Expansion of the Market of Berger Paints Through Alternative Distribution Channel


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Summer Internship Project For Berger Paints

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Expansion of the Market of Berger Paints Through Alternative Distribution Channel

  3. 3. ~ 3 ~ DECLARATION I hereby declare that the project work entitled “EXPANSION OF THE MARKET OF BERGER PAINT THROUGH ALTERNATIVE DISTRIBUTION CHANNEL” submitted to MAHAMYA TECHNICAL UNIVERSITY as a part of the MBA curriculum, is a record of an original work done by me under the guidance of Prof. P.K.Ghosh (Director,IIMT Management College) and Mr. Aftab Ahmad (Faculty Of Management, IIMT Management College) and Mr. Paras Bajaj (Area Sales Manager, 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. ABHISHEK KUMAR
  4. 4. ~ 4 ~ 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 “IIMT Management College”, Meerut I would like to extend my sincere gratitude and thanks to Mr. Paras Bajaj (Area Sales Manager, Berger Paints India Ltd.), Prof. P.K.Ghosh (Director,IIMT Management College), Mr. Aftab Ahmad (Faculty Of Management, IIMT Management College) 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. ----------------------------------- Abhishek Kumar
  5. 5. ~ 5 ~ CONTENTS 1: Executive Summary…………………………………………………………………….....6 2: Overview Of Paint Industry In India …………………………….…………………11 3: Company Profile …………………………………………………………………………….25 4: Research Problem And Background ……………………………………………….52 5: Objectives And Scope Of Study ………………………………………………………55 6: Project Methodology ……………………………………………………………………..57 7: Data Analysis And Interpretation …………………………………………………..60 8: Comparative Analysis Of Advertisements ……………….……………………..81 9: Observations And Findings …………………………………………………………….86 10: Recommendations …………………………………………………………………………89 11: Limitations And Scopes Of Study ……………………………………………………91 12: Conclusion……………………………………………………………………………………..93 Bibliography And References ………………………………………………………………95 Appendix ……………………………………………………………………………………………..97
  6. 6. ~ 6 ~ (1) EXECUTIVE SUMMARY
  7. 7. ~ 7 ~ EXECUTIVE SUMMARY The purpose of this project titled “Expansion of the Market of Berger Paint through Alternative Distribution Channel” is to collect the necessary information from the prospective dealers. . The study includes interviewing the dealers who are into the business of building material and collecting information regarding their shop and contact details. It also includes necessary information like annual turnover so that accordingly they can be contacted in future. They were asked that in what other products they deal at present and of which company like sanitary, cement, pumps, steel. These data which has been collected through the interview has helped in deriving many conclusions regarding the market share and awareness of their competitors and other building related products. If sales and distribution channel is expanded, then it would be beneficial for customer to buy Berger which can only be done by increasing its dealer in the market. So this study also helped the company to know how many dealers are ready to become the dealer of Berger. As India is entering into the scenario where the consumers want each and every product at one place. A shopping mall is a good example where consumer finds the goods of their use at one place. Same applies on construction related goods like cement, paint, sanitary, plywood. So in this study the alternate channels are targeted, with which the company as well as dealer will get benefit.
  8. 8. ~ 8 ~ 1.1) TYPES OF ALTERNATE CHANNELS Though there are various types of alternate channel dealers we are basically targeting 4 types of dealers 1. Cement Dealers. 2. Steel Dealers. 3. Plywood Dealers. 4. Tiles and Marble Dealers. 1.2) CEMENT DEALERS  Dealer have billed materials from warehouses /go -downs and the same is supplied directly to the dealer or to his site.  Dealer operates on APS mostly.  Target is to capture the retail selling dealer who sells 300 – 400 MT of cement per month. Why Cement Dealer is a Prime Target for Alternate Channel  Ample go down and showroom space.  Financially sound.  Dealers have a ready base of customers who take cement. These leads can be converted by us.  CC and Putty can be easily sold via these counters.  Dealers have ample manpower to have one dedicated shop boy for paint store.
  9. 9. ~ 9 ~ 1.3) STEEL DEALERS  Like cement, steel is also a high investment low return industry  Unlike cement dealers, steel dealers hold stocks of steel bars of various sizes – mm/8m/10mm/12mm/16mm/ 20mm  The steel industry is dominated by the regional players and very few national players are present  Steel prices are subject to drastic changes- both increase & decrease which adversely affects the profits of a dealer as huge stocks are held by the dealers  Dealer operates on APS mostly 7 days credit (Max)  Target is to capture the retail selling dealer who sells 100 tons of steel per month. The average investment is 20 lakhs. Why Steel Dealer is a Target for Alternate Channel  Ample go down and showroom space.  Financially sound.  Dealers have a ready base of customers who take Steel. These leads can be converted by us.  Dealers have ample manpower to have one dedicated person for paint store.  Steel Industry is fluctuating and the market is also shrinking so the dealers are on lookout for new ventures.
  10. 10. ~ 10 ~ 1.4) Plywood Dealers  Mostly Dealers are selling multi SKU’s including Plywood, laminate, veneer and allied product, some dealers also have display gallery for color combination.  Investment is high with good return.  At present, the sector is predominantly in the hands of unorganized units.  A dealer who is selling veneer and laminates is more targetable. WHY WE NEED PLYWOOD DEALERS  Financially sound.  Existing customers of plywood and allied product.  Good contacts with architects and Interior designers.  Proper space and enough manpower for selling paint.  Already dealing in multi SKU’S.  Plywood dealers can be groomed to become FS stores.
  12. 12. ~ 12 ~ 2.1) Brief Description What is paint? Paint is a mixture of ( 1 ) Pigment, ( 2 ) Extenders, ( 3 ) Binders , ( 4 ) Solvents, ( 5 ) Additives, It generally gives an opaque film, some time transparent paint film also. It is available in the form of liquid (Solvent base enamel paints & primers), in the form of thick, curdy like viscous liquid, (emulsion paints for walls) in the form of paste (Putty type) and in the form of powder (oxides for floor, cement paint, powder base putty, etc) It gives glossy finish, some time semi glossy paint, some time sheen finish and some time matt finish. There are two types of paint such as (a) Solvent base and (2) Water base. Why we paint the surface? The main objective of painting are ( 1 ) To protect the surface from many factors like – Rain, saline water, heat, sunlight, UV rays, dust etc. ( 2 ) To give aesthetic look and ( 3 ) To guide people the traffic rules etc. The paints are many types like – Decorative paints, Protective coatings, Industrial paints, automotive paints and Powder coatings. What are the basic tools used while painting? We generally use the following (1) Paint brush (different types) (2) Sand papers / Water papers of different grades (3) Waste cloth (4) Putty knives (5) Spray gun (conventional type and air less type).
  13. 13. ~ 13 ~ PIGMENT: Pigment gives color to the paint. When applied on a surface it gives as opaque paint film to the surface. The pigments are 2 types. Those are (1) Organic pigment (2) In organic pigment. The pigments are available in the form of powder .It is responsible for coverage and hiding. Higher the pigment higher the coverage / hiding. Lower the pigment is reverse. Please note there are some colors, who give lower coverage and lower hiding by birth. Those pigments are Yellow color, Red color, and Orange color. The organic pigments are clean in color whereas inorganic pigments are dirty in color. Price wise Organic are costly and in organics are cheaper. Life on wall inorganic pigments gives better life as compared to organic. Extender: In general chemically it is inert. Some of the extenders are processed minerals where as others are chemically prepared. The names of some extenders are as follows:- ( 1 ) Barites ( 2 ) Whiting ( 3 ) China clay ( 4 ) Soap stone ( 5 ) French chalk ( 6 ) Mica and there many. It does not give any color and therefore no hiding property. The difference between the pigment and extender is Refractive Index (RI) In case of pigments the RI is higher as compared to extender. Please note that higher the RI is higher the hiding/opacity and obviously in coverage. Therefore when extenders are used in paint binder it gives no color, and virtually transparent. The main reasons we used extenders in paint are to reduce gloss of paint. Higher %age of extender used in paint reduces more and more gloss of paint and it moves towards Gloss to high sheen finish, Sheen finish to Matt finish. In other words we can call extenders as matting agent. Binder In simplest way it can be defined as one that bind pigments and extender (if any) together and ensures adherence of paint to the substrate when applied as paint. Pigments and extenders are grinded and dispersed in the binder during manufacturing process. It is mainly responsible for giving life to the paint when applied on surface. When we applied paints on a substance, it starts fight with( 1 ) Corrosion ( 2 ) Water ( 3 ) Heat ( 4 ) Air ( 5 ) Light and ( 6 ) Earth i.e. Dust. The binder quality decides its durability, which means up to what extent it (Binder) can fight with above factors. Weaker the binder, reduces the life of paint, and ultimately the life of
  14. 14. ~ 14 ~ surface reduces. It’s a national loss. We made loss to the nation is about 50 thousand crore per year. It is our responsibilities to arrest this loss. How it is possible? It is possible only to understand the importance of pant and painting. Solvents It is liquid material. It is used in 3 states like (1) In manufacturing process of Binder (2) In manufacturing process of paints and (3) While in application process of paints. After application of paints on substrates it evaporates to air. There are two (2) types of solvents such as Aromatic solvent and Aliphatic solvent. Aliphatic solvents are petroleum bi products whereas Aromatic solvents are Coal bi products. Aliphatic solvents are slow evaporating whereas Aromatic solvents are fast evaporating solvents. Additives Additives are many in numbers, but each one are used less in quantity. It upgrades the quality of paints. Use of excessive quantities of Additives will create problems. The maximum quantities you can use are 5% maximum. It is used to improve the following properties of paints.
