Digital Innovation at Asian Paints
Case Code: BSTR563
Case Length: 16 Pages
Pub Date: 2019
Teaching Note: Available
Organization: Asian Paints Ltd
Themes: Digital Innovation, Digital Strategy, Repositioning, Digital Adoption
Abstract Case Intro 1 Case Intro 2 Excerpts
Repositioning Asian Paints
The company realized that urbanized India had the largest working youth population in the world, and that they also had high disposable incomes. The company believed that urbanization increased the younger generation’s ability to afford finely designed and decorated homes.
Consequently, Asian Paints decided to transform itself from a predominantly brick-and-mortar product manufacturer into a company that provided various value-added services. K.B.S added, "There's been a massive transformation in the Indian consumer. Earlier, people used to paint when the walls were peeling. Now it’s about decor. A person can choose a particular pattern with a particular color. We perceived this before most of our competition."...
Innovative Store Concepts
Asian Paints called the dealer stores through which its products were sold 'Asian Paints Color World'. Over the years, the company had invested heavily in building a strong dealer network. Each dealer was provided with a tinting (color dispensing) machine, that bolstered the company's distribution strength. The high level tinting machine cost the dealer Rs 0.25 million. Dealers could procure the tinting machines and install them in their stores to provide the various colors offered by Asian Paints......
Diversifying into Bath and Kitchen Spaces
In 2012, Asian Paints came out with a new logo and brand positioning which said, "To be the fore runner of inspiring décor and to actively empower customers to create their dream homes." The company focused upon creating a corporate brand identity by renaming itself 'AP'. The company recreated its brand portfolio and laid emphasis on best-selling brands, neatly clubbed under verticals like exterior (Apex Ultima), interior (Tractor Emulsion, Royale, Royale Play), solutions (Ezycolour), and waterproofing (SmartCare)....
On the Forefront of Digital Adoption
Asian Paints pioneered the use of various digital technologies through the years, and these played a critical part in its growth. As the company went through a paradigm shift in terms of size and brand positioning, the company management felt the need to upgrade its internal processes for expeditious execution of its deliverables. As a result, the company focused more on implementing digital technologies to achieve speed and accuracy in its operations. The company emphasized making technological advances from its shop floors to warehouses...
Innovation Through R&D Labs
Asian Paints had a Research and Technology Center at Turbhe, near Mumbai, Maharashtra. Spread across an area of 200,000 square feet, it was the largest dedicated R&D facility of a paint company in India. The main driving force behind the establishment of the R&D facility was the manufacture of environment friendly and technology intensive paints. Mosongo Moukwa, Vice-President of Technology of Asian Paints, said, "Research and development is the life broth of manufacturing companies, enabling them to grow and compete...
Challenges and Opportunities for the Future
Despite the innovations and implementation of digital technologies, Asian Paints struggled with its Q2 2018 revenues. Its profit after tax (PAT) also came down to Rs 4928 million from Rs 5759 million yoy. In Q2 2018, the company also witnessed a fall in its growth margin to 16.9 % from 18.7 % yoy. However, the staggering result was also attributable to a sudden increase in its raw material costs due to the increase in crude oil prices in July 2018...
Exhibit I: Market Share of Asian Paints in India, as of 2017
Exhibit II: Revenues and Profit After tax (PAT) of Asian Paints from 2013-2017
Exhibit III: Subsidiaries of Asian Paints, as of 2018
Exhibit IV: Services Provided under the Asian Paints Home Improvement Solutions
Exhibit V: Information on Asian Paints Products, Segments and Brands
Exhibit VI: Paint Manufacturing Plants of Asian Paints, as of 2018
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