Analysis of the Car paint Industry

Color has captivated everyone throughout the annals, whether it be myriad cultures, age-groups, situations, etc. Color has turned into a significant part of each family. Every get older and every region has produced dyes and pigments predicated on the availability of the resources. The history proves the lifestyle of colors from earlier thousands of years, learned in the caves of Southern Europe.

Paint is thought as the band of emulsions, comprising pigments suspended in a liquid medium, for use as ornamental or defensive coatings. Today, contemporary paints and coating consist of many of thousands to fulfill the varied requirements of thousands of applications. "Paint" amounts from the wide band of environmentally sensible latex paints that many consumers use to decorate and protect their homes and the translucent coating that line the interior of food homes and the translucent covering that line the inside of food pots, to the chemically complex, multi-component surface finishes that car manufacturers apply on the set up line. Coloring made its earliest appearance about 30, 000 years ago. Cave dwellers used crude paints to leave behind the visual representations of these lives that right now decorate the wall surfaces of their historic rock dwellings. The utility of paints has changed from a decorative use to a surface coverage use. Also, know as surface coatings, paints can be classified based on end use, solvent system and stable content.

Paint is made up of three separate things working alongside one another. A pigment can be used for the color. A binder can be used to carry the pigment to the wall membrane. And lastly, a carrier can be used to use the pigment and binder to whatever. You will find various kinds of paint however they all have these components. For white latex car paint, the carrier is de-ionized normal water, the pigment is very finely ground Titanium dioxide, and the binder is a man-made polymer that resembles liquid silicone. The pigment and binder are put together with push (grinding) and then your two are gradually dispersed in to the water.

Titanium dioxide is the single largest input used in the produce of paints. It is a pigment (non-petro-based) that makes up about about 30% of materials costs. Phthalic anhydride (Skillet) and pentaerythritol (Penta) are the other two important petro-based inputs used in the production of resins. Organic and natural pigments, solvents, oils and a range of chemical additives are also found in the produce of paints.

INDIAN Coloring INDUSTRY

The Indian coloring industry has come a long way from the times when paints were considered an extravagance item. Today the awareness level on avoiding corrosion through paints is relatively high, a development that needs to be a huge boost to the paint industry. The Indian paints industry offers lucrative opportunity for stable revenue streams to manufacturers of both ornamental and industrial paints. The Indian Paints sector is respected at Rs 66 bn in value terms and is also very fragmented. The existing demand is estimated to be around 650, 000 tonnes per annum and it is seasonal in characteristics. The per capita use of paints in India stands at 0. 5-kg p. a. as compared to 1. 6 kg in China and 22 kg in the developed economies. India's share in the world paint market is just 0. 6%.

The typical characteristics of the Indian paints industry include raw materials intensiveness, working capital intensiveness, seasonality of demand, price elasticity of demand and low accessibility barriers regarding technology and money.

Crucial parameters that produce India a good proposition are the low per capita consumption of paints (1. 0 kilogram), development in development sector (it has been offered industry position) and development in the automobile/white goods market respectively spurring demand for attractive and professional paints. The industry has also observed increased activity in the commercial variety of paints with the admittance of MNCs in automobile, consumer durables etc, which has been gaining continuously over ornamental paints in the last one 10 years.

Indian coloring industry is century old and the can be retraced by the history of Shalimar paints which was setup in the year1902 in Kolkata. Till the next World war, industry contains small paint makers and 2 overseas companies. Post World War 2, imports were constrained which led to the birth of several domestic creation facilities producing paint. Nevertheless, international companied ruled the market. Initially, United kingdom paints such as Goodlass Walls (currently famous as Kansai Nerolac), ICI, British isles Paints (now known as Berger Paints), Jenson Nicholson and Blundell & Eomite dominated the marketplace.

The Indian coloring industry has developed a lot in recent times, both in conditions of industry structure and product profile. Not long ago, paints were mainly considered to be an extravagance item. Such a mind set has evolved significantly lately because of the growing understanding on stopping corrosion through paints, by providing a massive fillip to the car paint industry. Indian paints industry is Rs. 15, 000 crore market

Growth drivers for Indian paint industry

Per capita usage at 1. 5kg happens to be very low when compared with the developed countries (20kg/annum). Usage of lime extracts (chuna) in rural and semi urban marketplaces as well as minimal awareness of the protective qualities of paints can be one of the reasons for lower use levels. With growing income levels, both in metropolitan as well as rural India on the back of various administration initiatives like NREGS, Farm loan waivers, pay fee led salary hikes etc, the per capita utilization will improve in the medium as well as long term.

