brandaudit of ici

8/3/2019 BrandAudit of ICI

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Brand Management

Akzo Nobel ICI

Assignment

Ali farukhh

Farid ahmed Haroon 1233

Umer Naseer 1236

Umar parvaiz

Shoaib azam 1191

MUHAMMAD JUNAID 309-1209


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April 18, 2011

Hajvery University

Euro Campus Lahore

PAINT INDUSTRY IN PAKISTAN

The paint industry in Pakistan operates both in the organized as well as the unorganized sectors. There arearound 22 paint producing units in the organized sector. There are two multinational companies also in

the organizational sector. According to an estimate, over 350 units producing paints are operating in the

unorganized sector. Many of them are also not covered under the excise net in the same way as the

organized sector and therefore, are in a better position to compete in the local market. According to the

latest findings of Federal Bureau of Statistics, around 30,000,000 liters of paint was produced from 87

units. Pakistan Paint Manufacturers Association (PPMA) represents the organized units in the paint

sector.

Paint is categorized in two broad classes; namely water based paint and solvent based paint. The

industries produce a wide range of finished and intermediate products which include pigments,

distempers, plastic emulsion, enamel, undercoat, primers, rubber paint, aircraft paint, marine paint,anticorrosive paint, anti fouling paint, etc.

Growth in Paint Industry

The demand for paints is derived from expansion in construction, building, manufacturing, transport and

other sectors. The country has yet to go a long way in its development efforts. There appears to be a

sizable potential for further strides in the countrys paint industry. Moreover, the development of

chemical industry is also taking place and therefore, most of the raw materials used by the paint industry


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are expected to be produced and manufactured locally during the next five years. The paint industry

would thus find cheaper raw material for further expansion and growth.

There are huge opportunities for the growth of paint industry in Pakistan. But due to Economical

recessions and unstable Political conditions this industry has declined. Pakistan is currently experiencing

a GDP growth rate of 3.5-4.5%. Meanwhile the paint industry is witnessing a 6-8% growth rate. This high

growth can be attributed to the current boom in both the automotive as well as the construction industry.

However if we see the data below, it can be easily said that there is still great potential for growth in the

paint industry in Pakistan.

The table above shows a comparison of the per capita consumption of paints in Pakistan, Singapore and

Brazil. Thus it can be seen that Pakistan is way behind with only 0.3 Liters of consumption from these

more developed countries.

COMPANY PROFILE

ICI Pakistan Limited

ICI Pakistan Limited (Imperial Chemical Industries) is located in Karachi, Pakistan. The company was

subsidiary of ICI Plc United Kingdom but with worldwide takeover of ICI PLC by AKZO NOBEL now

AKZO NOBEL is 75.81% stake holder of ICI PAKISTAN. It was set up as a public limited company in

Pakistan in 1952. The ICI Group is a renowned international business. It employs approximately 31,000people worldwide.

The vision of ICI is to be the leader in formulation science. It has, and continues to develop, a portfolio of

businesses that are major players within their respective industries, bringing together outstanding

knowledge of customer needs with leading edge technology platforms to provide superior products to its

customers.

Through these attributes, it aims to create superior value for ICI customers and shareholders, without

compromising its commitment to safety, health, environment and the communities in which it operates.

ICI Pakistan Limited is involved in various businesses including:

Polyester Fibers Soda Ash Paints Chemicals Pharmaceuticals

0.5 Liters Pakistan

8 - 10 Liters Singapore

4 Liters Brazil

Per Capita Consumtion [Paints]


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History

1944

The Khewra Soda Ash Company, a predecessor of ICI Pakistan Limited, set up a soda ash manufacturing

facility in Khewra with a capacity of 18,000 tonnes per annum. This facility was sited next to the saltrange as rock salt and limestone, two key raw materials needed for manufacturing soda ash, were

available here in abundance.

1953

The Khewra Soda Ash company was incorporated as a public limited company.

1966

The Khewra Soda Ash Company changed its name to ICI Pakistan Manufacturers Limited.

Over the next few decades, major changes took place in the company as our Specialty Chemicals andPolyester plants were commissioned, and Imperial Chemical Industries (Pakistan) Private Limited and

Paintex Limited both merged into ICI Pakistan Manufacturers Limited.

1987

We changed our name to ICI Pakistan Limited

We launch our Seeds business as well as the Dulux range of coatings.

We also established ICI Pakistan PowerGen and set up the ICI Pakistan Foundation as a charitable trust.

1995

We set up a USD 490 million PTA manufacturing facility at Port Qasim, near Karachi.

1998

PTA manufacturing facility commissioned.

2000

The business was de-merged to form Pakistan PTA Limited, which was at the time a subsidiary of ICI Plc

UK.

2007

We completed 50 years of continuous listing on the Karachi Stock Exchange.

2008


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We formally became part of the AkzoNobel Group, bringing us under the banner of one of the largest

coatings and chemicals companies in the world.

Our values

The beliefs that underpin our businessOur values define what we are and what we aim to be. They reflect the way we should operate

both internally and externally. And theyre summed up in the line Tomorrows Answers Today.

We believe in:

y Focusing on our customers future firsty Embracing entrepreneurial thinkingy Developing the talents of our peopley The courage and curiosity to questiony Integrity and responsibility in our actions

These values give us standards to measure ourselves by, particularly in our dealings with

customers, suppliers, our own people and the wider world. The values have real meaning for us

and the way we behave. Heres what each of them means in practice: Focusing on our

customers future first We can guarantee our future only by giving our customers products and

services that improve their future. So this value comes first. Its our priority and the reason why

we exist.Weve always met the needs of our customers thats why weve grown. But now we

make it very clear: its the basis of everything we do.

Embracing entrepreneurial thinking

New thinking and new ideas are everything if were to compete. So we need an environment

and a mindset that encourages new ideas from individuals and teams.

Yes, not Yes, but...

Why not? not Why?

We might fail occasionally, but well get great ideas to market more quickly as a result. And

well keep more people with truly original ideas within the company.

Developing the talents of our people

Our business will grow if our people grow too. So were committed to professional and personal

development. Well do all we can to develop existing talents, nurture new skills and progress

within AkzoNobel. Through this commitment, well attract and retain people of the highest

quality to develop the business.


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The courage and curiosity to question

AkzoNobel isnt one of those companies with a set way of doing things. We dislike rigid

hierarchies and we want our people to take a broad, interested view of the world. We like them to

ask questions. Is there a better way? There generally is a better way, if we challenge ourselves

and our customers to look at things differently. Its the way we improve.

Integrity and responsibility in our actions

Business needs to work within a framework. Our employees have to be aware of rules and

regulations that they must comply with, in whatever part of the world they work. But integrity

and responsibility go deeper than that. Theyre about doing things in the right way, as individuals

and as a company.

Ethical and responsible behavior matters to our business. If we do the right things, people will

know were a company that can be trusted. Theyll then be more likely to work with us and

invest in us which is good for our long-term growth.

This ambition defines us. This is the way we work. This is why we come to work. This is

AkzoNobel.

Tomorrow's Answers Today

At AkzoNobel, we believe the future belongs to those smart enough to challenge it. We believe

that real progress belongs to those who not only think with courage, but also have the courage to

deliver on the thought. Tomorrows answers, delivered today.

Often people achieve only incremental progress, because their view of tomorrow is determined

by what they see today

This benefits our customers because we sustain their future competitiveness and meet the

consumers unspoken needs.

Identity

Our brand shows the way forward

Slogan


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AKZONOBEL

TOMORROWS ANSWERS TODAY

All the evidence shows that consumers and business customers are more likely to deal with

companies with strong brands. Our brand also gives our customers an assurance of quality and

purpose. It contains a promise Tomorrows answers today that motivates us to deliver, think

ahead, increase customer satisfaction and drive future business.

Mission Statement

Enriching peoples lives by bringing visual delight and lasting care to their surroundings

Objectives

y Market driven-innovation in products and servicesy Winning in quality growth market worldwidey Inspiration and reward of talented peopley Exemplary performance in safety and healthy Responsible care for the environmenty Relentless pursuit of operational excellencey To be No.1 in all its 6 Pakistani businessesy To achieve turnover of 20% in 2002 from over all business portfolio.y To reduce its industrial wastes by 50% till 2004.y To contribute at least 25% in overall ICI Pakistan profits.

