SALES AND DISTRIBUTION PROJECT

Sales (Pre & Post) & Distribution’ effectiveness: A comparative study of Asian Paints Ltd. & Nerolac Paints Ltd.

Under the guidance of: Prof. Maninder Singh Group no. B2138

Submitted by: Ram Kamboj Reeva Sharma Neha Satija Tinku Shokeen Gaurav Chawla Saurav Gulati

EXECUTIVE SUMMARY

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This project aims to study the distribution channels, sales network and service patterns of the paint sector through an analytical and comparative study of two leading companies- Nerolac Paints India Ltd. (NPIL) and Asian Paints Ltd. (APIL). The project also tries to bring out the shortcomings, if any, in the present system and thus recommends suggestions to improve the same. The project also gives insights into the various financial terms, norms of the sales and service departments as per the guidelines of the paint industry. The project was designed after detailed discussion with the company officials on three parameters i.e. distribution network, service network and sales functioning. The project also includes the insights given by the dealers and officials of the company. “The sample size of 6 for channel members and that for the sales people was 2, for each company”. Firstly, the project discusses the distribution network of the two companies and the functions carried out by the channel members. Asian Paints being the largest paint manufacturer in India definitely has a wider reach and more number of dealers than Nerolac. The project also covers the financial terms of the company with the dealers and that of the dealers with the customers. Secondly, the project discusses the sales functioning of the two companies, which includes aspects such as the hierarchy of the sales department prevalent in the company; the responsibilities and functions of the sales force, their performance appraisal structure etc. Finally the project covers the service network of the two companies which deals with the after sale services and their effectiveness provided by both the companies and various complaints and queries are handled by them
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ACKNOWLEDGEMENTS

We are very thankful to the entire dealer, service, and sales network of Nerolac India Limited and Asian Paints Limited for their cooperation, without which completion of this project would not have been possible. We are extremely grateful to Mr. NAGENDRA K. SHARMA ( Project Sales Manager, Nerolac India Ltd, New Delhi), . Mr, ASHISH VERMA decorative sales,Nerolac Paints India Ltd., New Delhi) Mr. MOHIT AGGARWAL (Project sales Manager, Asian paints India, New Delhi) and Mr, Mr. ANURAG PANDEY (Decorative Sales Officer, Asian Paints India Ltd., New Delhi) for sharing with us all the details of the project and providing us with valuable insights about sales, distribution & servicing function. We would like to thank them for the patience shown by them and being of such a great help to all our queries.
We would also like to express our gratitude towards our professors, for giving us an opportunity to do this project on sales and distribution and for being the guiding light through the completion of this project.

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CONTENTS

1. Executive Summary 2. Acknowledgement

`

3. Methodology
4. Indian Paint Market

5. Company Background(ASIAN PAINTS)
6. Distribution Network

7. Selection of Dealers
8. Service Network 9. Company Background(NEROLAC PAINTS) 10. Distribution Network 11. Selection Of Dealers 12. Service Network 13. AnalysiS 14. Annexure

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METHODOLOGY
The objective of this project on sales and distribution is to do an analytical and comparative study of the sales, service and distribution function of two players from the chosen business sector. The business sector chosen for this purpose is the fast growing paint sector, and the players chosen for study from this sector are: NEROLAC INDIA LIMITED ASIAN PAINTS LIMITED INFORMATION SOURCES PRIMARY DATA SOURCES NEROLAC INDIA LIMITED- Head, Corporate Sales  NEROLAC AUTHORISED DEALERS

 ASIAN PAINTS LIMITED – Area Sales Manager  ASIAN PAINTS AUTHORISED DEALERS

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SECONDARY DATA SOURCESTHE INTERNET www.nerolac.com www.asianpaints.com www.google.com http://www.indiacom.com/yellowpage/categorygyan/articles/paints/Paints-Introduction.asp?category=paints

DATA COLLECTION TOOLS Interviews & Discussions with the company officials, dealers and Sales people. Questionnaires were used to record data. SAMPLE SIZE USED The sample size for the dealers was 12 in number while the sample size for sales people was 4. Asian paints (dealers) - 6 Asian paints (sales people) – 2 Nerolac India (dealers) – 6 Nerolac India (sales people) – 2

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LIMITATIONS: It was difficult to ask for time required for a detailed discussion on the questionnaire & therefore several aspects of the questionnaire were answered briefly. The company officials did not divulge details about competitive sales policies, strategies & certain financial terms with dealers as they find it to be a confidential piece of information of the company.

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Indian Paint Market
In India, Indian Paint industry’s total market size is US$1400 million. The organized sector of the industry is 55%. The 45% unorganized sector has about 2500 units. The big players and their market share-value of the organized sector are Asian Paints 37% Goodlass Nerolac 15.9% Berger Paints 13.8% ICI 11% Jenson & Nicholson 5.7% Shalimar 4% Others 12% The market segment is divided into two sectors. Architectural 70% Industrial 30% The total volume of the market is 600,000 MT

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ASIAN PAINTS

Nath Balakrishnan `The paint industry in India still has a lot to do to promote usage, which by itself is a huge opportunity.'

