Unveiling the Colorful Journey of Asian Paints

If you think it is only Apple or Tesla that are innovation hubs of the world, you might be wrong. India has its own company that has topped the Global lists every time, when it comes to modernization and constant innovation of products, in a category which is completely non-tech and very traditional.

It is not any automobile company or a software company. This company has been a market leader since 1967. You may be surprised to know that it is a Paint’s company. Yes, you got it right, Asian Paints. Not just India, Asian Paints operates in 15 more nations, serving markets in over 60 countries. It is double the size of any paint company in India.

It offers a wide variety of paints, wall coverings, adhesives, furnishings, home décor and even bath fittings. 

How did Asian Paints become so big and why are they called the innovator of all times? Let’s check that out.

In this article we will go through how Asian Paint’s success is attributed to its innovative business model, creating innovative products, focusing on the “One Asia Strategy” with its marketing strategy.

So, let’s begin this learning journey.

The Birth of Asian Paints

Back in the days of pre-independence era, Indians were writing history and future both with their struggles with non-cooperation movement – “Asahayog Aandolan” and Quit India movement “Bharat chodo Aandolan”.

After the world war II, imports were temporarily banned by Britishers in India. People were left with only two options: either Shalimar Paints or excessively expensive foreign brands. Four friends in Bombay saw a business opportunity in this. Champaklal Choksey, Chimanlal Choksi, Suryakant Dani and Arvind Vakil started Asian Oil and Paint Private Limited in 1942, in their garage as they fondly called it ‘Friends Garage’. They believed that the key to success was not to target any specific audience. Instead, they wanted to make something that will serve every type of customer.

In 1945, the company started manufacturing and selling small packets of paint of 50-100 ml, contrary to the norm of large tins and tubs of paints at hardware stores. It also helped them to penetrate deeper in the distribution process. They tied up with every possible distributor in the nook and corner of the country.

Their strategy was working. The company earned a turnover of 3.5 lakhs in the same year, offering only 5 color choices to their customers: White, Black, Red, Blue and Yellow. Walking the road of same strategy, company clocked a revenue of Rs. 23 crores in 1952. It was a phenomenal success back then.

Now, Asian Oil and Paint Private Limited wanted to reach their customers personally and create their own brand. So, in 1954, they launched their brand mascot. A boy with a paint brush in his hand, drawn by none other than the legendary RK Laxman.

To give this mischievous boy a name, the company launched a contest inviting people to suggest names. And The winner would get Rs. 500. Out of 47,000 entries, 2 people from Bombay suggested ‘Gattu’. That’s how Gattu got his name and Asian Paints their mascot.

 Asian Paints always ahead of its time

Painters in India used to paint along with limestone/chuna. Limestone damaged their hands, clothes, eyes. It turned flaky and would also leave patches on the wall and had to be redone every year. Asian Paints came up with an excellent replacement of limestone, washable distemper and named it ‘Tractor Distemper’. Tractor Distemper was a balance between cheap dry distemper and expensive plastic emulsions.

Gattu became the face of tractor distemper with the tagline, ‘Don’t lose temper, use Tractor Distemper.’ Asian Paints landed big clients such as British firm, Balmer Lawrie and became the leading manufacturer of paints in India in 1967. In 1970, when computers were almost unheard of in India, Asian Paints bought a mainframe computer for Rs 8 crores. With the help of this computer, they integrated all their facilities, chemical plants, processing centres, distribution centres, to understand demand/supply better and manage inventory and distribution.

Data collection, management and analysis has been the biggest contributor to their super distribution channel efficiency. No material gets short anywhere. In fact, they are so ahead in data analysis, that they can tell you which residential area in Andheri East would paint their house most probably with which color. In 1973, company became public and in late 1970s, company established their first venture in Fiji.

They innovated anti-bacterial, water proofing, air purifying paints and now next in line for them is to launch covid-proof paints and coatings. They launched their first ever TV commercial in 1984, helpline and website in early 90s. They are always ahead of the time!

Fall out of the quartet!

The company was started by 4 friends, all of them holding an equal stake. 40% of the promoter stake was diluted when the company went public in early 1970s. In 1984, Atul Choksey (son of Champaklal Choksey) and Ashwin Choksi (Son of Chimanlal Choksi) both were nominated for the position of joint Managing Directors, although Atul Choksey had become face of the company.

However, slowly there were disagreements among the 4 promoter families, that obviously was not in the best interest of the Asian Paints. Champaklal felt if Asian Paints did not expand to become a global player, the company would have to face a tragic fall. He wanted to expand aggressively. For this, he suggested Global Depository receipt issue. The other 3 promoter families believed that a foreign issue will make the company vulnerable to a takeover.

After this, the second disagreement followed, when Champaklal wanted to increase the dividend payout to 75. Others wanted it to be kept unchanged at 65. In 1997, a series of events happened. Choksey’s wanted to sell their 9.1% stake. After Champaklal Choksey’s demise, Choksey family sold off their shares to Kotak Mahindra Capital Company.