Rising income levels:

According to McKinsey, percentage of low income groupings was expected to drop from 24% in FY05 to 10% in FY10e, and it offers. It has acted as a substantial catalyst for demand progress in attractive paints.

Increasing media vulnerability:

With better awareness levels, a continuous switch from unbranded to branded section as well as improvement in product combination for various players like Kansai Nerolac, Asian Paints as demand for emulsions is constantly on the outpace enamels and distempers.

Rising urbanisation:

This has resulted in creation of new homes, in move, fuelling incremental demand. Currently, only 28% of Indian society is metropolitan.

Urban Share of total population

Increase in nuclear households:

This is a consequence of youthful demographics (60% of India's society is below 30 years of age), with percentage of working populace expected to increase from 40% in FY05 to 48% in FY15e.

% of populace in 15 64 years group

Healthy growth in usage levels expected for both, urban and rural India

Growth in Car Sector

With production of passenger cars expected to grow, demand for motor vehicle paints will continue to remain healthy as sales are anticipated to grow in increase digits. And with realty majors starting new projects, development activity is likely to gain momentum and make demand for decorative paints. Globally, the professional paints segment accounts for a major show, indicating that this portion offers many opportunities for coloring manufacturers.

Growth in Automobile Segments (FY06 10)

The emerging styles in the attractive industry are:

• Consumers are increasingly involved with making purchase decisions.
• Consumers expect better and much more relevant functional benefits from paints.
• Emulsion paints are outgrowing the industry growth rate.
• Trend of dark colours complementing light tones continues.
• Tinting systems at store level are the order of the day.
• Companies are getting more consumer centric and lots of value added services are being offered, like software support, colour consultancy etc.
• Strong development in the Indian powder coatings portion, as new applications and their advantages are discovered
• Greater curiosity about water-based coatings technology while knowing of VOCs and legislation rises.

3. INDUSTRY SEGMENTATION

The coloring industry can be segmented as follows:

1. End Consumption classification: Paints are grouped in either ornamental or industrial paints Decorative paints are being used for household and construction purposes while latter can be utilized for industrial products. Decorative Paints involves myriad types like enamels, acrylic emulsions, distempers and exterior paints. Commercial ones are the marine, anti corrosive material coatings, etc.
2. Solvent Structured classification: Paints designed to use petro products or drinking water as main solvents. Nowadays water based paints are becoming popular on environment friendliness.
3. Solid Content: Categorized based on type i. e. water or solid. Powder coatings find software mainly in white goods industry.

The Indian color industry has incredibly only private manufacturing units. This is reasoned by the actual fact that before, government identified paints as luxury product and hence taxed heavily, thus regulating the industry to a non-core business.

Sector sensible Division

Classification of coloring industry can be done either product-wise or sector-wise. Sector-wise implies organised and unorganized industries. The pie graph signifies the same.

Organized Sector is dominated by 6 large players and the unorganized industries had by about 2500 items manufacturing various categories of paints. Although organized sector manages 65% of color market, unorganized sector with 35% of market talk about continues to be a push to reckon with.

Organized sector can itself be divided into 2 distinct segments (Product smart): Industrial section which keeps growing at 15% around and decorative section which is growing at 8% about. As shown in the graph, most of sales are accounted for mostly by decorative portion. Decorative segment relishes almost 77% and commercial segment possesses 23% of the marketplace.

Organised Market Portion Division

Decorative Segment

It caters to the enclosure sector. The following falls under attractive segment.

• Acrylic Emulsions: Premium decorative paints are acrylic emulsions used generally in the metros.
• Enamels: The medium range consists of enamels, popular in smaller towns and towns. Used on substrates like steel, wood, cement, etc.
• Cement paints: Used for exterior purposes
• Distempers are overall economy products demanded in the suburban and rural markets. Nearly 20 % of all attractive paints bought from India are distempers.

Industrial Segment

Industrial Paints include powder coatings, high performance coatings and automotive and marine paints Two-thirds of the professional paints produced in the united states are automotive paints.

Structure of Color Industry

4. MARKET PROFILE

The leaders in the sorted out color industry are Asian Paints (India) Ltd. (APIL), Goodlass Nerolac Paints Ltd. (GNPL), Berger Paints, Jenson & Nicholson Ltd. (J&N) and ICI (India) Ltd.

