sample report on asian & nerolac paints123

SALES AND DISTRIBUTION PROJECT

Sales (Pre & Post) & Distribution’ effectiveness:

A comparative study of

Asian Paints Ltd.

&

Nerolac Paints Ltd.

Under the guidance of: Submitted by:Prof. Maninder Singh Ram KambojGroup no. B2138 Reeva Sharma

Neha SatijaTinku ShokeenGaurav ChawlaSaurav Gulati

IIPM SALES & DISTRIBUTION MANAGEMENT PROJECT

EXECUTIVE SUMMARY

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.

PAINT SECTOR- ASIAN PAINTS & Nerolac Paints


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

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.



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



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



SECONDARY DATA SOURCES-

THE INTERNET

www.nerolac.com

www.asianpaints.com

www.google.com

http://www.indiacom.com/yellowpage/category-gyan/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


http://www.indiacom.com/yellowpage/category-gyan/articles/paints/Paints-Introduction.asp?category=paints

http://www.indiacom.com/yellowpage/category-gyan/articles/paints/Paints-Introduction.asp?category=paints

http://www.google.com/


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.



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



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.



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.



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 retro-reflective 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



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 DECORATIVE

INDUSTRIAL

OVERALL

ESTIMATEDPAINT

REVENUESAsian Paints 38% 14%-16% 32.5% Rs. 6,980 MMGoodlass Nerolac 7.8% 40% 17.5% Rs. 3,750 MMBerger Paints *14% *14% 14.0% Rs. 3,007 MMICI India Ltd. 8%-9% 12% 10.5% Rs. 2,254 MMJenson and Nicholson

*6.9% *6.9% 6.9% Rs 1,482 MM

Growth Rate 8-9% 18% 11%Total (Rs.) 15,033 MM 6,442 MM 21,476

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

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 PAINT SECTOR- ASIAN PAINTS & Nerolac Paints

http://en.wikipedia.org/wiki/Asia

http://en.wikipedia.org/wiki/India


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

the horns of their bullocks preferred to buy paint in small packs. Soon AP came out with 50-

ml 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.



South Asia: ASIAN PAINTS

South East Asia: BERGER INTERNATIONAL

South Pacific : SCIB PAINTS

Middle East : APCO COATINGS

Caribbean region : 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



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



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

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

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.


HOMESOLUTIONS


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



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. PAINT SECTOR- ASIAN PAINTS & Nerolac Paints


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



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.

North- 35%

South- 26%

East- 10%

West- 29%



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.



Service Network

Structure:

Group head

Service Support Field Support

On the job Training

Backend T&D Dealer CRM Day to day activities

Development 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.



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 HEAD MARKETING HEAD [NORTH INDIA][MARKETING] …………

…………

CRITERIA FOR APPOINTING A DEALER PAINT SECTOR- ASIAN PAINTS & Nerolac Paints


Credibility in the marketFoot FallFinancial positionCompetitors

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: 4Whole 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 : PAINT SECTOR- ASIAN PAINTS & Nerolac Paints


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.



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.



DON'T GET THE DESIRED PAINT - ASIAN PAINTS

116, 76%

25, 16%

13, 8%

MOVE TO NEXTSHOP

TAKE ANYOTHER PAINT

TAKE ANYOTHER COLOUROF THE DESIREDPAINT

DON'T GET THE DESIRED PAINT - NEROLAC PAINT

55, 64%

21, 24%

10, 12%

MOVE TO NEXTSHOP

TAKE ANYOTHER PAINT

TAKE ANYOTHER COLOUROF THE DESIREDPAINT

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.



PEOPLE WERE INFLUENCED BY...

23%

18%

18%

16%

16%

9%

SHOPKEEPER

RELATIVES

FRIENDS

ENDORSER

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.



5.19%

35.71%

26.62%

20.78%

11.69%

8.14%

22.09%

27.91%26.74%

15.12%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

HALF YEARLY YEARLY ONCE IN TWOYEARS

ONCE IN THREEYEARS

OCCASSIONALLY

Asian Nerolac

`

Details:

Half yearly:

Asian paint Nerolac paints

5.19% 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:


35.7% 22.09%

which surely means that 30.84% of the market get their places painted yearly.

Two years


26.62% 27.90%

This shows, 27.09% of the market get their house painted once in two years. PAINT SECTOR- ASIAN PAINTS & Nerolac Paints


Three years:.


