asian paints i ltd
TRANSCRIPT
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Presented By,
Group 12
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Company Profile
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Company Products Established Founder Distribution Production
Plant
Asian
Paints (I)
Limited
Decorative
Paints,
Industrial
Coating
segment
1942
C.H.
Choksey,
C.N.
Choksey,
S.C.Dani
Arvind R.
Vakil
Serves in 65
countries
Globally
29 plants in22 countries
interiors
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Paint Industry- Porters Five Force Model
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Supplier Power:Medium
Substitute:Low to Medium
Buyers Power:Medium
Entry Barriers:Medium
Rivalry:Low toMedium
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Product Portfolio
Asian Paints
Paints
DecorativePaints
IndustrialPaints
Chemicals
PentaerythritolPathetic
Anhydride
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BCG Matrix & Ansoff Matrix
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BCG Matrix High Share Low Share
High Growth
Low Growth
Ansoff Matrix
Present Mission
Present Product New Product
1. Research & Development
2. Green Assure3. Your Voice
4.Home Solution
1. Royal Play
2. Metallic3. Cement Paint Primer
New Mission
1. Establish market in Trinidad
2. South Pacific with Tubmans
1. Backward integration with
pigment producer
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Market Share of Recognized Companies
55%17%
17% 11%
Market Share
Asian Paint Nerolac Berger Other
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SWOT Analysis
Brand Name of 68 YearsStrong Inventory ControlOperates in 23 CountriesWide Range
8500+ colorsWide network - 19000+ dealersHighest manufacturing Capacity
Low market share inIndustrial PaintsOld Technology
Increasing Market share inIndustrial PaintsAutomobile Companies hasbiggest share in Industrial Paint
Dominance of fewcountriesIncreasing Competition
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Value ChainPrimary Activities
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InboundLogistics:
RawMaterialsPurchaseorder &arrival ofgoods within72 hours
Operations:
Require 13days toconvert rawmaterialsinto finishedproduct
Outbound
Logistic:Finishedgoodsdelivery toDepot within48 hours oftheir demand
Marketing &Sales:
Sales Person
marketproducts of
Asian Paintsthrough B2B
business,
AdvertisingCampaign
Returneditems
customerfeedback:
Asian Paints(I) Limited
looks forwardfor feedbackfrom dealersand launched
manyproducts asper buyers
requirement
E.g. UtsavEnamel for
rural market
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Value ChainSupport Activities
Firm
Infrastructure
Promotors Contribution in its shareholding pattern make firm cost effective Leadership in market enable company to reduce Fixed Cosst per unit
Human
Resource
Employees are treated as associates of company
Trained Chartered Accountant & highly qualified MBA grads are part of management
team
Technology
Development
One of the best Research & Developement unit of India
Better infrastructure & set up of factory enable maximum utilisation of resources
Procurement
Delivery of finished product within 48 hours of purchase order
Better infrastructure & set up of factory enable maximum utilisation of resources
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Porters Generic Strategy
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Industry wide
Uniqueness perceived by the
customerLow cost position
Delivery of orders should fulfil
within 48 hours from order placed
by customer
Asian paints (I) limited
provide products at low
cost with superior quality.
Particular segment
only
Unique advertising campaign &
product development for rural
market E.g. Utsav Enamel &
Distemper
B2B marketing by industrial
brand PPG ENZA
Texture Paints & metallic
Paints are created from
same pigment used for
industrial paint
Colour World concept
used to reduce inventory &
wastage cost of decorative
paints
STRATEGIC ADVANTAGE
STRA
TEGICT
ARGET
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Sustainable Competitive Advantages
Marketing Strategy
Human Resource Strategy
Manufacturing Factor
Information Technology
Research & Development
Environment & Safety
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Responses to Threats to Sustainability
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Responses to Hold-up Integrating
Building Mutual Dependence
Developing Trust
Responses to Slack Offering Performance
Incentives
Shaping norms
Responses to Substitute
Straddling
Defending
Responses to Imitation
Size Economies
Retaliation
Upgrading
Value Added
Value AddedAppropriate
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Conclusion
Company enjoys sustainable Competitive
Advantages with current business strategy
Companies commitment of delivery of orders is
creating differentiation with competitors
Company maintain high quality product
Straddling strategy provides company advantage
over substitute
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Thank
You11/22/2012 14