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SWOT Analysis of Asian Paints

The company is having presently four paint manufacturing locations in India. Ankaleshwar,
Bhandup, Patancheru, Kasna. The company is setting up a new facility in Sriperumbadur,
Chennai where these new positions will be based. An Asian paint is the Indias largest paint
company and ranks among the top 10 decorative coating companies.
As we move towards becoming the one company and ranks among the top ten decorative
coatings companies in the world today, with a turnover of Rs 20.67 billion (USD 435 million)
and an enviable reputation in the Indian corporate world for Professionalism, Fast Track
Growth, and Building Shareholder Equity.
The October 2002 issue of Forbes Global magazine USA ranked Asian Paints among the
200th Best Small Companies in the World for 2002 and presented the Best under a Billion
award, to the company. One of the countrys leading business magazines Business Today in
Feb 2001 ranked Asian Paints as the Ninth Best Employer in India. A survey carried out by
Economic Times in January 2000, ranked Asian Paints as the Fourth most admired company
across industries in India. Among its various other achievements, Asian Paints is the only
company in India to have won the prestigious Economic Times - Harvard Business School
Association of India award on two separate occasions, once in the category of Mini-Giants
and the other in Private sector Giants
The company has come a long way since its small beginnings in 1942. Four friends who were
willing to take on one of the worlds biggest,
Most famous paint companies operating in India at that time set it up as a partnership firm.
Over the course of 25 years Asian Paints became a corporate force and Indias
leading Paints Company. Driven by its strong consumer-focus and innovative spirit,
the company has been the market leader in paints since 1968. Today it is double the
size of any other paint company in India.Asian Paints manufactures a wide range of
paints for Decorative and Industrial use. Vertical integration has seen it diversify into
Specialty products such as Phthalic Anhydride and Pentaerythritol. Not only does
Asian Paints offer customers a wide range of Decorative and Industrial paints, it even
Custom-creates products to meet specific requirements.

SWOT Analysis of Asian Paints

Net Sales and Operating Income of Asian Paint (India)Ltd. grew by 14.4% from
Rs.16,966 million in 2003-04 to Rs. 19,415 million in 2004-05.
Net Profit increased by 17.4% from Rs. 1,478 million in 2003-04 to Rs. 1735 million
in 2004-05
The Board of Directors have recommended dividend of 95% for the year 2004-05
with a payout ratio of 60%
State of the art emulsion paint manufacturing facility commissioned at Sriperumbudur
near Chennai.
Board of directors:
Ashwin C Choksi
Ashwin S Dani
Murthy P M

Non-Executive Chairman
Non-Executive Vice Chairman
Managing Director & CEO

Abhay Vakil


Mahendra Choksi


Amar A Vakil


Ina Dani
Tarjani Vakil

Chairperson of Audit Committee

Dipankar Basu


Deepak M Satwalekar


Rajendra Shah


Dr. S Sivaram


Mahendra M Shah


SWOT Analysis of Asian Paints

Ramadorai S



Asian Paints approaches Corporate Social Responsibility (CSR) from the perspective of being
a responsible corporate citizen. There has been a continued effort to take up initiatives in
various quarters and ensure sufficient resources for the sustenance and continuity of the same.
The Company has identified projects across all its manufacturing locations in the country
primarily in the areas of education, health care, and rain water harvesting.In the area of
education, the Company has been involved in supporting various schools around its plants
including the setting up of the Gattu school at Ankleshwar which provides eduction to
around 2,500 students from various strata of society. In the area of health care, the Company
continued operating Mobile Medicare Units (MMU) around Patancheru (Andhra Pradesh) and
Kasna(UP) plants collaborating with HelpAge India, an NGO. The Company also took the
initiative of treating people with cataract and successfully got around 460 patients operated at
recognized eye- hospitals.
International operations:
Asian Paints operates in 23 countries across the world. It has manufacturing facilities in each
of these countries and is the largest paint company in nine overseas markets. It is also Indias
largest exporter of paints, exporting to over 15 markets in the Asia-Pacific region, the Middle
East and Africa. In 12 markets, it operates through its subsidiary, Berger International
Limited and in Egypt through SCIB Chemical SAE.
Corporate vision:
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.Finishes that give you great looking interiors, with the
choice of every shade of the spectrum

