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1.0 Introduction

Today the names "Berger" and "Lewis Berger" are synonymous with color. Berger Paints

continues to be inspired by the creation and innovation of Mr. Lewis Berger, who through his

marvelous shades, had offered people a chance to transform their homes through the power of

imagination. At Berger it believes in taking paints to the level of fine art. Enriched by the

imagination of Lewis Berger since 1760

In 1760, a young color chemist "Lewis Berger" developed a method for manufacturing

Prussian blue using a secret process that every designer and householder coveted. His

business was nurtured by his descendants and others till it merged with Jenson and Nicholson

Ltd. to form Berger, Jenson & Nicholson Limited.

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2.0 Company Profile

With an ever-evolving profile and rich history, Berger Paints started its business in

Bangladesh since independence. Berger is one of the oldest names in the paint industry.

Berger Paints turns one’s dreams into colorful reality. It is a leader in paints, offering its

customers a variety of innovative painting solutions, weather it is decorative or industrial.

Whether it is one’s home or office, shop or factory, interiors or exteriors, metal, wood, plastic

or any other surface - it has a paint solution for it.

Berger has been involved in paint business since 1950 in Bangladesh when paints were first

imported from Berger UK and then from Berger Pakistan. In 1970, Berger Paints Bangladesh

Limited (BPBL) erstwhile Jenson & Nicholson had set up its paint factory in Chittagong at an

estimated investment of TK.4 million. The shareholders were Jenson & Nicholson (J& N),

Duncan Macneil & Co Ltd and Dada Group. The name of the company was changed from J&

N (Bangladesh) Limited to Berger Paints Bangladesh Limited on 1st January 1980. In August

2000, J& N investment (Asia) Ltd purchased Government shareholding. Now, Berger Paints

Bangladesh Limited is 100% owned by J& N Investment (Asia) Limited, UK.

Investment in technology and plant capacity is even more evident from the new factory of

Berger Paints Bangladesh Limited at Savar. The state-of-the-art factory is an addition to

Berger's capacity to make it the paint-giant in Bangladesh. All, together with devotion into R

& D to make it the reputed center of Basic & Applied Research in paint and Resin

Technology, proof the commitment that Berger has for this industry.With its strong

distribution network, Berger has reached almost every corner of Bangladesh. Nationwide

Dealer Network, supported by 7 Sales Depots strategically located at Dhaka, Chittagong,

Rajshahi, Khulna, Bogra, Sylhet and Comilla has an unmatched capability to answer to paint

needs at almost anywhere in Bangladesh.

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The sheer innovation and development drive is reflected on the various products Berger has

so far launched in this market. The product range includes, specialized outdoor paints

protective of the worst weather conditions, Color Bank, superior Marine Paints, Textured

Coatings, Heat Resistant Paints, Roofing Compound and Epoxies. In each of the product

category, Berger has always been the pioneer and will continue to do so proudly.

Berger's one of the prime objectives is to provide best customer support-connecting

consumers to technology through specialized services like free technical advice on surface

preparation, color consultancy, special color schemes etc. To bolster customer satisfaction,

Berger has recently launched Home Decor Service from which once can get an array of

services pertaining to painting.

Vision:

We shall remain as the benchmark in the Paint industry by:

Being an innovative and technology driven Company consistently delivering world-class

products ensuring best consumer satisfaction through continuous value added services

provided by highly professional and committed team.

Mission:

We shall increase our turnover by 100% in the next five years.

We shall remain socially committed ethical Company.

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3.0 Organizational structure

Like all other manufacturing organizations, BPBL has a conventional organizational

structure. Generally six Board Meetings are called in BPBL during a year where Chairman of

the Board of Directors presided over the meetings. In BPBL several committees like- the

Audit Committee, Risk Committee, Remuneration Committee, Executive Committee and the

Purchase Committee are formed along with Managing Director (MD) and other Executive

and Non-Executive Directors. These committees sit at least once a month to approve various

proposals brought by the management prior to implementation. All the proposals are placed

to the committee through the Managing Director of the company. The proposals are initiated

by the mid level managers and then forwarded to the Managing Director through the head of

the divisions or departments. The company has also a legal advisor (an advisor firm) to solve

the legal problems faced by the company and external auditors to conduct audit activities of

Berger Paints Bangladesh Ltd.

