SAIKANnerolac Project - Copy

A Project Report ON

“Comparative study Of Indian Paints Industry” FOR

Kansai Nerolac Paints Ltd. & Other Paints

Under the Guidance of Mrs. Rachana Singh

(Faculty Member Of Cimt lucknow

Submitted To- Submitted By-

Dharmendra kumar singh M.B.A (2009-10)

Central institute management and technology lucknow

Executive Summary

This project aims to study the distribution channels, sales

network and service patterns of the paint sector through an

analytical and comparative study of two leading companies-

Nerolac Paints India Ltd. (NPIL) and Asian Paints Ltd.

(APIL). The project also tries to bring out the shortcomings,

if any, in the present system and thus recommends

suggestions to improve the same. The project also gives

insights into the various financial terms, norms of the sales

and service departments as per the guidelines of the paint

industry.

The project was designed after detailed discussion with the

company officials on three parameters i.e. distribution

network, service network and sales functioning. The project

also includes the insights given by the dealers and officials

of the company. “The sample size of 6 for channel members

and that for the sales people was 2, for each company”.

Firstly, the project discusses the distribution network of the

two companies and the functions carried out by the channel

members. Asian Paints being the largest paint manufacturer


In India, definitely have a wider reach and more number of

dealers than Nerolac.

The project also covers the financial terms of the company

with the dealers and that of the dealers with the customers.

Secondly, the project discusses the sales functioning of the

two companies, which includes aspects such as the

hierarchy of the sales department prevalent in the company;

the responsibilities and functions of the sales force, their

performance appraisal structure etc.

Finally the project covers the service network of the two

companies which deals with the after sale services and their

effectiveness provided by both the companies and various

complaints and queries are handled by them


TABLE OF CONTENTS

PARTICULARS PAGE NO.

1. Executive Summary

2. Acknowledgement

3. Methodology

4. Indian Paint Market

5. Company Background(Nerolac

PAINTS)

6. Distribution network

7. Product of Nerolac

8. Company Background((Asian

Paint)

9. Distribution network

10. Selection Of Dealers

11. Analysis

12. Annexure


METHODOLOGY

The objective of this project on sales and distribution is to

do an analytical and comparative study of the sales, service

and distribution function of two players from the chosen

business sector.

The business sector chosen for this purpose is the fast

growing paint sector, and the players chosen for study from

this sector are:

NEROLAC INDIA LIMITED

ASIAN PAINTS LIMITED

INFORMATION SOURCES


PRIMARY DATA SOURCES-

NEROLAC INDIA LIMITED- Head, Corporate Sales

NEROLAC AUTHORISED DEALERS

ASIAN PAINTS LIMITED – Area Sales Manager

ASIAN PAINTS AUTHORISED DEALERS

SECONDARY DATA SOURCES-

THE INTERNET

www.nerolac.com

www.asianpaints.com

www.google.com

http://www.indiacom.com/yellowpage/category-

gyan/articles/paints/Paints-Introduction.asp?category=paints

DATA COLLECTION TOOLS


http://www.indiacom.com/yellowpage/category-%20%20%20%20%20%20%20%20%20%20%20gyan/articles/paints/Paints-Introduction.asp?category=paints



http://www.google.com/

Interviews & Discussions with the company officials, dealers

and

Sales people. Questionnaires were used to record data.

SAMPLE SIZE USED

The sample size for the dealers was 12 in number while the

sample size for sales people was four.

Asian paints (dealers) - 6

Asian paints (sales people) – 2

Nerolac India (dealers) – 6

Nerolac India (sales people) – 2

LIMITATIONS:

It was difficult to ask for time required for a detailed

discussion on the questionnaire & therefore several aspects

of the questionnaire were answered briefly.

The company officials did not divulge details about

competitive sales policies, strategies & certain financial

terms with dealers as they find it to be a confidential piece

of information of the company.


Indian Paint Market

In India, Indian Paint industry’s total market size is US$1400 million.

The organized sector of the industry is 55%. The 45% unorganized

sector has about 2500 units.

The big players and their market share-value of the organized sector

are..

Asian Paints 37%

Goodlass Nerolac 15.9%

Berger Paints 13.8%

ICI 11%

Jenson & Nicholson 5.7%

Shalimar 4%

Others 12%

The market segment is divided into two sectors.

Architectural 70%

Industrial 30%

The total volume of the market is 600,000 MT.


HISTORY OF NEROLAC PAINT


Origin & Evolution of Nerolac

Nerolac embarked its journey in 1920 as Gahagan Paints and Varnish Co. Ltd. at Lower Parel in Bombay.

In 1930, three British companies merged to formulate Lead Industries Group Ltd. In 1933, Lead Industries Group Ltd.

Acquired entire share capital of Gahagan Paints in 1933 and thus, Goodlass Wall (India) Ltd. was born. Subsequently, by 1946, Goodlass Wall (India) Ltd. was known as Goodlass Wall Pvt. Ltd. In 1957, Goodlass Wall Pvt. Ltd. grew popular as Goodlass


http://www.nerolac.com/index.jsp?page=company/origin

In addition, it went public in the same year and established itself as Goodlass Nerolac Paints Ltd .

In1976, Goodlass Nerolac Paints Ltd . became a part of the Tata Forbes Group on acquisition of a part of the foreign shareholdings by Forbes Gokak.

In 1983, Goodlass Nerolac Paints Ltd . strengthened itself by entering in technical collaboration agreements with Kansai Paint Co. Ltd., Japan and Nihon Tokushu Toryo Co. Ltd.,japan.

In 1986, Goodlass Nerolac Paints Ltd . turned into a joint venture of the Tata Forbes and the Kansai Paint Co. Ltd., with the latter acquiring 36% of its share capital.

In 1999, Kansai Paint Company Ltd., Japan took over the entire stake of Tata Forbes group and thus GNP became a wholly owned subsidiary of Kansai Paint Company Ltd .

In 2006, on the 11th of July, Goodlass Nerolac Paints Ltd. name has been changed to Kansai Nerolac Paints Ltd.

In1976, Goodlass Nerolac Paints Ltd . became a part of the Tata Forbes Group on acquisition of a part of the foreign shareholdings by Forbes Gokak.


In 1983, Goodlass Nerolac Paints Ltd . strengthened itself by entering in technical collaboration agreements with

Kansai Paint Co. Ltd., Japan and Nihon Tokushu Toryo Co. Ltd., Japan.

In 1986, Goodlass Nerolac Paints Ltd . turned into a joint venture of the Tata Forbes and the Kansai Paint Co. Ltd., with the latter. acquiring 36% of its share capital

In 1999, Kansai Paint Company Ltd., Japan took over the entire stake of Tata Forbes group and thus GNP became a wholly owned subsidiary of Kansai Paint Company Ltd .

In 2006, on 11 July, Goodlass Nerolac Paints Ltd. name has been changed to Kansai Nerolac Paints Ltd.


During the journey of continuous performance excellence, we have entered in to many technical collaborations with other industry leaders such as E.I. Du-Pont de Nemours & Company Inc., USA and

Oshima Kogya Company Ltd., Japan for our different products.

Our incessant journey of successes will go on backed by our present human asset of over 2000 professionals and a sales turnover of Rs. 1484 cores

We are esteemed a subsidiary of Kansai Paint Company Limited, which is the largest paint manufacturing company in Japan and among the top ten coating companies of the world.

We are the second largest coating company in India with a market share of over 20%.

We are the market leader in industrial / automotive segment supplying over 90% of the OEM requirements.


We are the leader in powder coatings.

NEROLACPROFILE

Management & Key People


http://www.nerolac.com/index.jsp?page=company/key

“The people who make the company are its real assets.”

