Chapter: 1 Introduction

The Company was incorporated on 6 June 1973 as a Private co. limited by shares registered under the Companies act. Subsequently the co. converted to Public co. limited by shares vide extra Ordinary General Meeting held on 21 June 2005 and is listed both in Dhaka and Chittagong Stock Exchanges of Bangladesh. My internship at Berger paints Bangladesh Limited started on September 25th, 2011 and it ended on December, 2011. During these 3 months I was assigned at Mohakali sales office. My sole responsibility was to explore the market share and to know the innate thought of customer to retain or attract the new customers. This practical orientation is necessary for the development and preparation of a person in the job world. The things that I have learned at BPBL: Meaning of responsibility. Necessity of commitment. Punctuality and regularity is very important. Ability to interact with different corporate people.

1.1 Origin of the Study:

This report has been prepared as a part of the internship program which is an integral part of the MBA program under the Dept. of Marketing in the Faculty of Business Studies, University of Dhaka. The organization attachment was started on September 25th, 2012 and ended on December 25th 2011. This report on A market research on exploring Berger Paints Bangladesh ltd. in the paint industry of Bangladesh at Jatrabari and Narayangonj area was assigned by academic supervisor Dr. Md. Abul kalam Azad, Associate Professor of Dept of Marketing, Faculty of Business Studies, University of Dhaka.

1.2 Purpose of the Study:

The purpose of the study is to make an analysis of market condition and share of Berger Paints in terms of the Paints Industry. This study attempted to understand the market conditions of Berger paints and relationship with customers, painters and dealers. The purpose is also to understand the corporate environment of Berger paints Bangladesh ltd.

and how they handle customers, painters and dealers. It is also the purpose of the researcher to help the management by providing information and idea to take appropriate decisions about the customer, painter and dealer in future.

1.3 Scope of the Study:

The scope of this study was strictly confined to the annual report & personal contact with the employees of Berger Paints Bangladesh ltd. To collect the information I worked in the Dhaka sales office of BPBL and field visit at Narayangonj. All other data related to the company was collected from web sites of BPBL & other related co.

1.4 Methodology of the Study:

For smooth and accurate study every one have to follow some rules & regulation. The study impute were collected from two sources: (a) Primary sources (i) Practical desk work (ii) Face to face conversation with the officer (iii) Direct observations (iv) Face to face conversation with the client (b) Secondary sources (i) Annual report of BPBL (ii)Files & Folders (iii) Daily diary (containing my activities of practical orientation in BPBL) maintained by me, (iv) Various publications on BPBL, (v) Website

1.5 Research Objectives

1.5.1 Broad objective: To assess and find out the market conditions of the firm to analysis how much the co. is capable of doing business properly in future and to explore the potentiality of Berger in the Paint industry especially in Narayangonj and Jatrabari.

1.5.2 Specific objective: Whether the customer are loyal to buy Berger Color Bank product. Whether Berger can build the relationship with the target customer and the dealer through their products. Whether Berger can build the relationship with the target customer and the specific through their products. Whether Berger can build the relationship with the target customer and the painters through their products. Find out the source of information. Find out the customer satisfaction level in consideration to the product quality. Find out the customer satisfaction level in consideration to the service of Berger Color Bank and in comparison of the competitors in the market. Whether Berger can create awareness in the consumer mind better than the competitors. Above all whats the potentiality of Berger in the market.

1.6 Contact methods:

To collect data for the report I use two types of contact method. I use personal or face to face contact method. As I did my interne there so I had the full opportunity to contact with the authority of Berger that made everything easier to me.

1.7 Limitations of the study:

There were some restrictions to have access to the information confidential by concern authority. Time and cost constraints also other limitations regarding this analysis. Lack of experience of the researcher. Analysis was based mainly on personal survey I did in the field.

Chapter 2 Background of the Company

2.1.1 Berger Paints Bangladesh Ltd: An Overview
Berger, the market leader in the Bangladesh paints market, is one of the oldest names in the global paint industry. The company is operating in the paint industry for almost two centuries. It has its origin in the year of 1760 and from then on the company is operating with strong adherence to quality and social responsibility. Initially, Lewis Berger, a German national, founded dye & pigment making business in England. Lewis Berger & Sons Limited grew rapidly with a strong reputation for innovation and entrepreneurship culminating in perfecting the process of making Prussian blue, a deep blue dye, a color widely used for many European armies' uniform. Production of dyes & pigments evolved into production of paints & coatings, which till today, remains the core business of Berger. Berger grew rapidly by establishing branches all over the world and through merging with other leading paint & coating companies. Today, Berger is one of the leading companies in the global paint industry Berger offers all kinds of painting solutions in decorative, industrial or marine segment for both decorative and protective purpose

Berger Paints started its sailing into the sea of Bangladesh from pre-liberation era, to be precise in 1950. The main business flourished in the post liberation phase.

2.1.2 Berger Paints Bangladesh Ltd: At a Glance

Own Corporate Office located in Dhaka Two Factories at Dhaka and Chittagong Seven strategically located Sales Offices throughout the whole country. The locations of the Sales Offices are shown in a map attached in the annexure A wide distribution channel reaches the whole country with a network of almost 1000 dealers

2.1.3 Vision and Mission of the company

The vision and mission of Berger Paints Bangladesh Ltd. (BPBL) is very transparent and tangible. Berger emphasize highly on the ethical commitment to produce benchmark quality product. The vision and mission statement of the company is:

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

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

2.1.4 Area of Operation

Berger Paints operates in three broad segments of the paint industry. Decorative Paint The objective is to beautify the surfaces with protection from corrosion and erosion This business category mainly targets household segment Products are being offered to the consumers through a dealer network Products fulfill the aesthetic value of the consumer Major revenue earning business area of BPBL

Industrial Tailor made products to cater to the specific needs of customers Products give protection to the surfaces in extreme situations like severe

Hazardous environment, high temperature, movement of heavy materials and machinery etc. Direct marketing approach is being used to promote the Industrial Coatings Main customer groups: Garments Factories, Chemical Plants, Fertilizer Manufacturing Plants, Consumer Durable Manufacturing Plants etc. Marine Products are being offered mainly through direct marketing approach. Dock Yards, Bangladesh Navy, Passenger Ships are the main user groups. Market is mostly concentrated in Dhaka and Chittagong.