There are four Non-Executive Directors, two Executive Directors and ten Managers work

under the Managing Director of the company. Among the ten managers three directly report

to the Executive Directors and others report to the Managing Director. The managers of each

department monitor the work activities of subordinates, convey top management decisions

and provide necessary feed back to reach organizational goals and objectives. In response the

bottom level managers perform their responsibilities sincerely and report regularly to their

immediate superiors.

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Managing

Director

Director

Operation

s

Director

Finance

Marketing

Manager

General Sales

Manager

Regional

Sales

Manage

r

Area Sales

Manager

Assistant

Mkt

Manager

Sales

Officer

Branch

Manager

Sales

Officer

Finance

Manager

Deputy

Finance

Manager

Assistant

Manager

Finance

Officer

GM

Planning

Assistant

Manager

Planning

Officer

Marketin

g

Officer

GM Mfg

&Project

Assistant

Manager

Officer

System

Manager

Assistant

Manager

System

Officer

Manager

HR &

Admin

Assistant

Manager

HR

Officer

Fig: 1: The organizational structure of BPBL

The organizational structure of BPBL:

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4.0 Product Line of BPBL

The Company improved its overall market share due to strong brand pull from consumers,

continued support from the distribution network, as well as projects. Moreover the innovative

marketing strategies during 2006 i.e., Berger Home Décor- the one stop paint/painting

solution together with color consultancy, the launch of “Berger Illusions” range of design

coatings, as well as “Robbialac Easy Clean” Emulsion paint have provided the consumers

with unique coatings resulting in improvement in life style.

Performances over the last five years and value added statement of Berger Paints Bangladesh

Ltd have shown below with tables and graphical presentation: All types of paints can be

divided into three major groups. These are Decorative, Industrial, and Marine. Decorative

paints are generally three types; oil based, water based, and cements paint.

Paints

Decorative Industrial Marine

Oil Based

Water Based

Cement Paint

Fig: Paints Major Category of BPBL

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Decorative Paints:

Berger Paints Bd Ltd. offers both interior and exterior paints. It leads the way for introducing

high quality color bank products and top coat finishes decorative paints in Bangladesh.

Interior paints like plastic and distemper are used in wall, cement plaster etc. and enamel is

generally used for metal, wood, bamboo, hardboard etc. Those products ensure long life of

metal, wood, bamboo, hardboard, cement plaster etc. as well as its beauty. Very recent Berger

offers Robbialac easy clean which is high quality interior wall finish, highly applicable for

concrete wall and cleanable. It offers exterior paints like weather coat which is high quality

exterior liquid and durocem is power based. Both are water, weather and fungus resistant. It

also provides primers, undercoats, thinners and other decorative products.

The following chart shows the category of decorative products of Berger paints.

Decorative

Paints

Oil Based

Water Based

Cement Paint

RSE

Jhilik

Interior Exterior

APE

SPD

Luxury Silk

Easy Clean

Weather Coat

WC Longlife

Durocem

Fig: Major Decorative Paints of BPBL

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The following table introduces Decorative top coat finishes

Product Name Description

Luxury Silk

A marvel of international emulsion technology, Luxury

Silk combines the best of aesthetic appeal with the best of

functional properties like durability and ease of

maintenance.

Robbialac Acrylic Plastic

Emulsion (APE)

A standard emulsion paint formulated with acrylic, co-

polymer emulsion, quality pigments and other raw

materials. R. APE has a smooth, rich, matt finish and is

available in a very wide range of pleasing shades. Painted

surfaces, which have matured for at least two months, are

easy to clean with a solution of water and mild soap (not

detergent).