Five Years Goal for ICI Paints

y Target 10:20:30y 10% return on sales (ROS)y 20% growth in sales in 5 years (3.7% CAGR in organic like for like business)y 30% Return on Net Assets (RONA)


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This is the formula from which ICI Paints sets and achieves its targets i.e. 10% return on sales,

20% growth in sales in five years and in the last 30% Return on Net Assets.

y Total adherence to HER.y Dedicated involvement of every employee at all levels of the organization to the totalquality management concepts.y A complete focus or prevention of non conformance through cohesive team work.y Constant emphasis on doing it right the first time and every timey Improving the quality of everything we do, to the complete satisfaction of internal and

customers.

ICI Paints Business Lahore

y In 1965, ICI UK acquired a 50% interest in the paints company named as Fullers PaintsPakistan Ltd situated at Ferozepur Road, Lahore. Its name was changed to Paintex

limited and it was converted into a public limited company in 1973. The capacity of the

plant was upgraded and enhanced in 1981 and since then the business has proceeded

progressively to consolidate the market share in the major segments of decorative paints,

Industrial and automotive paints market. ICI paints business Pakistan has become an

undisputed leader in the decorative motor and refinish segments of Pakistans paint

market.

y With production of 14milion litres, ICI Pakistan touches the lives of painters, architects,paints retailers and home owners with color throughout the country. ICIs Dulux,Glidden, Maxilite and paintex brands have become as much a part of painters vocabulary

as color choice, quality; variety and durability are the criteria for the selection of the

paints by the end-users.

y ICI has consistently developed new and innovative areas of businesses, since itsformation in December 1926, by the merger of four of the largest chemical companies in

the UK. ICI today is a collection of world class businesses, many of them leaders in their

sectors. They are strongly led, technologically sophisticated with healthy and sustainable

long-term growth-prospects .y ICIs paints brands are some of the most successful in the world. Its starches and

adhesives find their way into everything from foods to building materials, and from

sports shoes to medical electronics. Its lubricants make vehicle transmission and fridges

run smoothly, and the vital ingredients in many personal and household care products

come from ICI. .


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established products are tested in both laboratory and fully practical conditions, using the

widest possible range of application methods and equipment.

y Their products are based on continuous research and product development carried out bytheir parent company ICI Paint Division UK. The information derived and results

obtained by ICI Development Laboratory are readily available to them here. ICI is

employing and putting into use best available technology in the world for their users.

y Some Facts and Figuresy 50 million households, all over the world, use ICI paints every year.y Each year ICI Paints produces enough paint to decorate every house in all of Los

Angeles, London and Beijing.

y ICI Paints makes enough paint to completely cover 2.8 million football pitches.y ICI Paints produces 1.1 billion liter of paint which if in 1 liter cans placed on top of on

another, would be 13,000 times the height of Mount Everest.

y ICI Paints sells to over 100 countries throughout the world.y Over a third (35%) of ICI Paints business is represented by new products introduced in

the last five years.

y ICI Paints are used in countries which represent over 95% of the worlds population.y ICI Paints prides itself on being at the forefront of innovation: we employ 680 people

worldwide in Research and Development.

y ICI Paints spends over 30 million per year on Research and Development worldwide.

PORTERSS FIVE FORCES MODEL OF COMPETITION

The threat of substitute products

y Although products such as distemper (choona), wallpaper, tiles etc are available but customersare not likely to substitute them for paints as it would compromise on quality and at the same time

would not server the purpose.

y The growing share of companies in the unorganized sector provides a low price substitute.The threat of the entry of new competitors

y With regard to the paint industry in Pakistan, there is a high threat of new entrants. The mainreason for this being low entry barriers, as there is no requirement of high capital investment to

enter the paint business.

y Also, there are no proprietary product difference and low switching costs which puts the phrasebrand loyalty into jeopardy.


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y What make the paint industry attractive for newcomers is also the ease of acquiring skilledpeople, material and supplies. Moreover, lack of long term contracts also contributes towards the

attractiveness of the industry for the newcomers.

y However, there are established brand identities as well as consolidated distribution channels to beaccessed which would result in strong retaliation to be faced by the newcomers.

y Such is an example of Nippon who set up its business in Pakistan recently.The Bargaining power of customers

y Bargaining power of the intermediaries is high because the industry is divided into the structuredand unstructured market and does not act as a unified whole to leverage the bargaining power in

its favor.

y Therefore the more the channel sells each product, the higher the margin they keep for thecompany.

y The bargaining power of end users however, is low because there a large number of buyers, eachwith relatively small purchases.

y In addition to this, the organized paint sector has also accepted branding which creates loyaltyand decreases the price sensitivity, resulting in low bargaining power of buyers.

The Bargaining power of suppliers

y Bargaining power of suppliers is low in the decorative segment as inputs required arecommodities and there a number of suppliers available who are fighting for a small market.

y However, since big companies fight on the quality dimension and cannot switch their suppliersare in a position to negotiate their terms upon providing the desired raw material which makes the

overall bargaining power of suppliers moderate.

The Intensity of competitive rivalry

y The paint industry can be characterized as a fragmented industry divided into the organized andunorganized sector.

y The unorganized structure is the biggest threat for established brands.PAINT PRODUCT:-

level of the product

Core benefitsThe core benefit what a consumer is looking for? In paint products the core benefit is

protecting the walls. The safety need is high concerned with the core benefit.

Basic Product:

ICI basic offering is a paint which gives protection and excellent glass retention on metal

and wood services. It is also in form of liquid


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Expected Product:

The customer expects the product to be protected and have excellent retention on surface.

They also except that it should spread smoothly and easily while it should give reliability.

Augmented product:

ICI highest quality premium interior/exterior hundred percent acrylic glasses finishes isspecially formulated to provide exceptional toughness and durability, easy application

and quick curing resulting in a long lasting uniform finish. Dulux glass also providesexcellent adhesion moisture resistance coverage and application resistance, courage and

application properties when applied by brush, ruler and spray. It is ideal for use onproperly prepared interior and exterior substrate such as wood siding trim and sash,

shingles, weather aluminum, metal, dry wall and sound painted surfaces.

Potential Product:

The potential product encompasses all the possible argumentations and transformationthe product or offering might undergo in future, the potential product fragrance base

paint. The will be give fragrance of different flowers and roses. The next augmentationcan be launch product in plastic jar. Those will easy to use and less harm to the hands,

while environment protection can be increased by the product, because customer may usethe plastic jar after using the product.

ICI Dulux is a brand of quality and its all products are quality products which are

manufactured to compete with international paint products. But the Paintex productsmanufactured in order to compete with local low quality and low price products

At this time ICI also working on the new products developments.

.,

Products paints

1. Dulux Super Gloss Enamel

2. Dulux Metallic Finish Enamel

3. Dulux Matt Finish Enamel

4. Dulux Synthetic Enamel Fan Finish White

5. Dulux Pentalite Special Plastic Emulsion (Acrylic Based)

6. Dulux Pentalite Natural White Special Plastic Emulsion with Added Fragrance (Acrylic

Based)7. Dulux Contractors Plastic Emulsion

8. Dulux Weather Shield (Acrylic Based)

9. Dulux Prime-on

10. Dulux Water Repellent

11. Dulux Synthetic Clear Varnish


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12. Paintex Plus Emulsion

13. Maxilite

14. Dulux Red Oxide Anti Corrosion Metal Primer

15. Dulux Aluminum Paint Dual Pack

Paints

ICI today is one of the worlds largest manufacturers of paints. With acquisitions in the Americas

and Europe it produces and sells over a billion litres of paint annually. In 1965, ICI UK acquired

a 50% interest in a paints company situated at Ferozepur Road, Lahore Pakistan and changed its

name to Paintex Limited. In 1973 the new Company was converted into a Public Limited

Company. The paints manufacturing capacity of the plant was upgraded and enhanced in 1981

and since then the Business has proceeded progressively to consolidate market share in the majorsegments of the decorative, automotive, industrial and refinish paints market. It has now become

the undisputed leader in all the three segments.

The Refinish and Industrial Businesses were recently divested by ICI Plc to PPG. However the

agreement excludes the sale from the portfolio in Pakistan. Hence these businesses will continue

to be retained by ICI Pakistan and will have the additional advantage by accessing support from

the new parent. PPG is today among the World market leaders in Refinish and OEM businesses.

