A

SUMMER TRANING PROJECT REPORT

ON
“BRAND AWARENESS OF KANSAI NEROLAC PAINTS
LTD.”

A report submitted for the partial fulfillment of the requirement for

Master of Business Administration (2009-2010)
SUBMITTED BY
KARTIK TOPPO
Student ID- 0806260026
Under The Guidance Of
Prof. Ashutosh Mishra
Faculty, RIMS

Rourkela Institute of Management Studies, Rourkela

 CERTIFICATE OF THE INSTITUTE GUIDE

This is to certify that the project report titled “Brand Awareness of Kansai Nerolac Paints
limited” is an original work of Mr. KUMAR ADITYA bearing University Registration Number
0806260026 a student of Rourkela Institute of Management Studies, Rourkela and is being
submitted in partial fulfillment of the requirement for the award of the degree of Master of
Business Administration of Biju Patnaik University of Technology, Rourkela. The summer
project report has not been submitted earlier to this University or to any other
University/Institution for the fulfillment of the requirement of a course of study.

Date: Prof. Ashutosh Mishra

(Faculty, RIMS)

ACKNOWLEDGEMENT

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 I take this opportunity to express my deep sense of gratitude to “Kansai Nerolac Paints
Limited’’ for taking me as Summer Trainee and extending me full support and co-operation
towards the completion of this project.

I would like to express my deep sense of gratitude to Mr. Satya Prakash (Regional Manager)
and Mr. Tushar Bhattacharjee (Area Sales Manager) of Kansai Nerolac Paints Ltd., who
have provided me an opportunity to undergo the summer traning in their esteemed organization
and let me learn the basics of how to work professionally in an organization.

I would also like to take the opportunity to thank to Mr. Prem Kumar (Territory Sales
Supervisor, Daltonganj) and Mr. Manish Kumar Sinha (Territory Sales Supervisor,
Ranchi) who have been a continuous source of inspiration to me and always ready to give me
their valuable suggestions for the accomplishment of this project and for lending me the
valuable guidance & wholehearted co-operation which enhanced my practical & theoretical
skills.
I would also like to thank all the employees here in Nerolac office at Jamshedpur for all their
support and cooperation. Last but not the least I am very grateful to my parents who gave all the
required support and helped me accomplish the project.

KARTIK TOPPO
MBA
Rourkela Institute of Management Studies

DECLARATION

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I KARTIK TOPPO, studying in Rourkela Institute of Management Studies, Rourkela
declare that this project titled “ Brand Awareness of Kansai Nerolac Paints Limited” in
context to Ranchi Circle has been compiled by me in partial fulfillment for award of Master’s
Degree in Business Management under Biju Patnaik University of Technology for year 2008-
2010.
I further declare that this project report has not been submitted to any university or institution for
award of any degree or diploma.

Place: - Rourkela KARTIK TOPPO

Date: - MBA (RIMS)

PREFACE

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 As a part of MBA programme in RIMS under the Biju Pattanaik University of
Technology (BPUT) and AICTE guidelines we have to undergo summer training for one and a
half month (6 weeks) in an Organization where we are to be exposed to the practical aspects of
business world. I did my summer project at Kansai Nerolac Paints Ltd. I had to study the way
of approach adopted and the Marketing and Promotional activities conducted by the company in
Ranchi City.
To get the realistic view about the subject I had under gone various jobs, which are done
by the company. I was given a complete access to all the work so as to get the practical
knowledge. Moreover, I was given a chance to share some new promotional ideas and concept,
which was newly applied by the company.

The primary and secondary data was collected from the various customers. And the
findings & suggestions were based on my own questionnaire. So I hope these were very helpful
for the company as Promotional activities plays a very vital role in Marketing.

EXECUTIVE SUMMARY

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 In the project the nature of research is exploratory research whereby the efforts have been
made by executing the research in Ranchi town. A systematic as well as well-designed approach
has been adopted while conducting research about market characteristics.
The problem is that the company seems to have less market share in comparison to its
competitors. So the project given to me was to find out the cause behind this and to find out the
probable techniques to be applied to overcome the problems. Moreover I had to study the
marketing and the promotional activities of the company in the various institutions and convey
the schemes and the benefits provided to them by the company.
First of all the objective of the study was defined clearly. It is followed by the research
methodology adopted which has been defined with the help of collected data. A detailed
interpretation of the Indian Paint Industry has been given. The company’s history along with its
profile is described. The product profile is defined covering the different types of products the
company is having. The major players of the industry and their profile are described. The next
step was defining the sampling design where by the sample size of 164 was taken for the
different institutions viz. Nursing Homes/Hospitals, Hotels, Schools and the target area was
Ranchi. To facilitate the research work questionnaire method was adopted for the collection of
the data as a primary research whereas the secondary data was collected from different books,
company library and the other trade / business websites.

Questionnaire contains both open ended questions and close ended questions, on the basis of the
feedback the analysis was done with the help of the clear graphical representation by using pie
charts, bar graphs and other graphs. The next step was the most important step for looking at the
actual findings of the project and recommend to the company what can be incorporated for
further improvement.

CONTENTS

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1. CHAPTER-1 :- INTRODUCTION AND REASEARCH
METHODOLOGY

2. CHAPTER-2 :- COMPANY PROFILE AND SWOT ANALYSIS

3. CHAPTER-3:- LITERATURE REVIEW

4. CHAPTER-4:- EMPERICAL ANALYSIS

5. CHAPTER-5:- FINDINGS, SUGGESTIONS AND CONCLUSION

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 CHAPTER-01
INTRODUCTION AND RESEARCH METHEDOLOGY

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 INTRODUCTION

Marketing deals with identifying and meeting human and social needs. One of the shortest definitions
of marketing is “Meeting needs profitably”. Marketing is an organizational function and a set of
processes for creating communicating and delivering value to customers and managing customer
relationships in ways that benefits the organizations and its stake holders.
Much of brands strength depends on developing a superior product and packaging, ensuring its
availability, and backing it with engaging communications and reliable service.
The Indian paint industry has come a long way from the days when paints were considered a luxury
item. Today the awareness level on preventing corrosion through paints is relatively high, a
development that should be a huge boost to the paint industry. The paint industry in India has
flourished into a full-fledged manufacturing and sale market catering to the international standards
being demanded for the painting jobs.
The Indian Paint Association is the apex body of the Indian Paint Industry, which represents both the
organized sector and the small scale sector in the paint industry. It is a voluntary non-political and
non-profit organization which promotes the interest of the paint industry and the society.
The IPA is a unique forum in which even the very small scale manufacturers are members besides all
the major paint producers in India. The representative character of the association is amply
demonstrated by the fact that more than 80% of the total paint production in the country is accounted
for by members of the IPA.

The types of paints available in the market and their utility are:

o Acoustic Paint: It is specially designed for acoustic tiles.

o Alkyd Resin Paint: Best suitable for trim, doors, faux finishes and other maximized use
areas.
o Dripless Paint: This paint is thicker and is most suitable for application on ceilings.
o Latex Paint: The applicability of this paint is easier than most other and it dries much
quickly. It is also easier to be washed.

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 o One-Coat Paint: It is the more expensive version of the latex and alkyd paints and is
mostly chosen for surfaces that require flawlessness in color.

o Primers: This paint is the initiation for all interior paint works.
o Rubber-Base Paint: This is best for concrete and bricks.
o Textured Paint: If need is to cover any flawed surface in your house get this paint. It
works well on ceilings.

