Transcript Marketing Strategies contd….

Welcome
Marketing Plan
submitted by
Francis Pinto
Shilpa Kulkarni
Pradnya Morje
Amol Rane
Tushar Wadivkar
Aditya Divadkar
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Asian Paints (I) Ltd.
 India’s largest manufacturer of paints
 Leader in the paint industry for over three decades,
controlling 45% of the Indian paint market.
 It out performed industry growth during the year 2002
 New product launches and excellent growth in exterior
finishes have been the key driver of growth.
Global Reach
Asian paint is present in 24 countries across the globe as :
Asian Paints
India
Sri Lanka
Bangladesh
Nepal
Oman
Mauritius
Apco coatings
Australia
Vanuatu
Fiji
Tonga
Soloman Island
Berger
Baharin
Hongkong
Malta
Thailand
Barbados
Jamica
UAE
Singapore
China
Malaysia
Trinidad & Tobago
SCIB Chemicals
Egypt
Asian Paints Industrial Coating Limited ( APICL )
• A wholly owned subsidiary of the company was
incorporated on 1st October, 2001 and acquired the powder
coatings business of Hawcoplast Chemicals Ltd.
• The acquisition has been funded from acquits of Rs. 80
million and a loan of Rs. 60 million financed by Asian
Paints (I) Ltd.
• The subsidiary commenced operations with effect from 1st
November 2001. It sells its products under the Hawcoplast
& Apcoshield brand names.
Industrial Paint Market (2002-2003)
(Value in crores)
Non-Automotive
771
Automotive
730
Total Market 1501Cr
Auto Industrial Coatings (02-03)
MS among Top 6 Competitors
Goodlass Nerolack
49%
Berger
7%
APIL
21%
BASF
7%
ICI
16%
J&N
0%
Non Auto Industrial Coatings (02-03)
MS among Top 6 Competitors
Berger
31%
J&N
8%
Akzo
17%
Goodlass Nerolack
19%
APIL
16%
Shalimar
9%
Paint Market
• Low market penetration
• Worldwide technology not available
• Huge scope of market development
• Absence of product hierarchy based on benefits – largely
based on price
• Network driven market, not consumer driven
Powder Coatings
Industrial Coatings (02-03)
% Business Share
Others
20%
RMC
9%
PC
26%
Powder
28%
COIL
2%
FC
6%
ILP
9%
Global reach of APICL
International Market for powder coating :
The portfolio of products offered by Apco coatings covers a large spectrum of
Architectural, wood, auto, marine and industrial coatings.
It has brands that are truly global and sell under the following brands :
Apcolite
Timber care
Decotrade
Auto care
Decora
Royal
Touch wood
Asian Paints has 27 manufacturing units all over the world, which includes
Australia,
Tonga,
Middle East
Mauritius,
Nepal
Fiji,
Vanuatu,
Africa,
Sri Lanka
Soloman Island,
South Asia,
Oman,
Bangladesh
Powder Coating - Market Size (MT)
Volume in MT
25000
20000
15000
10500
10982
2000-01
2001-02
11760
12682
10000
5000
0
2002-03 (Est.)
2003-04(Proj.)
Powder Coating
% Market Share 2002-03
Polycoat
18.7%
Others
27.6%
J&N
3.8%
Maharani
4.8%
APIL
13.6%
Akzo
7.9%
Marpol
11.2%
Berger
12.4%
Powder Coating - APICL Performance
(Volume in MT)
Market
15000
APICL
12682
11760
10982
10500
10000
M.S.
12.07 %
M.S.
13.53 %
M.S.
13.60 %
M.S.
14 %
5000
1268
1486
1600
1800
0
2000-01
2001-02
2002-03 (Est.)
2003-04(Proj.)
Powder Coatings
Distribution Channel (Top 6)
(Volume in MT )
Company Dealers
DL
Polycoat
APICL
Berger
Marpol
Akzo
Maharani
Total
615
974
886
1047
158
354
4034
Direct Users (DU)
Total
Paint
Eng.
Others
Contr. Contr
1324
171
88 2198
320
252
54 1600
274
238
60 1458
75
91
104 1317
740
20
11
929
122
43
46
565
2855
815
363 8067
Powder Coatings
Industry Consumption 2001-02 (Volume in MT)
Industry
Refrigerator
Furniture
Air conditioner
Washing machine
Luggage
Fan
Household Usage
Electrical goods
Switch gear
Auto Ancillary
Auto Ancillary
Architechtural
Textile Machine
Light fitting
Other appliance
Industrial usage
Consumption Percentage
1095
31.80
394
11.43
345
10.01
207
6.00
92
2.66
71
2.06
63.96
215
6.23
213
6.20
179
5.18
144
4.18
143
4.15
139
4.03
125
3.63
84
2.44
36.04
Powder Coatings
Acquisition of Hawco Plast
Acquired Hawcoplast business in 2001-02
 Impact