Hence ICI Paints in Pakistan will enjoy the benefits of both the old ICI Autocolor umbrella and

the new innovative edge of PPG through a licensing agreement and be able to further consolidate

its position in both segments i.e Refinish and Industrial Paints.

With production of nearly thirteen million litres, ICI Pakistan touches the lives' of home owners,

architects, paints retailers and painters, with colour throughout the country. ICI's Dulux, Duco

and Paintex brands have become as much a part of the painter's vocabulary as colour choice.

Dulux is a premium quality brand which provides its users the key desired attributes of premium

paints - a beautiful, durable and smooth finish. Dulux has a robust range of quality products

which includes premium quality interior and exterior paint, enamel and primers.

ICI Pakistan Paints has once again taken the initiative of providing the very best to its consumers

by launching Master Palette, the most technically advanced tinting system that gives the

consumer a choice of 6,134 discernibly different colours. From the brightest ambers to the softest

pastels, from the coolest blues to the ripe reds, the Master Palette offers a plenitude of 6,134

colours to match every environment and mood.


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The Paints Business accounts for nearly 20% of ICI Pakistan's annual turnover and contributes

nearly 24% of the Company's profit. The impressive growth recorded by the Paints Business

through aggressive marketing and refined brand management is a success story where the vital

ingredient has been consistently superior quality and focus on customer satisfaction. By offering

technical and free colour advisory service, ICI has set a high value on being able to advise and

assist the customer about his needs for specialised applications, and resolving problems of

technical specifications for the use of paints under varying conditions. Access to research and

technical capability of ICI in the United Kingdom and worldwide, and Japanese collaboration

and technology, often enables ICI Pakistan to serve the special needs of customers in Pakistan.

The factory produces pre-treatment chemicals, conventional paints, chlorinated rubber paints,

epoxy paints, heat resistant paints, automotive refinish paints, stoving paints and varnishes and

Nitrocellulose based finishes.

ICI Autocolor Business, a part of ICI Pakistan Paints, is a market leader in the manufacture of

paints for cars and vehicles for their repair and refurbishment.

Recently, the Company established a state-of-the-art Technical Training Centre for refinishes

training, the first of its kind from a commercial enterprise in Pakistan.

The Business has a comprehensive safety, health and environment programme that receives the

highest priority to ensure that the Company complies with all regulations and meets ICI

international standards, both internally and externally. The recent launch of the Product

Stewardship Programme is a clear indicator that ICI Pakistan is committed to pioneering SHE

initiatives in the paint industry in Pakistan.

In 1998 the Paints business was awarded MRP (Manufacturing Resource Planning) II Class A

for excellence in overall business operations. ICI Paints is the first company in Pakistan and 23rd

in the world to be awarded MRP II Class A. ICI Paints is also the first paint company in Pakistan

to receive ISO 9001 certification in all it's disciplines and it became the 3rd company in all ofPakistan to achieve the ISO 14001 certification for environmental management system. The

achievement of MRP II Class A accreditation and ISO certifications is not only a reflection of

commitment to excellence in service standards, customer satisfaction, safety, health and the

environment but also in the pursuit of being among the world's best.


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Decorative Paint

y Handy Tips for Color Scheming from Duluxy Choosing the right color is not always as straightforward as you might think.y When decorating is there any rules about choosing a color scheme?y How does light affect the way we view color?y Are there any simple tips for trying out the color without painting the walls?

Dulux Super Gloss Enamel

Dulux Super Gloss Enamel is a high quality solvent-based super gloss finish, suitable for use on

all types of interior and exterior wood and metal surfaces. Dulux Super Gloss Enamel gives a

smooth mirror like finish and has excellent durability. Generally resistant to heat up to 90 C, but

some discoloration of light colors may occur at temperatures above 80 C.

Resistant to the levels of atmospheric humidity present in normal interior and exterior

environments and will withstand repeated washing. Not suitable for use on immersed surfaces. It

can be applied through Brush, Roller or Conventional Spray and it is highly flammable.

DuluxMetallic Finish Enamel

Dulux Metallic Finish is a high quality solvent based super gloss finish, suitable for use on all

types of interior and exterior wood and metal surfaces. Dulux metallic Finish gives a smooth

finish and excellent durability. Generally resistant to heat up to 90 C, but some discoloration of

light colors may occur at temperatures above 80 C.


environments and will withstand repeated washing. Not suitable for use on immersed surfaces.

Spray is the only way to apply and it is highly flammable.

DuluxMattFinish Enamel

Dulux Matt Finish Enamel is a high quality solvent-based matt finish, suitable for use on all

types of interior wood, metal and masonry surfaces. Dulux Matt Finish Enamel has excellent

resistance to steam and moisture, which makes it ideal for use in Kitchens and Bathrooms.

Generally resistant to heat up to 90 C, but some discoloration of light colors may occur at

temperatures above 80 C.


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environments and will withstand repeated washing. Not suitable for use on immersed surfaces. It

can be applied through Brush, Roller or Conventional Spray and it is highly flammable.

Dulux Synthetic Enamel Fan Finish White

Dulux Synthetic Enamel Fan Finish White is a high quality, high gloss solvent based finish,

suitable for use on all types of fans. It has good adhesion and resistance to mechanical damage.

Generally resistant to heat up to 90 C, but some discoloration of light colors may occur at

temperatures above 80 C. Spray is the only way to apply and it is highly flammable.

Dulux Pentalite Special Plastic Emulsion (Acrylic Based)

Dulux Pentalite Special Plastic Emulsion (Acrylic Based) is a high premium quality emulsion

with a smooth matt finish. It is suitable for all normal interior masonry surfaces including

brickwork, plastic, cement and wallboards.

Will tolerate the levels of atmospheric humidity present in normal interior and exterior

environments. It can be applied through Brush, Roller or Conventional Spray, which is

convenient to you.

Dulux Pentalite Natural White Special Plastic Emulsion with Added Fragrance

(Acrylic Based)

Dulux Pentalite Natural White Special Plastic Emulsion with Added Fragrance (Acrylic Based)

is a premium quality emulsion with a smooth matt finish, which contains fragrance. It is suitable

for all interior masonry surfaces including brickwork, plastic, cement and wallboards.



convenient to you.

Dulux Contractors Plastic Emulsion

Dulux Contractors Plastic Emulsion is a premium quality emulsion with a smooth matt finish,

which contains fragrance. It is suitable for all interior masonry surfaces including brickwork,

plastic, cement and wallboards.


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convenient to you.

DuluxWeather Shield (Acrylic Based)

Dulux Weather Shield (Acrylic Based) is a high quality, 100% acrylic based emulsion for new or

previously painted exterior masonry surfaces such as brickwork, plastic and cement fastness.

Resistance to the levels of atmospheric humidity normally experienced in exterior environments.

It can be applied through Brush, Roller or Conventional Spray, which is convenient to you.

Dulux Prime-on

Dulux Prime-on is a solvent based sealer for interior and exterior masonry surface both new and

previously decorated such as brickwork, plaster and cement. It reduces damage form alkali and

salts and seals powder, porous surfaces.

Not suitable where the surface is saturated. It can be applied through Brush, Roller or

Conventional Spray, which is convenient to you.

DuluxWater Repellent

Dulux Water Repellent is an excellent protective barrier against moisture for unpainted surfaces.

It penetrates the surface and acts as an effective guard against water. It is suitable for brickwork,

concrete, plastered surfaces, unglazed tiles and sand-cast surfaces. Dulux water Repellent is not

recommended for surfaces in constant with water, like tanks to masonry surfaces below ground

level like basement etc.

It can be applied through Brush or Conventional Spray, which is convenient to you and it is

highly flammable.

Dulux Synthetic Clear Varnish

Dulux Synthetic Clear Varnish from Dulux is a solvent-based varnish suitable for use on alltypes of new or previously treated wood and metal. Typically uses include paneling, cane or

wood furniture, windows doors and partitions.


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Dulux Synthetic Clear Varnish has a high gloss finish and has excellent abrasion resistance and

is fast drying. It can be applied through Brush, Roller or Conventional Spray, which is

convenient to you and it is highly flammable.

Paintex plus EmulsionPaintex Plus is an economical emulsion with a smooth matt finish. It is suitable for all normal

interior masonry surfaces including brickwork, plaster, cement and wallboards. Will tolerate the

levels of atmospheric humidity present in normal interior and exterior environments.


