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ASIAN SCHOOL OF BUSINESS

MANAGEMENT
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Submitted by-
ASSIGNMENT ON CONJOINT
ANALYSIS OF ASIAN PAINTS,
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THE
KANSAI NEROLAC AND ICI
DULUX AMULYA PATTOJOSHI PGPM

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(B)-64
SUBJECT-CONSUMER BEHAVIOR
A.NEELAM RAO

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PGPM (B)-61
7/15/2009

Submitted to - ASHA KUMARI

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PROF.ROHIT PARASH
PGPM (B)-69

CHETANDIPTA SWAIN

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PGPM (B)-75

JAYA PRAKASH NAYAK PGPM

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(B)-80

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INTRODUCTION-
Satisfying customers’ wishes is a challenge for many companies
in the today’s rapidly changing and keenly competitive
environment. A thorough knowledge of customer needs is even
considered to be the foundation on which a company is built. In
pursuit of continuously offering better products and at the same
time making profit, companies have to implement well thought-
out strategies. Given price and cost constraints, a company can’t
completely satisfy all its customers’ wishes. Consequently an
important task of a company’s marketing department is to create
a profit maximizing bundle of product or service attributes or in
another word a profit maximizing value proposal. The main
question which has to be answered is — how to use the limited
resources of the company in product and service design and
development to maximize its profit.

Marketing specialists refer to conjoint analysis as one of the best

methods for investigating and analyzing customer needs. Conjoint
analysis means constructing and conducting particular
experiments among consumers in order to model their decision
making process. As the name suggests, potential customers are
asked to make judgments about the attributes that affect their
purchase decisions conjointly, rather than evaluate each attribute
individually. Analysis allows finding out which product attributes
create most value to a customer and how customers are likely to
react to different product configurations. This information can
lead to the creation of optimal value propositions.

THE CONCEPT OF CREATING VALUE TO THE CUSTOMER

For understanding customer needs and studying them

systematically it is necessary to be familiar with the concept of
creating value to the customer. Walters and Lancaster (1999)
have stated that value is created by any product or service
attribute, which motivates the customer to buy the product and
takes him closer to achieving his goals. Attributes of a product or
service that create value to customers can be divided into
(Woodall, 2003):
1) Factors that enhance customer’s benefits or help to satisfy his
needs,
2) Factors that decrease customer’s costs.
Cost can be defined in the broadest sense as everything the
customer has to give up in order acquiring the benefits offered by
the supplier. Costs can be monetary as well as non-monetary
(time spent, aggravation, risk). Benefits can be affected by a
variety of factors. Ferrell (1998) brings out the following main
factors as benefits: product quality, customer service quality and
experience based quality (table 1). Band’s approach (1991) is
essentially the same, but he also includes customer service
personnel compliance to customer expectations because it is
often found that customers can easily perceive the difference
between the adequacy of company’s processes and the behavior
of service personnel Additionally it is also often pointed out that
brand can create value to customers (Best, 2002). And of course
there usually are industry specific factors that customers perceive
as valuable.
Customers usually name many factors as needs. It is reasonable
to organize them into a hierarchic structure — as the first order,
secondary and if necessary also the third level needs. The first
level captures the five to ten most general factors or customer
needs. The second level shows in further detail what it takes to
satisfy the first order needs. Although customers wish all their
needs would be satisfied at once, it is company’s objective to
understand which needs are most important for the customer.
This understanding enables a company to use its scarce resources
in an optimal way, thus creating the most value for the customer.
Clearly company has to make tradeoffs in the performance levels
of attributes which are related to each other.
 Conjoint analysis allows defining customer needs
more accurately than it is possible with using simple
questionnaires. Rather than ask about the importance of
attributes individually, the research setting is made quite close to
actual decision making in a real market: where the customer’s
task is to rank the different product alternatives which are offered
to him and pick out the one that creates most value for him.
Whereas ranking is based on personal preference to different
attributes of every product alternative.
USING CONJOINT METHOD FOR ANALYZING
VALUE CREATED TO CUSTOMER
Conjoint analysis uses customer’s preference-estimations towards
a set of experimental product concepts as an input. Hypothetical
product concepts are presented as the descriptions of the
products in the form of a bundle of particular product attributes.
Concepts are shown on “concept cards”. Based on data gathered
with conjoint analysis it is possible to find the utility of the
examined product attributes to a particular customer and thereby
calculate the relative importance of different product attributes.