Besides these home decorating and improvement paints and office paint we can also get industrial
paints, aircraft paint, airplane paint, aviation paint and many other paint products with the paint shops
in India. The paint companies in India house a wide range of paint products that cater to all your
needs. A whole spectrum of colors with our own textured options and application patterns are
available with the paint companies. Each company has its own specialized product and some also offer
home paint services. The cost of a painting job may vary with the paint chosen - acrylic, emulsion,
primer etc., the paint tools being used and the painting company hired.

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 RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY

• To study the way of approach adapted by Kansai Nerolac Paints Ltd. to various dealers.
• To determine the preference level of Nerolac Paints in comparison to the other
companies’ paints in the different institutions.
• To promote the company’s products in the institutions.
• To find out the customers buying behavior towards particular brand.
• Listing and implementation of different promotional ideas.
• Meeting concern people for the success of promotional ideas.

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 METHODOLOGY

Marketing research is the backbone of marketing. The main objective of my study was to get
information from the customers regarding their preference of the products of Kansai Nerolac
Paints Ltd. in comparison to other paint companies and to suggest some feasible measures to
improve the institutional sales of the company products.

Meaning of Research: Research in common refers to a search of knowledge. One can also
define research as a scientific research for pertinent knowledge or information on a specific
topic. This is a systematic and objective identification, collection of data, analysis, dissemination
and use of information for the purpose of assisting management in decision making related the
identification and solution of problem in the market.
According to Kedman and Mary, “Research is a systematic effort to gain
knowledge.”

A set of five steps, which includes type of research, approach of research, data
collection and analysis, interpretation of conclusion, limitation of study and on the basis of
these five steps I had presented my final presentation.

Type of Research: As far as this project is concern, it is a descriptive type of research work
because according to C.R. Kothari (the author of Research Methodology) descriptive research is
a method of obtaining qualitative data and other fact finding activities and require special effort
from researcher’s side.
I present this research as a “depth interview”. This is an unstructured, direct, personal
interview in which a single respondent is probed by a highly skilled interviewer to uncover
underlying motivation, beliefs, attitudes, and feeling on the topic.

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Approach of Research: According to ‘Kothari’ there are two approaches in research
methodology. First one is qualitative and second one is quantitative.
This project works on quantitative approach, which is reliable and beneficial in this type of
project. In quantitative data collection or research we seek to quantify the data and typically
apply some form of statistical research or analysis. Quantitative research applies to quantify the
data and generalized the result from the sample to the population of interest. In this research a
large number of samples of representative cases are taken, the method of data collection is
structured, data analysis is statistical and outcome is recommended a final course of action.

Research Data

Secondary Data Primary Data

Qualitative Data Quantitative Data

Descriptive Casual

In order to achieve the above objective exploratory research was carried and different steps were
followed.

1. Define the problem & research objectives

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Management must define the problem in broader way. It is said that by defining the problem it is
half solved. The objective is the same as stated above.

2. Develop the research plan

The second stage of marketing research calls for developing the most efficient plan for gathering
the information needed to achieve the objective of the project successfully. There are number of
steps involved in this:

a) Data sources

Primary data:

It has been collected by forming a proper questionnaire. Questionnaire is a systematic and

structured manner of collecting data for conducting experiment. The nature of the questionnaire
is very inductive and fundamental. It has been kept in a proper framework to make it clear to the
dealers .A sample questionnaire has been attached in the report.

Secondary data:

It has been collected from the websites of Nerolac Paints Ltd.and library of Jamshedpur Depot.
For secondary data I concern the books like – “Research Methodology“- by C.R.Kothari and
“Marketing Research” – 4TH editions by Naresh k. Malhotra for the basic information about the
project, product profile were also used for the secondary data.

Research instrument

Questionnaire: The questionnaire was developed in consultation with the project guide Mr.
Tushar Bhattacharjee (ASM of Jamshedpur) of Kansai Nerolac Paints Ltd... Ranchi, it comprises
of 09 open – ended questions.

Sampling design

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Sampling design is a conductive approach, which gives the research work a factual as well as
conclusive framework. It contains sample size, which is basically a true representation of the
target population

Sample size
69 for dealers and retailers

Commencement of Fieldwork:-

The fieldwork included the process of getting the questionnaires filled up and also getting all the
relevant information regarding the visibility of KANSAI NEROLAC PAINTS LTD. for future
business decisions.

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 LIMITATIONS

Every project has some limitation. This project is no longer exception. I had faced a number of
problems during the project work. Following are the limitations of the study:

1. Duration of study is limited for intensive study i.e. one and a half month’s time is not
sufficient to cover the various aspects in the study.

2. Mostly stress was given on primary data as it was difficult to collect secondary data from
organization and dealers.

3. During survey I found some people refused to answer the questions because they had no
interest in such sort of work. Some people got annoyed when I asked them their date of
birth and marriage anniversary.

4. During the visit to the Dealer it sometimes happens that the concerned person is not
available so the clear information does not come out.

5. The finding of the survey will be strictly based on the response of the consumers, retailers
and distributors since it is difficult to ascertain the authenticity of their statement.

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 MARKETING STRATEGY

Marketing is the management process that identifies, anticipates and satisfies customer
requirements profitably.’ – Philip Kotler

At Nerolac, the marketing function has been one of the pillars behind building a successful
organization. They believe their key strength lies in understanding the consumer and
communicating with him in a language they understand and relate to best. Nerolac commercials
have been well -loved over the years and its jingle - 'Jab ghar ki raunaq badhaani ho...' is now
a familiar tune in every Indian household.

Promotional activities play a greater and important role in the entire marketing effort being
carried out by Kansai Nerolac Paints Ltd., are “to generate more sales as well as the create and
maintain an image of its product”.

Thus Kansai Nerolac Paints Ltd. carried out its promotional activities as a controlled and
integrated program of communication and material design to present its products to the
prospective customer. It also helps in communication the need satisfying qualities of paints, to
facilitate the sales and eventually to contribute towards the profit in long range.

The tools used by Kansai Nerolac Paints Ltd. for fulfilling the various purposes of its
promotional activities are the following:-

 Point of sale display  Advertising

 Dealer’s sales contest

 Sales promotion through special event market.

 Sales promotion through salesman i.e. personal selling.

 Incentives.

 Painter’s Meet.

 Tokens.

 Discounting Strategy

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Over the years, Nerolac has undertaken several initiatives, which have met with unprecedented
success and really made people really sit up and take notice of the brand. Beginning with the
introduction of the new Brush stroke logo, which stands for the ‘process of painting’. It depicts
motion, dynamism and progress through change. The signal red color, which is the color of
Nerolac, is symbolic of eternal joy and hope. It has now become an integral part of our brand
identity and now appears as a sign-off on any kind of communication.

Another one of the marketing initiative was the unveiling of the new corporate campaign with
Mr. Amitabh Bachchan as their brand ambassador. In this campaign, Amitabh Bachchan
embodied Nerolac and showed how it touches the lives and dreams of people...no matter who
they are and where they come from. The essence of this thought was captured in the
newbaseline ‘Yeh Rang hain jo har kisi ko chhoota hain’.

Apart from the corporate campaign, they also released a new commercial for Nerolac Suraksha
with Mr.Bachchan. Focusing on the fast growing exterior category, this commercial playfully
demonstrates Suraksha's proposition of protection.

Another one of the initiatives launched, during the festival season of Diwali was “Har Din
Diwali “a promotional campaign aimed at the customer. The unique feature of this campaign
was the opportunity to win daily prizes through out the entire duration of 55 days of the
campaign. In addition to the daily prizes there was also a grand bumper prize to be won. For sure
this was one campaign that was a runaway success.

Complimenting their core business of paints last year also saw the launch of “Nerolac Assured
Paint Service”. Designed to bring the Nerolac experience right to the consumers' doorstep, it
met with an excellent response. Currently available in Mumbai, consumers can now relax while
the Nerolac team takes over the entire paint job right from sourcing to execution.