At Kansai Nerolac , we stand by this.

The success of Kansai Nerolac hashinged on this philosophy since1920,In addition, being the second largest paint company in India is rightfulCompany in India is the rightful tribute to its people's commitment and dedication.

With employee strength of around 2000 spread over the country and an efficient management, the company provides the conducive work atmosphere to develop and grow.

Our team of PhD’s, engineers and technicians visit collaborator's plants abroad to update themselves with the latest techniques.

BOARD OF DIRECTORS


Name of the Person Designation

Dr. JAMSHED JIJI IRANI CHAIRMAN

MR. DEVENDRA MOTILAL KOTHARI VICE -CHAIRMAN

MR. HIROSHI ISHINO DIRECTOR

MR. YUZO KAWAMORI DIRECTOR

MR. PRADIP SHAH DIRECTOR

MR. HARISHCHANDRA MEGHRAJ BHARUKA

MANAGING DIRECTOR

MR. SUSIM MUKUL DATTA DIRECTOR

MR. NOEL TATA DIRECTOR

MR. YASO TAJIRI DIRECTOR

MR. PRAVIN CHAUDHARI DIRECTOR

Management Committee Members

Name of the Person Designation


Mr. H.M. Bharuka Managing Director

MR. Pravin Chaudhari Director

Mr. Shrikant Dikhale Vice President - HR

Mr. Anuj Jain Vice President - Marketing (Decorative)

Mr. Mahesh Mehrotra Vice President - Technical

Mr. Hitoashi Nishibayashi Director Supply Chain & Auto Marketing

Mr. P.D. Pai Vice President - Finance

Mr. Jason Gonsalves Vice President - Corporate Planning & IT

The HR Angle

Vision Values and Culture

In today’s dynamic business environment, no organization can afford to survive without a well-articulated and carefully thought vision stating the overall strategic


direction and long-term future of its business.

We have been at the forefront of paint manufacturing over eight decades pioneering a wide spectrum of quality products that change the face of economy and lifestyles of people at large.

It is our vision to leverage global technology, for serving our customers with superior coating systems built on innovative and superior products and world class solutions, to strengthen our leadership in Industrial coatings and propel for leadership in Architectural coatings, all to the delight of our stakeholders.

We firmly believe that it is not only the vision of where we wish to go which will form a cornerstone of all our further growth, but also our fact that

The values based proposition has to be ultimate foundation of our business.

To this end we consciously have internalized and been practicing these values in all our business transactions though human beings:

InnovationEntrepreneurial


ResponsiveSimplicityTeam Orientation

Cultural Ethos

Vision driven organizationEmployees feel pride in being part of the organizationRecognition of human resources as extremely important

and critical assetsHigh level of human dignityTransparency and openness among employees at all

hierarchical levelsPerformance-linked reward systemManagement and employee commitment to organization

values is highAutonomy in work is highHigh commitment to quality products

The HR Philosophy

At Nerolac we recognize our human resources as extremely important and critical assets. We honor the dignity of each individual, irrespective of position and highly value the feelings and emotions of people.

Our Human Resource Policy is, to facilitate creation of synergy, mutuality and interdependence between individual and corporate development and growth through total employee involvement and building an


enabling work culture in the organization.

Informality in interactions, transparency and openness in communications at all levels, and an enabling work environment supporting high autonomy of work, transparency and an objective subjectivity of Performance Management System, fair dealing, tremendous care and concern for people are a few of the softer aspects of permeable people management environment which represent the organizational climate and culture.

Our faith is averred by the fact that people feel pride in being part of the Nerolac family. We care for people;

people care for our business.

The Quality Policy

It is the philosophy of Kansai Nerolac Paints Ltd ., and its associates to achieve complete customer satisfaction by providing products and services that consistently meet or exceed the customer needs and expectations, pursuant to agreed specifications, delivery schedules and competitive prices.


It is the philosophy of the company to systematically operate its manufacturing facilities by inculcating commitment to total quality management at all levels and on a continuous basis with a view to achieving “First Time Right” results in manufacture, services and other operations.

It is the company’s aim to constantly reduce waste of material and effort, increase efficiencies and ensure safety of plant and people and protection of the environment.

Open Door Policy

Working together requires that we have a friendly atmosphere based on trust and respect amongst all of us.

At Nerolac we follow an Open Door policy. Any person is free and welcomed to share good idea, suggestion, doubt, problem about job or work place, or


uncertainties about one’s future in the organization. An open and transparent communication is appreciated

Social Responsibility

The company cont inues to make i ts due contr ibut ion to communi ty re l ie f and development act iv i t ies and has donated both in cash and k ind for the beaut i f icat ion of some publ ic p laces in Mumbai and e lsewhere.

The company cont inued i ts act iv i t ies d i rect ly or indi rect ly through t rusts/agencies in communi ty Development and Socia l Wel fare inc luding contr ibut ions towards nat ional defense, medical help, educat ion, improvement of envi ronment etc

IT Pillar

Nerolac has always sought to harness the benefits of Information technology. It has envisioned using Information technology in all areas of business to build up unique competencies and efficiencies thus delivering maximum value to Nerolac's stakeholders


Starting in February 2000, it has transformed its functional based legacy systems into a process based organization wide systems culture by investing and implementing the SAP R/3 solution.

It has also sought to leverage its vast repository of data and work towards building knowledge based organization. In line with this vision, it has invested in an excellent data warehousing solution and in Knowledge sharing portal.

The power of IT has been further leveraged to enhance the operational capabilities with the help of Supply Chain solutions from SAP.

As part of these implementations, Nerolac today has a state of the art data center and communication infrastructure based on VSAT’s / Leased lines/ ISDN/ VPN connecting all its sales offices and factories

Around the country allowing online transaction processing and response backed by a state of the art

Storage (SAN) device. Nerolac plans to now open its organization to its suppliers and customers so as to


Reap the benefits of modern communication technology and E-commerce.

A part of this process it is now pursuing means for establishing secure connectivity to the extended enterprises.

Nerolac will continue to invest in applications that make it more open and transparent to all its stakeholders.

Quality Safety and Environment

Quality-- In continuation of our efforts to achieve highest Quality standards, we the Kansai Nerolac Paints Ltd have successfully implemented various Quality Managements Systems in our organization.

All manufacturing locations of KNPL have been certified for ISO 9001-2000

Being major Industrial paint manufacturer & supplier to OEM customers KNPL has also implemented QMS as specified by ISO/TS 16949 standard .Our industrial paint


manufacturing locations are certified for ISO/TS 16949 -2002

The Japanese 5-S and TPM (total productive maintenance) concepts have been implemented in organization.

Safety--The Company takes the greatest possible care to ensure the safety, health and welfare of its staff and the communities living around its facilities.

All manufacturing locations are OHSAS-18001 certified. Safety is given paramount importance across the organization. Safety and occupational health programme are in place to ensure the wellbeing of employees and facilities at all locations.

Environment

KNPL aims to promote sustainable environment

management, which contributes to environmental

conservation. Protecting the environment is a crucial component.

All manufacturing locations are ISO-14001 certified which helps the organization to achieve sound environmental performance .

Sr. No. Plant Type of CertificateCertified

By


1 Lote

ISO /TS 16949 : 2002 BVQI

ISO 9001: 2000 BVQI

ISO 14001:2004 BVQI

OHSAS 18001:1999 BVQI

2 Bawal

ISO/ TS 16949 : 2002 BVQI

ISO 14001:2004 BVQI

OHSAS 18001:1999 BVQI

3 Jaipur

ISO/ TS 16949 : 2002 Intertek

ISO 9001: 2000 Intertek

ISO 14001:2004 Intertek

OHSAS 18001:1999 Intertek

4 ChennaiISO 9001: 2000 Intertek


5 NippaISO 9001: 2000 Intertek


s

Organizational Strengths


An organization is not set on pillars of brick and concrete but is set on strong inherent characteristics that make it strong for Years.

