Professional Documents
Culture Documents
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A Dissertation
By Ahsan Rashid
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Table of Contents
COMPANY PROFILE......................................................................................................6
History..................................................................................................................6
ICI Paints.................................................................................................................8
PEST ANALYSIS......................................................................................................... 10
PROBLEM DEFINITION...............................................................................................16
COMPETITOR ANALYSIS............................................................................................19
MARKET POSITIONING:............................................................................................. 21
BCG Matrix............................................................................................................ 21
SWOT ANALYSIS.......................................................................................................23
MARKETING-MIX STRATEGY......................................................................................26
Product............................................................................................................... 27
Price...................................................................................................................30
Placement / Distribution.....................................................................................31
Promotion...........................................................................................................34
DECISION PROBLEM..................................................................................................39
RESEARCH PROBLEM/QUESTIONS.............................................................................39
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RESEARCH OBJECTIVES............................................................................................39
HYPOTHESIS.............................................................................................................39
REVIEW OF LITERATURE...........................................................................................41
LIST OF QUESTIONS..................................................................................................42
RESEARCH PROPOSAL..............................................................................................44
SAMPLING PLAN........................................................................................................49
DESCRIPTION OF ACTIONS........................................................................................51
SURVEY ANALYSIS.................................................................................................... 63
Token Incentives...................................................................................................77
Fake Paint..............................................................................................................83
SUMMARY OF FINDINGS............................................................................................93
Paint is categorized in two broad classes; namely water based paint and solvent based paint. The
industries produce a wide range of finished and intermediate products which include pigments,
distempers, plastic emulsion, enamel, undercoat, primers, rubber paint, aircraft paint, marine
paint, anticorrosive paint, anti fouling paint, etc.
There are huge opportunities for the growth of paint industry in Pakistan. But due to Economical
recessions and unstable Political conditions this industry has declined. Pakistan is currently
experiencing a GDP growth rate of 3.5-4.5%. Meanwhile the paint industry is witnessing a 6-8%
growth rate. This high growth can be attributed to the current boom in both the automotive as
well as the construction industry.
However if we see the data below, it can be easily said that there is still great potential for
growth in the paint industry in Pakistan.
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The table above shows a comparison of the per capita consumption of paints in Pakistan,
Singapore and Brazil. Thus it can be seen that Pakistan is way behind with only 0.3 Liters of
consumption from these more developed countries.
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COMPANY PROFILE
ICI Pakistan Limited
ICI Pakistan Limited (Imperial Chemical Industries) is located in Karachi, Pakistan. The
company was subsidiary of ICI Plc United Kingdom but with worldwide takeover of ICI PLC
by AKZO NOBEL now AKZO NOBEL is 75.81% stake holder of ICI PAKISTAN. It was set up
as a public limited company in Pakistan in 1952. The ICI Group is a renowned international
business. It employs approximately 31,000 people worldwide.
The vision of ICI is to be the leader in formulation science. It has, and continues to develop, a
portfolio of businesses that are major players within their respective industries, bringing together
outstanding knowledge of customer needs with leading edge technology platforms to provide
superior products to its customers.
Through these attributes, it aims to create superior value for ICI customers and shareholders,
without compromising its commitment to safety, health, environment and the communities in
which it operates.
Polyester Fibers
Soda Ash
Paints
Chemicals
Pharmaceuticals
History
1944
The Khewra Soda Ash Company, a predecessor of ICI Pakistan Limited, set up a soda ash
manufacturing facility in Khewra with a capacity of 18,000 tonnes per annum. This facility was
sited next to the salt range as rock salt and limestone, two key raw materials needed for
manufacturing soda ash, were available here in abundance.
1953
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The Khewra Soda Ash company was incorporated as a public limited company.
1966
The Khewra Soda Ash Company changed its name to ICI Pakistan Manufacturers Limited.
Over the next few decades, major changes took place in the company as our Specialty Chemicals
and Polyester plants were commissioned, and Imperial Chemical Industries (Pakistan) Private
Limited and Paintex Limited both merged into ICI Pakistan Manufacturers Limited.
