PRESENTED BY:DEBASISH GHOSH MBA(PRIST) Reg.

No- 103206

Indias largest paint Company. One of the top ten decorative coating companies in the world. Started by four entrepreneurs: Champaklal Choksey,Chimanlal Choksey, Suryakant Dani and Arvind Vakil. Turnover: INR 0.35 million(1945), 54.3 million (2009). P.M. Murthy (MD & CEO).

 Asian

paints has acquired short-term competitive advantages by using its distribution strength and logistical efficiency in order to raise the cost of doing business for all its competitors to attains this advantage. The advantage is short-lived and ultimatately imitable. Moreover, Asian Paints has established such an extensive network that getting incremental advantage would be very difficult.

Industry is characterized by the presence of intermediaries who have a very high influencing power on the purchase decisions of the consumer, especially in the urban areas. Asian Paints strategy for acquiring higher product demand could be three pronged.

1. Use these intermediaries for initiating demand: The intermediaries (the painters, contractors, designers, decorators etc.) could be used as a marketing arm of the company.

2. Occupy part of the intermediary space and try to sideline other intermediaries: Asian Paints should open a service arm, which would provide the services provided by the existing intermediaries in the market. Being present in different seditions of the value delivery system and having a strong brand equity in the Paints market would give them the credibility to operate a strong service arm. The service based strategy of Asian Paints could have two different approaches

The first approach would entail creating a service arm that can cater to a large market.

The second one would necessitate the creation of a wellqualified service arm which is capable of providing value-added services.

3. Asian Paints can follow both these approaches and cater to different market segments. The value-addition services arm would cater to the premium end of the market who have a very high willingness to pay and the other bundling services arm would cater to the demands of the masses. 3. Asian Paints could try to reduce the power of the intermediary by increasing the Pull for the product. The role of the influencer could be drastically reduced by increasing the power of the end-consumer. They can achieve this by establishing a strong brand name for its brands.

Rural segment is not mature enough to appreciate service related offerings. Therefore, strategy should be product related. Customer up gradation strategy should be adopted. It should be Implemented in two parts1. The penetration of the rural segment have to be achieved by offering a basic product well tailored to match the low willingness to pay of the rural consumer. After basic penetration levels have been achieved the rural consumer can be offered a higher range of products with a view to up grading the consumers.

For the newly Acquired Global Companise, Utilization of the learning curve effect and the knowledge base from having functioned in a developing country would be the most crucial factor for growth.

Asian paints can hasten the process of market growth and maturity in these regions by leveraging on its experience and launching newer products at a faster rate.