APICL become no.2 player in the industry (APIL-344 MT +
HAWCO-1142 MT)
Acquired a large and loyal dealer base.
Acquired a manufacturing plant at Sarigam with installed
capacity of 1500 MT / year.
Acquired a proven sales & marketing team which can
handle both brand.
APICL Vs. the competitors
STRENGTHS
WEAKENESS
Market Share of 13.6 % with
established brand name
Plant in North , West India which
are the major market
Wider distribution channel
Capacity increase due to acquisition
Global reach : 24 countries
across the globe
Technology tip-up with
Oxyplast / Belgum
Poor reach to direct user
OPPORTUNITIES
THREATS
Immediate competitor Berger
has MS of 12.4 % which is
just 1.2 % less than Asian Paint
27.6 % market is captured by
nichers, which can be acquired
Projected Sale of Powder Coating 2003-04
(Volume in MT )
AprlJune
’03
JulySept.
’03
Oct.Dec.
’03
Jan.- Total
March yearly
’04
2003-04
Due to Household
industry usage
15%
40%
20%
25%
Industry usage
15%
Quarter
Sale
1218
685
Total Target
( Apportioned )
3246
20%
913
1623
30%
1370
64%
2029
35%
1598
8116
36%
4566
1903 4159 2993 3627 12682
Marketing Strategies
Product
• New version of product
» offer more choices
» expand market
• New generation products and eco-friendly
alternatives like water based enamels and
elastomeric paints.
Marketing Strategies contd….
Price
• Streamlining costs through operational and technological
efficiencies.
• Reduction in import duty form 30% to 25%
• Application of Supply Chain Management & reduction in
the working capital .
Marketing Strategies contd….
Place
Markets across the globe are
Oman
Soloman Island
Mauritus
Vanatu
Nepal
Fiji
&
Australia
Tonga
Egypt
Scope for new markets
Bahrain
Trinidad
Malaysia
Sri Lanka
&
China
Singapore
Myanmar
China
Jamaica
Barbados
UAE
Malta
Hongkong
Thailand
• Last year no new market were developed from India
• New markets have been penetrated by APICL from its overseas units.
New markets can be developed in :
Sri Lanka
Bangladesh
Marketing Strategies contd….
Place ….contd…
Sri Lanka
• Acquired controlling stake in 2nd largest paint company in Sri Lanka,
Delmege Forsyth & Co. (Paints) Ltd.
• The company has 12% market share and excellent brand name in Sri
Lanka.
• Well developed distribution channel
Bangladesh
• Entered into joint venture agreement with Confidence Cement Ltd.
• Will manufacture and market a vide variety of products
• Manufacturing facility is coming up at Gazipur
Also efforts can be made for market penetration for full capacity
utilization in middle east, Oman, Baharain, Kuwait, Qutar, UAE &
Libya.
Marketing Strategies contd….
Promotion
What is taking Asian Paints closer to customers :



Helpline through telephone
Access to website
Home solutions
• These initiatives were taken by Asian Paints to attract
customer to paint.
• Focus is to become a strong player in Industrial coating
business
Marketing Strategies contd….
Promotion ….contd…
Promotion will include
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Public Relations
Target large number of direct users
Special awards / bonus to marketing team.
Direct communication to manage image
Some sort of a help line, delegated exclusively for
industrial selling can be generated
• 30% reduction in advertising cost and use it for promotion
Monitoring & Controlling
• The responsibility to achieve the target will be of the
Marketing Manager
• Marketing team along with sales team will review the
strategies
• GM – Marketing will be responsible for deciding and
implementing strategies for promotion mix
• If in a particular quarter, target is not reached, VP –
Marketing should be consulted
Industrial Selling Business Module
1 To 1
Marketing
Zero
Defects
Focus
Develop customer
Base / loyalty
Least Cost /
other benefits
Thank you