SWOT Analysis of Asian Paints

During the Second World War, it was hardly a promising time to set up a new company in
India, but that is exactly what four young men did in Bombay.
The name Asian Paints was picked randomly from the telephone directory.And the four
young men started manufacturing paint in a garage rented for Rs. 75 a month, equipped with
little more than a traditional Gujarati rhyme that reminded them that you can make any colour
by mixing the right proportions of red, blue and yellow.
The company had touched a modest turnover of Rs. 350,000, way beyond the wildest dreams
of the partners. Up against the giant international paint companies, Asian Paints hit on the
innovative marketing strategy of going where the consumer is, reaching out to the remotest
corners of the country to give consumers products the way he wanted them-in convenientlysized packs. It was also around this time that the company created its mascot, Gattu, which
has grown into one of Indias most recognizable advertising symbols and representative of
Asian Paints strong Indian identity.
It was the beginning of a decade of dramatic growth. The companys R&D department
figured out a way to produce international quality Phenolic and Maleic resins on its simple
coal-fumace, with a hand-stirring process. This led Balmer Lawrie to reject the products
offered by a leading giant UK-owned paint company, despite the latter is perceived
technological advantage and switch to Asian Paints products. Simultaneously the company
embarked on an ambitious marketing campaign, forming close bonds with thousands of
dealers in small towns all over India. These bonds in true Asian Paints style were so close that
it developed a very strong link between the organization and dealers these efforts paid off
handsomely as the story of the subsequent years shows.
By 1968 the company surprised its big-name multinational competitors by emerging as
Indias No. 1 paint company. Ever since 1968, the company has been a leader in this industry.

SWOT Analysis of Asian Paints

The company presently has 27 % market share of the total paint market Even though being a
leader in this industry, it has realized that it can further consolidate its position.
In 1998, the company embarked on a major restructuring strategy under the guidance of
management consultants, Booz Allen & Hamilton. The restructuring was done to bring
greater focus to its business, improve efficiencies, control cost and strengthen its leadership
position. After the completion of the restructuring, the vision for the company was stated. The
company is committed to realizing its vision and has chartered a complete plan of action for
realizing its vision.

Asian Paints becomes the 10th largest decorative paint company in the world

Asian Paints is more than twice the size of its nearest competitor

It is one of the most admired companies in India

Present in 22 countries with 27 manufacturing locations, over 2500 SKU's, Integrated

SAP - ERP & i2 - SCM solution

Rated Best Employer by BT-Hewitt survey, 2000 Bluest of the blue chips by Hindu
Business Line; Most admired company to work for by ET-BT survey, 2000

On the recommendations of Booz, Allen and Hamilton, Asian Paints restructured itself
into Growth, Decorative and International business units and adopted SCM and ERP

Asian Paints aims to become the 5th largest decorative paint company in the world

SWOT Analysis of Asian Paints

New capacity

New paint plant at sriperumbudur

Asian Paints, new paint plant at Sriperumbudur, near Chennai in the State of Tamil Nadu
commenced production on January 20, 2005. It is located at SIPCOT (State Industrial
Promotion Corporation of Tamil Nadu) Industrial Park, Sriperumbudur. This state of the
art plant, erected in



