Capstone Main Comparison

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT
ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 7 Issue 1 (2016)
www.elkjournals.com
……………………………………………………………………………………………………………
A STUDY ON PERCEPTION OF END-USERS TOWARDS VARIOUS PAINT BRANDS

IN AHMEDABAD AND NORTH GUJARAT
PRASHANT PAREEK
Assistant Professor
Shanti Business School
Ahmedabad, Gujarat
E-Mail: prashantsp51@gmail.com
MO: 9725333945
ABSTRACT
Urbanization is an “Index of transformation from traditional rural economies to modern industrial one.” Over the
last 4-5 years; the economic growth in India reported an average growth of ~8%, leading to explosion of
urbanization & development in rural India. Also rural spending has started to outpace urban consumption trend
fuelled by a strong increase in incomes, led by rising non-farm employment opportunities and the government’s
focus on rural employment generation schemes. This has led to growth at a CAGR of 15% in last 5 years (FY07-
12) in the Indian Paint Industry which is estimated to be at `291 Bn in FY12. Even the paint volumes growth is
closely related with the GDP growth rate & has grown on an average 1.7 – 2.1x GDP. Thus, going forward with
economy revival, changing lifestyle & public aspirations, we believe the Indian Paint Industry is expected to
conservatively grow at a CAGR of 15% for next 3 years to be ~ `443billion industry by FY2015. The Paint Industry
is dominated by decorative paints (77%) & Industrial paints (23%). Emulsion, which constitutes the majority share
of decorative paints, is the fastest growing segment of the paint industry. Presently, the growth of the Indian paint
industry is being witnessed from new demand pockets, especially in Tier-II and Tier-III cities, thus, signaling the
growing acceptance of branded quality products among the masses. The growing popularity of branded quality
paints & increasing income levels of people residing in Tier-II and Tier-III cities has led to a shift in demand from
unorganized players to organized players & pushed the growth & shift towards premium paint segment i.e.
“Emulsion” category from “Distemper & Primer” Category. This research has been conducted on 400 households
of Ahmedabad, Kalol and Mehsana cities in Gujarat. Questionnaire survey method and observation method has
been used to conduct the research. The questionnaire was formed with the combination of close-ended, open-ended
and scale questions. The main objective of this study is to find out various factors that consumers consider while
purchasing paint.
Keywords: Consumption Patterns, Changing Dynamics, Indian Paint Industry, Macro level Analysis, Urbanization
1. Introduction  The organized sector comprising of

