CUSTOMER AWARENESS WITH RESPECT TO ASIAN PAINTS

Project Report
Submitted To SCHOOL OF MANAGEMENT SCIENCES
For The Award OF Post Graduate Diploma In Management
Submitted By

Abhishek Kumar Sankrit

(Roll No. : PG/08/4)

SCHOOL OF MANAGEMENT SCIENCES LUCKNOW

ABSTRACT

Paint industry has shown a rapid growth in the last year 20082009, and since then there has been a decreasing growth in the industry. India, Asian Paints one of the largest paint companies in has shown a tremendous growth since its

which

establishment, liberalization.

This is an achievement, achieved

by careful planning a following firm procedures set by the company management. Asian is qualitative company with strict rules and regulations. All the planning takes place at the central office Mumbai. Each Asian paint production center has a distinguished packing so that by looking at the drum or cartons the plant identification become easy to the godown incharge. The company has a excellent distribution network which is the prime reason for its success followed by marketing plans. The company has a full fledge research of development function, whose aim is develop and present new products every year. The price and selection of target is also done to protection. Considering the promotional part Asian Paints employed Ogilvy and Mather to attract the customers.

Asian Paints has developed many brands and which have well penetrated in the minds of customers. Ex: Apcolite, Apex, ACE, etc., And Asian Paints was the first to enter with manual color dispensing concept which took off with the advent of computers, Asian is not lacking behind in this they have developed Colour World for the consumers with 1150 shades to be selected from. The study of my topic is Customer Awareness with reference to Asian Paints India Limited. And Advertising, sales promotion, personal selling, public relations, and publicity are the customers awareness programs to be conducted by the company.

ACKNOWLEDGEMENT
3

A project of this nature calls for intellectual , professional help and encouragement from many quarters .Research project constitute the important of any management education programme. A management graduate has to quite frequently do the project work during his or her career plans. This idea of Research Project has been conceived as part of 4th semester of PGDM programme at the SCHOOL OF MANAGEMENT SCIENCES Lucknow on the topic of Customer Awareness with respect to Asian Paints .

Abhishek Kumar Sankrit (School of Management Sciences , Lucknow)

Chapter 1
ABOUT ASIAN PAINTS

Asian Paints is India's largest paint company and ranked among the top ten Decorative Coatings Companies in the World with a turnover of INR 54.63 billion. Asian Paints along with its subsidiaries has operations in 18 countries across the world and 26 paint manufacturing facilities, servicing consumers in 65 countries through Berger International, SCIB Paints-Egypt, Asian Paints, Apco Coatings and Taubmans.

Vision
Asian Paints aims to become one of the top five 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.

Environment and Safety

Mr. P M Murty MD & CEO Asian Paints approaches the environment issue from the perspective of waste minimisation and conservation of resources. Thus, the continued attempt is to reuse, recycle and eliminate waste, which results in less and less waste being generated. Accordingly, our material losses in manufacturing have been reduced substantially over the last few years. Further, the company's four paint plants and the two chemical plants have the ISO 14001 certification for environment management standards. The company's latest manufacturing facility which is situated at Sriperumbudur near Chennai will be certified for ISO 14001 in this financial year 2006-07. All our paint plants have achieved 'zero industrial discharge' capability. This has been achieved by the installation of upgraded effluent treatment facilities and installation of reverse osmosis plants in conjunction with appropriate recycling and reuse schemes. Our emulsion manufacturing facility has also achieved 'zero waste' status. We have adopted the principles of "green productivity". Some of our innovative schemes which enhance green productivity are dealer tinting systems which has resulted in large batch sizes ; bulk storage facility for monomers

which reduces wastage; Use of natural gas which is a cleaner fuel ; solvent recovery plants have been set up which has resulted in zero reduction of solvent disposal ; Improved incinerating systems and reverse osmosis.

Safety at its best The company has made significant investments in the area of safety over the past several years. It's steadfast commitment to safety is reinforced by the fact that four of Asian Paints plants were conferred with the 'Sword of Honour' by the British Safety Council for the second time in quick succession. The British Safety Council is the world's leading occupational health, safety and environmental organizations, working closely with the world's leading companies in developing safe systems for work. The "Sword of Honour", instituted by the BSC, is recognized the world over as the pinnacle of achievement in safety management systems. CII national conservation awards Another recognition received in FY 2006 was the CII (Confederation of Indian Industries) Award for National Energy Conservation received by the Ankleshwar and Patancheru plants. The award function was held at Vigyan Bhavan, New Delhi, where the Ankleshwar facility in the state of Gujarat was honored with the second prize, while the Patancheru plant in Andhra Pradesh received a certificate of merit. The awards were presented by His Excellency, the President of India, Dr. A P J Abdul Kalam. The CII Award for National Energy Conservation is yet another testimony of Asian Paints commitment towards the continual improvement in our work process to help the environment through the manufacturing excellence programme.

Group Subsidaries

Apco Coatings is a subsidiary of Asian Paints in the South Pacific islands. Asian Paints operates in Australia, Fiji, Tonga, Solomon Islands and Vanuatu under the brand name of Apco Coatings.

Asian Paints Industrial Coatings Limited has been set up to cater to the powder coatings market which is one of the fastest growing segments in the industrial coatings market.

Few companies can claim of a history of consistent growth for over two and a half centuries , a presence in over 35 countries and an impact on the lives of over a billion people. Berger does that with elan. Ever since it was founded in England in 1760 by Lewis Berger, who perfected a new process for making Prussian Blue the colour of most military uniforms then, Berger has never looked back. Over the years Berger expanded its operations across oceans, to cover numerous geographies. In 1994, Berger units were brought under the single umbrella of the holding company 'Berger International Limited (BIL)' with headquarters in Singapore, which was also listed on the Singapore stock exchange. In November 2002, BIL became a part of the Asian Paints Group. Today, the name of Berger is synonymous with quality and innovation. BIL has presence across three regions viz. Middle East, Caribbean and South East Asia. In the Caribbean region, Berger is a household name. And considering that the company celebrated 50 successful years in the region recently, this is not surprising. Incidentally, Berger Paints Jamaica Limited, which is listed on the Jamaican stock exchange, is amongst the top ten companies in the country in terms of market capitalisation. In the Middle East too Berger is a well-respected brand. It is the largest paint company in Bahrain. Using its state-of-the-art manufacturing facilities there, and in United Arab Emirates, it exports to countries in the Commonwealth of Independent States, Gulf Cooperation Council and Africa. In South East Asia Berger enjoys a fine reputation and has operations in Singapore and Thailand.

Founded in 1979, SCIB Paints today is a reputed name and ranks amongst the top five paint companies in Egypt. SCIB Paints became a part of the Asian Paints group in August 2002.

Asian PPG Industries Limited, a joint venture between Asian Paints (India) Limited and PPG Industries, Inc. USA with 50:50 equity sharing was established in March 1997 with the objective of providing solutions to the paint requirements of Indian Automobile manufacturers. The joint venture brought together two leading companies with strengths in technology, manufacturing and customer insight.

