Jewel Berger Final - Copy

7/30/2019 Jewel Berger Final - Copy

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Chapter: 1

Introduction

The Company was incorporated on 6 June 1973 as a Private co. limited by shares

registered under the Companies act. Subsequently the co. converted to Public co. limited

by shares vide extra Ordinary General Meeting held on 21 June 2005 and is listed both in

Dhaka and Chittagong Stock Exchanges of Bangladesh. My internship at Berger paints

Bangladesh Limited started on September 25th, 2011 and it ended on December, 2011.

During these 3 months I was assigned at Mohakali sales office. My sole responsibility

was to explore the market share and to know the innate thought of customer to retain or

attract the new customers. This practical orientation is necessary for the development and preparation of a person in the job world. The things that I have learned at BPBL:

Meaning of responsibility.

Necessity of commitment.

Punctuality and regularity is very important.

Ability to interact with different corporate people.

1.1 Origin of the Study:

This report has been prepared as a part of the internship program which is an integral partof the MBA program under the Dept. of Marketing in the Faculty of Business Studies,University of Dhaka. The organization attachment was started on September 25th, 2012and ended on December 25 th 2011. This report on A market research on exploringBerger Paints Bangladesh ltd. in the paint industry of Bangladesh at Jatrabari and

Narayangonj area was assigned by academic supervisor Dr. Md. Abul kalam Azad,Associate Professor of Dept of Marketing, Faculty of Business Studies, University of Dhaka.

1.2 Purpose of the Study:

The purpose of the study is to make an analysis of market condition and share of Berger Paints in terms of the Paints Industry. This study attempted to understand the marketconditions of Berger paints and relationship with customers, painters and dealers. The

purpose is also to understand the corporate environment of Berger paints Bangladesh ltd.

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and how they handle customers, painters and dealers. It is also the purpose of theresearcher to help the management by providing information and idea to take appropriatedecisions about the customer, painter and dealer in future.

1.3 Scope of the Study:

The scope of this study was strictly confined to the annual report & personal contact withthe employees of Berger Paints Bangladesh ltd. To collect the information I worked inthe Dhaka sales office of BPBL and field visit at Narayangonj. All other data related tothe company was collected from web sites of BPBL & other related co.

1.4 Methodology of the Study:

For smooth and accurate study every one have to follow some rules & regulation. The

study impute were collected from two sources:

(a) Primary sources(i) Practical desk work (ii) Face to face conversation with the officer (iii) Direct observations(iv) Face to face conversation with the client

(b) Secondary sources(i) Annual report of BPBL

(ii)Files & Folders(iii) Daily diary (containing my activities of practical orientation in BPBL)

maintained by me,(iv) Various publications on BPBL,(v) Website

1.5 Research Objectives

1.5.1 Broad objective:To assess and find out the market conditions of the firm to analysis how much the co. iscapable of doing business properly in future and to explore the potentiality of Berger inthe Paint industry especially in Narayangonj and Jatrabari.

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1.5.2 Specific objective:

Whether the customer are loyal to buy Berger Color Bank product. Whether Berger can build the relationship with the target customer and the

dealer through their products. Whether Berger can build the relationship with the target customer and the

specific through their products. Whether Berger can build the relationship with the target customer and the

painters through their products. Find out the source of information. Find out the customer satisfaction level in consideration to the product quality. Find out the customer satisfaction level in consideration to the service of Berger

Color Bank and in comparison of the competitors in the market. Whether Berger can create awareness in the consumer mind better than the

competitors. Above all whats the potentiality of Berger in the market.

1.6 Contact methods:

To collect data for the report I use two types of contact method. I use personal or face toface contact method. As I did my interne there so I had the full opportunity to contactwith the authority of Berger that made everything easier to me.

1.7 Limitations of the study:

There were some restrictions to have access to the information confidential byconcern authority.Time and cost constraints also other limitations regarding this analysis.

Lack of experience of the researcher. Analysis was based mainly on personal survey I did in the field.

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Chapter 2

Background of the Company

2.1.1 Berger Paints Bangladesh Ltd: An Overview

Berger, the market leader in the Bangladesh paints market, is one of the oldest names inthe global paint industry. The company is operating in the paint industry for almost twocenturies. It has its origin in the year of 1760 and from then on the company is operatingwith strong adherence to quality and social responsibility. Initially, Lewis Berger, a

German national, founded dye & pigment making business in England. Lewis Berger &Sons Limited grew rapidly with a strong reputation for innovation and entrepreneurshipculminating in perfecting the process of making Prussian blue, a deep blue dye, a color widely used for many European armies' uniform. Production of dyes & pigments evolvedinto production of paints & coatings, which till today, remains the core business of Berger.

Berger grew rapidly by establishing branches all over the world and through mergingwith other leading paint & coating companies. Today,

Berger is one of the leading companies in the global paint industry Berger offers all kinds of painting solutions in decorative, industrial or marine

segment for both decorative and protective purpose

Berger Paints started its sailing into the sea of Bangladesh from pre-liberation era, to be precise in 1950. The main business flourished in the post liberation phase.

2.1.2 Berger Paints Bangladesh Ltd: At a Glance

Own Corporate Office located in Dhaka Two Factories at Dhaka and Chittagong Seven strategically located Sales Offices throughout the whole country. The

locations of the Sales Offices are shown in a map attached in the annexure A wide distribution channel reaches the whole country with a network of almost

1000 dealers

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2.1.3 Vision and Mission of the company

The vision and mission of Berger Paints Bangladesh Ltd. (BPBL) is very transparent andtangible. Berger emphasize highly on the ethical commitment to produce benchmark quality product. The vision and mission statement of the company is:

2.1.3.1 Vision

We shall remain as the benchmark in the Paint industry by: Being an innovative andtechnology driven Company consistently delivering world-class products ensuring bestconsumer satisfaction through continuous value added services provided by highly

professional and committed team.