"Asian paints" is the industry leader with a standard market share of 33 per cent in the structured coloring market. It has the largest circulation network on the list of players and its intense marketing has acquired it strong brand equity. The Berger Group and ICI share the second slot machine game in the industry with market stocks of 17 per cent each. GNPL has a market share of 15 percent in the structured sector.

APIL dominates the ornamental portion with a 38 % market share. The company has more than 15, 000 shops and its own brandsTractor, Apcolite, Utsav, ApexandAceare entrenched on the market. GNPL, the number-two in the attractive section, with a 14 per cent market share too, has now increased its distribution network to 11, 000 retailers to compete with APIL effectively. Berger and ICI have 9 per cent and 8 % shares respectively in this segment followed by J&N and Shalimar with 1 and 6 per cent shares.

GNPL dominates the industrial paints segment with 41 per cent market talk about. It has a lion's show of 70 % in the OEM passenger car portion, 40 per cent show of two wheeler OEM market and 20 % of commercial vehicle OEM market. The company is also venturing into new areas like painting of plastic, coil coatings and cans. APIL, the first choice in attractive paints, ranks a poor second after Goodlass Nerolac in the professional portion with a 15 per cent market show. Berger and ICI are the other players in the sector with 10 per cent and 9 % shares respectively. Shalimar too, has an 8 % share.

Asian Paints enjoys leadership position in the Indian Paints industry, with almost 55% talk about of the planned segment.

Major Market Player

5. COMPANY PROFILE

Incorporated in 1920, Kansai Nerolac Paints Small (KNPL) is the second-largest coating company in India. It really is a subsidiary of Kansai Paints, a Japanese company, which contains approximately 69. 3% stake. KNPL performs in the attractive as well as the professional paints segments, which is the market innovator in motor vehicle and powder covering sections. It manufactures decorative paints, motor vehicle coatings, general commercial coatings, powerful coatings, powder coatings and speciality coatings.

Its manufacturing plants can be found at Ratnagiri (Maharashtra), Kanpur Dehat (Uttar Pradesh), Perungudi and Hosur (Tamil Nadu) and Bawal (Haryana). Its worker strength is roughly 2, 000.

The company has a strong distribution network of ~12, 000 distributors, 5, 000 color tinting machines and 69 sales locations, as of FY10. The installed convenience of various products by FY10 is: Paints, varnishes, enamels and powder coatings 2. 08 million tonnes (MT), Synthetic resins 79, 380 tonnes and pre-treatment chemicals 2, 400 tonnes. Exports added significantly less than 1% of FY10 earnings. The proximity of the company's crops to the customers' seed locations offers KNPL a strong logistical gain.

Kansai Nerolac Paints Ltd. is a cognized head in chosen areas. The company has triumphed in many exclusive awards such as National Energy Conservation Prize from the Ministry of Ability, Administration of India for its Jainpur seed, the Golden Peacock Prize for Corporate Governance in 2005, the business enterprise Innovator of the entire year prize in 2006 from the CTO Forum Publication and Best Managed Company award from Business Today in 2004.

History

It is the second largest covering company in India and market innovator in Industrial Coatings. Its Industrial Coatings has a wide range of products in the Automotive, Powder, Basic Industrial and High performance Coatings space. Nerolac paints, as it is popularly known, are an established brand in decorative paints.

Kansai Nerolac Paints Ltd is a subsidiary of Japan based mostly Kansai Color Company Small, which is one of the top ten coating companies on earth. The technological edge of Kansai helps us constantly innovate and produce products that meet consumer need spaces. Kansai Nerolac has always believed that the key to its business is:

• Technology
• Research & Development
• Innovations
• Quality

Year 1920, a paint company was born as Gahagan Paints and Varnish Co. Ltd. in Mumbai. The trip is marked by moving from strength to strength in every sphere of business - be it product introductions through invention, value executive and superior technology.

1920: A firm known as as Gahagan Paints and Varnish Co. Ltd at Lower Parel in Mumbai, was born.

1957: Goodlass Wall Pvt. Ltd grew popular as Goodlass Nerolac Paints (Pvt) Ltd. Also, it went open public in the same time and established itself as Goodlass Nerolac Paints Ltd.

1976: Goodlass Nerolac Paints Ltd. became an integral part of the Tata Forbes Group on acquisition of a part of the overseas shareholdings by Forbes Gokak.

1983: Goodlass Nerolac Paints Ltd. Strengthened itself by entering in technical collaboration agreements with Kansai Color Co. Ltd, Japan and Nihon Tokushu Tokyo Co. Ltd, Japan.