Till the Second World War the industry large and medium size units
consisted of small producers and two  The unorganized or the small scale
foreign companies. After the war, the sector.
imports stopped which led to the setting
This is in contrast to the 55% share that the
up of manufacturing facilities by local
sector commanded a few years back. Major
entrepreneurs. Still the foreign
companies in this segment include Asian
companies continued to dominate the
Paints (44% market share), Berger Paints
market, which in a way is the current
(17% market share), ICI (12% market
scenario as well. The initial decades saw
share), Goodlass Nerolac (15% market
the complete dominance of British Paint
share), Jenson Nicholson (6% market
companies such as Goodlass Walls
share), Shalimar Paints and Rajdoot Paints.
(now Goodlass Nerolac), ICI, British
The organized sector has grown at a CAGR
Paints (now Berger Paints), Jenson &
of 11.5% in the last five years (A.C.Neilson
Nicholson and Blundell &Eomite. The
Report, 2015) the unorganized sector
Indian Paints sector is valued at Rs
comprising of over 2000 units has a
6,800 crores in value terms and is very
combined market share of around 30%. The
fragmented (Dhiraj Sinha, 2015). The
major players are Asian Paints, Goodlass
current demand is estimated to be
Nerolac, Berger, ICI and Shalimar.
around 650,000 tons per annum and is
Recently, world leaders like Akzo Noble,
seasonal in nature. The per capita
PPG, DuPont and BASF have set up base in
consumption of paints in India stands at
India with product ranges such as auto
1.0-kg p.a. as compared to 1.6 kg in
refinishes powders and industrial coatings.
China and 22 kg in the developed
Kansai Paints of Japan, which entered into
economies. India's share in the world
collaboration with Goodlass Nerolac in
paint market is just 0.6%.
1984, is now the holding company for
The Indian Paint industry can be Goodlass Nerolac with 64.52 % equity
divided as: holding.
PPG has a joint venture with Asian Paints petro-based products, thus lowering the
to manufacture industrial coatings. Jenson excise incidence further.
& Nicholson and Snowcem India are no With the changing landscape of Indian Paint
longer active players because of dwindling Industry – from B2B to B2C, Organized
sales in recent years. In the 1990s, helped players have aggressively taken marketing
by a growing economy, the paint industry initiatives –to involve customers in paint
had recorded a healthy growth of 12-13 % selection process , creating awareness of
annually. This was mainly due to a drastic product differentiating features like Zero
reduction in excise from a staggering 40% VOC, Low VOC, lead free & eco-friendly
to 16%. However, the growth was restricted products, opening customer friendly
in 2000-03 to single digits. There was a concept stores like “Colour World,
revival in 2003-2004 with a robust growth Impression Stores, Kids World“ for
of 13%.The per capita consumption of paint customers to touch & feel “ Textures,
in India is 700 grams against 19 kg in the designs, Glow & Disney themes” &
U.S., and 2.7 kg and 5.8 kg in other providing unique professional services of
developing countries like China and Brazil. product consultancy and colour consultancy
As the consumption goes with affordability, through “Home Solutions & Home
the low Indian figure is not a surprise. High Stylers”, Interactive Call Centre &
excise duties, low technology and low Simulation Software based websites ,
capital costs for production led to the Social Media Campaigns on Face Book &
incidence of a high number of units in the Twitter etc have assisted in creating &
small scale sector. However, since 1992 the meeting the demand related to lifestyle
government has been consistently lowering conscious people to upgrade & change
duties from 40.5% in 1992 to around 16% customer preferences. We believe such
currently. This has led to lowering of price marketing initiatives with aggressive
differential between the organized and advertising spends would go a long way in
unorganized sector. Moreover the paints creating a strong brand image & customer
sector was also allowed to claim Modified loyalty paving way for rapid penetration &
Value Added Tax (MODVAT) credit on Shift in favour of Organized players vs.
Unorganized players in Tier II & Tier III (2.3) Research Design:

cities. This study synthesizes both research
designs i.e. Exploratory and Descriptive
2. Research Methodology (2.4) Research Tool:
(2.1) Literature Review Investigator Administered Questionnaire
It was a live industrial project where (2.5) Method of Data Collection:
in the review material was provided  Primary Data: It was collected
by the funding organization thus it through investigator administered
was not allowed to reveal the questionnaire from 400 respondents
sources of secondary data analysis. of Ahmedabad, Kalol and Mehsana
Some reports of leading paint  Secondary Data: It was collected
brands like Asian paints, Berger from websites of various paint
paints, Nerolac paints etc are brands, news papers, Journals, trade
mentioned in the reference magazines and general web sources
(2.2) Research Objectives: etc.
 To check awareness level of various

(2.6) Sampling:
Paint Brands among people
 Sampling Technique: Non
 To know the importance of painter
Probability sampling with
and dealer role in customer decision
Convenience sampling technique
making
was being utilized for this study.
 To know how various trade schemes
Even the three cities i.e.
provided by different paint
Ahmedabad, Kalol and Mehsana
companies affect customers’ decision were being selected on the basis
 To understand the preference and of Convenience
choice of customers regarding  Sample size:
different paint brands Ahmedabad 200
 To understand how consumption
Kalol 100
pattern of customers differ in
Mehsana 100
Ahmedabad, Kalol, and Mehsana
3.2 Which company’s paint you have