Taubmans Paints Fiji, the fourth largest paint company in Fiji, became a part of the Asian Paints family in September 2003. Taubmans Paints is the dominant player in the project sales segment in the country and is a leader in the neighbouring Samoa Islands. It has two manufacturing facilities, one in Suva (Fiji) and the other in Samoa.

Awards & Recognition

Awarded the "Sword of Honour" by the British Safety Council for all the paint plants in India. This award is considered as the pinnacle of achievement in safety across the world.

Forbes Global magazine, USA ranked Asian Paints amongst the 200 'Best Small Companies of the world' in 2002 and 2003 and amongst the top 200 'Under a Billion Firms' of Asia in 2005.

Ranked 24th amongst the top paint companies in the world by Coatings World - Top Companies Report 2006.

The Asset - one of Asia's leading financial magazine ranked Asian Paints amongst the leading Indian companies in Corporate Governance in 2002 and 2005. Received the Ernst & Young "Entrepreneur of the Year - Manufacturing" award in 2003.

PAINTS THE COLOUR OF OUR LIFE

(A PROFILE) What is Paint? Basically, Paint is a mixture of four elements. Solvents Binders Pigments Additives Solvents Which give a paint its flow, and enable it to be brushed on a surface Binders Which hold the paint together, as well bind it to the surface that is painted, thus giving its property of durability. Pigments Which give paint its colour and opacity. Additives Which give paint special properties such as resistance to fungus, rust ..etc.,

10

Paints can be distinguished as EMULSIONS : These are water based paints Acrylic Emulsions are extremely durable and give wall silky and smooth finish. washable and easy to maintain. Eg: Asian Paints offers three brands to choose. Premium Medium Economical DISTEMPERS: These are also water based paints but their binders may be very natural or synthetic. Distempers are economically priced, Apcolite Royal Acrylic Emulsion. Apcolite Super Acrylic Emulsion. Super Decoplast. They

they offer good value for money as they are durable. Eg: Asian Paints has Tractor Acrylic washable Distemper. Tractor washable Synthetic Distemper. LUSTER AND MATT FINISHES:

11

These are solvent based paints are extremely durable. The former gives a gloss egg shell finish while matt finishes have a dead matt finish. Eg: Asian Paint has Apcolite luster finish. Apcolite synthetic matt finish. EXTERIOR FINISHES: For exterior cement paint is mainly used as it is economical. It also has a reasonable life if in areas where monsoon is not too heavy. Eg: Gattu cem. ENAMELS: It provide the best coating for metals they are tough, durable, glossy in finish. The smooth shiny look lasts for years. Enamels protect from corrosioin. Eg: Apcolite Synthetic Enamel. # mangoes Synthetic Enamel. PRIMERS:
12

Primers are usually the first coat applied on a surface it is meant to prepare the surface for painting. It offers protection to the paint. Eg: Asian Metal Primer. Woodorite Primer.

FILLERS / PUTTIES: It is used to fill up the crises or any unevenness to ensure that the finish coat gives a smooth surface. AUTOACQUER: It is NITRO CELLULOSE paint for auto finishing. Eg: Krilo Apca Aspa

13

PAINT INDUSTRY IN INDIA

Foundation for paint was laid in the year 1902 with the setting up of Shalimar Paints in Calcutta. It was during the and after the World War II. That large number of paint manufacturing units was set up in India. Since then the Indian paint industry has made substantial progress. The paint industry has come to the recognition as an important sector in the national economy in producing industrial coating and decorative paints. Decorative paints available in

wide range of combination account for 70% of the coatings total production. This rate While industrial paints share the balance of 30%. is diametrically opposite to the trend in the

industrialized countries where industrial paints account for 70% and Decorative paints for the balance of 30%. The Indian paint industry is at the crossroads. All most allmajor paint companies have expanded or are expanding its capacity substantially. With demand rising slowly competition is becoming increasingly intense. The decreasing growth rate has made the paint companies to woo customers aggressively. The customer is being offered

10% rebate in most products, Unheard in the industry so far. Most companies have increased their discounts to their dealers to

14

unimaginable level dealers are offered higher credit levels, flexibility in payment, foreign trips for selling even low value products and the like. The increasing competition to offer

solutions through technology has made all the paint make as offer a large number of shades through computerized colour dispensing system. IMPORTANCE Generally paints and coatings are applied to products to protect them from Emnvironmental Corrosion. Protection of Food and Beverages in metal cans. Improve aesthetic appeal. CATEGORIES Paints are classified into two broad categories. Decorative or Architectural finish paints. Industrial Paints. Decorative or Architectural finish paints: This market can be further segmented on the basis of the following
Customer types : Institutional / retail or domestic use

15

 Product

features

categories:

Distempers,

Enamels,

emulsions etc.
Price: Premium, Medium, Economy etc.,

Industrial Paints: This market can be further divided into the following four sub segments depending on the end user profile. Automotive paints. Marine Paints. Powder Paints High Performance coatings Other general industrial finishes. In India, decorative paints dominate with the share of 75% of the total paints consumed while in developed countries Industrial paints have a share of 50 70%. Decorative Paints used in buildings include distempers, emulsions, synthetic Enamels, Cement pains and Wood finishes. Interior Paints makeup of the segment. The rest is made up of exterior paints mainly cement paints. PLAYERS IN DECORATIVE PAINTS

16

In decorative paints Asian Paints dominates with a 37% market share and number two player Goodlass Nerolac has a market share of 14%. These paints are by medium technology and hence the unorganized sector

has a major share. A recent estimate that over 2400 companies are in unorganized sector.

INDUSTRIAL PAINTS Industrial paints include automotive paints (original auto manufactures and refinishes), Powder coatings marine paints high performance coatings and special purpose finishes. These are technology intensive and hence the presence of the unorganized sector is very limited. In fact, there is no presence of the unorganized sector in the original paints. This can be

explained by the fact that to bag an order from automobile manufacturer collaboration with a well known foreign paint company is a must Goodlass Nerolac is an un disputed leader n industrial paint. Till early 90s paints were treated a s luxury items by the governments this resulted in higher excise duty and higher end prices, leading low consumption of paints in India. However the
17

progressive reduction of the excise duty from 40% in 93-94 to 18% in 96-97, the companies have passed on the duty reductions as price cuts. However the per capita consumption of India is still a merge of .5 kg compared to 26 kg in U.S and 1.2 kg in Thailand.

As already mentioned paints were viewed as luxury item by many even today. Their productive value is not under stood and

repainting is limited and if ever done is once in 7 10 years. The government interest to protect all surfaces is also low and the loss due to corrosion is estimated to be over Rs. 5000 crores p.a. By the central Electro chemical Research institute at Karaikad, Tamilnadu. With a view to emphasing the importance of protection through painting the Indian paints Association (IPA) had brought slogan in 1995 Paint and Protect. This slogan is popularized

through various communications however a lot needs to be done to reach the millions of customers effectively.

DEVELOPMENTS IN VARIOUS SEGMENTS

18

Two significant developments took place in the last three years in the decorative paints segment. Advent of Computerized Colour Dispenser Sudden increase of Exterior Market.

