Swot On Paint Company's
Swot On Paint Company's
Asian Paints
Asian Paints is an Indian paint manufacturing firm established since 1942. It has, over its 70+
years of existence become the leading paint company in India. Apart from the superior quality of
paints, they are known for winning the nation’s heart with their colorful and quirky
advertisements. Their Marketing strategy has been the key differentiator that has made the
company as successful as it is today.
An overview of Asian Paints’ marketing strategies, in an effort to try and decode their success
and learn about their journey. We shall be covering the company’s product portfolio with its
distinctive advantages and marketing campaigns over the years.
Headquartered in Mumbai, Asian Paints is currently the largest paint company in India and the
third-largest in Asia. The Asian Paints group operates in 19 countries and has different
subsidiaries, such as:
o Berger
o APCO
o Scib Paints
o PPG Asian Paints
o Taubmans
o Sleek Kitchens
o Kadisco and many others.
It is India’s leading paint group with an annual total revenue of Rs 20,515.56 Crores in the
Financial Year 2020. The company manufactures paints in the category of decorative,
automotive, and industrial segments. The company also manufactures various accessories as well
like wall primers, wood primers, putty, strainers, etc.
Asian Paints Marketing Mix
A marketing mix is the collection of strategies or initiatives that a company uses to promote the
demand for its brand or product. A standard marketing mix- Product, Price, Promotion and Place
– comprises the 4Ps. Let us take a look at Asian Paints’ Marketing Mix:
Product Strategy
Asian Paints’ core product is decorative and industrial paint. Along with that, the company offers
solutions and services for home paintings. Instead of having one homogenous target audience,
the company uses a differentiating targeting strategy to cater specific products to different
segments of customers, as explained below:
– Asian Paints Royale targeted at the premium segment
– Apcolite, tractor emulsion, tractor distemper targeted at the economy segment
Asian Paints also provides protective coatings, undercoats, primers and putties. The products in
the marketing mix of Asian Paints, hence, provide complete painting solutions including
accessories and tools.
Price Strategy
Asian Paints follows different pricing strategies according to the targeted segment. As mentioned
above, the Royale product range is marketed towards high-income groups and hence, is priced
higher.
Asian Paints follows a value-based pricing approach for the medium and economic segments. As
per the exclusive features in the product category, the price also varies. The pricing decisions are
often influenced by the raw material used to manufacture paints, as well as competitors’ prices.
The company’s success can also be attributed to its high incentives for distributors. Summed up,
Asian Paints has adopted a flexible pricing policy.
Promotion Strategy
Over the years, Asian Paints has carried out various highly successful promotional activities.
One of its most notable being the brand mascot Gattu, a cartoon created by R.K Laxman in 1954
that went on to become a popular and recognized figure for more than four decades.
The company’s main focus is being all about families, and emotionally connecting with the
customers. Many famous public figures have been Asian Paints brand ambassadors such as
Akshay Khanna, Ranbir Kapoor, brother-sister duo Saif Ali Khan and Soha Ali Khan, with the
most recent being Deepika Padukone.
A major promotional tool used by them is providing incentives to their distribution network.
Presently, a lot of their promotion is also executed through their social media, touched upon in
detail later, when speaking of their digital media presence.
Place Strategy
Asian Paints has operations around the world. They are carried out through a network of five
regions worldwide, via the Caribbean region, the Middle East region, the South Pacific region,
South-East Asia and South Asia, with large resources spent on R&D centers.
Asian Paints’ major competitive advantage is its well-established, extensive distribution network.
The organization targets all- semi-urban, rural and urban areas. It launched an open-door policy
for dealers after entering the retail market and began a national marketing and distribution
operation. It has different manufacturing locations and is India’s largest. This dynamic network,
along with sales managers, executives and the sales team, manages all development and delivery
phases.
Asian Paints is a massive organization and faces competition from all sides. Now that we have
covered their marketing mix in-depth, let us understand their competitors.
Competitive Analysis
Asian Paints is the market leader, with currently over almost 30% market share. Its biggest
competitors are- Berger Paints, Kansai Nerolac, Indigo Paints, Akzo Nobel, Sirca Paints and
Shalimar Paints. Asian Paints’ competitive advantage is its distribution strength.
Its product portfolio, comprising the exhaustive list of painting needs, is also a competitive
advantage along with its visibility and geographical reach.
o The company’s stand-out feature is its range of exclusive signature stores providing
consumers with expert assistance from trained professionals offering customized
furnishing and decoration solutions. Many such measures are taken by the company to
reduce the influence of painters over the customers’ choice of brands, in a novel way over
the years.
o Prospective customers can even directly call the company’s helpline to check out the
product offerings and get a direct quote.
