SANGHVI INNOVATIVE ACADEMY, INDORE

(2009-11)

Synopsis of Major Research Project

On
CONSUMERS PERCEPTION OF ASIAN PAINTS
WITH RESPECT TO PRICING AND PROMOTION
Product: Asian Paints Royale Emulsion

Submitted To: Submitted By:

Prof. Mudita Mishra Rajesh Sharma
MBA (III) sem
INTRODUCTION

The company has come a long way since its small beginnings in 1942. Four friends who were
willing to take on the world's biggest, most famous paint companies operating in India at that
time set it up as a partnership firm. It started in Kapadwanj in the Kheda district in the state of
Gujarat as a collection of small plants. Over the course of 25 years Asian Paints has became a
corporate force and India's leading paints company. 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 manufactures a wide range of paints
for Decorative and Industrial use. Its product portfolio includes wall paints, metal paints, wood
finishes, primers and others. The companys market segments include decorative and industrial
coating segment. The industrial coating segment consists of automotive coating, powder coating
and protective coating. Besides Asian Paints, the group operates around the world through its
subsidiaries Berger International, Apco Coatings, and SCIB Chemicals. One notable aspect that I
personally like about Asian Paints is that, it has been able to expand globally without taking on
too much debt. It is able to support its expansion plan from its internal sources.
REVIEW OF LITERATURE

Indian paint industry on a structural growth path

The Indian paint industry (c.US$4.5 bn) is one the fastest growing consumer segments. Industry
growth is a direct derivative of economic activity and has historically grown 1.5-2x faster than
GDP. Decorative paints form more than 70% of the domestic market (75% of which is repainting
demand), and is therefore, dependant on growth in housing demand and refurnishing activity).

Asian Paints is the largest player in the industry (with a 50% market share), and has a wide
distribution network (2x its nearest competitor), which we believe is the most critical element of
this business (and a significant entry barrier). Its wide product range has helped the company
capture the market both at the low end as well as benefit from the faster growth of higher-end
emulsions. In addition, it has built a strong international business, where the focus is on
leveraging its experience in the Indian industry to similar emerging markets abroad.

Asian Paints best placed to capture industry trends

It enjoys a 50% market share in decorative , while it is the second- largest player in the
industrial segment with a market share of 25%.
A network of over 27,000 dealers (2x its nearest competitor) and innovation in
distribution (tinting machines) have helped Asian Paints maintain its leadership in this
market.
A wide product range, with presence across categories and price points.
Asian Paints has also established a strong international business, where the company has
sought to leverage its experience in the Indian industry to similar emerging markets
abroad.
OBJECTIVE OF THE PROPOSED STUDY

To find out the customer preferences among various paint brands in India.
To assess the parameters that influence the purchase of paints.
To find out the weakness and complaints in Asian paints if any.

RESEARCH METHODOLOGY

Data will be collected in the following two ways:

1. PRIMARY DATA
A. Self structured questionnaire having 10 12 closed ended and 2 open ended
questions.
B. Sample size would be of 100 respondents.
C. The sampling frame would consist of consumers visiting hardware shops to buy
paints.

2. SECONDARY DATA
Secondary data will be collected through following sources:
A. Company website
B. Journals
C. Magazines

SCOPE OF THE STUDY

This study can be used by Asian paints to further understand their products perception in the
market and also by any other paint manufacturer (Berger, Nerolac or even Asian Paints) to
launch a new product in the market. The organization can understand which factors influence
the purchase made by the consumer. Also, the findings of this study can be used in future by
other researchers conducting similar or related studies.

REFERENCES
http://www.asianpaints.com

http://en.wikipedia.org/wiki/Asian_Paints
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