capacity of 30,000



Paints fifth paint


established to manufacture emulsion paints alone with an initial

plant in

SWOT Analysis of Asian Paints

The plant is presently equipped with:
Modern material handling facilities including storage of raw material in silos.
Capability to handle batch sizes upto 20 KL, High speed packing lines.
The latest automated process control system.
Pollution abatement, waste usage in a closed loop manufacturing system and
advanced pollution treatment facilities.
These facilities will enable the company to implement Right First Time and Zero
Defect concepts. The plant is Zero Discharge plant and has Environment, Health, and
Safety features of the highest standard.
Global Presence of Asian Paints:
Asian Paints has had international presence right since the 1960s. It set up its first overseas
unit in 1977 at Fiji. Asian Paints now has a strong presence in the Indian subcontinents,
Southeast Asia, Far East, Middle East, South Pacific, Caribbean, Africa and Europe. Along
with Asian Paints, the group consists of sub Chemicals, Berger International and Apco
Coatings. Together, the group has 27 manufacturing locations globally.Having established a
position as one of the top ten decorative coatings companies in the world, our constant
endeavor is to give you the best in paints which stems form the motto: Any surface that
needs painting needs Asian Paints.



South Pacific

Australia, Fiji, Solomon Asian Paints and its

Islands, Samoa, Tonga, subsidiaries

South East Asia


Malaysia, Berger International

Singapore, and its subsidiaries

SWOT Analysis of Asian Paints

South Asia

Middle East


Bangladesh, Asian Paints and its

Nepal, Srilank


Bahrain, UAE

Berger international
and its subsidiaries



Jamaica, Berger International

Trinidad & Tobago

and its subsidiaries

Product range in a company:

The company produces different rang of paints in interiors decoration as well as
exterior decoration, to satisfy the consumers.
Company product ranges are
1. ROYAL LUXURY EMULSION: is an acrylic emulsion that gives a wall a silky shine that
stays for years to come.
2. PREMIUSM EMULSION: PE is a good choice for great looking walls. It gives a smooth
finish to the walls and is completely washable.
3. INTERIOR WALL FINISH - LUSTER gives a glass like finish, best suited for kitchens
and washrooms where there is a lot of moisture and dirt.
4. INTERIOR WASS FINISH-MATT: give a matt look to your walls and can be used to
create interesting effects.
5. TRACTOR EMULSION: TE is a good choice for people who are looking for value for
their money. It promises smoothness along with the legendary qualities of tractor.
6. TRACTOR ACRYLIC DISTEMPER: TAD gives a superio9r finish and comes in the range
of over 200 shades.
7. TRACTOR SYNTHETIC DISTEMPER: TSD is India is largest selling distemper. This
wall finish comes in beautiful shades and is washable.

SWOT Analysis of Asian Paints

8. APCOLITE PREMIUM GLASS ENAMEL: APGE is a premium product used for metals
and wood. It can withstand rigged condition sunlight and dust.
1 APEX: Apex creates beautiful exterior. It withstands extreme typical conditions of high
rainfall, humidity and heat. It protects against, sunlight, fungus and algae.
2 ACE: provides production from the elements of nature. It is suitable for non - coastal areas
and places with dry to moderate climate.


1. DECOPRIME WALL PRIMER (solvent thinnable): DWP is an application for interior
surfaces. It has good sealing properties and strong resistance to alkalinity, moisture & fungus.
2. DECOPRIME WALL PRIMER (water thinnable): DWP is used on plastered walls,
asbestos, cement and concrete. It is also fortified with fungicides.
3. WOOD PRIMER: WP has excellent sealing and filling properties, which protect wood
from swelling due to absorption of moisture.
4. METAL PRIMER: MP has good adhesion and prevents metal from rusting, by forming a
hard tough coating.
5. ACRLIC WALL PUTTY: AWP is a smooth, easy to use under coat with excellent adhesive

SWOT Analysis of Asian Paints


SWOT Analysis of Asian Paints

Products of Asian paints

Marketing strategy of asian paints:

