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COMPANYS PROFILE
Asian Paints is India's largest paint company and ranks among the top ten decorative coatings companies in the world today, with a turnover of Rs.30.2 billion (USD 680 million). It was formed as a partnership firm by four friends in 1942. The company has an enviable reputation in the corporate world for professionalism, fast track growth, and building shareholder equity. Driven by its strong consumer-focus and innovative spirit, the company has been the market leader in paints since 1968. Today it is double the size of any other paint company in India. Asian Paints operates in five regions across the world viz. South Asia, South East Asia, South Pacific, Middle East and Caribbean region through the four corporate brands viz. Asian Paints, Berger International, SCIB Paints and Apco Coatings. Asian Paints has 30 paint manufacturing facilities in 22 countries with a combined total manufacturing capacity of around 370 million liters per annum. The company operates in 10 markets through Berger International Limited and in five markets in the South Pacific through Apco Coatings. In Australia it also owns the Pacific Paints brand, in Fiji & Samoa Islands it also operates through Taubmans, and in 6 countries through Asian Paints. A talent pool of over 4700 employees employed across twenty-three countries brings in a unique blend of mindsets and skills. The Group's principal activities are to manufacture and market paints.

PRODUCT MIX

Asian Paints produces a wide range of paints for decorative and industrial use. It also manufactures intermediate products like Phthalic Anhydride and Pentaerythritol. The chemicals business which contributes 5% to overall sales of the group is managed for value. APIL's product range includes Wall paints, Metal paints, Wood Finishes, Primers and others. Apart from offering the customers a wide range of decorative and industrial paints, it even custom-creates products to meet specific needs.

Following are few of the famous products of Asian Paints.

Apex Weatherproof Exterior Emulsion is a water-based 100% acrylic, exterior wall finish. A high performance, long-lasting exterior paint specially formulated to withstand extreme tropical conditions of high rainfall, humidity and heat, Apex provides excellent resistance against the growth of algae and fungi on the walls. It offers excellent protection against alkali and UV degradation too. Premium Emulsion provides a rich and matt finish to interior walls due to its super-acrylic quality. Its composition imparts excellent durability to the paint film, giving your walls that just painted. It washable and most stains can be removed easily by sponging with a mild soap solution. The paint film is also fungus and mildew resistant. Apcolite Premium Satin Enamel is a solvent-based finish. Low gloss enamel with the gentle, soothing sheen of Satin fabric, it is just as tough and durable as premium high gloss enamels and gives a long lasting washable finish. It can be used on interior and exterior surfaces. Utsav Royal Tractor emulsion

MARKETS
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The countries that Asian Paints has presence are as follows: South Asia Bangladesh, Nepal, India and Sri Lanka. South East Asia China, Malaysia, Myanmar, Singapore and Thailand. Africa Egypt Caribbean Islands Barbados, Jamaica, Trinidad and Tobago. Middle East Bahrain, Dubai and Oman. South Pacific Australia, Fiji, Solomon Islands, Tonga, Vanuatu and Samoa Islands.

