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ICI Paints Pakistan Limited

A Dissertation

By Ahsan Rashid

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Table of Contents

PAINT INDUSTRY IN PAKISTAN....................................................................................4

Growth in Paint Industry..........................................................................................4

COMPANY PROFILE......................................................................................................6

ICI Pakistan Limited.................................................................................................6

History..................................................................................................................6

ICI Paints.................................................................................................................8

PEST ANALYSIS......................................................................................................... 10

PORTERS’S FIVE FORCES MODEL OF COMPETITION..................................................12

MARKET ANALYSIS: ICI WEATHERSHIELD..................................................................15

PROBLEM DEFINITION...............................................................................................16

FACTORS INFLUENCING DEMAND.............................................................................17

COMPETITOR ANALYSIS............................................................................................19

Sale Of Fake Paint................................................................................................. 20

MARKET POSITIONING:............................................................................................. 21

BCG Matrix............................................................................................................ 21

SWOT ANALYSIS.......................................................................................................23

MARKETING-MIX STRATEGY......................................................................................26

ICI WEATHERSHIELD’S MARKETING-MIX STRATEGY...............................................27

Product............................................................................................................... 27

Price...................................................................................................................30

Placement / Distribution.....................................................................................31

Promotion...........................................................................................................34

DECISION PROBLEM..................................................................................................39

RESEARCH PROBLEM/QUESTIONS.............................................................................39
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RESEARCH OBJECTIVES............................................................................................39

HYPOTHESIS.............................................................................................................39

REVIEW OF LITERATURE...........................................................................................41

LIST OF QUESTIONS..................................................................................................42

RESEARCH PROPOSAL..............................................................................................44

SAMPLING PLAN........................................................................................................49

DESCRIPTION OF ACTIONS........................................................................................51

QUESTIONNAIRE FOR CONSUMERS (A).....................................................................52

QUESTIONNAIRE FOR DEALERS/PAINTERS (B)..........................................................57

SURVEY ANALYSIS.................................................................................................... 63

Quality & Reliability...............................................................................................63

Factors responsible for selection...........................................................................73

Token Incentives...................................................................................................77

Price Discounts & Motivational Incentives.............................................................80

Fake Paint..............................................................................................................83

SUMMARY OF FINDINGS............................................................................................93

CONCLUSION & RECOMMENDATIONS.......................................................................95


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PAINT INDUSTRY IN PAKISTAN


The paint industry in Pakistan operates both in the organized as well as the unorganized sectors.
There are around 22 paint producing units in the organized sector. There are two multinational
companies also in the organizational sector. According to an estimate, over 350 units producing
paints are operating in the unorganized sector. Many of them are also not covered under the
excise net in the same way as the organized sector and therefore, are in a better position to
compete in the local market. According to the latest findings of Federal Bureau of Statistics,
around 30,000,000 liters of paint was produced from 87 units. Pakistan Paint Manufacturers
Association (PPMA) represents the organized units in the paint sector.

Paint is categorized in two broad classes; namely water based paint and solvent based paint. The
industries produce a wide range of finished and intermediate products which include pigments,
distempers, plastic emulsion, enamel, undercoat, primers, rubber paint, aircraft paint, marine
paint, anticorrosive paint, anti fouling paint, etc.

Growth in Paint Industry


The demand for paints is derived from expansion in construction, building, manufacturing,
transport and other sectors. The country has yet to go a long way in its development efforts.
There appears to be a sizable potential for further strides in the country’s paint industry.
Moreover, the development of chemical industry is also taking place and therefore, most of the
raw materials used by the paint industry are expected to be produced and manufactured locally
during the next five years. The paint industry would thus find cheaper raw material for further
expansion and growth.

There are huge opportunities for the growth of paint industry in Pakistan. But due to Economical
recessions and unstable Political conditions this industry has declined. Pakistan is currently
experiencing a GDP growth rate of 3.5-4.5%. Meanwhile the paint industry is witnessing a 6-8%
growth rate. This high growth can be attributed to the current boom in both the automotive as
well as the construction industry.

However if we see the data below, it can be easily said that there is still great potential for
growth in the paint industry in Pakistan.
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Per Capita Consumtion [Paints]


0.5 Liters Pakistan
8 - 10 Liters Singapore
4 Liters Brazil

The table above shows a comparison of the per capita consumption of paints in Pakistan,
Singapore and Brazil. Thus it can be seen that Pakistan is way behind with only 0.3 Liters of
consumption from these more developed countries.
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COMPANY PROFILE
ICI Pakistan Limited
ICI Pakistan Limited (Imperial Chemical Industries) is located in Karachi, Pakistan. The
company was subsidiary of ICI Plc United Kingdom but with worldwide takeover of ICI PLC
by AKZO NOBEL now AKZO NOBEL is 75.81% stake holder of ICI PAKISTAN. It was set up
as a public limited company in Pakistan in 1952. The ICI Group is a renowned international
business. It employs approximately 31,000 people worldwide.

The vision of ICI is to be the leader in formulation science. It has, and continues to develop, a
portfolio of businesses that are major players within their respective industries, bringing together
outstanding knowledge of customer needs with leading edge technology platforms to provide
superior products to its customers.

Through these attributes, it aims to create superior value for ICI customers and shareholders,
without compromising its commitment to safety, health, environment and the communities in
which it operates.

ICI Pakistan Limited is involved in various businesses including:

 Polyester Fibers

 Soda Ash

 Paints

 Chemicals

 Pharmaceuticals

History

1944
The Khewra Soda Ash Company, a predecessor of ICI Pakistan Limited, set up a soda ash
manufacturing facility in Khewra with a capacity of 18,000 tonnes per annum. This facility was
sited next to the salt range as rock salt and limestone, two key raw materials needed for
manufacturing soda ash, were available here in abundance.

1953
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The Khewra Soda Ash company was incorporated as a public limited company.

1966
The Khewra Soda Ash Company changed its name to ICI Pakistan Manufacturers Limited.

Over the next few decades, major changes took place in the company as our Specialty Chemicals
and Polyester plants were commissioned, and Imperial Chemical Industries (Pakistan) Private
Limited and Paintex Limited both merged into ICI Pakistan Manufacturers Limited.

1987
We changed our name to ICI Pakistan Limited

We launch our Seeds business as well as the Dulux range of coatings.

We also established ICI Pakistan PowerGen and set up the ICI Pakistan Foundation as a
charitable trust.

1995
We set up a USD 490 million PTA manufacturing facility at Port Qasim, near Karachi.

1998
PTA manufacturing facility commissioned.

2000
The business was de-merged to form Pakistan PTA Limited, which was at the time a subsidiary
of ICI Plc UK.

2007
We completed 50 years of continuous listing on the Karachi Stock Exchange.

2008
We formally became part of the AkzoNobel Group, bringing us under the banner of one of the
largest coatings and chemicals companies in the world.
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ICI Paints

"The ICI Paints team intends to remain market leaders in the Paints Business. We
wish to be recognized for offering the best products and excellent customer
service. We will run a high quality, profitable and growth oriented business in an
exciting and safe environment."
[Mission Statement]

The ICI Paint business can be divided into three categories

 Industrial

 Automotive

 Decorative

All the three business have embarked on programs which focus on the consumer and customer
needs. The focus is to understand the needs of the major stakeholders. Pursuing research, market
understanding and delivering high quality product and services forms the nucleus of creating a
competitive advantage in the market place for the paints business.

The Industry & Automotives coatings business of ICI paints besides gaining strength in the local
market also aspires to become a regional player. Self leveling epoxy floor coatings have been the
new addition in the product portfolio and have been well received by major customers. After the
initial success of the Turn-Key project management concept with one of the leading customers
where a one shop solution in terms of design, fabrication and commissioning of automotive
paints is done by ICI, the business is now offering it to other customers also.

The Decorative segment of the business is driving a strategy of providing a super premium range
of products with a wide color range under the Dulux brand that fulfill the growing needs of the
market. Pentalite Classis was the first launch in this category. A super premium plastic emulsion
with five properties of resisting hairline cracks, high scrub resistance, and better flow, anti fungal
and luxurious finish was very well received by the consumers, architects and painting
professionals.
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After its initial success in the furniture market segment the Dulux Woodcare range is now
available in the retail segment also. In one stroke the consumer can now get the shade of wood
that he or she wants.

Expanding and improving service levels have been the major thrusts of the Decorative business.
After the great success of the first color studio in Karachi a second color studio was opened in
Islamabad. Now consumers in Islamabad also have the platform to experiment with colors, come
up with new contrasts and combinations that reflect their persona and lifestyle projecting their
color aspirations into their living environments. The housing and the color consultancy team has
been re-structured with more feet on the street and proper training to help consumers with new
color trends and interior design solutions.

