Summer Internship Project on Berger Paints India Ltd. Marketing

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Summer Internship Project on Berger Paints India Ltd. Marketing

  1. 1. ANALYSIS OF COMPETITOR CONTRACTORS AND ANALYSIS OF EXISTING CONTRACTORS ENGAGED IN LOYALTY PROGRAM OF BERGER PAINTS Md. Eusuf Sheikh
  2. 2. Institute of Engineering and Management II ANALYSIS OF COMPETITOR CONTRACTORS AND ANALYSIS OF EXISTING CONTRACTORS ENGAGED IN LOYALTY PROGRAM OF BERGER PAINTS SUMMER INTERNSHIP PROJECT REPORT SUBMITTED TOWARDS PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION IN MARKEING AND FINANCE (Approved by AICTE, Govt. of India) ACADEMIC SESSION 2012-2014 Submitted By: MD. EUSUF SHEIKH Roll No.: MBA/12/038 University Roll No.: 10400912019 University Registration No.:121040710019 Company Guide Faculty Guide Name: Mainak Ghosh Name: Shamik Pal Designation: Divisional Sales Manager Name of Company: Berger Paints India Ltd.
  3. 3. Institute of Engineering and Management III DECLARATION I hereby declare that the project work entitled “Analysis of Competitor Contractors and Analysis of Existing Contractors Engaged in Loyalty Program of Berger Paints” submitted to as a part of the MBA curriculum, is a record of an original work done by me under the guidance of Prof Shamik Pal (Faculty Guide, Institute Of Engineering and Management) and Mr. Mainak Ghosh (Company Guide, Berger Paints India Ltd) and this project work is submitted in the partial fulfillment of requirement for the award of the degree of Masters of Business Administration. The results embodied in this project have not been submitted to any other university or company for the award of any degree or diploma. __________________ Md. Eusuf Sheikh
  4. 4. Institute of Engineering and Management IV ACKNOWLEDGEMENT With immense pleasure, I would like to present this project report for Berger Paints India Ltd. It has been an enriching experience for me to undergo my summer training at Berger Paints India Ltd, which would not have been possible without the goodwill and support of the people around. As a student of “Institute Of Engineering And Management”, Kolkata I would like to extend my sincere gratitude and thanks to Mr. Mainak Ghosh (Divisional Sales Manager, Berger Paints India Ltd.) and Prof. Shamik Pal (Faculty Of Management, IEM College Of Management) to shape my understanding towards the project. It was because of their immense help and support that this project has been duly completed. However, I accept the sole responsibility for any possible error and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice. Md. Eusuf Sheikh
  5. 5. Institute of Engineering and Management V Executive Summary
  6. 6. Institute of Engineering and Management VI Title: Analysis of Competitor Contractors and Analysis of Existing Contractors Engaged in Loyalty Program of Berger Paints. Organization: Berger Paints India Ltd. Objective: In the current scenario of paint industry the game changers are the contractors. The company which has the maximum number of contractor will lead the market. The aim of the project was to conduct a dealer survey competitor to Berger in Rajarhat and Salt Lake region and collect contact information of competition contractors so as to determine the potential contactors and immediately try to convince them to work with Berger Paints. The second objective of the project was to aware the existing Berger Paints contractors about “Lift and Win” scheme- a loyalty program and make them understand the benefits of scheme. Research Methodology: The research conducted was a descriptive one. The data have been collected with the help of questionnaires contractors. The questionnaire mainly had open ended question. Findings:  Asian Paints is the market leader followed by Berger Paints and ICI Dulux. Contractors are more satisfied with products, loyalty programs and communication level of Asian Paints.  Berger’s new product range is satisfactory. With lucrative schemes and better communication competitor contractors can be converted in Berger.  There is communication gap with dealers sometime and mostly with contractors. Schemes and benefits are not well communicated to contactors. Contractors are unsatisfied with delay in getting their reward. Demand generators mostly failed in communicating with contactors. Due to all this reasons Berger’s existing contractors are working less with Berger paints.  Berger Paints new call centre where reward points can be uploaded is mostly accepted and appreciated among the contactors but the contactors are unable to know any data regarding their point tally from anywhere. Recommendations:  Aggressive marketing for promotion of Berger Paints.  Lucrative and effective loyalty schemes for new and existing contractors.  Better communication with dealers and contractors.  Timely payments of rewards.  Effective and fast reward collection mechanism.