Asian Paints is a household name in the domestic paints industry. Now, with operations in 23 countries across the world, its business is acquiring a global dimension. In a freewheeling interview with Business Line, Mr Ashwin Dani, Vice-Chairman and Managing Director of Asian Paints (AP) shares his outlook on the company's prospects, how various categories within the paints segment fared, the role of marketing initiatives, such as the installation of tinting machines, and, finally, about AP's acquisition-led expansion strategy. Mr Dani's views on developments on the acquisition front will be published next week.

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Demand for paints comes from two broad categories:

Decoratives:

• . Decorative paint's market size stands at around Rs 32.5 Bn. Asian paints is this market leader in this segment

Under this segment it offers Painting Guide, Painting Solution, Paint Calculator and Paint Selector as value added decorative service.

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 

Industrial:

Asian Paints offers 4 types of industrial coatings such as :

Protective Coatings - protects steel and concrete structures from the corrosive action
of harsh climates, pollution, sea spray, acids, oils and solvents.

Road Markings – are used as road markers for lane as indicator of lane separation and
also as safety markers. They include ordinary road marking paint, hot applied retroreflective thermoplastic material and retro-reflective water borne paints. Powder Coatings – is used to enhance the performance of Industrial paints. Floor Coatings – such paints protects the floor surface and prevents crack formation, insect nest formation, water seepage etc

• •

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The paints sector is raw material intensive, with over 300 raw materials (30% petrol-based derivatives) involved in the manufacturing process. Since most of the raw materials are petroleum based (ex: Titanium Dioxide), the industry benefits from softening crude prices.

COMPANY Asian Paints Goodlass Nerolac Berger Paints ICI India Ltd. Jenson and Nicholson Growth Rate Total (Rs.)

DECORATI INDUSTRI VE AL 38% 7.8% *14% 8%-9% *6.9% 8-9% 15,033 MM 14%-16% 40% *14% 12% *6.9% 18% 6,442 MM

OVERAL L 32.5% 17.5% 14.0% 10.5% 6.9% 11% 21,476 MM

ESTIMATED PAINT REVENUES Rs. 6,980 MM Rs. 3,750 MM Rs. 3,007 MM Rs. 2,254 MM Rs 1,482 MM

Since these companies strive to match their product sales to the market (i.e. 70% : 30%) they maintain similar market share in each segment

PRODUCT RANGE
• Asian Paints Premium Emulsion • Asian Paints Interior Wall Finish Lustre • Asian Paints Ace Exterior Emulsion • Asian Paints Apcolite Clear Synthetic Varnish • Asian Paints Touchwood • Asian Paints Utsav Enamel • APEX ULTIMA • With 7 year warranty
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COMPANY BACKGROUND

Asian Paints
Asian Paints, established in 1942, is India's largest paint company and the third largest paint company in Asia. It has a turnover of Rs 30.2 billion (around USD 680 million). The company operates in 21 countries and has 29 paint manufacturing factories servicing 65 countries. The company operates several subsidaries such as Berger International Limited, Apco Coatings, SCIB Paints and Taubmans. The company manufactures paints for decorative, industrial, and motor applications The history of AP dates back to 1942. It was started by four entrepreneurs, Champaklal Choksey, Chimanlal Choksi, Suryakant Dani and Arvind Vakil, as a partnership firm for manufacturing paints, in a garage rented for Rs 75 a month. In 1945, the partnership firm was turned into a private limited company named Asian Oil & Paint Co. Pvt. Ltd. And in the same year, its turnover touched Rs0.35million. In the 1940s, it was largely multinational companies such as British Paints and Jenson & Nicholson that dominated the Indian paints market. In order to increase revenue, AP concentrated on the smaller towns ignored by multinationals. In 1954, Asian Paints asked the famous cartoonist R.K. Laxman to create a mascot for the company, and from his pen was born – Gattu – which emerged as one of India’s most memorable mascots (Refer Figure I). However, AP’s market research found out that in rural India, farmers who wished to paint
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the horns of their bullocks preferred to buy paint in small packs. Soon AP came out with 50ml packs, which became very popular Asian Paints Limited ("Asian Paints") is transforming itself to become a major world player in the decorative paints business with particular focus on emerging markets following its acquisitions of controlling stakes in Berger International Limited ("Berger International") of Singapore and SCIB Chemical S.A.E. ("SCIB") of Egypt. The total investment made by the company in both these acquisitions amount to around US$ 16.8 million (S$29.6 million). Asian Paints announced that it would focus on emerging markets of the world for growth and also that Berger International will be the main growth driver for Asian Paints international operations Focusing on the aspect of increasing shareholder value in Berger International, Mr. Dani said: "In Berger International, Asian Paints will focus to increase shareholder value by further improving the supply chain management in the subsidiaries (Asian Paints supply chain management is considered the best in India servicing around 14,500 dealers directly from 70 sales locations and manufacturing over 2,500 stock-keeping units (SKUs). The success of AP has been attributed to its customer-centric approach and aggressive marketing initiatives, which had changed the way industry, functioned. AP wanted to be one of the top five companies in the global paints industry by 2007. In order to achieve this goal, it focused on three main areas - building the AP brand in terms of a new product portfolio, changing its logo and packaging. The new AP was expected to be even more customer-friendly and service-oriented. In order to keep its prices low, AP had to keep its production costs low. So it undertook backward integration to reduce production costs. In 1987, it entered into joint venture with Tamil Nadu Industrial Development Corporation (TIDCO) - Pentasia Chemicals Ltd, for the manufacture of pentaerythritol and sodium formate - two important intermediates for manufacturing paints.

