

Components of Paint
Paint is typically made up of four main components: resin, additives, solvent
and pigments. Each has an important purpose which we will explore in more
detail below.

1. Pigments give paint its colour. The basic white pigment typically used is
titanium dioxide, and other pigments that add colour include iron oxide
and metallic salts for example.
2. Resin is used in paint to hold all the pigments together and help the
paint dry. You can get both natural (e.g. linseed oil, soybean oil) and
synthetic (e.g. acrylics, epoxies) resins.
3. Additives act as fillers (e.g. calcium carbonate) and can sometimes act as
anti-fungicidal agents.
4. Solvents or water-based are either chemical-based liquids (e.g. alcohols,
acetone) or water-based that make paint easier to apply to surfaces.

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Paint Manufacturing Process

There are four main stages in the paint manufacturing process which have
been simplified below:

1. Preparation – this involves measuring all the ingredients and making a

paste.
2. Pigment dispersion and mixing – the pigment powder is broken down
by the resin and additives. The ingredients are then mixed in paint
mixing machines to combine and disperse the pigments.
3. Thinning the paste – additional solvent is added to the mixture to give it
the correct consistency.
4. Testing – the final stage is testing the paint prior to containing, to ensure
it has the correct viscosity and appearance.

Uses of Paint
1. Protection - Paint is used to protect all sorts
of buildings and structures from the effects of water and sun.
Wooden buildings such as houses are usually painted because a
coat of paint prevents water seeping into the wood and making it
rot. The paint also helps to prevent the wood from drying out in
the hot sun.

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Metal structures and objects of all sorts are painted to stop them
from rusting. A very large steel structure such as a bridge must
have a team of painters who keep the paint in good condition all
the time.
2. Decoration - Paint is used to decorate all sorts of objects. Since
pre-historic times, people have painted the inside walls of their
houses to make them look attractive.[2] Painting and decorating
the exterior (outside) and interior (inside) of houses is an
important industry in many countries. There are many types and
colours of paint to chose from.
All sorts of other objects are painted to make them attractive. This
includes furniture, toys, tools and utensils, and street fittings.
Sometimes things made of wood such as furniture are painted in
decorative patterns. In some countries, many people enjoy
decorating furniture and other small things like trays and boxes.
This is one form of what is often called Folk Art. In other countries
such as Japan, painting furniture is a very skilled profession and
an antique piece of decorated furniture is very valuable. Other
people enjoy the hobby of painting small objects such
as model planes or soldiers.
3. Art - Paintings are pictures that are done in paint. Many different
types of paint are used for paintings. They include tempera, oil
paint,  gouache, watercolours and acrylic paints. The paintings are
usually done on board, canvas or paper. Many other famous
paintings are done on the walls and ceilings of buildings, such as
the Sistine Chapel ceiling which was painted by Michelangelo.
Many artists are famous for their painted pictures. Old, beautiful
and famous paintings are very valuable and are sometimes sold
for millions of dollars. Famous painters include Giotto, Leonardo
da Vinci, Titian and Rembrandt.
5. Information - Paint is a very good way to give important information to
people, using painted signs. Painted signs include lane markings on the
road, street signs of all sorts, advertising signs and warning signs.

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Chapter 2

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Introduction
of the
Organization

Introduction of the Organization

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Kansai Nerolac Paints was at first known as Goodlass Nerolac Paints. The
Kansai Nerolac Paints Ltd produces various kind of product that range from
industrial sophisticated coating for the industries to architectural coating for
hospital, Homes and Office.
Kansai Nerolac Paints company has manufacturing units situated in Lote
(Maharashtra), Hosur (Tamil Nadu), Sayakha (Gujarat), Jainpur (Uttar Pradesh),
and Bawal (Haryana). The total production capacity of the paints of the
company is around 161100 TPA and all the plants technologically advanced
and comparable to most states of the art plants in the world. Kansai Nerolac
paint has a very wide network of more than 11,000 dealers spread all over the
country.
Kansai Nerolac Paint is a market leader in the sector of automotive segment
where it applies more than 90% of the required original equipment Kansai
Nerolac Paint is the second biggest in the coating sector in India it has more
than a 20% market share. The company has entered into collaboration with
Oshima Kogya Company, Japan and E.L Du-Pont De Nemours and Company lnc.
USA for the manufacture of various innovative items and a brand new product
line.
The total income of the Kansai Nerolac Paint amounted to Rs 500 crore in
2022. Kansai Nerolac Paint pride itself on its organizational strength such as its
value, vision, R&D, experience, strategic alliances, marketing skill and its
extensive distribution network. The various plants of Kansai Nerolac Paint have
been certified by agencies such as BVQI and Intertek, ISO 14000, ISO 9000,
OHSAS 18000 are just some of the certifications that Kansai Nerolac Paint has
received for its efficiency in work processes and standards.
Kansai Nerolac Paint has become one of the top most companies in the coating
sector in India due to its quality of product which are the best market. The
company has a presence in the several Indian states such as West Bengal,
Assam, Gujarat, Haryana, U.P, M.P and Maharashtra. Kansai Nerolac Paint is
headed by Mr. Jamshed J. Irani, who is the chairman of the company. Mr.
Harishchandra Bharukha is the managing director of Kansai Nerolac Paint
which employs more than 2000 people.
Kansai Nerolac Paints Ltd. (“the Company” or “KNPL”) manufactures and
supplies paint catering to the coating solutions of customers. Paints are used

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on the finishing lines of electrical components, material handling equipment,

automotive industries, and other general-purpose industries. KNPL is the
largest industrial and third-largest decorative paint company in India, having an
overall market share of 10.9% as of FY19, according to Statista. The Company is
a subsidiary of the largest paint company in Japan, the Kansai Paint. As of 31st
March 2020, the Company had 6 manufacturing plants and 25,000 dealers
across the Country.

History of Organisation
This company was launched in the year of 1920 under the name of Gahagan
Paints and Varnish Co. Ltd. This company was located in Lower Parel in the city
of Mumbai. Initially, this company used to manufacture and sell paints,
varnish, oils, pigments, colors coating, etc. this company was the first to
introduce phthalocyanine pigments for commercial purposes.
In the year of 1933, this company was acquired by Lead Industries Group thus
forming Goodlass Wall Pvt. Ltd. This company later changed its name to
Goodlass Nerolac Ltd. In the year of 1983, this company entered into
collaboration with the Kansai Paint for strengthening its technological
capabilities. In the year of 1999, Kansai Paint was able to acquire the maximum
number of shares in the company thus taking the company.
Thus it becomes the subsidiary of Kansai Paint. Kansai Paint decided to change
the name of the brand to Kansai Nerolac Paint in the year of 2006.