2.1.5 Manpower Structure

It is consisted of more than 300 employees of whom about 160 are general workers and the rest are White Collar employees. These employees are working in different factories and depots of the company.

Managing Director Director Finance Director Operations GM Planning & Materials Financial Controller Production Manager Internal Auditor Systems Manager Chief Accountant Operations- Dhaka Operations- Chittagong Mgt. Accountant Technical Service Manager Sales Promotion Manager Mgt. services Manager Regional Manager Head of Trade Marketing Supply Chain Manager Logistics Officer Trade Dev. Manager Mkt. manager Director Marketing GM Marketing

Area Manager

2.1.6 The company profile

1. 2. Origin Registered Office : United Kingdom : 43/3, Chatteswari Road Chittagong 4000, Bangladesh. Email: bergerbd@spnetctg.com Web: http//www.bergerbd.com : Berger House Plot 8, Road No.-2 Uttara Sector 3, Uttara Model Town Email: info@bergerbd.com Web: http//www.bergerbd.com : Dhaka Factory - Nabinagar, Chittagong Factory 27 D, FIDC Road Kalurghat, Chittagong : Powder coating plant Nabinagar, Savar : Emulsion plant - Nabinagar, Savar, : Bonani, Dhaka : Email: dcor@bergerbd.com : Dhaka 3/3-D Bijoynagar Kakrail Chittagong - 43/3, Chatteswari road Sylhet H # 32, Block A, Shahjalal Upashahar Khulna 2 KDA Approach Road, Sonadanga. Bogra 31, Piari Sanker, Katnar Para Comilla 576, Laksham road Rajshahi - 1458, Ramchandrapur Ghoramara, Boalia : Jenson & Nicholson (Bangladesh) Limited : 70, East Nasirabad I/A : Baizid Bostami Road. : 6th July, 1973 : 1973 Manufacturing and Marketing of High Quality : Paints The principal activities of the company throughout the year continued to be : manufacturing and marketing of liquid and nonliquid paints & varnishes and coating. : Public Limited Company (Enlisted in both Dhaka and Chittagong Stock Exchange) : 1st : 51% : ISO 9001: 2000

3.

Corporate Headquarter

4. 5. 6. 7.

Factory Plant Home dcor Sales office

8.

Subsidiary Company

9. Date of Incorporation 10. Commercial Production 11. Business Line

12. Nature of Business Activities 13. Status

14. Position in the Industry 15. Percentage of Market Share 16. Special Achievement

2.1.7 Focus of BPBL

Berger Paints Bangladesh Limited focuses on the following things:

satisfaction.

Commitment

to

achieve

total

customer

Commitment to project the company as an ethical and socially responsible one. Commitment to continue as the market leader through consistent sales growth, increasing productivity and developing new products befitting customer needs. Ensuring continuous improvement in operations through utilization of highly professionals and dedicated team, proper process management and participation of the stakeholders. Setting measurable targets at appropriate stages and continuously monitoring them.

2.1.8 Market Share Analysis

At present Bangladesh paints industry has many companies who have significant market share. Berger Paints Bangladesh Ltd. is operating as the market leader and enjoying almost 45% of national paint market share. The nearest competitor is Sagar Chemical and Paint Industry Ltd. who resides far below the market leader in aspect of market share. The following Table shows the present market share of different companies in paint industry of Bangladesh: Companies BPBL Sagar Chemical and Paint Ind. ltd Elite Asian Pailac Roxy Moon Star Paint Chemical Ind. Others Market Share 44.7% 13.6% 6.8% 4.2% 5.9% 4.8% 3.7% 16.3%

Total

100% Market Share of Different Companies

The Table shows that Sagar Chemical and Paint Industry Ltd, who are mostly known a Romana Paints manufacturer, enjoying a market share of 13.6% and Elite Paints market share is 6.8%. A very mentionable point about the national market share of different companies is, recently the market share of the local companies are declining whereas the market share of Berger Paints Bangladesh Ltd. is increasing. Added here, very recently giant India based multinational paint company Asian Paints has entered into this market under joint venture investment with Confidence cement Inc Ltd. Another local company Aqua has launched recently. Asian Paints market share in 2011 was 4.2%. Though the share is not very high but being new entrant their growth is significant. The market shares of the major paint category are given below:

2.1.8.1 Gloss Coatings Market share

Gloss coating category paints are solvent based paints. This is the major segment of the total paint industry. It contributes almost 42% of the total decorative paint. Here also the major player is the market leader of the paint industry Berger Paints Bangladesh Ltd. The market scenario of the gloss coatings is:

Market Share Company

2011 (Jan-Dec) 2011 (Jan-Dec)
Variance %

Berger Paints Bangladesh Limited Sagar Chemical & Paint Industries Ltd Elite Paint & Chemical Ind. Limited Asian Paints

23.9 15.4 6.2 0.8

25.0 14.8 7.0 2.7

1.1 -0.6 0.8 1.9

Market Share of Gloss Coatings The Table shows that BPBL is holding almost 25% gloss coating market share. The nearest contributor of BPBL is Sagar Chemical and Paint Industry Ltd. Their market share is 14.8%. But their market share has declined from 2011. All other major player are enjoying higher market share than 2011.

