Chapter 1 Introduction

Origin of the report The report is prepared as a part of internship program which is an integral part of BBA program under the Department of Marketing, University of Dhaka. The internship program had started June , !" and ended on August # , !" . The report on $consumer perception a%out &ower Bond' has %een prepared under the supervision of Dr. A B M (hahidul )slam, &rofessor, Department of Marketing, University of Dhaka. All the guidelines provided %y him are strictly maintained to make this report accepta%le. The internship program was undergone under the supervision of Mr. *mar +ayat ,han, sales officer at Te-gaon in Dhaka of Berger &aints Bangladesh .imited /B&B.0. Purpose of the report The purpose of the report is to identify and analy1e the perceptions of the end users towards the products of &ower Bond of Berger &aints Bangladesh .td /B&B.0. The report attempts to reveal the market position of &ower Bond. Moreover, accomplishment of BBA program re2uires su%mission of an internship report to the academic department. The purpose of the report is also to help management to gain insights to take appropriate decisions regarding their marketing mi3 and strategies. Management at B&B. re2uires a report on internship so that they can measure how much the interns learn from their organi1ation. This helps it to develop their products and marketing program with a view to satsfying the customers who are always considered as king or 2ueen. Scope of the report The report focuses on the adhesive products of Berger &aints Bangladesh .imited. B&B. sells adhesive products under the %rand name of &ower Bond. The report only focuses research in a certain num%er of areas concentrating Dhaka city. The areas include Mirpur, Badda, 4ampura, 5arida%ad, 4 (in 6ate, .al%agh, (avar and 7arayangan-. The survey data is collected from the carpenters of that area. Besides, owner of the furniture workshops also provided valua%le insights regarding the issue of this report. Objectives of the report The o%-ectives of the research are the following. To assess whether customers are satisfied /to what e3tent0 with &ower Bond. To accomplish the internship program as a part of BBA. To find out the total market share of &ower Bond at Dhaka city. To find out the %rand preference of customers.

To identify the elements of marketing mi3 re2uired to generate %usiness growth. To find out the loyalty level of &ower Bond among customers.

1.5 Limitations of the study

The study was restrained %y some of the factors. They are the following.

Lack of customer database &ower Bond lacks updated and sufficient data%ase of carpenters to who research to %e conducted. As a result, it was very difficult to locate the position of potential prospects and customers. This also reduces the energy efficiency. Lack of supervision by bosses The organi1ational %osses are so much %usy with their regular activities %ecause it is a sales office. (ometimes, they are una%le to supervise and deal with specific issue due to pressure of work load. Limited access to information There is limited access to confidential information for the interns. Communication prob!em Most of the customers of adhesive products are illiterate. Moreover, they have some professional language that may %e unknown to a non professional person. This sometimes created communication pro%lem. "on Cooperation (ome of carpenters showed non cooperative %ehavior while conducting research. The reason is why this type of research is conducted or whether there e3ists any trap. #ransportation disadvantage 6athering information of Dhaka city re2uires roaming through door to door of potential customers. (ometimes transportation facilities were not availa%le. $ough %eather 4ough weather )ncreasing temperature and rain also made the tasks harder. Cost and #ime The report was restrained %y cost and time.

$esponse error (ome of the carpenters who participated in the survey seemed to provide inaccurate information.

Chapter & Literature 'rame%ork

Introduction There is no product in the world that does not have a position. &roduct positioning is a%out visi%ility and recognition and what product represents for a %uyer. )n markets where the intensiveness of rivalry and competition are increasing and %uyers have a greater intrinsic values %ecome critical. An offering with a clear identity and orientation to a need will not only %e purchased, %ut can warrant a larger margin through increased added value. 7umerous organi1ations are trying to manage their positions occupied %y their products and are using different positioning strategies to move to new positions in consumer minds and so generate an advantage over their competitors. 8arlier positioning was very important in markets that are very competitive and where mo%ility %arriers are relatively low. 7owadays these market characteristics can %e applied almost to every industry or %usiness, and to any economy. 7o product, of those which have survived, can %e imagined without clear, distinct and intensive positioning. Concept of Product Positioning There are a great num%er of different definitions of positioning in marketing. The concept of positioning seeks to place a product in a certain position in the minds of the respective %uyers. Marketers use positioning strategy to distinguish their firm9s offerings from those of competitors and to create promotions that communicate the desired position /Boone and ,ur1, !"" 0. 4ies and Trout / :;<0 distinguish from all other marketing theoretic, stating that positioning is not what is done to a product. &ositioning is what is done to the mind of the prospect. The same authors indicate that positioning starts with a product such as a piece of merchandise, a service, a company, an institution, or even a person. +owever, ,otler /!""<0 defines positioning as the act of designing the company9s offer so, that it occupies a distinct and valued position in the target consumers mind. ,otler = Armstrong /!""<0 verify that market positioning is arranging for a product to occupy a clear, distinctive, and desira%le place, in the minds of target consumers, relative to competing products. Thus, marketers plan positions that distinguish their products from competing products and give them the greatest strategic advantage in their target markets. To sum up, the position of a product is customers9 perceptions of a product attri%utes relative to the attri%utes of competitive products. Buyers make a large num%er of purchase decisions every day. To avoid constant reevaluation of numerous products, %uyers tend to group, or position products in their minds to simplify %uying decisions. 4ather than allowing customers to position products independently, marketers must try to influence and shape consumers9 perceptions of different products.

S#P (ode! The foundation of positioning theory is made of one of the most important postulates of the science of marketing. )t states that people are e3tremely different and a product cannot %e liked e2ually %y everyone. )t is simple to define the essence of the (T& model> to present the product to those consumers, who want it and are a%le to ac2uire it. The first two steps of the (T& model serve to find and define the desired consumer, and positioning serves for placing the product in the desira%le position in the minds of target consumers. (cholars 6rancutt, .eadley and 5orsyth /!""?0 thoroughly descri%e the (T& model steps in the ta%le %elow.

