A

SUMMER TRANING REPORT

ON

POTENTIAL NEW DEALERS ANALYSIS-EXPLORING NEW BUSINESS

OPPRTUNITIES IN UDAIPUR CITY

SUBMITTED TO UTTRAKHAND TECHNICAL UNIVERSITY IN THE

PARTIAL FULFILMENT OF

MASTER OF BUSINESS ADMINISTRATION

(TWO YEARS REGULAR DEGREE PROGRAMME)

SUBMITTED BY: UNDER THE SUPERVISION OF

AKANSH CHAND PROFF.MR.PUSHPENDER SINGH

MBA 3RD SEMESTER

BATCH - 2015-17
 DECLARATION
I hereby declare that the project work entitled Potential New Dealers Analysis Exploring
New Business Opportunities inUdaipur city submitted to Uttrakhand Technical University as
a part of the MBA curriculum, is a record of an original work done by me under the guidance of
Mr. RohitKushwah (Director of Quantum School of Business, Roorkee) and Mr.Pushpender
Singh (Associate Prof. of Quantum School of Business)and Mr.Prashant Shekhawat (Depot
Manager, Udaipur) and this project work is submitted in the partial fulfilment of requirement for
the award of the degree of Masters of Business Administration. The results embodied in the
project have not been submitted to any other university or company for award of any degree or
diploma.
 Acknowledgement
With immense pleasure, I would like to present this project for Berger Paints India Limited. It
has been an enriching experience for me to under my summer training at Berger Paints India Ltd,
which would not have been possible without the goodwill and support of the people around. As a
student of quantum school of business, Roorkee, I would like to extend my sincere gratitude and
thanks to Mr. PrashantShekhawat (Depot Manager, Berger Paints India Ltd.,
Udaipur),Mr.RohitKhuswah (Director, Quantum School of Business,Roorkee), Mr.
Pushpender Singh (Associate Prof.) to shape my understanding towards the project. It was
because of their immense help and support that this project has been duly completed.

However, I accept the sale responsibility for any possible error and would be extremely
grateful to the readers of the project report if they bring such mistake to my notice.

Akansh Chand
 Executive Summary
The purpose of this project titled Potential NewDealers Analysis Exploring New Business
Opportunities in Udaipur City is to collect the necessary information from the projective
dealers.

The study includes interviewing the dealers who are into the business of building material,
sanitary, hardware, cement, paints, bath fitting etc. collecting information regarding their shop
and contact details. It also includes information like annual turnover so that accordingly they can
be contacted in future. These data which has been collected through the interview has helped in
deriving many conclusion regarding the market share and awareness of their competitors and
others building related products.

If sales and distribution channel is expended, then it would be beneficial for customers to buy
Berger which can only be done increasing its dealer in the market. So this study also helped the
company to know how many dealers are ready to become the dealer of Berger.

As India is entering into the scenario where the customers want each and every product at one
place. A shopping mall is a good example where consumer searching the goods of their use at
one place. Same applies on construction related goods like cement, paint, sanitary and plywood.
So in this study the alternate channels are targeted, with which the co. as well as dealers well get
benefit.
(1) Objective/Sub Objectives of the study
1.1) Objectives:
Potential Dealer analysis Exploring New Business Opportunities In Udaipur
City, Rajasthan

1.2) Sub Objectives:

To open the new dealers in the Udaipur city for Berger.
To know the behavior of the dealers towards the Berger Paint.
To increase the sale of Berger Paint in Udaipur city.
To find the potential ADC counters for Berger paint.
To aware about the Berger products to the new dealers.
To convince the interested dealers for sell out the Berger products.
 (1)

OVERVIEW OF THE
PAINTS INDUSTRY IN
INDIA

Paint your imagination

1.1) Brief Description
What is paint?

Paint is a mixture of (1) Pigment, (2) Extenders, (3) Binders, (4) Solvents,(5) Additives. It
generally gives an opaque film, sometime transparent paint films also. It is available in the form
of liquid (Solvent base Enamels paints & Primers), in the form of thick, curdy like viscus liquid,
(Emulsion paints for wall) in the form of paste (Putty Type) and the form of powder (Oxides for
floor, Cement paint, Powder base putty, etc.). It gives glossy finish, sometime semi glossy paints,
sometime sheen finish and sometime matt finish. There are two types of paints (1) Solvents
and (2) Water base.

Why we paint the surface?

The main objective of painting are , (a) to protect the surface from many factor like, rain, fungus,
saline water, heat, sunlight, UV ray, dust, etc. and another objective is (b) to give aesthetic look
and (c) to guide people the traffic rule etc. the paint are many type like decorative paints,
protective coating, industrial paints, automotive paints and powder coating.

What are the basic tools are used while painting?

We generally use the following (1) Paint Brush, (2) Sand Papers/ Water Papers of different
grades, (3) Waste cloth, (4) Putty knives, (5) Spray gun
PIGMENT:
Pigment gives color to the paint. When applied on a surface it gives opaque paint film to the
surface. The pigments are two types. Those are (1) organic pigment (2) inorganic pigment. The
pigments are available in the form of powder. It is responsible for the coverage and hiding is
reverse. Please note there are some colors, who give lower coverage and lower hiding by birth.
Those colors are red color, yellow colorand orange color. The organic pigments are clean in
colorwhereas inorganic pigments are dirty in color. Price wise organic are costly and inorganics
are cheaper. Life on wall inorganic pigments gives better life as compared to organic.

EXTENDER:
In general chemically it is inert. Some of the extenders are processed minerals whereas others are
chemically prepared. The name of some extender is as follows: (1) Barites (2) whiting (3) china
clay (4) soap stone (5) French chalk (6) mica and there many. It does not give any color and
therefore no hiding property. The difference between pigment and extender is refractive index
(R). In case of pigment RI is higher as compare to extender. Please note that higher the RI is
higher the hiding/opacity and obviously in coverage. Therefore when extenders are used in paints
binders it gives no color, and virtually transparent. The main reason we used extenders in paints
are to reduce gloss of paint. Higher percentage of extender used in paint reduces more gloss of
paint and it moves towards gloss to high sheen finish, sheen finish to matt finish. In other word
we can call the extenders as matting agent.

BINDER:
In simplest way it can be defined as one that bind pigment and extender (if any) together and
ensure adherence of paint of the substrate when applied as paint. Pigment and extender are
grinded and dispersed in the binder during manufacturing process. It is mainly responsible for
giving life to paint when applied on surface. When we are applied paint on a substance, it starts
fight with (1) corrosion (2) water (3) heat (4) air (5) light and (6) earth i.e. dust. The binder
quality decides its durability, which means up to what extent it (binder) can fight with above
factors. Weaker the binder, reduces the life of paint, and ultimately the life of surface reduce. Its
a national loss. We made loss to the nation is about 50k crore per year. It is our responsible to
arrest this loss. How it is possible? It is possible only to understanding the importance of paint
and painting.
SOLVENT:
It is liquid material. It is used in 3 states like (1) in manufacturing process of binder (2) in
manufacturing process of paints and (3) while in application process of paints. After application
of paints on substrates it evaporates to air. There are two types of solvents and aliphatic solvent.
Aliphatic solvent are petroleum bi products whereas aromatic solvent are coal bi product.
Aliphatic solvents are solvent are slow evaporating whereas aromatic solvent are fast evaporate
solvents.

