13265528 Nippon Paint Pakistan Marketing Project

COMPANY PROFILE

The company was first founded in Japan as Komyosha in 1881 by brothers Haruta and Jujiro Moteki. Together with their chief engineer Heikichi Nakagawa, they began business with projects for the Japanese navy and soon progressed to the production of viscous paints. In 1896, the company moved all their production activities to a new factory in Tokyo. Two years later in 1898, Nippon Paint was established as Japan's first true paint manufacturing company.

Nippon Paint's presence quickly spread across Japan. In 1914, having secured the domestic market, the company expanded into China, India and the South Pacific. After making inroads into Taiwan and North China, Nippon Paint established the Pan Malaysian Paint Industries in 1963 - today known as Nippon Paint Singapore. In 1967, four years later, Nippon Paint Thailand and Malaysia were established.

Innovative product breakthroughs have been a hallmark of Nippon Paint's growth through the decades. In 1986, the advanced "Photo ED" system for printed circuit boards was introduced. In 1992, the company introduced two more highly advanced innovations to the industry - the "Flexceed" printing plates which could be developed in water; and the water-borne recycling system.

Now recognised as the paint industry leader in Asia, our paints and coats have made inroads into diverse aspects of life all around the region. In cities across Asia as varied as Ho Chi Minh and Seoul, Kuala Lumpur and Jakarta, the company plays diverse roles, enhancing and improving different aspects of life and business. In Vietnam, for example, we have acquired more than 70% share of the motorcycle coatings market.

In China, Nippon Paint was the first to launch the Colour Tinting System, installing more than 800 of these systems across the country. Offering more than 1000 colours, shades and hues, this service innovation has changed the way paint is retailed in the country.

Besides bringing quality paint and coatings to all parts of the region, Nippon Paint constantly seeks new products and coatings that are more eco-friendly. This focus on protecting the environment has earned both our Singapore and Taiwan operations the coveted ISO:14001 certification in 1997 and 1998 respectively.

INSTITUTE OF MANAGEMENT SCIENCES (PAKAIMS)LAHORE 1

Nippon Paint Pakistan (Private)Limited

Nippon Paint (Pakistan) (Private) Limited marked the successful entry into Pakistan with the first sales going out on the 5th of November 2007. Head Quartered in Japan, Nippon Paint is the largest paint manufacturer in Asia.

The company will be investing $25 million in Pakistan over the next three to five years, which will include a manufacturing facility in District Kasur, near Lahore. Currently, Nippon Paint Pakistan is doing business with 200 outlets nationwide of which 113 are equipped with the Nippon Paint Colour Creations Tinting Systems. We aim to have 200 Colour Creations Outlets by the end of the year 2008. The distribution network is currently spread from the far South, Karachi and Gwadar to the hilly areas of Mingora and continues to spread.

All authorized dealers are equipped with Nippon Paint Colour Creations™ which is an

innovative computerized paint system which allows the consumer to choose from

thousands of colours and the selected colour is made available within minutes.

With Nippon Paint Colour Creations™, consumers no longer are limited by the

choices of colours as they can choose from our range of thousands of colours, and


the paint will be mixed right before their very eyes. Nippon Paint Colour Creations™ is set to transform the Pakistan paint market.

Nippon Paint has specially formulated products for the Pakistan market. The five main products being, Nippon Weatherbond for exterior walls, Nippon Brilliance Matt Enamel, Nippon Perfect Emulsion and Matex Gold for interior walls, and Nippon 9000 Gloss Finish for wood and metal substrate. The special formulation is the result of Nippon Paint's research and development for products to suit the substrate surfaces peculiar to Pakistan. At the same time, supporting products such as wall sealers, primers and wall putty are also available.

Nippon Paint Pakistan's plant will be operational during the last quarter of 2009, and will initially employ about 300 people. Output from the plant will be for local consumption and possibly for export to neighboring countries. In the interim period, Nippon Paint Pakistan is importing from its Malaysian plant so as to meet the current local market demand for its products.