SALES REVENUE IN THE YEAR 2005

H1-FY 2005
Caribbea n 25.0% Middle East 34.9%

South Pacific 13.4% S.E. Asia 15.6% South Asia 11.1%

RAW MATERIAL AND SOURCES OF AVAIBILITY

The paint industry is raw material intensive. Paint involves the mixing of various raw materials in various proportions. The raw materials are of a wide variety. On an average, raw materials account for 60% of net sales (industry average). In case of small-scale units it forms up to 70% of the net sales. Raw materials are divided into three major groups, namely, pigments (titanium dioxide, zinc oxide etc.), solvents (mineral turpentine) and resins and additives. Pigments are finely ground solids of different shades to give colour, durability, consistency and other properties to paint. It is also one of the major raw materials, accounting for one-third of the total raw materials cost. Amongst the vital pigments used in the process of paint manufacture is Titanium dioxide (TiO2) and the industry consumes around 60% of TiO2. This pigment is available in two grades: anatase and rutile, of which anatase is exclusively used in interiors while rutile is preferred in exteriors. Solvents are volatile organic compounds (VOC) used to dissolve, suspend or change the physical properties of other materials. They are generally used to bring down the viscosity of paints to the desired level, which also reduces the cost of paint formation. They constitute 70%-75% of the paint liquid and ultimate escapes into the atmosphere when the fluid dries. Solvents such as ethylene glycols and alcohols are finding wider use as cosolvents in new water-borne formulations. Binders are generally oils, resins and plasticisers that give paints its protective property. Most resin manufacturers make alkyds, polyesters, emulsion polymers, epoxy resins, amino resins, powder coating resins etc. Additives are added in small proportion to the paint to improve its performance characteristics in various ways. Skinning inhibitors, fungicides, wetting agents, driers are included in this category.

Around 600 raw materials are required by the industry and all raw materials are not directly related to crude oil. The basket of raw materials
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is quite exhaustive. Raw materials, which constitutes around 60 per cent of total cost for the paints industry is an important factor for maintaining operating margins. The industry imports around 25 per cent of raw materials. But the most important raw material is titanium dioxide, which accounts for around 25-30 per cent of raw material costs.

LOGISTICS
As demand in India is dispersed and spread over a wide geographical area, Asian Paints strategy to focus on building an extensive distribution
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(nearly 15,000 retail outlets) and logistics management network has paid it rich dividends. As a result of its wider reach and better logistics management, it has been able to market brands aggressively, thereby outperforming the industry year after year In this rapidly changing Business Environment, what gives companies like Asian Paints the Competitive Advantage...The answer is LOGISTICS. We can actually compare logistics to the most precious element on this planet WATER. Its the ability of water to reach and occupy all available space and quench thirst, similarly its the ability of logistics to reach wherever the consumer demand exists. Logistics is a process of planning, implementing and controlling efficient and cost-effective flow of materials and information from point of origin to point of consumption. Hence, Logistics is nothing but the process of strategically managing the movement and storage of materials, parts, and finished inventory from suppliers, between enterprise facilities and customers. Typically 10-15% of a companies turnover is spent on logistics, depending on the nature of product and the distribution pattern adopted. Having exhausted all options in the areas of product differentiation, pricing, promotional strategies and advertising warfare, corporations are increasingly turning to logistics. Hence efficient management of logistics is critical for the profitability of any company. To gain a competitive advantage over its competitors, a company needs to be flexible and adaptable to the market demand. In this changing scenario the following are the needs of the hour: The company needs to reach the customer at the right time ensuring the availability of the product on shop shelves This calls for reduction in lead time, operating costs and inventory levels.

And Improved asset productivity to leverage core competency Modern business concepts advocate "let experts do the job". A paradigm shift could be towards partnering with the professional in the field, which
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will positively impact the bottom-line. This can definitely be achieved through Outsourcing. Outsourcing logistics is the new weapon in the corporate arsenal. It is an easy access to World-Class Logistics capabilities and better control over the distribution system through an external agency offering specified services, which could be constantly improved upon.

SOME LOGISTIC FUNCTION OF ASIAN PAINTS Order processing:

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Most paint companies are hit by the fact that they do not make the raw materials themselves. For example, phthalic anhydride (PAN) is manufactured from orthoxylene and which goes into the production of paints along with titanium dioxide. Asian Paints is the only paint company that manufactures PAN. The other paint companies have to import their stock. Since PAN prices generally outpace international orthoxylene prices by almost 50% paint companies end up paying a fortune when prices rise. In such a situation Asian Paints benefits by selling PAN in the open market. Transportation Management The company has outsource its transport management to Dynamic Logistic Pvt. Ltd. Inventory Management The company prefers to maintain low inventory levels due to having large no. of suppliers at bay. The company has 350 raw material and intermediate and goods suppliers. Warehousing The company has 72 warehouses scattered all over the India. Packaging The company has 140 packing material vendors. Acquisition The acquisition gives Asian Paints a foothold in an emerging market and also opens the possibility of exporting to neighbouring countries. Asian Paints has already made its presence felt in the emerging markets after its acquisitions in Singapore (Berger International) and Egypt (SCIB Chemicals SAE)..

