berger final ppt

A STUDY AND COMPARATIVE ANALYSIS OF MARKET POTENTIAL

OF BERGER PAINTS

byS.P.Vinoth rajah

COMPANY INTRODUCTION Berger Paints India Limited is an Indian paint company which

operates chiefly in India headquartered in Kolkata.

It has come a long way since its inception in 17th December, 1923.

India’s second largest decorative paint player, Berger Paints services the market through a distribution network of 82 stock points and 12,000+paint retailers.

MARKET SHARE

19%

30%

20%

12%

19%

Berger PaintsAsian PaintsKansai NerolacICI PaintsOther Brand Paints

Source- www.equitymaster.com

OBJECTIVES

• Primary Objective:

To identify the drawbacks, why the market share of Lewis

Berger paints is less when compared to other competitive

products.

OBJECTIVES

• Secondary Objectives:– To study the presence of other similar brands in the

different channels and compare it with Berger Paints.

– Our work comprised of visiting different places, to reach

out to 100 retail counters in the specific area.

– To find out the necessary steps to overcome the

drawbacks Berger Paints.

RESEARCH METHODOLOGY

• Research Design:– Descriptive research design.

• Data Source:– Primary Source – Paint Dealers.

– Secondary Source – Records of the company and Internet.

RESEARCH METHODOLOGY

• Data Collection Method:– Survey Method:

• By personal interview using framed questionnaire.

– Sampling Design:

• Stratified Sampling.

– Size:

• 100 respondents.

BRAND

14%

53%

12%

6%

15%

BERGERASIANICINEROLACOTHERS

COMPANY NUMBERS

Berger 24

Asian 90

ICI 20

Nerolac 11

Others 26

MACHINE

13%

68%

11%

3%5%

BERGER ASIAN ICI NEROLAC OTHERS

COMPANY NUMBERS

BERGER 14

ASIAN 73

ICI 12

NEROLAC 3

OTHERS 5

PAINTS SALES PER MONTH (IN LITRES)

Berger Asian ICI Nerolac Others

0 - 500 L 0.375 0.222222222222222

0.45 0.818181818181818

0.576923076923077

501- 1500 L 0.166666666666667

0.133333333333333

0.25 0.0909090909090909

0.269230769230769

1501- 3000L 0.25 0.188888888888889

0.2 0.0909090909090909

0.115384615384615

3001-5000L 0.166666666666667

0.2 0.05 0 0

Above 5000L 0.0416666666666667

0.255555555555556

0.05 0 0.0384615384615385

5.0%15.0%25.0%35.0%45.0%55.0%65.0%75.0%85.0%

PAINTS SALES PER MONTH (IN RS)


0 - 1 Lac 0.375 0.222222222222222

0.5 0.636363636363637

0.576923076923077

3 Lacs & Below 0.0416666666666667

0.144444444444445

0.15 0.181818181818182

0.230769230769231

6 Lacs & Below 0.166666666666667

0.144444444444445

0.15 0.0909090909090909

0.0769230769230769

10 Lacs & Below 0.333333333333333

0.144444444444445

0.2 0 0.0769230769230769

Above 10 Lacs 0.0833333333333333

0.344444444444445

0 0.0909090909090909

0.0384615384615385

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

65.0%

DEALERSHIP (%)

Paints Hardwares Tiles Electricals Cement Steel

0-20 26 38 0 11 10 4

21-40 33 23 33 16 17 26

41-60 18 27 67 32 43 0

61-80 15 13 0 42 30 70

81-100 8 0 0 0 0 0

5

15

25

35

45

55

65

CUSTOMER PROFILE

CUSTOMER PROFILE NUMBERS

House Owners 99

Painters 90

Contractors 42

Engineers 39

37%

33%

16%

14%

CUSTOMER PROFILE (%)

House Owners

Painters

Contractors

Engineers

HOUSE OWNERS BUYS PAINT ON WHOSE RECOMMENDATION

PARTICULARS NUMBERS

Painter 63

Contractor 6

Engineer 6

Neighbour 17

Own Decision 75

38%

4%4%

10%

45%

HOUSE OWNER DECISION RECOMMENDATION (%)