1987
We changed our name to ICI Pakistan Limited
We also established ICI Pakistan PowerGen and set up the ICI Pakistan Foundation as a
charitable trust.
1995
We set up a USD 490 million PTA manufacturing facility at Port Qasim, near Karachi.
1998
PTA manufacturing facility commissioned.
2000
The business was de-merged to form Pakistan PTA Limited, which was at the time a subsidiary
of ICI Plc UK.
2007
We completed 50 years of continuous listing on the Karachi Stock Exchange.
2008
We formally became part of the AkzoNobel Group, bringing us under the banner of one of the
largest coatings and chemicals companies in the world.
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ICI Paints
"The ICI Paints team intends to remain market leaders in the Paints Business. We
wish to be recognized for offering the best products and excellent customer
service. We will run a high quality, profitable and growth oriented business in an
exciting and safe environment."
[Mission Statement]
Industrial
Automotive
Decorative
All the three business have embarked on programs which focus on the consumer and customer
needs. The focus is to understand the needs of the major stakeholders. Pursuing research, market
understanding and delivering high quality product and services forms the nucleus of creating a
competitive advantage in the market place for the paints business.
The Industry & Automotives coatings business of ICI paints besides gaining strength in the local
market also aspires to become a regional player. Self leveling epoxy floor coatings have been the
new addition in the product portfolio and have been well received by major customers. After the
initial success of the Turn-Key project management concept with one of the leading customers
where a one shop solution in terms of design, fabrication and commissioning of automotive
paints is done by ICI, the business is now offering it to other customers also.
The Decorative segment of the business is driving a strategy of providing a super premium range
of products with a wide color range under the Dulux brand that fulfill the growing needs of the
market. Pentalite Classis was the first launch in this category. A super premium plastic emulsion
with five properties of resisting hairline cracks, high scrub resistance, and better flow, anti fungal
and luxurious finish was very well received by the consumers, architects and painting
professionals.
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After its initial success in the furniture market segment the Dulux Woodcare range is now
available in the retail segment also. In one stroke the consumer can now get the shade of wood
that he or she wants.
Expanding and improving service levels have been the major thrusts of the Decorative business.
After the great success of the first color studio in Karachi a second color studio was opened in
Islamabad. Now consumers in Islamabad also have the platform to experiment with colors, come
up with new contrasts and combinations that reflect their persona and lifestyle projecting their
color aspirations into their living environments. The housing and the color consultancy team has
been re-structured with more feet on the street and proper training to help consumers with new
color trends and interior design solutions.
According to the latest survey conducted by ICI Paints the entire market for decorative paints is
210 Million Liters. This market can be subdivided into two categories – the organized market
and the un-organized market. The organized market refers mainly to the market that purchases
decorative paints from paint manufacturers and equals 73 Million Liters. The unorganized
market on the other hand constitutes of the market which uses paint substitutes for decorations
and equals 137 Million Liters.
DECORATIVE
PAINT MARKET
210 Million Liters
ORGANIZED
35%
UNORGANIZED 73 Million Liters
65%
137 Million Liters
The organized market can be further divided into three categories based upon the various
qualities of paint being manufactured. These categories include:
Premium
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Mid-Tier
Low-Tier
PEST ANALYSIS
Political-Legal factors:-
• Political Instability
Since the independence in 1947, Pakistan has continuously faced political instability. The
political instability has led to uncertain environment in the country, which is a threat for
any business including ICI Paints.
The rules and regulations are changed quite frequently due to changes in the government
that effects the business flow for any company. E.g The last government had introduced
subsides for the chemical sector but now the current government is planning to finish all
subsides.
The law and order situation is crucial as it has causes serious disruption on business
activity. The suicide bombing and military operations have had an adverse effect on the
confidence of foreign investors.
• Taxation Laws
The government is providing relief to the paint industry. There is a 10% reduction in the
central excise duty on paint products.
Economic factors:-
• Economic Situation
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Economic conditions are not very sound. The rising political instability has led to
economic instability as well.
• Inflation
Inflation remains the biggest threat to the economy. The surge in global petrol prices and
thus local petrol prices hurt the buying power of consumers that reduced the demand for
products. Due to inflation the cost of doing business has also gone higher. If Pakistan
keeps on getting better grants and loan waivers or if any other economy boosting factors
such as controlled inflation rate and economic growth take place, it will benefit the entire
industry including ICI Paints.