Colour Dispenser: Traditionally companies used to supply pre mixed shades to dealers who in turn offered to their customers. Asian Paints brought in the manual colour dispensing concept in 1998 and offered 151 shades through it. This was the first salvo in offering in variety of shades. This concept took off and Asian Paints went about establishing 2000 colour corners which would stock the 151 shades. Additional shading

requirements were catered by providing colours as per the demand after mixing the bases with strainers through colour dipencer other companies followed it soon and Goodlass Nerolac introduce ed 301 shades under the same concept. In 1995 Jhenson and Nichelson, the 5th ranking company in the industry, pioneered the concept of CCD. And started installing them at dealer shops with the support of TIKKURILA of FINLAND.
19

The concept is similar to that of the manual colour dispenser except that the dispensing is automatic pre decided formula registered in the computer and the shades are offered instantly shops to customers. Today Berger Paints, is the 2nd Company to enter this system offering 5000 shades a clear indication of the trend. In the year 1997-98 has

seen the introduction of the concept by the two giants. Paints and Nerolac. installed this concept.

Asian

Today around 1000 dealer shops are

CCD or it is called AUTO COLOUR DISOENCER have helped the dealers to reduced their inventories offer a large variety of shades instantly, consistently and accurately. Consumer have

also benefited by this concept as the shopping environment has changed dramatically with the advent of CCD.

EXTERIOR MARKET The second development is the introduction of the 100% Acrylic Exterior Paints and the focus of major companies on the Exterior Paints market. Traditionally, the exterior paint market

20

was catered to by KILLICK NIXON and several other small players. The main offered were cement paints in India. But the real

change has be thought by Asian Paint through APEX its 100% exterior paint market has started growing exponentially. In 1999 Nerolac introduced EXCEL in the category and offered qualitative product at low material cost. Both Apex and Excel have propelled the exterior paints growth by over 60% in 2002 and the trend is expected to continue for at least of three more years.

A major development in 1997-98 was the Pay by scooter / car concept by companies. As practiced in western countries, in

India also the concept of taking care of the complete painting job has been under taken by paint companies. Goodlass Nerolac has commenced this concept with Mahindra cars by managing the entire paint shop and being paint on the basis of per painted cars. Asian Paints also followed it up with a similar tie up with LML for its scooters. POWDER COATINGS The other industrolycoat powers, in collaboration with VAISPAR CORPORATION of U.S. Higher performance coatings is another rapidly growing segment which is used at fertilizer / sugar plants, airports, big

21

construction projects, Berger, Asian., Nerolac dominates this segment due to their international collaborations and quality range of products. PAINTS DEFINED Technically paints can be defined as a homogenous fluid made from our ingredients namely pigments, resins, solvents and additives which the raw materials can be classified into four categories. A typical paint formation consists of over 500 input materials. high

However the key raw materials are Pigment:- Titanium dioxid Resins:- PAN,Pentaerythrill Together these constitute 40-50% of the total raw material dependent on the category of paints. To conclude the following are the critical factors in success in decorative and industrial paints. DECORATIVE PAINTS Managing logistics Managing input costs
22

 Focus on rural markets and viewers segments Strong marketing and brand equity Quality and technology INDUSTRIAL PAINTS International technology Consistent quality Customers service Competitive price Continuous innovation.

PACKAGING Asian Paints has four production plants and each has four distinct packing pattern. So that the work of the godown in

charge becomes easier in recognizing the tins from which plant they have come. The packing is as follows Ankleshwar Bhandup Patancheru Kasna And the products are packed as

23

Enamels

20, 10, 4, 1 liters 500, 200, 100, 50 ml

Distemper Emulsions

20, 10, 5, 2, 1 kgs. 20, 10, 4, 1 liters.

PLANT IDENTIFICATION Plant identification marks for cartoons, drums, tins are given below. Bhandup plant 1. All liter number will be four digit starting from 1001. 2. Alphabets B as label indicate Bhandup plant 3. Drums will not have any brands on the top side 4. Cartoons will not be Blue in colour. Ankleshwar plant All liter number will be four digit starting from 2001. Alphabets A as label indicate Ankleshwar plant Drums have one brand on the top side
24

 Cartoons will red in colour. Patacncheru plant a. 3001. a. b. line. c. Cartoons green in colour. Alphabets p as label indicate Patacncheru plant Drums have two brands on the top, one dotted All liter number will be four digit starting from

Kasna plant 1`. 2. 3. alternatives. 4. PRICING In the narrowest sense price is the amount of money charged for a product or service . Cartoons are brown in colour. All liter number will be four digit starting from4001. Alphabets K as label indicate Kisna plant Drums have one brand with three dots with nine

25

Price has ben the major factor in affecting buyer choice. This is still true in poorer nations, among poorer groups and with commodity products. However non price factors have become

more important in buyer choice behavior in recent decades. With respect to Asian Paints there are two price lists. Dealers price list Maximum price list.

Dealer price list: It is applicable to dealers and consists of their trade discount of 3%, additional trade discount of 3%, cash discount 5%. If written in equation DPL = trade discount 3% + Additional trade discount of 3% + Cash discount of 5%.

26

Maximum Price List: MPL = consists of dealers price list trade discount 3% additional trade discount 3% - cash discount 5% + local tax. Those dealers who has regular payment of performance are benefited largely by cash discount and those dealers whose payment is not regular do not get products. The company operates at a very low over due outstanding rate. Thus it can be said that the company has very stringent rules regarding the credit given to the dealers.

PROMOTION Modern marketing call for more than just developing a good product pricing attractively and making it available to the target customers companies also must communicate to their customers and what they communicate should not be left to chance. Asian Paints promotional activities consists of

advertisements, schemes, point of purchase, painters schemes.

27

The advertisement activities are given to OGILVY AND MATHER who has designed the advertisements as shown and partly by contract ad agency. TARGET GROUP According to the information provided by the company personnel the target group differs from product to product. Eg: Utsav rural (chunna and distemper) middle income group

Distemper Royal -

higher income group

FACTORS BEHIND SUCCESS OF ASIAN PAINTS Asian paints was founded in 1942 as a small Indian partnership firm at a time when the paint industry was fiercely competitive. Two marketing breakthroughs propelled the

company to leap into the decorative segment. The first was the introduction of smaller sized cans into the market where the paint was sold in bulk. The second was a dealer expansion thrust to reach out to end customers and offering them quality paints which were hitherto available to them in the urban areas only.

28

These two steps meant going beyond selling paints and, in particular responding to the customers unmet need. The result was that in 1967, Asian paints captured to the top position in the decorative paint segment. Today the company is not just a

leader in the paint industry but sells twice as much paint as any other company in India. In 1994-95 the company had a turnover of Rs. 614 crores and 38% share of the organized paint market Marketing Strategies The success of Asian Paints is primarily attributed to marketing acumen. The company has made excellent use of the electronic and print media, besides publishing informative brochures for all its products. The companys mascot Gattu

created to give an ethnic touch has almost become synonymous with the generic product. Critical Success factors Distribution The marketing success of Asian Paints was based on the realization that the semi-urban was untapped and the small consumer neglected. To reach those consumers in small town, the company built a broad distribution network across the whole country. From small towns Asian Paints moved to reach out to the metropolitan market. Today, the network with 17,000

retailers across the country is making the company responsive to a large customer base.

