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Asian Paints: A Story of Distribution Excellence

Asian Paints (AP) is the market leader in the Indian paint industry, with a 38% market share in decorative paints and 33% in the organized sector. AP has significantly higher market share than its next largest competitor, Nerolac, which holds only 14% market share. AP has been able to maintain its leading position through superior marketing and distribution strategies, including expanding into rural areas earlier than competitors, implementing an open dealer policy, and establishing a nationwide distribution network. AP's strategies required extensive investments in distribution but enabled it to access more customers and customize products to local needs, driving its continued growth.

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206 views

Asian Paints: A Story of Distribution Excellence

Asian Paints (AP) is the market leader in the Indian paint industry, with a 38% market share in decorative paints and 33% in the organized sector. AP has significantly higher market share than its next largest competitor, Nerolac, which holds only 14% market share. AP has been able to maintain its leading position through superior marketing and distribution strategies, including expanding into rural areas earlier than competitors, implementing an open dealer policy, and establishing a nationwide distribution network. AP's strategies required extensive investments in distribution but enabled it to access more customers and customize products to local needs, driving its continued growth.

Uploaded by

basil paul
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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ASIAN PAINTS

A Story of Distribution
Excellence
The AP Story
AP is the market leader in Indian paint industry with 38% on decorative paints and
33% in the organised sector. Annual sales rounds upto 1500 crores with a profit in
books of ~250 crores.

AP is much varied ahead as the very next competitor Nerolac occupies only at 14%
market shares. And it has exports to 15 other countries as well.

The only way AP survives on top is accounted tom its marketing and distribution
strategies. AP literally leapfrogged all competitors introducing a wide range of
products. The facility and technology for customer wish and mass customization
paved the way for the growth of the AP in the Indain market.

Also the crucial methods adopted in the distribution segment helped them out og
the pit to climb out without turning back.
The AP path
AP faced many consequences to build up the distribution and supply chain for the
company. As the dominated foreign players had their wholesale distributers and a
large territory in their hand it was quite impossible to topple them. Also the
companies were promoting free trade by giving credit to the distributors.

As the distributors were not motivated enough about moving to semi urban
areas. And the companies had them controlled as the distributors controlled the
business to develop their business only and to block new entries.

AP entered such a market which was inpenetrable and they seeked the new path
to go for the big ball than just getting satisfied with low risk strategy and small
share of existing business.
AP Strategies
i. Byepasses bulk byer segment and goes individual cutomers.
ii. Goes to semi urban and rural areas.
When big players concentrated on urban business AP took initiative to go beyond
and deliver to other sectors.
i. Goes retail.
They broke the traditional distributoe depended distribution practice.
i. An open door dealer policy.
ii. Nationwide marketing/distribution.
Defeating all big players and small odd companies AP went on nationwide to
achieve what others dared to practice.
Implications Of AP’s
i. Wide product range and complex distribution.
ii. By going individual it improved the compoany to have customizations and wide
differenciations in products.
iii. Small packs made the product line depth further.
iv. Wide product range implied expensive distribution.
v. Distribution enlarged as AP expanded to rural areas.
vi. Going retail implied deep involvement in chennel management.
vii. National marketing necessitated nationwide organization.
AP’s Distriburion Showcase
The steps involving the implementation of distribution strategy for the AP
comprises of,
a. AP created large network of dealers.
b. Established a network of company devots to service the dealers.
c. Created a marketing organization that matched its distribution.
d. Resolved cost service conflict in distribution.
~ Building a strong commitment.
~ Effective inventory management.
~ Effective credit control.
~ IT initaitives in distribution cost control.
Other tactics
i. Large network of dealers.
ii. Establishes a network of company depots.
iii. Creates a marketing organization that matche dits disribution identity.
iv. Resolves cost service conflict in distribution.
v. Leadership through distribution excellence.
THANK YOU

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