Berger Paints Bangladesh

Limited

INTERNSHIP
REPORT

ON
A research to explore customer satisfaction level of
customer in context of Berger Paints Color Bank,
Bangladesh.

Submitted by,
AHTAER RAHMAN (ID #0820506)

Submitted to,
RAJIB RAHMAN

LECTURER
School of Business
Independent University, Bangladesh

1|Page

th

Dated:6 September 2012

Internship Adviser
School of Business,
Independent University, Bangladesh.
.
Subject: Submission of internship report
Dear Mr. Rajib Rahman
I, being advised to prepare the internship report on the level of customer
satisfaction of Berger Color Bank customers for the successful completion of my
Internship. As was advised, I have successfully completed my report on
Customers satisfaction level analysis of Berger Color Bank users It gives me
immense pleasure to tell you that working on this internship report has given me a
wide range of exposure. To prepare this report, I have faced extensive one to one
interviews with professionals, customers and dealer. It has taught me the value of
patience, and has given me a higher insight on the level of communication in the
practical world. This report basically gives an overview of the level of customer
satisfaction of the Color Bank users and how different influencing parties can
hamper the level of customer satisfaction. I also had to make recommendation as to
how the existing level of satisfaction could be improved. As this was an actual
company project, research was done on an extensive basis.
It will be a great honor for me if you require me to explain any sort of queries.

Yours Sincerely,
AHTAER RAHMAN
ID#0820506

ACKNOWLEDGEMENTS

Preparing this report was both exciting and hard work at the same time;
it is for the first time that I had a real life experience working on an
actual company project. I would like to express my gratitude to Mr.
RAJIB RAHMAN, internship supervisor, School of Business,
Independent University, Bangladesh for providing me with the proper
guidance and support.
I would also like to thank MS, REINA ASFIN KHAN Assistant
Marketing Manager, Berger Paints Bangladesh Ltd., for giving me time
in his busy schedule, for providing me information that was needed to
complete the report, and to properly guide me throughout my internship
period.

EXECUTIVE SUMMARY

Satisfying customers are the only way to stay competitive in today's market place.
The balancing act between what customers want and what the company can
provide must be optimized in order to maximize companys long-term profits.
Berger Paints has done numerous researches to understand the level of customer
satisfaction. They are already in a good position in the consumers mind but
understanding the customers satisfaction level, will help the company to exceed
the present level of customer satisfaction. However, no such research has been
done to understand the level of customer satisfaction level of Color Bank user.
This study investigates the level of customer satisfaction of Color Bank users. On
assessing the level of customer satisfaction, what marketing tools, like promotional
efforts and other marketing efforts, are necessary to improve the customer
satisfaction level will be given as recommendation by the researcher. This study is
based on primary data, as no such previous research has been done to understand
the level of customer satisfaction of Color Bank users. The nature of this study was
a qualitative explorative research, and information was gathered through extensive
one-to-one interviews with respondents. The researcher covered the geographical
base of Dhaka city, and samples were selected on a non-probabilistic quota

sampling method. Upon completion of the research analysis, the researchers

understood the level of customer satisfaction of the customers. The level of
satisfaction varied from 60% to100%. All respondents were highly satisfied with
the product quality of Berger Color Bank. However, they did show concern with
the services. They feel that a hotline should be there to give 24 hours complete
support for paint solutions. Also, they were unhappy with the unavailability of
shade cards at the dealers outlets. The researcher also found that the dealers have
tremendous effect on customers. If the dealers are happy, then they would give all
positive efforts in making the customers more satisfied. The dealers were unhappy
with the financial assistance provided by Berger Color Bank. Professionals like
architects and developers also play a major role in influencing customers. The
research analysis suggests that the architects and developers would be happier if
Berger could maintain proper liaison with them. At the moment, the liaison
between Berger and the professionals are good, but their main requirement is to
have access to soft copies of the shade card. Painters are happy with the product
quality and coverage of Color Bank. However, they did show concern with the
quality of Luxury Silk. They require no assistance from Berger, they are extremely
satisfied.

Chapter 1
Introduction

BACKGROUND OF THE COMPANY

Berger Paints Bangladesh Ltd: An Overview

THE COMPANY

Berger is one of the oldest names in the paint industry and the countrys major specialty paints
businesses with products and ingredients dating back more than 200 years to 1760. Louis
Berger, a German national, founded dye and pigment making business in England. Louis
Berger & Sons Limited grew rapidly with a strong reputation for innovation and
entrepreneurship culminating in perfecting the process of making Prussian blue, a deep blue
dye, a color widely used for the uniforms of many European Armies. Production of dyes and
pigments evolved into production of paints and coatings, which till today, remains the core
business of Berger. The Company grew rapidly by establishing branches all over the world and
through mergers and acquisitions with other leading paint & coating companies. With the
passage of time Berger has unfolded its kaleidoscopic wings into all kinds of paint solution be it

Architectural paints or Industrial coatings, Marine paints or Powder coatings. Berger has it all!

Berger has been involved in the paint business in this part of world since 1950, when paints
were first imported from Berger UK and subsequently from Berger Pakistan. In 1970, Berger
Paints Bangladesh Limited (BPBL), erstwhile Jenson & Nicholson, had set up its paint factory in
Chittagong at an estimated investment of Tk. 4 million. The shareholders were Jenson &
Nicholson (J & N), Duncan Macneil & Co. Limited and Dada Group. Duncan Macneil
subsequently sold their shares to the majority shareholder J & N Group. The Dada Groups
share ultimately vested with the Government of the Peoples Republic of Bangladesh after the
independence of the country in 1971. The name of the company was changed from J & N
(Bangladesh) Limited to Berger Paints Bangladesh Limited on January 1, 1980. In August 2000, J
& N investment (Asia) Limited purchased Government shareholding. In December 2005, the
company issued 5% shares to the public and listed with Dhaka Stock Exchange (DSE) and
Chittagong Stock Exchange (CSE).