5igure> (T& Model

Product positioning steps

(cholar @inner /!""A0 has a distinct view on product positioning decisionsB he emphasi1es customer decision making process as the most important issue in product positioning steps. According to the scientist, marketers have to answer the following 2uestions when positioning the product @hat dimensions do consumers use to evaluate product offerings in the industry or categoryC +ow important is each of these dimensions is in the decision making processC +ow do you and competition compare on the dimensionsC @hat decision processes do the customers useC

The author +ooley /!"" 0 determines these stages of product positioning process>

5igure> &roduct positioning steps

Identification and ana!ysis of competitive products in the market Drawing positioning frames for a product, category mem%ership should %e determined first, i.e. other products that compete in the same market and can serve as su%stitutes. The %est considered means for determination is 2ualitative approachD consumer survey. This method allows collecting a large amount of useful data, which is easily systemi1ed, adapted, processed statistically. *ne of the main advantages of consumer survey is the anonymousness. Deep interview can %e also used to determine the rival products in the market, %ut due to larger time and financial costs is used seldom. Eompetition can %e taken place in the following levels> Eompetition with products with analogous 2ualities Eompetition in the same product group Eompetition with other products that satisfy the same or very similar consumer demand Eompetition in the same consumer demand level

Identification of determinant attributes and measuring their significance to the user

After the identification and analysis of competitive products in the market, determinant attri%utes should %e identified and their significance to the user should %e measured. According to Aaker, /!""F0 determinant attri%utes define not only the products %enefits and value to the user, %ut also associations with the product consuming process and with the consumer himself. The authors +ooley, (aunders, &iery /!""<0 consider a 2ualitative approachD the discussion group to %e the most effective test for determining the determinant attri%utes. ,otler and Armstrong /!""#0 state the determinant attri%utes %e valua%le only if they are> 6reater value> The difference delivers a highly valued %enefit to a num%er of %uyers who use the product Distinctive> Eustomers can en-oy the difference in a distinctive way (uperior> (uperior to other ways of o%taining the %enefit &reemptive> The differences cannot %e easily copied. Afforda%le> The %uyer can afford to pay for the difference. &rofita%le> The firm will find it profita%le to introduce the difference. 1

Identification of the current position of the product and other competing products according to determinant attributes The ne3t step is to identify the products and other rival products current positions on the market. The task can %e done through the following survey techni2ues> scales of graphic evaluation, .iker scale, semanticDdifferential scale. Composition of the positioning map A positioning map provides a valua%le means in assisting marketers to position products %y graphically illustrating consumers9 perceptions of competing products and the product they are positioning. &ositioning map is a powerful tool for e3amining the position of products for the following reasons. )t develops understanding a%out the relative strengths and weaknesses of different products perceived %y the customers. )t informs the similarities and dissimilarities %etween competing products. )t aids the process of repositioning e3isting %rands and the positioning of new %rands. )t ena%les marketers to develop and track the most effective promotional strategy.

)eterminant of the desired position of the product The ideal point is the place on the positioning map that represents the set of attri%utes most desired %y the consumers. Eompanies choose the desired position as close to the ideal perceived position as possi%le with respect to segment attractiveness, current or potential strength of the product serving the segment. Se!ection of positioning or repositioning strategy This is the most crucial point in product positioning step. (tem /!""<0 dictates positioning strategy as the choice of the target market segments that determines where the company competes and the choice of differential advantage. &roduct positioning strategies can %e done %y the following ways. &ositioning on specific product features o AdidasDathletic shoe &ositioning on %enefit, pro%lem solution or needs

o &ure itD water purifier &ositioning against another products o A up Gthe uncola &ositioning through service uni2ueness o (ingapore Airlines (ometimes, changes in the competitive environment force marketers to reposition a productD changing position it holds in the minds of consumers relative to the position of competing products. Doyle /!""<0 suggests the following repositioning options. )ntroduce a new %rand Ehange e3isting %rand Alter %eliefs a%out the %rand Alter %eliefs a%out competitive %rands Alter attri%ute importance weights )ntroduce new or neglected attri%utes 5ind a new market segment Marketers may change the product positioning strategy if the product fails %ecause of initial positioning mistakes. A product may %e inade2uately positioned for three reasons. The segment in which it is targeted might have %ecome unattractive %ecause it is too small, declining, too competitive or otherwise unprofita%le. &ositioning might %e inade2uate %ecause the 2uality and features that the product offers do not appeal to the segment to which it is targeted. &roduct costs are too high to allow it to %e priced competitively. 6rancutt and others /!""<0 indicate four main risky product positions on the market> under positioning, over positioning, confuse positioning, dou%tful positioning. Potentia! $isk Under positioning *ver positioning Comment (ome companies discover that %uyers have only a vague idea of the %rand and the featuresH%enefits of that %rand. Eustomers may not %e aware of anything particularly special a%out the %rand. Eustomers may have too narrow a view of the %rand. Therefore a consumer might think that a particular glass company, for e3ample, only produces lu3ury items that retail at high prices. 1

Eonfused positioning

Dou%tful positioning

+owever, it may produce a variety of cheaper standard glassware. Eustomers could %e confused a%out the position of the %rand within the marketplace. This confusion may result from the company making too many decisions a%out the %rand, or changing the %rand9s positioning too fre2uently. Eustomers may find it hard to %elieve the claims made %y the company a%out its %rand in view of the individual product9s features and promoted %enefits, the price and the name of the manufacturer.