1999: Kansai Color Co. Ltd, Japan got over the whole stake of Tata Forbes group and thus GNP became wholly owned subsidiary of Kansai Coloring Company Ltd.

2006: Within the 11th of July, Goodlass Paints Ltd. name was evolved to Kansai Nerolac Paints Ltd.

KEY HIGHLIGHTS

Capacity extension n plans

KNPL's latest capacity addition was a new herb at Hosur, which commenced businesses within the last quarter of FY10 with a capacity of ~15, 000 tonnes. The business plans to spend another ~Rs 2. 5 billion (bn) to broaden developing capacity at Hosur to 0. 28 million (mn) tonnes per annum. A further Rs 1. 5 bn will be allocated to increasing development capacity in other plants, taking total cost to Rs 4 bn

Strategic Alliances

Nerolac is rolling out strong relationships with automakers, such as Maruti, which facilitates it in maintaining its market leadership position in the industrial paint segment. Nerolac's parent or guardian company Kansai is a worldwide supplier of paints to Suzuki - Maruti's parent or guardian company - which further strengthens the relationship. Nerolac has also considered initiatives to improve its existing romantic relationship with automakers, which include placing technical teams at automakers' car paint shops to supply them with services. Such initiatives have became successful, and Nerolac has 9 out of 11 automakers as its customers. The other major a well-established client base from the automotive industry includes Tata Motors, Bajaj Vehicle, Ashok Leyland, Mahindra & Mahindra, etc

Targeting Rural Market

Nerolac has stepped up its initiatives to increase its presence in the rural market. The company has unveiled some products, such as Beauty Emulsions in the range of 80-100 rupees per litre, which focus on the price-sensitive market. It has also created an alliance with ITC on its E-Chaupal effort to improve its existence in the rural market. The business is also making work to improve its seller network to improve sales.

6. KANSAI NEROLAC - MARKETING PROFILE

Marketing Strategies

Marketing defines the actual fact that "Customer is King" and always every management strives to identify, anticipate and fulfill their Kings'

Kansai Nerolac is the organization which works on this aspect and it's been one of the pillars behind creating a successful firm. Nerolac feels that the key strength is based on understanding the consumers and connecting with them in a dialect they understand and relate with the best. Over time, Nerolac has performed many initiatives, which have fulfilled with unprecedented success and really made people stay up and take notice of the same.

6. 1. Brand -Nerolac

Nerolac commercials have been well -liked over time and its jingle - 'Jab ghar ki raunaq badhaani ho. . . ' is currently a familiar tune in every Indian home. Many placed the same jingle as their caller-tunes.

Beginning with the introduction of the new Brush heart stroke logo, this means the 'process of painting, depicts motion, dynamism and progress through change. The sign red colorization, which is the color of Nerolac, is a symbol of eternal enjoyment and wish. It has now become a fundamental element of Nerolac's brand individuality and now shows up as a sign-off on any type of communication.

The Slogan of Brand Nerolac: "Kuch Change Kare Chalo Car paint Kare"

Brand Ambassadors: Presently, Shah Rukh Khan, internationally famed Bollywood hero endorses Kansai Nerolac and has proved to give the brand some glamour and the expectation a famous face will provide added charm and name reputation in a congested market. The famous Bollywood celebrity being the co-owner of IPL -Kolkata Knight Riders team is definitely a popular ambassador to the recall value of the brand.

Previously Mr. Amitabh Bachhan and Mr. Mohanlal were the brand Ambassadors. Amitabh acquired embodied Nerolac and had confirmed "how it touches the lives and dreams of people. . . no subject whom these are and where they result from". The fact of this thought was captured in the new baseline 'Yeh Rang hain jo har kisi ko chhoota hain'.

6. 2. Product Range (Decorative portion)

Wood coatings include: Marvel timber 2k PU, Question wood melamine crystal Clear, Wonder timber melamine and Surprise solid wood 1 KPU.

6. 3. Segmentation

Market segmentation symbolizes an attempt to increase a company's concentrating on precision.

All businesses operate in "marketplaces". A market is the set of all genuine and potential buyers of something or service. This description suggests that a market is the full total value and/or level of products that gratify the same customer need.

In defining a market, it's important not to concentrate only on products/services that presently meet the customer need. Considering customer needs first - and then identifying the merchandise that meet those needs - is the ultimate way to define market.

However, additionally it is important not to define a market too broadly. For example, it isn't particularly ideal for a marketing director to define his / her market as the "grocery store" or the "transport market". The purpose of market meaning is to give a meaningful platform for evaluation and decision-making.