With the entry of Berger Paints into the Bangladesh market, the country has been able to benefit
from more than 245 years of global paint industry experience. Over the decades, Berger has
evolved to become the leading paint solutions provider in the country and has diversified into
every sphere of the industry from Decorative Paints to Industrial, Marine and Powder
Coatings.

Berger has invested more in technology and Research & Development (R & D) than any other
manufacturer in this market. It sources raw materials from some of the best known names in
this world: MITSUI, MOBIL, DUPONT, HOECHST and BASF, to name a few. The superior
quality of Bergers products has been possible because of its advanced plants and strict quality
controls equal to best international standards. Investment in technology and plant capacity is
even more evident from the establishment of Powder Coating plant at Dhaka factory. The state
oftheart of Dhaka factory is an addition to Bergers capacity making it the paint giant in
Bangladesh.

With its strong distribution network, Berger has reached almost every corner of Bangladesh.
The nationwide dealer network, supported by seven (7) sales depots strategically located at
Dhaka, Chittagong, Rajshahi, Khulna, Bogra, Sylhet and Comilla has enabled them to
strategically cater to all parts of the country.

The product range includes specialized outdoor paints to protect against adverse weather
conditions, Color Bank, superior Marine Paints, Textured Coatings,

Heat Resistant Paints,

Roofing Compounds and Epoxies, in each of these product categories, Berger has been the
pioneer. Berger also provides customer support connecting consumers to technology through
specialized Home Dcor service giving free technical advice on surface preparation, color
consultancy, special color schemes etc. To bolster customer satisfaction, Berger has recently
launched Illusion the first designer paint solution.

In Bangladesh the major milestones of Berger Paints are given below:

1950 Started operation in Bangladesh by importing Paint from Berger U.K.
1970 Establishment of Chittagong Factory
1980 Named as Berger Paints (BD) Ltd. from Jenson & Nicholson (J&N)
1991 BMRE in Chittagong Factory
1995 Establishment of Double Tight Can Manufacturing Plant at Chittagong
1999 Establishment of Most Modern SateoftheArt Paint Production Plant in Dhaka
2002 Construction of own building for the Corporate Office in Dhaka
2004 Establishment of Powder Coating Plant at Dhaka
2005 Listed in Dhaka & Chittagong Stock Exchanges and issued 5% shares to the public
Corporate Office: Berger House, H # 8, R # 2, Sector 3, Uttara Model Town, Dhaka 1230
Two StateoftheArt Factories

: Savar, Dhaka and Kalurghat, Chittagong.

Legal Status

: Public Limited Company

Type of Shareholders

: 2 types (Foreign & Bangladeshi)

No. of Employees

: 341 (Mgt.183, Workers/Staff158) as of May 2007

Management Structure

The Company is operating through welldefined management structure headed by the

Managing Director. Under the Managing Director there are various Departmental heads, senior
and midlevel Managers, Officers and staffs. Managing Director and the policy makers meet
with regular interval to review various business, operational and administrative issues.
(Company Organogram: See Appendix).

The Board of Directors

The list of Board of Directors of the company is given below:
Chairman

: Mr. Gerald K. Adams

Managing Director

: Ms. Rupali Chowdhury

Directors

: Mr. K. R. Das, Mr. Anil Bhalla, Mr. Subir Bose, Mr. JeanClaude
Loutreuil, Mr. Masih Ul Karim, Mr. Abdul Khalek,

Company Secretary : Mr. Abdul Khalek, FCA

Vision
We shall remain as the benchmark in the Paint industry by:
Being an innovative and technology driven Company consistently delivering worldclass
products ensuring best consumer satisfaction through continuous value added services
provided by highly professional and committed team.

Mission
We shall increase our turnover by 100% in the next five years. We shall remain socially
committed ethical Company.

Spirit
We undertake our quest with the enthusiasm of entrepreneurs, excited by the constant search
for innovation. We value performance achieved with integrity. We will attain success as a world
class leader with each and every one of our people contributing with passion and an unmatched
sense of urgency.

Corporate Objective:

Our mission is to add value to life, to outperform the peers in terms of longevity, customer

service, revenue growth, earnings and cash generation.

We will be the employer of choice for all existing and future employees.

Strategy
Our strategy is to build longterm partnerships with the customers/consumers. With their
support, we aim to maximize the potential of our business through a combination of enhanced
quality of product, service, creative marketing, competitive pricing and cost efficiency.

Objectives of the Company

Objectives of Berger Paints Bangladesh Ltd. is as follows:
To continue as the market leader by working in Harmony with Customers, Employers and
Employees. Consistent sales growth, increasing productivity and developing new products
befitting consumer needs to achieve total consumer satisfaction by ensuring higher quality with
reasonable price. To bolster customer satisfaction from which one can get an array of services
pertaining to painting. To project itself as an ethical and socially responsible company.

Production Items of Berger Paints

The Product and Service range of Berger Paints Bangladesh Ltd. are as follows:
Regular Coatings
Industrial Paints
Marine Paints
Outdoor Paints Protective
Color Bank
Textured Co tings

Heat Resistant Paints

Roofing Compounds and Epoxies

Powder Coatings
Home Dcor

PERFORMANCE ANALYSIS OF BERGER PAINTS BANGLADESH LTD.

National Paint Market
Bangladesh paint market had been experienced a good growth of 810% per annum consistently
in the late 90s mainly because of a boom in real estate development which now seems to have
reached a saturation point.
A market growth trend analysis for Bangladesh during 2001 2006 is furnished below:

Year

2005

2006

2007

2008

2009

2010

Volume
in 000
G rowth
%

28,17
0
4%

30,433

32,259

33,871

36,242

38,598

6%

5%

6%

7%

6.5%

Table 1: Market growth trend analysis

A good number of local paint manufacturing companies (40 organized and at least 50 more in

the informal sector) have been operating in this small market.

