asian paints expantion strategie

7/28/2019 Asian Paints expantion strategie

1/24

Welcome To

ThePresentation

Global Expansion Strategyof


2/24

Group Members

Md. Mehedi Hasan

Kazi Nurul Islam Sohel

Ayesha Siddika

Razib Chandra Pal


3/24

Asias 3rd largest paint company.

38% market share in India.

Currently is in the 13th position.

With a turnover of Rs 77.06 billion in 2011.

Operates in 17 countries.

It has 24 paint manufacturing facilities.

Servicing in over 65 countries.

Trying to make position among the top 10 players.

Overview


4/24

Asian Paints in South Asia(India, Bangladesh, Nepal and

Sri Lanka)

SCIB Paints in Egypt

Berger in South East Asia,Middle East, Caribbean

Apco Coatings in South

Pacific (Fiji, Tonga, Solomon

Islands and Vanuatu)

Taubmans in South Pacific

(Fiji and Samoa)

Global Presence
http://www.asianpaints.com/http://www.scibpaints.com/http://www.bergeronline.com/http://www.apcocoatings.com/http://www.apcocoatings.com/http://www.apcocoatings.com/http://www.apcocoatings.com/http://www.bergeronline.com/http://www.scibpaints.com/http://www.scibpaints.com/http://www.scibpaints.com/http://www.asianpaints.com/http://www.asianpaints.com/http://www.asianpaints.com/


5/24

It started the journey on Foras Road, Bombay in

1942.

The name was picked randomly from a telephone

directory.

After 25 years it became India's leading paints

company in 1968.

Journey of a long way over 69 years.

History of Asian Paints


6/24

The Indian Paint industry is estimated at 170 billion.

Organized and unorganized players at ratio of 70:30.

Highest growth during the festival seasons.

It expected to capture 59% of the Indian Paint

industry by 2015.

Market Size


7/24

Market Share of Asian Paints

(India)


8/24

Region wise Asian Paints Sales

Contribution


9/24

Competition Analysis

Company Industrial Market Decorative MarketAPIL 15% 38%KNPL 42.50% 10%

Berger Paints 14.20% 11.20%ICI 7.80% 7.80%

Jenson & Nicholson 8.10% 5.50%Others 12.90% 38%

More than 12 players in the organized sector. Over 2,000 in the unorganized sector.


10/24


11/24

SWOT Ana ys sStrength:

Market leader in overall paint market(44%) & in decorative paint market in India(38% )

Pricing policy oriented to all kinds ofcustomer

Strong in inventory control

Widest product range in terms ofproducts, shades

Nation wide coverage of the market

Weakness:

Industrial paint sector only 15% share

No tie up with foreign manufacturesalthough it has units in several countries.

Seasonal demand and hence in offseasons it can lead to cash flow problems

Opportunity:

It can acquire / Increase market share in

Industrial paint sector. Developing market in automobile industry,

which accounts for 50% of Industrial paintmarket.

Introducing Water based Paints.

Repositioning of existing Brands in RuralMarket.

Broadening of Distribution Network.

Threat:

Competitors have gone in for hi-tech insta-colour spot mixing.

Divestment in few foreign markets.

Competition is catching up fast, hi-techfacilities gives abundant choices e.g.Nerolac is advancing rapidly in Industrialmarket.

SWOT


12/24

Competitors1. Kansai Nerolac

2. Berger Paints

3. Akzo Nobel

4. Shalimar Paints

5. Jenson & Nicholson


13/24

Market Targeting

Initially targeted smaller towns.

Then they targeted urban areas.


14/24

Market Segmentation Decorative Segment:

Royale

Gattu Synthetic

UTSAV Enamel

Tractor Acrylic Distemper

Apex

Industrial Sector:Apcomin Synthetic Enamel

Apcomin Synthetic Powder

Stainer

Premium surface & fillers Automotive Sector:

Allumium Paint

Fiber Paint

Apcolite Hammertone finish


15/24

Marketing Mix

(Product and Price) Sold over 800 million liters of paints in 2010-11 It crossed the Rs.6322 crore figure


16/24

Place and PromotionPlace:

4 manufacturing units

6 regional distribution center

15,000 Dealers (Urban + Rural)

90,000 Sub dealers

Exclusive 3000 Asian Paintsstore

4500 Color world stores

Promotion: Advertising, Public relations,

Sales promotion, Externalcommunication, Events &exhibitions.


17/24

Alternative Mode of

EntriesAsian Paints using following mode of

entries for their global expansion:

Joint Venture

Merging

Acquisition


18/24

Priority list

1. Indonesia

2. Singapore3. Philippines

4. Malaysia

5. Thailand


19/24

IndonesiaWorlds 4th most

populous country.

Valued at $1,276

million in 2011

Expected to grow to$1,444 million by 2013

60% by value and 79%

volume.

High brand awareness,competitive pricing,

extensive reach, and good

dealer networks.


20/24

Asian Paints Exit Operation

From China & Malaysia.


21/24

China

Berger Paints (China)

Company Ltd. Ningbo.

It is aggressively expanding itsdistribution network.

Building a record of successful

projects.

100% market share.


22/24

Malaysia

Berger International Sdn Bhd

was founded in 1997 and is

based in Klang, Malaysia. 96% market share in the

Malaysian Market.

Asian Paints Has only 4%

market share.


23/24

Continuing

The firm is expecting a "minor gain"

Competitors are increasing gradually

Competitive pressure will be strengthen


24/24

Thank You

asian paints expantion strategie

Documents