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• South Asia: • South East Asia: • South Pacific : • Middle East : • Caribbean region :

ASIAN PAINTS BERGER INTERNATIONAL SCIB PAINTS APCO COATINGS TAUBMANS

Distribution network

Channel structure, members and their selection
Channel structure ASIAN PAINTS is all over India. The channel structure is very simple and effective. Complications are kept out in order to make the overall process very effective and efficient.

20,000 Dealers all over India 1,000 Dealers in New Delhi alone 14 products, 1200 shades Depots in Delhi : Badarpur, Mayapuri, Wazirgunj, Mandori

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Asian Paints, the market leader in the architectural segment, has over 14 product offering over 1,200 shades in package sizes ranging between 1 liter to 20 liters.

Logistics required to ensure that each of the company’s dealers has just adequate stock of each shade of each product range, in each size. This calls for immense accuracy in demand forecasting and an excellent network. However, the advent of tinting machines has considerably eased the distribution blues. With this technology, a paint company only needs to provide the dealer with certain base colors, tinting machines (which include a dispenser, shaker and a computer), colorants or strainers, and a color card. The consumer chooses a particular shade from the card. The dealer puts the code of the shade in the computer and the computer programme finds the exact formula for the corresponding color.

TINTING MACHINE Dealers’ Tinting Machines (DTS)
1. Powerful marketing tool 2. Making major investment. Already invested Rs. 92-100 crore Trying that these machines are directly purchased by dealers .The programme ensures that the required stainer gets added to the base paint in the required quantity and the new paint comes pouring out of the tinting machine in the shade chosen by the customer

CHANNEL STRUCTURE PLANT

DEPOT

R E G IO N A L D IS T R IB U T IO N C H A N N E L T y p e t it le h e r e

S U B -D E P O T
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PLANT STO CK

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SELECTION OF DEALER
Asian Paints follows a strict policy in selection of the dealers:
1) The dealer should have a sound financial background. 2) The dealers’ current business goodwill, measured in terms of dealer goodwill which covers areas such as infrastructure, manpower etc. and individual goodwill 3) The dealer should have his own infrastructure and logistics, since he is completely responsible for the inventory and transportation of the goods to the shop from his warehouse

Responsibilities and Functions of the dealers
ASIAN PAINTS believes in “Customer Loyalty” and thus asian paints expects that their dealers apart from selling paint products should perform the following functions for better customer relations’ management:

Sales promotion through regular promotional schemes, road shows, campaigns etc. Recruitment- done under the guidance of certain asian paint officers.

• Customer relation management
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• ervicing according to the size of orders • Training and development of manpower with company assistance The dealer should be in regular touch with the customer, keep taking his feedback and ensure maximum customer satisfaction. The dealer should also try and convince the customer to try newer products of the company.

PAYMENT MODES

Cheque is the only acceptable way of payment

HOME SOLUTIONS

Margins/Discounts
The dealers collect their margins at the time of sale of the product. Margin/discounts is provided by the company between 3.5% to 5%

FEEDBACK FROM CUSTOMERS
Customer feedback is obtained not only after servicing as mentioned earlier, but post sales too. There are 2 types of feedback forms customers can fill: • A feedback to company through questionnaires and cards • Direct feedback to the sales people. All these feedback cards are sent to the corporate office of the company where the required action is taken.

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NEROLAC PAINTS LIMITED
They embarked their journey in 1920 as Gahagan Paints and Varnish Co. Ltd. at Lower Parel in Bombay. In 1930, three British companies merged to formulate Lead Industries Group Ltd. In 1933, Lead Industries Group Ltd. acquired entire share capital of Gahagan Paints in 1933 and thus, Goodlass Wall (India) Ltd. was born. Subsequently, by 1946, Goodlass Wall (India) Ltd. was known as Goodlass Wall Pvt. Ltd. In 1957, Goodlass Wall Pvt. Ltd. grew popular as Goodlass Nerolac Paints (Pvt.) Ltd. Also, it went public in the same year and established itself as Goodlass Nerolac Paints Ltd.