  7. 7. Institute of Engineering and Management VII TABLE OF CONTENT Chapter No. Contents Page No. 1. Introduction 1-2 2. Industry Overview 3-8 3. Company overview 9-15 4. Research Methodology 16-19 5. Data Analysis , Results and Interpretation 20-31 6. Observations and Findings 32-33 7. Limitations & Scope of Study 34-35 8. Recommendations 36-37 9. Bibliography 38-39 10. Appendix 40-42
  8. 8. Institute of Engineering and Management 1 Chapter-1 Introduction
  9. 9. Institute of Engineering and Management 2 1.1 Background: In paint industry there is always neck to neck fight of branded companies. This project which was undertaken as a part of the MBA curriculum was aimed at analyzing the competitor contractors and also communicating a loyalty program scheme to the existing contractors of Berger Paints. 1.2 Purpose: The purpose of this project is to provide suggestions and recommendations to the company Berger Paints to groom its strategy for existing and competitor contractors. 1.3 Scope:  The various scope of the study is listed below:  It gives us information about the various categories of the contractors on the basis of their total purchase.  It gives us information about the proportion of dedicated Berger Paints contractors.  It gives the information regarding the preference and choices of the different contractors.  It gives the information regarding the simplicity and easy accessibility loyalty program.  It gives us information that how much effective the loyalty scheme of Berger Paints are as a promotional strategy to retain their existing contractors. 1.4 Salient Contributions:  Increase the awareness or necessary information to gain the competitive advantage over the competitor brands.  Increase the sales volume to due to effective loyalty program execution.
  10. 10. Institute of Engineering and Management 3 Chapter-2 Overview of the Paint Industry in India
  11. 11. Institute of Engineering and Management 4 2.1 Brief Description The Indian Paint industry, estimated to be a Rs.21,000 Cr. industry, has been growing at a rate of above 15% for the past few years. The organized players of the industry cater to about 65% of the overall demand, whereas the unorganized players take care of the remaining 35%, in value terms. The unorganized players mainly dominate the distemper segment. The industry consists of two segments, namely  Decorative segment – caters to the housing sector and  Industrial segment - consists of powder coatings, floor coatings and other protective coatings catering to the automobile, marine and other industries. In the domestic market, Decorative segment accounts for 70% of the total demand for paints whereas the industrial segment accounts for the remaining 30%. Globally, the demand for paints is almost equally distributed, where both the segments account for close to 50% of demand. The paint industry volume in India has been growing at 15% per annum for quite some years now. As far as the future growth prospects are concerned, the industry is expected to grow at 12-13% annually over the next five years. FY11 was a challenging year for the industry as a whole due to subdued demand across key sectors and rising inflation.
  12. 12. Institute of Engineering and Management 5 2.2 Industry Structure Indian Paint Industry is over 100 years old. Its beginning can be traced back to the setting up of a factory by Shalimar paints in Calcutta back in 1902. Till the Second World War the industry consisted of small producers and two foreign companies. After the war, the imports stopped which led to the setting up of manufacturing facilities by local entrepreneurs. Still the foreign companies continued to dominate the market, which in a way is the current scenario as well. The initial decades saw the complete dominance of British Paint companies such as Goodlass Walls (now Goodlass Nerolac), ICI, British Paints (now Berger Paints), Jenson & Nicholson and Blundell & Eomite. The Indian Paints sector is valued at Rs 6,800 crores in value terms and is very fragmented. The current demand is estimated to be around 650,000 tonnes per annum and is seasonal in nature. The per capita consumption of paints in India stands at 1.0-kg p.a. as compared to 1.6 kg in China and 22 kg in the developed economies. India's share in the world paint market is just 0.6%. The Indian Paint industry can be divided as:  The organized sector comprising of large and medium size units  The unorganized or the small scale sector. There are now twelve players in the organized sector with a market share of 70%. This is in contrast to the 55% share that the sector commanded a few years back. Major companies in this segment include Asian Paints (44% market share), Berger Paints (17% market share), ICI (12% market share), Goodlass Nerolac (15% market share), Jenson Nicholson (6% market share), Shalimar Paints and Rajdoot Paints. The organized sector has grown at a CAGR of 11.5% in the last five years. The unorganized sector comprising of over 2000 units has a combined market share of around 30%. The major players are Asian Paints, Goodlass Nerolac, Berger, ICI and Shalimar. Recently, world leaders like Akzo Noble, PPG, Dupont and BASF have set up base in India with product ranges such as auto refinishes powders and industrial coatings. Kansai Paints of Japan, which entered into collaboration with Goodlass Nerolac in 1984, is now the holding company for Goodlass Nerolac with 64.52 % equity holding. PPG has a joint venture with Asian Paints to manufacture industrial coatings. Jenson & Nicholson and Snowcem India are no longer active players because of dwindling sales in recent years. In the 1990s, helped by a growing economy, the paint industry had recorded a healthy growth of 12- 13 % annually. This was mainly due to a drastic reduction in excise from a staggering 40% to 16%. However, the growth was restricted in 2000-03 to single digits. There was a revival in 2003-2004 with a robust growth of 13%.8.The per capita consumption of paint in India is 700 grams against 19 kg in the U.S., and 2.7 kg and 5.8 kg in other developing countries like China and Brazil. As the consumption goes with affordability, the low Indian figure is not a surprise. High excise duties, low technology and low capital costs for production led to the incidence of a high number of units in the small scale sector. However, since 1992 the