Nerolac is carrying on strong since 1920. Following are its strengths that have kept this company in good faith.

Nerolac is a company with very clear and well-defined vision and very strong values. Clarity of vision and strong foundation of cultural values have always kept this company in good stead.Its ethical conduct has always guarded it against any possible traps and pit falls.

We have made sure that the distribution hurdles and the climatic vagrancies do not affect the quality of our services.

This same commitment will ensure that Kansai Nerolac will march towards its centennial year, fully dedicated and invigorated, in step with the exciting wave of industrialization and

modernization pervading through the new India.

Innovation in Research & Development "Compete through Innovation"

The keystone of Kansai Neola’s success has been its investment in technology and the importance given to Research and Development.


The company has, over the years, set up excellent facilities for developmental research, improving its manufacturing processes and continuously innovating on its products.

Kansai Nerolac's R&D laboratory has the distinction of being one of the first to be officially recognized by the Department of Science and Technology (DTI), Government of India.

At Nerolac, quality control starts from the first stage of raw materials, through intermediates, right up to the finished products.

Wide Experience

The rich cumulative experience of the organization gathered over 80 years of experience provides a strong backbone to all kinds of decisions taken in this company.

80 years of learning in trade and market has given enough expertise to innovate and develop products and services according to the changing needs and desires of customers.


Nerolac paint technology cuts across all barriers; without

discriminating between uses or users. The past decades

have seen a meteoric rise in the fortunes of Kansai Nerolac. Today, we are the second largest paint company and a recognized leader in our chosen fields.

The company was adjudged the fastest growing paint company in the organized sector, not once but thrice-in consecutive years .

People

Nerolac is a company, which considers its people as one of its strengths. Nerolac has always valued its employees.

Recruitment thus becomes very important activity at Nerolac. Employees that add value to the organization are suitably awarded & rewarded to keep the fire live & going

Strategic Alliances

The coatings industry globally, like several other industries, is in the process of consolidation.

The process of consolidation is intended to help companies meet increasingly challenging customer requirements by constantly updating technology, striving for greater efficiency in operations and ensuring worldwide servicing capabilities.


World over, units are moving with associates/affiliates/parent bodies with core competence as their prime objective.

The acquisition by Kansai of the shareholding of Forbes Gokak Ltd. and their associates in your Company is in furtherance thereof.

Technical collaborators and associates are strategically placed to make most of the market opportunities and create more value to the company .

Strong distribution network

Nerolac’s strength of wide spread distribution network is its right arm in generating sales revenue from all parts of India. Nerolac has a wide distribution network of over 11,000 dealers

we have eight Sales Divisions and each division has depots


to take care of local needs. In all we have 66 depots

all this ensures complete reach in India including rural and up country markets.

Manufacturing Strength

Manufacturing is a very important function for the paint industry. Nerolac has made sure that its manufacturing facilities are world class.

Nerolac has four manufacturing units located at Perungudi (T.N.), Jainpur (U.P.), Lote Parshuram (Maha.) & Bawal (Haryana).

The fifth factory is planned at Hosur in T.N. The total installed capacity of all the existing units put together is 173900 MT/Annum.

Its latest unit is at Bawal, which was commissioned in March 2005, with a capacity of 20400 TPA With an investment of around Rs.100 crore- all through internal accruals

Marketing

At Nerolac, the marketing function has been one of the pillars behind building a successful organization.

We believe our key strength lies in understanding the consumer and communicating with him in a language they understand and relate to best. Nerolac


commercials have been well -loved over the years and its jingle –

“Jab ghar ki raunaq badhaani ho..”'

Is now a familiar tune in every Indian household?

Over the years, Nerolac has undertaken several initiatives, which have met with unprecedented

Success and made people really sit up and take notice of the brand. Beginning with the introduction of the new Brush stroke logo, which stands for the

‘Process of painting’.

It depicts motion, dynamism and progress through change. The

signal red color, which is the color of Nerolac, is

“Symbolic of eternal joy and hope”.

Has now become an integral part of our brand identity and now appears as a sign-off on any kind of communication.

Another one of the marketing initiative was the unveiling of the new corporate campaign with Mr. Amitabh Bachchan as our brand ambassador.


In this campaign, Amitabh Bachchan embodied Nerolac and showed how it touches the lives and dreams of people...no matter who they are and where they come from.

The essence of this thought was captured in the newbaseline

“Yeh Rang hain jo har kisi ko chhoota hain”.

Apart from the corporate campaign, we also released a new commercial for Nerolac Suraksha with Mr.Bachchan. Focusing on the fast growing exterior category, this commercial playfully demonstrates Suraksha's proposition of protection.Another one of the initiatives launched, during the festival season of Diwali was__

“Har Din Diwali”

A promotional campaign aimed at the customer.

The unique feature of this campaign was the opportunity to win daily prizes through out the entire duration of 55 days of the campaign.

In addition to the daily prizes, there was also a grand bumper prize to be won. For sure, this one campaign was a runaway success.


http://www.nerolac.com/commercial.mpg

http://www.nerolac.com/commercial.mpg

Complimenting our core business of paints last year also saw the launch of “Nerolac Assured Paint Service” .

Designed to bring the Nerolac experience right to the consumers' doorstep, i t met with an excellent response. Currently available in Mumbai, consumers can now relax while the Nerolac team takes over the entire paint job right from sourcing to execution.

In our effort to becoming consumer fr iendly, this year we also undertook the exercise of redesigning our shade cards.

The new look shade cards are not only eye catching and consistent in appearance but also try to make the processor shade selection for the consumer lot more interesting and convenient.


On the award front, we made a great start to the year by winning two Envies, or media awards for innovative executions.

Therefore, it has been another successful year for Nerolac. We have taken some long-term and some short-term initiatives that will bear fruit as time passes.

That is why we believe that tomorrow, the sky will be the limit. The Kansai Nerolac mark symbolizes a progressive, forward driven process of change. This movement is expressed in a trend setting style that makes it unique and memorable.


Technical Collaborators

Nerolac Committed to provide the best in Paints, Nerolac have entered into Technical Collaboration with two industry leaders known for their technical superiority .

The two technical collaborators are

Kansai Paint Co. Ltd., Japan.

Oshima Kogyo Co. Ltd. Japan

The Associates of Nerolac provide that vital edge to stay ahead of the competition. These associations were setup with the specialized expertise of the Industry leaders to make Nerolac a complete Paint Company catering to all the market segments.


Shareholders

In February 2000, Kansai Paint Co. Ltd., Japan, the Company's foreign collaborator and one of the Promoters of the Company, acquired 43,71,152 shares amounting to 28.56% of the paid-up Share Capital of the Company from Forbes Gokak Ltd. and their associates, the other Promoter of the Company, at a price of Rs.250 per share.

With this acquisition Kansai Paint Co., Japan, was now holding 64.52% of the paid up share capital of the Company. Share holding increased to 66.41%, post the merger of Polycot Powders Ltd., a wholly owned subsidiary of Kansai Paint Co., Japan, with Kansai Nerolac Paints Limited.

The coatings industry globally, like several other industries, is in the process of consolidation.

The process of consolidation is intended to help companies meet increasingly challenging customer requirements by constantly updating technology,striving for greater


efficiency in operations and ensuring worldwide servicing capabilities.

World over, units are moving with competence associates/affiliates /parent bodies with core as their prime objective.