used at your home most recently?
 Sample Unit: Sample Unit is
households from Ahmedabad, (Refer Figure 1 Here)
Kalol and Mehsana (North
Gujarat) From the above chart it can be inferred that
(2.7) Scope of the study in Ahmedabad city the consumption of
This study covers three cities of Gujarat Berger paint is highest followed by Asian
state i.e. Ahmedabad, Kalol, and paints, In Kalol and Mehsana Asian paints
Mehsana. In these cities 400 respondents is topping the chart in terms of
were being sampled for this study. consumption.
Conceptually this study aims to present a
macro level understanding of Indian Paint 3.3 Time Interval of re-painting the
Industry with focus on how consumption House?
patterns differ within these three cities. (Refer Figure 2 Here)
(2.8) Limitation of the Study
Survey area was confined only to three In all three territories where in this study
had been undertaken it was found that
cities of Gujarat State which were
generally people paint their places at the
selected on the basis of convenience of time interval of 4 to 5 years.
the investigator. Thus the limitation of
3.4 How you Purchase paint brands?
convenience sampling technique is
(Refer Figure 3 Here)
evident in this study.
3. Data Analysis and Interpretation
From the above chart it can be inferred that
(3.1) Frequency of respondents painter’s recommendation plays a major
(Refer Table 1 Here) role in decision on which paint brand to be
used.
From above table, we can see that there
were total 400 respondents 200, 100, 100
3.5 Which company's paint you have
from Ahmedabad, Kalol and Mehsana
used at your home? * Do you consider
respectively.
Painter's recommendation while
purchase a paint?
(Refer Table 2 Here) 3.8 Which company's paint you have

used at your home? * Had you
considered relatives/neighbour
From the above table it can be inferred that recommendations while purchasing a
paint brand?
people take into account painter’s
recommendation while deciding on the (Refer Table 4 Here)
paint brand to be used. Out of total 400
From the above cross tabulation it can be
respondents we found that 212 had used
inferred that recommendation of relatives.
Asian paints to colour their homes and out
Friends and neighbours also play a pivotal
of these 212 respondents 172 respondents
role when it comes to purchase of a paint
decided to use Asian paints based on the
brand. Out of our 400 respondents 354 were
recommendations from the painter.
of the view that they had considered the
recommendations of relatives and
3.6 Which company's paint you have
used at your home? * Which company's neighbours in purchase of paint brand.
paint would you like to use the most?
(Refer Figure 4 Here) 3.9 Which company's paint you have

considered various Sales Promotion
3.7 Which company's paint you have schemes while purchasing a paint brand?
considered advertisement while (Refer Table 5 Here)
purchasing a paint brand?
From the above table it can be inferred
(Refer Table 3 Here)
that sales promotion schemes attract
customers towards a paint brand. Since
From the above table it can be inferred that in our sample size of 400 we found 212
Advertisement (i.e. T.V, Print, OOH, Radio respondents had used Asian paint and
etc) influence people when it comes to out of these 212 respondents 202 had
purchase of a paint brand. In our study 117 used it because of it sales promotion
respondents had used Berger paints and out schemes.
of these 102 had purchased it because of its 3.10 In future which company's paint will
you prefer to use?
Advertisement.
(Refer Table 6 Here)
paints. Dealers and painters are the

From the above table it can be inferred that
biggest opinion leaders for the end
whatever paint brand people had used
users their recommendations are being
during their last purchase but in future out
adhered by the people while deciding
of 400 respondents 190 will prefer to use
on the paint brand. Awareness and
Asian paints. 154 will prefer to use Berger
actual usage for a paint brand may
paints. It can also be understood as how the
differ i.e. in the survey 397 respondents
dynamics will change in near future because
were aware of Asian paints but 212
the current scenario says that 212
have actually used it in their house. The
respondents had used Asian paint but only
biggest reason why Asian paints is a
190 will return to the brand again. On the
market leader is its distribution
other hand 117 respondents had used Berger
channel, Asian has managed to develop
paints and 154 will prefer to use the brand
a well penetrated network even in tier
in near future.
II and III cities of Gujarat. Other
3.11 People’s satisfaction level for paint brands such as Berger paints and
brand they have used? Nerolac are slowly strengthening their
(Refer Table 7 Here) network in small cities. Advertisement
From the above table it can be inferred and sales promotion schemes play a
that whatever brand our respondents key role in influencing the people to
had used, out of 400 respondents 108 purchase a paint brand.
are satisfied with their brand of paint. 99

are highly satisfied with their brand of Asian paints, Berger paints, Nerolac,
paint and 69 respondents were highly deluxe paints, Shalimar etc are the
dissatisfied with their brand of paint. paint brands with high awareness
among people and among these brands
4. Key Finding Asian paints and Berger are top two
From the data analysis it can be brands in terms of awareness and
inferred that Asian paints is market usage.
leader in terms of awareness, usage and