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Kansai Nerolac Paints Limited (KNPL) is the 2nd largest company in India. Today
Kansai Nerolac Paints is amongst the leading paint companies in India
Headquartered in Mumbai, company’s manufacturing facilities are located at
Uttar Pradesh, Maharashtra, Tamil Nadu and Haryana.
In India the company has presence in Assam, Goa, Gujarat, Haryana, Himachal
Pradesh, Madhya Pradesh, Orissa, West Bengal, Rajasthan, Maharashtra,
Punjab, Uttaranchal, Bihar, New Delhi, Tamil Nadu, Uttar Pradesh and many
more.
Company’s manufacturing units have received ISO 9001–2000, ISO–14001 and
OHSAS–18001 for its quality management. Company has also implemented
Japanese 5–S and TPM (total productive maintenance) concepts in
organization.
Company’s R&D facility focuses on improving its manufacturing processes and
innovate its products. This facility has officially recognized by the Department
of Science and Technology (DTI), Government of India.
Company has technically collaborated with two companies Kansai Paint Co.
and Oshima Kogyo Co. of Japan.
ProductsThe company is engaged in manufacturing of automotive coating,
general industrial coating, high performance coating and powder coating.
The company markets its products under the brand name such as
'Impressions', 'Beauty', 'Excel' and 'Suraksha'.

Milestones
1920– Gahagan Paints and Varnish Company was incorporated.
1930– Lead Industries Group was established by merger of three British
companies.
1933– Lead Industries Group acquired 100% stake of Gahagan Paints and the
company was renamed as Goodlass Wall (India)
1946– Goodlass Wall was converted in private limited company.
1957– Goodlass Wall was renamed as Goodlass Nerolac Paints and went public
in the same year.
1976– After acquisition Goodlass Nerolac Paints became part of Tata Forbes
Group
1983– Goodlass Nerolac Paints entered into technical collaboration with Kansai
Paint Co. and Nihon Tokushu Toryo Co. of Japan.

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1986–Goodlass Nerolac Paints Ltd. turned into a joint venture of the Tata
Forbes and the Kansai Paint Co., with the latter acquiring 36% stake in the
company.
1999–Kansai Paint Company, Japan acquired the entire stake of Tata Forbes
group and thus Goodlass Nerolac Paints became a wholly owned subsidiary of
Kansai Paint Company.
2006– Goodlass Nerolac Paints was rechristened to Kansai Nerolac Paints.
In 2012 Kansai Nerolac decided to enter JV with Nepal Shalimar, to acquire
68% stake in Nepalese paint major.

Awards
Company was awarded Best Vendor Award from customers like Toyota
Kirloskar Motors (TKML) for Cost and from Maruti Udyog Limited (MUL) on
overall commendation.
Company also received award for marketing initiatives like Cannes 2007 Bronze
for press Ad Sustainability Award for outstanding contribution” by Mahindra
and Mahindra – October 2011.
Kansai Nerolac Paints rated at level 4 out of 5 in the Karmayogi ratings for the
Corporate Social Responsibility initiatives 2011.
Best vendor PERFORMANCE AWARD in Paint Supplier’s Category by Honda
Motor cycles and scooters at their annual conference Jan 2012.

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Vision,Values and Culture

In today’s dynamic business environment, no organization can afford to survive
without a well articulated and carefully thought vision stating the overall
strategic direction and long term future of its business.

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Kansai Nerolac Paint have been at the forefront of paint manufacturing over a
decade pioneering a wide spectrum of quality products that change the face of
economy and lifestyle of people at large.
It is our vision to leverage global technology , for serving our customer with
superior coating system built on innovative and superior products and world
class solutions, to strengthen our leadership in industrial coatings and propel
for leadership architectural coating, all to the delight of our stakeholder.
Kansai Nerolac Paint firmly believe that it is not only the vision of where we
wish to go which will form a cornerstone of all our further growth but also our
conviction to the fact that the value based proposition has to be ultimate
foundation of our business.
To this end we consciously have internalized and been practicing these value in
all our business transactions though human beings:
 Innovation
 Entrepreneurial
 Responsive
 Simplicity
 Team orientation
Cultural Ethos
 Vision driven organization
 Employees feel pride in being part of the organization
 Recognition of human dignity
 Transparency and openness among employees at all hierarchical level
 Performace linked reward system
 Management and employee commitment to organisation values is high
 Autonomy in work is high
 High commitment to quality products

THE QUALITY POLICY

It is the philosophy of Kansai Nerolac Paints Ltd. and its associates to achieve
complete customer satisfaction by providing products and services that
consistently meet or exceed the customer needs and expectations, pursuant to

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agreed specifications, delivery schedules and competitive prices. It is the

philosophy of the company to systematically operate its manufacturing
facilities by inculcating commitment to total quality management at all levels
and on a continuous basic with a view to achieving “First Time Right” results in
manufacture , services and other operations.
It is the company’s aim to constantly reduce waste of material and effort,
increase efficiencies and safety of plants and people protection of the
environment.

OPEN DOOR POLICY

Working together requires that we have a friendly atmosphere based on trust
and respect amongst all of us.
At Nerolac we follow an Open Door Policy. Any person is free and welcome to
share good idea, suggestions, doubt, problem about job and work place,
uncertainties about once future in the organization and open and transparent
communication is appreciated.

SOCIAL RESPONSIBILITY
The company continues to make its due contribution to community relief and
development activities and has donated both cash and kind for the
beautification of some public place in Mumbai and elsewhere. The company
continued its activities directly through trust agencies in community
development and social welfare including contribution towards national
defence, medical help, education , improvement of environment etc.

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Chapter 3
KNPL

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Organizational strength
An organization is not an set on pillars of brick and concrete but is set on
strong inherent characteristic that make it strong for years. Nerolac is carrying
on strong since 1920. Following are its strength that have kept this company in
good faith.
STRONG VISION AND VALUES
Nerolac is a company with very clear and well defined vision and very strong
values. Clarity of vision and strong foundation of cultural values have always
kept this company in good stead. Its ethical conduct has always guarded it
against any possible traps and pit falls.
We have made sure that the distribution hurdles and the climatic vargrancies
do not the quality of our services. This same commitment will ensure that
kansai Nerolac will march towards its centennial year , fully dedicated and
invigorated, in step with the exciting wave of industrialization and
modernization pervading through the new India.
ORGANIZATIONAL STRUCTURE
A sale organization is both an orienting point for co-operative endeavor and a
structure of human relationships. It is a group of individual striving jointly to
reach qualitative and bearing formal and informal relations to one another.
Existence of a sales organization implies the existence of patterns of
relationship among subgroup and individuals established for purposed of
facilitating accomplishment of the group’s aims.
A good and efficient sales organization is somewhat abstract and illusive.
However, it is real and effects everyone in the organization.
According to March and Siman,”Organisational structure consists of those
aspects of pattern of behaviour in the organization that are relatively stable
and change only slowly”.
It facilitates the growth of the organization. It stimulates creative thinking and
initiative by proving well defined art of work with provisions for development
of new and improved ways of working.

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Product Profile of Kansai Nerolac Paints Ltd.

Decorative Paints
Wall
Interior
Emulsion
Water Based Paints

Impressive 24 Carat Premium Luxury Emulsion

Product Description
Nerolac Impression 24 carat premium Luxury Emulsion is a premium Quality
Architectural coating specially formulated by using pure acrylic latex, and high
opacity micronized pigments so as to impart smooth velvet finish, with
excellent wash ability.

