Asian Paints is one of those companies which have identified trends in the business environment and have brought innovative strategies to the market.
So, let’s go through the marketing strategies and business model of Asian paints to help you know more about them in detail.
About Asian Paints
The company started in 1942 and was the most famous paint company operating in India at that time. Driven by its strong customer base, Asian Paints has been the market leader in paints since 1967. The company provides home improvement and decor services and also offers bath and kitchen products.It is a leading multinational paint company headquartered in Mumbai. It is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home decor, bath fittings and providing various other related services.
It has its manufacturing locations in 15 countries with 26 manufacturing facilities serving customers globally around 60 countries.
1. Products Offered by Asian Paints
Now we are gonna state the products and services offered by Asian Paints. Paint services offered are:-
- Interior and Exterior Texture
- Interior and Exterior Wall Paints
Other services offered are:
- Wall Coverings
- Sanitization Services
- Wood Solution
These products and services are offered to Homeowners, Architects, Large Project Handlers, etc. Other than that, Asian Paints also provides protective coatings, undercoats, primers, and putties along with complete painting solutions like various accessories and tools.
Let’s see the Market share of Asian Paints.
In the year 2020, Asian Paints Market Share was about 39 per cent. Asian Paints led the decorative segment, while the industrial segment was led by Kansai Nerolac. As of 2019, the Indian paint industry saw around 12 per cent growth in its output volumes and about 15 per cent growth in terms of its total value.
Its market capitalisation is around ₹3,07,072 Crores.
Let us study the concept of the Marketing Mix of Asian Paints.
3. Asian Paints’ Marketing Mix
A marketing mix consists of 4 P’s i.e. Product, Price, Place, and Promotion
It includes multiple areas of focus as part of a comprehensive marketing plan. The 4 P’s were first introduced in 1960 by marketing professor and author E. Jerome McCarthy. Depending on the industry and the target of the marketing plan, marketing managers may take various approaches to each of the four Ps. Each element can be explained independently, but in practice, they often are dependent on one another.
Now, let’s discuss these strategies for Asian Paints.
Product Strategy of Asian Paints
It represents the item or service designed to satisfy customer needs and wants. Decorative and Industrial Paint are core products of Asian Paints. The company uses differentiating targeting strategies to carter specific products to different segments of customers which are explained below:
Asian Paints Royale is targeted at a premium segment.
Price Strategy of Asian Paints
The sale price of the product reflects what consumers are willing to pay for it. Price Strategy is followed by Asian Paints according to the targeted segment. They follow a value-based pricing approach for the medium and economic segments. Pricing decisions are often influenced by the raw material used to manufacture paints as well as competitors’ prices.
To sum up, Asian Paints has adopted a flexible pricing policy to benefit its customers.
Place Strategy of Asian Paints
The type of product sold is important to consider when determining areas of distribution. Asian Paints operates globally. They are carried out through a network of 5 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 centres.
Its major competitive advantage is that it is well established and has an extensive distribution network. The organization covers areas of rural, urban and semi-urban. It launched an open door policy for dealers after entering the retail market and began national marketing and distribution operations.
Promotional Strategy of Asian Paints
Joint marketing campaigns also are called a promotional mix. Asian Paints have carried out various successful promotional activities. One of the most recognized ones was the brand mascot Gattu, a cartoon created by the renowned artist, RK Laxman in 1954 which went on to become quite popular for more than four decades.
The company’s main focus is being all about families and emotionally connecting with the customers. The major promotion tool by them is providing incentives to their distribution network. Currently, a lot of promotion is carried out through social media.
Want to know who are the potential customers of Asian Paints? Have a look below
4. Target Market of Asian Paints
Asian Paints target a wide range of customers including homeowners, automobiles, corporates, wholesalers, and distributors. It operates in more than 19 countries and has 26 paint manufacturing plants globally providing services to its customers in more than 65 countries.
It operates globally with its subsidiaries such as Berger International Limited, Taubmans, SCIB Paints, Kadisco, Apco Coatings.
Let’s have a look at how the company has used digital media as a platform to promote its business.
5. Digital Marketing Strategy
Asian Paints has established itself with a strong social media presence, owing to its brilliant digital marketing strategy. Its digital presence is handled by the Kinnect ad agency.
Let’s see how they implemented their digital marketing strategy
- They are most engaging on Instagram with 184K followers where they regularly post home decor inspiration and designs.
- They host decor competitions periodically during festivals like Navratri, Diwali, Christmas, etc.
- They have done well in influencer marketing as well, collaborating with popular Instagram personalities who have used Asian Paints services.
Now let us know about competitors of Asian Paints in the market.
6. Competitor Analysis of Asian Paints
Asian Paint is a market leader, with currently over 30% market share. Its biggest competitors are Berger Paints, Kansai Nerolac, Indigo Paints, etc. Its biggest advantage is its distribution strength.
One of its main features is its range of exclusive signature stores providing consumers with expert assistance from trained professionals offering customized furnishing and decoration solutions.
Customers can even directly call the company’s helpline to check out the product offerings and get a quote directly from them.
In their business, intermediaries like painters, contractors, designers, decorators, etc. have a great influence over consumers’ purchase decisions.
Asian Paints could use their intermediaries and by acting as a spokesperson directly to the end to promote their products.
So with that, we get to know how Asian Paints uses various strategies to market their products to keep themselves at a dominating position in the industry.
7. News Headlines of Asian Paints
ICICI has a buy call on Asian Paints with a target price of ₹3,340. The current market price is ₹3,106. The time period given by the analyst is intra-day when Asian Paints Ltd. price can reach the defined target.
So till now, we learned about how Asian Paints applies different marketing strategies to keep up to the level of its competitors without compromising the trust of its consumers and suppliers. Its promotional strategy has helped it to make a mark and place itself in a dominating position. Asian Paints have managed to occupy a great consumer share in the market. Suppliers, Architects, and Decorators are also preferring to use Asian Paints over other brands.
Digital marketing has helped Asian Paints reach out to a large number of customers by daily content posting on Instagram. If you are keen to learn how digital marketing can help you grow your business, then have a look at our short-term courses on digital marketing to get a grip on the basics of digital marketing.
Hope you liked reading our blog. We wish you a great future ahead.