recommendations followed by Berger
5. Conclusion Indian housing sectors boom, increasing

urbanization had made easy availability of
During this study it was observed that there
housing loans and a shift from semi-
are various players in Indian market in
permanent to permanent housing structures
decorative paint segment. But there is a lot
have been driving growth in the decorative
of scope for its improvement in the level of
paints segment accounting for nearly 65-
customer service provided by the
70% of the Indian paint industry. Seasons
companies.
are also involved in the demand for
 It is recommended that various
decorative paints, where consumption
paint brands should increase their
peaks around festive time.
awareness level in Kalol town
References
through increase in Advertisement
 It is also recommended that paint 1. Credit Suisse, Paint and Coatings: A
Brief Industry Summary, December 4,
brands should increase their dealer 2014
network in Kalol and Mehsana
2. Product Care Association, website:
 Various paint brands should focus http://www.productcare.org/index.html
on influencing Painters and Dealers , April 4, 2015
because in paint industry Painter’s 3. About Berger Philosophy . (n.d.).
and Dealer are very important to Retrieved 2015, from Berger Paints India
recommend product to customer Limited. (n.d.). Retrieved from
 Paint brands should conduct www.bergerpaints.com:
meetings and training programme http://www.bergerpaints.com/id/90/Com
for painters and dealers on regular pany-Profile
interval 4. Booklets of Asian Paints, Berger, Deluxe,
 Advertisement, sales promotion, Nerolac, Accessed from the Dealers
5. Indian Mirror, website
positive word of mouth from
http://www.indianmirror.com/indian-
relatives and neighbours are the industries/paint.html, accessed on 1st
major influencing factors in January 2015
purchase of a paint brand
6. Equity Master, website Analysis-Report.asp, accessed on 1st

https://www.equitymaster.com/research- January 2015
it/sector-info/paint/Paints-Sector-
List of Tables:
Table 1: Frequency of respondents
Frequency Percent Valid Percent Cumulative Percent
Valid Ahmedabad 200 50.0 50.0 50.0
Kalol 100 25.0 25.0 75.0
Mehsana 100 25.0 25.0 100.0
Total 400 100.0 100.0
Table 2: Which company's paint you have used at your home? * Do you consider Painter's
recommendation while purchase a paint?
Do you consider Painter's

recommendation while
purchase a paint?
Yes No Total
Which company's paint Berger Paints 78 39 117

you have used at your
Asian Paints 172 40 212
home?
Nerolac Paints 29 11 40
Delux Paints 17 6 23
Sherwin William Paints 1 0 1
Other 6 1 7
Total 303 97 400

Table 3: Which company's paint you have used at your home? * Had you considered
advertisement while purchasing a paint brand?
Would you consider advertisement

while purchasing a paint brand?
Yes No Total
Which company's paint you Berger Paints 102 15 117

have used at your home?
Other 3 4 7
Total 314 86 400
relatives/neighbour recommendations while purchasing a paint brand?
Would you consider

relatives/neighbor recommendations
while purchasing a paint brand?
Yes No Total

Other 4 3 7
Total 354 46 400

various Sales Promotion schemes while purchasing a paint brand?
Would you consider various

promo/non-promo schemes while
purchasing a paint brand?
Yes No Total

Other 7 0 7
Total 384 16 400
Table 6: In future which company's paint will you prefer to use?
Cumulative
Frequency Percent Valid Percent Percent
Valid Berger Paints 154 38.5 38.5 38.5
Asian Paints 190 47.5 47.5 86.0
Nerolac Paints 35 8.8 8.8 94.8
Delux Paints 21 5.2 5.2 100.0
Total 400 100.0 100.0

Table 7: People’s satisfaction level for paint brand they have used?
Cumulative
Frequency Percent Valid Percent Percent
Valid Highly
69 17.2 17.2 17.2
Dissatisfied
Dissatisfied 78 19.5 19.5 36.8
Moderate 46 11.5 11.5 48.2
Satisfied 108 27.0 27.0 75.2
Highly
99 24.8 24.8 100.0
satisfied
Total 400 100.0 100.0
List of Figures
Figure 1 : Which company’s paint you have used at your home most recently?
Figure 2: Time Interval of re-painting the House?
Figure 3: How you Purchase paint brands?