ADDITIVES:
Additives are many in no. , but each one are used less in quantity. It upgrades the quality of
paint. Use of excessive quantities of additives will create problems. The maximum quantities you
can use are 5% max. It is used to improve the following properties of paints.
 Paint Industry Overview

India is the second largest paint market in Asia with an annual demand of over two million tones.
The Indian paint industry has been growing constantly over the last decade. Growth has been
consistent with the GDP growth rate and in some years even higher. Over the past few years, the
Indian paint market has substantially grown and caught the attention of many international
players. The country continues to enjoy a healthy growth rate compared to other economies,
backed by the increasing level of disposable income, and demand from infrastructure, industrial
and automotive sectors. On the back of such advocacy, it is anticipated that the sector will post a
CAGR (Compound Annual Growth Rate) of around 15per cent during 2012 to 2015, according
Indian paint industry expert forecast.

The paint industry can easily grow at 12-13% annually over the next few years from its current
size of Rs 350 bn. The per capita paint consumption in India which is a little over 4 kgs is still
very low as compared to the developed western nations. Therefore, as the country develops and
modernizes, the per capita paint consumption is bound to increase.

The unorganized sector controls around 35% of the paint market, with the organized sector
accounting for the balance. In the unorganized segment, there are about 2,000 units having small
and medium sized paint manufacturing plants. Top organized players include Asian Paints,
Kansai Nerolac, Berger Paints and ICI.

Demand for paints comes from two broad categories:

Decorative: Major segments in decorative include exterior wall paints, interior wall
paints, wood finishes and enamel and ancillary products such as primers, putties etc.
Decorative paints account for over 70% of the overall paint market in India. Asian Paints
is the market leader in this segment. Demand for decorative paints arises from household
painting, architectural and other display purposes. Demand in the festive season
 (September-December) is significant, as compared to other periods. This segment is price
sensitive and is a higher margin business as compared to industrial segment.

Industrial: Three main segments of the industrial sector include automotive coatings,
powder coatings and protective coatings. Kansai Nerolac is the market leader in this
segment. User industries for industrial paints include automobiles engineering and
consumer durables. The industrial paints segment is far more technology intensive than
the decorative segment.
The paints sector is raw material intensive, with over 300 raw materials (50% petro-based
derivatives) involved in the manufacturing process. Since most of the raw materials are
petroleum based, the industry benefits from softening crude prices.

Indian Paints Industry

i

Decorative Segments Industrial Segments

(77%) (23%)

Premium Medium Distemper Consumer

Automative
range (high range paintes durable
sector (2/3
& acrylic (Enamals (low end marine
share)
emulsion) paints) paints) paints other
OEMs

Sub Urban
Metro and Small and Rural
large cities cities Areas
1.2) Industry Structure
Indian Paint Industry is over 1000 years old. Its beginning can be traced back to the setting up of
a factory by Shalimar paints in Calcutta back in 1902. Till the Second World War the industry
consisted of small producers and two foreign companies. After the war, the imports stopped
which led to the setting up of manufacturing facilities by local entrepreneurs. Still the foreign
companies continued to dominate the market, which in a way is the current scenario as well. The
initial decades saw the complete dominance of British Paint companies such as GoodlassNerolac
(now KansaiNerolac), ICI, British Paints (now Berger Paints), Jenson & Nicholson and Blundell
&Eomite. The Indian Paints sector is valued at Rs 6,800 crores in value terms and is very
fragmented. The current demand is estimated to be around 650,000 tons per annum and is
seasonal in nature. The per capita consumption of paints in India stands at 1.0-kg p.a. as
compared to 1.6 kg in China and 22 kg in the developed economies. India's share in the world
paint market is just 0.6%.

The Indian Paint industry can be divided as:

The organized sector comprising of large and medium size units

The unorganized or the small scale sector.

There are now twelve players in the organized sector with a market share of 77%. This is in
contrast to the 55% share that the sector commanded a few years back. Major companies in this
segment include Asian Paints (42% market share), Berger Paints (23% market share), ICI (6%
market share), KansaiNerolac (10% market share), Jenson Nicholson (4% market share),
Shalimar Paints and Rajdoot Paints. The organized sector has grown at a CAGR of 11.5% in the
last five years. The unorganized sector comprising of over 2000 units has a combined market
share of around 30%. The major players are Asian Paints, KansaiNerolac, Berger, ICI and
Shalimar. Recently, world leaders like Akzo Noble, PPG, Dupont and BASF have set up base in
India with product ranges such as auto refinishes powders and industrial coatings. Kansai Paints
of Japan, which entered into collaboration with KansaiNerolac in 1984, is now the holding
company for KansaiNerolac with 64.52 % equity holding. PPG has a joint venture with Asian
Paints to manufacture industrial coatings. Jenson & Nicholson and Snowcem India are no longer
active players because of dwindling sales in recent years. In the 1990s, helped by a growing
economy, the paint industry had recorded a healthy growth of 12-13 % annually. This was
mainly due to a drastic reduction in excise from a staggering 40% to 16%. However, the growth
was restricted in 2000-03 to single digits. There was a revival in 2003-2004 with a robust growth
of 13%.8.The per capita consumption of paint in India is 700 grams against 19 kg in the U.S.,
and 2.7 kg and 5.8 kg in other developing countries like China and Brazil. As the consumption
goes with affordability, the low Indian figure is not a surprise. High excise duties, low
technology and low capital costs for production led to the incidence of a high number of units in
the small scale sector. However, since 1992 the government has been consistently lowering
duties from 40.5% in 1992 to around 16% currently. This has led to lowering of price differential
between the organized and unorganized sector. Moreover the paints sector was also allowed to
claim MODVAT credit on petro-based products, thus lowering the excise incidence further.

1.3) Paints and Their Market Share

Product Share
50
45
40
35
30
25
20
15
10
5 %Product
0
 1.3) Companies & Their Collaboration

COMPANY COLLABORATION AREA OF COLLABORATION

BERGER PAINTS Herbert sons GmbH; Auto coatings;

Valspar Corp. Inc, Heavy duty coatings;

Teodur BV Power coatings

ASIAN PAINTS PPG Ind. Inc., Electro deposition primers;

Sigma coatings, High performance coatings,

Nippon Paints Power coatings

KANSAI Kansai paints Auto & Industrial coatings

NEROLAC

ICI(India) ICI plc. Auto refinish

J&N Herbert sons GmbH Auto coatings

1.4)Drivers to the growth of the Paint Industry

1) Increasing level of income and education: The increasing proportion of young population
along with increasing disposable incomes is leading to a change in consumer habits. The Indian
economy is shifting from a savings economy to a spending economy. With more income at their
disposal, people are now ready to pay for better products and paint is no exception.