2.1.3.2 Mission

We shall increase our turnover by 100% in the next five years. We shall remain sociallycommitted ethical Company.

2.1.4 Area of Operation

Berger Paints operates in three broad segments of the paint industry.

Decorative Paint

The objective is to beautify the surfaces with protection from corrosion and erosion

This business category mainly targets household segment Products are being offered to the consumers through a dealer network Products fulfill the aesthetic value of the consumer Major revenue earning business area of BPBL

Industrial

Tailor made products to cater to the specific needs of customers Products give protection to the surfaces in extreme situations like severe

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Managing Director

Director Finance Director Operations Director Marketing

GM Marketing

Mkt. manager

GM Planning & Materials

Production Manager

Operations- Chittagong

Operations- Dhaka

Systems Manager Head of Trade Marketing

Sales Promotion Manager

Trade Dev. Manager

Logistics Officer

Supply Chain Manager

Regional Manager

Area Manager

Technical Service Manager

Financial Controller

Internal Auditor

Chief Accountant

Mgt. Accountant

Mgt. servicesManager

Hazardous environment, high temperature, movement of heavy materials and machinery etc.

Direct marketing approach is being used to promote the Industrial Coatings Main customer groups: Garments Factories, Chemical Plants, Fertilizer

Manufacturing Plants, Consumer Durable Manufacturing Plants etc.Marine

Products are being offered mainly through direct marketing approach. Dock Yards, Bangladesh Navy, Passenger Ships are the main user groups. Market is mostly concentrated in Dhaka and Chittagong.

2.1.5 Manpower Structure

It is consisted of more than 300 employees of whom about 160 are general workers andthe rest are White Collar employees. These employees are working in different factoriesand depots of the company.

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2.1.6 The company profile

1. Origin : United Kingdom2. Registered Office : 43/3, Chatteswari Road

Chittagong 4000, Bangladesh.

Email: [email protected]: http//www.bergerbd.com

3. Corporate Headquarter : Berger House

Plot 8, Road No.-2Uttara Sector 3, Uttara Model TownEmail: [email protected]

Web: http//www.bergerbd.com4. Factory : Dhaka Factory - Nabinagar,

Chittagong Factory 27 D, FIDC RoadKalurghat, Chittagong

5. Plant : Powder coating plant Nabinagar, Savar

: Emulsion plant - Nabinagar, Savar,6. Home dcor : Bonani, Dhaka

: Email: [email protected]. Sales office : Dhaka 3/3-D Bijoynagar Kakrail

Chittagong - 43/3, Chatteswari roadSylhet H # 32, Block A, Shahjalal Upashahar Khulna 2 KDA Approach Road, Sonadanga.Bogra 31, Piari Sanker, Katnar ParaComilla 576, Laksham roadRajshahi - 1458, Ramchandrapur Ghoramara,Boalia

8. Subsidiary Company : Jenson & Nicholson (Bangladesh) Limited

: 70, East Nasirabad I/A: Baizid Bostami Road.

9. Date of Incorporation : 6th July, 197310. Commercial Production : 1973

11. Business Line :Manufacturing and Marketing of High QualityPaints

12. Nature of Business Activities :

The principal activities of the companythroughout the year continued to bemanufacturing and marketing of liquid and non-

liquid paints & varnishes and coating.13. Status : Public Limited Company

(Enlisted in both Dhaka and Chittagong Stock Exchange)

14. Position in the Industry : 1st

15. Percentage of Market Share : 51%16. Special Achievement : ISO 9001: 2000

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mailto:[email protected]:d%C3%[email protected]:d%C3%[email protected]:[email protected]


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2.1.7 Focus of BPBL

Berger Paints Bangladesh Limited focuses on the following things:

Commitment to achieve total customer satisfaction.

Commitment to project the company as an ethical and socially responsible one.

Commitment to continue as the market leader through consistent sales growth, increasing productivity and developing new

products befitting customer needs.

Ensuring continuous improvement in operationsthrough utilization of highly professionals and dedicated team, proper

process management and participation of the stakeholders.

Setting measurable targets at appropriate stagesand continuously monitoring them.

2.1.8 Market Share Analysis

At present Bangladesh paints industry has many companies who have significant marketshare. Berger Paints Bangladesh Ltd. is operating as the market leader and enjoyingalmost 45% of national paint market share. The nearest competitor is Sagar Chemical andPaint Industry Ltd. who resides far below the market leader in aspect of market share.

The following Table shows the present market share of different companies in paintindustry of Bangladesh:

Companies Market ShareBPBL 44.7%

Sagar Chemical and PaintInd. ltd

13.6%

Elite 6.8%Asian 4.2%Pailac 5.9%

Roxy 4.8%

Moon Star Paint Chemical Ind. 3.7%

Others 16.3%

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Total 100%

Market Share of Different Companies

The Table shows that Sagar Chemical and Paint Industry Ltd, who are mostly known aRomana Paints manufacturer, enjoying a market share of 13.6% and Elite Paints marketshare is 6.8%. A very mentionable point about the national market share of differentcompanies is, recently the market share of the local companies are declining whereas themarket share of Berger Paints Bangladesh Ltd. is increasing. Added here, very recentlygiant India based multinational paint company Asian Paints has entered into thismarket under joint venture investment with Confidence cement Inc Ltd. Another localcompany Aqua has launched recently. Asian Paints market share in 2011 was 4.2%.Though the share is not very high but being new entrant their growth is significant. Themarket shares of the major paint category are given below:

2.1.8.1 Gloss Coatings Market share

Gloss coating category paints are solvent based paints. This is the major segment of thetotal paint industry. It contributes almost 42% of the total decorative paint. Here also themajor player is the market leader of the paint industry Berger Paints Bangladesh Ltd.The market scenario of the gloss coatings is:

Company

Market Share

2011

(Jan-Dec)

2011

(Jan-Dec)Variance %

Berger Paints Bangladesh Limited 23.9 25.0 1.1

Sagar Chemical & Paint Industries Ltd 15.4 14.8 -0.6

Elite Paint & Chemical Ind. Limited 6.2 7.0 0.8

Asian Paints 0.8 2.7 1.9

Market Share of Gloss Coatings

The Table shows that BPBL is holding almost 25% gloss coating market share. Thenearest contributor of BPBL is Sagar Chemical and Paint Industry Ltd. Their marketshare is 14.8%. But their market share has declined from 2011. All other major player areenjoying higher market share than 2011.