Maxilite Economic Wall Paint:

Maxilite Economic Wall Paint is an economic water based paint that has excellent coverage and

provides a smooth matt finish. It is suitable for all normal interior masonry surfaces including

brickwork, plaster, cement, asbestos and wallboards etc. Will tolerate the levels of atmospheric

humidity present in normal interior and exterior environments.


Dulux Red Oxide Anti Corrosion Metal Primer

Dulux Red Oxide Anti Corrosion Metal Primer is a solvent-based sealer, anti-corrosive

protective primer for interior and exterior ferrous and non-ferrous metalwork including

steelwork, new weathered and pre-treated aluminum. Can be used on heated surfaces up to 90C.


Dulux Aluminum Paint Dual Pack

Dulux Aluminum Paint Dual Pack is a silver paint with high metallic luster, which protects the

surface from corrosion, discoloration and the effects of heat. Typical uses include chimneys,

pipelines, storage vessels, steam pipes, machinery surfaces, oven doors and heat exchangers. It

can be applied through Brush, Roller or Conventional Spray, which is convenient to you and

highly flammable in nature.

ICI POLYESTER

ICI Pakistan was a pioneer in the PSF industry, which it entered into in 1982, with the

commissioning of a 12, 000 tpa plant at Sheikhupura, at a cost of Rs 630 million. Successive

expansions thereafter have brought polymerization capacity to 91,000 tpa (1997), which includes


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60,000 tpa PSF capacity. The most recent expansion was at an estimated cost of Rs 3.2 billion,

using DuPont technology.

PSF is blended with cotton and other manmade fibres such as viscose and acrylic to produce

blended yarn. The future outlook for PSF demand is optimistic, based on factors including:

A growing local population; Limited cotton acreage; One of the lowest PSF per capita consumption rates compared to the South East

Asian region as well as the world;

Expanding export demand for higher value added textiles; A large spinning industry; Government incentives for blended textiles.

Subsequent to the second capacity expansion, ICI Pakistan set up a wholly owned subsidiary, ICI

Pakistan PowerGen Limited in 1993, a 14 MW power generation plant, in order to ensure an

uninterrupted power supply for smooth plant operations and meet its increasing demand for

power. ICI PowerGen, in addition to meeting the power requirements of the Polyester Plant, also

provides power to other industrial customers in the vicinity.

The Polyester Plant produces premium grade polyester staple fibre, with the brand name,

Terylene, which has a national image of consistency and quality. Further commitment to

international standards was proven by the Business ISO

9002 certification in 1999. ICI Polyester takes pride in its professional relationship with

customers and has proven time and again to be a responsible supplier, adhering to business

principles and code of ethics.

ICI Polyester is conscious of its social responsibility, and participates in community welfareprojects in areas surrounding its plant. The Polyester plant at Sheikhupura was also recognized

for its environmental consciousness when the WWF survey confirmed existence of a number of

rare species of plant and animal life on the plant site.


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ICI Polyester remains committed to the Textile Industry of Pakistan and believes in continuous

improvement in all aspects of the Business to benefit its customers.

The ICI Pakistan Polyester Fibres business is a customer-driven business, providing a

consistently high quality of product and after-sales service. In view to the growing demands for

value-added/specialist products, ICIs Polyester Fibres business has expanded its product

portfolio providing their customers with a distinct edge over their competition. These products

include

Standard 1.2 Denier Semi-Dull PSF

catering to all sectors of all the domestic PSF market. This product is specially known for its

strength, consistency and superior dye uptake.

SCD Single Component Dyeing

Caters to PC hosiery yarn export market; eliminates white polyester spots when only cotton

portion is dyed.

SDOB Semi Dull Optical Bright

Fabric produce from this product gives an outcome that is distinctly bright/white in appearance

catering mainly to the North American Market. The product can be woven and knitted and is also

used in dyed and printed form in the Home Textile segment

EHT Extra High TenacityCaters to the requirement of the sewing thread industry and with a tenacity of 7.5 gpd +

Super Bright

Product with Super Brightness to cater for broad-spectrum usage.

Low Pill

Minimizing pilling when fabrics are subjeced to heavy industrial wshing.

Denier Microfibre

Fine Denier product to improve both yarn strength, output and quality.


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Soda Ash

The Soda Ash Plant is located in the northern part of Punjab at Khewra, District Jhelum. The

initial work of setting up a soda ash plant at Khewra site dates back to 1929, however,

commercial production began in 1944. The original capacity of the plant was 18,000 tonnes per

annum that has increased to 200,000 tonnes per annum through a number of expansion projects.

The plant is currently meeting about 80% of the Country's requirement for Soda Ash, and by

using locally made equipment and raw materials, provides savings to the Nation's foreign

exchange reserves.

Soda Ash is an essential raw material used in the manufacturing of Glass, Detergents, Caustic

Soda, Soap, Paper, Textile, Water Softener, Petroleum, Washing and Laundry Soaps.

The major raw materials used in the manufacturing of Soda Ash are Salt, Limestone and Coke.

Salt and Limestone are locally available at Khewra, in abundance, whereas Coke is procured

from the Pakistan Steel Mills, Karachi. Other essential requirements are Natural Gas, Furnace

Oil, Ammonia and Water.

The product range was diversified in 1995 with the commissioning of a 10,000 MT Refined

Sodium Bicarbonate Plant.

The basic raw materials for its manufacture are soda ash and carbon dioxide, both of which are

available at the Khewra Works. The Soda Ash Business strives for continuous improvement of

its already excellent SHE record. This commitment is demonstrated by the prime position given

to SHE in all aspects of Business operations, and the programmes in place. In 1998, ICI Pakistan

was the joint winner of the Chief Executive's Safety Award through the Soda Ash submission of

SITARA', safety through teamwork.

The quality initiative was first introduced at the Soda Ash Business in 1985 with a fundamental

part of Total Quality' being the implementation of management systems based on the principle

of prevention. Subsequently, the process of Quality Improvement Teams was introduced, which

improved the quality of the products and operating efficiencies. Currently, the Business is

working to implement International Quality Standards (ISO-9002) in all areas of its activities.


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The Soda Ash Business employs 550 permanent Staff and has 2500 people who work as

Contractors and Suppliers. Most of the permanent employees are provided housing facilities on

the Company's well developed residential estates. Other facilities like the Winnington School,

Alkali Sports Club, Winnington Club,

hockey & football grounds, squash courts, 20 bed Winnington Hospital, with a full time Medical

Superintendent and a Lady Medical Officer supported by visiting specialists and a well trained

paramedical staff, are also availed by the employees. As part of its community development

initiatives, the Business routinely extends support to local schools, colleges, parks and other

institutions in the area.

Chemicals

The ICI Pakistan Chemicals Business comprises of a unique and diversified portfolio

encompassing Uniqema, Polyurethanes, and a Trading concern that includes representation of

ICI Businesses, such as National Strach and Chemical, Chlor Chemicals, Synetix, Crosfield and

as well as former ICI Businesses such as Tioxide, supplemented by imports of complementary

product lines from non-ICI companies in the USA, Europe and Far East. The Business markets a

diversified product range used for various applications by nearly every industry in Pakistan,

prominent amongst which are textiles, paints, pharmaceuticals, personal care, food & beverage,

detergents, footwear and household appliances.

In June 1999, ICI plc completed the sale of its Polyurethanes and titanium dioxide (Tioxide)

business to Huntsman Corporation, USA. ICI will, however, retain a 30 percent stake in the

above businesses, for a minimum of three years, through a new company Huntsman ICI

Holdings, which will be 60 percent owned by the US company and remaining 10 percent by

financial institutions.

This divestment excludes ICI's interest in Polyurethane and Tioxide in Pakistan and as such ICI

Pakistan retains these businesses within its portfolio and will continue with them with full

support from Huntsman. As Polyurethanes will be a core business for Huntsman, ICI Pakistan

expects to have more focused resources available for business development.


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Uniqema

The Uniqema Business at ICI Pakistan includes the manufacture and marketing of textile

auxiliaries, adhesives and paint lattices, and the trading of personal care products to a wide range

of industries. The Uniqema plant at Karachi was primarily designed to manufacture a range of

textile auxiliaries. Today, with a capacity of 4,000 tonnes it manufactures and formulates a range

of over 60 products used in industrial processing that call for Specialty Chemical applications.