According to the latest survey conducted by ICI Paints the entire market for decorative paints is
210 Million Liters. This market can be subdivided into two categories – the organized market
and the un-organized market. The organized market refers mainly to the market that purchases
decorative paints from paint manufacturers and equals 73 Million Liters. The unorganized
market on the other hand constitutes of the market which uses paint substitutes for decorations
and equals 137 Million Liters.

DECORATIVE
PAINT MARKET
210 Million Liters

ORGANIZED
35%
UNORGANIZED 73 Million Liters

65%
137 Million Liters

The organized market can be further divided into three categories based upon the various
qualities of paint being manufactured. These categories include:

 Premium
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 Mid-Tier

 Low-Tier

PEST ANALYSIS

Political-Legal factors:-

• Political Instability

Since the independence in 1947, Pakistan has continuously faced political instability. The
political instability has led to uncertain environment in the country, which is a threat for
any business including ICI Paints.

• Inconsistency in Rules & Regulations

The rules and regulations are changed quite frequently due to changes in the government
that effects the business flow for any company. E.g The last government had introduced
subsides for the chemical sector but now the current government is planning to finish all
subsides.

• Law & Order Situation

The law and order situation is crucial as it has causes serious disruption on business
activity. The suicide bombing and military operations have had an adverse effect on the
confidence of foreign investors.

• Taxation Laws

The government is providing relief to the paint industry. There is a 10% reduction in the
central excise duty on paint products.

Economic factors:-

• Economic Situation
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Economic conditions are not very sound. The rising political instability has led to
economic instability as well.

• Inflation

Inflation remains the biggest threat to the economy. The surge in global petrol prices and
thus local petrol prices hurt the buying power of consumers that reduced the demand for
products. Due to inflation the cost of doing business has also gone higher. If Pakistan
keeps on getting better grants and loan waivers or if any other economy boosting factors
such as controlled inflation rate and economic growth take place, it will benefit the entire
industry including ICI Paints.

• Unemployment

The unemployment rate is going up and up which has increase the level of poverty thus
further reducing the buying power of the people.

Social-Cultural factors:-

• Western Life Style

Increasing globalization has amplified the influence of “Western Culture” in Pakistan.


The lifestyle of Pakistani people is changing rapidly. People are more conscious about
their houses presentation.

• Population

To meet the demands of a rapidly increasing population, there is an increase in the


number of construction projects in Pakistan which is a positive sign for ICI Paints.

Technological factors:-

• Latest Technologies

Companies have technology with which they can have a competitive advantage in the
Pakistani market. Companies are investing in the their infrastructure to not only expand
but also to upgrade their existing structure.

• Paint Industry Technology


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The current focus in paint industry is now on creating paints and coats that preserve and
protect the environment while beautifying our surroundings.

PORTERS’S FIVE FORCES MODEL OF COMPETITION


The threat of substitute products
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• Although products such as distemper (choona), wallpaper, tiles etc are available but
customers are not likely to substitute them for paints as it would compromise on quality
and at the same time would not server the purpose.

• The growing share of companies in the unorganized sector provide a low price substitute.

The threat of the entry of new competitors

• With regard to the paint industry in Pakistan, there is a high threat of new entrants.
The main reason for this being low entry barriers, as there is no requirement of high
capital investment to enter the paint business.

• Also, there are no proprietary product difference and low switching costs which puts
the phrase “brand loyalty” into jeopardy.

• What make the paint industry attractive for newcomers is also the ease of acquiring
skilled people, material and supplies. Moreover, lack of long term contracts also
contributes towards the attractiveness of the industry for the newcomers.

• However, there are established brand identities as well as consolidated distribution


channels to be accessed which would result in strong retaliation to be faced by the
newcomers.

• Such is an example of Nippon who set up its business in Pakistan recently.

The Bargaining power of customers

• Bargaining power of the intermediaries is high because the industry is divided into the
structured and unstructured market and does not act as a unified whole to leverage the
bargaining power in its favor.

• Therefore the more the channel sells each product, the higher the margin they keep for
the company.

• The bargaining power of end users however, is low because there a large number of
buyers, each with relatively small purchases.

• In addition to this, the organized paint sector has also accepted branding which creates
loyalty and decreases the price sensitivity, resulting in low bargaining power of buyers.

The Bargaining power of suppliers

• Bargaining power of suppliers is low in the decorative segment as inputs required are
commodities and there a number of suppliers available who are fighting for a small
market.
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• However, since big companies fight on the “quality” dimension and cannot switch their
suppliers are in a position to negotiate their terms upon providing the desired raw
material which makes the overall bargaining power of suppliers moderate.

The Intensity of competitive rivalry

• The paint industry can be characterized as a fragmented industry divided into the
organized and unorganized sector.

• The unorganized structure is the biggest threat for established brands.


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MARKET ANALYSIS: ICI WEATHERSHIELD
The decorative paint market can be divided into two broad categories interior and exterior. The
interior market as the name suggests refers to the paints being used for indoor decorations.
Similarly the exterior market corresponds to the paints being used to decorate the outdoors.

The exterior market of paints in Pakistan is of 7 Million Liters. ICI dominates the market share
with 4.2 Million Liters with its Weathershield.

MARKETSHARE ICI
Berger
20%
Others

20% 60%
4.2Million Liters

Currently ICI has a 60% market share with its major competitor being Berger. Berger has a 20%
market share followed by a 20% share by smaller brands which include Berger, Blackhorse,
Silversand, Master, Nippon, Gobi, Hapilac etc.

ICI with its Weathershield technology is leading the premium market for exterior paints. The
Weathershield system provides full-protection to the exterior of the house against natural wear
and tear. The Weathershield protection is said to last for up to 5 years.
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PROBLEM DEFINITION
In 1973, ICI launched its Weathershield technology in UK. The
Weathershield technology reached Pakistan in 1984. In March 2007 ICI
Paints added a new product ‘Weathershield Fresh’ to its Weathershield
range. With the launch of this new product ICI was hopeful to capture 70
– 80 % of the market share but only managed to increase its share to 60%.

Therefore the problem of this study is to determine how the market


share of ICI Weathershield could be increased from 60% to 70%.
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FACTORS INFLUENCING DEMAND
ICI Weathershield being a premier paint targets mainly the urban areas of Pakistan. It focuses
primarily on households. Unlike the usual products where the decision-maker is the final
consumer, painters and contractors also have the ability to influence the decision making
process.

A study was done by ICI Paints in 2009 to determine the forces responsible in influencing a
customer. The study revealed the following results.

FACTORS INFLUENCING CONSUMERS

4% Own Experience
17%
44%
Family / Friends
11%
Advertisements

24% Painter / Contractor

Retail Outlet

Thus the market for ICI Paints can be divided into five major market segments. These segments
include:

 Dealers

 Retailers

 Contractors

 Painters

 Consumers

Factors influencing the level of demand


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

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

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

• Rising inflation can cause decrease in the purchasing power of the people.
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COMPETITOR ANALYSIS
ICI Weathershield is leading the exterior market for paints with a 60% market share. Berger is
the only other competitor that also deals in premium quality paints. Berger has a 20% market
share followed by a 20% share by smaller brands which include Berger, Blackhorse, Silversand,
Master, Nippon, Gobi, Hapilac etc.

MARKETSHARE ICI
Berger
20%
Others

20% 60%
4.2Million Liters

ICI Weathershield dictates prices in the exterior market. All the competitors including the
smaller players follow the same pricing strategies. The price of ICI Weathershield is 5% more
than that of Berger’s Weathercoat.

Berger has still to come-up with a product to compete with the new Weathershield Fresh which
comes with an added feature to repel dust. The new ICI Weathershield is also available in a lot
more colors than any other exterior paint in the market. Thus Berger is lagging behind in its
product development strategies.

Recently, all the other paint providers besides ICI have developed a new strategy to give
incentives to painters and contractors by offering them discount-tokens. These tokens vary from
a discount of Rs. 50 – Rs. 300. As these painters and contractors have a significant influence
over the consumer in choosing which paint to use, this token scheme has helped boost up their
sales significantly.

However ICI Weathershield believes in focusing on the end-consumers instead of giving tokens
to contractors. It believes that this will help develop long-term loyalty from its consumers
resulting in repeat sales.
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Sale Of Fake Paint
All personnel interviewed expressed their firm opinion that at least 20% of the paint sold in the
local market is “fake paint” sold under popular brand names. Since ICI Weathershield is the
most popular brand for the exterior paint, the percentage of fake paint sold under its brand name
is even higher. Although ICI Paints has a large number of authorized dealers and most of these
dealers are loyal to the company, however the general public is not completely aware of how to
differentiate the genuine dealers. Also some of these authorized dealers are not quite as loyal and
ICI Paints has occasionally received complaints in this regard, which have been adequately dealt
with. In addition the ICI paint products including the Weathershield is also being sold by other
shopkeepers who are not authorized dealers. Paint purchased through these shops has even lower
credibility.