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2.1.8.2 Interior Emulsion Market share

The market scenario of the Interior Emulsion in 2011 is very contrasting. The marketleader Berger Paints Bangladesh Ltd. is holding almost 60% of the total interior emulsionmarket. But BPBL lost 1.2% market share in comparison to 2011. The following Tableshows the share of the interior emulsion by major companies:

Company

Market Share

2011

(Jan-Dec)

2011

(Jan-Dc)

Variance

%

Berger Paints Bangladesh Limited 61.5 60.3 -1.2

Sagar Chemical & Paint Industries 8.9 12.1 3.2

Elite Paint & Chemical Ind. Limited 8.9 7.9 -1.0


Market Share of Interior Emulsion

The nearest market share holder of the BPBL is Sagar Chemical & Paint Industry Ltd.Their brand Romana is enjoying higher market share than 2003. In 2004 their marketshare is 12.1% and the growth is 3.2%.

2.1.8.3 Exterior Emulsion Market share

The exterior emulsion market is similar to the interior emulsion market. In this segmentof Paint the market leader BPBL is occupying almost 82% of the total market share. Thefollowing table shows the market share of 2004.

CompanyMarket Share

2011

(Jan-Dec)

2011

(Jan-Dec)

Variance

%

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-


Market Share of Exterior Emulsion

The Table shows that BPBL is enjoying 7.1% positive growth from 2011 to 2011whereas Elite Paint lost 10.7% of their market share. The domination of BPBL in thissegment is very obvious.

2.1.8.4 Distemper Market share

The Distemper market is reasonably more settled than other. Here no particular companyis enjoying half of the market share. The market leader BPBL is enjoying almost 43%market share.

Company

Market Share

2011

(Jan-Dec)

2011

(Jan-Dec)

Variance

%

Berger Paints Bangladesh Limited 39.3 42.9 3.6

Sagar Chemical & Paint Industries 14.2 12.0 -2.2

Elite Paint & Chemical Ind. 7.8 7.8 0.0


Market Share of Distemper

The Table shows that the multi national companies are enjoying growth of the marketshare. The local companies are rather loosing their existing market share. Both Berger and Asian are enjoying almost 3.5%growth than the previous year.

2.1.8.5 Cement Coatings Market share

The market share of the cement coating is also dominated by the market leader. Berger isenjoying 63% of the total cement coating market share. The nearest market share holder

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is Snowcem Bangladesh Ltd. Their present market share is 16.1%. The following Table is portraying the scenario of the cement coatings of Bangladesh:

Company Market Share

2010(Jan-Dec)

2011(Jan-Dec)

Variance%

Berger Paints Bangladesh Limited 61.9 63.0 1.1Snowcem Bangladesh Ltd. 16.5 16.1 -0.4Sagar Chemical & Paint Industries 13.2 12.3 -0.9Pailac Paint & Chemical Co.(PVT) Ltd.

3.2 3.1 -0.1


2.1.9 Distribution Coverage Analysis MajorCompanies

The distribution reach of the company is set basically on the three broad categories:Urban, Semi Urban and Rural. The distribution reach is determined without considering.In all the three categories Berger the market leader still is maintaining more than 50%distribution coverage. The standing of the major companies on the basis of thedistribution reach is given below:

CompanyDistribution Reach %

Urban Semi Urban Rural Nat ional

Berger Paints Bangladesh Limited 65.9 62.4 54.9 63.2

Sagar Chemica l & Paint Industries 56.3 61.8 56.0 57.2

Roxy Paints Limited 39.6 40.0 32.1 38.3

Pailac Paint & Chemical Company (PVT) 33.2 35.2 37.0 34.2

Elite Paint & Chemical Industries Limited 37.4 28.5 15.2 31.6

2.2.1 Preparing Marketing Mix

Market Segmentation

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For segmenting total paint market, Berger uses more than one basis. Initially, total business of the Co. is segmented on the basis of customer types. Berger segments totalmarket as Decorative, Industrial & Marine. Then, Decorative group is further segmentedon the basis of surface types- wooden, metal & concrete. Again, sub-class of the total

paint market is sliced on the basis of Internal & External surface category. At the laststep, price segmentation is used to create a number of small niches Premium, Regular &Economy- in the market.

Product

Berger is committed to offer quality products that satisfy consumers ultimate desiresfrom paints with the help of state-ofart technology. Berger always believes in one stepahead in offering new product to create more value for customers money. Berger outsmarts other competitors of the market through its one step ahead policy andinnovative market offers. Berger is trying to fill up all holes of the market throughoffering a wide range of products to meet the needs (Premium to Economy Paints) of different types of users and to solve the different types of functional requirements

(Industrial, Decorative & Marine). Berger Bangladesh offers approximately 600 SKUincluding variations within basic product groups. Due to shift in market growth trendsBerger is trying to establish itself in the economy segment of the paint market

Price

Generally Berger follows cost based pricing method. After calculation of the totalmanufacturing cost (Direct & Indirect RM cost, Direct & Indirect Labor cost andManufacturing overhead cost) and adds 20% GP to get the price point of the product. Butthis is not the rule of thumb in pricing the Berger products. Competitor based pricing

policy is also followed as well because of the increased competition in the paint market.

