Elements of Asian Paint's Distribution StrategyAsian Paint has bypassed the bulk buyer segment and targeted individual paint consumers. AP went slow on urban areas and focused on semi-urban and rural areas. AP went into detail. AP has an open distribution policy. AP voted for nationwide marketing/distribution AP EXCLUDES WHOLESALE BUYER SEGMENT AND GOES TO INDIVIDUAL CONSUMERS The wholesale buyer segment was the major segment of the paint business in the early days and any paint company needed of a share of this important segment for pure survival. Although this segment was totally dominated by foreign companies and their wholesale distributors, a new entrant like AP would normally rush into this segment and try to acquire a share. AP, however, had a completely different game plan. Seeing that this segment was not a growth segment, even though it was certainly the most important segment at the time, AP decided to ignore it for the time being and target individual consumers. And that was a crucial decision. It influenced every subsequent decision AP made in distribution. Over time, AP demonstrated to the paint industry that there was a large and bottomless segment in the paint industry in India, outside of the bulk buyer segment, consisting of individual consumers. AP went slow on urban areas and focused on semi-urban and rural areas. In addition to the decision to target the individual consumer segment, leaving aside the wholesale buyers segment, AP also decided that within the individual consumer segment, semi-urban and rural areas would constitute AP's priority market. AP clearly saw that a large market for paints was emerging in semi-urban and rural areas and saw fit to exploit this market. AP has found it difficult to attract wholesalers to cities to sell its products. To get support he necessarily had to turn to semi-urban and rural areas. AP has wisely decided not to commit all its resources to a head-on collision by launching its own sales force to cover the ground level. AP GOES TO RETAIL Going directly to retailers was AP's next major strategic decision in marketing and distribution.