ICI Weathershield is supplied in metal containers, which are not sealed in any foolproof fashion.
The containers are also not printed and instead a printed wrapper is pasted onto the containers.
This makes it easier for the persons who are in fake paint business. Also it is very easy for the
shopkeepers to fill up ICI containers with cheaper alternate brands and the consumer may only
see the adverse results on long term period. There have been instances when ICI Weathershield
wrappers have been stolen from the premises of the wrapper printers. It is also a normal practice
that as soon as a consumer brings home ICI Weathershield paint, the first thing the painters do is
to remove printed wrappers in order to sell them.

The customers are generally dependent upon the advice and assistance of the Painters or Painting
Contractors in the selection and purchase of the paint. Even when the purchase has been made
very carefully, the purchased paint is largely in the custody of the Painters and they have ample
opportunity to maneuver.
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MARKET POSITIONING:
In order to better understand how to increase the market share of ICI Weathershield, we have to
position the brand with its direct competitors. That is best demonstrated with the help of the
BCG matrix.

BCG Matrix
The BCG matrix categorizes brands according to two parameters, the rate of market growth and
the relative market share. There are four categories under which brands may fall:

• Star: High market growth & high relative market share.

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

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

• Dog: Low market growth & low relative market share.

The market positioning of ICI Weathershield and its direct competitors is shown in the diagram
below. As it can be seen ICI Weather shield has high market share and high relative market
share, therefore it is categorized as Star.

M
A
R STAR QUESTION MARK
K
E ICI PAINTS NIPPON PAINTS
HIGH
T

G
R CASH COW
O DOG
W BERGER AND
T LOW ROYAL PAINTS
MASTER PAINTS
H

HIGH LOW

RELATIVE MARKET SHARE


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The purpose of the BCG matrix is to help devise a strategy in order to help resolve the problem
of increasing the market share from 60% to 70%.

Strategies under BCG matrix:

The various strategies available to improve the market position of a brand are as below:

• Differentiation Strategy:

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

• Cost Leadership Strategy:

Under this strategy the product or service is provided at the lowest possible cost so that it
higher margins may be earned by the company.

• Focus Strategy:

This strategy gives importance to focus on the customer/ target market; identifying and
serving them better.

ICI Weathershield is at present following the differentiation and focus strategies. Although
controlling costs is an important matter, ICI Weathershield does not believe in comprising its
quality. That would be detrimental to its leadership position in the market. Also the number of
household users is greater than the number of corporations within the country and contractors
always use the brand demanded by their consumers. For this reason the brand employs
differentiation and focus strategies.

These strategies suit the present situation of ICI Weathershield and therefore should be
continued.
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SWOT ANALYSIS
Another method of analyzing a brand’s competitiveness is through the assessment of internal
strengths (S) and weaknesses (W), as well as environmental opportunities (O) and threats (T).

As Berger paint is holding the second highest market position after ICI Weathershield, SWOT
analysis of both ICI Paints and Berger Paints has been conducted below.
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STRENGTHS

ICI Paints Berger Paints


• Brand Name. • Gained reasonable market share in very
• More than 80 years of experience in the short time period.
paints industry. • Comparatively fast supply of products.
• Multinational Company. • Having 2 manufacturing plants as ICI had
• World renowned chemicals and paints only 1 which helped in improving the
manufacturers. delivery of goods.
• Having production setup in more than 55 • Good discounts and incentives for
countries. business partners as compared to ICI
• Wider range of products. Paints.
• Wider dealer network as compared to its
competitors.
• Business volume is very high as compared to
the competitors.
• Focuses on safety, security, health and
environment as a corporate social
responsibility.
• Technological Advantage.

WEAKNESSES

ICI Paints Berger Paints


• Very low discounts for business partners. • Poor dealer network as compared to ICI.
• Complex Supply Chain Configuration. • Complaint often arises in the product
• Comparatively less convenient delivery of while applying.
the products as business partners are in • Low range of products.
1000’s. • Lower quality products in comparison to
• Meeting demand becomes a challenge in the ICI
demand season. • Lack of formulating competent strategies.
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OPPORTUNITIES

ICI Paints Berger Paints


• Pakistan is developing country and there is • Berger should formulate its strategies and
a lot of business growth in this country. So develop its product keeping in view about
seeking new markets in this area is great the growth opportunity in this country.
opportunity. • Higher standard of living and awareness
• Finding solutions to the painting problems developing in Pakistan.
can also help to grow. Such product are
still absent in the market which can gain
the attention of customers. So to work on
those problems lead to a great opportunity.
• Higher standard of living and awareness
developing in Pakistan.

THREATS

ICI Paints Berger Paints


• Threats to the new entrants in the market. • Threat of the expanding market of ICI
e.g. Nippon Paints Japan has entered the Paints.
market of Pakistan • Threats of other new entrants in the
• Fake Paint paints market e.g. Nippon Paints Japan
• Political instability in Pakistan has entered the market of Pakistan
• Economic instability • Political instability in Pakistan
• Economic instability
• Threat of the new innovative products of
ICI.
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MARKETING-MIX STRATEGY
The marketing mix comprises of the following:

• Product

• Place

• Price

• Promotion

The four marketing mix elements are interrelated decisions. Marketing mix is affected by
whether a firm chooses to compete on the basis of price or on one or more other elements .When
a firm relies on price on its primary competitive tool .the other elements must be designed to
support aggressive pricing. For example, promotional campaign likely will be built around a
theme of “low, low price,” In non price competition however product, place and promotion
strategies come to fore front.
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ICI WEATHERSHIELD’S MARKETING-MIX STRATEGY

The marketing mix of ICI Weathershield is as following.

Product
“A product is anything that can be offered to a market to satisfy a want or need of a customer at
profit”.

Any product can be classified into either a consumer product or a business product. Consumer
product is the one that is bought and consumed by a final consumer. While a business product is
the one that is bought for the purposes of reselling or for business use.

ICI Weathershield comes under the definition of consumer product as a household buys the
product and use it.

Elements of the Product

QUALITY

SERVICE
VARIETY

PRODUCT

PACKAGIN BRAND
G NAME

FEATURE
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• “World of weather shield” was launched and for the first time in history, an exterior putty
and exterior primer which was having an additional feature of being waterborne was
introduced by ICI Pakistan Limited.

• First and foremost priority of the company is to maintain the standard and quality of the
existing product which are already in the markets. Their manufacturing, meeting demands of
the market had become a great challenge for the company. And the main thing which is
taken in to account before getting the product out of the gate of Factory is to maintain the
quality of every single pack of the product.

• Dulux Weathersheild Fresh was launched with the features of Fungus guard, Color lock and
Dirt Guard.

• Paint which overcome the hairline cracking.

• Paint which resists alkali, salts.


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• Exterior paint which gives smoothness and luxurious finish like interior paint.

• Oil base paint which has no smell; is odourless or has fragrance. It is available in Dulux
Matt Enamel, Dulux Enamel and Dulux Pentalite Classic. It would be an achievement to
have the same quality available in ICI Weathershield.

• Exterior paint which retains its shade for long time.

• Wide range of colors to choose from. ICI Weathershield is available in 6,134 shades as
opposed to Berger’s Weathercoat which only comes in 12 basic shades. Some of the shades
of Weathershield are shown below.
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Price
“Amount of money needed to purchase something”.

Elements Of Price

LIST PRICE

CREDIT
TERMS DISCOUNT
S

PRICE

PAYMENT ALLOWANC
PERIOD ES
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As far as the pricing is concerned it is the most difficult decision because keeping all the things
on one side price matters. ICI Paints is promoting different brands on different prices according
to the market segmentation. Dulux is the most expensive brand in the market. The reason is that
the best raw material and components are used in the manufacturing of the Dulux. Second reason
is that Dulux target market is upper tier. And to some extend upper tier of middle tier. But paying
more for Dulux , customer feels value .

If we compare the price of Dulux with other local brands , it’s the fact that price difference is not
more than 20-100 rupees. As far as quality is concerned , by paying more customer is not
worried about the quality .

For the market which is middle tier, ICI’s brands Paintex Emulsion and Glidden are the brands
with low price and optimum quality within the tier. If we go into the comparison of Paintex and
Glidden their price is lower than the other paint brands selling in the market. Glidden is purely
priced to cover the buying power of middle tier.

The price of the products in which ICI is having technological edge over competitors is
comparatively high. The reason is that ICI is enjoying state of monopoly for that product. There
is no product in the market to encounter them.