Product Mix:
Asian Paint Company manufactures and markets, a wide arrange of products such as surface
coatings and ancillaries, which include Architectural and Heavy Duty Coating for
maintenance purpose. Asian paints provide wide range of color shades (about 1400) for
different kinds of surface. All the shades are created by All India Institute of Fashion
Technology. They create colors according to the Indian Taste.
Distribution Mix:
In India, the distribution network of the company consists of 56 sales offices and 6 Regional
Distribution centers each with its own warehouse distributing products to cater over 15,000
retail outlets and industrial users spread across the country.In every place where there is a
population of around 20,000 there is an Asian paint dealer. There is no middle men or sub
stockiest. When an order placed to the company the company distributes the goods to the
dealer directly from its own godowns.As there are no middle men, the service is fast. It
reaches to the end user i.e., the consumers in a very short time. In Davangere the company
has got 18 dealers.
Promotion Mix:
The company promotes the products through advertisement in Television, maga- zines etc.
The ads are created bearing in mind, the culture, people, area etc. The ads are seasonal in
nature. The advertisers for Asian paints is O and M (Oglive and Mother). Most of the ads are
created on the basis of the family as the members of the family who decides the type of paint,
shade of paint etc.
Price Mix:
The prices of the products of the company are on par when compared with the other
companies in the organized sector. The price of Asian Paints, compared to the paints of other
companies is same. But slightly higher that the prices of unbranded products. It does not
mean that the products of Asian Paints are inferior. Asian Paints have succeeded in reducing
the process and supplying the quality products at a reasonable rate because of huge

SWOT Analysis of Asian Paints

investment in Research and Development. Through Research and Development, the company
has improved the quality of paints and increased the life of paints. From the above table it is
clear that even middle class people buy paying a slightly higher price (compared to prices of
unbranded paints) they can get quality products of Asian Paints Ltd.,

About services:
The company starts services by the name called Home Solutions. Home solutions
means the company provides technical information on process of painting. It gives complete
information about how the customer selects the paints from different range. Which color,
range of paints suits to home, how to paint a home, etc., This facilities available only big
cities, like Bangalore, Bombay, Kolkata, Delhi, Chennai etc.,
Perfect applications that work in unison with every wall finish. Giving surfaces the best


SWOT Analysis of Asian Paints

Consumer behaviour
Understanding consumer behavior and knowing consumer are never simple. Consumers may
state their needs and wants but act otherwise. Consumer behavior is largely determined by
how the customer thinks and processes information.Consumer behavior is one of the important
variables on controllable in the marketing environment. Buyer behavior is a comparatively
new field of study. It is the attempt to understand and predict human actions in the buying

It has assumed gracing importance uses market oriented for consumer oriented

marketing, planning and management, buyer market for many products and the growth of
consumerism and consumer legislation. Since 1960, have created special interest in buyer
behavior and formation of marketing programmer to respond favorably buyer behavior in the
market place.Every marketing activity revolves around the customer. In early stages of
economic evaluation the consumer had to accept what producers had produced but today the
consumer dictates terms to the manufacturer to manufacture the product he wants. Consumer
purchases a commodity as dictated by there mental an economic force. As consumption
initials production the producer purchase this helps into offer a total product that can give
consumer satisfaction.
Major factor influencing buying behaviour
Consumers make purchase decisions on the basis of who they are where they line and
now much they earn.


SWOT Analysis of Asian Paints


cal factors






Belief &








al factors




1. Psychological factors
It is a psychological technique of inspiring human beings to act in a particular way.
Motivation acts as a driving force in the flow towards purchase action. Motivation has a direct
cause and effect relationship. Motivation is the drive to act, to move to obtain a goal or an
objective. Motivation is a mental phenomenon. It is affected by perceptions, attitudes, and
personality traits and by outside influences such as culture and marketing efforts.
Perception gives the direction or path to be taken by the behavior perception is the meaning
we give on the basis of our past experience. To perceive is to see, to hear, to touch, to taste, to
smell and to sense same thing or event or relation and to organize, interpret and find meaning
in the experience our senses perceive the color, shape, sound, smell, taste etc., of the stimulus
our behavior is governed by these physical perceptions.