The paint industry can be broadly categorized into four segments: Decorative,

Industrial,

Marine and Automotive paints. The category wise existing market condition is given in the
following table:
Categorical
Market size
2011
(Primary
Category

Value

Contribution%

Volume (litre/kg)

Decorative

2,542,098,419

87%

21,297,912

Industrial

183,723,220

6%

916,299

Marine
Powd
er
Trading Items

142,284,968

5%

1,131,282

26,419,412

1%

83,660

25,873,203

1%

72,950

National Total

2,920,399,222

100

Table 2: Category wise paint market size

Contribution of Diferent Segments

1%
5%

1%

6%

87%

DecorativeIndustrialMarinePowder CoatingTrading Items

Figure 1: Segments of Paint

Market
Share (
16.60%

Volume wise)

5.10
%
4.30
%
5.40
%
5.30%
5.30%

BP
BL

53.20%

4.80%

Sa
Pailac
Ro
Moon
Asian
ga
xy
Star
Figure 3: Market share of different companies

INDUSTR
IA L

187,276

178,181

5%

193,572

9%

MARINE

171,535

178,621

4%

194,830

9%

Liquid
Total
(Gallon)

2,717,65
4

3,092,15
5

14%

3,807,84
5

23%

209,058

8%

218,210

12%

5,043,51
6

32%

Table 5: Sales Trend Analysis

Ratio Analysis: The strategic indicators of Berger Paints in 2006 are as follows:
Sales Growth 35%
Gross operating profit 444 Million
Net Profit after tax 314 Million
EPS 13.54
ROE 64.02 %

Current Ratio 1.91:1

COMPETITOR ANALYSIS OF COLOR BANK

The only competitor facing Berger Color Bank is Asian Paints Color World. At the moment, the
advantage Berger is experiencing is the generic nature of Color Bank, similar to what Honda has
been able to, as in being successful in making Honda a generic name for all motor cycles.
Through survey, the most common finding was that when people generally visit Asian paints
store, they refer to the Color World option as Color Bank. Store owners in the Color World
outlets are in constant challenge in attempting to fix such a generic word of the market.
This competitive analysis identifies:
The primary competitor (Asian Color World)
Their objectives and reaction patterns
The market leader strategies to be followed.

Threat of new entrants Low (except for Asian Color World, no other co

Threat of supplier power

Low
Has their own R&D

Rivalry Aggressive Not numerous

Color Bank 17 outlets

Color World 6 outlets

Threat of buyer power

Low

Threat of substitutes
Low
Color World is new

Michael Porters competitive forces analysis for Berger Color Bank

The above table describes the Porters five forces competitive model. Each of the five factors is
explained below in details.
Threat of new entrants The threat of new entrants is relatively low, as Asian
Color World is the only competitor for Berger Color Bank.
Threat of rivalry Asian Color World is an aggressive competitor. It already has six outlets all
over the city, and has already captured the Uttara market with 2 outlets, whereas Berger Color
Bank has only one outlet in Uttara. However, they do not have as many outlets as Berger Color
Bank. Berger Color Bank has 17 outlets in Dhaka, and numerous outlets outside the city. Thus
the threat of rivalry is low.
Threat of substitutes- It is low as Asian Color World is the only substitute and they are new in
the market. However, during surveying the architects, there has been word in the market that
Elite Paints have similar color variety, and is providing numerous shades. They have not started
dealing in retails outlets yet.
Threat of supplier power- It is low as Berger Color Bank has their own Research and
Development unit, and raw materials are flown in from abroad.
Threat of buyer power- It is low as switching cost is moderate in terms of company reputation,
quality, and 3000 more shade availability.
Objectives of the competitor
Asian Color World is a division of a larger company, Asian Paints. Although one useful
assumption is that competitors strive to maximize profit, the parent company is running it for
growth.
Reaction patterns

Different companies react differently to competitive assaults. Some are slow to respond, others
respond only to certain types of attacks. According to Henderson, much depends on the
industrys competitive equilibrium. He says that:
If competitors are nearly identical and their living in the same way, then their competition
equilibrium is unstable. If Asian Color World addresses a price cut, then equilibrium will be
upset.
If a single major factor is the critical factor, then the competitive equilibrium is unstable.
Berger Color Bank is a relatively old concern and has been in the market for the last eight years
dated 1998. The nature of existence of Berger in the paint industry for over a decade has
achieved a cost breakthrough through economies of scale, and experience. In such a scenario,
Berger Color World can cut price and win market share experience at the expense of Asian Color
World.
This would create competitive equilibrium instability and prove an advantage for
Berger.

LITERATURE REVIEW
Customer Satisfaction:
Everyone knows what satisfaction is, until asked to give a definition. Then, it seems, nobody
knows. This quote from Richard L. Oliver (1977), respected expert and long time writer and
researcher on the topic of customer satisfaction, expresses the challenge of defining this most
basic of customer concept. Building from previous definitions, Oliver offers his own formal
definition: Satisfaction is the consumers fulfillment response. It is a judgment that a product or
service feature, or the product or service itself, provides a pleasurable level of consumptionrelated fulfillment.
The word satisfaction first appeared in English during the thirteenth century. The word
satisfaction itself is derived from the Latin satis (meaning enough) and the Latin ending - faction
(from the Latin facere - to do/make). Early usage centered on satisfaction being some sort of
release from wrong doing. Later citing of the word emphasis satisfaction as a "release from
uncertainty" (The Oxford Library of Words and Phrases, 1993). Modern usage of the word has
tended to be much broader, and satisfaction is clearly related to other words such as satisfactory
(adequate), satisfy (make pleased or contented) and satiation (enough). The difficulty faced when
trying to define any word is that the meaning often depends on the context in which the word is
used. In a marketing context, satisfaction is used to have a more "specific" meaning. It appears
that there are two basic approaches adopted in attempting to define the concept of customer
satisfaction. Satisfaction can be viewed as an outcome of a consumption activity or experience;
however, it is also represented as a process. Currently, the most widely adopted description of
customer satisfaction is that of a process; an evaluation between what was received and what was
expected (Oliver, 1977, 1981; Olson and Dover, 1979; Tse and Wilton, 1988). By looking at
satisfaction as a process, these definitions concentrate on the antecedents to satisfaction rather
than satisfaction itself. Consequently, much research effort has been directed at understanding
the cognitive processes involved in satisfaction evaluations. This strand of theory appears to have