The price of Dulux Weathersheild Fresh is Rs. 1050/-, others companies brands offered in the
market are 300-400 Rs less than Weathersheild Fresh.

Same is the case with Dulux Gloss Finish and Dulux Matt Enamel Odourless Range. The price is
Rs. 300-400 more as compared to other brands.

So pricing factor vary from brands to brands and target market.

Placement / Distribution

“Place includes company activities that make the product available to target consumers.”

Placement is the process in which the final good or service is made available to the end
customer. The channels used for this purpose are known as “Marketing Channels”.

Marketing channels are defined as “set of independent organization involved in the process of
making a product or service available for the use or consumption by the consumer or business
user”.
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Elements Of Placement

CHANNELS

TRANSPOR
T
COVERAGE

PLACEMEN
T

INVENTOR ASSORTME
Y NTS

LOCATION

The overall ICI Paints products are manufactured in ICI Paints Lahore. For all Pakistan stocks
dispatch is carried out from factory warehouse.

There are further 5 warehouses in the country.

• Lahore
• Islamabad
• Multan
• Karachi
• Quetta
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The distribution channel includes Distributors and Dealers/ retailers. The Pakistan is divided into
4 Regions.

• Upper
• Lower Punjab
• Center Punjab
• Lower

Every region is headed with Regional Sales Manager and in every Region there are further Area/
Territories. The supply activities are carried out with keeping the region and areas. One region
cannot carry out supply in others region same in the case with areas/ territories.

The product is only delivered to the company approved dealer or distributor. Distributor can sale
to the customer which is not approved dealers of the company. Main consumption of paint is on
dealer/retailers counter. The delivery is made through 2 modes

• Distribution Vehicles
• Freight On Road ( goods transportation service)
By these 2 means ICI manage the distribution and placement of their products to be available for
their customers and consumers.

Marketing Systems

“A distribution channel structure in which products, wholesaler, and retailers act as a


unified system. One channel member owns the others, has contracts with them, or has so much
power that they all cooperate”.

ICI paint is also using vertical marketing system in the placement if its products. Here come the
old concept of dealership. That means, giving right to a third party to sell the product on their
behalf.
ICI Paints, like other competitors, supplies the paint products through the appointed dealers in
various regions and areas. The current number of ICI Paints appointed dealers all over Pakistan
is more than 2200. Dealers’ margin is around 5-10% depending upon their performance in terms
of volume sale. The Company also extends credit facility to the dealers. The limit of the credit
available to a dealer is also dependent upon his past sale performance.

ICI Paints, like 2 to 3 other major paint manufacturers spends considerable funds on the
advertisement of their products. Both the electronic and print media is employed for the sale
promotion. In addition the paint manufacturers offer various types of incentives/gift schemes to
the high performer dealers and even to the paint contractors. For example, ICI Paints and Berger
every year, take their high performer dealers abroad on Company expenses for tourism visits to
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various nearby countries. Nearly all paint manufacturing companies offer various types of
material gifts to the high performing dealers and even to the painting contractors.

Unlike ICI Paints, all other manufacturers also run a cash token incentive scheme. Tokens of
various monitory values are put in the paint boxes. Since the paint boxes are normally opened
either by the painters or the paint contractors and the customers are generally not aware of such
schemes, therefore the beneficiaries are invariably the painters or the paint contractors.

This aspect therefore becomes a strong motivating force for them to recommend such specific
brands of paint.

Promotion
“Promotion means an activity that communicates the merits of the product and
persuades target customers to buy it”.

Good Promotion always plays an important role in the success of any product. A good product
can be fail if not properly promoted. Nippon is taking big steps to promote it’s product by
maintaining good relationship with the community of Pakistan. The basic aim at the behind of
these steps is to promote their own product through a moral way.
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Elements Of Promotion
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PERSONAL
SELLING

ADVERTISI
DIRECT
NG
MARKETIN
G

PROMOTIO
N

PUBLIC
PROMOTION
RELATIONS

SALES EVENTS &


PROMOTIO EXPERIEN
N
Before CES getting a
product into the
market, ICI’s
culture is to invite its business partners (dealers/distributors) to give them orientation regarding
new product what ICI is going to launch, with what features and how it will work.

After this first step when product is introduced to the business partner’s second step is its
promotion how the promotion is done.

• T.V Advertisement on different channels


• Radio Advertisement , F.M 100
• Bill boards almost in every big city
• Posters / Banners
• Small gifts for dealers/distributors to push new product sale
• Small gifts for painters / contractors who are labor force who apply paint
• Painters party to introduce them new product
• T – Shirts printed with product logo on them
• Caps
• Key chains
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The sales team is assigned a target the placement of the new product on every counter. With the
help of direct marketing, ICI employees gives orientation to the customers and Painters that what
the new product is and what features it has.

Currently T.V commercial of ICI Dulux Odourless, in on air on different T.V channels.
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DECISION PROBLEM
“Does ICI Paints need to modify its marketing strategies in order to increase the market
share of Weathershield from 60% to 70%?”

RESEARCH PROBLEM/QUESTIONS
 What properties customer deem important in a particular brand of exterior paint?

 What are the perceived relative merits and demerits of Weathershield?

 How does the market mix of ICI Paints compare with the competition?

 What other aspects affect the market share of Weathershield?

RESEARCH OBJECTIVES
 To determine what aspects do people deem important in selecting a particular brand of
exterior paint.

 To determine how people rate Weather Shield against other available brands of exterior
paints based upon the identified aspects.

 To determine the changes in the marketing mix which could increase the market share
of Weathershield by 10%.

 To determine the effects of tokens-incentives being offered by other suppliers of paints.

 To determine whether the market share could be increased by controlling the fake paint
being sold in the market under the brand name of ICI Weathershield.

HYPOTHESIS
 Token incentive offered by the competition is restricting the market share of ICI
Weathershield.
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 Sale of fake paint in the market under the brand name of ICI Weathershield is
restricting the market share of ICI product.
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REVIEW OF LITERATURE
Thorough website search was conducted for relevant documents/studies. Contact was also made
in this regard with the concerned personnel of ICI Paints. Following documents were located /
secured and were reviewed in detail.

 Annual reports of ICI Paints for the last 5 years.

 ICI Weathershield brochure describing the product in detail.

 Paint Industry in Pakistan.

 Environmental report for Paint Sector in Pakistan.

 ICI Paints Website


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LIST OF QUESTIONS
 Current size of exterior paint market. Any printed information available?

 Growth rate in exterior paint market. Any printed information available?

 Major suppliers of exterior paint.

 When was ICI Weathershield launched?

 Market share of ICI Weathershield verses other exterior paint brands.

 Growth rate in the sale of ICI Weathershield. Any printed information available?

 Growth rate in the market share of ICI Weathershield. Any printed information
available?

 Various factors/properties considered important by the consumers in the selection of a


particular brand of exterior paint.

 What forces influence/guide the consumers in selecting any specific brand of paint?
Who are the real decision makers?

 Relative price of Weathershield verses other similar products.

 Typical sale promotion activities of ICI Paints. Is there an advisory service? What is its
set up and how does it function?

 Any special sale incentives offered by ICI for Weathershield?

 Any special sale incentives offered by competition for their brands of exterior paint?

 Possible/perceived reasons which limit the market share of Weathershield

 Is fake paint sold in the market?

 Approximate percentage of the sale of fake paint in the market?

 What is the basis/indications for concluding that fake paint is being sold in the market?

 How can one confirm the sale of fake paint?

 Can a control in the sale of “fake sale” under the brand name of ICI result in an
increase in the market share of Weathershield?
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 What can be done to control the sale of fake paint under ICI brand name?

 Could a sealed container be helpful in reducing the sale of fake paint?

 What other steps can be taken to increase the market share of Weathershield?

 Number of ICI Paint Dealers in Pakistan/Lahore.

 What is the Dealer’s margin?

 Is ICI paint available at shops other than authorized dealers?

 Any direct sales to consumers from the Factory?

 Any previous relevant studies carried out?


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RESEARCH PROPOSAL
I. Purpose of the proposed research design:

The main purpose of this research is to determine how to modify the marketing strategy
to increase the market share of ICI Weathershield from 60% to 70%.

Research Objectives

 To determine the changes in the marketing mix which could increase the market
share of Weathershield by 10%.

 To determine the effects of tokens-incentives given by other suppliers of paints

 To determine whether the market share could be increased by controlling the fake
paint being sold in the market under ICI Weathershield brand name

II. Type of study:

For this research two research methods will be used

• Exploratory Research

• Descriptive Research

Exploratory Research

Literature survey:

A literature survey will be conducted by collecting related secondary information about


the distribution process of the organization .This information will be acquired from the
retailers and different model shops of the ICI paints.