SWOT Analysis of Asian Paints

All theories of buyer behavior have been primarily based on a learning model. Learning is the
central topic in the study of human behavior learning is defined as all changes in behavior that
result from previous experience and behavior in similar situations. It refers to changes in the
behavior, which occurs as a result of practice. Learning is the product of reasoning, thinking,
information processing and of course, perception.
Social psychologist defines attitude as an emotionalized predisposition to suspend positively
or negatively to an object or class of objects. The concept of predisposition includes our
familiar concepts of attitudes beliefs, goals and values. Attitudes affect both perception and
behavior. In general an attitude is a state of mind or feeling. It induces a predisposition to
behave in some way. Attitudes are very important in explaining buyer behavior.
Personality is a complex psychological concept. Ts primary features are self-concept, roles
and levels of consciousness. The self-concept refers to how a person sees himself and how he
believes others to see him at a particular time. The buyer behavior is influenced by the
particular role upon which a buyer is concentrating at a given time. Personality traits such as
dominance, sociability, friendliness, responsibility, dependence etc., can indicate how people
2. Social cultural factors
Most consumers belong to a family group. The family can exert considerable influence in
shaping the pattern of consumption and indicating the decision making roles personal values,
attitudes and buying habits have been shaped by family influences.
Reference group
The concept of reference group is borrowed from sociology and psychology. Buyer behavior
is influenced by the small groups to which the buyer belongs. Reference groups are the social,
economic or professional groups and a buyer uses to evaluate his or her opinions and beliefs.
Reference group is useful for self evaluation and attitude formation.


SWOT Analysis of Asian Paints

Social class
Sociology points out the relationship between social class and consumption patters. As a
predictor of consumption patterns, marketing management is familiar with social classes
consumers buying behaviour is determined by the social class to which they belong or to
which they aspire rather than by their income alone. Broadly speaking, we have three distinct
social classes upper, middle and lower classes. Upper class people are aggressive in buying
and analysed less. Middle class people are more informative but lower class people are
essentially non national purchases and show limited sense of choice making.
Culture represents am overall social heritage, a distinctive form of environmental adaptation
by a whole society of people. It includes a set of learned beliefs, values, attitudes, morals,
customs, habits and forms of behaviour that are shared by a society and transmitted from
generation to generation within that society cultural influence is a force shaping both patterns
of consumption and patters of decision making from infancy.
3. Economical factors
Personal income
The economist made attempts to establish relationship between income and spending. This
income represents potential purchasing power that a buyer has. The change in income has
direct relation on buying habit.
Income expectation
The expected income to receive in future has direct relations with buying behavior. The
expectation of higher or lower income has a direct affect on spending plans.
A change in the amount of saving leads to a change in the expenditure of an individual. It he
decides to save more he will spend less an comforts and luxury.
Consumer credit
Facility of consumer credit system like hire purchase installment purchase credit cards etc.,
play an important role in purchase decision.


SWOT Analysis of Asian Paints

4. Environmental factors
The system of government influences both consumer and market behavior. If the government
is rigid the buying pattern of consumer may be less frequent. On the other hand if there is
stable and modern approach, buyers will by frequently.
The legalities and politics of the government like taxation policy, import export policy etc., are
more rigid. Market will play to a less extent and if the policies are liberal buyers are more free
to buy.
The advancement of science and technology changes the standard of living and income level
of buyers and they go for durable and comfort goods.
The business policy of commercial undertaking also influences the buying behavior of


