Role of Influencer & Dealers in Promoting Loyalty Program in Paint Industry A Study On Nerolac Paints, Ranchi

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Students Declaration

I, Mr. Subrat kumar Singh Yadav hereby declare that the Project Work titled Consumer Brand
Preferences with regard to Decorative Paints (A comparative study of Asian Paints and Berger
Paints) is the original work done by me and submitted to the BPUT in partial fulfillment of
requirements for the award of Master of Business Administration in Marketing (Area of
specialization) is a record of original work done by me under the supervision of Dr Mr. A Mohan
Murlidharan.

Enroll/Reg. No:

Date

Signature of the Student


BijuPatnaik Institute of IT & Management
ePublications@biitm

Summer Project Report Management

30 -08 - 2014
ROLE OF INFLUENCER & DEALERS IN PROMOTING
LOYALTY PROGRAM IN PAINT INDUSTRY: A STUDY ON
NEROLAC PAINTS, RANCHI
Subrat Kumar Singh Yadav
BijuPatnaik Institute of IT & Management Studies, Bhubaneswar
Affiliated to BijuPatnaik University of Technology, Odisha
BPUT Registration Number: 1306258032
E mail: subratkumarsinghyadav@gmail.com
Internal Faculty Guide: Dr. A. Mohan Murlidhar., BIITM, Bhubaneswar
External Corporate Guide: Mr. Kumar Rahul (Area Sales Manager)
Mr. Joydeep Mukherjee (District Sales Associate)
Follow this and additional works at: http://www.biitm.ac.in/epublication

Recommended Citation
Subrat Kumar Singh Yadav. (2014) ROLE OF INFLUENCER & DEALERS IN PROMOTING LOYALTY
PROGRAM IN PAINT INDUSTRY: A STUDY ON NEROLAC PAINTS, RANCHI
This Summer Internship Project Report is brought to you by the Faculty of Management at ePublications@biitm.
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NEROLAC PAINTS RANCHI

Abstract:
Kansai Nerolac Paints Ltd (formerly known as GoodlassNerolac Paints Ltd) is largest in industrial paint and
second largest decorative paint company based in Mumbai. It is a subsidiary of Kansai Neolac paints,
JAPAN. It is engaged in the industrial, automotive and powder coating business. It develops and supplies
paint systems used on the finishing lines of electrical components, cycle, material handling equipment,
bus bodies, containers and furniture industries.

Number of Pages in DOCX / PDF File: 58

Keywords:
Loyalty Program, Marketing Channels, Distribution, Branding, Segmentation Strategy,KNPL's marketing
strategy, KNPL Ranchi,ProductRange,Painters, KNPL Emulsion, KNPL Enamel , KNPL Woody Range, KNPL's
dealers and influencers, Customers satisfaction, Nerolac Premium Painters(NPP) scheme,Competitors analysis,
etc.
Disciplines:
Management

This Summer Internship Project Report is brought to you by the Faculty of Management at ePublications@biitm.

NEROLAC PAINTS RANCHI
By Subrat Kumar Singh Yadav
Date of Publication: 30-08-2014
Introduction
Kansai Nerolac Paints Ltd (formerly known as GoodlassNerolac Paints Ltd) is largest in industrial paint and second largest
decorative paint company based in Mumbai. It is a subsidiary of Kansai Nerolac paints, JAPAN. It is engaged in the industrial ,
automotive and powder coating business. It develops and supplies paint systems used on the finishing lines of electrical
components, cycle, material handling equipment, bus bodies, containers and furniture industries.
History
1920 : It started as Gahagan Paints & Varnish Co. Ltd. at Lower Parel in Mumbai.
1957: Goodlass Wall Pvt. Ltd. grew popular as GoodlassNerolac Paints (Pvt.) Ltd. Also, it went public in the same year
and established itself as GoodlassNerolac Paints Ltd. .
1976: GoodlassNerolac Paints Ltd.GNP) became a part of Tata Forbes Group on acquisition of a part of the foreign
shareholdings by Forbes Gokak.
1983: GoodlassNerolac Paints Ltd. strengthened itself by entering in technical collaboration agreement by Kansai Paint
Co. Ltd., Japan and Nihon Tokushu Tokyo Co. Ltd., Japan.
1999: Kansai Paint Co. Ltd. , Japan took over the entire stake of Tata Forbes group and thus GNP became wholly owned
subsidiary of Kansai Paint Company Ltd.
2006: On 11 July, Goodlass Paint Ltd. name has been changed to Kansai Nerolac Paints Ltd.
Products and Services
Technologically innovative products are the company's hallmark. Kansai Nerolac Paint offers differentiated products with a focus
on being eco-friendly and healthy. Kansai Nerolac Paints key products and brands includes the following:
Decorative Paints: Interior wall paints, Exterior wall paints, Wood surface paints and Metals surface paints.
Automotive Coatings :Pre-Treatment Chemicals, Electrodepositing. Intermediate Coats/Primer Surfacers, Topcoats,
Clear Coats, Touch Up Paints, Auto Refinishing Products, Heat Resistant Paints, Underbody Paints & PVC Sealants
&Regards Transit Protection Films.
Performance Coatings: Performance Coating are available for wide range of products. For household appliances and
metal fittings in factories, there is a comprehensive range of general industrial coating systems like P.T. chemicals,
Primers and lacquers, Coil Coat, Heat Resistant Paints & Metal Decoration Coatings. Powder Coating is now increasing
in popularity because of its high quality, resistance to corrosion, the apparent ease of application and the
environmental friendliness of the technology.


CONTENTS

Chapter Page
1 INTRODUCTION
1.1 History
1.2 Overview of Paint Industry
1.3 Types of Paints
1.4 How Does the Industry work?
1.5 Technology and Paint Market
1.6 Loyalty program

11-25
2 Introduction of the Organization
2.1 History of the Organization
2.2Organizational structure
2.3Market status of the Organization
2.4Competitors of the Organization
2.5Product Profile

26-54
3 Research Methodology and objectives
3.1 Objective of the Study
3.2 Scope of the Study
3.3 Methodology of the Study
3.4 Limitation of the Study
55-60
4 Data Analysis and Finings 61-70
6 Conclusion and recommendation 71-73
Bibliography
Annexure
74-79

CHAPTER 1
INTRODUCTION
1.1 About the paint Industry
1.2 History
1.3 Overview of Paint Industry
1.4 Types of Paints
1.5 How Does the Industry work?
1.6 Technology and Paint Market
1.7 Loyalty program

1.1 ABOUT THE PAINT INDUSTRY

To most people paint is the color on the wall of their home the color of their car boat or caravan paint is more than just the color
though. It is a material that is applied as a liquid and dries by a variety of chemical process to a solid.
We applied paint for:
Decorative
Protection
Identification
Sanitation

What is paint Made of?

Paint typically consist of pigment, resin, solvent, and additives,
Pigment
Pigment is granular solids incorptated in the paint to contribute color. The pigment
Is responsible for the color of the paint and ability to hide what is underneath it .pigment can be classified as either natural or
synthetic types.
Natural pigment includes various clays, calcium, carbonate .mica. Silicas, andtacls.
Synthetics would include engineered molecules, claimed, clays, Blanc fixe, precipitated calcium carbonate and synthetic
phylogenic silicas.

Resin
Waterborne paints most often use acrylic emulsion polymers as binders. these come in a wide verity of types and combination
common acrylic polymer types are based on monomers such as ,ethyl methecrylate and butyl methecrylate. The most common
solvent based resins are termed alkyd resins that are normally used in enamel paints urethane alkyds often used in enamel
paints.
Solvent
The main purpose of the solvents is to dissolve the polymer and adjust the viscosity of the paints. It is volatile and does not
become part of the paints firm.
It is volatile and does not become part of the paints.
Solvent borne also called oil based paints can have various combination of organic as the diluents,
Including aliphatic, aromatics, alcohols ,ketones, and white sprit.

Additives
To enhance certain properties such as case of brushing mould resistance scuff resistance drying and sag resistance.
It is used in small amounts to modify the firm or paints.
Overview of paint industry

The paint industry is currently placed at RS.85.0billion and has been showing consisting double digit growth from 1991.the
organized sector consist of 65-70% whereas the unorganized sector still control a large portion of 30-35%.

