Beruflich Dokumente
Kultur Dokumente
Supervisor:
Professor Dr. Md. Mizanur Rahman
Department of Marketing
Faculty of Business Studies
University of Dhaka
Prepared by:
Nazma Islam
MBA Program (16th Batch)
Roll No. 691
Department of Marketing
1
Letter of Transmittal
Dear Sir,
I consider myself very fortunate to have had the opportunity to prepare Internship report under
your valuable guidance. Working under your direct supervision has been both a pleasure and
challenge to me. I can never repay my indebtedness to you.
This study, under your constant guidance, enabled me to gain new insights about how to apply
my theoretical knowledge acquired in the classrooms to the practical field.
I would like to express my sincere appreciation and gratitude to you for your help in the
preparation of this report.
Sincerely yours,
Nazma Islam
2
Acknowledgement
An internship program is a very important and essential means for acquiring practical knowledge
because the knowledge of a student does not get fulfilled until he acquires knowledge
theoretically and practically. At the very beginning, I obviously express my deepest thanks and
appreciation to my honorable faculty Professor Dr. Md. Mizanur Rahman, Department of
Marketing, for giving his valuable time, guidelines and advice in preparation of my Internship
Report.
In this connection, I would like to thank Mr. Rahim Uddaulah Chowdhury (Area sales manager)
and Mr. Anik Aziz (Territory Officer) of Marketing & Sales Department of Berger Paints
Bangladesh Limited for their suggestions and comments which inspired me greatly to prepare the
report successfully and their heartiest co-operation which makes my destination easier.
Finally, I convey my sincere thanks to my friends and family who inspire in different ways to
complete the report and the course as well.
Nazma Islam
Roll no. 691/ Batch-16th
Department of Marketing
University of Dhaka
3
Letter of Authorization
This is to certify that the report on An Analysis of Marketing Strategies of Berger Paint
Bangladesh Ltd has been prepared by Nazma Islam as a partial fulfillment of Masters of
Business Administration degree.
I have observed closely and studied different practical aspect of the report .The report has been
prepared under my guidance and has been worked out successfully.
----------------------------------
4
Executive Summary
Now Berger Paints BD Ltd. (BPBL) is one of the major market share capturer. They have some
excellent strategies, which are discussed in this report. Their strength is more than their
weakness. For this reason Berger Paints Bangladesh Ltd. (BPBL) is one of the best companies in
Bangladesh. The paper is an attempt to observe how Berger Paints Bangladesh Limited is
influencing the urbanization pattern by their effective marketing strategy. The report is
categorized in five different chapters. In the first phase introduction, objectives, scope,
methodology, limitations and company profile are discussed. Second phase contains the findings
& Analysis. Third phase concentrates on the Conclusion and Recommendations. Rest of the
report includes of appendix and references. They make strategies depending on STP
(Segmentation, Target market selection & positioning). So first it segments its market on the
product basis. Then they select their target market. After selecting market they position its
product by product differentiation, service differentiation and image differentiation. They price
their product as they could capture most of the market share and better quality product at
reasonable price. Finally conclusion & recommendations are given. The main objective of the
report is to identify the marketing strategy of Berger Paints Bangladesh Limited
5
Contents
1 PART-1.................................................................................................................. 8
Introduction............................................................................................................. 9
1.1 Objectives of the Study:............................................................................... 12
Board Objectives................................................................................................ 12
1.1.1 Specific Objectives:...............................................................................12
1.2 Scope of the Study:...................................................................................... 13
1.3 Methodology:............................................................................................... 13
Research Design................................................................................................. 13
Source of Data................................................................................................... 13
Secondary data.................................................................................................. 13
Data analysis...................................................................................................... 14
1.3.1 Limitation of the report:.........................................................................14
2 Part-2................................................................................................................. 15
Marketing Strategies of BPBL................................................................................ 16
Segmentation strategies of Berger....................................................................16
2.1.2 Industrial Paints:.................................................................................... 19
2.1.3 Berger Marine........................................................................................ 21
2.1.4 Targeting strategies............................................................................... 22
2.1.5 Positioning strategies............................................................................ 22
2.2 Marketing Mix................................................................................................. 26
2.2.1 Product strategy.................................................................................... 27
Brand Name....................................................................................................... 27
Packaging........................................................................................................... 28
2.2.2 Price Strategy........................................................................................ 28
Place/ Distribution strategy................................................................................29
2.2.3 Promotional strategy............................................................................. 29
2.3 Assess the Marketing Strategies of BPBL.....................................................31
2.3.1 Market-leader strategies........................................................................31
Problems............................................................................................................ 32
2.3.2 COMPETITOR ANALYSIS OF COLOR BANK...............................................33
3 PART-3................................................................................................................ 36
3.1 Recommendation......................................................................................... 37
6
3.2 Conclusion:.................................................................................................. 39
3.3 References................................................................................................... 40
3.4 APPENDIX:.................................................................................................... 42
7
1 PART-1
(Introduction, Objectives & Methodology)
8
Introduction: 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.
With an ever-evolving profile and rich history, Berger Paints started its business in Bangladesh
since independence. Berger is one of the oldest names in the paint industry. Berger Paints turns
ones dreams into colorful reality. It is a leader in paints, offering its customers a variety of
innovative painting solutions, weather it is decorative or industrial. Whether it is ones home or
office, shop or factory, interiors or exteriors, metal, wood, plastic or any other surface - it has a
paint solution for it.
Berger, the market leader in the Bangladesh paint market, is one of the oldest names in the global
paint industry. The company is operating in the paint industry for almost two centuries. Today
the names "Berger" and "Lewis Berger" are synonymous with color. Berger Paints continues to
be inspired by the creation and innovation of Mr. Lewis Berger, who through his marvelous
shades, had offered people a chance to transform their homes through the power of imagination.
At Berger it believes in taking paints to the level of fine art enriched by the imagination of Lewis
Berger since 1760. In 1760, a young color chemist "Lewis Berger" developed a method for
manufacturing Prussian blue using a secret process that every designer and householder coveted.
His business was nurtured by his descendants and others till it merged with Jenson and
Nicholson Ltd. to form Berger, Jenson & Nicholson Limited.
Berger paints Bangladesh Limited is not only a company with reputation but is a name to the
dynamic industry which has history and the pride to be the best at what it does. Berger has been
involved in paint business since 1950 in Bangladesh when paints were first imported from
Berger UK and then from Berger Pakistan. In 1970, Berger Paints Bangladesh Limited (BPBL)
erstwhile Jenson & Nicholson had set up its paint factory in Chittagong at an estimated
investment of TK.4 million. The shareholders were Jenson & Nicholson (J& N), Duncan
Macneil& Co Ltd and Dada Group. The name of the company was changed from J&N
(Bangladesh) Limited to Berger Paints Bangladesh Limited on 1st January 1980. In August2000,
9
J& N investment (Asia) Ltd purchased Government shareholding. Now, Berger Paints
Bangladesh Limited is 100% owned by J& N Investment (Asia) Limited, UK.
Berger Paints Bangladesh Limited often referred to as BPBL is considered to be the market
leader in Bangladesh. BPBL gives a comprehensive and sustainable painting solution and
providing the best customer support. It connects consumers to technology through specialized
services. It has a strong distribution Networking, Berger has reached almost every corner of
Bangladesh. Whether it is world-class range or durability, BERGER is always ready to answer to
all weather conditions. It strives for the improvement of Quality of Work Life a (QWL) with
competitive advantage. Berger Paints Bangladesh Limited is basically managed by its Finance,
Supply Chain, IT, Budget, Marketing & Sales departments. The manufacturing units at Dhaka
and Chittagong are also the strategic advantages that it has because of their location. Bergers
corporate strategy is to build larger market share through providing quality and speedy service.
Its primary focus is to strengthen its current position by provided value added customer service.
BPBL is committed to get highest consumer satisfaction. BPBL is committed to express itself as
an ethical and socially responsible company by producing environment friendly paints, in an
environment friendly production plants. BPBL is made up of well experienced, well trained,
highly educated officials and very dedicated and experienced employees along with the
stakeholders. BPBL is nothing without its valued customers. So, to serve the best to the
customers has been on top of all priorities.
Berger commenced the paint business in the Indian sub-continent from 1950. Initially the paints
were first imported from Berger UK and later from Berger Pakistan. In 1970, Berger Paints
Bangladesh Limited (BPBL), formerly known as Jenson & Nicholson, had set up its 1st paint
factory at Kalurghat, Chittagong. The shareholders were Jenson & Nicholson (J&N), Duncan
Macneil& Co. Limited and Dada Group. Duncan Macneil subsequently sold their shares to the
majority shareholder J&N Group. The Dada Group's share was ultimately vested with the
Government of the Peoples Republic of Bangladesh after the independence of the country in
1971. Berger incorporated on 6th July, 1973. They started to produce commercially from that
inception. The name of the company was changed from J&N (Bangladesh) Limited to Berger
Paints Bangladesh Limited. The company has established a subsidiary company named Jenson &
10
Nicholson (Bangladesh) Limited. The core business of the subsidiary was trading and indenting
and its 100% share is owned by Berger. Double Tight Can Manufacturing Plant at Nasirabad,
Chittagong under the umbrella of subsidiary company Jenson & Nicholson (Bangladesh) Limited
in 1997 was established. Establishment of Most Modern State-of-the-Art Paint Production Plant
at Savar, Dhaka was happened. In August 2000, J&N Investment (Asia) Limited UK, the
majority shareholder of the company purchased the government shareholdings. In 2002,
construction work of Corporate Office building on own land at Dhaka was completed. in 2003
corporate office shifted from Chittagong to Dhaka. Powder Coating Plant at Savar, Dhaka was
established in 2004. In December 2005, the company got listed with Dhaka Stock Exchange
(DSE) and Chittagong Stock Exchange (CSE). Emulsion Plant at Savar, Dhaka was established
in 2006 and in 2009 SAP was established across the company.
Berger has heavily invested in technology and Research & Development (R&D) compared to
any other manufacturer in this market. Investment in technology and plant capacity is even more
evident from the establishment of Powder Coating and Emulsion plants at the Dhaka factory. The
state-of-the-art Dhaka factory is an addition to Berger's capacity, making it the paint giant in
Bangladesh. It sources raw materials from some of the best known names in the world. The
superior quality of Berger's products has been possible because of its advanced plants and strict
quality controls that match international standards. With its strong distribution network, Berger
has reached almost every corner of Bangladesh. Nationwide Dealer Network, supported by 8
Sales Depots strategically located at Dhaka, Chittagong, Rajshahi, Khulna, Bogra, Sylhet
,Comilla and Mymensingh has an unmatched capability to answer to paint needs at almost
anywhere in Bangladesh.
Berger's 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 offers Home
Decor Service from where one can get an array of services pertaining to painting. Apart from
business, Berger Paints has added another dimension to its social responsibilities by contributing
to the well being of the autistic children in Bangladesh from 2009. Berger Paints Bangladesh
Limited has been promoting the young and creative talents of the country through Berger Young
Painters Art Competition (BYPAC), Berger Award for Excellence in Architecture (BAEA),
11
Berger Award Program for the Students of Architecture of BUET (BASAB), Scholarship
Program for the students of Architecture Discipline, Khulna University.
Promotion is one of the most important marketing mixes of Berger. Different researches show
that customer demand is the most important asset of Berger for being the market leader of
Bangladesh. Making this customer demand is possible not only by the quality products but also
proper promotional activities. Now most of the Brand loyal customers make Berger ahead from
other competitors. But paint companies are going through a difficult phase due to 15 percent duty
hike on titanium and dioxide, main raw materials, and a price war among companies. These two
ways pressures make a major change of promotional activities of the company. Company like
Berger is now adapting push strategy instead of pull strategy. This major change may create
some problem because customers have seen Bergers advertisement and other activities less
frequently and these may affect the brand image and the customer demand of Berger. This report
will try to find out the customers view and the current marketing practices of Berger. This will
help to identify and select the proper marketing strategy.
Board Objectives:
Board objective of this report is to identify and analyze the marketing strategies of Berger Paint
Bangladesh LTD.
12
This report has covered almost all the strategy of Berger Paints Bangladesh ltd for marketing its
product. It also includes a brief profile of the company. To know the strategy of the company it
also includes the product categories and the distribution channel of the company.
1.3Methodology:
Research Design: The research is exploratory in nature. The author does not know the
marketing strategies of Berger paint Bangladesh Ltd. This research is undertaken to gain an
insight about the marketing strategies of BPBL. Thats why exploratory method is undertaken.
Source of Data: Two types of data have been used in order to prepare this paper. These
are primary data and the secondary data.
Collection of Primary Data: In this report, primary data has been used in a very limited
manner. Target population of the study is the employees of the marketing department of the
Berger Paint Bangladesh Ltd. Researcher talked with the two executives to collect primary data.
So in this context, sample size is two. Judgmental sampling technique has been used as the
sample elements are selected based on the judgment of the researcher. It was more convenient for
the researcher to communicate with two specific executives to collect necessary information. For
this reason judgmental sampling technique has been taken by the researcher. As the analyst has
selected the sample on the base of her judgment, there is no chance of sampling error. Researcher
has made some judgment before selecting the sample, from where the accurate information can
be gathered and the analyst has also closely observed the situation at the time of collecting
information from them. So there is almost zero probability of biasness. Informal discussion and
direct interview method has been used to collect the data.
Secondary data: Secondary data are collected from the following sources:
Annual Report;
Official website;
Various documentary files;
Information from Internet;
Newsletters;
Various brochures on the product and service and
Information from the sales Office.
13
Data analysis: For data analysis MS word and MS excel, table, graphs, charts etc have
been used.
As the report is based totally on personal observation, personal bias might have hampered
the findings.
Lack of experience: As this was my first experience in regard to do this type of report,
experience was a fact. Good communicational skill helps me a lot in spite of having no
experience. I tried my best to find out the hidden issues of paint industries.
Time limitation: Time is one of the major limitations. It is very difficult to find out the
marketing strategies of a giant company like Berger within this short period of time. So
the authenticity of the collected information could not be verified.
Lack of knowledge: The Recommendations are based on own perceptions which may not
be applicable by the organization.
14
2 Part-2
(Discussion, Analysis & Findings)
15
recognize the companies distinctive offerings and image. Marketing strategies of Berger depends
on:
1) Segmentation of products.
2) Target market selection.
3) Positioning their product.
Berger paint Bangladesh limited mainly segments their product into three categories. These are
Decorative
Industrial.
Marine.
2.1.1.1 Decorative
Berger paints Bangladesh Ltd offers both interior and exterior paints. It leads the way for
introducing high quality color bank products and top coat finishes Decorative paints in
Bangladesh. Interior paints like plastic and distemper are used in wall, cement plaster etc. and
enamel is used for metal, wood, bamboo, hardboard etc. Those products ensure long life of
metal, wood, bamboo, hardboard, cement plaster etc. as well as its beauty. Very recent Berger
offers Robbialac easy clean which is high quality interior wall finishes, highly applicable for
concrete wall and cleanable. It offers exterior paints like weather coat which is high quality
exterior liquid and durocem is power based. Both are water, weather and fungus resistant. It also
provides primers, undercoats, thinners and other decorative products. Premium emulsions,
regular acrylic emulsions, distempers, first quality enamels, exterior finishes, textured finishes,
16
automotive refinishes- you would expect a company like BERGER, the premier paint company
in Bangladesh, to have leading brands in all these categories.
Premium emulsions, regular acrylic emulsions, distempers, first quality enamels, exterior
finishes, textured finishes, automotive refinishes- BERGER, the premier paint company in
Bangladesh, to have leading brands in all these categories.
Luxury Silk: A marvel of international emulsion technology, Luxury Silk combines the best of
aesthetic appeal with the best of functional properties like durability and ease of maintained.
Robbialac Acrylic Plastic Emulsion (APE): A standard emulsion paint formulated with acrylic,
copolymer emulsion, quality pigments and other raw, materials. Robbialac Acrylic Plastic
Emulsion has a smooth, rich, matt finish and is available in a very wide range of pleasing shades.
Painted surfaces, which have matured for at least two months, are easy to clean with a solution of
water and mild soap
Robbialac Super Gloss Synthetic Enamel (RSE): Robbialac Super Gloss Synthetic Enamel is
hardworking, premium quality synthetic enamel formulated to retain its gloss and film integrity
in the face of extreme climatic variations. Its excellent weather ability makes it ideal for rolling
stock like railway coaches, buses, lories, oil tankers, as well as for doors, windows, signboards
and hoardings. It is equally versatile for interior application like furniture, fixtures and various
other domestic articles.
Robbialac Acrylic Distemper (SPD): A specially formulated acrylic co-polymer emulsion based
washable distemper for elegant, smooth, durable, matt finish for interiors. Compared to other
conventional distempers, Robbialac Acrylic Distemper can cover 30% more area because of its
special formulation.
Weather Coat Smooth: Weather coat is smooth water based super exterior wall finish formulated
to give exceptional durability in adverse climatic conditions. It provides the buildings with a long
lasting and fresh appearance. It based on tough, flexible and high quality resin emulsion, which
provides excellent flexibility and adhesion.
17
Jhilik Synthetic Enamel: Jhilik Synthetic Enamel is economy synthetic enamel formulated for
interior and exterior application to give a glossy durable surface. It is ideally suitable for wood
and steel furniture, toys and various household items.
Wood Keeper: It provides brightness to polished or polish less or uneven surface of wood and
spot resistance.
Robbialac Aluminium Paint: Robbialac Aluminium Paint is a superior 2- pack aluminum paint
with a brilliant silver-like luster. It is ideal for application on the exteriors of storage tanks for
water, petrol, oil
Tartaruga Textured Coating: This is one of the most famous BERGER formulations in the world.
The product is paste like having special aggregate to facilitate drawing desired textured patterns
on the surface.
18
installation of numbers of tinting machines in Berger Color Bank stores across the country. To
access into the world Class Quality Berger Color Bank uses superior imported colorants and the
world renowned tinting technology of Italianate, Italy. All these assure a paint quality which is
world class. Match and Compare Endless Color Combinations Berger Color Bank has an
unique Tint vision software which allows to see infinite color combinations on the screen of the
computer.ot given an opportunity to mix and match to create own shades as well.
Color Bank Products: Color bank products are: Robbialac Plastic Emulsion Classic, Robbialac
Synthetic Enamel Gold, Luxury Silk Splendour Luxury Silk Splendour, Robbialac Pearl Lustre
Finish, Weather coat Smooth Classic, Robbialac SPD Super and Wood Keeper Finesse.
19
Jensolin Road/Runway Marking Paint: This is a quick drying, high opacity, heavy-duty paint
prepared from a chlorinated rubber system
Jensolin Chlororubber Lacquers: A chlorinated rubber based finish with exceptional properties
like water impermeability, resistance to salt spray, spillage and fumes of most acids
Jensolin Stoving Enamel: This is high performance enamel based on a blend of high grade
thermosetting Alkyd-Amino resin together with high quality pigments
Jensolin Road/Runway Marking Paint: This is a quick drying, high opacity, heavy-duty paint
prepared from a chlorinated rubber system
Jensolin Swimming Pool Paint: This special paint is based on special grade of Chlorinated
Rubber together with a suitable plasticizer
Jensolin Tennis Court Paint: This non-slip primer is based on chlorinated Rubber resin and inert
pigments.
Jensolin Bituminus Aluminum Paint: This is a quick drying anticorrosive, flexible, bituminous
paint formulated to withstand exposure to the elements, acid fumes and occasional contact with
dilute solutions of chemicals.
Jensolin Apexior Boiler Compositions: A specially formulated anticorrosive composition for
hot-wet metal surfaces.
Jensolin Epoxies: A two pack anticorrosive epoxy primer for use on steel surfaces. This primer
is ideally designed for offering superior performance in highly corrosive chemical and coastal
environments.
Jensolin Red Lead Primer: This is a quick drying Red Lead Primer to use on structural steel.
Provides a hard drying, anticorrosive coating, suitable for over coating with conventional
finishes and chlorinated rubber coatings.
Jensolin Zinc Phosphate Primer: Jensolin Zinc Phosphate Primer is based on a special synthetic
resin in which zinc phosphate is used as a rust-inhibiting pigment.
Jensolin Zinc Chromate Primer: Jensolin Zinc Chromate Primer is based on a special synthetic
resin in which zinc chromate is used as a rust-inhibiting pigment.
JensolinWash Primer: A two pack etch primer for use on C.I. sheets, G. I. Sheets or pipe
20
2.1.3 Berger Marine
Bangladesh is a riverside country with a large number of big & small rivers and their tributaries.
Moreover, it has a large sea coastal area with Bay of Bengal. Because of this facility a good
proportion of transportation is being done by sea & river. Bay of Bengal is well known for its
fish reserves. Fishing trawlers & boats are engaged in fishing in Bay of Bengal. They have two
sea-ports and a good no. of river ports. A good no. of ships are coming to and going out from
these seaports. Large no. of sea-coasters, launches, trawlers, barges, and country - boats
(powered and Unpowered) are plying everyday through sea-coasts and rivers.
So huge activity could be seen in sea-ports, river- ports, dockyards & dry-docks. Besides there
are shore and off-shore constructions, Pontoons, Buoys, oil/gas rigs, underground or underwater
pipelines. To cater to the need of maintaining these vessels & other constructions Berger has
introduced a wide range of Marine paints suitable to withstand rigorous marine weather both at
sea & sea-coasts and also at river & river-ports. Berger is here to help to choose the kind of
needed protection. Marine products include: Seaborne High Gloss Enamel, Seaborne Aluminium
Paint, Seaborne Aluminium Hold Paint, Seaborne Boot Topping, Seaborne Topside, Seaborne
Deck Paint, Seaborne Funnel Heat Resisting Chimney Black, Seaborne Bituminus Black, Berger
Marine Enamel, Seaborne Red Lead Primer, Seaborne Zinc Chromate Primer, Seaborne Zinc
Phosphate Primer, Seaborne Metallic Protective Coatings, Berger Marine Red Lead Primer,
Berger Marine Anticorrosive Primer, and Seaborne Thinner T-1 to T-8.
B. Industrial.
21
C. Marine.
The decorative segments of the market accounts for a whopping 83.42% of the total industry,
whereas industrial, marine segments contribute 12.17%, and 4.41%, respectively. The major
focus of the companies, operating in the industry, is towards decorative segment. Only a few of
the companies have their product offerings in industrial and marine segment. All the competitors
are concentrating their best efforts for carving out their share of the pie in the decorative segment
of the industry. The enamel segment accounts for around 50% of the decorative paint market, by
value, and approximately 40% by volume. Berger market share in the synthetic enamel category
increasing gradually. As this product is accountable for the major share of the paint market, its
continued success will result in significant growth of the overall market share of the company.
This will also enable Berger to battle its competitors by weakening then in such a strategically
important segment.
22
Provide Home Delivery with Skill painters
Free Service
Paid Service
Berger Home Dcor is currently offering wide range of services to its prospects and existing
consumers embracing.
Paint selection.
Dealer selection.
Painter/ Contractor selection and
Color scheme.
There is defined Telephone number, 02-9354067 for queries. By ringing simply in the number
one can make query or seek available services from the company. According to the nature of
query, the company provides solutions.
23
Communicating ability
24
2.1.5.9 ISO Quality Policy
Berger Paints Bangladesh Limited is committed to achieving total consumer satisfaction. They
commit to project themselves as an ethical and socially responsible company. Berger commits to
continue as the market leader through consistent sales growth, increasing productivity and
developing new products befitting consumer needs. It shall ensure continual improvement in
their operations through utilization of highly professional and dedicated team, proper process
management and participation of stakeholders. Berger will set measurable targets at appropriate
stages and shall continuously monitor them.
25
2.1.5.12 Social Commitment
The 9th term of Berger Young Painters Art Competition has been completed successfully in
2004 .We are encouraged to see the increasing level of enthusiasm among the young painters.
This year also, a large number of participants took part in this nationwide Art Competition.
Berger has always been a responsible corporate citizen. This unique Art Competition is one of
the examples of Bergers social commitment as a responsible corporate citizen.
Like previous year, in line with our convention of showcasing the best six paintings, we present
before you the paintings of the award winners of 2004 competition. The top six winners of this
year are Selina Haque Lina, Mohammad Imran Ali, Pintu Chandra Deb, Dip Narayan Biswas,
TouhinHasan and Shahida Begum.
The Jury Committee for the competition comprised of Prof. Qayum Chowdhury, Prof. Hashem
Khan, Prof. Rafiqun Nabi, Prof. Abdus Sattar, Prof. Abdus Shakoor Shah, Associate Prof. Jamal
Ahmed and Asst. Prof. Shishir Bhattacharjee.
Berger Paints Bangladesh Limited had also organized an exhibition with the top 40 paintings, at
the Zainul Art Gallery of Institute of Fine Arts University of Dhaka.
26
2.2.1 Product strategy
The principal activities of the company throughout the year continued to be manufacturing and
marketing of liquid and non-liquid paints and varnishes and coating paint and rest all are
produced in their factory located in Chittagong a Dhaka. In the lower end of the segmented
market, so far they did not try to bring variety. But in the upper end they introduced some
specialized brand with added attributes. Satisfy the different customers they divided their market
into three segments. They are:
Berger decorative
Berger industrial
Berger marine
Again based on formulation products can be categorized into two different forms. They are:
Water based
Solvent based
Beside this Berger Color Bank introduces to the global way to paint with an unlimited choice of
shades to match different customers endless taste-instantly. The shade cards in Berger Color
Bank stores are merely indicative of the amazing choice Berger Color Bank can give to its
customer. The rest is up to customers imagination and fingertips. Every Berger Color Bank store
has a computerized color tinting machine to help choose and take home of their own shades from
their world class range of paints. Availability of customers chosen shades is always ensured as
the paint is created and dispensed by the machine before their very own eyes
Brand Name: To create brand familiarity and loyalty, from the very beginning Berger
had been trying to promote its company name. And for that, beside their promotional activities
they also highlight their company name in the packing material instead of highlighting the brand
name. But with the passage of time now a days marketing department shifted their focus from
company name to their brand name and trying to promote those in all their promotional activities
including packing material. As a result, today both the products and company brand are equally
familiar to us. Again Berger pays careful consideration and tries to read human psychology while
choosing the brand name of their paints. Parrot- gives a cheap but easy spelled name, targeted
27
towards the lower end of the society. On the other hand Robbialuc, Luxury Silk - towards the
upper class people, carry a smell of status. Again Jhilik- gives the local tests and preference.
Packaging: Paint being sensitive item requires careful consideration while packing and for
that Berger pays sufficient attention on their packing material. Berger Paints Bangladesh Ltd.
Bergers drive for quality has led it to set up the first Double Tight can manufacture unit in the
country
Berger had different sales strategy for its three different product lines and every after certain
period they make some adjustment to keep it time worthy. Present sales strategies for all these
different lines are:
Place/ Distribution strategy: With its strong distribution network, Berger has
reached almost every corner of Bangladesh. Their nationwide dealer network, supported by
28
seven sales depots strategically located in Dhaka, Chittagong, Rajshahi, khulna, Bogra, Sylhet
and Comilla has an unmatched capability of cater to the needs of the consumers of paints
products, almost everywhere in Bangladesh.
29
scratch card and gift items.that standard to procedure dealers satisfied paints.
Dealers test the sample and the marketing department
2.2.3.1.4 ADVERTISING
The Sales achieved during the financial year ended 31st December 2008 was 3480.20 million
as against Tk 3065.50 million in the previous year showing a growth of 23.05%. The profit
after tax at Tk 227.12 million marked a growth of 4.93%. However, due to abnormal inflation
of raw materials prices, progressive devaluation of the taka and intensive competition in the
market, desired profit could not be achieved. The company improved its overall market share
30
due to strong brand pull form consumers, continued support from the distribution network as
well as projects. The growth in the building construction resulting in a growth in the use of
Exterior Emulsion paint, as opposed to the conventional cement paint. Moreover the innovative
marketing strategies during 2008 i.e., Berger Home Dcor the one stop paint solution together
with color consultancy, the launch of Berger Illusions range of design coatings, as well as
Robbialac Easy Clean. Emulsion paint has provided the consumers with unique coatings
resulting in improvement in life style.
New users- Every product has the potential to attract buyers who are unaware of the product or
who are resisting it because of price. Berger can search for new user among three groups: those
who might use it but do not (market-penetration), those who have never used it (new-market
segment strategy), or those who live elsewhere (geographical-expansion strategy)
More usage- A third marketing strategy is to convince people to use more product per use
occasion.
At the moment, Berger Color Bank is not facing as much competition from Asian Color World.
But in the near future, if it does so, Berger can adopt the position defense and flank defense
31
strategies. Position defense strategy would mean that Berger build a superior brand power and
make the brand almost impregnable.
Berger Color Bank already has an advantage of Color World with the availability of shades.
Color Bank is providing almost 3000 shades more than Color World. Introducing color
recognition software would increase the availability to much more.
In a flank defense strategy, Berger should erect outpost to protect a weak front or possibly serve
as an invasion base for counterattack. Berger can increase price by Tk. 1 on one of its most
purchased brand, like Weather coat exterior. They could then use the increased revenue from the
regular product and use it for advertising.
The actual market share of Color Bank product is yet to be estimated. The percentage of market
share by Asian Color World is unknown to the researcher. A study by the Strategic planning
institute (called Profit Impact of Market Strategy, or PIMS) found that a companys profitability,
measured by pretax return on investment (ROI), rises with its relative market share of its served
market.
32
2.3.1.2 Unavailable colors
Berger paints offers various colors and shades to its customers. According to most of the
dealers Berger producers white and off-white more whereas other common colors less. As a
result they cannot face customers choices. Most of the customers are flexible in brand but rigid
in color. Though Berger has greater chance to optimize its sales, but it cannot do it because of
unavailability of color.
33
Their objectives and reaction patterns
The market leader strategies to be followed.
Competitor analysis:
Threat of new entrants The threat of new entrants is relatively low, as Asian Color
World is the only competitor for Berger Color Bank.
Threat of rivalry Asian Color World is an aggressive competitor. It already has six
outlets all over the city, and has already captured the Uttara market with 2 outlets,
whereas Berger Color Bank has only one outlet in Uttara. However, they do not have as
many outlets as Berger Color Bank. Berger Color Bank has 17 outlets in Dhaka, and
numerous outlets outside the city. Thus the threat of rivalry is low.
Threat of substitutes- It is low as Asian Color World is the only substitute and they are
new in the market. However, during surveying the architects, there has been word in the
market that Elite Paints have similar color variety, and is providing numerous shades.
They have not started dealing in retails outlets yet.
Threat of supplier power- It is low as Berger Color Bank has their own Research and
Development unit, and raw materials are flown in from abroad.
Threat of buyer power- It is low as switching cost is moderate in terms of company
reputation, quality, and 3000 more shade availability.
With nearly half of the market share Berger is ranked on the top of Bangladesh.
Manufactures and markets wide range of decorative and industrial paint products under various
product brands and has a substantial market share.
It has well established operations & supply chain network spanning throughout the country with
7 manufacturing facilities, 85 depots, several regional & area offices with 2500 employees and
over 15000 dealers. Berger takes Green Horizon initiative towards reducing waste and
conserving natural resources; launching eco-friendly and energy efficient products. Berger Paints
has excellent brand perception and brand awareness amongst its potential customers. It provides
with high quality products and has very high market space both in terms of visibility and sales.
The Company has international presence: it has 4 manufacturing facilities abroad; operations in
Russia, Nepal, Europe and India. Its industrial and automotive coating is used by the best
automobile companies like Mercedes. In segmenting the market, it has dependence on decorative
segment where competition is intense. Berger continuously diversifies its product to match with
the customer demand.
35
3 PART-3
(Recommendation, Conclusion, Appendix)
3.1Recommendation
Following recommendation can be drawn to make some improvement of the marketing strategies
of Berger paint Bangladesh Ltd:
The areas where Berger can focus are on its promotional campaigns, such as advertising
and public relations. Berger could launch infomercials where such it is needed. The
infomercials could be like TeleBrand infomercials.
36
Niche marketing is used when target customer segment is highlighted for promotional
offers. Berger could adopt this similar approach to target the upper-class segment. This
would make customers feel special and the positive word of mouth. By this customer
loyalty, can be achieved in the upper-class segment.
Berger Paints should provide emphasis on customer demand. It should satisfy the dealers
demand and arrange product availability.
It should pay heed to the dealers growth rate, take initiatives to recover gap and always
monitor their activities.
Berger Paints should restructure its sales system. It can restructure through employing
more SOs, day to day sales and delivery system, enrich end-user activists activities,
frequent market visit, better communication with distribution.
Its general sales procedures like taking order, preparing invoice, categorization of
invoice, preparing rout plan, lining products for loading, final check and loading of
vehicles should be automated.
It should also organize distribution system through increase space for store systematic
way, frequently update its database systems which shows products, pack size and color
availabilities and increase the number of delivery van.
The advertisements should be more informative. Ads should provide information
regarding the functionality of the product (bases structure, feature, manufacturing
process)
Berger should have hotline customer care service. Where any sort of information could
be get like about the mixing of color, price of each color according to the square feet the
client want etc and the process should be easy. And the number that is given in the ad
should be active every time.
Dealers outlet should be more presentable and there should be enough places from where
customer can easily choose color.
Berger should provide weekend leaflets in more magazines and in the newspaper in every
2 weeks
37
3.2Conclusion:
Currently like other paint industry Bergers strategy is also directed towards only the dealers,
painters & corporate buyers. But they need to concentrate on the end-users, because end-users
are the ultimate consumer of paint. If they are not going to buy the product then painter &
dealers recommendation will not be fulfill anymore. Just look at the rod industry, it is all same
with the paint industry. Once they also focus on only contractors and dealers but now-a-days they
are focusing on the end-user also. Thats why some brands like AKS TMT Bar, BSRM, and
KSRM have gained significant share of their market. Some companies like Duluxe Bangladesh
38
have already started to focus on the end-user. If Berger doesnt focus on the end-user, then after a
few years when the customer will be informed and smart enough about paint, then they alone
decide which brand they need to buy.
3.3References
Assael, H. (1992) Consumer Behavior and Marketing Action, 4th Edition,USA: PWS-Kent
Brassington,F and Pettit,S (2000), Principle of Marketing ,Second Edition, prentice Hall, Harlow
39
Chisnall, P.M. (1997) Marketing Research, Fifth Edition, London: McGraw-Hill
George Belch, Michael Belch, 2014, Advertising and Promotion: An Integrated Marketing
Communications Perspective, McGraw-Hill Education, New Delhi, India
Loudon, D.L. and Della Bitta, A.J. (1993) Consumer Behavior,4th Edition, USA: McGraw Hill
Kapferer ,J.(1997) Strategic Brand Management, Kogan Page
Kotler, P. and Armstrong, G. (1997) Marketing An Introduction. Fourth Edition. New Jersey.
Prentice Hall International
Nessim Hanna, H. Robert Dodge, 1997, Pricing: Policies and Procedures, Macmillan Publishers
Limited, UK
Schiffman, 2010, Consumer Behavior, Pearson Education India, New Delhi, India
Weilbacher, W. (1993) Brand Marketing: Building winning brand strategies that deliver value
and customer satisfaction, NTC business books
40
3.4APPENDIX:
1. Organ Gram of BPBL:
41
2. Seasonal Demand of BPBL:
42
3. Major Category Of Paint:
43
4. Distribution Structure of BPBL:
44
5. Current Market Share:
45
Market Share
Berger
Asian
1% Dulux
2% 2% 3%
4% RAK Paints
8% 2% Romana
5%
46% Elite
2% Roxy
3% Pailac
Aqua
22%
Navana
Al-karim
Others
46
Breathe 2300 640 130/140 4.75 11.9
Easy
Emulsion
Regular
Breathe Light to Light to Light to Deep Light to Light to
Easy Deep Deep 130/140 Deep Deep
Emulsion 2500 to 690 to 750 5.1 to 5.55 12.75 to
Color Bank 2700 13.9
Robb. 1170 325 150/160 2 5
Super
gloss
Synthetic
Enamel
(RSE)
Breathe 1950 540 150/160 3.5 8.75
Easy
Enamel
Regular
47