COURSE: MARKETING PLANNING

EVALUATION OF MARKETING
PLAN OF ASIAN PAINTS
Product: Asian Paints Royale Emulsion

Prepared by:
Abhishek Jain 10P122
Under the Guidance of Debjit Ghosh 10P134
Deepika Mangla 10P136
Dr. Avinash Kapoor
Kandarp Suchak 10P144
Kartik Luthra 10P147
Naveen Kr. Jindal 10P153
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CONTENTS OF THE REPORT

1. Acknowledgement……………………………………………………………………
………………………….3

2. Objective…………………………………………………………………………………
………………………..…4

PAINT INDUSTRY IN INDIA................................................................................8

KEY FEATURES...............................................................................................11

MARKET SHARE..............................................................................................13

WHY THE PRODUCT?......................................................................................14

SWOT Matrix for Asian Paints.........................................................................16

SWOT MATRIX FOR ASIAN PAINTS ROYALE EMULSION..................................18

TARGET MARKET AND CONSUMER SEGMENTATION FOR ASIAN PAINTS........23

MARKET RESEARCH THROUGH SAMPLE SURVEY...........................................24

STUDY AND ANALYSIS OF CONSUMER BEHAVIOR..........................................25

OTHER ANALYSIS...........................................................................................31

LIMITATIONS OF THE SURVEY........................................................................36

FUTURE SCOPE..............................................................................................36

MARKET SHARE OF ASIAN PAINTS IN THE LUXURY SEGMENT........................37

CUSTOMER SEGMENTATION..........................................................................38

CHARACTERISTICS AND MAJOR FACTORS......................................................39

CUSTOMER ANALYSIS....................................................................................39

MARKET PRESENCE........................................................................................43

MARKETING STRATEGIES...............................................................................46

MARKET POSITION..........................................................................................47
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MARKET PRESENCE........................................................................................50

MAREKTING STRATEGIES..............................................................................51

MARKET POSITION.........................................................................................54
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1. ACKNOWLEDGEMENT

We would like to extend our gratitude to Dr. Avinash Kapoor for his
invaluable guidance, support, and feedback during the course of conducting
the market research which helped us successfully complete the project.
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2. OBJECTIVE

The report is broadly divided into three sections.

The first one deals with the SWOT analysis of the chosen company and the
product.

Secondly, we have studied and analyzed the behavior of the consumers in

terms of buying roles, decision making process and kind of purchase
behavior in order to understand the consumer mindset of the product. We
have looked at the possible future trends in the product line. Thereafter,
we analyzed the competition scenario and mentioned the competitors in this
category, their product offerings in different sub-categories and their
positioning.

Finally, we have drawn conclusions about Asian paints Royale Emulsion and
evaluated the marketing plan of the product.

The report may, additionally, be helpful to any potential new entrants in the
paint industry in India.
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3. EXECUTIVE SUMMARY

In the report, we have presented an evaluation of the marketing strategy

of Asian paints’ product Asian Paints Royale Emulsion. The aim of the
report is to help the readers be acquainted with market strategies,
consumer behavior and activities of the competitors of the product
chosen. Asian Paints has been the market leader in paints industry for
quite some time now. APL’s vision, branding strategies and marketing
plans has proven to be quite effective over the period of time. An
evaluation of the marketing strategies of the company on the basis of
what we have learnt during our course will help in better understanding of
one of the important verticals of management i.e. marketing.
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SECTION 1

Words: 2035
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4. INTRODUCTION
PAINT INDUSTRY IN INDIA

The Indian paint industry has been growing rapidly since past few years. The
future of paint industry in India is even brighter as the per capita
consumption of paints in India is as low as 1.25 kg.

The size of the Indian paint industry is approximately 940 million

litres/annum valued at approximately $2 billion. Over the last ten years, the
industry has grown at a compounded annual growth rate (CAGR) of 12-13%
and in the next five years, it is expected to grow at a CAGR of 11-12%.

Growth in housing, automobiles and construction are all driving the rise in
current consumption.

The paint industry is broadly divided into two segments:

Decorative paints
9

Decorative paints account for approx three-fourths of the market in terms of

volume and value. The demand for decorative paints is direct and mainly in
the unorganized sector of the economy.