origins in discrepancy theory (Porter, 1961) and a number of authors have, over the years, used
some form of comparison to model satisfaction. Early contributions include Contrast Theory
(Cardozo, 1965; Howard and Sheth, 1969), which supposed that consumers would exaggerate
any contrasts between expectations and product evaluations. This was developed into
assimilation-contrast theory (Anderson, 1973). Many studies support the occurrence of
assimilation (Olshavsky and Miller, 1972; Olson and Dover, 1979).
Assuming that the customer is capable of evaluating the service performance, the result is
compared to expectation prior to purchase or consumption (Oliver, 1980). In the past,
corporation did not pay much attention to customer satisfaction but were focused more on
attracting new customers to expand their market share. Now, due to lower sales resulting from
product maturity, corporations are turning around to stabilizing their existing customers to ensure
their market share (Dhabolkar & Thorpe, 1994). Thus the concept of customer satisfaction is
under further scrutiny. For the current study, the definition put forward by Oliver will be the
construct, as it is the most appropriate for theselected study.

Product and service quality:

Service quality was defined differently through the view of many researchers. For
example:Bitner, Booms and Mohr (1994)9 defined service quality as the consumers overall
impression of the relative inferiority / superiority of the organization and its services. Therefore,
service quality is key of survival to all servicing companies. Cronin and Taylor (1994)10 viewed
service quality as a form of attitude representing a long-run overall evaluation. Maintaining
service quality at certain level and improving service quality must be life-time efforts to those
companies who desire life-time prosperity in customers heart Parasuraman, Zeithaml and Berry
(1985)11 defined service quality as a function of the differences between expectation and
performance along the quality dimensions.Likewise, Roest and Pieters (1997)12 the same
definition that service quality is a relativistic and cognitive discrepancy between experiencebased norms and performance concerning service benefits.

When it comes to customer satisfaction, it all comes down to perception: How the customer sees
and experiences the product and service provided by your business. Its not what you believe or
think, not what your studies or focus groups tell you, but what youre actual customers feel,
experience, and say. So your bottom-line, financial results are tied to customer satisfaction and
quality. In turn, quality is measured along two dimensions, the physical and the performance.
The product works and the service doesnt. The service works and the product doesnt. (If
neither works, then you really have issues!) The customer has expectations and requirements;
meeting and exceeding them is the objective, and defining them and understanding them is the
challenge. The composition of customer requirements is neither static nor uniform. What works
for one group will not work for another. What meets the needs during one period and with one
product line or competitive market wont work in another. So it is critical for every business to
be able to segregate or stratify its customer base to identify various groups and their specific
needs.( By Lea Strickland, CMA CFM CBM President - F.O.C.U.S. Resources)

Customer Cost
The total money, time, and resources associated with a purchase or activity. Costing is important
because it provides a quantified basis for defining poverty reduction strategies and programs, as
well as for forecasting resource gaps and needs, and for mobilizing additional resources, either
internally or externally.
While it is usually not possible to obtain reliable cost estimates for the long-term, costing is
essential for coordinating the national budget and aid allocations with the prioritized
development goals. The price tag and the financing plan of the programs or projects can only be
ascertained meaningfully within a short-to-medium time horizon.
In a situation where promises are not kept, the customer shall receive a payout which will
encourage the customer to communicate all service failures, which has a double effect:

Service recovery: The customer who claims his payout is less likely to defect or spread a
negative word of mouth. Hence, service recovery becomes a possibility.

Service quality improvement: Each claim represents valuable information about quality
errors and their possible causes, but the avoidance of future payouts functions as an
incentive to all staff to participate in improvement projects.

In order to achieve service recovery, the payout has to be meaningful to customers. It

should not only make up for all the damage and inconvenience suffered but also make the
customer whole. For example, the payout offered by the Dutch bus service
organization, Interliner, makes their customer whole by guaranteeing that their
passengers will reach their connecting flights and buses. A refund would not adequately
compensate the passenger who missed a connection. Therefore, any passenger who
would have to wait for more than fifteen minutes for a connection due to delay by
Interlinear would be taken to his destination by taxi at Interlopers expense
(www.interliner.nl). A payout can also be too high. For example, in India at least,
Dominos Pizza offers customers its pizza free of charge if they were not delivered within
thirty minutes from ordering.

Finishing of the painting job

Through introduction of a service guarantee, an organization makes a credible promise to its
customers. For example, PTT Telecom promise to connect new telephones within three working
days and to fix telephone lines within a day and a half. This promise is a credible one in a
European context, where shorter lead times are highly desirous by customers (Looy, Gemmel &
Dierdonck, 2003). In defining a promise, a company should be careful not to promise what

would be expected anyway. This may negatively signal that service failures are likely to be
expected. Some promises are limited in scope i.e. guarantee only less important service aspects
or are highly conditional, excluding all major causes of service failure. For example, Lufthansa
guarantees that its customers will make their connecting flights if there are no delays due to
weather or air-traffic control problems. Ironically, these two problems cause in total 95 percent
of all flight delays. Furthermore, the guarantee is applicable only if all flights including
connecting flights are with Lufthansa (Lufthansa airlines, 1987). The presence of a service
guarantee can support the perception of service reliability, which is one of the most critical
determinants of customer satisfaction. However, sometimes a guarantee may give out a negative
message, indicating that service failures may occur due to customers wondering why it is
necessary to provide a guarantee. For example, Lufthansa promises its customers that their
luggage will arrive with them. However, this created the perception that lost luggage is more a
problem with Lufthansa than its competitors (Lufthansa airlines, 1987). The effectiveness of
communicating a service guarantee also depends on the source of the message, especially if the
form has a history of service problems, making it difficult for a service firm with bad service
reputation to send out credible message.