Experience survey:

Interviews will be conducted with the higher management of the organization and with
those belong to the competitor organization to have a clear idea as how the whole
distribution system is working and to identify the loop holes amongst different marketing
channels and to come up with an appropriate solution to improve the distribution
procedure.
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Descriptive Research

• Detailed Interviews

• Structured Questionnaires

Detailed Interviews:

With Contractors:

Detailed interviews will be conducted with the contractors to see if they are
satisfied with ICI products and if not, what the major factors responsible for that
are.

With Retailers:

Interviews will be conducted with the retailers to have a more comprehensive


knowledge about the way they are working with the marketing channel of the
company and the distribution approach they have adopted to enhance the
company’s image in the market and amongst the consumers.

With Management:

Interviews will be conducted with the management to get more awareness about
company’s management policies and marketing strategies.

Structured Questionnaires:

For Households/Direct Consumers:

Questionnaires will be distributed and get filled by the households as to see their
preferences and elements they consider while selecting the paint for their
house .What improved features they would like to see in the paint brands they
purchase and how they compare it with other alternatives.

For Distributors/Retailers/Contractors:

To have a clear idea about their preferences and suggestions they have for the
betterment of the company.
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III. Definition of the target population and sample size:

For our research, we have specifically targeted the following segments of the market:

• Painters

• Retailers

• Dealers

• Contractors

• Households/Direct Consumers

The total sample size of the research will be 100.From each segment 20 sub samples will
be picked randomly.

IV. Sample technique and data collection method:

Same technique consists of:

• Questionnaires for Consumers / Painters / Retailers / Contractors

• Telephonic and face to face interviews with people currently working in


the industry

• Experienced survey with the professionals

• Literature survey

V. Specific research instruments:

• Internet

• Related articles

• Interviews

• Questionnaires
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VI. Potential managerial benefits of the proposed study:

Following are the major benefits which management will drive after the research
is completed:

• Developing a core strategy to increase the market share of the company by


eliminating the effect of the token reward system

• To establish a system to eliminate the sale of fake paint under ICI Weather
Shield brand name

VII. Proposed cost structure for the total project:

Questionnaire cost

• Material cost

Three A4 size papers per questionnaire = Rs. 3 per questionnaire

Total number of questionnaire = 100

Total cost of questionnaire 3 x 100 = Rs. 300

• Printing cost

Cost of one page = Rs. 3

Total print outs cost = 3 x 300 = Rs. 900

Total questionnaires cost = 300 + 900 = Rs. 1200

• Transportation cost

For conducting 5 interviews


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Total transportation cost = Rs. 1000 (fuel plus transportation fare)

• Telephone expenditures

For approximately 30 to 40 calls = Rs. 1000

Total Cost: 1200 + 1000 + 1000 = 3200


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SAMPLING PLAN

Target Population

Unlike typical products – there is limited knowledge amongst the masses regarding paints. The
only people who can provide reliable information are either individuals who have been involved
in the purchase of paint or the paint-dealers, paint-contractors and painters.

As a result the target population for our survey instrument would comprise of:

• Head of the households

• Paint Dealers / Paint Contractors / Painters

Sampling Frame

Having two separate survey instruments required us to have two different sampling frames for
each. Thus the sampling frame for the consumer questionnaire consists of all households which
spread over the various geographical areas of Lahore.

The second questionnaire which is designed for dealers / painters / paint contractors has a
sampling frame that includes all the paint shops located at the various markets of Lahore.

Sampling Procedure

Due to limited time we have opted for non-probability sampling. In non-probability sampling we
have chosen a mixture of convenience, judgment, snowball and quota sampling.

We will be relying on our judgment when selecting elements from the sample frame. Although
we will make an effort to include samples from all the segments but due to limited time the
sample would have to be convenient. As we wish to target individuals who have had a certain
level of exposure to the purchase, sale, or use of paint we will also be asking our respondents to
guide us through our sample selection. To diversify our sample based on certain demographics
such as household income etc. we are going to assign certain quotas to specific areas while
selecting the elements.
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Sample Size

Due to the nature of the study and the limited time the sample size could not be very large. As a
result the following sample size has been chosen which should be sufficient.

50 House holds

50 Dealers / Painters

Sample Elements

The sample elements would consist of the head of the households who are the most likely
decision-makers in the purchase of paint as well as the paint-dealers, paint-contractors and
painters.
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DESCRIPTION OF ACTIONS
The research objectives and the hypothesis were reviewed in detail in order to determine the type
of information and the primary data to be collected. In view of the nature of the research
objectives it was decided to pursue the method of communication for the collection of the data
and to target the relevant persons who are involved in the decision making process for the
selection of a particular brand of the exterior paint.

Two lists of questions were developed – one for contacting the consumers and the other for
contacting the Painters, Dealers, Retailers and House Builders, who are considered to be
relatively more knowledgeable about the subject.
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QUESTIONNAIRE FOR CONSUMERS (A)

1) Locality of the house based on property cost

 Above Average

 Average

 Below Average

2) Visible standard of living

 Above Average

 Average

 Below Average

3) Category of the resident

 Owner

 Living on rent

4) Have you been involved in the purchase of exterior paint?

 Yes

 No

5) When is the last time that you had your house painted?

 Less than 6 months ago

 6 Months – 1 Year ago

 1 Year – 2 Years ago


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 2 Years – 3 Years ago

 More than 3 Years ago

6) Which exterior paint did you use?

 Berger

 ICI

 Master

 Silver Sand

 Gobi

 Other [Specify] __________________

 Don’t Know

7) How important do you consider the following factors while selecting a particular brand of
exterior paint?
Very Imp Important Unimportant Very Unimportant

Brand Reliability    

Price    

Dealer Reliability    

Own experience    

Advice of Friends    

Advice of Painter    

Advice of Retailer    

8) How would you rate the following exterior-paint manufacturers in terms of


quality and reliability?
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Very Good Good Poor Very Poor

Berger    

ICI    

Master    

Silver Sand    

Gobi    

9) Who bought your paint?

 Personally

 Painter/Paint Contractor buys the paint [Skip to Question 11]

10) From where did you buy the paint?

 Appointed company dealer

 Retailer
Can you name the shop: ___________________

11) Can you differentiate between a company appointed dealer-shop and a non-dealer
shop?

 Yes

 No

12) Are you aware of any “token scheme” being offered by paint manufacturers?

 Yes

 No [If No, Skip to Question 15]

13) Are you familiar with the details of the “token scheme”?
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 Yes (If Yes, Elaborate: ________________________________)

 No

14) Which paint suppliers are offering the “token scheme” as an incentive?

 Berger

 ICI

 Master

 Silver Sand

 Gobi

15) Are you aware of any price-discounts being offered by paint suppliers?

 Yes

 No [If No, Skip to Question 17]

16) Which suppliers of paint are offering price-discounts? (tick all that apply)

 Berger

 ICI

 Master

 Silver Sand

 Gobi

17) In your opinion is fake exterior paint being sold in the local market under various
brand names?

 Yes

 No [If No, Skip to Question 19]


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18) Are you aware of any campaign launched by any paint manufacturing company to
warn against the sale of fake paint?

 Yes (If Yes, elaborate: ___________________________________ )

 No

19) Are you familiar with customer support service being offered by ICI
Paints?

 Yes (If Yes, elaborate: ___________________________________ )

 No

20) What other steps can ICI Paints take in order to increase the market share of
Weathershield?

________________________________________________________________

________________________________________________________________
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QUESTIONNAIRE FOR DEALERS/PAINTERS (B)

1) Category of the respondent?

 Dealer

 Retailer

 Painter / Paint Contractor

2) Shop Location: __________________________

3) Which exterior-paint brands do you stock?

 Berger

 ICI

 Master

 Silver Sand

 Gobi

 Others (Specify: ____________________________________________)

4) How many years of experience does the respondent have in this field?

 Up to 5 years

 5 – 15 years

 More than 15 years

5) How would you rate the following exterior-paint manufacturers in terms


of quality and reliability?

Very Good Good Poor Very Poor


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Berger    

ICI    

Master    

Silver Sand    

Gobi    

6) Relative rating of properties of various brands of exterior paint.


(Rate from 1-5: 5-Very Good, 4-Good, 3-Satisfactory, 2-Poor & 1-Very Poor)

Properties ICI Berger Master Silver Sand Gobi


Paint Quality
Regular Supply
Better Margins
Commissions / Incentives
Consumer Preference

7) How much importance does a consumer give to the following while


selecting a particular brand of paint?

Very Imp Important Unimportant Very Unimportant

Own experience    

Family/Friends    

Painter / Contactor    

Retailer    

Others    

8) Can a layman easily differentiate between a company appointed dealer and a

non-dealer shop?
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 Yes

 No

9) Which of the following suppliers of various brands are offering a token


scheme as an incentive?