  15. 15. ~ 15 ~ PAINT INDUSTRY AN OVERVIEW Indian Paint Industry – Sweet Spot Urbanization is an “Index of transformation from traditional rural economies to modern industrial one.” Over the last 4-5 years; the economic growth in India reported an average growth of ~8%, leading to explosion of urbanization & development in rural India. Also rural spending has started to outpace urban consumption trend fuelled by a strong increase in incomes, led by rising non-farm employment opportunities and the government’s focus on rural employment generation schemes. This has led to growth at a CAGR of 15% in last 5 years (FY07- 12) in the Indian Paint Industry which is estimated to be at `291 Bn in FY12. Even the paint volumes growth is closely related with the GDP growth rate & has grown on an average 1.7 – 2.1x GDP. Thus, going forward with economy revival, changing lifestyle & public aspirations, we believe the Indian Paint Industry is expected to conservatively grow at a CAGR of 15% for next 3 years to be ~ `443 Bn industry by FY2015E. EMULSION Paints – Customers Choice The Paint Industry is dominated by decorative paints (77%) & Industrial paints (23%). Emulsion, which constitutes the majority share of decorative paints, is the fastest growing segment of the paint industry. Presently, the growth of the Indian paint industry is being witnessed from new demand pockets, especially in Tier-II and Tier-III cities, thus, signaling the growing acceptance of branded quality products among the masses. The growing popularity of branded quality paints & increasing income levels of people residing in Tier-II and Tier-III cities has led to a shift in demand from unorganized players to organized players & pushed the growth & shift towards premium paint segment i.e. “Emulsion” category from “Distemper & Primer” Category.
  16. 16. ~ 16 ~ Customer Centric Approach – Key Sales Driver With the changing landscape of Indian Paint Industry – from B2B to B2C, Organized players have aggressively taken marketing initiatives –to involve customers in paint selection process , creating awareness of product differentiating features like Zero VOC, Low VOC, lead free & eco- friendly products, opening customer friendly concept stores like “Color World, Impression Stores, Kids World“ for customers to touch & feel “ Textures, designs, Glow & Disney themes” & providing unique professional services of product consultancy and color consultancy through “Home Solutions & Home Stylers”, Interactive Call Centre & Simulation Software based websites , Social Media Campaigns on Face Book & Twitter etc have assisted in creating & meeting the demand related to lifestyle conscious people to upgrade & change customer preferences. We believe such marketing initiatives with aggressive advertising spends would go a long way in creating a strong brand image & customer loyalty paving way for rapid penetration & Shift in favor of Organized players vs. Unorganized players in Tier II & Tier III cities. STRUCTURAL REPRESENTATION OF PAINT INDUSTRY:
  18. 18. ~ 18 ~ 2.3) Industry Structure Indian Paint Industry is over 1000 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 Nerolac (now Kansai 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 tons 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 77%. This is in contrast to the 55% share that the sector commanded a few years back. Major companies in this segment include Asian Paints (42% market share), Berger Paints (23% market share), ICI (6% market share), Kansai Nerolac (10% market share), Jenson Nicholson (4% 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, Kansai 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 Kansai Nerolac in 1984, is now the holding company for Kansai 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
  19. 19. ~ 19 ~ 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 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. 2.4) 1 Paints and Their Market Share 0 5 10 15 20 25 30 35 40 45 50 Product Share %Product
  20. 20. ~ 20 ~ 2.4) 2 Industrial Paints Industrial paints comprising 30% of the market include automotive paints, high performance coatings, coil coatings, powder coatings, marine paints and general industrial coatings. The automotive segment is further bifurcated into OEMs and auto refinishes. The automotive and general industrial coatings occupy top slot in terms of production. Kansai Nerolac is the market leader in this segment. Demand for these paints is relatively price inelastic, but is prone to business cycles and depends on industrial and economic growth. Major end user industries include shipping, capital goods, white goods and heavy industries. The industrial paints segment due to specialized technology and high capital expenditure attracts fewer players. Most Indian companies have tied up with or are in the process of tying up with international paint majors to have access to the latest technology. A tie-up with a global paint manufacturer also enables the domestic company to supply to local customers of its partner. For example, Kansai Nerolac is a major supplier to Maruti Suzuki because of Kansai, its Japanese collaborator and Suzuki relations. It is for the same reason that Asian Paints (tie-up with PPG Industries, USA) is a major supplier of paints to Opel Astra.
  21. 21. ~ 21 ~ COMPANY COLLABORATION AREA OF COLLABORATION BERGER PAINTS Herbert sons GmbH; Valspar Corp. Inc,; Teodur BV Auto coatings; Heavy duty coatings; Power coatings ASIAN PAINTS PPG Ind. Inc., Sigma coatings, Nippon Paints Electro deposition primers; High performance coatings, Power coatings KANSAI NEROLAC Kansai paints Auto & Industrial coatings ICI(India) ICI plc. Auto refinish J & N Herbert sons GmbH Auto coatings 2.5) Drivers to the growth of the Paint Industry 1. Increasing level of income and education – The increasing proportion of young population along with increasing disposable incomes is leading to a change in consumer habits. The Indian economy is shifting from a savings economy to a spending economy. With more income at their disposal, people are now ready to pay for better products and paint is no exception. Educated consumers are more brands conscious and seek value in what they consume. Thus, paint companies offering value-added features like non-toxicity, weather protection, texture, eco-friendly production, etc. will attract more demand. These value-added products enable the manufacturers to earn a better premium as compared to the regular paints, thus offering higher margins.
  22. 22. ~ 22 ~ 2) Increasing Urbanization: Urbanization is leading to a shift from temporary houses to permanent houses. Urban houses are well-designed in its interior as well as exterior aspect. This calls for more houses being painted using medium and premium paints. For urban houses, interior design is becoming a fashion statement and a lot of paint is used to decorate the interiors. This will lead to an increase in the per capita consumption of paint which will increase the overall demand of paint. Urbanization also brings more nuclear families. More nuclear families mean more number of houses even for the existing population thus further driving the demand. 3) Increasing share of organized sector: Decrease in taxes on key raw materials will improve the position of the organized players. The Organized sector is expanding its distribution network and adopting the installation of tinting machines at retail outlets. These tinting machines offer a wide variety of colour shade options to choose from. The unorganized players are not in a position to offer such facility as it is comparatively capital intensive. Shift in use, from distemper segment towards premier segment is also shifting market share from the unorganized sector to the organized sector. 4) Development of the Realty, Automobile and Infrastructure sector: The growth of the paint industry is largely dependent on the development of the realty and housing sector, as decorative segment generates about 70% of the total paint demand from this sector. The Automobile segment generates more than two-third of the demand for Industrial paints, and hence is the growth driver for Industrial Paints. The Infrastructure segment creates direct demand for paints as well as creates indirect demand through supporting the growth of the realty, automobile, FMCG and other industries where paint is used. The growth potential in the above 3 sectors is immense, the paint industry being dependent on these 3 sectors is expected to grow along with them. 5) Availability of financing options: Easier housing finance and auto finance is expected to favor more people to buy houses and travel in personal vehicles. This will drive the growth of housing and automobile sector, of which the Paint industry will get its share.
  23. 23. ~ 23 ~ 6) Increasing Penetration in the Rural Markets: Paint usage in rural areas is generally in the distemper segment, hence dominated by the unorganized players. Demand in rural areas is dependent on agriculture, which is dependent on the monsoons. With the development of irrigation facility, the dependence of agricultural output on monsoons will be on a decreasing trend. Also, with the modernization of agriculture and accompanying development of rural India, consumer preferences are expected to improve. Paint companies are expanding their distribution network in rural parts of India, which is a relatively untapped market for the organized players. These factors supported by the increasing penetration of the paint companies will help drive the demand for paints. 2.6) Main Concerns of the Paint Industry • Cost of raw materials: The Cost of Raw materials are an important factor as the industry is raw material intensive. Fluctuation in the prices of Titanium dioxide and Petroleum directly affect the production cost. This is more of a concern for the Industrial segment as compared to the Decorative Segment, as it is comparatively easier to pass on the costs in case of decorative paints. Also, a large portion of raw materials are imported, leaving the cost factor vulnerable to exchange rate fluctuation. • MNC’s entering the Indian Paint Market: The entry of Established foreign players in the Indian market may increase the competition among the players of the industry. This may lead to price competition which may impact the profit margin of the companies. As a result, the increase in volume growth may not equally reflect in the profit growth for the companies.
  24. 24. ~ 24 ~ 2.7) 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 unorganized players has come down significantly.  Decorative paints segment is expected to witness 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, which augur well for automotive paint manufacturers like Kansai Nerolac and Asian-PPG. Increased industrial paint demand, especially powder coatings and high performance coatings will also propel top line growth of paint majors in the medium term.
  25. 25. ~ 25 ~ (3) COMPANY PROFILE
  26. 26. ~ 26 ~ 3.1) Company Philosophy Purpose of Corporate Philosophy An effective corporate philosophy helps a company develop a certain corporate culture, ethical practices and strengthens the relationship between employers and employees. It also positions the values of the company in the minds of others both within and outside of the organization. Your corporate philosophy should give employees a starting point for the decision-making process, so they are all operating on the same page. Developing a corporate philosophy gives you something against which you can compare candidates for new positions, thereby helping you make hiring decisions based on whether an individual will fit within your corporate culture. Creating a Corporate Philosophy One of the first things to consider when creating a corporate philosophy is the purpose of your business. A company’s philosophy can contain similar verbiage as a company’s mission statement, but in more detail. For example, the mission statement of a major search engine company is, “To organize the world's information and make it universally accessible and useful." A portion of that company’s corporate philosophy includes the statement, “We do search. With one of the world‘s largest research groups focused exclusively on solving search problems, we know what we do well, and how we could do it better.” By reading these and other similar statements in its corporate philosophy, you can ascertain its mission. Corporate Philosophy Benefits Small businesses benefit greatly from developing a corporate philosophy. A primary benefit of a corporate philosophy is that it helps to build long-lasting, trusting relationships between your business and clients. You should implement your corporate philosophy within every level of your company, which allows customers to trust that they will receive the same professional treatment throughout the organization. A corporate philosophy also builds consistency between your employees. When employees are familiar with the company’s philosophy, it makes the integration of new hires easier and helps current employees embrace changes within the company that follow the corporate philosophy. Another benefit of a corporate philosophy is
  27. 27. ~ 27 ~ that it can possibly give your company a competitive advantage because you possess a clear vision of how you want customers and competitors to perceive your business. 3.2) Company History and Milestone 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. 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.