Dealer Network

Kansai Nerolac Paints Ltd." has a wide network of around 11,000 Dealers.

They have eight Sales Divisions and each division has depots to take care of local needs. In all they have 66 depots. All this ensures complete reach in India including rural and up country markets.

Nero lac have made an at tempt toProv ide wi th the deta i ls o f those dealers who have ins ta l led theComputer ized/Manual co lor t in t ingMachines a t the i r counters , known asCloudscapes counters

Channel structure

Nerolac Paints Ltd.

Dealer/ distributor Warehouse

Dealer shops


End customer

PRODUCTSOFNEROLAC


Lead Free Paints from Kansai Nerolac

Kansai Nerolac Paints Ltd. Has

Always been committed to the

Welfare of society and environment

In addition, as a responsible corporate has

Always taken initiatives in the areas

Of health, education, community

Development and environment preservation.

Kansai Nerolac has worked on removing hazardous heavy metals

From their paints. The hazardous heavy metals like lead, mercury,

Chromium, arsenic and antimony can have adverse effects on

Humans.

Lead in paints especially poses danger to human health where it can

Cause damage to Central Nervous System, kidney and reproductive

System Children are more prone to lead poisoning leading to lower

Intelligence levels and memory loss. Kansai Nerolac has removed


Heavy metals from the passenger cars products long ago.

Gradually all such heavy metals were removed. At present, the entire

Decorative Range of products, which are used in Households, has

Become ead free by design.

Kansai Nerolac does not add any

Lead or other such heavy metals

In its manufacturing process

However, lead contamination may

Take place through ingredients like

Solvents and thinners.

In any case, the same will be lower than limits certified by various

organizations and also considered safe from health norms To

educate the consumers on the same we have also started an

Advertising campaign highlighting the adverse effects of lead on

humans and how Nerolac Paints are made safe by removal of

These hazardous to identify eco-friendly products, we have

Introduced lead free logo which is displayed on all the

Decorative products of the company.


List of some of the Lead Free products offered by KNPL:

1. Interior Emulsions

2. Exterior Emulsions

3. Enamels

4. Distempers

5. Putty & Fillers

6. Primers

7. Varnishes & Wood Coatings

8. Passenger


NEROLAC PRODUCT

WALL

InteriorNerolac's range of Decorative paints for inner walls.

1> Water Based Paints

- Emulsions

- Distemper

2> Solvent Based Paints

- Lustre

- Enamel

- Flat Oil

Exterior Nerolac's range of Decorative paints for building exteriors.

Emulsions

Textured

Cement

Nerolac Impressions Ever last


http://www.nerolac.com/index.jsp?page=products/deco/plastic&t=0

http://www.nerolac.com/index.jsp?page=products/deco/enamel&t=0

http://www.nerolac.com/index.jsp?page=products/deco/distemper&t=0

http://www.nerolac.com/index.jsp?page=products/deco/emulsions&t=0

Metal

Nerolac Impression Hi-Performance Enamel

Nerolac Satin Enamel Nerolac Synthetic Ena

Wood

1K PU

Mel'mine

2K PU

PU Interior +

Multisealer

Water Clear Lacquer

Wood Stains

NC Sanding Sealer

NC Wood Filler

NC Thinner


Industrial Paints

Automotive Coatings

Industries Serviced Value Addition

General Industrial Coatings

Automotive Coatings


High Performance Coatings

Powder Coating.


http://www.nerolac.com/index.jsp?page=products/ind/powdercoat&sec=ind

http://www.nerolac.com/index.jsp?page=products/ind/highperf&sec=ind

http://www.nerolac.com/index.jsp?page=products/ind/indcoat&sec=ind

http://www.nerolac.com/index.jsp?page=products/ind/auto&sec=ind

Walls- Interior

Emulsions

Nerolac Impressions 24 carat.

Nerolac Impressions Metallic.

Nerolac Impressions Disney .


Nerolac Beauty Premium Acrylic emulsion .

Nerolac Beauty Silky Smooth.

Nerolac Beauty Smooth finish.

Nerolac Beauty Flexi Coat

Distemper


Beauty Premium Acrylic Distemper.

Beauty Acrylic Distemper.

Beauty Oil Bound Distemper.

Enamel


Nerolac Synthetic Enamel.

Nerolac Satin Enamel.

Impressions Hi- Performance.

Goody Synthetic Enamel Walls - Exterior

Emulsions


Impression Excel Anti Peel.

Impression Excel Total.

Suraksha Advanced.

Nerolac Suraksha .

Industrial Paints

Automotive Coatings

Kansai Nerolac is the Market Leader in the automotive coating segment in India with a market share of over


60% with global technology acquired from Kansai Paint Co. Ltd, Japan.

Kansai Nerolac offers the latest technology in automotive painting systems to the Indian automotive industry.

Automotive Coatings of Kansai Nerolac have been tested and certified by global automotive manufacturers who have set up base in India, like:

1. Suzuki Motors

2. Honda Motors

3. Toyota Motors

4. General Motors Corporation

5. IVECO Motors

6. Peugeot

Through its various strategic collaborations, Kansai Nerolac offers a tota l painting system to auto makers in India with a range of products, starting from Pretreatment Chemicals, Electro Deposition Primers, Intermediate Coats/primer Surfacers, Solid & Metallic Top Coats, Clear


Coats Touch-up Paints.

The product range is backed up by a strong technical service network of experts placed at customers’ end, training programs, VA/ VE activities in co-ordination with customers resulting in ultimate delivery of optimized painting solution.

Kansai Nerolac has tie-up with the global players for product range offered to automotive and industrial customers.

Kansai Nerolac has entered into collaboration with the following players for specific product range….

Company Product Category

Kansai Paint Co., Japan ED Primers, Automotive & Industrial Coatings

Nihon Parkerizing, Japan Pre-Treatment Chemicals

Oshima Kogyo, Japan Heat Resisting paints

Ameron/PPG, USA High Performance Coatings


The paint manufacturing industry is moving ahead by leaps and bounds, and setting the momentum is Kansai Nerolac Paints.

A pioneering R&D ensures we manufacture a wide spectrum of paints that change the face of the industry in India. Kansai Nerolac Paints develops and supplies cost effective paint systems used on the finishing lines of major


electrical components, cycle, and material handling equipments, bus bodies, containers and furniture industries. Besides this we also provide systems conforming to I.S. & Defense specifications.

We pride ourselves in the quality and consistency of our coatings and have helped companies, who serve diverse markets.

We have the experience to help businesses excel in coatings and application processes.

A comprehensive range of products meant for industrial application we have specialized in providing:

1>Coating Solutions for Bus, Load & Trailer Bodies2>Coatings for drums and barrels, cylinders, beverage containers,

collapsible tubes, crown and caps

3>Coil coatings for steel and aluminum substrates

Industries Serviced


http://www.nerolac.com/index.jsp?page=products/ind/industries

High Performance Coating


Auto Industry Tractor Industry

Auto Ancillaries General

Marine Container & Ship Repair White Goods Industry

It is amazing how often the havoc wreaked by the ravages of corrosion goes unnoticed, even though rough estimates put the corrosion losses in India at a whopping Rs. 5000 crores a year!

Every second, some surface of a vital structure is under attack from chemical, physical and environmental forces.

In this battle against corrosion, we offer the best defense. With a range of High Performance Coatings, manufactured in collaboration with PPG Industries Inc (formerly Ameron Coatings), USA

Customized Solutions To Your Problems

Kansai Nerolac offers cost effective solutions to all corrosion problems. We have had a long association with satisfied customers in Infrastructures, Power, Fertilizers, Chemical and Petroleum, Heavy Engineering, Offshore and Marine segments.