The products manufactured include textile auxiliaries for applications in preparation, dyeing and

finishing of fabrics, PVA based lattices for paints, PVA based adhesives for the woodwork and

packaging industries, and products for supply to end users in the jute, leather and paper industry.

Polyurethanes

For Polyurethanes, ICI Pakistan has its own blending unit with an installed capacity of over

2,000 MT/ annum with three shifts operation. It produces rigid Polyol, which is one of the two

components used in thermal insulation of appliances and panels for cold storages. The various

industries that the

Polyurethanes Business caters to are appliances, construction, footwear, transport and furniture.

PU chemicals are also used in chemical plants and animal houses such as poultry sheds, etc.

Apart from local blending, PU chemicals are also sold on direct indent and ex-stock basis for

different applications.

In PU, ICI Pakistan is the market leader, in all major SBU's, with an overall share of about 63%.

Polyurethanes will spearhead Huntsman/ICI's strategy to expand downstream into more

specialised markets by offering globalisation and diversity. Since PU is a core business for

Huntsman, more resources will be available for its development in Pakistan.

Trading

The Business handles a diversified product range from specialised chemicals used for watertreatment to basic commodity chemicals used in a variety of industries including fertilizer,

cement, polyester, oil and gas, plastics and paints. These products originate from ICI companies

worldwide and from non ICI companies globally for whom the Business acts as agent.

The products are sold both on ex stock and indent basis directly to the customers or through

commercial importers/distributors to achieve a wider market coverage.


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The products offered by this SBU of the ICI are as follows:

FUEL OIL, PETROCHEMICALS, Toluene, Xylene, Methyle Ethyle Keytone (MEK),

Vinyl Acetic Monomer (VAM), Hexane , MOTOR OIL ADDITIVES, PAINT ADDITIVES,

WATER TREATMENT ADDITIVES, ADHESIVES, CHLORINATED SOLIDS, CERAMIC

ADDITIVE, ACRYLIC PLASTICS, HYDROGENATION ADDITIVES, EXPLOSIVES,

PVC STABILIZERS, IRON COATINGS, FILTERATION AIDS, TEXTILE AUXILIARIES,

HEAT TREATMENT SALTS, COLOR ADDITIVES, PVC FOAMING AGENTS

ICI PHARMACEUTICALS

ICI Pakistan's Pharmaceuticals Business markets prescription drugs with a strong portfolio of

innovative medical products from Astra Zeneca Pharmaceuticals UK. A focused portfolio of

products is at present maintained, with strong representation in the cardiovascular, oncology and

anaesthetic segments. The product range consists of Tenormin, Inderal, Zestril and Etizem

(cardiovascular); Nolvadex and Zoladex (oncology); Diprivan (anaesthesia); Proxen and Synflex

(NSAIDs) and Meronem (antibiotic).

ICI Pharmaceuticals' strength is in cardiovascular drugs with Tenormin, a product used for

controlling hypertension and the market leader in its therapeutic segment. In addition, Inderal,

Zestril and Etizem complete a comprehensive

portfolio of cardiovascular drugs, meeting the needs of treatment required to be given to patients.

ICI Pharmaceuticals also specialises in drugs for the treatment of cancer. Presently, the product

portfolio consists of Nolvadex, used for the treatment of breast cancer, and Zoladex, an advanced

technology drug used in the treatment of prostrate cancer. Future expansion of this range will

result in new therapies being introduced to further broaden the availability of cancer treatments

in Pakistan.

ICI Pakistan Pharmaceuticals imports finished products and also uses toll manufacturing facility

for local manufacturing from imported raw materials. At present the Business, including its

Animal Health division, has a staff strength of over 120 personnel, located across Pakistan.


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The products being offered by the Pharmaceuticals division are:

CARDIOVASCULAR, Tenormin Tenoret 50, Zestril, Zestoretic, Inderal, Etizem, ONCOLOGY,

Nolvadex Zoladex, Arimidex, Casodex, NSAIDS, Proxen Synflex, ANAESTHETIC, Diprivan

(EDTA), ANTIBIOTIC, Meronem, CNS, Zomig Seroquel, ANTHELMINTIC, Ketress,

GASTRO-INTESTINAL, Etipro, RESPIRATORY, Accolate,

ANIMALHEALTH

The Animal Health Business of ICI Pakistan is involved in the marketing of veterinary medicine

for use on livestock. The portfolio consists of animal health products from Schering-Plough

Animal Health Corporation. Products in the locally formulated category are liquid formulations

of Nilzan, Nilverm, Zanil and Systamex, and the Business imports specialised products for direct

sale in the market.

ICI Animal Health has the largest market share of the livestock market segment in Pakistan, and

its products are respected in the industry as market leaders. The Business acts principally as a

selling unit employing 27 staff stationed in key regions of Pakistan, to allow focused selling to

farmers and government institutions.

The products offered in Animal Health division are:

NTHELMINTICS, Nilverm Nilzan Nilzan Bolushttp Zanil Systamex Oxfenda SC Endectin,

INTRAMAMMARY, Spectrazol, ANTIPROTOZOALS Butalex, Imizol, ANTIBIOTIC,

Amoxivet, VACCINE, Decivac FMD, INJECTABLE, Somatic, PURE TEREPHTHALIC

ACID,

ICI PAINTS

PRICING OF ICI PAINTS


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PRICING OBJECTIVES

The obvious pricing objectives of ICI Dulux are

1 Maximization of Profits

2 To achieve the target return and targeted sales

3 Maintain the Market share.

As far as the pricing is concerned it is the most difficult decision because keeping all the things

on one side price matters. ICI Paints is promoting different brands on different prices according

to the market segmentation. Dulux is the most expensive brand in the market. The reason is that

the best raw material and components are used in the manufacturing of the Dulux. Second reason

is that Dulux target market is upper tier. And to some extend upper tier of middle tier. But paying

more for Dulux, customer feels value.

PRICING METHOD

The pricing method adopted is profit based. A target about the profit percentage is decided, after

assessing the net cost, profit is added to it to determine the price.

Since ICI Dulux is the Market Leaders they can easily manipulate prices. The changes in the

prices are decided in the Head quarters and the dealers are informed 15-20 days before the price

are actually increased. This strategy has a dual effect, on one hand the price is increased and on

the other it helps in blooming sales. It acts as a promotional tool because dealers pick up their

stock with no delay and they purchase more than the usual bulk. It is also beneficial for dealers

because then they sell their old as well as the new stock on the latest high prices and hence

receive a greater profit.

If we compare the price of Dulux with other local brands, its the fact that price difference is not

more than 20-100 rupees. As far as quality is concerned, by paying more customers is not

worried about the quality.

For the market which is middle tier, ICIs brands Paintex Emulsion and Glidden are the brands

with low price and optimum quality within the tier. If we go into the comparison of Paintex and

Glidden their price is lower than the other paint brands selling in the market. Glidden is purely

priced to cover the buying power of middle tier.


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dealer/retailers counter. The delivery is made through 2 modes

Distribution Vehicles

Freight On Road ( goods transportation service)

By these 2 means ICI manage the distribution and placement of their products to be

available for Their customers and consumers

DEALERS

ICI Dulux has certain requirements after these requirements are fulfilled a dealer is registered

and is legally allowed to start the distribution.

1 Special accounts with Dealers Code (DC) are opened in the computer;

2 A promissory Note is signed;3 Dealers have to sign a blank cheque for security;

4 Dealers have to submit a copy of their Identity Card (ID card) and a few more documents;

5 After this they are registered as ICI Dealers.

Most of the distribution and trade is done on cash. Lahore and Karachi are advance payment

markets where as Multan and a few other small cities have a credit market.

Transportation from Lahore i.e. the production site is done through trucks and railway.

Transportation within the city is done by trucks in large cities and by donkey carts in smaller

cities. Even in Multan most of the transportation is carried on the donkey carts.