Performance Feature & Benefits

o Smooth velvet finish with shine
o Excellent wash ability & stain resistance
o Very good antifungal resistance
o Ease of application
o Low odour

Distemper

Nerolac Beauty Premium Acrylic Distemper

Product Description

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Nerolac Beauty Premium Acrylic Distemper is supplied in paste form and it can
be used for decorative of fully matured plasterwork, concrete, brickwork and
asbestos surfaces. The paste is bound with a stable acrylic medium .

Performance Features & Benefits

o Premium acrylic distemper
o Ease of application
o Good washable
o Eye soothing matt finish

Nerolac Little Master Acrylic Emulsion

Product Description
Nerolac Little Master Acrylic Emulsion, is a specially developed economical
product with a smooth finish with good whiteness, opacity and coverage. It is
formulated by using ideal combination of pigments and extenders, dispersed in
a copolymer emulsion for smooth and pleasant matt finish.

Performance Features &Benefits

o Smooth and pleasing matt finish
o Ease of application
o Economical product with optimum performance.

Exterior

Nerolac Excel Total

Product Description
Nerolac Excel Total all in one acrylic exterior emulsion is a high performance
premium water based , long lasting exterior paint, with UPF(Ultimate Paint

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Formula). It is formulated to suit the extreme tropical conditions of high

rainfall , humidity and heat. The product is based Silicon modified pure Acrylic
polymer and hence it forms a tough and flexible protective film, with an
excellent bonding to the substrate, which give excellent dirt pick-up resistance
and excellent shine. All in One acrylic exterior emulsion contain a unique
combination of surface protestants, which are released slowly over a long
period of time. This actively helps not only to prevent the fungal and algae
growth, but also ensures constant surface activity against these irritants for a
long period. It also offer a 7 year warranty.

Performance Features & Benefits

o Excellent outdoor durability
o Very good color retention
o Smooth with shine finish
o Easy to apply and maintain
o Very wide range of beautiful colours
o Very good coverage thus good value for money
o Warranty applicable only on minimum purchase of 100 litres. For warranty
details, Refer to the warranty booklet available with dealer.

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Nerolac Excel Anti-Peel Acrylic Exterior Emulsion

Product Description
Nerolac Excel Anti Peel Acrylic Exterior emulsion is a premium water based,
high performance, long lasting exterior paint, formulated to suit the extreme
tropical conditions of high rainfall, humidity and heat. The product is based on
100% Acrylic resin aqnd hence it forms a tough and flexible protective film ,
with an excellent bonding to the substrate, which prevents peeling off or
cracking for years together. mNerolac Excel anti peel acrylic exterior emulsion
contains a unique combination of surface protectants, which are released
slowly over a long period of time. This actively helps not only to prevent the
fungal and algae growth, but also ensures contant surface activity against
these irritants for a long period.

Performance Features & Benefits

o Excellent resistance to fungal and algae growth
o Very good color retention
o Excellent out door durability
o Faster drying
o Smooth & matt to slight shine finish
o Easy to apply and maintain
o Superior wash ability &scrub resistance
o Very wide range of beautiful colors
o Very good coverage thus good value for money

Nerolac Suraksha Plastic Exterior Emulsion

Product Description
Nerolac Suraksha plastic exterior emulsion is an economical water thinnable
coating, specially designed for application on exterior walls in dry or
moderately humid climatic conditions. It is much superior to normal cement

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paint coating in respect to exterior durability , finish, washability and

resistance to fungus / algae.

Performance Features & Benefits

o Economical water thinnable coating
o Excellent adhesion
o Low dust pick-up
o Better outdoor durability
o Smooth and pleasing finish
o Performance much superior to cement paint
o Continuous protection.

Nerolac Suraksha PLUS Acrylic Exterior Emulsion

Product Description
Nerolac suraksha PLUS Acrylic Exterior Emulsion is an economical water
thinnable coating, specially designed for application on exterior walls in dry or
moderately humid climatic conditions. It has an unique ‘Colour Lock+’
technology , which locks in the colours ensuring that colours on exteriors keep
looking like new for long. It is an ideal choice for consumers wishing to upgrade

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from cement paint since it is much superior to normal cement paint in respect
to durability finish and resistance to algae.

Performance Feature & Benefits

o Superior colour retention
o Better outdoor durability
o Resistance to cracking and peeling
o Resistance to algae
o Smooth and pleasing finish with shine
o Performance superior to cement paint
o No need of curing.

Enamel

Nerolac Satin Enamel

Product Description
Nerolac Satin Enamel is specially formulated to give an excellent smooth finish
resembling the smoothness of satin to masonry , wood and metal surfaces. It
can be easily cleaned to give new look to the surface.

Performance Features & Benefits

o Very smooth satin like appearance
o Good washability
o Very good flow brush ability
o Hard durable film

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Nerolac Synthetic Enamel

Product Description
Nerolac Synthetic Enamel is a time tested and proven, high-quality alkyd-based
enamel.

Performance Feature & Benefits

o Excellent water repellency
o Good stain resistance
o Excellent flow characteristics to form smooth and uniform finish
o Excellent hardness and Durability
o Excellent gloss.

Woods
1) 1K PU
Variants - Gloss, Matt
Type of coat - Top Coat
Feature - Good Gloss, Easy to use , good value for money
Usage - Woods, Veneer
2) 2K PU
Variants - Gloss, Matt, Sealer, Thinner

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Type of coat - Top Coat

3) NC Thinner
Type of coat - Thinner
Feature - Compatible with NC & Melamine based products

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Industrial Paints
Automotive Coating
Kansai Nerolac Paints is the market leader in the automotive coating segment
in India with a market share of over 60% with global technology acquired from
Kansai Paint Co. Ltd, Japan. Kansai Nerolac offers the latest technology in
automotive painting system to the Indian automotive industry.
Automotive coating of Kansai Nerolac has been tested and certified by global
automotive manufacturers who have set up base in India like: -

Through its various strategic collaborations, Kansai Nerolac offers a total

painting system to auto maker in India with a range of products, starting from
Pretreatment chemical, Electro Deposition Primers, Intermediate Coats/primer
surface, Solid & Metallic top coats, Clear Touch-up Paints
The product range is backed up by a strong technical service network of
experts placed at customer end, Training programs, VA/VE activities in co-
ordination with customer resulting in ultimate delivery of optimized painting
solutions. Kansai Nerolac provide very specific product range these are as
follow :-

Product Range
Pre – Treatment Chemicals

High & Low Temperature Degreasing Chemicals

De-Rusting Chemicals
Di-Cationic & Tri-Cationic Phosphate Chemicals

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Activation & Passivation Chemicals

Surface Conditioners
Pre-Treatment Chemicals for Plastic

Electro Depostion(ED) Primers

Polybutadiene-Based Antodic Electro-Deposition Primer (AED)

Epoxy Resin-Based Cathodic Electro-Deposition Primer (CED)
Acrylic Resin-Based Cathodic Electro-Deposition Primer (ACED)

Intermediate Coats /Primer Surface

The intermediate coats are available in white, light grey, dark grey, red, blue and other
specific colors as required by owe manufacturers.