GARPHICALY SHOWN :
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NET SALES , OPERATION AND WORKING OF A COMPANY

Results of operation: Net sales & operating income of stand alone entity increased to Rs.24333.7million from 20375 million showing a growth of 19.42% in the year 2005-2006 (March).This is driven mainly on account of good paint volume sales growth of 13.8% & price revision effected the year.

MARKETING AND SALES

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Product: Asian Paints Colour World is the brand name for the one-stop colour shop of Asian Paints, which are unique paint shops where shades are generated with the help of a computer with software to choose and select 1,511 shade combinations, designed to reach consumers in a direct `dil se' style.

Advertising Objective: Position Asian Paints Colour World as the one stop paint shop with all the colours one could want. The advertising should create enough interest in potential consumers to ensure that they come to the Asian Paints Colour World outlet or at least call the Asian Paints helpline.

Target Customers Demographics Region: India, urban population Occupation: Service/working professional/self-employed Gender: Male Religion: Insignificant Social class: Upper Middle and upwards SEC: B and upwards Family life cycle: Middle aged

CUSTOMERS

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According to the company customer is most important thing. The customer is not dependent on company but the company is dependent on the company. The company does not favor the customer by serving him but the customer is doing them a favor by giving them oppourtuity.

SEGMENTS
Segment Information Asian Paints (India) Limited has identified two segments in line with the Accounting Standards on Segment Reporting (AS-17). These are Paints and Others. Others include the Chemicals business of the company viz. the manufacturing of Phthalic Anhydride & Pentaerythritol. Paint sales for the company recorded growth of 11.4 % at Rs. 14590.3 million compared to Rs. 13096.7 million in the previous financial year. Segment results of the paints business increased by 17.9% to Rs. 2579.9 million from Rs. 2188.4 million in 01-02. Sales from the Chemicals business registered growth of 32.2% at Rs. 1147.56 million compared to Rs. 868.19 million in 01-02. It is for the first time that the Chemical business has recorded sales of over Rs. 1000 million. Segment results of the chemical business increased by 190.8% to Rs. 182.9 million from Rs. 62.9 million in 01-02. The companys decorative business is the largest contributor to the revenue of the company. In the decorative business, Asian Paints is the leader in all segments. All product categories of the Decorative business registered good growth with exterior finishes sales increasing by over 30%. The total number of Colour World installed by the company across the country is 3200 as on Mar 31, 2003.

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The company products are broadly divided into two segments

Decoratives: Major segments in the decorative include exterior wall paints, interior wall paints, wood finishes and enamel. Decorative paint's market size stands at around Rs 32.5 bn. Asian paints is the market leader in this segment. Demand for decorative paints arises from household painting, architectural and other display purposes. Demand in the festive season (September-December) is significant, as compared to other periods. This segment is price sensitive and is a higher margin business as compared to industrial segment.

Industrial: Three main segment of the industrial sector include automotive coatings, powder coatings and protective coatings. Industrial paint's market size stands at around Rs 9.5 bn. Goodlass Nerolac is the market leader in this segment. User industries for industrial paints include automobiles engineering and consumer durables. The industrial paints segment is far more technology intensive than the decorative segment.

MARKET STANDING:

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Asian paints is the market leader in Indias paint industry with a commanding market share of about 39% in the organized segment. It is among the top 10 players in decorative segment in the world. The unorganized sector is a strong force and controls almost 35 per cent of the industry involving estimated 2,500-3,000 players. A decade earlier, the unorganised segment used to have a much higher share of the market but this is slowly changing. Today's consumer is evolving and has become quality and brand conscious. In addition, the reduction of excise duties from a high of 40 per cent to 16 per cent in the last decade has reduced the advantage of the unorganized segment. Increase in raw material costs will equally affect both the organized and the unorganized sector. Asian Paints has been the market leader in the Indian paint industry for over three decades. Today the company has a very high market share. The nearest competitor is half of there size. Yet, despite the dominant position in the market, Asian Paints has been able to consistently record an increase in market share. The company's market share has increased over 3 per cent in the past seven years.

