COMPETETHROUGHINNOVATION The keystone of Kansai Nerolac's success has been its investment in technology and theimportance given to Research

and Development. The company has, over the years, set up excellent facilities for developmental research, improving its manufacturing processes andcontinuously 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 deci sions 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. Thecompany was adjudged the fastest growing paint company in the organized sector, not once but thrice-in consecutive years. Channel structure Nerolac Paints Ltd.Dealer/ distributor Warehouse Dealer shopsEnd customer There exist a total of 4000+ dealers with multiple outlets, i.e. a total of dealers coveringcities. The percentage of dealers in each of the zones is as follows N o r t h 3 5 % S o u t h 2 6 % East10%West- 29%

PEOPLE WERE INFLUENCED BY... 23%18%18%16%16%9%SHOPKEEPERRELATIVESFRIENDSENDORSERPAINTERKIDS 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 threeyears and occasionally for both Asian Paints and Nerolac Paints. PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

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 b) NO If Yes, What is the credit period you get: i) Up to 15 days ii) 15-30 days iii) >30 days 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

13a) what kind of problem do you face in companys distributing channel? 15 a) Do you get incentive & commission? b) What are the different kinds of incentive offered by company? 14) Does the company provide any kind of training? If yes, what is the motive of training? 11) Does company provides you with any assistance by means of promotional activities? a) YES b) NO If Yes, Numbers, Timing, Quantity of promotions.

On the basis of our questionnaire, we analyzed the following: The dealer deals with different brand of paints. The ones which they generally keep instock are Nerolac, Asian, Berger, Shalimar and ICI Dulux paints. The demand for each paint varies in accordance to the area specified. The brand whichis 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 dont recommend anything to the customer; they give what thecustomer 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. Transporters 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 its verygood for Nerolac paints. Asian paints provide cash incentives at 1% while Nerolac doesnt give any cashincentive. Also, Asian paints gives commission (if June 2007s sale is greater thanJune 2006s sale.) Other incentives being given are movie tickets, foreign trips, and big bazaar discount coupons. Asian paints performance is satisfactory while Nerolac paints performance is good incase 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. PAINT SECTOR- ASIAN PAINTS & Nerolac Paints IIPM SALES & DISTRIBUTION MANAGEMENT PROJECT Both Nerolac paints and Asian paints provide assistance to dealers in promotionalactivities. Dealers of both Asian paints and Nerolac paints dont provide appraisals to their respective sales persons. None of the Dealers are facing any problem due to companys distribution channel. If dealers face any kind of problem from customers side, the sales executive takescare of it. Both the companies provide training to painters whenever new product, new finish isintroduced and skillful work is required. If the product is defective, both the companies take back the goods. In this case areturn 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