Top Coats
New technologies in top coats such as 3 Wet Coating Systems are available which are being
adopted by various automotive customers to improve productivity, reduction in costs and
meeting the environmental norms. Various types of metallic & Mica finishes are available.

Clear Coats
Scratch resistance
Acid and alkali resistance
UV resistance
Mark resistance

Heat resistant paints

Heat resistant paints, both or interior & exterior surfaces of motorcycle mufflers. These are
made to withstand high temperature conditions up to 600C.

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Market Status of the Organization

Kansai Nerolac Paints is the second largest paints manufacturer in India,
according for 20% of the total paint sales. In industrial segment, it is the
undisputed leader accounting for 40% market share. It has excellent R&D
facilities and innovating products. The laboratories are well equipped with the
latest sophisticated instruments.
Kansai Nerolac Paints have six manufacturing facilities backed by excellent R&D
facilities.It has 73 deposits / distribution centers strategically located all over
Indian and a dealer network of over 12,000.
Some of the biggest names in the Indian industry use Kansai Nerolac Paints for
their products. These include India’s most successful corporation like:
 Maruti Udyog Ltd.
 Bajaj Auto
 Toyto Kirlosker
 Honda Siel
 TVS Suzuki Ltd.
 Wheel India Ltd.
 Telco
 Mahindra & Mahindra
 Ford India Ltd.
 Hindustan Motors (for Lacer)
 Hero Honda Motor Company
 Godrej & boyce mfg. Ltd.

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MARKET CAPITALIZATION
 Market capitalization refers to how much a company is worth as
determined by the stock market. It is defined as the total market
value of all outstanding shares.
 To calculate a company's market cap, multiply the number of
outstanding shares by the current market value of one share
 Market cap is often used to determine a company's size, then
evaluate the company's financial performance to other companies of
various sizes.

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Competitors of the Organisation

Goodlass Nerolac Paint Ltd, is a company of 1320 crore turnover. Company is
giving its service from more than eight decades. In the market company is
prevailing with great impact in the market because there is a large number of
competitors. In both the segment Decorative and Industrial, its competitor are
as follows :-
 Asian Paint
 Berger Paint
 ICI Paint
Now, here are some of the competitors products and its brand name.
ASIAN PAINT
Premium Emulsion - Royale
Premium Exterior Emulsion - Apex
Washable Distemper - Tractor
Exterior Plastic Paint - Ace
Synthenic Enamel - Apcolite

BERGER PAINTS
Premium Emulsion
Premium Exterior Emulsion
Washable Distemper
Exterior Plastic Paint
Synthenic Enamel
Texturised Finish Exterior
Coment Base Paint
- Luxol Silk
- Weather Coat
- Bison
- Wall Masta
- Luxol
- Weather coat Texture
- Durocem

ICI
Premium Emulsion - Velvet Touch
Premium Exterior Emulsion - Weather Shield

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Washable Distemper - Maxilite

Exterior Plastic Paint - Dulux
Synthenic Enamel - Supercoat
Texturised Finish Exterior - Dulux
Coment Base Paint - Farcocem

Top Indian Paint Company Analysis

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Chapter 4
Literature
Review

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Marketing
Marketing is a term that covers a whole gamut of activities aiming to make
people aware of your products and services and persuade them to buy the
same. While advertising is the most common way of marketing, it also involves
consumer research, product design, as well as other aspects. However, sales
do not fall under marketing. Instead, sales are an outcome of marketing. This is
why it becomes essential to thoroughly understand the importance of
marketing for businesses and the B2B marketing strategies that companies
adopt.

Marketing definition includes activities undertaken by a business

establishment or an individual to promote their services and products.
Marketing includes promotion, advertisement and selling products and
services to the consumers.
Marketing is the key component of any venture and includes aspects like
writing product descriptions, designing website pages, improving customer
services, establishing business & market segments and conducting market
research. Marketing involves strategies that aid in the growth of a business
venture.

Objective
The basic purpose of marketing management is to achieve the objectives of the
business. A business aims at earning reasonable profits by satisfying the needs
of customers.
1.  Creation of Demand:
The marketing management’s first objective is to create demand through
various means. A conscious attempt is made to find out the preferences and
tastes of the consumers. Goods and services are produced to satisfy the needs
of the customers. Demand is also created by informing the customers the
utility of various goods and services.

2.  Customer Satisfaction:

The marketing manager must study the demands of customers before offering
them any goods or services. Selling the goods or services is not that important

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as the satisfaction of the customers’ needs. Modern marketing is customer-

oriented. It begins and ends with the customer.

3.  Market Share:

Every business aims at increasing its market share, i.e., the ratio of its sales to
the total sales in the economy. For instance, both Pepsi and Coke compete
with each other to increase their market share. For this, they have adopted
innovative advertising, innovative packaging, sales promotion activities, etc.

4.  Generation of Profits

The marketing department is the only department which generates revenue
for the business. Sufficient profits must be earned as a result of sale of want-
satisfying products. If the firm is not earning profits, it will not be able to
survive in the market. Moreover, profits are also needed for the growth and
diversification of the firm.

5.  Creation of Goodwill and Public Image:

To build up the public image of a firm over a period is another objective of
marketing. The marketing department provides quality products to customers
at reasonable prices and thus creates its impact on the customers.

The marketing manager attempts to raise the goodwill of the business by

initiating image- building activities such a sales promotion, publicity and
advertisement, high quality, reasonable price, convenient distribution outlets,
etc..

Importance of Marketing for Businesses

In this section, we’ll discuss the importance of marketing for businesses and
the reasons.

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1. Effective consumer engagement: Businesses must engage customers,

and herein, marketing proves to be an effective tool. Customers can be
involved by telling them what they do not know and creating good
content around your products and services.
2. Building and maintaining reputation: The reputation of your business
depends on how it grows and its lifespan. This is where marketing comes
across as a way to build the brand equity of companies. And this
happens when the expectations of the customers are met.
3. Building relationships between customers and business: For any
business to grow, it must build a long-lasting relationship with its
customers. Marketing is based on demographics, psychographics, and
consumer behavior and, therefore, gives an understanding of what
customers want.
4. Boosting sales: Since marketing utilizes different ways to promote
products or services, it helps in increasing the likelihood of better deals.
Happy customers translate into a company’s brand ambassadors
automatically.
5. Staying relevant: Marketing helps a business to remain relevant to the
customers and in its domain. It helps in maintaining good relationships.
6. Making informed decisions: The primary questions that every business
has been around are the ‘hows’ and ‘whys’ of producing products or
delivering services. This underscores the importance of marketing for
companies and the fact that it links a business and society.