Educated consumers are more brands conscious and seek value in what they consume. Thus,
paint companies offering value-added features like non-toxicity, weather protection, texture, eco-
friendly production, etc. will attract more demand.

These value-added products enable the manufacturers to earn a better premium as compared to
the regular paints, thus offering higher margins.
2) Increasing Urbanization: Urbanization is leading to a shift from temporary houses to
permanent houses. Urban houses are well-designed in its interior as well as exterior aspect. This
calls for more houses being painted using medium and premium paints. For urban houses,
interior design is becoming a fashion statement and a lot of paint is used to decorate the interiors.
This will lead to an increase in the per capita consumption of paint which will increase the
overall demand of paint. Urbanization also brings more nuclear families. More nuclear families
mean more number of houses even for the existing population thus further driving the demand.

3) Increasing share of organized sector: Decrease in taxes on key raw materials will improve
the position of the organized players. The Organized sector is expanding its distribution network
and adopting the installation of tinting machines at retail outlets. These tinting machines offer a
wide variety of colour shade options to choose from. The unorganized players are not in a
position to offer such facility as it is comparatively capital intensive. Shift in use, from distemper
segment towards premier segment is also shifting market share from the unorganized sector to
the organized sector.

4) Development of the Realty, Automobile and Infrastructure sector:The growth of the paint
industry is largely dependent on the development of the realty and housing sector, as decorative
segment generates about 70% of the total paint demand from this sector. The Automobile
segment generates more than two-third of the demand for Industrial paints, and hence is the
growth driver for Industrial Paints. The Infrastructure segment creates direct demand for paints
as well as creates indirect demand through supporting the growth of the realty, automobile,
FMCG and other industries where paint is used.

The growth potential in the above 3 sectors is immense, the paint industry being dependent on
these 3 sectors is expected to grow along with them.

5) Availability of financing options: Easier housing finance and auto finance is expected to
favor more people to buy houses and travel in personal vehicles. This will drive the growth of
housing and automobile sector, of which the Paint industry will get its share.
6) Increasing Penetration in the Rural Markets: Paint usage in rural areas is generally in the
distemper segment, hence dominated by the unorganized players. Demand in rural areas is
dependent on agriculture, which is dependent on the monsoons. With the development of
irrigation facility, the dependence of agricultural output on monsoons will be on a decreasing
trend. Also, with the modernization of agriculture and accompanying development of rural India,
consumer preferences are expected to improve. Paint companies are expanding their distribution
network in rural parts of India, which is a relatively untapped market for the organized players.
These factors supported by the increasing penetration of the paint companies will help drive the
demand for paints.

1.5) Main Concerns of the Paint Industry

Cost of raw materials: The Cost of Raw materials are an important factor as the industry
is raw material intensive. Fluctuation in the prices of Titanium dioxide and Petroleum
directly affect the production cost. This is more of a concern for the Industrial segment as
compared to the Decorative Segment, as it is comparatively easier to pass on the costs in
case of decorative paints. Also, a large portion of raw materials are imported, leaving the
cost factor vulnerable to exchange rate fluctuation.

MNCs entering the Indian Paint Market:The entry of Established foreign players in
the Indian market may increase the competition among the players of the industry. This
may lead to price competition which may impact the profit margin of the companies. As a
result, the increase in volume growth may not equally reflect in the profit growth for the
companies.
1.6) Paint Industry Prospects

The market for paints in India is expected to grow at 1.5 times to 2 times GDP in the next
five years. With GDP growth expected to be over 7% levels, the top three players are
likely to clock above industry growth rates, especially given the fact that protection that
was available to unorganized players has come down significantly.

Decorative paints segment is expected to witness higher growth going forward. The fiscal
incentives given by the government to the housing sector have benefited the housing
sector immensely. This will benefit key players in the long term.

Although the demand for industrial paints is lukewarm it is expected to increase going
forward. This is on account of increasing investments in infrastructure. Domestic and
global auto majors have long term plans for the Indian market, which augur well for
automotive paint manufacturers like Kansai Nerolac and Asian-PPG. Increased industrial
paint demand, especially powder coatings and high performance coatings will also propel
top line growth of paint majors in the medium term.

1.7) Top 10 paints companies in India:

1. ASIAN PAINTS
2. BERGER PAINTS
3. KANSAI NEROLAC
4. JENSON & NICHOLSON (I) LTD
5. SHALIMAR PAINTS
6. BRITISH PAINTS
7. SNOWCEM PAINTS
8. DULUX PAINTS
9. SHEENLAC PAINTS
10. NIPPON PAINTS
 (2)

Company Profile
2.1) History

The name Berger or Lewis Berger is today synonymous with color worldwide. But actually the
origin of the name dates back to over two & a half centuries in England in 1760, when a young
color chemist named Lewis Berger, started manufacturing in Europe, 'Prussian blue' using a
secret process that every designer and householder coveted. Mr. Berger perfected this process &
art of the blue color, which was the color of most military uniform of that time. Enriched by the
imagination of Lewis Berger, the unending quest for creation and innovation in the world of
color& paints still continues.

The history of Berger Paints India Limited as a company started in 1923 as Hadfield's (India)
Limited which was a small colonial venture producing ready- mixed stiff paints, varnishes and
distempers setup on a 2 acres of land in one of India's first industrial towns close to Kolkata in
Howrah, Bengal. Subsequently in 1947, British Paints (Holdings) Limited, an international
consortium of paint manufacturing companies bought over Hadfield's (India) Limited and thus
the name changed to British Paints (India) Ltd. The gentleman who took over, as its first
managing director was Mr. Alexender Vernon Niblet, an Englishman who was later on followed
by Mr. Alfred Godwin in 1962.

Further in the year 1965, the share capital of British Paints (Holdings) Limited was acquired by
Celanese Corporation, USA and the controlling interest of British Paints (India) Ltd was
acquired by CELEURO NV, Holland, a Celanese subsidiary. Subsequently in 1969, the Celanese
Corporation sold its Indian interests to Berger, Jenson & Nicholson, U.K. Then onwards the
company British Paints (India) Ltd became a member of the worldwide BERGER group having
its operations across oceans in numerous geographies and this marked the beginning of Lewis
Berger's legacy in India which the company would later take forward to enviable heights.
From 1973 the company entered into one of its dynamic phases of business with introduction of
new generation products in the industrial, marine and decorative segments under the able
leadership of it first Indian Managing Director Mr. Dongargaokar Madhukar.

Year 1976 was another turning point in the history of the company when the foreign holding in
the company was diluted to below 40% by sale of a portion of the shares to the UB Group
controlled by Mr. VittalMallya. The reins of the company were taken over by Mr. Biji K Kurien
as its Chief Executive & Managing Director in the year 1980. Finally in the year 1983, the
British Paints (India) Limited, changed its name to Berger Paints India Limited.

The entire 80s & 90s saw the lunch of many new products from company's stable such as
premium emulsions and high quality acrylic distempers. The COLOUR BANK tinting system
was launched through which the consumer could select from a range of over 5000 shades.