  13. 13. Institute of Engineering and Management 6 government has been consistently lowering duties from 40.5% in 1992 to around 16% currently. This has led to lowering of price differential between the organized and unorganized sector. Moreover the paints sector was also allowed to claim MODVAT credit on petro-based products, thus lowering the excise incidence further. 2.3 Drivers to the growth of the Paint Industry 1. Increasing level of income and education 2. Increasing Urbanization 3. Increasing share of organized sector 4. Development of the Realty, Automobile and Infrastructure sector 5. Availability of financing options 6. Increasing Penetration in the Rural Markets 2.4 Main Concerns of the Paint Industry • Cost of raw materials • MNC’s entering the Indian Paint Market 2.5 Paint Industry Prospects  The market for paints in India is expected to grow at 1.5 times to 2 times GDP in the next five years. With GDP growth expected to be over 7% levels, the top three players are likely to clock above industry growth rates, especially given the fact that protection that was available to unorganised players has come down significantly.  Decorative paints segment is expected towitness higher growth going forward. The fiscal incentives given by the government to the housing sector have benefited the housing sector immensely. This will benefit key players in the long term.  Although the demand for industrial paints is lukewarm it is expected to increase going forward. This is on account of increasing investments in infrastructure. Domestic and global auto majors have long term plans for the Indian market.
  14. 14. Institute of Engineering and Management 7 2.6 Top Paint Brands in India 2.6.1 Kansai Nerolac: The history of Nerolac Paints dates back to 1920. Nerolac Paints was established as Gahagan Paints and Varnish Co. Ltd. in Mumbai. In 1933, it was renamed to Goodlass Wall India Ltd. and later became GoodlassNerolac Paints Pvt. Ltd in 1957. And recently in 2006, it acquired the present name Kansai Nerolac Paints Ltd. Kansai Nerolac Paints is a subsidiary of Japan based Kansai Paint Company Limited that is one of the top ten coating companies in the world. Nerolac is the second largest in India with a leading position in industrial and automotive paints and also in powder coatings. 2.6.2 Berger Paints: Berger Paints was the creation of Mr. Lewis Berger, who in 1760, through his shades had offered people a chance to transform their homes through the power of imagination. Berger Paints India Limited has been in India since 1923. In 1991, the stake of the Company was purchased, by Mr. K S Dhingra, Mr. G S Dhingra and their associates. 2.6.3 ICI: ICI is a major paints, adhesive and specialty products business with products and ingredients developed for a wide range of markets. ICI is present in Asia Pacific, Europe and the Americas. However, in the beginning of 2008 ICI became a part of Akzo Nobel, the world’s largest coatings manufacturer, the number one in decorative paints and performance coatings, and a leading supplier of specialty chemicals. 2.6.4 Asian Paints: Asian Paints Ltd. was established in 1942. More than half a century down the lane, Asian Paints is India’s largest and Asia’s third largest paint company today. Asian Paints operates in 22 countries and has 29 paint manufacturing facilities in the World. Besides Asian Paints, the group operates around the world through its subsidiaries, Berger International Limited, Apco Coatings, SCIB Paints and Taubmans. Asian Paints along with PPG Inc, USA is one of the leading manufacturers of automotive coatings in the world. Asian Paints Industrial Coatings Limited caters to the Industrial coatings market and has tied-up with Protech Chemicals, a world leader in powder coatings.
  15. 15. Institute of Engineering and Management 8 2.7 Other Best Selling And Leading Paint Companies  Artilin Paints India Limited  Agsar Paints Pvt. Ltd  Brilliant Coatings (P) Ltd  Classic Paints  FCL Technologies & Products Ltd,  Grand Polycoats Company Pvt. Ltd  Indolac paints  JayantColor& Chemical Industries  Jenson & Nicholson,  Metcon Coatings & Chemicals (India) Pvt. Ltd 2.8 Future of Paint Industry in India The Indian paint Industry has a wide potential for growth which is demonstrated by the fact that the per capita consumption of paint in India is merely around 1 kg as compared to about 20 kg in the developed countries or a global average of about 15 kg. So, the absolute consumption of paint in India is definitely expected to rise. The market share of the organized sector is on an increasing trend. Also, the contribution of industrial segment will increase with the continuing economic development of the country. With India moving towards becoming a developed economy, the decorative to industrial paint ratio of 70:50 is expected to move towards the global average of 50:50. Thus the Indian paint industry is in its growth phase and is expected to grow at a rate faster than that of GDP. The future prospects of the industry are strong.
