decorative paints. Market share of 33% in organised sector. Annual sales turnover exceeds Rs.1300crs Asian paints sound marketing has earned it a strong brand equity.
Hence, Technology played a huge role in helping Asian paints in building its brand .
A STEP AHEAD
Color differentiation feature which none of
38% 14% 9% 9% 6%
entered paint industry. Physical distribution and channel management was a challenge. It was the foreign companies who dominated the distribution system through wholesale distributors.
APs DISTRIBUTION STRATEGY WERE AS FOLLOWS: AP bypassed bulk buyer segment and went to individual consumers of paints.
AP focused less on urban areas and concentrated more on semi-urban and rural areas.
distribution.
An extensive network of dealers and a matching physical distribution infrastructure plays crucial role in the decorative paints segment. This is essential for ensuring easy accessibility of the product to customers.
Depots
AP established a large chain of company operated depots/stock points throughout its vast marketing territory, from where the retail dealers could conveniently pick up their requirements.
It established a network of 30 company run depots throughout the country and serviced its retailers from them.
control.
Co-ordination & communication between
CO-ORDINATION & COMMUNICATION BETWEEN PLANTS,OFFICES & VENDORS Eight of the company's paints plants in India, 2 chemical plants, 18 processing centres, 350 raw material and intermediate goods suppliers, 140 packing material vendors, 6 regional distribution centres, 74 depots are integrated.
SUPPLY CHAIN
300 SKU 800 Raw materials Suppliers
8 Plants
6 Regional Offices
15000 Dealers
Integrated SCM Solution from i2 Technologies, and Enterprise Resource Planning (ERP) solution from SAP. An employee portal has also been set up. Customer Relations Management (CRM) tools are being
Reduced Finished Inventory cycle from 56 days to 30 days. Business is currently 4 times of that before BPR. Increase in the number of shades from 50 to 1300. Built a competitive advantage in terms of inventory management.
THANK YOU !!