Within hours of the deal, Kotak Mahindra Capital Company off loaded this 9.1% to a British firm, Imperial Chemical Industries. Imperial Chemical Industries wanted to expand in India. This was a big development in Corporate India. It also did not sit well with the other 3 promoter families. Many felt a foreign company was trying to capitalize on internal conflicts of the 4 families. After all, resisting a foreign promoter was the reason they were not okay with a foreign listing.

The 3 families obstructed the sell-out of shares to the British firm. They refused to grant board approval of the transaction.Finally, Unit Trust of India bought half of the stake in question and the 3 families bought the other half.

𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗠𝗼𝗱𝗲𝗹:

Asian Paints has crafted a robust and diversified business model that positions it as a leader in the paints and coatings industry. The cornerstone of its prosperity is anchored in a diverse array of premium paints and coatings tailored for different sectors, encompassing decorative paints, industrial coatings, and automotive coatings.

The company distinguishes itself through a relentless commitment to innovation and research, staying ahead of industry trends and maintaining technological leadership. This commitment extends to a global expansion strategy, where Asian Paints operates in international markets, acquiring local brands and tailoring its offerings to diverse consumer preferences. The brand's strength is further fortified by a mastery of branding and marketing, creating a lasting impact on consumer perceptions.

A customer-centric approach, supported by a comprehensive distribution network and digital transformation initiatives, ensures a seamless and engaging experience for consumers. Environmental responsibility is woven into the business model through sustainable practices, including the production of eco-friendly paints and a focus on energy efficiency.

Strategic alliances, acquisitions, and a culture of continuous improvement underline the company's adaptability, enabling it to navigate changing market dynamics effectively. Asian Paints' business model, like a carefully curated canvas, blends product excellence, global presence, customer focus, and sustainability, contributing to its enduring success in the competitive world of paints and coatings.

Journey to a Complete Home Décor Company

You only need to think once, “I need to get my house painted” and give them a call. ‘Quick Home Makeover’- the service has been launched to get your home revamped in just 7 days! People used to paint only when the walls started peeling off. Asian Paints wanted to make a societal shift to a complete home décor.

They reinvented themselves after every generation. Early 2000s, they expanded their portfolio segment from paints to decorative coatings. In 2004, they launched ‘Royale Play’, a premium range of paint that Saif Ali Khan promoted. Every paint in the premium range added a different texture to the wall, metallic luster, stucco finish or soft sheen.

Asian Paints wanted to connect right color to the right customer. For this, they have launched stores like Color ideas, signature stores and AP Homes. Each store is equipped with color boards and displaying samples of interior and exterior finishes. A color consultant assisting visitors about how a particular color would look on their home walls. These stores allow customers to get a sense of texture, design, and finishes.

Each year, they unveil a color of the year, they innovate a new color every year that customers can use to get their house painted with. In 2013, they forayed into modular kitchen space after acquisition of Sleek kitchens.

In case if there was a doubt with their intention of becoming a complete home décor space, they also launched their bath division as well with Ess Ess. Ess Ess offers faucets and an accessory range for bathrooms. Even today, Asian Paints continues to grow in products, offerings, and value.

Let’s look at the Marketing Strategy of Asian Paints & Mix to understand its product, pricing, advertising & distribution strategies:

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.

1. Product Strategy : Asian Paints’ core product is decorative and industrial paint. Along with that, the company offers solutions and services for home paintings. Company uses differentiating targeting strategy to cater specific products to different segments of customers:

E.g.  Asian Paints Royale targeted at the premium segment.

Apcolite, tractor emulsion, and 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.

2. Price Strategy: Pricing strategy followed is according to the targeted segment eg. the Royale product range is marketed towards high-income groups and hence, is priced higher. While offering premium paints, the company ensures that the pricing aligns with the perceived value, allowing it to cater to different market segments without compromising on quality. Asian Paints follows a value-based pricing approach for the medium and economic segments.

The pricing decisions are often influenced by the raw material used to manufacture paints, as well as competitors’ prices. Overall, Asian Paints has adopted a flexible pricing policy.

 3. Promotion Strategy: Various highly promotional activities are being carried out over past years by Asian Paints. In 1954, a cartoon was created by by R.K Laxman that went on to become a popular and recognized figure for more than four decades for the most famous brand “Mascot Gattu”.

 Later, Asian Paints got even more serious about advertising. They teamed up with a company called Ogilvy & Mather. They made a cool line, “Every Home Tells a Story, “That people liked. In 2000, Asian Paints stopped using Gattu and used their logo instead.

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. They used “#Barishkoaanedo” to say the paint can handle heavy rain. They did contests on social media too, like #DonateAWall, to get people interested.

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. The use of memorable taglines, visually appealing advertisements, and strategic placement in various media contribute to creating a strong brand image.

4. 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.