20.77% 26.74%

which shows that 22.91% market get their house painted once in three years.

Occasionally:


15.12% 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.



Availability of the product

48.56

30.77

18.75

1.92 0.00

24.58

42.37

28.81

4.240.00

0.00

10.00

20.00

30.00

40.00

50.00

60.00

EXCELLENT VERYGOOD

GOOD FAIR POOR

Parameters

Per

cent

age

ASIAN PAINTS

NEROLAC PAINTS

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.



NEW / INNOVATIVE PACKAGING

36.5%

30.8%

26.4%

6.3%

0.0%

26.3%

39.8%

26.3%

7.6%

0.0%0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

EXCELLENT VERY GOOD GOOD FAIR POOR

PERFORMANCE

NO

. OF

RES

PON

DEN

TS

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.



INTRODUCTION OF NEW PRODUCTS

25.0%

37.5%

32.2%

5.3%

0.0%

23.7%

34.7%31.4%

10.2%

0.0%

0.0%5.0%

10.0%15.0%20.0%25.0%30.0%35.0%40.0%

PERFORMANCE

NO

. OF

RE

SP

ON

DE

NT

S

ASIAN PAINTS

NEROLAC PAINTS

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.



CONTAINER SIZE

20.2%

39.4%

33.2%

7.2%

0.0%

16.1%

36.4% 35.6%

11.0%

0.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

EXCELLENT

VERY GO

OD

GOOD

FAIR

POOR

PERFORMANCE

NO

. OF

RE

SP

ON

DE

NT

S

ASIAN PAINTS

NEROLAC PAINTS

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.



AVAILABILITY OF COLOR

39.4%

32.2%

23.1%

3.8%1.4%

32.2%

40.7%

22.0%

5.1%

0.0%0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%


PERFORMANCE

NO

. OF

RE

SP

ON

DE

NT

S

ASIAN PAINTS

NEROLAC PAINTS

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.



STAR ENDORSEMENT

36.5%

32.2%

22.1%

7.7%

1.4%

24.6%

33.1%

25.4%

9.3%7.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%


PERFORMANCE

NO

. OF

RE

SP

ON

DE

NT

S

ASIAN PAINTS

NEROLAC PAINTS

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.



VARIETY

34.6%

40.4%

18.8%

5.8%

0.5%

22.9%

39.8%

25.4%

9.3%

2.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%


PERFORMANCE

NO

. OF

RE

SP

ON

DE

NT

S

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.



PRICE RANGE

26.9%

36.5%

25.5%

11.1%

0.0%

22.9%

30.5%32.2%

14.4%

0.0%0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%


PERFORMANCE

NO

. O

F R

ES

PO

ND

EN

TS

ASIAN PAINTS

NEROLAC PAINTS



ANNEXURE

Questionnaire for Channel Members

Name : Phone no :

Address: 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 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



9) Where would you rank the services/assistance provided to you by the company/s

Very

Good

Good Satisfactory Poor Very

poor

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

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 b) NO

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?



15 a) Do you get incentive & commission?

b) What are the different kinds of incentive offered by company?

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.: …………………………



Questionnaire for Company’s Sales Executive

Name : Phone :

Address: 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


Excellent Very good Good Fair Poor

Dealer’s

Efficiency

Timely

payment

Transporters

behavior

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 b) NO

If Yes, i) Number of Promotions.

ii) Timing of Promotions.

iii) Quantity of Promotions.

15. Have you ever gone for market research?

a) YES b) NO

If Yes, w.r.t. whom?

Customers

Channel Members

General market survey

Hidden survey rate price and margins

16. i) What type of market research was it?

ii) What was your budget? depend upon survey



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: ______

GENDER: ___ MALE ___ FEMALE

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 shopb) Take any other paintc) Take any other color of the desired paint

3) Who influenced you to buy this brand?

a) Shopkeeperb) Relatives



c) Friendsd) Endorsere) Kidsf) 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 yearlyb) Yearlyc) Once in two yearsd) Once in three yearse) Occasionally

6) In considering the performance how would you rate the company as per following scale:

1-Excellent 2-Very good 3-Good 4-Fair 5-Poor

S.NO PARAMETERS ASIAN PAINTS NEROLAC PAINTS

1. Availability of the product2. New/innovative packaging3. Introduction of new products4. Container size5. Availability of color6. Star endorsement7. Variety 8. Price range


sample report on asian & nerolac paints123

Documents

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distribution network

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sales department prevalent