Asian Paints

Vision of Asian Paints

“Asian Paints aims to become one of the top five Decorative coatings companies world-wide by leveraging its expertise in the leveraging its expertise in the higher growth emerging marketshigher growth emerging markets.. Simultaneously, the company intends to build long term value in the Industrial coatings business through alliances with established global partners.”

Case Facts :

• The Indian Paints industry Rs. 6600 crores.

• Asian Paints –Market Leader( 44% Share)

• Wood Finishes market Rs. 300 crores 1. Solvent-based and Water-based 2. Matt and Gloss 3. Spray-on and Brushable

Types of Wood Finishes and their Market Share in India

Wood Finish Market in India

10%

30%

12%

48%

PU

Melamine

Alkyd

Lacquers &SpecialityProducts

Water Based PU Wood Finishes

Advantages :

• Environmentally safe

• Brushable

• Extra training not essential

• No odour (associated with Solvent )

• Not hazardous to health• Does not yellow over time

Disadvantages :

• Not as durable as Solvent

• More Expensive

• Less protection from moisture

Current and Potential Competition

• Current Competition:

Sheenlac ,Pidilite , Sirca , Linea Coats, ICA, MRF Tyres

• Potential Competition:

Goodlass Nerolac, ICI Paints, Berger Paints

Pricing:Type of Wood Finish Cost to the customer

(Labour+Material)

1) French polish Rs. 10 per square feet

2) Alkyd Rs. 15 per square feet

3) Melamine Rs. 30-40 per square feet

4) PU (solvent based) Rs. 80-120 per square feet

5) PU (water based) Rs. 120-150 per square feet

6) Polyester Rs. 200 per square feet

SWOT Analysis

Strengths

• Brand Image of Asian Paints

• Market Leadership (44 %)

• Distribution Network

• Inherent advantages of water based wood finishes

(environment friendly etc.)

Weaknesses

• Low Awareness about wood finishes.

• Inherent weaknesses of the product (less protection from moisture etc.)

Opportunities

• Boom in Construction Sector, especially international styles of living

• Consumers becoming conscious in terms of aesthetics and lifestyle.

Threats

• Non-wood materials like plastic, cane, acrylic, wrought iron etc. used for furniture.

• Materials like laminates being used to coat wooden surfaces.

INFORMATIVE( Thinker )

HABIT FORMATION(Doer)

SATISFACTION(Reactor)

AFFECTIVE(Feeler )

Consumer Survey

Consumer Survey Objectives

• How Consumers perceive the product on the involvement and thinking/feeling dimensions ?

• Who is the influencer / decider ?

• Consumers perception of Factors like Durability , Safety , Health, Environment and the price they are willing to pay for it.

Survey Details

• Sample size: 238

• Conducted in Mumbai, Delhi, Lucknow and Bangalore

• Questionnaire Method

• Convenience Sampling

• Sample profile : SECs A &B

• Statistical tool used : SPSS (v 11.5)

Findings

Decision-maker regarding brand

Decision-making of the brand of wood-finish

Decision-making of the brand of wood-finish

Others

Friends suggestion

Cheapest

Carpenter /polisher

Builder/Architect

Family

Pe

rce

nt

70

60

50

40

30

20

10

0

Ranking of the parameters: Cost of the wood finish

Ranking of the parameters: Cost of the wood finish

Very Important432Least Important

Pe

rce

nt

60

50

40

30

20

10

0

Importance of cost of wood finish

Importance of Brand

Brand of the wood-finish

Brand of the wood-finish

Very Important432Least Important

Pe

rce

nt

50

40

30

20

10

0

Preference of Finish

Matt vs Gloss

Matt vs Gloss

Gloss Finishes432Matt Finishes

Pe

rce

nt

50

40

30

20

10

0

Importance of durability

Durability

Durability

Very Important432

Pe

rce

nt

60

50

40

30

20

10

0

Importance of Ease of Application

Ease of application

Ease of application

432Least Important

Pe

rce

nt

50

40

30

20

10

0

Importance of Safety, Health and Environment (SHE).

SHE

SHE

432Least Important

Pe

rce

nt

50

40

30

20

10

0

Awareness of water-based PU

Awareness of water-based

Awareness of water-based

NoYes

Pe

rce

nt

120

100

80

60

40

20

0

Analysis of Consumer Survey

• Influencers: Carpenter, Polisher, Contractor

• Low frequency of painting / recoating the house

• Low awareness about wood finishes

• Very low awareness for Water-based wood finishes

Analysis (Contd.)

• Awareness about real impact of cost not clear.

• Matt finish preferred over gloss finish.

• Majority have concerns over safety , health & environment but are ambivalent on the investment they are willing to make for the same.

Note: Derived out of the open ended question in the questionnaire

Carpenters/ Polishers/ Contractors Interviews

( Sample Size : 3232

Location : Mumbai )

Water based wood finish …iske baare mein nahi suna..

Aaj Kal koi scheme nahin hai

hummare liye

Aaj Kal Matt finish ka hi zamana hai … Gloss finish

chalta hai …lekin matt finish usse zyada chalta

hai

Customer ko nahi maloom…sirf kareegar ko

pataa hota hai…

Finish hi sabse badiya hai…polish to low society ke log

karaate hai

Kai Baar Polish karte hue saans ki takleef ho jaati

hai..

Findings

• Finishes were considered more durable when compared with polish.

• Matt effect was better with finish than with polish.