Bases of segmentation

It is widely thought in marketing that than segmentation can be an art, not a science.

The key task is to find the variable, or variables that split the market into actionable sections. You will find two types of segmentation parameters:

1. Needs
2. Profilers

The basic conditions for segmenting a market are customer needs. To find the needs of customers in market, it's important to undertake market research.

Profilers will be the descriptive, measurable customer characteristics (such as location, years, nationality, gender, income) that can be used to inform a segmentation exercise.

The most usual profilers used in customer segmentation include the following:

Geographic

• Region of the country
• Urban or rural

Demographic

• Age, gender, family size
• Income, occupation, education
• Religion, race, nationality

Psychographic

• Social category: Advanced, Middle Upper Course and also Lower Class
• Lifestyle type
• Personality type

Behavioural

• Product usage - e. g. light, medium, heavy users
• Brand commitment: nothing, medium, high
• Type of user (e. g. with foods, special situations)

Demographic segmentation

Demographic segmentation contains dividing the marketplace into groups predicated on variables such as time, gender family size, income, job, education, religion, competition and nationality.

Customer needs are closely linked to parameters such as income and age. Company Kansai Nerolac Paints has produced paints as per customers' requirements and the products are referred to above.

The main demographic segmentation parameters used in this are summarized below:

Income

Kansai Nerolac has targeted affluent customers with luxury products like the impressions. Various convenience services as mentioned are created for the simple customers. Economy range products are being produced by the business and would be released soon in the market. Premium school impression products for children based mostly of the interests on sports activities, cartoons are produced and company extends in paintings services with its well equipped painters.

Social class

Many Marketers assume that a consumers "perceived" social course influences their tastes for cars, clothes, home furnishings, leisure activities and other products & services. There is a clear website link here with income-based segmentation.

The cultural dominance in India is targeted and paints predicated on Vastu are carried on to move in prosperities with paints. Kansai Nerolac provides this with established vastu veterans and help the clients. In addition, it works on splendid work as per the ambience with various methods like 30-60-90.

Marketers are more and more interested in the result of consumer "standards of living" on demand. There are many different lifestyle categorisation systems, many of them designed by advertising and marketing agencies as a means of receiving new marketing clients and campaigns!

Behavioral segmentation

Behavioural segmentation divides customers into groupings based on just how they react to, use or know of something.

Behavioural segments can group consumers in conditions of:

Occasions

When a product is consumed or purchased. Neroalc Paints launches services near the festive seasons and promotions during those times relate with the festivals providing a cut of life touch. Plus offer varied schemes based on different situations namely Valentine day offers, F1 fever, IPL dhamaka, etc.

Usage

Some markets can be segmented into light, medium and heavy consumer groups.

Loyalty

Loyal consumers - those who buy one brand all or almost all of the time - are valuable customers. Many companies make an effort to segment their markets into those where loyal customers are available and retained weighed against segments where customers almost never display any product loyalty.

Importance of Segmentation:

There are a number of important reasons why businesses should attempt to segment their market segments carefully. These are summarised below

Better matching of customer needs

Customer needs differ. Creating distinct offers for every single segment makes sense and customers with a better solution

Enhanced gains for business

Customers have different disposable income. These are, therefore, different in how delicate they are really to price. By segmenting marketplaces, businesses can boost average prices and subsequently enhance earnings. Product segmentation of Nerolac Paints has allowed each segment of the society to relate to a product within the income range.

Better opportunities for growth

Market segmentation can build sales. For instance, customers can be urged to "trade-up" after being unveiled to a particular product with an introductory, lower-priced product.

Retain more customers

Customer circumstances change, for example they get older, form families, change jobs or get advertised, change their buying patterns. By marketing products that charm to customers at different stages of the life ("life-cycle"), a business can hold on to customers who might usually switch to fighting products and brands.

Target marketing communications

Businesses need to provide their marketing communication to a relevant customer audience. If the prospective market is too wide-ranging, there's a strong risk that (1) the main element customers are skipped and (2) the price of connecting to customers becomes too much / unprofitable. By segmenting markets, the mark customer can be reached more often with lower cost. Advertisements associated with different paints of Nerolac Paints are on air each signifying another type of target market, some other aspect of life.

Gain share of the market segment

Nerolac Paints is the market innovator in the industrial market and profits credited to economies of scale. Through careful segmentation and focusing on, businesses could achieve competitive development and marketing costs and become the preferred choice of customers and marketers.