Figure 4: Which company's paint you have used at your home? * Which company's paint
would you like to use the most?
Figure 5: Structural Representation of Indian Paint Industry

Figure 6: Functioning of Paint Companies through a Pictorial Diagram
MAJOR INPUTS MAJOR PRODUCTS END USERS
RAW DECORATIVE
PRODUCTS: HOUSEHOLDS,
MATERIAL
PAINTS, CONSTRUCTION
(56%) FIRMS
EMULSIONS,
VARNISHES, (70%)
DISTEMPER, WOOD
FINISH, METAL
FINISH,
SELLING SPECIALIZED
AND PAINTS (WEATHER
ADMINISTR
ATION
EXPENSES INDUSTRIAL
(22%) PRODUCTS: AUTOMOBILE
POWDER OEMs,
COATING, CONSUMER
EMPLOYEE SURFACE GOODS,
COST COATING, FLOOR MANUFACTURE
(22%) COATING, HIGH RSM MARINE
PERFORMANCE INDUSTRIES
COATINGS,
SPECIALIZED
COATINGS

Capstone Main Comparison

Enviado por

Dados do documento

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Capstone Main Comparison

Enviado por

Direitos autorais:

Formatos disponíveis

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 7 Issue 1 (2016)

A STUDY ON PERCEPTION OF END-USERS TOWARDS VARIOUS PAINT BRANDS

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 7 Issue 1 (2016)

1. Introduction  The organized sector comprising of

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 7 Issue 1 (2016)

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 7 Issue 1 (2016)

Unorganized players in Tier II & Tier III (2.3) Research Design:

 To check awareness level of various

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 7 Issue 1 (2016)

3.2 Which company’s paint you have

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 7 Issue 1 (2016)

(Refer Table 2 Here) 3.8 Which company's paint you have

(Refer Figure 4 Here) 3.9 Which company's paint you have

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 7 Issue 1 (2016)

paints. Dealers and painters are the

had used, out of 400 respondents 108 purchase a paint brand.

are satisfied with their brand of paint. 99

From the data analysis it can be brands in terms of awareness and

inferred that Asian paints is market usage.

leader in terms of awareness, usage and

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 7 Issue 1 (2016)

5. Conclusion Indian housing sectors boom, increasing

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 7 Issue 1 (2016)

6. Equity Master, website Analysis-Report.asp, accessed on 1st

Table 1: Frequency of respondents

Frequency Percent Valid Percent Cumulative Percent

Valid Ahmedabad 200 50.0 50.0 50.0

Kalol 100 25.0 25.0 75.0

Mehsana 100 25.0 25.0 100.0

Total 400 100.0 100.0

Do you consider Painter's

Which company's paint Berger Paints 78 39 117

Sherwin William Paints 1 0 1

Total 303 97 400

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 7 Issue 1 (2016)

Would you consider advertisement

Which company's paint you Berger Paints 102 15 117

Sherwin William Paints 1 0 1

Total 314 86 400

Would you consider

Which company's paint you Berger Paints 111 6 117

Sherwin William Paints 1 0 1

Total 354 46 400

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 7 Issue 1 (2016)

Would you consider various

Which company's paint you Berger Paints 113 4 117

Sherwin William Paints 1 0 1

Total 384 16 400

Table 6: In future which company's paint will you prefer to use?

Valid Berger Paints 154 38.5 38.5 38.5

Asian Paints 190 47.5 47.5 86.0

Nerolac Paints 35 8.8 8.8 94.8

Delux Paints 21 5.2 5.2 100.0

Total 400 100.0 100.0

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 7 Issue 1 (2016)

Dissatisfied 78 19.5 19.5 36.8

Moderate 46 11.5 11.5 48.2

Satisfied 108 27.0 27.0 75.2

Total 400 100.0 100.0

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 7 Issue 1 (2016)

Figure 2: Time Interval of re-painting the House?

Figure 3: How you Purchase paint brands?

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 7 Issue 1 (2016)