Professional Documents
Culture Documents
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: 21
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Hitesh Patel
Avinash Patil Vivek Patil Akshay Polekar Yusuf Shaikh Shyam Yadav Amol Bhopte
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Paint industry
Paint industry estimated at INR 135bn. Unorganized sector accounts to 35% of paint market Volume growth estimated at 15%. Indias share in the world paint market is 1.6%.
APIL KNPL Berger Paints ICI (Akzo Noble) Jenson & Nicholson Others
KNPL
Provide paint shop management services to sell solutions rather than product
BPIL
southern markets in India
Asian Paints
Pre treatment chemicals, Coil & Powder coating Automotive paints High performance coating
Can coating
GNP Kansai Paints Nihon Tokushu Auto & Industrial coating Auto coating
Berger
Herberts
Valspar Corp. Teodur Tikkurila
Auto coating
Heavy duty coating Powder coating Decorative
J&N
Herberts
Chugoku Becker Salphi W.R.Grace ICI
Auto refinish
Marine Coil coating Marine coating Can Coating & metal packaging Auto refinish
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37
13.8%
Total Assets
Akzo Nobel
Shalimar Paints Jenson Nicholson
844.80
92.65 2.00
3,941.86
175.37 7.49
2,231.98
530.18 59.25
218.83
11.02 -5.84
1,105.30
163.12 -230.94
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Company Profile
Started in 1942 by four entrepreneurs: ASIAN OIL & PAINTS COMPANY.
In 2002. AP was a market leader of Indian Decorative Paints . Asian Paints along with its subsidiaries have operations in 17 countries across the world with 23 plants Asian Paints has two alliances, one with PPG Industries USA & other with Protech Chemicals, Canada. Offer the widest range of paints among all the paint companies in India, in terms of products shades as well as pack sizes. Asian paints have promoted 5 successful overseas subsidiaries.
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Achievements/ recognition:
Asian Paints is the 10th largest decorative paint company in the world
Awarded the 'Sword of Honour' by the British Safety Council for all the paint plants in India. This award is considered as the pinnacle of achievement in safety across the world.
Forbes Global magazine, USA ranked Asian Paints amongst the 200 'Best Small Companies of the world' in 2002 and 2003 and amongst the top 200 'Under a Billion Firms' of Asia in 2005.
Ranked 24th amongst the top paint companies in the world by Coatings World - Top Companies Report 2006.
The Asset - one of Asia's leading financial magazine ranked Asian Paints amongst the leading Indian companies in Corporate Governance in 2002 and 2005.
Received the Ernst & Young 'Entrepreneur of the Year - Manufacturing' award in 2003.
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
DEVELOP
NEW
MARKET OPPORTUNITIES
EXISTING
Distinctive Competencies
PROMOTION STRATEGY Campaign, sales promotion, personal selling, direct marketing and public relation. Mera Walla Blue har ghar kuch kehta hia Colour world store - Jjahan Milen world ke saare colour Home Solutions Sates promotion Giving discount to the dealer Specialty advertising Trade show Consumer preference
DISTRIBUTION STRATEGY Offer the widest range of products, shades and packs 13000 dealers network of over 47 depots.
RESEARCH Asian paints, the largest paint company of India have a very strong research methodology. (i) Market Research (ii) Research & Development of the products according to customers need & choices.
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Strengths Financial Leverage (Asian Paints) Financial leverage allows Asian Paints to use their balance sheet to expand their business and... Technology (Asian Paints) Superior technology allows Asian Paints to better meet the needs of their customers in ways that... Customer Loyalty (Asian Paints) When given a choice, customers are loyal to Asian Paints. Instead of targeting all customers, Asian... Brand Name (Asian Paints) A strong brand name is a major strength of Asian Paints. This gives Asian Paints the ability to...
Weaknesses
High Staff Turnover (Asian Paints) High staff turnover can hurt Asian Paint's ability to compete, because replacing valuable staff...
Weak R&D (Asian Paints) Weak R D can slow Asian Paint's growth as competitors out-innovate Asian Paints Lack of Scale (Asian Paints) A lack of scale means Asian Paint's cost per unit of output is very high. Increasing volume,... Cost Structure (Asian Paints) A weak cost structure means Asian Paint's costs are high in comparison to their competitor
Opportunities new staff (Asian paints) New Technology (Asian Paints) New technology helps Asian Paints to better meet their customers needs with new and improved... New Products (Asian Paints) New products can help Asian Paints to expand their business and diversity their customer base New Markets (Asian Paints) New markets allow Asian Paints to expand their business and diversify their portfolio of products...
Threats Bad Economy (Asian Paints) A bad economy can hurt Asian Paint's business by decreasing the number of potential customer Volatile Currencies (Asian Paints) Volatile currencies make Asian Paint's investments difficult, because costs and revenues change.. Intense Competition (Asian Paints) Intense completion can lower Asian Paint's profits, because competitors can entice consumers away. Substitute Products (Asian Paints) The availability of substitute products hurts Asian Paint's ability to raise prices 10
Large price differential between the company distemper brand Tractor (Price Rs. 45 ) and the unorganized sectors products (Rs.3-25 ). Danger of eroding Tractors equity if a low price variant is introduced. Threat of substitution of the higher period Tractor brand by the cheaper one by the painter, which had a poorer finish resulting in customer dissatisfaction. Introduction of global players like AkzoNoble, Jotun Paints, Nippon, BASF, with quality products, policies and money power
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Segmentation
Base Decorative coating Premium Medium
STDP
Industrial coating Popular High Automotive coat Finished coating performance Powder coating Quality coating coating
Differentiation
TARGETING :
Product - Positioning
Tire 1 strategic solution seekers Tier 2 value or brand sensitive Tier 3 consumer are price sensitive Tier-4 small mfg & local companies Tier-5 special attention as hey are highly innovative in nature
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ANSHOFF MATRIX
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Substitutes
1.White cement 2.White wash 3. Brick & stone Structure
BUYERS 1. Decorative: Fragmented Market. LOW POWER 2. Industrial: Low switching costs. Corporate have HIGH POWER
Existing Rivals
1. Berger 2. GN 3. ICI 4. JNPL
Suppliers
1.Tio2 Imported, 2.Few suppliers, 3.Availability of Substitutes of RM Low HIGH BARGAINING POWER
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Place / Distribution
Company salesman linked up with dealers usually grocers, in villages and small towns, who in turn would be serviced by the companys established 17000 strong dealer networks. Undertook innovative promotional campaigns
The Company funded its dealers transportation overheads incurred in reaching out to the new 80,000 odd outlets.
The Ultimate
Utsav has been a success in the markets where it has been launched. It has overcome the main hurdle of dealer and consumer resistance.
The brand has gained market share at the expense of local packed distemper brands. Margins for the product are low about 2-3%, while the higher end brands fetch 20%.
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