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Presented By,

Rahul Kumar Yadav


MBA 2nd semester
(1806260046)
About Asian Paints

• Started in 1942 by four entrepreneurs: Choksey Brothers.


• In 1967, Asian Paints became the 10th largest paint company in the world.
• In 1973, it became a public limited company.
• In 2002, it was a market leader of Indian decorative paints.
• With a turnover of Rs.158.5 billion ,Asian Paints operates in 19 countries and have 26
manufacturing facilities, and serving customers over 65 countries
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.”
International Strategy
• All the research and development centres of the company is in India.
Asian Paints have a Research & Technology centre at Turbhe on the
outskirts of Mumbai. PPG Asian Paints, the subsidiary of Asian Paints
Ltd have a R&D centre in Mumbai and Chennai.

• Asian Paints have 23 manufacturing facilities around the world. All of


these facilities are managed by the corporate office in India.
Corporate strategy of Asian Paints
Swot
• Strength: Analysis
1. The largest paint company in India and third largest company in Asia
2.They have over 50% of market share and are clear leaders decorative paints and are strong
competitors to Kansai Nerolac Paints to be leaders in Industrial paints and coatings.
3. They operate in 17 countries and have 24 manufacturing facilities providing service to 65
countries all over the world.
4.Asian paints has strong international presence with its four 4 subsidiaries; Berger International
Limited, Apco Coatings, SCIB Paints and Taubmans.

5.Most renowned brand in Indian Paint Industry & its strong customer focus and innovative-spirit
has made it market leader since 1968.

6.Superior technologies deployed to achieve maintain the competitive edge for eg. Supply chain
management system that integrates plants, regional distribution centers, outside processing centers
etc. hence they have strongest supply chain system with
7.They have maintained their brand name and increased awareness by unique ways of advertising
and roping in celebrities like Saif Ali Khan.
8. The company has strong financials.
• Weakness:
1. Limited market share in industrial paints segment with Kansai
Nerolac and Akzonobel giving stiff competition.
2. In decorative paints Industry Customer tastes and perceptions
change very fast and products may become obsolete with change in
trends, hence production planning and inventory problem.
• Opportunities:
• 1. Big an international standard paint company it should look for
more opportunities abroad
2.There is a good scope for growth especially in industrial paints
category
3.Needs to have more focus on Automobile industry in industrial
paints segment
• 4. Competitors are going for Hi-tech process and Asian paints with
good financial and intellectual capital can go for hi-tech.
• Threats:
• 1. Growth prone to slowdown effects
2.Stringent Government rules and regulations regarding the quality of
products and manufacturing facilities as Environment policies are
given more emphasis
3. Raw material scarcity and volatlility in prices.
Climate(PESTAnalysis)
• Political Factors:
• India is the largest democracy in the world
• The Government is federal public
• Political situation is more or less stable in nature
• Export oriented economy

• Economic Factors
• Market based Economy
• Second fastest growing economy in world
• Third largest in terms of purchasing power
• Introduction of FDI in new sectors
PESTAnalysis
• Social Factors
• India, second largest populated in world
• Rise in price of raw material
• Import of raw material

• Technological Factors:
• Emerging IT sector
• Modernization of paint like water proof, Teflon, creative colors
• Lead free paints
Company
Parent Company Asian Paints

Category Paint Industry

Sector Industrial Products and Chemicals

Tagline/ Slogan Merawala blue; Har ghar kuch kehta hai ki ;Ask Aparna

USP India’s biggest brand with widest reach.

STP
Caters to all segments with brand Royale aimed at premium

Segment segment and rest at mass market.

Home-owners, industries-hotels, education, healthcare, agro &


manufacturing equipment and automobile etc. infrastructure,
govt. buildings
Target Group

Positioning A complete array of products to cater to everyone.


• Jenson & Nicolson India Limited, Kansai Nerolac
Competitors Paints, Akzonobel, Sherwin-Williams, Nippon
Paint, PPG Industries

• Advertising: Not much spending on advertising required


• Motivation – Life necessity
Customers • Distribution channels- Retail, wholesale
• Quantity and frequency of purchase - Daily
• Income level of customer – All classes of customer

• Suppliers: Chemicals are largely a commodity. Business partners


around the country along with local sourcing helps in reducing
Collaborators cost
• Distributors: Wholesale shops, Retails Stores.
INDIAN PAINT INDUSTRYSEGMENTATION
Profit Pool Analysis –
Asian Paints Profit Pool Decorative Industrial
0.18
0.16
0.14
Operating Margin

0.12
0.1
0.08
0.06
0.04
0.02
0
94% 6%
Revenue Percentage
PRODUCT PORTFOLIO STRATEGY

INDUSTRIAL DECORATIVE AUTOMOBILES ANCILLARIES


PAINTS PAINTS
• Protective Coatings • Exterior Walls • Deltron • Primers
• Floor Coatings • Interior Walls • Delfleet • Stainers
• Road Markings • Metal Surface • 2K Nexa • Fillers
• Powder Coatings • Wood Surface Autocolor
• Pthalics
PORTFOLIO STRATEGY FOR ASIAN PAINTS

Lots of Question Marks


products

Distempers They should have one One or more product


Kitchen Business or more starproducts. that falls in Cash Cow
category.
Bath Business
Home Painting Solutions
Future growthoptions
• The paint industry is in growth stage in India as
construction activity has a high priority.
• To keep their dominant position Asian Paints should
pursue vigorous R & D for innovative products .
• Increase the number of depots for covering the entire
country
• Has launched E-Strides, an ERP (Enterprise resource planning)
• Predator pricing- Predatory pricing (also undercutting) is a risky, and
dubious pricing strategy where a product or service is set at a very
low price, intending to drive competitors out of the market, or create
barriers to entry for potential new competitors
Thank you

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