 Berger

 ICI

 Master

 Silver Sand

 Gobi

10) Which of the following suppliers of various brands are offering price discount on
their retail price?

 Berger

 ICI

 Master

 Silver Sand

 Gobi

11) Which of the following suppliers of various brands offer any other type of
motivational sale incentives?

 Berger

 ICI

 Master

 Silver Sand
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 Gobi

12) Is fake exterior paint being sold in the local market?

 Yes

 No [If No, Skip to Question 20]

13) What is the basis/indication for the assumption that fake paint is being sold in the
market?

 General market view

 Customer/Painter complaints

 Other [Specify: ______________________________________ ]

14) How can one confirm the sale of fake paint in the market?

 Tempered Paint-box

 Painter’s view upon usage

15) What could be the approximate average percentage of the sale of fake exterior paint?

 Up to 10%

 10% - 20 %

 More than 20%

16) Is the quantity of fake ICI Weathershield more or less than the perceived average
sale of fake paint?

 More than average

 Average

 Less than average


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17) Has there been any general awareness campaign launched by any paint manufacturing
company to warn consumers about fake paint?

 Yes

 No

18) Is it relatively easier or more difficult to refill the paint boxes of ICI Weathershield?

 Easier

 More difficult

 Same

19) Looking at a new-unopened box of ICI Weathershield, can one confirm whether it is
genuine or fake?

 Yes [If Yes, How? ________________________________________ ]

 No

20) What can ICI Paints do to minimize the sale of fake Weathershield?

 Sell through designated dealers only

 Introduce a tamper-proof seal

 Other

21) What other steps can ICI Paints take in order to increase the market share of
Weathershield?

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________
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SURVEY ANALYSIS

Quality & Reliability


In order to assess how consumers and dealers perceive the quality & reliability of ICI
Weathershield in respect to the other products of other paint manufacturers the following
questions were used for both questionnaires.

Q. How would you rate the following exterior-paint manufacturers in terms of quality and
reliability?

Very Good Good Poor Very Poor

Berger    

ICI    

Master    

Silver Sand    

Gobi    

The above question yielded the following results:

• Consumer Survey:

ICI

Cumulative
Frequency Percent Valid Percent Percent
Valid Very Good 57 57.0 57.0 57.0
Good 26 26.0 26.0 83.0
Poor 12 12.0 12.0 95.0
Very Poor 5 5.0 5.0 100.0
Total 100 100.0 100.0
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Berger

Cumulative
Frequency Percent Valid Percent Percent
Valid Very Good 30 30.0 30.0 30.0
Good 55 55.0 55.0 85.0
Poor 6 6.0 6.0 91.0
Very Poor 9 9.0 9.0 100.0
Total 100 100.0 100.0

Master

Cumulative
Frequency Percent Valid Percent Percent
Valid No Reponse 5 5.0 5.0 5.0
Very Good 29 29.0 29.0 34.0
Good 47 47.0 47.0 81.0
Poor 15 15.0 15.0 96.0
Very Poor 4 4.0 4.0 100.0
Total 100 100.0 100.0

Silver Sand

Cumulative
Frequency Percent Valid Percent Percent
Valid No Reponse 9 9.0 9.0 9.0
Very Good 3 3.0 3.0 12.0
Good 52 52.0 52.0 64.0
Poor 28 28.0 28.0 92.0
Very Poor 8 8.0 8.0 100.0
Total 100 100.0 100.0

Gobi

Cumulative
Frequency Percent Valid Percent Percent
Valid No Reponse 20 20.0 20.0 20.0
Very Good 6 6.0 6.0 26.0
Good 27 27.0 27.0 53.0
Poor 39 39.0 39.0 92.0
Very Poor 8 8.0 8.0 100.0
Total 100 100.0 100.0
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• Dealer Survey

ICI

Cumulative
Frequency Percent Valid Percent Percent
Valid Very Good 87 87.0 87.0 87.0
Good 13 13.0 13.0 100.0
Total 100 100.0 100.0

Berger

Cumulative
Frequency Percent Valid Percent Percent
Valid Very Good 15 15.0 15.0 15.0
Good 66 66.0 66.0 81.0
Poor 8 8.0 8.0 89.0
Very Poor 11 11.0 11.0 100.0
Total 100 100.0 100.0

Master

Cumulative
Frequency Percent Valid Percent Percent
Valid Very Good 21 21.0 21.0 21.0
Good 18 18.0 18.0 39.0
Poor 54 54.0 54.0 93.0
Very Poor 5 5.0 5.0 98.0
5 2 2.0 2.0 100.0
Total 100 100.0 100.0

Silver Sand

Cumulative
Frequency Percent Valid Percent Percent
Valid No Response 8 8.0 8.0 8.0
Very Good 6 6.0 6.0 14.0
Good 26 26.0 26.0 40.0
Poor 35 35.0 35.0 75.0
Very Poor 25 25.0 25.0 100.0
Total 100 100.0 100.0
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Gobi

Cumulative
Frequency Percent Valid Percent Percent
Valid No Response 26 26.0 26.0 26.0
Very Good 10 10.0 10.0 36.0
Good 10 10.0 10.0 46.0
Poor 32 32.0 32.0 78.0
Very Poor 22 22.0 22.0 100.0
Total 100 100.0 100.0

As one can see above ICI Weathershield is ranked the best among the consumers in terms of
quality and reliability. There were 57 individuals who ranked ICI Weathershield as “Very
Good” as opposed to only 30 individuals who ranked Berger’s Weathercoat as “Very Good” the
other major competitor. On the other hand 87 dealers considered ICI Weathershield as “Very
Good” as opposed to only 15 dealers for Berger.

Another question was used to determine the perceived qualities amongst the dealers based on
various factors. The following question was used.

Q. Relative rating of properties of various brands of exterior paint.


(Rate from 1-5: 5-Very Good, 4-Good, 3-Satisfactory, 2-Poor & 1-Very Poor)

Properties ICI Berger Master Silver Sand Gobi


Paint Quality
Regular Supply
Better Margins
Commissions / Incentives
Consumer Preference
ICI PAINTS 67
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The above question yielded the following results:

ICI - Paint Quality Berger - Paint Quality


100
70

60
80

50

60
40

40 30

20
20
Percent

Percent
10

0 0
Satisfactory Good Very Good Satisfactory Good Very Good

ICI - Paint Quality Berger - Paint Quality

Berger - Regular Supply


60

50

40

30

20

10
Percent

0
Poor Satisfactory Good Very Good

Berger - Regular Supply


ICI PAINTS 68
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Berger - Better Margins


50

40

30

20

10

Percent
0
No Response Poor Good
Very Poor Satisfactory Very Good

Berger - Better Margins

ICI - Better Margins


40

30

20

10
Percent

0
No Response Poor Good
Very Poor Satisfactory Very Good

ICI - Better Margins


ICI PAINTS 69
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ICI PAINTS 70
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ICI PAINTS 71
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Berger - Commission / Incentives
60

50

40

30

20

10

Percent
0
No Response Very Poor Poor Satisfactory Good

Berger - Commission / Incentives

ICI - Commission / Incentives


30

20

10
Percent

0
No Response Poor Good
Very Poor Satisfactory Very Good

ICI - Commission / Incentives


ICI PAINTS 72
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Berger - Consumer Preference
60

50

40

30

20

10

Percent
0
Poor Satisfactory Good Very Good

Berger - Consumer Preference

ICI - Consumer Preference


80

60

40

20
Percent

0
Poor Satisfactory Good Very Good

ICI - Consumer Preference


ICI PAINTS 73
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Factors responsible for selection

In order to understand how important the consumers consider various factors while selecting a
particular brand the following question was used.

Q. How important do you consider the following factors while selecting a


particular brand of exterior paint?