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11.1% 17.3%

0.4% 3.9%

20.3%

46.9%

Asian Paints ICI

Nerolac J&N

Berger Shalimar

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Comments

1. The ware housing facilities are well maintained. 2. The company specially looks after the environmental aspects and tries to avoid pollution and pollutants by adapting eco friendly production methods. 3. The company keeps low inventories in off seasons, and high inventory in festival seasons. 4. The company has huge base of raw material suppliers, giving company bargaining power resulting in higher profit margins then competitors. 5. The company has succeeded in establishing themselves in rural parts of India by large distribution network, retail outlets etc.

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YEAR EVENT
1942:Champaklal H Choksey, Chimanlal N Choksi, Suryakant C Dani ,Arvind R Vakil establish a paint manufacturing unit in a garage on Foras Road, Bombay. They name the company The Asian Oil & Paint Company 1945: Asian Paints uses an innovative marketing strategy of using samll packs

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Market segmentation:
Asian Paints segment the market based on the usage : BRAND POSITIONING : It is how the Asian paints enabled people to form a mental image for their products in the customers mind. The strategies that they followed where as follows: Brand Image The ways in which Asian Paints attempted to meet the customers psychological and social needs.Indian paint industry is a low involvement industry. Till 1990s: 1.People will just tell their budget for painting their house to their contractors.And few customers will also mention the colour they need. During that period. 2.Asian Paints analyzed the customer market and found that people where not brand conscious but their concern was only the price of the paint. To meet this needs of the customer: Asian paints reduced the cost of the raw materials by backward integration in order to reduce the cost of the paints Established an advertising strategy with created an emotional touch among the customers. All these strategies helped them in creating a Brand Image for their products among people and people started realizing the need for brand conscious in this industry.

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CONCLUSION:
An independent survey named Asian Paints to be one of the best companies in Asia in paint industry and other. Business Today showed that the company was one of the most transparent and a leader on the issue of innovative methods.

EXCELLENT MANAGEMENT SYSTEM EFFECTIVE OPERATIONAL MANGEMENT GOOD NUMBER OF SUPPLIERS AND DISTRIBUTORS. LOTS OF AWARDS No.1 PAINT COMPANY IN PAINT INDUSTRY PLAYINGLEADER ROLE IN PAINT INDUSTRY. GIVINGMORE IMPOTANCE FOR HUMAN POWER. HIGHLY INNOVATED IN TECHNOLOGY.

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ANALYZSIS AND SUGGESTION:

As seen above the companys raw material price is directly related to crude oil prices, keeping this in mind the company should try to keep optimum level of raw material to avoid breakdownns in production function.
ADVANTAGES OBSERVED (Good strategies) IN FIRM If we observe the vision statement Understood that management involved right from the start. Adequate or correct marketing research is done at each and every level There is no lack of vision on the relationships between processes, technology and organization. If we observe the culture of TQM, and Decision Making There is sufficient company resources to accomplish task. New strategies arewell explained to employees. Incentives given to workers to embrace the new strategy. Promoting the new employee and their management skills. There is a good employee commitment

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STRATEGIC MANTRAS OF ASIAN PAINT LIMITED:

1.Audacious in vision. 2.Focus on what know best. 3.Trim flab to achieve operational excellence. 4.Good governance made the business sense 5.Forge stronger partnerships with supplier base. 6.Pursue quality with zeal. 7.Innovate to create value for customers. 8.Good in distribution.

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ASIAN PAINT PRODUCT:

Asian Paints is engaged in manufacturing of paints. The company offers interior and exterior wall paints, automotive paints, powder coatings, auto refinish paints, and wood finishes. It operates in 22 countries and has 29 paint manufacturing facilities in the world servicing consumers in over 65 countries. It is headquartered in Mumbai, India and employs 3,924 people 1)Interior Wall Paints 2)Exterior Wall Paints 3)Wood & Metal Paints 4) Wood Finishes 5) Ancilliaries 1.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. 2.MISSION : To provide paints as per market demand, ensuring desired level and quality of customer (dealer) service, continued availability of the right product mix of right quality at the right time.