29

Use of Information Technology To strengthen the distribution network, the company has gone in for computerization at the branch and the depot level. All branches and 45 depots across the country are connected to the four plants and the Product Management Group at the Head Office through the VSAT. The use of the IT has meant faster flow of information, more efficient management of supplies, and better inventory control. Width of Product Line Based on the surface on which they are applied, decorative paints are usually classified as wall, metal, wood and plastic finishes. The products could be emulsions, enamels, varnishes, automotives, or undercoats. Their end use could be in the sign board, bus body, industry or household segments.

Asian Paint has offered brands in all possible applications. For instance: Synthetic / Acrylic Washable Distempers : Tractors Acrylic Emulsion : Apcolite (Quality I,) Royale (premium category)

30

 Plastic emulsion Paint (Interiors / Exteriors) : Decoplast (Quality II), Apex (Quality I). Synthetic Enamel : Apcolite, Gattu Packet Distemper : Utsav Wooden Surfaces : Touch Wood, Silkwood, Apcolite Natural Wood finish Cement Paint (external) : Gattu Industrial Segment General Industrial Finishes : Apcolite (Hammerton Finish) Other Industrial Products : Expory Coatings, Chlorinted Rubber finishes, viny I & Polyurethane Systems.

Automotives Kirlo an Acrlic Paint, Apca nitro-cellulose based Paint, Aspa an Allkyd, autocare. Primers Asian Metal Primer Redoxide

31

 Tractor Redoxide Primer for Metal Woodrite for Wood Substrate Decorative Cement Primer TECHNOLOGY TIE-UPS The company has a technical collaboration with PIG of the UDS and Nippon Paint Co, Japan for the manufacture of automotive paints, powder coatings, and coil coatings. Through this move, Asian Paints remains a step ahead because companies like Deawoo and General Motors that use PPG paint overseas are likely to source their automobile paint requirements from Asian Paints. Technical inflows ( From Sigma Coating of the

Netherlands) have also added to manufacturing capabilities in the areas of heavy-duty marine coatings, anti-corrosion paints and high-tech resins(that serve as raw materials), thus ensuring that product quality even in sophisticated items match

international standards.

Product line Extensions As stated earlier under conceptual issue, line extensions, as a part of marketing strategy is a low-cost, loss-risk way to meet the needs of various customer segments. It can satisfy

32

customers desires to provide a wide variety of brands under a single umbrella or family name. Asian Paints strategy to penetrate into the hitherto

unexplored distempers market was a similar move, which was a departure from its earlier strategy of concentrating on higher-end products.

New Market Penetrations The search of new markets and overseas opportunities has led the company to neighboring Nepal and the distant South Pacific Islands Fiji, Tonga and the Soloman Islands. The

company also exports its to the Middle East, South East Asia and Europe. Launch of low priced brand as growth strategy In late 1992, Asian Paints introduced the brand called Utsav as a long term strategy to penetrate the rural market. The overall marketing strategy adopted by Asian Paints for this distemper is now detailed.

Entry into the low end distemper market

33

The Rs. 2047 paints market has a pyramidal structure. At the very top end are [premium emulsions priced at about Rs. 155 to Rs. 170 per liter/kg (which comprise brands like Royale and Velvet touch); next are the synthetic emulsions at the range of Rs. 90 to Rs. 105 per liter ( e.g. Apcolite, Nerolac, Dulux and Rangoli); and at the base is the distemper segment (with Asian Paints Tractor) between Rs. 33 and Rs. 40. There was a huge

untapped market at the lower end which no organized player had attempted to tap. This comprised largely packet distempers, dry distempers and lime ash, hawked in a brand band of Rs. 3 to Rs. 25. Reason for entry Around 1991 a recession in the user industries and hike in the excise rates had slowed the industry growth rate to 2.2%. Asian Paints realized, that to overcome this phase of stagnation, it had to penetrate new markets and real volumes would come only be converting consumers using limewash, dry distemper, cement paint or other local painting methods into branded paint uses. This would also expand the market base, besides reaping it the first mover advantage among the major producers of the paint industry. All the company need was new paint to penetrate into this segment.

34

Barriers to Entry No data on market size, consumer buying habits, etc., on the distemper market. Regional brands, many in number, had an established clientele. Unorganized sector brands were priced low and offered heavy dealer discounts to push their brands. National players / Market leader risked losing premium image and quality association by entry into this low priced segment. Consumer preferences heavily influenced by regional cultures, lifestyles, hence the market was fragmented. Servicing a huge semi-urban and rural market would entail huge up-front investment, with returns not assured. Dominance of packet distemper brands, e.g., Dilkash and Lakmi, which filled the aspirational value slot.

35

Company specific problems / Disincentives Large price differential between the company distemper brand Tractor (Price Rs. 45 ) and the unorganized sectors products (Rs.3-25 ). Danger of eroding Tractors equity if a low price variant is introduced. Threat of substitution of the higher period Tractor brand by the cheaper one by the painter, which had a poorer finish resulting in customer dissatisfaction. The Companys Competitive advantage High degree of awareness about the company among the target market constituents. Company regarded as a quality-produce maker. Market leader, financial and marketing strength to sustain investment pressures Core competence in paints, wide variety and well-developed R & D. Wide dealer network and good information base about different markets.

36

The Total Strategy followed (a) Strategic Thinking

This was influenced by the following factors: 70% of the Indian houses were of the non-pucca variety. Painting of the hose, especially interiors, was a deeply entrenched habit. Wall-Paints usage was dominated by lime wash and dry distempers. Branded paints were perceived to be out of ordinary consumers. Penetration of all major paint brands put together was 24% of the users. The company realized that the only option it had was to reduce margins and relentlessly chase volumes. But to reach by the

achieve volumes, a high penetration in the rural and semiurban markets would be required. (b) Product and Price

37

The company realized that it would have to develop a brand that would offer Value for Money. Hence in late 1992, it

unveiled its new distemper Utsav, the name denoting seasonal and festival-oriented relevance of the product. It was position as do-it-yourself, oil-based-distemper. At Rs. 26 per kg, it greatly

narrowed the price differential and brought, for the first time, a major branded paint within the reach of the price-conscious consumer. The packet size was fixed at 1 kg, a small size, since the users had smaller-sized houses and did not require large pack sizes. Also, the product was found to cover more surface area than other products. The product as offered inn eight new

shades, typically in deep colours, keeping the end-user profile in mind. (c) Place / Distribution

Region wise launch of the brand, to coincide with regional festivals. Focusing on the north Indian Market, the largest, was scheduled to incorporate market feedback from the other regions and change the marketing-mix elements if required. Company salesman linked up with sub dealers and petty dealers, usually grocers, in villages and small towns, who in

38

turn would be serviced by the companys established 15,000 strong dealer network. Undertook innovative promotional campaigns, like arranging demonstration sessions, besides using the regional media and local print media, and customer education to create strong brand pull that would help increase of take and provide the small retailer the incentive to stock Utsav. There was also the prestige element in stocking Asian Paints products, which the company exploited to the hilt. The Company funded its (established) dealers transportation overheads incurred in reaching out to the new 80,000 odd outlets. (d) The Ultimate

Utsav has been a success in the markets where it has been launched. It has overcome the main hurdle of dealer and consumer resistance. The brand has gained market share at the expense of local packed distemper brands. Margins for the product are low

about 2-3%, while the higher end brands fetch 20%.