SWOT Analysis of Asian Paints

Meaning of attitude
An attitude is an enduring organization of motivational, emotional, perceptual, and cognitive
process with respect to some aspect of our environment. It is a learned predisposition to
respond in a consistently favorable or unfavorable manner with respect to a given object.
Thus, an attitude is the way we think, feel, and act toward some aspect of our environment
such as retailers store, Television programmes, or Product (paints).
Attitude Components:
Attitude as having three components:
1. Cognitive Component:
Person beliefs about the paint many beliefs about the product (paint) attribute are
evaluated in nature. That is attractive styling, availability, quality, reliable performance etc.
Than the person belief is positive.
2. Affective Component:
Our feeling or emotional reaction to an object represent the affective component of an
attitude. A person feeling like/ dislike concerning the paints.
3. Behavioral Component:
The behavioral component of an attitude is ones tendency to respond in a certain manner
toward on object or activity. A person action tendencies or predisposition towards the paint. If
a person holds a favorable belief toward a product (say paint) he will generally behave in a
supportive manner towards that product (i.e. paint). An attitude is relevant when purchase
behavior is formed as a result of direct experience with the product (paint) information
acquired from others and exposure to mass media like advertisement etc. So attitudes are
leaved predisposition and is true in case of paint. Attitude are not synonymous with behavior,
but reflect either favorable or an unfavorable of the attitude towards the product. Attitude of
the consumers are not permanent. They do change according to the changing conditions. So
we must consider the influence of the situation on the consumer attitude and behavior.


SWOT Analysis of Asian Paints

Buying behavior
The consumer decision making varies with the type of buying decision.
1. Complex buying behavior: In this type consumers go through complex buying behavior
when they are highly involved in a purchase and aware of significant difference among
2. Dissonance reducing buying behavior: Sometimes the consumer is highly involved in a
purchase but sees little difference in brands. In this case the buyer will shop around to learn
what is available but will fairly and quickly because brand differences are not pronounced.
3. Habitual buying: Many products are brought under conditions of low consumer
involvement and the absence of significant brand difference.
4. Variety seeking buying behavior: Some buying situations are characterized by low
consumer involvement but significant brand differences. Here consumers are often observed
to do a lot of brand switching.
Measurements of attitudes
The attitudes of consumers should be measured to implement the new strategy, it is
also a very difficult task since, and there is no physical component of attitudes. So it is
substantially difficult to measure this attitude as compared to measuring of physical
characteristics viz. Weight, length, volume etc., The inferences based on self reports of belief,
feeling and behaviors can be measured using rating scales, paired comparisons etc.
Consumer attitude is a very complex and important aspects in marketing activity. Consumer
needs and preferences should be understood properly. The negative attitude towards the
object should be changed to positive. In case of paints also, the marketer should understand
consumer needs and preferences in order which change the attitudes in favorable manner.
1. Change the Affective Component:
Classical Conditioning

SWOT Analysis of Asian Paints

Affect toward the Ad
More Exposure
Attitude Change Strategy Focusing on Affect
2. Change the Behavioral Component:
Attitude Change Strategy Focusing on Behavior
3. Change the Cognitive Component
Change beliefs
Shift importance
Add beliefs
Change Ideal


SWOT Analysis of Asian Paints

ASIAN believes that Asian Paints India strengths include its well-established brands and the
global nature of the business which allow ASIAN Paints to use its resources, expertise and
experience to offer the best solution for each local market and the needs of the end users.
Great presence in places that the brand is better recognized and has a good customer base.
A well Established Brand
Asian Paintscelebrates its productions Silver Jublee this year. Even after 25 years of production, it has never needed to re-brand itself. The USP of the product is so strong and has a
great credibility for the consumer. A quality innovation driven attitude has kept the brand still
alive and on the top of the mind recall of most of its existing and prospective consum-ers.
Strong Brand Image
Asian Paintsis has maintained an im-age of being the most expensive in the category along
with providing the best quality among its competi-tors. With the help of a lot of promotional
activities for its dealers as well as consumers, it has earned a great amount of goodwill over
the years. There is a lot of recall when it comes to Velvet Touch, when-ever someone thinks
of paints and pearl glow finished he necessarily has to be thinking about Asian Paintsonly.
Quality driven
While its competitors concentrate more on va-riety and mass production and a lot of other
different strategies, the company is essentially a quality centric company. This has helped the
company grow and sus-tain its brands
First Mover Advantage
Asian Paints as a brand has been aounrd for more than two decades and the only competition
it be-gan facing was only a decade after they launched the smooth finish technology. This in
itself help strength-en the credibility of the brand promise and now it is.