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CORE VALUES Commitment and Integrity in dealing with internal and external customers A strong belief in individual ability and creating an environment in which entrepreneurial spirit is encouraged. Ownership and Responsibility. To continuouslyRejuvenate every living and working space of peoples and bring joy to their lives.

CORE PURPOSE To continuously rejuvenate every living and working space of people and bring joy to their lives.

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COMPETETIVE ADVANTAGE PROFILE :

Marketing Factors Market leader -38% share in organized sector. Asian Paints is more than twice the size of its nearest competitor. >50 yrs leader Widest product range -product shades, wide colours ,pack sizes 40 different decorative paints -1000 shades, 8 different sizes in packing, no. of brands -all segments Brands -quite powerful high quality MR & MIS , 90% accuracy in forecasting, 100 fastest moving Stock Keeping Units, monitored daily Countrywide distribution (29 plants in 22 countries) . Physical distribution far superior to competitors strong in inventory control (18 processing centres, 350 raw material and intermediate goods suppliers, 140 packing material vendors, 6 regional distribution centres, 72 depots are integrated)

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Manufacturing/Operations factors :
Size advantage in relation to competitors. Finesse in production planning ,scheduling ,matching with marketing requirements In-house production outsourcing high reliability suppliers superior quality assurance. Four production location spread benefits.

Human Resources :
Asian Paints believes that people are its strongest assets HIGH caliber A talent pool of over 4700 employees employed across 23 countries bringin a unique blend of mindsets and skills. Excellent training is provided to develop leaders and re-strengthen competencies from within the organisation

Information Technology :
Asian Paints is the only company in India to have integrated Supply Chain Management (SCM) Solution from i2 Technologies, and Enterprise Resource Planning (ERP) solution from SAP. Customer Relations Management (CRM) tools are being used in Asian Paints Helpline and Home Solutions initiatives . Improve efficiency in the business as well as increase the transparency and accuracy of information across the country.

Research & Development:

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At Asian Paints, R&D plays an important role in developing new products and innovations, and reducing costs by value re-engineering of formulations. It consists of 140 strong R&D team consisting of 7 doctorates and around 115 qualified scientists, has always backed the company's business plan and demands of the market place. Asian Paints' R&D team has successfully managed to develop High-end Exterior finished and wood finishes in-houes.

DISTRIBUTION NETWORK :

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Asian Paints has six manufacturing locations all over India and 70 sales branches. Each of the manufacturing plants takes different products. The distribution system is taken care by area sales managers and executives. The executives keep canvassing the market and meeting the dealers to get the orders. Asian paints has around 15000 dealers who are catered to by the sales executives. The orders are collected by the sales executives and passed on to the nearest depot. The depots are fed by regional warehouses. Depots maintain a minimum order quantity which is arrived at from the monthly demand forecast. The material is dispatched from the depot in the name of the dealer. Generally some orders of the same region are clubbed together and dispatched in trucks. Finally the truck is unloaded and the small orders of the dealers are dispatched to them. The sales executives are also responsible for the collection of outstandings. Generally paint companies allow a maximum outstanding of 2-3 lakhs for 45 days. Other jobs of the sales team consist of grievance redressal and customer feedback.