Ta%le> &otential positioning risk

Creation of the positioning statement The final step is to formulate a positioning strategy in tune with the promotional o%-ectives. A marketer should consider on the following issues in this regard. @ho is the products9 intended target audienceC @hat %enefit/s0 does the product %ring to consumerC )s the product %rand centered of differentiated in its product categoryC

Conc!usions

+aving completed the theoretical studies of product positioning in the market the following conclusions can %e made> &ositioning plays a key role when reaching the desired place in the mindsets of potential and e3isting consumers. Most scientists of the field of marketing define product positioning as arrangements for a product to occupy a clear, distinctive, and desira%le place in the minds of target consumers, relative to competing products in the market. The position of a product is formed %y customers9 perceptions of a product attri%utes relative to the attri%utes of competitive products &roduct positioning is an insepara%le and most important part of the (T& model. )f the first two steps /segmentation and targeting0 contain flaws or are

inade2uately or incompletely performed, successful product positioning is doomed to fail.

Chapter * +erger Paint at a g!ance

*.1 +ackground of +erger Berger is one of the strong %rands in the paint industry. The inception of Berger was laid out in A<" %y a 6erman national named .ouis Berger, who started dye and pigment %usiness in 8ngland. .ouis involved his family into the %usiness and eventually changed the status of the company to .ouis Berger = (ons .imited. The company grew and e3panded rapidly with a strong reputation for e3cellence in innovation and entrepreneurship in pain. )n the initial years, .ouis successfully refined the process of manufacturing &russian %lue, a deep %lue dye. This dye was widely used for the uniforms of many 8uropean armies of that time. &roduction of dyes and pigments evolved into production of paints and coatings, which till today, remains the core %usiness of Berger. The company grew rapidly, %y esta%lishing %ranches all over the world and through mergers and ac2uisitions with other leading paint and coating manufacturing companies. *.& +erger Paints +ang!adesh Ltd ,+P+LBerger &aints started Ipainting9 Bangladesh since independence. *ver the past few decades, Berger has evolved and transformed itself in %ecoming the leading paint solution provider in the country with a diversified product range that caters to all your painting needs. )t is one of the most technologically advanced companies in the country. )t is constantly striving for innovating superior 2uality products and services. @ith more than !F" years of rich heritage, Berger manufactures world class paints for all kinds of su%strates and also provides unparallel services. The ma-or milestones of B&B. are shortly descri%ed %elow.

.ears :F" :A" :;" :: ::F ::: !""! !""?

(ajor (i!estones (tarted operation in Bangladesh %y importing paint from Berger U, 8sta%lishment *f Ehittagong factory 7amed as Berger &aints /BD0 .td. from Jenson = 7icholson /J=70 BM48 in Ehittagong factory 8sta%lishment of Dou%le Tight Ean Manufacturing &lant 8sta%lishment of Most Modern (ateDofDtheDArt &roduction &lant in Dhaka Eonstruction of own %uilding for the Eorporate office in Dhaka 8sta%lishment of &ower Eoating &lant

!""A !" "

.aunching the Adhesive Business 6ot the third place as Adhesive Business

#ab!e Ma-or Milestones of Berger &aints Bangladesh .td

*.* /ision and (ission of the company The vision and mission of Berger &aints Bangladesh .td. /B&B.0 is very transparent and tangi%le. Berger emphasi1e highly on the ethical commitment to produce %enchmark 2uality product. The vision and mission statement of the company is> /ision $@e shall remain as the %enchmark in the &aint industry %y> %eing an innovative and technology driven Eompany consistently delivering worldDclass products ensuring %est consumer satisfaction through continuous value added services provided %y highly professional and committed team.' (ission $@e shall increase our turnover %y ""J in the ne3t five years. @e shall remain socially committed ethical Eompany.'

*.0 "ature of +usiness B&B. is one of the leading multinational corporations in the paint industry in our country. )t operates its %usiness in more than ?< countries leading from the front whatever it does. )n Bangladesh it mainly conducts painting %usiness with non paint %usiness. )t offers products for every sphere of industry from decorative to industrial, marine, powder coating, te3tiles, %rush and roller, preDtreatment chemicals, auto refinish, wood coating and adhesive %usinesses.

'igure Business portfolio of B&B.

'igure *rgani1ational (tructure of B&B.

*.1 Products of Po%er +ond

*.1.1 Po%er +ond2 Synthetic $esin 3dhesive2S4 Berger &aints has introduced &ower Bond, (ynthetic 4esin AdhesiveD(+. &ower Bond is a premier 2uality water %ased adhesive that gives the highest %onding strength suita%le for furniture industries, this product is lac2uer proof and resistant to heat and water, having high coverage which will add value to the related industries. &ower Bond is availa%le at the dealersK outlet across the country. The product was launched in Decem%er !""A and has already %een appreciated %y the end users for its %onding performance and high value for money.

*.1.& Po%er +ond S$

&ower Bond (4 is a solvent %ased adhesive that guarantees ma3imum %onding capacity with versatile uses. )t can %e used for furniture using 5ormica, fi3ing upholstery, -oining 5ormica to particle %oards, -oining foams in sofas, fi3ing tu%es, tires and even leather.

*.1.* Po%er +ond ))L &ower Bond DD. is a silica %ased adhesive that guarantees ma3imum %onding capacity for paper uses. &eople use it for %ook %inding, posters hung etc.

Chapter 0 Positioning Po%er +ond

0.1 Segmentation of Po%er +ond &ower Bond segments the total adhesive markets into three %ased on the types adhesive used. The three markets it serves are furniture usage, paper usage and versatile usage. 5or each distinct type of market, it offers &ower Bond (+, &ower Bond (4 and &ower Bond DD..

