Report by

Brijinder Singh Anand Application no 61100 FSB1

About the company

Asian Paints is an Indian paint company headquartered in Mumbai, India. It is one of the largest paint corporation that operates in 17 countries and has 23 paint manufacturing facilities in the world-servicing consumers in over 65 countries. Besides Asian Paints, the group operates around the world through its subsidiaries Berger International Limited, Apco Coatings, SCIB Paints and Taubmans.

JOB DESCRIPTION
Position: Area Manager Sales
Reporting to: Regional Manager - Sales PURPOSE: Prepare regular sales plans, direct and lead the sales personnel in the unit, handle schemes, promotions and collections, ensure excellent relationships with, and servicing of, dealers and customers linked to the unit, and manage and direct unit administration and complete statutory compliances in the unit WITHIN the guidelines of Company policies WITH THE OBJECTIVE of exceeding planned sales growth and ensuring efficient unit administration and complete statutory compliances. SIZE PUNE: 100 Cr, 500 dealers, 150Lakhs expenses 1 Office staff with C&F team (for Godown operations) 3 Sales Supervisors 13 Trade Sales Officers Education: Masters in Business Administration with 3-4 years experience in sales Specific Knowledge Statutory laws, Dealer commerce, marketing tools AREAS OF RESPONSIBILITY Sales Planning Conduct the retail audit, identify opportunities, complete annual planning doc. With sales, local promotion & input proposals & other key objectives and resource requirement, set objectives for the team IN ORDER TO ensure sustainable growth, market share gains & stretch objectives at product-category level.

Sales Operations Review sales and work out monthly sales plans, examine critical dealer level plans work out & implement schemes and promotions, provide day-to-day supervision, ensure timely reporting by the sales team & ensure responsive back-office support IN ORDER TO achieve/ exceed defined sales targets Dealer Network Management Resolve dealer/inter-dealer/inter-territory issues and conflicts, work out/rationalize special deals & rebates, add new Colourworlds/dealers, influence identified dealers/dealer-segments, build good relations with key dealers IN ORDER TO ensure the development of a healthy dealer network. Promotion Plan, schedule & direct conduct of influencer meets, fix targets & plans for Demand Generation for direct orders by the sales, schedule, direct & implement activities relating to new product launch & market initiatives IN ORDER TO ensure the achievement of regional/central product category Commercial Management Maintain unit-level over dues & collection efficiencies as per objectives, review & guide team in ensuring collections from dealers, anticipate and address payment problems in identified geographies/dealers IN ORDER TO ensure those collections are in line with company norms and unit objectives Complaints Management Monitor & resolve dealer service issues i.e. material service, shade cards, Dealer Health Cards, customer complaints, dealer accounts accuracy , prompt preparation and posting of business credit notes & account statements to dealers IN ORDER TO ensure excellence in dealer service as per company Expense Management Prepare expense budgets, monitor & review expense reports, meet & negotiate critical vendors, authorize expense vouchers IN ORDER TO ensure proper accounting and budgeting of expenses

People Management Conduct appraisals of all sales & administrative staff, provide developmental inputs to them build a spirit of teamwork, train and induct new recruits, assist in screening and recruitment of sales, administrative and CFA staff for all roles in the unit. Logistics Management Support the forecasting process by Supply Chain by providing estimates through the RM for critical products and reviewing the forecasts in the system IN ORDER TO minimize inventory levels and ensure timely service Statutory Compliance Regularly review all control, accounting and safety aspects of the CFA and godown administration to ensure streamlined operations and compliances in control and statutory areas.