• Matt finish was preferred over gloss by customers. Both SEC A and SEC B preferred matt finish.

Contd.

• General opinion was that Customer knowledge about product category was extremely low.

• There was a general view that solvent based wood finish was not safe and lead to allergy etc.

• Most respondents had no knowledge of water-based PU wood finish.

INFORMATIVE( Thinker )

HABIT FORMATION(Doer)

SATISFACTION(Reactor)

AFFECTIVE(Feeler )

ASIAN PAINT WOOD FINISHES

Target Segments

CarpentersPolishers

ContractorsInterior Decorators

End ConsumerSECs A & B

‘Lifestyle-oriented’‘Quality-conscious’

Positioning

“A premium easy to use wood finish which offers unmatched quality and is in harmony with nature .”

Tag Line

‘‘In harmony with nature’’

Brand Name :

Asian Paints

Nature’s Touch A Premium Brushable Water Based PU Wood

FinishRationale: The product is environment friendly and brings

out the natural beauty of the wood .

Pricing & Product

Pricing : Pricing should be at same level as that of

solvent based PU wood finish . Rationale : • Need to create awareness • Initiate trials • Maybe at later stage of PLC the price can

be revised upwards as volumes pick up.

NATURE’STOUCH

Product :

Benefits regarding durability must be equivalent to that of solvent based wood finish .

Communication Strategy

Objectives

B2B B2C

B2B communication strategy • To generate product awareness.• Give an incentive to influencer to push/suggest product.• To initiate trial.

B2C communication strategy•To increase knowledge about category.•To involve consumers in the purchase process.•To convert product from low involvement to high involvement.

Media Selection for Advertising

• Magazines Special interest magazines like Inside

Outside, Design and Interior as well as inflight magazines.

• Direct Mail Mailers to customer database already

available with the company.

Contd.

• Internet– Website: Separate link on the company

website.– Banners: On related websites like

www.mumbaiconstructions.com• Outdoor

– POP displays. – Posters and sign-boards outside furniture

markets.

http://www.mumbaiconstructions.com/

Promotion Strategy

• Glow-signs and other promotional material at large hardware stores.

• Conventions/Workshops for Architects and Interior Decorators

• Workshop for carpenters– To build awareness and product

demonstration and offer incentives to promote usage

Tie Ups

• Tie-up with Builders: Hiranandanis, Ansals, DLF- to promote product

usage in their fully furnished flats on sale. • Tie-up with Corporates and Hotels: To initiate talks for getting contracts for revamp

and maintenance of their office furniture.

• Tie-Up with major furniture manufacturers/retailers to use the product

PR Activities

• Press conference: journalists to be invited for an information and question-answer session. Press releases and press kits to be issued.

• Press Publicity : articles in the media about its eco friendliness , no negative effects on health and safety of users and applicators

Creative Strategy

The role of Creative Strategy would be to:

• Provide information.

• Establish the positioning. • Bring about change in consumer

behavior.

The Creative Brief• Objective: Build Brand Awareness

• Theme: Nature’s Touch is the only Environment-friendly PU Wood Finish

available.

• Support: No Odour; Non hazardous; Does not emanate fumes; Does not yellow over time; Non oil-based.

Media Budget

PR activities

Magazines

POP

Misc.

10 lacs

20 lacs

10 lacs

5 lacs

Alternative Distribution Channels

• Exclusive “Asian Paints-Furniture Clinics.”

• One furniture consultant per Clinic.

• Provision of labor, with Branded uniform, to provide doorstep service.

• ‘Furniture Corners’ in furniture retail outlets.

• Organized retailers like Shoprite, Big Bazaar, Lifestyle etc.

• Direct selling through the existing

Asian Paints helpline, Home Solutions.

• Large Building Contractors who provide furnished flats

Contd..

Dealers: - Sehgal Enterprises(2508116), Jain Iron Store(220488);-Jain Trading Co(2216753), Jainsons Traders(203104), Goyal Paints & H.W(2210072), Garg Paint & H.W Store(2221327), Garg Paint & H.W Store(2221327), Goyal Iron Store(2216001), N.K.Traders(2353144), Delhi Paint And Hardware Store(2214446), Jainson Paint & Hw Store(2221831), Punjab Building Store(2211843)

Has your wood got Nature’s Touch ?•Environmentally safe.

•Brushable and easy to apply.

•Provides durability.

•Gives the furniture an exquisite and

elegant look i.e the look it deserves.

•Doesn’t yellow over time.

•Doesn’t emit harmful odour.

For dealership and more details:

Call on Toll free no.: 1 - 600 - 22- 5678

Website: http://www.asianpaints.com

Premium Brushable Water Based PU Wood Finish

Call Asian Paints Home Solutions at 1 - 600 - 22- 5678 Premium Water Based PU

Wood Finish

Give your furniture Nature’s Touch…

Premium Water Based PU Wood Finish

Has your wood got the Nature’s Touch……………..For dealership and more detail:Call on Toll free no.: 1 - 600 - 22- 5678 Website:http://www.asianpaints.com

Premium Water Based PU Wood Finish

Has your wood got the Nature’s Touch……………..For dealership and more detail:

Call on Toll free no.: 1 - 600 - 22- 5678 Website:http://www.asianpaints.com

THANK YOU

Aparajita Bahadur

Mayank Dwivedi

Rajat Mittal

Asian Paints

Documents

Transcript of Asian Paints