Market segmentation :
Asian Paints segment the market based on the usage :
It is how the Asian paints enabled people to form a mental image for their products in the customer’s mind. The strategies that they followed where as follows,
The ways in which Asian Paints attempted to meet the customer’s psychological and social needs. Indian paint industry is a low involvement industry. Till 1990s people will just tell their budget for painting their house to their contractors. And few customers will also mention the colour they need. During that period Asian Paints analyzed the customer market and found that people where not brand conscious but their concern was only the price of the paint. To meet this needs of the customer • Asian paints reduced the cost of the raw materials by backward integration in order to reduce the cost of the paints • Established an advertising strategy with created an emotional touch among the customers All these strategies helped them in creating a “Brand Image” for their products among people and people started realizing the need for brand conscious in this industry.
In 2004 the company realized that though they have almost 20 brands only few products like Apex emulsion, Royale interior emulsion, Apcolite and Touch wood had high recall among the customers. Therefore they decided to promote the brand as a whole, to create a corporate image and the various products under their Umbrella Brand – “Asian Paint”, which became their mother brand. This created a “Brand Awareness” as a whole among the customers.
It was realized that instead of spending on individual brands and in promoting them it was logical to promote their corporate image and allthe brands under their umbrella brands “ Asian Paints “. Thus Asian Paints has become their mother brand . Also for this purpose they underwent brand portfolio rationalization . The principle...
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