Berger Paints Sales & Distribution in Delhi

8/17/2019 Berger Paints Sales & Distribution in Delhi

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Project on Sales & DistributionManagement of Decorative

segment of Berger Paints in Delhi


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• Indian paint industry market assessment

• Future outlook

• About the company

• Presence in India

• International presence

• Role of channel partner

•Channel design decision

• Selection of channel member

• Channel structure

CONTNTS


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• Alternate channel structure

• !i"erent channels for high end customers

• !istribution task

• Terms of credit# payment mode and mark up

• Channel pricing

• Seasons and speci$cation of in%entory

•Stocking norms & practices

• Inno%ations

• Trade promotions

• Recommendations

CONTNTS 'contd((()


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• IN IN!IA T* TOTA+ ,AR-T SI. OF T* PAINTIN!/STR0 for OR1ANIS! SCTOR IS 23#444 Cr AN!OR1ANIS! SCTOR IS A5O/T 67#444 Cr(

• T* 8OR1ANI.! SCTOR 8 OF T* IN!/STR0 ISA5O/T 93: and 8/NOR1ANI.! SCTOR 8 23 : (

• TOP OR1ANIS! P+A0RS INC+/! ASIAN PAINTS#-ANSAI NRO+AC# 5R1R PAINTS AN! ICI(

• IN T* /NOR1ANIS! S1,NT# T*R AR A5O/T

6#444 /NITS *A;IN1 S,A++ AN! ,!I/, SI.!PAINT ,AN/FACT/RIN1 P+ANTS(

IN!IAN PAINT ,AR-T<,AR-T ASSS,NT


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SCTORS

ARC*ITCT/RA+ = >4:!ecorati%e = ? housing &

construction sector @

IN!/STRIA+ = 24:

?Automoti%e & consumerdurables@


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IN!IAN PAINT

IN!/STR0

!CORATI;S1,NT

'>4:)

PR,I/,RAN1'highend acrylicemulsions)

,TROS AN!+AR1 CITIS

,!I/,RAN1

'enamelpaints)

S,A++ CITIS

!IST,PRRAN1 'loend paints)

S/5


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,AR-T S*AR OF ,ADORP+A0RS IN IN!IA ? ON T*

5ASIS OF SI. @


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DECORAT!E"API+ !ominates the !ecorati%e segment ith 2E:market share(1NP+ the no(6 in the decorati%e segment ith 7 :market share(

5erger & ICI ha%e E: & G: shares respecti%ely( D&N and Shalimar ith 7 & 9 : respecti%ely(

#D$STRA% "

1NP+ !ominates the Industrial segment ith7:market share(API+ has a 73: market share(5erger & ICI ha%e about a 74 : and G : marketshare(

ON T* 5ASIS OFPRO!/CT


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F/T/R O/T+OO-

• Ratio of industrial paint to decorati%e paint iseHpected 3434(

•

!emand for paints for ne housing is app( 24: #rest from repainting(

• In decorati%e coating segment# groth is beingobser%ed in eHterior coating segment(

• Premium product in this category are doing elldue to superior Juality and durability(


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A5O/T T* CO,PAN0

• stablished in 7>th !ecember# 7G62(

• *ead OKce in -olkata(

• manufactures and markets a range of decorati%e &

industrial paint products(

• 7 manufacturing facilities in India and more than732 depots# besides facilities o%erseas(

• Lorkforce of o%er 6344 employees and acountryide distribution netork of 64#444 dealers(


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EAR '('%('TS

7G62 Setup on a 6 acres of land in one of IndiaMs$rst industrial tons close to -olkata in

*orah# 5engal(7G> ,r( AleHender ;ernon Nible# $rst managing

director bought o%er *ad$eldMs ?India@+imited and thus the name changed to5ritish Paints ?India@ +td(

7G93 Share capital of 5ritish Paints ?*oldings@

+imited as acJuired by CelaneseCorporation# /SA

7G>2 ,arine and decorati%e segments under the+eadership of it $rst Indian ,anaging!irector ,r( !ongargaokar ,adhukar(

7GE2 5ritish Paints ?India@ +imited# changed its

name to 5erger Paints India +imited(G4S The CO+O/R 5AN- tinting system as

launched consumer could select from arange of o%er 3444 shades(

6442


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PRSNC IN IN!IA

'o.rah

,anufacturing Capacity 77#644 ,T5erger Paints India +imited7 & 73 Sarnamayee RoadP(O( 5otanic 1arden# *orah

>77 742Phone G7 22 699E >49 B>4G B 9676 B 9672# FaH G722 699E 6G39(

Pon/icherr0,anufacturing Capacity 7E#444 ,T5erger Paints India +imited32FaH G7 27 69GG7>7(!allabh !i/0a #agar