In their effort to becoming consumer friendly, this year they also undertook the exercise of
redesigning their shade cards. The new look shade cards are not only eye catching and consistent
in appearance but also try to make the process of shade selection for the consumer lot more
interesting and convenient.

Besides all these promotional activities the most important was the promotional campaign
“Rishta Rangon ke Sang”. This was first launched in the year 2006.This was a grand success in
that year. Following the success of the “Rishta Rangon ke Sang 2006” the company relaunched
this again in the year 2007.Again it proved to be a grand success. This program was to strengthen
the cherished relationship between the company and its customers. This year also Kansai Nerolac
Paints Ltd. has launched this program once again. Let’s see how well this program performs this
year.

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What is all about the program “Rishta Rangon ke Sang”?

It is an exciting new program that aims to reward the contractors, painters and the customers for
every litre of Nerolac paint they purchase from any Nerolac CCD outlet in some selected
towns.From gift vouchers to an exotic international trip to gold- there a number of gift options.
The rules are simple too-the more Nerolac paint one purchase the more he can gain as each litre
purchased takes him closer to his dream trip to Singapore.

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 CHAPTER-02
COMPANY PROFILE AND SWOT ANALYSIS
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 COMPANY PROFILE

HISTORY OF NEROLAC PAINTS:

Nerolac Paints embarked its journey in 1920 as Gahagan Paints and Varnish Co. Ltd. at Lower Parel in
Bombay. In 1930, three British companies merged to formulate Lead Industries Group Ltd. In 1933,
Lead Industries Group Ltd. acquired entire share capital of Gahagan Paints in 1933 and thus, Goodlass
Wall (India) Ltd. was born. Subsequently, by 1946, Goodlass Wall (India) Ltd. was known as
Goodlass Wall Pvt. Ltd. In 1957, Goodlass Wall Pvt. Ltd. grew popular as Goodlass Nerolac Paints

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(Pvt.) Ltd. Also, it went public in the same year and established itself as Goodlass Nerolac Paints
Ltd.

In 1976, Goodlass Nerolac Paints Ltd. became a part of the Tata Forbes Group on acquisition of a
part of the foreign shareholdings by Forbes Gokak.

In 1983, Goodlass Nerolac Paints Ltd. strengthened itself by entering in technical collaboration
agreements with Kansai Paint Co. Ltd., Japan and Nihon Tokushu Toryo Co. Ltd., Japan.

In 1986, Goodlass Nerolac Paints Ltd. turned into a joint venture of the Tata Forbes and the Kansai
Paint Co. Ltd., with the latter acquiring 36% of its share capital.

In 1999, Kansai Paint Company Ltd., Japan took over the entire stake of Tata Forbes group and thus
GNP became a wholly owned subsidiary of Kansai Paint Company Ltd.

In 2006, on the 11th of July, Goodlass Nerolac Paints Ltd. name has been changed to Kansai Nerolac
Paints Ltd.

During the journey of continuous performance excellence, Kansai Nerolac Paints Ltd. has entered in to
many technical collaborations with other industry leaders such as E.I. Du-products. Its incessant
journey of successes will go on backed by its present human asset of over 2000 professionals and a
sales turnover of Rs. 1484 crores Kansai Paint Company Limited, which is the largest paint
manufacturing company in Japan and among the top ten coating companies of the world. Kansai
Nerolac Paints Ltd. is the second largest coating company in India with a market share of over 20%.
It is the market leader in industrial / automotive segment supplying over 90% of the OEM
requirements and the leader in powder coatings.

CODE OF CONDUCT FOR THE BOARD OF DIRECTORS AND SENIOR MANAGEMENT

OF KANSAI NEROLAC PAINTS LTD.

INTRODUCTION:

The Board of Directors of Kansai Nerolac Paints Limited has adopted the following Code of
Conduct for the Board of Directors and senior management of the Company. For the purpose of
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this Code, the term “senior management” shall mean personnel of the Company who are
members of its core management team excluding Board of Directors. This would comprise all
members of management one level below the executive directors, including all functional heads.

The Code has been adopted, effective the 31st day of December, 2005.

This code should be read in conjunction with the “Code of Conduct for managerial and executive
staff”, the “Code of conduct for prevention of insider trading and code of corporate disclosure
practices” and the “Policy on appropriate social conduct at workplace” and such other
policies/codes that the Company may from time to time formulate in pursuit of its commitment
to the core values of integrity and honesty.

The Company shall always strive to maintain the highest standards of conduct in all its
endeavors. The Company’s Directors and senior managers have a responsibility to lead by
example, acting with truth, sincerity and fairness in all decisions.

The Code is intended to serve as a source of guiding principles for directors and senior
managers. This Code cannot be expected to address every expectation or condition regarding
proper and ethical business conduct. Each Director and senior manager is expected to comply
with the letter and spirit of this Code using good common sense and professional ethics as the
best guide.

CONFLICT OF INTEREST:

Directors and senior managers must avoid any conflict of interest with the Company. A "conflict
of interest" occurs when the private interest of a Director/senior manager interferes in any way,
or appears to interfere, with the interests of the Company as a whole. While this Code does not
attempt to describe all possible conflicts of interest that could develop, nevertheless, some of the
more common conflicts that Directors and senior managers must resolve or avoid, however, are
set out below:

• A conflict situation can arise when a Director/senior manager or a member of his family
take(s) action or has/have interests that may make it difficult for the Director/senior manager
to make decisions on behalf of the Company objectively and effectively.
• A conflict of interest can also arise when a Director/senior manager or a member of his
family receive(s) improper personal benefits as a result of the position of the Director/senior
manager in the Company.
• It is a conflict of interest to serve as a Director of any company that competes with the
Company.
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Family can be considered to consist of the Director, his spouse, dependent children and
dependent parents.

If a Director/senior manager believes that he has an actual or potential conflict of interest with
the Company, the Director/senior manager shall notify the Company / Board of Directors as
promptly as practicable and shall in any event not participate in any decision by the Board of
Directors that in any way relates to the matter that gives rise to the conflict of interest.

Directors, senior managers and their families shall abstain from offering or accepting gifts from
persons or firms who deal with the Company where such gift is being made in order to influence
the actions of the director/senior manager, or where acceptance of the gift could create the
appearance of a conflict of interest.

CORPORATE OPPORTUNITIES:

Directors and the senior managers owe a duty to the Company to advance its legitimate interests.
Directors and senior managers are prohibited from taking for themselves opportunities or
personal gain through unauthorized use of corporate property, information and position or
competing with the Company for business opportunities.

CONFIDENTIALITY:

Directors and senior managers must, during their term of office and after leaving the Board/
services of the Company, maintain the confidentiality of information entrusted to them by the
Company and any other confidential information about the Company that comes to them from
whatever source, in their capacity as Directors/ senior managers, except to those people who
have an appropriate reason to have access to the information. For purposes of this Code,
"confidential information" includes all non-public information that might be of use to
competitors, or harmful to the Company or its customers, if disclosed.

COMPLIANCE WITH LAWS, RULES AND REGULATIONS:

Directors and senior managers shall comply with laws, rules and regulations applicable to them
as Directors and senior managers of the Company, including laws on prevention of insider
trading.

PROTECTION AND PROPER USE OF COMPANY’S ASSETS:

Directors shall protect the Company’s assets and ensure their efficient use for legitimate business
purposes.