Kansai Nerolac paints Ltd. , provides services at the following major stages:

Initial discussion: Specifications for new projects and/or maintenance are discussed in the first stage. The objective of this discussion is to identify the principal criteria.


On site examination: A full inspection is carried out of all the facilities, with particular reference to maintenance or repainting jobs. The condition of existing coatings is noted and a future maintenance program recommended.

Cost effective evaluation: Suitable systems are evaluated in order to select the most effective system for optimum results.

Finalization of specification: Discussions with the customer to ensure that the specification is totally in accordance with their needs. After which recommendations and supporting documents are submitted for final acceptance.

Technical advisory service: This is provided throughout the period of contract with close monitoring at critical stages and on finalisation of the project.

Post completion consultancy: Constant and regular monitoring is done after the project is completed to ensure total customer satisfaction.

Nath Balakrishnan


http://asianpaints.com/index.aspx

`The paint industry in India still has a lot to do to promote usage, which by itself is a huge opportunity.'

Asian Paints is a household name in the domestic paints industry. Now, with operations in 23 countries across the world, its business is acquiring a global dimension. In a freewheeling interview with Business Line, Mr Ashwin Dani, Vice-Chairman and Managing Director of Asian Paints (AP) shares his outlook on the company's prospects, how various categories within the paints segment fared, the role of marketing initiatives, such as the installation of tinting machines, and, finally, about AP's acquisition-led expansion strategy. Mr Dani's views on developments on the acquisition front will be published next week.


Demand for paints comes from two broad categories:

Decoratives:

. Decorative paint's market size stands at around Rs 32.5 Bn.

Asian paints is this market leader in this segment

Under this segment it offers Painting Guide, Painting Solution, Paint Calculator and Paint Selector as value added decorative service.


Introduction

Asian Paints offers 4 types of industrial coatings such as:

Protective Coatings - protects steel and concrete structures from the corrosive action of harsh climates, pollution, sea spray, acids, oils and solvents.

Road Markings – are used as road markers for lane as indicator of lane separation and also as safety markers. They include ordinary road marking paint, hot applied retro-reflective thermoplastic material and retro-reflective water borne paints.

Powder Coatings – is used to enhance the performance of Industrial paints.

Floor Coatings – such paints protects the floor surface and prevents crack formation, insect nest formation, water seepage etc


The paints sector is raw material intensive, with over 300

raw materials (30% petrol-based derivatives) involved in

the manufacturing process. Since most of the raw

materials are petroleum based (ex: Titanium Dioxide), the

industry benefits from softening crude prices.

COMPANY DECORATIVE

INDUSTRIAL

OVERALL

ESTIMATED

PAINT REVENUES

Asian Paints 38% 14%-16% 32.5% Rs. 6,980 MM

Goodlass Nerolac

7.8% 40% 17.5% Rs. 3,750 MM

Berger Paints *14% *14% 14.0% Rs. 3,007 MM

ICI India Ltd. 8%-9% 12% 10.5% Rs. 2,254 MM

Jenson and Nicholson

*6.9% *6.9% 6.9% Rs 1,482 MM

Growth Rate 8-9% 18% 11%Total (Rs.) 15,033

MM6,442 MM

21,476 MM

ince these companies strive to match their product sales

to the market (i.e. 70% : 30%) they maintain similar

market share in each segment

PRODUCT RANGE

Asian Paints Premium Emulsion


Asian Paints Interior Wall Finish Lustre

Asian Paints Ace Exterior Emulsion

Asian Paints Apcolite Clear Synthetic Varnish

Asian Paints Touchwood

Asian Paints Utsav Enamel

APEX ULTIMA

With 7 year warranty

COMPANY BACKGROUND

Asian Paints


Asian Paints , established in 1942, is India's largest paint

company and the third largest paint company in Asia. It has

a turnover of Rs 30.2 billion (around USD 680 million) .

The company operates in 21 countries and has 29 paint

manufacturing factories servicing 65 countries .

The company operates several subsidaries such as Berger

International Limited, Apco Coatings, SCIB Paints and

Taubmans. The company manufactures paints for

decorative, industrial, and motor applications.

The history of AP dates back to 1942. It was started by four

entrepreneurs, Champaklal Choksey, Chimanlal Choksi,

Suryakant Dani and Arvind Vakil, as a partnership firm for

manufacturing paints, in a garage rented for Rs 75 a month.

In 1945, the partnership firm was turned into a private

limited company named Asian Oil & Paint Co. Pvt. Ltd. And

in the same year, its turnover touched Rs0.35million.

In the 1940s, it was largely multinational companies such as

British Paints and Jenson & Nicholson that dominated the

Indian paints market.

In order to increase revenue, AP concentrated on the smaller towns ignored by multinationals. In 1954, Asian Paints asked the famous cartoonist R.K. Laxman to create a


http://en.wikipedia.org/wiki/Asia

http://en.wikipedia.org/wiki/India

mascot for the company, and from his pen was born – Gattu – which emerged as one of India’s most memorable mascots (Refer Figure I). However, AP’s market research found out that in rural India, farmers who wished to paint the horns of their bullocks preferred to buy paint in small packs. Soon AP came out with 50-ml packs, which became very popular.

Asian Paints Limited ("Asian Paints") is transforming itself to become a major world player in the decorative paints business with particular focus on emerging markets following its acquisitions of controlling stakes in Berger International Limited ("Berger International") of Singapore and SCIB Chemical S.A.E. ("SCIB") of Egypt.

The total investment made by the company in both these acquisitions amount to around US$ 16.8 million (S$29.6 million). Asian Paints announced that it would focus on emerging markets of the world for growth and also that Berger International will be the main growth driver for Asian Paints international operations Focusing on the aspect of increasing shareholder value in Berger International, Mr. Dani said:

"In Berger International, Asian Paints will focus to increase shareholder value by further improving the supply chain


management in the subsidiaries (Asian Paints supply chain management is considered the best in India servicing around 14,500 dealers directly from 70 sales locations and manufactur ing over 2 ,500 s tock-keeping un i ts (SKUs) .

The success of AP has been attributed to its customer-centric approach and aggressive marketing initiatives, which had changed the way industry, functioned.

AP wanted to be one of the top five companies in the global paints industry by 2007. In order to achieve this goal, it focused on three main areas - building the AP brand in terms of a new product portfolio, changing its logo and packaging.

The new AP was expected to be even more customer-friendly and service-oriented. In order to keep its prices low, AP had to keep its production costs low.

So it undertook backward integration to reduce production costs. In 1987, it entered into joint venture with Tamil Nadu Industrial Development Corporation (TIDCO)

Pentasia Chemicals Ltd, for the manufacture of pentaerythritol and sodium formate - two important intermediates for manufacturing paints.


South Asia: ASIAN PAINTS

South East Asia: BERGER INTERNATIONAL

South Pacific : SCIB PAINTS

Middle East : APCO COATINGS

Caribbean region : TAUBMANS

Distribution network

Channel structure, members and their selection


Channel structure ASIAN PAINTS is all over India. The channel

structure is very simple and effective. Complications are kept out in

order to make the overall process very effective and efficient.

20,000 Dealers all over India

1,000 Dealers in New Delhi alone

14 products, 1200 shades

Depots in Delhi : Badarpur, Mayapuri, Wazirgunj, Mandori

Asian Paints, the market leader in the architectural segment , has over 14 product offering over 1,200 shades in package sizes ranging between 1 liter to 20 liters.

Logistics required to ensure that each of the company’s dealers has just adequate stock of each shade of each product range, in each size.

This cal ls for immense accuracy in demand forecast ing and an excel lent network.