Again the fortunes of the company changed hands in 1991 with UB Group's stake in the
company bought over by the Delhi based Dhingra brothers, Mr. K.S.Dhingra& Mr. G.S.Dhingra
and their associates of the UK Paints Group. Presently Dhingras' control a majority stake of
almost 73% in Berger Paints India Limited, which is a professionally managed organization,
headquartered in Kolkata, with the stewardship resting since 1994 until 2012 with the Managing
Director Mr. Subir Bose. The current managing director of Berger Paints India Ltd is Mr. Abhijit
Roy.

2.2) Company Background

Established in 17th December, 1923, the company then known as Hadfiled's (India) Limited; was
a small paint company based in Kolkata having its only manufacturing facility at Howrah, West
Bengal to produce ready mixed stiff paints, varnishes and distempers. Post-independence,
towards the end of 1947, British Paints (Holdings) Limited, U.K acquired Hadfield's (India)
Limited and thus British Paints (India) Limited was incorporated.
From a production capacity of 150 tones and sales turnover of around Rs. 25 lakhs in 1947, the
company has come a long way to become at one point of time; a part of the worldwide BERGER
group in 1983 and thereby acquiring its present name Berger Paints India Limited to having
subsequently gone through further ups & downs as well as ownership changes to gain its present
status wherein the majority stake is with Delhi based Dhingra brothers and business revenue
more than Rs 4465 crs.in FY 2015-16.

Today Berger Paints India Limited, having solely used and developed the name and trademark
BERGER and all its variants in India, is a household name in paint. With Head Office in Kolkata
the company manufactures and markets a range of decorative & industrial paint products under
various product brands and has it operations spread throughout the length & breath of the
country; with seven manufacturing facilities in India and more than 85 depots, several regional &
area offices, besides four facilities overseas. It has a workforce of over 2666 employees and a
countrywide distribution network of 20000 plus dealers.

Berger Paints has clearly demonstrated its commitment to Indian consumers for over 88 years,
by offering its varied range of high performing quality products backed by highest level of
customer service. Company's high ethical standards in business dealings and its on-going efforts
in community welfare make Berger Paints India Limited a responsible corporate citizen. While
the company's decorative and Industrial paints continue to gain an increasing market share,
Berger as an organization has managed to achieve sustainable competitive advantage through
innovations in all spear of business, desire to excel and by creating a winning culture & abiding
faith in its values & philosophy among all its stakeholders.

With Berger Paints we can now see your imagination of colour unfurl in front of your eyes and
watch your home come alive, telling a thousand tales.

Transform our home with the POWER OF IMAGINATION.

BERGER PERFORMANCE:
BPIL IS THE 2ND LARGEST PAINT COMPANY IN INDIA.

20,000 PLUS PAINT RETAILERS, 90 STOCK POINTS, 6 RDCS, 7 PRODUCTION

UNITS

TOTAL CONSOLIDATED GROSS TURNOVER OF 4465 CRS IN 2015 16

RECORDED THE FASTEST GROWTH IN THE DECORATIVE PAINT

SEGMENT IN INDIA GROWING @ 20%

2.3) BERGER PRODUCTS:

BERGER INTERIOR EMULSION VS COMPETITION
Product Category Berger Brand Asian Brand ICI Brand Neroalc
Brand
Luxury Interior Silk Royale Velvet Touch Impression
Emulsion
Luxury Interior RangoliEasy Clean - NA - 3 in 1 Emulsion - NA -
Emulsion
Premium Interior Rangoli Premium Dulux Super Beauty Gold
Emulsion Emulsion Smooth
Economy Interior Bison Emulsion Tractor Rainbow Beauty
Emulsion Emulsion Smooth
Distemper Bison Distemper Tractor Magic NAD
Distemper

BERGER EXTERIOR EMULSION VS COMPETITION

Product Category Berger Brand Asian Brand ICI Brand Neroalc Brand
Premium Exterior Weather Coat All Apex Ultima Weather shield Excel Total
Emulsion Guard Max
Regular Exterior WeatherCoat APEX Weather shield Excel
Emulsion
Economic Exterior Walmasta ACE Promise Suraksha
Emulsion
BERGER ENAMEL RANGE VS COMPETITION
Product Category Berger Brand Asian Brand ICI Brand Neroalc Brand
Premium Enamel Luxol High Gloss Premium Dulux Gloss Nerolac Syn.
Enamel
Economy Enamel Jadoo Utsav Enamel NA Goody
Enamel/Butterfly
Satin Enamel Luxol Satin Enamel Premium Satin Dulux Satin Nerolac Satin
Enamel
2.4) Board of Directors:
Mr. Kuldip Singh Dhingra (Chairman)

Mr. Gurbachan Singh Dhingra (Vice-Chairman)

Mr. Abhijit Roy (Managing Director)

Mr. Aniruddha Sen (Vice President & Company Secretary)

Mr. Subir Bose (Member in the Board of the Company)

Mr. Anil Bhalla

Mr. Gerald Kenneth Adams

Mr. Gurcharan Das

Mr. Kamal Ranjan Das

Mr. PulakChandan Prasad

Mr. SrijitDasgupta

Mrs. Rishma Kaur

Mr. Kanwardeep Singh Dhingra

2.5) COLORBANK

In Todays scenario Tinting machine is an integral part of all paint shops Tinting
machine is a necessity for selling of emulsions where any shade could be requested by
the customer .Function of a Tinting Machine is to dispense colorants into Base can to get
the desired color.
BENEFITS OF COLORBANK SYSTEM
To the Dealer

Minimum inventory and Max shades

Customization of shades as per customer requirements

No stock out.

To the Customer (Leading To Customer Satisfaction)

Option to choose from a wide range of shade.

Availability guarantee.

Perfect reproduction incase of repeat order.

Alternate channel dealers should be opened with CB machines.

a) 5 cheque of 30000 to be collected. Cheques to be banked

b) Dealer does 9 lakhs value sales of which 3 lakhs is emulsions then dealer will be
eligible for CB refund.
c) 20 % Growth required in subsequent years.

Components of a Machine
Dispenser- Used for dispensing the colorants into the base
 Gyroshaker- Mixes the colorants and base to make the shade

Computer- Used for viewing the formulations and for controlling the dispensing
operation

Software- Indicates the formulations and other statistics for the dealers.

Colorants used: The dispenser dispenses colorants in various proportions as per the
software into the emulsion container to make various shades.
 Berger BP
Colorant Colour Price/Ltr
OC Yellow Oxide 480
SP Red Oxide 791
NT Fast Black 467
BF Fast Blue 629
VB HT Violet 1152
GC HT Green 1229
GF Fast Green 921
WT HT White 663
RD Interior RED 935
RE Exterior RED 1785
LM LemonYellow 1278
NS Medium Yellow 840
MG Magenta 1579
BC HT Blue 1397
OR Orange 1493
BR Tinting Black 622
Total 16261
Different bases are used for different shades of colors.

