Strategic management mini project
MUHAMMMED NISHAD P
MBA 4th SEM
ABOUT ASIANPAINTS
Asian Paints was founded founded by Champaklal H Choksey, Chimanlal N
Choksey, Suryakant C Dani, Arvind R Vakil in 1942. The company has come a
long way since its small beginning in 1942. It was set up as a partnership firm
by four friends who were willing to take on the world’s biggest, most famous
paint companies operating in India at that time. Over the course of 25 years,
Asian Paints 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 1967. 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.
Asian Paints has come a long way in becoming India’s largest and Asia’s third
largest paint company, with a turnover of ₹ 10418.78 Crores. Asian Paints
operates in 17 countries and has 23 paint manufacturing facilities in the world
servicing consumers in over 65 countries. Asian Paints has always been a leader
in the paint industry, pushing new concepts in India like Colour Worlds, Home
Solutions, Colour Next, and Kids’ World. Asian paints established signature
stores, operating under the brand name of ‘colour with Asian Paints’, there are 3
stores, one each in Delhi, Mumbai and Kolkata with the objective of helping
customers through the painting cycle by giving them inspiration and expert
advice. There is no sales being conducted through these stores. Consisting of
large size display panels, experts for guiding the customer through the painting
process, the stores provide a perfect environment to showcase the flagship
finishes
BASIC INFORMATION ABOUT COMPANY
Type Public
Industry Chemicals
Founded 1942
Founders Champaklal H. Choksey
Suryakant C. Dani
Arvind R. Vakil
Chimanlal N. Choksi
Headquarters Mumbai, Maharashtra, India
Area served Worldwide
Products Basic and industrial chemicals, decorative paints,
industrial (re)finishing products, coatings
Revenue ₹15,852 crore (US$2.5 billion) (2016)[1]
Number of 6,067 (2016)
employees
Website www.asianpaints.com
ASHWIN CHOKSI
Ashwin Chimanlal Choksi is an Indian entrepreneur, promoter
and non executive chairman of Asian Paints Ltd, India’s largest
paint company. Ashwin is among the top 100 richest Indians and
Forbes global billionaires.
Born: 1944, Mumbai
Residence: Mumbai
Education: Master of Commerce
Children: Manish Choksi
VISION
To be 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 long term value in the Industrial coatings business
through alliances with established global partners.
MISSION
To provide paints as per market demand, ensuring desired
level and quality of customer (dealer) service, continued
availability of the right product mix of right quality at the
right time.
Objective
✔ The learning objective for the industry analysis is to determine
the opportunities and threats that exist for firms within a
competitive environment.
✔The learning objective for the firm analysis is to determine the
strengths and weaknesses of a firm and to determine the core
competence that can be built on to establish a competitive
advantage.
✔The final step is to develop a sound business plan to ensure the
survival of their chosen firm within its competitive environment
SWOT ANALYSIS
STRENGTH:
Market leaders with 55% market shares.
Strong in inventory control.
The pricing strategy is oriented to middle and lower end
consumers.
Widest product range in terms of products, shades, pack
sizes.
Comprehensive nation wide coverage of the market.
Brand name with 68 year experience.
WEAKNESS:
Seasonal demand and hence in off seasons it can lead to
cash flow problems.
Innovation in developing new product is inadequate.
Weakness on the technology front in industrial paints.
In industrial paints, AP has only a 15% market share.
OPPORTUNITIES:
Acquiring/ increasing market share in Industrial paint
sector.
Competitors have gone in for high technology compare
to AP.
The automobile industry accounted for 50% of the
industrial markets.
THREATS:
Domination of few foreign companies.
Competition is catching up fast, hitech facilities gives
abundant choices.
NUMBER OF DIFFERENT DIVISIONS AND THEIR PRODUCTS
Emulsions Division
Asian Paints manufactures two types of emulsions interior and exterior with more than 1800
colour shades.
Products:
Wood Finishes Division
In the wood finishes category, the high end finishes like Polyester and Polyurethane (PU)
are manufactured by Asian Paints. It also have two categories interior and exterior. It
launched full range of clear and opaque colours across different products and exclusive
special effects in wood and glass coatings. It also collaborated with Italian company for wider
range of products
Products:
Wall Coverings Division
Asian Paints with the product name as ‘Nilaya’ have range of wallpapers has one of the
largest variety compiled in partnership with the leading manufacturers in the world and
comprises of designer handcrafted range, ‘paintable’ range, thematic collections and decals.
Nilaya have a wide range of products from many design patterns offering the customer the
wide range of options to décor their homes and offices.
Products:
Paint Application Tools Division
Asian Paints had launched a range of paint application tools in collaboration with Harris
Brushes of UK in 2012-13. In 2014-15, the tools and implements portfolio was strengthened
by launch of new products. Sustained field marketing effort has resulted in the wide
acceptance and good growth in this segment. It have Rollers, Brushes and Accelerators in
product varieties in this category.
Products:
Kitchen and Bath Division
The kitchen and bath businesses have been co-branded with Asian Paints and ‘Sleek’ and
another company ‘Essess’. The “Sleek by Asian Paints” and “Ess Ess by Asian Paints”
approach has been received very positively by the existing network and consumers, as this
brings the expertise of the individual businesses together with the credibility and trust of the
“asianpaints” brand.
Products:
Adhesive Division
Asian Paints have a product in this category offering customer a wide variety of adhesives
based on the material like wood, glass, stone, rubber and for general purpose.
Products:
MARKETING STRATEGY
Company is using different techniques such as advertising
Campaign, sales promotion, personal selling, direct
marketing and public relation to increase sales.
A total amount of 85 crore is spent on the ad campaign by
asianpaint. Their particular ad campaign ‘Mera Walla Blue”
“har ghar kuch kehta hai” are being liked by the customer.
Online marketing for urban customer: Asian paint online
marketing system is helping. The company in lot of ways,
providing all the necessary information to the customer. It is
an unique way of promotion.
Corporate Strategy of Asian Paints
...AsianPaints, today, is India's largest paint company and Asia’s third largest
paint company, with a turnover of Rs 96.32 billion. The Asianpaints company
originally named as Asian Oil Company was formed in 1973. Today it operates
in 17 countries with 24 manufacturing facilities servicing consumers in over 65
countries. Forbes global magazine, US, ranked Asianpaints among the best 200
small companies for 2002-03 and presented the ‘Best under a billion’ award. It
is the only paints company to receive such recognition .It was also included in
Asia’s Fab 50 list by Forbes Asia magazine. It deals in a wide range of
decorative and industrial use paints and its net profits are up by 39.5% in the
financial year of 2012 showing a quantum leap in its operations. The company
has come a long way from its humble beginnings in 1942 under the partnership
effort of Champak Lal H Choksey,ChimanLal N Choksey, Suryakant C. Dani and
Arvind R Vakil. It started as ‘The Asian Oil and Paint Company’ with the vision
of building a successful and efficient enterprise in the oil sector. It began with
manufacturing linseed oil, castor oil and some varnishes mainly for industrial
purposes.
Business level strategy