Industrial paints

Industrial paints make up the remaining one-fourth of Indian paints market.

The demand for industrial paints is a derived demand and mainly in the
organized sector of the economy.
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5. ASIAN PAINTS
Asian Paints ranks as the top paint company in India and among top three in
Asia, with a turnover of Rs 66.8 billion. It began its operations in India in
1942. The company operates in 17 countries and has 23 manufacturing
facilities worldwide, servicing 65 countries through its subsidiaries like
Berger International Limited, Apco Coatings, SCIB Paints and Taubmans.

VISION OF ASIAN PAINTS

Asian Paints aims to become one of the top five Decorative coatings
companies world-wide by leveraging its expertise in the higher growth
emerging markets. Simultaneously, the company intends to build long term
value in the Industrial coatings business through alliances with established
global partners.

Asian Paints has a number of offerings to its customers depending on their

affordability and requirement:

• Decorative Paints: Decorative Paints business contributes around

94% to the total paint business. In the decorative paint segment, the
company operates in 4 main segments - interior wall finish, Exterior
wall finish, Enamels and Wood Finishes. Besides, the company
outsources around 25-30% of its total production.
• Industrial Paint Segment: In this segment, the company caters to
automotive, powder, protective coatings, road markings segment, floor
coatings and General Industrial Paints.

We have chosen to study a product from Asian paints due to the following
reasons:
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• As observed above, Asian Paints dominates the Indian market in terms

of market share as an outlier and its competitors maintain relatively
lower market shares.

• It has adopted some rigorous marketing strategies which have helped

it gain dominance over other players. A study of these strategies could
best be done by choosing Asian paints as the company of our choice.

KEY FEATURES

Asian Paints Royale Luxury Emulsion is an interior wall finish decorative

acrylic emulsion paint that can be applied on all types of smooth plasters,
false ceilings, asbestos sheets, concrete etc.

Key features of Asian Paints Royale Emulsion:

• Asian Paints Royale Luxury Sheen Emulsion is an exquisite emulsion

paint that provides a luxurious finish and silky glowing appearance to
your walls.

• It is water based, 100% acrylic, interior wall finish

• It has excellent flow and gives brush mark free finish

• It has anti-fungal properties

• It has a high stain resistance and walls painted with Royale Emulsion
can be cleaned easily.

• Royale emulsion uses the trademark technology of Asian Paints -

“Teflon surface protector” to provide greater durability.
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• Now it also offers 48 metallic shades of gold and silver in its Royale
glitter collection.

• All Asian Paints products are free from lead, mercury, arsenic,
chromium.

TECHNICAL DATA

Coverage On smooth masonry surface by brushing:

1 coat : 26-30 sq mtr/ltr

2 coat : 14-16 sq mtr/ltr

Drying time 15-25 minutes

Stability of Use within 24 hours

thinned paint

Shelf life 3 years

Gloss level 8-14 on glass plate at 60 deg C

Pack sizes 1.4.10.20 tr

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MARKET SHARE

The paint industry in India is divided into organized and unorganized sector.
The organized segment constitutes 54% of total volume in terms of sales and
65% in terms of revenue.

The leaders in the organized paint industry in India are Asian Paints with
over 40% market share, Kansai Nerolac (20%), Berger Paints (19%)
and AkzoNobel (12%).

In the decorative paints segment, the market share of Asian paints is an

astounding 47%. The company expects to tap in the future growth in this
sector mainly due to the boom in real estate sector.

In India, painting is seasonal in nature. Companies, therefore, plan their

capacities to meet peak demand. Nevertheless, the expansion plans of Asian
Paints are quite ambitious. Asian Paints had commissioned its 150,000 kilo
litre Rohtak plant in April, in addition to expanding capacity at its
Sriperumbudur facility in Tamil Nadu. Moreover, it is also investing Rs735
crore over a five year period to build a new plant in Maharashtra, with a
capacity of 400,000 tonnes. Its total capacity as of March 31st itself was
around 400,000 tonnes.
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WHY THE PRODUCT?