Place/Distribution

Berger follows the direct distribution policy to make the paints available in the market.Berger distributes paints through its own sales force. Distribution activities of Berger inall over Bangladesh are covered by 7 (Seven) strategic depots. One level, mainly, andtwo level-channel, to some cases, are used by the Berger Paints for Decorative products.Zero level channels, personal selling, are also used for grasping the project offers.

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SALES DEPOTOF BERGER DEALERS CUSTOMERS

DEALERS


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Figure 5: Channel level

In one level channel, Bergers sales force delivers paints to the dealers from whereultimate users purchase paints. In the two-level channel, some major dealers dominate the

paint market in the region where they are located. Small dealers collect paints from thelarge-scale dealers. Ultimate users buy paints from these small dealers.

2.2.2 Promotion/Communication Mix

Electronic media: Paints of Berger are promoted in the market through electronic media mainly in BTV andCable Channels. Through these ads not only the overall Berger products are offered butalso the individual brands are promoted. Through radio Berger is trying to reach those

potential targets that are not easily reachable by the BTV or Satellite.

Print Media: During daytime mostly in the office market potentials have little opportunity to gothrough the electronic media. Rather, they are used to go through the newspapers,magazines and other periodical publications. So Berger has taken the initiatives to attract

peoples attention through print media to some extent. Moreover, brochures, shade cards

and other paint related information in printed form are delivered to the dealers, potentialcustomers, painters and other targeted potentials to make them interested /more interestedtoward Berger products.

Billboard: Berger efforts also move to grasp the potentials attention and to increase the frequencyof exposure toward Berger products while they are on the way to their destinations.

2.2.3 Sales Promotion

Berger offers different types of incentives for consumers and traders of the paint market.Trade promotion occurs more frequently than consumer promotion. Because, success inthis market highly depend on the traders involved channeling the paints from producersto consumers. Traders are highly influential in the market because of long purchase cycle

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time (app. 3 years) of paints, technical aspects of the paints & etc. Shop boys are alsoincluded within the discursion of traders. Moreover, painters, end user of paint, playimportant roles in purchase decision of the paint. So, Berger offers incentive to create afavorable attitude towards the paints of Berger.

2.2.4 Color Bank at a Glance

Berger Color Bank introduces the global way to paint with an unlimited choice of shadesto match customers taste-instantly. Color Bank is a new venture of Berger Paints started

by Mr. R. R. Khan, Dcor manager of Berger Paints Home Dcor, in 1997. The basicconcept behind launching Color Bank was to reduce SKUs and provide a variety of shades. Berger Color Bank can provide any shade, from a dark color to light colors in just5 minutes.Berger Color Bank uses superior imported colorants and the world renowned tintingtechnology of Italtinto, Italy. Berger Color Bank has unique Tintovision software whichallows customers to see infinite color combinations on the screen of the computer.Products of Color Bank includes:

Robbialac Plastic Emulsion Classic Robbialac SPD Super Weather Coat Smooth Classic Robbialac Synthetic Enamel Gold Luxury Silk Splendor Robbialac Easy Clean Robbialac Pearl Lustre Finish Woodkeeper Finesse

Chapter: 3

SWOT Analysis

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A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified asstrengths ( S) or weaknesses ( W ), and those external to the firm can be classified asopportunities ( O ) or threats ( T ). Such an analysis of the strategic environment is referredto as a SWOT analysis .

The SWOT analysis provides information that is helpful in matching the firm's resourcesand capabilities to the competitive environment in which it operates. As such, it isinstrumental in strategy formulation and selection. The following diagram shows how aSWOT analysis fits into an environmental scan:

SWOT analysis framework

Environmental Scan/ \

Internal Analysis External Analysis/ \ / \

Strengths Weaknesses Opportunities Threats|

SWOT Matrix

Strengths

BPBLs strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include:

Strong brand names Good reputation among customers Cost advantages from proprietary know-how Exclusive access to high grade natural resources Favorable access to distribution networks

Weaknesses

The absence of certain strengths may be viewed as a weakness. For example, each of thefollowing may be considered weaknesses:

High cost structure Lack of access to the best natural resources

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Lack of access to key distribution channels High cost for importing raw materials

In some cases, a weakness may be the flip side of strength. Take the case in which a firmhas a large amount of manufacturing capacity. While this capacity may be considered astrength that competitors do not share, it also may be a considered a weakness if the largeinvestment in manufacturing capacity prevents the firm from reacting quickly to changesin the strategic environment.

Opportunities

The external environmental analysis may reveal certain new opportunities for profit andgrowth. Some examples of such opportunities include:

An unfulfilled customer need in some cases Arrival of new technologies Loosening of regulations Removal of international trade barriers A developing market such as the Internet. Mergers, joint ventures or strategic alliances. Moving into new market segments that offer improved profits. A new international market. A market vacated by an ineffective competitor

Threats

Changes in the external environmental also may present threats to the firm. Someexamples of such threats include:

Shifts in consumer tastes away from the firm's products Emergence of substitute products New regulations Increased trade barriers A new competitor in your home market. Price wars with competitors. A competitor has a new, innovative product or service. Competitors have superior access to channels of distribution. Taxation is introduced on your product or service.

The SWOT Matrix

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A firm should not necessarily pursue the more lucrative opportunities. Rather, it mayhave a better chance at developing a competitive advantage by identifying a fit betweenthe firm's strengths and upcoming opportunities. In some cases, the firm can overcome aweakness in order to prepare itself to pursue a compelling opportunity.

To develop strategies that take into account the SWOT profile, a matrix of these factorscan be constructed. The SWOT matrix (also known as a TOWS Matrix ) is shown below:

SWOT / TOWS Matrix

Strengths Weaknesses

Opportunities S-O strategies W-O strategies

Threats S-T strategies W-T strategies

S-O strategies pursue opportunities that are a good fit to the company's strengths. W-O strategies overcome weaknesses to pursue opportunities. S-T strategies identify ways that the firm can use its strengths to reduce its

vulnerability to external threats. W-T strategies establish a defensive plan to prevent the firm's weaknesses from

making it highly susceptible to external threats.