In this research paper I have done research on customers satisfaction on the context of color
bank of BERGER PAINTS LIMITED BANGLADESH. I have tried to put relationship on
consumers views as an instrument to develop satisfaction on BERGER COLOR BANK. In the
research paper honorable researcher built this research on the basis of research framework.

Product and service quality (IV)

Customer Cost (IV)

Finishing of the painting job (IV)

Customer satisfaction level of in context of Berger Paints Color Bank, Bang

Research framework

RESEARCH QUESTIONS

1: Does Berger color bank product quality generate higher satisfaction of

Customers or not?
2: Does the Use of CB, compared to other brands is cost effective or not?
3: Does after the painting job is fully done, will it meet customer expectation or
not?

HYPOTHESIS
H1: There is a significant relationship between product quality and customer
satisfaction in context of BERGER COLOR BANK in Bangladesh.
.
H2: There is a significant relationship between customer cost and
customer satisfaction in context of BERGER COLOR BANK
in
Bangladesh.
H3: There is a significant relationship between finishing of the painting
job and customer satisfaction in context of BERGER COLOR BANK in
Bangladesh.

PROBLEM DEFINITION
Management Problem:
Satisfying customers are the only way to stay competitive in today's marketplace.
The balancing act between what customers want and what company can provide must be
optimized in order to maximize companys long-term profits. Berger Paints Bangladesh Ltd
already is in a good position in the consumer mind but by understanding the customer
satisfaction level, it will help the company to exceed the present level of customer satisfaction.
The management currently has a lack of knowledge of the customer satisfaction level of Color
Bank users, and how to improve the level of customer satisfaction.

Research problem:
This research would investigate the level of customer satisfaction level of Color Bank users
customers. On assessing the level of customer satisfaction, what marketing tools, like
promotional efforts and other marketing efforts, are necessary to improve the customer
satisfaction level.

RESEARCH OBJECTIVES
Broad objective:
To assess and find out whether the customers are satisfied (to what extent) with the product or
services of Color Bank.
Specific objective:
Whether the customer are loyal to buy Berger Color Bank product.
Whether Color Bank can build the relationship with the target customer and the dealer through
their products.

 Whether Color Bank can build the relationship with the target customer and the specifies
through their products.
Whether Color Bank can build the relationship with the target customer and the painters
through their products.
Find out the source of information.
Find out the customer satisfaction level in consideration to the product quality.
Find out the customer satisfaction level in consideration to the service of Berger
Color Bank.
Whether Berger can create awareness in the consumer mind.

SCOPE OF THE REPORT

Geographic Scope:
The researcher will be focusing on the customer satisfaction level for Berger Color
Bank products (to what extent they are satisfied) concentrating Dhaka city. To make this survey
more extensive, the researcher divides Dhaka city into some group (based on locality).

Population
Consumer

Area of a Dhaka City

Banani , Gulshan,Baridhara,Uttara,Fakirapul,
Kodomtoli,Purana paltan,Dhanmondi,
Mohammadpur,Shantinagar,Shamoli,Kakrail,Niketo
n,

LIMITATIONS
This present study is limited by a number of factors.
The sample population is limited in terms of its range and composition.
Non response error this type of error occurs when the researcher cannot locate
the pre-designated sample element to be studied. Two sample element were out of
reach and inaccessible. Their address could not be found in the customer database,
and also they did not receive phone calls. Sample substitution could not be possible
as the sampling frame was limited.
The research was limited by time and cost.

Chapter 2
Methodology

RESEARCH DESIGN

Type of research
The task of business research is to generate accurate information for use in decision making.
Business research is defined as the systematic and objective process of gathering, recording, and
analyzing data for aid in making business decisions. There are two types of research. Basic
research is intended to expand the boundaries of knowledge itself or verify the acceptability of a
given theory.
Applied research is conducted when a decision must be made about a specific real life problem.
Applied research encompasses those studies undertaken to answer questions about specific
problems or to make decisions about a particular course of action or policy.
This research type is basic research as we are trying to expand our boundaries of knowledge of
the level of customer satisfaction of Color Bank users.
Nature of research
When a researcher has a limited amount of experience with or knowledge about a research issue,
exploratory research is a useful preliminary step that helps ensure that a more rigorous, more
conclusive future study will not begin with an inadequate understanding of the nature of the
management problem. The purpose of an exploratory research is intertwined with the need for a
clear and precise statement of the recognized problem. Exploratory research has two interrelated
purposes, to diagnose a situation and discover new ideas. Much, but certainly not all, exploratory
research provides qualitative data.
This research is a qualitative exploratory research, as it is an initial research conducted to clarify
and define the nature of a problem. It is qualitative as the results of this research focuses on
words and observations, instead of numbers and mathematical analysis.

RESEARCH STRUCTURE

Type of data
This research will be focusing on any secondary data, such as magazine, article or journal on
Berger paints Bangladesh ltd. preview research has been conducted in context of Berger Paint
Color Bank. This research will work with only primary data.
Data collection procedure
There are three types of method, survey, observation and experiment. Data is collected through
survey method. For the survey method, the researcher will use unstructured personal interview.
A questionnaire 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 questions
in a face-to-face situation. There are several advantages of personal interviews.

Probing complex answers.

The opportunity for feedback.
High participation.
Item non-response the technical term for an unanswered question on an otherwise complete
questionnaire.

SAMPLING PLAN
The sampling technique is a cross-sectional study as the data is collected at a single point in
time.
Target population
The user of Color Bank in the geographical base of Dhaka city

Sampling Frame
List of household (Customers who have used Color Bank) of Dhaka city. This will be provided
from Berger Paint Home Dcor.
Sample unit
Sampling unit consist of the respondents. For that reason we divided the total population in to
some group.
The knowledgeable respondents.
Higher Upper class.
Upper Class.
Upper Middle Class

Sampling technique
The sampling will be non-probability quota sampling. In quota sampling, the researcher tries to
classify population by pertinent properties, determining desired proportion of sample from each
class.
Sample size
We are considering the knowledgeable respondents basically who make the purchase decision
for (Berger Color Bank) within Dhaka city. For that reason we have divided the total population
in to some group.
The knowledgeable respondents.
Higher Upper class.
Upper Class.
Upper Middle Class.