In 1976, Goodlass Nerolac Paints Ltd. became a part of the Tata Forbes Group on acquisition of a part of the foreign shareholdings by Forbes Gokak. In 1983, Goodlass Nerolac Paints Ltd. strengthened itself by entering in technical collaboration agreements with Kansai Paint Co. Ltd., Japan and Nihon Tokushu Toryo Co. Ltd., Japan. In 1986, Goodlass Nerolac Paints Ltd. turned into a joint venture of the Tata Forbes and the Kansai Paint Co. Ltd., with the latter acquiring 36% of its share capital. In 1999, Kansai Paint Company Ltd., Japan took over the entire stake of Tata Forbes group and thus GNP became a wholly owned subsidiary of Kansai Paint Company Ltd. In 2006, on the 11th of July, Goodlass Nerolac Paints Ltd. name has been changed to Kansai Nerolac Paints Ltd. During the journey of continuous performance excellence, they have entered in to much technical collaboration with other industry leaders such as E.I. Du-Pont de Nemours & Company Inc., USA and Oshima Kogya Company Ltd., Japan for our different products.

Our incessant journey of successes will go on backed by our present human asset of over 2000

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Nerolac is carrying on strong since 1920. Following are its strengths that have kept this company in good faith. Nerolac is a company with very clear and well-defined vision and very strong values. Clarity of vision and strong foundation of cultural values have always kept this company in good stead. Its ethical conduct has always guarded it against any possible traps and pit falls.

We have made sure that the distribution hurdles and the climatic vagrancies do not affect the quality of our services. This same commitment will ensure that Kansai Nerolac will march towards its centennial year, fully dedicated and invigorated, in step with the exciting wave of industrialization and modernization pervading through the new India.

COMPETE THROUGH INNOVATION
The keystone of Kansai Nerolac's success has been its investment in technology and the importance given to Research and Development. The company has, over the years, set up excellent facilities for developmental research, improving its manufacturing processes and continuously innovating on its products. The rich cumulative experience of the organization gathered over 80 years of experience provides a strong backbone to all kinds of decisions taken in this company. 80 years of learning in trade and market has given enough expertise to innovate and develop products and services according to the changing needs and desires of customers. Nerolac paint technology cuts across all barriers; without discriminating between uses or users. The past decades have seen a meteoric rise in the fortunes of Kansai Nerolac. Today, they are the second largest paint company and a recognized leader in their chosen fields. The company was adjudged the fastest growing paint company in the organized sector, not once but thrice-in consecutive years.
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MANUFACTURING FACILITIES
Manufacturing is a very important function for the paint industry. Nerolac has made sure that its manufacturing facilities are world class. Nerolac has five manufacturing units located at: • • • • • Perungudi (T.N.), Vatva (Gujarat), Jainpur (U.P.), Lote Parshuram (Maha.) & Bawal (Haryana).

The total installed capacity of all the units put together is158300 TPA. Its latest unit is at Bawal, which was commissioned in March 2005, with a capacity of 20400 TPA with an investment of around Rs.100 crore- all through internal accruals.

DISTRIBUTION NETWORK
Channel structure, members and their selection
Nerolac’s strength of wide spread distribution network is its right arm in generating sales revenue from all parts of India. Nerolac has a wide distribution network of over 11,000 dealers They have eight Sales Divisions and each division has depots to take care of local needs. In all they have 66 depots All this ensures complete reach in India including rural and up country markets

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Channel structure

Nerolac Paints Ltd. Dealer/ distributor Warehouse Dealer shops End customer

There exist a total of 4000+ dealers with multiple outlets, i.e. a total of dealers covering cities. The percentage of dealers in each of the zones is as follows.

NorthSouthEastWest-

35% 26% 10% 29%

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Market Research:
The company undertakes Market Research activity to measure its performance in different fields, like after sales service, customer satisfaction etc. The company employs third party agencies to measure its performance.

SSI (Sales Satisfaction Index)
The sales satisfaction study is a consumer-driven measure of customer satisfaction with the product sales and delivery process. According to the study, there are six major factors impacting satisfaction with the dealership at the time of purchase. They are Sales Experience, Explanation at Delivery, Price Evaluation, Delivery Timing, Salesperson Knowledge and Post-Delivery Contact.

CSI (Customer Satisfaction Index)
The customer satisfaction index with quality delivery performance is used to track the problems experienced in the customer satisfaction process. This data helps in building future policies and also helps in training the employees to perform better in future.

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Service Network Structure: Group head

Service Support

Field Support On the job Training

Backend

T&D

Dealer Development

CRM

Day to day activities Warranty

Nerolac India closely monitors each and every aspect of the entire process in the business organization. The service network is similar to that of Asian paints but the CRN and training and development is not that developed. The technical support in the business units is different as we have already discussed earlier that Asian paints uses SAP and i2 technologies while Nerolac uses push and pull protocol.
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ANALYSIS COMPANY EXEUTIVE
As a part of our report, we used questionnaires for primary research. Our target group was: the dealers, company executives and customers of Asian and Nerolac paints
CHANNEL STRUCTURE
COMPANY DIRECT PROJECT [INSTITUTIONAL / CORPORATE BUSINESS / B2B] DIRECT CUSTOMER HOME SOLUTION [ASIAN PAINTS] NAPS [NEROLAC PAINTS]

BULK BUYER [Like BUILDERS, CONTRACTORS ETC.] GODOWN

RETAILERS

WHOLESELLER RETAILER

ORGANISATION STRUCTURE
SALES EXECUTIVE SALES OFFICER TERRITORY SALES EXECUTIVE AREA SALES MANAGER REGIONAL MANGER VP [MARKETING] MARKETING HEAD MARKETING HEAD [NORTH INDIA] ………… …………

CRITERIA FOR APPOINTING A DEALER
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Credibility in the market Foot Fall Financial position Competitors

CREDIT, PAYMENT & WARRANTY Credit depends on credibility of the dealer/shopkeeper. It ranges from 0 – 30 days. But CD will be 3.5% instead of 5%.

