Elements of Asian Paint’s Distribution Strategy
Asian Paint bypassed the bulk buyer segment and went to individual consumers of paints. AP went slow on urban areas and concentrated on semi-urban and rural areas. AP went retail. AP went in for an open-door dealer policy. AP voted for nationwide marketing / distribution AP BYPASS THE BULK BUYER SEGMENT AND GOES TO INDIVIDUAL CONSUMERS Bulk buyer segment was the major segment of the paint business in the earlier days and any paint company needed a share of this major segment for sheer survival. Though, this segment was dominated totally by foreign companies and their wholesale distributors, a new entrant to the business like AP would normally have rushed to this segment and tried to garner a share of it. AP, however, had a totally different game plan. Seeing that this segment was not a growth segment, though it was certainly the major segment at that point of time, AP decided to ignore this segment for the present and go to individual consumers. And that was a crucial decision. It influenced every subsequent decision AP took in the realm of distribution. Over time, AP proved to the paint industry that there existed a large and bottomless segment in the paint business of India, outside the bulk buyer segment, comprising of individual consumers. AP went slow on urban areas and concentrated on semi-urban and rural areas. Along with the decision to go to individual consumer segment leaving aside the bulk buyer segment, AP also decided that within the individual consumer segment, semi-urban and rural areas would constitute AP’s priority market.APclearly saw that a large market for paints was emerging in the semi-urban and rural areas, and felt it wise to tap this market. AP found it difficult to attract the wholesalers in the cities to deal in its products. It had to necessarily turn to the semi-urban and rural areas for support. AP wisely decided against committing all its resources on a head on collision by launching its own Sales Force who will to the ground level . AP GOES RETAIL Going directly to retail dealers was the next major strategic decision of AP in the realm of marketing and distribution.
...ons. Not only does the professional painters and homeowners buy the paint they are customers who return to purchase more items because they are consistent buyers of the product. With consumers having unique needs, and different attitudes, and opinions it is critical that the development of relationships with the consumer is with confidence. Sherwin Williams as a company focuses on the needs and wants of their customers to serve most efficiently and turn a profit in the quickest but the most productive way possible. Target marketing is a marketing tool used to be more efficient and allocate resources better and most if not all use this tool because the competition is fierce and you have to use any tool at hand to get and upper hand to stay in business.
1. Management Improvement - Mr. Walsh should take up management degree. He needs to learn employee empowerment and delegation. He needs to learn employee empowerment and delegation. The plant manager needs to be trained on leadership since he has no experience in management. He should also start hiring a public relations specialist and a marketing specialist to improve on these two aspects of the business.
ASDA fails to employ any sort of man made shades and flavors, people employ nearby solutions,, people overcome truthful deal together with connections with environment.
The concept of Supermarkets is not new to Indian consumers. In the past few years there has been a significant rise in the number of supermarkets, especially in the metropolitans. Supermarkets in India, houses varied shops selling different types of essential commodities along with luxury items. These Supermarkets are mainly concentrated in urban areas or semi-urban areas. Supermarkets operating in India typically have a heterogeneous mixture of large and small individual retailers. Most of these Supermarkets sell branded products of both, domestic and international manufacturers. Supermarkets of India offer products with different price bands for each and every sections of urban society. All these supermarkets claim to work on the principle that “the consumers must have the freedom of choice”. The customer is supposed to feel daunted-bewildered, at the large number of choices that he is offered. It is no wonder that most of these supermarkets look the same. Breathtaking amount of research have gone into designing these places. A customer is forced to go past thousands of other products in order to search for what he needs. The concern of the supermarkets in to increase their sales and in order to do so they manipulate the customers and their purchasing prowess into making them purchase items that they want to sell. This is where Point-of-Purchase advertising comes into effect. Point-of-purchase advertising or P-O-P is a generic term for display units (e.g. retail display stands, showcases, interactive displays, literature dispensers, poster holders, sign holders etc.) used to merchandise specific goods and services, or as a vehicle for presenting point-of-sale advertising such as printed leaflets, posters, or audio-visual media. ...