For over two decades, ICI’s velvet touch dominated the premium segment of
decorative paint industry. In spite of being a leader, Asian paints didn’t have
any presence in this segment. Hence, in 1992, APL launched the Royale
emulsion with the aim to offset the dominance of ICI in this segment.
However, the road was not that smooth. ICI’s velvet touch was already a
household name and it had good contacts with prime dealers. To offset the
competition, Asian paints priced the Royale emulsion at a lower price than
Velvet Touch and launched greater number of shades than ICI (44 shades
against 36 shades of velvet). The Asian Paints' Apcolite Emulsion "Merawala
cream - 151 shades" campaign augured well for the company, because it
created a perception of a large range of colors. Despite all this, it took quite
a lot of efforts on the part of Asian Paints to make their mark in this
segment. From cutting down on “Pataudi’s marketing campaign” to
providing greater incentives to local dealers, the company didn’t leave any
stone unturned in shifting the tables in their favor. Slowly and gradually,
15

things turned in their favor and now APL is the market leader even in the
premium segment of the paint industry.

Royale emulsion indeed proved to be the product with which the company
forayed into premium segment and established their dominance and hence it
is a topic of our study.
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6. SWOT ANALYSIS
SWOT Matrix for Asian Paints

Asian Paints Limited

Asian Paints is the market leader in India in the overall paints segment with a
market share amounting to 44%. It is also the market leader in the
decorative segment with 38% market share in India, and is ranked among
the top ten decorative paint companies in the world.

But in spite of being well placed in the global as well as domestic paint
arena, there are further scopes of improvement of the organization for taking
it to greater heights in terms of brand value, process improvement
techniques, and on other technical and non-technical fronts. The company
being well placed, should follow the strategy of Maintenance Marketing,
i.e. it should maintain current demand level facing the changing consumer
preferences and increasing competition (which are known as the erosive
forces prevalent in the market).

The Strength, Weakness, Opportunity, Threat of the organization has

been presented in the SWOT Matrix below to enable the organization
devise a strategy for Maintenance Marketing and also of expansion in future.
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SW OT

 M arketleade
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SWOT MATRIX FOR ASIAN PAINTS ROYALE

EMULSION

SW O T
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Strength

⇒ Asian Paints Royale Emulsion is market leaders in the segment of

decorative paints. The product is so developed so as to provide
maximum shelf life of approximately three years has the minimum
surface drying time of 15-25 minutes, has a very high coverage
area (28sq m/liters for 1 coat, and 15 sq m/liters for 2 coats).

⇒ AP’ Royale Emulsion’s success is the combined result of its strong

corporate and marketing strategies. Maximum credit should,
however, go to its marketing strategy. Within marketing, it was
distribution excellence that took AP to the enviable position that it
holds today in the Indian Paint Industry.

⇒ It also created the distribution outfit that was necessary for

reaching the wide range of products to customers in every nook and
corner of the country. Customers could get the color of their choice
through mixing at the retail outlet. With the help of an automated
machine kept at the retail outlet, paint is given the desired color by
mixing different shades and strainers in the required proportion.
Thus they can also cut down inventory holding costs.

⇒ The promotion activities for Royale Emulsion by Saif Ali Khan &
Soha Ali Khan have also made it immensely popular amongst the
masses across all generations
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Weakness

⇒ The cost of the Asian Paint Royale Emulsion Paints is comparatively

higher than the other luxury emulsion paints of other companies like
Nerolac Impressions, Berger Luxol Silk etc.

⇒ AP’s Royale Emulsion has got its international presence in South East
Asian Countries, Southern Pacific Countries, Caribbean Islands, but it
has no substantial market share in the European and American
countries. So it needs to focus on its expansion plans in these
continents by development of a strong distribution and dealer base.

⇒ Also due to the recessive market condition and its immense negative
impact on the Real Estate Sector, the demand for luxury paint has
subsided to some extent and the comparatively high price of AP’s
Luxury Segment has send it to the back foot and somewhat hindered
its progress .

Opportunity

⇒ The rural market constitutes almost 72 % of Indian population, but

most of the potential is still untapped. The luxury Emulsions mostly
being in the higher price range does not fit the bill for the rural people
whose income levels are much lower than the average urban salary
level. They should bring out a subsidized Royale luxury emulsion for
the rural segment to make headway into the fasting growing segment
in India, which stands as an opportunity in front of them.