• Unemployment
The unemployment rate is going up and up which has increase the level of poverty thus
further reducing the buying power of the people.
Social-Cultural factors:-
• Population
Technological factors:-
• Latest Technologies
Companies have technology with which they can have a competitive advantage in the
Pakistani market. Companies are investing in the their infrastructure to not only expand
but also to upgrade their existing structure.
• The growing share of companies in the unorganized sector provide a low price substitute.
• With regard to the paint industry in Pakistan, there is a high threat of new entrants.
The main reason for this being low entry barriers, as there is no requirement of high
capital investment to enter the paint business.
• Also, there are no proprietary product difference and low switching costs which puts
the phrase “brand loyalty” into jeopardy.
• What make the paint industry attractive for newcomers is also the ease of acquiring
skilled people, material and supplies. Moreover, lack of long term contracts also
contributes towards the attractiveness of the industry for the newcomers.
• Bargaining power of the intermediaries is high because the industry is divided into the
structured and unstructured market and does not act as a unified whole to leverage the
bargaining power in its favor.
• Therefore the more the channel sells each product, the higher the margin they keep for
the company.
• The bargaining power of end users however, is low because there a large number of
buyers, each with relatively small purchases.
• In addition to this, the organized paint sector has also accepted branding which creates
loyalty and decreases the price sensitivity, resulting in low bargaining power of buyers.
• Bargaining power of suppliers is low in the decorative segment as inputs required are
commodities and there a number of suppliers available who are fighting for a small
market.
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• However, since big companies fight on the “quality” dimension and cannot switch their
suppliers are in a position to negotiate their terms upon providing the desired raw
material which makes the overall bargaining power of suppliers moderate.
• The paint industry can be characterized as a fragmented industry divided into the
organized and unorganized sector.
The exterior market of paints in Pakistan is of 7 Million Liters. ICI dominates the market share
with 4.2 Million Liters with its Weathershield.
MARKETSHARE ICI
Berger
20%
Others
20% 60%
4.2Million Liters
Currently ICI has a 60% market share with its major competitor being Berger. Berger has a 20%
market share followed by a 20% share by smaller brands which include Berger, Blackhorse,
Silversand, Master, Nippon, Gobi, Hapilac etc.
ICI with its Weathershield technology is leading the premium market for exterior paints. The
Weathershield system provides full-protection to the exterior of the house against natural wear
and tear. The Weathershield protection is said to last for up to 5 years.
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PROBLEM DEFINITION
In 1973, ICI launched its Weathershield technology in UK. The
Weathershield technology reached Pakistan in 1984. In March 2007 ICI
Paints added a new product ‘Weathershield Fresh’ to its Weathershield
range. With the launch of this new product ICI was hopeful to capture 70
– 80 % of the market share but only managed to increase its share to 60%.
A study was done by ICI Paints in 2009 to determine the forces responsible in influencing a
customer. The study revealed the following results.
4% Own Experience
17%
44%
Family / Friends
11%
Advertisements
Retail Outlet
Thus the market for ICI Paints can be divided into five major market segments. These segments
include:
Dealers
Retailers
Contractors
Painters
Consumers
• These include the continued migration of rural consumers to urban areas in search of
work and an improved standard of living. This improving quality of life will increase in
level of demand for the product.
• The number of Pakistanis returning to the country having worked abroad will also fuel
growth, as these consumers bring with them knowledge of the products available in the
west, as well as general lifestyle trends to which they have accustomed.
• Rising inflation can cause decrease in the purchasing power of the people.
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COMPETITOR ANALYSIS
ICI Weathershield is leading the exterior market for paints with a 60% market share. Berger is
the only other competitor that also deals in premium quality paints. Berger has a 20% market
share followed by a 20% share by smaller brands which include Berger, Blackhorse, Silversand,
Master, Nippon, Gobi, Hapilac etc.