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Chapter 5
Marketing
Strategies

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Nerolac’s Marketing Strategy And

Interesting Reasons Behind Its Grand
Success
Through the marketing mix, a company can promote its products by
persuading its customers with some cool and awesome stuffs .Marketing
Strategy of Kansai Nerolac Paints analyzes the brand with the marketing mix
framework which covers the 4Ps (Product, Price, Place, Promotion). There are
several marketing strategies like product innovation, pricing approach,
promotion planning etc. These business strategies, based on Kansai Nerolac
Paints marketing mix, help the brand succeed in the market.
Let us start the Kansai Nerolac Paints Marketing Strategy & Mix to understand
its product, pricing, advertising & distribution strategies:

 Product Strategy
 Pricing Strategy
 Place and Distribution Strategy
 Promotional and Advertising Strategy

Kansai Nerolac Paints Product Strategy:

Kansai Nerolac Paints limited is a producer and supplier of paints and coating
products. Kansai Nerolac Paints are one of the leading paint companies serving
a huge market. Kansai Nerolac Paints has a variety of products and services in
its marketing mix targeted at 3 types of segments:
• Home owner
• Professional
• Industrial

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For both home owner and professional consumer segments, Nerolac Paints
have a wide range of product offerings in the decorative paint products
category consisting of interior wall paints, exterior wall paints, wood coatings,
metal enamel paints and paint ancillary. Interior and exterior wall Nerolac
Paints are classified into super premium, premium, popular and economy
ranges, with super premium
being of the highest finish and quality and economy being the lowest. In the
industrial segment, general industrial coatings are offered for heavy duty
industrial products and high-performance coatings for large scale equipment.
Other offerings include powder coatings, coil coatings and floor coatings for
high endurance industrial paint solutions.
Nerolac Paints also has a strong presence in Automotive paints and auto
refinish paints category. In addition to products, Kansai Nerolac also provides
coating technical services and health and safety services for industries.
Another line of product offering is in online category with tools like Paint
Calculator which helps users estimate the price depending on their customised
requirements of the project. Paint Your Home app, Colour Picker app and the
online colour palette are also offered under this category.
Emphasis on Healthy paint: 

Nerolac gave more emphasis on the healthy paint version of the decorative
wall paints. This is done for achieving an edge over its competitors. All
products by the brand would provide more focus on them being healthy and
eco-friendly.

They promote that their paints are lead-free and thus customer would have no
hidden side effects after using these products. These conditions aligned with
the growing health-conscious general mass of India thus boosting the
popularity of the brand.

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Kansai Nerolac Paints Price/Pricing Strategy:

Kansai Nerolac paints follows a premium pricing strategy in the home owner
and professional market segment. It prices its products a notch higher than its
competitors like Berger and Asian Paints claiming eco-friendly and high-quality
products.
The four product categories of Nerolac Paints based on price are- the super-
premium range products which are priced between Rs.980 to Rs.550, premium
range between Rs.478- Rs.310, popular range priced between Rs. 250-170 and
economy between Rs.190- Rs.125. Such pricing strategy also allows it to
maintain a higher perceived value for its brand. Nerolac Paints is a market
leader in industrial coating solutions and thus follows value-based pricing in
this product category. The prices are charged on the basis of exclusive features
of the product in addition to the value of raw-materials and technology used.
Services like vision for home owners and professionals and health and safety
for industrial customers are provided for free but Nerolca charges for the
technical services provided by Central Service Technology Laboratory situated
in Lower Parel, Mumbai. Online tools and apps are free to use. This throws
some light on the Nerolac Paints marketing mix strategy .

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Kansai Nerolac Paints Place & Distribution Strategy:

Following is the distribution strategy in the Kansai Nerolac Paints marketing
mix:
Nerolac Paints have a strong distribution network reaching out to a lot of
geographies. For decorative paints segment, the supply chain consists of a
wide distribution network and production planning is done on the basis of
forecasted demand. Kansai Nerolac treats its vendors more as business
partners. High Quality raw materials are sourced from a pool of vendors which
is the result of Nerolac’s Best Vendor Performance Management System. Most
of the manufacturing is done at paint processing internal manufacturing sites,
but some part of it is outsourced to outside processing centres as well.
The finished goods from both internal and outside centres are then sent either
directly to depots or to regional distribution centres from where then they go
to the depots. Finally, they are distributed to retailers and customers. Another
important part of the supply chain are industrial customers who are mostly
served by “Make to Order” philosophy and the product is distributed to them
directly from paint processing internal manufacturing sites without the help of
any intermediaries.
This strategy helps reduce the channel cost and encourages better customer
relationships.
Kansai Nerolac Paints has a strong distribution network. Kansai Vendors at
Nerolac are treated more like business partners. Nerolac’s Best Vendor

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Performance Management System ensures that high-quality raw materials are

secured from a pool of vendors.
The majority of the manufacturing is done in-house at paint processing
facilities, although some of it is also outsourced to other processing centres. 
The finished commodities from both internal and external centres are
subsequently sent either directly to depots or to regional distribution centres,
from where they are delivered to depots. Finally, stores and customers will
receive them. 
Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh, and Haryana are home to
the five manufacturing facilities. In the Philippines, Malaysia, Turkey, Kenya,
Nepal, Bangladesh, and Sri Lanka, the corporation has a presence. In 2005, this
company was also awarded the Best Vendor Award.

Kansai Nerolac Paints Promotion & Advertising Strategy:

Nerolac Paints is a brand which has always invested heavily in promotions and
campaigns as it had to compete against the tremendous brand equity of Asian
Paints. It came out with catchy jingles like- “Jab ghar ki raunak badhani ho,
deewaro ko sajana ho, NEROLAC NEROLAC!” and had a mascot- the painting
tiger named Goody. But the mascot was replaced by Amitabh Bachhan in 2003.
In 2008, the company roped in Shah Rukh Khan for its ad campaigns who still
continues to be the brand ambassador for Nerolac Paints. Nerolac teamed up
with DDB Mudra marketing agency to come up with the award-winning

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marketing campaign “Rang de Patang”, where it used colourful kites as colour

palettes in the city of Ahmedabad during Uttarayan- the kite festival. The
customers were given the shade of kite they chose as a free gift. Later, on the
day of Uttarayan, the remaining kites were distributed among people of
Ahmedabad and the whole sky was filled with Nerolac kites. “Paint the change
you want to see” is another marketing campaign where people were urged to
donate the leftover paints to Nerolac, which then recycled these paints and
used them to paint structures across country which were in need of
renovation. For industrial segment, it uses its website to boast about the
existing clientele and projects to attract more customers. Hence, this
completes the Nerolac Paints marketing mix.

