ASIAN PAINTS

SUPPLY CHAIN MANAGEMENT

STORY OF DISTRIBUTION EXCELLANCE
Fact Files
Annual sales turnover greater than 10000 crores
Market share 38 percent and its nearest rival has
14 percent
Wholly Indian in capital management and
technology.
Marketing strategy is to reach consumers in the
outmost corners of the country with small packs.




Innovative Approach
Range in colour and packing sizes
Present in every nook and corner of the country.
Automated machine kept at the retail outlet, to
give desired colour.
Company has to maintain only the basic colour
with retailers.


History & Main Segments
In 1942 Champaklal H. Choksi started and name the
company 'The Asian Oil & Paint Company.
In 1957 with help of then R.K.Laxman paints mascot,
Gattu, the mischievous kid, was born.
Decorative paints, industrial coatings , ancillaries like
primer
Paint brands owned by the company are: Ace &
Apex, Apcolite, Apex, Apex Ultima, Asian Paints,
Colour Next, Premium Gloss Enamel, Royale, Royale
Play, Touchwood, Tractor Emulsion, Utsav.
Elements of Strategy

Four manufacturing plants are present viz.
bhandup tolaja ankleshwar and patancheru.
Bypass the bulk buyer and went to individual
customers.
Concentrated on semi urban and rural areas
Went directly to the retailers.
Broke traditional method of minimum dealers.


Implications of Strategy
Wide product range and complex distribution.
Smaller packs led to increase in product depth.
Wide range led to expensive distribution.
Semi urban and rural markets enlarged its
distribution.
Entering the retail supplychain led to channel
management
Implementation
Large network of dealers.
Establishes network of company depots
controlled by company.
Created marketing organization that matched
its network.


Cost-Service Conflict

Effective inventory management.(28 days)
Effective control of credit outstanding's.(15 days)
IT initiatives in distribution cost control.
Special discounts for perfection in payments
Cash discount over 5 percent for payments
made in 24 hours.
Numbers Game
2800 items of paint (stock keeping unit).
9.88 billion profit
127.15 billion turnover.
300 new dealers added every year.
Largest distribution network among all.
6 regional distribution centres.
50 plus company run depot of which each
handles 200-300 dealers.
Apcolite is available in 151 shades and 8 sizes


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