Nippon Paint is the largest paint manufacturer in Asia and a leading name in paint worldwide. It is number one in Japan, China, Indonesia, Singapore and Malaysia; and a key player in Thailand, Vietnam, Taiwan, Korea, Hong Kong, The Philippines and India.Throughout these countries, Nippon Paint is known for its dedication to high-quality, innovative products and excellent customer service

VISION

INSTITUTE OF MANAGEMENT SCIENCES (PAKAIMS)LAHORE

We aim to build upon the strength of current foundations to meet

the demands of the new millennium everywhere across the globe.

We seek to live in harmony with nature and society, playing our part as responsible citizens by enhancing and beautifying our surroundings, protecting nature and encouraging the personal growth of our people.

We seek to explore new technologies and markets, and create paint innovations that respond to customers' needs.

We seek to develop innovative and technologically advanced paint products that will enhance beauty and protect our surroundings.

We will create a workplace that maximizes the potential of each person, that creates

mutual interdependency and trust, and that instills collective pride and identity.


Management Principles

The Nippon Paint Group is committed to contributing to the welfare of society as a whole through its business activities, working together for the mutual harmony and benefit of everyone.

Corporate Vision

· The Company is working to expand globally as a specialty chemical company, offering high value-added coatings.

· Our fundamental commitment is to become a trusted, eco-friendly company that helps protect the environment.

The 5 Cs Code of Behavior

CredibilityWe shall respond to public confidence in our performances with right and fair judgment, keeping in mind a high sense of integrity and responsibility.

Customer-orientedWe shall meet customer expectations by providing them with the best solutions through the Group's joint forces and all-out efforts.

CreativityWe shall create new values with wisdom, foresight and highly flexible ideas.

ChallengeWe shall establish the highest possible goals and make every effort to achieve the highest levels of standards in the world.

CollaborationWe shall cultivate a corporate culture of freedom and generosity through positive communication and cooperation by acknowledging the diversity of human characteristics.


President Message

Time for a change.

Nippon Paint's new management system to become effective as of April 1 was decided on at the Board of Directors meeting held on February 26. At this time, a new organization to be launched after the upcoming General Meeting of Shareholders scheduled for late June was also decided upon. Announcements regarding the new systems were made immediately.

I will be relinquishing the post of representative director and president on March 31, and will then become non-executive corporate adviser after the shareholders' meeting is concluded. When first appointed president, it was my intention to work as hard as possible until I “burned out.” The four years passed as expected, but the “burning out” part left me with various regrets. Such a rapid deterioration of worldwide economic conditions like we are currently experiencing was something we could not have known. At such a time, our shift to a new management system carries much more significance. We have indeed put “new wines in new bottles.”

Mr. Kenji Sakai will assume the post of president effective April 1. He is a man of outstanding management sensibilities and great acumen, whose technical background is cloaked by his business achievements, one being spinning off a non-profitable business into a separate joint-venture company and successfully rebuilding it. His warm personality and popularity were also factors I took into consideration in selecting him as the right man who will look after my duties after I step down. And though the business environment surrounding us is extremely challenging, I am confident that all Nippon Paint Group employees will unite under the leadership of the new president and overcome numerous difficulties.


Nippon Paint will celebrate the 128th anniversary of its foundation on March 14. As the day approaches it is my particular wish that the Company will continue to build on its history, adding its role as a corporate entity that

benefits society as it heads toward its 150th and 200th years.

It has been a fulfilling four years and I would like to take this opportunity to thank all for the unflagging support and guidance I received while serving in the capacity of president.

We will cover the world..

Mission Statement

To be the partner of first choice for customers and suppliers, ensuring sustained leadership position in the markets where we compete, delivering long-term business value through a high performance culture, innovation, ethics and responsible care.

The company's employees are constantly encouraged to pursue the fulfillment of the Corporate Mission Statement.

.


We will achieve corporate success through an unwavering commitment to provide our customers high quality products to their ultimate satisfaction.

We will vigorously promote and safeguard the interests of our employees, our shareholders, our suppliers and all our others business associates.

We will stay in the forefront of innovation and technological development in the paint industry

We believe in:

1. Focusing on our customers’ future first 2. Embracing entrepreneurial thinking 3. Developing the talents of our people 4. The courage and curiosity to question 5. Integrity and responsibility in our actions

These values give us standards to measure ourselves by, particularly in our dealings with customers, suppliers, our own people and the wider world. The values have real meaning for us and the way we behave.