  16. 16. Institute of Engineering and Management 9 Chapter-3 Company Overview
  17. 17. Institute of Engineering and Management 10 3.1 Profile Established in 17th December, 1923, the company then known as Hadfiled's (India) Limited; was a small paint company based in Kolkata having its only manufacturing facility at Howrah, West Bengal to produce ready mixed stiff paints, varnishes and distempers. Post independence, towards the end of 1947, British Paints (Holdings) Limited, U.K acquired Hadfield's (India) Limited and thus British Paints (India) Limited was incorporated. From a production capacity of 150 tonnes and sales turnover of around Rs. 25 lakhs in 1947, the company has come a long way to become at one point of time; a part of the worldwide BERGER group in 1983 and thereby acquiring its present name Berger Paints India Limited to having subsequently gone through further ups & downs as well as ownership changes to gain its present status wherein the majority stake is with Delhi based Dhingra brothers and business revenue close to Rs.2000 crs. Today Berger Paints India Limited, having solely used and developed the name and trademark BERGER and all its variants in India, is a household name in paint. With Head Office in Kolkata the company manufactures and markets a range of decorative & industrial paint products under various product brands and has it operations spread throughout the length & breath of the country; with seven manufacturing facilities in India and more than 82 depots, several regional & area offices, besides four facilities overseas. It has a workforce of over 2300 employees and a countrywide distribution network of 12000 plus dealers. Berger Paints has clearly demonstrated its commitment to Indian consumers for over 85 years, by offering its varied range of high performing quality products backed by highest level of customer service. Company's high ethical standards in business dealings and its on- going efforts in community welfare make Berger Paints India Limited a responsible corporate citizen. While the company's decorative and Industrial paints continue to gain an increasing market share, Berger as an organization has managed to achieve sustainable competitive advantage through innovations in all spear of business, desire to excel and by creating a winning culture & abiding faith in its values & philosophy among all its stakeholders. With Berger Paints you can now see your imagination of colour unfurl in front of your eyes and watch your home come alive telling a thousand tales. Transform you home with the POWER OF IMAGINATION.
  18. 18. Institute of Engineering and Management 11 3.2 Philosophy 3.4 History and Milestones The name Berger or Lewis Berger is today synonymous with colour worldwide. But actually the origin of the name dates back to over two & a half centuries in England in 1760, when a young colour chemist named Lewis Berger, started manufacturing in Europe, 'Prussian blue' using a secret process that every designer and householder coveted. Mr. Berger perfected this process & art of the blue colour, which was the colour of most military uniform of that time. Enriched by the imagination of Lewis Berger, the unending quest for creation and innovation in the world of colour & paints still continues. The history of Berger Paints India Limited as a company started in 1923 as Hadfield's (India) Limited which was a small colonial venture producing ready- mixed stiff paints, varnishes and distempers setup on a 2 acres of land in one of India's first industrial towns close to Kolkata in Howrah, Bengal. Subsequently in 1947, British Paints (Holdings) Limited, an international consortium of paint manufacturing companies bought over Hadfield's (India) Limited and thus the name changed to British Paints (India) Ltd. The gentleman who took over, as its first managing director was Mr. Alexender Vernon Niblet, an Englishman who was later on followed by Mr. Alfred Godwin in 1962. Further in the year 1965, the share capital of British Paints (Holdings) Limited was acquired by Celanese Corporation, USA and the controlling interest of British Paints (India) Ltd was acquired by CELEURO NV, Holland, a Celanese subsidiary.