Channel Distribution:

Intensive distribution stratgy is used by ICI paints,where the majority of resellers stock the

'product' with convenience products, for example, and particularly the brand leaders in

consumer goods . A distribution channel is the method a company uses to get its products into

the marketplace for consumer use. The traditional channel goes from supplier, manufacturer,

distributor, wholesaler and retailer. Two types of distribution channels exist: indirect anddirect.As ICI uses indirect distribution channel in order to provide product to the customer

Indirect Channel Methods

Distributors, wholesalers and retailers are the primary indirect channels a company may use

when selling its products in the marketplace. Companies choose the indirect channel best suited


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for their product to obtain the best market share; it also allows them to focus on producing their

goods

Promotion of ICI Paints

ICI Paints is using following promotional tools:

Customer satisfaction is itself a promotion tool for ICI Paints and it help to develop C2C

relationship. ICI Paints arranges painter parties at different places and at this event gift are given

to those painters which have used a reasonable quantity of ICI paint for the period. ICI Paints has

given a target to every dealer according to its capacity and market analysis. If that dealer meetsthat target, ICI Paint will take that dealer to some other country for recreational purpose e.g. last

time ICI Paints chartered special plane for its dealers and took them Dubai. For present year ICI

Paints has promised to take its dealers to Malaysia. Just like other paints ICI has offered a token

in every Bucket or Gallon of Maxilite and Paintex which are worth Rs. 220 per Bucket and Rs.

60 per Gallon. The company is promoting its product through the following modes

Advertisement

Public Relations

Sales Promotion External Communication

Events And Exhibitions

T.V Advertisement on different channels

Radio Advertisement , F.M 100

Bill boards almost in every big city

Posters / Banners

Small gifts for dealers/distributors to push new product sale

Small gifts for painters / contractors who are labor force who apply paint

Painters party to introduce them new product

T Shirts printed with product logo on them

Caps

Key chains


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The company many warehouses in different places like

LAHORE

ISLAMABAD

KARACHI

QUETTA.

PROMOTION

As ICI Dulux has a diversified market it has to use a number of promotional Tools.

ADVERTISEMENT

Television Advertisement

It is a very expensive tool of promotion but it is worth it. ICI Dulux though still advertises

through Television commercials but it has reduced its intensity. They just use it to create

awareness among their target market about a certain product and try to highlight its main selling

features.

Now a day the Television commercial of the ICI Dulux plastic emulsion can be watched which

emphasizes the 6134 shades it has.

Radio AdvertisementIt is a relatively cheaper source of advertisement and due to various FM channels; the number of

listeners has increased. Therefore Dulux finds it effective to communicate with its customers

through radio.

But these FM channels advertisements can only be found in Karachi and Lahore. Recently ICI

has renewed its advertisement contract with FM-100 Lahore.

Print Advertisement

A substantial part of Duluxs total promotional expenditure goes under this head. Approximately

all the good and standard magazines carry the advertisement of ICI Dulux.

PointOf Purchase Advertisement

Many colour cards, brochures and other informative material is available at dealers shop along

with the product itself in attractive cans. The dealers display contest is another kind of

advertisement.New dealers are registered where intensive contraction is being done.


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Out Door Advertisement

In out door advertisement Dulux mostly uses sign boards and they are placed at busy areas where

maximum people can see it.

PERSONAL SELLING

Free Dulux Colour Advisory Service They say for our valued customers, expert help is

available through a creative color consultancy service provided free of charge. Our color

Advisors would be available to develop innovative color schemes to bring out the best in your

home.

This is the most important promotional tool and helps to generate maximum demand. TTF

(Trained task force) is a trained mobile team which reaches at the place where construction or

revocation is being done, just on a single phone call. They sometimes reach at the point of

construction or renovation with our being called and give the customers free advice. Another

mobile service available is the LCA (Lady color Advisory Service) where innovative and

creative ladies give advice about the color scheme of the house.

If the customers have any kind of problem or complaint the mobile teams are always there to

help them.

SALES PROMOTION

Sales promotion is also a very important promotional tool used by Dulux in which different short

term and long term incentive schemes are offered to the dealers.

Sometimes the company provides the dealers with extra discount if they sell up to or more than atarget amount preciously decided.

Dealers are sometimes also given small incentives like T-shirt, wall clocks, folders, brochures,

pen holders etc in return of the sales promotion.

Promotional strategy:

ICI has taken many steps to promote its paint products. ICI uses multiple techniquesunder the promotional strategy.

y Word of mouth through its sales representativey Publicity e.g. recent float truck activity is the part of publicityy ICI gives free samples to its different customers. Recently ICI give free sample to many

hotels for the purpose of the promotion.

y ICI offers discount to increase the no of dealers.y ICI offers a token system in the Paintex paint box in order to attract more and more

painters.

y ICI gives the prizes to the painters to increase it sales.


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y ICI gives the SINGAPUR return ticket to the most leading dealers for the purpose ofencouragement of more sales.

Ici Pakistan brand element:-

Brand names ICI Pakistan

URLs akzonoble.com.pk

Logos and symbols

Slogans TOMORROWS ANSWERS TODAY

POD | Points of Differentiation:

History

Variety

Innovation in product offering

Distribution and inventory management

Committed Sales force

POP | Points of Parity:

One of the early entrants in the world

Durable and quality product


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vast product field

BRANDMANTRA

CBBEMODEL


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Salience: Quality, Range, environment friendly

Performance: Variety of products as per specific customer need

Judgement: Quality at a price

Reputation: New Entrant

Feeling: high rate of customer Satisfaction

Resonance: Market expansion and loyalty factor

COMPETITORS OF ICI PAINTS

ICI paint is the largest paint industry in Pakistan. The company is holding a position of market

leader in the market. The company has highest share in oil and paint market in Pakistan. ICIpaints have got the latest technology with them as compared to their competitors. Theirproduction process is highly automated. They can offer any color as demanded by the customer.

Customers can ask for any of 6134 colors. For every shade of color there is a specific formulathat states about composition of constituents and their proposition. High level of automation is

one of the critical success factors of ICI that differentiates then from their competitors and servesas a source of competitive advantage.


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Competitor analysis

ICI is the largest paint manufacturing company in Pakistan. The company has hundreds of

competitors in open market, but they have little share in total market. Mainly there are two maincompetitors of ICI paints i.e. Burger paints and Master Paints. Other competitors include the

following:

13Nippon paintsDiamond paintsSilky paints

Bright paints

COMPANYMARKET SHARE

ICI PAINTS 25%BERGERS PAINTS 12%

MASTER PAINTS 3%

SILKY PAINTS 1%

All other companies have fewer shares as compared to the main competitors.

Marketing and Business Strategies

MARKET POSITIONING stragety:

In order to better understand how to increase the market share of ICI paints, we have to positionthe brand with its direct competitors. That is best demonstrated with the help of the BCG matrix.

BCG Matrix

The BCG matrix categorizes brands according to two parameters, the rate of market growth and

the relative market share. There are four categories under which brands may fall:

y Star: High market growth & high relative market share.y Cash cow: Low market growth & high relative market share.y Question mark: High market growth & low relative market share.y Dog: Low market growth & low relative market share.

The market positioning of ICI paints and its direct competitors is shown in the diagram below.

As it can be seen ICI paints has high market share and high relative market share, therefore it is

categorized as Star.


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The purpose of the BCG matrix is to help devise a strategy in order to help resolve the problem

of increasing the market share from 60% to 70%.

Strategies under BCG matrix:

The various strategies available to improve the market position of a brand are as below:

y Differentiation Strategy:Differentiation strategy is that the company differentiates its products or services to those of

other companies.

y CostLeadershipStrategy:Under this strategy the product or service is provided at the lowest possible cost so that it

higher margins may be earned by the company.

y FocusStrategy:This strategy gives importance to focus on the customer/ target market; identifying and

serving them better.

STAR

ICI PAINTS

QUESTIONMARK

NIPPON PAINTS

M

A

R

K

E

T

G

R

O

W

T

H

HIGH

LOW

RELATIVE MARKETSHARE

HIGH LOW

CASH COW

BERGER AND MASTER

PAINTS

DOG

ROYAL PAINTS


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ICI paints is at present following the differentiation and focus strategies. Although controlling

costs is an important matter, ICI paints does not believe in comprising its quality. That would be

detrimental to its leadership position in the market. Also the number of household users is greater

than the number of corporations within the country and contractors always use the brand

demanded by their consumers. For this reason the brand employs differentiation and focus

strategies.

These strategies suit the present situation of ICI paints and therefore should be continued.

Push Strategy

PushStrategy is used by ICI in order to increaser their market share ad in order to create

percpetion in the mind of the customers .A strategy was developed to provide for customer pull

and merchant push through an integrated mix of front and back of house promotion. This route

was chosen to encourage staff recommendation and customer choice and this Push strategy

promote brand switching, creating trial and repeat purchase of productA back of house

promotion was created to challenge branches to compete on a regional and national level with

each other whilst a front of house promotion rewarded customers for purchasing across a range

of products above a certain value, offering them the chance to win a range of prizes instantly.