The bases usage based on shades is detailed below

For tinting pastel shades P0 ( e.g. Shade Apple White from CB 101 card)

For tinting light intermediate shades W1 ( e.g. Shade Blue Chip from CB 101
card)

For tinting dark intermediate shades N1( e.g. Shade Jodhpur Beige from CB 101
card)

For tinting light accent shades N2 ( e.g. Shade Ink Drop from CB 101 card).
 For tinting dark accent shades N ( e.g. Shade Ultra violet from CB 101
card)

Colored bases are used for reducing the quantity of colorant consumed for making a
shade and therefore economizing the shade cost with better hiding

Yellow Used for making Yellows, Oranges and Yellow greens Available in
Interior and
Exterior Emulsions

Red Used for

making deep red
shades

Brown Used for

making browns,
reddish browns in
exteriors

Cream Used for making earthen tones and ivory shades in exteriors

Grey Used for making grey shades in enamels (Smoke grey/light grey/dark grey).

2.6) Landmark Projects

The Calcutta Club was set up in 1907 in response to the discriminatory practices of the Bengal
Club which admitted only white members. Today, it is not just popular but also one of the most
prestigious clubs in the city. A membership to the club is so coveted and the list of prospective
members believed to be so large, that it takes over a year before the screening committee finds
time to consider the suitability of an applicant.
A high rise condominium spread over five acres, Teen Kanya overlooks Lake Nucifera. The
three towers, 16 storied each, arranged in a semi circle overlook the 100 acre water body. Plenty
of natural light, perfect cross ventilation and a whole host of state-of-the-art amenities make the
flats of Teen Kanya, in Action Area II of Rajarhat, perfect for living. Living here is like living in
the heart of nature with all the modern facilities you can dream of Rs. 275 crore was poured into
making the mall and the five-star hotel
of City Centre II a multi-utility
urban infrastructure project. The
project, which took three years to get

completed, is built on five acres of

land. City Centre II, at Rajarhat is just
3 km from the Netaji Subhash Chandra
Bose International Airport. It has been
designed to give a boost to the hotel
business while the mall caters to
the people of north Kolkata
largely.

In 1994 as a development and

maintenance services arm of
The Dun & Bradstreet
Corporation and Satyam
Computers and Services Ltd.,
blossomed into an independent
organization called Cognizant
in a matter of two years. One of
the first IT services companies
with key industry verticals as
well as technology horizontals.

The land on which Mantri Greens is built was once Royal property belonging to none other than
The Maharajah of Mysore. Not only that, the title document bears the signature of world
renowned engineer and Statesman - The Dewan of Mysore, Sir M. Visvesvaraya. The
authenticity of this title has stood intact for more than 110 years. Now, it is a place where you
and your family's can enjoy the rich and scenic nature for a lifetime.

Some Other Projects:

2.7) Bergers Presence in India

2.7) Bergers Presence All Over the World

Apart from operations in Russia, with a production facility at the Berger manufacturing unit at
Krasnodar, Berger has also expanded its footprint in Nepal by setting up a second unit. Today
Bergers sister company in Bangladesh is the dominant leader with 65% market share. In
keeping with the companys dynamic growth plan, Berger has also acquired Bolix SA of Poland,
a leading provider of External Insulation Finishing System (EIFS) in Eastern Europe. As Berger
continues to grow internationally, it also continues to be the second largest paint company in
India. Berger is the lone supplier of Nuclear Power Plants with its Protective Coatings. The
automotive sectors, be it cars or bikes, is primarily ruled by Bergers automotive coatings.
Luxury cars including Mercedes make use of Berger products. Companies like Nokia uses
Bergers services as well. Berger has tied up with Becker of Sweden to manufacture coil coatings
for steel surfaces.

2.8) Market Share of Major Player in INDIA

Market Share of Top Indian Paint Companies

17.80%

Asian Paint
Kansai Nerolac Paint
11.10% ICI Paint
Akzo Noble Paint
1.90% 53.60%
Berger Paint

15.60%
2.9) Market Share of Industrial Paints

Market Share of Industrial Paints

Others
17%
Shalimar Paints Ltd. Goodlass Nerolac
8% Paints Ltd.
41%

ICI India (Ltd.)

9%
Berger Paints Asian Paints
(India) Ltd. (India) Ltd.
10% 15%

2.10) Market Share of Decorative Paints

Market Share of Decorative Paints

Others Asian Paints (India)

25% Ltd.
38%
Shalimar Paints Ltd.
6%
ICI India (Ltd.)
Berger Paints 8%
Goodlass Nerolac
(India) Ltd.
Paints Ltd.
9%
14%
2.11) Industrial Sector Composition

Industrial Sector Composition

50
Market Share (%)

40
30
20
10 50 30
10 5 5
0
Automotive High Powder Coating Coil Coating Marine Paints
Paints Performance
Coating
Types of Industrial Paints

2.12) Marketing Mix in relation to Berger Paints

Marketing decisions fall into four main controllable categories namely

Product

Place

Price

Promotion

Relating these factors with respect to Berger Paints

Product:

Berger is committed to offer quality products that satisfy consumers ultimate desires from paints
with the help of state-ofart technology. Berger always believes in one step ahead in offering
new product to create more value for customers money. Berger outsmarts other competitors of
the market through its one step in advance policy and innovative market offers. Berger is trying
to fill up all holes of the market through offering a wide range of products to meet the needs
(Premium to Economy Paints) of different types of users and to solve the different types of
functional requirements (Industrial, Decorative & Marine). Due to shift in market growth trends
Berger is trying to establish itself in the economy segment of the paint market.

Place :-

Another major component of marketing mix is place. During our visit at BERGER I was able to
include inventory, transportation, coverage, channel, logistics and market and market segments
etc. under these marketing mix components.

Differentiated market segment

Bergers market segments are differentiated. They use different types of marketing mix for
different segments. Their product quality, advertisement, promotional techniques, price are high
for upper class customers. Again for the people of middle class on the basis of their income,
occupation, taste, lifestyle different marketing policies are applied. We can observe this
deviation in TV advertisement.

Inventory

BERGER has divided their products in A,B,C category. For inventorying their products
BERGER is following some storing norms. Depending on this storing norms company decides
how long their product will stay in the market in accordance with the existing sales trend of that
particular product. This is how the firm can determine when to order and how much to order.

Transportation

To ensure customer satisfaction BERGER uses modern and fastest going covered van as
transportation carrier while moving goods from depots to dealers. But when they move goods
from factory to depots they use public transportation carriers such as truck and railway as rental
basis.
Distribution network

With Head Office in Kolkata the company manufactures and markets a range of decorative &
industrial paint products under various product brands and has it operations spread throughout
the length & breath of the country; with seven manufacturing facilities in India and more than 85
depots, several regional & area offices, besides four facilities overseas. It has a workforce of over
2500 employees and a countrywide distribution network of 15000 plus dealers. The orders are
collected by the sales executives and passed on to the nearest depot. The depots are fed by
regional warehouses. These depots maintain a minimum order quantity which is arrived at from
the monthly demand forecast. The material is dispatched from the depot in the name of the
dealer. Generally some orders of the same region are clubbed together and dispatched in trucks.
Finally the truck is unloaded and the small orders of the dealers are dispatched to them.