Chapter: 4 Market Analysis

4.1 Market Analysis

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Market analysis is oriented toward achieving specific objectives.

Step1- The first step is to explicitly define the analysis objectives.

Step2- The second step in analysis is to formulate specific questions and criteriaconsistent with the analysis objectives.

Step3- The third step an analysis is identifying the most effective and efficient tools of analysis.

Step4- The fourth step in analysis of Berger Paints Bangladesh Limited is interpreting theevidence.

4.2 Customer survey

In the period of my internship, I was assigned to articulate the information about thecustomers mind, choice, demand, satisfaction, preference etc. Customers are the mainattractions of company. In our survey I have come to understand about some componentsof the customers mind.I accumulated the following information:

4.2.1 Brand recall 4.2.2 Experience and reason to choose the brand 4.2.3 Most usage and effective brands4.2.4 Decision making 4.2.5 Painting problem4.2.6 Facility from dealers4.2.7 Color bank

4.2.1 Brand recall:

Normally customers are highly influenced by different companies. They arehabituated and familiar with the myriad promotional activities of differentcompanies. Among these competitions they can remember those brandswhich can make position in their mind. So this question helps us to see how

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many customers can recall Berger in instance. The following figurevisualizes the real scenery of the customers answer.

4.2.2 Experience and reason to choose the brand:

Customers can be new and old. The purpose of this report is to know the insight of rootlevel customers. Some of my respondents were experienced and some were new owner of

building who may start painting within 6 months. Almost al the customers includingexperienced and inexperienced preferred the quality whenever they judge the paint. A fewcustomers uttered that they are informed by the advertisement. Some fanciful customer

considers only brand image of the product. In this case, company need to build strongmedia publication.

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Table: Experience of painting

Yes No86.96 % 13.04 %

4.2.3 Most usage and effective brands :

Brand recall does not indicate that customer will buy those brands because the mental

map for paint industry is a little bit different than the other consumer product. Most of thecustomers rely on painter or relevant person to take decision. By the following figure it isclear that customers thought usually influenced by others. Someone vowed Berger asmost effective brand but they used other brands. This disparity of choose and usage showthe customers dependency about decision making.

Table: Depiction of most effective brand

Berger Asian Al karim Roxy Elite Pailac Romana74.64 13.04 0.72 1.45 7.25 0.72 2.18

4.2.4 Decision making:

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The following figure indicates that most of the paints customers consider quality rather than other options. Albeit many of customers emphasis mainly on price. But it is true thatcustomer prefer quality product like Berger. Only a few people showed that they givemore importance on price. Some customers usually take decision from their previousexperience. During my survey, a clear scenery came to my mind that experiencedcustomer are aware of paint industries. They keep minimum knowledge about paints. Onthe other hand some customers are influenced by relatives and tantalized by their surroundings. Only educated customers answered that they choice according to self

judgment.

4.2.5 Painting problem:

As paints are sold in container which needs further process, so it is assumable that painters and related person may face different problems.In my survey almost all respondents have painting experience, except a few. From totalrespondents 86.96 percents had previous experience and 13.04 percents didnt have anyexperience. In the following figure it is visualized that only 0.08 percents customersfaced inconsistency that have the experience of painting. And rest of the respondents

didnt face any problem. On the contrary 100 percents were agreed that normally paintsdont have any problems. Generally customers face following types of problems.

Mixing Reservation Durability Quality Availability

4.2.6 Facility from dealers:

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This question assists me to analyze the competitors market strategy and policy.Obviously BPBL is the market leader of the paints industry. So it is moreconcerned about the market share of other competitors. Other companies are attemptingto become tantamount as BPBL. To assail the precarious market environment BPBL isalways careful about competition.

In my experiment most of the customers uttered of no facility. Those shows 64.38 percents customers dont obtain any privilege from companies. 30.14 percents customersanswered that they usually get discount. Generally dealers dont provide discount for allcustomers except their loyal customers. The amount of discount is very little. This ismainly to retain the traditional customers. Some customers also get credit facility. Inorder to maintain sustainable and regular relationship with the clients dealer consider credit facility sometimes.

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4.2.7 Color bank:

Color bank system is a magic to get any color whatever comes in ones mind. By the helpof Tintovision software customer can choose different shades in computer monitor. Thereare more than 5000 shades available for customers. Customer can see the effect of that

particular shade through this technology. Color bank can provide a fresh container of color within five minutes. It can provide a clear furnishing looks of your walls. On the

basis of price and quality it regards as effective technology. As color bank is almost a newinnovation so still now it can not be installed on the customers mind. Because of theabysmal idea customers dont favor color bank. The following figure criticized that about

all the respondents are familiar with color bank except a few. The persons who have previous experience know more than the persons who dont have previous experience. Inmy expedition, 83.33% were familiar with color bank and rest of them was not familiar with it.Among them only 37.50% have the experience about color bank. And 62.50% dont haveexperience.

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4.3

4.3 Dealers survey:Dealers are the most sophisticated party in paint market. If company give less facilities tothe dealers, then there is chance to change their dealership to another competitor. Though,

price and customer preference are also important. The result of my survey on the dealersis depicted below:

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4.3.1 Preamble:

In the following section of the work, first of all I describe the different aspects of thedealers survey in general and how it is possible to interpret the dealers within thisframework. In a second part the aim of the paper is to explain in more details howrelationship is developed and what aims marketing managers should be aware of whenconducting with the dealers. Thirdly the diverse impacts of dealers on Customer Relationship Management (CRM) arediscussed. The latter includes a description of market situation as well as an analysis of the customer importance in the marketing management of today.