Customers
The list of customers was given to the researcher by Berger Paints. Out of the 43 customers list
of Color Bank users, 60% of the sampling frame is 26. However, 26 of the respondents in the list
were previously interviewed. The remaining 17 respondents is considered the sample size for
customers. Out of judgment, the researcher has included 4 more customers of Color Bank in
increase the sample size. The detail of the area wise distribution is given below.

Sl. No

Area

Number

1.Uttra1
2.

Gulshan,

Banani,

Niketon

Baridhara, Mohakhali DOHS

3.

4.
5.

PuraPaltan,SHantinagar,7
Kakrail,Fakirapul,Siddeshwari
Shymoli

Dhanmondi,Mohammadpur,5
Lalmatia

Total

Sample Size for the Customers: 23

23

Data analysis
Data were analyzed by using software SPSS-17 version as it offers greater flexibility in data
analysis and visualization.
The following statistical techniques were applied to analyze the data:
Cranachs alpha
Descriptive statistics (Mean and standard deviation)
Correlation
Stepwise linear regression

Chapter 3
Results

Reliability coefficient and descriptive statistics

The reliability coefficients, means and standard deviations of all the constructs in the current
study are displayed in table. The coefficient alphas for the different constructs were computed by
using the cronbachs alpha procedure in SPSS- version 17.0. Mean and standard deviations for
all the variables were also computed by using descriptive procedure in SPSS.

Scales
Product
service

an
d

quality
Customer cost
Finishing
of painting
job
Custome

t
h
e

Number of items

alpha

SD

04

.649

4.10

.57

04

.645

3.31

.46

04

.696

3.83

.35

05

.765

4.08

.47

r
satisfacti

Note: n 20

Nunnally (1978) suggested that for early stages of any research the reliability of 0.05-0.06 is
sufficient. The reliabilities of all the constructs in this study found to be the standard set by

Nunnally (1978).

The survey was done with a formatted questionnaire having a 5-point liker scale. In this study
alpha value for all the variables are present. Alpha value indicates the reliability of a given set of
questions. Reliability denotes the consistency level of a question. The standard value of alpha is
1.5 means value over 0.5 is acceptable.

In this study the alpha value is well over the standard value, which is a good thing for
research. By seeing this value there is no doubt that the selection of questions is proper.

Descriptive statistics explanation

The means have been calculated by taking the average of all the answers of the questions in each
variable. On a 5-point liker scale, the calculated mean for PRODUCT QUALTIY AND
SERVICE is 4.10 with a standard deviation of 0.57. It signifies that the product quality and
service of Berger paints has high influence on the perception of customer satisfaction as the
value is above 3.
The mean for customer costs 3.31 and has a standard deviation is 0.46. So it can be said that
durability and coverage in different aspect is high. Customer belief they get better durability and
coverage.
The mean value for finishing of the painting job is 3.88 with standard deviation of 0.35. This
shows that the customer cost of color bank has highly affect on customer satisfaction.

Correlation
Findings related to product and service

Correlation table for Customers satisfaction level on product and services& Satisfaction on
Color Bank products quality
training
training

Pearson correlation

sig- (2-table)
N
Customer
satisfaction

Customer satisfaction
.672*
.017

20

Pearson correlation

.
67

sig- (2-table)

0.1
7

20

20
1

20

*Correlation is significant at the 0.05 level (2-tailed)

The Pearsons r for the correlation between the product quality and service and customer
satisfaction is (r=.672, p<0.05) that represent Pearsons is little bit distance to 1 which means
that there is a moderate relationship between two variables also suggest that changes in one
variable are moderately correlated with changes in second variable. The sig.(2-table) value in the
analysis is 0.017 which is less than 0.05. Because of this, we can conclude that there is a
statically significant correlation between the product quality and customer satisfaction also
means increase or decrees in one variable do significantly related to increases or decreases in
second variable.

Correlation table between customer cost and customer satisfaction

Correlation
Customer cost

Pearson correlation

Customer cost

Customer satisfaction

.505

Sig. (2-tailed)
N
Customer satisfaction

.094
20

20

Pearson correlation

.505

Sig. (2-tailed)

.094

20

20

The Pearsons r for the correlation between the customer cost and customer satisfaction is r=.505
which had not a statistically significant relationship with the customer satisfaction of Berger
color bank. The sig.(2-table) value in the analysis is 0.094 which is gather than 0.05. Because of
this, we can conclude that there is no statically significant correlation between the customer cost
and customer satisfaction. It also means increase or decrees in one variable do not significantly
related to increases or decreases in second variable.
Correlation table between finishing of the painting job and customer satisfaction
Correlation
Painting finishing
job

Pearson correlation

Finishing painting
job

Sig. (2-tailed)
N

Customer
satisfaction

Pearson correlation
Sig. (tailed)
N

*correlation is significant at the 0.05 level (2-tailed)

Customer
satisfaction

.724**
.008

20

20

.724**

.008
20

20

The Pearsons r for the correlation between finishing of the painting jo and customer satisfaction
is (r=.724, p<0.05) that represent Pearsons is close to 1 which means that there is a strong and
high relationship between two variables also suggest that changes in one variable are strongly
correlated with changes in second variable. The sig.(2-table) value in the analysis is 0.008 which
is less than 0.05. Because of this, we can conclude that there is a statically significant correlation
between the product quality and customer satisfaction also means increase or decrees in one
variable do significantly related to increases or decreases in second variable.
This indicates that product quality and finishing of the painting job are significantly and
positively correlated with the aspect of customer satisfaction in the context of Berger color
bank in Bangladesh.