The growth of the domestic paint industry is attributes to the boom in the housing sector and the strong growth in the
automobile sector. The automobile sector has done well over past 10 year with an average growth of 7-8% the auto sector is
likely to grow at 8-10% due to healthy growth in 2-wheeler and car segment .however the volume growth in the paint industry
may not be in line with the sector growth as a quantity of paint per vehicle is declining over a period, due to continuous
innovation.

Around 70% of the domestic paint industry revenues come from the decorative segment whereas the industrials segment
constitutes around 30% in FY05 the manufacturing sector has grown good activities with new project in roads ports and
industrial segment.

The Indian paint industry is governed by 4 major players and is largely dependent on the crude oil prices as most of the raw
material are derived from crude oil. The price of derivatives of crude oil rose more than crude oil due to the lag effect.

The decorative segment is likely to do better than the industrial segment. Thr decorative paint is likely to grow at 12%whereas
the industrial segment is expected to grow by 8-12%.

1.2TYPES OF PAINTS

Two major classifications of paints are:
Industrial paint
Decorative paints
Segment position in the industry

Decorative paints
Caters to the housing sector
Premium decorative paints are auricle emulsions used mostly in the meters. The medium range consists range
consists of enamels popular in smaller cities and towns. Distempers are economy products demanded in the
suburban and rural markets.
Distribution network is the key.
Nearly 20 percent of all decorative paints sold in India are distemper.

Industrial paints

Include powder coating ,high performance coating and automatic and marine paints.
Two thirds of the industrial paints produced in the country are automotive paints.
Technology superiority and tie-up with automobile manufactures.
industrial 30%
Decorative 70%
asian paint
19%
ICI
6%
nerolac
29%
jenson 7 nicholson
14%
berger paint
11%
shalimar
13%
others
8%
decorative segment

Enamels 50%
Distemper 19%
Emulsions 17%
Exterior coating 12%
Wood finishes 2%

HOW DOES INDUSTRY WORK?

Raw materials: on an average raw material constitute 56% of the total expenditure in paint companies, titanium um dioxide is
one of the major raw material and price fluctuations in its cost have direct and substantial impact on the cost of production
Crude oil derivatives are the others major raw material and have similar impact. Apart from these a large number of other raw
material are used for adding specific properties to the wide product range offered by the industry.

End user: the decorative paints segment product find use in household and construction whereas the industrial segment
products find use in automotive industry, consumer durables industry and other OEMs.

TECHNOLOGY

Dealer and contractor plays a very important role in the purpose decision for paints as they are major influences, as they are
major influences. The town wise mapping of dealer network is required to ensure increase in the width of the network.that is
number of dealer across the country and the depth that is give consumer a better choice of product.

The installation of tinting machine has been an important inciting in increase the presentation and helping the dealers to serve
the consumer betters. While decreasing the inventory costs, this will increase decorative sale the latest value added serve being
provide by the dealer network is the magic eye.

Th machine can consumer conjure up 60 00 00 different colors. As many as the naked eye can detect. This goes with
commitment to provide technological breakthrough to consumer and will definitely give the consumer an edge in the market.

PAINT MARKET
Organized sector can be divided into 2 distinct segments
Industrial segment growing at 15%(us$230million)
Architectural segment growing at 8%(us$500million)
Overall growth is 10 to 12%
Basic of competition in architectural segment
Distribution
Brand image
Range of product
Basic of competition in industrial segments
Access to technology
Technical servicing
Compounded sales volume growth of the organized sector was 12% in the last six year
Entry barriers of decorative paints import
Brand equity of present player
Distribution network
Cost of modification of product
Top six manufacture have expanded capacity by 50% to service peak demand
Yet, after opening up the Indian market, some multinational paint companies are making efforts to get a foot hold in
the Indian market.
1.1Market segment
Architectural 70%
Industrial 30%
1.2Architectural sector composition
Enamels 50%
Distemper 19%
Emulsions 17%
Exterior coatings 12%
Wood finishes 2%
1.3Architectural sector features
Enamels steady growth
Emulsions shit form distemper & enamels to emulsions. High growth area
Distempers high growth in low priced low quality distemper as consumer are upgrading form lime wash
Exteriors emulsion fastest growing segment in the Indian market

1.4Industrial sector composition
Automotives paints-50%
High performance coating-30%
Powder coating -10%
Coil coating-5%
Marin paints-5%
1.5Automotive sector
High growth sector with a no of new entrants like mercers benz, Mitsubishi, Daewoo.Hyundai,Honda fiat,
General motors , ford. However, recently there is some slackness in auto demands. Two wheeler market
booming due to demand from large Indian middle class.
1.6Powder coating
Increase growth due to increased sales of white goods & auto ancillaries
1.7High performance coating
Steady growth due to increase due to increase investment in refinery segment & power sectors , particularly
thermal & nuclear
1.8growth areas for the Indian paint industry
Automotive tinting system
Indian rural market
Auto OEM finish
Auto refinish
Exterior coating
1.9 new developments
New foreign equity
Kansai paints acquired controlling interest in good lassnerolac-the second largest Indian paint company. There are talks
about other companies also being taken over by foreign companies. Since foreign companies have actually opened
shops in India.
2.0 tinting machine
Concept accepted by the Indian market
More than 1500 machine installed in the last five year
Has changed face of Indian paint retailing.
2.1 market size
Total market size us$1400 million- organized sector- 55%- unorganized sector- 45%
Organized sector dominated by six large players
Unorganized sector comp arising about 2500 units manufacturing various category of paints

Loyalty Program in Paint Industry
ROLE OF INFLUENCER & DEALERS IN PROMOTING LOYALTY PROGRAM IN PAINT INDUSTRY: A STUDY ON NEROLAC PAINTS
RANCHI" (Nerolac Premium Painters)(NPP) (Theoretical & Practical Aspect)
What is loyalty programmed and how they effect?

There are more loyalty programmed floating around the world than money before examine how loyalty program work, it is
important to define exactly what is meant by loyalty in the contest of business development and retention.

Companies that offer loyalty reward programmed belief that there programmed have a long term positive effect on customer
evaluation and behavior. However if loyalty rewards programmers increased relationship duration and usages level customer
will be increasingly expose to the complete of service of experiences including experience that may cause customer to shift.

Loyalty means loyalty is a positive belief generate over the course of multiple interaction, in a value that a company and its
product and service provide which leads to continue interaction and purchase over time

Loyalty should not be confused with customer satisfaction although loyalty is build on satisfaction organization can have
satisfaction without loyalty. Customer satisfaction is an opinion measure about company performance and how customer
feel their needs wear met in past interaction.

Basic goals of loyalty program

Companies typically have several goals when lunching loyalty program, all of which are focus of generating gather profile from
programmer member. These goals include:

Improving knowledge of customer
Leveraging the knowledge to increase the sales of undersold and highly profitable product.
Increasing customer retention and purchase frequency.

The most common type of loyalty programmed begins when a customer enroll from that point forward the organization
accurately tracks information about that member capture the members purchase point and credit point to the member based
on a rule on the store on a loyalty engines.
The specific type of behaviors that is tracked and rewarded and unique to each company and is typically linked to the
organizational profitability derives.

Goal of loyalty programs

Generally the goal of these programs is to establish a higher level of customer retention in profitable segment and providi ng
increasing satisfaction and value to certain customer organization have long sought to reward the loyalty of preferred
customer with enhance service .

Basic benefit of loyalty programs

The basic benefit is:
Shift- Acquire new customer
Lift increase the spending of existing customer
Retention-improve the natural rate of customer
Profit mix-shift spending to higher margin of product.

Impact of loyalty programs

Companies that offer loyalty programs believes that there program that have a long term positive effect on customer evaluation
and behavior.