⇒ Another opportunity for AP’s Royale Luxury Emulsion, lies in further

strengthening its distribution network, which currently stands at
19,000 distributors.
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⇒ Apart from that introduction of new shades of Luxury Emulsion, further

enhancing the quality and durability of the paint is another opportunity
for the company.

Threat

⇒ The biggest threat is from the foreign companies entering as sole

players and capturing the existing market and tapping the potential
market as well

⇒ Rural India providing huge market potential can be tapped by

competitors before AP’s Royale Luxury Emulsion comes up with an
innovative product for the rural market.
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SECTION 2

Words: 1,562
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7. CONSUMER BEHAVIOR
ANALYSIS

It is rather challenging to understand the consumer behavior and target

groups’ needs of Asian paints. This is primarily because of the variety in
values, attitudes and behavior of customers despite certain similarities.
Failure to do so could result in disaster for a company’s products and
marketing programs.

TARGET MARKET AND CONSUMER

SEGMENTATION FOR ASIAN PAINTS

Asian Paints follows an important marketing strategy in the domain of

Customer segmentation. Asian paints’ has segmented its products mainly
in three sectors:

• Decorative

• Industrial

• Automotive

Their customers are all also segmented based on the usage of these
products. But our topic of discussion being Asian Paint Royale Emulsion, we
are only going to concentrate on the customer behavior of the Royale’s
customers.

We have performed both primary and secondary research for the

consumer behavior of Asian paints.
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8. PRIMARY RESEARCH
MARKET RESEARCH THROUGH SAMPLE
SURVEY

RATIONALE FOR THE QUESTIONNAIRE

The questionnaire was designed in such a way that we can analyze the
behavior of consumers in terms of buying roles, decision making process and
kind of purchase behavior. Questions were of multiple choice types so that it
is objective, can easily be quantified and is convenient for the target
customers to answer.

SAMPLE SELECTION

The sample we chose to investigate in order to reach our purpose was an

educated and a balanced gender population of the age group 17-40 years.
Asian Paints’ target market consists of almost the entire population,
including the ones who take the decision and even the ones who merely live
in a house. The total number of respondents was 147.

SCALING TECHNIQUE

There were multiple options to answer a particular question. Each option

corresponded to a particular mindset of the consumer, and thus inferences
were drawn on the result for every question. The individual results were
collated to come up with the overall conclusion.
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STUDY AND ANALYSIS OF CONSUMER

BEHAVIOR

Study and Analysis of Consumer Behavior done through the questionnaire is

discussed below:

Question 1: Are you involved in the decision-

making while choosing paints for your home?

a. Yes, entirely

b. No, not at all

c. Partially

Results & Analysis

Question 2: Priorities while choosing a particular paint brand?

a. Price

b. Quality
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c. Availability

d. Ease to use

Results & Analysis:

Question 3: How do you choose your paint? < If you do>

a. Brand name

b. Retailer’s advice

c. Price

d. Color

e. I do not choose the paint

Results & Analysis:

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Question 4: What paint are you using now?

a. Asian paints

b. Nerolac Paints

c. Berger paints

d. ICI Paints (AzkoNobel)

e. Other (please specify)

Results & Analysis:

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Question 5: Where did you hear about this brand?

a. Advertisement

b. Relative / Friend / Colleague

c. Internet

d. Retailer

e. Other (please specify)

Results & Analysis:

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Question 6: Preference of paints

a. Enamel

b. Distemper

c. Emulsion

d. Not aware of the above

Results & Analysis:

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Question 7: For you which is the most important quality of a good paint for
homes?

a. Durability and stability

b. Ease of clean

c. Finish of paint

d. Dries off easily

e. Binds easily

Results & Analysis:

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OTHER ANALYSIS

Inference # 1:

Price is the second best choice of preference and this factor is more or less
evenly distributed among all the three major income statement of study. As
seen from the graph, the priority of price as a selection criterion goes down
with increasing incomes.
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Inference # 2:

Most of the customers have quality as their first preference and this affinity
towards quality is most distinct for families having income of 5 lacs or more.

Inference # 3:

Most of the customers have availability as their 2nd preference and 3rd
preference and this affinity is also more or less constant across different
income groups.
33

Inference # 4:

Easiness does not follow a trend as such but we can say that people with
salary range between 5-10 lacs prefer easiness much more than others.

