asian paints
DESCRIPTION
expansion strategy in international marketTRANSCRIPT
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Welcome To The
PresentationGlobal Expansion Strategy
of
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Group Members
• Md. Mehedi Hasan• Kazi Nurul Islam Sohel• Ayesha Siddika• Razib Chandra Pal
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Asia’s 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
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Asian Paints in South Asia (India, Bangladesh, Nepal and Sri Lanka)
SCIB Paints in EgyptBerger 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
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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
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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
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Market Share of Asian Paints(India)
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Region wise Asian Paints Sales Contribution
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Competition Analysis
Company Industrial Market Decorative Market
APIL 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.
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SWOT Analysis Strength:• M
arket leader in overall paint market (44%) & in decorative paint market in India (38% )
• Pricing policy oriented to all kinds of customer
• Strong in inventory control
• Widest product range in terms of products, shades
• Nation wide coverage of the market
Weakness:• I
ndustrial paint sector only 15% share
• No tie up with foreign manufactures although it has units in several countries.
• Seasonal demand and hence in off seasons it can lead to cash flow problems
SWOT
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Competitors
1. Kansai Nerolac2. Berger Paints3. Akzo Nobel4. Shalimar Paints5. Jenson & Nicholson
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Market Targeting
Initially targeted smaller towns.
Then they targeted urban areas.
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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
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Marketing Mix (Product and Price)
Sold over 800 million liters of paints in 2010-11 It crossed the Rs.6322 crore figure
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Place and PromotionPlace: 4 manufacturing units 6 regional distribution center 15,000 Dealers (Urban + Rural) 90,000 Sub dealers Exclusive 3000 Asian Paints
store 4500 Color world stores
Promotion: Advertising, Public relations,
Sales promotion, External communication, Events & exhibitions.
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Alternative Mode of Entries
Asian Paints using following mode of entries for their global expansion:
Joint Venture Merging Acquisition
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Priority list
1. Indonesia2. Singapore3. Philippines 4. Malaysia5. Thailand
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Indonesia World’s 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.
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Asian Paints Exit Operation From China & Malaysia….
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China
Berger Paints (China)
Company Ltd. Ningbo.
It is aggressively expanding its
distribution network.
Building a record of successful
projects.
100% market share.
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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.
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Continuing…
The firm is expecting a "minor gain"
Competitors are increasing gradually
Competitive pressure will be strengthen
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Thank You……