MARKETSHARE ICI
Berger
20%
Others
20% 60%
4.2Million Liters
ICI Weathershield dictates prices in the exterior market. All the competitors including the
smaller players follow the same pricing strategies. The price of ICI Weathershield is 5% more
than that of Berger’s Weathercoat.
Berger has still to come-up with a product to compete with the new Weathershield Fresh which
comes with an added feature to repel dust. The new ICI Weathershield is also available in a lot
more colors than any other exterior paint in the market. Thus Berger is lagging behind in its
product development strategies.
Recently, all the other paint providers besides ICI have developed a new strategy to give
incentives to painters and contractors by offering them discount-tokens. These tokens vary from
a discount of Rs. 50 – Rs. 300. As these painters and contractors have a significant influence
over the consumer in choosing which paint to use, this token scheme has helped boost up their
sales significantly.
However ICI Weathershield believes in focusing on the end-consumers instead of giving tokens
to contractors. It believes that this will help develop long-term loyalty from its consumers
resulting in repeat sales.
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Sale Of Fake Paint
All personnel interviewed expressed their firm opinion that at least 20% of the paint sold in the
local market is “fake paint” sold under popular brand names. Since ICI Weathershield is the
most popular brand for the exterior paint, the percentage of fake paint sold under its brand name
is even higher. Although ICI Paints has a large number of authorized dealers and most of these
dealers are loyal to the company, however the general public is not completely aware of how to
differentiate the genuine dealers. Also some of these authorized dealers are not quite as loyal and
ICI Paints has occasionally received complaints in this regard, which have been adequately dealt
with. In addition the ICI paint products including the Weathershield is also being sold by other
shopkeepers who are not authorized dealers. Paint purchased through these shops has even lower
credibility.
ICI Weathershield is supplied in metal containers, which are not sealed in any foolproof fashion.
The containers are also not printed and instead a printed wrapper is pasted onto the containers.
This makes it easier for the persons who are in fake paint business. Also it is very easy for the
shopkeepers to fill up ICI containers with cheaper alternate brands and the consumer may only
see the adverse results on long term period. There have been instances when ICI Weathershield
wrappers have been stolen from the premises of the wrapper printers. It is also a normal practice
that as soon as a consumer brings home ICI Weathershield paint, the first thing the painters do is
to remove printed wrappers in order to sell them.
The customers are generally dependent upon the advice and assistance of the Painters or Painting
Contractors in the selection and purchase of the paint. Even when the purchase has been made
very carefully, the purchased paint is largely in the custody of the Painters and they have ample
opportunity to maneuver.
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MARKET POSITIONING:
In order to better understand how to increase the market share of ICI Weathershield, we have to
position the brand with its direct competitors. That is best demonstrated with the help of the
BCG matrix.
BCG Matrix
The BCG matrix categorizes brands according to two parameters, the rate of market growth and
the relative market share. There are four categories under which brands may fall:
• Cash cow: Low market growth & high relative market share.
• Question mark: High market growth & low relative market share.
The market positioning of ICI Weathershield and its direct competitors is shown in the diagram
below. As it can be seen ICI Weather shield has high market share and high relative market
share, therefore it is categorized as Star.
M
A
R STAR QUESTION MARK
K
E ICI PAINTS NIPPON PAINTS
HIGH
T
G
R CASH COW
O DOG
W BERGER AND
T LOW ROYAL PAINTS
MASTER PAINTS
H
HIGH LOW
The various strategies available to improve the market position of a brand are as below:
• Differentiation Strategy:
Differentiation strategy is that the company differentiates its products or services to those of
other companies.
Under this strategy the product or service is provided at the lowest possible cost so that it
higher margins may be earned by the company.
• Focus Strategy:
This strategy gives importance to focus on the customer/ target market; identifying and
serving them better.
ICI Weathershield is at present following the differentiation and focus strategies. Although
controlling costs is an important matter, ICI Weathershield does not believe in comprising its
quality. That would be detrimental to its leadership position in the market. Also the number of
household users is greater than the number of corporations within the country and contractors
always use the brand demanded by their consumers. For this reason the brand employs
differentiation and focus strategies.
These strategies suit the present situation of ICI Weathershield and therefore should be
continued.