2.1.8.2 Interior Emulsion Market share

The market scenario of the Interior Emulsion in 2011 is very contrasting. The market leader Berger Paints Bangladesh Ltd. is holding almost 60% of the total interior emulsion market. But BPBL lost 1.2% market share in comparison to 2011. The following Table shows the share of the interior emulsion by major companies: Market Share
Company 2011 (Jan-Dec) 61.5 8.9 8.9 1.6 2011 (Jan-Dc) 60.3 12.1 7.9 6.0 Variance % -1.2 3.2 -1.0 4.4

Berger Paints Bangladesh Limited Sagar Chemical & Paint Industries Ltd Elite Paint & Chemical Ind. Limited Asian Paints

Market Share of Interior Emulsion The nearest market share holder of the BPBL is Sagar Chemical & Paint Industry Ltd. Their brand Romana is enjoying higher market share than 2003. In 2004 their market share is 12.1% and the growth is 3.2%.

2.1.8.3 Exterior Emulsion Market share

The exterior emulsion market is similar to the interior emulsion market. In this segment of Paint the market leader BPBL is occupying almost 82% of the total market share. The following table shows the market share of 2004.

Company 2011 (Jan-Dec) Berger Paints Bangladesh Limited 75.1

Market Share

2011 (Jan-Dec) 82.2

Variance % 7.1

10

Sagar Chemical & Paint Industries Elite Paint & Chemical Ind. Limited Asian Paints

1.1 17.0 1.3

1.2 6.3 7.4

0.1 -10.7 6.1

Market Share of Exterior Emulsion The Table shows that BPBL is enjoying 7.1% positive growth from 2011 to 2011 whereas Elite Paint lost 10.7% of their market share. The domination of BPBL in this segment is very obvious.

2.1.8.4 Distemper Market share

The Distemper market is reasonably more settled than other. Here no particular company is enjoying half of the market share. The market leader BPBL is enjoying almost 43% market share.

Market Share

Company

2011 (Jan-Dec) 39.3 14.2 7.8 2.2

2011 (Jan-Dec) 42.9 12.0 7.8 8 5.6

Variance % 3.6 -2.2 0.0 3.5

Berger Paints Bangladesh Limited Sagar Chemical & Paint Industries Ltd Elite Paint & Chemical Ind. Limited Asian Paints

Market Share of Distemper The Table shows that the multi national companies are enjoying growth of the market share. The local companies are rather loosing their existing market share. Both Berger and Asian are enjoying almost 3.5%growth than the previous year.

2.1.8.5 Cement Coatings Market share

The market share of the cement coating is also dominated by the market leader. Berger is enjoying 63% of the total cement coating market share. The nearest market share holder

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is Snowcem Bangladesh Ltd. Their present market share is 16.1%. The following Table is portraying the scenario of the cement coatings of Bangladesh:
Company 2010 (Jan-Dec) Berger Paints Bangladesh Limited Snowcem Bangladesh Ltd. Sagar Chemical & Paint Industries Ltd Paint & Chemical Co. Pailac (PVT) Ltd. Asian Paints 61.9 16.5 13.2 3.2 1.2 Market Share 2011 (Jan-Dec) 63.0 16.1 12.3 3.1 1.4 Variance % 1.1 -0.4 -0.9 -0.1 0.2

2.1.9 Distribution Coverage Analysis Major Companies

The distribution reach of the company is set basically on the three broad categories: Urban, Semi Urban and Rural. The distribution reach is determined without considering. In all the three categories Berger the market leader still is maintaining more than 50% distribution coverage. The standing of the major companies on the basis of the distribution reach is given below: Distribution Reach % Company Berger Paints Bangladesh Limited Sagar Chemical & Paint Industries Ltd Paints Limited Roxy Pailac Paint & Chemical Company (PVT) Ltd. Paint & Chemical Industries Limited Elite
Urb an S emi Urb an Ru ral Nati on al

65.9 56.3 39.6 33.2 37.4

62.4 61.8 40.0 35.2 28.5

54.9 56.0 32.1 37.0 15.2

63.2 57.2 38.3 34.2 31.6

2.2.1 Preparing Marketing Mix Market Segmentation

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For segmenting total paint market, Berger uses more than one basis. Initially, total business of the Co. is segmented on the basis of customer types. Berger segments total market as Decorative, Industrial & Marine. Then, Decorative group is further segmented on the basis of surface types- wooden, metal & concrete. Again, sub-class of the total paint market is sliced on the basis of Internal & External surface category. At the last step, price segmentation is used to create a number of small niches Premium, Regular & Economy- in the market.

Product
Berger is committed to offer quality products that satisfy consumers ultimate desires from paints with the help of state-ofart technology. Berger always believes in one step ahead in offering new product to create more value for customers money. Berger outsmarts other competitors of the market through its one step ahead policy and innovative market offers. Berger is trying to fill up all holes of the market through offering a wide range of products to meet the needs (Premium to Economy Paints) of different types of users and to solve the different types of functional requirements (Industrial, Decorative & Marine). Berger Bangladesh offers approximately 600 SKU including variations within basic product groups. Due to shift in market growth trends Berger is trying to establish itself in the economy segment of the paint market

Price
Generally Berger follows cost based pricing method. After calculation of the total manufacturing cost (Direct & Indirect RM cost, Direct & Indirect Labor cost and Manufacturing overhead cost) and adds 20% GP to get the price point of the product. But this is not the rule of thumb in pricing the Berger products. Competitor based pricing policy is also followed as well because of the increased competition in the paint market.

Place/Distribution
Berger follows the direct distribution policy to make the paints available in the market. Berger distributes paints through its own sales force. Distribution activities of Berger in all over Bangladesh are covered by 7 (Seven) strategic depots. One level, mainly, and two level-channel, to some cases, are used by the Berger Paints for Decorative products. Zero level channels, personal selling, are also used for grasping the project offers.

