Evolving a distribution strategy to reach the small towns and villages; Asian Paints (India) Limited, Bombay

Abstract

The 1994-95 figures showed that, for the first time in the company’s history, other towns were growing at a rate faster than the major towns. This warranted a study as to how to service these other towns better. The focus was on smaller towns and villages in particular. In this regard, a total of 5 districts in Vidarbha and 2 districts in Telangana/Rayalaseema were visited. The aim was tea evolve a suitable distribution strategy to reach the small towns and villages in such areas. Consequently, different avenues were examined to achieve the above mentioned aim. These were a wholesaler led van operatian. an RDS led van operation, a company led van operation and 2 salesman-booking-orders type of operation. Heavy seasonality was observed in Vidarbha while Telangana/Rayalazeema did not demonstrate the same. The frequency of purchase ‘was also different in both areas with sub-dealers in Vidarbha purchasing at a higher frequency. After evaluating each option, a company led van operation only during Diwali has been suggested for Vidarbha. For Telangana/Rayalaseema, a wholesaler led operation carrying out van operations 9 times an year has been suggested.