5igure> (egmentation %ase for &ower Bond

0.& #arget (arket of Po%er +ond Market targeting involves the evaluating each segment9s attractiveness and selecting one or more segments to enter /,otler, !" "0. Based on the segmentation, &B selects all the segments to serve with distinct product for each segment. Different segment of customers have different needs. 4eali1ing the fact &B offers three types of different product for each of the segment. The target market of &B mainly consists of carpenters who use adhesive to -oin the wood to make furniture. )t serves %oth the financially well esta%lished furniture workshop and small furniture workshop. &B serves generally the following target market. 0.* Positioning Po%er +ond &ositioning is arranging for a product to occupy a clear, distinctive and desira%le position relative to competitive products in the minds of target consumers /,otler, !" "0. &B 1

develops uni2ue markets positions for its products so that consumers get the desired value %y using the product form &B. )n positioning its products, &B first identifies the possi%le customer value differences that provide competitive advantages upon which to %uild the position. &ower Bond provides the greater 2uality with reasona%le price to satisfy the customers. &ower Bond is a product of Berger &aints Bangladesh .imited which has a strong %rand value in the minds of consumers. Berger is the leading paints company in the country providing higher 2uality products to customers to decorate their home and assets.

Quality products

Strong brand value

Customer care

Wider product choice Fair price

Home delivery

Figure: Consumer perception map about Berger Paints Bangladesh Limited

Identification and analysis of the competitive products

&ower Bonds mainly compete with competitors who manufacture and sell adhesive products. Their main rival competitors are 5evicol of &idilite and 5ast of 5ast 6roup. 5ivicol is the leader in the adhesive industry while 5ast holds the second position in terms of market share. The main competitors are the following. (ynthetic 4esin Adhesive used for %onding wood, plywood, and laminates, veneers, and particle %oards, %lock %oardHhard %oard = MD5 to each other. )deal for woodworking. 'eatures 5 +enefits (ynonymous with strong %ond in wood and furniture industry. Unsurpassed %onding strength. 4esistant to water and heat. 6ives high coverage +igh price (trong %rand value

Packing F" gm, !F gm, !F" gm, F"" gm. ,g, ! ,g, F ,g, " ,g, F ,g, !" ,g, #" ,g, F" ,g. (ynthetic 4esin Adhesive used for %onding wood, plywood, and laminates, veneers, and particle %oards, %lock %oardHhard %oard = MD5 to each other. )deal for woodworking. 'eatures 5 +enefits (upreme Bonding (trength 4esistant to water and heat 6ives high coverage .ong storage life )deal for wood works .ow price

Package 5 gm! 1"5 gm! "5 gm! 5 gm# 1 $g! " $g! 5 $g!1 $g!15 $g! " $g! % $g! 5 $g# &he %rand name of Bengal )ndustrial

adhesives are DADE*, ADDDA.. = ADDD E* known for their 2uality . Bengal Adhesive is simple to use and provides dura%le %onding of ru%%er to leather, wood to leather, wood to wood = 5ormica, leather to te3tile, etc. 'eatures 5 +enefits +onding strength 6ives high coverage Lo% price Loca! product

Package 5 gm! 1"5 gm! "5 gm! 5 gm# 1 $g! " $g! 5 $g!1 $g!15 $g! " $g! % $g Identification of the determinant attributes that customers value

According to Aaker /!""F0, determinant attri%utes or factors define not only the products %enefits and value to the user, %ut also associations with the product consuming process and with the consumer himself or herself. Berger identified that customer value the 2uality and price while they choose a specific %rand of product. As adhesives are used to %ind the wood to make furniture, 2uality does matter. A return of furniture is possi%le %ecause of using low 2uality adhesive. .ow 2uality adhesive does not ensure the long %onding strength. (ome carpenters who are the customers of adhesives have no specific choice. They purchase products which are availa%le whenever needed. The key attri%utes that customers value to %e satisfied are the following. Bonding strength 4easona%le priceH &roduction cost Availa%ility Dry time 4ate of wastage

Eoverage

Figure: 'ttributes that customers value (or adhesive

Composition of the product positioning map )n the adhesive industry, carpenters purchase adhesive %ased on the two main criteria. They are the %onding strength or 2uality and the price. Based on these two criteria, the positioning map of adhesive products in the mind of consumers is drawn graphically %elow.

Figure: Product positioning map Selection of the desired position

An ideal position for &ower Bond is the place on the positioning map that represents the com%ination of attri%utes most desired %y the consumer. This point descri%es the product the consumers would prefer over all other competing %rands. According to J. Baker /!"" 0, marketers take two core decisions while determining the desired position for a product> selection of target market and identification of positions of competitive products, determination of differential advantages. Se!ection of positioning or repositioning strategy 6rancutt and others /!""?0 four main positions on the market> under positioning, over positioning, confused positioning and dou%tful positioning. To select the appropriate positioning strategy, Berger must have idea a%out the conceptions of customers according to this positioning risk. Potentia! $isk Under positioning *ver positioning Eonfused positioning Dou%tful positioning Comment (ome consumers have vague idea a%out the competing %rands of &ower Bond (ome consumers have narrow view point a%out &ower Bond. They may think &ower Bond as a new product may not work properly. Eonsumers may think as new %rand it may fre2uent change its decisions. Eustomers may think &ower Bond may not %e a%le to provide 2uality products what it promises

To occupy a position in the minds of consumers, &ower Bond follows the following strategy.