For NEROLAC:
Payment is done on the basis on CHEQUE ON DELIVERY & ADVANCE

CHEQUE [PAYMENT] For ASIAN PAINTS:
Payment is done on the basis on CHECK ON DELIVERY Warranty of Asian Paints for APEX ULTIMA is 7 years. Warranty of Nerolac Paints for SURANKSHA ADVANCE is 4 years. ORDER CYCLE, INVENTORY, TRANSPORT Total company’s owned godowns through out the city: 4 Whole country is connected through SAP and are daily updated. Therefore, order can be placed regularly & has withing a day service of delivery. Inventory depends on financial capacity, schemes/discounts offered by the organisation. Transport is outsourced by the company through C&F agents to the contractors on certain terms & conditions set by the company. Transport vehicles generally used are Tampo, Champions, TATA 407 etc.

DEALER’S ANALYSIS:
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On the basis of our questionnaire, we analyzed the following:

The dealer deals with different brand of paints. The ones which they generally keep in stock are Nerolac, Asian, Berger, Shalimar and ICI Dulux paints.

• The demand for each paint varies in accordance to the area specified. The brand which is generally demanded by customers are:Asian paints (West Delhi) Nerolac paints (Central Delhi) ICI paints (South Delhi) Berger & Asian paints (North Delhi) • The dealers generally don’t recommend anything to the customer; they give what the customer demands. In case, the customer is a bit confused about the quality of the product, then the dealers generally recommend ICI Dulux paint.

Dealers are free to place any order. There is no minimum order as such.

• Average order cycle time is 1-2 days in case of Asian paints, while 5 days in case of Nerolac paints.

Transporter’s behavior, ease and flexibility of placing an order is very good for Asian paints where as its good for Nerolac paints. Quality maintenance, condition of product is good for Asian paints while it’s very good for Nerolac paints. Asian paints provide cash incentives at 1% while Nerolac doesn’t give any cash incentive. Also, Asian paints gives commission (if June 2007’s sale is greater than June 2006’s sale.) Other incentives being given are movie tickets, foreign trips, and big bazaar discount coupons. Asian paint’s performance is satisfactory while Nerolac paint’s performance is good in case of promotional activities, commercial terms, and service of sales persons. However delivery time, customers’ orientation is good for both Asian paints and Nerolac paints.

• The efficiency of sales persons is good for Nerolac paints and satisfactory for Asian paints.
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Both Nerolac paints and Asian paints provide assistance to dealers in promotional activities.

• Dealers of both Asian paints and Nerolac paints don’t provide appraisals to their respective sales persons. • None of the Dealers are facing any problem due to company’s distribution channel. • If dealers face any kind of problem from customer’s side, the sales executive takes care of it. • Both the companies provide training to painters whenever new product, new finish is introduced and skillful work is required.

If the product is defective, both the companies take back the goods. In this case a return goods voucher (RGV) is issued which contains the DOP and the batch number. If the goods are returned within 3 months, dealer gets sales tax refund.

CUSTOMERS ANALYSIS:
The customers were questioned on: What they do if they don’t get the desired paint? Who influences them to buy that particular brand? How frequently do they get their house white washed/touch ups? Ranking certain parameters for their choice of paint. What they do if they don’t get the desired paint? For the Asian paints market, 76% of the respondents move to the next shop, 16% take any other paint and the rest 8% take any other color of the desired paint. WHILE; For the Nerolac paint market, while 64% of the respondents move to the next shop, 24% take any other paint and the rest 12% take any other color of the desired paint. The above data shows that the respondents of Asian paints market are more brand loyal as compared to Nerolac paint market.
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DON'T GET THE DESIRED PAINT - ASIAN PAINTS MOVE TO NEXT SHOP 13, 8% 25, 16% TAKE ANY OTHER PAINT

DON'T GET THE DESIRED PAINT - NEROLAC PAINT MOVE TO NEXT SHOP 10, 12% TAKE ANY OTHER PAINT 55, 64%

21, 24%

116, 76%

TAKE ANY OTHER COLOUR OF THE DESIRED PAINT

TAKE ANY OTHER COLOUR OF THE DESIRED PAINT

Who influences them to buy that particular brand? On the whole, it was noticed that in 23% of the cases, shopkeeper influenced people to buy a particular brand of paint, be it Asian Paints or Nerolac Paints. In about 18% of the cases, people were influenced by relatives and friends. Endorser and painter influenced people to about a 16%. People were influenced by kids only in 9% of the cases.