Robbialac Super Gloss

Synthetic Enamel (RSE)

Robbialac Super Gloss Synthetic Enamel is hardworking,

premium quality synthetic enamel formulated to retain its

gloss and film integrity in the face of extreme climatic

variations. Its excellent weather ability makes it ideal for

rolling stock like railway coaches, buses, lorries, oil

tankers, as well as for doors, windows, signboards and

hoardings. It is equally versatile for interior applications

like furniture, fixtures and various other domestic articles.

Robbialac Acrylic

Distemper (SPD)

A specially formulated acrylic co-polymer emulsion based

washable distemper for elegant, smooth, durable, matt

finish for interiors. Compared to other conventional

distempers, Robbialac SPD can cover 30% more area

because of its special formulation.

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Weather Coat Smooth

Weather coat is smooth water based super exterior wall

finish formulated to give exceptional durability in adverse

climatic conditions. It provides the building with a long

lasting and fresh appearance. It is based on tough, flexible

and high quality resin emulsion, which provides excellent

flexibility and adhesion.

Jhilik Synthetic Enamel

Jhilik Synthetic Enamel is an economy synthetic enamel

formulated for interior and exterior application to give a

glossy durable surface. It is ideally suitable for wood and

steel furniture, toys and various household items.

Durocem Cement Coating

Durocem is an exceptional formulation based on selected

raw materials and specially treated white cement that

makes it ideal for both indoor and outdoor applications. It

affords a hard, durable and waterproof surface. This

product is a unique combination of aesthetics, durability

and economy.

Wood Keeper It provides brightness to polished or polish less, plain or

uneven surface of wood and spot resistance.

Tartaruga Textured Coating This is one of the most famous BERGER formulations in

the world.

Illusion

Berger illusions is not just a paint… it’s a whole new

lifestyle for one’s walls. A range of designer wear for one’s

walls with thousands of color options.

Robbialac Wall Putty It used for new even plaster wall and only applicable for

outer wall.

Table-1: Major decorative products of BPBL

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Color Bank Product:

Berger Color Bank is the pioneer to show the global way to paint with an unlimited choice of

shades to match one’s taste-instantly. Every Berger Color Bank store has a computerized

color tinting machine to help one choose and take home one’s own shades from its world

class range of paints. Availability of one’s chosen shades is always ensured as the paint is

created and dispensed by the machine before one’s very own eyes.Berger Color Bank has an

unique Tintovision software which allows one to see infinite color combinations on the

screen of the computer. If one so desire one can mix and match and create one’s own shades

as well.

Color bank products-

Robbialac Plastic Emulsion Classic

Robbialac Synthetic Enamel Gold

Luxury Silk Splendour

Easy Clean

Robbialac Pearl Lustre Finish

Weathercoat Smooth Classic

Weathercoat Longlife

Robbialac SPD Super

Wood Keeper Finesse

Industrial paints:

Berger offers industrial finishes, high protective coatings, industrial primers and other

industrial products for the requirements of industrial paints. These paints are long lasting and

prepared in a special method to protect industrial equipments, structures from heat, swatting

and bulging. BPBL offers the following products for its industrial customers

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Industrial Paints

Industrial Finishes

Berger Suprakoat Powder Coating

Jensolin Synthetic Enamel

Jensolin Aluminium Paint

Jensolin Stoving Enamel

Jensolin Chlororubbrer Paints

Jensolin Other Products

Jensolin Road Marking Paint

Jensolin Swimming Pool Paint

Jensolin Tennis Court Paint

Jensolin Cycle Paints

Jensolin Insulating Varnish

Jensolin Paint Remover

Jensolin Rust Remover

Thermoline

High Protective Coatings

Jensolin Epoxies

Jensolin Polyurethanes

Industrial Primers

Jensolin Red Oxide Primer

Jensolin Red Lead Primer

Jensolin Zinc Phosphate Primer

Jensolin Zinc Chromate Primer

Jensolin Wash Primer

Table-2: Major industrial products of BPBL, Source: www.bergerbd.com

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Marine Paints:

Berger produces completely different top coat finishes, special coatings, primers and thinners

for ships, boats and other marine vessels. These paints are exclusively produced to protect

marine vessels from sea water, fungus and fragility. Some marine products of Berger are-

Marine Paints of BPBL :

Top Coat Finishes

Seaborne High Gloss Enamel

Seaborne Aluminium Paint

Seaborne Boot Topping

Seaborne Topside

Seaborne Deck

Seaborne Funnel Heat Resisting

Seaborne Bituminus Black

Seaborne Berger Marine Enamel

Special Coatings Seaborne Epoxy Coatings

Seaborne Chlororubber Antifouling

Primers

Seaborne Red Lead Primer

Seaborne Zinc Chromate Primer

Seaborne Zinc Phosphate Primer

Seaborne Metallic Coatings

Berger Marine Red Lead Primer

Berger Marine Antico Primer

Thinners

Jensolin T-1 Thinner

T-2 Thinner

T-3 Thinner

T-4 Thinner

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T-7 Thinner

T-8 Thinner

Table-3: Major marine products of BPBL

5.0 strategies of BPBL

In the arena of competitive business, organizations are surviving on strategy, which play very

vital role to achieve the organization goal. Product policy is one of the major strategies for

stay in the market with brand locality. Especially in paint products, the role of marketing is

very important to satisfy the customers through quality of product, new flavor, better

packaging, competitive pricing and product availability.

Target Market Strategies:

There are several different target-market strategies that may be followed. Targeting strategies

usually can be categorized as one of the following:

Single-segment strategy - also known as a concentrated strategy. One market segment

(not the entire market) is served with one marketing mix. A single-segment approach

often is the strategy of choice for smaller companies with limited resources.

Selective specialization- this is a multiple-segment strategy, also known as a

differentiated strategy. Different marketing mixes are offered to different segments.

The product itself may or may not be different - in many cases only the promotional

message or distribution channels vary.

Product specialization- the firm specializes in a particular product and tailors it to

different market segments.

Market specialization- the firm specializes in serving a particular market segment

and offers that segment an array of different products.

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Full market coverage - the firm attempts to serve the entire market. This coverage

can be achieved by means of either a mass market strategy in which a single

undifferentiated marketing mix is offered to the entire market, or by a differentiated

strategy in which a separate marketing mix is offered to each segment.

5 C strategies analysis

A useful framework for performing a situation analysis is the 5 C Analysis. The 5C analysis

is an environmental scan on five key areas especially applicable to marketing decisions. It

covers the internal, the micro-environmental, and the macro-environmental situation. The 5 C

analysis is an extension of the 3 C analysis (company, customers, and competitors), to which

some marketers added the 4th C of collaborators. The further addition of a macro-

environmental analysis (climate) results in a 5 C analysis, some aspects of which are outlined

below.

Company:

Product line

Image in the market

Technology and experience

Culture

Goals

Collaborators

Distributors

Suppliers

Alliances

Customers

Market size and growth

Market segments

Benefits that consumer is seeking, tangible and intangible.

Motivation behind purchase; value drivers, benefits vs. costs

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Decision maker or decision-making unit

Retail channel - where does the consumer actually purchase the

product?

Consumer information sources - where does the customer obtain

information about the product?

Buying process; e.g. impulse or careful comparison

Frequency of purchase, seasonal factors

Quantity purchased at a time

Trends - how consumer needs and preferences change over time

Competitors:

Actual or potential

Direct or indirect

Products

Positioning

Market shares

Strengths and weaknesses of competitors

Climate (or context):

The climate or macro-environmental factors are:

Political & regulatory environment - governmental policies and

regulations that affect the market

Economic environment - business cycle, inflation rate, interest rates,

and other macroeconomic issues

Social/Cultural environment - society's trends and fashions

Technological environment - new knowledge that makes possible new

ways of satisfying needs; the impact of technology on the demand for

existing products.