  19. 19. Institute of Engineering and Management 12 Subsequently in 1969, the Celanese Corporation sold its Indian interests to Berger, Jenson & Nicholson, U.K. Then onwards the company British Paints (India) Ltd became a member of the worldwide BERGER group having its operations across oceans in numerous geographies and this marked the beginning of Lewis Berger's legacy in India – which the company would later take forward to enviable heights. From 1973 the company entered into one of its dynamic phases of business with introduction of new generation products in the industrial, marine and decorative segments under the able leadership of it first Indian Managing Director Mr. Dongargaokar Madhukar. Year 1976 was another turning point in the history of the company when the foreign holding in the company was diluted to below 40% by sale of a portion of the shares to the UB Group controlled by Mr. Vittal Mallya. The reins of the company were taken over by Mr. Biji K Kurien as its Chief Executive & Managing Director in the year 1980. Finally in the year 1983, the British Paints (India) Limited, changed its name to Berger Paints India Limited. The entire 80s & 90s saw the lunch of many new products from company's stable such as premium emulsions and high quality acrylic distempers. The COLOUR BANK tinting system was launched through which the consumer could select from a range of over 5000 shades. Again the fortunes of the company changed hands in 1991 with UB Group's stake in the company bought over by the Delhi based Dhingra brothers, Mr. K.S.Dhingra & Mr. G.S.Dhingra and their associates of the UK Paints Group. Presently Dhingras' control a majority stake of almost 73% in Berger Paints India Limited, which is a professionally managed organization, headquartered in Kolkata, with the stewardship resting since 1994 with the current Managing Director Mr. Subir Bose. James Wilfred Adamson, founder of the British Paints Organization, embarked on his career as a traveling salesman. Adamson bought his first Oil and Colour business in 1909. By 1917 Adamson owned paint manufacturing companies in Rhodesia, Canada and the Caribbean. Elsewhere an Englishman, Mr. Hadfield, set up Hadfield's (India) Limited on 17 December, 1923, a small paint company in Calcutta. Towards the end of 1947 British Paints acquired Hadfield's (India) Limited and thus British Paints (India) Limited was incorporated in the State of West Bengal. What British Paints, (Holding), UK acquired was a company which at that time produced 150 tonnes of ready mixed stiff paints, varnishes and distempers. Our 1947 sales were a princely RS.25 lakhs, with total employee strength of 100. The first Managing Director of British Paints was Mr. A. V. Niblett.
  20. 20. Institute of Engineering and Management 13 3.5 Board of Directors  Mr. Kuldip Singh Dhingra (Chairman)  Mr. Gurbachan Singh Dhingra (Vice-Chairman)  Mr. Abhijit Roy (Managing Director)  Mr. Subir Bose (member in the Board of the Company.)  Mr. Anil Bhalla  Mr. Gerald Kenneth Adams  Mr. Gurcharan Das  Mr. Kamal Ranjan Das  Mr. Pulak Chandan Prasad  Mr. Srijit Dasgupta  Mrs. Rishma Kaur  Mr. Kanwardeep Singh Dhingra 3.6 Berger’s Presence in India
  21. 21. Institute of Engineering and Management 14 3.7 Berger’s Presence All over the World 3.8 Berger Performance  Berger Paints India Ltd.(BPIL) is the 2nd largest paint company in India  15000 plus paint retailers, 85 stock points, 6 RCDs, 7 production units  Total consolidate gross turnover of 3500 crs in 2012-13  Recorded the fastest growth in the decorative paint segment in India growing @ 20%
  22. 22. Institute of Engineering and Management 15 3.9 Product Range: Category Products INTERIOR WALL COATING Interior Emulsion Silk, Breathe Easy, Rangoli Easy Clean, Rangoli Super Acrylic Emulsion, Bison Acrylic Emulsion Designer Finishes Illusions, Illusions Imagine, Metallica, Marble Distemper Bison Distemper, Jadoo Acrylic Distemper EXTERIOR WALL PAINT Primer Weathercoat Biowash, Weathercoat Exterior Wall Primer Exterior Emulsion Weathercoat Allguard, Weathercoat Smooth, Weathercoat Longlife, Weathercoat Tile Protector METAL AND WOOD PAINTS Enamel Breathe Easy Enamel, Luxol Satin Enamel, Luxol Highgloss Enamel Clear Wood Woodpecker PU Legend, 3 Pack Polyester Coating, 2 Pack PU System CONSTRUCTION CHEMICAL Cement Mix Plus
  23. 23. Institute of Engineering and Management 16 Chapter-4 Research Methodology
  24. 24. Institute of Engineering and Management 17 4.1 Research objective:  The prime objective of this study was to analyze the taste and preference of the competition contractors of Berger Paints, their contribution to the sales volume and their expectations from the company.  Second objective of the project was to aware the existing Berger Paints contractors about “Lift and Win” scheme- a loyalty program and make them understand the benefits of scheme and its effect on market share. 4.2 Research plan: 4.2.1 Competitor contractor analysis: The flowchart of my research plan is as follows: Dealer Contractors Call by phone Wrong number not interested interested or available out of station busy Noted down reported Questionnaire filled up queued queued and complain taken