Brand Portfolio:

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It was realized that instead of spending on individual brands and in promoting them it was logical to promote their corporate image and allthe brands under their umbrella brands ... Asian Paints has embarked on an umbrella branding policy encompassing all its products and services. The project includes a new visual identity that establishes the company name as the dominant reason for purchase. Tractor, Royale, Utsav and Apcolite names are no longer the focus on the can, rather consumers will be buying "Asian Paints." Some key brand names are being retained for the time being--to signal a position in the market rather than a product or surface. For instance, Tractor will represent the "value for money" brands. The immediate advantage is obvious. Rather than spread resources thinly across brands and sub-brands, a company centric portfolio can synergize communication efforts. To be competitive in a world of fragmentation and rising costs, traditional mass media, such as television, can be prohibitively costly. With the umbrella-branding move, Asian Paints can also afford to move forward from a mere functional platform for each individual product to the high ground of a mood-based emotional dimension. An Underlying Theme At Asian Paints, the underlying theme is "har ghar kuchh kehta hai," or "every home has something to say. " The depth and texture visualized by this line goes into the customer's basic psyche of owning a home, and will carry through various messages emanating from the company, which is the leader in the decorative coatings market in India.

SITUATION ANALYSIS-1
CATEGORY ANALYSIS:

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The different categories of Asian paints Ltd. are PAINT : Companys paint business in India consists of decorative, Industrial & Automotive coating. In 2005-06, these accounted for 79.1% of the group sales. It is estimated that the local market for all paints including cement paints & other powder products manufactured by all companies big & small would have been around Rs.95 billion in 2005-06. 1) DECORATIVE PAINTS: Decorative paints account covers almost 75% of the overall paint market in India. In this segment Asian paint has been a leader for almost four decades. Decorative paints include wall finishes, for interior & exterior uses, examples, wood finishes & ancillary products such as primers, putties, etc. 2) INDUSTRIAL COATINGS : Industrial coatings have a moderate growth rate than decorative coating, 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. 2) AUTOMOTIVE COATING: The actual look and feel of a vehicle undergoes 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.

SITUATION ANALYSIS-2

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Asian paints limited with its three business units decorative, Industrial & International business is one of the largest paint company in India. It had a sell over 300 million litres of paint in 2005-06. Significantly the group has crossed the Rs.3000 crore turnover mark-a preset mile stone for the company. Here we will be analyzing three situations of the company 1. Competitor analysis 2.Customer Analysis 3.Assumption on planning 1) COMPETITOR ANALYSIS : The Indian paint market is highly saturated with many paint companies with varieties of product. Asian paints ltd, Kansai Nerolac paints Ltd. Berger paints India Ltd. ICI India Ltd. Shalimar Paint Ltd, Snowcem India Ltd are the market leaders. Here we are only considering the nearby competitors of Asian Paints which are Nerolac paints Ltd, Berger paints Ltd & Indian chemical Imperial (ICI) Ltd. 2.) CUSTOMER ANALYSIS : Asian paint with its natural competitive advantage of size (Number 1 in India), Strong brand equity & largest distribution Network has acquired the number one position in Decorative segment in India. There are few reasons due two which the customers in the decorative segment has been choosing Asian Paint as their brand 1.As we know brand name has its own value & Asian paint is the number one in decorative segment, so a purchaser automatically leans in purchasing it.

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For example, we have two different types of paints, namely Apolite glass Aenamel & Apolite care Emulsion, which are from Asian Paints, Nerolac paints, Berger paints & ICI paints. Again due to the competitive market the price is very closed for all the companies. But due to the Branch awareness of common people they mostly tend to purchase the products from Asian paints. 2.Company have provided with different varieties of product for different income groups. For e.g. UTSAV which is a low value paint, is growing at a faster rates & penetrating with high speed at the lower income group. This policy is helping the company to move from metros to small towns for branded products. 3.In India frequency of painting has still not increased, which is once is 5 years only. So consumers are normally changing over to the better quantity & branded paints. 4.In 2001, Asian Paint launched a new product Tractor Emulson, which pulled the customer who used distemper to move to emulation paints. Accessibility of Asian paints to the customers : Asian paints have started a 24 hours customer help centre at Hyderabad. It is information to consumers to answer their needs for any query related, to their products. Through this company is also getting a lot of data related to the customers need & appreciations of the products. In order to provide better consumer service, company has connected all colour world installations with Asian Paints main system through software & providing computes to dealers. This is speeding up order execution, electronic banking will speed up recovery & money transfer. Market Share Analysis : The market share clearly shows that Asian paint is the leader in Indian paint industry. The nearest competitors of Asian paints are Nerolac & Barger paints. Asian paints has the largest sells in Decorative paints. Nerolac paints being widely used in Industry it has a greater share price value. Industries like Bajaj auto limited, Maruti Udyog & many other car manufacturing companies use Nerolac paints.