FAIR DEALING AND ETHICAL BUSINESS CONDUCT:

Directors and senior managers must observe the highest ethical standards and act with integrity
and honesty to promote an environment that encourages the employees of the Company to
sustain and enhance the reputation of the Company and treat each other as well as customers,
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suppliers, and competitors with fairness and respect. Directors and senior managers shall not take
unfair advantage of anyone through manipulation, concealment, abuse of privileged information,
misrepresentation of material facts, or any other unfair dealing practice. Conduct that raises
questions about the integrity, character or impartiality of the organization, which can damage the
reputation of the Company, or creates an appearance of illegal, unethical or improper conduct, is
prohibited.

ENCOURAGING THE REPORTING OF ANY ILLEGAL OR UNETHICAL BEHAVIOUR:

Directors and senior managers of the Company shall endeavor to promote ethical behavior and to
provide an opportunity to employees to report violations of laws, rules, regulations or codes of
conduct and policy directives adopted by the Company to the appropriate personnel without fear
of retaliation of any kind for reports made by the employee in good faith.

HANDLING NEWS ABOUT THE COMPANY:

Confidential information about the Company, including information that can be expected to have
an impact on the market for the Company’s shares may be released only in accordance with the
Company guidelines and the relevant regulations of the Stock Exchanges and the Securities
Exchange Board of India.

COMPLIANCE PROCEDURES:

Senior managers and Executive Director(s) shall communicate any suspected violations of this
Code, including any violation of law or governmental rule or regulation, promptly to the
Managing Director. Directors, other than the Executive Director(s) shall communicate any
suspected violations of this Code, including any violation of law or governmental rule or
regulation, promptly to the Board of Directors. Alleged violations shall be investigated by the
Board or by a person or persons designated by the Board and appropriate action shall be taken in
the event of any violations of the Code.

ANNUAL CERTIFICATION:

All Board members and senior management personnel have to confirm compliance with the
Code on an annual basis. The Annual report of the Company shall contain a declaration to this
effect signed by the Managing Director who is the Chief Executive Officer.

HR ANGLE:
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VISION VALUES AND CULTURE:

In today’s dynamic business environment, no organization can afford to survive without a well-
articulated and carefully thought vision stating the overall strategic direction and long-term
future of its business.

Kansai Nerolac Paints have been at the forefront of paint manufacturing over eight decades
pioneering a wide spectrum of quality products that change the face of economy and lifestyles of
people at large.

Nerolac’s vision is to leverage global technology, for serving their customers with superior
coating systems built on innovative and superior products and world class solutions, to
strengthen their leadership in Industrial coatings and propel for leadership in
Architectural coatings, all to the delight of their stakeholders.

They firmly believe that it is not only the vision of where they wish to go which will form a
cornerstone of all their further growth, but also their conviction to the fact that the values based
proposition has to be ultimate foundation of their business.

To this end they consciously have internalized and been practicing these values in all their
business transactions though human beings:

Innovation
Entrepreneurial
Responsive
Simplicity
Team Orientation

CULTURAL ETHOS:

Vision driven organization

Employees feel pride in being part of the organization
Recognition of human resources as extremely important and critical assets
High level of human dignity
Transparency and openness among employees at all hierarchical levels
Performance-linked reward system
Management and employee commitment to organization values is high
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Autonomy in work is high
High commitment to quality products

THE HR PHILOSOPHY:

Nerolac recognizes its human resources as extremely important and critical assets. They honor
the dignity of each individual, irrespective of position and highly value the feelings.

Their Human Resource Policy is, to facilitate creation of synergy, mutuality and interdependence
between individual and corporate development and growth through total employee involvement
and building an enabling work culture in the organization.

Informality in interactions, transparency and openness in communications at all levels, and an

enabling work environment supporting high autonomy of work, transparency and an objective
subjectivity of Performance Management System, fair dealing, tremendous care and concern for
people are a few of the softer aspects of permeable people management environment which
represent the organizational climate and culture. Their faith is averred by the fact that people feel
pride in being part of the Nerolac family. They care for people; people care for our business.

THE QUALITY POLICY

It is the philosophy of Kansai Nerolac Paints Ltd., and its associates to achieve complete
customer satisfaction by providing products and services that consistently meet or exceed the
customer needs and expectations, pursuant to agreed specifications, delivery schedules and
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competitive prices. It is the philosophy of the company to systematically operate its
manufacturing facilities by inculcating commitment to total quality management at all levels and
on a continuous basis with a view to achieving “First Time Right” results in manufacture,
services and other operations.

It is the company’s aim to constantly reduce waste of material and

effort, increase efficiencies and ensure safety of plant and people and
protection the environment.

OPEN DOOR POLICY:

Working together requires that we have a friendly atmosphere based on trust and respect
amongst all of us.

At Nerolac we follow an Open Door policy. Any person is free and welcomed to share good
idea, suggestion, doubt, problem about job or work place, or uncertainties about one’s future in
the organization. An open and transparent communication is appreciated.

SOCIAL REAPONSIBILITY:

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

IT PILLAR:

Nerolac has always sought to harness the benefits of Information technology. It has envisioned
using Information technology in all areas of business to build up unique competencies and
efficiencies thus delivering maximum value to Nerolac's stakeholders.

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Starting in February 2000, it has transformed its functional based legacy systems into a process
based organization wide systems culture by investing and implementing the SAP R/3 solution. It
has also sought to leverage its vast repository of data and work towards building a knowledge
based organization. In line with this vision it has invested in a world class data warehousing
solution and in Knowledge sharing portal. The power of IT has been further leveraged to
enhance the operational capabilities with the help of Supply Chain solutions from SAP.

As part of these implementations Nerolac today has a state of the art data center and
communication infrastructure based on VSAT’s / Leased lines/ ISDN/ VPN connecting all its
sales offices and factories around the country allowing online transaction processing and
response backed by a state of the art Storage (SAN) device. Nerolac plans to now open its
organization to its suppliers and customers so as to reap the benefits of modern communication
technology and E-commerce. A part of this process it is now pursuing means for establishing
secure connectivity to the extended enterprises.

Nerolac will continue to invest in applications that make it more open and transparent to all its
stakeholders.

ORGANIZATIONAL SRENGTHS:

An organization is not set on pillars of brick and concrete but is set on strong inherent
characteristics that make it strong for years!

Nerolac is carrying on strong since 1920. Following are its strengths that have kept this company
in good faith.

STRONG VISION AND VALUES:

Nerolac is a company with very clear and well-defined vision and very strong values. Clarity of
vision and strong foundation of cultural values have always kept this company

in good stead. Its ethical conduct has always guarded it against any possible traps and pit falls.

We have made sure that the distribution hurdles and the climatic vagrancies do not affect the
quality of our services. This same commitment will ensure that Kansai Nerolac will march

towards its centennial year, fully dedicated and invigorated, in step with the exciting wave of
industrialization and modernization pervading through the new India.

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INNOVATION IN RESEARCH & DEVELOPMENT “COMPETES THROUGH
INNOVATON”:

The keystone of Kansai Nerolac's success has been its investment in technology and the
importance given to Research and Development. The company has, over the years, set up
excellent facilities for developmental research, improving its manufacturing processes and
continuously innovating on its products.

Kansai Nerolac's R&D laboratory has the distinction of being one of the first to be officially
recognized by the Department of Science and Technology (DTI), Government of India. At
Nerolac, quality control starts from the first stage of raw materials, through intermediates, right
up to the finished products.

WIDE EXPERIENCE

The rich cumulative experience of the organization gathered over 80 years of experience
provides a strong backbone to all kinds of decisions taken in this company. 80 years of learning
in trade and market has given enough expertise to innovate and develop products and services
according to the changing needs and desires of customers. Nerolac paint technology cuts across
all barriers; without discriminating between uses or users. The past decades have seen a meteoric
rise in the fortunes of Kansai Nerolac. Today, we are the second largest paint company and a
recognized leader in our chosen fields. The company was adjudged the fastest growing paint
company in the organized sector, not once but thrice-in consecutive years.