Manufacturing Unit Manufacturing Unit Manufacturing Unit

Depot Depot Depot Depot Depot

Dealer Dealer Dealer Dealer Dealer

Dealer Dealer
 Berger

Feedback Product
Retailers

Depots Customer

Feedback Product Feedback

Direct Dealers

Customers Wholesale
Feedback

Price:-

In the paints industry price is the used only as a differentiator between the various segments in
the same product line. The prices of different brands in the same segment remain more or less
similar, with just a difference of 30 to 40 paisa per square feet. Some of the specialty products,
which are not produced by all brands, may be priced at a higher price.

Pricing decisions in the paint industry largely depend on the price of the inputs like petro
products, other raw materials, excise duties and taxes and the general operating profits. Generally
increase or decrease of prices is affected across all brands in the market. Most of the paint
companies offer a 5% margin to the dealer. Due to internal competition, the dealers pass on this
advantage to the customers by reducing their own margins to 2-3%. This is a cause of concern
for the paint companies because they have to keep a constant check on the prices offered in the
market. The dealers offer more of discounts and the companies are not able to firm up the prices.
Paint companies offer a lot of discounts like cash discounts, volume
discounts, seasonal discounts and allowances. The dealers take advantage of these discounts to
gather more business.

Promotion:-

The paint industry until 1999 was concentrated mostly on increasing sales by intensive trade
promotion wherein the dealers, contractors and other components of the supply chain. There was
little emphasis on theme advertising directed towards the customer. A recent trend that is
emerging in the Indian paint market is that the major brands have all identified the importance of
reaching out to the common man instead of just limiting themselves to the intermediaries.

Advertising strategy: BERGER follows different strategy for developing its strategy. It
depends on some characteristics that is product life time, brand etc.

Media: Berger used different media for advertising like- on-air advertisement, televisions
newspaper, magazines. The dealers are educated with the company background,
products and service etc. The time to time selling incentives are given by company
according to performance of dealer and market demand. In-Store Displays: Point-of-
Purchase, Berger paints Banners, Demonstrations of color on wall, etc. are provided by the company.
Temporary Price Reduction (TPR): They get margins plus some incentives promotion scheme to
maintain the dealer. Contests: Dealer to dealer contest is kept to promote push strategy and best
dealer gets the reward. Berger paints likes to do the same within same geographic areas.
Sampling: Allowing the dealer to experience the product or service by providing free samples so as he can
promote word of mouth. Bergers sales promotion consists of short-term incentives to encourage the
purchase of sale of a product or services. Berger Paints advertising has created brand awareness,
highlighted what the brand has to offer and has consistently brought all of it top-of-the-mind for
the customer. But the outreach effort does not end there. Berger Paints has recognized the
importance of communicating to and involving key players who influence the final brand choice.
These include channel partners, contractors and painters, on whom Berger Paints focuses by
initiating and developing innovative activities and promotions. This helps build the Berger
Paints family so that customers get a high degree of personalized service and professional
guidance to facilitate their final decision.

Sales Promotion:
Sales Promotion is an important component of marketing communications mix. It adds an extra
value to the product and hence prompts the dealer or consumer to buy the product. In a specific
sense, sales promotion includes those sales activities that supplement both personal selling and
advertising, and coordinate them and make them effective, such as displays, shows,
demonstrations and other non-recurrent selling efforts not in the ordinary routine.

Sales promotion can be used:

For facilitating introduction of new products

For overcoming unique competitive situation

For unloading accumulated inventory

For overcoming seasonal slumps

For getting new accounts

For retrieving lost accounts

As a support and supplement to the advertising effort

As a support and supplement to the salesmens effort

For persuading salesmen to sell the full line of product

For persuading the dealer to buy more or increase the size of order
Commonly Used Tools and Techniques of Sales Promotion:

Demonstrations

Trade Fairs and Exhibition

Coupons, Premiums, Free offers, Price-offs, etc

Free samples

Joint promotion

Contests (consumer contests, dealer contests)

Merchandising or Display

Sales promotion on the internet

The company has been concentrating more on sales promotion than on advertising. On analyzing
the customer survey data it becomes evident that since the customer is returning to the store after
an average of about three years it is better to concentrate more on the dealers who are in the
business throughout the year. Keeping this in mind the companys decision of doing more sales
promotion than advertising stands justified. Sales promotion can broadly be divided into two
categories:

1) Customer Promotion
This section includes all the sales promotion activities directed towards the customers. Scratch
cards that are provided with specific size of packages are examples. The company comes out
with many different sales promotion schemes during the festival season, especially the Durga
Puja festival in Orissa and West Bengal. There are a number of gifts and schemes on the larger
packs. Coupons and free gifts are offered on packs of more than 10 kgs. The company also offers
a large number of services to the customers to assist them in their buying decisions.
These services are offered on the companys website to make it accessible to a very wide range
of customers.

2) Trade promotion As part of the companys policy, huge emphasis is given on trade
promotion. The dealers and contractors who are a part of the distribution chain are given special
attention. The company comes up with several incentive schemes for the dealers. The most
popular schemes include cash discounts, foreign trips and gifts such as refrigerators etc for
dealers who succeed in meeting or exceeding pre-determined sales targets. The company also
organizes regional dealer meets regularly. Here the dealers are briefed about the companys new
products and the technical details and application procedures of these products. The company
also aims at building and retaining dealer loyalty through these meetings.

Paint shows maximum growth before Festive Season

30
25
20
15 YEAR 2015
10 YEAR 2016
5
0
JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC
2.13) SALES TURNOVER FOR THE PAST TEN YEARS

Year Year Number (x) Sales turnover in crores (y)

Mar '06 1 987.91
Mar '07 2 1172.21
Mar '08 3 1346.21
Mar '09 4 1513.74
Mar '10 5 1688.68
Mar '11 6 2100.82
Mar '12 7 2300.12
Mar '13 8 2845.03
Mar '14 9 3362.36
Mar '15 10 4265.04
 About Topic:
Potential New Dealers Analysis Exploring New Business Opportunities inUdaipur city

Potential new dealers Analysis is that where the new dealers are searching for the Berger Paints
India Ltd. in Udaipur city, Rajasthan.

The main objective of this analysis is to invites more dealers for dealership with BPIL, in
Udaipur Depot, Rajasthan.

In my research I was met many dealers which are available in the market like Sanitary,
Hardware, Tiles, Steels, Cements& Putty and Paints also.

This research is not only to invite new dealers, but it is also important for aware about the Berger
Paint product and services to the new dealers.

This is the opportunity to those dealers who was not aware about the Berger Paints and doing
other business like Sanitary, Hardware etc. because its helps to expand the product categories in
the firm and also increase the profitability ratio and annual turnover of the firm.
 (3)

Research Problem
&
Background
3.1) Background
This project is all about data mapping of all alternate distribution channels by getting necessary
information. ADCs can be cement dealers, plywood dealers, sanitary shops, and as well as paint
dealers.

