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Essay / Asian Paints Place (Marketing Mix) - 744
Elements of Asian Paint's Distribution StrategyAsian Paint bypassed the wholesale buyer segment and targeted individual consumers of paints. The PA moved slowly into urban areas and focused on semi-urban and rural areas. AP went to detail. AP has adopted an open-door dealership policy. AP voted for nationwide marketing/distribution. AP bypasses the bulk buyer segment and targets individual consumers. The bulk buyer segment used to be the major segment of the paint industry and every paint company needed a share of this major segment for its mere survival. Although this segment has been completely dominated by foreign companies and their wholesale distributors, a new entrant in the sector like AP would normally have rushed into this segment and tried to get a share of it. AP, however, had a totally different game plan. Realizing that this segment was not a growth segment, although it was certainly the major segment at that time, AP decided to ignore it for the time being and go after individual consumers. And it was a crucial decision. This influenced all subsequent decisions made by AP in the field of distribution. Over time, AP proved to the paint industry that there was a vast and bottomless segment in the paint sector in India, apart from the bulk buyer segment, comprising individual consumers. The PA moved slowly into urban areas and focused on semi-urban and rural areas. Along with the decision to cater to the individual consumer segment leaving out the bulk buyer segment, AP has also decided that within the individual consumer segment, semi-urban and rural areas will be the priority market for 'AP. AP clearly saw that a large market for paints was emerging in semi-urban and rural areas and thought it wise to tap into this market. AP has struggled to attract city wholesalers to sell its products. It necessarily had to rely on semi-urban and rural areas. AP wisely decided not to commit all its resources to a head-on collision by launching its own sales force that would get involved in the field. AP GOES RETAIL Going directly to retail dealers was AP's next major strategic move in marketing and distribution..