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Vision of Asian Paints

“AsianPaints aims to
become one of the top
five Decorative coatings
companies world-wide by
leveraging its expertise in
the higher growth
emerging markets.
Simultaneously, the
company intends to build
Case Facts :
• The Indian Paints industry Rs. 6600
crores.

• Asian Paints –Market Leader( 44% Share)

• Wood Finishes market Rs. 300 crores


1. Solvent-based and Water-based
2. Matt and Gloss
3. Spray-on and Brushable
Types of Wood Finishes and their
Market Share in India
Wood Finish Market in India
PU

10%
Melamine

48% Alkyd
30%

Lacquers &
Speciality
12% Products
Water Based PU Wood Finishes
Advantages : Disadvantages :
• Environmentally safe • Not as durable as Solvent
• Brushable • More Expensive
• Extra training not • Less protection from
essential moisture
• No odour (associated with
Solvent )
• Not hazardous to health
• Does not yellow over time
Current and Potential Competition

• Current Competition:
Sheenlac ,Pidilite , Sirca , Linea Coats,
ICA, MRF Tyres

• Potential Competition:
Goodlass Nerolac, ICI Paints, Berger
Paints
Pricing:
Type of Wood Finish Cost to the customer
(Labour+Material)
1) French polish Rs. 10 per square feet

2) Alkyd Rs. 15 per square feet

3) Melamine Rs. 30-40 per square feet

4) PU (solvent based) Rs. 80-120 per square


feet
5) PU (water based) Rs. 120-150 per square
feet
6) Polyester Rs. 200 per square feet
SWOT Analysis
Strengths
• Brand Image of Asian Paints

• Market Leadership (44 %)

• Distribution Network

• Inherent advantages of water based


wood finishes
(environment friendly etc.)
Weaknesses

• Low Awareness about wood finishes.

• Inherent weaknesses of the product


(less protection from moisture etc.)
Opportunities

• Boom in Construction Sector,


especially international styles of living

• Consumers becoming conscious in


terms of aesthetics and lifestyle.
Threats

• Non-wood materials like plastic, cane,


acrylic, wrought iron etc. used for
furniture.

• Materials like laminates being used to


coat wooden surfaces.
INFORMATIVE AFFECTIVE
( Thinker ) (Feeler )

HABIT FORMATION SATISFACTION


(Doer) (Reactor)
Consumer Survey
Consumer Survey Objectives

• How Consumers perceive the product on


the involvement and thinking/feeling
dimensions ?

• Who is the influencer / decider ?

• Consumers perception of Factors like


Durability , Safety , Health, Environment
and the price they are willing to pay for it.
Survey Details
• Sample size: 238
• Conducted in Mumbai, Delhi, Lucknow and
Bangalore
• Questionnaire Method
• Convenience Sampling
• Sample profile : SECs A &B
• Statistical tool used : SPSS (v 11.5)
Findings
Decision-maker regarding brand

Decision-making of the brand of wood-finish


70

60

50

40

30

20
Percent

10

0
Family Carpenter /polisher Friends suggestion
Builder/Architect Cheapest Others

Decision-making of the brand of wood-finish


Importance of cost of wood finish

Ranking of the parameters: Cost of the wood finish


60

50

40

30

20
Percent

10

0
Least Important 2 3 4 Very Important

Ranking of the parameters: Cost of the wood finish


Importance of Brand
Brand of the wood-finish
50

40

30

20
Percent

10

0
Least Important 2 3 4 Very Important

Brand of the wood-finish


Preference of Finish

Matt vs Gloss
50

40

30

20
Percent

10

0
Matt Finishes 2 3 4 Gloss Finishes

Matt vs Gloss
Importance of durability

Durability
60

50

40

30

20
Percent

10

0
2 3 4 Very Important

Durability
Importance of Ease of
Application

Ease of application
50

40

30

20
Percent

10

0
Least Important 2 3 4

Ease of application
Importance of Safety, Health
and Environment (SHE).
SHE
50

40

30

20
Percent

10

0
Least Important 2 3 4

SHE
Awareness of water-based PU

Awareness of water-based
120

100

80

60

40
Percent

20

0
Yes No

Awareness of water-based
Analysis of Consumer Survey
• Influencers: Carpenter, Polisher, Contractor
• Low frequency of painting / recoating the
house
• Low awareness about wood finishes
• Very low awareness for Water-based wood
finishes
Analysis (Contd.)
• Awareness about real impact of cost not clear.

• Matt finish preferred over gloss finish.

• Majority have concerns over safety , health &


environment but are ambivalent on the investment
they are willing to make for the same.

Note: Derived out of the open ended question


in the questionnaire
Carpenters/ Polishers/
Contractors Interviews
( Sample Size : 32
Location : Mumbai )
Customer ko nahi
maloom…sirf
Finish hi sabse
kareegar ko
badiya hai…
pataa hota hai…
polish to low
society ke log
karaate hai
Water based wood
finish …iske baare
mein nahi suna..

Aaj Kal koi


scheme nahin hai
hummare liye

Aaj Kal Matt finish ka hi


zamana hai … Gloss finish
chalta hai …lekin matt
finish usse zyada chalta
hai Kai Baar Polish karte hue
saans ki takleef ho jaati
hai..
Findings
• Finishes were considered more durable
when compared with polish.

• Matt effect was better with finish than


with polish.

• Matt finish was preferred over gloss by


customers. Both SEC A and SEC B
preferred matt finish.
Contd.

• General opinion was that Customer


knowledge about product category was
extremely low.

• There was a general view that solvent based


wood finish was not safe and lead to allergy
etc.

