Rural marketing in Asian Paints

Presented by: chiranjeet bhatt Shashi tripathi Devendra mishra Arnika baranwal Vamshi pyiya Rajlakshmi

CONTENTS
Paint industry Introduction History Vision & Mission Business strategy

Marketing sales distribution

Supply chain Supply Elements Distribution channel Business strategy: Rural marketing Wide range of products of rural marketing Distribute to rural areas Tool for understanding rural markets

Paint industry
Paint industry estimated at Rs. 135bn. Unorganized sector accounts to 35% of paint market.

Volume growth estimated at 15%.

Indias share in the world paint market is 0.6%.

Per capita consumption of paint in India is 1.2kg/annum.

Introduction
Started in 1942 by four entrepreneurs: Champaklal choksey, Chimanlal choksey, Suryakant Dani and Arvind Vakil as ASIAN OIL & PAINTS COMPANY. Within three years, their turnover reached 3.5 lacs. Started with a strategy Going to where Consumer is. In 1967, Asian paints became the 10th largest paint company in the world.

History
In 1942, a partnership was started by four entrepreneurs.
Mr. Champaklal choksey, Mr. Chimanlal choksey, Mr. Suryakant Dani and
Mr. Arvind Vakil

as

ASIAN OIL & PAINTS COMPANY.

In 1945, the firm was turned into a company.

In 1957, a plant was set up at Bhandup, Mumbai. In 1967, Asian paints became the 10th largest paint company in the world. In 1973, AP became a public ltd company. In 2002. AP was a market leader of Indian Decorative Paints with market share of 44%.

Vision & Mission

Vision:

Asian Paints aims to become one of the top 5 Decorative Coatings companies worldwide 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. Mission: TO BE THE LARGEST DECORATIVE PAINT CO. WORLDWIDE AND TO BE THE 5TH LARGEST PAINT MANUFACTURING CO. WORLDWIDE.

Business Strategy: Asian Paints

AP has acquired short-term competitive advantages by using its distribution strength and logistical efficiency in order to raise the Cost of doing business for all its competitors to attain this advantage. The advantage is short-lived and ultimately imitable. Moreover, AP has established such an extensive network that getting incremental advantage would be very difficult. Futuristic approach should be gaining competitive advantage through channel control or occupying mind space.

Marketing, Sales & Distribution for rural marketing

Rural Marketing Initiatives since 1960. Distribution is one of the main strategy of Asian Paints. Advertising & Promotional Expenditure started in

1980s. Advertising Methods- Radio, TVCs, Print, Internet, OOH, POP, Retail Outlets, Seminars, Workshops.

Supply chain of Asian Paints

Headquarters in Mumbai 4 Factories 18 Processing Centers 350 raw material and intermediate goods suppliers 140 Packing Material Vendors 6 Regional Distribution Centre 72 depots are integrated

Elements of Supply Chain

3000 SKUS

KEY SUCCESS FACTORS

FLEXIBLE OPERATIONS

4 PLANTS

RAW MATERIALS

6 RDC 35 JOB WORK CENTRES 77 DEPOTS

LOWER OUTPUT TIME

LOW DELIVERY COST

PACKAGING MATERIAL

15000 DEALERS

500 INDUSTRIAL CONSUMERS

Distribution Network
Secunderabad based location

Delhi based location

ANKLESHWAR

PLANT

KASNA PLANT
PATANCHERU

77 DEPOT CENTRES

BHANDUP

PLANT

ASIAN PAINTS HEADQUART ERS MUMBAI

Bangalore based location

Chennai based location

Kolkata based location

Ahmedabad based location

Business Strategy: Rural Market

Rural segment not mature enough to appreciate service related offerings Strategy should be product related. Customer up gradation strategy should be adopted. It should be Implemented in two parts. 1. The penetration of the rural segment have to be achieved by offering a basic product well tailored to match the low willingness to pay of the rural consumer. 2. After basic penetration levels have been achieved the rural consumer can be offered a higher range of products with a view to up grading the consumers.

Wide Range of Products for rural market

Asian Paints used the strategy of offering a wide range of products to push competitors to the side and become the leading Indian company in decorative paint. Companies that have a larger selection available for clients or customers are more likely to retain those clients and customers than companies which are limited and do not have the color choices. By offering a wide range of products, Asian Paints has been able to broaden its customer base.

Distribute to Rural Areas

A big problem with asian paint company in India was a competitive market in the large cities, where distribution was relatively easy and the risks were low. Asian Paints started by working from the rural areas, where distribution was a challenge and where the other companies had overlooked. Instead of focusing in cities and urban areas, Asian Paints focused on a national level and worked in until reaching the cities

Tools for understanding rural markets in asian paints

Understanding of geographical differentiation. Media reports and exports opinions Interaction with brand developers, marketer researcher & advertising experts. Inputs from ones one marketing team Visit to rural areas and knowledge from first- hand interaction with rural consumer.

Thank You