  28. 28. ~ 28 ~ 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 until 2012 with the Managing Director Mr. Subir Bose. The current managing director of Berger Paints India Ltd is Mr. Abhijit Roy. 3.3) Company Background 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 tones 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 more than Rs 2400 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
  29. 29. ~ 29 ~ 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 85 depots, several regional & area offices, besides four facilities overseas. It has a workforce of over 2500 employees and a countrywide distribution network of 15000 plus dealers. Berger Paints has clearly demonstrated its commitment to Indian consumers for over 88 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 we can now see your imagination of colour unfurl in front of your eyes and watch your home come alive, telling a thousand tales. Transform our home with the POWER OF IMAGINATION. BERGER PERFORMANCE:  BPIL is the 2nd largest paint company in India.  15,000 plus paint retailers, 85 stock points, 6 RDCs, 7 production units  Total Consolidated Gross Turnover of 3500 crs in 2012 – 13  Recorded the fastest growth in the decorative paint segment in India growing @ 20% BERGER PRODUCTS: BERGER INTERIOR EMULSION VS COMPETITION Product Category Berger Brand Asian Brand ICI Brand Neroalc Brand Luxury Interior Emulsion Silk Royale Velvet Touch Impression Luxury Interior Emulsion Rangoli Easy Clean - na - 3 in 1 Emulsion - na - Premium Interior Emulsion Rangoli Premium Emulsion Dulux Super Smooth Beauty Gold Economy Interior Emulsion Bison Emulsion Tractor Emulsion Rainbow Beauty Smooth Distemper Bison Distemper Tractor Distemper Magik NAD
  30. 30. ~ 30 ~ BERGER EXTERIOR EMULSION VS COMPETITION Product Category Berger Brand Asian Brand ICI Brand Neroalc Brand Premium Exterior Emulsion Weather Coat ALL GUARD Apex Ultima Weather shield Max Excel Total Regular Exterior Emulsion WeatherCoat APEX Weather shield Excel Economic Exterior Emulsion Walmasta ACE Promise Suraksha BERGER ENAMEL RANGE VS COMPETITION Product Category Berger Brand Asian Brand ICI Brand Neroalc Brand Premium Enamel Luxol High Gloss Premium Enamel Dulux Gloss Nerolac Syn. Economy Enamel Jadoo Enamel/Butterfly Utsav Enamel NA Goody Satin Enamel Luxol Satin Enamel Premium Satin Enamel Dulux Satin Nerolac Satin COLORBANK  In Today’s scenario Tinting machine is an integral part of all paint shops Tinting machine is a necessity for selling of emulsions where any shade could be requested by the customer .Function of a Tinting Machine is to dispense colorants into Base can to get the desired color. BENEFITS OF COLORBANK SYSTEM To the Dealer  Minimum inventory and Max shades  Customization of shades as per customer requirements  No stock out.
  31. 31. ~ 31 ~ To the Customer (leading to customer satisfaction)  Option to choose from a wide range of shade.  Availability guarantee.  Perfect reproduction incase of repeat order. Components of a Machine • Dispenser- Used for dispensing the colorants into the base • Gyroshaker- Mixes the colorants and base to make the shade
  32. 32. ~ 32 ~ • Computer- Used for viewing the formulations and for controlling the dispensing operation • Software- Indicates the formulations and other statistics for the dealers. • Colorants used: The dispenser dispenses colorants in various proportions as per the software into the emulsion container to make various shades. Different bases are used for different shades of colors. The bases usage based on shades is detailed below  For tinting pastel shades – P0 ( e.g. Shade – Apple White from CB 101 card)  For tinting light intermediate shades – W1 ( e.g. Shade – Blue Chip from CB 101 card)  For tinting dark intermediate shades – N1( e.g. Shade – Jodhpur Beige from CB 101 card)  For tinting light accent shades – N2 ( e.g. Shade – Ink Drop from CB 101 card) Berger Colorant Colour BP Price/Ltr OC Yellow Oxide 480 SP Red Oxide 791 NT Fast Black 467 BF Fast Blue 629 VB HT Violet 1152 GC HT Green 1229 GF Fast Green 921 WT HT White 663 RD Interior RED 935 RE Exterior RED 1785 LM LemonYellow 1278 NS Medium Yellow 840 MG Magenta 1579 BC HT Blue 1397 OR Orange 1493 BR Tinting Black 622 Total 16261
  33. 33. ~ 33 ~  For tinting dark accent shades – N ( e.g. Shade – Ultra violet from CB 101 card)  Coloured bases are used for reducing the quantity of colorant consumed for making a shade and therefore economizing the shade cost with better hiding  Yellow – Used for making Yellows, Oranges and Yellow greens – Available in Interior and Exterior Emulsions  Red – Used for making deep red shades  Brown – Used for making browns, reddish browns in exteriors  Cream – Used for making earthen tones and ivory shades in exteriors  Grey – Used for making grey shades in enamels(Smoke grey/light grey/dark grey)
  34. 34. ~ 34 ~ 3.4) Board of Directors Mr. Kuldip Singh Dhingra (Chairman) Mr. Gurbachan Singh Dhingra (Vice-Chairman) Mr. Abhijit Roy (Managing Director) Mr. Aniruddha Sen (Vice President & Company Secretary) 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
  35. 35. ~ 35 ~ 3.5) Landmark Projects The Calcutta Club was set up in 1907 in response to the discriminatory practices of the Bengal Club which admitted only white members. Today, it is not just popular but also one of the most prestigious clubs in the city. A membership to the club is so coveted and the list of prospective members believed to be so large, that it takes over a year before the screening committee finds time to consider the suitability of an applicant. A high rise condominium spread over five acres, Teen Kanya overlooks Lake Nucifera. The three towers, 16 storied each, arranged in a semi circle overlook the 100 acre water body. Plenty of natural light, perfect cross ventilation and a whole host of state-of-the-art amenities make the flats of Teen Kanya, in Action Area II of Rajarhat, perfect for living. Living here is like living in the heart of nature with all the modern facilities you can dream of. Rs. 275 crore was poured into making the mall and the five-star hotel of City Centre II – a multi-utility urban infrastructure project. The project, which took three years to get completed, is built on five acres of land. City Centre II, at Rajarhat is just 3 km from the Netaji Subhash Chandra Bose International Airport. It has been designed to give a boost to the hotel business while the mall caters to the people of north Kolkata largely. In 1994 as a development and maintenance services arm of The Dun & Bradstreet Corporation and Satyam Computers and Services Ltd., blossomed into an independent organization called Cognizant in a matter of two years. One of the first IT services companies with key industry verticals as well as technology horizontals.
  36. 36. ~ 36 ~ Gold Souk Grande is a large format multi-specialty mall in Chennai. The Rs. 250 crore project is spread across 8 lakh sq. ft. The mall which will be fully operational by the third quarter of 2010 will have a hypermarket, food court, anchor stores and a multiplex. Like all malls it house stores offering lifestyle products, accessories, electronics, footwear, cosmetics and more. The T .A Pai Management Institute (TAPMI) located in the international university town of Manipal (Karnataka), is among the leading management institutes in India, and is reputed for its academic rigour and faculty-student interaction. Founded by the visionary, Late Shri. T.A. Pai, TAPMI’s mission is to provide much needed impetus to the task of building professional management capability in the country. In the process, it has also played a role in strengthening the existing educational and health infrastructure of Manipal. The land on which Mantri Greens is built was once Royal property belonging to none other than The Maharajah of Mysore. Not only that, the title document bears the signature of world renowned engineer and Statesman - The Dewan of Mysore, Sir M. Visvesvaraya. The authenticity of this title has stood intact for more than 110 years. Now, it is a place where you and your family's can enjoy the rich and scenic nature for a lifetime.