  25. 25. Institute of Engineering and Management 18 4.2.2 Existing contractor analysis: contractors 4.3 Research design: Competitor contractor analysis: Descriptive research design 4.4 Data type:  Primary data  Secondary data 4.5 Data Collection tools: 1. Primary data:  Questionnaire method: A questionnaire was prepared to get required information for analysis.  Interviews- structured and unstructured 2. Secondary data: Secondary data collected from various websites mentioned in References. 4.6 Data Collection Method: 4.6.1 Competitor contractor analysis: Primary Data: interview, direct interaction and survey different contractors. Secondary data: internet, departmental records. 4.6.2 Existing contractor analysis: Primary data: direct interaction Contractors Interested Not interested Fixation of appointment Enrollment in scheme Feedback taken
  26. 26. Institute of Engineering and Management 19 4.7 Sampling Plan:  Sampling frame:  Unit : competitor contractor, existing contractor  Size : Competitor contractor-147 Existing contractor-30  Method: Convenient sampling. 4.8 Data analysis techniques to be used:  Bar Chart  Pie Chart
  27. 27. Institute of Engineering and Management 20 Chapter-5 Data Analysis, Results and Interpretation
  28. 28. Institute of Engineering and Management 21 5.1 Competitor contractor analysis: The questionnaire that has been used in the survey is as given below. It has been prepared under the guidance of my industry mentor. Q.1) Which Product do you deal with? Interpretation:  Most competition i.e. 50% of the contractors work with Asian Paints followed by ICI used by 39% contractors and Nerolac used by 6%.  ICI emerging as a great threat to Berger. 55% 39% 6% Product dealt with Asian Paints ICI Nerolac
  29. 29. Institute of Engineering and Management 22 Q. 2) Purchase of paints p.a.? The contractors have been divided into categories on the basis of their total annual purchase of different types of paints. There are mainly five categories:- Category D – below Rs 1,20,000 Category C – between Rs 1,20,000 and Rs 2,50,000 Category B – between Rs 2,50,000 and Rs 5,00,000 Category A – between Rs 5,00,000 and Rs 10,00.000 Category A+ - Above 10,00,000 Interpretation:  According to the analysis 29%, 34%, 23%, 11% and 3% of the contractors fall in the categories A+, A, B, C and D respectively.  Major section of the contractors have an annual purchase of above Rs 5,00,000. A+ A B C D 0 10 20 30 40 50 60 Category Distribution of Contractors Category Distribution of Contractors
  30. 30. Institute of Engineering and Management 23 Q. 3) Are you enrolled with any loyalty program? Interpretation:  69% of the competitor contractors are enrolled in some loyalty program.  23% contractors are not enrolled in any scheme and 8% of contractors are unaware of loyalty program. So Berger Paints can convert these competitor contractors into Berger painter with lucrative loyalty scheme. 69% 23% 8% Enrolled with Loyalty Program Enrolled Not Enrolled Unknown
  31. 31. Institute of Engineering and Management 24 Q. 4) Contractors enrolled in various brand loyalty program? Interpretation:  Among the enrolled various contractors majority of the contractors enrolled are in Asian Paints Master Stroke with a majority of 62% from its rivals.  Next followed by ICI Color Merchant with a majority of 32%.  The remaining 6% of the contractors are enrolled with others brand. 62% 32% 6% Various Brand Loyalty Program Master Stroke Color Merchant Others
  32. 32. Institute of Engineering and Management 25 Q. 5) Manpower associated under contractors? Interpretation:  40% contractors have 5 to 15 painters working under them so these contractors take 2 or 3 individual house project at a time.  32% contractors have 15 to 25 painters working under them. These contractors have capacity of taking medium projects like stand alone flats.  20% contractors have 5 or less painters working under them. These contractors take very small projects.  8% contractors have 25 or more painters working under them. These contractors have capacity of taking big projects like housing complex, housing society etc. 16% 43% 33% 8% Manpower Associated under Contractors Below 5 5 to 15 15 to 25 Above 25
  33. 33. Institute of Engineering and Management 26 Q.6) perception about Berger Paints: Interpretation:  45% of the competitor painters are using Berger Paints as their secondary product. They may increase uses of Berger Paints according to their needs and satisfaction.  2% of contractors are not interest at all in Berger products. They are using their respecting brands with great satisfaction.  20% of the contractors used work with Berger Paints but for some dissatisfying reasons they are not using Berger paints anymore.  31% of the contractors want to use Berger paints for their new and improved product rand if they get some lucrative offers. 2% 20% 47% 31% Perception about Berger Paints Not interested Used to work with Bereger Use Berger as secondary product Willing to work with Beger
  34. 34. Institute of Engineering and Management 27 Q. 7) Reason behind not using Berger paints. Interpretation:  18% of the competitor contractors do not use Berger paints due to product quality.  21% of the competitor contractors do not use Berger paints due to Berger dealer behaviour.  17% of the competitor contractors do not use Berger paints due to availability of product in their area.  44% of the competitor contractors do not use Berger paints because they are not interested at all in Berger paints they are happy with their respective brand. 18% 21% 17% 44% Reason behind not using Berger paints Product Quality Dealer Behavior Non-availability Not interested