PEOPLE:

Nerolac is a company, which considers its people as one of its strengths. Nerolac has always
valued its employees. Recruitment thus becomes very important activity at Nerolac. Employees
that add value to the organization are suitably awarded & rewarded to keep the fire live & going.

STRATEGIC ALLIANCES:

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The coatings industry globally, like several other industries, is in the process of consolidation.
The process of consolidation is intended to help companies meet increasingly challenging
customer requirements by constantly updating technology, striving for greater efficiency in
operations and ensuring worldwide servicing capabilities.

World over, units are moving with associates/affiliates/parent bodies with core competence as
their prime objective. The acquisition by Kansai of the shareholding of Forbes Gokak Ltd. and
their associates in your Company is in furtherance thereof. Our technical collaborators and
associates are strategically placed to make most of the market opportunities and create more
value to the company.

MANUFACTURING STRENGTH:

Manufacturing is a very important function for the paint industry. Nerolac has made sure that its
manufacturing facilities are world class. Nerolac has four manufacturing units located at
Perungudi (T.N.), Jainpur (U.P.), Lote Parshuram (Maharashtra) & Bawal (Haryana). The fifth
factory is planned at Hosur in T.N. The total installed capacity of all the existing units put
together is 173900 MT/Annum. Its latest unit is at Bawal, which was commissioned in March
2005, with a capacity of 20400 TPA with an investment of around Rs.100 crore- all through
internal accruals.

ISO CERTIFICATE:

Kansai Nerolac Paints Ltd. has embarked on a TQM (Total Quality Management) mission.
As a first step towards this objective and assuring our valued customers with respect to our
commitment to Quality, our manufacturing facilities are ISO 9000 / certified. Not only that our
major mfg. units are ISO 14000 (Environmental std.) certified.

ENVIRONMENTAL POLICY
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Kansai Nerolac Paints Limited manufacture paints for beautification of assets. They are
committed themselves towards environmental protection and conservation of natural resources.
They shall evaluate the environmental impacts of their activities during the development of
manufacturing processes and endeavor to minimize the impact on the environment due to their
activities. Their objective is to utilize our natural resources in an efficient manner. They shall
encourage continual and targeted improvements to:

- Prevent waste generation at source

- Reduce, recover and recycle wastes

- Reduce and prevent pollution of air, water and land

They shall objectively accept suggestions towards improvement in their environmental

performance from customers, employees and suppliers. As a responsible care company they are
committed to comply customer requirements and shall provide necessary resources for
accomplishment of objectives and targets.

They shall strive to minimise impact on environment by effectively employing emergency

handling procedures. They shall install and operate facilities to comply with relevant
environmental legislation and requirements.

They shall make employees aware of importance of environmental protection and conservation
of natural resources. They are committed towards continual improvement in all their activities to
achieve environmental excellence.

They shall communicate this Policy to all employees and make it available to public on demand.

ASSOCIATE COMPANIES

NIPA CHEMICALS LTD.

This Company specializes in the manufacture of Pre-Treated Chemicals. Nipa Chemicals Ltd. is
a joint venture of Nihon Parkerizing Co. Ltd., Tokyo, Japan, and Kansai Nerolac. Nerolac
provides technical and the marketing support for Nipa Chemicals

GEOGRAPHICAL PRESENCE

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Kansai Nerolac has been operating and rendering its services in 22 states of India.

NAME OF THE STATE CITIES

Andhra Pradesh Hyderabad,Vijaywada,Vishakapatnam
Assam Guwahati
Bihar Patna
Chattisgarh Raipur
Goa Panaji
Gujarat Ahmedabad,Aslali,Rajkot,Surat.Vadodara
Haryana Ambala,Faridabad
Himachal Pradesh Solan
Jammu& Kashmir Jammu
Jharkhand Jamshedpur
Karnataka Bangalore,Hubli,Gulbarga,Mangalore
Kerala Cochin,Calicut.Thiruvala,Trivandrum
Madhya Pradesh Indore,Jabalpur.Bhopal,Gwalior
Maharashtra Mumbai.Bhiwandi,Pune,Kolhapur, Nagpur
New Delhi New Delhi
Orissa Cuttack
Punjab Jalandhar,Bhatinda,Patiala,Chandigarh,Ludhiana
Rajasthan Jaipur,Jodhpur,Udaipur
Tamil Nadu Chennai,Coimbatore, Madurai,Trichi
Uttar Pradesh Gaziabad, Agra,Kanpur,Bareilly,Lucknow,Varanasi
Uttaranchal Dehradun
West Bengal Kolkata,Siliguri

PRODUCT PROFILE
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EMULSIONS: Emulsions are plastic paints which are used for the decorative purpose in the
exterior and interior walls. There are two types of emulsions namely:

• EXTERIOR EMULSION: These are mainly used in the exterior walls. Exterior
emulsions are some time can be used in interior walls also. There are two categories of
exterior emulsions:

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 a) Premium quality exterior emulsions
b) Regular exterior emulsions
c) Low quality exterior emulsions
Example: Excel everlast, Excel total, Excel, Suraksha Advanced, Suraksha
Plastic.etc.

Home > Products > Walls > Exterior > Emulsions

Emulsions

Impression Excel Anti Peel Impression Excel Total

Suraksha Advanced Nerolac Suraksha

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• INTERIOR EMULSION: These are mainly used in the interior walls. They are washable.
Interior emulsions cannot be used in exterior surfaces. There are four types of interior
emulsions :

a) Premium quality interior emulsion

b) Washable interior emulsion
c) Regular interior emulsion
d) Low interior emulsion
Example: Impressions 24 carat premium luxury emulsion, Nerolac Beauty
Flexicoat, Nerolac Acrylic Emulsion, Nerolac Premium Emulsion, Nerolac Beauty
emulsion etc.

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Home > Products > Walls > Interior > Emulsions

Emulsions

Nerolac Impressions 24 carat Nerolac Impressions Metallic Nerolac Impressions Disney

Nerolac Beauty Premium Acrylic Nerolac Beauty Silky Smooth Nerolac Beauty Smooth finish
emulsion

Nerolac Beauty Flexi Coat

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 DISTEMPER: These are the paints which are considered to be cheaper as compared to the
emulsions to make the walls beautiful. These are the modified form of limestone which are now
available in different colours and different forms. These can make ones room, or any dwelling
place beautiful, colorful, and entertaining. There are three kinds of distemper:
a) Matt finish
b) Washable
c) Water Based
Example: Nerolac Beauty Premium Acrylic Distemper(NBPAD), Nerolac Beauty
Acrylic Distemper(NBAD), Nerolac Oil bound Distemper(NBOBD), Nerolac Beauty
Platinum, Nerolac Beauty Gold, Nerolac Beauty Silver, Nerolac Beauty Regular and
Goody Synthetic Distemper.

Home > Products > Walls > Interior > Distemper

Distemper

Beauty Premium Acrylic Distemper Beauty Acrylic Distemper Beauty Oil Bound Distemper

ENAMELS: Enamels are oil based paints which are used to paint the surfaces of the wood and
metals. These give the surfaces of the wood and the metals a surprising colour and finish. Iron
grills and wooden items like the doors, windows etc look very beautiful after being painted by
the enamels. There are three categories of enamels:
a) Hi-Gloss enamel
b) Satin enamel
c) Smooth finish enamel
Example: Nerolac Synthetic Enamel, Nerolac Impressions Hi-Performance Enamel,
Nerolac Satin Enamel and Goody Synthetic Enamel.

