Asian Paints - Adding Colours

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Case Details:

Case Code : MKTG053
Case Length : 13 Pages
Period : 1997-2002
Pub Date : 2003
Teaching Note :Not Available
Organization : Asian Paints Limited
Industry : Decorative Paints
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"Is the common man important? Frankly, I think we don't need a mascot anymore."

- Rajiv Kumar Garodia, Advertising Manager, Asian Paints in July 2002.

"We want the logo and the packaging to reflect the new mood we are trying to move the brand towards."

- K.B.S. Anand, Head, Vice-President, Sales & Marketing, Asian Paints in September 2002.

Changing Colours-Literally

In July 2002, India's leading paints company Asian Paints Limited (AP) announced it was dropping its famous mascot - 'Gattu'- from its logo. Analysts were surprised at this move as over the last 45 years, Gattu had emerged as one of the most recognizable mascots in India, leading to instant recall of the company AP.

However, the company sources felt that with the changing focus of the company, 'Gattu' has lost his relevance. In 2002, AP was the market leader in the Indian decorative paints segment with a market share of around 44% (Refer Table I). It was also one of the top 15 global paints companies.

The success of AP has been attributed to its customer-centric approach and aggressive marketing initiatives, which had changed the way industry, functioned (Refer Exhibit I for a note on paints industry in India.) AP wanted to be one of the top five companies in the global paints industry by 2007.

In order to achieve this goal, it focused on three main areas - building the AP brand in terms of a new product portfolio, changing its logo and packaging. The new AP was expected to be even more customer-friendly and service-oriented.

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