DISTRIBUTION STRATEGY – THE TRUTH OF ASIAN PAINTS
Hard anodized cookware Paints (AP) is the marketplace leader inside the Indian fresh paint industry, ordering a market discuss of 32 per cent in decorative paints and thirty-three per cent overall in the organised sector. Its annual product sales turnover exceeds Rs. one particular, 300 crore, way ahead of all the competitors in the industry. In profits too, AP is far forward. AP's industry leadership in the decorative chemicals segments may be grasped properly when we take note of the comparative position from the various players in the industry. Whereas AP contains a market share of 38 per cent, its closest rival, Goodlass Nerolac, orders a reveal of simply 14 per cent. All others have only less than 10 %. Such an achievements by a company that is wholly Indian in capital, management and technology and in an industry historically completely outclassed by multinationals is certainly a good feat. Just how did AP achieve this success? AP's achievement is the combined result of its strong corporate and business and marketing strategies. Maximum credit should, nevertheless , go to its marketing strategy. Inside marketing, it had been distribution quality that took AP towards the enviable location, that it keeps today in the Indian fresh paint industry. This situatio study explains AP's circulation strategy. A STORY OF SYNDICATION EXCELLENCE This case study, actually depicts the distribution technique adopted by AP initially of their operations. The interesting point is that this strategy serves AP well even today, when the context has to some degree changed. In the earlier years, in the decorative paint segment, an extensive product range when it comes to colour and pack size was a crucial factor to be successful. AP actually leapfrogged and overtook almost all its rivals, and provided the largest range of products. In addition, it created the distribution outfit that was essential for reaching the wide range of products to customers in every nook and corner in the country. In the future, technology arrived at the relief of the players in this regard. Consumers could get along with of their choice through mixing up at the retail store. With the help of an automatic machine retained at the retail outlet, paint has the desired colour by mixing up different colours and stainers in the required proportion. The paint corporations need to preserve only half-a-dozen basic colourants with suppliers; mixing may create the other variants. The new arrangement helps the campanies to control with a narrow range of chemicals. They can decrease the number of SKUs handled and cut down inventory holding costs. The above shift has no hesitation reduced somewhat the importance in the physical division task available, compared to the situation in the earlier years. At the time AP entered the Indian fresh paint business, the physical circulation and route management process was the most crucial one in fresh paint marketing. This kind of context is elaborated in one of the sections in such a case study. We can appreciate the lessons of the case research better, whenever we keep in mind this contextual location. Even now, physical distribution and channel supervision continue to be important functions in the business. In the matter of range of products too, companies are not able to entirely dispense with the need for variety in view of the various practical limitations of mixing by retail outlets. It really is no convenient task to provide mixing and computers. Just before we in fact go into AP's distribution technique, let us include brief users of the firm and that of the paint sector, so that the contextual setting of the case is clear. Allow us to start with the industry.
THE INDIAN PAINT SECTOR The fresh paint industry of India is 100 years old. It is beginning may be traced for the setting up of any factory simply by Shalimar Paints in Kolkata in 1902. Till the advent of Ww ii, the industry consisted of just a few foreign corporations, and some small , and indigenous manufacturers. The battle led to a brief stoppage of imports ultimately causing many more neighborhood entrepreneurs setting up manufacturing features. Nevertheless,...