  35. 35. Institute of Engineering and Management 28 5.2 Existing Contractors analysis: In the loyalty program scheme Berger Paints take a great initiative to open a call centre where contractors can upload their points by themselves by calling at call centre and inform about their product lifting. The questionnaire is based on that. Q. 1) What’s your preferable mode of uploading point? Interpretation:  Maximum no of contractors prefer to upload their point by themselves as they do not want leave their benefits on dealer’s hand.  20% of the contractors depend on their respective dealers as they believe their dealers or they think it is a complicated process. 24 6 0 5 10 15 20 25 30 By Self By Dealer Point Uploading Mode Point Uploading Mode
  36. 36. Institute of Engineering and Management 29 Q. 2) How frequent do you upload your points? Interpretation:  77% of the contractors engage themselves in uploading their points rarely.  Only 20% of the contractors upload their point regularly  Around 3% of the contractors are not interested in uploading points. 20% 77% 3% Uploading of Points frequently Rarely Not Interested
  37. 37. Institute of Engineering and Management 30 Q.3) Difficulties faced in uploading points at call centre. Interpretation:  13 % of contractors are facing language barrier i.e. the operators at call centre greets them in language which is uncomfortable for them.  30 % of the contractors fail to give the exact product details at the time of uploading points.  57 % of contractors don’t get the information about their rewards point. 13% 30%57% Problem faced at call centre Language Product Details Necessary Information
  38. 38. Institute of Engineering and Management 31 Q.4) Which benefit you prefer most? Interpretation:  17 % of the contractors want quantity discount.  23% of the contractors want price discount.  60% of the contractors want assured gift in the loyalty program. 17% 23% 60% Most prefer benefits Quantity discount Price discount Assured gifts
  39. 39. Institute of Engineering and Management 32 Chapter-6 Observations and Findings
  40. 40. Institute of Engineering and Management 33 6.1 Competitor Contractors:  Majority of the competitor contractors lift product of value more than 5 lakhs annually.  Majority of competitor contractor are working with Asian Paints as they are satisfied with the product quality and loyalty scheme of Asian Paints.  Few dissatisfy contractors had a complaint that the coverage of paints of Berger is less as compared to what it had been previously. This has led to the loss of many dedicated contractors of Berger who are now shifting towards Asian Paints and ICI.  ICI is growing very fast which is a threat to Berger Paints.  According to the survey most of the competitors contractors don not use Berger because they are unsatisfied with the behavior of their local area Berger dealers.  Survey shows that another section of competitor contractors do not use Berger Paints due to non availability of Berger Paints dealer in their area.  Brands like Nerolac and Shalimar are hardly preferred. 6.2 Existing Contractors:  The contractors have a complaint that there is a communication gap between the representatives or executives of Berger and the contractors. Many contractors left Berger for the communication gap.  Most of the contractors have complaint that they don’t get their loyalty scheme rewards in time.  Major section of existing contractors is happy about the process of uploading points in call centre as they don’t have to depend on dealers.  As most of the contractors are not used to call centre process they feel uncomfortable uploading points at call centre.  On the basis of the survey conducted it’s found that major section of the revenue of Berger Paints comes from Interior and Exterior paints.  Shade cards i.e., those cards which contains all the different shades of colors, are not easily available to the contractors.  Most of the contractors are satisfied with the paint quality of Berger, mostly the primer.  Most of the contractors are less educated and they do not show their interest towards scheme as they feel it is a complicated process.  Lack of trust between dealer and contractors regarding point upload.  Few painter meet takes place so problem encountered by the contractors on regular basis remain unattendent.
  41. 41. Institute of Engineering and Management 34 Chapter-7 Limitations & Scope of Study
  42. 42. Institute of Engineering and Management 35 7.1 Limitations:  Only 65 contractors and 35 interior decorators have been visited, which comprises a very small sample.  Survey area was confined to south Rajarhat, Salt Lake and B.T. Road.  Survey was totally confined within small level contractors, but a huge sale which is contributed by the real estates, builders etc are not investigated.  Time span was limited to 2 ½ months.  Questions were mostly open ended.  Some of the painters were reluctant in providing the information due to lack of trust and familiarity with me.  Some of the painters were inflating their monthly usage volumes. 7.2 Future Scopes:  This study can be used by the company to convert more contractors into dedicated Berger paints customers.  Analyze the requirements of the competitor contractors and devise strategies of new market penetration.  Make a quantitative research and analysis of the effectiveness of the advertisements of Berger Paints.