But ultimately, these advantages are imitable. What the company needs to do for long-term
leadership, is generate more demand by way of intermediaries.
o In the paint business, intermediaries like painters, contractors, designers, decorators, etc.
have a high influence over consumers’ purchase decisions.
o Asian Paints could use these intermediaries to their benefit, by either utilizing them as a
marketing arm to promote their products as spokespersons directly to the end-user.
o Or, the company could sideline intermediaries and open up a service arm, cutting costs
for consumers via bundling services and thus, increasing demand via value addition.
Let us now look at the reason the company has been able to achieve its status as the nation’s
leading brand, i.e., its successful marketing strategy.
o Post Gattu, Asian Paints, associated with Ogilvy and Mather, launched a new
marketing strategy by focusing on festive occasions with their now signature
tagline “Har Ghar Kuch Kehta Hain” focusing on festivals such as Diwali and
Pongal, occasions such as weddings, etc. The organization marketed it as an
opportunity to paint homes by engaging on an emotional level. They still market
heavily during festivals, by showcasing festive decor and celebrations, asking
consumers to do the same and share using their hashtags!
o The comedic “Wah Sunil Babu Wah” ad became extremely successful with
audiences and is still remembered and associated with the brand. The concept was
humorously poking at the fact that their paint maintains its freshness and
longevity even through the various surrounding and life changes.
o The company then rebranded to appeal to consumers through high-profile brand
ambassadors such as Deepika Padukone and Ranbir Kapoor. Depicting a switch in
now communicating sophistication and innovation. The company still uses this
strategy with newer public figures such as Radhika Apte and Rana Daggubati.
o The company conducts many campaigns on their YouTube, via short video series. They
focus on geographical regions and share their painting suggestions. They also then host
competitions for these cities/states.
A modern-day marketing strategy is incomplete without a comprehensive digital marketing
component. Let us see how they brought their iconic marketing style into the digital format.
2. Berger Paints
Berger Paints is an Indian multinational paints company in India. They are also the second-
largest paint company. The company offers quality-based colorful paints to the customers. The
guiding principle of the company is its performance, customer priority, ethical practices, and
valuing people.
As you see from the above image in this campaign, the users had to solve a puzzle and get a
chance to win amazing prizes by sharing their scores with their connections on social media.
Therefore, this campaign has created a huge engagement rate on all social media platforms.
Thus, they have a strong presence on social media and therefore it comes up with innovative
ideas to promote its brands that eventually leads them to huge sales in the market.
Instagram
Twitter
As we see from the above images the company has a strong market base with a huge number of
followers. Being one of the leading paint companies in India, it has a strong customer’s trust in
the brand which creates a major impact on the company.
So, we learned about the presence of Berger Paints in the digital world. Next, we’ll see the
competitors of Berger Paints.
Shalimar Paints was the first large-scale paint manufacturing operation in South Asia and thus
has extensive industry knowledge. It has a large choice of decorative products in both the
interior and exterior categories, as well as paints in all price ranges, so it can serve consumers
from all walks of life.
Kansai Nerolac Paints Ltd
One of India’s leading coating companies and the market leader in powder and automotive
coatings. Kansai Paint Company Limited is a subsidiary of Kansai, and Kansai’s technological
edge has aided the company in innovating to better meet client needs.
Asian Paints
Asian Paints is India’s largest paint manufacturer and Asia’s third-largest. The company’s
financials are solid. With its four subsidiaries, Berger International Limited, Apco Coatings,
SCIB Paints, and Taubmans, Asian Paints has a substantial international presence. They have a
lot of room for expansion, especially in the industrial paint area.
Berger Paints currently enjoys a 55 percent market share, with the remaining 45 percent held by
other multi-national and local businesses. Competitors of Berger Paints sell their products a
little bit expensive. For instance, Asian paints sell for Rs. 70 whereas Berger Paints sells them
for Rs. 60 which is budget-friendly with good quality.
This is how Berger Paints works in improving its products by managing its marketing strategies
through various platforms of the digital world.
Hence this concludes the marketing strategy, competitors, digital presence of Berger Paints.
Let’s wind up with the final note.
This case study on Berger Paints clearly states all the marketing strategies that the company is
using to spread awareness about its product and services and raise engagement with its clients
using a suitable mix of digital media and offline marketing strategies to overcome this problem.
It has a strong Digital Marketing strategy but they have to keep evolving their strategies with
time to make them relevant. The company needs to maintain their reputation and keep doing the
amazing work they are already doing.