6. 4 Promotional Activities.

a) Advertising:

Kansai Nerolac made a beeline to cricket fever by advertising and arranging ad areas on Set in place Max, the sub continental broadcaster for the IPL suits this summer, for IPL 4.

The company has launched 'Healthy Home Selection of Paints' that are safer business lead free, odour free, low VOC (VolatileOrganic Substance) and eco-friendly. The brand ambassador endorses a wide range of advancedeco-friendlyproducts in the TV, printing and outdoor advertisements.

The same ads have been telecasted in Chennai (Sun Network) in the regional dialect - Tamil to be able to remind and remember the brand value of Kansai Nerolac.

Television advertising campaign with Irfan Khan and Konkana Sen for Nerolac Impressions was done on popular stations of West Bengal. The advertising campaign was redone to help build the brand saliency during this time period.

There were various other campaigns endorsed by Amitabh Bachhan which became runaway success to name one -"Har Din Diwali "a promotional marketing campaign aimed at the customer.

b) Public Relations

Kansai Nerolac has always been in the fore front side for PR, whether it be marketing or corporate and business relations. Kansai Nerolac was the first to initiate the retailers meet and painters' meet. It comes up with new product introduction activity also.

Corporate relations are the famous Mumbai Marathon (17th Jan 2010) which carried an anti smoking note, with a emblem on their T-shirts.

As part of corporate interpersonal responsibility, Nerolac has been doing health camps for needy people every year.

c) Sales Promotions

This includes the sellers meet and painters meet which help regularly to build up a good rapport with the dealers and painters. Promotional offers and strategies with gifts serves as the major sales promotional methods accompanied by Kansai Nerolac. Bonuses to painters include the token exchanges. Foreign trips are also provided for the dealers who define in the promotional design parameters. Syndication of T-shirts and caps to the paints are also done.

d) Other Services

"Nerolac Assured Paint Service": Designed to bring the Nerolac experience right to the consumers' doorstep, is the service launched by Nerolac. Currently available in Mumbai, consumers is now able to relax while the Nerolac team takes over the entire paint job right from sourcing to execution. On consumer friendliness platter, the tone cards have been redesigned. The brand new look shade credit cards are not only eye catching and consistent in appearance but also make an effort to make the process of tone selection for the consumer lot more interesting and convenient. Nerolac Home Stylers provides professional help in providing product consultancy and coloring consultancy.

Kuch Change Kare. Chalo Paint Kare

6. 5. Distribution Methods

The availability of a wide variety of shades and the distribution network is crucial for the success of the ornamental paint business. The excess colours by the use of Computer color dispensed (CCD) has reduced the inventory problems and creation of desired colors on requisition are an edge. Kansai Nerolac has almost 11000 retailers. These dealers obtain their equipment from the nearest company depots.

The sales staff regularly go to the dealers and purchases are used by them who speak the same to company depot. Company depot in line with the orders placed delivers the product to the particular shops. Sales representatives, form an important info carriers regarding the promotional offers and strategies between the company and the dealers. They form a cordial relationship with the sellers.

The new seller hunt program is a process to increase the distribution network of Kansai Nerolac in Chennai. The sales staff initiate in increasing the customer base as aimed by the business's area sales managers.

These retailers' purchases are also extracted from the respective depots telephonically regularly to help the clients in stocking the least level of paints in the retailers.

Inventory management is crucial in the paints industry. The majors normally hold 70-90 days of sales exact carbon copy of inventory. Among them, Kansai Nerolac is better due to more of its sales coming from the industrial sector. Kansai Nerolac is continually focusing on the decorative portion also, to supply the products promptly as well as keeping limited inventories in the depots.

6. 6. Rival Product Information

7. RESEARCH PROJECT

7. 1. Subject of the Project:

A review on "Overall Consumers' conception towards Kansai Nerolac Paints in Chennai city".

7. 2. Assertion of Problem:

Kansai Nerolac Paints Ltd. , being a market leader for industrial coloring segment for most decades stands in second position in the attractive segment. Additionally, 70% of the ornamental paint section is had by Asian Paints in Chennai. Thus, the rival "Asian paints" has became a menace in the decorative section for Kansai Nerolac paints.

Therefore market study "Customers' Overall Conception towards Kansai Nerolac paints in Chennai"

This review can help understand the understanding and therefore help the company to capitalize on its brand, strategize better marketing techniques and create an impact on the clients and dealers, to attain the apex position in the ornamental segment too.