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SWOT Analysis
STRENGTHS
1) Technological advantage-
 KNPL’s hallmark of success is technological innovation and its
immense focus on R&D. It has helped the Company to deliver high-
quality service with a quick turnaround, cost savings, and reduced the
environmental impact of harmful chemicals.
 The Company uses advanced digital tools like Machine Learning,
Internet of Things (IoT) to secure business benefits. Recently, they
have shifted from text-based content to digital content which
includes augmented reality ads and 360-degree videos which gives
consumers more immersive experience.
2) Branding and Marketing Strategy-
 KNPL has always been a step ahead when it comes to promotions
and marketing.
 The Company had chosen its brand ambassador the bollywood
biggies, like Amitabh Bachchan and Shahrukh Khan who further
pushed the brand to greater heights.
 Creative ads and taglines by the Company like “Jab Ghar Ki Ronak
Badani Ho, Deewaro Ko Sajana Ho, NEROLAC, NEROLAC” have
boosted the popularity of the product.
 One of the Company’s innovative marketing strategies was
representing 250 shade colors on the luggage conveyor at Mumbai
Airport.
 ‘Little bit of Nerolac’ was another strategy adopted by the Company.
In this unique advertisement strategy, the brand rides on its B2B
equity, by claiming that many household appliances like washing
machines, refrigerators, etc. are coated with Nerolac, to boost its
preference in the retail market.
 In the past, it had partnered with IPL teams- Delhi Daredevils and Sun
Risers Hyderabad as a part of their promotion plan. Also, as a part of
outdoor marketing communications, the Company painted murals
across the Country to connect with the audience and strengthen its
brand recall.

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3) Robust Supply chain-

 The Company has deployed cutting edge IT tools to make its supply
chain and sales process more efficient. The Company has adopted
SAP Leonardo which brings together ML, IoT, Blockchain, and Big
Data.
4) Vertical Integration-
 Generally, manufacturing Companies achieve vertical integration
where they control the elements in a value chain beyond their central
manufacturing product. This helps them to improve the efficiency of
the processes. KNPL is no exception to this as the Company has a
vertically integrated supply chain that helps to serve decorative and
industrial customers better.
5) Research and Development-
 KNPL currently has 1 R&D center in India. KNPL’s R&D center is
equipped with the latest labs for testing facilities. To build a robust
R&D ecosystem, KNPL commissioned a state-of-theart R&D facility at
Vashi, Navi Mumbai. The center is equipped with the latest labs for
catering to various markets and testing facilities.
 In the automotive sector, it is the market leader and has pioneered
many important technological breakthroughs like:
 The Company has developed a functional coating that reduces
indoor pollution of formaldehyde and is odorless.
 KNPL also introduced Blue Cathodic Electro Deposition (CED)
Paint not only in India but at a global level. This innovation by
the Company helped customers to eliminate topcoat
applications for the inside area of sheet metal parts of tractors.

WEAKNESSES
1) Change in customer’s preference-
 In the decorative segment, customer's demand may change and
products may become obsolete due to rapid urbanization and
increasing disposable income. As per Mordon Intelligence Report,
demand for vinyl-based wallpaper is expected to grow by 28.5%
CAGR over 2019-2024.

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2) Geographical Market-
 The Company does not have a well-diversified geographical market.
Most of its plants are located in the north and few in southern and
western India. The Eastern part is almost unexplored by the Company
for expansion purpose. KNPL can try expanding in the Eastern region
and it will help the Company in getting easier access to its Bangladesh
subsidiary, subsequently minimizing transportation cost and time.

OPPORTUNITIES
1) Boost to the housing sector-
 In India, low consumption of paint offers huge growth potential for
the paint companies. Recently, the Government has taken some
steps to promote the housing sector. E.g.-the extension of CLSS
(Credit Linked Subsidy Scheme) till 31st March 2021.
 CLSS for Middle Income Groups provides interest subvention to the
families having annual household income in the range of Rs.6lakh to
Rs.18lakh, seeking housing loans from Banks, Housing Finance
Companies.
 It is estimated that this move will benefit around 0.3 million middle-
class families by encouraging them to realize their dream of buying
houses amidst economic challenges. As the demand for the housing
sector increases, the demand for paint will also soar.
2) New Market segments-
 The Company can foray into new market segments having huge
potential for growth like adhesives, coil coatings, etc.
 Globally there are very few players who produce insect repellent
paints. These paints can be used to repel or kill insects by the active
insecticidal ingredients that are present in the paint. Currently, no
paint company in India has manufactured such kinds of paint. Thus,
KNPL can try capturing this opportunity.
3) Tapping Rural Segment-
 The Company should tap into the rural markets more aggressively as
paint industry penetration in the Country is too low. So the Company
can try launching more separate brands and products as it did in the
past by launching ‘Soldier Paints’.

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THREATS
1) High Competition-
 Although KNPL is the market leader in the industrial segment, there
is a threat of getting replaced due to tough competition and
continuous technological innovation by other organized players like
Asian Paints, Berger Paints, etc. In the foreign market also, there is
high competition from International as well as domestic players.
2) Changes in government rules and regulations-
 The majority of paints manufactured in India contain a huge amount
of harmful substances like mercury, lead, etc. During the painting
process, these paints emit a significant amount of VOCs also into the
atmosphere, which can affect health and air quality. Subsequently,
stricter regulations and environment policies due to climate change
can affect the Company. E.g.–Titanium Dioxide, which is derived from
Ilmenite, is one of the key raw materials used in the production of
paints. Indian Paint Companies mainly import it from China which is
the major supplier of this raw material. But due to environmental
concerns, a no. of companies (Ilmenite producers) were shut down in
China. This resulted in a decline in the supply, thereby leading to a
spike in prices. Big players were able to take the hit but small players
were adversely affected. To compensate for this shortage and to
boost Make in India initiative, the Government banned the exports of
Ilmenite.
 Changes in the policies of a state can affect the earnings of the
Company. E.g.-Changes in the policy in Kashmir i.e. scrapping of
article 370 where the Company is a market leader in the decorative
segment. During this period of unrest, everything was shut,
telephone and internet services were suspended which effected the
normal business operations of the Company.

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Customer Value Driven Marketing Strategy

The core purpose of Customer Value Driven marketing strategy is to build an
engaging, right relationship with the right customer. The strategic choice of
target customers is critical because Kansai Nerolac Paints can’t serve all the
customers in the Chemical Manufacturing industry. Kansai Nerolac Paints has
to choose, who are the customers that it can best serve based on its resources
and capabilities.
The four major steps of designing a Customer Value Driven Marketing
Strategy
Kansai Nerolac Paints can use the following four steps to build a Customer
Value Driven Marketing strategy in Basic Materials industry –

Step 1 – Market Segmentation

Step 2 – Targeting

Step 3 – Differentiation

Step 4 – Positioning

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STP Strategy
Market Segmentation
Consumers in the Chemical Manufacturing industry vary in their needs, wants,
demands, resources, locations, access to technology, cultural differences,
buying attitudes, and end use of the products and services. Market
segmentation is the process through which Kansai Nerolac Paints decides to
segment the overall market in smaller segments and groups that have similar
attributes, buying behaviour, socio economic background, etc. This is done to
reach out to the group of consumers more efficiently and effectively.
Example of Different Types of Segmentation
Some of the most popular ways of consumer and market segmentation are –
Geographic Segmentation

Geographic segmentation is dividing the overall market based on different

geographic units such as – countries, continents, zip codes, states, trading
blocks, cities, and neighborhoods. Geographic segmentation is highly efficient
for Kansai Nerolac Paints in the international markets because the prospective
customers have different culture, preferences, and administrative systems.
Secondly, if the cost of transportation is critical cost in the value proposition
delivery then it is prudent to do geographic segmentation as the costs of
serving customers in different locations will be completely different.