Because of the complexity of the conjoint method there are

various approaches to data gathering as well as to data analysis
available. In order to construct the appropriate framework and
substantiate the chosen approach for investigating Asian paints,
Kansai Nerolac and ICI Dulux customers’ needs the different
conjoint techniques and phases are next analyzed. A more
detailed discussion about the conjoint method is presented In
table 3 the main conjoint analysis phases are pointed out
together with the most commonly used alternative approaches. It
is important to clarify that the stages are not independent;
decisions made in every phase affect the next phases and next
decisions.
Attributes and Levels- Any product or service can be modeled as an entity with a set of
attributes. Here as we are making analysis between different paint industries so the most
preferred attributes are –

1. Price
2. Durability
3. Beauty
4. Anti-algal
5. Shade Range
6. Usage

The Number of Levels Effect: -

Holding all else constant, attributes defined on more levels than others will be biased upwards in
importance. For example, price defined as (10-20, 150, 250, 300, above 300) will receive higher
relative importance than when defined as (100, 250, above 300) even though the same price
range was measured. This hold true for quantitative (Price, shade range etc.) as well as
categorical (Brand, durability etc.)
The above 8 attributes and 31 levels can be defined as the competitive market for paints between
Asian paints, Kansai Nerolac and ICI Dulux. If you can define a market using this model, you
can use conjoint analysis for consumer behavior and preference.

Choice Based Conjoint

Choice based or Discrete Choice Conjoint is by far the most preferred model for a conjoint
questionnaire. This is primarily because it models after consumer behavior in real-life. Most
purchases that consumers make today are basically trade-off based. Will you buy a Rs.250 per ltr
color paint 5 year durability having high anti-algal or a Rs.80 per ltr having no durability and
having no anti-algal protection?

Product Name: Asian Paints Apex

Description: Apex Weatherproof Exterior Emulsion is a water-based 100% acrylic, exterior wall
finish. A high performance, long-lasting exterior paint specially formulated to withstand extreme
tropical conditions of high rainfall, humidity and heat, Apex provides excellent resistance against
the growth of algae and fungi on the walls. It offers excellent protection against alkali and UV
degradation too.

Cost Range: Mid-Range

Finish: Rich Sheen
Availability: Across all Colour World Dealers
Features:
Weather Proof Exterior Emulsion, Exterior cement plaster, false ceilings, asbestos sheets,
concrete, not to be applied on Mangalore tiles, 50 - 60 sq ft / ltr Soft Sheen 5 year’s 2 coat Apex
application @ 40% dilution 4 hrs between coats .
 Product Name: Asian Paints Royale Play

Description: Asian Paints Royale Play is a water-based special effects paint designed to create a
variety of special effects on interior walls.

Cost Range: Premium

Finish: Faux Finish
Availability: Across all Colour World Dealers
Features: Royale Play Special Effects Paint Royale Luxury Emulsion basecoat (chosen shade)
100 sq ft per ltr (1 coat) Soft Sheen 3 years Asian Paints Deco prime ST/WT + Asian Paints
Acrylic Putty + Asian Paints Deco prime ST/WT + Royale 40% dilution (2-3 coats).

Product Name: Asian Paints Premium Semi Gloss Enamel

Description: Premium Semi Gloss Enamel is safe and healthy water-based enamel which can be
applied on suitably prepared masonry surfaces, wooden and metal surfaces. It has features like
odour and fumes free, meets EN 71 standards, has low VOC, and is quick-drying such that 2
coats can be completed in the same day.

Cost Range: Premium

Finish: Semi Gloss
Availability: Available through Asian Paints Project Sales or Asian Paints Home Solutions
Only.
Features: Premium Semi Gloss Enamel can be applied on wood, metal surfaces and walls 90-
110 Semi Gloss 3 years with 2 coats of Premium Semi Gloss Enamel.
Nerolac Impression 24 Carat Premium Luxury Emulsion

Product Description

Nerolac Impression 24 Carat Premium Luxury Emulsion is a premium quality

Architectural coating specially formulated by using pure acrylic latex, and high
opacity micronized pigments so as to impart smooth velvet finish, with
excellent washability.

Technical Data

Coverage** On Smooth and non-absorbent surface.

220 - 240 sq. ft/ltr/coat.
Drying Time Surface Dry : 30 minutes
@27 ± 2°C & RH 60 ± 5% Recoating : After 4 - 6 hours
Gloss Levels/ Sheen levels Sheen
Thinning 50% by volume using water
Flash Point NA
Stability of Thinned Paint Use within 24 hrs.
Shelf-life 1 year from date of manufacture in original tightly closed
containers away from direct sunlight and excessive heat.

Nerolac Impression Excel Anti Peel Acrylic Exterior Paint

Product Description

Nerolac Impression Excel Anti Peel Acrylic Exterior Paint is premium water
based, high performance, long lasting exterior paint, formulated to suit the
extreme tropical conditions of high rainfall, humidity and heat. The product is
based on 100% Acrylic resin and hence it forms a tough and flexible protective
film, with an excellent bonding to the substrate, which prevents peeling off or
cracking for years together. Nerolac Impression Excel Anti Peel Acrylic Exterior Paint contains a
unique combination of surface protect ants, which are released slowly.