&roducing higher 2uality products *ffering products at a lower price (pecial discount for huge amount of purchase +ome delivery After sales service &roviding incentives to carpenters 5ree gifts

Preparing (arketing (i7 Marketing mi3 is the set of controlla%le and tactical marketing tools that firms %lend to produce the desired response it wants in the target market. &ower Bond prepares a marketing mi3 to occupy a distinctive and valued position in the mind of its customers. Product Based on the market segmentation, &ower Bond offer its target market with different product for each individual segment as each segment has different need. &B offers three different types of adhesive products for three different market segments. Product &ower Bond (+ &ower Bond (4 &ower Bond (. (arket 5urniture workshop 5oam, (hoe Book %inding

Price &ower Bond of B&B. follow the competition %ased pricing strategy. Eompetition %ased pricing is charged what competitors are charging for a similar product. )t also follows what the market leader charges. )f 5ivicol which is the market leader in adhesive industry in Bangladesh increases the price, &ower Bond also increases prices of its products and vice versa. The comparative price structure of &ower Bond and 5evicol are shown %elow. 1

F" ,g #" kg F kg F kg ! kg kg F"" gm !F" gm !F gm F" gm

Po%er +ond price !ist effective from 15212&811 ($P taka Po%er +ond 'evico! 'ast <!F" < "" ??!F ?F"" ?#;F !!<" !#"" ! :" ;"" ;A" A;F ##" #?F # F A! :" <F ;; "! ;! F" F; ?< !< #? !! ? !" ? #ab!e Ma3imum 4etail &rice of adhesive products in Bangladesh

)a2co ?#A; ! ;F AAF # " <# ;" ?? !" #

5rom the a%ove ta%le, it is clearly seen that &ower Bond applies the competitive price structure. )t mainly o%serves the price strategy of 5evicol and 5ast. P!ace @ith its strong distri%ution network, Berger has reached almost every corner of Bangladesh. 7ationwide Dealer 7etwork, supported %y ; (ales Depots strategically located at Dhaka, Ehittagong, 4a-shahi, ,hulna, Bogra, (ylhet ,Eomilla and Mymensingh has an unmatched capa%ility to answer to adhesive needs at almost anywhere in Bangladesh. Berger divides the entire country into # 1ones or territories to serve its dealers and customers. Among these 1ones seven are supervised from Dhaka sales office suited at !A!, Te-gaon )ndustrial Area, Dhaka D !";. 4ests of the tern stories are monitored from each divisional sales office.

5igure> Berger Availa%ility Map B&B. maintains very short and effective channel length to distri%ute its products to the customers. )t promotes direct selling approach to the end users and manages only dealers and pro-ects. *%-ective of such approach is to gain more control over its dealers and customers and %rings close monitoring and evaluating facilities to the top management of the organi1ation.

Sales depot of Berger

Dealers

Dealers

Customers

'igure> Distri%ution Ehannel

Promotion (i7

9!ectronic media Adhesives of Berger are promoted in the market through electronic media mainly in BTL and Ea%le Ehannels. Through these ads not only the overall Berger products are offered %ut also the individual %rands are promoted. Through radio Berger is trying to reach those potential targets that are not easily reacha%le %y the BTL or (atellite. Print (edia During daytime mostly in the office market potentials have little opportunity to go through the electronic media. 4ather, they are used to go through the newspapers, maga1ines and other periodical pu%lications. (o Berger has taken the initiatives to attract people9s attention through print media to some e3tent. Moreover, %rochures, shade cards and other paint related information in printed form are delivered to the dealers, potential customers, painters and other targeted potentials to make them interested Hmore interested toward Berger products. +i!!board &ower Bond efforts also move to grasp the potentials9 attention and to increase the fre2uency of e3posure toward adhesive products while they are on the way to their destinations. 0.0.0.0 Sa!es Promotion &ower Bond offers different types of incentives for consumers and traders of the adhesive market. Trade promotion occurs more fre2uently than consumer promotion. Because, success in this market highly depend on the traders involved channeling the paints from producers to consumers. Traders are highly influential in the market %ecause of long purchase cycle time /app. # years0 of paints, technical aspects of the paints etc. 8very month &ower Bond arranges different incentives program either for the carpenters or the furniture workshop owners. Management of &B maintains two or three hours a session where they deal with their customers to know a%out their perceptions or attitudes towards the products. )t seeks suggestions to develop their products to satisfy them. 6ifts such as pencil, um%rella, key ring etc are given to the guests.

Chapter 5 (arketing $esearch

&.1 (arketing $esearch )esign Marketing research is the systematic and o%-ective identification, collection, analysis, dissemination and use of information for the purpose of improving decision making related to the identification and solution of pro%lem and opportunities in marketing /Malhotra = Dash, !" 0. To conduct research on market, marketers sketch a design procedure. Malhotra and Dash /!" 0 say marketing research design is a %lueprint for conducting the marketing research pro-ect. 4esearch design can %e classified into two types. They are> 97p!oratory research *ne type of research design which has as its primary o%-ective the provision of insights into and comprehension of the pro%lem situation confronting the researcher. Conc!usive research 4esearch designed to assist the decision maker in determining, evaluating and selecting the %est course of action to take in a given situation to test specific hypotheses and e3amine relationships. &.& "ature of research @hen a researcher has a limited amount of e3perience with or knowledge a%out a research issue, e3ploratory research is a useful preliminary step that helps ensure that a more rigorous, more conclusive future study will not %egin with an inade2uate understanding of the nature of the management pro%lem. The purpose of an e3ploratory research is intertwined with the need for a clear and precise statement of the recogni1ed pro%lem. 83ploratory research has two interrelated purposes, to diagnose a situation and discover new ideas. Much, %ut certainly not all, e3ploratory research provides 2ualitative data. This research is a 2ualitative e3ploratory research, as it is an initial research conducted to clarify and define the nature of a pro%lem. )t is 2ualitative as the results of this research focuses on words and o%servations, instead of num%ers and mathematical analysis.

Objective of the research

To understand the concepts of positioning. To understand how a company can %uild %rand image %y positioning its %rand.

 To understand the consumer %ehavior in adhesive markets.

$esearch Process 5or the purpose of conducting the research ) have formulated a research process framework. A research process framework is very crucial for research formulation. The research process framework is depicted %elow for the %etter understanding of the research methodology.