JOB PROFILE:
1. TERRITORY SALES OFFICER Education: Graduate, English speaking, knowledge of local language, good communication skills, 2-3 years selling experience Dealer servicing 1. Predetermined visit frequency 2. Order booking 3. Providing information on products, schemes, promotions 4. Collecting payments 5. Resolving issues, tallying dealer accounts, following up with company for Credit Notes 6. Ensuring timely supplies 7. Handling product complaints 8. Painter training, conducting meets 9. Demand generation- visiting painting contractors, architects, large customers and selling companies products 10. Providing shade cards, shade tools, price lists, product literature etc 11. Collecting market information- competitor product launches, schemes etc 12. Conducting annual market audits- visiting all dealers, assessing competitors sales and evaluating opportunities 2. SALES SUPERVISOR Education: Graduate, English speaking, good communication skills, 5 plus years as Territory Sales Officer 1. 2. 3. 4. 5. Supervises 4 to 5 TSOs Responsible for setting annual targets at territory/dealer/product level Determines TSOs visit cycle plan to cover all dealers Vets all requisitions for new dealer openings Supervises monthly scheme implementation/ painter training/ painter meets/ shopboy meets 6. Reviews TSO visit reports to ensure all pending issues are satisfactorily resolved

7. Collects market information 8. Handles difficult product complaints which TSO is not able to close 9. Assists Area Sale Manager in planning, monitoring sales operations and Network Management. 10.Takes responsibility in developing good relations with few key dealers

3. SALES SUPERVISOR Education : Graduate, English speaking, good communication skills, 5 plus years as Territory Sales Officer Supervises 4 to 5 TSOs Responsible for setting annual targets at territory/dealer/product level Determines TSOs visit cycle plan to cover all dealers Vets all requisitions for new dealer openings Supervises monthly scheme implementation/ painter training/ painter meets/ shopboy meets Reviews TSO visit reports to ensure all pending issues are satisfactorily resolved Collects market information Handles difficult product complaints which TSO is not able to close Assists Area Sale Manager in planning, monitoring sales operations and Network Management. Takes responsibility in developing good relations with few key dealers

DURABLE NON DURABLE CONSUMER YES INDUSTRIAL YES

SERVICES

NO NO

YES YES

Dealers Margin :- 5-15 % Octroi tax the current rate is 5.5 % The company pays 3.5 % ( 63 %) The dealer pays 2 %. (37%)

Product
Primors/ Putties we get primors in litres while putties in kg. Primor sizes vary from 1kg 20 kg. Puttie sizes vary from 1ltr 20 ltr.

All the products come in 7 shades to the distributor: 1 White 6 Bases Colors can be tinted in machines in the shop. This can yield 1800 different shades.

Roles of channel members

Company (territory manager): Explains schemes/ Co promotion. Dealer Health Card Notes all complaints Checks A/c May Collect Payments Informs dealers of new products Visits customers in case of grievances Holding painter meet

Dealers/ Distributors: Payment discounts Monthly Schemes/ promotions Annual deals Customer Service.

Dealer Frequency Plan

Companys territory manager makes a plan to make visits to the dealers at a particular frequency based on the sales volume.

SALES COSTS
5cr- 1cr 75 lakhs 1 cr 50 lakhs 75 lakhs Others

NO. OF VISITS
Once in 3 days. Once in a week Once in 10 days Once in 15 days

Territory manager allocates different areas in his territory to different salesmen and make them to visit the customer at a particular frequency based on the above criteria.

Distribution System (PUNE)

Wakad

200 Shops in Pune City 150 Shops

Pimpri

Adjoining Dist.

400 Shops In Pune/ Satara

3 Depots
750 Shops in Pune City

Delivery Process
Pune - 3 hrs Up Country next day

Buying process (PUNE)

Flow

Shop places order through Telephone - Call Centres in Mumbai Punched in or ERP System

of

Invoice Releashed Order Material Goes to Shop

Credit Schemes & Incentives

5 % Cash Discount

Within 3 days

3.5 % Cash Discount

27 days for city 35 days for up country

No discount

If it is further delayed than further orders are canceled

Main Products
PRODUCT
Premium Gloss Enamel Utsav Enamel Premium satin enamel Metal primer Wood Primer Tractor Synthetic Distemper Tractor acrylic Distemper Tractor emulsion Premium Emulsion Royale emulsion Royale play Ace emulsion Apex Ultima Exterior Primer

MARKET
For use on wood/metal For use on wood/metal For use on wood/metal For use on wood/metal For use on wood For Use on interior walls For Use on interior walls For Use on interior walls For Use on interior walls For Use on interior walls For Use on interior walls For use on exterior walls For use on exterior walls For use on exterior walls For use on exterior walls