  37. 37. ~ 37 ~ 3.6) Berger’s Presence in India
  38. 38. ~ 38 ~ 3.7) Berger’s Presence All Over the World Apart from operations in Russia, with a production facility at the Berger manufacturing unit at Krasnodar, Berger has also expanded its footprint in Nepal by setting up a second unit. Today Berger’s sister company in Bangladesh is the dominant leader with 65% market share. In keeping with the company’s dynamic growth plan, Berger has also acquired Bolix SA of Poland, a leading provider of External Insulation Finishing System (EIFS) in Eastern Europe. As Berger continues to grow internationally, it also continues to be the second largest paint company in India. Berger is the lone supplier of Nuclear Power Plants with its Protective Coatings. The automotive sectors, be it cars or bikes, is primarily ruled by Berger’s automotive coatings. Luxury cars including Mercedes make use of Berger products. Companies like Nokia uses Berger‘s services as well. Berger has tied up with Becker of Sweden to manufacture coil coatings for steel surfaces
  39. 39. ~ 39 ~ 3.8) Market Share of Major Player in INDIA
  40. 40. ~ 40 ~ 3.9) Market Share of Industrial Paints Goodlass Nerolac Paints Ltd. 41% Asian Paints (India) Ltd. 15% Berger Paints (India) Ltd. 10% ICI India (Ltd.) 9% Shalimar Paints Ltd. 8% Others 17% Market Share of Industrial Paints
  41. 41. ~ 41 ~ 3.10) Market Share of Decorative Paints Asian Paints (India) Ltd. 38% Goodlass Nerolac Paints Ltd. 14% Berger Paints (India) Ltd. 9% ICI India (Ltd.) 8% Shalimar Paints Ltd. 6% Others 25% Market Share of Decorative Paints
  42. 42. ~ 42 ~ 3.11) Industrial Sector Composition 0 5 10 15 20 25 30 35 40 45 50 Automotive Paints High Performance Coating Powder Coating Coil Coating Marine Paints 50 30 10 5 5 MarketShare(%) Types of Industrial Paints Industrial Sector Composition
  43. 43. ~ 43 ~ 3.12) Marketing Mix in relation to Berger Paints Marketing decisions fall into four main controllable categories namely Product Place Price Promotion Relating these factors with respect to Berger Paints Product: Berger is committed to offer quality products that satisfy consumers’ ultimate desires from paints with the help of state-of–art technology. Berger always believes in one step ahead in offering new product to create more value for customers’ money. Berger outsmarts other competitors of the market through its one step in advance policy and innovative market offers. Berger is trying to fill up all holes of the market through offering a wide range of products to meet the needs (Premium to Economy Paints) of different types of users and to solve the different types of functional requirements (Industrial, Decorative & Marine). Due to shift in market growth trends Berger is trying to establish itself in the economy segment of the paint market. Place :- Another major component of marketing mix is place. During our visit at BERGER I was able to include inventory, transportation, coverage, channel, logistics and market and market segments etc. under these marketing mix components. Differentiated market segment Berger’s market segments are differentiated. They use different types of marketing mix for different segments. Their product quality, advertisement, promotional techniques, price are high for upper class customers. Again for the people of middle class on the basis of their
  44. 44. ~ 44 ~ income, occupation, taste, lifestyle different marketing policies are applied. We can observe this deviation in TV advertisement. Inventory BERGER has divided their products in A,B,C category. For inventorying their products BERGER is following some storing norms. Depending on this storing norms company decides how long their product will stay in the market in accordance with the existing sales trend of that particular product. This is how the firm can determine when to order and how much to order. Transportation To ensure customer satisfaction BERGER uses modern and fastest going covered van as transportation carrier while moving goods from depots to dealers. But when they move goods from factory to depots they use public transportation carriers such as truck and railway as rental basis. Distribution network 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 85 depots, several regional & area offices, besides four facilities overseas. It has a workforce of over 2500 employees and a countrywide distribution network of 15000 plus dealers. The orders are collected by the sales executives and passed on to the nearest depot. The depots are fed by regional warehouses. These depots maintain a minimum order quantity which is arrived at from the monthly demand forecast. The material is dispatched from the depot in the name of the dealer. Generally some orders of the same region are clubbed together and dispatched in trucks. Finally the truck is unloaded and the small orders of the dealers are dispatched to them.
  45. 45. ~ 45 ~ Manufacturing Unit Manufacturing Unit Manufacturing Unit Depot Depot Depot Depot DealerDealer Dealer Dealer Dealer Dealer Dealer Depot BERGER Depots Direct dealers Retail Wholesale Customer Customer Feed back Feed back FeedbackFeedback Product Product s
  46. 46. ~ 46 ~ BERGER’s Hybrid Marketing System Price:- In the paints industry price is the used only as a differentiator between the various segments in the same product line. The prices of different brands in the same segment remain more or less similar, with just a difference of 30 to 40 paisa per square feet. Some of the specialty products, which are not produced by all brands, may be priced at a higher price. Pricing decisions in the paint industry largely depend on the price of the inputs like petro products, other raw materials, excise duties and taxes and the general operating profits. Generally increase or decrease of prices is affected across all brands in the market. Most of the paint companies offer a 5% margin to the dealer. Due to internal competition, the dealers pass on this advantage to the customers by reducing their own margins to 2-3%. This is a cause of concern for the paint companies because they have to keep a constant check on the prices offered in the market. The dealers offer more of discounts and the companies are not able to firm up the prices. Paint companies offer a lot of discounts like cash discounts, volume BERGER Customer CustomerDirect dealer Direct channel Indirect channel
  47. 47. ~ 47 ~ discounts, seasonal discounts and allowances. The dealers take advantage of these discounts to gather more business. Promotion:- The paint industry until 1999 was concentrated mostly on increasing sales by intensive trade promotion wherein the dealers, contractors and other components of the supply chain. There was little emphasis on theme advertising directed towards the customer. A recent trend that is emerging in the Indian paint market is that the major brands have all identified the importance of reaching out to the common man instead of just limiting themselves to the intermediaries. Advertising strategy: BERGER follows different strategy for developing its strategy. It depends on some characteristics that is product life time, brand etc. Media: Berger used different media for advertising like- on-air advertisement, television, newspaper, magazines. The dealers are educated with the company background, products and service etc The time to time selling incentive are given by company according to performance of de aler and market demand. In-Store Displays: Point-of-Purchase, Berger paints Banners, Demonstrations of color on wall, etc are provided by the company. Temporary Price Reduction (TPR): They get margins plus some incentives promotion scheme to maintain the dealer. Contests: Dealer to dealer contest is kept to promote push strategy and best dealer gets the reward. Berger paints likes to do the same within same geographic areas. Sampling: Allowing the dealer to experience the product or service by providing free samples so as he can promote word of mouth. Berger’s sales promotion consists of short-term incentives to encourage the purchase of sale of a product or services. Berger Paint’s advertising has created brand awareness, highlighted what the brand has to offer and has consistently brought all of it top-of-the-mind for the customer. But the outreach effort does not end there. Berger Paints has recognized the importance of communicating to and involving key players who influence the final brand choice. These include channel partners, contractors and painters, on whom Berger Paints focuses by initiating and developing innovative activities and promotions. This helps build the Berger Paints family so that customers get a high degree of personalized service and professional guidance to facilitate their final decision.
  48. 48. ~ 48 ~ Sales Promotion: Sales Promotion is an important component of marketing communications mix. It adds an extra value to the product and hence prompts the dealer or consumer to buy the product. In a specific sense, sales promotion includes those sales activities that supplement both personal selling and advertising, and coordinate them and make them effective, such as displays, shows, demonstrations and other non-recurrent selling efforts not in the ordinary routine. Sales promotion can be used:  For facilitating introduction of new products  For overcoming unique competitive situation  For unloading accumulated inventory  For overcoming seasonal slumps  For getting new accounts  For retrieving lost accounts  As a support and supplement to the advertising effort  As a support and supplement to the salesmen’s effort  For persuading salesmen to sell the full line of product  For persuading the dealer to buy more or increase the size of order Commonly Used Tools and Techniques of Sales Promotion:  Demonstrations  Trade Fairs and Exhibition  Coupons, Premiums, Free offers, Price-offs, etc  Free samples  Joint promotion
  49. 49. ~ 49 ~  Contests (consumer contests, dealer contests)  Merchandising or Display  Sales promotion on the internet The company has been concentrating more on sales promotion than on advertising. On analyzing the customer survey data it becomes evident that since the customer is returning to the store after an average of about three years it is better to concentrate more on the dealers who are in the business throughout the year. Keeping this in mind the company’s decision of doing more sales promotion than advertising stands justified. Sales promotion can broadly be divided into two categories: 1) Customer Promotion – This section includes all the sales promotion activities directed towards the customers. Scratch cards that are provided with specific size of packages are examples. The company comes out with many different sales promotion schemes during the festival season, especially the Durga Puja festival in Orissa and West Bengal. There are a number of gifts and schemes on the larger packs. Coupons and free gifts are offered on packs of more than 10 kgs. The company also offers a large number of services to the customers to assist them in their buying decisions. These services are offered on the company’s website to make it accessible to a very wide range of customers. 2) Trade promotion – As part of the company’s policy, huge emphasis is given on trade promotion. The dealers and contractors who are a part of the distribution chain are given special attention. The company comes up with several incentive schemes for the dealers. The most popular schemes include cash discounts, foreign trips and gifts such as refrigerators etc for dealers who succeed in meeting or exceeding pre-determined sales targets. The company also organizes regional dealer meets regularly. Here the dealers are briefed about the company’s new products and the technical details and application procedures of these products. The company also aims at building and retaining dealer loyalty through these meetings.
  50. 50. ~ 50 ~ 3.13) Sales Turnover for the Past Ten Years Year Year Number (x) Sales turnover in crores (y) Mar '03 1 586.43 Mar '04 2 675.82 Mar '05 3 831.68 Mar '06 4 987.91 Mar '07 5 1,172.21 Mar '08 6 1,346.21 Mar '09 7 1,513.74 Mar '10 8 1,688.68 Mar '11 9 2,100.82 Mar '12 10 2,662.10 0 10 20 30 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Salesincrores Months Paint shows maximum growth before festive season YEAR 2003 YEAR 2004
  51. 51. ~ 51 ~ An upward trend line shows that the sales volume have risen over the past years, it gives an impression that the company has been continuously progressing. y = 210.2x + 200.1 R² = 0.936 0 500 1000 1500 2000 2500 3000 0 2 4 6 8 10 12 Turnoverincrores Years Turnover in Crores Turnover in Crores Linear (Turnover in Crores) Linear (Turnover in Crores)
  52. 52. ~ 52 ~ (4) RESEARCH PROBLEM & BACKGROUND
  53. 53. ~ 53 ~ 4.1) Background This project is all about data mapping of all alternate distribution channels by getting necessary information. ADCs can be cement dealers, plywood dealers, sanitary shops, and as well as paint dealers. 1) To expand their distribution channel, the company wants to create database of each and every alternate distribution channel that are into the business of building material. This is being held throughout the India. I was given Moradabad & Bijnor Districts. There I have visited the following towns:  Moradabad city  Kanth  Thakurdawara  Surjannagar  Dhampur  Afjalgarh  Badigarh  Seohara  Sahaspur  Noorpur  Chandpur 1) Accordingly, BERGER these towns have enough potential dealers who can be interested in dealing with Berger Paints. In addition to these documents various other information like the per year consumption of each paint category, construction chemicals and wood finish were taken. These data formed the main basis of the study. Various analysis like brand preferences, contribution of each product in the total sales volume etc were analyzed. 2) Company wants to explore all the opportunity in the market by making more dealers of Berger Paints and by expanding the distribution channel.