Here’s what each of them means in practice:

Focusing on our customers’ future first:

We can guarantee our future only by giving our customers products and services that improve their future. So this value comes first. It’s our priority and the reason why we exist.

We’ve always met the needs of our customers – that’s why we’ve grown. But now we make it very clear: it’s the basis of everything we do.


Embracing entrepreneurial thinking:

New thinking and new ideas are everything – if we’re to compete. So we need an environment and a mindset that encourages new ideas from individuals and teams.

“Yes”, not “Yes, but...”

“Why not?” not “Why?”

We might fail occasionally, but we’ll get great ideas to market more quickly as a

result. And we’ll keep more people with truly original ideas within the company.

Developing the talents of our people

Our business will grow if our people grow too. So we’re committed to professional and personal development. We’ll do all we can to develop existing talents, nurture new skills and progress within AkzoNobel. Through this commitment, we’ll attract and retain people of the highest quality to develop the business.

The courage and curiosity to question

AkzoNobel isn’t one of those companies with a set way of doing things. We dislike rigid hierarchies and we want our people to take a broad, interested view of the world. We like them to ask questions. “Is there a better way?” There generally is a better way, if we challenge ourselves and our customers to look at things differently. It’s the way we improve.

Integrity and responsibility in our actions

Business needs to work within a framework. Our employees have to be aware of rules and regulations that they must comply with, in whatever part of the world they work. But integrity and responsibility go deeper than that. They’re about doing


things in the right way, as individuals and as a company.Ethical and responsible behavior matters to our business. If we do the right things, people will know we’re a company that can be trusted. They’ll then be more likely to

work with us and invest in us – which is good for our long-term growth.

GoalsNippon’s paint main goal is to create value for shareholders through

serving the customers, employees, partners and the general public interest..

Sponsor of Nippon paintSponsor of Nippon paint is itself Nippon paint Japan

which is parent company .Nippon paint Japan invest $25

Million to start Nippon paint operation in Pakistan and has

planned to invest more in the Pakistani market .Nippon paint

Japan is operating in approximately 57 countries and it is in

the top ten paint companies in Asia and have enough

resources to start its operation in any country like Pakistan

and don’t need any external financing as yet .

Management Hierarchy Of Nippon,s paint

Pakistan


OUR QUALITY QUEST

We are committed to delivering the highest standards of quality. This commitment is demonstrated throughout our business relationships with customers, suppliers as well as investors.

Our quality quest has gained numerous prestigious

certifications. Most of Nippon Paint's factories in the region are ISO 9002 certified. Our Singapore operation is also in the Singapore Quality Class, a recognition of the company's drive towards


international standards for excellence in business practice. In the year 2000, Nippon Paint Singapore also became the first paint company in the country to receive the ISO 9001:2000 certification, the latest quality management

standard.

These accolades are a result of Nippon Paint's stringent quality standards. These standards are evident in every initiative the company undertakes-whether it is the acquisition of raw materials, the recruitment and training of employees or customer relationship management.

QUALITY MATERIALSWe source out raw materials only from top suppliers. Each product is monitored throughout the manufacturing process to ensure adherence to strict quality standards.

QUALITY PEOPLENippon Paint provides professional training for employees and offers them ample opportunities for personal growth and advancement.

Early Colours of Life

Some facts about Paint

Who were the first ever to use paint?The earliest use of paint can still be seen today in caves of prehistoric men.

These crude paints, created some 30,000 years ago by cavemen, were used to

document various aspects of life such as hunting. Back then, the colours were

limited to black, red and yellow, together with intermediate tints.

How did mankind discover how to create different coloured paints?In the period 3000BC to 600 BC, the Egyptians expanded the colour range


with their chemical processing techniques. Some of the pigments they

created include green, black and white. Lake pigments, an important

paint group even today, were also first developed by the Egyptians.

In the Middle Ages, the range of coloured pigments continued to grow as people experimented with different materials to get new colours. A brown pigment called Mummy, for example, was prepared from the bones and bodily remains of Egyptian mummies.