FINISH
Glossy Finish Glossy Finish Satin Finish

PRICE
180/ per litre 130/ perltre 190/ pl Rs 50/ per litre Rs 70 per kg highly durable only interiors highly durable to be used on primer to be used on primer to be used on primer to be used on metal to be used on wood to be used on primer to be used on primer to be used on primer to be used on primer to be used on primer to be used on primer to be used on primer to be used on primer to be used on primer to be used on primer

Matt Matt Matt Matt Sheen Sheen matt matt Sheen matt

Rs 60 per kg Rs 70 per kg Rs 100 per litre Rs 165 per litre Rs 300 per litre Rs 350/ per litre Rs110 per litre Rs 200 per ltre Rs 275/ per litre Rs 90 per litre

washable more durable more durable more attractive very attractive with effects

MARKET BREAK UP
Home Repainting Builders/ Contractors Office Painting Industry Painting 60% 20% 10% 10%

MAIN PLAYERS IN PAINT MARKET 1. 2. 3. 4. 5. 6. ASIAN PAINTS LTD BERGER PAINTS LTD KANSAI NEROLAC LTD AKZO NOBEL LTD (Dulux) JOTUN PAINTS LTD NIPPON PAINTS LTD

TERRITORY SALES OFFICER- ALLOCATION OF TERRITOTIES AND DEALERS IN GEOGRAPHICAL AREA

No of of Dealers Market TSO Potential all cos Asian Paint sale no of dealers Nof dlrs over rs 1 cr annum .5to 1 cr pa .3 to .5 cr pa .1 to .3 crs pa less than 10 lac pa Total time with dlrs travelling time Painter training Complaint handling Demand gen 2 daysoff in month 1day/week office Total Time efficiency A 20 crores 10 42 Market B 18 crores 8 45 Market C 15 crores 7 50 Market D 25 crores 10 44 Market E 20 crs 7 50 Market F 18 crs 8 40 Market G 15 crs 6 45 Market H 22 crs 7 45 Market I 20 crs 8 44 Market J 30 crs 15 35 Market K 23 crs 9 46 Market L 25 crs 9 44 251 crs 104 530 TOTAL

1 4 7 10 20 42 37.5 19.8 21 4 4 16 32 134.3 84%

1 2 6 16 20 45 33 19.14 22.5 4 4 16 32 130.64 82%

0 2 6 20 22 50 31.6 19.8 25 4 4 16 32 132.4 83%

1 3 8 10 22 44 36.6 20.13 22 4 4 16 32 134.73 84%

0 2 6 15 27 50 30.6 19.8 25 4 4 16 32 131.4 82%

1 2 6 11 20 40 30.5 17.49 20 4 4 16 32 123.99 77%

0 1 5 14 25 45 25 17.16 22.5 4 4 16 32 120.66 75%

1 1 5 15 23 45 28.9 18.15 22.5 4 4 16 32 125.55 78%

1 2 5 15 21 44 31.3 18.48 22 4 4 16 32 127.78 80%

3 3 5 10 14 35 37.7 18.15 17.5 4 4 16 32 129.35 81%

1 3 8 12 22 46 37.6 20.79 23 4 4 16 32 137.39 86%

2 2 7 14 19 44 37.2 20.13 22 4 4 16 32 135.33 85%

Time/Visit in hours
1 1 0.75 0.5 0.3

Visits/Months
4 3 2 1 1

No. of Dealers
over rs 1 cr annum .5to 1 cr pa .3 to .5 cr pa .1 to .3 crs pa less than 10 lac pa

Table above takes average time spent with each category of dealer. In Dealer market table, Row 1 leave) Row 2 Row 3 Rows 6-10 Row 11 Row 13 12 territories , one for each TSO, (1 TSO buffer when others go on

Annual Paint sale in Territory all companies annual Asian Paint Sale in Territory No of dealers in each size classification in each territory Total no of dealers in each territory Time spent with dealers based on no of dealers in each category x no of visits per month x avg time per visit Row 14 monthly travelling time = no of dealer visits x 20 min (avg time between dlrs) Row 15-17 Avg monthly time in painter training, demand generation, complaint handling Row 18-19 Days off/ in office Row 20 total time working Row 21 Working efficiency kept between 80 and 90% to allow for contingencies.