SWOT Analysis of Asian Paints

No Innovation in products
One of the major downfalls of the company is that, ASIAN has not innovated in technology
and market-ing over the years. Being one of the oldest and the globally trusted brand it has
not changed with time. This change which is very cardinal for every compa-ny to grow over
the years is non existent in Dullux.
Weak Distribution
Asian Paints as a brand does not make an effort to penetrate and create a stronghold not only
inn the cities but the rural areas as well. The distribution concentrates only on the developed
areas of the country which is only about 30% of the total population of India. Comparing its
aggregate sales with its competitors in India, Dulux needs to widen the distribution in areas
which are developing as well as rural.
Concentrating only on dealer related marketing
According to Velvet Touchs Regional Sales Manager Mumbai, the important thing for them
is the dealers. The end users are no their target. Asian Paintsmarketing takes only dealers into
consideration. The company does not want to convert the product into a high involvement
product. This factor, today, has gravely affected the brand presence as well as the credibility
of the brand among the consumers.
Depending on previously established Goodwill
Asian Paints has not evolved with time. The company also does not believe that they need to
rebrand themselves and also bring back the brand at


SWOT Analysis of Asian Paints

Greater Penetration
One of the biggest opportunities ASIAN has in India is to become the positioned leader in all
parts of the country. At present, there is very less penetration of ASIAN brands in the rural
market. ASIAN could reap great profits coming from the rural areas as well.
Better Brand Presence
With a great stronghold among the existing dealers in major cities, there are chances of Asian
Paints becoming an unmatched and better known brand among competitors. With a better
strategy and substantial goals a better brand presence can be built for Velvet Touch.
Real Estate Boom
The real estate boom which is gaining momentum by the day, is a great boon to the entire
paint industry. This would actually be a good opportunity for all of the industry to cash in on
their profits.
Consumer Involvement
With increasing direct contact with the consumer, there are more chances of the paint brands
to gain a lot of momentum and make their mark in the consumers minds. More and more
paint products are repositioning themselves and making their marketing strategies more
appealing to the house owners rather than the contractors. This ensures the consumers total
involvement in the decision making.


SWOT Analysis of Asian Paints

Reaching Brand Graveyard
One of the threats Asian Paints could face is the brand graveyard. When it comes to recall
Asian Paints on its own has a lot of credibility, but some-times by a layman it is mistaken as
an Asian Paints brand. This is very dangerous for the brand loyalty of Velvet Touch. This
trend may even end up in making only the brand name generic like Bisleri (a name given to
any mineral water bottle brand now) in India. This practice of a lot of painters and people
who are unaware of the market would prove to be very dangerous for Velvet Touch.
Tag of a Tired Brand
Asian Paints has been a strong contender in the market for a long time now but is loosing its
grip now. This according to a lot of brand valuation processes is a sign of a tired brand. Tired
brands usually wear out and do not bounce back up. Once the tag of a tired brand is given, the
brand will immediately loose all credibility as well as loyalty.
Loss Of Loyal Customers
Because Asian Paints is one of the oldest and one of the most bankable brands in the market
today, it has a lot of demand as well as appeal among consumers. With a lot of innovations
and a lot of movement in the market, the loyal consumer might just get inquisitive and opt or
a competitor brand. A study shows that most loyal brand users opt for new brands because
boredom sets in and change seems to be a great option.
Possibility of Running out of Fashion
New trends keep coming up and they have a lot of impact on the consumption patterns of
people. Moods and a lot of other factors also are taken into consideration when it comes to
choosing consumer goods. With so many different innovations and finishes launching in the
industry, a consumer is very prone to get deviated from his original choice. This deviation
influences the consumer to try out a new product which has an element of surprise in it as