1) To expand their distribution channel, the company wants to create database of each and every
alternate distribution channel that are into the business of building material. This is being held
throughout the India. I was given Udaipur City Rajasthan . There I have visited the following
towns:

Ashwani Bazar
Bapu Bazar
ThokarChowrah
HiranMagri
MallaTalai
Savina
Goverdhan Villa
Shobhagpura
City Station

1. Accordingly, BERGER these towns have enough potential dealers who can be
interested in dealing with Berger Paints.

In addition to these documents various other information like the per year consumption of each
paint category, construction chemicals and wood finish were taken. These data formed the main
basis of the study. Various analysis like brand preferences, contribution of each product in the
total sales volume etc. were analyzed.

2. Company wants to explore all the opportunity in the market by making more dealers of Berger
Paints and by expanding the distribution channel.
3.2) RESEARCHPROBLEM
All the dealers of alternate distribution channels can be made paint dealers or not.
Collect the necessary database of dealers, so that accordingly the dealer should be
approached.
Convince them to be a part of Berger paints and how it can be helpful to be with
Berger Paints.
 (4)

Research Methodology
4.1) Research Objective
The prime objective of this research to find the prospective dealers through alternative
distribution channel who can be a dealer of Berger. The main objective to this research is to
map the dealer of the Udaipur city, Rajasthan.

4.2) Research Design

Dealers analysis that are in manufacturing business:
Descriptive research design

4.3) Data
1. Primary Data: Primary data collected by interviewing the different types of dealers
through alternative distribution channel.
i) Sample Area: Udaipur City
ii) Sample Size: 90
iii) Sample Unit: Dealers
iv) Sample Success: 23

2. Secondary Data:
Collected from Udaipur depot by Area Sales Manager.
Wikkipidia.com
BergerPaint.com

4.4) Sampling Instrument

A questionnaire was provided by the company for mapping the data of different types of dealers.
The questionnaire they provided was open ended and containing the straight forward questions.
4.5) Sampling Tool
Many statistical tools like,

Bar Charts
Pie Charts

It has been used in this research to derive the conclusion.

4.6) Research plan

Interviewing the prospective dealers
Collecting information and filling it up in questionnaire.
Short listing the dealers according to the information collected.
Contacting the dealers through sales representative.
Telling them about the company and persuading them to take the dealership.
Data Analysis
&
Interpretation
Location of Counter
Table 1.1

Location

Location of Frequency Percent

Counter
MAIN MARKET 35 38.04
MAIN ROAD 25 29.35
CROSS ROAD 14 15.21
BY LANE 16 17.40

Total 90 100.0

Chart Title
MAIN MARKET MAIN ROAD CROSS ROAD BY LANE

18%
38%
15%

29%

INTERPRETATION

38.04% counters are visited at main market.

29.35% counters are visited at main road.

Most of counters are at main market of town, which indicates that dealers find it useful if
counters are present at main city.

17.4% counters are visited at by lane.

 Only 15.21% of counters are visited at cross road, which indicates that there is least
availability of customers there.

Dealership Analysis
Q.1
Valid Cumulative
Frequency Percent Percent Percent
Valid Asian/Berger/Dulux 26 29.7 29.7 29.7

Asian/Berger 9 9.9 9.9 39.6

Asian/Dulux 9 9.9 9.9 49.5
Berger/Nerolac 3 3.3 3.3 52.7
Berger/Dulux 6 6.6 6.6 59.3
Berger/Dulex/Nerolac 3 3.3 3.3 62.6
Nerolack/Dulux 4 4.4 4.4 67.0
All 27 29.7 29.7 96.7
Asian/Dulex/Nerolac 3 3.3 3.3 100.0
Total 90 100.0 100.0

Interpretation
29.7% dealers acquire the counters of Asian paints in Udaipur city.
9.9% dealers acquire Asian, Berger and Dulux.
Remaining percentages acquires by dealer all paints brands.
Paints Categories Analysis

Q.2
Frequenc Valid Cumulative
y Percent Percent Percent
Valid Enamels 6 6.6 6.6 6.6
Interior/Exteri
34 37.4 37.4 44.0
or
All 51 56.0 56.0 100.0
Total 91 100.0 100.0
Interpretation:
37% dealers sale Interior and Exterior paints.
56% dealers sale all paints categories.
Remaining 7% dealers only sale Enamels paints.

Sales Analysis:

Frequenc Valid
y Percent Percent
Valid Asian 32 39.56 39.56
Berger 33 33.97 32.97
Dulux 15 16.5 16.5
Nerolac 10 11.0 11.0
Total 90 100.0 100.0

Sales Analysis
Nerolac
11%
Asian
Dulux 40%
16%
Berger
33%

Interpretation:

From the above data I was found that 40% dealers says Asian paint sale most in the
markets, while 33% dealers said about the Berger same as 12% says Dulux while 11%
says about Nerolac.
Reasons:
Q.4

Frequenc Valid Cumulative

y Percent Percent Percent
Valid Demand 24 26.4 26.4 26.4
Brand 9 9.9 9.9 36.3
Service 9 9.9 9.9 46.2
Cost
15 17.6 17.6 63.7
Benificial
Supply
12 13.2 13.2 76.9
System
Good Quality 21 23.1 23.1 100.0
Total 90 100.0 100.0
Interpretation:
In the above chart 26.37% dealers says the paint is sale is according to the consumer
demand , while 23% dealers says that the paints are sale only for the bases of good
quality.

Service Analysis:
Q.5
Frequenc Valid Cumulative
y Percent Percent Percent
Valid Asian 45 49.5 49.5 49.5
Berger 25 28.6 28.6 78.0
Dulux 20 22.0 22.0 100.0
Total 90 100.0 100.0
Interpretation:

In my research 49.45% dealers says that the Asian Paints provides good services in
comparison to others, and 29% dealers says that Berger Paints is also provides good
services in comparison to others.

Quality Analysis:

Q.6

Frequenc Valid Cumulative

y Percent Percent Percent
Valid Asian 38 41.8 41.8 41.8
Berger 25 28.6 28.6 70.3
Dulux 21 23.1 23.1 93.4
Nerolac 6 6.6 6.6 100.0
Total 90 100.0 100.0
Interpretation:

In the research I was found that the 41% dealers says Asian Paints is the leader to
provide the best quality products. While Berger has got 2nd position to provide quality
products to the dealers.

Benefit Analysis:

Q.7
Valid Cumulative
Frequency Percent Percent Percent
Valid Asian 35 39.6 39.6 39.6
Berger 27 29.7 29.7 69.2
Dulux 25 27.5 27.5 96.7
Nerolac 3 3.3 3.3 100.0
Total 90 100.0 100.0
Interpretation:
In these research I was found that dealers says the Asian Paints has provides more
benefits in comparison to other paints companies.