• Most respondents had no knowledge of


water-based PU wood finish.
INFORMATIVE AFFECTIVE
( Thinker ) (Feeler )

HABIT FORMATION SATISFACTION


(Doer) (Reactor)

ASIAN PAINT WOOD


FINISHES
Target Segments

Carpenters End Consumer


Polishers SECs A & B
Contractors ‘Lifestyle-oriented’
Interior Decorators ‘Quality-conscious’
Positioning
“A premium easy to use wood
finish which offers
unmatched quality and is in
harmony with nature .”

Tag Line
‘‘In harmony with nature’’
Brand Name :
Asian Paints
Nature’s Touch
A Premium Brushable
Water Based PU Wood
Finish
Rationale:
The product is environment friendly and
brings out the natural beauty of the wood .
Pricing & Product
Pricing :
Pricing should be at same level as that of
solvent based PU wood finish .
Rationale :
• Need to create awareness
• Initiate trials
• Maybe at later stage of PLC the price can
be revised upwards as volumes pick up.
NATURE’S
TOUCH
Product :

Benefits regarding durability must be


equivalent to that of solvent based
wood finish .
Communication Strategy
Objectives

B2B B2C

B2B communication strategy B2C communication strategy


• To generate product •To increase knowledge about
awareness. category.
• Give an incentive to influencer •To involve consumers in the
to push/suggest product. purchase process.
• To initiate trial. •To convert product from low
involvement to high involvement.
Media Selection for Advertising
• Magazines
Special interest magazines like Inside
Outside, Design and Interior as well as
inflight magazines.

• Direct Mail
Mailers to customer database already
available with the company.
Contd.
• Internet
– Website: Separate link on the company
website.
– Banners: On related websites like
www.mumbaiconstructions.com
• Outdoor
– POP displays.
– Posters and sign-boards outside furniture
markets.
Promotion Strategy

• Glow-signs and other promotional


material at large hardware stores.
• Conventions/Workshops for
Architects and Interior Decorators
• Workshop for carpenters
– To build awareness and product
demonstration and offer incentives
to promote usage
Tie Ups
• Tie-up with Builders:
Hiranandanis, Ansals, DLF- to promote product
usage in their fully furnished flats on sale.

• Tie-up with Corporates and Hotels:


To initiate talks for getting contracts for revamp
and maintenance of their office furniture.

• Tie-Up with major furniture


manufacturers/retailers to use the product
PR Activities
• Press conference: journalists to be
invited for an information and
question-answer session. Press
releases and press kits to be issued.
• Press Publicity : articles in the media
about its eco friendliness , no negative
effects on health and safety of users
and applicators
Creative Strategy
The role of Creative Strategy would be to:

• Provide information.
• Establish the positioning.
• Bring about change in consumer
behavior.
The Creative Brief
• Objective: Build Brand Awareness

• Theme: Nature’s Touch is the only


Environment-friendly PU Wood Finish
available.

• Support: No Odour; Non hazardous; Does


not emanate fumes; Does not yellow over
time; Non oil-based.
Media Budget

PR activities 10 lacs

Magazines 20 lacs

POP 10 lacs

Misc. 8 lacs
Alternative Distribution
Channels
• Exclusive “Asian Paints-Furniture Clinics.”

• One furniture consultant per Clinic.

• Provision of labor, with Branded uniform, to


provide doorstep service.

• ‘Furniture Corners’ in furniture retail outlets.


Contd..
• Organized retailers like Shoprite, Big
Bazaar, Lifestyle etc.

• Direct selling through the existing


Asian Paints helpline, Home Solutions.

• Large Building Contractors who provide


furnished flats
Premium Brushable Water Based PU
Has your wood Wood Finish Touch ?
got Nature’s
•Environmentally safe.
•Brushable and easy to apply.
•Provides durability.
•Gives the furniture an exquisite and
elegant look i.e the look it
deserves.
•Doesn’t yellow over time.
•Doesn’t emit harmful odour.

For dealership and more details:


Call on Toll free no.: 1 - 600 - 22- 5678
Website: http://www.asianpaints.com
Dealers: - Sehgal Enterprises(2508116), Jain Iron Store(220488);-Jain Trading
Co(2216753), Jainsons Traders(203104), Goyal Paints & H.W(2210072), Garg Paint & H.W
Store(2221327), Garg Paint & H.W Store(2221327), Goyal Iron Store(2216001),
N.K.Traders(2353144), Delhi Paint And Hardware Store(2214446), Jainson Paint & Hw
Store(2221831), Punjab Building Store(2211843)
Give your furniture Nature’s Touch…
Call Asian Paints Home Solutions at
1 - 600 - 22- 5678
Premium Water Based PU
Has your wood got the
Nature’s Touch……… Premium Water Based

……..
For dealership and more detail: PU Wood Finish
Call on Toll free no.: 1 - 600 - 22- 5678 Website:http://www.asianpaints.com
Has your wood got the
Nature’s Touch………
……..
For dealership and more detail:
Call on Toll free no.: 1 - 600 - 22- 5678 Website:http://www.asianpaints.com
Premium Water Based
PU Wood Finish
Has your wood got the
Nature’s Touch…………
…..
For dealership and more detail:
Call on Toll free no.: 1 - 600 - 22- 5678 Website:http://www.asianpaints.com
Premium Water Based
PU Wood Finish
Has your wood got the
Nature’s Touch………
……..
For dealership and more detail:
Call on Toll free no.: 1 - 600 - 22- 5678 Website:http://www.asianpaints.com
Premium Water Based
PU Wood Finish
THANK YOU
Aparajita Bahadur
Mayank Dwivedi
Rajat Mittal