About Company

Asian Paints Limited (BSE: 500820, NSE: ASIANPAINT) is an Indian worldwide paint
organization headquartered in Mumbai, Maharashtra. The Company is occupied with the matter
of manufacturing, selling and circulation of paints, coatings, items identified with home stylistic
theme, shower fittings and giving of related administrations. Asian Paints is India's biggest and
Asia's third biggest paints corporation. As of 2015, it has the biggest piece of the pie with 54.1%
in the Indian paint industry. Asian Paints is the holding organization of Berger International.

Brief History
The organization begun in a carport in Gaiwadi, Girgaum - Mumbai by four companions
Champaklal Choksey, Chimanlal Choksi, Suryakant Dani and Arvind Vakil in February 1945.
During World War II and the Quit India Movement of 1942, a transitory restriction on paint
imports left just outside organizations and Shalimar Paints in the market. Asian Paints took up
the market and revealed yearly turn over of ₹ 23 crore in 1952 however with just 2% PBT edge.
By 1967 it turned into the main paints maker in the nation.

The four families together held the dominant part portions of the organization. However, debates
began once again the worldwide rights in 1990s when the organization extended past India. The
questions came about in Choksey selling their 13.7% offers and leaving in 1997. Champaklal
kicked the bucket in July 1997 and his child Atul dominated. After bombed cooperation chats
with the British organization Imperial Chemical Industries, Choksey's offers were commonly
purchased by the rest of family and Unit Trust of India. Starting at 2008, the Choksi, Dani and
Vakil families hold a portion of 47.81%.

Marketing and Advertising

In 1950s the organization propelled a "washable distemper", which was a harmony between the
shoddy dry distemper that stripped effectively and the more costly plastic emulsions. Advancing
their image Tractor Distemper, the organization utilized "Don't lose your temper, use Tractor
Distemper" in their advertisings. In 1954, "Gattu" – a fiendish kid with a paint basin in his grasp
– was propelled as mascot. Made by R. K. Laxman, the mascot discovered intrigue with the
center classes.[10]

He was utilized distinctly in print ads and bundling till 1970s and by 1990s was likewise
observed on TV promotions. Gattu helped in bringing the ware drove business of painters to the
genuine end clients of home-owners. Ogilvy and Mather, the promoting organization related with
Asian Paints, propelled showcasing methodology by concentrating on happy events in 1980s
with their slogan "Har Ghar Kucch Kehta Hai" (Every home says something). Relating with
celebrations and significant life occasions like relationships and labor, the organization promoted
it as an event to paint homes by interfacing on passionate level. In 1990s, the notices
concentrated on the home outsides concentrating on how the paints could stay with the outsides
timeless. The patched up its corporate personality in 2000s and cut out Gattu as their mascot and
later changed its "Asian Paints" logo to the shorter "AP" mnemonic.
Asian Paints Distribution Strategy Implications
1) Complex Distribution and Range
Had Asian Paints focused on the mass purchaser portion, it could have done it with a
constrained item extend, at any rate, in the underlying years. However, Asian Paints' choice
to go to the individual customers (B2C) essentially implied a wide item run. In the idea of
things, the individual customer fragment includes an extremely wide decision as far as items,
materials, shades and pack sizes. Over this, Asian Paints had faith in making items dependent
on the inclinations of buyers. It assembled criticism from the purchasers and turned out
items, shades and pack estimates based on such input. This strategy brought about a further
expanding of the item run.

2) Smaller packs further lead to product depth widespread

During Asian Paint's entrance, paint organizations were providing paints in compartments of
500 ml or bigger. Asian Paints saw that there was a felt need in the market for paints in littler
packs. All end users did not require a huge amount. In addition, it was normal practice for
customers to purchase paint at first in a bigger amount and supplement and shared providing
its agreements in little packs – in 200ml, 100ml and 50ml packs. This expansion in pack
measures additionally added to AP's developing item extend. AP was at this point assembling
and advertising upwards of 2,000 unmistakable things of paints none of which was carefully
a substitute for the other.

3) Expensive distribution as a result of wide range

The strategy of having the most extensive scope of items hues and pack sizes had its own
effects on Asain Paint's conveyance. At the point when 2,000 distinct things must be
made accessible to the buyers, it naturally implied that the organization must be set up for
high stock holding in its different stations/retail outlets. Bookkeeping and accounting
plans had likewise to be accommodated on a coordinating level. Normally, conveyance
was ending up increasingly intricate and costly for Asian Paints.
The choice to go to the semi-urban and rural markets as opposed to limiting to the urban
markets likewise implied growth of the distribution work. Asian Paints needed to go in
for more channel partners so as to serve the dissipated semi urban and rural market. The
choice additionally implied that Asian Paints couldn't settle on a straightforward, unified
conveyance of its items from its plant. It needed to go for a decentralized, field centered
circulation, which a system found everywhere throughout the nation/promoting region.
 Without such broad and serious dissemination arrange, it would not have been viable for
Asian Paints to cover the semi urban and rural markets.

4) More Channel involvement was needed by entering into B2C Market

Through its choice to go retail, Asian Paints was getting profoundly associated with
physical dissemination and managing channels. In the framework picked by Asian Paints,
the physical cum channel control was unmistakably all the more in demand contrasted
with the distributor arranged framework followed by the other paint organizations. While,
for organizations that grasped the discount situated framework, it was sufficient to
support a bunch of merchants. Asian Paints needed to support a system of thousands of
retail vendors. Having taken the choice to go retail, Asian Paints fundamentally needed to
make and administer an immense seller network and organize. It likewise needed to box
the physical distribution offices required for maintaining such an enormous system.

5) Nationwide Organization was required due to National Marketing

Degree of advertising an area and multifaceted nature of distribution associations are
interrelated. The minute Asian Paints decided in favor of across the country it was getting
into intensive just as extensive physical dispersion and channel control. AP in this way
needed to make an across the nation dissemination cum advertising association.

Following steps were followed in the implementation process:

1. AP created an enormous system of dealers

2. It built up a system of organization warehouse to support the vendors.

3. It made an advertising association that coordinated its distribution.

4. It effectively settled the cost administration struggle in distribution.

(a) A solid pledge to dissemination cost control without decreasing service level.

(b) Effective stock administration.

(c) Effective control of credit out standings

(d) IT activities in distribution cost control.

Individual Learning
This assignment helped me to get an insight about various companies working into B2B and
B2C sectors. I could also gent an overview of various industries catering to different retail and
whole sale sectors. Talking about our report, we considered two industries which were
Automobile and Paint. So working on this assignment helped me to gain an update and overview
on these industries in particular.

I could also get an exposure to different distribution channels and techniques applied. I also got
to know how these distribution techniques varied and changed as the industry in they were
applied tend to change. Various distribution techniques in applied at Mahindra and Asian Paints
brought to my knowledge how selling and distribution occurs in the practical world.

There was a better understanding about the vertical and horizontal integration applied in the
industries using their channel partners depending upon their requirement and dynamics.

A comparison between the distribution methods of two different companies catering to both B2B
and B2C segment brought a better clarity and distinctness in the working and application of
different distribution techniques as per the changing industries and segments.

Ronak Sharma

(181153)