SWOT Analysis of Asian Paints

Brand Benefit
Initially Royale positioned itself as an Elite brand, it has built a sense of confidence in
peoples minds. A sense of assurance that this brand ensures optimum quality is embedded in
peoples minds. More than anything else their marketing and distribu-tion has ensured that
when people think of paints they think of Asian Paints.
When Asian Paints Royale first launched its quality was not appreciated for cost it was being
sold. There were problems and the brand had no takers then. Later in the year 2000 when
Royale was reposi-tioned in a new and with a different outlook, the sales sky rocketed to the
top instantly. There have been no complaints ever since the product was re-launched. With a
great customer service center set up nationally, Asian Paints has also made itself a leader in
customer satisfaction and consistency. From the retailers point of view also the service is
impeccable, in most parts of India they have a three hour order settle time and in case of any
grievances the sales officers at the dis- trict dispatch centers take personal care of the same.
Co-Ordinated Marketing
Asian Paints follow an open market policy, they do not believe in the classical distribution
pat-tern. It has a lott of loop holes according to them. The point of interaction of the retailer
and the company is direct which makes each dealer feel secure about the authentAsianty of
the services provided to him. A distribution led company has to have a strong hold on each
and every nook and corner of the market. That is what 18000 retailers are present for in India.
In every metro there are two main warehouses from which supply is dispatched to all the
retailers within the city. Asian Paints have recognized their end user properly and therefore
pay more attention on the local Naka Meets which happen every week in small Paint hubs in
the cities. For example South Mumbai has 4 paint hubs, they are CP Tank, Tardeo, Sewri and
Dadar. Every week contractors and small time painters and artisans come together for getting
small jobs and contracts for the week. When retail-ers are given better schemes they promote
the prod-ucts better and sell them more. Asian paints has set schemes and is not flexible in
making exceptions for retailers.


SWOT Analysis of Asian Paints

Data Analysis & Interpretation
1. Which company are you dealing with?





It is the evident from the above pie chart, maximum sub-dealers are selling Asian
Products in Mumbai market.


SWOT Analysis of Asian Paints


SWOT Analysis of Asian Paints

2. What is the region for selling a particular paint companies product ?
Name of Brand
Cost effectiveness






Name of Brand
Cost effectiveness

It is evident from the above pie chart, the maximum sub-dealer like to sell paint
products having good quality, Name of brand, low cost and advertisement in
Mumbai market.


SWOT Analysis of Asian Paints


SWOT Analysis of Asian Paints

3. Which brand is highest selling in your counter ?




Is shown the above pie chart that 60% of the sub-dealer said Interior paint and
40% said exterior paint are highest selling.


SWOT Analysis of Asian Paints


SWOT Analysis of Asian Paints

4. What is your source of purchasing product ?




In the above pie chart most sub-dealer i.e. 70% purchasing paint product from
Dealers, 25% purchasing direct from company and 5% purchasing both dealer and


SWOT Analysis of Asian Paints


SWOT Analysis of Asian Paints

5. What is your expectation for taking the dealership of any company?
Easy delivery
% of margin


Easy delivery


% of margin


In the above pie chart 36% sub-dealer tell Easy delivery and %of margin both the
expectation of taking dealership in Mumbai market.


SWOT Analysis of Asian Paints

6. Are you interested for taking dealership of Asian Paints ?




In the above pie chart 60% sub-dealer wants to take dealership in Mumbai market.


SWOT Analysis of Asian Paints

7. Which type of advertisement is useful?








In the above pie chart 50% sub-dealer told television advertisement in useful.


SWOT Analysis of Asian Paints

8. Are you satisfied with Asian Paint Service?





In the above pie chart, most of the sub-dealers i.e. 70% are satisfied with Asian Paint


SWOT Analysis of Asian Paints


SWOT Analysis of Asian Paints

9. What is the response of Asian Paint amongst consumers ?






In the above pie chart,65% consumer are said its satisfactory & 25% said excellent


SWOT Analysis of Asian Paints

10. Does your shop gets visited by companies sales personnel?




In the above pie chart, most of the sub-dealers i.e, 60% are the companies
personnel do not visit for sub-dealers counter.