39

 However, the product has provided the company a clear advantage. It can now use its rural network to build its entire economy range comprising the Enamel range Gattu and other products like primers. Thus it has a clear head start over its competitors in the volumes game.

THE COMPANY Asian paints manufacturers and markets a wide spectrum of coatings and ancillaries, which include decoratives, protection paints and heavy duty coatings. The manufacturing facilities of the company for paint products are currently spread over four locations # BHANDUP # ANKLESWAR # PATANCHERU # KASNA MAHARASTRA GUJRAT A.P. 1955 1980 1981

40

The manufacturing of paints in patancheru started in 1985. Asian paints, their modern manufacturing facility offers the widest range of paints among all the paint companies in India, in terms of products shades as well as pack sizes. Asian paints have promoted 5 successful overseas subsidiaries. Asian paints has been turning out consistency good performance over the years. For more than two decades now, it has continuously been the leader in the industry. Besides being the market leader the company has also respectively provided its excellence in terms of operating performance which has earned the company a place among the worlds leading manufacturers. And Asian paints logo GATTU, the impish boy holding paint tin and brush is one of the most recognized and most prosperous mascots in Indian business. DISTRIBUTION In an industry the availability of stocks is crucial determinant of sale, control of material units assumes great significance especially since Asian paints offer the widest range of products, shades and packs to the 13000 dealers in the country through the network of over 47 depots. This is achieved through a sophisticated material

distribution system which optimizes production and movement from plants and meshes it with demand pattern in the market.
41

The distribution system monitors the dispatch of materials from plants / other processing units to the branches / depots directly or through the warehouses or regional distribution centre. A bonded store room (BSR) in one where in material for which excise duty has not been paid is stored. Each plant has a bonded store room where material is sent immediately after production. As and when these materials are dispatched it moves out of the bonded store room. Excise duty is livable at applicable rates on actual movements basis.

During the course of this section and subsequent sections reference will often be made to an SKU and SAU. An sku is acronym for stock keeping unit which is combination of particular pack, product, shade. Eg. sku Apcolite synthetic enamel one sku 500ml sky blue is Apcolite synthetic enamel 500ml bus green is one

42

CLASSIFICATION OF SKU All products can be divided into bazaar and industrial on the end use. Bazaar and industrial item can further be divided into inventoried and non inventoried items Inventoried sku are those for which constant demand for which sales forecast with a degree of certainty.

FORM-A Bazaar sku inventoried at company / branches / depots. The supply of skus is affected through multi plant distribution system.

FORM-B Bazaar skus which shades are under the specific focus of management group new products, packs are not inventoried at all branches / depots.

FORM-C1

43

Regular bazaar sku inventoried at branch / depot/ but not at company level.

FORM-C2 Bazaar sku not inventoried at the branch / depots/ company levels.

FORM-D Industrial inventoried sku.

FORM-E Industrial not inventoried sku.

FORM-F

44

All non confirming stocks( This includes damaged stocks defective stocks, old stock packed before 3yrs for trade products and beyond validity period for the industrial products.

CUSTOMER ACCOUNTING PROCEDURES TYPES OF CUSTOMERS PAYMENT 1. Local dealers order 2. Retail sales / cash sales/ known as Local cheques / pay Local cheques party is MODE OF

45

cash

pay order upcountry dealers or

location, local cheques if the dealer has local bank account. Industrial customers local cheques, D.D payable locally. In case absolutely necessary an upcountry cheques or D.Ds. Cash / local cheques -- Date of collection memo 1. Upcountry cheques 7days from the date of collection memo

as it takes around 7days for an up country cheques to be cleared. 2. DD/Pay date of DD as the ordered customer is debited as

soon as DD is purchased by the customer. Although the company may not be credited(i.e the customer is given the benefit.)

PLANING PROCESS In the sales function the planning is as follows. Phase-I

46

Market assessment It consists of assessment of market and market share for total and major products, growth

assessment segment wise for this purpose retail audit is conducted. retailer. Phase-I I Objectiove fixation Based on the above analysis all units should set objective of achievement of total sales volume / sales growth. emuilsions efficiency. Phase-I I I In this phase plan for meeting the budget shown be drawn up. These plans involving product / segment focus, town focus, dealer focus would form the basis of the planning document. Phase-IV Resource planning It consists of A: man power planning B: input plans C: sales promotion plans Volume sales strategically important products like auto refinishes, wood finishes and collection All the sale representatives collect data form each

PROFITS
47

For the quarter ended Dec 31, 2009, on consolidation of accounts of the subsidiaries and joint venture of Asian Paints Net Sales of the Group has increased by 22.5% to Rs. 1620 crores from Rs. 1322 crores as compared to the previous corresponding quarter. PBDIT excluding other income for the quarter was up by 188.1% to Rs. 318.1 crores as compared to Rs. 110.4 crores in the previous year. Net Profit after Minority Interest increased by 236.5% to Rs. 198.6 crores as compared to Rs. 59 crores in the previous year. For the Nine Months period, Net Sales of the group increased by 18.9 % to Rs. 4804.2 crores from Rs. 4040.7 crores. PBDIT excluding other income was up by 86.1% to Rs.916.8 crores as compared to Rs. 492.7 crores. Net Profit after Minority Interest increased by 116.7% to Rs. 643.1 crores as compared to Rs. 296.7 crores in the previous year. .

PRODUTION CAPACITY The company has four production centers to cater to the needs of the customers in India they are as follows ANKLESHWAR BHANDUP PATANCHERU KASNA The production plats are like four pillars to the company and the company is planning to set up a new plant by expanding its capacity. The aggregate capacity of the four plants roughly mounts to 7000 tones / month in the decorative paints segment.

48

NEW PRODUCTS DEVELOPMENT Asian paints have got a full fledged research and

development function to counter the competition and produce the technologically advanced products to provide a better service to the customers. The research and development and the management has a plan to 7produce four new products every year. products added till dates are # # # # # APEX anti fungal exterior paint ACE economy emulsion Utsav Asian wall putty NC sanding sealer And the new

and in the future the tally is going to be increased by their research and development function. LOGO Logo is a symbol which represents the company by looking at the logo any one who has little knowledge about the paints would say that it is gattu and the company is Asian Paints. A boy standing with a brush and a paint tin is famously known and the logo for Asian Paints which is a popular one has been designed by R.K.LAXMAN a well known cartoonist.