5igure> &rocess framework for research pro-ect

4esearch Methodology

)esearch *ethodology is a +ay to systematically solve the research problem# ,t may be understood as a science o( studying ho+ research is done scienti(ically# When +e tal- o( research methodology +e not only tal- o( the research methods but also consider the logic behind the methods +e use in the conte.t o( our research study and e.plain +hy +e are using a particular method or techni/ue and +hy +e are not using others# &he ma0or steps involved in our research process are1 Formulating the )esearch Problem Choice o( )esearch 2esign Sources o( 2ata Processing and analy3ing the data &hese are brie(ly described belo+1

Formulating the Research Problem: &he problem +ell de(ined is hal( solved# &he (ormulation o( a general topic into a speci(ic research problem constitutes the (irst step o( speci(ic en/uiry# 4nit o( analysis1 Consumers bet+een age group o( "5 to % yrs# Characteristics o( ,nterest1 '+areness o( 5reen *ar-eting#

Choice of Research Design: 6very pro0ect re/uires an action plan and method (or conducting a study# &his pro0ect is more prone to single cross7sectional descriptive research design#

Sources of Data: &he data presented are both primary data and secondary data# Primary Data: &he primary data are those +hich are collected a(resh and (or the (irst time! and thus happen to be original in character# Here the Primary data +ill be collected by means o( preparing a /uestionnaire and getting it (illed by a large sample space# &hese /uestionnaires +ill help in dra+ing conclusions about the pro0ect# Secondary Data: Secondary data means data that are already available i#e# they re(er to the data +hich have already been collected and analy3ed by someone else# When the researcher utili3es secondary data then he has to loo- into various sources (rom +here he can obtain them#

Secondary data is very important to complete a pro0ect report# &he purpose o( this data +as to supplement the primary data# &he secondary sources o( collecting data +as7 ,nternet8 *aga3ines8 'rticles#

#ype of data used This research is not focusing on any secondary data, as no such preview research has %een conducted in conte3t of Berger &aint Bangladesh .imited. This research is worked with %oth primary data and secondary data.

)ata co!!ection procedure There are three types of method, survey, o%servation and e3periment. Data is collected through survey method. 5or the survey method, this research is used with unstructured personal interview. A 2uestionnaire is kept in hand of the interviewer to aid the interview process. A personal interview is a form of direct communication in which an interviewer asks respondents 2uestions in a faceDtoDface situation. There are several advantages of personal interviews> &ro%ing comple3 answers. The opportunity for feed%ack. +igh participation.

Samp!ing P!an

The sampling techni2ue is a crossDsectional study as the data is collected at a single point in time. #arget Popu!ation The carpenters who use adhesives to %ind the wood to make furniture

Samp!ing 'rame .ists of carpenters 1

.ists of furniture workshop owners .ists of developers at Dhaka city

Samp!e Si:e The sample si1e for this survey is ;"" respondents from different areas of Dhaka city. The respondents are mainly the furniture workshop owners and their employees known as carpenters. The respondents are selected from the following areas.

"ame of 3rea Mirpur Badda 5arida%ad 6andaria 4 (in 6ate (avar 7arayagan#ota!

"umber of $espondents !" F" ;" ?" A" ;" <" ;88

#ab!e (ample si1e

Samp!ing characteristics )emographic 3ge Occupation Status <ser status Loya!ty status $eadiness stage FD!", !"D#", #"D?", ?"DF" Earpenter, 5urniture workshop owner .ower class, Middle class +ehaviora! 4egular users, )rregular users, 5irst time users (trong, &oor )nformed, aware, interested, Do not know

#ab!e (ample characteristics

'ie!d%ork

To collect the data door to door interview is conducted %y visiting the market. )ata 3na!ysis

(tandard editing and coding procedures are utili1ed. (imple ta%ulation and crossD ta%ulations will %e utili1ed to analy1e the data. Microsoft *ffice 83cel !""A software is used to analy1e the data graphically.

(arketing $esearch and 3na!ysis of )ata

To assess the attitude of carpenters towards &ower Bond, ;"" respondents were surveyed across the Dhaka city. The area includes Mirpur, Uttara, .al%agh, 5arida%ad, 6andaria, 4 (in 6ate, Badda, 4ampura, 7awa%pur, (avar and 7arayangon-. ) mainly surveyed from the carpenters of furniture workshop and furniture showroom. The findings of the study are shown %elow.

Popu!ar adhesive at )haka

5igure> &opular adhesive at Dhaka

)t can %e seen, among ;"" respondents #: percent carpenters use 5evicol adhesive whereas !! percent use &ower Bond. The rest of the portions are #" percent and : percent respectively for 5ast and DaDco. (o, the most used adhesive at Dhaka is 5evicol.

Person inf!uencing %hi!e purchasing adhesive

5igure> &erson influencing in purchasing adhesive 5rom the graph, it is seen the purchase decision of adhesive is mostly taken %y the owner of a furniture workshop. )n this case the percentage is < percent. )n case of purchasing a specific %rand, #: percent are the head carpenter of the workshop. )t is noted that most of the case the owner is the head carpenter.

Price as the most important factor in choosing specific brand

'igure &rice as the most important factor in choosing specific %rand

)t can %e seen from the graph, !A percent strongly agree that price is a crucial factor while purchasing a specific adhesive to %e used to make furniture. !# percent agree with this fact. The rest of the portions are neutral, disagree, and strongly disagree. The percentages are respectively ? percent, ! percent and !F percent.

+est for %et %ood

'igure Best for wet wood

5evicol, from the graph, is the %est adhesive for the wet wood which an essential material for furniture. A# percent of the respondents voted for the 5evicol. 5ast holds the second position with a percentage of F. " percent is for &ower Bond and ! percent is for DaDco.

+est for finger joint

5igure> Best for finger -oint

The graph shows 5ivicol is the %est for the use of -oining finger shaped wood. FF percent of the respondent use 5evicol adhesive for this purpose. #< percent of the respondents put marks on 5ast. &awer Bond and Daco respectively hold percentage of F percent and ? percent.

