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Imc on Asian Paints

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INDUSTRY REVIEW:
India is the fastest growing paint market in Asia Pacific.India’s paint industry is estimated to be worth INR 24,500 crore.The following paints are available in the market:
• Acoustic Paints
• Resin paints (Alkyd)
• Dripless Paints
• Latex Paints
• Single Coated Paints
• Primary Rubber based Paints
• Texture oriented Paints
The decorative paints to industrial paints ratio is 70:30 both in value and volume terms. Almost half of the revenues earned by the Indian Paint industry are through enamels. The demand in the paint industry is seasonal to some extent. While the demand dips in the monsoon season, it is the maximum in the festive season.
The key drivers of decorative paints are:
• Robust economic growth leading to higher disposable income.
• Continued growth in real estate sector.
• Change in perception towards painting.
• Launch of affordable houses.
• Shift in demographic profile resulting in increase in number of households.
• Various innovations by market players.
ASIAN PAINTS:
Asian paints was started in 1942 by four entrepreneurs – Chimanlal Choksey, Champaklal Choksey, Suryakant Dani & Arvind Vakil as a partnership firmfor manufacturing paints, in a garage rented for Rs.75 a month in the Kheda District in the state of Gujarat as a collection of small plants. Over the course of 25 years, i.e. in 1967, Asian Paints became a corporate force.
The company has come a long way since its small beginnings in 1942. It was set up as a partnership firm by four friends who were willing to take on the world's biggest, most famous paint companies operating in India at that time. Over the course of 25 years, Asian Paints became a corporate force and India's leading paints company. Driven by its strong consumer-focus and innovative spirit, the company has been the market leader in paints since 1967. 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.
Asian Paints has become India’s largest and Asia’s third largest paint company, with a turnover of Rs. 109.70 billion. Asian Paints operates in 17 countries and has 25 paint manufacturing facilities in the world servicing consumers in over 65 countries. Asian Paints has always been a leader in the paint industry, pushing new concepts in India like Colour
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.
SEGMENTATION:
Asian Paints concentrates on two broad segments of the paint market:
• Decorative paints:
• Industrial Paints:
Decorative paints are further classified as premium, medium and distemper segments. Premium paints were acrylic emulsion used in mostly in metros and big cities.The medium range consisted of enamels, which were popular in smaller cities & towns.Distemper were economy products popular in suburban & rural markets.

POSITIONING:
It all started with the 'Mera Wala' campaign. The tagline became so popular that people were going up to stores and asking for 'mera wala blue' or 'mera wala green', etc. It became a generic term and showed the involvement of people with the campaign. The commercial and the subsequent Asian Paints campaigns marked a beginning of a bond.
The 'Mera Wala' campaign started out in the early nineties and also marked Asian Paints' entry into corporate advertising. Prior to that "Apcolite, which was their flagship product wasn't even advertised that much. The market wasn't that evolved, there were very few competitors. So, Asian Paints could bravely go on-air and say they had every colour and shade possible.
The only exterior paint offering they had was a brand known as Utsav. The communication for this was based on the Indian tradition of painting houses before a major festival such as Diwali or Pongal. The tone at the time was warm and emotional. When they launched their formal exterior paint offering — Ace and Apex — the communication became rational and demonstrative. The idea of giving that much importance to exteriors was something relatively new to Indians.
In the early 2000s, the company began to expand its offerings. From paints and colours, they moved to home decor. And 'Har Ghar Kuch Kehta Hai' was born. This campaign made an emotional connect with consumers, as a lot of energy and passion went into creating a home and they could identify with that.
Even as consumers and the Indian market has evolved, home-decor has remained the benchmark or the emotional plank for every paint company. Asian Paints decided to add a fresh coat and make painting 'fun and convenient' using the online platform.
About the latest brand-campaign, "'Nahi Bhaiya' is now a part of the lingo, the way 'Badhiya Hai' became extremely popular. Asian Paints has gone from the space of being only trustworthy and popular to now being contemporary and modern. It is a brand that has a global outlook but is still "Indian at heart".
SWOT:
Strength:
• Market leaders with 35% + market share.
• Strong in inventory control.
• The pricing strategy is oriented to middle and lower end customers.
• Widest product range in terms of products, shades & pack sizes.
• Comprehensive nationwide coverage of the market.
Weaknesses:
• Seasonal demand, hence, in off seasons , it can cause a lot of cash flow problems.
• Innovation in developing new product is inadequate.
• Weakness on the technology front in industrial paints.
• In industrial paints, Asian Paints has only 15 % of the market share.
Opportunities:
• The automobile industry accounted for 50% of the industrial markets.
• Can increase investment in IT.
• Huge potential in the Rural market.
Threats:
• Competitors have gone in for hi – tech instacolour spot mixing.
• Domination of new foreign companies.
• Competition is catching up fast, hi – tech facilities give abundant choices.

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