SALES DEPOT OF BERGER

DEALERS

DEALERS

CUSTOMERS 13

Figure 5: Channel level In one level channel, Bergers sales force delivers paints to the dealers from where ultimate users purchase paints. In the two-level channel, some major dealers dominate the paint market in the region where they are located. Small dealers collect paints from the large-scale dealers. Ultimate users buy paints from these small dealers.

2.2.2 Promotion/Communication Mix Electronic media:

Paints of Berger are promoted in the market through electronic media mainly in BTV and Cable Channels. Through these ads not only the overall Berger products are offered but also the individual brands are promoted. Through radio Berger is trying to reach those potential targets that are not easily reachable by the BTV or Satellite.

Print Media:
During daytime mostly in the office market potentials have little opportunity to go through the electronic media. Rather, they are used to go through the newspapers, magazines and other periodical publications. So Berger has taken the initiatives to attract peoples attention through print media to some extent. Moreover, brochures, shade cards and other paint related information in printed form are delivered to the dealers, potential customers, painters and other targeted potentials to make them interested /more interested toward Berger products.

Billboard: Berger efforts also move to grasp the potentials attention and to increase the frequency
of exposure toward Berger products while they are on the way to their destinations.

2.2.3 Sales Promotion

Berger offers different types of incentives for consumers and traders of the paint market. Trade promotion occurs more frequently than consumer promotion. Because, success in this market highly depend on the traders involved channeling the paints from producers to consumers. Traders are highly influential in the market because of long purchase cycle 14

time (app. 3 years) of paints, technical aspects of the paints & etc. Shop boys are also included within the discursion of traders. Moreover, painters, end user of paint, play important roles in purchase decision of the paint. So, Berger offers incentive to create a favorable attitude towards the paints of Berger.

2.2.4 Color Bank at a Glance

Berger Color Bank introduces the global way to paint with an unlimited choice of shades to match customers taste-instantly. Color Bank is a new venture of Berger Paints started by Mr. R. R. Khan, Dcor manager of Berger Paints Home Dcor, in 1997. The basic concept behind launching Color Bank was to reduce SKUs and provide a variety of shades. Berger Color Bank can provide any shade, from a dark color to light colors in just 5 minutes. Berger Color Bank uses superior imported colorants and the world renowned tinting technology of Italtinto, Italy. Berger Color Bank has unique Tintovision software which allows customers to see infinite color combinations on the screen of the computer. Products of Color Bank includes: Robbialac Plastic Emulsion Classic Robbialac SPD Super Weather Coat Smooth Classic Robbialac Synthetic Enamel Gold Luxury Silk Splendor Robbialac Easy Clean Robbialac Pearl Lustre Finish Woodkeeper Finesse

Chapter: 3 SWOT Analysis

15

A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environmental scan:

SWOT analysis framework

Environmental Scan / \ Internal Analysis External Analysis /\ /\ Strengths Weaknesses Opportunities Threats | SWOT Matrix

Strengths
BPBLs strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include: Strong brand names Good reputation among customers Cost advantages from proprietary know-how Exclusive access to high grade natural resources Favorable access to distribution networks

Weaknesses
The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses:

High cost structure Lack of access to the best natural resources 16

Lack of access to key distribution channels High cost for importing raw materials

In some cases, a weakness may be the flip side of strength. Take the case in which a firm has a large amount of manufacturing capacity. While this capacity may be considered a strength that competitors do not share, it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment.

Opportunities
The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include:

An unfulfilled customer need in some cases Arrival of new technologies Loosening of regulations Removal of international trade barriers A developing market such as the Internet. Mergers, joint ventures or strategic alliances. Moving into new market segments that offer improved profits. A new international market. A market vacated by an ineffective competitor

Threats
Changes in the external environmental also may present threats to the firm. Some examples of such threats include:

Shifts in consumer tastes away from the firm's products Emergence of substitute products New regulations Increased trade barriers A new competitor in your home market. Price wars with competitors. A competitor has a new, innovative product or service. Competitors have superior access to channels of distribution. Taxation is introduced on your product or service.

The SWOT Matrix

17

A firm should not necessarily pursue the more lucrative opportunities. Rather, it may have a better chance at developing a competitive advantage by identifying a fit between the firm's strengths and upcoming opportunities. In some cases, the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity. To develop strategies that take into account the SWOT profile, a matrix of these factors can be constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below:

SWOT / TOWS Matrix

Strengths Opportunities S-O strategies Weaknesses W-O strategies

Threats

S-T strategies

W-T strategies

S-O strategies pursue opportunities that are a good fit to the company's strengths. W-O strategies overcome weaknesses to pursue opportunities. S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats. W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it highly susceptible to external threats.

Chapter: 4 Market Analysis

4.1 Market Analysis

18

Market analysis is oriented toward achieving specific objectives. Step1- The first step is to explicitly define the analysis objectives. Step2- The second step in analysis is to formulate specific questions and criteria consistent with the analysis objectives. Step3- The third step an analysis is identifying the most effective and efficient tools of analysis. Step4- The fourth step in analysis of Berger Paints Bangladesh Limited is interpreting the evidence.

4.2 Customer survey

In the period of my internship, I was assigned to articulate the information about the customers mind, choice, demand, satisfaction, preference etc. Customers are the main attractions of company. In our survey I have come to understand about some components of the customers mind. I accumulated the following information: 4.2.1 Brand recall 4.2.2 Experience and reason to choose the brand 4.2.3 Most usage and effective brands 4.2.4 Decision making 4.2.5 Painting problem 4.2.6 Facility from dealers 4.2.7 Color bank

4.2.1 Brand recall: Normally customers are highly influenced by different companies. They are habituated and familiar with the myriad promotional activities of different companies. Among these competitions they can remember those brands which can make position in their mind. So this question helps us to see how

19

many customers can recall Berger in instance. The following figure visualizes the real scenery of the customers answer.