  54. 54. ~ 54 ~ 4.2) RESEARCH PROBLEM  All the dealers of alternate distribution channels can be made paint dealers or not.  Collect the necessary database of dealers, so that accordingly the dealer should be approached.  Convince them to be a part of Berger paints and how it can be helpful to be with Berger Paints.
  55. 55. ~ 55 ~ (5) OBJECTIVES & SCOPE OF STUDY
  56. 56. ~ 56 ~ 5.1) Objectives The main objectives of the study are listed below:  To collect the necessary information about the dealers and do the data mapping of all alternate distribution channels (ADCs).  To increase the dealership of Berger Paints.  To find how many ADCs are eligible for dealership.  To know how many ADC counters are willing to deal with Berger Paints?  To recommend a suggestion for the company.  To create an awareness among the dealer about Berger Paints.  To contact the potential dealers in future.  To know which type of dealers are more interested in Berger Paints. 5.2) Scope of Study The main scopes of the study are listed below:  It gives us information about the scope of opening a dealership account in different towns.  It gives us information about the proportion of dedicated Berger Paints dealers.  It shows the market share of Berger Paints with respect to its competitor.  It gives the information regarding the preference and choices of the different dealers.  The study also gives information regarding the expansion of distribution channel of Berger Paints.  It gives the information about how far the Berger is reached to interiors of Moradabad & Bijnor districts.
  57. 57. ~ 57 ~ (6) RESEARCH METHODOLOGY
  58. 58. ~ 58 ~ 6.1) Research Objective The prime objective of this research to find the prospective dealers through alternative distribution channel who can be a dealer of Berger. The main objective to this research is to map the dealer of the district Moradabad & Bijnor. 6.2) Research Design Dealer analysis that are in manufacturing business: Descriptive research design 6.3) Data  Primary Data: Primary data collected by interviewing the different types of dealers through alternative distribution channel.  Secondary Data: Collected from Ghaziabad depot by Area Sales Manager. 6.4) Research Instrument A questionnaire was provided by the company for mapping the data of different types of dealers. The questionnaire they provided was open ended and containing the straight forward questions. 6.5) Research Tool Many statistical tools like,  Bar Charts  Pie Charts  Chi-Square Test Have been used in this research to derive the conclusion
  59. 59. ~ 59 ~ 6.6) Research plan  Interviewing the prospective dealers  Collecting information and filling it up in questionnaire.  Short listing the dealers according to the information collected.  Contacting the dealers through sales representative.  Telling them about the company and persuading them to take the dealership. 6.7) Sample Size Dealers Sample Size :201 Successful Survey : 201
  61. 61. ~ 61 ~ 7.1) Type of Market Table (1.1) Market Type of Market Frequency Percent SUBURB SATELLITE MKT VILLEGE METRO TOWN 00 00 12 44 145 00.00 00.00 5.97 21.89 72.14 Total 201 100.00 METRO 22% SUBURB 0% SATELLITE 0% TOWN 72% VILLEGE 6% MARKET
  62. 62. ~ 62 ~ INTERPRETATION  Most of the market is at town, which indicates that  72.14% market is visited at town.  21.89% market is visited at metro market.  Only 5.97% market is visited at village, which indicates that there is less availability of market. 7.2) Location of Counter Table (1.2) Location Location of Counter Frequency Percent MAIN MARKET MAIN ROAD CROSS ROAD BY LANE OUTSKIRTS 40 93 28 12 28 19.9 46.3 13.9 6.0 13.9 Total 201 100.0
  63. 63. ~ 63 ~ INTERPRETATION  46.3% counters are visited at main road.  Most of counters are at main road of town, which indicates that dealers find it useful if counters are present at main road.  13.9% counters are visited at cross road & outskirts.  Only 6% of counters are visited at by lane, which indicates that there is least availability of customers there. MAIN MARKET 20% MAIN ROAD 46% CROSS ROAD 14% BY LANE 6% OUTSKIRTS 14% LOCATION
  64. 64. ~ 64 ~ 7.3) Counter Age Table (1.3) How old is the Counter Years Frequency Percent 0-5 5-10 10-15 15-20 20-25 25-30 30-35 35-40 40-45 More than 45 42 46 34 25 18 12 12 3 3 6 20.9 22.9 16.9 12.9 9.0 6.0 6.0 1.5 1.5 2.9 Total 201 100.0 20.9 22.9 16.9 12.4 9 6 6 1.5 1.5 2.9 0 5 10 15 20 25 0-5 5-10 10-15 15-20 20-25 25-30 30-35 35-40 40-45 More than 45 Percent Counter Age How old is the counter How old is the counter
  65. 65. ~ 65 ~ Interpretation  Most of the counter which is present in the Moradabad & Bijnor is among 0-5 & 5-10 years old.  Therefore these counters can have a nice customer network and it would be beneficial for Berger Paint. 7.4) Dealing in Paint or Not Table (1.4) Dealing in Paint Dealing in Paint Frequency Percent Yes No 51 150 25.4 74.6 Total 201 100.0
  66. 66. ~ 66 ~ Interpretation  25% of the dealers were already working in paint segment.  150 out of 201 are from the different sector. Yes 25% No 75% Dealing in Paint
  67. 67. ~ 67 ~ 7.5) Turnover in Lakhs Table (1.5) Turnover Turnover (in lakhs) Frequency Percent 0-5 5-10 10-15 15-20 20-25 25-30 30-35 35-40 40-45 45-50 More than 50 39 34 42 33 15 10 8 3 2 0 15 19.4 16.9 20.9 16.4 7.5 4.9 4.0 1.5 1.0 0.0 7.5 201 100.0 0 5 10 15 20 25 0-5 5-10 10-15 15-20 20-25 25-30 30-35 35-40 40-45 45-50 More than 50 Turnover 19.4 16.9 20.9 16.4 7.5 4.9 4 1.5 1 0 7.5 Percent Turnover
  68. 68. ~ 68 ~ Interpretation  Most of the dealers I have visited are having an approximate turnover of 10-15 lakhs per annum.  This is a nice number for giving dealership. 7.6) Paint Dealers Dealing With Which Company Table (1.6) Company Name Company Frequency Percent Berger Asian Nerolac Local Asian + Nerolac + ICI More than 1 Including Berger 18 11 3 3 3 13 35.3 21.5 5.9 5.9 5.9 25.5 Total 51 100.0
  69. 69. ~ 69 ~ Interpretation  31 dealers were already dealing in Berger.  16 dealers were having more than one paint company dealership.  Out of 31 dealers were dealing directly with Berger Paints.  This shows that there is an opportunity to target the Berger Paint’s dealers which are dealing with wholesaler. 35.30% 21.50% 5.90% 5.90% 5.90% 25.50% 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 Berger Asian Nerolac Local Asian + Nerolac +ICI More Than 1 Including Berger Percent Company Company Name Company Name
  70. 70. ~ 70 ~ 7.7) CB Machine Availability (51 dealers were working in the paint segment.) Table (1.7) CB Machine Does dealer have a CB Machine Frequency Percent Yes No 28 23 54.9 45.1 Total 51 100.0 Interpretation  54.9% paint dealers have a CB Machine.  45.1% paint dealers have not CB Machine. Yes 55% No 45% CB Machine
  71. 71. ~ 71 ~ 7.8) Company Name of CB Machine Table (1.8) Machine Name Company Name Frequency Percent Berger Asian Nerolac ICI Berger + Asain Asain + ICI 12 6 5 1 3 1 42.9 21.4 17.8 3.6 10.7 3.6 Total 28 100.0 Berger 43% Asian 21% Nerolac 18% ICI 3% Berger + Asian 11% Asian + ICI 4% Machine Name
  72. 72. ~ 72 ~ Interpretation  Only 15 dealers out of 28 are having Berger CB Machine.  This shows that remaining 13 existing dealers should be persuaded and targeted for CB Machine.  We can see that dealers are having more machines of Berger Paints. 7.9) Willing To Deal with BERGER Table (1.9) Willing to deal with Berger Willing to Deal Frequency Percent Already Dealing Yes Maybe No 28 43 11 119 13.9 21.4 5.5 59.2 Total 201 100.0
  73. 73. ~ 73 ~ Interpretation  13.9% dealers were already having dealership of Berger Paint.  We can see that 21.4% (43) dealers are ready to be a part of Berger Paint.  5.5% of the dealers will be deal with Berger in future. Already Dealing 14% Yes 21% Maybe 6% No 59% Willing to Deal
  74. 74. ~ 74 ~ 7.10) When to Approach Table (1.10) When to Approach When to Approach Frequency Percent Immediate Later 20 34 37.04 62.96 Total 54 100.00 Interpretation  37.04% (20) dealers want to deal with Berger Paint immediate.  62.96% (34) dealers want to deal with Berger Paint later. Immediate 37% Later 63% When to Approach
  75. 75. ~ 75 ~ 7.11) CHI-SQUARE TEST: Null Hypothesis (H0) - There is no relation between the location of counter and prospective dealers. Alternative Hypothesis (H1) - There is a relation between the location of counter and prospective dealers. Location Location Observed N Expected N Residual Main Market Main Road Cross Road By Lane Outskirts 40 93 28 12 28 40.2 40.2 40.2 40.2 40.2 -0.2 52.8 -12.2 -28.2 -12.2 Total 201 Test Statistics Location Chi-Square Degree of Freedom Assume. Sig. 96.534 4 .000 Interpretation  As sig. value is less than 0.05, and then we should reject the null hypothesis.  So it can be concluded that alternate hypothesis can be accepted and there is a difference between the prospective dealers and there counter location.