,anufacturing Capacity 7>#444,T5eepee Coatings +imitedPlot No( 22 B Part 1(I(!(C(state;ithal /dyognagar# Anand %ia-heda !istrict# 1uQrat

Phone G7 69G6 62974 B964> B 922(

(oa

,anufacturing Capacity 9#444 ,T5erger Paints India +imited279 & 27> -undaim Industrial state-undaim# Panda# North 1oaPhone G7 2E6 62G3 974 B 94> B9676,AI+ Id bilarnsatyam(net(in(

mailto:[email protected]:[email protected]


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PRSNC IN IN!IA

Rishra 1BAC%25erger ICAI742 1(T( Road# Rishra!istrict *ooghly# Lest 5engal>766EPhone G7 22 69>6 497 B 496 B492

3ammu5erger Paints India +imited

SI!CO Industrial 1roth CentreSanba# Dammu# Dammu & -ashmir7E 767Phone G7 7G62 6937 B 93E B93G


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INTRNATIONA+ PRSNC


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CON;R1IN1 P+ATFOR,S Simplify and facilitatethe transactions by bringing the channel memberstogether(

ASIR & CONO,ICA+ asier and economical to

ork ith intermediaries(

LI!SPRA! +OCATIONS Reaching out directly tothe consumer becomes diKcult due to idespread

geographical locations(

NCAS*IN1 ON T* INTR,!IRIS PRTIS Itis easy for manufactures to encash on the

eHperience of the holesaler specialiationinfrastructure sales force(

RO+ OF C*ANN+ PARTNR


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C*ANN+ !SI1N!CISION

• Traditionally most of the paint companies follo

manufacturer holesaler retailer consumerchannel(

• 5erger eliminates one of the intermediaries

cutting don the chain# folloing A !irect,arketing channel hich helps you to contact thecustomers directly(

•

!irect ,arketing channel helps you to supportaccurate segmentation & sharper targeting of themarket segment(


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C*ANN+ !SI1N!CISION

• Cost e"ecti%e as it eliminates the cost to the%arious channel members(

• Facilitates special attention It allos 5erger to

facilitate special attention to key accounts(

• Sa%es time & hassle free purchase(


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S+CTION OF C*ANN+,,5RS

5R1R chooses its channel members based on thefolloing criteria

!ealer should ha%e a sound $nancial record(

!ealer should ha%e a goodill in the market(

!ealer should ha%e his infrastructure & logistics(

!ealers should be aare about the companybackground# products and ser%ices(


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7,AN/FACT/RIN1P+ANTS ACROSSIN!IA

732 !POTS ININ!IAB 1O!OLN

RTAI+R

5/+- 5/0R? INSTIT/TIONA

+ !;+OPRS

!IRCTPRODCTINSTIT/TIONA+B CORPORAT

!IRCTC/STO,R

C*ANN+ STR/CT/R


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C*ANN+ STR/CT/R

!+*I OR AC* STAT

!POTSB

STORA1

,AN/FACTRIN1 /NITS

NORT

*

SO/T*

AST LS T 244

!A+RS

FRO, AC*.ON

64#444 dealers all o%er India7644 plus dealers on ne !elhialone

7 products7644 shades & depots in!elhi# badurpur# mayapuri#air gunQ# mandor


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A+TRNATI;C*ANN+ STR/CT/R

• E4C%$S!E C'A##E% Product B ser%ice sale ofonly one manufacturerB producer shoroom Boutlets B franchises(

• SE%ECT!E C'A##E% productB ser%ice sale of

di"erent brands B products in limited locations? done through a selected retailer by most paintcompanies@(

• #TE#S!E 5 RETA% C'A##E% product B

ser%ice sale of F,C1 B consumer goodsB idermarket co%erage (

• 1o%ernmentB defence canteens or Subsidisedstores(

• On Commission bases ith the ainter(


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Time to time incenti%es are gi%en by 5erger according to performance ofthe dealer and market demand(

# STORE DSP%AS" POINT OF P/RC*AS # 5erger paint banners#demonstrations on colour all etc pro%ided by company(

TEMPORAR PRCE RED$CTO# They get margins plus incenti%epromotion scheme to maintain the dealer(

CO#TESTS !ealer to dealer contests are held to promote pushstrategy and best dealer gets the reard( 5erger paints does the samein %arious geographical areas(

SAMP%#( Alloing the dealer to eHperience the product or ser%ice bypro%iding samples of %arious paints(

TE#( $P 6T' #STT$TO#A% PRO3ECTSA tie up ith any of theproQect in the near by areas(

SC'EMES Promotional schemes and bene$ts such as 1ift %ouchers andSeasonal discounts sponsor trips to the dealers or 1i%ing them a chance

*OL !OS 5R1R P/S* ITS PRO!/CTS FORL


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O"ering customer solution Through customer helpline(