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 SWOT ANALYSIS

STRENGTHS:-

 Nerolac has an excellent brand name, awareness & high quality image.
 Nerolac has got goodwill in the market with regard to the brand name.

 It has a very strong distribution network and well-built market and currently holds almost
all the parts of the state.

 Nerolac R & D has brought Consumers

a) A continuing stream of new technology and

b) Impeccable quality products

by putting every product through a series of strict quality controls and tests at each stage
from raw material to final production.

 Sophisticated testing and analytical instruments, colour Computers and accelerated

weathering equipment are used for developing and standardizing products to maintain
optimum quality.

 Each member of Nerolac family is imbued with the conviction that, while growth and
profitability are key indices of Corporate performance, technological advancement and
the pursuit of excellence are the motive forces.

 Building upon its foundation of experience and expertise, Nerolac constantly upgrades
the knowledge and skills of its people, to stay abreast of the latest technological
development and management practices.

 Nerolac Paints provide quality products and better services for the consumers compare to
other company’s products.

 The products of Nerolac Paints are much more durable than the products of other
companies for example the interior emulsion namely Impressions 24 carat is providing

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 more satisfaction to the customers than any other product. Moreover the exterior
emulsion namely Excel total is doing very well in the market.

 Market share of Nerolac is consistently increasing.

WEAKNESSES: -

 Promotional activities in the institutions like nursing homes/hospitals, hotels and schools
are not up to the mark. The approach in these areas is weak.

 The advertisement portion of Nerolac Paints is not so much as it is expected in the Paint
industry to stay in the competitive market.

 More emphasis is given to the large institutions and the small institutions are neglected.

 Inability to provide the samples which the large hotels and nursing homes asked for.

 The dealers are not willing to support the company as the revenue from the institutions
comes after the work has been completed.

 Offering of less institutional discount as compared to other companies.

 The paint industry is not capital intensive.

 It has a high entry barrier in the form of distribution network and product branding.

 Fresh capacity is likely to come from existing players only.

 There is lacking of a depot at Ranchi.

OPPORTUNITIES:-

 India has one of the lowest per capita consumption of paints in the world. There is
therefore a great growth potential.
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  In the recent past, the growth in the paint industry has tended to be higher than the growth
rate of the overall economy.

 The Company enjoys a wide geographical spread in terms of manufacturing facilities as

well as dealer network and is well poised to fulfill growth potential.

 The industry is likely to remain intensely competitive with corresponding pressures on

margin of profit.

 The demand pattern of paints is dependent on economic growth of the country and
Government spending on infrastructure development.

 With signs of economic recovery and the Government's policy to spend more on
infrastructure development, the future of the paint industry looks bright.

 The Government thrust on encouraging housing activity, the centers of housing activity is
likely to shift more towards rural areas.

 The industrial segment will grow due to lower grace and fast growth in major user
industries like Consumer durables and automobiles.

THREATS:-

 Strong supply chain of competitors.

 Strong dealer network of competitors.

 Paint is highly raw material intensive, both indigenous and imported raw materials, which
are subject to frequent price fluctuations.

 Prices of a number of raw materials, for example, Titanium Dioxide and petroleum
products, principal ingredients in paints, are determined by world demand and supply for
the materials.

 Emergence of many local players in the industry.

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 CHAPTER-03
LITERATURE REVIEW

Brand Awareness

DEFINITION:

Extent to which a brand is recognized by potential customers, and is correctly associated with a
particular product. Expressed usually as a percentage of target market, brand awareness is the
primary goal of advertising in the early months or years of a product's introduction.

having knowledge of the existence of a brand . Because brand awareness is considered the first step
in the sale, the primary goal of some advertising campaigns is simply to make the target market
aware that a particular brand exists. Often, this effort alone will sell the product
A company may be armed with all the statistics and facts as to why their product or service is
superior - but if it doesn’t have an image, a personality for the audience to connect with - their
message falls flat. What you are selling is always more than the product/service. It's a personality,
a face with which your target customers want to do business. Thus, the success of branding lies in
truly understanding who you are and who your target audience is.

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 Brands create a perception in the mind of the customer that there is no other product or service on
the market that is quite like yours. A brand promises to deliver value upon which consumers and
prospective purchasers can rely to be consistent over long periods of time.

Measurement driven conceptualization

Brand awareness can be measured by showing a consumer the brand and asking whether or not
they knew of it beforehand. However, in common market research practice a variety of
recognition and recall measures of brand awareness are employed all of which test the brand
name's association to a product category cue, this came about because most market research in
the 20th Century was conducted by post or telephone, actually showing the brand to consumers
usually required more expensive face-to-face interviews (until web-based interviews became
possible). This has led many textbooks to conceptualise brand awareness simply as its measures,
that is, knowledge that the brand is a member of a particular product category, e.g. soft-drinks.
Examples of such measures include:

• Brand recognition - Either the brand name or both the brand name and category name are
presented to respondents.
• Brand recall - the product category name is given to respondents who are asked to recall
as many brands as possible that are members of the category.
• Top of mind brand awareness - as above, but only the first brand recalled is recorded
(also known as spontaneous brand rec

A company may be armed with all the statistics and facts as to why their product or service is
superior - but if it doesn’t have an image, a personality for the audience to connect with - their
message falls flat. What you are selling is always more than the product/service. It's a personality,
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 a face with which your target customers want to do business. Thus, the success of branding lies in
truly understanding who you are and who your target audience is.

Brands create a perception in the mind of the customer that there is no other product or service on
the market that is quite like yours. A brand promises to deliver value upon which consumers and
prospective purchasers can rely to be consistent over long periods of time.

Measuring Brand Awareness

From time to time I come across polls and surveys revealing the brands that have captured the
highest levels of awareness. The results usually generate several sensationalist articles with one
brand driving another to obscurity. This has prompted me to pause and consider the utility of
measures of brand awareness. Frankly, becoming a best-remembered brand is an inconsequential
achievement.

To purchase most products and services requires more than simple brand awareness. We also
need to have positive evaluations and emotions about the brand. Indeed, brands can increase their
levels of brand awareness by performing poorly. This may explain why brands with enormous
strategic problems and flagging sales, register strong in brand awareness.

Brand awareness is important for low-involvement purchases, because consumers will often
decide from a list of recalled brands brought directly from memory. It is no surprise, therefore,
that when brands are measured by awareness most of the top ten brands in the survey are in low-
involvement categories, such as breakfast cereal and detergent. Brands in these categories are
purchased and used frequently.

When prompted to name random brands, most consumers will retrieve these kinds of brands
from memory. But brands from other categories where brand awareness is less crucial are
unlikely to feature in the top ten, even though consumers may have stronger relationships with
them.

Brands that exist in higher-involvement categories, such as cars, are less likely to be recalled in
this way. Brand awareness polls also contradict the target market philosophy most brands adhere
to. Luxury brands such as Prada pride themselves on being known by an exclusive minority.

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Many marketers make the mistake of only measuring brand awareness under the impression that
this provides an accurate indication of brand health.

In fact it is the nature, strength and importance of the brand associations in the minds of
consumers that provides marketers with the true empirical vision of their brand equity. Any
undergraduate with a calculator and a free afternoon can happily produce a valid league table of
brand awareness scores. But no agency has yet produced an effective tool for measuring their
clients' brand associations. Now that would be worth a few column inches

CHAPTER-04
EMPERICAL ANALYSIS

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 MARKET SURVEY

Market survey is one of the most widely used marketing research techniques. Its purpose is
collecting specific data concerning the market that cannot be from the company’s internal record
or from external published source of data market survey may be of various types like – census
survey etc.