4.2.2 Experience and reason to choose the brand:

Customers can be new and old. The purpose of this report is to know the insight of root level customers. Some of my respondents were experienced and some were new owner of building who may start painting within 6 months. Almost al the customers including experienced and inexperienced preferred the quality whenever they judge the paint. A few customers uttered that they are informed by the advertisement. Some fanciful customer considers only brand image of the product. In this case, company need to build strong media publication.

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Table: Experience of painting Yes 86.96 % No 13.04 %

4.2.3 Most usage and effective brands:

Brand recall does not indicate that customer will buy those brands because the mental map for paint industry is a little bit different than the other consumer product. Most of the customers rely on painter or relevant person to take decision. By the following figure it is clear that customers thought usually influenced by others. Someone vowed Berger as most effective brand but they used other brands. This disparity of choose and usage show the customers dependency about decision making.

Table: Depiction of most effective brand Berger 74.64 Asian 13.04 Al karim 0.72 Roxy 1.45 Elite 7.25 Pailac 0.72 Romana 2.18

4.2.4 Decision making:

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The following figure indicates that most of the paints customers consider quality rather than other options. Albeit many of customers emphasis mainly on price. But it is true that customer prefer quality product like Berger. Only a few people showed that they give more importance on price. Some customers usually take decision from their previous experience. During my survey, a clear scenery came to my mind that experienced customer are aware of paint industries. They keep minimum knowledge about paints. On the other hand some customers are influenced by relatives and tantalized by their surroundings. Only educated customers answered that they choice according to self judgment.

4.2.5 Painting problem: As paints are sold in container which needs further process, so it is assumable that painters and related person may face different problems. In my survey almost all respondents have painting experience, except a few. From total respondents 86.96 percents had previous experience and 13.04 percents didnt have any experience. In the following figure it is visualized that only 0.08 percents customers faced inconsistency that have the experience of painting. And rest of the respondents didnt face any problem. On the contrary 100 percents were agreed that normally paints dont have any problems. Generally customers face following types of problems. Mixing Reservation Durability Quality Availability 4.2.6 Facility from dealers:

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This question assists me to analyze the competitors market strategy and policy. Obviously BPBL is the market leader of the paints industry. So it is more concerned about the market share of other competitors. Other companies are attempting to become tantamount as BPBL. To assail the precarious market environment BPBL is always careful about competition.

In my experiment most of the customers uttered of no facility. Those shows 64.38 percents customers dont obtain any privilege from companies. 30.14 percents customers answered that they usually get discount. Generally dealers dont provide discount for all customers except their loyal customers. The amount of discount is very little. This is mainly to retain the traditional customers. Some customers also get credit facility. In order to maintain sustainable and regular relationship with the clients dealer consider credit facility sometimes.

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4.2.7 Color bank:

Color bank system is a magic to get any color whatever comes in ones mind. By the help of Tintovision software customer can choose different shades in computer monitor. There are more than 5000 shades available for customers. Customer can see the effect of that particular shade through this technology. Color bank can provide a fresh container of color within five minutes. It can provide a clear furnishing looks of your walls. On the basis of price and quality it regards as effective technology. As color bank is almost a new innovation so still now it can not be installed on the customers mind. Because of the abysmal idea customers dont favor color bank. The following figure criticized that about all the respondents are familiar with color bank except a few. The persons who have previous experience know more than the persons who dont have previous experience. In my expedition, 83.33% were familiar with color bank and rest of them was not familiar with it. Among them only 37.50% have the experience about color bank. And 62.50% dont have experience.

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4.3

4.3 Dealers survey:

Dealers are the most sophisticated party in paint market. If company give less facilities to the dealers, then there is chance to change their dealership to another competitor. Though, price and customer preference are also important. The result of my survey on the dealers is depicted below:

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4.3.1 Preamble:
In the following section of the work, first of all I describe the different aspects of the dealers survey in general and how it is possible to interpret the dealers within this framework. In a second part the aim of the paper is to explain in more details how relationship is developed and what aims marketing managers should be aware of when conducting with the dealers. Thirdly the diverse impacts of dealers on Customer Relationship Management (CRM) are discussed. The latter includes a description of market situation as well as an analysis of the customer importance in the marketing management of today. Dealers are free to keep more lucrative product in their store. Because, they can also influence the customers to purchase low priced product. In order to capture market share some companies provide more flexible discount in invoice and others. So it is necessary for sales manager to tackle the competitive market.

4.3.2 Most availability of the products in dealer shop:

In my observation, it is depicted that 63.85 % dealers keep berger paints, 26.92 % dealers keep Asian, 7.69 % keep pailac, 3.86% keep ujala, 3.85% keep elite, and 3.85% keep RAK. Most dealers are bound to store demandable brand like Berger and Elite and sometimes Asian. In suburban areas customers are not conscious about paints so dealers can influence them easily. In this dealers can deal with comparatively low quality or minimum demandable product. On the contrary companies are also trying to attract dealers by dealership program.

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4.3.3 Availability:
This statistics depicts that most of the dealers deal with more than one product. Only a few deal with one brand. And they get benefit from the company. Available Brands Frequency 1 2 3 4 7 Total 5 3 8 9 1 26 Percent 19.2 11.5 30.8 34.6 3.8 100.0 Valid Percent 19.2 11.5 30.8 34.6 3.8 100.0 Cumulative Percent 19.2 30.8 61.5 96.2 100.0

Valid

4.3.4 Reasons of most availability:

Price is crucial for any product. And in this point dealers like to store demandable product. Dealers cant go beyond the customers demand. The overall satisfactory level depends on the price among. As paints require huge investment so customers think before purchase decision. The following table makes us understand that dealers keep which brands is depend on customers.