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PEOPLE WERE INFLUENCED BY...

9% 23% 16% SHOPKEEPER RELATIVES FRIENDS ENDORSER 16% 18% 18% PAINTER KIDS

How frequently do they get their house white washed/touch ups? From the various options given, i.e., half yearly, yearly, once in two years, once in three years and occasionally for both Asian Paints and Nerolac Paints.

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40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00%
5.19% 8.14%

35.71%

27.91% 26.62% 22.09%

26.74% 20.78% 15.12%

`

11.69%

5.00% 0.00%
HALF YEARLY YEARLY ONCE IN TWO YEARS ONCE IN THREE YEARS OCCASSIONALLY

Asian

Nerolac

Details: Half yearly: Asian paint 5.19% Nerolac paints 8.13%

which automatically shows 6.25% people get their places painted half yearly in our chosen market. This is not very potential segment, which requires the focus of the industry in the chosen market.
Yearly: Asian paint 35.7% Nerolac paints 22.09%

which surely means that 30.84% of the market get their places painted yearly. Two years Asian paint 26.62% Nerolac paints 27.90%

This shows, 27.09% of the market get their house painted once in two years.
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Three years:. Asian paint 20.77% Nerolac paints 26.74%

which shows that 22.91% market get their house painted once in three years. Occasionally: Asian paint 15.12% Nerolac paints 11.68%

This implies,12.91% of market get their house painted occasionally. The next aspect of the questionnaire involved the respondent to rank the performance of his choice of brand on various parameters. Now, we would discuss each parameter in detail.

AVAILABILITY OF THE PRODUCT: The first parameter, asked the respondent to judge the availability of both the categories of paints. In the Asian paint segment, 48.5% and in the Nerolac paint segment 24.5% said that the availability was excellent. 30.7% and 42.3% respondents said that the availability was very good for Asian paints and Nerolac paints respectively. 18.75% and 28.8 % respondents said that the availability was good for Asain paints and nerolac paints respectively. 1.9% and 4.2% respondents were not satisfied with the availability of the paint, thus rated the availability as fair.

PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

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SALES & DISTRIBUTION MANAGEMENT PROJECT

Availability of the product 60.00 50.00 40.00 30.77 30.00 20.00 10.00 0.00 EXCELLENT VERY GOOD GOOD Parameters FAIR POOR 24.58 18.75 28.81 ASIAN PAINTS NEROLAC PAINTS 48.56 42.37

Percentage

4.24 1.92

0.00 0.00

NEW /

INNOVATIVE PACKAGING The second parameter, asked the respondent to judge the rate the innovative packaging of both the categories of paints. In the Asian paint segment 36.5% and in the Nerolac paint segment 26.3% said that the company’s packaging was excellent. 30.8% and 39.8.3% respondents said that the company’s packaging was very good for Asian paints and Nerolac paints respectively. 26.4% and 26.3 % respondents said that the company’s packaging was good for Asian paints and nerolac paints respectively. 6.3% and 7.6% respondents were not satisfied with the availability of the paint, thus rated the company’s packaging as fair.

PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

IIPM

SALES & DISTRIBUTION MANAGEMENT PROJECT

NEW / INNOVATIVE PACKAGING 45.0% 40.0% 35.0% NO. OF RESPONDENTS 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 0.0% 0.0% EXCELLENT VERY GOOD GOOD PERFORMANCE FAIR POOR 6.3% 7.6% 26.3% 39.8% 36.5% 30.8% 26.4% 26.3% ASIAN PAINTS NEROLAC PAINTS

INTRODUCTION OF NEW PRODUCTS The third parameter, asked the respondent to rate the frequency of introduction of new products for both the categories of paints. In the Asian paint segment 25% and in the Nerolac paint segment 23.7% said that the frequency of introduction of new products was excellent. 37.5.% and 34.7% respondents said that the frequency of introduction of new products was very good for Asian paints and Nerolac paints respectively. 32.2% and 31.4% respondents said that the frequency of introduction of new products was good for Asian paints and nerolac paints respectively. 5.3% and 10.2% respondents were not satisfied with the frequency of introduction of new products, thus rated the company’s packaging as fair.

PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

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SALES & DISTRIBUTION MANAGEMENT PROJECT

INTRODUCTION OF NEW PRODUCTS
NO. OF RESPONDENTS 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
37.5% 34.7% 25.0% 23.7% 32.2% 31.4%

ASIAN PAINTS
10.2% 5.3% 0.0%0.0%

NEROLAC PAINTS

FA IR

O OD

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PERFORMANCE

CONTAINER SIZE The fourth parameter, asked the respondent to rate the availability of paint in different container sizes as per their requirements for both the categories of paints. In the Asian paint segment 20.2% and in the Nerolac paint segment 16.1% said that availability of paint in different container sizes was excellent. 39.4.% and 36.4.% respondents said that the availability of paint in different container sizes was very good for Asian paints and Nerolac paints respectively. 33.2% and 35.6% respondents said that the availability of paint in different container sizes was good for Asian paints and nerolac paints respectively. 7.2% and 11% respondents were not satisfied with the availability of paint in different container sizes, thus rated the company’s packaging as fair. 0.8% respondents of Nerolac Paints, were not at all satisfied with the availability of paint in different container sizes and thus rated this parameter as poor.