  43. 43. Institute of Engineering and Management 36 Chapter-8 Recommendations
  44. 44. Institute of Engineering and Management 37 Berger Paints is a preferred brand in India but on the basis of the survey there are some fields that are yet to be more emphasized which can improve the sales volume in the near future are stated as follows :-  Berger Paints should maintain the quality of the paint to satisfy the existing and new customers. Versatility of the designs should be increased and lucrative schemes should be offered to attract new customers.  Sales promotion committee should be formed to formulate and implement new market strategies to compete with competitors and to extent the market share.  Company must increase their dealership network so that desirable contractor and consumers who wants to buy or use Berger paints can be reached easily.  Both Dealers and Contractors who have been interviewed have a common complain that there is not much interactions from the company. So Sales Officers and Demand Generators should be in a regular touch with their customers. Regular interactions are necessary as a part of after sales service which can bring more sales later.  Painters need should be identified and schemes framing should be like that the painters get motivated to satisfy their needs.  Efforts should be made so that the applicators are made aware of the various new schemes and new product launches and these must be completely entertained by the company by the help of personal meeting as most of the contractors are less educated to understand the procedure.  Painters meet should take place on regular interval to help the painters as it helps to promote brand as well as it maintain company goodwill.  Berger Paints should introduce card system for uploading points as it is easy and most preferred medium among the contractors.  Effective and fast reward collection mechanism should be there to keep the contractors engage in the loyalty programs.
  45. 45. Institute of Engineering and Management 38 Chapter-9 Bibliography and Reference
  46. 46. Institute of Engineering and Management 39 9.1 Bibliography 1. Marketing Management: A South Asian Perspective by Philip Kotler, Abraham Koshy, Kevin Lane Keller, Mithileswar Jha 2. Marketing Research: An Applied Orientation by Naresh K. Malhotra, Satyabhushan Dash 3. Advertising and Promotion by Keyoor Purani, George E Belch, Michael A Belch 9.2 Reference 1. http://en.wikipedia.org/ 3. http://www.scribd.com/ 4. http://www.slideshare.net/ 5. http://www.bergerpaints.com/ 6. http://www.monwyworks4me.com/
  47. 47. Institute of Engineering and Management 40 Chapter-10 Appendix
  48. 48. Institute of Engineering and Management 41 10.1 APPENDIX –I NAME: …………………………………………………………………………………….. ADDRESS: …………………………………………………………………………........... MOBILE NO: ………………………………………… …………………………………... DEALER: ………………………TERR: ……………………DEPOT: …………………… 1) WHICH PRODUCT DO YOU DEAL WITH? i) Asian Paints ii) Nerolac iii) ICI iv) Shalimar 2) PURCHASE OF PAINTS P.A.? ……... 3) ARE YOU ENROLLED WITH ANY LOYALTY PROGRAM? i) Yes ii) No 4) WHICH LOYALTY PROGRAM YOU ARE ENROLLED WITH? i) Master Stroke ii) Color Merchant iii) Other 5) NO OF PERMANENT APPLICATORS WORKING UNDER YOU: ……... 6) YOUR PERCEPTION ABOUT BERGER PAINTS. ………………………………………………………………………………………………… ……………………………………………………………………………………………… 7) WHAT ARE THE REASON BEHIND NOT USING BERGER PAINTS? a) ………………………. b) ………………………. c) ………………………. d) ……………………….
  49. 49. Institute of Engineering and Management 42 10.2 APPENDIX-II NAME: …………………………………………………………………………………….. ADDRESS: …………………………………………………………………………............ MOBILE NO: ………………………………………… …………………………………... DEALER: ………………………TERR: ……………………DEPOT: …………………… 1) WHAT’S YOUR PREFERABLE MODE OF UPLOADING POINT? i) By Self ii) By dealer 2) HOW FREQUENT DO YOU UPLOAD YOUR POINTS? 3) WHAT DIFFICULTIES FACED IN UPLOADING POINTS AT CALL CENTRE. I. …………………................ II. …………………………… III. ...…………………………. 4) WHICH BENEFIT YOU PREFER MOST IN LOYALTY PROGRAM? i) Quantity discount ii) Price discount iii) Assured gifts 5) YOUR PERCEPTION ABOUT BERGER PAINTS LOYALTY PROGRAM. ……………………………………………………………………………………………… ……………………………………………………………………………………………… ………………

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