Advantages
The basic premise is simple for customer understand
Avoid price discounting
More targeted
Use point promotions on brand that do not allow discontinue.
Reward employee
Breakage

NEROLAC PREMIUM PAINTER (NPP)
Nerolac Premium Painter or NPP is a point based reward program offered by Kansai Nerolac Paints Ltd., the
participation in program is by invitation only. By registering in NPP the painters can get reward points on their every purchase of
Neolac paints. On these points further they can get various gift items from the company
Nerolac Premium Painters meets across more than 50 cities across India. This program is an umbrella annual program
which began mid-April and will continue until June.
Objective
The objective of the NPP is to build an authenticated database of new painters.
The target is to create a customized database of close to 10,000 new painters on board with Nerolac, which is
conducted in conjunction with the marketing team, local sales team and the agency team working in close tandem to
create a platform which meets the end objective.
The painters invited are taken through the company vision, product portfolio and benefits of association.
The program is just the kind of campaign that KNP thrive on to showcase its strengths, and partnering in these
campaigns gives insights into the working of a client and his internal and external customers.
Launching Nerolac Premium Painters' club (NPP) loyalty program is part of KNPLs strategic move to connect with our
influencers.
The Company believes that it is important to reach out to the influencers as well. Painter Loyalty program called
Nerolac Preferred Painter (NPP) is strengthened and in addition a dedicated call centre was set up for Influencers like painters.
PROCESS
Dealer Selection
All Machine dealers above 10L turnover in FY 2013-14
Growth over FY 2013-2014 business. (Else program may get discontinued from de-growing counters)
+2 to 3 strategic dealers per depot. (Dealer who will be able to qualify above turnover and machine criteria)
Entry Gate for Dealer
Minimum 300 liters of emulsion sales up to 15
th
April 2014
Active Painter Criteria & Target
Painter who will achieve minimum early bird slab (1k points) will be treated as Active painter.
There is requirement of 10 active painters from CCD machine dealers and 5 active painters from MCD machine dealers.
REGISTRATION PROCESS
Existing Painters
No registration for Existing painters
There is no need of fresh registration for existing member. If member forgotten their card number then they can get it
by sending a SMS GET to 9212492124 from their register mobile number.
However it is mandatory to submit information requested in registration form and provide supporting document.
Fresh permanent card will be issued to painter once he become active member (1k points) in current scheme period.
New Painters
Registration booklet contains
Registration form
Information on registration process
Temporary NPP card with unique number. (Card is perforated to registration booklet)
Instant Registration process
Registration through SMS
Painter can register himself in program by sending SMS from his own mobile number.
Type SMS as:
REG<Space>Card Number (mentioned on NPP card perforated with registration form)
Send it to 9212492124
Registration through Missed Call
Painters also can register himself in program by giving missed call.
Painters to give missed call on 18004192424 from his own mobile number and NPP center will call back to register painter.
Painter to keep registration card handy for registration.
Mandatory Registration Forms
SMS and missed call facility is provided for instant registration.
Painter will be able to collect point after instant registration process.
However collection of fully filled registration form each painter is mandatory for every depot.
Painter will not be able to initiate redemption before submitting filled registration form.
It is responsibility of every depot to submit NPP forms to NPP center.
POINTS COLLECTION PROCESS
Only dealers are authorized to upload purchase of painters.
Purchase updating process is also diverted on missed call facility from this year onwards.
Dealer has to give Missed call on 18004192424 and NPP center will call back to upload painter purchases from dealers.
In case of more than 100 liters of purchase transaction in one time from single painters, Site details will have to be shared,
which may further be subject to verification. (Site Detail: Name of Site, Name of Site Owner and his phone number).
System will not accept purchases beyond assigned limit. Hence dealers will be informed in same call if purchase goes beyond
assigned limit of dealer sales.
Dealers will able to upload his purchase only within 2 months of his billing date of respective products, e.g. his purchase on 1
st

April 2014 can only be used for points updation till 1
st
June 2014.
GIFT REDEMPTION PROCESS
Only painters are authorized to raise redemption request.
Flexi Redemption (Any point of time when painter has sufficient points to redeem gift of required slab)
Redemption through SMS & Missed Call
Painter to send SMS from this register mobile number
REDEEM to 9212492124 OR To give Missed Call on 18004192424
NPP center will call back to painter and will enter his request in system.
Painter to request his dealer to authenticate this redemption request via a redemption form, (NPP center will send
redemption forms to depots separately in early May 14)
Post receipt of redemption form, NPP will dispatch gift directly to dealer counter. NPP center also will inform painter
about gift dispatch status.

SCHEME PRODUCTS AND POINTS
CATEGORY Products Points
DESIGNER FINISH Ideaz 30
INTERIOR EMULSIONS
Impression eco clean,24 c 12
Lotus touch 10
Beauty gold 6
Beauty smooth 2
Little master 1
EXTERIOR EMULSIONS
Excel total 12
Excel 8
Suraksha, Surakaha plus, Suraksha
Advance
2
DISTEMPER NAD 0.5
ENAMEL
Stain enamel 2
NSE 1
PRIMER Exterior primer 1
WOOD FINISHES
2k PU(Top Coat & Seller) 10
Melmine (top coat & seller) 4
Clear acrylic lacquer 1
NC standing Sealer 1
1k PU 1

A Branded Mobile Phone worth Rs. 1000 on first 1000 points.
No deduction of these 1000 points from scheme
Offer will be valid for members registering till 5
th
July 2014 and have collected 1000 points
within 3 months from the date of registration.
GIFT SLAB
Points Gift Option 1 Gift Option 2
2500-3499
Non Stick Cookware Set worth Rs.
1000
Bank Gift card worth
Rs.1000
3500-5000 Dinner Set Worth Rs.1400
Rs.1400
5001-8000 Mixer Grinder Worth Rs.2000
Rs.2000
8001-10000 Induction Cooker Worth Rs.3200
Rs.3200
10001-12000 Digital Camera Worth Rs.4000
Rs.4000
12001-15000 Sewing Machine Worth Rs.4800
Rs.4800
15001-18000 HT +DVD Player Worth Rs.6000
Rs.6000
18001-20000 Air Cooler Worth Rs. 7200 Bank Gift card worth 7200
20001-25000 Washing Machine Worth Rs.8000
Rs.8000
25001-30000 Tablet Computer Worth Rs.10000
Rs.10000
30000-35000 Refrigerator Worth Rs.12000
Rs.12000
35001-40000 24 inch LCD TV Worth Rs.14000
Rs.14000
40001&Above 0.75 ton Window AC Worth Rs.16000
Rs.16000

CHAPTER2

Introduction of the Organization

History of the Organization
Organizational structure
Market status of the Organization
Competitors of the Organization
Product Profile

Introduction of the Organization
Kansai Nerolac Paints was at first known as GoodlassNerolac Paints. The Kansai Nerolac Paints Ltd produces various kind of
products that range from industrial sophisticated coating for the industries to architectural coating for hospital, Homes and
Office.
Kansai Nerolac Paints Company has manufacturing units situated in Vatva, Lote, Parshuram, Jainpur, Bawal and Perungudi.
The total production capacity of the pants of the company is around 161,100 TPA and all the plants are technologically
advanced and comparable to most state-of-the-art plants in the world. Kansai Nerolac Paints has a very wide network of
more than 11,000 dealers spread all over the country.
Kansai Nerolac Paints is a market leader in the sector of automotive segment where it supplies more than 90% of the
required original equipment. Kansai Nerolac Paints is the second biggest company in the coating sector in India where it has
more than a 20% market share. The company has entered into collaboration with OshimaKogyaCompany , Japan and E.I.
Du-pont de Nemours & Company Inc. USA for the Manufacture of various innovative items and a brand new product line.
The total income of the Kansai Nerolac Paints Company amounted to Rs2,162.19 crore in 2011. The net profit of the
company amounted to Rs. Rs215.89 crore. Kansai Nerolac Paints Ltd. is planning an investment of Rs 400 crore for capacity
expansion by Septum
ber this year, and is eyeing a double-digit revenue growth in FY12.
Kansai Nerolac Paints prides itself on its organizational strength such as its value, vision, R&D, experience, strategic
alliances, marketing skill and its extensive distribution network. The various plants of Kansai Nerolac Paints have been
certified by agencies such as BVQI and Intertek, ISO 14000, ISO 9000 2000, OHSAS 18000 are just some of the certification
that Kansai Nerolac Paints has received for its efficiencies in work processes and standards.
Kansai Nerolac Paints has become on e of the top most companies in the companies in the coating sector in India due to its
quality of product which are the best market. The company has a presence in several Indian states such as West Bengal,
Assam, Gujarat, Haryana, U.P, M.P, and Maharashtra. Kansai Nerolac Paints is headed by Mr.Jamshed J. Irani. Who is the
chairman of the company. Mr. HarishchandraBharukha is the managing director of Kansai Nerolac Paints which employs
more than 2000 people.
History of the Organization
KNP imparked our journey in 1920 as Gahagan Paints and Varnish Co. Ltd at Lower parel in Bombay. In 1930 three British
companies merged to formulate lead industries group ltd. In 1933, Lead Industries Group Ltd. Acquired entire share capital
of Gahagan paints in 1933 and thus, Kansai wall (India) Ltd. Was born.
Subsequently, by 1946, Kansai Wall Ltd. was known as Kansai Wall Pvt. Ltd. In 1957, Kansai Wall Pvt. Ltd. grew popular as
Kansai Nerolac Paints (Pvt.) Ltd. Also it went public in same year and established itself as Kansai Nerolac Paints Ltd.
In 1976, Kansai Nerolac Paints Ltd. becomes a part of the Tata Forbes Group on acquisition of a part of the foreign
shareholder by Forbes Gokak.
In 1983, Kansai Nerolac Paints Ltd. strengthened itself by entering in technical collaboration agreements with Kansai Paints
Co. Ltd., Japan and Nihon Tokushu Tokyo Co. Ltd. Japan.
In 1986, Kansai Nerolac Paints Ltd. turned into a joint venture of the Tata Forbes and the Kansai Paints Co. Ltd., with the
latter acquiring 36% of its share capital.
In 1999, Kansai Paints Company Ltd., Japan took over the entire stake of Tata Forbes Group and thus KNP become a wholly
owned subsidiary of Kansai Paint Company Ltd.
In 2006, On the 11
th
of July, Kansai Nerolac Paints Ltd. name has been changed to Kansai Nerolac Paints Ltd.
During the journey of continuous performance excellence, we have entered into much technical collaboration with other
industry leaders such as E.I. Du-Pont de Nemours & Company Inc., USA and OshimaKogya Company Ltd., Japan for our
different products.
KNPs incessant journey of successes will go on backed by our present human asset of over 2000 professional and sales
turnover of Rs. 1484 Crores.
KNP are esteemed to be a subsidiary of Kansai Paints Company Limited, which is the largest paint manufacturing company
in Japan and among the top ten coating companies of the world.
KNP are the second largest coating company in India with a market share of over 20%.
KNP are the market leader in industrial/ automotive segment supplying over 90% of the OEM requirements.
KNP are the leader in power coatings.