Persolized marketing:

ICI company no doubt are the gaint in the entire market but they have to build relationship with

the customer in rder to increase their share and equity in the market. ICI paints are more concern

about their interaction with the customers. Personalized marketing is an extreme form of product

differentiation. Whereas product differentiation tries to differentiate a product from competing

ones, personalization tries to make a unique product offering for each customer.As for creating

awareness in the cutomer about the product charactersitis, ICI also personaly contact their clients

and their customer for the innovation and additional feature in the product . They do proper

market survey and incur a major chunk of expenses for the prodcut promotion.

One-to-one marketing

refers to marketing strategies applied directly to a specific consumer. Having a knowledge of the

consumer's preferences enables suggesting specific products and promotions to each

consumer.As ICI is directly dealing with the customers and to their liking and disliking. Aas all

the production process is directly link with sale. If the brand equity is not present in the customer

so how a brand will be successful in the market. If ICI fails in the market no retailer and


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distributor are going to place their product on their shelf. One-to-one marketing is based in four

main steps in order to fulfil its goals: identify, differentiate, interact and customize.

Identify: In this stage the major concern is to get to know the customers of a ICI, to collect

reliable data about their preferences and how their needs can best be satisfied.

Differentiate: To get to distinguish the customers of ICI in terms of their lifetime value to the

company, to know them by their priorities in terms of their needs and segment them into more

restricted groups.

Interact: In this phase it is needed to know by which communication channel and by what means

contact with the client is best made. It is necessary to get the customer's attention by engaging

with him in ways that are known as being the ones that he enjoys the most.

Customize: It is needed to personalize the product or service to the customer individually. The

knowledge that a company has about a customer needs to be put into practice and the

information held has to be taken into account in order to be able to give the client exactly what

he want

Entering NewMarket Segments

As we have already discussed that ICI always believe in high quality premium products. But if

we carefully examine the market then we come to know that there is a very large segment

present in the market that are price conscious and therefore they are using the paints of some

Mushroom Companies.

In this situation management of ICI decided that they have to enter in this market also so they

introduced an economical paint for this segment as well with a little compromise on quality with

a slightly higher price than the mushroom companies.

Winning Competitors Customers

They are also trying to win the customers of their competitors through different techniques which

are discussed in detail under promotion heading.

Product Modification Strategy


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ICI has also applied this strategy by introducing new colors quite often. They are also having a

very colorful website on which you can choose the color of your choice and can get online

suggestions and advice as well.

PRODUCT LIFE CYCLE (PLC)

Most of the products are in maturity stage and just a few are in the growth stage e.g. Dulux Once.

INNOVATION

Dulux is renowned for its superior quality and in Pakistan too, its quality is the best. Continuous

product research and development, with input from vast international laboratory network, backed

by consumer research (finding out what customers need and want) keeps them above the

competition.

BRANDING

The companys trade name is combined with individual name of the products e.g.

1 Dulux Once

2 Dulux Synthetic Enamel

3 Dulux Pearl Glo

4 Dulux Primer On

Dulux Weather shield had become so popular that Weather shield has become a generic name

for weather protective paints. They also have their special color and brand codes.

PACKAGING

The paint is available in plastic containers (Dulux Pentalite Special Plastic Emulsion, Weather

shield) as well as Tin containers of different sizes. Almost all the packaging is done at its

production site in Lahore.

PRODUCT DESIGN

A change in the product design is the available of perfumed/ fragrance finishes of which has

attracted those customers who get irritated by the smell of the paints and solvents e.g. Dulux

Pentalite Natural Whites. But there are no continuous changes in the product design.


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COLOUR

ICI Dulux offers a wild range of colors as that is the soul of the paint. They have developed

beautiful shades and shade cards.

Dulux Master plate plastic Emulsion has 6134 shades and has huge beautiful shades card which

is it self very expensive.

QUALITY

ICI Dulux does not compromise on quality. About 99.5% of its raw material is imported and a

strict check on quality is maintained. It is because of its high quality and durability that people

buy it even at high prices and it has captured 70% of the market share in Pakistan.

MARKET SEGMENTATION

ICI provide their products only to the dealers (registered) which in turn serve to the various

market segments, which are as follows:

1 Painting Contractors

2 Architects

3 Construction companies

4 Consumers.

Segmentation

The Target Market of ICI Paints consists of two types of customers:

Quality Conscious (Upper Class or Elite Class)

Price Conscious (Upper Middle Class and Lower Middle Class)

And these students also want to get education, so the basic segmentation of ICI Paints is on the

basis of social class (Psycho graphic Segmentation).

For quality conscious customers ICI Paints offers D-Line products or Dulux and for price

conscious customers ICI Paints offer Non-D products. This aspect tells us about the difference

between luxury and need.


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TARGET MARKET

ICI Dulux is having a wide range of products that fulfils the needs of all type of customers, yet

its main focus in on the upper/elite class and the upper middle class. Comparatively little

emphasis is made on the lower middle class and further down in the market. Industrial customers

are also included in their target market.

ICI has infact categorised its customers into three categories.

1 Category A

2 Category B

3 Category C

Category A constitutes the elite / higher class and category B constitutes the upper middle class.

Both of these categories include the people who can easily afford the paints (highest quality) of

ICI Dulux. Therefore these two categories get the most importance Category C is of the middle-

middle and lower-middle class which usually afford the normal/average quality paints of ICI

Dulux.

Therefore they define their Target Market according to the class categories and not through

territories.

Ps of ICI

Product of ICI PaintsAccording to market point of view the product of ICI is:

Customer Satisfaction

Safety and health (For everyone which is directly or indirectly related to the company)

Position of ICI Paints

ICI is the leading company in the Pakistan as well world. It has 76% market share in Pakistan

and ICI Paints are used in countries which represent over 95% of the worlds population.

So ICI Paints is not only market leader of Pakistan but also worlds leading company in the

business of Paints.

Price of ICI Paints

ICI Paints price is very reasonable when we compare with the benefits or offering of ICI. Some

people think that paints of ICI are costly but keep in mind quality is free.


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Promotion of ICI Paints

ICI Paints is using following promotional tools:

Customer satisfaction is itself a promotion tool for ICI Paints and it help to develop C2C

relationship.

ICI Paints arranges painter parties at different places and at this event gift are given to those

painters which have used a reasonable quantity of ICI paint for the period.

ICI Paints has given a target to every dealer according to its capacity and market analysis. If

that dealer meets that target, ICI Paint will take that dealer to some other country for recreational

purpose e.g. last time ICI Paints chartered special plane for its dealers and took them to Dubai.

For present year ICI Paints has promised to take its dealers to Malaysia.

Just like other paints ICI has offered a token in every Bucket or Gallon of Maxilite and Painex

which are worth Rs. 220 per Bucket and Rs. 60 per Gallon.

People

People in ICI Paints can be divided into following categories:

Management Staff:

Management Staff is being used for decision making process and if there is any problem occurs

to the company.

Non-management Staff:

Non-management Staff includes Sales Promoters, IT persons and other contract based staff.

Process

ICI Paints is customer centric company so the process starts from the need or desire of customer

and ends at the delivery of products or finished goods.

Physical Evidence

The physical evidence of ICI Paints is its production unit, Decorative Department and Color

Studio which are easily accessible to the customer at any time.

3 Cs of ICI Paints

Consumer Competitor

Corporate

Consumer

The consumer of ICI Paints is any individual which has desire for the paint and requires cost

beneficial product.


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Competitor

The Biggest competitor of ICI Paints is Berger Robilac; it is local company which is being run

by the Big Investors in Pakistan.

Corporate

ICI Paints management is its corporate and management of ICI Paints is consists of marketing

and HR managers which basically belongs to Pakistan.

Environmental Policy

DuluxDecorative Environmental Policy

ICI Paints is part of Imperial Chemical Industries plc and is one of the largest and most

successful paint companies in the world. The UK Decorative Business manufactures a full range

of interior and exterior surface coatings for the Trade and Retail markets and is well known for

its Dulux Brand.

ICI Paints has been committed to reducing the environmental impact of its products for many

years.