Very Imp Important Unimportant Very Unimportant

Brand Reliability    

Price    

Dealer Reliability    

Own experience    

Advice of Friends    

Advice of Painter    

Advice of Retailer    

This question yielded the following results:

Brand Reliability

Cumulative
Frequency Percent Valid Percent Percent
Valid Very Important 78 78.0 78.0 78.0
Important 22 22.0 22.0 100.0
Total 100 100.0 100.0
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Price

Cumulative
Frequency Percent Valid Percent Percent
Valid Very Important 58 58.0 58.0 58.0
Important 37 37.0 37.0 95.0
Unimportant 5 5.0 5.0 100.0
Total 100 100.0 100.0

Dealer Realiability

Cumulative
Frequency Percent Valid Percent Percent
Valid Very Important 52 52.0 52.0 52.0
Important 40 40.0 40.0 92.0
Unimportant 8 8.0 8.0 100.0
Total 100 100.0 100.0

Own Experience

Cumulative
Frequency Percent Valid Percent Percent
Valid Very Important 48 48.0 48.0 48.0
Important 42 42.0 42.0 90.0
Unimportant 7 7.0 7.0 97.0
Very Unimportant 3 3.0 3.0 100.0
Total 100 100.0 100.0

Advice of Friends

Cumulative
Frequency Percent Valid Percent Percent
Valid Very Important 27 27.0 27.0 27.0
Important 49 49.0 49.0 76.0
Unimportant 17 17.0 17.0 93.0
Very Unimportant 7 7.0 7.0 100.0
Total 100 100.0 100.0
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Advice of Painter

Cumulative
Frequency Percent Valid Percent Percent
Valid Very Important 70 70.0 70.0 70.0
Important 13 13.0 13.0 83.0
Unimportant 16 16.0 16.0 99.0
Very Unimportant 1 1.0 1.0 100.0
Total 100 100.0 100.0

Advice of Retailer

Cumulative
Frequency Percent Valid Percent Percent
Valid Very Important 55 55.0 55.0 55.0
Important 36 36.0 36.0 91.0
Unimportant 7 7.0 7.0 98.0
Very Unimportant 2 2.0 2.0 100.0
Total 100 100.0 100.0

The above data suggests that the factor which is given the most importance amongst the
consumers is dealer reliability (78% - Very Important) followed by the advice of painter (70% -
Very Important). Thus the advice of the painter and dealer plays a vital role in the selection of a
particular brand of paint.

Q. How much importance does a consumer give to the following while


selecting a particular brand of paint?

Very Imp Important Unimportant Very Unimportant

Own experience    

Family/Friends    

Painter / Contactor    

Retailer    
ICI PAINTS 76
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The question yielded the following results:

Own Experience Painter / Contractor


70 80

60

60
50

40
40
30

20
20
Percent

Percent
10

0 0
Very Important Important Unimportant Very Important Important Unimportant

Own Experience Painter / Contractor

Retailer Family Friends


40 60

50
30

40

20 30

20
10

10
Percent
Percent

0 0
Very Important Important Unimportant Very Unimportant Very Important Important Unimportant

Retailer Family Friends

As shown above the painter and paint-contractor is considered most important (72% - Very
Important) by consumers while selecting a particular brand of paint. Likewise, the retailer also
plays a significant role in the decision making process of the consumer.
ICI PAINTS 77
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Token Incentives

Awareness

The following question was devised to determine the awareness level of consumers regarding the
“Token Scheme” being offered by various exterior paint manufacturers.

Q. Are you aware of any “token scheme” being offered by paint


manufacturers?

 Yes

 No

The question yielded the following results:

Areyouawareof any"tokenscheme" beingofferedbypaint manufacturers


70

60

50

40

30

20
Percent

10

0
NoResponse Yes No 3

Areyouawareof any"tokenscheme" beingofferedbypaint manufacturers

Are you aware of any "token scheme" being offered by paint manufacturers?

being offered by paint manufacturers

Cumulative
Frequency Percent Valid Percent Percent
Valid No Response 6 6.0 6.0 6.0
Yes 58 58.0 58.0 64.0
No 33 33.0 33.0 97.0
3 3 3.0 3.0 100.0
Total 100 100.0 100.0
ICI PAINTS 78
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The results showed that 58% of the consumers were aware of “Token Schemes” being offered by
paint manufacturers.

Who benefits from Token Schemes?

Another question was used to determine how many consumers were familiar with the details of
these “Token Schemes” and who they felt benefited from them.

Q. Are you familiar with the details of the “token scheme”?

 Yes (If Yes, Elaborate: ________________________________)

 No

The results are as follows:

Are you familiar with details of the "token scheme"?


50

40

30

20

10
Percent

0
No Response Yes No

Are you familiar with details of the "token scheme"?

Are you familiar with details of the "token scheme"?

Cumulative
Frequency Percent Valid Percent Percent
Valid No Response 42 42.0 42.0 42.0
Yes 33 33.0 33.0 75.0
No 25 25.0 25.0 100.0
Total 100 100.0 100.0
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Token Scheme benefits who?


80

60

40

20
Percent

0
Painter Consumer

Token Scheme benefits who?

Token Scheme benefits who?

Cumulative
Frequency Percent Valid Percent Percent
Valid Painter 8 8.0 25.8 25.8
Consumer 23 23.0 74.2 100.0
Total 31 31.0 100.0
Missing System 69 69.0
Total 100 100.0

As shown above there were 33 consumers who felt that they were aware of the details of
the token scheme and amongst these individuals 23 of them felt that the consumers benefited
from the token scheme.

Which suppliers are offering Token Schemes?

Consequently another question was used to assess which paint-manufacturers were


offering the “Token Schemes” from the dealers.

Q. Which of the following suppliers of various brands are offering a token


scheme as an incentive?
ICI PAINTS 80
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 Berger

 ICI

 Master

 Silver Sand

 Gobi

Which of the following suppliers of various brands are offering a token scheme as a
incentive

Cumulative
Frequency Percent Valid Percent Percent
Valid Berger 42 42.0 42.0 42.0
ICI 1 1.0 1.0 43.0
Silver Sand 3 3.0 3.0 46.0
Gobi 8 8.0 8.0 54.0
Berger & ICI 7 7.0 7.0 61.0
Berger & Silver Sand 14 14.0 14.0 75.0
Berger & ICI &
10 10.0 10.0 85.0
SilverSand & Gobi
Berger & Silver Sand
15 15.0 15.0 100.0
& Gobi
Total 100 100.0 100.0

Price Discounts & Motivational Incentives

The following questions were used to assess which suppliers were offering price-discounts and
other motivational incentives to dealers for the sale of paint.

Q. Which of the following suppliers of various brands are offering price


discount on their retail price?

 Berger

 ICI

 Master

 Silver Sand
ICI PAINTS 81
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 Gobi

Q. Which of the following suppliers of various brands offer any other type of
motivational sale incentives?

 Berger

 ICI

 Master

 Silver Sand

 Gobi

These questions yielded the following results:

Which of the following Suppliers of various brands are offering price-discounts on their
retail price

Cumulative
Frequency Percent Valid Percent Percent
Valid No Response 2 2.0 2.0 2.0
Berger 10 10.0 10.0 12.0
ICI 5 5.0 5.0 17.0
Master 12 12.0 12.0 29.0
Berger & ICI 10 10.0 10.0 39.0
Berger & Master 7 7.0 7.0 46.0
Berger & ICI & SilverSand
54 54.0 54.0 100.0
& Gobi & Master
Total 100 100.0 100.0
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Which of the following suppliers of various brands offer any other type of motivational sale
incentives?

Cumulative
Frequency Percent Valid Percent Percent
Valid Berger 2 2.0 2.0 2.0
ICI 18 18.0 18.0 20.0
Master 1 1.0 1.0 21.0
Silver Sand 8 8.0 8.0 29.0
Berger & ICI 35 35.0 35.0 64.0
Berger & Master 6 6.0 6.0 70.0
Berger & ICI & SilverSand
6 6.0 6.0 76.0
& Gobi
Berger & ICI & SilverSand
24 24.0 24.0 100.0
& Gobi & Master
Total 100 100.0 100.0
ICI PAINTS 83
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Fake Paint

• Consumer Questionnaire

Following question was designed to assess whether consumers felt that fake paint is being sold in
the market.

Q. In your opinion is fake exterior paint being sold in the local market under
various brand names?

 Yes

 No [If No, Skip to Question 19]

The question yielded the following result:

In your opinion is fake exterior paint being sold in the local market?
100

80

60

40
Percent

20

0
NoResponse Yes No

Inyour opinionis fakeexterior paint beingsoldinthelocal market?

As shown in the graph almost 80% consumers are aware of the fact that fake exterior
paint is being sold in the local market under various brand names whereas approx.20%
consumers felt otherwise.
ICI PAINTS 84
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The following question was designed to assess the awareness level amongst consumers
regarding any campaigns launched by paint manufacturing companies to warn against
sale of fake paints.

Q. Are you aware of any campaign launched by any paint manufacturing company
to warn against the sale of fake paint?

 Yes (If Yes, elaborate: ___________________________________ )

 No

The question yielded the following result:

Areyouawareof anycampaignsagainst fakepaint?


80

60

40
Percent

20

0
NoResponse Yes No

Areyouawareof anycampaignsagainst fakepaint?

As shown in the above bar chart more than 75% consumers were not aware of any such
campaigns.
ICI PAINTS 85
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• Dealer Questionnaire

Following question was designed to assess whether dealers and painters felt that fake paint is
being sold in the market.

Q. Is fake exterior paint being sold in the local market?

 Yes

 No

The question yielded the following result:

Isfakeexterior paint beingsoldinthelocal market?