  76. 76. ~ 76 ~ 7.12) Counter Names & Contact No. Counter Name Contact Person Town District Pin code Phone No Mobile No .M/S ADESH KUMAR NIMIT KUMAR ADESH KUMAR Chandpur Bijnor 246725 0 9411847881 A.S. Enterprises Mr.Umar Sambhal Road Moradabad 244001 0 9219095410 afjalgarh khad bhandar kamal agarwal Afjalgarh Bijnor 246722 0 9456823394 Agarwal Machinery Store Mr.Sudhir Agarwal katra road Moradabad 244001 0 0591-2314953 Ahamad Steel Mr.Najeemu Shad Prince Road Moradabad 244001 0 5912486596 alfa paint & hardware rahman Seohara Bijnor 246746 0 9259978155 alifa cement store moh. afjal Surjannagar Moradabad 244602 0 9568864789 al-rana hardware sanitary& electrical store sadaqt husain Sahaspur Bijnor 246745 0 9897331545 amolak chand & sons atul jain Afjalgarh Bijnor 246722 0 9411428184 ansari group ishaq ali Thakurdwara Moradabad 244601 0 8899209988 ANURAG CEMENT STORE KAMENDRA SINGH Noorpur Bijnor 246734 0 9639140501 Arora Brothers Mr.Rajesh Arora Prince Road Moradabad 244001 0 9837684654 arshad plywood shadab Kanth Moradabad 244501 0 8791728402 arya hardware anurag Seohara Bijnor 246746 0 9536510218 avon glass works moh. umar Thakurdwara Moradabad 244601 0 9897996495 Banarsi Das & Brothers Mr.Divakar Sharma Town hall Market Moradabad 244001 0 9359702964 Banarsidas Mukut Bihari Lal Mr.Ashok Gupta Dhampur Bijnor 246761 0 9412216794 batsal paint store sarvesh kumar Badigarh Bijnor 246722 0 9719154118 bharat cement & paint store tasleem Kanth Moradabad 244501 0 9837451457 bharat hardware moh. nadeem Dhampur Bijnor 246761 0 9897744055 bharat marbels saud Afjalgarh Bijnor 246722 0 9675010326 bharat paints pritam singh Dhampur Bijnor 246761 0 9410603602 BHARAT PAINTS CHANDRA MOHAN AGARWAL Chandpur Bijnor 246725 0 9412856899 bharat traders hafizi galsaheed choraha Moradabad 244001 0 9837644890 bhart cement store moh. hanif Afjalgarh Bijnor 246722 0 9690944885 bhart paint & sanitary store farukh Kanth Moradabad 244501 0 9837055277 bisnoi cement store prakash jain Surjannagar Moradabad 244602 0 9412805481 Chandi Prashad Kailas Chandra Mr.Krishna Gopal Dhampur Bijnor 246761 0 0114-22133 CHANDPUR HARDWARE STORE MAHMOOD AHAMAD Chandpur Bijnor 246725 0 9412522528 chaudhary furniture house vijay pal singh Surjannagar Moradabad 244602 0 9411872429 chaudhary hardware,paint & sanitary store rahman Seohara Bijnor 246746 0 8057700012 chaudhary paint store mashoor hasan Thakurdwara Moradabad 244601 0 9837784669 chauhan hardware & plywood hari singh Surjannagar Moradabad 244602 0 9837990737 constraction house bhopal singh Dhampur Bijnor 246761 0 9897428238
  77. 77. ~ 77 ~ DANISH TRADERS SARFARAJ AHAMAD Noorpur Bijnor 246734 0 9675200778 Deep Emporium Mr.Deep katra road Moradabad 244001 0 936811155 DELHI TOOLS RIHAN Chandpur Bijnor 246725 0 8859794603 divya cement store satish kumar Dhampur Bijnor 246761 0 9759811610 ekta steel sandeep Noorpur Bijnor 246734 0 9410432980 faisal cement & paint store moh. yaseen Kanth Moradabad 244501 0 9917143221 GAMBHIR PAINTS DEVENDRA GAMBHIR Noorpur Bijnor 246734 0 9719461121 GARG PLYWOOD SANJEEV AGARWAL Chandpur Bijnor 246725 0 9412528241 GHAFAR AHAMAD Cement Agency GHAFAR AHAMAD Noorpur Bijnor 246734 0 9719452160 global electrical Moh. farman Seohara Bijnor 246746 0 9058012818 golden hardware mohamad atiq Seohara Bijnor 246746 0 911042879 golden trders faraj ahamad Sahaspur Bijnor 246745 0 9627088887 gulsan plywood works sakir Thakurdwara Moradabad 244601 0 9837134677 Gupta Enterprises Mr.Asvani kumar Sambhal Road Moradabad 244001 0 9927031986 gupta plywood & hardware store gupta ji Kanth Moradabad 244501 0 0 gurunanak hardware store lakhbir singh Badigarh Bijnor 246722 0 9411832891 Habib Cement Store Mr.kasar Prince Road Moradabad 244001 0 9837070218 hamja hardware store shajad Kanth Moradabad 244501 0 9058666487 hanjala bath & tiles farid ahamad Dhampur Bijnor 246761 0 9634373677 harsh cement store mukul agarwal Thakurdwara Moradabad 244601 0 9412389818 HARSHIT PVT. LTD. ANAND KASHYAP Noorpur Bijnor 246734 0 9719637430 hasni cement store sakir ali Thakurdwara Moradabad 244601 0 9837823000 hasnihardware store gulsan sabir Thakurdwara Moradabad 244601 0 9927075454 hazi cement store zulfukar ali Thakurdwara Moradabad 244601 0 9927301210 hazi paint store hazi mobeen ahamad Surjannagar Moradabad 244602 0 9756142955 hindustan cement store rakesh kumar Seohara Bijnor 246746 0 9837401410 Hindustan Machinery Store Mohamad Abdul Salam katra road Moradabad 244001 0 9859102270 hindustan paint store yameen Sahaspur Bijnor 246745 0 9528031579 Hindustan Paints & marbels Ashok miglani Budh bazaar Moradabad 244001 0 2322263 HS TRADERS SAMSUL KHAN Chandpur Bijnor 246725 0 9927138881 indian paint store rashid husain Afjalgarh Bijnor 246722 0 8909854418 indian paint store abid husain Kanth Moradabad 244501 0 9837564868 Indian paint store Mohamad Fahim prince road Moradabad 244001 0 9358866755 indian plywood & hardware store wajid ali Kanth Moradabad 244501 0 9456873449 israr ahamad cement agency israr ahamad Dhampur Bijnor 246761 0 9412133690 j.k.hardware dusyant kumar Dhampur Bijnor 246761 0 01344-221642 j.k.s.traders saeed ahamad Dhampur Bijnor 246761 0 9862306225 jagdish prakash agarwal ravi prakash Dhampur Bijnor 246761 0 9897742940 janta furniture najakat ali Badigarh Bijnor 246722 0 9756507508 janta hardware store sakir aalam Thakurdwara Moradabad 244601 0 9412435659 janta pipe store vineet agarwal Afjalgarh Bijnor 246722 0 9012451000 Jeewan Das Madan Gopal Mr.Jeewan Das Budh bazaar Moradabad 244001 0 9411636788
  78. 78. ~ 78 ~ Joyti Paints pankaj Budh bazaar Moradabad 244001 0 9319942052 julfukar plywood julfukar ahamad Badigarh Bijnor 246722 0 9997571091 Karanwal Cement Agency RAJA KARANWAL Noorpur Bijnor 246734 0 9536822599 KAVI & SONS MOH. DANISH Thakurdwara Moradabad 244601 0 9012112586 khandelwal iron & cement store vikas khandelwal Thakurdwara Moradabad 244601 0 9639203046 khandewal iron & cement store vikas Thakurdwara Moradabad 244601 0 9412494088 Kisan Agriculture & Machinery Store LIKESH KUMAR Noorpur Bijnor 246734 0 9759182013 kisan kasth kala udhuog hazi sarajudeen Kanth Moradabad 244501 0 9411096200 kisan pipe & hardware store jaiveer singh Badigarh Bijnor 246722 0 9756556820 kosik traders chandraprakash Afjalgarh Bijnor 246722 0 9917114685 krishak pipe & hardware store mohamad ismile Seohara Bijnor 246746 0 9927812288 Kumar Locks Suplyers Mr.Asutosh Kumar Dhampur Bijnor 246761 0 9412440453 kumar paints vikas agarwal Dhampur Bijnor 246761 0 9412117811 KUMAR TRADERS ASHOK KUMAR Noorpur Bijnor 246734 0 9719673730 Lala Ramavtar Sanjeev Kumar Mr.Sanjeev Kumar Dhampur Bijnor 246761 0 9760246212 Laxmi Enterprises Mr.Hitesh kumar Agarwal Sambhal Road Moradabad 244001 0 9837220982 LAXMI PLYWOOD SUSHIL KUMAR Noorpur Bijnor 246734 0 8979443234 Laxmi Sanitary Mr.Sandeep Prince Road Moradabad 244001 0 9917878877 liba water plant kafeel ahamad Afjalgarh Bijnor 246722 0 9719563297 LOLT Agarwal Steel & Cement MRT MR.Chaudhary Nisar Ahamad Budh bazaar Moradabad 244001 0 9012410786 lucky glass store afsar husain Budh bazaar Moradabad 244001 0 9837439655 lucky pipe store raish ahamad Surjannagar Moradabad 244602 0 9761797710 M.K. BUILDING MATERIALS MOH. KAFIL AHAMAD Noorpur Bijnor 246734 0 9758786547 M.R.CEMENT STORE MOH. RAFI Noorpur Bijnor 246734 0 9719212491 m/s krashak shewa kendra suresh pal singh Afjalgarh Bijnor 246722 0 9412855236 MAKSUD AHAMAD CEMENT AGENCY MAKSUD AHAMAD Noorpur Bijnor 246734 0 9897841275 MAQSUD AHAMAD CEMENT AGENCY MAQSUD AHAMAD Noorpur Bijnor 246734 0 9897841275 maya cement store radheshyam Kanth Moradabad 244501 0 9359844213 MAYANK TRADERS MUKESH AGARWAL Noorpur Bijnor 246734 0 9411042631 Mittal Pipe Store Mr.Vinod Kumar Dhampur Bijnor 246761 0 9897051638 Mittal Pipe Store Mr.Mittal katra road Moradabad 244001 0 9837032061 moh. akram cement store moh. akram Badigarh Bijnor 246722 0 8958849875 moin cement store moin Badigarh Bijnor 246722 0 8869077914 monu plywood samsad ahamad Afjalgarh Bijnor 246722 0 9720972012 naman electrical jitendra singh Surjannagar Moradabad 244602 0 9760629595 NARGISH TRADERS NAIM ASRAF Chandpur Bijnor 246725 0 9012241219 national cement store firoj aalam Kanth Moradabad 244501 0 0 national hardware arshad Dhampur Bijnor 246761 0 9411051135 national hardware khursheed ahamad Noorpur Bijnor 246734 0 0 national hardware store muzib ahamad Afjalgarh Bijnor 246722 0 9639270011 NATIONAL PLYWOOD ISRAR ALI Noorpur Bijnor 246734 0 9837927396