'actors to be considered %hi!e purchasing

'igure 5actors to %e considered while purchasing

)t is seen from the a%ove graph, the most important factors to %e considered while purchasing a specific %rand of adhesive are strength of %onding, thinness and price.

$o!e of advertising in se!ecting specific brand

'igure 4ole of advertising in selecting specific %rand Advertisement plays little role in selecting specific %rand of adhesive. Most of the respondents replied their e3perience with the use of particular adhesive help them to decide a%out the choice of a %rand. )f they are satisfied on a particular %rand, they make repeat purchase. *therwise, they switch to another %rand. AA percent of the respondents have negative view point regarding this issue. Among them ?A percent is strongly disagree and #" percent is disagree. < percent of the respondents put marks on agree and # percent of the respondents put marks on strongly agree. *nly ? percent shows neutral %ehavior. Importance of Sa!es Promotion

5igure> )mportance of sales promotion (ales promotion such as free gifts greatly attracts the attention of the carpenters towards the %rand. This graph shows ?? percent of the respondents strongly agree with the importance of sales promotion whereas only # percent of the respondents strongly disagree with the fact. percent disagree, : percent are neutral and ## percent agree.

Increase in price can change preferred brand

'igure 8ffect of price increase to switch %rand )f the price of a product increases, how would the customer react is shown at the a%ove graph. !; percent of the respondents strongly agree that they would switch to another %rand and # percent show agree. The rest of the respondents who put marks on strongly disagree, disagree and neutral are ! percent, !! percent and A percent. '!e7ib!e credit payment system

5igure> Eredit payment system

The graph shows 5ast provides the most fle3i%le credit payment system %y the response of the !: percent of carpenters. &ower Bond holds the second position with a percentage of !A percent. The rest of the responses of !# percent, !: percent, ! percent go to respectively 5ivicol, DaDco and 6lue. =ua!ity as the most important factor

'igure Muality as the most important factor )t can %e seen from the graph, #" percent strongly agree that 2uality is a crucial factor while purchasing a specific adhesive to %e used to make furniture. !! percent agree with this fact. The rest of the portions are neutral, disagree, and strongly disagree. The percentages are respectively # percent, !" percent and !F percent.

3fter sa!es service can create brand !oya!ty

'igure 4ole of after sales service in %uilding %rand loyalty )t can %e seen from the graph, !A percent strongly agree that after sales service is a crucial factor in %uilding strong %rand loyalty. !! percent agree with this fact that after sales service can %uild %rand loyalty among the customers. The rest of the portions are neutral, disagree, and strongly disagree. The percentages are respectively #! percent, F percent and ? percent.

(ain factors to be considered %hi!e purchasing a product

'igure Main factors to %e considered while purchasing a product )t is seen from the graph that F percent of respondents choose a specific %rand %ecause of higher 2uality. ?? percent of respondents said they purchase %ecause of low reasona%le price. The rest of the respondents said they purchase a %rand which is availa%le at the time of need.

Types of &ower Bond user

83planation The graph shows that !: percent of the respondents are the regular user of &ower Bond while ? percent of the respondents are first time user. The portion goes to #< percent who used &B %efore. The rest of the portions are < percent, percent and ? percent 1

respectively for occasional users, no e3perienced users and customers who do not know &B.

'indings

The o%-ective of the study is to find out the competitive position of &ower Bond in the adhesive industry. Berger has a strong %rand with years of reputation for 2uality products. )t holds the leading position in the paint industry. Many of the respondents or customers or prospects %elieve the adhesive products of Berger would also %e high 2uality products. Eustomers %elieve they would %e satisfied using &ower Bond %ecause it is the product of Berger &aints Bangladesh .td. The other findings are the following. Berger &aint has product variations and strong %rand name in the market. (o does &ower Bond. &ower Bond has mainly three competitors> 5evicol, 5ast and DaDco. &edilite /5evicol0 is in 5ast position in adhesive industry. They have #:J local market share, 5ast has #" J and Berger /power %ond0 have !! J and other local cheaper local company have : J share at Dhaka city. &ower Bond does not have a single market share in many areas of Dhaka %ecause of its high price. There low priced adhesives are sold well. To capture the large market share, Berger make agreements with the %ig furniture companies such as +atil, Afta% etc. )t ignored the lucrative market of *to%i 5urniture .td. Many of the customers complained that they are highly dissatisfied after using &ower Bond adhesives %ecause of low 2uality. Taking feed%ack from the end customers &ower Bond is improving its products day %y day. Because of lack of promotional activities many customers do not know a%out the improved product. As a result who once switched from &ower Bond to competitors will not come %ack. Berger paint is not showing any marketing activities like %efore where fast,5evicol and other adhesive company did strongly.

Chapter >
$ecommendations 5 Conc!usions

$ecommendation

*n the %asis of my survey, the following recommendations can %e draw for the further development of the adhesive products of &ower Bond. &ower Bond should always provide emphasis on customer demand and dealer demand %ut they did not care the carpenter. )t should always satisfy the dealers demand side %y side the painter demand %ecause carpenter some time play important role in use adhesive decision making. &ower Bond should %uild up a strong communication channel with the dealer, painter and the furniture companies. Because this communication helps to take the market of this area. &ower Bond should give more concentration to the carpenters and should provide more facilities than the other adhesive companies. &ower Bond should increase their marketing activities and also increase the field level marketing that other companies did. )t should also organi1e distri%ution system through increase space for systematic way, fre2uently update its data%ase system which shows products, pack si1e and availa%ilities and increase the num%er of delivery van. &ower Bond should concentrate on complaint against their product. &ower Bond should take strong strategy against its key competitors. The competitors are providing false information a%out &ower Bond. (o they should protect it. *therwise &ower Bond may lose its %rand image. &ower Bond can reconsider its discount policy and provide more discount to the customers. &ower Bond needs to have some valua%le carpenters contractors who have the goodwill in the specific area The company should always maintain its promotional activity Always %e aware a%out the marketing strategy of competitors

&ower Bond must concentrate a%out the demand and want of customer more consciously. &ower Bond should maintain good relationship with furniture workshop and shop owner. 7ever give any chance of your competitors to do marketing 6iving newspaper, TL and 4adio advertisement more fre2uently usually for adhesive product &ower Bond should always organi1e lots of workshop with carpenters, which is really effective. )t should %e done more and more. Bill %oards are getting positive attention in reaching a product to its customer. &ower Bond should look into this matter. Different types of promotional activity should %e used more fre2uently to push the product.