7. 3 Goals of the task:

1. To understand the products/services made available from Kansai Nerolac paints in Chennai.
2. To interpret the entire notion of Nerolac paints in Chennai city.
3. To research the behaviour of customers towards the merchandise offered by the company and the other competing paint companies.
4. To evaluate the services offered by the company to the sellers and their reactions about the same.
5. To draw bottom line and provide recommendations based on the evaluation and interpretation of data.

7. 4. RESEARCH

Research can be defined as a organized and objective procedure for gathering, recording, and analyzing data that delivers information to guide business decisions. General market trends particularly aims at understanding and examining the marketplace where the company operates. This can help the business to devise effective business guidelines and marketing strategies. Operational research handles application of mathematical and statistical tools to derive on a solution.

Market Research

To undertake marketing effectively, businesses need information. Information about customer wishes, market demand, opponents, distribution programs etc.

Marketers often complain that they lack enough marketing information or the right kind, or have too much of the incorrect kind. The perfect solution is is an efficient marketing information system.

The information needed by marketing professionals comes from three main sources:

(1) Internal company information

E. g. sales, purchases, customer profiles, stocks and shares, customer service reports etc)

(2) Marketing intelligence

This can be information obtained from many options, including suppliers, customers, marketers. Marketing cleverness is a catch-all term to include all the each day information about improvements on the market that helps a business prepares and modify its marketing strategies. You'll be able to buy intellect information from outdoors suppliers (e. g. Mintel, Dun & Bradstreet, Mori) who set up data gathering systems to aid commercial intelligence products that may be profitably sold to all players in market.

(3) Market research

Management cannot always wait for information to reach in equipment from internal resources. Also, resources of market intellect cannot continually be relied after to provide relevant or up-to-date information (especially for smaller or market segments). In such circumstances, businesses often need to undertake specific studies to support their marketing strategy - this is market research.

Need for Market Research

A wide selection of information used to aid marketing decisions can be obtained from general market trends. An array of such uses are summarized below for Kansai Nerolac Paints:

Information about the market

• Analysis of the marketplace prospect of existing products (e. g. market size, expansion, changing sales styles)
• Forecasting future demand for existing products
• Assessing the potential for new products
• Study of market trends
• Analysis of competition behaviour and performance
• Analysis of market shares

Information about Products

• Likely customer popularity (or rejection) of new products
• Comparison of existing products in the market (e. g. price, features, costs, syndication)
• Forecasting new uses for existing products
• Technologies which may threaten existing products
• New product development

Information about Prices in the Market

• Estimates and evaluation of price elasticity
• Analysis of income, margins and profits
• Customer perceptions of "just or good" pricing
• Competitor pricing strategies

Information about Advertising in the Market

• Effectiveness of advertising
• Effectiveness of sales force (personal selling)
• Extent and performance of sales promotional activities
• Competitor promotional strategies

Information about Circulation in the Market

• Use and effectiveness of syndication channels
• Opportunities to sell direct
• Cost of transporting and warehousing products
• Level and quality of after-sales service

In terms of data catch and research there are two main types of market research:

• Qualitative Research
• Quantitative Research

Qualitative Research

Qualitative Research is approximately investigating the features of a market through in-depth research that explores the backdrop and context for decision making.

There are two main qualitative methods - depth interviews and target groups.

Depth Interviewing

Company Depth interviews are the key form of qualitative research generally in most business marketplaces. Here an interviewer spends amount of time in a one-on-one interview finding out about the customer's particular circumstances and their individual opinions.

While getting together with sellers at the sellers place interviews helped to identify the culture accompanied by the traders in the coloring market and the techniques which a corporation should follow that permit an organization to be popular amonst the dealers in the market.

Feedback was used about Kansai Nerolac Paints was presented with through many repeated connections between the retailers and the business.

Quantitative Research

Quantitative research is about measuring market and quantifying that measurement with data. Most often the info required relates to market size, market show, penetration, installed base and market growth rates.

However, quantitative research for Nerolac Paints was used to measure customer attitudes, satisfaction, determination and a variety of other useful market data that can monitored over time. Via questionnaires customer consciousness and attitudes to different car paint manufacturers and their overall buying action was judged which applies to the marketplace as a whole

STAGES IN THE RESEARCH PROCESS:

The Business research can entail many varieties, but organized inquiry is a common thread. Organized inquiry requires careful planning of orderly exploration. Business research like other varieties of medical research is a collection of highly interrelated activities. The levels in the research process overlap regularly, and it is somewhat of your oversimplification to state that every research project has the same ordered series of activities. Nevertheless business research often comes after a general structure.