This survey was all about collecting data from the different dealers present in outer
Ranchi region about the preference of paints by the customer. Here I had to collect data
regarding the number of dealers selling Paints, nature of the dealers, satisfaction level of the

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consumers complain (if any), promotional scheme are known or not, availability of products at
dealers etc. In my survey I did a rigorous study of paint industry acting in this city. I visited
70(approx.) dealers and tried to find out their perception about different paints in Ranchi, What
are the key reasons for the success of particular brand in the city?, Why a customer opt a
particular brand? Also I tried to find out how to increase the sale of KNPL?

Moreover in the second stage of my training I was assigned the task to make a list of ideas which
could be suitable for the promotion of KNPL at local level.

List of the ideas are:

• Rickshaw Rally in different regions

• Drawing Competitions at Schools

• Blood Group test at different locations

• Pamphlet Distribution in different news papers

• Pollution free Ranchi rally

• Nerolac pedh lagao abhiyan .

• Organizing football championship at local level.

• Vinyl Flex on Auto

• Mohalla event(Har Ghar main Rang Nerolac ke Sang)

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Planning of Promotional activities

Rickshaw Rally in different regions

Route Decided for rally:

Route1:

Firayalal Church Sujata

Chowk Complex Chowk

Route2:

Kacheri Kantatoli
Lalpur
Chowk Chowk
Chowk

Route3:

Ratu Road
Chowk Piska More

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 Route4:

Argora
Chowk Kadru
Chowk

Route5:

Birsa
Chowk Doranda
Chowk

Blood Group test at different locations

• Firayalal chowk

• Church complex

• Kantatoli chowk

• Duranda cowk

• Argora chowk

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 • Birsa chowk

Mohalla event(Har Ghar main Rang Nerolac ke Sang)

Location:

• Harmu Housing Colony

• Bariyatu Housing Colony

• P.P Compound

• A.G Colony

• Ashok Nagar

After listing the ideas, I acted for the implementation of those ideas. To accomplish this task I
visited different Rickshaw depot, Pathologists, School Principles, news paper hawkers in Ranchi.
I then made a list of all the expenses going to incur for these promotional activities and events.

The main objective of the survey was to find out the present status of the Kansai
Nerolac’s products in the Ranchi Market. One more thing I need to collect was the information
about what kind of problems customers are facing in procuring the products.

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This information was really helpful for me to have an idea about the market share of the
company at Ranchi.

COMPETITORS

Kansai Nerolac Paints Ltd. is the second largest paint company in India with a market share of
20% and sales turn over of Rs.1226 crores. It is the market leader in industrial / automotive
segment supplying over 90% of the OEM requirements. It is the leader in powder coatings.
Kansai Nerolac Paints Ltd. [KNPL] with its two wholly owned subsidiaries Saurashtra Paints
Ltd., Ahmedabad and GNP Madras Ltd., ranks second in the industry. It is recognised as the
leader in the industrial paints segment with a market share of 41 per cent. The company has a tie
up with Kansai Paint Company of Japan, a world leader in paints, which holds 65 per cent stake
in GNPL. Having derived maximum income in industrial paints from Maruti Udyog Ltd. (MUL)
until recently, the company has now widened its client base to include many other automobile
manufacturers like Mitsubishi Lancer, Hyundai Motors and Telco. Significantly, the company
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continued to fare well despite the slowdown in the automobile segment and with the industrial
paints segment likely to witness good growth in the medium term, KNPL appears to be in a fairly
advantageous position and should be able to reap rich benefits in the future.

Talking of the competitors, there are three major competitors of Kansai Nerolac Paints Ltd.
1. Asian Paints Ltd.
2. Berger Paints (India) Ltd.
3. ICI Paints Ltd.
Besides all the above three companies there are few more companies which have been operating
in the market viz. Shalimar Paints, Rajdoot Paints, Jenson & Nicholson etc.

ASIAN PAINTS LTD.

Asian Paints is the India’s largest and the Asia’s third largest paint company today with a turn
over of 44.04 billion. Asian Paints operate in 20 countries and 28 paint manufacturing facilities
in the world servicing consumers in over 65 countries. Besides Asian paints the group operates
around the world through its subsidiaries, Berger International Ltd. Apco coatings, SCIB Paints
and Taubmans. Asian Paints India Ltd. (APIL) has the distinction of being the market leader in
the paints industry and commands a market share of 37 per cent. It commands 38% in the
decorative paints segment and 15% share in the industrial paints segment. The company's
dominance is on account of its presence in almost all types of paints segments such as primers,
wood finishes and metal paints besides wall paints while other players cater to niche markets,
APIL sources its raw material requirements of pthalic anhydride and pentaerythritol from its own
in-house plants, which provides it an edge over its competitors by reducing its raw material
costs. The company has a strong presence abroad with joint ventures in Fiji,

Tongo, Solomon Islands, Nepal, Mauritius and Australia. What keeps it ahead of its
contemporaries is product innovation; for instance it was the first in the industry to tap the
exterior paints segment. The major products of Asian Paints are Altima, Apex, Royale, Apcolite,
Ace etc.

BERGER PAINTS (INDIA) LTD.

Berger Paints is the country’s third largest paint manufacturer and the second largest decorative
paint player. Berger is headquartered in Calcutta and services the market through a distribution
network comprising of 75 stock points and 12,000+ paint retailers.

Being an ISO 9001 company its quality products have attained instant recognition, worldwide,
and continues to meet quality requirements that are demanded today even in the domestic
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market. A leading player in the industry, Berger Paints boasts of a market share of 15 per cent. It
is predominantly engaged in the decorative paints segment, which is responsible for two-thirds of
its sales, remaining earnings come from the industrial paints segment. Berger has two plants
located at Howrah and Pondicherry for producing synthetic resins and paints respectively;
besides these it also owns wholly owned subsidiary Beepee coatings, a manufacturing unit in
Gujarat. The company enjoys the benefits of technical tie-ups with Valspar Coatings, USA and
Herbert’s, Germany for heavy-duty coatings and automotive coatings respectively. Berger
Paints is a company with fairly sound fundamentals and a steady financial track record.

ICI PAINTS LTD.

ICI India Ltd. (ICIIL) is a part of the Imperial Chemicals Industries (ICI), UK which is a world
leader in paints. The company has diversified interests and is not purely a paints company.

ICI Paints is the country’s fourth largest paint company. ICI Paints, headquartered in UK and
manufacturing in 24 countries, has some of the world’s top paints and decorative product brands.
ICI India manufactures and markets paints, specialty chemicals, adhesives and starch. With
employee strength of about 900, ICI India’s manufacturing sites, business and sales offices and
distribution network span the length and breadth of the country. In the decoratives business, ICI's
exterior paints portfolio exhibited a strong performance. Commendable growth was registered by
our exterior emulsion brands – Weather shield and Super cote. Our retail tinting package 'Colour
Solutions' is emerging as the preferred choice for top quality paint retailers in the country, backed
by strong retail brands like Dulux Velvet Touch, Acrylic Emulsion and Gloss. The company,
which was a leader in the premium emulsion paint market, has now lost out to Asian Paints in the
same category.

DISTRIBUTION NETWORK:

Nerolac’s strength of wide spread distribution network is its right arm in generating sales
revenue from all parts of India. Nerolac has a wide distribution network of over 11,000 dealers.
They have eight Sales Divisions and each division has depots to take care of local needs. In all
we have 66 depots. All this ensures complete reach in India including rural and up country
markets.
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 CHAPTER-05
FINDINGS, SUGGESTIONS AND CONCLUSION

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 OBSERVATION AND FINDINGS

With the help of the market survey I analyzed the whole paint industry and derived some data as
follows:

The table shows the market share of each of the company in the organized paint market.