How did science create a wider range of paint colours?In 1704, Prussian blue was developed as the first known artificial pigment. The end of World War One also saw the introduction of synthetically manufactured pigments and dyes. In 1918, titanium dioxide was produced. This pigment was to replace white lead completely. It offered improved whiteness and 'hiding' power of paint.

Who were the first to use paint for their protective properties?One of the first people to use paint for its protective properties were the Romans. Studies show that red lead was used to protect and preserve timber in 600BC in Rome. Early Greeks also used paint for their protective value, waterproofing their ships' bottoms with pitch and wax. However, Europe only began to fully recognise the protective value of paints around the 13th century. During the Middle Ages, paintings were protected by varnish made by dissolving suitable resins in hot linseed, hempseed or walnut oil.

When did Asia discover and begin to use paint for its protective value?Japan was using a totally different sort of coating for its protective value. Lacquer, a clear coating that brings a sheen of sturdy protection to surfaces, was used as early as the Stone Age in Japan. From about 4,000 years ago, lacquer was already used widely for tableware, utensils, weapons and various accessories.

How did the Industrial Revolution lead to the expansion of paint?Paint, in particular its protective function, was given a big boost during the Industrial Revolution as demand was then high for anti- corrosive coatings that could delay or prevent rust and corrosion in metals. Lead- and zinc-based paints were developed to fulfil these needs.

Many other types of paints and coatings were also created to respond to the growing needs of paint to protect and preserve. By mid 1800s, the Western world's paint industry was growing healthily as an increasing number of paint manufacturing companies were founded.


How did the war impact the paint industry?The World War did much to accelerate the development of paint. For

example, large quantities of nitrocellulose - a chemical used prior to this in paints - were used for explosives during the war. With the end of the

war, this excess nitrocellulose was put to good use as automotive coatings.

Into the FutureThe paint industry today is a multi-million dollar industry. Beyond attractive colours, the industry now covers a large number of disciplines including polymer chemistry, rheology and pigment technology. Much investment has been channelled into dedicated research to develop paints and coats that not only look good, but also offer increasingly improved functionalities such

as anti-corrosion and heat-resistant properties.

Present day research is focused on developing products that preserve the ecological balance and protect life. The challenge today is to create eco-friendly products such as water-borne coatings and lead-free paints, amongst other products.


SWOT Analysis

The overall evaluation of a company’s strength, weaknesses,

opportunities and threats is called SWOT analysis. It involves monitoring the

external and internal marketing environment. External environment includes

opportunities and threats, whereas internal environment includes strength

and weaknesses. Nippon’s paint is setting up new corporate identity as a

result of dynamic changes in paint industry.

The SWOT analysis is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organizations. SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats.


Strengths

The

major

strength

of

Nippon’s

paint is

affiliatio

n with

Nippon

paint

Japan

and its

latest

technolo

gy .

Another strength large amount of colour and latest colour scheme

.

Quality

of its

product

is also

major

strength

because

Nippon

paint is

providin

g high

range of

products


Weaknesses

Coverage - Just like Berger and ICI paint coverage is almost all

major areas of the country , Nippon,s paint is still laking this and

coverage is not present all over the prime areas of the country

where paints products is being demanded by the customers..

Number of Dealers Nippon’s paint is the fastest growing paint

company in Pakistan on the other hand there are only a few

dealers in Pakistan which amount only 250.

Price factor: Price factor is another weakness of Nippon’s paint

because its competitors are offering less prices and other attractive

incentives to their customers so it has to give weight age to this factor.

Promotion : Promotion is most important tool is order to attract

customer to your product but Nippon’s paint promotion not up to

the mark still it not familiar to general public to extent.

. Opportunities

Increase Promotion : Nippon’s paint has opportunity ti increase

its promotion in order to get interact wit people . and to increase

their sale volume .It has recently enter the market it should

increase their promotion rapidly and should invest on it in order to

make their product familiar to customers.

Increase converge: Nippon’s paint can increase its coverage

through the country in order make its product available to

customers.

Decrease Price: Nippers paint can increase its sales by

decreasing its prices o its products and it is a great opportunity for

them to take over the market.


13265528 Nippon Paint Pakistan Marketing Project

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Transcript of 13265528 Nippon Paint Pakistan Marketing Project