  79. 79. ~ 79 ~ National Plywood Store Mr.Mahmood Alam Sambhal Road Moradabad 244001 0 9457854586 Navrang Paints Mr.Sabahat Husain Galsheed Choraha Moradabad 244001 0 9927325848 New Agarwal Paint Store Mr.Anil Kumar Agarwal Sambhal Road Moradabad 244001 0 9759934475 New National Plywood Vikram Budh bazaar Moradabad 244001 0 9837656234 new plywood & glass store babu bhai Budh baza Moradabad 244001 0 9927260530 new welcome enterprises aftab ahamad Seohara Bijnor 246746 0 9897889015 NIJAMUDEEN BORING WORKERS NIJAMUDEEN Noorpur Bijnor 246734 0 9719097935 Noor Ply Board Mr.Noor Sambhal Road Moradabad 244001 0 9927916798 NOOR TRADERS SAFIQ AHAMAD Noorpur Bijnor 246734 0 9639715325 noori hardware store noor ahamad Thakurdwara Moradabad 244601 0 9927408084 Om Shri Paints Sanjay Budh bazaar Moradabad 244001 0 9997908458 plywood & hadware store vineet singh Badigarh Bijnor 246722 0 9927174296 PRADEEP TIMBER MERCHANT PRADEEP Noorpur Bijnor 246734 0 9897645203 pushpak trders jitendra kumar Seohara Bijnor 246746 0 9411224149 QUALITY PAINTS AFTAB JAIDI Chandpur Bijnor 246725 0 9411361616 QUALITY TRADERS DEEPAK Noorpur Bijnor 246734 0 9719415694 R.A. Metals Mr.Rohit Agarwal katra road Moradabad 244001 0 0591-2410655 r.k. machinery store kapil Thakurdwara Moradabad 244601 0 9897432653 R.K. Sanitary Store Mr.Rakesh Kumar Prince Road Moradabad 244001 0 9675073041 r.k.sanitary & paint store rashid khan Thakurdwara Moradabad 244601 0 9639198960 rachna hardware store Rachna katra road Moradabad 244001 0 0591-6533701 RAHUL MACHINERY Store RAM AVTAR SINGH Chandpur Bijnor 246725 0 9410600056 Raja ram Paints Mr.Umang Kumar Dhampur Bijnor 246761 0 9457257831 RAJA TRADERS SUHAIL RAJA Noorpur Bijnor 246734 0 7409424646 rajaram steel corporation rajaram Dhampur Bijnor 246761 0 01344-230283 rajasthan marbles asrar ahamad Dhampur Bijnor 246761 0 9412116425 RAJU TRADERS RAJEEV DUBEY Chandpur Bijnor 246725 0 9719585564 ram paints sourabh maheshwari Dhampur Bijnor 246761 0 9412115675 Rameshwar Saran Ram Bharose Lal Mr.Rameshwar Saran katra road Moradabad 244001 0 0 Regal Plywood & Hardware Store Mr.Nabid Yaseen Prince Road Moradabad 244001 0 9897114264 Roshan Lal Mr.Yashpal katra road Moradabad 244001 0 9412494231 s.k. agriculture moh. Suhail Noorpur Bijnor 246734 0 9639058864 SAFI AGRICULTURE ABDUL WAHID Noorpur Bijnor 246734 0 9837349761 safi hardware moh. parveez ahamad Dhampur Bijnor 246761 0 9690101289 safi hardware Yameen Seohara Bijnor 246746 0 0 safi traders moh. Akram Kanth Moradabad 244501 0 9412512052 sagun pipe store sushil kumar Afjalgarh Bijnor 246722 0 9756602447 sahdev paints & sanitary store Vikas Surjannagar Moradabad 244602 0 9411843528 Saini Cement Store Mr.Bhoop Singh Saini Sambhal Road Moradabad 244001 0 9761307630 sakir machinery store Sakir Noorpur Bijnor 246734 0 9557864543 Saleen Building Materials FAIHM Chandpur Bijnor 246725 0 9927826276
  80. 80. ~ 80 ~ Sameem & Sons Traders WASIM AKHTAR Chandpur Bijnor 246725 0 9837557830 Sameer Glass Store Mr.Shariq Sirak Sambhal Road Moradabad 244001 0 7417742965 SAMEER TRADERS WAKAR ANSARI Noorpur Bijnor 246734 0 9536877459 sanjay traders sanjay kumar Afjalgarh Bijnor 246722 0 9528424800 santi cement store mahendra singh Dhampur Bijnor 246761 0 9634591850 sarad traders sarad gupta Afjalgarh Bijnor 246722 0 9012417082 satna cement store babu pradhan Badigarh Bijnor 246722 0 9837041626 Satya prakash & Sons Mr.Satya Prakash Budh bazar Moradabad 244001 0 9368226554 Seema Paint Store Mr.Ifamulhaq Islamile Road Moradabad 244001 0 9837114323 Shabudeen Cement Store SHABUDEEN Noorpur Bijnor 246734 0 8057207472 Shadab Paint Mr.Shadab indra chowk Moradabad 244001 0 9557708828 Shan Glass Store Mr.Parveez Sambhal Road Moradabad 244001 0 8439492051 shiv traders dayanand bisnoi Surjannagar Moradabad 244602 0 9456079165 Shivam Plywood & Hardware Store Shivam Budh bazaar Moradabad 244001 0 9897062191 shree bala ji machinery store Rajul Afjalgarh Bijnor 246722 0 0 shree krishna cement store chandraveer singh Dhampur Bijnor 246761 0 979548452 shri balaji traders rajeev bisnoi Kanth Moradabad 244501 0 9897909016 singhal brothers rachit singhal Thakurdwara Moradabad 244601 0 9927053059 Singhal Enterprises Mr.Mudit Agarwal Moradabad Moradabad 244001 0 9837099887 Singhal Paints Mr.Shashank Agarwal Moradabad Moradabad 244001 0 9897232577 sony traders wazid khan Surjannagar Moradabad 244602 0 9412309821 sourabh traders sourabh jain Afjalgarh Bijnor 246722 0 9412855548 star plywood & hardware store shazad ali Thakurdwara Moradabad 244601 0 9997147824 Subhash Cement& Hardware Store SUBHASH Noorpur Bijnor 246734 0 9536976599 surendra paints Surendra Dhampur Bijnor 246761 0 9456069011 taj tarders Waheed Noorpur Bijnor 246734 0 9897844844 tuba marbels jamshed aalam Kanth Moradabad 244501 0 9897790248 Umrav Mal Ramniwas Mr.Umravmal Dhampur Bijnor 246761 0 9897063136 usmani marbels muzib ahamad Afjalgarh Bijnor 246722 0 9756312968 Vaish Brothers Mr.Rajeev Mprince road Moradabad 244001 0 8909654701 vardan cement &sanitary store anoop kumar Dhampur Bijnor 246761 0 9837589075 vikas plywood sultan ahamad Kanth Moradabad 244501 0 9045155274 vipul traders Vipul Dhampur Bijnor 246761 0 9419602015 visal paint& hardware store hasaan chaudhary Seohara Bijnor 246746 0 9719966287 Vishal traders Mr.Dleep Gupta harpal nagar Moradabad 244001 0 9756500787 washim plywood washim ahamad Afjalgarh Bijnor 246722 0 9719557404 Wasim Cement & Iron Store WASIM Noorpur Bijnor 246734 0 8755158167 Welcome Agriculture & Cement Store MOH. AAUB Noorpur Bijnor 246734 0 9719450974 welcome agriculture store moh. Imran Noorpur Bijnor 246734 0 9219615497 y.s. hardware & plywood yogendra singh Surjannagar Moradabad 244602 0 9756838060 yadav hardware & sanitary gorav yadav Seohara Bijnor 246746 0 9410434072 Yash MachineryStore KOSAL SINGH Noorpur Bijnor 246734 0 9719891594
  82. 82. ~ 82 ~ This comparison is done on the basis of the good features of an advertisement 8.1) Interior Paint Berger Paints Product Name Berger Rangoli Easy Clean Description Father and son made up a mess of the wall, then mom comes up and looks at their scared faces and says that its easy clean paint where walls can be washed to remove dirt without affecting the colour. Attention Factor The display is quite capable of getting the attention of the common mass as we can see that the lady in the house who is generally most concerned about the cleanliness and longevity of the house takes everything casually as she knows what has been done can be undone easily. This usually attracts the attention of the wives and even the husbands. Memorizing Factor The punch line in this display i.e. “daag jaye par rang na jaye”, is quite appealing and people will remember this add for this punch line. Sentimental Appeal The casual approach of the lady shown in this act works as sentimental appeal for all women who usually are the most concerned within the family. Education Factor Just a wash can free the wall of all dust, dirt and stains. Asian Paints Product Name Asian Paints Royale (Luxury Emulsion) Description Saif Ali Khan who was playing video game and was unaware of the fact that there was a clash between his dog and his house butler, who was carrying some food and drinks for Saif and eventually all the food and drinks gets spilt on the walls making a mess of it, later it could be easily wiped out because of the Teflon surface protector. Attention Factor 1) Saif Ali Khan a Bollywood superstar 2) Less cautious nature while at home
  83. 83. ~ 83 ~ Memorizing Factor This advertisement is repeated a lot in most of the commercial and news channels which serves the memorizing factor. Sentimental Appeal Saif Ali Khan a Bollywood superstar and a member of the royal family advertising for Asian Paints Royale. It’s a good strategy of Asian Paints to bring both the Royals together. Education Factor Because of the Teflon surface protector in the paint, the walls will not get easily damaged. Kansai Nerolac Product Name Neerolac Impressions Eco Clean Description In a newly painted house the husband (SRK) is with his daughter and pregnant wife. As the paint is free of VOC and Lead its harmless for even new born children. It is shown that any scribbling in the walls can be easily washed off i.e. the paint is washable. Attention Factor Firstly, as because of no fumes and pollutants in the paint it’s even safe for pregnant women as well as new born babies and secondly, paints are wash proof. Memorizing Factor It’s not a much repeated commercial as compared to Asian Paints and Berger Paints. Hence its memorizing factor is low as compared to the rest. Sentimental Appeal Appearance of King Khan in this commercial as a Brand ambassador is itself the strongest sentimental appeal compared to others for a major section of the population. Education Factor It’s not having any side effect as it comes with low VOC and it’s totally lead free.