Call Sheet
CALL SHEET
Dealer Visited Date Time Person Met Value of order given Credit notes Given Payments Collected shadecards given Dealer grievances Supplies Accounts Credit notes Product Complaints Competitor Information competitor schemes/ discounts new product launches estimated monthly sale

Asian Paints
Interior walls Distempers Emulsions Price/Quality Economy Economy Premium Luxury Solvent based Exterior Emulsion Economy Premium Luxury Enamel Economy Premium Luxury Wood Finishes Economy Premium Luxury Utsav acrylic Distemper Tractor Synthetic Dist Tractor Emulsion Premium emulsion Royale Emulsion

Market percieved
Advantage of AP most durable in category best coverage

Kansai Nerolac
Beauty distemper Beauty emulsion

Berger Paints
Jadoo Distemper Bison Distemper Bison Emulsion Rangoli Easy Clean Silk Breathe easy

Akzo Nobel

good washability best washability with teflon best look Good washability, dana appearance good colour retention known for durability 7 year warranty wide shade range low sheen water based

beauty acrylic Impressions

Dulux Velvet Touch Dulux 3 in 1

Apcolite Lustre Ace Apex Ultima utsav Enamel Apcolite Enamel Satin enamel Premium Semi Gloss Touchwood Melamyne Asian PU Finish

Nerolac Lustre Suraksha Excel Excel Total Nerolac Enamel Satin Wonderwood 1KPU Wonderwood melamine Wonderwood 2KPU Woodkeeper PU Walmasta Weathercoat Weathercoat Allguard Butterfly Luxol Luxol Satin Dulux Dulux Satin Dulux 5 in 1 Weather shield Weather shield Max

fast drying excellent durability

Kansai Nerolac Leader in Lustre Enamel, Strong number two in Nerolac Enamel and good share of distemper. Prices 5% lower than asian paints. Akzo Nobel strong number two in Velvet Touch Emulsion and Dulux Emulsion. Good share in Project s with builders using weathershield Emulsion. Berger leader in Project sales. Good sales of Bison distemper. Asian Paints strong in all categories and leader wherever not mentioned above. Prices are normally 5 to 10% higher than competition. Best supplies and quality as perceived by users. Berger sells on the price economy front, Nerolac was traditionally strong in Pune but has been losing share to Asian Paints over the last 10 years.

MARKET DEVELOPMENT PLAN

1. To grow in Royale and Premium Emulsion category by 30 % in 2011-12 a. Installing at least 10 new Colourworlds (Emulsion tinting machines at dealer counters) b. Opening 10 new dealers in the growing suburbs of Pune baner, Pimpri Chinchwad etc c. Operating a consumer promotion on emulsions in the key in the key demand period prior to Diwali d. Holding painter meets across all emulsion counters demonstrating through application advantages of Royale e. Ensuring prominent visibility in all counters of Royale and the Teflon merchandising f. Working with Marketing to launch an emulsion initiative in December to February in the city supported by attractive dealer and painter schemes g. Ensure adequate share of voice in advertising in the City 2. To gain share in The Lustre enamel segment dominated by Nerolac a. Focus on this segment through launch of water-based Lustre across the network b. Fix targets at the dealer level for water based + solvent based lustre c. Hold extensive training programmes for painters highlighting advantages of water-based lustre- quick drying, no smell, higher coverage hence lower cost/sq ft. 3. To expand the network in competition strong clusters a. To open at least 3 dealers each in the main market (Boriali) and camp areas so as to gain shae from Nerolac in these markets 4. To ensure dealer servicing within 3 hours of placing the order and issue of credit notes within 5 days of month closing. 5. To focus on the Exterior market in the builder segment where Berger and Akzo Nobel are strong a. Identify the list of major builders in the city

b. Allocate at least 3 builders to each TSO c. Ensure each builder is visited at least once in 15 days and his major projects identified d. Ensure product/shade sampling is done across each builders projects and that all services/ quotations are given in a timely manner