A ,N/ OF PRST !SI1NS *elping you to getdesigner solution for your room(

A ide %ariety of colour palette and pre


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Products for high endBlo end

customer

'igh en/ Me/ium en/ %o. en/

5erger luHol5erger silk

+uHuryemulsion

5isonemulsion

!is


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• The task of the each member of the distributionchannel is Juite di"erent but the moti%e is same fore%ery member i(e( to pro%ide the product to theconsumer(

• The manufacturers task is to pro%ide product to theholesaler(

• The holesalers task is to pro%ide the product to theretailer(

• The retailers task is to pro%ide the product to theconsumer(

!ISTRI5/TION TAS-


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Terms of Credit

TR,S OF CR!IT

,ost manufacturers gi%e > to 74 days credit period toholesalers as company does not ant blockpayments more than that period(

The credit period is eHtended for certain holesaler

depending upon ho they meet their targets and canbe eHtended up to 67 days(

CheJue is a preferred mode of payment by themanufacturer hoe%er(

Payments from customer is through cash(

PA0,NT


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,AR-
/pp The typical mark up on any product by a retaileris >


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C*ANN+ PRICIN1= 5erger Paints

,anufactur

er

Lholesaler

Retailer

Consumer

/N-NOLN

7


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7ical seasons for the 7aint in/ustr0

After monsoon until No%ember(

From 73th march to 73th Duly(

O" season is April(

!ealers collect their margins at the time of sale ofproducts(

,arginUdiscount pro%ided by company is beteen2(3 to 3:(

Margin an/ /iscount

SASONS AN!SPCIFICATION OFIN;NTOR0


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PRO!/CTS Cost to

manufacturer

per meter

Cost to

holesaler

Per meter

Cost to

retailer

Per meter

,rp

?Rs(@

Re/ o>i/e

7rimer1


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Terms of Credit

7ecication of inventor0

STOC-IN1 NOR,S AN!PRACTICS

A stock typically depends on sale on as and hensale happens(

The stock depends upon the group in hich the paintfalls such as an a%erage selling paint for eg( mulsionis kept more in stock hile a distemper is storeda%erage(

The kind of buyer based on geographical area(

In%entories eHtended in the starting of the season(

Increased at the time of !iali(

On as and hen basis keeping a minimum stock of 64litres of a sub category of a paint(


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Selling strategies 56C

• 5erger paint ha%e large area of Netork of distribution( It has

almost retail outlets through out the country situated in thedi"erent city of India( All the customer could easily access theproduct of 5erger paint anyhere and any time(

• First of al 5erger paint is bring di"erent lo cost product like/tsa% group in the rural market(

• To enhance their sales in the market they are spending a huge

amount of money in ad campaigns( Festi%e seasons includes pricediscounts on the items of 5erger paints(

• They follo salesdemonstration programme here they demonstrate their di"erentproduct here a large no( of discount is gi%en on the product#

lucky coupons# free gifts are gi%en to the customer(• ,o%ing %ans are being employed to sell their product in

di"erent %illage(

• The customers of 5erger %ary from a period to a big industryin order to enhance its ales it gi%es price discount on bulk amountof purchase( The company gi%e coupons inside the paint pack so

that could be taken by the customer as a gift from the company(•


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Selling strategies 565

• According to Primary research# the maHimum dealers go for 644containers for a month# this is done through a%erage sales of thepaints by the dealers(

• !ealers get >


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INNO;ATIONS

• Pre painting audit of structure before painting starts( The

surfaces to be painted are checked for surface porosity#moisture content# alkalinity# e"er%escence# ater seepage#undulations# micro cracks# etc(

• Recommending appropriate painting system keeping inmind the all surface and climatic conditions( Suggesting

the kind of primer# topcoat# pre


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• ;arious schemes pro%ided by company to the dealersmust be completely entertained by the help ofpersonal meetings as most of the dealers are not elleducated to understand the schemes(

•

FreJuency of ad%ertisements on tele%ision shouldincrease(

• Ad%ertising campaigns for rural segment of thesociety should be targeted(

• !ealers and painters should meet at a regularinter%al of time as it helps to promote the brand asell as maintain the goodill of the company in themarket(

RCO,,N!ATIONS


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RCO,,N!ATIONS

• Asian and Nerolac paints are used to doad%ertisements by painting of shops# hereas5erger paints Qust pro%ide a hoarding to the dealers(Company should start painting of shops for dealers(It ser%es dual purpose# $rstly it ill attractcustomers and it also pro%ides satisfaction to thedealers(

• There must be a demarcation beteen target ofsmall dealers and big dealers# so that small dealerscan also get moti%ated to complete their target(

• 5erger should use competiti%e pricing for some itsproducts hich are competing ith Asian and litepaint products in the market(


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T*AN- 0O/

1RO/P No(7

Berger Paints Sales & Distribution in Delhi

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