Introduction

It is ICIs policy to ensure that all its activities worldwide are conducted safely; the health of its

employees, its customers and the public will be protected; environmental performance will meet

contemporary requirements, and that its operations are run in a manner acceptable to the local

communities.

The Dulux Decorative Environmental Policy underlines the ICI Group Policy and in addition

focuses on some key areas of work, where we are committed to improving our environmental

performance.These key areas are:

Decorative Products

ICI policy states that it will strive to develop new products and containers that have minimal

impact on the environment whilst maintaining its quality performance standards.


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One of the largest environmental effects of painting is the solvents which are given off during the

painting process. These solvents can cause adverse health effects (if used in poorly ventilated

areas) and can contribute to pollution in the lower atmosphere.

Much of our Research & Development work is targeted at reducing the solvent content of ICI

paint products and offering water-based alternative products. Our objective is to limit the amount

of solvent in the products ICI sells and reduces these limits over the coming years. ICI is also

taking initiatives to reduce the environmental impact of its containers.

Customers

ICI policy states that it will provide its customers with clear, accurate and helpful information on

environmental aspects of its products, including guidance on safe storage, handling, use and

disposal.

ICI provides comprehensive safety, health & environmental information on the back of all itscontainers, as well as advice on how to use the product.

Further information and guidance is given in the Dulux Color Cards, which are available in-

store, which are available free from the Dulux Advice Centre at Slough.

Manufacturing

ICI will take practical steps to ensure its product manufacturing and distribution processes are

carried out to minimize their impact on the environment.

ICI Pakistan is working with the rest of ICI to meet its main objective of reducing the waste from

its factories.

Suppliers

ICI will work with its suppliers to minimize the environmental impact of their own business and

manufacturing activities.

A program for assessing the environmental performance of ICI key suppliers is in place.

Employees

Within Dulux ICI feels it is important for its own employees to be able to contribute to its

environmental performance. It is ICI Paints policy to ensure that all personnel receive

appropriate training and information on environmental issues and that they are aware of and

understand our Environmental Policy.


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ICI is using Water-Based Paints for Environment

Water-based paints are now recommended as the best choice for interior use on large surface

areas such as ceilings and walls. Water-based emulsion paints such as Vinyl Matt, Soft Sheen

and Silk have been available for many years now. One can now buy water-based gloss and satin

finishes as well as a special Kitchen and Bathrooms paint. There are also water-based natural

wood finishes available such as Dulux Quick Drying Varnish and Timber color.

Water-based paints have become much more widely available over the last few years. Alongside

this development manufacturers now recommend restrictions on the use of solvent-based paints

inside.

All Dulux solvent-based paints that are intended for DIY use clearly state that the product must

not be used on large interior surface areas such as walls and ceilings. Previous advice was to

keep doors and windows open during application and drying. Recent evidence has shown that

even with the doors and windows fully open the smell from the paint can still reach a level that is

uncomfortable.

The smell from solvent-based paints is caused by the solvent used in the paint (white spirit)

evaporating into the atmosphere as the paint starts to dry. If there is not enough fresh air getting

into the room to ensure that the solvent vapor is dispersed you will be breathing in more solvent

vapor than is good for you, which may cause you to suffer from running eyes, headaches and

nausea. This makes decorating unpleasant. Therefore ICI recommends that only water-based

paints are used on large surface areas inside. When solvent-based paints are applied to smaller

surface areas such as doors, skirting boards and windows, or when used outside, solvent vapor

does not present a problem providing the paints are correctly applied in accordance with the can

instructions, which give guidance on good working practice. Solvents or Volatile Organic

Compounds (VOCs), from paint can contribute to summertime air pollution. It is therefore

sensible to restrict their use to areas where they are really needed. Dulux has always had a

commitment to offer the best possible choice of high quality products with clear guidance on

their safe and effective use. ICI objective is to limit the amount of VOC in our products and

reduce these limits over the coming years. As part of the Paint Industrys Environmental Policy,

a labeling scheme has been introduced on paint cans to give consumers more information aboutthe level of solvent in paint. All Dulux paints are labeled with the appropriate VOC symbol for

the product:


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Code of Corporate Governance

Compliance with the Code of Corporate Governance

As required under the Code of Corporate Governance dated March 28, 2002 the Directors arepleased to state as follows:

The financial statements, prepared by the management of the Company present fairly its state of

affairs, the results of its operations, cash flows and changes in equity.

Proper books of account of the Company have been maintained.

Accounting policies have been consistently applied in preparation of financial statements except

for the change indicated in the financial statements. Accounting estimates are based on

reasonable and prudent judgment.

International Accounting Standards, as applicable in Pakistan, have been followed in preparation

of financial statements and any departure there from has been adequately disclosed.

The system of internal control and other such procedures, which are in place, are being

continuously reviewed by the Internal Audit department. The process of review will continue and

any weakness in controls will be removed.

There are no doubts upon the Companys ability to continue as a going concern.

There has been no departure from the best practices of corporate governance as detailed in the

Listing Regulations.

Statement of Compliance with the Code of Corporate Governance for the year ended 31

December 2004

This statement is being presented to comply with the Code of Corporate Governance contained

in the listing regulations of the stock exchanges for the purpose of establishing a framework of

good governance, whereby a listed company is managed in compliance with the best practices of

corporate governance. The Company has applied the principles contained in the Code in the

following manner:

1. The Company encourages representation of independent non-executive directors and directors

representing minority interests on its Board of Directors. At present the Board includes six

independent non-executive directors including one director appointed under Section 182 of the

Companies Ordinance 1984 and another director nominated by a financial institution.

2. The directors voluntarily confirmed that none of them is serving as a director in more than ten

listed companies, including ICI Pakistan Limited, except for Mr. Tariq Iqbal Khan who is a


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nominee of National Investment Trust (NIT) and has been granted a waiver from the application

of the relevant clause of the Code by the Securities and Exchange Commission of Pakistan.

3. The Directors have voluntarily declared that all the resident directors of the Company are

registered taxpayers and none of them has defaulted in payment of any loan to a banking

company, a DFI or an NBFI. None of the directors is a member of a stock exchange.

4. During the year one casual vacancy occurred in the Board of Directors on 23 August 2004 and

it was filled instantly. The Company has filed the necessary returns in this regard.

5. The Board of Directors of the Company, in its meeting held on 23 February 2001, adopted a

Statement of Ethics and Business Practices under the title of The Way We

Do Things Around Here, which has been regularly circulated within the Company since 2001

and is in the knowledge of the Companys directors and employees.

6. An Employee Satisfaction Survey has been conducted and action plans are being

implemented under the supervision of the Board. Pursuant to this, a vision/mission statement has

been developed and approved by the Board at its meeting held on 25 February 2005 and it will

be circulated to the employees of the Company. Earlier on 27 February 2003 the Board of

Directors had approved and adopted a corporate strategy and significant policies. The corporate

strategy is reviewed by the Board from time to time.

7. All the powers of the Board have been duly exercised and decisions on material transactions,

including appointment and determination of remuneration and terms and conditions of

employment of the CEO and other Executive Directors, have been taken by the Board.

8. During the year five meetings of the Board were held including four regular and one emergent

meeting which were all presided over by the Chairman except for the emergent meeting which

was chaired by Mr. Mueen Afzal as Mr. M J Jaffer was abroad. Written notices of the regular

Board Meetings, along with agenda and working papers, were circulated at least seven days

before the meetings. The minutes of all five meetings were appropriately recorded and circulated

in time.

9. The Directors have been provided with copies of the Listing Regulations of the Stock

Exchange, the Companys Memorandum and Articles of Association and the Code of Corporate

Governance. Orientation courses, both in-house and external, were also arranged for the Board in2003 and they are well conversant with their duties and responsibilities.

10. No new appointments of CFO, Company Secretary or Head of Internal Audit have been

made after the application of the Code of Corporate Governance.


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11. The Report of the Directors for the year ended 31 December 2004 has been prepared in

compliance with the requirements of the Code and fully describes the salient matters required to

be disclosed.

12. The financial statements of the Company were duly endorsed by the CEO and CFO before

approval of the Board.

13. The Directors, CEO and executives do not hold any interest in the shares of the Company

other than that disclosed in the pattern of shareholding.

14. The Company has complied with all the corporate and financial reporting requirements of the

Code.

15. The Audit Sub Committee of the Board has been in existence since 1992. It comprises three

mem

brandaudit of ici

Documents