The organization targets all semi-urban, rural, and urban areas. Open-door policy has been launched 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. Asian Paints' marketing mix is a well-blended palette of strategic elements. From a diverse product range to value-based pricing, an extensive distribution network, impactful promotion, customer-centric approach, digital transformation initiatives, and a commitment to sustainability, each component plays a crucial role in the company's success in the competitive paint industry.

 Asian Paints Marketing Campaigns

Post Gattu, Asian Paints, teamed up with a company named Ogilvy and Mather and made cool line “Har Ghar Kuch Kehta Hain” which focus was on festive occasions such as Diwali and Pongal, weddings, etc. They still market heavily during festivals, by showcasing festive decor and celebrations, asking consumers to do the same.

The comedic “Wah Sunil Babu Wah” ad became extremely successful with audiences and is still remembered and associated with the brand. The advertisement concept was since Asian paint maintains its freshness and longevity even through the various surroundings and life changes. The company then rebranded to appeal to consumers through high-profile brand ambassadors such as Deepika Padukone and Ranbir Kapoor. The company conducts many campaigns on their YouTube, via short video series. They focus on geographical regions and share their painting suggestions.

 Asian Paints Digital Marketing Strategies

Apart from being famous for its TV ads, Asian Paints is up with the current times and has a strong social media presence, owing to its brilliant digital marketing strategy. Asian Paint’s digital presence is handled by the ad agency Kinnect. They are most engaging on Instagram, where they regularly post home decor inspiration and designs, mentioning every product used in detail, for ease of the consumers.

They host decor competitions periodically, especially during festivals such as Navratri, Diwali, X-Mas, etc. This encourages consumers to decorate their spaces and engage with the company to win exciting services and prizes.

They are doing well at influencer marketing as well, collaborating with popular Instagram figures who have used Asian Paints’ services. These influencers then conduct ‘house tours’ on their pages, promoting Asian Paints.

They post tutorials on using new products on their YouTube, along with short videos of their ads. It also uses data analytics to understand its customers better and create personalized marketing campaigns that resonate with their needs and preferences.

Asian Paints Google Ads Strategy

Picking the Right Words: Asian Paints chooses specific words that match what people search for, like “indoor paint” or “outdoor paint.” This helps their ads show up when people look for these things.

1.  Writing Interesting Ads: They make their ads catchy, talking about what makes their paints special.

2. Showing Ads in the Right Places: This is one of the most important aspects in digital marketing. Their decision where to show their ads based on where they want to sell. Eg.if they want to sell more in a certain city, they show more ads in that particular city.

3. Cool Pictures and Videos: Instead of just regular ads, they might also put-up nice pictures and videos of their paints which can be associated with newly painted home.

4. Talking to Different Groups: They make ads for different types of people. For example, they might make one ad for people who like bright colors and another for people who like calm colors

5. Innovation: They make their ads impressive by innovating like changing the words or pictures, to see what works better. This helps them make the ads even better.

6. Money Plans: They decide how much money to spend on each ad.

7. Monitoring and Correction: They closely monitors on their ads by observing their performance in the market. If some ads aren’t doing well, they figure out why and fix them to do better.

Future Plans of Asian Paints

Amit Syngle, MD & CEO, Asian Paints, is looking to increase the home decor share in the coming years to 8-10% of decorative revenues (latter is 80-85% of total topline) by building an alternate distribution channel on the ground, leveraging online channels, and setting up aspirational stores like the one in Chennai under the Beautiful Home Studios umbrella.

Now, there are 44 Beautiful Home Studios in the country, and the plan, Syngle said, in an investor call last week, was to take that number to 65-70 stores in FY24. More stores are expected to be added in the coming years, he said.

Weatherseal, makers of aluminium and uPVC windows and doors, was acquired for `19 crore in 2022 (51% stake). Further stake buying in Weatherseal will happen in the future, the company said, given that it has a three-year window to do so.

What a marvelous growth story it has been?

Let’s see what the learnings are it has for us.

1. Try new things to stand out: What served as a breakthrough for Asian Paints was that they started manufacturing small packets of paints going against the traditional way of selling paints in tins and bars. They bought a computer that again turned out to be a game-changer for them. Throughout their journey, it has only been the path not taken by others that made Asian Paints what it is today.

2. Align the functions of business the best possible way: They not only aligned production and distribution by investing in computers and IT, but they also innovated at each step and marketed the products well to reach out to the customers. Right from Gattu to getting on board famous celebrities to endorse their brand like Deepika Padukone and Sushant Singh Rajput, they did it all to reach out to customers.

3. There is always room for growth: They have been a market leader since 1967, but they just didn’t stop there. Though they did not have anything left to achieve further, they kept on innovating and expanding to strengthen their position. They ventured into complete home décor to expand their base further. They just did not stop at any point.

 Asian Paints’ innovative business model and effective marketing strategies have helped the company become one of the largest and most successful paint companies in India.

What an incredible journey it has been.

Thank you for reading this article.