Not only does the company have six potential alternatives, but the firm also has several uncertainties if it enters into the India market space. The magnitude and timing of the firm’s retail competitors may be unclear. Competitors could aggressively advertise their current products or extend product lines if the market appears to...
...pport their East India Company. This point of view of the administrator is accurate because he is a member of the office which presides over the trade.
It was the traditional focus for marketing and promotional campaigns. Transactional marketing focuses on attaining individual sales of a product through boosting volume of sales made for a product or service. It hence targets mass markets within a short period. Therefore, this technique invests little in strategies that strengthen customer service and experience of the product (Challagalla, Murtha & Jaworski 420). Also, the types of strategies used in transactional marketing are aimed at convincing the consumer to make the single purchase hence a single point sale strategy. The mass marketing strategies used in transactional marketing include gaining competitive advantage through low-pricing, cutting costs of production, return on investment and investing in market promotion (Challagalla, Murtha & Jaworski 420). Consequently, this marketing technique is focused on application of the 4Ps of traditional marketing mix, which are price, product, promotion, and place. Moreover, the marketing technique is applied on the assumption that proper price setting is enough to gain market share without much consideration for customer service. Promotional techniques involved include telesales, mass e-mailing, use of sales agents, and other similar promotional activities that are done after purchase of consumer information from Internet databases. However, such promotion does not have an after sale consulting services for customers hence making it unpopular. Also, the technique can be said to focus primarily on maximizing the profits of the company by attracting new customers to purchase the product offered by the
This report analyzes the cosmetics retail industry in Hong Kong. There are many large-scale specialty cosmetics chains that are well developed in this market, such as Sasa, Bonjour, Colourmix, Aster and Angel, which are taking the lead. They mainly offer a wide range of international branded products and private label products to cater for customers’ special beauty needs, like make-up, fragrance, skincare items. With many dominant firms and a slowing growth in demand, the industry structure is being identified as mature.
After studying the cosmetic market we can identify a series of needs in this market:
This strategy is very much about the business which is carried out as usual. In this strategy the marketer is focusing on both the product and the market opportunity.
India is one of the world’s largest automobile industries; it’s in fact the second fastest growing automobile market in the world after China. India is now focusing in the production of small cars, in which they are building a reputation in designing and manufacturing ultra low cost cars. It is important to highlight that international business such as Hyundai and Nissan have invested in plants in Chennai, India. These two businesses are showing how efficient their production and logistics functions can improve their business’s competitive position by lowering the costs. Lowering costs is the main reason why these two firms have invested in India. The same has happened to many other industries in other areas not just the automotive, there are many reasons why India is so attractive to foreign industries, which it will be explained later in this text.
It should be considered that what appeals in one market, might not necessarily yield the same results in another. P&G initially generated only 20% of its revenues in developing countries, which is much lower than its competitors were. Consequently, P&G established smarter, more cost effective methods to cater for those markets. Firstly, P&G contracted manufacturers to reduce costs in production. Secondly, P&G engaged the consumers in the developing markets to establish their needs and made slight alterations to products to increase appeal. Resultantly sales in emerging markets increased with 19%.
Traditionally, marketers were focused mainly on selling a product. They started with production and marketing was done while selling and promoting the product to attain sales at a profit. In this technique, they were of the view that the product should be brought in the market with an aggressive selling strategy and imposed in the market through promotional pressures. Their marketing purview was limited to 4P’s which are product, promotion, price and place for profit maximisation.
The organization’s distribution strategy needs to be effective in order to reach the organization’s goals on gaining market share of their products. The international marketer is challenged in developing a distribution strategy because of the comprehensive array of substitutes for evolving an effective, reasonably priced, high capacity international distribution system (Cateora, Gilly, & Graham, 2013). Developing the correct price on goods can be the main element on the victory or disaster of the goods.
...enture into overseas market comes with expectations as well as uncertainties due to unfamiliarity. Charles and Keith, the fashion retailer, has to understand clearly that what appeals in one market might not be accepted in the others and this is almost the same for all industries. Thus, a thorough research on cultural background has to be done before entering an unfamiliar ground.