Regression Analysis
Stepwise Linear regression on product quality and service
Variable Enter/Remove
Model

Variables Entered

Prod
uct

an
d

Variables removed
servi
ce

Method
Stepwise( cri
teria:

quali

probability-

ty

of- F-to

enter<=
.050.
probability-

a. Dependent Variable: customer satisfaction

Model summary

of- f-to-

Model

R square

.672a

.452

Adjusted

Std. error

of the

Square
.397

estimate
.37149

a. Predictors: (constant), product and service quality

Mo
del
1

Sum

df

Mean square

Sig.

Regression

of
1.137

1.137

8.236

.017a

Residual

1.380

10

.138

Total

2.517

11

a. Predictors: (constant), product and service quality

b. Dependent variable: customer satisfaction

Coefficients a
Mo
del

Unstandardized coefficients

Sig.

s Beta

2.24

.048

.672

2.870

.017

Standardiz
ed

B
1

(constant)

1.803

Product and
service
quality

.556

std.
error

a. Dependent variable: customer satisfaction

coefficient
.
80
.
19
4

Model

Beta in

customer cost

.137a

Finishing of the painting

job

.496a

.
438
1.73
3

Sig
.

.
672
.
117

Partia

Co

linearity

correlati

Statistics

on

Toleranc

.144

e
.607

.500

.557

a. Predictors in the model: (constant), product and service quality

b. Dependent variable: customer satisfaction

Linear regression will work as a useful tool in testing hypothesis. In this part of the analysis we
will see that which independent variables individually provide a meaningful contribution towards
the explanations of the dependent variable. Linear regression analysis helps to determine the
most significant related variable that explains the dependent variable.

Assessment o f research hypotheses

Research Hypothesis 1
From correlation, it has been found that product and service quality (r=.672, p<0.05) had a
significant relationship with customer satisfaction and they are positively correlated in context of
Berger paints Bangladesh ltd. so the result of correlation analysis provided support for
hypothesis 1.
The regression analysis that we have done also supports this hypothesis. R square refers 45.2%
variance in customer satisfaction aspect is explained by product and service quality. F=8.236 at
p=0.017 describes the models goodness of fit. Significant positive relationship between

predictor and predicted variable is evident by the value of t=2.870 hence, on the basis of these
results it can be inferred with confidence that H1 is accepted.

Research Hypothesis 2
From correlation, it has been found that customer cost (r=.505) had not a statistically significant
relationship with perceived customer satisfaction because of the sig. (2-tailed) value in the
analysis is 0.094 which is greater than .05 and for this we can conclude that there is no
statistically significant correlation between two variables.
From regression analysis, customer cost failed to enter into the regression equation which
indicates that this is not significantly associated with perceived organizational performance.
Hence, based on the result it can be inferred with confidence that H2 is rejected.

Research Hypothesis 3
From correlation, it has been found that finishing of the painting job (r=.724, p<0.001) had a
highly statistically significant relationship with perceived customer satisfaction and they are
positively correlated in context of Berger paints Bangladesh ltd. the result of correlation provided
support for hypothesis 3.
From the regression analysis, finishing of the painting job failed to enter into the regression
equation which indicates that this is not significantly associated with customer satisfaction.
Hence, on the basis of these results it can be inferred with confidence that H3 is not accepted.

Internship position and duties

As I was appointed as an intern at the Marketing and Sales Department of the Berger Paints
Bangladesh Limited, I had to work for the Assistant Marketing Manager, Mrs. Reina Ashfin
Khan and also for the Assistant Sales Manager, Mr. Shabbir Ahmad. I also worked with the
Assistant Manager for Color Bank, Mr. Subrata Paul. Assisting these three Assistant Managers in
their different works was my major duties. Alongside I have conducted two surveys on the

dealers of the BPBL and on general public about paint and the companies that do business in
Bangladesh. One of my other duties was to assist the Management Trainee Officer (MTO), Mr.
Shaikh Imran Aziz in organizing different sorts of events.
Now the bullet points stated below will enlist all the tasks that I had done during my internship
period:
Calculations of the shop signboard
Being present during the shop signboard installation
Use the SAP software to download sales data
Keep Track of all the gifts distributed to the dealers
Maintain an account to trace the gifts distributions to the employees of BPBL
Assist the Assistant Sales Manager in making rolling forecasting
Assist the General Sales Manager- Decorative (GSM-D) in making sales presentation
Keep Track of the Mass Calendar orders made by the dealers
Contact the dealers about the information for the Mass Calendar indent
Make entries to the MTD and YTD sheets maintained in the MS-Excel format
Update the sales data
Identify the Color Bank Dealers
Track the Color Bank dealers sales performances
Look for potential Color Bank dealers
Trace the dealers that may be eligible under the dealers schemes performance
Conduct survey as a mysterious shopper
Collect information about the competitors and their product
Collect information about the housing construction companies and their uses of colors
Collect information about the local shoe manufacturers and the shoe adhesive
Conduct survey on the dealers about Berger Paints Bangladesh Limited
Conduct survey on general public about various paint companies

Assist the MTO in various event organizing tasks

Writing memo for placing requisitions

Maintain the records of the eligible dealers for the foreign trips
Keep an eye on the dealers lifting of the paint categories and convince them to lift other
product categories

These were the tasks that I have done during the internship period at Berger Paints Bangladesh
Limited. Now I will describe all the points in details
.

Use the SAP software to download sales data:

I was and still I am fortunate that I am using SAP (System Analysis and Program) to download
the sales data. This software enables all the departments and offices of BPBL to integrate and get
interlinked in a quick manner. Previously, another software named Legacy, was used to
interlink

the

organization, but it failed to

satisfy the needs as it

But, for

was not a complete service.

a year, BPBL

has embraced SAP as the

that interlinks

the whole organization. I use

the software to collect

data from any parts and

software

offices

of

BPBL

according

to

requirements, and the other departments are also able download any sort of data they need.