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Reasons Of Most Availability Frequency Percent Valid Percent Customer Demand Valid More Convenient Total 23 3 26 88.5 11.5 100.0 88.5 11.5 100.0 Cumulative Percent 88.5 100.0

4.3.5 Facility from company:

Among 26 respondents 9 are said that they are facilitated by Berger and 7 respondents told about Asian. In most cases dealers can play role as a decision maker in buying process. On the contest pailac is in the third position. Some companies are attempting to capture market share by providing more facilities like pailac, RAK and Asian paints etc.

Preferable by customer: Almost 69 % respondents told that customers prefer Berger. And 23 % told that customers prefer Asian. In my observation it is clear that the customers who prefer other brands except Berger, Asian, and Elite are influenced by the dealers.

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Valid

Asian Berger RAK Pailac Total

Preferable By Customer Frequen Cumulative Percent Valid Percent cy Percent 6 23.1 23.1 23.1 18 69.2 69.2 92.3 1 3.8 3.8 96.2 1 3.8 3.8 100.0 26 100.0 100.0

4.3.6 Types of facilities that company provides:

Credit facilities are common phenomenon in business. Almost all companies provide credit facilities. Because credit facilities enable dealers to assemble bulk amount of product without installment. At present dealers are capable to do business without credit. So some feel more comfort to get commission. Very few customers rely on painters to purchase. So dealers provide some facilities to the painters. Usually they provide commission and discount to the painters to nurture their loyalty. Types of facility Frequency Credit Transportation Commission Discount Total System Total 12 1 10 2 25 1 26 Percent 46.2 3.8 38.5 7.7 96.2 3.8 100.0 Valid Percent 48.0 4.0 40.0 8.0 100.0 Cumulative Percent 48.0 52.0 92.0 100.0

Valid

Missing

4.3.7 Facilities attract the dealers:

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Which attracts the dealers most Frequency Percent Valid Percent Credit Smooth delivery Commission Capability of product Total 10 1 14 1 26 38.5 3.8 53.8 3.8 100.0 38.5 3.8 53.8 3.8 100.0 Cumulative Percent 38.5 42.3 96.2 100.0

Valid

4.3.8 Facilities to the painters:

Facilities to the painters Frequency Percent Commission Discount Valid Others Total Missing System Total 15 1 4 20 6 26 57.7 3.8 15.4 76.9 23.1 100.0 Valid Percent 75.0 5.0 20.0 100.0 Cumulative Percent 75.0 80.0 100.0

4.3.9 Source of customers:

According to the dealers responses most of the customers continue their buying process by own self. Here media has a little impact on buying. But advertising can create the image on the customers mind. I talked with many customers and understand their mind. Following figure narrates that 73.08 % come to the store without reference. These customers may judge either quality or price. Painters can also refer some customers.

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4.3.10 Interaction with the painters:

I mentioned earlier that painters have a mentionable impact in the buying decision of customers. These types of costless relationship may support dramatically in sales. Dealers provide only little discount and commission sometimes only refreshment to the painters. Except influence in buying decision painters can refer dealers shop to buy. In my observation almost 85 % dealers maintain relation with the painters. And other 15 % dont maintain any relationship.

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4.3.11 pricing system of dealers:

Paint industry is highly competitive. Dealers also follow competitive strategy in price setting. 100% dealers show that they follow competitive pricing strategy.

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Consider to customer Frequency Full discount Valid 80/20 90/10 Total System Total 13 2 10 25 1 26 Percent 50.0 7.7 38.5 96.2 3.8 100.0 Pricing system Valid Percent 52.0 8.0 40.0 100.0 Cumulative Percent 52.0 60.0 100.0

Missing

Frequency Valid Competitive 26

Percent 100.0

Valid Percent 100.0

Cumulative Percent 100.0

4.3.12 Consider to customers:

Due to the competition dealers can not make enough profit from paints alone. They generate profit by selling supplementary product such pin, tarpin, gum etc. most often they are forced to sell in purchase price. But it is true that they can not gain more than 10% from the purchase price. Following figure shows that 50% dealers sell at purchase price.

4.3.13 Profitable brand:

Profitable brand can be measured in different ways. Some companies provide more privilege to the dealers but their sales is low. On the other hand some companies provide less but their sales are high. In this equation profitability varies. The following figure states that the profitable brand from the dealers view. 33

4.3.14 Use of color bank:

Still now most of the dealers dont have color bank technology. They are not accustomed with color bank. So this is strategic opportunity for BPBL to count them as new color bank users. They can be diverted into BPBL dealers. Almost 54 % respondents dont utilize color bank.

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Use of color bank Frequency Yes No Total 12 14 26 Percent 46.2 53.8 100.0 Valid Percent 46.2 53.8 100.0 Cumulative Percent 46.2 100.0

Valid

4.3.15 Help to make decision:

Dealers have significant influence on decision making process of customers. Because most of the customers are unaware about different brands. Actually they know about color but not about brands. For this reason they depend on dealers and painters. By analyzing this survey, I can come in a decision that all dealers help to make decision of

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buying. Although sometimes they mislead the customers to buy less quality products. But customers prefer the quality most. Help customer to make decision Frequency Yes Valid No Total 24 2 26 Percent 92.3 7.7 100.0 Valid Percent 92.3 7.7 100.0 Cumulative Percent 92.3 100.0

4.4 Painter survey: 4.4.1 Painters preference:

The following analysis is based on three components: market, actors and issues. Market represents the demand side of the environment, for that reason the structure of this part is 36

to first state the importance of the painters preferable brand in the actual paint marketplace. Then the aim is to describe and illustrate various aspects to understand the painters mind to use them as a workforce. BPBL is the market leader in the paint industry. In accordance to the market share BPBL is in the first position. But in some cases, it is anxious that some fast growing competitors are in adjacent to BPBL. In jatrabari area, 77 % painters like to use Berger. And 23 % painters like Elite. Although Elite paint hasnt proper brand image But it holds the second position in jatrabari. Because, Low priced product, Painter influence, Quality product with comparatively low cost. PREFERABLE BRAND IN JATRABARI: Preferable Brand Frequency Percent Valid Berger paints 27 Elite paints Total 8 35 77.1 22.9 100.0 Cumulative Valid Percent Percent 77.1 22.9 100.0 77.1 100.0