Dealers are free to keep more lucrative product in their store. Because, they can alsoinfluence the customers to purchase low priced product. In order to capture market share

some companies provide more flexible discount in invoice and others. So it is necessaryfor sales manager to tackle the competitive market.

4.3.2 Most availability of the products in dealer shop:

In my observation, it is depicted that 63.85 % dealers keep berger paints, 26.92 % dealerskeep Asian, 7.69 % keep pailac, 3.86% keep ujala, 3.85% keep elite, and 3.85% keepRAK.

Most dealers are bound to store demandable brand like Berger and Elite and sometimesAsian. In suburban areas customers are not conscious about paints so dealers caninfluence them easily. In this dealers can deal with comparatively low quality or minimum demandable product. On the contrary companies are also trying to attractdealers by dealership program.

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4.3.3 Availability:

This statistics depicts that most of the dealers deal with more than one product. Only afew deal with one brand. And they get benefit from the company.

Available Brands

Frequency Percent Valid PercentCumulative

Percent

Valid

1 5 19.2 19.2 19.2

2 3 11.5 11.5 30.8

3 8 30.8 30.8 61.5

4 9 34.6 34.6 96.2

7 1 3.8 3.8 100.0

Total 26 100.0 100.0

4.3.4 Reasons of most availability:

Price is crucial for any product. And in this point dealers like to store demandable product. Dealers cant go beyond the customers demand. The overall satisfactory leveldepends on the price among. As paints require huge investment so customers think before

purchase decision. The following table makes us understand that dealers keep which brands is depend on customers.

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Reasons Of Most Availability


Percent

ValidCustomer Demand 23 88.5 88.5 88.5

More Convenient 3 11.5 11.5 100.0

Total 26 100.0 100.0

4.3.5 Facility from company:

Among 26 respondents 9 are said that they are facilitated by Berger and 7 respondentstold about Asian. In most cases dealers can play role as a decision maker in buying

process. On the contest pailac is in the third position. Some companies are attempting tocapture market share by providing more facilities like pailac, RAK and Asian paints etc.

Preferable by customer: Almost 69 % respondents told that customers prefer Berger. And23 % told that customers prefer Asian. In my observation it is clear that the customerswho prefer other brands except Berger, Asian, and Elite are influenced by the dealers.

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Which attracts the dealers most


Percent

Valid

Credit 10 38.5 38.5 38.5

Smooth delivery 1 3.8 3.8 42.3Commission 14 53.8 53.8 96.2

Capability of product

1 3.8 3.8 100.0

Total 26 100.0 100.0

4.3.8 Facilities to the painters:

Facilities to the painters

Frequency PercentValid

PercentCumulative

Percent

Valid

Commission 15 57.7 75.0 75.0

Discount 1 3.8 5.0 80.0

Others 4 15.4 20.0 100.0

Total 20 76.9 100.0

Missing System 6 23.1Total 26 100.0

4.3.9 Source of customers:

According to the dealers responses most of the customers continue their buying process by own self. Here media has a little impact on buying. But advertising can create theimage on the customers mind. I talked with many customers and understand their mind.Following figure narrates that 73.08 % come to the store without reference. Thesecustomers may judge either quality or price. Painters can also refer some customers.

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4.3.10 Interaction with the painters:

I mentioned earlier that painters have a mentionable impact in the buying decision of customers. These types of costless relationship may support dramatically in sales. Dealers

provide only little discount and commission sometimes only refreshment to the painters.Except influence in buying decision painters can refer dealers shop to buy. In myobservation almost 85 % dealers maintain relation with the painters. And other 15 %dont maintain any relationship.

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4.3.11 pricing system of dealers:

Paint industry is highly competitive. Dealers also follow competitive strategy in pricesetting. 100% dealers show that they follow competitive pricing strategy.

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Pricing system

Frequency Percent Valid Percent Cumulative Percent

Valid Competitive 26 100.0 100.0 100.0

4.3.12 Consider to customers:

Due to the competition dealers can not make enough profit from paints alone. Theygenerate profit by selling supplementary product such pin, tarpin, gum etc. most oftenthey are forced to sell in purchase price. But it is true that they can not gain more than10% from the purchase price. Following figure shows that 50% dealers sell at purchase

price.

4.3.13 Profitable brand:

Profitable brand can be measured in different ways. Some companies provide more privilege to the dealers but their sales is low. On the other hand some companies provideless but their sales are high. In this equation profitability varies. The following figurestates that the profitable brand from the dealers view.

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Consider to customer

Frequency Percent Valid Percent Cumulative Percent

Valid

Full discount 13 50.0 52.0 52.0

80/20 2 7.7 8.0 60.0

90/10 10 38.5 40.0 100.0

Total 25 96.2 100.0

Missing System 1 3.8

Total 26 100.0


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4.3.14 Use of color bank:

Still now most of the dealers dont have color bank technology. They are not accustomedwith color bank. So this is strategic opportunity for BPBL to count them as new color

bank users. They can be diverted into BPBL dealers. Almost 54 % respondents dontutilize color bank.

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Use of color bank


Percent

Valid

Yes 12 46.2 46.2 46.2

No 14 53.8 53.8 100.0

Total 26 100.0 100.0

4.3.15 Help to make decision:

Dealers have significant influence on decision making process of customers. Becausemost of the customers are unaware about different brands. Actually they know aboutcolor but not about brands. For this reason they depend on dealers and painters. Byanalyzing this survey, I can come in a decision that all dealers help to make decision of

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buying. Although sometimes they mislead the customers to buy less quality products. Butcustomers prefer the quality most.

Help customer to make decision


Percent

Valid

Yes 24 92.3 92.3 92.3

No 2 7.7 7.7 100.0

Total 26 100.0 100.0

4.4 Painter survey:

4.4.1 Painters preference:

The following analysis is based on three components: market, actors and issues. Marketrepresents the demand side of the environment, for that reason the structure of this part is

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to first state the importance of the painters preferable brand in the actual paintmarketplace. Then the aim is to describe and illustrate various aspects to understand the

painters mind to use them as a workforce.