Picture: Logo of SAP

This software really helps the whole organization in a great deal and also saves a lot of time.

my

Keep Track of all the gifts distributed to the dealers:

The dealers of Berger Paints Bangladesh Limited (BPBL) get lots of gifts from the company for
their performance and for promotional activities. But, mainly the sales performances of the
dealers help them to win or gain various gifts. The Berger Dealers get 21 Color TV, LCD TV, 1
Ton Split Air Conditioners, IPS, Shade cards, Digital Camera, Mobile Phones, Ceiling Fans, FM
Radio, 14 TV, Table Fans, Crockery Sets, Paint Brush, Credence Wrist Watch, Titan Wrist
Watch, Wall Clocks, T-Shirts, Jackets, Sweaters, Shirts, Caps, Mugs and so on. I had to maintain
the stock of these gifts by assisting an officer of the marketing department. The gifts are stocked
th

at the 5 floor of the corporate office, and the stocks are updated regularly.

Maintain an account to trace the gifts distributions to the employees of BPBL:

The employees of BPBL are motivated through some sort of gifts. The employees get Berger
Corporate Diary, Berger Small Diary, Berger Calendar, Seasonal Greeting Cards of specific
names printed, Desk Calendars, Big Calendars, Credence Wrist Watch (for the General
Managers only), Wall Clocks, Cross Pens, T-Shirts, Jackets, Sweaters, Shirts, Caps, Mugs
(Feather Brand) and so on. So, I had to keep all the records of these gifts that are dispensed to the
employees of BPBL. These gifts motivate the employees toward their works and also increase
the loyalty to the organization. The Records are kept in a MS-Excel sheet, and then transformed
to the SAP for availability to all the departments.
Assist the Assistant Sales Manager in making Rolling Forecasting:
The Rolling Forecasting is a very important matter for the BPBL employees. This forecasting
enables the production department, supply chain department, and the marketing & sales
department to prepare the budget for a whole month and/or a year. And the raw material
purchase decisions are also made upon seeing the rolling forecasting. The Rolling forecast is a
projection into the future based on past performances, routinely updated on a regular schedule to
incorporate data. In this process I had to enter the actual monthly/yearly sales and compare them
with the budgeted monthly/yearly sales. Then this was submitted to the Assistant Sales Manager
(AM -Sales), after that it was checked, and the amount of the rolling forecasting was decided by

the AM Sales. Then the rolling forecasting has to be entered to another MS-Excel Sheet and
disbursed to the regarding departments. The rolling forecasting will be used by the Supply Chain,
Production Department and Finance Department for the next phase of production.
Keep Track of the Mass Calendar orders made by the dealers:
As part of the promotional activities, the dealers and the sub-dealers of Berger Paints get
calendars with their names or the names of their shops printed. Each Calendars costs around
BDT.45; but, the dealers have to pay just BDT.25 only for each calendar, and the rest of the
amount is subsidized by BPBL as promotional cost. This process is also like the shop signboard
order placement process. The process is shown below;

I had to

record the

orders

of

the

mass calendars by separating them divisionally. I also had to record the payments that were made
by the dealers.
.

Make Entries to the MTD and YTD Sheets Maintained in the MS-Excel Format:
In this case I used to assist the AM-Sales in recording the MTD (Monthly Trade Details) and
YTD (Yearly Trade Details) of sales for the future use. These actual MTD and actual YTD
would be used to make rolling forecasting, and these sales data will be compared with the

budgeted MTD and budgeted YTD. It was a work worth patience, if a single bit is mistakenly

entered, the whole data sheet might turn into mayhem. All the tracks were kept in the MS-Excel
sheets.
Update the Sales Data:
Updating the sales data from the downloaded files through SAP from the sales offices were a
major task. It took hours to update the data accurately, and the data were divided into monthwise sales. The sales growth, sales volumes, and sales performance were updated through this
job.
Identify the Color Bank Dealers:
After updating the sales data in the Spreadsheet, it was my duty to filter the Color Bank Dealers
from all the dealers and sub-dealers. This task was done for the Assistant Manager - Color Bank.
This task enabled me to use different sorts of formulas in the spreadsheet for filtering specific
sort of data.

Track the Color Bank Dealers Sales Performances:

Every month the Color Bank dealers lift Color Bank products like JSE, APE Classic, WC
Smooth Classic, Robbialac Wall Putty and so on. I was responsible to track the performances of
the Color Bank Dealers. I had to observe the monthly sales performances of the Color Bank

Berger Paints Bangladesh

Limited
Dealers, and also mark the vast variations of the current and previous month sales of a single
dealer.
Look for potential Color Bank dealers:
Marketing is a sort activity where the marketers try to spread the products to all the targeted
customers. Berger Paints is also doing the same. We have Color Bank Dealers, but to increase
the market share and boost the sales. The BPBL Color Bank has to look for the holes to fill up. In
this process all the sales data I had, would be revised, and the current Color Bank Dealers will be
kept aside. Then the task was to find the non-Color Bank Dealer who sold more than
BDT. 800,000 annually. And then, these pointed out dealers would be influenced to become
Color Bank Dealers. Albeit, there are many dealers considered as the prospective Color Bank
Dealers, but due to their payment pattern and the situations, they cannot become the Color Bank
Dealers.
The Color Bank Dealers get lots of facilities provided by BPBL. For example the Color Bank
Dealers get Automatic/Semi-Automatic Color Bank Machines, computers for the shops to use
the Color Bank facilities, free decoration of Thai aluminum frames, and also Color Bank wall
clocks.
Then the term comes to influence the targeted dealers to turn them into Color Bank Dealers. I
have approached to 7 Color Bank Dealers, 6 of them agreed to change their status to Color Bank
dealers.
Trace the Dealers that may be Eligible Under the Dealers Schemes Performance:
In this term I was responsible to trace the sales performance of the dealers under various schemes
offered by BPBL. For example a few days back there was a 3-month long (SeptemberNovember) scheme for the dealers. This scheme contained a targeted sales amount for the
dealers, if the targeted sales are achieved, then the dealers will get many sorts of gifts and foreign
trips. The table below shows the glimpse of the scheme.