asian paints marketing strategy

8/3/2019 Asian Paints Marketing Strategy

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MBA 631: MARKETING MANAGEMENT

MARKETING PLAN

FOR

Submitted by:

Alok Jain

11125004


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1. Executive Summary

This report aims to present a marketing plan for Asian Paints. The present marketing situation has been

analyzed in the beginning, which is being followed by the objectives that are to be achieved by the

company. The report then discusses the various segments that are to be targeted by the marketing

strategy and finally the marketing strategy itself.

2. Current market situation:

2.1 Products: The companys offerings include the following:

Decorative paints: It contributes to the majority of total business. There are four majorsegments in this category, which are Interior wall paints, Exterior wall paints, Wood surface

paints, and Metals surface paints.

Industrial paints: Industrial coatings have a moderate growth rate compared to the decorativecoating, led by the growth in automotive original equipment sector, powder coatings &

protective coatings. Industrial coatings are classified into automotive & non-automotive

coatings are classified into automotive & non-automotive coatings. While Asian paints Industrial

coating Ltd. (APICL) services the powder coating segment, Asian paints Ltd. caters to be

remaining non-auto industrial coatings segments.

Automotive paints: The actual look and feel of a vehicle goes through a sea of change over time.The paint on a vehicle loses gloss, is subjected to a lot of wear and tear and hence starts

deteriorating. Asian Paints is not having a very good market share in this segment.

Chemicals: Asian paints have chemical business consisting of Pthalic Axhydride &pentaerythritol manufactured at Ankleswar, Gujrat & Cuddalore, Tamilnadu.

2.2 Strengths:

Market leader in decorative paints with a majority market share Strong distribution network with around 19,000 dealers Pricing strategy is oriented to middle and lower end consumers Widest product range in terms of products, shades and pack size (around 8500 colours) Brand name with 68 years of experience Comprehensive nationwide coverage of the market Strong financials enables the company to invest in marketing and brand recall activites


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2.3 Weakness:

Seasonal demand and hence in off seasons it can lead to cash flow problems Innovation in developing new product is inadequate Weakness on the technology front in industrial paints In industrial paints, it has a low market share

2.4 Market Share

The Indian paint industry comprises of the organized and unorganized sector. The organized sector

constitutes 54% of total volume in terms of sales and 65% in terms of revenue.

The market leaders in the organized paint industry in India are Asian Paints with over 40% market share,

KansaiNerolac (20%), Berger Paints (19%) and AkzoNobel (12%).

In the decorative paints segment, the market share of Asian paints is an astounding 47%. The company

expects to tap in the future growth in this sector mainly due to the boom in real estate sector.

3. Objectives

Corporate 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.

The overall objective is to increase the sales in the urban market and have a deeper access to the rural

market with low price products targeting customers of all income levels. Also it aims to retain the top

position in the Indian paint market.

4. Target market

Asian Paints follows an important marketing strategy in the domain of Customer segmentation. Asian

paints has segmented its products mainly in three sectors:

Decorative Industrial Automotive


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Their customers are all also segmented as rural and urban customers. Further, based on the usage of

these products, the urban customers can be classified as follows:

Customers who are value or brand sensitive Customers who are innovative in nature Customers who are also price sensitive.

5. Marketing Strategy

5.1 Entry into Service market

In addition to product, they should move towards the service industry catering to the rural segment.

Service industry in paint domain has huge potential and is yet to be captured. It can prove to be anexcellent opportunity considering the brand name and image of Asian Paints. By providing services, they

would also have an opportunity to influence the decision of the customer. The services may range from

painting the home or office to complete interior decoration.

5.2 Increasing market share in Industrial and automotive sector

Presently, Asian paints major share lies in the decorative paint, so a downfall in that market will lead

the company in trouble. To avoid the same, the company should take greater steps in the industrial and

automotive paints sector as well.

5.3 Focus on constant innovation

For an organization like Asian paints to create a strong future, it has to breed innovation continuously.

This strategy of innovative will in fact help any organization to fulfill its commitment and integrity in

dealing with internal and external customers. They can probably give greater autonomy to managers in

their reasonability. This way the organization also develops high tolerance for failures and encourages

risk taking.

5.4 Tapping the Rural market

The penetration of the rural segment has to be achieved by offering a basic product well-tailored to

match the low willingness to pay. Repositioning of existing brands in rural markets is also what isrequired.

5.5 Others

Remind the customer to repaint, or upgrade

Introduction of water based paints.

Broadening of distribution network


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asian paints marketing strategy

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