However, the advent of t int ing machines has considerably eased the distr ibut ion blues. With this technology, a paint company only needs to provide the dealer wi th certain base colors, t int ing machines (which include a dispenser, shaker and a computer) , colorants or strainers, and a color card.

The consumer chooses a part icular shade from the card. The dealer puts the code of the shade in the computer and the computer programme f inds the exact formula for the corresponding color.

TINTING MACHINE

Dealers’ Tinting Machines (DTS)

1. Powerful marketing tool


2. Making major investment. Already invested Rs. 92-100 crore

Trying that these machines are directly purchased by dealers .The programme ensures that the required stainer gets added to the base paint in the required quantity and the new paint comes pouring out of the tinting machine in the shade chosen by the customer

CHANNEL STRUCTURE

SELECTION OF DEALER


Asian Paints follows a strict policy in selection of the

dealers:

1) The dealer should have a sound financial background.

2) The dealers’ current business goodwill, measured in

terms of dealer goodwill which covers areas such as

infrastructure, manpower etc. and individual goodwill

3) The dealer should have his own infrastructure and

logistics, since he is completely responsible for the

inventory and transportation of the goods to the shop from

his warehouse

Responsibilities and Functions of the dealers

ASIAN PAINTS believes in “Customer Loyalty” and thus

asian paints expects that their dealers apart from selling

paint products should perform the following functions for

better customer relations’ management :


Sales promotion through regular promotional schemes, road

shows, campaigns etc. Recruitment- done under the guidance

of certain asian paint officers.

Customer relation management

ervicing according to the size of orders

Training and development of manpower with company

assistance

The dealer should be in regular touch with the customer, keep taking

his feedback and ensure maximum customer satisfaction. The dealer

should also try and convince the customer to try newer products of

the company.

PAYMENT MODES

Cheque is the only acceptable way of payment

Margins/Discounts

The dealers collect their margins at the time of sale of the product.

Margin/discounts is provided by the company between 3.5% to 5%

FEEDBACK FROM CUSTOMERS


HOMESOLUTIONS

Customer feedback is obtained not only after servicing as mentioned

earlier, but post sales too. There are 2 types of feedback forms

customers can fill:

A feedback to company through questionnaires and cards

Direct feedback to the sales people.

All these feedback cards are sent to the corporate office of the

company where the required action is taken.


Dealer Network

Channel structure, members and their selection

Nerolac’s strength of wide spread distribution network is its right arm

in generating sales revenue from all parts of India. Nerolac has a

wide distribution network of over 11,000 dealers

They have eight Sales Divisions and each division has depots to take

care of local needs. In all they have 66 depots

All this ensures complete reach in India including rural and up country

markets

Channel structure

Nerolac Paints Ltd.

Dealer/ distributor Warehouse

Dealer shops

End customer


There exist a total of 4000+ dealers with multiple outlets, i.e. a total

of dealers covering cities. The percentage of dealers in each of the

zones is as follows.

North- 35%

South- 26%

East- 10%

West- 29%

Market Research:

The company undertakes Market Research activity to measure its

performance in different fields, like after sales service, customer

satisfaction etc. The company employs third party agencies to

measure its performance.

SSI (Sales Satisfaction Index)

The sales satisfaction study is a consumer-driven measure of

customer satisfaction with the product sales and delivery process.

According to the study, there are six major factors impacting

satisfaction with the dealership at the time of purchase. They are

Sales Experience, Explanation at Delivery, Price Evaluation, Delivery

Timing, Salesperson Knowledge and Post-Delivery Contact.


CSI (Customer Satisfaction Index)

The customer satisfaction index with quality delivery performance is

used to track the problems experienced in the customer satisfaction

process. This data helps in building future policies and also helps in

training the employees to perform better in future.

Service NetworkStructure:

Group head

Service Support Field Support

On the job

Training

Backend T&D Dealer CRM Day to day

activities

Development Warranty

Nerolac India closely monitors each and every aspect of the entire

process in the business organization. The service network is similar

to that of Asian paints but the CRN and training and development is

not that developed. The technical support in the business units is

different as we have already discussed earlier that Asian paints uses

SAP and i2 technologies while Nerolac uses push and pull protocol.


COMPANY EXECUTIVE

As a part of our report, we used questionnaires for primary research. Our target group was: the dealers, company executives and customers of Asian and Nerolac paints

CHANNEL STRUCTURE

COMPANY DIRECT PROJECT [INSTITUTIONAL / CORPORATE BUSINESS / B2B]

DIRECT CUSTOMER HOME SOLUTION [ASIAN PAINTS] NAPS [NEROLAC PAINTS]

BULK BUYER [Like BUILDERS, CONTRACTORS ETC.]GODOWN

RETAILERS WHOLESELLER RETAILER

ORGANISATION STRUCTURE

SALES EXECUTIVE SALES OFFICER TERRITORY SALES EXECUTIVE

AREA SALES MANAGER

REGIONAL MANGER

VP MARKETING HEAD MARKETING HEAD [NORTH INDIA][MARKETING] …………

…………


CRITERIA FOR APPOINTING A DEALER

Credibility in the marketFoot FallFinancial positionCompetitors

CREDIT, PAYMENT & WARRANTY

Credit depends on credibility of the dealer/shopkeeper.It ranges from 0 – 30 days.But CD will be 3.5% instead of 5%.

For NEROLAC:

Payment is done on the basis on CHEQUE ON DELIVERY & ADVANCE CHEQUE [PAYMENT]

For ASIAN PAINTS:Payment is done on the basis on CHECK ON DELIVERY

Warranty of Asian Paints for APEX ULTIMA is 7 years.Warranty of Nerolac Paints for SURANKSHA ADVANCE is 4 years.

ORDER CYCLE, INVENTORY, TRANSPORT

Total company’s owned godowns through out the city: 4Whole country is connected through SAP and are daily updated.


Therefore, order can be placed regularly & has withing a day service of delivery.

Inventory depends on financial capacity, schemes/discounts offered by the organisation.

Transport is outsourced by the company through C&F agents to the contractors on certain terms & conditions set by the company.Transport vehicles generally used are Tampo, Champions, TATA 407 etc.


DEALER’S ANALYSIS

On the basis of our questionnaire, we analyzed the following:

The dealer deals with different brand of paints. The ones which they generally keep in stock are Nerolac, Asian, Berger, Shalimar and ICI Dulux paints.

The demand for each paint varies in accordance to the area specified. The brand which is generally demanded by customers are:- Asian paints (West Delhi)

Nerolac paints (Central Delhi)ICI paints (South Delhi)Berger & Asian paints (North Delhi)

The dealers generally don’t recommend anything to the customer; they give what the customer demands. In case, the customer is a bit confused about the quality of the product, then the dealers generally recommend ICI Dulux paint.

Dealers are free to place any order. There is no minimum order as such.

Average order cycle time is 1-2 days in case of Asian paints, while 5 days in case of Nerolac paints.

Transporter’s behavior, ease and flexibility of placing an order is very good for Asian paints where as it’s good for Nerolac paints.

Quality maintenance, condition of product is good for Asian paints while it’s very good for Nerolac paints.


Asian paints provide cash incentives at 1% while Nerolac doesn’t give any cash incentive. Also, Asian paints gives

Commission (if June 2007’s sale is greater than June 2006’s sale.) Other incentives being given are movie tickets, foreign trips, and big bazaar discount coupons.

Asian paint’s performance is satisfactory while Nerolac paint’s performance is good in case of promotional activities, commercial terms, and service of sales persons.

However delivery time, customers’ orientation is good for both Asian paints and Nerolac paints.

The efficiency of sales persons is good for Nerolac paints and satisfactory for Asian paints.

Both Nerolac paints and Asian paints provide assistance to dealers in promotional activities.