G O

PO O

R

PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

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SALES & DISTRIBUTION MANAGEMENT PROJECT

CONTAINER SIZE 45.0% 40.0% NO. OF RESPONDENTS 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
O D R O D N T FA I EL LE G O G O

39.4% 36.4%

35.6% 33.2%

20.2% 16.1% 11.0% 7.2% 0.8% 0.0%
R

ASIAN PAINTS NEROLAC PAINTS

EX C

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Y

PERFORMANCE

AVAILABILITY OF COLOR The fifth parameter, asked the respondent to rate the availability of color of their choice for both the categories of paints. In the Asian paint segment 39.4% and in the Nerolac paint segment 32.2% said that availability of color of their choice was excellent. 32.2.% and 40.7.% respondents said that the availability of color of their choice was very good for Asian paints and Nerolac paints respectively. 23.1% and 22% respondents said that the availability of color of their choice was good for Asian paints and nerolac paints respectively. 3.8% and 5.1% respondents were not satisfied with the availability of color of their choice, thus rated the company’s packaging as fair. 1.4% respondents of Asian Paints were not at all satisfied with the availability of color of their choice and thus rated this parameter as poor.

PO O

PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

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SALES & DISTRIBUTION MANAGEMENT PROJECT

AVAILABILITY OF COLOR 45.0% 40.0% NO. OF RESPONDENTS 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% EXCELLENT VERY GOOD GOOD PERFORMANCE FAIR 5.1% 3.8% 1.4% 0.0% POOR 23.1% 22.0% ASIAN PAINTS NEROLAC PAINTS 39.4% 32.2%

40.7%

32.2%

STAR ENDORSEMENT The sixth parameter, asked the respondent whether star endorsement for both the categories of paints affected their purchase. In the Asian paint segment 36.5% and in the Nerolac paint segment 24.6% said that star endorsement was excellent and did affect their purchase. On the other hand, 1.4% and 7.6% respondents were not at all satisfied with star endorsement and it did not even affect their purchase, thus rated it as poor.

PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

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SALES & DISTRIBUTION MANAGEMENT PROJECT

STAR ENDORSEMENT 40.0% 35.0% NO. OF RESPONDENTS 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% EXCELLENT VERY GOOD GOOD PERFORMANCE FAIR POOR 9.3% 7.7% 7.6% 1.4% 24.6% 25.4% 22.1% ASIAN PAINTS NEROLAC PAINTS

36.5% 33.1% 32.2%

VARIETY The next parameter, asked the respondent to rate the variety for both the categories of paints. In the Asian paint segment 34.6% and in the Nerolac paint segment 22.9% said that variety of color excellent. 40.4% and 39.8.% respondents said that the variety of color of their choice was very good for Asian paints and Nerolac paints respectively. 18.8% and 25.4% respondents said that the variety of color was good for Asian paints and nerolac paints respectively. 5.8% and 9.3% respondents were not satisfied with the variety of color ,thus rated the company’s packaging as fair. 0.5% and 2.5% of respondents of Asian Paints and nerolac paints were not at all satisfied with the variety of color and thus rated this parameter as poor.

PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

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SALES & DISTRIBUTION MANAGEMENT PROJECT

VARIETY 45.0% 40.0% NO. OF RESPONDENTS 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% EXCELLENT VERY GOOD GOOD FAIR POOR PERFORMANCE 9.3% 5.8% 2.5% 0.5% 22.9% 18.8% 34.6%

40.4% 39.8%

25.4% ASIAN PAINTS NEROLAC PAINTS

PRICE RANGE The next parameter, asked the respondent to rate the price range for both the categories of paints. In the Asian paint segment 26.9% and in the Nerolac paint segment 22% said that price range of color excellent. 36.5% and 30.5.% respondents said that the price range of color of their choice was very good for Asian paints and Nerolac paints respectively. 25.5% and 32.2% respondents said that the price range of color was good for Asian paints and nerolac paints respectively. 11.1% and 14.4% respondents were not satisfied with the price range of color ,thus rated the company’s packaging as fair.

PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

IIPM

SALES & DISTRIBUTION MANAGEMENT PROJECT

PRICE RANGE 40.0% 35.0% NO. OF RESPONDENTS 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% EXCELLENT VERY GOOD GOOD FAIR PERFORMANCE 0.0% 0.0% POOR 14.4% 11.1% 26.9% 22.9% ASIAN PAINTS NEROLAC PAINTS

36.5% 30.5% 32.2% 25.5%

PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

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SALES & DISTRIBUTION MANAGEMENT PROJECT

ANNEXURE

Questionnaire for Channel Members
Name : Address: Phone no :

Organization:

1) What are the different brands which you keep in stock? 2) Which brand is most asked by the customers i) Asian paints ii) Nerolac iii) Dulux iv)Others……………………………..