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SWOT ANALYSIS
Another method of analyzing a brand’s competitiveness is through the assessment of internal
strengths (S) and weaknesses (W), as well as environmental opportunities (O) and threats (T).
As Berger paint is holding the second highest market position after ICI Weathershield, SWOT
analysis of both ICI Paints and Berger Paints has been conducted below.
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STRENGTHS
WEAKNESSES
THREATS
• Product
• Place
• Price
• Promotion
The four marketing mix elements are interrelated decisions. Marketing mix is affected by
whether a firm chooses to compete on the basis of price or on one or more other elements .When
a firm relies on price on its primary competitive tool .the other elements must be designed to
support aggressive pricing. For example, promotional campaign likely will be built around a
theme of “low, low price,” In non price competition however product, place and promotion
strategies come to fore front.
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ICI WEATHERSHIELD’S MARKETING-MIX STRATEGY
Product
“A product is anything that can be offered to a market to satisfy a want or need of a customer at
profit”.
Any product can be classified into either a consumer product or a business product. Consumer
product is the one that is bought and consumed by a final consumer. While a business product is
the one that is bought for the purposes of reselling or for business use.
ICI Weathershield comes under the definition of consumer product as a household buys the
product and use it.
QUALITY
SERVICE
VARIETY
PRODUCT
PACKAGIN BRAND
G NAME
FEATURE
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• “World of weather shield” was launched and for the first time in history, an exterior putty
and exterior primer which was having an additional feature of being waterborne was
introduced by ICI Pakistan Limited.
• First and foremost priority of the company is to maintain the standard and quality of the
existing product which are already in the markets. Their manufacturing, meeting demands of
the market had become a great challenge for the company. And the main thing which is
taken in to account before getting the product out of the gate of Factory is to maintain the
quality of every single pack of the product.
• Dulux Weathersheild Fresh was launched with the features of Fungus guard, Color lock and
Dirt Guard.
• Oil base paint which has no smell; is odourless or has fragrance. It is available in Dulux
Matt Enamel, Dulux Enamel and Dulux Pentalite Classic. It would be an achievement to
have the same quality available in ICI Weathershield.
• Wide range of colors to choose from. ICI Weathershield is available in 6,134 shades as
opposed to Berger’s Weathercoat which only comes in 12 basic shades. Some of the shades
of Weathershield are shown below.
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Price
“Amount of money needed to purchase something”.
Elements Of Price
LIST PRICE
CREDIT
TERMS DISCOUNT
S
PRICE
PAYMENT ALLOWANC
PERIOD ES
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As far as the pricing is concerned it is the most difficult decision because keeping all the things
on one side price matters. ICI Paints is promoting different brands on different prices according
to the market segmentation. Dulux is the most expensive brand in the market. The reason is that
the best raw material and components are used in the manufacturing of the Dulux. Second reason
is that Dulux target market is upper tier. And to some extend upper tier of middle tier. But paying
more for Dulux , customer feels value .
If we compare the price of Dulux with other local brands , it’s the fact that price difference is not
more than 20-100 rupees. As far as quality is concerned , by paying more customer is not
worried about the quality .
For the market which is middle tier, ICI’s brands Paintex Emulsion and Glidden are the brands
with low price and optimum quality within the tier. If we go into the comparison of Paintex and
Glidden their price is lower than the other paint brands selling in the market. Glidden is purely
priced to cover the buying power of middle tier.
The price of the products in which ICI is having technological edge over competitors is
comparatively high. The reason is that ICI is enjoying state of monopoly for that product. There
is no product in the market to encounter them.
The price of Dulux Weathersheild Fresh is Rs. 1050/-, others companies brands offered in the
market are 300-400 Rs less than Weathersheild Fresh.
Same is the case with Dulux Gloss Finish and Dulux Matt Enamel Odourless Range. The price is
Rs. 300-400 more as compared to other brands.
Placement / Distribution
“Place includes company activities that make the product available to target consumers.”
Placement is the process in which the final good or service is made available to the end
customer. The channels used for this purpose are known as “Marketing Channels”.
Marketing channels are defined as “set of independent organization involved in the process of
making a product or service available for the use or consumption by the consumer or business
user”.