Inference # 5:

Asian Paints has the largest customer base and among the Asian Paint
Customer the preferential order for choosing the paint are as:

1. Durability,

2. Finish

3. Ease to clean

4. Binding Easiness

For the other paints we also find the same trend but there market share is
much less. The trademark technology of Asian Paints - “Teflon surface
protector” to provide greater durability has provided Asian Paints a
competitive edge as evident from survey results. Only in case of ICI, the data
shows that their customers have more affinity towards finish than towards
durability and other factors.
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Inference # 6:

The general trend of frequency of paint is after 3-4 years irrespective of the
nature of the paint and the brand.
35

Inference # 7:

For Asian paints people generally go for emulsions and enamels, while for
others the use of distempers are much more than the use of enamels and
emulsions.

Inference # 8:

The general promotion strategy as it appears is mostly by Advertisements

and this is true for all the companies across the paint industry. The next
important promotion techniques are through word of mouth publicity of
shopkeepers and relatives who have already used the brand.
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LIMITATIONS OF THE SURVEY

1. Although, the chosen age group of the sample is 17-40, most of the
respondents lied in the age group 20-27.

2. As the survey was done online, the respondents were people of the
economic class which has access to internet, and mainly the urban
population.

3. Limited cost & time restricted our sample size and sample diversity.

FUTURE SCOPE

1. This study can be extended by any paint manufacturer (Berger,

Nerolac or even Asian Paints) to launch a new product in the market.

2. This study can be extended to analyze, if Asian Paints or Nerolac need

to reposition / re brand itself in the Indian Market.

3. Primary demographic profile of survey takers are from Tier-1 cities, this
study can be extended to other parts of the country and even to Tier-2,
Tier-3 cities, so as to identify and analyze how the marketing and
branding strategy of companies vary in Tier-1 / 2 or 3 cities.

4. The study can be extended to perform trend analysis and analyze the
lifecycle of a product and how re-branding and repositioning of a
product, adds years to a product’s life.
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9. SECONDARY RESEARCH
MARKET SHARE OF ASIAN PAINTS IN THE
LUXURY SEGMENT
With an estimated growth potential of 15%, the market for Asian Paints
Luxury Segment is booming. Also, it has a number of competitors in this
segment.
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CUSTOMER SEGMENTATION

Type
Customers
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CHARACTERISTICS AND MAJOR FACTORS

B u ye r
CUSTOMER ANALYSIS
c h a r a c te r
There are few reasons due two which the customers in the decorative
segment have been choosing Asian Paint as their brand of choice –
40

1. As we know, brand name has its own value and Asian paints is the
number one in decorative segment, so a purchaser automatically leans
towards purchasing it.

For example, we have two different types of paints, namely Apolite

glass enamel and Apolite care emulsion, which are from Asian Paints,
Nerolac paints, Berger paints & ICI paints. Due to the brand awareness
amongst common people, they mostly tend to purchase the paints
from Asian paints.

2. In India, the frequency of painting walls has remained as low as once is

5 years. So, consumers are normally seen to change over to the better
quantity and branded paints.

3. In 2001, Asian Paint launched a new product “Tractor Emulsion” in the

segment of Luxury Emulsion, which pulled the customer who used
distemper to move to emulsion paints.

4. With the advancement of technology, the demand and choice of

people change rapidly. So intensive R & D is being carried out to
continuously enhance the quality of the product.

5. Internet purchasing is now becoming one of the popular ways to

purchase paints. So, adequate measures have been taken to satisfy
customers regarding designing of website and providing a brief
demonstration.
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SECTION 3

Words: 1,460
42

10. COMPETITORS IN THE

MARKET
The leaders in the organised paint industry are Asian Paints India Ltd. (APIL),
Nerolac Paints Ltd., Berger Paints, Jenson & Nicholson Ltd. and Azko Nobel.

Asian paints is the industry leader with an overall market share of 33 per
cent in the organised paint market. The Berger Group and Azko Nobel share
the second slot in the industry with market shares of 17 per cent each.
Nerolac has a market share of 15 percent in the organised sector.