Name of the Company Market Share (%)

Berger 17
Asian 33

J&N 6
ICI 17

Shalimar 4

KNPL 15
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Others 8

The Pie graph shows the market share of Paint companies in the organized market segment.
Market Share(%)

Shalimar
Others
4%
8% Asian Paints
Asian Paints
J&N KNPL
33%
6%
Berger
ICI
ICI
J& N
17%
Shalimar
Berger KNPL
Others
17% 15%

Market share of different paint companies in the outer Ranchi.

The table shows the share of different companies:

Name of the Company Market Share (in %)

Asian 49

Berger 28

ICI 2

KNPL 4

Others 2

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The above pie chart shows that the Asian Paints has dominated over the other brands in the
institutional sale. After that comes the Berger Paints then the ICI paints then comes the Nerolac
Paints. It shows that the Kansai Nerolac Paints Limited have to work hard to achieve a good
share of the market. The other companies like the J & N and Shalimar occupies a percentage of
nearly 5% of the whole market

The market is further divided into decorative paints and industrial paints.
 Decorative paints:
• Caters to housing sector.
• Premium decorative paints are acrylic emulsions used in the metros. The medium
range consists of enamels popular in small cities and towns. Distempers are
economy products demanded in the semi urban and rural areas.
• Distribution network is the key.
• Nearly 20% of the decorative paints sold in India are distempers.
 Industrial Paints:
• Includes powder coatings, high performance coatings and automotive and
marine paints.
• \Two thirds of the industrial paints produced in the country are automotive
paints.

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Market Segment Market Share (%)

Decorative 70

Industrial 30

The pie chart given below shows the percentage of market share for the two section of the
market.

Market Share (%)

30%

Decorative
Industrial

70%

Following is the table for the dealer sells different paint brands in outer Ranchi

Name of the company DEALER

Asian 54

Berger 35

ICI 7

KNPL 12

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Others 15

The table given below gives detail about reasons for demand of particular brand:

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Reasons Number

Advertisement 21

Quality 45

Choice of Customer 10

Service 11

Brand Name 9

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Following table shows the number of dealers keeps their Stock according to the motive of:

Reasons Number

Customer Demand 61

Profit Margin 6

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 Following table shows weather the customers are loyal towards particular brand or not:

Yes/No Number

Yes 44

No 22

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Following table shows whether Architects, Contractors and painters are aware of newly launched
products or not?
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Yes/No Number

Yes 53

No 13

RECOMMENDATION & SUGGESTIONS

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FOR DISTRIBUTION CHANNEL:-

• Depot in Ranchi is very much essential for the growth of KNP in this city.
• Company must explore the interior areas and try to make new dealers over there.
• Company must keep regular monitoring on the dealers and supply, which may retain the
availability and continuity.
• Company must provide a gift or bonus to the dealers, painters and the contractors.
• Company must distribute a gift and schemes through a proper channel.

• Company must organize dealer’s and painters meet from time to time so that they can be
made aware of the new products (if any) which is going to be launched in the market.

• Sales Supervisor should have good interaction with the dealers which results in increase
in sales.

• Company executive should visit the counter on weekly basis.

• Executive should take the feedback from the dealers about the service of the Sales
Supervisor and the dealers.

FOR SALES TREND:-

• Company must provide better services and try to attend the suggestions and complaints
by the retailers, dealers, painters etc.
• Company must provide general information about product and price in the market.
• Company must provide a service for the expired products.
• Company must improve its packaging and storing process.
• Company must provide or make avail products according to the demand.

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• Company must provide support materials through a proper channel.
• Company is required to keep an eye on dealers and going through to their problems.
• Company must encourage the high selling counters by providing incentives and other
extra benefits.

• The sales supervisor must visit the institutions on a regular basis especially in the
seasonal time.

• The company must promote its products through continuous advertisement by the means
of different media. The advertisement should come not only in the seasons but also
during the off-season.

CONCLUSION

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According to the survey made by me, I came to the conclusion that inspite of Nerolac being the
3nd largest player in the Decorative paint; it is not so good in the decorative segment compared to
the industrial segment. It is the market leader in industrial segment with 41% of the market
share. As far as the business is concerned Nerolac has to work a lot to increase its share in the
city Ranchi. As we know that the dealership network, advertisement and Supply chain
management are the main parts of sale. So if the company concentrates more on these areas,
then definitely it would be beneficial.
There is a regular demand of paint in the hotels and nursing homes/hospitals throughout the
year. The paint having better finishing and shining is in more demand in the hotels for the
interiors. In the nursing homes, people are price conscious; they don’t bother much about the
quality. In the schools I observed that the school buildings are being painted after an average
period of 5 to 6 years. I observed that people paint their houses externally after more than three
to 4 years and internally nearly every year. So whenever there is a requirement of paint in the
house, the people opt for a good quality and long lasting paints, also I observed that
advertisement plays great role in influencing people for opting paint.
In the decorative segment Asian Paints rules the market. I also concluded that Asian Paints is
dominating over the other brands so far as supply is concerned. As per my observation I came to
the conclusion that there should be continuous approach and backup by the company executives
so as to get more market share.
Most of the Consumers are in need of a Paint which will hide the cracks on the wall.
To increase the Market share the Company should give rebate to the Dealers. Also during the
survey one of the dealers gave the information that the company’s price is better than other
company’s product, so there is no need of price change.
There is a need of strong advertisement to increase more selling. For that sources have suggested
that the company may spend some money on the hoardings and banners.
The company has to make all well informed about the newly launched product of the Company.
Try to make the Consumers loyal so that they should not switch to other Company’s brand by
giving special offers time to time as the rate of brand switch is more in this part of the country.
Company can introduce niche marketing and target those specific consumer in different levels as
the consumer market can be divided into 3 category such as

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 Household who paint their house once in every two years
 Commercial buildings who paint their shops and buildings once in every five year.
 Hotels who paint their room with interior paints twice in every year

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 BIBLIOGRAPHY

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 BIBLIOGRAPHY

Sites Visited:
 www.nerolac.com
 www.indiahousing.com
 www.virtusglobal.com
 www.asianpaints.com
 www.paintindia.com

Books:

1. Kotler, Philip. Marketing Management, Prentice-Hall of India Pvt. Ltd., 10th Edition,
New Delhi: 2003.

2. Kothari, C.R. Research Methodology, Methods and Techniques, New age International
Publishers, New Delhi: 2004

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 APPENDIX

QUESTIONNAIRE

Dear Sir/Madam:

I KUMAR ADITYA and KUMAR ADITYA, student of a 3rd trimester M.B.A. of “Rourkela
Institute Of Management Studies” Which is Under Biju Patanik University of Technology” Is
under taking a Dissertation on the Topic “Study of Paint industry in the city of Ranchi”. I
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would be grateful to you if you could spare sometime from your busy schedule and fill up the
questionnaire. I assure you that whatever information you provide will be kept confidential and
will be used for academic purpose.

Personal detail:

Dealer name: ___________________________________________

Place : ________________________________________

Phone/mobile no. : ___________________________________________

Q1.Which Company’s Paint you sell?

1.Asian 2.Nerolac 3. Berger 4.Others

Q2. Which Paint is more in demand?

1.Asian 2.Nerolac 3. Berger 4.Others

Q3.Why?

Q4.You mainly keep your stock according to demand of customer or making more
profit is the motive?

1. Customer Demand 2.Profit

Q5. Customers are more loyal towards particular brand?

1. Yes 2.No

Q6.Customers is influenced by?

Q7.Architects/Contractors are not aware of newly launched products?

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1.Yes 2.No

Q8.Supply of which paint is more frequent?

1.Asian 2.Nerolac 3. Berger 4.Others

Q9.Expectation from company?

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