49

THEORTICAL ASPECTS
INTRODUCTION: Todays companies are facing their toughest competition ever. Companies can outdo their competition if they can move from a product and sales philosophy to a marketing philosophy. The success of the companies lies in doing a better job of meeting and satisfying customer needs. Only customer-centered companies are adept at building customers, not just building products. Over 35 years ago, Peter Drucker observed that a But todays

companys first task is to create customers.

customers face a vast array of product and brand choices, prices, and supplies. Now the customers started estimating which offer will deliver the most value. Customers are value-maximizers, within the bounds of search costs and limited knowledge, mobility, and income. They form an expectation of value and act on it. Whether or not the offer lives up to the value expectation affects customers satisfaction.

50

CUSTOMR AWARENESS: Customers are informed and remaindered about the

products and are requested and persuaded to purchase their products. Such communication may be made their along the

product or well in advance of the introduction of product into the market. Such communication becomes necessary when a new

product or service is introduced in the market or an old product is improved or it is simply to increase the sales of the products. Awareness compasses all the tools in the marketing mix whose major role is persuasive communications. PHILLIP KOTLER The main features of awareness are: 1. Customers are informed about the product or services of the company. Either at the time of introduction of a new product into the market or when any change is made in the existing product. 2. Customers are reminded of the products and services of the company.

51

3. Customers are requested or persuaded to purchase the product and services of the company. 4. Awareness includes, advertising, personal selling and other sale promotion techniques. Consumers must have awareness about the new products and their usage. manufacturer. Such activities are performed by the

It is the responsibility of the producer to get

information about the consumers and prospective consumers so that the necessary product may be served to meet their demands. Subject matter companies must do more than make good products they must inform consumers about the product benefits and carefully position products in customers mind. To do this

must skillfully use the mass promotion tools like advertising, sales promotion and public relations, personal selling, publicity. ADVERTISING: Advertising is defined as any paid form of non personal presentation and promotion of an idea, goods or services by an identified sponsor. The customers. best advertising is done by satisfied

52

-- PHILLIP KOTLER Advertising can be traced back to the beginning of the recorded history. Archeologist working in the countries around

mediterrian sea have dug up signs announcing various events and offers. The roman painted walls to announce Gladiator

fights, and the Phoenician painted pictures promoting their waves and large locks along parade routes. In 1993 advertisers ran up of bill of more than $ 138

billions through advertising is used mostly by business firms it is also by a wide range of non profit organization professionals social agencies that advertiser target to various target publics. Major Decision In Advertising: Advertising has the impersonal contact and gives

message to the receiver. The advertiser uses visual media like newspapers, magazines, radio, television, posters and pamphlets. There is no feedback to know the response from the people. Advertising is directed towards consumers. This leads to more

expenses and so the things become an costly affair. 1. Advertising Objectives a) To inform b) To persuade
53

c) To remind

2. Setting the advertising budget After determining the advertising the objectives, the company next sets its adverting. Budget for each product. The role of advertising is to effect demand for the product. However some specific factors are that should be considered when the setting the advertising budget. a) Stage in product life cycle. b) Market share c) Competition d) Advertising frequency e) Product differentiation. 3. Message Decision A large advertisers can spent the same amount on advertising, yet have very different results studies show that creative advertising message can be more important to

advertising success than the number of dollars spent.

54

4. Message Strategy The purpose of advertising is to get consumers to think about or react to the product company in certain way. People will react only if they believe that they will benefit form doing o. Effective message consist of customers benefit, creativity, Meanings, distinctive in nature. 5. Major steps in media selection. a) Deciding on reach, frequency, impact

Reach is a measure of the percentage of the people in the target market who are exposed to the ad campaign during a given period of time. Frequency is a measure of how many times the average person in the target market exposed to the message. Impact qualitative value of a message exposure through a given medium.

b)

Choosing various media types:

55

Newspapers Magazines Televisions Radios

Outdoors Internet c) Media timing

SALES PROMOTIOIN It includes activities other than advertising, personal selling, publicity and public relations which are used in promoting sales of the product or in persuading the customer to purchase the product. Distribution of samples, premium coupon, point of

purchase display, off-spring etc., are the examples of sales promotion techniques. Samples - Offers to consumers of a trail amount of a product. Coupons - Certificate that give buyer a saving when they purchase a specified product. Rebates (cash refund offers) It offers to refund part of the purchase price of the product to consumers who send a proof of purchase to the manufacture. Principles - It reduce prices that are marked by the producer directly on the label or package.
56

Premiums Goods offered either free or low cost and incentive to buy a product.

Advertising specialties useful articles imprinted with an advertisers name given as gift to consumers. Patronage reward Cash or other rewards for the regular use of a certain companies products or services. Point of purchase(POP) It displays and demonstration that takes place at the point of purchase of sale. Discount Straight discount on price on purchase during a period of time.

PUBLIC RELATIONS Another major promotion tool ism public relations building good relations with the companies various publics by obtaining favorable publicity, building up a good Corporate image and handling off unfavorable rumors, stores and events. The old

name for marketing public relations was publicity, which was seen simply as activities to promote a company or its products by planting news about it in media not paid for by the sponsor. Public relations are much broader concept that includes publicity
57

ass well as many other activities. may perform following functions.

Public relations department

a) Press relations Creating and placing news worthy

information in the media to attack attention to a person, product or service.

b) Produce publicity Publicizing specific products. c) Public affairs Building and maintaining national or local

community relations.
d) Lobbying Building and maintaining national or local

community relations.
e) Investors

relations

Maintaining

relationship

with

shareholders and others in the financial community.

f) Development Public relations with donors or members of

non profit organization to gain financial or volunteer support. PERSONAL SELLING Selling is one of the oldest professions in the world. people who do selling go by many names. The

58

Sales people, sales representatives, Account executives, Sales consultants, Sales engineers, Agent District managers, and Marketing representatives to name just few. Sales person, an individual acting for a company by performing one of more following activities. Prospecting, communicating, Servicing and information gathering. PUBLICITY Publicity is a non-personal not paid stimulation of demand of the products or services or business units by planting commercially significant news or editorial comment in the print media or by obtaining a favorable presentation of it upon radio, television or stage.

59

OBJECTIVES
PRIMARY OBJECTIVES: To find out which factors has got influence on customer awareness in Paints Industry.
To know the awareness level of Asian Paints customers as

well as other customers. SECONDARY OBJECTIVES: To identify the customer requirements. To analyze the customers perception regarding the preference of Asian Paint Products.

60

NEED FOR STUDY

The main objective of the study is to know the Customer awareness with respect to Asian Paints. The need for this can be explained if one knows the importance of understanding the Customer awareness. So in the following paragraph the Customer awareness and its role in the success of an organization has been explained. Customer awareness are taken up to boost the sales of a product by the company. A company having production

capabilities may produce a product and price is according and sell through the dealers and retailers by its distribution network. Considering the fact that consumer according to the time need, want and the purchasing power, it depends on the product, therefore, the marketers rely on the marketing mix to cater to the customers efficiently and effectively. So the companies producing the product, pricing and planning them have to care fully look into the minds of the consumers and place the products favorably in the minds of the consumers.