Technical Data

Coverage** On normal masonry surface by brushing:

130 - 150 sq. ft/ltr/coat.
Drying Time Surface Dry : 30 minutes
@27° ± 2°C & RH 60 ± 5% Recoating : 4 - 6 hrs.
Gloss Levels/ Sheen levels Sheen
Thinning Self Priming – Thin 100% by volume with Water
Top Coat – Thin 40% by Volume with Water
Flash Point NA
Stability of Thinned Paint Use within 24 hrs.
Shelf-life 1 years from date of manufacture in original tightly closed
containers away from direct sunlight and excessive heat.

Nerolac Impression Hi-Performance Enamel

Product Description

Nerolac Impression Hi-Performance Enamel is a specially designed coating

having a judicious blend of high quality resin & light fast pigments. It is
recommended for suitably primed interior & exterior wooden, masonry and
metal surfaces

Technical Data

On Smooth non absorbent surface.

Coverage**
210 - 270 sq. ft/ltr/coat.
Drying Time Surface Dry : Max 5 hrs.
@27 ± 2°C & RH 60
Recoating : Min. 16 hrs.
± 5%
Gloss Levels/ Sheen
Glossy
levels
Upto 50% by volume using Nerolac Gereral Purpose Thinner &
Thinning For one coat finish upto 20% by volume using Nerolac Gereral Purpose
Thinner
Flash Point Not below 30°C
Stability of Thinned
Use within 24 hrs.
Paint
1 year from date of manufacture in original tightly closed containers
Shelf-life
away from direct sunlight and excessive heat.
Dulux Velvet Touch is specially formulated to give a Pearl Glow finish with a unique soft
sheen and velvety smoothness to walls and ceilings.

Dulux Weather Shield Max

Ordinary exterior emulsions cannot protect exterior walls from patches of dampness,
algae, and fungus caused by rain. Dulux Weather Shield Max is especially formulated to
give long lasting protection and beautiful looks.
Dulux Water White Melamine

High performance two component system that has excellent decorative properties and
forms a hard colorless transparent protective layer. It is suitable for use as a coating to all
interior and sheltered exterior wooden surfaces. It is available in gloss and matt variant.

Attributes
Sl. Company
Shade Coverage in Anti-algal Durabilit Price
No sq ft/ltr (1
range y range per
Coats) 1ltr In Rs.

01 Asian Above Average 225 sq Excellent Average 20 to

paints 1000 ft/ltr 5 years 500
02 Kansai 500-700 Average 200 good Average 30 to
Nerolac sq ft/ltr 4 years 300
ICI- 700-1000 Average 250 sq good Averag 40 to
03 ft/ltr
Dulux e 3.5 300
years

Ranking as per Shade range Attribute:

COMPANY ATTRIBUTE RANK
ASIAN PAINTS Shade range A
Kansai Nerolac Shade range C
DULUX Shade range B
Ranking as per Coverage in sq ft/ltr (1 Coats) attributes:
COMPANY ATTRIBUTE RANK
ASIAN PAINTS Coverage in sq ft/ltr B
(1 Coats)

Kansai Nerolac Coverage in sq ft/ltr C

(1 Coats)

DULUX Coverage in sq ft/ltr A

(1 Coats)

Ranking as per Anti-algal attribute:

COMPANY ATTRIBUTE RANK
ASIAN PAINTS Anti-algal A
Kansai Nerolac Anti-algal B
DULUX Anti-algal B

Ranking as per Anti-algal attribute:

COMPANY ATTRIBUTE RANK
ASIAN PAINTS Durability A
Kansai Nerolac Durability B
DULUX Durability C
 COMPANY ATTRIBUTE RANK
ASIAN PAINTS Price range per 1ltr In Rs. C
Kansai Nerolac Price range per 1ltr In Rs. A
DULUX Price range per 1ltr In Rs. B

FINDINGS-

From the above analysis we find that Asian paints are the most preferred brand in
terms of paint and colors followed by Dulux and Kansai Nerolac paints.

CONCLUSION
Knowing customer needs and designing accordingly appealing
value proposals is a crucial success factor in today’s competitive
markets. The aim of consumer research is to shape such a value
proposal that would maximize the market share or profit of the
product, giving guidance to the company about how to best use
its limited resources. Conjoint analysis consists of planning and
implementing experiments among consumers in order to model
the consumer purchasing decision and to understand which
factors create value for the customer. Conjoint analysis embodies
more than seven major phases: it starts by selecting the product
attributes or factors which fulfill customer needs and finishes with
stating the relative importance of different attributes to customer.
All the major phases were discussed in the paper, to point out the
alternative approaches that a researcher could take, with the aim
of creating a suitable framework for implementing the research in
the case of Asian paints, Kansai Nerolac and ICI dulux. For
performing the conjoint analysis in the study of Asian paints,
Kansai Nerolac and ICI dulux customer’s needs, the full concept
approach was chosen. As the result of preliminary analysis and
structuring of customer needs, the six most important product
and service attributes were selected for further analysis.