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Segmentation Of Decorative Paints Sector Marketing Essay

Info: 1325 words (5 pages) Essay
Published: 1st Jan 2015 in Marketing

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On the whole Asian Paints has segmented its market based on utility of the products, recognizing 3 major segments – (i) Decorative Coating, (ii) Industrial Coating and (iii) Automotive Paint.

The Decorative Paints sector encompasses a wide variety of interior as well as exterior paints, including Asian Paints Royale, Asian Paints Premium Emulsion etc. These are used primarily by homeowners, builders, developers, interior designers etc.

The 2nd sector, Industrial Paints, targets the industry where paint is used as a protective coating on machinery, as lubricating agents for machinery, for road marking and for other industrial uses.

Automotive Sector is a fast growing market for paints with products such as Aluminium Paint and Fibre Paint available in different colours for painting vehicles and their spare parts.

Focusing on the Decorative Paints sector, Asian Paints has established itself at the No. 1 position through a strong brand equity and large distribution network. Due to a high brand awareness and presence since 1942, customers tend to lean towards Asian Paints even in the face of competition.


The foremost factors that consumers consider while purchasing paint are durability, price, health and environment, in that order. The quality of paints is a prime pre-purchase factor.

Since years Asian Paints has been delivering high quality and differentiated products in this sector. It has managed to create its own brand value and presence in the Paint Market. Hence home owners, decorators and developers tend to favour this brand over its competitors.

As far as the Indian market is concerned, the frequency of repainting walls is still around 5 years, and hence consumers are on the look-out for better quality and hence branded paint.

Asian paints offers varied products at a wide range of prices, which caters well to consumers of different income groups. For instance, “UTSAV”, a low-value paint, is fast penetrating the lower income group, helping the company to move from metros to small towns for branded products.

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An efficient Customer Service and a novel concept of ‘Colour Stores’ greatly helps widen customer base as far as Decorative Paints sector is concerned as it helps consumers visualize and plan their wall shades before purchase. Such a service has gone a long way in enhancing image and awareness of Asian Paints in the recent years.


The Decorative Paints Sector has primarily the following product offering on which the market could be segmented.

Exterior Paints – ACE, Apex, Apex Ultima, Apex Duracast and more, based on the specific demand of surface area.

Interior Paints – Distempers, Enamels, Emulsions

Wood Finishes

Metal Finishes

Ancillary Products – primers, putties etc.

Segmentation of the market could be carried out on the basis of the following parameters

Buyer Characteristics / Economical Status of the buyer

Up market buyers and high quality seekers

Upper Middle class – High income group and socially conscious

Middle Class – Low income group and rural market

Key Factor for Purchase

Quality and Finish of paint

Colour variety

Cost and economical worth

Mode of purchase

Purchase from showrooms and Colour Stores

Purchase influenced/ made by painters/contractors/carpenters etc

Buying in bulk by developers


Exterior paints are targeted at builders, real estate developers and contractors. An exterior finish known as ‘gattu or ‘cement paint’, is used on walls as it is extremely economical and durable. The main requirement for such customers is the durability rather than smoothness or colour.

Interior Paints on the other hand are targeted primarily at home owners, interior designers, as well as carpenters and contractors. Here stress will be layed on the smoothness, texture, colour and finish of the paint. The colour stores go a long way in promoting the Interior Emulsions.

The primars, putties and the other such ancillary products would be purchased by contractors and carpenters as a part of the painting process.

Targeting maybe based on the quality and pricing of the paints. Within each segment, Asian Paints offers innumerable products.

In the Exterior Emulsions Asian Paints Apex Ultima is a premium, high-performance brand which caters to the economically higher class and is used on premium buildings. Asian Paints Apex is a Mid Range brand catering to the next segment of society.

Similarly, in the Interior Paints sector, the products are price-differentiated in the following way


These are water based paints Acrylic Emulsions are extremely durable

Eg: Asian Paints offers three brands to choose.

Premium – Apcolite Royal Acrylic Emulsion.

Medium – Apcolite Super Acrylic Emulsion.

Economical – Super Decoplast


These are also water based paints but their binders may be very natural or synthetic. Distempers are economically priced, they offer good value for money as they are durable.

Eg: Asian Paints has

Tractor Acrylic washable Distemper.

Tractor washable Synthetic Distemper

Asian Paints can follows a V-Tier Customer Target Strategy

Tire – 1 – On the recipient end there are strategic solution seekers. Company thinks of cost reductions, performance & productivity improvement for clients, improving customers’ & shareholders’ profitability.

Tier -2 – Here the customers can be considered as value or brand sensitive. Asian paints targets these customers with value added VDS integration customer level service.

Tier -3 – These consumers are price sensitive. They are least bothered about the service. These are mainly middle or low income group people Asian paints have several brand like UTSAV – to serve them.

Tier-4 Here the company targets the small manufacturing & local companies, which can generate revenue. Company utilizes its business & telesales technology to address & satisfy their needs.

Tier-5 – This tier is composed of specific targeted companies that although small in size, deserve special attention because they are highly innovative in nature. Asian paints has a good prospect over here.


From 1999, Asian Paints has undergone a transformation and repositioning, thereby emerging as a consumer oriented, value added paints company. The consumer market had steadily been changing, and repainting of houses primarily during festival seasons was becoming a less dominant trend. Painting became less seasonal and utility based. Instead, consumers became more aware and conscious about home d├ęcor and home making.

The rise in colour consultants and Interior designers also contributed greatly to this trend. As a result, Asian Paints began to position itself as a part of this high voltage emotion of home creation.

Core Thought : “Asian Paints is about people who invest emotional energy in creation of their homes”

This sentiment is captured even in the advertisements where painting a wall is associated with a number of different events or emotions.

Change in Visual Identity

Asian paints revamped its image as well as its packaging to get a more contemporary and international look and enhance the visual appeal of the brand.

Service Offering

Asian Paints introduced a new dimension of service offering – where it finally delivers not just paint but a painted home.


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