Corporate Values
Vision, Values and Culture
Responsive
Innovation
Team Orientation
Entrepreneurial
Simplicity
These are the values that form the foundation of our business and provide the blueprint that sets us in the right
direction, each time.
In today's dynamic business environment, no organization can afford to survive without a thoughtful vision, a dynamic
set of guidelines and the ability to leverage global technology, as and when needed.
KNP have been at the forefront of paint manufacturing over eight decades pioneering a wide spectrum of quality
products that change the face of economy and lifestyles of people at large.
It is our vision to leverage global technology, for serving our customers with superior coating systems built on
innovative and superior product and world class solutions, to strengthen our leadership in industrial coatings and propel for
leadership in architectural coatings, all to the delight of our stakeholders.
KNP firmly believe that it is not only the vision of where we wish to go which will form a cornerstone of all our further
growth, but also our conviction to the fact that the value based proposition has to be ultimate foundation of our business.
Hence, we make it a point to ensure that all our ventures consciously internalize these values in every business
transaction.

Cultural Ethos
Vision driven organization
Employees feel pride in being part of the organization
Recognition of human dignity
Transparency and openness among employees at all hierarchical levels
Performance- linked reward system
Management and employee commitment to organization values is high
Autonomy in work is high
High commitment to quality products


The Quality Policy
It is the philosophy of Kansai Nerolac Paints Ltd., and its associates to achieve complete customer satisfaction by providing
products and services that consistently meet or exceed the customer needs and expectations, pursuant to agreed specifications,
delivery schedules and competitive prices. It is the philosophy of the company to systematically operate its manufacturing
facilities by inculcating commitment to total quality management at all levels and on a continuous basis with a view to achieving
First Time Right results in manufacture, services and other operations.
It is the companys aim to constantly reduce waste of material and effort, increase efficiencies and ensure safety of plant and
people and protection of the environment.
Open Door Policy
Working together requires that we have a friendly atmosphere based on trust and respect amongst all of us.
At Nerolac we follow an Open Door policy. Any person is free and welcomed to share good idea, suggestion, doubt, problem
about job or work place, or uncertainties about ones future in the organization. An open and transparent communication is
appreciated.

Social Responsibility
The company continues to make its due contribution to community relief and development activities and has donated both cash
and kind for the beautification of some public place in Mumbai and elsewhere. The company continued its activities directly
through trusts/agencies in community Development and social Welfare including contribution towards national defense,
medical help, education, improvement of environment etc.

Organizational Strengths
An organization is not set on pillars of brick and concrete but is set on strong inherent characteristics that make it strong for
years.
Nerolac is carrying on strong since 1920. Following are its strengths that have kept this company in good faith.

Strong vision and values
Nerolac is a company with vary clear and well- defined vision and very strong values. Clarity of vision and strong foundation of
cultural values have always kept this company in good stead. Its ethical conduct has always guarded it against any possible traps
and pit falls.
We have made sure that the distribution hurdles and the climatic vagrancies do not affect the quality of our services. This same
commitment will ensure that Kansai Nerolac will march towards its centennial year, fully dedicated and invigorated, in step with
the exciting wave of industrialization and modernization pervading through the new India.
Organizational Structure.
According to March and Simon, Organizational structure consists of those aspects of pattern of behavior in the organization
that are relatively stable and change only slowly.
It facilitates the growth of the organization. It stimulates creative thinking and initiative by proving well defined are of work with
provisions for development of new and improved ways of working.
Organizational Structure

Managing Director
Vice- President, Sales
Zonal Manager
(East)
Zonal Manager
(West)
Zonal Manager
(North)
Zonal Manager
(South)
R.S.M R.S.M R.S.M R.S.M
Unit Head,
Bihar & Nepal
Unit Head
Jharkhand
Unit Head
Odisha
Territory Sales
Incharge
Territory Sales
Incharge

Territory Sales
Incharge
onal Manager
(East)
Board Of Directors
Mr. Pradip P. Shah
Chairman
Mr.Devendra Motilal Kothari
Vice-Chairman
Mr.Harishchandra Meghraj Bharuka
Managing Director
Mr. Pradip Panalal Shah
Mr. Noel Naval Tata
Mr. Pravin Digambar Chaudhari
Whole time Director
Mr. Yoshikazu Takahashi
Mr. Hitoshi Nishibayashi
Mr. Masaru Tanaka

Key People
The people who make the company are its real assets.
The success of Kansai Nerolac has hinged on this philosophy since 1920.
Mr. H.M. Bharuka
Managing Director
Mr.Pravin Chaudhari
Executive Director - Industrial Coatings Division & Supply Chain
Mr. Anuj Jain
Director - Decorative
Mr. Yasuji Tanaka
Director - QA (Quality Assurance) & QC (Quality Control)
Mr. Abhijit Natoo
Vice President - Supply Chain
Mr. Jason Gonsalves
Vice President - Corporate Planning, Strategy & IT
Mr. Mahesh Mehrotra
Vice President - Technical
Mr. Prashant Pai
Vice President - Finance
Mr. Shrikant Dikhale
Vice President - Human Resources
Mr. Sudhir Rane
Vice President - Industrial Coatings
Market Status of the Organization
Kansai Nerolac Paints is the second largest paints manufacturer in India, according for 20% of the total paints sales. In the
industrial segment, it is the undisputed leader accounting for 40% market share. It has excellent R&D facilities and innovati ng
products. The laboratories are well equipped with the latest sophisticated instruments.
Kansai Nerolac Paints have six manufacturing facilities backed by excellent R&D facilities. It has 73 deposit/ distribution
centers strategically located all over India and a dealer and a dealer network of over 12,000.
Some of the biggest names in the Indian industry use Kansai Nerolac Paints for their products. These include Indias
most successful corporation like:
MarutiUdyog Ltd.
Bajaj Auto
ToytoKirlosker
Honda Siel
TVS Suzuki Ltd
Wheels India Ltd
Telco
Mahindra & Mahindra
Ford India Ltd
Hindustan Motors (For Lacer)
Hero Honda Motor Company
Godrej & Boyce Mfg. Ltd

Total Sales for 5 Years

Total Profit for 5 Years





COMPETITORS OF KANSAI NEROLAC

ASIAN PAINTS
The company has come a long way since it small beginning in 1942 .it was set up as a partnership firm by four friends who were
willing to take on the words biggest. Most famous paints companies operating in India at that time over the course of 25 year.
Asian paints become a corporate force and Indias leading Paints Company. It is an chemical company headquarters in Mumbai ,
India. It manufactures a wide range of paints for decorative and industrial use. Asian paints operators in 22 countries and has 29
paint manufacturing facilities in the world. Besides Asian paints, the group operates around the world through its subsidiary
Berger international limited, apcocoating, SCIB paints andtaubmans.
ASIAN PAINTS PRODUCTS
Premium emulsion - royale
Premium exterior emulsion - apex
Washable distemper - Tractor
Exterior plastic paint - Ace
Synthetic enamel - Apcolite
BERGER
It was creation of Mr.lewis Berger, who in 1760, through his shades had offered people a chance to transform their homes
through the power of imagination. Berger paints India limited has been in India since 1923.it is an Indian paints company whi ch
operators chiefly in India headquarters in Kolkata, India .it have come a long way since its inception in the year 1923.

BERGER PAINTSS PRODUCTS

Premium emulsion - luxol silk
Premium exterior emulsion - weather coat
Washable distemper - Bison
Exterior plastic paints - wall master
Textures finished exterior - weather coat texture
Synthetic enamel - luxol
Coment base paint - Durocem

AKZONOBEL

AKOZNOBEL India was previously known as ICI India .AKOZ NOBEL N.V trading as AKOZNOBEL,is a Dutch multinational active in
the fields of decorative paints performance coating and specialty chemicals .headquarters in Amsterdam the company has
activities in more than 80 countries. And employees approximately 55,000 people. Sales in 2012 wear EUR 14.6 billon following
the acquisition of ICI the company has restructured in 2 January 2008 and rebranded itself in 25 April of the same year.


AKOZNOBEL INDIAS PRODUCT

Premium emulsion - velvet touch
Premium exterior emulsion - weather shield
Washable distemper - maxlite
Exterior plastic paints - Deluxe
Textures finish exterior - super coat
Synthetic enamel - Deluxe
Cement base paint - farcocem

Products of Kansai Nerolac
Decorative Paints
Interior
Exterior
Wood
Metal
Ancillary
Interior



Little Master
PRODUCT DESCRIPTION
Nerolac Little Master Acrylic Emulsion is a specially developed economical product with a smooth Finish with good whiteness,
opacity and coverage. It is formulated by using ideal combination of pigments and extenders, dispersed in a copolymer
emulsion for smooth and pleasant matt finish.

PERFORMANCE FEATURES & BENEFITS
Smooth and pleasing matt finish.
Ease of application.
Economical product with optimum performance.

Exterior




Product Description
Nerolac Satin Enamel is specially formulated to give an excellent smooth finish resembling the

smoothness of satin to masonry, wood and metal surfaces. It can be easily cleaned to give new look to the surface.
Performance Features & Benefits
Very smooth satin like appearance
Good wash ability
Very good flow brush ability
Hard durable film

Nerolac Synthetic Enamel
Product Description
Nerolac Synthetic Enamel is a time tested and proven, high quality alkyd based enamel.
Performance Features & Benefits
Excellent Water Repellency
Good Stain Resistance
Excellent flow characteristics to form smooth and uniform finish
Excellent Hardness and Durability
Excellent Gloss.

Woods
1K PU
Variants - gloss, matt
Type of coat - Top Coat
Feature - Good Gloss, Easy to use, good value for money
Usage - Wood, Veneer

2K PU
Variants - Gloss, Matt, Sealer, Thinner
Type of Coat - Top Coat

NC Thinner
Variant - NA
Type of Coat - Thinner
Feature - Compatible with NC & Melamine based products

ANCILLARY
Beauty Acrylic Distemper
PRODUCT DESCRIPTION
Nerolac Acrylic Distemper is supplied in paste form, and it can be used for the decoration of fully matured plasterwork, concrete,
brickwork and asbestos surfaces. The paste is bound with a stable acrylic medium.
PERFORMANCE FEATURES & BENEFITS
Economical Distemper
Ease of application
Good wash ability
Eye soothing matt finish
Industrial Paints
Automotive Coating
Kansai Nerolac Paints is the market Leader in the automotive coating segment in India with a market share of over 60% with
global technology acquired from Kansai Paints Co. Ltd, Japan. Kansai Nerolac offers the latest technology in automotive painting
systems to the Indian automotive industry.
Automotive coating of Kansai Nerolac have been tested and certified by global automotive manufacturers who have set up base
in India like:-

Through its various strategic collaborations, Kansai Nerolac offers a total painting system to auto maker in India with a range of
products, starting from Pretreatment Chemical, Electro Deposition Primers, Intermediate Coats/primer surface, Solid & Metallic
top coats, Clear Touch- up Paints.
The product range is backed up by a strong technical service network of experts placed at customer end, Training programs,
VA/VE activities in co-ordination with customer resulting in ultimate delivery of optimized painting solutions. Kansai
Nerolacprovide very specific product range these are as follow:-
Product Range
Pre-Treatment Chemicals
High & Low Temperature Degreasing Chemicals
De-rusting Chemicals
Di-cationic and Tri-cationic Phosphate Chemicals
Activation & Passivation Chemicals
Surface Conditioners
Pre-Treatment Chemicals for Plastics.
Electro Deposition (ED) Primers
Polybutadine-Based Anodic Electro-Deposition Primer (AED)
Epoxy Resin-Based Cathodic Electro-Deposition Primer (CED)
Acrylic Resin-Based Cathodic Electro-Deposition Primer (ACED)
Intermediate Coats / Primer Surface
The Intermediate Coats are available in white, light grey, dark grey, red, blue and other specific colors as required by OE
manufacturers.
Top Coats
New technologies in top coats such as 3 Wet Coating Systems are available which are being adopted by various automotive
customers to improve productivity, reduction in costs and meeting the environmental norms. Various types of Metallic & Mica
finishes are available.
Clear coats
scratch resistance
acid & alkali resistance
UV resistance
mar resistance
Heat resistant paints
Heat resistant paints, both for interior & exterior surfaces of motorcycle mufflers. These are made to withstand high
temperature conditions up to 600 degree C.


CHAPTER 3
RESEARCH METHODOLOGY

Research Methodology and objectives
Objective of the Study
Scope of the Study
Methodology of the Study
Limitation of the Study
ABOUT RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be understood as science of
studying how research is done systematically. This section includes overall research design, the sampling procedure, the data
collection method, the field work and analysis and procedure.
AIM OF THE RESEARCH
The main aim of this project is an attempt that has been made to study the role of the dealers of Ranchi, Dhanbad,
Daltonganj and Deoghar, also the impact of loyalty program initiated by KNPL for influencers by the samples collection method.
OBJECTIVE OF THE RESEARCH
The main objective is to find out the dealers perception about Nerolac Paints and initiative taken by them in promoting
loyalty schemes for influencers in order to generate sales of KNPL in Ranchi. This survey is conducted to depict the market
potential of the dealer in making investment for KNPL products. As well their responsibility for towards controlling their
influencers for loyalty scheme named NEROLAC PREMIUM PAINTER SCHEME as much as possible.
The project title ROLE OF INFLUENCER & DEALERS IN PROMOTING LOYALTY PROGRAM IN PAINT INDUSTRY: A
STUDY ON NEROLAC PAINTS, RANCHI.is related with generating demand from the customer and also it is related with
consumer behavior, buying behavior ,pull and push strategy for various products consumer perception and last but not least
that is channel of distribution and various promotional activities.

(i) Primary Objective
To find out therole of influencers& dealers in promoting loyalty program in paint industry in Ranchi,
Dhanbad, Deoghar and Daltonganj.
To register painters in Nerolacs loyalty program i.e. Nerolac Premium Painters (NPP)in Ranchi,

(ii) Secondary Objective :-
To find out how effective is loyalty program scheme of paint industry in Ranchi.
To make the painters understand what are the benefits of registering in NPP program and how they can
be benefited by purchasing the products of Nerolac.
To register painters in Nerolacs loyalty program i.e. Nerolac Premium Painters (NPP)in Ranchi,
To make the dealers realize that why they should register their painters in this program and how they can
be get advantage of it.
Understanding how this loyalty program fits into the big picture of marketing and how these aspects can
be combined to achieve organizational goals.
To determine awareness of Kansai Nerolac Paints product among customers.
To know the competitive service provider by different paints companies.
To analyze decision alternatives and planning and implementation of NPP program.
To know the product range of Kansai Nerolac Paints Ltd.
To give some suggestions for improvement of the loyalty program of Kansai Nerolac Paints Limited.

Scope of the Study
The scope of the study for management student gets to apply all their theoretical knowledge in the companys summer
training. During training they solve the particular problem given by the company and come to know the various things
practically. They get to know the customers point of view towards the company.
The study gives the company a true and unbiased picture of its loyalty program and its response from the painters in the eastern
zone especially in Ranchi, Dhanbad, Deoghar and Daltonganj.

Research Design
It is a frame work for conducting the market research on given topic or project. It specifies the details of procedures
necessary for collecting the information needed to structure or solve the problems
In this project the model prepared for designing the research is the Descriptive Method.
This method describes market characteristics and functions; it is preplanned and structured design.
It mainly focuses on the data characteristics about the dealers perception.
Descriptive research answers the basic queries like who, what, where, when and whom.
Since in this case we have sufficient information available on what data need to be collected and the purpose of the study,
also we are clear about the source from where we need to collect the information, so it is appropriate to go for descriptive
study.
SAMPLING UNIT
A sampling unit is an element or an unit containing the element that is available for selection at some stage of the
sampling process.
Before selection for survey a sampling unit is taken. Here the sampling unit was the dealers dealing with different
paint brands directly associated in capturing the maximum market share for specified paint brand and the painters or
influencers who are ought to be involved in the loyalty program in Ranchi.
SAMPLE SIZE
It is total size of the units that are used for analysis of data. The sample size determined statistically represents the
final or net sample size that must be achieved in order to ensure that the parameters are estimated with the desired degree of
precision and given level of confidence.
In order to achieve the sample size, a much greater number of potential respondants have to be contacted.
I have covered 30 dealers and around 1700 painters in 35 days (5 weeks) and collected necessary data from them,
however due to time constrains we could cover maximum unit as possible in Ranchi, Dhanbad, Deoghar and Daltonganj.
So there are two sampling units which are 30 and 1700.
DATA COLLECTION METHOD
Data collection is the method of collecting required data in the form of survey via questionnaire, personal interviews,
and telephonic interventions for analysis of research work done of the specific project as given.
There are two ways of collecting data.
Primary Data
The primary data are those which are those which are collected a fresh and for the first time and thus happen to be original in
character, so my primary data collected for my project is via:
Questionnaire
Interview
Observation
Telephonic Interview
Primary interview method has been used. This survey was conducted on 57 dealers and around 1700 painters/influencers
across Ranchi area. I used a set of questionnaire containing few questions for dealers and painters. These data are expensive
and time consuming, but these data are most important and reliable.
Secondary Data
Secondary data means data that are already available i.e. they refer to the data which have already been collected and
analyzed by some on else.

This data was collected with the help of the following
Websites
Information brochures
Company shade cards
Several books
Articles
The collection of these data is easier and less time consuming.
FIELD WORK
Marketing research data are rarely collected by the persons who design the research.
Researcher has two major options for collecting their data. They can develop their own organization or they can contract with
a field work agency. In either case, data collection involves the use of some kind of field force. The field force operation in
Personal Interviews, observations, office telephones and internet surveys. The field workers who collect the data typically
have little research background or training.
The main work of the project was to analyze the role of dealers of paint industry and also analyses the effectiveness of loyalty
programs initiated by specific paint industry for acquiring maximum market share in particular city. It was an individual
application (survey) carried on in the market.
The dealers who run their business with specific paint brand or different paint brand were interviewed individually; also
telephonic interviews and personal interviews were done with painters or influencer to know the impact of loyalty programs
undertaken by paint industry particularly for their stakeholders.
Fieldwork is done in this project individually with no biasness. The field work comprises of filling of questionnaire by different
sector individuals.
The samples were taken from dealers dealing with different paints by running their business in Ranchi also from influencers
whose role is equally important.
The survey was done in the Ranchi region covering the shops or the counters where dealers are the one who played the vital
role.
RANCHI
DEOGHAR
DALTONGANJ
DHANBAD
Field work would take us around 5 week as sample population was located in distance area across Ranchi.
Data collection was done mainly through questionnaires and interview.
LIMITATION OF THE STUDY
As only Ranchi area is dealt in survey so it does not represent the view of the total Indian paint market.
Size of the research may not be substantial.
Lack of awareness of loyalty programs among influencers.
There was lack of time on the part of respondents.
The survey was carried through questionnaire and the questions were based on perception.
SUMMARY
Once the data is collected the next task is to analyze it. The raw data should be classified into some purposeful usable
categories.
To make this survey several paint shops were visited and necessary data were collected. Also the places where the dealers
shops were located many limitations has to be faced.

CHAPTER 4
DATA ANALYSIS AND FINDINGS

YES
70%
NO
30%

0%

0%
Exclusive Dealer
YES
NO
GRAPHICAL REPRESENTATION AND ANALYSIS OF WORK
The selection of the analysis of the data is based on the research objectives and perspectives. The data
are collected with the help of Personal Interviews and by filling the Questionnaire and also telephonic
interview. Data analysis is not an end in itself. Its purpose is to produce information that will help address
the problem in current situation.
1. ARE YOU AN EXCLUSIVE DEALER?
PARAMETERS EXCLUSIVE DEALER
YES 21
NO 9

INTERPRITATION: In the above pie chart graph we can see that out of 30 respondents i.e., dealers,
70%(21) of dealers said that they are exclusive dealer of specific paint brand and 30%(9) of them are non
exclusive dealer that means they keep different brands of paints(Multi Brand) for selling so as to meet
the customer demand of market. This shows how paint industry is creating tough competition for dealers
to survive in market place.

0
5
10
15
20
25
30
KNPL ASIAN BERGER ICI SHALIMAR
BRANDS DEALT WITH
KNPL
ASIAN
BERGER
ICI
SHALIMAR
2. NUMBER OF BRAND YOU DEAL WITH?
BRAND DEALING OF MAX.BRAND BY DEALERS
KNPL 30
ASIAN PAINTS 24
BERGER PAINTS 20
ICI DULUX 15
SHALIMAR 9

INTERPRETATION: In the above chart we edit see the different colored sections show the purchasing
behavior of paints from paint industry. Most of the dealer keep multi point brand in their shop. As
interpreted 31% of dealers sell NEROLAC PAINTS for their customers then is followed by ASIAN PAINTS
Which covers for annual 24% marketshare in RANCHI , then BERGER 20% stands the third in meeting the
customers demand so dealer prefer Berger paints in their shop consequently comes DULUX with 15% an
10% market share captured by other local paint brand .
So it is clearly visible that KNPL is market leader in terms leaders buying behavior.

3. WHAT CATEGORY OF PAINTS DO YOU PURCHASE MORE/ MOST?
EXTERIOR INTERIOR WOOD METAL ANCILLARY
30 30 7 8 25

INTERPRETATION: Both exterior emulsions and interior emulsions plays vital role when it comes to decorative
segment of paint industry. Ancillary which involves distemper are the next in this category.

30%
30%
7%
8%
25%
Sales
Exterior
Interior
Wood
Metal
Ancillary
COVERAGE, 26
WARRANTY, 18
COST, 20
DURABILITY, 19
SMOOTHNESS, 12
GLOSS, 17
FINNISH, 16
OTHER, 15
BUYING BEHAVIOUR
COVERAGE
WARRANTY
COST
DURABILITY
SMOOTHNESS
GLOSS
FINNISH
OTHER
4. ON WHAT PARAMETERS DO YOU SELECT AND PURCHASE PAINTS FOR YOUR CUSTOMER?
PARAMETERS SELECTION
COVERAGE 26
WARRANTY 18
COST 20
DURABILITY 19
SMOOTHNESS 12
GLOSS 17
FINNISH 16
OTHER 15

INTERPRETATION: From the above analysis is clearly seen that dealer prefer various parameters and choose to buy
paints; coverage is the most as demanded by customers before buying paint there i.e., 26 of 30 dealers said that
customers sees coverage parameter, then come the cost, warranty and so on. The values are out of 30 dealers
responses.


5.HOW DO YOU CHANNEL YOUR PRODUCTS TO THE END USERS(CUSTOMER)?VIA
PARAMETERS CHANNELING PRODUCT TO END USER
PAINTERS 50
CONTRACTING 20
DIRECT CUSTOMER 30

INTERPRETATION: It is clearly interpreted that dealer channel their paint products mostly through direct painters
and then through customer

0
5
10
15
20
25
30
35
40
45
50
Painter Contractor Customer
50
20
30
Channel
Painter
Contractor
Customer
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
KNPL ASIAN BERGER ICI OTHER
Series 1
Series 1

6.HOW DO YOU RATE THESE PAINTS(1-5)?
PAINT BRAND NAME AVERAGE
KNPL 4.08
ASIAN PAINTS 4.56
BERGER PAINTS 2.33
ICI DULUX 2.58
OTHER 0.87

INTERPRETATION: When it comes to rating a particular brand for its it performance and products it becomes very
tough job to analyze the actual findings because a mixture of performance is delivered by different dealer s specially
in Ranchi market .In order to look forward I took out average rating of every brand present in Ranchi city and found
that KNPL is being rated 4.08 out of 5.When it comes to dealer satisfaction and it goes with ASIAN PAINTS with
average rating 4.56 out of 5 and others are shown in above chart.


7. SATSIFACTION OF DEALERSWITH DIFFERENT PAINT BRANDS.
LEVEL OF SATISFACTION

HIGHLY SATISFIED MODERATLY SATIFIED SATISFIED
PAINT BRAND
KNPL 20 6 4
ASIAN PAINTS 20 7 3
BERGER PAINTS 12 13 5
DULUX 5 6 19
OTHER 12 15 3

INTERPRETATION: In this question it is interpreted that dealer are highly satisfied with KNPL and it leads products
even few dealers are moderately satisfied with KNPL over here also KNPL leads whereas satisfied section Dulux and
Berger leads together.

0
2
4
6
8
10
12
14
16
18
20
KNPL ASIAN PAINTS BERGER PAINTS DULUX OTHER
Series 1
Series 2
Series 3

8. WHICH PAINT SERVICE IS EASILY AVALABLE IN OUR CITY IN ACCORDANCE WITH:-
PAINT BRAND KNPL ASIAN BERGER ICI OTHERS
PARAMETER
TIME 8 8 4 6 4
DELIVERY 7 8 6 5 4
QUALITY OF
PRODUCT
8 8 7 3 4
OTHERS 6 7 6 5 6

INTERPRETAION: It is clearly seen that KNPL and Asian leads when it comes to easily availability of paint service in
terms time and delivery in Ranchi market, then comes Berger and Dulux in terms quality of good.

9.IF CONDITION PERSISTS DO YOU WANT TO SWITCH OVER TO OTHER BRANDS? IF YES, THEN ON WHAT BASIS?

INTERPRETATION: If given chance to switch over to other brand 5 said yes i.e., 16% they do want to change as per
customer requirement however 5 of 30 respondents and that they will remain loyal to the specific brand i.e., 84%
they are dealing with and continue with that.
0
1
2
3
4
5
6
7
8
KNPL ASIAN BERGER ICI OTHER
TIME
DELIVERY
QUALITY
OTHERS
Yes, 5
No, 25
Yes
No
0 5 10 15 20 25 30
yes
yes
10. HOW DOES YOU RATE PAINT I NDUSTRY ON THE BASIS OF LOYALTY PROGRAMS AND HOW DO YOU RATE THE AFETR SALES
SERVICE OF PAINT INDUSTRY?
For this particular questions sample size is taken as 30, i.e., dealer from all over Ranchi where ask to give their opinion for the
same for particular result and to conduct this survey question interview was done.
So when opinions are taken from customer we apply chi square test for such situation which is a non parametric test.
I have divided 30 dealers into 4 halves taking as from territory Ranchi on basis of above two question and then checked the level
of satisfaction and dissatisfaction between both the locations.
Therefore, my result is.

NULL HYPOTHESIS:
There is a neutral level of significance in the rating of the customer related to the impact of loyalty programs and after sales
service provided by paint industry.
Analysis:
(chi square) test is performed on sample size 30.

RANCHI DALTONGANG DHANBAD DEOGHAR Total
SATISFACTION 10 8 4 4 26
UNSATISFACTION 2 0 1 1 4
Total 12 8 5 5 30
SOLUTION
OF EF OF-EF (OF-EF)2 (OF-EF)2/EF
10 10.4 -0.4 0.16 0.015384615
8 6.933333333 1.066666667 1.137778 0.164102564
4 4.333333333 -0.333333333 0.111111 0.025641026
4 4.333333333 -0.333333333 0.111111 0.025641026
2 1.6 0.4 0.16 0.1
0 1.066666667 -1.066666667 1.137778 1.066666667
1 0.666666667 0.333333333 0.111111 0.166666667
1 0.666666667 0.333333333 0.111111 0.166666667

chi-Square=1.730769231

Null Hypothics: there is nosignificant association between teritory and level of
satisfaction

d.f (R-1)(C-1) 3
n 30
5% 7.815 chi-Square=1.73
Accept Null Hypothics
RECOMMENDATION
Proper level of communication should be maintained between dealers and companys representative, so
that every information is conveyed systematically.
Dealers are the builder of a brand and therefore even after sales dealers should be given an utmost priority
for maintaining brand equity.
Also influencer are equally important, their benefit against loyalty programs schemes should be fulfilled on
time.

CHAPTER 5
CONCLUSION AND
RECOMMENDATION

CONCLUSION
As it has already been mentioned, today paint industry has a very high growth potential in market. Post liberalization,
the industry has been growing at a rapid pace in terms of its assets under management. With the changing of rapid economy,
domestic house and construction work are consumer is the basic foundation of every business. What consumer sees, thinks,
prefers and buys is of great importance to marketers to fine tune their marketing offers and achieve high level of consumer
acceptance and satisfaction.
Customer satisfaction tracking will help in minimize the weakness and take corrective steps to achieve the desired
performance. It is the pillar of corporate success. It is the gospel of todays business going very fast.
As said, Marketing is the management process responsible for identifying, anticipating and satisfying consumer
requirements profitably. So to generate demand i.e. to make more and more no. people use the product introduced by paint
companies the first thing to do is to meet their expectation level. More awareness is to be created regarding the products and
benefits that comes from loyalty programs for influencers and dealers who builds companys image and also help to create
maximum market share.
The project analysis of the Ranchis paint dealers and also the effectives of loyalty programs showed a very clear picture
that today KANSAI NEROLAC PAINTS Ltd is the most competitive brand in paint sector in Ranchi area for better market
credibility in comparison to other paint company.
Therefore, in order to hold its position in market KNPL should strengthen the chain of management to give a tough
competition to other paint company. And also by fulfilling the commitment as provided by the loyalty schemes to the influencers
this in return will increase the repeat purchase behavior and brand loyalty, keeping in mind the consumer choice and preference
of Ranchi area.
To conclude, I must say that, I have learned a lot about the paint market and the market condition that exists in the
current scenario. Also I have learnt that how a dealer can change buying behavior of a consumer which in return creates a brand
loyalty also show a dealers importance in paint industry in todays era.
The loyalty scheme which is point based reward scheme should undergone through proper data keeping i.e. enrolment,
accrual, redemption, recognition, promotion can be excited with related ease as well as larger reach, so that a level of satisfaction
should be maintained with in the influencers of paint industry.
As loyalty programs today can bring around benefits such as low capital expenditure, with no set up cost as well as being
able to use a staggered payment for services used.
I have got a good experience visiting several paint dealers place and controlling influencers for loyalty schemes so that
they can get future benefits from purchase of Nerolac products speaking with the concerned representatives, present there.
It was a very bright and good learning process which would be helpful for me in my future.

RECOMMENDATION
On the basis of the data collected and problems identified in the process of doing survey throughout the Ranchi area,
few things can be recommended for the betterment of the paint industries as well as KNPL, so as to improve in various
sectors.
More dealers and influencers meets need to be organized where the company representatives could educate the dealers
and the influencers about new benefits and schemes on particular area and specific day targeting a specific location, this
could save more cost.
Payment credit should be given to customers.
There should be some pricing policies offered to the dealers and influencers so as make those loyalty schemes effective
and also to capture maximum market and customer satisfaction should be taken care of.
More training and business help should be given to dealers. Special marketing plans should be develop to target other
sectors dealers such as construction of goods.
Every dealer should have one Hindi guide (hand or soft copy) to target 100 million Hindi readers across the country as
compared to 30 millions of English readers.
There should be a better customer care center which could quickly respond to the dealers or influencers, so that dealers
wont have to worry about the point updating process of the loyalty program.


BOOKS
Marketing Management: 14
th
Edition, Philip Kotler, Kevin Lane Keller, Prentice Hall Publication
Managerial Statistics: Gerald Keller
Business Research Methodology: T.N. Srivastava, ShailajaRego
Marketing Strategy: 5
th
Edition by O. C. Ferrell, Michael Hartline.BD
WEBSITES
www.google.com
www.wikipedia.org
www.nerolac.com
www.moneycontrol.com
www.i-scholar.in
www.indiafoline.com
www.scribid.com
MAGAZINES
Business World
The TELEGRAPH

JOURNAL REFERENCE
Research et Application en Marketing (English Edition) (AFM c/; 2011, vol. 26 Issue 3, p23 Academic journal )
June 2003 Journal of the Academy of Marketing Science; summer 2003, vol. 31 issue 3, p229
Paintindia; Nov 2008, Vol. 58 issue 11, p154
August, 2008 Marketing Mastermind Industry Focus MMIF
Paintindia; Oct2012, Vol. 62 Issue 10, p44
An Insight into the Evolution of Loyalty Programs and further use in Todays Business World by SanjaiVelayudhan,
Senior Manager- Loyalty Program, Infotech Monday, November 14 2011


ANNEXURE
QUESTIONNAIRE AND DATA

QUESTIONNAIRE
1) Name of the dealer:

2) Address:

3) Phone no
4) Registration no:
5) Are you dealer or sub dealer of any paint company in Ranchi?
(YES) (NO)

6) If yes then which paint company you have dealership?
A) Asian paint C) Berger paint
B) Nerolac paint D) Dulux
E) Shalimar

7) Do you know about the KNPL?

(YES) (NO)

8) Which facility of this paint company attracts you for dealership?
A) Company brand name B) company market profitability
C) Sales team service D) better supply of goods
E) Customer satisfaction F) better financial transaction
G) Schemes and rewards

9) Do you know that today most of the .customer prefer Nerolac paints due to big brand name and big brand ambassadors?
(YES) (NO)

10) Which paint company has more market share in comparison to other paint company?
A) ASIAN PAINTS B) NEROLAC C) BERGER D) SHALIMAR

11) Is our company provides better scheme and rewards on achieving the target?
(YES) (NO)

12) Do you know that nerolac paint is the subsidiary company of kansainerolac Japan, which is one of the top 10 paint company
in the world?
(YES) (NO)

14) Does the company provide all type of categories of paint to the company?
(YES) (NO)
Then which category
A) Industrial paint B) Designer Finish
C) Interior Emulsions D) Exterior Emulsion
E) Distemper F) Enamel
G) Primer H) Wood finish
15) Is the company provides reasonable price and delivery the good in time and satisfies our customer?
(YES) (NO)

16) If you have to chance to change the dealership of this company then which company you prefer? And why?

17) Do you know that the nerolac paint is the third largest market share company in India?
(YES) (NO)
18) Do you know that Nerolac offer less price against the better quality of paint to the Customer?
(YES)
19) Do you agree that nerolac paint deal category of interior and exterior emulsion putty, distemper paint?
(YES) (NO)
20) Do you agree that nerolac paint has more good will and fame compared with other paint company?
(YES) (NO)

2 1 ) I f you are goi ng to start the deal ershi p wi th Nerol ac pai nt whi ch types of faci l i ty you want from the
Company?
A) Profit margin B) Supply of Goods in time
C) Better Creditability System D) Regular Scheme & Reward

22) Today which brand of the paint company most of the customer prefers?
A ) N e r o l a c p a i n t B ) A s i a n p a i n t
B ) B e r g e r p a i n t D ) I C I p a i n t

23) Is our company provides paint at a lesser price to customer in comparison to other paint companies?
(YES) (NO)
24) Are you satisfied with the dealership of this paint company?
(YES) (NO)

DEALER LIST
SGRP CUSTOMER
CODE
DEALER NAME CONTACT 2013-14
220 112830 BALAJI SUPPLY
CORPORATION
6, OLD COMMISSIONER`S
COMPOUND -834001
Tel: N/A
39.39
220 112839 HINDUSTAN HARDWARE
STORES
S.N.GANGULY ROAD -834001
Tel: 9431107834 /
9835371171
64.01
220 112855 SUBHASH INDUSTRIAL
CORPORATION
S.N.GANGULY
ROADS.N.GANGULI ROAD -
834001
Tel: 6512201192 /
9973448707
7.22
220 123750 M.B. HARDWARE STORES JAIN TEMPLE ROAD,UPPER
BAZAR -834001
Tel: 6512202329 / 2201704
15.38
220 124669 ORIENT PAINTS & H/W CO. MAHABIR CHOWKRANCHI -
834001
Tel: 6512204169 /
9334708099
56.68
220 131297 SHANTI ENTERPRISES NEAR NIFFT,MAIN
ROAD,HATIA -834003
Tel: 9308001352 /
9934164803
7.56
220 132742 ARIHANT TRADING
AGENCY
MACKY ROAD -834001
Tel: 9234207522 /
9431101690
44.77
220 135535 RAGHUVANSHI SECURITIES
PRIVATE
M-5, BARIATU ROAD, BARIATU
H.C -834009
Tel: 9234393244 / 0651-
2542259
55.03
220 136387 HI-LIFE DEENDAYAL UPADHYAY
CHOWKHARMU BYE-PASS
ROAD -834002
Tel: 9334294300 / 0651-
2550365
27.37
220 147408 RAJAN HARDWARE NORTH MARKET ROADUPPER
BAZAR,RANCHI -834001
Tel: 9835122851 /
9835122851
21.41
220 147553 MODI HARDWARE PURULIA
ROAD,NAMKUMPURULIA
ROAD,NAMKUM -834010
Tel: 9308729099 /
6512260296
12.30
220 153350 SANJAY KUMAR GUPTA KANTHI TAUR RATU -835222
Tel: 9431382249 /
9431382249
8.51
220 155621 SURAJ HARDWARE 6.06
220 156422 JAISWAL BEEJ BHANDAR MAIN ROADSISAI -835224
Tel: 9199505775 / 06524-
255458
1.21
221 151068 ADITYA RANG MAHAL COURT ROAD,V.I.P
CHOWKINFRONT OF S.P
OFFICE -814112
73.31
Tel: 9431132448 /
9431132448
221 112871 SANJAY AGENCY J.N.ROY ROAD -816109
Tel: 9546169960 / X
44.11
221 146634 HINDUSTAN HARDWARE MAIN ROAD,PAKKURINFORNT
OF BANK COLONY -816107
Tel: 9431549387 /
9431549387
32.71
221 140480 BHAWANI SHANKAR RAJ GANJ ROAD,KATRAS
BAZAAR.NEAR KATRAS
HATIA,DHANBAD -828114
Tel: 7677082544 /
7677082544
25.78
221 132035 JAI MATADI ENTERPRISES 24.23
221 130567 PRAKASH HARDWARE 12.37
221 151926 NEW TARZAN MARBLE
TRADERS
SHIVPURMANDIR ROAD -
817133
Tel: 9470309239 / 0
12.18
221 153408 AMIT KUMAR PANKAJ HATIYA CHOWKMAIN ROAD,
PATHARGAMA -814147
Tel: 9334093625 /
9334093625
7.04
221 116471 R.K. MODI & SONS STATION ROAD -814142
Tel: 9204019544 / 06432-
70514
4.39
221 145503 RANJIT KUMAR 0.84
221 145320 LUXMI HARDWARE 0.61
222 112876 CHANDRA PAINTS AND
HARDWARE
26.97
222 117527 MAA AMBEY PAINTS JORAHAPATHAK ROADNEAR
JAIN MILAN -826001
Tel: X / 306569
95.34
222 122821 BALAJI PAINTS SALES 68.15
222 131945 BAJRANG ENTERPRISES G.T. ROAD, GOVINDPURNEAR
BANK OF INDIA -828109
Tel: 9835192718 /
9304246534
9.31
222 131946 SRI BALAJI PAINTS &
HARDWARE
OPP.HOTEL BLACK ROCKBANK
MORE -826001
Tel: 9334272672 /
9835188447
104.33

Role of Influencer & Dealers in Promoting Loyalty Program in Paint Industry A Study On Nerolac Paints, Ranchi

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