Dealers of both Asian paints and Nerolac paints don’t provide appraisals to their respective sales persons.

None of the Dealers are facing any problem due to company’s distribution channel.

If dealers face any kind of problem from customer’s side, the sales executive takes care of it.

Both the companies provide training to painters whenever new product, new finish is introduced and skillful work is required.


CUSTOMERS ANALYSIS

The customers were questioned on:What they do if they don’t get the desired paint?

Who influences them to buy that particular brand?How frequently do they get their house white washed/touch ups?

Ranking certain parameters for their choice of paint.

What they do if they do not get the desired paint?

For the Asian paints market, 76% of the respondents move to the next shop, 16% take any other paint and the rest 8% take any other color of the desired paint.

WHILE For the Nerolac paint market, while 64% of the respondents move to the next shop, 24% take any other paint and the rest 12% take any other color of the desired paint.

The above data shows that the respondents of Asian paints market are more brand Loyal as compared to Nerolac paint market.


DON'T GET THE DESIRED PAINT - NEROLAC PAINT

55, 64%

21, 24%

10, 12%

MOVE TO NEXTSHOP

TAKE ANYOTHER PAINT

TAKE ANYOTHER COLOUROF THE DESIREDPAINT

DON'T GET THE DESIRED PAINT - ASIAN PAINTS

116, 76%

25, 16%

13, 8%

MOVE TO NEXTSHOP

TAKE ANYOTHER PAINT

TAKE ANYOTHER COLOUROF THE DESIREDPAINT

Who influences them to buy that particular brand?

Overall, it was noticed that in 23% of the cases, shopkeeper influenced people to buy a particular brand of paint, be it Asian Paints or Nerolac Paints. In about 18% of the cases, relatives and friends influenced people. Endorser and painter influenced people to about a 16%.People were influenced by kids only in 9% of the cases.

PEOPLE WERE INFLUENCED BY...

23%

18%

18%

16%

16%

9%

SHOPKEEPER

RELATIVES

FRIENDS

ENDORSER

PAINTER

KIDS

How frequently do they get their house white washed/touch ups?

From the various options given, i.e., half yearly, yearly, once in two years, once in three years and occasionally for both Asian Paints and Nerolac Paints.


5.19%

35.71%

26.62%

20.78%

11.69%

8.14%

22.09%

27.91%26.74%

15.12%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

HALF YEARLY YEARLY ONCE IN TWOYEARS

ONCE IN THREEYEARS

OCCASSIONALLY

Asian Nerolac

`

Details:

Half yearly :

Asian paint

Nerolac paints

5.19% 8.13%

which automatically shows 6.25% people get their places painted half yearly in our chosen market. This is not very potential segment, which requires the focus of the industry in the chosen market.


Yearly:

Asian paint

Nerolac paints

35.7% 22.09%

Which surely means that 30.84% of the market gets their places painted yearly?

Two years

Asian paint

Nerolac paints

26.62% 27.90%

This shows, 27.09% of the market get their house painted once in two years.

Three years:

Asian paint

Nerolac paints

20.77% 26.74%

Which shows that 22.91% market get their house painted once in three years?


Occasionally:

Asian paint

Nerolac paints

15.12% 11.68%

This implies,12.91% of market get their house painted occasionally.

The next aspect of the questionnaire involved the respondent to rank the performance of his choice of brand on various parameters. Now, we would discuss each parameter in detail.


AVAILABILITY OF THE PRODUCT

The first parameter, asked the respondent to judge the availability of both the categories of paints. In the Asian paint segment, 48.5% and in the Neola paint segment 24.5% said that the availability was excellent.

30.7% and 42.3% respondents said that the availability

was very good for Asian paints and Nerolac paints respectively. 18.75% and 28.8 % respondents said that the availability was good for Asian paints and nerolac paints respectively. 1.9% and 4.2% respondents were not satisfied with the availability of the paint, thus rated the availability as fair.

NEW /

INNOVATIVE PACKAGING


Availability of the product

48.56

30.77

18.75

1.92 0.00

24.58

42.37

28.81

4.240.00

0.00

10.00

20.00

30.00

40.00

50.00

60.00

EXCELLENT VERYGOOD

GOOD FAIR POOR

Parameters

Per

cent

age

ASIAN PAINTS

NEROLAC PAINTS

The second parameter, asked the respondent to judge the rate the innovative packaging of both the categories of paints.

In the Asian paint segment 36.5% and in the Nerolac paint segment 26.3% said that the company’s packaging was excellent.

30.8% and 39.8.3percentage respondents said that the company’s packaging was very good for Asian paints and Nerolac paints respectively. 26.4% and 26.3 % respondents said that the company’s packaging was good for Asian paints and nerolac paints respectively.

6.3% and 7.6% respondents were not satisfied with the availability of the paint, thus rated the company’s packaging as fair.


NEW / INNOVATIVE PACKAGING

36.5%

30.8%

26.4%

6.3%

0.0%

26.3%

39.8%

26.3%

7.6%

0.0%0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

EXCELLENT VERY GOOD GOOD FAIR POOR

PERFORMANCE

NO. O

F RE

SPO

NDEN

TS

ASIAN PAINTS

NEROLAC PAINTS

INTRODUCTION OF NEW PRODUCTS

The third parameter, asked the respondent to rate the frequency of introduction of new products for both the categories of paints.

In the Asian paint segment 25% and in the Nerolac paint segment 23.7% said that the frequency of introduction of new products was excellent. 37.5. % and 34.7% respondents said that the frequency of introduction of new products was very good for Asian paints and Nerolac paints respectively.

32.2% and 31.4% respondents said that the frequency of introduction of new products was good for Asian paints and nerolac paints respectively. 5.3% and 10.2% respondents were not satisfied with the frequency of introduction of new products, thus rated the company’s packaging as fair.

INTRODUCTION OF NEW PRODUCTS

25.0%

37.5%

32.2%

5.3%

0.0%

23.7%

34.7%31.4%

10.2%

0.0%

0.0%5.0%

10.0%15.0%20.0%25.0%30.0%35.0%40.0%

PERFORMANCE

NO

. OF

RE

SP

ON

DE

NTS

ASIAN PAINTS

NEROLAC PAINTS


CONTAINER SIZE

The fourth parameter, asked the respondent to rate the availability of paint in different container sizes as per their requirements for both the categories of paints.

In the Asian paint segment 20.2% and in the Nerolac paint segment 16.1% said that availability of paint in different container sizes was excellent. 39.4. % and 36.4. Percentage respondents said that the availability of paint in different container sizes was very good for Asian paints and Nerolac paints respectively.

33.2% and 35.6% respondents said that the availability of paint in different container sizes was good for Asian paints and nerolac paints respectively.

7.2% and 11% respondents were not satisfied with the availability of paint in different container sizes, thus rated the company’s packaging as fair. 0.8% respondents of Nerolac Paints were not at all satisfied with the availability of paint in different container sizes and thus rated this parameter as poor..


CONTAINER SIZE

20.2%

39.4%

33.2%

7.2%

0.0%

16.1%

36.4% 35.6%

11.0%

0.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

PERFORMANCE

NO

. O

F R

ES

PO

ND

EN

TS

ASIAN PAINTS

NEROLAC PAINTS

AVAILABILITY OF COLOR

The fifth parameter, asked the respondent to rate the availability of color of their choice for both the categories of paints.

In the Asian paint segment 39.4% and in the Nerolac paint segment 32.2% said that availability of color of their choice was excellent. 32.2. % and 40.7.% respondents said that the availability of color of their choice was very good for Asian paints and Nerolac paints respectively.