Psychographic Segmentation
In the marketing world, lifestyle oriented interests, activities, and opinion, are
categorized under psychographic variables. Kansai Nerolac Paints can use
psychographic segmentation to divide the potential buyers into different
segments based on – personality characteristics, buying patterns, consumption
opinion, opinion on social issues, leisure activities, hobbies, and many other
dimensions.

Intermarket (Cross Market) Segmentation

A lot of consumers have similar want, needs, and buying behavior even though
they are located in different countries, cultures, and political systems. Kansai

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Nerolac Paints can use the principle of cross market segmentation – defining
and targeting same type of consumers in different markets, strategy in this
scenario.

Kansai Nerolac Paints marketing team shouldn’t confine itself to one

segmentation strategy. In fact should strive to inculcate numerous features to
better define and identify the target groups and segments.

Targeting

After identification of various consumer segments within the marketplace,

Kansai Nerolac Paints needs to target a specific market. The choice of target
market is dependent on ten critical factors –
- Financial resources to target a specific segment – Does the organization has
marketing capabilities, operational skills, and financial resources to target a
specific segment of consumers.
- Presence of appropriate collaborators to market successfully to the target
market – Is there sufficient infrastructure available to target certain customer
segment. For example everyone knows that there is an environment conscious
segment in automobile industry who can pay premium prices for electric
vehicles, but none of the major auto players successfully able to target that
segment because there was no collaborators ecosystem. Tesla became
successful by building that ecosystem.
- Organization’s mission, vision, and the consumer segment fit – Is the targeting
consistant with the vision, mission, ethos, values and strategic fit of the Kansai
Nerolac Paints.

- Organizational technical capabilities to cater to a specific consumer segment

in the Chemical Manufacturing industry

- Product Life Cycle stage – It is highly relevant in the international scenario

where the product life cycle is at different stages based on social, economic,
regulatory, and political reasons. Kansai Nerolac Paints needs to find out at
what stage of the product life cycle the target segment is.

- Organization’s comparative strengths and weaknesses to market successfully

to the target market.

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- Regulatory and other entry barriers - Are there any regulatory and
technological barriers that Kansai Nerolac Paints will face if it decides to enter
the market.

- The financial return potential of the target market – Kansai Nerolac Paints
needs to decide whether the segment it is planning to target can be financially
lucrative.

- Competition in the target segment – What is the level of competition in the

target segment. If the competition is fierce then there is less likelihood of
sustainable margins in long term.

- Segment structural attractiveness - Presence of core infrastructure to market

successfully to the target market.

Differentiation

Differentiation is essential in modern marketplace because of the ease with

which organizations can either develop new products or source them from
third party suppliers who are working with other big brands. One of the biggest
examples of it is the growing emergence of private labels in the retail industry.
Retailers find it extremely easy to get products manufactured from the
suppliers in various industry, this helps them in sourcing products at lower
prices and make them competitive against major brands which have to spend a
huge amount of resources on promotion and marketing of the products. Kansai
Nerolac Paints can differentiate its products in the Chemical Manufacturing
industry based on the quality of the products. The differentiation should be
based not on premium-ness of the product but on the high quality features it
packs in the current product and service offering.

Horizontal Differentiation

Horizontal differentiation is when the brand is bought by the customer based

on personal preference irrespective of the price and quality features. For
example, Harley Davidson bikes are priced at a premium with fewer features
than modern bikes but people buy them for the emotion they bring.

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Vertical Differentiation

Vertical differentiation is when two products of similar features are qualities

are priced differently. Most of the Apple products are similar to equivalent
products in the Android line but they are priced higher than the Android
equivalent because of the brand premium

Mixed Differentiation

Mixed differentiation is when the products and services are differentiated

based on numerous criteria that include both features of horizontal
differentiation and vertical differentiation.

Positioning
Brand positioning and value proposition positioning are critical to marketplace
success in today’s competitive marketplace. Kansai Nerolac Paints needs to
position its product in such a way that it creates a – distinct image, provides a
specific identity / reference point of the product and services in the customer’s
mind. Brand positioning and product differentiation have become increasingly
critical because of the driving down of production costs in the Chemical
Manufacturing industry and the direct access to consumers using e-commerce
and other online retailing strategies.

Factors determining the Positioning choices of Kansai Nerolac Paints are –

- Consumer ecosystem – If the positioning of the product is not consistent with

the consumer ecosystem then consumers won’t accept the product or service.

- Competition ability to imitate & replicate – If the competitors can replicate /

imitate the products and services easily then Kansai Nerolac Paints will face
strong challenges to defend its marketing positioning.

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- Margins in the Chemical Manufacturing industry – If the positioning strategy

is aimed at a segment that can’t deliver desired financial returns in long run
then Kansai Nerolac Paints should avoid positioning the products for features.

- Ability to defend a differentiation and positioning – Can Kansai Nerolac Paints

defends the differentiation it seeks to project. If Kansai Nerolac Paints can’t
defend the new product / services positioning then it will be left to fend off
competitive threats from new entrants.

- Corporate image of Kansai Nerolac Paints – Positioning of new products

should be consistent with the brand image and core competency of the Kansai
Nerolac Paints. As Kansai Nerolac Paints is a -best value for money -player in
the Chemical Manufacturing industry, it should position its product slightly
higher than the market prices.

- Marketing Resources with competitors – If Kansai Nerolac Paints competitors

have huge financial resources to deploy for marketing, then Kansai Nerolac
Paints will face stiff competition.

- Relevance of positioning to the customers – Is the positioning relevant to the

customers. For example Blackberry tried to position itself as a provider of high
end corporate security. Most consumers didn’t buy into that positioning
because most were not using their phones for corporate purposes.

- Strategic fit of Kansai Nerolac Paints – As Kansai Nerolac Paints already have
numerous products and services, the new products and services need to fit
into the strategic fit of the already prevalent value chain delivery model.

- Current product portfolio – Kansai Nerolac Paints needs to assess whether the
new product is filling a vacant gap in the product mix or creating a new product
line.

- Threats of direct competition and competitors' response – If the competitors’

response is predicted to be strong then company shouldn’t strive for a
positioning where competitors can easily counter attack the marketing strategy
and marketing mix of the organization.

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BCG Matrix

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BCG Matrix / Growth Share Matrix

BCG matrix is a portfolio management framework so it should be used when an

organization is running different businesses in either different markets or
different industries. BCG Matrix / Growth Share matrix helps the Kansai
Nerolac Paints to efficiently deploy the resources in various businesses in
Chemical Manufacturing industry those are most likely to deliver higher rate of
return.