On the other hand I observed different scenery in Narayongonj area. Here the growth of Asian paints is mentionable. Almost 50%, In N.gonj, Asian paint has gained a significant market share. Because, Successful strategy Painter influence Dealer influence Another mentionable point is RAK. Although it is new in market, but dramatically it influenced the market. Already it has convinced many of painters. PREFERABLE BRAND IN NARAYONGONJ:

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Preferable Brand Frequency Asian paints 119 Berger paints 154 RAK paints 15 Ujala paints 1 Total 289 Percent 41.2 53.3 5.2 .3 100.0 Cumulative Valid Percent Percent 41.2 41.2 53.3 94.5 5.2 99.7 .3 100.0 100.0

Valid

Figure: Painters Preference in Jatrabari

Figure: Painters Preference in Narayongonj

4.4.2 Reasons to choose the brand:

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The central feature of this part is to know the brand acceptance in the market place. This means having opt-in procedures instead of opt-out systems. Moreover this helps to demonstrate the seriousness of the company while launching any new market strategy. Most of the respondents answered about quality that they prefer. Reasons to choose (Jatrabari) Reason To Choose This Brand Frequency 21 1 11 1 1 35 Percent 60.0 2.9 31.4 2.9 2.9 100.0 Cumulative Valid Percent Percent 60.0 60.0 2.9 62.9 31.4 94.3 2.9 97.1 2.9 100.0 100.0

Valid Quality Brand image Customer demand Incentive from dealers Incentive from companies Total Reasons to choose (Narayngonj)

Reason To Choose This Brand Frequency 21 1 11 1 1 35 Percent 60.0 2.9 31.4 2.9 2.9 100.0 Cumulative Valid Percent Percent 60.0 60.0 2.9 62.9 31.4 94.3 2.9 97.1 2.9 100.0 100.0

Valid Quality Brand image Customer demand Incentive from dealers Incentive from companies Total

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Jatrabari

Narayangonj
4.4.3 Benefits from dealers:
In the following section, definitions and classifications of the painters benefit concept are presented to obtain a more comprehensive vision of this environment and framework. I also mention the impact on the relationship with painters. At last I bring up the

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ambivalence between the personal characteristics and the mass-communication features of paint industry.

Benefits from Dealers (Jatrabari)

Benefits from Dealers (Narayangonj)

4.4.4 Types of benefits from dealers:

Dealers give various facilitiesThe first step to know the comparative market strategy. Collect confidential information is another important function about the competitors from various sources. In jatrabari area, painters orated that usually they dont get facility from the dealers. But in Narayongonj, painters get enough facilities from the dealers. Types of benefits from dealers (Jatrabari) Types of Benefit Frequency 2 1 4 7 28 35 Percent 5.7 2.9 11.4 20.0 80.0 100.0 Valid Percent 28.6 14.3 57.1 100.0 Cumulative Percent 28.6 42.9 100.0

Valid

Missing Total

Credit Discount Commission Total System

Types of benefits from dealers (Narayangonj)

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Types of Benefit Frequency 1 110 176 287 2 289 Percent .3 38.1 60.9 99.3 .7 100.0 Valid Percent .3 38.3 61.3 100.0 Cumulative Percent .3 38.7 100.0

Valid

Discount Commission Others Total System

Missing Total

4.4.5 Benefits from company:

In the following section, definitions and classifications of the painters benefit concept are presented to obtain a more comprehensive vision of this environment and framework. I also mention the impact on the relationship with painters. At last I bring up the ambivalence between the personal characteristics and the mass-communication features of paint industry.

Benefits from company (Jatrabari) (Narayangonj)

Benefits from company

4.4.6 Types of benefits from company:

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The first step to know the comparative market strategy. Collect confidential information is another important function about the competitors from various sources. In jatrabari area, painters orated that usually they dont get facility from the dealers. But in Narayongonj, painters get enough facilities from the dealers. Types of benefits from company (Jatrabari) Types pf Benefit Frequency Valid Lunch and dinner Gift Scratch card Lottary Money Total System 2 10 8 2 2 24 11 35 Percent 5.7 28.6 22.9 5.7 5.7 68.6 31.4 100.0 Valid Percent 8.3 41.7 33.3 8.3 8.3 100.0 Cumulative Percent 8.3 50.0 83.3 91.7 100.0

Missing Total

Types of benefits from company (Narayangonj): Types of Benefit Frequency Valid Lunch and dinner Gift Incentives Total System 96 190 2 288 1 289 Percent 33.2 65.7 .7 99.7 .3 100.0 Valid Percent 33.3 66.0 .7 100.0 Cumulative Percent 33.3 99.3 100.0

Missing Total

4.4.7 Painters attraction:

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In most cases, painters get benefit from the company. Because painters have mentionable impact in buying decision. This idea has been stated as a result of a qualitative research based among others on interviews with experts. However, this survey helps to launch new business policy. According to the survey, it is clear that most of the painters can be convinced by commission.

Jatrabari

Narayangonj

4.4.8 Training from company:

Most of the respondents answered that no company provide any training program to them. So this is an opportunity to enter in their mind. In both areas significant respondents told that they dont get any training program from company. Training from company (Jatrabari) Training from Company Frequency 5 30 35 Percent 14.3 85.7 100.0 Valid Percent 14.3 85.7 100.0 Cumulative Percent 14.3 100.0

Valid

yes no Total

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Training from company (Narayangonj): Training from Company Frequency Valid yes no Total 6 283 289 Percent 2.1 97.9 100.0 Valid Percent 2.1 97.9 100.0 Cumulative Percent 2.1 100.0

4.4.9 Use of color bank:

Bergers one of the prime objectives is to provide best customer support-connecting consumers to technology through specialized services like free technical advice on surface preparation, color consultancy, special color schemes etc. To bolster customer satisfaction, Berger has recently launched Home Decor Service from which once can get an array of services pertaining to painting. By this question, BPBL can visualize the market acceptance.