23.1% and 22% respondents said that the availability of color of their choice was good for Asian paints and nerolac paints respectively. 3.8% and 5.1% respondents were not satisfied with the availability of color of their choice, thus rated the company’s packaging as fair.

1.4% respondents of Asian Paints were not at all satisfied with the availability of color of their choice and thus rated this parameter as poor.

STAR ENDORSEMENT


AVAILABILITY OF COLOR

39.4%

32.2%

23.1%

3.8%1.4%

32.2%

40.7%

22.0%

5.1%

0.0%0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%


PERFORMANCE

NO

. OF

RE

SP

ON

DE

NT

S

ASIAN PAINTS

NEROLAC PAINTS

The sixth parameter, asked the respondent whether star endorsement for both the categories of paints affected their purchase.

In the Asian paint segment 36.5% and in the Nerolac paint segment 24.6% said that star endorsement was excellent and did affect their purchase.

On the other hand, 1.4% and 7.6% respondents were not at all satisfied with star endorsement and it did not even affect their purchase, thus rated it as poor.

STAR ENDORSEMENT

36.5%

32.2%

22.1%

7.7%

1.4%

24.6%

33.1%

25.4%

9.3%7.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%


PERFORMANCE

NO

. OF

RES

PON

DEN

TS

ASIAN PAINTS

NEROLAC PAINTS

VARIETY


The next parameter, asked the respondent to rate the variety for both the categories of paints. In the Asian paint segment 34.6% and in the Nerolac paint segment 22.9% said that variety of color excellent.

40.4% and 39.8.% respondents said that the variety of color of their choice was very good for Asian paints and Nerolac paints respectively.

18.8% and 25.4% respondents said that the variety of color was good for Asian paints and nerolac paints respectively. 5.8% and 9.3% respondents were not satisfied with the variety of color, thus rated the company’s packaging as fair.

0.5% and 2.5% of respondents of Asian Paints and nerolac paints were not at all satisfied with the variety of color and thus rated this parameter as poor.

PRICE RANGE


VARIETY

34.6%

40.4%

18.8%

5.8%

0.5%

22.9%

39.8%

25.4%

9.3%

2.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%


PERFORMANCE

NO

. OF

RE

SP

ON

DE

NT

S

ASIAN PAINTS

NEROLAC PAINTS

The next parameter, asked the respondent to rate the price range for both the categories of paints. In the Asian paint segment 26.9% and in the Nerolac paint segment 22% said that price range of color excellent.

36.5% and 30.5. Percentage respondents said that the price range of color of their choice was very good for Asian paints and Nerolac paints respectively. 25.5% and 32.2% respondents said that the price range of color was good for Asian paints and nerolac paints respectively.

11.1% and 14.4% respondents were not satisfied with the price range of color, thus rated the company’s packaging as fair.


PRICE RANGE

26.9%

36.5%

25.5%

11.1%

0.0%

22.9%

30.5%32.2%

14.4%

0.0%0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%


PERFORMANCE

NO

. OF

RE

SP

ON

DE

NTS

ASIAN PAINTS

NEROLAC PAINTS

ANNEXUR

E


Questionnaire for Channel Members

Name : Phone no :

Address: Organization :

1) What are the different brands, which you keep in stock?

2) Which brand is most asked by the customers

I) Asian paints ii) Nerolac ii i) Dulux IV)

others……………………………..

3) What is your average sales/month?

4) Which brand do you recommend to the customer and

why?

5) Do you get any credit period from the company?

a) YES b) NO

If Yes, What is the credit period you get?

i) Up to 15 days ii) 15-30 days


i i i) >30 days

6>What is your average order size?

7>at are the margins that you get from the company?

8) What is the average order cycle time taken by the company?

i) < 5 days ii) 5-10 days iii) > 10 days

9) Where would you rank the services/assistance provided to you

by the company/s

10) How will you rate the efficiency of your sales persons?

a) Very Good b) Good c) Satisfactory d) Poor

e) Very poor

11) Does company provides you with any assistance by means of

promotional activities.

a) YES b) NO

If Yes, Numbers, Timing, Quantity of promotions.

12) Do you provide appraisals to your sales persons?

a) YES b) NO

If Yes, on what Parameters?


13a) what kind of problem do you face in company’s distributing

channel?

b) What kind of problem do you face from customer? How do you

solve them?

c) How company helps you in it (a & b)?

14) Does the company provide any kind of training? If yes, what is the

motive of training?

15 a) Do you get incentive & commission?

b) What are the different kinds of incentive offered by company?

c) What is the criterion for the same?

d) How much incentive & commission do you earn annually?

e) How much sales target do you get?

f) Are you able to achieve sales target set by company?

g) How company helps you in achieving sales target?

_______________________________________________________

________________

Person contacted

…………………………………………………………..

Name of dealer:

……………………………………………………………..


Address:

………………………………………………………………..

Tel. No.: …………………………

Questionnaire for Company’s Sales Executive

Name : Phone :

Address: Organization:

1. What type of sales organization structure do you

possess?

2. What are the various channel structures in which you

operate?

3. What are the various criterion/terms and conditions of

selecting your channel members?

4. What is the average Inventory Size you keep?

5. What is the average Order Cycle time?

6. What are the various modes of transportation adopted

and cost incurred?


7. What are the methods of measurement and frequency

of providing appraisals to channel members?

8. What are the modes of by which you receive your

payments:

i) Advance payment ii) Payment on Delivery

iii) Credit payments

9. In case you provide the credit period, what is the time

limit?

i) upto15 days ii) 15-30 days

iii) >30 days

10. How frequently do you collect the feedback from

your Channel members?

i) Weekly ii) Quarterly

iii) Monthly

11. How will you rate and rank the following aspects

of your Channel Members:

Excellent Very

good

Good Fair Poor

Dealer’s

Efficiency

Timely

payment


Transporters

behavior

K

12. What are the margins you provide to your Channel

Members?

13. How do you assign targets to your sales

personnel’s and what type of targets?

14. Do you support your Channel Members by

promotional activities?

a) YES b) NO

If Yes, i) Number of Promotions.

ii) Timing of Promotions.

ii i) Quantity of Promotions.

15. Have you ever gone for market research?

a) YES b) NO

If Yes, w.r.t. whom?

Customers

Channel Members

General market survey

Hidden survey rate price and margins

16. i) What type of market research was it?


i i) What was your budget? depend upon survey

17. How frequently you go for market research? Annually

may be twice

Name of Respondent: ……………………………………………………

Name of

Organization:……………………………………………………

Designation: ……………………………………………………

Address: …………………………………………………….

Tel. No.: …………………………………………………….


QUESTIONNAIRE:CUSTOMER

NAME: __________________________

AGE: ______

GENDER: ___ MALE ___ FEMALE

1) Which brand of paints do you prefer?

a) Asian Paints b) Nerolac Paints c) Others ____________

2) What do you do if you do not get the desired paint?a) Move to next shopb) Take any other paintc) Take any other color of the desired paint

3) Who influenced you to buy this brand?

a) Shopkeeperb) Relativesc) Friendsd) Endorsere) Kids


f) Painter

4) What do you prefer:-a) White Wash b) Touch Ups

5) How frequently do you get your house white washed/touch ups?

a) Half yearlyb) Yearlyc) Once in two yearsd) Once in three yearse) Occasionally

6) In considering the performance how would you rate the company as per following scale:

1-Excellent 2-Very good 3-Good 4-Fair5-Poor

S.NO PARAMETERS ASIAN PAINTS

NEROLAC PAINTS

1. Availability of the product

2. New/innovative packaging

3. Introduction of new products

4. Container size

5. Availability of color

6. Star endorsement


7. Variety

8. Price range



Documents

SAIKANnerolac Project - Copy