Distribution Analysis:
Q.8
Frequenc Valid Cumulative
y Percent Percent Percent
Valid Asian 33 36.3 36.3 36.3
Berger 39 42.9 42.9 79.1
Dulux 15 17.6 17.6 96.7
Nerolac 3 3.3 3.3 100.0
Total 90 100.0 100.0
Interpretation:
In these research I was found that the distribution channel of the Asian paints is much
faster than others paints companies

Payment mode Analysis:

Q.9
Frequenc Valid Cumulative
y Percent Percent Percent
Valid Asian 20 22.0 22.0 22.0
Berger 25 28.6 28.6 50.5
Dulux 8 8.8 8.8 59.3
Nerolac 3 3.3 3.3 62.6
All 34 37.4 37.4 100.0
Total 90 100.0 100.0
Interpretation:
In the whole research I was found the payment mode is same all the paints companies but
Berger has more effective in this segment i.e. 28.57%.
 7.10) Performance Analysis

Q.10
Cumulative
Frequency Percent Valid Percent Percent
Valid Asian 47 52.7 52.7 52.7
Berger 27 29.7 29.7 82.4
Dulux 11 12.1 12.1 94.5
Nerolac 5 5.5 5.5 100.0
Total 90 100.0 100.0

Interpretation:
In this research process I was found that Asian paints is the most leading brand in the
Udaipur City.
Asian Paints covers approx. 53% market in the Udaipur, Rajasthan.
Berger paints is only covers 29.67% market in Udaipur.
 (5)

Observations
&
Findings
5.1) Findings and Analysis

1) Perfect monopolistic market for Asian Paints.

2) Weak market captured by the Berger paints in Udaipur City.
3) Most of the dealers are interested to sell only Asian Paints products.
4) Asian Paints is the biggest competitor in the market.
5) Out of the sample surveyed, it is found that company has great opportunities in the market.
6) Most of the contractors are satisfied with the paint quality of Berger, mostly the primer.

5.2) SWOT Analysis of Berger Paints

1. Strength
With nearly one fifth market share and ranked one of the top two in India.
Strong Supply chain network spanning throughout the country with 7 manufacturing
facilities, 85 depots, 2,800 employees and over 25,000 Dealers.
It provides with high quality products and as very high market space both in terms of
visibility and sales.
Berger Paints has excellent brand perceptions and brand awareness amongst its potential
customers

2. Weakness
Dependences on decorative segments.
Market Rate Problem.
High staff Turnover.
In effective advertisement and promotional activities.
3. Opportunities
Strong growth Potential in India owing to urbanizations.
Product Diversification.
International Expansion.

4. Threats
Stiff competition.
New entrants in the industry and local companies.
Fluctuations in prices.
 (6)

Recommendation
Recommendation

Berger Paints is a preferred brand in India but on the basis of the survey there are some
fields that are yet to be more emphasized which can improve the sales volume in the near
future are stated as follows :-
Alternate distribution channel demanded for the training programs based on the new
product launches.
Berger should also concentrate on rural markets.
Dealers want to improvement in transportation at town.
It would be beneficial for the company if they can increase its sales and distribution in
villages.
Another alarming factor is that now a day Berger Paints decorative segments products
are giving less coverage as compared to earlier times. So steps should be taken to make
the quality of the paint better and thicker to satisfy the existing customers.
Shade cards should be made easily available to the contractors.
As far as the interior and exterior texture paints are concerned the versatility of the
designs should be increased and designs should be more attractive.
Booklets consisting of various wall designs as well as different shades should be made
available to the householders from where they can chose which category or quality or
design will best suit their personality.
Stalls should be given in front of the construction sites, so that when people come to see
the flats they have bought, they can be demonstrated with different kinds of wall paints
and texture designs. These prospects can be easily converted into successful sale.
 (7)

Conclusion
7.1) Conclusion

It was a good experience doing my training in totally different industry. Through this project I
became aware of paint industry and its operations.

The various findings during the project were that the market share of Berger Paints is around
30%. The major competitors of Berger are Asian Paints, ICI, Nerolac.

During the project I learned about various aspects of the paints industry. I learned about various
functions performed by the company like Business Development, Dealers perception about the
companys products and performance, channel management, margins to the dealers and various
facts of the distribution system.

There is a huge potential for the paints industry as household incomes are rising and people
prefer to innovate with newer colors in their homes. There is always demand for quality products
and Berger being a preferred brand among customers. Dealers prefer keeping this brand as it has
a sizeable demand in the market.
 (8)

Limitations and Scopes

8.1) Limitations
Survey area was confined to Udaipur City, Rajasthan.
Survey was totally confined with small and big dealers and no builder was contacted.
Time span was limited to 1 month.
Questions were mostly open ended.
There was less scope of feedback from end customers.

8.2) Future Scopes

This study can be used by the company to convert more dealers into dedicated Berger
Paints customers.

Analyses the requirements of the alternate channels and devise strategies of market
penetration.
Make a quantitative research and analysis of the effectiveness of its sales force.
Bibliography
&
Reference
Bibliography:

Marketing Management: A South Asian Perspective by PhilipKotler, Abraham Koshy,

Kevin Lane Keller, MithileswarJha.

Reference:

http://www.bergerpaints.com/
http://en.wikipedia.org/
http://www.scribd.com/

http://stockshastra.moneyworks4me.com/paints-indian-paint-industry-analysis-and-research-
report-2011/
Annexure
 Questionnaire/Data Mapping

2016

Name of the Dealer

Mr. /Ms.

Name of the Firm/Shop..

Address

Contacts Details

1. Which company Dealership do you have?

a) Berger Paint

b) Asian Paint

c) Nerolac

d) ICI Dulux

e) All of these

2. Which category of paint do you sale?

a) Interior

b) Exterior

c) Enamels

d) All
3. Which of the most selling paint brand?

a) Asian Paint

b) Berger Paint

c) Nerolac

d) ICI Dulux

4. Reason behind this?

a) Good quality of product

b) Cost beneficial

c) Service of the company

d) Brand

e) Good supply system

f) Customer Demand

5. Which Company provides you best service?

a. Asian Paint

b. Berger Paint

c. Nerolac

d. ICI Dulux
6. Who provides you the best quality products as per your view?

a) Asian Paint

b) Berger Paint

c) Nerolac

d) ICI Dulux

7. Who gives you more benefits?

a) Asian Paint

b) Berger Paint

c) Nerolac

d) ICI Dulux

8. Which paint company provide products timely basis?

a) Asian Paint

b) Berger Paint

c) Nero Lack

d) ICI Dulux
9. Which company payment mode is easy for you?

a) Asian Paint

b) Berger Paint

c) Nerolac

d) ICI Dulux

10. Which company overall performance is best?

a) Asian Paint

b) Berger Paint

c) Nerolac

d) ICI Dulux
 CONTENTS
Page No.
Acknowledgement 03
Executive Summary 04
Chapter 1: paints industry overview 06 17
Chapter 2: company profile 18 46
Chapter 3: research problem and background 47 49
Chapter 4: research methodology 50 53
(i) Primary Data: Sampling Design
1. Sample area
2. Sample size
3. Sample unit
4. Sampling technique
5. Sampling instrument

(ii) Secondary Data

Chapter 5: Data Analysis And Interpretations 54 68

Chapter 6: Observation & Findings 69 71

Recommendations

Conclusions

Limitations and Scope

References

Annexure