Jatrabari Yes 100% No 00.00% Yes 88.27%

Narayongonj No 1.73%

4.4.10 Reasons to prefer color bank:

The sheer innovation and development drive is reflected on the various products Berger has so far launched in this market. The product range includes, specialized outdoor paints protective of the worst weather conditions, Color Bank, superior Marine Paints, Textured Coatings, Heat Resistant Paints, Roofing Compound and Epoxies. In each of the product category, Berger has always been the pioneer and will continue to do so proudly. So this statement can help BPBL to launch new program. Jatrabari Narayangonj

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Chapter: 5 Findings and Recommendation

Berger Paints Color Bank has a huge demand in the market and the customers are very much satisfied with it. Berger Paints main motive is to increase the customers satisfaction level, like if the customers are 100% satisfied then Berger would like to increase the satisfaction level to 120%. The researcher also included the different influencing parties that affect the level of customer satisfaction. It is of common understanding that if dealers are satisfied, then there will be a positive force in attempting to influence and satisfy customers. Such can be said for the other influencing parties like the painters. The operating performance of BPBL is good although its profitability parameters are in decreasing trend. Its sales revenue stood at tk.2872.4 million, tk.2221.12 million, tk.1737.63 million, tk.1465.26 million & tk.1307.67 million in the year 2006 to 2002 respectively on an accepting limit.

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The gross profit margin of BPBL is around 32.85% in 2006 which is lower than previous four years but it is acceptable due to increase of raw materials price & giving higher discount. BPBL total asset turnover stood at 2.20 times, 1.59 times, 1.47 times, 1.21 times & 1.13 times in the year 2006 to 2002 shows an increasing trend of turnover. In our survey I have come to understand about some components of the customers mind. I accumulated the following information: 1. Brand recall 2. Experience and reason to choose the brand 3. Most usage and effective brands 4. Decision making 5. Painting problem 6. Facility from dealers 7. Color bank Most dealers are bound to store demandable brand like Berger and Elite and sometimes Asian. In suburban areas customers are not conscious about paints so dealers can influence them easily. In this dealers can deal with comparatively low quality or minimum demandable product. On the contrary companies are also trying to attract dealers by dealership program. In my observation, it is depicted that 63.85 % dealers keep berger paints, 26.92 % dealers keep Asian, 7.69 % keep pailac, 3.86% keep ujala, 3.85% keep elite, and 3.85% keep RAK. According to the dealers responses most of the customers continue their buying process by own self. Here media has a little impact on buying. But advertising can create the image on the customers mind. I talked with many customers and understand their mind. Following figure narrates that 73.08 % come to the store without reference. These customers may judge either quality or price. Painters can also refer some customers. These types of costless relationship may support dramatically in sales. Dealers provide only little discount and commission sometimes only refreshment to the painters. Except influence in buying decision painters can refer dealers shop to buy. In my observation almost 85 % dealers maintain relation with the painters. And other 15 % dont maintain any relationship.

Conclusion
Berger Paints Bangladesh Limited claims that they control 65% of local paint market because with its strong distribution network, Berger ha reached almost every corner of Bangladesh. The nationwide dealer network, supported by seven sales depots strategically located at Dhaka, Chittagong, Khulna, Bogra, Rajshahi, Comilla and Sylet has enabled them to strategically cater to all parts of the country. Berger also provides

47

customer support connecting customers to technology through specialized Home Decor service giving free technical advice on surface preparation, color consultancy, special color schemes etc. To bolster customer satisfaction, Berger launched Illusion-the first designer paint solution. By analyzing it can be said with certainty that if Berger can maintain the quality of paints and coatings, it will be able to preserve the position of marker leader. The near competitor of Berger is far away from it. Berger is showing an upward trend in every aspect of financial statements. Moreover, Berger has a little amount of bank borrowing which gives its investors the great dependability upon the company. Bergers profit after tax has a clear indication of its financial viability. Berger is also contributing a lot in the national economy by paying a huge value added tax (VAT). Berger Paints Bangladesh Limited won the ICAB national Award as best published Accounts and reports in the manufacturing category in the year 2005 and 2006. With the support of the countrys eminent artists and the enthusiastic participation of young neophytes, Berger gives Berger Young Painters Competition Award.

Bibliography
Journals
1. Anderson, R.E, 1973, "Consumer dissatisfaction: the effect of disconfirmed

expectancy on perceived product performance", Journal of Marketing Research, 10, 38-44.

2. Boulding, W, Kalra, A.,, Staelin, R., Zeithaml, V.A., 1993, "A dynamic process

model of service quality: from expectations to behavioural intentions", Journal of Marketing Research, 30, 7-27.
3. Cardozo, R.N, 1965, "An experimental study of consumer effort, expectation and

satisfaction", Journal of Marketing Research, 2, 244-9.

4. Tse, D.K, Wilton, P.C, 1988, "Models of consumer satisfaction: an extension",

Journal of Marketing Research, 25, 204-12. Books 1. Kotler, Philip, Armstrong Gary (2011-2011), Principle of Marketing, 12th Edition, Pearson, Prentice Hall

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2. Malhotra, Naresh, K (2008), Marketing Research & Applied Orientation, 5th Edition, Prentice Hall-India 3. Website 1. Berger Paints Bangladesh Limited, An overview: URL http://www.bergerbd/products/colorbank.html 2. http://www.google.com 3. " The Questionnaire Design Process," http://profitmatters.ca/Articales/Questionnaire %20Design.pdf

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