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6.0 lessons I learn from BPBL

Expectation of paint traders from the companies:

Available products and colors

Timely delivery

Provide urgent delivery

Flexibilities in sales systems

Reduce rigid sales target

Optimum profit margin

Information center

Provide more training for the painters

More credit amount

More Credit time limit

Take return of waste product

Provide constant commission for all dealers

Arrange amusement program

Reward for well decorated products

Conduct door to door visit

Provide acquired commission after every month

Problems:

In paints market, there are some problems which hinder the sales-

Instable political situation.

Action taken by Govt. (Many Shops smashed in last two months)

Key Dealers reduced their purchase due to afraid of tax.

Apartment business and construction of house is about to stopped.

Dealers have to purchase products in cash but they have to sale in credit.

Credit collection of dealers from their customers is very slow.

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Market Share

Market share studies determine the proportion of total sales received by a company and its

competitors. A term used frequently in business as a performance measure, market share is

the proportion of total sales of a product during a stated person in a specific market that is

captured by a single firm. Market share can refer to entire industries, segment of industries, or

particular geographic areas and can also apply to past, present, or future periods.

In this research I find out the market share in 3 categories- entire industries, segment of

geographic areas, and segment of products. I have conducted this research on major

decorative paints.

Market share 2010

The following table shows the market share of Decorative Paint in Dhaka city for the year

2010-

Companies Value Sales (%)

Berger 58.55

Asian 14.65

Roxy 5.98

Pailac 3.48

Elite 7.93

Aqua 1.33

Romana 4.37

Uzala 0.80

Alkarim 1.33

Others 1.57

Total 100

Table-Market Share 2010

In 2010, Berger Paints held 58.55% of market share in Dhaka city whereas the second largest

market share was occupied by Asian Paint with 14.65%. Elite Paint possessed the third

largest market share 7.93% where Roxy Paint held the fourth position with 5.98% market

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share. Romana and Pailac possessed consecutively 4.37% and 3.48% of the market share.

Other paints like Polac, Dunkun, Paramax, Bengal Agency, Nazrul Brothers Paint, Imperial,

Navana etc. held 1.57% of the paint market share.

Outcomes:

Berger Paints possessed the leading position in paints market.

Asian Paint possessed the second position.

Elite Paint held third highest market share.

Roxy Paint acquired fourth position of the paints market.

Romana held the fifth place in the market.

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7.0 recommendations

The following recommendations can be draw for the further development of the Berger Paints

Bangladesh -

Berger Paints should always provide emphasis on customer demand. It should always

satisfy the dealers demand and arrange product availability.

It should always pay heed to the dealers’ growth rate, take initiatives to recover gap

and always monitor their activities.

Berger Paints should restructure its sales system. It can restructure through employing

more SOs, day to day sales and delivery system, enrich end-user activists activities,

frequent market visit, better communication with distribution.

Its general sales procedures like taking order, preparing invoice, categorization of

invoice, preparing rout plan, lining products for loading, final check and loading of

vehicles should be automated.

It should also organize distribution system through increase space for store systematic

way, frequently update its database systems which shows products, pack size and

color availabilities and increase the number of delivery van.

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8.0 conclusions

The paint market is very much competitive although Berger paint holds the major market

share. But the growth rates of the competitors are great challenges for Berger. It’s true that

Berger paints is very prominent in the market because of its high quality products, better

customer response, variety of products, competitive price rate etc. The first choice of

consumers is BERGER because they can rely on it and its long lasting capabilities. It’s also

able to provide the consumers option of choosing variety of colors; 5000 shades within 5

minutes through its color bank.

Berger Paints is very much restricts in credit policy. It provides credit only some selected

dealers where as other competitors are very much liberal in credit. Paints traders; wholesalers

or retailers, are naturally very much found of huge credit. Thus the key competitors gradually

grow up in the market through their vast credit policy.

With world class range and durability, Berger is always ready to answer to all weather

conditions and try to satisfy every corner of the country.

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9.0 references

www.bergerbd.com

International Business Environment & Operations (12th

Edition)

Annual Report of Berger paint 2010