Four Quadrants of BCG Matrix

The BCG matrix / Growth Share matrix comprises four quadrants along two
axis – market share and rate of growth. The four quadrants / components of
BCG matrix / Growth Share matrix are – Questions Marks, Dogs, Cows, and
Stars. Each quadrant represents a certain degree of profitability. By assigning

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each business to one of these categories, senior executives / business leaders

of Kansai Nerolac Paints can take decisions regarding allocation and
employment of resources, and business strategy decisions such as entry into
new segment, exit from a loss making business, employing more capital to
increase market share or profitability etc.

Each of the four quadrants represents a specific combination of relative market

share, and growth rate:

• Low Growth, High Share businesses. Firms should milk these “cash cows” for
cash to reinvest.

• High Growth, High Share businesses. Firms should significantly invest in these
“stars” as they have high future potential.

• High Growth, Low Share businesses. Firms should invest in or discard these
“question marks,” depending on their chances of becoming stars.

• Low Share, Low Growth. Firms should liquidate, divest, or reposition these
“pets.”

Kansai Nerolac Paints Cash Cows in BCG matrix

The cash cow businesses are the one that has high market share but low
growth rate. These are often established businesses in their segment. As these
segments are mature, the marginal effects of new investment or resource
allocation is relatively small. So Kansai Nerolac Paints should continue to use
the revenues from these businesses to reinvest into the faster growing
segments.

Kansai Nerolac Paints use Stars in BCG matrix

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Stars are the businesses that have high growth rate and high market share in
the industry they operate in. The star businesses represent not only present
cash flow but also have huge potential for future growth. Kansai Nerolac Paints
should continue to invest in these businesses to not only defend the present
market share but also to increase market share and profitability.

Kansai Nerolac Paints use Question Marks in BCG matrix

Question Marks are the businesses that have low market share in industries
that have high growth rate. Questions Marks often represent the lack of
capabilities or skills that are required by the companies to excel in the booming
industries. Kansai Nerolac Paints needs to figure out whether Question Marks
represent a potential Star or a potential Dog. If Kansai Nerolac Paints have
resources to turnaround the business by either by procuring new technology,
hiring skilled human resources, or building better processes then it should
invest in the question mark. If the organization after analysis comes to a
conclusion that investing into a question mark is not feasible with resources at
hand then Kansai Nerolac Paints should divest from the segment and employ
those resources in star businesses.

Kansai Nerolac Paints use Dogs in BCG matrix

Dogs are businesses that have low market share and are operating in industries
that have low growth rate. If the profitability in the industry is also low then
Kansai Nerolac Paints should just exit from those businesses. But if the margins
are healthy then a firm can choose to continue doing that business. Secondly if
the business is critical to other businesses of Kansai Nerolac Paints then it
needs to continue that business even though it is a low profit making business.

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Chapter 6
Impacts
on
Organization

Critical Success Factors:

 Kansai Nerolac Paints Ltd reported that its topline growth was led by
the Industrial paints segment, driven by strong demand in the auto
industry. The company has been consistently focusing on extending

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technologically superior products and has started selling seam sealant

and underwater sealant, which is a new market for them. They have
also started selling higher-margin technology products in coil coatings,
and have exited some basic categories of coil coatings where
profitability was low. The management expects robust demand in the
industrial paints segment for the coming few quarters, led by the auto
sector. On the non-auto side, the company is witnessing good demand
from the infrastructure segment, and has received approvals for its
performance coatings for bullet trains, Vande Bharat trains, and
Mumbai Coastal project. Additionally, on the construction chemicals
front, the company has received approvals for construction equipment
and air conditioner segment.

 Kansai Nerolac Paints Ltd has implemented a 3% price hike in

decorative paints and an 8-9% hike in industrial paints during 9MFY23.
The company is holding some high-cost inventory which is expected to
be liquidated in the next two to three quarters, leading to a recovery
in margins. Despite the company’s plan to improve margins in the
industrial segment using high-technology products, industrial paint
margins are unlikely to reach the level of decorative paint margins.
The management expects better gross margin and EBITDA margin
from Q4FY23 onwards due to the falling raw material prices. However,
in Q4, the product mix is expected to be tilted towards the industrial
paints segment which commands lower margins compared to
decorative paints.
 Kansai Nerolac Paints Ltd (KNL) is planning to expand its water-based
manufacturing capacity by 42% YoY through a capex of INR 290 crore.
The company’s total manufacturing capacity is 50,000 kL/month. The
dealer count is increasing as KNL is focusing on increasing its
influencer network. To achieve same-store growth and increase
counter share, the company has started initiatives like next-generation
shopping, which provides customers with a touch and feel experience.
Currently, KNL’s dealer count ranges between 28,000 to 30,000, and
the company is focusing on expanding its distribution network at a
faster pace.

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COVID-19 Impact on the Company

COVID-19 has severely impacted the industry. The Company’s supply chains
have been affected and the production has come to a halt. KNPL had recorded
nil sales for April. As the demand in the industrial segment comes from
automobiles, construction, etc. these sectors are also in the trough phase of
the business cycle corroborated by the fact that auto sales were almost nil in

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April, and construction activities also look bleak. On the decorative front,
middle- and low-income group customers are likely to delay discretionary
spending, like renovating homes, on the back of fear of lay-offs and pay-cuts.
The pandemic has also resulted in the lack of workforce due to migration of
laborers to their hometowns, thereby companies should focus on monitoring
their supply chain and responding with agility to the changing scenarios.

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Chapter 7

Conclusion
Nerolac presently is one famous paint company in the country. The Mumbai-
based company is the leader in the industrial paints segment with a market
share of over 40%. It is the third-largest player in the decorative paints
segment with a modest market share of 13%. Nearly 75% of the Indian paints
industry consists of the decorative segment. Nerolac Paint is the largest selling
brand due to the brand name and good marketing strategy. Asian paint

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products are the second largest selling paints in urban areas.Nerolac has
always come up with innovative campaigns to attract customers.

This brand has always tried to come up with various new products and services
that would help customers more efficiently. All these years, Nerolac has
focused on manufacturing effective, healthy, and beautiful paint colors for
customers. For a successful Customer Value Driven Marketing Mix, Kansai
Nerolac Paints needs to put the customer at the center of the decision making
process and then make decisions based on the customer needs and wants,
firm’s financial and technical resources to develop products at certain price.

Finally it has to choose both distribution and promotion channels to effectively

and efficiently reach to those customers.Kansai Nerolac Paint has maintained
its quality and image throughout. Hundreds of families have applied Nerolac
paints to transform their home into the house of their dream. The effective
and positive results of the products make the brand more popular.
This popularity and trust are the result of the continuous efforts of the brand
for producing high-quality paints. The popularity and trust are the results of its
continuous efforts.

Bibliography
 Books
Analysis, Planning Implementation and
Control Prentic Hall lnc, ninth Edition by Kotlar.

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 Websites
www.google.com
www.investpodia.com
www.wikipedia.com
www.communityrepaint.org.uk
www.iide.co

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