61

Chapter 2

METHODOLOGY
In order to realize the study the objectives a considerably volume of both primary and secondary data is needed. It has

been therefore found necessary to conduct an Interview schedule for gathering relevant data from the users. Primary Data has be collected with the help of a structured Questionnaire with stratified sample of 100 respondents have to be taken for carrying out the study. Secondary Data the information regarding the Indian paint industry has to be drawn from various published sources. They include Professional business Journals and Magazines, besides the News papers. The data relating to Asian Paints has to be

collected from company records. This study is necessarily based on the limited knowledge and little practical exposure the constraints of resources and time have further imposed limits to the study boundaries.

Chapter 3

62

DATA ANALYSIS AND INTERPRETATION Exhibit :1

Occupation Builders Contractors Engineer Others Total

Frequency 84 6 2 8 100

%of Respondents 84 6 2 8 100

CUSTOMER PURCHASING PATTERN Graph :1

8% 2% 6% Builders Contractors Engineers Others 84%

63

INFERENCE: From the above table it is found that 84% of the product purchasers are builders. It is found that 6% of the customers are contractors. 2% of product purchasers are engineers and 8% of product bought by others. It is clear from the above data above, that 84% of the customers are builders because they do painting before handing over the houses to the respective owner.

64

Exhibit :2 EXPERIENCE IN PAINTING PROCESS

No. of Respondents 100 Graph : 2

Experienced Respondents

%of Respondents 100

0%

100

100

100%

INFERENCE:

65

It is found that all the respondents have experienced in painting process, even though, the buyers are purchasing then products for the 1st time, since it is known that buying of paints can be not only for self but even for other such as relations and friends.

66

Exhibit :3 APPROXIMATE BUDGET TOWARDS PAINTING Graph:3 Value of the Budget Frequency %of Respondents Below 50,000 50,000 75,000 75,000 1,00,000 Above 1,00,000 18 6 31 45 18 6 31 45

Below 50,000 50,000 - 75,000 75,000 - 1,00,000 Above 1,00,000

67

INFERENCE: From the above table out of 100 respondents it was found that 18% of the respondents are in budget below Rs. 50,000/which means they are ready to spend for paints. 6% of the respondents are in budget between Rs. 50,000/- to Rs.75,000/-. 31% of the respondents are in budget between Rs.75,000/- to Rs.1,00,000/- and the remaining 45% of the respondents are in budget above Rs.1,00,000/-. So it was found that maximum numbers of respondents are ready to spend upto Rs.1,00,000/- and above for paints.

68

Exhibit :4 USAGE OF DIFFERENT INTEROIOR PRODUCTS

Interior Products Enamel Distemper Polish Emulsion

Frequency 22 52 6 20

%of Respondents 22 52 6 20

Graph: 4

Enamel Distemper Polish Emulsion

69

INFERENCE: From the above table out of 100 respondents, it is found that 22% of the respondents are in requirements of enamel paint for their interiors, 52% of the respondents required the interior paint like distemper, 6% of the respondents are in requirement of Asian Paint polish, while the other 20% of the respondent are in requirement of Emulsion. In interior product usage, there is a greater demand for the distemper followed by the enamel.

70

Exhibit :5 USAGE OF DIFFERENT EXTEROIOR PRODUCTS

Exterior Products Cement Paint Textured Emulsion Permanent Finish SnowCem Graph: 5

Frequency 18 5 35 2 40

%of Respondents 18 5 35 2 40

Enamel Distemper Polish Emulsion

71

INFERENCE: From the above table out of 100 respondents, it is found that 18% of the respondents are in requirement of cement paint for their exterior purpose, 5% of the respondents are in requirement of textured, required the where as 35% of the respondents

Exterior Paint like emulsion and 2% of the

respondent are in requirement of permanent finish product, while the remaining 40% of the respondents are in Snowcem. Snowcem had a greater demand, because most of the middle class families are using Snowcem, and next to snowcem the familiar product is emulsion. requirement of

72

Exhibit :6 LIFE EXPECTANCE FOR INTERIOR PAINTS BY CUSTOMERS

Period 6 months 1 Year 2 Year 5 Year

Frequency 14 86

%of Respondents 14 86

Graph : 6

2 Year 5 Year

73

INFERENCE: From the above table, out of 100 respondents, it is found that 14% of the respondents or customers are expecting the life of interior paint to be 2 years and the remaining 86% of the customers are expecting more than 5 years interior products. In details, if we go, No customer is expecting life below 2 years. And most of the customers are expecting their product life above 5 years. of lie, for their

74

Exhibit :7 LIFE EXPECTANCE FOR EXTERIOR PAINTS BY CUSTOMERS

Period
6 months 1 Year 2 Year 5 Year Graph :7

Frequency 5 34 61

%of Respondents 534 61

1 Year 2 Year 5 Year

INFERENCE:

75

From the above table, out of100 respondents, we can find that 61% of the customers are expecting more than 5 years of life for the exterior paints and 34% of customers are expecting more than a life of 2 years, while the remaining 5% of

respondents are expecting more than 1 year of life for their exterior paints. No one among respondents are expecting the life of interior paint products for less than 1 year.

76

Exhibit: 8 TYPE OF FINISH REQUIRED FOR EXTERIOR PAINTS BY CUSTOMERS

Type of Finish Smooth Textured Permanent Others Graph: 8

Frequency 69 18 12 1

%of Respondents 69 18 12 1

Smooth Textured Permanent Others

INFERENCE: From the above table, out of 100 respondents, A smooth type of finish is required by 69% of the respondents where as
77

18% of the respondents require a textured type of finish, and 12% of the customers require permanent type of finish, while the remaining 1% of the customers require other type of finishes.

78

Exhibit :9 TYPE OF FINISH REQUIRED FOR INTERIOR PAINTS BY CUSTOMERS

Type of Finish Distemper Emulsion Graph: 9

Frequency 77 23

%of Respondents 77 23

Distemper Emulsion

INFERENCE:
79

From the above table, out of 100 respondents, Distemper finish is required by 77% of the respondents, while the other 23% of the respondents require emulsion finishing for their interiors.

80

Exhibit :10 WOOD FINISH PRODUCT PREFERENCE BY CUSTOMERS

81

Frequency

Type of Finish Enamel(glassy) Enamel(satin) Melamine Poly Utherene (OPAL)

Frequency Respondents 87 9 3 1

%of

%of 87 9 3 1

Respondents

INFERENCE: From the above table, out of 100 respondents, it came to know that 87% of the respondents prefer for enamel(glassy) type of wood finish, where as 9% of the respondents prefer for Enamel(satin) type of wood finish, and 3% of the respondents prefer Melamine and the remaining 1% of the respondents prefer poly-utherene type of wood finish.

82

So it is clear from the above analysis respondents i.e.,87% of the respondents

that most of the are going for

enamel(glassy) type of wood finish.

83

Exhibit :11 AWARENESS ABOUT ASIAN PAINTS PRODUCTS

Awareness Yes No

Frequency 90 10

%of Respondents 90 10

Graph : 11

Yes No

84

INFERENCE: From the above table, out of 100 respondents, it came to know that 90% of the respondents are aware of Asian Paint Products , while the other 10% of the respondents are not aware of Asian Paint Products. So company can go for some more awareness programme in order to capture the remaining unaware sector.