11. KANSAI NEROLAC PAINTS

LTD.
Kansai Paints Co. Ltd., Nerolac’s parent company is the number one paint
company in Japan. It is a global leader in innovation and is known best for its
product innovation, R&D and sensitivity towards the environment, Kansai
commands a leadership position in providing state-of-the-art solutions in
décor and in industrial applications in South East Asia, also parts of Africa,
Europe and America.

• It is one of the top paint companies in the world.

• It has 39 Joint Ventures, subsidiaries and licensees around the world

and has recorded a turnover of over 2 billion USD.

Nerolac is the second largest coating companies in the country and leader
infield of industrial paints. In Industrial Coatings it has a wide range of
products in the Automotive, Powder, General Industrial and High
performance Coatings space. It is an established brand in decorative paints
sector. The technological edge of Kansai helps the company to constantly
43

innovate and come up with products that meet consumer need gaps. The
key factors in business of Kansai Nerolac are:

• Technology

• Research & Development

• Innovations

• Quality

MARKET PRESENCE

Kansai Nerolac is the second largest player in the domestic decorative paint
industry and the market leader in industrial paint segments such as powder
coatings and protective coatings. The company has strong presence in
automotive paints as it controls 45% of the organized Industrial paint
segment. Its major clients include OEMs like Maruti Udyog, Bajaj Auto, TELCO
and Mahindra & Mahindra. With a strong commitment to innovation, style
and consumers' needs, KNPL has embarked on several initiatives like
introduction of lead free (no lead added) paints, opening of Color Stylers
and Impressions Style Zone outlets. KNPL has also invested in IT
interventions involving a slew of product implementations across the entire
value chain of the organization. These will be enablers for effective and
speedier transactions to various stake holders.
44

Key product Range

45

Key Product Features

46

MARKETING STRATEGIES

Key consumer services

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 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 basis with a view to achieving
“First Time Right” results in manufacture, services and other operations
47

MARKET POSITION
Kansai Nerolac Paints has been at the forefront of paint manufacturing for
more than 89 years pioneering a wide spectrum of quality paints. Kansai
Nerolac is the second largest paint company in India and is the leader in
Industrial segment, having a turnover of over Rs 1972 crores. The company
has five strategically located manufacturing units all over India and a strong
dealer network across the country. The company manufactures a diversified
range of products ranging from decorative paints coatings for homes, offices,
hospitals and hotels to sophisticated industrial coatings for most of the
industries

Nerolac has always sought to harness the benefits of Information technology.

It has envisioned using Information technology in all areas of business to
build up unique competencies and efficiencies thus delivering maximum
value to Nerolac's stakeholders.
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SWOT ANALYSIS
49

12. BERGER PAINTS INDIA LTD

Berger Paints India limited is an India-based paint manufacturing company.
The company was founded by the legendary paint chemist Mr. Lewis Berger
in 1760. Berger Paints India is a 70 year old company and is India's 3rd
largest paint manufacturer.

The company has its headquarters at Kolkata, India and operates with a
distribution network of 66 stock points and approximately 10,000 dealers.
Berger Paints has unmatched range of products and services and is a market
leader in paints, offering a variety of decorative or industrial painting
options. Berger is an ISO 9001 company and offers products for shops,
factories, interiors, and exteriors. Berger Paints India reported net sales of
Rs. 117,221 lakhs for the year ended 31st March, 2006-2007 and net profit of
Rs. 8307 lakhs for the same period.

Berger Paints India has collaboration with the following international

companies -
50

• Nippon Bee Chemical Co. - Automotive Coatings

• DuPont Herberts Automotive Systems - Automotive Coatings

• Becker Industrifarg A.B. - Coil Coatings

• Orica Australia Pty Ltd. - Heavy Duty, Anti Corrosive Industrial Coatings

• Tigerwerk - Powder Coatings

• Valspar Corp. - Protective/Heavy Duty Coating

• Weld Rite Corp. - Protective/Heavy Duty Coating

MARKET PRESENCE

Berger is the third largest player in the domestic decorative paint industry
and also a strong player in non-automotive industrial segments such as
powder coatings and protective coatings. Berger’s decorative business has
shown strong growth in the last few years due to buoyant economic growth
and boom in the real estate sector leading to frequent repainting by
consumers.