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The Industrial paint are priced with premium in comparison to the decorative paint which is mainly used in house hold decoration. Berger paints & ICI paints are also providing a shift competition to Asian Paints in decorative paint, but still there is no sign of threat from them. Again in the Industrial sector Nerolac paint far ahead of all its competitor. Asian paint presently building up a new manufacturing unit solely to produce Industrial paint. Asian paints annually spends on an average Rs325 Cr on its selling & marketing expenses. It givers us an idea about the effort the company put on expanding its market in all segments. When customers buy the products of Asian paints As the customers normally uses the products of Asian paints on certain occasions like. Marriage ceremony, Dewali or any other special occasions, other than normal paint in houses, customers are very choosy & brand specific. This appreciation by the customers helped Asian paints to become the number one paint company.

MARKETING OBJECTIVES:
Four Marketing Objectives of Asian Paints are discussed bellow(i) Corporate objective
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(ii) (iii) (iv)

Divisional objective Marketing Objective Programme Objective

Corporative objective : The corporate objective of Asian Paint is as follows -Asian Paint has become one of the top decorative company world wide by leveraging its expertise in the higher growth emerging market. Simultaneously, the company intends to build long term value in the Industrial coating business through alliance with established global partner. With Economic performance as objective the organization now has to develop short-term goals to reach the overall objective. These Goals are usually functional target such as production, Sales, new market develop, new product development and technology up gradation, once the goal are determined the strategies can be evolved to meet the goals. The organization is now on the way to achieve the overall objective of Economic performance. Steps followed by Asian paints for achieving its objective : Asian paint is following certain steps for achieving its corporate objective. They are as follows : (i) Customer Asset : The settings up Asian paints colour world, a chain of state art paint shop, is a major step towards building customer asset. At thesame time company is focusing more in rural areas than urban area and continuing to provide good and quality service to the customer. (ii) Technology asset :

Asian paint is one of first Indian company to go hi-tech. Asian paint has always kept its competitor at bay by constantly re-innovating its business process and system. (iii)Employee Asset : Asian paint always praise its employee for its success in the market. Company always considers employee as a biggest factor of its success.

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(iv)Dealer vendor relationship : Asian paint always maintain a close relationship with its dealers because company think that they play a major role in Asian paint recent success. (v) Brand Asset : Although it is operating in the commodity market but still Asian paint is investing heavily in branding. Gattu- Asian paint official mascot is very popular in India. Divisional objective : Asian paint has following division that are as follows : (i) Decorative segment (ii) Industrial segment

(iii)Automotive segment Decorative segment : Asian paint is the leader in this segment. It is ahead that its competitor Nerolac and Berger in Decorative segment company still have certain objective for this sector that to increase it sales and to acquire maximum position in the market share in Indian paint market. Objective for decorative segment : To expanding its range in the economy segment. To strengthen its position in the emulsion segment in both exterior and interior emulsion. To continue its strategy of pricing aggression and increase it sales and to gain the market share along with a good operating margin. To focus on the rural market as company believes as it as been its objective since the beginning. To focus more on adcampaign for enhancement of their sales in urban as well as rural market.