  84. 84. ~ 84 ~ 8.2) Exterior Paints Berger Paints Product Name Weather Coat All Guard Exterior Paints Description A girl child standing in the window and experiencing the reverse effect of rain i.e. water moving up back to the sky, resembling the same in case of the exterior walls where water will not percolate and damage the construction after the rains. Attention Factor Slogans like “Reverse the effect of rain” and “7 years of warranty” are good for gaining the attention of the viewers. Memorizing Factor “Reverse the effect of rain” is said a numerous times within the add which will stay in mind easily. Sentimental Appeal Keeping the walls fungus free and spotless Education Factor Presence of silicon pushes water away leaving the walls spotless, fungus free, and rain proof Asian Paints Product Name Asian Paints Ultima Description Features or key advantages are not shown directly to the customers but through expressions and acts it is made understandable that year after year the exterior paint of the house stays without losing its color and glamour, starting from the birth of the child till marriage. Attention Factor “7 years warranty with colour stay” this slogan which means that year after year the conditions of the exterior walls remain unchanged is good in attracting the attention of the viewers. Memorizing Factor 4 to 5 times when the owner of the house tries to tell about the qualities of his son to the different visitors, the visitors without giving attention to his son starts praising or complementing the paint which he has used for his exterior walls. Sentimental Appeal No such sentimental stuffs are related to this advertisement Education Factor No such educating stuffs are related to this advertisement
  85. 85. ~ 85 ~ Kansai Nerolac Product Name Nerolac Exel Exterior Paint Description Son was trying to take a rotten apple then mom comes up and says which is rotten from outside its even rotten from inside, now the brand ambassador SRK comes up and says that the same is the case with the house (directing towards their house which presents a shabby look from outside) so put nerolac paints to keep your house safe from outside which will automatically keep it safe from inside, using the key words like anti germs, anti allergy and anti pollution. Attention Factor Anti Germs Anti Allergy Anti Pollution No Harmful Fumes Memorizing Factor The comparison shown between the rotten apple and the house. Sentimental Appeal The bollywood star Shah Rukh Khan giving promotion to any product will itself have a sentimental appeal for a major section of the Indian population. Education Factor Tagged as Healthy home paints (low VOC and Lead Free)
  86. 86. ~ 86 ~ (9) OBSERVATIONS AND FINDINGS
  87. 87. ~ 87 ~ 9.1) DEALERS AVAILABILITY  From the study it can be observed that most of the dealers are present at the main road of the town.  By Lane dealers are very less.  Berger paints awareness is more in urban market as compared to rural markets.  Asian Paints is the biggest competitor in the market.  Berger Paints is performing well in interior and exterior paints.  Out of the sample surveyed, it is found that company has great opportunities in the market.  Some of the previous dealers of Berger thinks that scheme should be available for all seasons.  Some of the dealers think that there are fewer profit margins.  Most of the contractors are satisfied with the paint quality of Berger, mostly the primer.
  88. 88. ~ 88 ~ 9.2) SWOT Analysis of Berger Paints STRENGTHS  Wide range of product and service offering  Sales force.  High on quality and preferred by customers  Comparatively less price with respect to its competitors. WEAKNESS  Dependence on paint segment only.  Less awareness in rural markets.  Less concentration in decorative segment. OPPORTUNITIES  Many new products has been launched  New segment of customers targeted  Growing business of real estate.  Rural customers can be targeted. THREATS  Fluctuation in raw material prices  Intense competition from pioneer brands.  Price competition.
  89. 89. ~ 89 ~ (10) RECOMMENDATIONS
  90. 90. ~ 90 ~ 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 :-  Alternate distribution channel demanded for the training programs based on the new product launches.  Berger should also concentrate on rural markets.  Dealers want to improvement in transportation at town.  It would be beneficial for the company if they can increase its sales and distribution in villages.  Another alarming factor is that now a day Berger Paints decorative segment’s products are giving less coverage as compared to earlier times. So steps should be taken to make the quality of the paint better and thicker to satisfy the existing customers.  Shade cards should be made easily available to the contractors.  As far as the interior and exterior texture paints are concerned the versatility of the designs should be increased and designs should be more attractive.  Booklets consisting of various wall designs as well as different shades should be made available to the householders from where they can chose which category or quality or design will best suit their personality.  Stalls should be given in front of the construction sites, so that when people come to see the flats they have bought, they can be demonstrated with different kinds of wall paints and texture designs. These prospects can be easily converted into successful sale.
  91. 91. ~ 91 ~ (11) LIMITATIONS & SCOPE OF STUDY
  92. 92. ~ 92 ~ 11.1) Limitations  Survey area was confined to Moradabad & Bijnor.  Survey was totally confined with small dealers and no builder was contacted.  Time span was limited to 1 month.  Questions were mostly open ended.  There was less scope of feedback from end customers. 11.2) Future Scopes  This study can be used by the company to convert more dealers into dedicated Berger Paints customers.  Analyses the requirements of the alternate channels and devise strategies of market penetration.  Make a quantitative research and analysis of the effectiveness of its sales force.
  93. 93. ~ 93 ~ (12) CONCLUSION
  94. 94. ~ 94 ~ Conclusion It was a good experience doing my training in totally different industry. Through this project I became aware of paint industry and its operations. The various findings during the project were that the market share of Berger Paints is around 33%. The major competitors of Berger are Asian Paints, ICI, Shalimar. During the project I learned about various aspects of the paints industry. I learned about various functions performed by the company like Business Development, Dealers’ perception about the company’s products and performance, channel management, margins to the dealers and various facets of the distribution system. There is a huge potential for the paints industry as household incomes are rising and people prefer to innovate with newer colors in their homes. There is always demand for quality products and Berger being a preferred brand among customers. Dealers prefer keeping this brand as it has a sizeable demand in the market.
  96. 96. ~ 96 ~ Bibliography  Marketing Management: A South Asian Perspective by Philip Kotler, Abraham Koshy, Kevin Lane Keller, Mithileswar Jha  Marketing Research: An Applied Orientation by Naresh K. Malhotra, Satyabhushan Dash  Advertising and Promotion by Keyoor Purani, George E Belch, Michael A Belch Reference  http://www.bergerpaints.com/  http://en.wikipedia.org/  http://stockshastra.moneyworks4me.com/paints-indian-paint- industry-analysis-and-research-report-2011/  http://www.scribd.com/  http://www.slideshare.net/
  97. 97. ~ 97 ~ APPENDIX
  98. 98. ~ 98 ~ PROSPECTIVE COUNTER- DATA MAPPING Date Mapped By : Dealer Contact Details (Location) Counter Name Name of Person Other Family Members Involved Father / Wife / Son / Brother Name of the Family members Involved Town District Pin Code Bank Details (Name of Bank) Counter Phone Number Mobile Number How old is the counter Counter Profile Type of Market Metro / Suburb / Satellite Mkt / Town / Village Population of Market Location of Counter Main Market / Main Road / Cross Road / Bylane / Outskirts Landmark near store Transporter's who service the Market (in case of non depot market) Transporter Name Contact Person Contact Nos Proximity Alert Any Berger Counter Present Yes / No Distance from This Counter (km) Dealer Annual Turnover (lacs) Rs Lakh p.a. Companies He is dealing with (pl mention Name of Co. & No. of years of dealing) Cement : Hardware : Steel : Tile : Sanitaryware : Electrical : Pumps : Glass : Plywood : Paint : If Dealing in Paint : Annual Turnover in Paints Does dealer have a CB machine If Yes then of which Company. If Dealing in Const Chemicals : Sale Contribution Details (% sales) Thru Wholesale % Thru Customer % Thru Painter % Thru Sites % If a Wholeseller Which Products
  99. 99. ~ 99 ~ How Many Vehicles Which Districts are Serviced How Many Retailers Serviced Overall Comments / Recommendation Willing to Deal with Berger Yes / Maybe / No When to approach Immediate / Later If Later, Details…
  100. 100. ~ 100 ~