Also, new construction and rural markets where Berger is relatively stronger
have shown high growth benefiting the company. Currently 80% of Berger’s
sales are contributed by decorative paints. Of this half is water based paints
margins and the rest are solvent based paints. Within this, the exterior
paints business is growing at twice the rate of overall business. 75% of
51

decorative sales come from the retail business and 25% from projects (new
construction).

Key product Range

MAREKTING STRATEGIES

Key consumer services

52

Berger paints has recognized the importance of customer service and

customer satisfaction in driving sales of the company. Berger painting
service takes the pain out of painting and is a complete painting service. This
includes professional help on which products are to be used, qualified and
experienced painters and material delivery, clean up and supervision. They
also provide a warranty on the work done by them. These customer services
features has helped Berger Paints to distinguish themselves in the paint
industry and in the eyes of the consumers.

Key Product Features

53
54

MARKET POSITION

Berger is a major player in the mass market with brands like Rangoli, Bison
etc and in exterior paints segment with Weather Coat. However, Berger had
lower presence in premium decorative paints, a segment where it is trying
hard to build a brand using ‘Lewis Berger’ brand challenging the dominance
of Asian Paints’ Royale and ICI’s Dulux.
Of the 20% sales from industrial paints, 50% each comes from the
automotive paints business and the other industrial paints (powder coatings
and protective coatings). Within automotive paints the company is only
present in OEM business (not in replacement market) and that too merely in
the 2 wheeler and commercial vehicle segments, not in the largest segment
– passenger car paints. This is because car paints require better technology
and strong relationships with car manufacturers, which unfortunately Berger
does not have. The non-automotive industrial paints market, in which Berger
is a strong player, is likely to benefit from the strong growth expected in the
new industrial installations as well as in the white goods segments.

SWOT ANALYSIS
55

13. CONCLUSION

Asian Paints is India’s leading paint company. It has a turnover of Rs 66.80

billion. The company claims to employ most advanced and prudent principles
in its working. Asian Paints aims to become one of the top five Decorative
coatings companies world-wide by leveraging its expertise in the higher
growth emerging markets. Simultaneously, the company intends to build
long term value in the Industrial coatings business through alliances with
established global partners.

It offers a vast variety of products in the industrial as well as decorative

segment of paints. We have analyzed the strengths, weaknesses,
opportunities and threats of Asian Paints Royale Emulsion.

Thereafter, we have performed primary as well as secondary market

research to study the consumer behavior of Asian paints. Some of our
important conclusions include that most of the customers have quality as
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their first preference and this affinity towards quality is most distinct for
families having income of 5 lacs or more. Amongst the promotional
strategies adopted, it appears that advertisements influence the buying
behavior of consumers most heavily followed by word of mouth publicity of
shopkeepers and relatives who have already used the brand.

Finally, we have performed the competitor analysis of Asian paints analyzing

in detail the market presence and marketing strategies of Nerolac and
Berger paints.
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14. BIBLIOGRAPHY
• http://www.entrepreneur.com/tradejournals/article/206850849_2.html
• http://fairsnexhibition.blog.co.in/2010/04/20/indian-paint-industry-
growing-at-fast-pace
• http://industrytracker.wordpress.com/2010/05/14/indian-
paint-industry-colourful-times
• http://www.asianpaints.com
• http://en.wikipedia.org/wiki/Asian_Paints
• http://www.scribd.com/doc/6655788/ASIAN-Paints-Distrbn
• http://www.asianpaints.com/pdf/product_pis/Royale_Emulsion.pdf
• http://www.google.co.in/#hl=en&q=Research+Desk+of+Asit+C+Meht
a+Investment+Interrmediates+Ltd.
+asian+paints&aq=f&aqi=&aql=&oq=&gs_rfai=&fp=9d022f21e4f783
64
• http://www.business-standard.com/india/news/39th-intl-film-
festivalindia-begins-tomorrow/06/01/49909/leisure

• http://www.scribd.com/doc/18230749/Asian-Paints

• http://www.scribd.com/doc/19096901/Customer-Preferances-Asian-
Paints-
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15. APPENDIX
Survey: https://spreadsheets.google.com/viewform?
formkey=dGtycFVnM1hlcmI5aDFiRU5yZGZsUFE6MQ

Results: