Chapter-O1: Department of Marketing, Comilla University

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CHAPTER-O1
INTRODUCTION
Department of Marketing, Comilla University

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1.1 Introduction
Painting was not given importance when decision were made regarding a house construction, but
over the years due to the increase in competition, growth in infrastructure, consumer awareness
about beauty, ambience and upkeep of their building, the consumer has become aware about the
importance of buying best paints. Initially the decision to buy paints depended up on the
contractor or the construction firm but now it has slowly become part of the final users decision.
Modern market is always known for setting up new trends and attracts new as well as existing
customers. In metros where consumers taste and preferences are changing very fast, creating
business opportunities for new as well as existing marketers is very important. Generally a
persons living standard or life-style depends on his/her background, standard of education,
family, peer group and the nature of works he/she performs. In modern marketing consumer
buying behavior is a very tricky concept, especially for painting industry because several internal
and external stimuli are there to contribute towards consumer purchase process. After
introduction of ecommerce, buyer behavior has been changed drastically because now a days it is
very easy to figure out the needed product through internet with the help of online shopping
portals. This study is also aiming to frame out the factors empirically influence on consumer
buying decision.
1.2 Background of the Report

RAK Paints (private) Ltd, a name in Bangladesh that carries a new spectrum of colors in the
atmosphere with a promise to ensure Bright and Elegant living everyday of the people of this
country. One of the prime objectives of RAK 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. RAK puts great emphasis on the
Research and developments of its products and services. On that note RAK paints has decided to
conduct a consumer research on consumer buying behavior. The research work focuses on the
factors influencing customer buying decision. This work will eventually show the various factors
and their relations that will vividly state the logics behind the behavior of the consumers towards
RAK paints products. Furthermore the research will help us to explore the insights of its clients,
to find out the RAKs weaknesses to attract customer and help to attempt necessary steps. The

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results from the research will eventually lead us to accomplish long term relationship with its
potential customers.
1.3 Research Problem:

Raising competition from Paint and non paint competitors and continuing development of
innovative ways to provide financial services are all contributing to a growing interest in
evaluating RAKs performance. This research is about the factors affecting consumer buying
decision of RAK Paints Bangladesh Ltd. This is a research project where I shall be trying to
investigate the factors affecting consumer buying decision of RAK Paints Bangladesh Ltd. These
factors are product cost, product quality, brand image, durability, reliability, delivery
performance, customer care service, customer relationship, availability & size, innovativeness
and eco friendliness. The advantage RAK is experiencing is the generic nature of Color Bank.
Through survey, the most common finding was that when people generally visit outlet, most of
them prefer RAK Paints for their good product quality and higher eco friendliness.
1.4 Origin of the Report

An internship is real life experience in a business organization that required after completion of
the academic courses in order to complete the Bachelor of Business Administration Program in
Comilla University. An Internship position at RAK Paints Bangladesh Limited was acquired and
topic of the report was proposed by the supervisor of my internship course. I started to work on
the topic titled Factors Affecting Consumer Buying Decision- A Study on RAK Paints
Bangladesh Ltd. With his approval and conscience this report was prepared.
1.5 Significance of the Study

This paper will help to find out the varied reasons for buying the same product among the RAK
paint users. Brand association is generally created and maintained by marketing strategies based
on feasible organizational objectives. So acquiring information regarding customers is very much
essential for developing successful marketing strategies to face the modern marketing challenges
and get the competitive edge over their rivals. Therefore the purpose of the researcher is to find
out significant relationship between RAK paints and customers perception towards using RAK
products.

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1.6 Objectives of the Study

In support of getting solutions for the predetermined problem, two types of objectives namely
key objective and specific objectives were taken into account.
Key objective:
Study and identify the factors that affect consumers to choose paints of RAK Paints BD Ltd.
Specific objectives:
To investigate respondents demographic.
To find out relative influence made by price, quality, and brand image to purchase of
RAK Paints.
To examine the degree of consumer buying decision varying with the product durability.
To examine the degree of consumer buying decision varying with the product reliability.
To examine the degree of consumer buying decision varying with the product
innovativeness.
To examine the degree of consumer buying decision varying with the eco friendliness.
To examine the degree of consumer buying decision varying with the customer care
service and customer relationship.
To examine the degree of consumer buying decision varying with the availability and its
size.
1.7 Scope of the Study

This intern report is mainly based on the factors that affect consumer buying decision of RAK
Paints Bangladesh Ltd. in Comilla region. This report is focus on Short description of RAK
Paints BD Ltd. It is also mentioned about the customer loyalty of RAK Paints. This report has
mainly based on the answers of the questionnaire survey and some in depth interview. Though
this report has been established through a three months time span, it would be much better if the
time was bit extended.

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1.8 Methodology of the Report

Basically, methodology means a method that involves a process on technique in which various
stages or steps of collecting data or information are explained and the analytical techniques are
defined. Collected data will be tabulated, processed and analyzed profusely in order to make the
program more informative, fruitful and purposeful.
1.8.1 Study Approach

I have done this research to gain better understanding of the dimensions of the problems. My
study provides information for analyzing a situation. Usually exploratory research is conducted
with the expectations that subsequent research will be required to provide conclusive evidence. It
is serious mistake to rush into detailed surveys before less expensive and more readily available
sources of information have been exhausted. I have done this research to help RAK Paints BD
Ltd for better understanding of market condition at Comilla. Thats why exploratory research is
appropriate for this study.
1.8.2 Research Design

The projected framework represented the outline and arrangement of relationships among the set
of considered variables. In this study I am going to investigate what are the main factors (Product
cost, Product quality, Delivery performance, Brand image, Time to market, Service support, and
Personal interaction) that effect in consumer buying decision of RAK paints.
1.8.3 Research Framework

This paper attempted to find out the factors that affect buying decision and loyalty among the
RAK paint users. In this study, Based on the literature and the factor analysis made the following
research model was constructed. The framework consists of eleven (11) independent variables
and one (01) dependent variable surrounding the consumer buying decision regarding RAK
Paints. The framework for the projected study is given below:

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Independent Variables
Price
Dependent Variables
Quality
Brand Image
Durability
Reliability
Delivery performance
Consumer Buying Decision
Customer Care Service
Customer relationship
Availability & Size
Innovativeness
Eco Friendliness
Figure 1.1: Framework of Research Variable and their Relationships
1.8.4 Sources of Data

a) Primary data are collected through
Data collection is carried through questionnaire method.
Face-to-face conversation with the respective marketing officers of the company
b) Secondary data are collected through

Previous research of the same nature.
Collected information through internet, some web-materials and journals.

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1.8.5 Questionnaire Design

Questionnaire based research have been conducted by me. The questionnaire of my survey has
been made by considering multiple choice alternatives and likert scale. Each item was rated on a
Five-point likert scale anchored at the number 5 with the verbal statement. I worked with a likert
scale with five point of scale, which given below:
Strongly Agree 5
Agree 4
Neutral 3
Disagree 2
Strongly Disagree 1
1.8.6 Sampling
1.8.6.1 Sample Unit
To done this research accurately I targeted the population who have currently using RAK paints.
Sampling technique will be simple random sampling under the probability sampling method.
1.8.6.2 Sample Size

The sample size was N=130. The study was conducted in Comilla city, Bangladesh.
1.8.7 Analysis Techniques

The data that obtained from the survey have been analyzed and interpreted by using statistical
tools such as Frequency Distribution, Percentage Analysis with the help of SPSS 16 software.
Then the data were presented through a numerical and graphical presentation. Based on these
figures and findings, some recommendations have been made out.

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1.9 Limitations of the Study

The extent and limit of the report were constricted due to some of the following considerations:
Due to time constraints it is not possible to cover vast area. So that survey has limited
scope for application in wide market.
Few customers are hesitated, agitated and disturbed to deliver some informations due to
the time wasted in the providing the same.
The study was limited by a number of factors.
Sample size was very small to present the proposed scenario and people here in our
society are not familiar with marketing research.
There might be some sampling error because of convenience sampling process.
Cost constraints leads to reduction in number of respondents.
Although we face some limitation, we were trying our best to overcome these complexities and
provide information as far as possible.

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CHAPTER-O2
COMPANY OVERVIEW

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2.1 History of RAK

RAK Paints BD Ltd is one of the leading multinational paint companies in Bangladesh. RAK
Group Bangladesh is a joint venture between UAE and Bangladesh. RAK Paints started its in
Bangladesh since 2010. RAK Paints Limited produces solvent based and water based paints of
premier quality. The primary list of paints to be manufactured is given separately. The Company
will also introduce latest Tinting System in different parts of the country for customer
satisfaction.
RAK Paints Limited will mainly focus on producing finest quality products, targeting retail
consumers, real estate developers, major institutions, architects, interior designers and who are
interested in exotic color combination to enhance the appearance. The company will strive for
good governance in every sphere of activities, especially for quality assurance and consistency.
Its vision is to become a world class paint manufacturer and lead the paint industry by
establishing itself as a producer with the finest manufacturing practices, through outstanding
product quality with diversification in different areas, innovative and eco-friendly approaches in
all the functions that are necessary to keep its customers satisfied. The latest machines and
equipment were inducted by RAK Paints over the past 6 years and the best quality of raw
materials was used to produce eco-friendly paints & coatings. It manufactures wide range of eco-
friendly solvent based and water based paints.
RAK Paints have a distinctive edge over other competitors by producing high quality products.
The Company makes wide range of products suited for varied application. RAK Paints caters to
the needs for all levels of users in the country. The Company was flexible in adapting the internal
market shifts and this continues to remain as the sustained strategy of being focused and aligned
with market realities. Flexibility to internal market also meant that the company had to pre-empt
the changing taste in various markets and proactively set new trends as per consumer demands.
Situated at Shahjibazar, Madhobpur, Hobigonj along the highway to Dhaka-Sylhet, is RAK
Paints complex extending over an area of 10,000 square meters. On this vast area of land there
are factories, raw material warehouses, office buildings, research and development laboratory,
Resin plant, Cement Plant etc.

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The paint market size is estimated at Tk 1,000 crore and domestic production capacity of Tk 920
crore. There is a gap of Tk 80 crore in the demand supply sector providing RAK an opportunity
to grab the market. In the first year the aim was to achieve 10% of market share. With this
statistic, it not only intends to establish the largest paint industry in the country with the state-of-
the-art machineries but also to provide quality branded products. The company grew rapidly, by
establishing branches all over the world and through mergers and acquisitions with other leading
paint and coating manufacturing companies. Over the past few years, RAK has evolved and
transformed itself in becoming the leading paint solution provider in the country with a
diversified product range that caters to all your painting needs. With its strong distribution
network, RAK 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. RAK'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.
2.2 Vision
Its vision is To become a world class paint manufacturer and lead the paint industry
2.3 Mission
RAK Paints Bangladesh Ltd expresses their mission in following manner:
We shall increase our turnover by 40% in the next five years. We shall remain socially
committed ethical Company
2.4 Corporate Objective

Our aim is to add value to life, to outperform the peers in terms of longevity, customer service,
revenue growth, earnings and cash generation. We will be the employer of choice for all existing
and future employees

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2.5 Company Profile

Table-2.1: Profile of RAK Paints BD Ltd.
Company Name: RAK Paints BD Limited
Address: Fawzdari, Comilla, Bangladesh
Contact: 01987700807
Help line: 88-02-8923297, 8913551
Fax 88-02-8919558
Email info@ rakpaintsbd.com
Web Site: www.rakpaintsbd.com
Product: Paints product
Size of unit: Large scale industry
Form of Organization: Private
Year Of Inception: 2009
Industry: Chemical
Head quarter: House # 5 (3rd Floor),

Road # 1/A, Sector# 4, Uttara Model Town,
Dhaka 1230, Bangladesh.
Contact person: Quazi Shafayet Hossain
Revenue: Rs. 7964 crore
Profit: Rs. 958.39 crore

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2.6 Current Market Situation

RAK paints have found that Bangladeshs paint industry is growing very rapidly for the past
several years due to an increase in demand by the construction sector. Its market size based on
demand is estimated at Tk 1,000 crore and domestic production capacity Tk 920 crore. So
demand supply gap is Tk 80 crore, which is a good prospect for paint industry in Bangladesh.
There are six paint manufacturers operating in the market with 90% market share which
includes; Berger, Asian, Aqua, Roxy, Pailac and Elite. In current paint market Berger has the
highest market share of 48% while other competitors are far behind it with Asian paints 12%,
Roxy 10%, Pailac and Aqua each 7% and Elite paints 5% of market share. To gain market share
in this rapidly growing industry, RAK must target specific segments with qualities that deliver
benefits valued by each customer group.
2.7 Products Overview

RAK Paints produces wide range of eco-friendly solvent based and water based paints i.e.,
Architectural, Decorative & Industrial coatings.
In Architectural categories RAK manufactures exterior sealer, putty, high quality
exterior emulsion paints.
In Decorative categories RAK Paints offer high PVC economy interior paints, sealer, and
high quality matt & silk emulsion.
RAK Paints also provide alkyd based primer, sealer & enamel paints.
In Industrial categories RAK Paints offer conventional epoxy protective coating, epoxy
floor coatings.
Aside from the above RAK Paints also provide heat resisting Aluminum paints, road
markings, marine paints and cement paints for exterior.
RAK paints offering twelve kinds of paints. The detail product description is given below:
RAK INTONE
RAK Intone Interior Plastic Emulsion is a fine quality long lasting water based paint best
suitable for the interior. It is based on a special durable acrylic co-polymer emulsion, high
opacity micronized pigments and additives to give better look, protection and stain resistance

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properties. It provides a smooth matt finish to the walls. It is also washable and easy to maintain
the new look.
Features: 1. Matt Finish 2.Washable 3.Water Based 4.Odorless 5.Excellent Stain Resistance.
Available in: 0.91 ltr, 3.64 ltr and 18.2 ltr packs.
Thinner: Water.
RAK CLEAN WASH

Cleaning is not fun. Children like playing and make things messy wherever they play. Interior
walls are the mostly liked playing area for children. So to make it easy and comfortable for the
people living in it, RAK paints brings washable interior plastic emulsion. Best quality raw
materials are used to make the Clean Wash Emulsion long lasting and it can be washed any time.
It is smooth and made by using state of the art technology. Thus it will dazzle your walls and
enhance beautification.
Features: 1.Washable 2.Premium quality 3.Long lasting fungus and alkali resistance 4.Excellent
adhesion and water resistance 5.Water Based 6.Odorless 7.Excellent Stain Resistance.
Available in: 0.91 ltr, 3.64 ltr and for special demand 18.2 ltr packs may also be available.
RAK WATER SEALER

RAK water sealer is a special co - polymer emulsion & is made of expandable raw materials. It
is a primer which protects the walls, ceiling, asbestos & so on from water insertion & alkali. It
acts as a wonderful intermediary coat & creates strong bondage with putty & finish coats for the
walls. It also protects walls from fungus, moss & others.
Features: 1. Washable 2. Long lasting 3.Fungus and alkali resistance 4.Excellent adhesion and
water resistance 5.Water Based 6.Odorless 7.Excellent Stain Resistance
Thinner: Water.
RAK WALL PUTTY

RAK Wall Putty is a special water base ready to use putty for filling & smoothening out cracks
& dents on a plastered wall or similar interior surfaces. It can be used very easily. Its acrylic
bindings ensure that it retains a strong grip on the wall surface, hereby increasing the life of the
paint film

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Features: 1. Washable 2.Long lasting fungus and alkali resistance 3.Excellent adhesion and water
resistance 4.Water Based 5.Odorless.
Available in: 5 kg and 25kg packs are available.
Thinner: Water
RAK HARMONY ACRYLIC

RAK Harmony Acrylic Distemper is water based paint for walls, ceilings and building boards. It
is specially formulated by acrylic co-polymer emulsion based distemper for elegant, smooth,
durable, matt finish for interiors. A value for money paint, it provides maximum coverage in its
category. It is very easy to apply, saving your time and money.
Features: 1.Matt Finish 2.Water Based 3.Odorless 4.High coverage.
Available in: 0.91 ltr, 3.64 ltr and 18.2 ltr packs.
Thinner: Water.
RAK SURFACCM
It with rich, moody colors and soft shades that age beautifully to a matt patina, RAK Surfacem
Durable Cement Paint is the ultimate combination of aesthetic appeal and longevity. It is an
economical exterior wall finish which is resistant to fungus and algae and protects buildings from
varying weather conditions. This paint exceptionally resilient formula was developed with
protection and performance in mind, making Surfacem a wonderful way to enhance cement
render, bagging, brickwork or any dimensionally stable surface. Ideal for outdoor walls it can
also be used indoors whether the tone is contemporary or traditional. It is water based paint and
easy to apply.
Features: 1. Economical 2. Better performance for outdoor protection and decoration. 3. Has
matt finish, an inexpensive way to cover large areas such as cellars and garages. 4. Maintains
good look for many years despite exposure to worse environments.
RAK ELEGANT SILK EMULSION

Your home is a heaven where your heart resides. Whether you are a king or a pauper, the peace
lies at home. Peace is peace is not an illusion; it is something everybody desires strives for. To

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make your home a peaceful abode RAK Paints provides you Elegant Silk Emulsion, the paint
that touches everyones heart with world-class beauty that comes with state of the art technology.
Beautiful, long lasting and stylish, it is the dream result of a wall finish with a soft sheen and a
silky smooth finish. Its acrylic base ensures that your chosen colors retain their freshness longer.
Uniquely formulated to yield more coverage and ensure a luxurious finish. It is protected by
color-guard formulation with an invisible protective layer that locks color to your walls. It is
ideal for your home because of its hardwearing wipe-clean formula, allowing you to wipe away
spills and dirt easily, thus keeping the just painted' look for longer.
RAK WEATHER KING

RAK Paints Weather King Pure Acrylic Exterior Emulsion is a premium; technologically
advanced water based excellent exterior wall finish. It is specially formulated to give exceptional
durability in adverse climatic conditions of high rainfall, humidity and heat. It is based on tough,
flexible and high quality latex emulsion which repels water and protects the beauty of the house
from the blazing sun. This latex emulsion helps prevent peeling off, dirt setting and cracking for
years. It has special type of fungicides which provides protection against growth of algae, fungi
and mould on exterior surface. It provides the building with a long lasting and fresh appearance.
All this makes it ALL IN ONE paint for exterior walls.
Features: 1. Color Guard Technology that protects shade fading. 2. Unique dirt-resistant
formulation. 3. Powerful anti-fungal compounds protects from black spots.
RAK OCEAN LINER PAINTS

Ocean Liner Paints is a die-hard coating specially formulated from a combination of Synthetic
Resin, Petroleum Resin & other selected materials. It protects & helps fighting the metal surface
from saline, unbearable ocean & riverine water.
Features: 1.High coverage (compared to conventional marine paint) 2.Water resistance. 3.
Washable 4.Good weathering properties 5.Good application characteristics.
Available in: 0.91 ltr and 3.64 ltr
Thinner: RAK Paints Thinner

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RAK PREMIUM SYNTHETIC ENAMEL

RAK Paints premium synthetic enamel is high gloss quality enamel. It gives a durable finish for
metal, cement, wood and similar surfaces due to its high resistance to water and wear and tear.
It is suitable for both interior and exterior areas like doors, windows, metallic frames, railings
etc. The color gives you smooth and superb finish. It is technically advanced topside enamel that
delivers a mirror-like finish. Loaded with UV stabilizers, it will last longer than any conventional
topside finishes. It is fast drying which when brushed or sprayed gives a shiny smooth finish.
Features: 1. High coverage (compared to conventional enamel paint). 2. High gloss (mirror like
gloss). 3. Water resistance. 4. Washable 5.Odorless 6. Good weathering properties 7. Good
application characteristics.
Available in: 0.455ltr, 0.91 ltr, 3.64 ltr and 18.2 ltr packs
RAK GLAZE ENAMEL

RAK Paints Glaze enamel is economy synthetic enamel formulated for interior and exterior
application to give a glossy durable surface. It is easy to apply, durable and has good flow. A
combination of economy and quality makes this product popular coating enamel. It is ideally
suitable for wood and steel furniture, toys and various household items.
Features: 1. High coverage (compare to conventional enamel paint). 2. Water resistance. 3.
Washable 4. Glossy.
Available in: 56 milliliter, 200 milliliter, 0.455 liter, 0.91 liter and 3.64 liter packs
Thinner: RAK Paints Thinner.
RAK INDUSTRIES PAINT

To protect different industries from unfavorable weather and poisonous environment (power
station, garments, chemical industries, iron and steel industries, pharmaceuticals, electronics
equipment manufacturer etc.) it is required to use RAK Industrial Paint and Protective Coating. It
is formulated from best standard raw materials to keep the industries active. Long durability
depends on the choosing of right paint for right place and the right preparation for the place.
Features: 1. High coverage (compared to conventional Industrial paint) 2.Water resistance. 3.
Washable 4. Good weathering properties 5. Good application characteristics.
Available in: 0.91 ltr and 3.64 ltr.

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2.8 Competitive Review

The paint market of Bangladesh is very competitive as each existing producers held a significant
percentage of market share. Key competitors include:
1. Berger: It is the market leader of paint industry holding the highest market share. It is the
most renowned paint brand in the country and it offers variety of products to customers. They
provide a unique service called Berger Home Decor Service which helps customers who
want to paint their house with several colors and this service seems to be popular among
customers. Berger mainly targets customers who can spend more after painting.
2. Asian Paints: Currently it is in the second position of paint industry. Targeted segment of
Asian Paints include interior wall finishes, the exterior segment, enamel and wood finished
segment through its Apcolite and Decora brands. Asian paints targets customers living in
cities and having good income.
3. Roxy Paint: It is cheap comparing to Berger and Asian and mainly targets customer in rural
areas and people with moderate income. People think about buying Roxy when painting
gates, outside walls or where it is unfeasible to use expensive paints.
4. Pailac, Aqua and Elite Paints: These three producers hold less market share and they are
popular in rural areas and among people who are not willing to spend much after painting.
2.9 Channels and Logistics Review

RAK Paints products will be networked through authorized dealers to retailers everywhere in the
country. There will be a RAK Paints Sales and Distribution Centre in every metropolitan city to
distribute products to dealers; they will also deal with customer complaints regarding dealers and
retailers.
Dealers: Dealership will be given to intermediaries by analyzing their years in business,
other lines carried, growth and profit record, cooperativeness, and reputation. Dealers will be
selling to retailers.
Retailers: Retailers will be buying from dealers but the company may sign contract with large
scale retailers who sell building materials (for example Fix it) by offering them special
benefits and discounts or take promotion campaign through them. Paints will be also sold to
the small retailers as well, so people can find our product everywhere.

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Online Service: Buying and selling through internet is becoming popular now days. Online
service reduces buyers time and expense of traveling. There are many buyers who doesnt
have proper knowledge on paints and cannot fully rely on advice of typical retailers, so they
want to contact with the company directly and RAKs online service provide this opportunity
to the customers, they can get the detail of the product and chose product for them. After
choosing the product customer will submit their initial order and they will send their
representative to finalize the deal, so that buyers will get the opportunity to share and discuss
their view and complete the deal. Therefore through online service customers can complete a
time consuming purchase by staying in their home. This service is beneficial to busy people.
Hotline Help: There will be a hotline number where customers will ask for help regarding
paints. Through this service customers can take specialists advice, know about RAK products
and can also get the address and information about their nearest retailer. Though they provide
this service via online but there are many people who are not very used to with internet.
2.10 Issues
As RAK is aiming to achieve 15% market share in the paint industry where there are already
giant competitors. So to fulfill RAKs objectives they have to create a strong brand image of
RAK among customers, they should give importance in designing the logo of their product
because a logo in short can describe the product. They will have to invest heavily in marketing to
create a memorable and distinctive brand image projection innovation, quality, and value. They
must response quickly to adjust their marketing efforts as necessary.
2.11 Marketing Strategy

RAKs marketing strategy is based on Changing attitude towards painting. Their primary
consumer target is residents of every class living all over the country who will use normal quality
paints to very high quality paints offered by RAK. Their secondary consumer target is factory
owners and ship, river liner owners. Their primary business target is capturing real estate
companies and land development firms. This is because they are highly involved in building
construction where paint is an essential item. Their secondary business target is ship and river
liner manufacturers. Ship building is a new industry in Bangladesh, so they can offer this
industry with RAK Ocean Liner.

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2.12 Positioning
Changing attitude towards painting means that their aim is to change peoples attitude towards
painting. This is because painting is a time consuming work, it gives out a lot of dusts and wastes
peoples time speaking to painters and many people do not want to do this. In order to increase
RAKs paint market more painting works has to be done by people. Therefore their target is to
make painting an interesting work by showing in advertisement that a popular actor or actress is
painting his or her house with their friends and relatives in a special day and at the same time
they are having a party. And in the advertisements they will also show how to reduce possible
disturbances while painting so that people do not get irritated.
2.13 Product Strategy

RAK paints all features described in earlier product review. They will introduce a lost lasting and
attractive paint. Building the RAK brand is an integral part of their product strategy. The brand
and logo will be displayed on the product and its packaging, and reinforced by its prominence in
the introductory marketing plan.
2.14 Pricing Strategy

They have a wide range of products and each have its own price. Their pricing strategy will be
based on market penetration pricing. They will set a low initial price in order to penetrate the
market quickly and deeply-to attract a large number of buyers quickly and win a large market
share. The high sales volume will result in falling costs, and is most likely to allow them to cut
prices even further. As they are offering twelve types of paints which means each of their costs
vary, their customer group also vary so they must have to decide on the price steps to set
between the different paints in their line which means they have to follow product line pricing as
well.
2.15 Distribution Strategy

RAK channel strategy is to use selective distribution. They will have RAK Paint dealers in every
metropolitan city who will be distributing their product to retailers. They will select dealer by
analyzing following factors; years in business, other lines carried, growth and profit record,

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cooperativeness and reputation. In order to sell their product to individuals and households they
will distribute their product to dealers who will later sell to retailers, so for individuals and
households they are following indirect marketing channel. Another group of customers is
building construction firms. A construction firm does not construct only one building at a time
but they tend to work on several buildings, therefore a construction firm is going to buy paints at
the end of their work in bulk amount which will allow RAK to sell a large quantity of paints at a
time so RAK will sign contacts with several construction firms by offering them several benefits
if they buy RAK paints from organization. Here RAK will not use any intermediaries. So, they
are following direct marketing channel.
2.16 Marketing Communication Strategy

RAKs targeted audiences are typical paint consumers, new house builders and construction
firms. Target audience is unaware of RAK paint brand; audiences have little or no knowledge
about their brand so at first they have to build awareness and knowledge. After that their next
task is to design a message that should get Attention, hold Interest, and arouse Desire and obtain
Action. In message content they will use emotional appeals. For example, in Bangladesh parents
consider a lot of factors when choosing bride or bridegroom for their child. And majority parents
take many days to come to their final decision. In RAK advertisement organization will show
that a boys parents are looking for a bride and they went to a girls house which is painted by
RAK paints and the house is looking very beautiful and that boys parents became very happy
and started to think seriously about this girl for their son. So they can design message content
like ar ghura ghuri noi aeibar Rong dia manush chinun. This message is likely to make an
emotional effect in consumers mind. They will not draw final conclusion about their message
content rather they will leave it to audiences. They will carry their message in print media and in
electronic media. In print media they will use novelty and contrast; eye catching pictures and
headlines; distinctive formats; message size and position; and color, shape, and movement in
order to grab attention. Also in electronic media these elements are important plus body language
and facial expression of presenter will be also taken into account. Since RAK is a paint
manufacturing business they will select non personal communication channels that are print
media, broadcast media, display media, and online media. They will choose very popular actor or
actress to deliver their message to audience. In RAK advertisement they can show party with

22
paint that is an actor or actress is painting his or her house with their friends and having fun.
They also have plans to open some paint houses around the city, there people will go and do
party by painting walls and whatever they want. After giving their message about RAK paints to
their customers they will analyze the effect it made on target audience like whether they
remember the message, how many times they saw it, what points they recall etc.
2.17 Marketing Research

They will conduct marketing research in every four months to know about the condition of RAK
paints. How people like it? And is the price a reasonable one? They can conduct survey among
paint workers; how much customer feel comfortable by using RAK paints, what are the
drawbacks RAK paints have comparing to other paints in the market? By conducting market
research they can make necessary changes in their business.
2.18 Budgets
As they are new in the market and the market is already filled with strong competitors, so they
need a heavy budget. Because they have to spend a huge amount for the promotion of their
product, they have office, factory and so many other expenses. So they need a big amount of
budget. The projected primary budget will be around 100 crore. They will spend 60-80 crore in
building factories, buying machineries and rest of the money will spend in promotional activities,
building offices and many other expenses. Their object is capturing 5% of the current market so,
they are hoping that they will able to make a minimum profit of 70-100 million in first year.
2.19 Controls
They are planning tight measures to closely monitor quality and customer service satisfaction.
They will maintain a quality standard in delivering their products to the consumers. They will
keep their words, will fulfill their promises given to customers, they will keep their management
section always ready to deal with every problems and possibilities. All the plans they have taken,
they will make sure that these plans are implementing correctly. Given the market volatility; they
are developing contingency plans to address fast moving environmental changes such as new
technology and competition.

23
2.20 SWOT Analysis

Strengths:
1) Varity of Products: We offer 12 products which makes us less dependent on each
product. If we find one product unprofitable then we can cover the loss from the most
profitable product. We offer industrial paint and ocean liner paint which are unique
products and are not offered by competitors. This will help us to gain monopoly position
in the targeted segment.
2) Quality products: Our paints will be made from best raw materials. We will use latest
machineries in our production process and we will employ Chemical Engineers who are
experienced, in order to verify our quality.
3) Pricing: We will set our products price in a reasonable range and will offer dealers cash
discount for prompt payment and offer trade discount for bulk buying.
Weaknesses:
1) Lack of brand awareness: RAK has no established brand or image, whereas Berger and
others have strong brand recognition. We will address this issue by promotion.
2) Price setting decision: As we are using best raw materials to produce our product we are
incurring more costs which will make it difficult for us to implement more for less
promotion strategy and force us to sell at high price comparing to competitors. We will
address this issue by advertisement showing why customers should buy our product at
high price.
Opportunities:
1) Increasing demand from construction sector: Today in Bangladesh more buildings are
constructed, housing estate projects are carrying on which increases demand for paints.
2) Un-served segments: There is a demand supply gap of Tk 80 crore which means a large
portion of market is un-served by the current competitors which might be an opportunity
for RAK to grab the market.

24
Threats:
1. Increased competition: There are many competitors in the paint industry occupying
significant market shares and having a positive brand image in peoples mind which will
make it difficult for RAK to operate in the industry.
2. Downward pressure on pricing: Increased competition may mean to sell at lower price
than competitors which is likely to make it difficult to cover costs.
3. Bad debt problem: There are some retailers who sell building materials along with paints
but recently these types of retailers have stopped selling paints due to bad debt problem.
Our studies have found that painting work is done at the very last of all the works in a
newly constructed building. At the beginning of construction the owner is likely to have
more money and they buy a lot of building materials paying cash instantly which helps
them to have a good relationship with the retailer. But at the very end when time for
painting comes then many owners are left with less finance and therefore they ask
retailers to give them paints on credit, for example 50% credit. But later on these
customers hardly pay the money or some of them do not pay even and turn outs to be a
bad debt.
4. Government rules and regulations: In Bangladesh, Government does not allow payment
via the internet within the country. This will be a big barrier for us to implement online
payment service if government does not remove the law.

25
CHAPTER-3
LITERATURE REVIEW

26
Several studies have been done on this particular topic with different angle and view point. But
as market environment is changing drastically, organizations have to take alternative strategic
steps to cope with the situation. I have just extended previous studies with a view point of
consumers ever changing buying pattern.
According to Zeithaml (1988), a consumers perceived value may be seen as an expression of

an overall assessment of the utility of a product/service based on perceptions of what is
received and what is given.
According to A. Ranasethu (2014), the Indian consumers are fighting a desperate battle on two
fronts such as costs and quality.
According to Mitchell and Walsh (2004), males and females want different ways of liking and
obtaining these.
According to Akturan, 2009:66, the expectation, need, wants always varies based on gender
and reflects on their behavior of consumption.
Lau (2006), in his article has mentioned that there are seven factors that influence
consumers' buying decision and brand loyalty on certain brands. The factors are brand
name, product quality, design, price, innovativeness, durability and service quality. As a whole
these factors are taken into the basket of brand image, product quality and product price. A
previous study has indicated that brand attributes are viewed as important elements in a
consumer's decision making.
Anurag (2007), Consumer Behavior and Buying Decision Making,
http://www.123eng.Com/Forum/Index.Php (Retrieved On 16.02.2007).
Anurag (2007)4 in his e-article Consumer Behavior and Buying Decision Making has pointed
out that marketing in India is growing through an indefinable phase and so also the changing role
of consumer in making decision and the way in which the new generation of Indian consumer
behaves. The characteristics of Indian families are changing under the influence of external
factors such as liberalization and media explosion. Indian families are presently in a state of flux,
shifting from being strictly hierarchical to more egalitarian in character. And the process of
migration definitely has a big role to play in such transition.

27
Mathur A. (2011). An Empirical Study Of Quality Of Paints: A Case Study Of Impact Of

Asian Paints On Customer Satisfaction In The City Of Jodhpur. IJMT, 19(2).84-98
Paints are the basis to fill colours in the human life. The quality of paints impacts the life to give
the beauty and imagination to live a life of better standards. The paints in the market are used in
the houses to give the imagination, beauty and creativity to design the life for living with peace
and progress. The paints have many uses and they basically form the fabric of creative and
innovative life with the colours of many moods and emotions. The basic aim of the paper is to
build the strategic framework for developing the quality paints to give the strength to the
infrastructure of the surroundings in a beautiful way.
a) Perceived Value (Product cost)

Sheldon et al, 1991, RAK is trying to make it possible to bring the best painting solutions at
affordable prices. They have different category of product with different price. Product costing is
defined as a process of estimating the cost of a final product at design stage.
Ulaga and Eggert (2006), point out that manager identifies direct product costs, i.e. the price
charged by a supplier, as the key relationship cost-driver. With regard to the effect of price on
customer buying decision in the context of manufacturing firms,
Fynes and Voss (2001), found both constructs to be inversely related. On the other hand, we
found no studies with a direct influence of price on customer buying decision.
Whitney (1987), pointed out the predominant percentage of manufacturing cost of a product is
determined at product design stage. Therefore, estimating cost at design stage, i.e. product
costing, is one of the vital enablers for accurate pricing in customer negotiation. Moreover,
product costing is able to discover the linkages between design specifications and cost factors
and then find the method to reduce cost at early stage.
b) Perceived Product quality

Selnes, 1993; Janda et al, 2002; Chumpitaz and Paparoidamis, 2004, There are some studies
that found a positive effect of product quality on consumer buying decision, whereas the effect
on customer loyalty clearly lacks empirical support in the business-to-business context.
Devarajet al, 2001; Espejelet al, 2007, In consumer-based studies the positive link between
product quality and buying motive has mostly been confirmed for behavioral loyalty.

28
Plato, The transcendent definition of quality is derived from philosophy and borrows heavily
from Platos discussion of beauty. From this viewpoint, quality is both absolute and universally
recognizable.
According to Pirsing (1992, p.73), defining quality as excellence means that it is understood
ahead of dimension as a direct experience independent of and prior to intellectual abstractions.
The product based approach has its roots in economics.
Garvin, 1984, Differences in the quantity of someone ingredient or attribute possessed by the
product are considered to reflect difference in quality. For example, better quality lines have a
higher thread count. This view of quality, based on a measurable characteristic of the product
rather than on preferences, enables a more objective assessment of quality.
Crosby, 1979, The manufacturing based approach has its roots in operations and production
management. Here quality is defined as conformance to specious. Quality of conformance relates
to the degree to which a product meets certain design standards that influence customer to
purchase.
c) Delivery performance
Ulaga, 2003, p. 684, Delivery performance encompasses suppliers ability to meet delivery
schedules (on-time delivery), adjust to changes in delivery schedules (flexibility) and
consistently deliver the right parts (accuracy) that encourages customer to take right decision.
Compared to product quality, empirical support for delivery performance as an antecedent of
satisfaction and loyalty is even more modest. The order-to-delivery (OTD) process is one of the
most important processes to manage. It can be defined as consisting of four sub processes;
customers ordering, suppliers delivery, logistics service providers (LSPs) transportation, and
customers goods receipt sub-process (Mattsson, 2004). The performance of an OTD process
concerns traditionally lead time and on-time delivery. In a logistics context, lead time is typically
defined as the elapsed time between recognition of the need to order and the receipt of goods
(Blackstone and Cox, 2005). On-time delivery is the extent to which the lead time, and as a
consequence the delivery date and the delivered quantity corresponds to what has been
confirmed (e.g. Forslundand Jonsson, 2007; Kallio et al, 2000). There are, however, other
performance dimensions that in order-by-order environments also may be important: lead time
variability, lead time adaptability and lead time flexibility. The external view considers that the

29
internal perspective is insufficient to develop all the companys capabilities since some of them
are created and strengthened by inter organizational relationships with other firms in the same
network.
Dyer and Singh, 1998, This analysis perspective suggests that a companys critical resources
can be expanded or constructed beyond the confines of the firm, and be integrated in inter-
business routines and processes by being jointly directed at customer buying decision (Zhao and
Stank, 2003). In this context, outsourcing finds new theoretical support by being developed from
a strategic perspective, that is, with the aim of obtaining a sustained competitive advantage.
Pfohl and Buse, 2000, relationships to be maintained within a framework of long-term
cooperation, with suppliers considered to be partners.
d) Customer Relationship
A consumer products company remains profitable only if it has the right product at the right
price in the right place at the right time. However, getting these stars to line up only happens
when "the entire supply chain works as one. When RAK places its logo on a product, the logo
represents "a seal of quality." Protecting that quality makes RAK responsible for its entire supply
chain.
Ulaga and Eggert (2006), identify supplier know-how and its capacity to improve the time-to-
market as two benefit dimensions in the area of customer operations.
Shin et al, 2000, Supplier performance has been positively linked to manufacturing firm
performance. If performance is affected by the quality of the relationship, then in order to sustain
performance, the relationship must be sustained. Fundamentally, the ongoing relationship
between manufacturer and supplier is not important for its own sake.
Fynes et al, 2005, a healthy relationship is important because it encourages more information
sharing, better communication, and more trust, each of which can improve planning,
coordination, problem solving, and adaptation and thus manufacturing firm performance. It is
important to understand how manufacturers react to supply failures and recoveries because these
reactions may be the antecedents to significant costs.
Forker, 1997; Krause, 1999, A supply failure may induce the manufacturing firm to invest in
improving supplier capability up to required levels because supply failures increase transaction
costs. Lacking trust in supplier reliability the manufacturing firm may expend resources and

30
monies to identify back-up suppliers, or add slack (e.g. inventory, longer lead times) to the
system. A critical supply failure, or a series of failures, can lead to potential relationship
disintegration (Ellram, 1991; Bowersox and Closs, 1996).
e) Product availability and innovativeness

Maintaining liaison with nationwide dealers and also ensuring that RAK products are available
everywhere in the country. Marketing Department communicates internally on how to bring new
product and innovative painting solutions to meet the needs of various wants. Linking
consumers' needs with the capacity of fulfilling them, the marketing department supervises
Home Decor centers throughout the country. So RAKs products are available in the market.
Time to- market is the strategy of focusing on reducing the time to introduce new products to
market.
According to Whitney, (1990), the process is self-contained with little if no outside
interference. The absence of manufacturing involvement, even in writing the manufacturing
process plan, increases the possibilities for redundant activities and reduces the chances for
getting the optimal design in shorter time. It has been found that 80-90 per cent of the time-to-
market equation is absorbed in the design phase. Reducing this time is central to getting products
earlier to market. Further, 80per cent of a products cost is committed during the design phase,
whereas design only absorbs 8 per cent of incurred costs. The benefits of bringing products to
market quicker than competitions are extra sales revenue and earlier breakeven, extended sales
life, premium price giving bonus profits from being first, early introduction means hooking
customers before competition and thus developing their loyalty, and leading to increased market
share.
f) Service Quality and support

RAK has online customer support system to get advice from experts about their product. They
have care line to get direct support and any information regrinding their product. Customer
service is the ability to provide a service or product in the way that it has been promised.
Gronroos (200, p.46) defined service as, A service is a process consisting of a series of more or
less intangible activities that normally, but not necessarily always take place in interactions
between the customer and service employees or physical resources or goods and/or systems of

31
the company, which are provided as solutions to customer problems. Customer service is the
provision of service to customer before, during and after a purchase.
According to Turban et al. (2002), Customer service is a series of activities designed to
enhance the level of customer satisfaction-that is, the feeling that a product or service has met the
customer expectation.
Paul H December 1998, From the point of view of an overall sales process engineering effort,
customer service plays an important role in an organizations ability to generate income and
revenue. From that perspective, customer service should be included as part of an overall
approach to systematic improvement. A customer service experience can change the entire
perception a customer has of the organization. Customer service is a system of activities of a
company or organization that comprises customer support system, complaint processing, speed
of complaint processing, ease of reporting complaint and friendliness when reporting complaint
(Kim, park and jeong, 2004).
g) Personal Interaction
RAK maintains a very good relationship with their customers and dealers. Marketing department
coordinates various events and activities as part of RAKs Corporate Social Responsibilities. For
the last two years, RAK has been contributing to the welfare of autistic and differently
challenged children of Bangladesh. In addition to that, the department is also involved in
organizing RAEA (RAK Award for Excellence in Architecture), RASAB (RAK Award for the
Students of Architecture, BUET), RYPAC (RAK Young Painters Art Competition), Scholarship
Program for the students of Architecture, Khulna University etc. The personal interaction is
acknowledged to represent one of the key issues in business and industrial marketing, both in
terms of practice and theory.
Granovetter, 1985, Organizational relationships are always a result of the actions of the
individuals representing the organizations and social relationships form the channel for doing
business (Halinen and To rnroos, 1998).
Ha kansson, 1982, Personal interaction was defined as a key element of interaction between
organizations already in the interaction approach.
Halinen and Salmi, 2001, has defined basic and complex functions for social relationships, with
positive and possibly negative influences on business relationships.

32
Cova et al (1996), the variety of the personal interaction in project business relationships has
been recognized at the community level in terms of relevant actors in the project marketing
milieu.
Accordingly, Themilieu refers to the nature of the context in which project business firms
operate. Within the milieu, project business firms have to generate or maintain credibility and to
be a part of informational and social networks through personal interaction by individuals
representing them.
Cova and Salle (2000) emphasize community level rituals in the interaction during the sleeping
relationship phase.

33
CHAPTER-O4
ANALYSIS & FINDINGS

34
4.1 Statistical Analysis

This study was conducted by factors affecting consumer buying decision: A Study on RAK
Paints BD Ltd. The results are derived from the questionnaire which filled by Customer of RAK
Paints. When I conducted this analysis, I found some important findings. Here I use SPSS
software to catch out the findings of this report. All the SPSS result sheets have to be converted
into managerially understandable form. The analysis and findings are given in the following
simultaneously.
4.1.1 Respondents demographic
Table 4.1: Gender
Gender
Frequency Percent Valid Percent Cumulative Percent
Valid Male 80 61.5 61.5 61.5
Female 50 38.5 38.5 100.0
Total 130 100.0 100.0
Source: Questionnaire Data
Figure 4.1: Gender
Interpretation: Sample consists of 80 male and 50 female RAK Paint users. From the pie chart, it
is found that 61.54% male and 38.46% female in this case.

35
Table 4.2: Age
Age
Valid 20-25 12 9.2 9.2 9.2
26-30 32 24.6 24.6 33.8
31-35 46 35.4 35.4 69.2
36 and above 40 30.8 30.8 100.0
Total 130 100.0 100.0
Figure 4.2: Age
Interpretation: From the pie chart it is found that the majority of the respondents are between 31-
35 years of age and above 35 years of age respectively 35.38% and 30.77%. 24.62% are between
26-30 years of age and 9.23% are between 20-25 years of age. So 31-35 years respondent are the
maximum respondents in this case.

36
Table 4.3: Occupation
Occupation
Valid Student 2 1.5 1.5 1.5

Service Holder 28 21.5 21.5 23.1
Businessman 35 26.9 26.9 50.0
Housewife 20 15.4 15.4 65.4
Others 45 34.6 34.6 100.0
Total 130 100.0 100.0
Figure 4.3: Occupation
Interpretation: From the pie chart it is found that the mode for the responses is the majority of the
respondents are others occupation. There I see that 34.62% are others, 26.92% are businessman,
21.54% are Service holders, and 15.38% are House wife, and 1.54% is students in this case.

37
4.1.2 Price of Paints
Table 4.4: The dealers deal with higher price.
The dealers deal with higher price.

Valid Strongly Disagree 13 10.0 10.0 10.0
Disagree 34 26.2 26.2 36.2
Agree 20 15.4 15.4 51.5
Strongly Agree 63 48.5 48.5 100.0
Total 130 100.0 100.0
Figure 4.4: The dealers deal with higher price.
Interpretation: The findings here indicate that, a large number of people think that, costs of
RAKs product is higher than before. And some people think that price of the RAKs products is
comparatively lower than others. 48.5% people strongly agree that the dealers of RAK charges
higher price. And 15.38% people think that the dealer charges reasonable price and only 10%
respondent said that the price of RAKs product is lower than others and 26.15% are normally
disagreed.

38
4.1.3 Product Quality
Table 4.5: RAK Paints provides us with better product quality.
RAK Paints provides us with better product quality.

Valid Disagree 18 13.85 13.8 13.8
Agree 49 37.7 37.7 51.5
Strongly Agree 63 48.5 48.5 100.0
Total 130 100.0 100.0
Figure 4.5: RAK Paints provides us with better product quality.
Interpretation: It represents that 48.46% customers are highly agree that they believe quality of
RAK Paints is better and 37.69% are normally agree with the statement. 13.85% customers are
disagreeing with this statement. So, RAK has to develop its technology to provide further quality
product to maintain customer satisfaction.

39
Table 4.6: RAK Paints provides more consistent product quality over time.
RAK Paints provides more consistent product quality over time.

Valid Disagree 25 19.2 19.2 19.2

Agree 53 40.8 40.8 60.0
Strongly Agree 52 40.0 40.0 100.0
Total 130 100.0 100.0
Figure 4.6: RAK Paints provides more consistent product quality over time.
Interpretation: Here also represent that most of the customers are agreed with the product quality
standard of RAK Paints because RAK maintains its product quality standard over the period. It
represents that more than 80% customers (highly agree + agree) believe that RAK provides more
consistent product quality over time. 19.23% customers are disagreeing with this statement.

40
4.1.4 Brand Name
Table 4.7: Customers are influenced by brand name of RAK Paints.
Customers are influenced by brand name of RAK Paints.

Disagree 65 50.0 50.0 53.8
Agree 31 23.8 23.8 77.7
Strongly Agree 29 22.3 22.3 100.0
Total 130 100.0 100.0
Figure 4.7: Customers are influenced by brand name of RAK Paints.
Interpretation: From the pie chart, it is found that more than 50% (highly disagree + disagree)
customers think they are not influenced by brand name of RAK Paints. And 46.16% (highly
agree + agree) customers believe that they influence by brand name of RAK Paints. So, RAK
paints brand image is not good. Organization should work on this side.

41
4.1.5 Product Durability
Table 4.8: RAK paints are more durable than those of other paints of Bangladesh.
RAK paints are more durable than those of other paints of Bangladesh.

Neutral 8 6.2 6.2 25.4
Agree 50 38.5 38.5 63.8
Strongly Agree 47 36.2 36.2 100.0
Total 130 100.0 100.0
Figure 4.8: RAK paints are more durable than those of other paints of Bangladesh.
Interpretation: Out of the total respondents 74.61% (36.15+38.46) said that, the durability of
RAK color bank is more compared to others. Only 19.23% respondents are disagreeing with this
statement and 6.15% are neutral.

42
4.1.6 Product Reliability
Table 4.9: RAK Paints products are more reliable.
RAK Paints products are more reliable.

Disagree 50 38.5 38.5 46.9
Neutral 4 3.1 3.1 50.0
Agree 34 26.2 26.2 76.2
Strongly Agree 31 23.8 23.85 100.0
Total 130 100.0 100.0
Figure 4.9: RAK Paints products are more reliable.
Interpretation: From the pie chart it is found that 50% (23.85+26.15) customers believe that
RAKs products are reliable and 46.92% (8.46+38.46) customers are disagreed with the
reliability and 3.08% are neutral.

43
4.1.7 Delivery Performance
Table 4.10: RAK Paints performs better in meeting delivery
RAK Paints performs better in meeting delivery.


Disagree 25 19.2 19.2 22.3
Neutral 5 3.8 3.8 26.2
Agree 40 30.8 30.8 56.9
Strongly Agree 56 43.1 43.1 100.0
Total 130 100.0 100.0
Figure 4.10: RAK Paints performs better in meeting delivery
Interpretation: Better delivery capabilities may satisfy customers demand. However, the findings
above showed that most of the customers 73.9% (43.08+30.8) are satisfied with the delivery
process of RAK paints. 22.3% (3.08+19.2) are disagreed with the better delivery process. These
customers think that RAK should improve its delivery process. 3.85% are neutral.

44
4.1.8 Customer Care service
Table 4.11: RAK Paints helps the customer providing the idea of exotic color combination to
enhance the appearance.
RAK Paints helps the customer providing the idea of exotic color combination to enhance
the appearance.
Disagree 29 22.3 22.3 25.4
Neutral 6 4.6 4.6 30.0
Agree 48 36.9 36.9 66.9
Strongly Agree 43 33.1 33.1 100.0
Total 130 100.0 100.0
Figure 4.11: RAK Paints helps the customer providing the idea of exotic color combination to
enhance the appearance.
Interpretation: From the pie chart, it is found that 70.02% (33.1+36.92) customers are agreed
with above statement and 25.39% (22.31+3.08) customers are dissatisfied. 4.62% customers are
neutral.

45
Table 4.12: RAK Paints provides better customer care service.
RAK Paints provides better customer care service.


Neutral 6 4.6 4.6 31.5
Agree 37 28.5 28.5 60.0
Strongly Agree 52 40.0 40.0 100.0
Total 130 100.0 100.0
Figure 4.12: RAK Paints provides better customer care service.
Interpretation: RAK has online customer support system to get advice from experts about their
product. They have care line to get direct support and any information regrinding their product.
68.5% (40+28.46) customers think that customer service is available when information is needed
but 26.92% customers are dissatisfied and only 4.62% are neutral in this case. Hence, RAK has
to increase the capacity to ensure available information in accordance with the customer demand.

46
4.1.9 Customer Relationship
Table 4.13: RAK Paints maintains better relationship with customers.
RAK Paints maintains better relationship with customers.


Agree 50 38.5 38.5 60.8
Strongly Agree 51 39.2 39.2 100.0
Total 130 100.0 100.0
Figure 4.13: RAK Paints maintains better relationship with customers.
Interpretation: RAK tries to maintain better relationship with its customer because customer is
the king of the market. From the survey I can state that RAK maintains better relationship with
its customer because more than 75% (38.46+39.23) respondents are agree with this statement.
22.31% customers are disagreeing with the statement.

47
4.1.10 Availability & Size of Colors
Table 4.14: RAK Paints color bank can provide available color.
RAK Paints color bank can provide available color.

Frequency Percent Valid Percent Cumulative
Percent
Valid Strongly Disagree 1 .8 .8 .8
Disagree 16 12.3 12.3 13.1
Agree 48 36.9 36.9 50.0
Strongly Agree 65 50.0 50.0 100.0
Total 130 100.0 100.0
Figure 4.14: RAK Paints color bank can provide available color.
Interpretation: From the pie chart, it is found that 86.92% (50%+36.92%) consider that RAK
color bank provides available color. Only 12.31% disagree and 0.77% customers are highly
disagreeing about the availability of color RAK paints.

48
Table 4.15: RAK Paints products are available in its size.
RAK Paints products are available in its size.

Percent
Disagree 9 6.9 6.9 12.3
Agree 55 42.3 42.3 54.6
Strongly Agree 59 45.4 45.4 100.0
Total 130 100.0 100.0
Figure 4.15: RAK Paints products are available in its size.
Interpretation: Availability of product size is also a most important phenomenon in case of

customer buying decision. From the pie chart, it is found that 87.69% (45.38+42.31) customers
consider that RAK Paints products are available in its size. 12.3% (5.38+6.92) customers are
disagreeing with the statement.

49
4.1.11 Product Innovativeness
Table 4.16: RAK Paints introduces computerized color shades.
RAK Paints introduces computerized color shades.

Disagree 44 33.8 33.8 43.8
Neutral 6 4.6 4.6 48.5
Agree 40 30.8 30.8 79.2
Strongly Agree 27 20.8 20.8 100.0
Total 130 100.0 100.0
Figure 4.16: RAK Paints introduces computerized color shades.
Interpretation: From the pie chart, it is found that 20.77% customers are highly agree , 30.77%
customers are agree, 4.62% customers are neutral, 33.85% customers are dissatisfied and only
10% customers are highly dissatisfied in this case. So, 51.54% are agreeing with the statement
and 43.85% are disagreeing with this statement in this case.

50
Table 4.17: RAK Paints knows better how to improve existing products.
RAK Paints knows better how to improve existing products.

Percent
Disagree 38 29.2 29.2 36.9
Neutral 9 6.9 6.9 43.8
Agree 41 31.5 31.5 75.4
Strongly Agree 32 24.6 24.6 100.0
Total 130 100.0 100.0
Figure 4.17: RAK Paints knows better how to improve existing products.
Interpretation: Above pie represents that 24.62% customers are highly agree, 31.54% customers
are agree, 6.92% customers are neutral, and 36.93% (29.23+7.7) customers think that RAK does
not improve its existing product. So, RAK has to try to improve its existing product to satisfy all
types of customers.

51
Table 4.18: RAK Paints provide us new, improved and innovative product.
RAK Paints provide us new, improved and innovative product.

Disagree 43 33.1 33.1 49.2
Neutral 10 7.7 7.7 56.9
Agree 34 26.2 26.2 83.1
Strongly Agree 22 16.9 16.9 100.0
Total 130 100.0 100.0
Figure 4.18: RAK Paints provide us new, improved and innovative product.
Interpretation: From the pie chart, it is found that 16.92% customers are highly agree, 26.15%
customers are agree that RAK provide more up to date product with the changing needs of
customers. 33.08% customers are dissatisfied and 16.15% customers are highly dissatisfied that
they think RAK does not provide new product over the time. 7.69% customers did comment
neither agree nor disagree. So, survey indicates that RAK failed to provide innovative product.

52
4.1.12 Eco-friendliness
Table 4.19: It has no pungent smell and has a strong friendliness with environment.
It has no pungent smell and has a strong friendliness with environment.

Agree 49 37.7 37.7 47.7
Strongly Agree 68 52.3 52.3 100.0
Total 130 100.0 100.0
Figure 4.19: It has no pungent smell and has a strong friendliness with environment.
Interpretation: From the pie chart, it is found that 52.31% customers are highly agreed that they
believe it is highly eco friendly product. 37.69% customers are agreed. Only 10% customers are
dissatisfied. So, around 90% customers think that it is eco friendly product.

53
4.2 Findings
There are some findings related to the research. These are given below
Price
Customers perceived value is low. Most of the customers think that price of the RAK product is
high. So, organization should think about the price of product that directly affects the customer
buying decision.
Quality
Perceived product quality of RAK paint is comparatively good. Most of the customers are
satisfied about the RAK product quality. Only 13.85% are not satisfied.
RAK maintains its product quality standard over the period because most of the
customers are agreed with the product quality standard of RAK Paints. Only 19.23% are
disagreed.
Brand Image
Most of the customers are not influenced by the brand name of RAK Paints because more than
50% disagree with the statement.
Durability
Most of the respondents that 74.61% are satisfied about product durability of RAK paint. Only
19.23% respondents are dissatisfied about product durability.
Reliability
Product reliability is comparatively low because 50% respondents are satisfied about product
reliability of RAK paints where 46.92% are disagreeing.
Delivery performance
Delivery performance is good because most of the respondents are satisfied about the delivery
performance of RAK paints. 73.9% are agreed and 22.3% are not satisfied with their delivery
performance.

54
Customer care service

Customer care service is good because more than 65% respondents are satisfied about customer
care service of RAK paints and 25% respondents are dissatisfied.
Customer Relationship
RAK tries to maintain better relationship with its customer because customer is the king of the
market. RAK maintains better relationship with its customer because more than 75% respondents
are agreeing with this statement. 22.31% customers are disagreeing with the statement.
Availability & size

RAK color bank provides available color because 86.92% are agreeing with this statement. Only
12.31% disagree about the availability of color RAK paints.
Product innovativeness
Product innovativeness is comparatively low.
RAKs existing product is comparatively low improved.
They are failed to provide innovative, new product.
Eco-friendliness
RAK Paint Ltd is very environment conscious. It may be considered as an example of green
product. Because, around 90% customers think that it is eco friendly product.

55
CHAPTER- 05
RECOMMENDATIONS & CONCLUSION

56
5 .1 Recommendations
From the analysis, it is clear that the main reason of RAK paint usage is their better quality and
eco friendliness. Dealers are a major party to influence customers to purchase RAK products. If
they are satisfied, then customers will be influenced to purchase RAK Paint product. It is
possible to create better future in the paint if RAK paints take action for producing more
qualitative product which is better than other multinational company. On the basis of my survey I
recommend the following facts.
RAK has to try to make it possible to bring the best painting solutions at affordable prices.
Though the product quality of RAK paint product is better they have to work on this side for
launching more quality product. So, they must develop its technology to provide further
quality product and provide more consistent product quality over time.
The company should maintain its marketing strategy and keep on touch with their
promotional activity for increasing brand image.
RAK has to work on its product durability, reliability. They have to make their product more
durable and reliable.
Always try to maintain personal and corporate relationship with customer.
They have to provide more service support.
Availability of product size is also a most important phenomenon in case of customer buying
decision. They have to ensure availability of color bank and its size.
RAK should take necessary steps to improve its existing product to satisfy all types of
customers and should provide more up to date product with the changing needs of customers.
RAK Paints have to take strong strategy against its key competitor. The competitors are
providing false information about RAK Paints thus affect consumer buying decision. So,
RAK Paints should protect it. Otherwise RAK Paints may lose its Brand image, Quality etc.
RAK Paints can reconsider its discount policy and provide more discount to customers.
RAK Paints have to make some valuable paint contractors who have the goodwill.
Always be aware about the marketing strategy and policy of competitors.

57
5.2 Conclusion
Paint Industry of Bangladesh is now more competitive than before. In our study, consumer
decision making process for purchasing paint product was tested by using eleven independent
variables. The research was done to identify which factors have significant influence on the
matter. The eleven independent variables are Price, Quality, Brand Image, Durability,
Reliability, Delivery performance, Customer care service, Customer relationship, Innovativeness
Availability and its size and Eco friendliness.
According to the data analysis Quality, Eco friendliness, Durability, Time to market, Service
support, and Personal interaction are positively related with consumer buying decision. The
reason might be that most of the respondents believe RAK Paint BD Ltd is in better position
considering on the above cases.
And Product cost, brand image, Reliability and Product innovativeness are negatively related
with consumer buying decision. Because most of the respondent think that considering above
cases of RAK Paints are not improved satisfactorily. For these reason some of the customers are
not ready to take decision for purchasing paint product. So, I think organization should work on
these sides.
By those results I can say that this thing is the main reason that people are using RAK paints. So
I think the buyers will buy these products because of the companys brand portfolio.

58
References & Appendix

59
References
Books & Report
1. Anurag (2007), Consumer Behavior And Buying Decision Making,
http://www.123eng.Com/Forum/Index.Php. (Retrieved On 16.02.2007)
2. Dr. Debasis Ray1, Dr. Sayantani Roy Choudhury2. Factors Affecting Consumer
Decision Making For Purchasing Selected Home Appliance Products Based On Market
Segmentation-A Feedback Study of People Associated With Management Education.
Quest Journals Journal of Research in Business and Management Volume 3 ~ Issue
2(2015) pp: 06-11
3. Mathur A. (2011). An Empirical Study of Quality of Paints: A Case Study of Impact of
Asian Paints on Customer Satisfaction in the City Of Jodhpur. IJMT, 19(2).84-98
4. Md. Touhidul Islam. Factors Affecting Customer Satisfaction on Berger Paints
Bangladesh Limited Global Journal of Management and Business Research: E
Marketing. Volume 15 Issue 9 Version 1.0 Year 2015
5. N.K Malhotra, S. Dash, Marketing Research, 6th edition.
6. Osmaan Goni. RAK Paints retail final report. (Retrieved On 11th December, 2011)
7. Report on Factors Affecting Consumers Decision Making while Purchasing a
Product East West University. . (Retrieved On 17th August, 2011)
8. Ubayachandra, E.G. and Mendis, A.S.M.G. Consumer Buying Behavior of Decorative
Paints industry in Sri lanka Department of Marketing Management, Faculty of
Commerce and Management, University of Kelaniya, Sri Lanka. .
9. Annual report of RAK Paints BD Ltd.
Online Pages
1. http://www.rakpaintsbd.com
2. http://www.rakpaintsbd.com/content/factory
3. Bangladeshbusinessdir.com/rak-paints-pvt-ltd-multinational-paint-companies-in-
bagladesh
4. http://www.rakbd.com/company_profile/history
5. www.business dictionary.com
6. www.paint market.com

60
Appendix
Questionnaire Survey
Dear respondents, I am Jannatun Nayima, student of Department of Marketing in Comilla
University; I am doing my internship in RAK Paints BD Ltd. I am conducting a survey on
Factors Affecting Consumers Buying Decision- A Study on RAK Paints BD Ltd. I
request you to spare few minutes of your valuable time to fill up this questionnaire. I assure you
that all the data provided in the questionnaire will be kept confidential and used for academic
purpose only. Your co-operation is highly appreciated.
1. Do you have any experience with product of RAK Paint Ltd.? (If your answer is no,
dont proceed, please return the questionnaire)
1) Yes 2) No
2. Gender: Male Female
3. Age: 20-25 26-30 31-35

More than 35
4. Occupation: Student Service Holder Businessman

Housewife Others
Please turn the page and continue.

61
Please answer the following questions by putting tick () mark on your agreement level.
SL Statement Strongly Agree Neutral Disagree Strongly
No Agree Disagree
(5) (4) (3) (2) (1)
5 The dealers deal with higher price.
6 RAK Paints provides us with better

product quality.
7 RAK Paints provides more consistent
product quality over time.
8 Customers are influenced by brand
name of RAK Paints.
9 RAK paints are more durable than
those of other paints of Bangladesh.
10 RAK Paints products are more
reliable.
11 RAK Paints performs better in meeting
delivery.
12 RAK Paints helps the customer
providing the idea of exotic color
combination to enhance the
appearance.
13 RAK Paints provides better customer
care service.
14 RAK Paints maintains better
relationship with customers.
15 RAK Paints color bank can provide
available color.
16 RAK Paints products are available in
its size.
17 RAK Paints introduces computerized
color shades.
18 RAK Paints knows better how to
improve existing products.
19 RAK Paints provide us new, improved
and innovative product.
20 It has no pungent smell and has a
strong friendliness with environment.
Thank you for your participation

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1

Department of Marketing, Comilla University

1.2 Background of the Report

Department of Marketing, Comilla University

1.3 Research Problem:

1.4 Origin of the Report

1.5 Significance of the Study

Department of Marketing, Comilla University

1.6 Objectives of the Study

1.7 Scope of the Study

Department of Marketing, Comilla University

1.8 Methodology of the Report

1.8.1 Study Approach

1.8.2 Research Design

1.8.3 Research Framework

Department of Marketing, Comilla University

Figure 1.1: Framework of Research Variable and their Relationships

1.8.4 Sources of Data

b) Secondary data are collected through

Department of Marketing, Comilla University

1.8.5 Questionnaire Design

1.8.6.2 Sample Size

1.8.7 Analysis Techniques

Department of Marketing, Comilla University

1.9 Limitations of the Study

Department of Marketing, Comilla University

Department of Marketing, Comilla University

2.1 History of RAK

Department of Marketing, Comilla University

2.4 Corporate Objective

Department of Marketing, Comilla University

2.5 Company Profile

Address: Fawzdari, Comilla, Bangladesh

Help line: 88-02-8923297, 8913551

Email info@ rakpaintsbd.com

Web Site: www.rakpaintsbd.com

Product: Paints product

Size of unit: Large scale industry

Form of Organization: Private

Year Of Inception: 2009

Head quarter: House # 5 (3rd Floor),

Contact person: Quazi Shafayet Hossain

Revenue: Rs. 7964 crore

Profit: Rs. 958.39 crore

Department of Marketing, Comilla University

2.6 Current Market Situation

2.7 Products Overview

Department of Marketing, Comilla University

RAK CLEAN WASH

RAK WATER SEALER

RAK WALL PUTTY

Department of Marketing, Comilla University

RAK HARMONY ACRYLIC

RAK ELEGANT SILK EMULSION

Department of Marketing, Comilla University

RAK WEATHER KING

RAK OCEAN LINER PAINTS

Department of Marketing, Comilla University

RAK PREMIUM SYNTHETIC ENAMEL

RAK GLAZE ENAMEL

RAK INDUSTRIES PAINT

Department of Marketing, Comilla University

2.8 Competitive Review