PainterContractorEngineerNeighbourOwn Decision

DELIVERY PERIOD

Asian Berger ICI Nerolac Others

< 2 Hrs 0.0444444444444445

0 0 0 0

2 - 4 Hrs 0.0222222222222222

0.0833333333333333

0.05 0 0

4 -6 Hrs 0.0777777777777778

0.0833333333333333

0.05 0.0909090909090909

0

6 -8 Hrs 0.0666666666666667

0 0.05 0 0.0384615384615385

24 Hrs 0.677777777777778

0.666666666666667

0.75 0.818181818181818

0.769230769230769

2 Days 0.111111111111111

0.166666666666667

0.1 0.0909090909090909

0.192307692307692

5.0%

25.0%

45.0%

65.0%

85.0%

MINIMUM LOT OF DELIVERY OF PAINTS


1 Case 0.977777777777778

1 0.95 1 0.923076923076923

20 Lts 0.0111111111111111

0 0 0 0.0384615384615385

50 Lts 0.0111111111111111

0 0.05 0 0.0384615384615385

5.0%15.0%25.0%35.0%45.0%55.0%65.0%75.0%85.0%95.0%

IF DELIVERY IS 1 CASE, THEN TIME PERIOD


< 2 Hrs 0.0333333333333333

0 0 0 0

2 - 4 Hrs 0 0.0416666666666667

0.05 0 0

4 -6 Hrs 0.0111111111111111

0.0833333333333333

0.05 0 0

6 - 8 Hrs 0.0444444444444445

0 0 0 0

24 Hrs 0.788888888888889

0.708333333333334

0.7 0.909090909090909

0.807692307692308

2 Days 0.122222222222222

0.166666666666667

0.2 0.0909090909090909

0.192307692307692

5.0%

25.0%

45.0%

65.0%

85.0%

DELIVERY PERIOD OF SLOW MOVING MATERIALS


1 Day 0.222222222222222

0.333333333333333

0.3 0.0909090909090909

0.115384615384615

2 Days 0.688888888888889

0.625 0.55 0.818181818181818

0.692307692307692

3 Days 0.0333333333333333

0 0.1 0.0909090909090909

0.192307692307692

Above 3 Days 0.0555555555555555

0.0416666666666667

0.05 0 0

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

65.0%

75.0%

85.0%

ACCOUNT STATEMENT OF PAINT COMPANIES


Excellent 0.911111111111111

1 0.9 0.909090909090909

0.730769230769231

Good 0.0777777777777778

0 0.05 0.0909090909090909

0.153846153846154

Average 0.0111111111111111

0 0.05 0 0.0769230769230769

Poor 0 0 0 0 0.0384615384615385

5.0%15.0%25.0%35.0%45.0%55.0%65.0%75.0%85.0%95.0%

WHETHER THE ACCOUNT STATEMENT IS UNDERSTANDABLE OR NOT


Yes 0.988888888888889

1 0.95 1 0.961538461538462

No 0.0111111111111111

0 0.05 0 0.0384615384615385

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

SCHEMES OF PAINT COMPANIES


Excellent 0.125 0.322222222222222

0.1 0.636363636363637

0.423076923076923

Good 0.541666666666667

0.288888888888889

0.1 0.0909090909090909

0.0384615384615385

Average 0.333333333333333

0.355555555555556

0.75 0.272727272727273

0.461538461538462

Poor 0 0.0333333333333333

0.05 0 0.0769230769230769

5.0%15.0%25.0%35.0%45.0%55.0%65.0%75.0%

WHETHER THE SCHEMES ARE UNDERSTANDABLE OR NOT


Yes 0.988888888888889

1 1 1 1

No 0.0111111111111111

0 0 0 0

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

CONCLUSIONBerger is the 2nd largest decorative paint company and third largest

paint manufacturer in India. Berger Paints is following continuous

growth strategy. The installed capacity as in FY10 for synthetic

resin was 32,287 Metric Ton (MT) per annum while paints,

varnishes and enamel together have an installed capacity of 240,315

MT per annum. The major competitors are Asian and Nerolac .

With proper marketing mix and strategy the company would be

able to increase its dominance in the whole country.

LIMITATIONS• Since regions from where researcher has to collect the data was pre

specified so some of the regions which were not stated were left out.

• Some of the dealers were hesitant in providing the information due to lack of trust and familiarity with the researcher.

• In some shops the real owners was not there so information may not be perfectively up to the point.

• Some of the dealers were inflating their sales figures.

• Only some areas were chosen for survey, so it cannot say the overall reports.

• Few dealers don’t have the awareness about the survey, so they were scared to provide the data.

SUGGESSTIONS• The advertisement is given for only few brands like silk, weather

coat, Luxol, Rangoli easy clean. Therefore the company needs to emphasize more on the promotion of sub-brands. The advertisement can be made in a funny manner which would easily reach the customers.

• Advertisements can be given in south Indian TV channels. Banners

can be given to dealers as a part of promotional activity. People are not aware about the products of Berger paints so that promotional activities are very much necessary.

• More and more women can be found perusing the shelves at paint

stalls in search of the right type of paint for their homes. So the company can target this new set of interested customers by increased advertising in women magazines.

• Distribution and transportation can be improved.

• The services provided by the company on the website are not being used because of the low penetration of internet in India. So we recommend that these facilities should be made available at the point of purchase.

• Berger could also target few new customers of the same area and

give them gift item. This would make customers feel special and the positive word of mouth, a factor of customer loyalty, can be achieved. However it is suggested that this should be done on a trial basis, for a yearlong period. If the outcome is not fruitful, Berger can always terminate the idea.

• A one year period can be used for proper evaluation of the dealers, whether or not they are making proper used of the improved financial benefits. Upon assessment of the dealers after one year, few inefficient dealers could be terminated. This would increase competition within the dealers, and thus increase productivity.

• As there are already many dealers in the urban areas the main focus

can be to increase the sale of paints in rural areas by increasing the availability in the form of making new dealers.

• Dealers need to improve their approach in selling the Color Bank

option, for which Berger can give more emphasis towards the dealers. Dealers play a vital role to attract consumer and they are the one who can convince people buying behavior. Berger Paints is already in a good position and they successfully can keep good relation with the Dealer’s but their approach should be more dynamic and more prompt.

berger final ppt

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