Conc!usion &ower Bond presents a uni2ue mi3ture of product and service 2ualities. Thus approaches to market this must %e well thought out. &ower Bond has so many competitors who have similar products. Although their service is not as developed, Berger should %e aware of future threats. (trategies should %e improved or restructured depending on findings in secondary research, 2ualitative and 2uantitative studies. )n the 2uantitative research, some hypothesis was proved true, while others were found to not hold much statistical significance. )t was found that people are ade2uately informed %y their first e3posure. +owever it is Berger9s area of concern that they are usually not informed primarily %y Berger directly %ut more %y their friends and family. The other findings too should %e closely o%served. Another important finding is that IMuality of work done9 is their top most priority. Thus a great deal of attention should %e paid to strategies regarding service. *thers factors such as profession seemed to have not much effect on satisfaction. There is no significant difference among the ways that clients from different professions have responded. The strategies outlined in the ne3t part of this report are suggestions as to what can %e done. +owever while prioriti1ing strategiesB the findings from the 2uantitative research must %e kept in mind. Berger is the leading paint company in the country and to keep its position, it needs to get insight into the customers9 minds and act preemptively so as to reap long term %enefits. But in case of adhesive product, it is new in the market. )t can use the %rand name of Berger to promote its adhesive products to occupy a position in the minds of consumers. The level of satisfaction varied from !! percent to #" percent for adhesive products. Many of the respondents were highly satisfied with the product 2uality of &ower Bond whereas many people showed concern a%out the loss due to the usage of &ower Bond adhesives.. +owever, they did show concern with the services. They feel that a hotline should %e there to give !? hours complete support for paint solutions. Also, they were unhappy with the unavaila%ility of shade cards at the dealers9 outlets. )t is found that the dealers have tremendous effect on customers. )f the dealers are happy, then they would give all positive efforts in making the customers more satisfied. The dealers were happy with the financial assistance provided %y &ower Bond.

Appendix Research Questions Questionnaire (Carpenters)

1. Area 2. Name of Prospect 3. Address 4. Cell

5. Type of Prospect
Parte. Point Furniture Wor-shop :thers;;;;;;;;;;## Furniture Shop9 Sho+room

B# Aame o( Head Carpenter1 ;;;;;;;;;;;;;;;;;;;;;;;;;;## C# Cell1 ;;;;;;;;;;;;;;;;;;;;;;;;;;;; 6.perience1 ;;;;;;;;;;; <# Ho+ much amount o( adhesive do you use each month= ; DSHE -g ># Ho+ much do you pre(er to purchase at a time= 5 g 5 -g 1 -g " -g 5 -g 1 -g 15 -g " -g "5 -g % -g

11# ?our source o( purchase 2irect ,ndirect 2on@t -no+

Aame o( 2ealer9 :utlet

'ddress

1 # Who in(luences +hile purchasing adhesive= :+ner Head Carpenter ;;;;;;;;;;;;;;;;## Customer prescribed :thers

1"# Which brandDsE o( adhesive do you usually purchase= 2a7co Fast Fevicol Po+er Bond :thers;;;;;;;;;

1%# Price is the most important (actor in purchasing adhesive# 2o you agree= Strongly 2isagree 2isagree Aeutral 'gree Strongly 'gree

1F# Which one is best (or the +et +ood= 2a7co Fast Fevicol Po+er Bond :thers;;;;;;;;;

15# Which one is best (or 0oint (inger= 2a7co Fast Fevicol Po+er Bond :thers;;;;;;;;;

1B# Please put mar-s in the (ollo+ing (actors that you consider +hile purchasing adhesive= Strength o( 0oint the Furniture &ypes o( Wood 'vailability Wastage &hinness Price 2ry time Quality o(

:thers;;;;;;;;;

1C# Please ran- order the (ollo+ing adhesive brands= Brand i# ii# iii# iv# 2a7co Po+er Bond Fevicol Fast ame Rank !rder ;;;;;## ;;;;;## ;;;;;## ;;;;;##

1<# 'dvertising plays a vital role in selecting a speci(ic brand# Strongly 2isagree 2isagree Aeutral 'gree Strongly 'gree

1># Sales promotion can attract your attention to+ards a speci(ic brand# Strongly 2isagree 2isagree Aeutral 'gree Strongly 'gree

" # ,ncrease in price can in(luence you to change your pre(erred brand#

Strongly 2isagree

2isagree

Aeutral

'gree

Strongly 'gree

"1# Which company provides you the (le.ible credit payment system= 2a7co Fast Fevicol Po+er Bond :thers;;;;;;;;;

""# Quality is the most important (actor in choosing a speci(ic brand# Strongly 2isagree 2isagree Aeutral 'gree Strongly 'gree

"%# '(ter sales service can create brand loyalty# Strongly 2isagree 2isagree Aeutral 'gree Strongly 'gree

"F# Why do you purchase a speci(ic brand= Quality Price 'vailability :thers;;;;;;;;##

"5# Have you used Po+er Bond be(ore= )egular user 2on@t -no+ PB :ccasional user First time user Ao e.perience

?our commentDsE

"hank #ou$$$