80

60

40
Percent

20

0
Yes No

Isfakeexterior paint beingsoldinthelocal market?

As shown in the graph almost 70% dealers and painters are aware of the fact that fake
exterior paint is being sold in the local market under various brand names whereas
approximately 30% felt otherwise.
ICI PAINTS 86
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Following question was designed to assess the ways through which dealers and painters felt that
fake paint is being sold in the market.

Q. What is the basis/indication for the assumption that fake paint is being sold in the
market?

 General market view

 Customer/Painter complaints

 Other [Specify: ______________________________________ ]

The above question yields the following results:

What aretheIndicationthat fakepaint is beingsoldinthemarket?


50

40

30

20
Frequency

10

0
NoResponse Customer Painter Com
General Market View Market View &Compla

What aretheIndicationthat fakepaint is beingsoldinthemarket?

The above bar chart shows that 35% dealers have no idea whereas approximately 40%
dealers and painters think that customer/painter complaints are the major indications that
fake paint is being sold in the market and almost 15% think that general market view is
the major indication and 10% painters/dealers think that both market view & complaints
are the basic indications.
ICI PAINTS 87
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Following question is designed to assess the confirmation of the sale of fake paint in the
market.

Q. How can one confirm the sale of fake paint in the market?

 Tempered Paint-box

 Painter’s view upon usage

The above question yields the following results:

Howcanonceconfirmthesaleof fakepaint inthemarket


60

50

40

30

20
Percent

10

0
NoResponse TamperedPaint-Box Painter'sviewupon

Howcanonceconfirmthesaleof fakepaint inthemarket

As shown in the above bar chart more than 50% painter and dealers confirmed the sale of
fake paint through painters view upon usage whereas approximately 35% painters and
dealers have no idea about the sale of fake paint.
ICI PAINTS 88
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Following question is designed to assess the approximate average percentage of the sale
of fake exterior paint.

Q. What could be the approximate average percentage of the sale of fake exterior
paint?

 Up to 10%

 10% - 20 %

 More than 20%

The above question yields the following results:

What couldbetheapproximateaveragepercentageof thesaleof fakeext


40

30

20
Percent

10

0
NoResponse Upto10% 10%- 20% Morethan20%

What couldbetheapproximateaveragepercentageof thesaleof fakeext

As shown in the above bar chart approximately 35% of painters and dealers think that up to 10%
is the average sale of fake exterior paint in the market whereas approximately 10% of the
painters and dealers think that the sale of the fake exterior paint lies between 10% to 20% and
almost 30% feels that the sale of fake exterior paint in the market is more than 20%.
ICI PAINTS 89
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Following question is designed to assess that either the quantity of fake ICI Weathershield is
more or less than the perceived average sale of fake paint.

Q. Is the quantity of fake ICI Weathershield more or less than the perceived
average sale of fake paint?

 More than average

 Average

 Less than average

The above question yields the following results:

Isthequantityof fakeICI Weathershieldmoreor lessthanthepercieve


60

50

40

30

20
Percent

10

0
NoResponse Average
Morethanaverage Lessthanaverage

Isthequantityof fakeICI Weathershieldmoreor lessthanthepercieve


ICI PAINTS 90
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As shown in the above bar chart approximately 50% of the painters and dealers think that
the quantity of ICI Weathershield is more than the perceived average of the sale of fake
paint whereas almost 15% of them think that it was about average and only about 8% of
them think that the quantity of ICI Weathershield is more than the perceived average of
the sale of fake paint is less than average.

Following question is assess to design that either there has been any general awareness
campaign launched by any paint manufacturing company to warn consumers about fake
paint.

Q. Has there been any general awareness campaign launched by any paint
manufacturing company to warn consumers about fake paint?

 Yes

 No

The above question yields the following results:

Hastherebeenanygeneral awarenesscampaignlaunchedbyanypaint manu


60

50

40

30

20
Percent

10

0
NoResponse Yes No

Hastherebeenanygeneral awarenesscampaignlaunchedbyanypaint manu


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As shown in the above bar chart only 18% of the painters and dealers were aware of such
campaigns.

The following question was devised to estimate whether it was easier or more difficult to
refill the paint boxes of ICI Weathershield in comparison to its competitors.

Q. Is it relatively easier or more difficult to refill the paint boxes of ICI


Weathershield?

 Easier

 More difficult

 Same

The above question yields the following results:


ICI PAINTS 92
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Isit easier or moredifficult torefill thepaint boxesof ICI Weathers
70

60

50

40

30

20
Percent

10

0
NoResponse Easier MoreDifficult Same

Isit easier or moredifficult torefill thepaint boxesof ICI Weathers

As we look at the above bar chart results more than 65% of the painters and dealers felt
that it was easier to refill the container of ICI Weathershield.

Following question was designed to speculate which of the following proposed solutions
would be most effective to minimize the sale of the fake ICI Weathershield paint.

Q. What can ICI Paints do to minimize the sale of fake Weathershield?

 Sell through designated dealers only

 Introduce a tamper-proof seal

 Other
ICI PAINTS 93
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The above question yields the following results:

What can ICI do to minimize the sale of fake Weathershield


80

60

40
Percent

20

0
NoResponse Introduceatamper p
Sell throughdesigna Other

What canICI dotominimizethesaleof fakeWeathershield

By looking at the above results more than 65% of the painters and dealers were in favor to sell
the ICI Weathershield paint through designated dealership whereas almost 23% of them were in
favor of introducing a temper-proof seal in ICI Weathershield paints to minimize the sale of fake
paint.

SUMMARY OF FINDINGS
The survey findings can be summarized as follows:

• The quality of ICI Weathershield is considered the best amongst the various paint
manufacturers.

• ICI does not offer as many incentives to its dealers as other competitors.
ICI PAINTS 94
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• The advice of the painter and dealer plays a vital role in the selection of a particular brand
of paint.

• Consumers are unaware of the details of the token scheme and how they take advantage
of consumers.

• A substantial amount of fake paint is being sold in the market.

• Fake ICI Weathershield is sold more than the products of other competitors.

• Consumers are unaware of campaigns against the sale of fake paint.

• Selling through designated dealers or introducing a tamper-proof seal could reduce the
sale of fake paint.
ICI PAINTS 95
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CONCLUSION & RECOMMENDATIONS
Based upon the market survey, the quality of ICI Weathershield is already considered to be the
best. However ICI paints should carry out the following recommendations in order to increase
the market share of Weathershield from 60% to &70%;

• Devise a suitable strategy to nullify the effect of the incentive of “Token Scheme” being
offered by Berger for its product.

The beneficiaries of the “Token Incentive” are mostly the Painters/Painting Contractors.
They also have maximum influence on the selection a specific brand of paint by the
consumers. It is therefore essential the strategy must include some kind of incentive for the
Painters/Painting Contractors.

One of the approaches could be to give some kind of award to the Painters/Paint
Contractors based upon the number of wrappers of Weathershield box collected.

Install measures to eliminate/minimize the sale of fake paint under the brand name of ICI
Weathershield. This can be achieved by:

• Designing and installing a proper sealing system on the Weathershield boxes on similar
lines as being done presently by Berger.

• Raising public awareness through advertisement about the fake paint sold in the market.

• Taking suitable measures whereby ICI Paints official Dealers are easily recognizable –
perhaps by displaying a sign board.

Several strategic options can help ICI Paint overcome its weaknesses and gain market share from
the competition.

• Forward integration: ICI at the moment is depending on dealers for the sale of their
products. These dealers store company’s products, retailers have to get ICI products from
these dealers & then offer customers for sale.

If ICI instead of depending on dealers use their own on distribution to supply products to
retailers then they can increase the sales of their products by giving products to every
possible retailers and in this way they can get acceptance of every retailer to get their
product and offer it to customer for sale.
ICI PAINTS 96
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• Backward integration: Presently ICI Pakistan is purchasing its raw material from
both local as well as foreign suppliers. About 75% material is purchased from foreign
countries and 25% is purchased locally.

As such as huge quantity of raw material is purchased from foreign countries that’s why
change in government import duties have a great impact on prices of raw material which
also increase the prices of finished products.

Therefore if ICI acquires local suppliers for start making its own raw material then it can
save itself from such fluctuations in prices, which could result in the stabilization of
prices, and customers can purchase the products at low prices.

If ICI gains control over their local suppliers by ownership and take charge of their
operation then a significant cost cutting is possible. After getting ownership if ICI start
manufacturing all or most of the required raw material locally then they can significantly
reduce the volume of import thus avoiding the heavy import duties imposed by the govt.
It will result in decrease in cost of product and ICI would be able to offer its product at a
relatively cheaper price.
ICI PAINTS 97
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