A CASE STUDY ON ASIAN PAINTS

 THIS ARTICLE IS A DETAILED CASE STUDY OF ASIAN PAINTS. ITS MARKETING, PROMOTIONAL AND OTHER STRATEGIES.

 

INTRODUCTION

• ASIAN PAINTS pvt Ltd. Is the leading paint manufacturer of INDIA.
•   It is a Private limited company established back in 1942 in Mumbai.
•   It’s head quarter is established Mumbai, India.  

·    

Started by 4 friends in 1942:

·      Champkaklal choksi

·      Chimanlal choksi

·     Suryakant dani

·     Arvind vakil

• Currently it is an Indian Multinational Paint and Coating Manufacturing Company
• Initially it was named as “ASIAN OIL & PAINTS COMPANY”.
• Amit Syngle is the current CEO & MD of ASIAN PAINTS.
•  It is the leading manufacturer, seller, and distributor of paints coatings and related products of home decor.
•  Currently around 7000 employees are working under the company.

FINANCIAL ANALYSIS:

•   Asian place is called the “Investors Darling” as its share prices/stock value had been consistently high from the past few years in the stock market (both BSE & NSE)
•   Last year ASIAN PAINTS was the most expensive stock of the Sensex & was among top 5 expensive stock on NIFTY.     

•  For the quarter ended on 30-09-2020, the company has reported consolidated sales of Rs.5350.23 crore.
• The company has reported a net profit after tax of Rs 840.12 cr in latest quarter
•  The profitability and growth of Asian Paints Ltd.as compared to its peer is as follows:
•   Even if Crude oil price are rising they continue to garner the highest margin in the industry.
•  It’s market cap is of around Rs 213464.67 crore.
• The shareholders of the are depicted below:
•  When the Q3 numbers came out it was their 8^th consecutive quarter with double digit volume growth.
•  They saw a huge market growth coming in from the bottom end of the pyramid i.e. from the rural, tier-3 & tier-4 cities as compared to tier 1 & metro cities.
• Their REVENUE MIX is 50(rural):50(urban).
•  The market of share of Asian Paints is 53%.

 

 

                                   HUMAN RESOURCE ANALYSIS

• The organizational structure of Asian Paints is as follows:

 

           

 

·     ASIAN PAINTS believe that people are its strongest assets, as a company can go only as high as its people aim and feel passionate about.

·     At ASIAN PAINTS human resource systems are designed to create a focused, performance oriented and agile company.

·     A talent pool of over 7000 employees employed across 17 countries brings in a unique blend of mind set and skills.

·     The company hires best talents from some of the best management and technology institutes.

·     Excellent training is provided to develop LEADERSHIP and re- strengthen competencies from within the organization.

 

       

·     Looking for the overall development of the employees and their future.         

·     Providing health insurance, life insurance and loans at cheaper rates to the employee.

·     Instead of the unfavourable situation of covid-19 where many private firms ended up with laying off employees, in a recent interview an official of Asian paints stated “FIRING is not the culture of ASIAN PAINTS”

·     Develop and monitor overall HR strategies, systems tactics and procedures.

·     It keeps on hiring other experts like of painting brushing etc. on temporary basis and giving them autonomy to work.

·     And in order to support the functional level of their business i.e. dealers and painters, they started giving concessions and free sanitization facilities to dealers and health Insurance to painters.

·     Giving autonomy to experts which ultimately fosters innovation, development and expertise.

·     Here is how the CEO of ASIAN PAINTS along with the board has so well managed to raise the salaries of their employees to support them in  the current COVID situation.

·     It clearly sets an benchmark for Leadership and shows how much they are concern the welfare of their Human resource in long run.

 

 

MARKETING STRATEGIES (4 P’s)

 

 

 PRODUCTS

 

 

*PRODUCT PORTFOLIO

·      ASIAN PAINTS produces a wide range of products which have 1750+ shades.

·      Their products have targeted to different sections of the society.

·      The cost of product varies according to different income levels of the consumers.

·      Above you can see product from each product line.

·      They have a variety of choices for each category and sub-categories(shades) for each segment Decorative, Industrial & Automotive.

·      All the products are available in different sizes accroding to the need of the coustomers, the size chart is shown below.

 

 

·      All the products come under 3-6 year manufacturer’s warranty (varies according to the product). *Terms & conditions applied

·      Some of the key features of the product are:

ü Anti-Bacterial

ü Anti-Fungal

ü Child friendly

ü ISO certified

ü Highly washable                                                                           

ü Teflon surface protection

ü Stain-guard layered

 

   PRICING

·     ASIAN PAINTS has adopted VALUE BASED pricing strategy.

·     It means they charge high for the products with high quality, multiple benefits/features and low for the products with low comparatively low quality, features/benefits.

·     ASIAN PAINTS has categorised the market roughly into 3 different Target groups on the basis of their Income level or Earning, which are as follows:-

·     B2C category : Lower class, Middle class, Upper class.

·     B2B category : Small industries, Medium industries, Large industries

·     And for each target group or segment it has a range of products.

 

Low range product features

Mid range features 

Premium range features 

NP : *All price ranges mentioned above are subject to variation. It’s a rough estimate.

·     Hence for the different market segment along with different product categories they also provide painting service according to affordability of the customers.

·     This is how the manages to have a large Market Cap by targeting each segment.

·     So they provide:

·     Classic, Gold & Platinum painting services.

·     The benefits of those are shown below.