BPBL is the market leader in the paint industry. In accordance to the market share BPBLis in the first position. But in some cases, it is anxious that some fast growing competitorsare in adjacent to BPBL. In jatrabari area, 77 % painters like to use Berger. And 23 %

painters like Elite. Although Elite paint hasnt proper brand image But it holds the second position in jatrabari. Because, Low priced product, Painter influence, Quality productwith comparatively low cost.

PREFERABLE BRAND IN JATRABARI :

Preferable Brand

Frequency Percent Valid PercentCumulativePercent

Valid Berger paints 27 77.1 77.1 77.1

Elite paints 8 22.9 22.9 100.0

Total 35 100.0 100.0

On the other hand I observed different scenery in Narayongonj area. Here the growth of Asian paints is mentionable. Almost 50%, In N.gonj, Asian paint has gained a significantmarket share. Because,

Successful strategy Painter influence Dealer influence

Another mentionable point is RAK. Although it is new in market, but dramatically itinfluenced the market. Already it has convinced many of painters.

PREFERABLE BRAND IN NARAYONGONJ :

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Preferable Brand


Valid Asian paints 119 41.2 41.2 41.2

Berger paints 154 53.3 53.3 94.5RAK paints 15 5.2 5.2 99.7

Ujala paints 1 .3 .3 100.0

Total 289 100.0 100.0

Figure: Painters Preference in Jatrabari

Figure: Painters Preference in Narayongonj

4.4.2 Reasons to choose the brand:

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The central feature of this part is to know the brand acceptance in the market place. Thismeans having opt-in procedures instead of opt-out systems. Moreover this helps todemonstrate the seriousness of the company while launching any new market strategy.Most of the respondents answered about quality that they prefer.

Reasons to choose (Jatrabari)

Reason To Choose This Brand


Valid Quality 21 60.0 60.0 60.0

Brand image 1 2.9 2.9 62.9

Customer demand 11 31.4 31.4 94.3

Incentive from dealers 1 2.9 2.9 97.1

Incentive fromcompanies

1 2.9 2.9 100.0

Total 35 100.0 100.0

Reasons to choose (Narayngonj)

Reason To Choose This Brand


Valid Quality 21 60.0 60.0 60.0

Brand image 1 2.9 2.9 62.9

Customer demand 11 31.4 31.4 94.3

Incentive from dealers 1 2.9 2.9 97.1

Incentive fromcompanies

1 2.9 2.9 100.0

Total 35 100.0 100.0

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4.4.3 Benefits from dealers:

In the following section, definitions and classifications of the painters benefit conceptare presented to obtain a more comprehensive vision of this environment and framework.I also mention the impact on the relationship with painters. At last I bring up the

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ambivalence between the personal characteristics and the mass-communication featuresof paint industry.

Benefits from Dealers (Jatrabari) Benefits from Dealers (Narayangonj)

4.4.4 Types of benefits from dealers:

Dealers give various facilitiesThe first step to know the comparative market strategy.Collect confidential information is another important function about the competitors fromvarious sources. In jatrabari area, painters orated that usually they dont get facility fromthe dealers. But in Narayongonj, painters get enough facilities from the dealers.

Types of benefits from dealers (Jatrabari)

Types of Benefit


Valid Credit 2 5.7 28.6 28.6

Discount 1 2.9 14.3 42.9

Commission 4 11.4 57.1 100.0

Total 7 20.0 100.0

Missing System 28 80.0Total 35 100.0

Types of benefits from dealers (Narayangonj)

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Types of Benefit


Valid Discount 1 .3 .3 .3

Commission 110 38.1 38.3 38.7Others 176 60.9 61.3 100.0

Total 287 99.3 100.0Missing System 2 .7Total 289 100.0

4.4.5 Benefits from company:

In the following section, definitions and classifications of the painters benefit conceptare presented to obtain a more comprehensive vision of this environment and framework.I also mention the impact on the relationship with painters. At last I bring up theambivalence between the personal characteristics and the mass-communication featuresof paint industry.

Benefits from company (Jatrabari) Benefits from company(Narayangonj)

4.4.6 Types of benefits from company:

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The first step to know the comparative market strategy. Collect confidential informationis another important function about the competitors from various sources. In jatrabariarea, painters orated that usually they dont get facility from the dealers. But in

Narayongonj, painters get enough facilities from the dealers.

Types of benefits from company (Jatrabari)

Types pf Benefit


Valid Lunch and dinner 2 5.7 8.3 8.3

Gift 10 28.6 41.7 50.0

Scratch card 8 22.9 33.3 83.3

Lottary 2 5.7 8.3 91.7

Money 2 5.7 8.3 100.0

Total 24 68.6 100.0Missing System 11 31.4Total 35 100.0

Types of benefits from company (Narayangonj):

Types of Benefit


Valid Lunch and dinner 96 33.2 33.3 33.3

Gift 190 65.7 66.0 99.3

Incentives 2 .7 .7 100.0

Total 288 99.7 100.0Missing System 1 .3Total 289 100.0

4.4.7 Painters attraction:

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In most cases, painters get benefit from the company. Because painters have mentionableimpact in buying decision. This idea has been stated as a result of a qualitative research

based among others on interviews with experts. However, this survey helps to launch new business policy. According to the survey, it is clear that most of the painters can beconvinced by commission.

4.4.8 Training from company:

Most of the respondents answered that no company provide any training program tothem. So this is an opportunity to enter in their mind. In both areas significantrespondents told that they dont get any training program from company.

