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Marketing Plan. submitted by Francis Pinto 17 Shilpa Kulkarni 31 Pradnya Morje 36 Amol Rane 43 Tushar Wadivkar 57 Aditya Divadkar 58. Welcome. Asian Paints (I) Ltd. India’s largest manufacturer of paints

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Welcome

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  1. Marketing Plan submitted by Francis Pinto 17 Shilpa Kulkarni 31 Pradnya Morje 36 Amol Rane 43 Tushar Wadivkar 57 Aditya Divadkar 58 Welcome

  2. Asian Paints (I) Ltd. • India’s largest manufacturer of paints • Leader in the paint industry for over three decades, controlling 45% of the Indian paint market. • It out performed industry growth during the year 2002 • New product launches and excellent growth in exterior finishes have been the key driver of growth.

  3. Global Reach Asian paint is present in 24 countries across the globe as : Asian Paints India Bangladesh Oman Sri Lanka Nepal Mauritius Apco coatings Australia Fiji Soloman Island Vanuatu Tonga Berger Baharin Barbados China Hongkong Jamica Malaysia Malta UAE Trinidad & Tobago Thailand Singapore SCIB Chemicals Egypt

  4. Asian Paints Industrial Coating Limited ( APICL ) • A wholly owned subsidiary of the company was incorporated on 1st October, 2001 and acquired the powder coatings business of Hawcoplast Chemicals Ltd. • The acquisition has been funded from acquits of Rs. 80 million and a loan of Rs. 60 million financed by Asian Paints (I) Ltd. • The subsidiary commenced operations with effect from 1st November 2001. It sells its products under the Hawcoplast & Apcoshield brand names.

  5. Industrial Paint Market (2002-2003)(Value in crores)

  6. Auto Industrial Coatings (02-03) MS among Top 6 Competitors Non Auto Industrial Coatings (02-03) MS among Top 6 Competitors

  7. Paint Market • Low market penetration • Worldwide technology not available • Huge scope of market development • Absence of product hierarchy based on benefits – largely based on price • Network driven market, not consumer driven

  8. Powder Coatings

  9. Industrial Coatings (02-03) % Business Share

  10. Global reach of APICL International Market for powder coating : The portfolio of products offered by Apco coatings covers a large spectrum of Architectural, wood, auto, marine and industrial coatings. It has brands that are truly global and sell under the following brands : Apcolite Decotrade Decora Touch wood Timber care Auto care Royal Asian Paints has 27 manufacturing units all over the world, which includes Australia, Fiji, Soloman Island, Tonga, Vanuatu, South Asia, Middle East Africa, Oman, Mauritius, Sri Lanka Bangladesh Nepal

  11. Volume in MT 25000 20000 15000 12682 11760 10982 10500 10000 5000 0 2000-01 2001-02 2002-03 (Est.) 2003-04(Proj.) Powder Coating - Market Size (MT) 8.5 % 7.08 % 4.5 %

  12. Powder Coating% Market Share 2002-03

  13. Powder Coating - APICL Performance (Volume in MT) M.S. 12.07 % M.S. 13.53 % M.S. 13.60 % M.S. 14 %

  14. Powder Coatings Distribution Channel (Top 6) (Volume in MT )

  15. Powder Coatings Industry Consumption 2001-02 (Volume in MT)

  16. Powder Coatings Acquisition of Hawco Plast Acquired Hawcoplast business in 2001-02 • Impact • APICL become no.2 player in the industry (APIL-344 MT + HAWCO-1142 MT) • Acquired a large and loyal dealer base. • Acquired a manufacturing plant at Sarigam with installed capacity of 1500 MT / year. • Acquired a proven sales & marketing team which can handle both brand.

  17. APICL Vs. the competitors • STRENGTHS WEAKENESS • Market Share of 13.6 % with established brand name • Plant in North , West India which are the major market • Wider distribution channel • Capacity increase due to acquisition • Global reach : 24 countries across the globe • Technology tip-up with Oxyplast / Belgum OPPORTUNITIES THREATS • 27.6 % market is captured by nichers, which can be acquired • Poor reach to direct user • Immediate competitor Berger has MS of 12.4 % which is just 1.2 % less than Asian Paint

  18. Projected Sale of Powder Coating 2003-04 (Volume in MT )

  19. Marketing Strategies Product • New version of product • offer more choices • expand market • New generation products and eco-friendly alternatives like water based enamels and elastomeric paints.

  20. Marketing Strategies contd…. Price • Streamlining costs through operational and technological efficiencies. • Reduction in import duty form 30% to 25% • Application of Supply Chain Management & reduction in the working capital .

  21. Marketing Strategies contd…. Place Markets across the globe are Oman Mauritus Nepal Australia Soloman Island Vanatu Fiji Tonga & Egypt Scope for new markets Bahrain China Jamaica Malta Trinidad Singapore Barbados Hongkong Malaysia Myanmar UAE Thailand Sri Lanka & China • Last year no new market were developed from India • New markets have been penetrated by APICL from its overseas units. New markets can be developed in : Sri Lanka Bangladesh

  22. Marketing Strategies contd…. Place ….contd… Sri Lanka • Acquired controlling stake in 2nd largest paint company in Sri Lanka, Delmege Forsyth & Co. (Paints) Ltd. • The company has 12% market share and excellent brand name in Sri Lanka. • Well developed distribution channel Bangladesh • Entered into joint venture agreement with Confidence Cement Ltd. • Will manufacture and market a vide variety of products • Manufacturing facility is coming up at Gazipur Also efforts can be made for market penetration for full capacity utilization in middle east, Oman, Baharain, Kuwait, Qutar, UAE & Libya.

  23. Marketing Strategies contd…. Promotion What is taking Asian Paints closer to customers : • Helpline through telephone • Access to website • Home solutions • These initiatives were taken by Asian Paints to attract customer to paint. • Focus is to become a strong player in Industrial coating business

  24. Marketing Strategies contd…. Promotion….contd… Promotion will include • Public Relations • Target large number of direct users • Special awards / bonus to marketing team. • Direct communication to manage image • Some sort of a help line, delegated exclusively for industrial selling can be generated • 30% reduction in advertising cost and use it for promotion

  25. Monitoring & Controlling • The responsibility to achieve the target will be of the Marketing Manager • Marketing team along with sales team will review the strategies • GM – Marketing will be responsible for deciding and implementing strategies for promotion mix • If in a particular quarter, target is not reached, VP – Marketing should be consulted

  26. Industrial Selling Business Module 1 To 1 Zero Marketing Defects Develop customer Least Cost / Base / loyalty other benefits Focus

  27. Thank you

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