 

PLACING

·     ASIAN PAINTS has harnessed the power or state-of-the-art supply chain system using cutting edge technology to integrate all its plants, regional distribution centres, outside processing centres and branches in India.

·     The supply chain works through a wide spectrum of functions right from material planning for procurement to primary distribution.

·     The company invest heavily on Dealers & IT services to improve the supply chain management.

·     It has an extensive network of 4 manufacturing units, 6 regional distribution centres, 55 depots, 15000 dealers & about 90000 sub-dealers.

·     Exclusive 3000 asian paints store.

·     Went slow on urban areas and concentrated on semi urban and rural areas.

·     Hence it has a nationwide marketing & distribution channel.

 

 

PROMOTION

The promotion strategy of Asian Paints is bringing a lot of positive output to the company. It’s using various techniques for promoting it’s products such as:

     i.Advertising                 

    ii. Social media engagement

    iii. Online support

    iv. Events & prize distribution

      v.  Exclusive signature stores

Let us have an example of each of the following categories of Promotion:

 

1.  ADVERTISING

·     For creating a brand image in the mind of the consumers Advertising is of major importance.

·     It may be print media advertising like pamphlets, banners or television advertising like ads.

·     Some of Taglines of famous Tv Ads. Are:

·     “HAR GHAR KUCH KEHTA HAI”

·     “MERA WALA PINK”

·     “LAMINATION WALA PAINT”

·     “KAM KHARCHA SALO SAAL CHARCHA”

·     “SIRF DIKHTA MEHENGA HAI”

·     Also they use public figures, famous actors & other high profile brand ambassadors like Saif Ali Khan, Deepika Padukone, Ranveer Kapoor.

 

2. SOCIAL MEDIA ENGAGEMENT

·     Now a days almost all of us are active on different Social media platforms like Facebook, Instagram, Twitter and many more.

·      And all the companies see this as an opportunity to promote their products in order to reach wider set of audience directly without incurring so much of the advertising cost.

·     And one of such initiative to attract customers is “ASIAN PAINTS COLOUR KILARI” contest on Facebook where the winners can win a free makeover of their home.

·     This is one of their marketing strategy which plays with the mind of consumers and is specially launched during Holi, Deewali ,Dussehra etc.

 

 

1.ONLINE SUPPORT

·     ASIAN PAINTS on its official website www.asianpaint.com provides free customer support & access to all information including company policies.

·     Its online support base is helping the company in lot many ways, providing all the necessary information to the urban customers specially.

·     There are many free online support like colour consultancy, Paint budget calculator, Store locator, Paint selector, Colour Academy.

·     It also provides many lucrative and assuring offers that helps the company to stay at the top of the mind of the customers, one such offer is this money-back guarantee.

ANALYZING:  

·     It’s also an unique way of promotion and all these consumer friendly intiatives helps the company to play well in the front of REALATIONSHIP MARKETING.

·     As it creates a sense of belongingness towards the company, as the company is extending its helping hand to the customers Free Of Cost.

 

2.EXCLUSIVE SIGNATURE STORES

·    It has redefined the process of purchasing paints by using the latest state-of-art technology.

·    Provides one-on-one interaction with the in house colour consultant.

·    Providing colour prescriptions, touch & feel various textures and designs by hand(live sample

   

3. EVENTS & PRIZE DISTIBUTION

·    This is very much a part of social activity that the company does to stay in the eyes and attention of the consumers.

·    Like durga puja Shaarda samman Award.

 

   POLICIES

·     Asian Paints will offer the finest products in its line of businesses and provide the best possible services to its customers. 

•  They provide products & services that meet stated standard on time, every time.
• The company continuously improves its policies & processes to understand its stakeholder’s needs & preferences.
•   Keeping in mind the current scenario the company has come up with Asian Paint Safe Painting service.
• They have panel of trained painters and contractors who shall deal with us and they don’t give their contracts as such.

• They do their work with mechanised painting tools with notch precision.
• And due to COVID-19 they have come up with :
• Stringent safety protocols & Site sanitization.
•  Use of mask, sanitizers, ppe kits.
• Checking temperature of the team.
•  Maintaining social distancing & use of Arogya setu app is compulsory
•  Strict but reasonable payment measures.
• They have describe the terms & conditions, declaimer of warranties and limitation of liabilities.
•  Also information is given about the legal terms, copyright& trademark notices and privacy policies.

 

 

 

        IMPLICATIONS

·    Due to it’s Consumer Friendly Policies Asian Paints has successfully been in the top of the mind of people & it has become their very first choice.

·    It has always been following the Wealth Maximization approach, hence value of it’s stakeholders has constantly increased overtime and it also attracted many investors over time.

·    No. 1 Paint Company of India

·    It has over $ 2 million Group Revenue.

·    3 times nearest competitor in India.

·    Listed in WORLD’S top 10 Paint & coating companies.

·    Part of top 30 BSE stocks.

·    Part of NSE NIFTY 50

·    2^nd largest Paint Company in India.

·    11^th largest coating company in the world.

·    Operates in over 19 countries.

·    26 main manufacturing plants.

·    49 year of market Leadership in India.

·    It has been FORBES Asia’s FAB 50 companies, Four times in a row.

·    It has been listed into the FORTUNE 500 companies.

·    Servicing consumers in over countries over 65 countries.

These are due to the successful implications of all it’s :

·    Consumer, market & product policies

·    Dynamic marketing strategy

·     Innovative policies

·    Healthy HR policies…

·    CSR policies