85

Exhibit :12 AWARENESS ABOUT COLOUR WORLD CONCEPT

Awareness Yes No Graph : 12

Frequency 35 65

%of Respondents 35 65

Yes No

86

INFERENCE: From the above table, out of 100 respondents, 35%f the respondents are aware of Colour Worldtinting machines concept of Asian paints, while the other 65% of the respondents are not aware of this concept. So, the company need to communicate about the a Colour World tinting machine concept to the customers by conducting awareness programme or by advertisement.

87

Exhibit :13 CUSTOMERS CHOICE OF COMPANY FOR INTEREIORS

Name of the Company Asian Berger Nerolac Others

Frequency 57 25 8 10

%of Respondents 57 25 8 10

Frequency % of Respondents

88

INFERENCE: From the above table, out of 100 respondents, 57% of the respondents are opting for Asian Interior Paints, while 25% of the respondents are preferring for Berger Interior Paints, and 8% of the respondents are opting for Nerolac Interior Pains, where as the remaining 10% of the respondents are opting for some other companies for the interiors. So, it is clear that Asian Interior Paint products have more customer preference when compared to other brands.

89

Exhibit :14 CUSTOMERS CHOICE OF COMPANY FOR EXTEREIORS

Name of the Company Asian Berger Nerolac Others Graph : 14

Frequency 50 23 12 15

%of Respondents 50 23 12 15

Asian Berger Nerolac Others

INFERENCE:
90

From the above table, out of 100 respondents, 87% of the respondents are opting for Asian Exterior Paints, while 23% of the respondents are preferring for Berger Exterior Paints, and 12% of the respondents are opting for Nerolac Interior Pains, whereas as the remaining 15% of the respondents are opting for some other companies for the interiors. When compared to interior paints, company exterior paints are not preferred by some of the customers who were preferring Asian paint interior products.

91

Exhibit :15 TYPE OF GUIDANCE EXPECTED FROM COMPANY BY THE CUSTOMERS

Type of Guidance Provide details on recent development & products Educate on product features Appraise suitability Knowledge of sales Discount Budgeting while painting Graph : 15 on product

Frequency 38

%of Respondents 38

24 8

24 8

15 15

15 15

Provide details on recent development & Products Educate on product features Appraise on product susitability Knowledge of sales Discount Budgeting while painting Slice 6 ting

92

INFERENCE: From the above table, out of 100 respondents, it was found that 38% of the respondents are in need of guidance regarding the details on recent development and products, whereas 24% of the respondents are in need of guidance regarding education on product features. While 8% of the respondents are in need of guidance for appraise on product suitability. 15% of the respondents are in need of guidance regarding the knowledge on sales discounts. While the remaining 15% of the respondents are in need of guidance regarding the Budgeting while Painting.

93

Chapter 4

FINDINGS
As a part of my study, survey on Customer Awareness was conducted during Feburary March 2010. Important findings are concerning from the customers, have resulted from the survey. They are summarized in following paragraph.

The First and foremost observation that has been made from the study is that Asian Paints is the leader in the industry of paints. It has a very high brand equity in the market. According to observations of the survey, price is the

dominating factors, which influences the purchasing decision of the respondents followed by quality, company name, coverage and service. Comparing to competitors Asian Paint Company Prices is high. From the analysis point of view, when compared to interior paints, company exterior paints are not preferred by some of the customers, who are preferring Asian Paints interior product.

94

 At last, most of the customers are satisfied with Asian Paint products, but at the same time they require guidance regarding the recent development of the products.

Chapter 5

SUGGESTIONS
Sales promotion committee should be formed to formulate and

implement

new

market

strategies

to

compete

with

competitors and to extend the market share.

Company sales representatives must maintain relations with

construction companies as well as with painting contractors with the help of the dealers.
Company should conduct meetings, at least to make the

customers to know about the latest development in the paint industry and their products.
Companies should even concentrate on Exterior Paints as its

market share is very low.

Advertisement should be increased to update the image of

Asian Paints in the changing environment.

Company must look after, there is a close relationship between

sales representatives and dealers with the customers.

95

 Company should maintain the customer records.

Chapter 6

LIMITATIONS The respondents of the questionnaire are very busty and could not afford more time to answer. The average time to response was 5-6 minutes only. A limited sample size of 100 customers was considered because of time constraint. An

assumption is made that the sample represents the whole population. It will not carry the total

reflection of the copier market. Total sample size is comparatively less to represent the entire population. A time period of only 45 days was allowed for the completion of this product. So considering all the consumers for the study was not possible.

96

 The data was of primary nature.

So the degree

biases were relatively high as the sample was randomly selected. Study restricted to geographical territory of Lucknow city only

BIBLIOGRAPHY

Principles of Management Philip Kotler Marketing Management Rama Swamy The Hindu Guide Magazines Business India WEBSITE: www.asianpaints.com

97

Questionnaire
1) Name: 2) Address: 3) Phone No.: 4) What is your occupation? (a) Builder (c) Engineer (b) Contractor (d) Other

5) Have you experienced in painting process? (a) Yes (b) No

6) What is your approximation of budget towards painting? (a) Below Rs. 50000 (b) Rs. 50000 Rs. 75000

(c) Rs. 75000 Rs. 10000 (d) Above Rs. 100000 7) Which type of interior paint do you require? (a) Enamel (c) Polish (b) Distemper (d) Emulsion
98

8) Which type of exterior paint do you require? (a) Cement Paint (c) Emulsion (e) Snowcem 9) How many life do you expect from interior paint? (a) 6 Months (c) 2 Years (b) 1 Year (d) 5 Years (b) Textured (d) Permanent Finish

10) How many life do you expect from exterior paint? (a) 6 Months (c) 2 Years (b) 1 Year (d) 5 Years

11) Which type of finishing do you require from exterior paint? (a) Smooth (c) Permanent (b) Textured (d) Other

12) Which type of finishing do you require from interior paint? (a) Distemper (b) Emulsion

13) Which type of wood finish product required by you? (a) Enamel (Glassy) (c) Mealmine (b) Enamel (Stain) (d) OPAL

14) Are you aware about Asian Paints products?

99

(a) Yes

(b) No

15) Are you aware about colour world concept of Asian Paints? (a) Yes (b) No

16) What is your brand preference for interiors? (a) Asian (c) Nerolac (b) Berger (d) Other

17) What is your brand preference for exterior? (a) Asian (c) Nerolac (b) Berger (d) Other

18)Which type of guidance do you expect from the company? (a) Provide details on recent development and products. (b) Educate on product features. (c) Appraise on product suitability. (d) Knowledge of sales discount. (e) Budgeting while painting.

100

CONTENTS
Page No. CHAPTER -1I
About

Asian of for the

Paints Study Study

5-57
Objectives

58
Need

59

CHAPTER 2
Methodology

60 CHAPTER 3

Data 61-90 CHAPTER 4

analysis

and

Interpretation

101

 Findings

91

CHAPTER 5 Suggestion 92 CHAPTER 6 Limitations BIBLIOGRAPHY Questionnaire 93 94 95-97

102

103