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Industrial segment : Asian paint second line of production deals with the industrial coating. The constraint in these segment is that it is not as successful as the decorative segment. In these sector it has to face a stiff competition from its nearest competitor Nerolac and Berger Paints. Objective for Industrial segment : To build new infrastructure in the country for Industrial coating to increase the production capacity. To develop the quality of the product with a higher technological up gradation. To increase the sales of the Industrial coating with the help of proper Ad. campaign programme. Automotive segment : Automotive is the third segment of the Asian paint. It is a product which company target for the automobile market in India as well as abroad. Objective of automotive segment : To put emphasis on continuous improvement in quality and productivity. To put emphasis on detect prevention. To reduce variation and wastage in the supply chain. Marketing Objective : Asian paints the leader in Indian paint Industry has a very strong marketing division. With more than 35% market share Asian paint is still growing in leaps and bounce to achieve higher targets. It is changing fundamentally with two objective in mind a huge ramp in the market share and better growth over the next three years. Previously company used to function as undifferentiated organization. But now they have divided it into three section each. And each section has its own independent support system, targets and performance parameter. Company marketing objective : As follows
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Company is using PC, V-sats based line and internal mesh to become most networked corporation in India. Company is trying to cutdown the inventory and improve the working capital cycle for a continuous production. Asian paint is highly accepted in the urban sector and now the company is trying to access the rural market with low price product like Utsav targeting every customer of all income level. To enhance their marketing in rural sector a huge amount investment is made in adcampaign and demonstration cum sales technique is going on. To increase its sales in the urban sector Asian paints today have 30 colour world located in different cities of India where any body can have the real taste of the colour. Online marketing has become an integrated part of the company and company is trying install a strong integrated for online marketing. Asian paints international unit, which have a dedicated marketing team is also targeting for a rapid growth in overseal market. Asian paint is concentrating on the development of technological in their industrial coating so that to make the product more stronger positon in the market. And do it they are following the product with huge ad compaign. Asian paint is following unlque strategy of marketing in the rural areas by using their official mascot. According to the company it feels that picture are more dominant than name. Asian paint website Asian paints com provides several information regarding the product and various other information that is being required by customer and dealer. Programme Objective : Programme objective is one of the main objective of the company. Here the company frames the strategy about the products related issue and
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various other thing relating to the business. Most of the company follows the 4Ps policy namely price, product peace and promotion. Product : Asian paint details with product that is : (i) (iii) (iv) Decorative Industrial Automative.

In decorative segment company has a wide range of product from low price to high price low price product like utsav which is basically targeted to the rural customer and high price product Apex cefirma for exterior and interior emulsion. Asian paint investing a huge amount of fun in R & D sector for Quality and the technological development of product so that it compets globally. Price : the price range of Asian paint varies according to the product. Asian paint had always a stragegy in domination in the rural sector. The product that is supplied to the rural area have low price range. Where as in the urban sector some of the high price product circulates. Place : Asian paint is available to all types of customer and the main advantage of the Asian paint is that it is easily accessible to its customer. At present there are 20,000 dealer and a large no. of retailer. Asian paints distribution channel extends to the thirty state of India. Asian paints is also exporting to contrites like Caribbean, Africa, Middle east Asia and south pacific.

Promotional strategy followed by Asian paints in rural market:

On of thing which is contributing to the profit of Asian paint is that its entry to the rural market. As Asian paint gets an competitive advantage from its competitor in this sector. As Nerolac and Berger were only targeting the urban customer.

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First of al Asian paint is bring different low cost product like Utsav group in the rural market. There packaging very from 200gm to 1 kg \and prices are also relatively low. To enhance their sales in the rural market they are spending a huge amount of money in ad campaigns. In rural areas they follow sales demonstration programme where they demonstrate their different product where a large no. of discount is given on the product, lucky coupons, free gifts are given to the customer. Moving vans are being employed to sell their product in different village. Promotion in international arena Asian paint is taking we from the domestic market and promoting its product in the international market with establishing colour world in those place particularly Caribbean, Africa Middle east Asia and south pacific. A huge amount fund is invested adcapaign for these product in the international market. Promotion through Ad campaign : Asian paint has different brands over 1100 shades targeting different segments. The company decide to promote all the brand under one name of Asian paint This was a advantage for Asian paint in the Low involvement segment as the people asked the paint by brand. Target Audience : The primary target audience for all of the brands marketing and communication activities has been the adult male who is the primary decision maker.

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BIBLOGRAPHY
1.Our primary source of data is Asian paints 2.Our secondary source of data is: 3. www.google.com, 4. www.asianpaints.com 5.www.scribd.com 6.www.setslide.com

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