There are five levels and the they are as shown in these show in a cyclical or circular move process because the conclusion from the research studies usually make new ideas and the problems that require to be further looked into.

The five periods in the project can be essayed the following:

a) Define the trouble:

Kansai Nerolac Paints Ltd. has been a market leader in industrial paint segment for most decades, but is in the second position in attractive segment. KNP happens to be having less market talk about in comparison to "Asian Paints" in the attractive section in Chennai city, from previous couple of years.

b) Planning a research design:

The market talk about of KNP is less in Chennai from earlier few years and so the research to study the same with the aid of dealers' responses. It has been transported by both most important as well as extra research methods.

This project was achieved by most important data obtained through the questionnaire. The questionnaire consisted available ended; close finished and multiple choice questions. These questions were responded to by the respondents. Open up finished questions help retailers to give comprehensive answers and therefore help the business to note the perception of the retailers.

The secondary source of data was obtained from the info archives of the company. The info was also accumulated from various catalogs, magazines, magazines and company records. The secondary sources of data aided to enlighten the opportunity to find out more and thus assist in deriving the conclusions.

c) Planning for a test and gathering the data:

A test size of 160 car paint retailers in Chennai was considered. A way of arbitrary sampling activity was chosen, to be able to acquire views and recommendations from KNP traders in market as well as the reason from the sellers not working with Nerolac paints. The blend of responses surely helped in concluding the reason behind KNP's current position in the market.

Questionnaire prep:

The first and the foremost step in the job was to the design the questionnaire that was to quiz and record the reactions of the paint dealers. Preparation of questionnaire engaged few brainstorming lessons with Project guide and the sales executives in the business. Ideas and suggestions were taken from college faculty guide in order to attain the set of questions to be asked. An attempt was made to make certain that the questions were crisp yet distinct enough to remove detailed information from the respondent. It had been also ensured that because the respondents were paint dealers the questionnaire had less volume of questions as these folks are very occupied individuals and an elongated question collection could dilute or even in the most severe case circumstance hinder their intent to give genuine and unprejudiced answers.

Once the questions were compiled and ordered in a manner that gave a clean circulation to the questionnaire. The questionnaires were printed out and then were moved on to another step. The next step was to discuss the approach to the respondents to be able to convince these to comply which really is a very important period of the overall research. Mock drills of the way were utilized and perfected.

The next thing was the bottom zero or the genuine field work. Here the range was to meet up with the dealers in Chennai which is quite large. It had been impractical for a single person to do the whole research traversing the complete city of Chennai; hence 160 arbitrary samples were taken. Thus by the seamless segmentation of the territories a sturdy method for within the cross portion of the location was devised.

d) Handling AND ANALYZING DATA:

The responses obtained were bifurcated in line with the dealers currently coping with Nerolac paints and dealers working with other paints. Research of the responses from both categories was done independently and conclusions are derived.

Statistic tools were used to investigate and understand the responses given by the experienced dealers of paints. Statistical evaluation helped in tests the potentiality of Kansai Nerolac paints in much better way.

e)FORMULATING CONCLUSIONS AND PREPARING Information:

This methodology helped in devising methods for retaining the current customer (seller) base. The group's (interacting with other paints) replies answered the reason behind these to choose other brands and therefore strategies for tugging clients could be concluded. Various Excel tools and business research tools were considered to statistically verify the results. The charts and conclusions predicated on the examination are added in the record.

7. 5. SAMPLING TECHNIQUES

The precision of a research study is increased by the utilization of statistical tools. It really aids in correct interpretation of both quantitative and qualitative data thus extracted from the paints traders.

The statistical tools used for the following survey evaluation include SPSS program and the common MS-Excel tool.

The method of percentage examination method was chosen to conclude from myriad responses extracted from the sellers and particular charts are being used to explain the same.

7. 5. A. Percentage analysis Method:

A simplest statistical method used in both business and financial information. Simple percentages are hereby determined and the results may be accomplished.

Survey Responses analyzed using percentage method:

1. Do the traders package with Kansai Nerolac Paints?

2. Which promotional method would work better?

3. Do the customers require Kansai Nerolac paints?

4. Do you feel customers buying behavior has upgraded after SRK is just about the brand ambassador?

5. Low VOC - has it impacted to improve the sales?

6. Do you are feeling the scheme words in Tamil will supercharge sales for the company?