3) What is your average sales/month? 4) Which brand do you recommend to the customer and why? 5) Do you get any credit period from the company? a) YES If Yes, What is the credit period you get: i) Up to 15 days ii) 15-30 days iii) >30 days b) NO

6) What is your average order size? 7) What are the margins that you get from the company? 8) What is the average order cycle time taken by the company? i) < 5 days ii) 5-10 days iii) > 10 days

PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

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9) Where would you rank the services/assistance provided to you by the company/s Very Good Delivery Time Quality Maintenance Incentives Promotional activities Condition of Product Ease and Flexibility of placing Order Transporter’s Behavior Customers Orientation Commercial Terms Services of Sales Persons 10) How will you rate the efficiency of your sales persons a) Very Good b) Good c) Satisfactory d) Poor e) Very poor Good Satisfactory Poor Very poor

11) Does company provides you with any assistance by means of promotional activities? a) YES b) NO If Yes, Numbers, Timing, Quantity of promotions. 12) Do you provide appraisals to your sales persons? a) YES If Yes, on what Parameters? 13a) what kind of problem do you face in company’s distributing channel? b) What kind of problem do you face from customer? How do you solve them? c) How company helps you in same ( a & b )? 14) Does the company provide any kind of training? If yes, what is the motive of training? b) NO

15 a) Do you get incentive & commission? b) What are the different kinds of incentive offered by company?
PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

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c) What is the criterion for the same? d) How much incentive & commission do you earn annually? e) How much sales target do you get? f) Are you able to achieve sales target set by company? g) How company helps you in achieving sales target? _______________________________________________________________________ Person contacted: Name of dealer: Address: Tel. No.: ………………………………………………………….. …………………………………………………………….. ……………………………………………………………….. …………………………

PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

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SALES & DISTRIBUTION MANAGEMENT PROJECT

Questionnaire for Company’s Sales Executive
Name : Address: Phone :

Organization:

1. What type of sales organization structure do you possess? 2. What are the various channel structures in which you operate? 3. What are the various criterion/terms and conditions of selecting your channel members? 4. What is the average Inventory Size you keep? 5. What is the average Order Cycle time? 6. What are the various modes of transportation adopted and cost incurred? 7. What are the methods of measurement and frequency of providing appraisals to channel members? 8. What are the modes of by which you receive your payments: i) Advance payment ii) Payment on Delivery iii) Credit payments

9. In case you provide the credit period, what is the time limit? i) upto15 days ii) 15-30 days iii) >30 days

10. How frequently do you collect the feedback from your Channel members? i) Weekly ii) Quarterly iii) Monthly

11. How will you rate and rank the following aspects of your Channel Members:
PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

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Excellent Dealer’s Efficiency Timely payment Transporters behavior

Very good

Good

Fair

Poor

12. What are the margins you provide to your Channel Members? 13. How do you assign targets to your sales personnel’s and what type of targets? 14. Do you support your Channel Members by promotional activities? a) YES If Yes, i) Number of Promotions. ii) Timing of Promotions. iii) Quantity of Promotions. 15. Have you ever gone for market research? a) YES If Yes, w.r.t. whom? • • • • Customers Channel Members General market survey Hidden survey rate price and margins b) NO b) NO

16. i) What type of market research was it? ii) What was your budget? depend upon survey

PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

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17. How frequently you go for market research? Annually may be twice

Name of Respondent: …………………………………………………… Name of Organization:…………………………………………………… Designation: Address: Tel. No.: …………………………………………………… ……………………………………………………. …………………………………………………….

QUESTIONNAIRE:CUSTOMER

NAME: __________________________ AGE: ______ ___ MALE ___ FEMALE

GENDER:

1) Which brand of paints do you prefer? a) Asian Paints b) Nerolac Paints c) Others ____________ 2) What do you do if you don’t get the desired paint? a) Move to next shop b) Take any other paint c) Take any other color of the desired paint 3) Who influenced you to buy this brand? a) Shopkeeper b) Relatives
PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

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SALES & DISTRIBUTION MANAGEMENT PROJECT

c) d) e) f)

Friends Endorser Kids Painter

4) What do you prefer:a) White Wash b) Touch Ups

5)

How frequently do you get your house white washed/touch ups? a) Half yearly b) Yearly c) Once in two years d) Once in three years e) Occasionally In considering the performance how would you rate the company as per following 1-Excellent 2-Very good 3-Good 4-Fair 5-Poor scale:

6)

S.NO 1. 2. 3. 4. 5. 6. 7. 8.

PARAMETERS Availability of the product New/innovative packaging Introduction of new products Container size Availability of color Star endorsement Variety Price range

ASIAN PAINTS

NEROLAC PAINTS

PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

IIPM

SALES & DISTRIBUTION MANAGEMENT PROJECT

PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

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