Training from company (Jatrabari)

Training from Company


Valid yes 5 14.3 14.3 14.3

no 30 85.7 85.7 100.0

Total 35 100.0 100.0

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Training from company (Narayangonj):

Training from Company


Valid yes 6 2.1 2.1 2.1

no 283 97.9 97.9 100.0

Total 289 100.0 100.0

4.4.9 Use of color bank:

Bergers one of the prime objectives is to provide best customer support-connectingconsumers to technology through specialized services like free technical advice onsurface preparation, color consultancy, special color schemes etc. To bolster customer satisfaction, Berger has recently launched Home Decor Service from which once can getan array of services pertaining to painting. By this question, BPBL can visualize themarket acceptance.

Jatrabari NarayongonjYes No Yes No

100% 00.00% 88.27% 1.73%

4.4.10 Reasons to prefer color bank:

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, TexturedCoatings, Heat Resistant Paints, Roofing Compound and Epoxies. In each of the productcategory, Berger has always been the pioneer and will continue to do so proudly. So thisstatement can help BPBL to launch new program.

JatrabariNarayangonj

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Chapter: 5

Findings and Recommendation

Berger Paints Color Bank has a huge demand in the market and the customers are verymuch satisfied with it. Berger Paints main motive is to increase the customerssatisfaction level, like if the customers are 100% satisfied then Berger would like toincrease the satisfaction level to 120%.

The researcher also included the different influencing parties that affect the level of customer satisfaction. It is of common understanding that if dealers are satisfied, thenthere will be a positive force in attempting to influence and satisfy customers. Such can

be said for the other influencing parties like the painters.

The operating performance of BPBL is good although its profitability parameters are indecreasing trend. Its sales revenue stood at tk.2872.4 million, tk.2221.12 million,tk.1737.63 million, tk.1465.26 million & tk.1307.67 million in the year 2006 to 2002respectively on an accepting limit.

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The gross profit margin of BPBL is around 32.85% in 2006 which is lower than previousfour years but it is acceptable due to increase of raw materials price & giving higher discount. BPBL total asset turnover stood at 2.20 times, 1.59 times, 1.47 times, 1.21times & 1.13 times in the year 2006 to 2002 shows an increasing trend of turnover.In our survey I have come to understand about some components of the customers mind.

I accumulated the following information:1. Brand recall 2. Experience and reason to choose the brand 3. Most usage and effective brands4. Decision making 5. Painting problem6. Facility from dealers7. Color bank

Most dealers are bound to store demandable brand like Berger and Elite and sometimesAsian. In suburban areas customers are not conscious about paints so dealers caninfluence them easily. In this dealers can deal with comparatively low quality or minimum demandable product. On the contrary companies are also trying to attractdealers by dealership program.In my observation, it is depicted that 63.85 % dealers keep berger paints, 26.92 % dealerskeep Asian, 7.69 % keep pailac, 3.86% keep ujala, 3.85% keep elite, and 3.85% keepRAK.According to the dealers responses most of the customers continue their buying process

by own self. Here media has a little impact on buying. But advertising can create the

image on the customers mind. I talked with many customers and understand their mind.Following figure narrates that 73.08 % come to the store without reference. Thesecustomers may judge either quality or price. Painters can also refer some customers.These types of costless relationship may support dramatically in sales. Dealers provideonly little discount and commission sometimes only refreshment to the painters. Exceptinfluence in buying decision painters can refer dealers shop to buy. In my observationalmost 85 % dealers maintain relation with the painters. And other 15 % dont maintainany relationship.

ConclusionBerger Paints Bangladesh Limited claims that they control 65% of local paint market

because with its strong distribution network, Berger ha reached almost every corner of Bangladesh. The nationwide dealer network, supported by seven sales depotsstrategically located at Dhaka, Chittagong, Khulna, Bogra, Rajshahi, Comilla and Sylethas enabled them to strategically cater to all parts of the country. Berger also provides

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customer support connecting customers to technology through specialized Home Decor service giving free technical advice on surface preparation, color consultancy, specialcolor schemes etc. To bolster customer satisfaction, Berger launched Illusion-the firstdesigner paint solution.

By analyzing it can be said with certainty that if Berger can maintain the quality of paintsand coatings, it will be able to preserve the position of marker leader. The near competitor of Berger is far away from it. Berger is showing an upward trend in everyaspect of financial statements. Moreover, Berger has a little amount of bank borrowingwhich gives its investors the great dependability upon the company.

Bergers profit after tax has a clear indication of its financial viability. Berger is alsocontributing a lot in the national economy by paying a huge value added tax (VAT).Berger Paints Bangladesh Limited won the ICAB national Award as best published

Accounts and reports in the manufacturing category in the year 2005 and 2006. With thesupport of the countrys eminent artists and the enthusiastic participation of youngneophytes, Berger gives Berger Young Painters Competition Award.

Bibliography Journals

1. Anderson, R.E, 1973, "Consumer dissatisfaction: the effect of disconfirmedexpectancy on perceived product performance", Journal of Marketing Research , 10,38-44.

2. Boulding, W, Kalra, A.,, Staelin, R., Zeithaml, V.A., 1993, "A dynamic processmodel of service quality: from expectations to behavioural intentions", Journal of

Marketing Research , 30, 7-27.

3. Cardozo, R.N, 1965, "An experimental study of consumer effort, expectation andsatisfaction", Journal of Marketing Research , 2, 244-9.

4. Tse, D.K, Wilton, P.C, 1988, "Models of consumer satisfaction: an extension", Journal of Marketing Research , 25, 204-12.

Books

1. Kotler, Philip, Armstrong Gary (2011-2011), Principle of Marketing, 12 th Edition ,Pearson, Prentice Hall

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2. Malhotra, Naresh, K (2008), Marketing Research & Applied Orientation, 5 th

Edition, Prentice Hall-India

3.

Website

1. Berger Paints Bangladesh Limited, An overview: URLhttp://www.bergerbd/products/colorbank.html 2. http://www.google.com

3. " The Questionnaire Design Process," http://profitmatters.ca/Articales/Questionnaire%20Design.pdf

Documents

Jewel Berger Final - Copy