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ICI Paints Final Project
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ICI PAINTS
MBA-2091154
18
``

The housing industry in the largest industry of Pakistan. Pakistan is one of the 20countries of the
world where Real Estate business is on the top of the list. So the housing boom will add fuel to
the demand level of paints.

These include the continued migration of rural consumers to urban areas in search of work and
an improved standard of living. This improving quality of life will increase inlevel of demand for
the product.

The number of Pakistanis returning to the country having worked abroad will also fuelgrowth, as
these consumers bring with them knowledge of the products available in thewest, as well as
general lifestyle trends to which they have accustomed.

Rising inflation can cause decrease in the purchasing power of the people.

ICI PAINTS
MBA-2091154
19
``
COMPETITOR ANALYSIS
ICI Weathershield is leading the exterior market for paints with a 60% market
share. Berger isthe only other competitor that also deals in premium quality paints.

Berger has a 20% marketshare followed by a 20% share by smaller brands which include
Berger, Blackhorse, Silversand,Master, Nippon, Gobi, Hapilac etc.
60%20%20%
ICIB
ergO
thers
H
S
T
E
K
R
A
M
4.2M
ilon
L
ters
IC I Weathershield dictates prices in the exterior market. All the competit
o r s i n c l u d i n g t h e smaller players follow the same pricing strategies. The price of
ICI Weathershield is 5% morethan that of Bergers Weathercoat.Berger has still to come-up
with a product to compete with the new Weathershield Fresh whichcomes with an added
feature to repel dust. The new ICI Weathershield is also available in a lotmore
colors than any other exterior paint in the market. Thus Berger is lagging behind in
its product development strategies.R e c e n t l y, a l l t h e o t h e r p a i n t p r o v i d e r s
b e s i d e s I C I h a v e d e v e l o p e d a n e w s t r a t e g y t o g i v e incentives to painters and
contractors by offering them discount-tokens. These tokens vary froma discount of Rs. 50
Rs. 300. As these painters and contractors have a significant influenceover the
consumer in choosing which paint to use, this token scheme has helped boost up
their sales significantly.However ICI Weathershield believes in focusing on the end-consumers
instead of giving tokenst o c o n t r a c t o r s . I t b e l i e v e s t h a t t h i s w i l l h e l p d e v e l o p
l o n g - t e r m l o ya l t y f r o m i t s c o n s u m e r s resulting in repeat sales.

ICI PAINTS
MBA-2091154

20
``
Sale Of Fake Paint
All personnel interviewed expressed their firm opinion that at least 20% of the paint sold in
thelocal market is fake paint sold under popular brand names. Since ICI
Weathershield is themost popular brand for the exterior paint, the percentage of fake paint
sold under its brand nameis even higher. Although ICI Paints has a large number of
authorized dealers and most of thesedealers are loyal to the company, however the general
public is not completely aware of how todifferentiate the genuine dealers. Also some of these
authorized dealers are not quite as loyal andICI Paints has occasionally received complaints in
this regard, which have been adequately dealtwith. In addition the ICI paint products
including the Weathershield is also being sold by other shopkeepers who are not
authorized dealers. Paint purchased through these shops has even lower credibility.ICI
Weathershield is supplied in metal containers, which are not sealed in any foolproof fashion.The
containers are also not printed and instead a printed wrapper is pasted onto the
containers.This makes it easier for the persons who are in fake paint business. Also
it is very easy for theshopkeepers to fill up ICI containers with cheaper alternate
brands and the consumer may onlysee the adverse results on long term period. There have
been instances when ICI Weathershieldwrappers have been stolen from the premises of the
wrapper printers. It is also a normal practicethat as soon as a consumer brings home ICI
Weathershield paint, the first thing the painters do isto remove printed wrappers in order to
sell them.The customers are generally dependent upon the advice and assistance of the Painters
or PaintingContractors in the selection and purchase of the paint. Even when the
purchase has been madevery carefully, the purchased paint is largely in the custody of the
Painters and they have ampleopportunity to maneuver.

ICI PAINTS
MBA-2091154
21
``
MARKET POSITIONING:
In order to better understand how to increase the market share of ICI Weathershield, we have
to position the brand with its direct competitors. That is best demonstrated with the
help of theBCG matrix.
BCG Matrix
The BCG matrix categorizes brands according to two parameters, the rate of market growth
andthe relative market share. There are four categories under which brands may fall:

Star:
High market growth & high relative market share.

Cash cow:
Low market growth & high relative market share.

Question mark:
High market growth & low relative market share.

Dog:
Low market growth & low relative market share.The market positioning of ICI Weathershield
and its direct competitors is shown in the diagram below. As it can be seen ICI Weather
shield has high market share and high relative marketshare, therefore it is categorized as
Star.
STAR
ICI PAINTS
QUESTION MARK
NIPPON PAINTS
MARK ETGROWTH
HIGHLOW
RELATIVE MARKET SHARE
HIGHLOW
CASH COW
BERGER ANDMASTER PAINTS
DOG
ROYAL PAINTS

ICI PAINTS
MBA-2091154
22
``
The purpose of the BCG matrix is to help devise a strategy in order to help resolve the problemof
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:

Differentiation Strategy:

Differentiation strategy is that the company differentiates its products or services to those
of other companies.

Cost
Leadership
Strategy
:
Under this strategy the product or service is provided at the lowest possible cost so
that ithigher margins may be earned by the company.

Focus
Strategy
:
This strategy gives importance to focus on the customer/ target market; identifying
andserving them better.ICI Weathershield is at present following
the differentiation and focus strategies. Althoughcontrolling costs is an important
matter, ICI Weathershield does not believe in comprising itsquality. 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
contractorsa l w a y s u s e t h e b r a n d d e m a n d e d b y t h e i r c o n s u m e r s . F o r t
h i s r e a s o n t h e b r a n d e m p l o y s differentiation and focus
strategies.T h e s e s t r a t e g i e s s u i t t h e p r e s e n t s i t u a t i o n o f I C I W e a t h e r s h i e l d a n
d t h e r e f o r e s h o u l d b e continued.

ICI PAINTS
MBA-2091154
23
``
SWOT ANALYSIS
Another method of analyzing a brands competitiveness is through the assessment
of internalstrengths (S) and weaknesses (W), as well as environmental opportunities (O) and
threats (T).As Berger paint is holding the second highest market position after ICI
Weathershield, SWOTanalysis of both ICI Paints and Berger Paints has been conducted
below.

Activity (176)

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