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Elements Of Placement
CHANNELS
TRANSPOR
T
COVERAGE
PLACEMEN
T
INVENTOR ASSORTME
Y NTS
LOCATION
The overall ICI Paints products are manufactured in ICI Paints Lahore. For all Pakistan stocks
dispatch is carried out from factory warehouse.
• Lahore
• Islamabad
• Multan
• Karachi
• Quetta
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The distribution channel includes Distributors and Dealers/ retailers. The Pakistan is divided into
4 Regions.
• Upper
• Lower Punjab
• Center Punjab
• Lower
Every region is headed with Regional Sales Manager and in every Region there are further Area/
Territories. The supply activities are carried out with keeping the region and areas. One region
cannot carry out supply in others region same in the case with areas/ territories.
The product is only delivered to the company approved dealer or distributor. Distributor can sale
to the customer which is not approved dealers of the company. Main consumption of paint is on
dealer/retailers counter. The delivery is made through 2 modes
• Distribution Vehicles
• Freight On Road ( goods transportation service)
By these 2 means ICI manage the distribution and placement of their products to be available for
their customers and consumers.
Marketing Systems
ICI paint is also using vertical marketing system in the placement if its products. Here come the
old concept of dealership. That means, giving right to a third party to sell the product on their
behalf.
ICI Paints, like other competitors, supplies the paint products through the appointed dealers in
various regions and areas. The current number of ICI Paints appointed dealers all over Pakistan
is more than 2200. Dealers’ margin is around 5-10% depending upon their performance in terms
of volume sale. The Company also extends credit facility to the dealers. The limit of the credit
available to a dealer is also dependent upon his past sale performance.
ICI Paints, like 2 to 3 other major paint manufacturers spends considerable funds on the
advertisement of their products. Both the electronic and print media is employed for the sale
promotion. In addition the paint manufacturers offer various types of incentives/gift schemes to
the high performer dealers and even to the paint contractors. For example, ICI Paints and Berger
every year, take their high performer dealers abroad on Company expenses for tourism visits to
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various nearby countries. Nearly all paint manufacturing companies offer various types of
material gifts to the high performing dealers and even to the painting contractors.
Unlike ICI Paints, all other manufacturers also run a cash token incentive scheme. Tokens of
various monitory values are put in the paint boxes. Since the paint boxes are normally opened
either by the painters or the paint contractors and the customers are generally not aware of such
schemes, therefore the beneficiaries are invariably the painters or the paint contractors.
This aspect therefore becomes a strong motivating force for them to recommend such specific
brands of paint.
Promotion
“Promotion means an activity that communicates the merits of the product and
persuades target customers to buy it”.
Good Promotion always plays an important role in the success of any product. A good product
can be fail if not properly promoted. Nippon is taking big steps to promote it’s product by
maintaining good relationship with the community of Pakistan. The basic aim at the behind of
these steps is to promote their own product through a moral way.
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Elements Of Promotion
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PERSONAL
SELLING
ADVERTISI
DIRECT
NG
MARKETIN
G
PROMOTIO
N
PUBLIC
PROMOTION
RELATIONS
After this first step when product is introduced to the business partner’s second step is its
promotion how the promotion is done.
Currently T.V commercial of ICI Dulux Odourless, in on air on different T.V channels.
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DECISION PROBLEM
“Does ICI Paints need to modify its marketing strategies in order to increase the market
share of Weathershield from 60% to 70%?”
RESEARCH PROBLEM/QUESTIONS
What properties customer deem important in a particular brand of exterior paint?
How does the market mix of ICI Paints compare with the competition?
RESEARCH OBJECTIVES
To determine what aspects do people deem important in selecting a particular brand of
exterior paint.
To determine how people rate Weather Shield against other available brands of exterior
paints based upon the identified aspects.
To determine the changes in the marketing mix which could increase the market share
of Weathershield by 10%.
To determine whether the market share could be increased by controlling the fake paint
being sold in the market under the brand name of ICI Weathershield.
HYPOTHESIS
Token incentive offered by the competition is restricting the market share of ICI
Weathershield.
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Sale of fake paint in the market under the brand name of ICI Weathershield is
restricting the market share of ICI product.
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REVIEW OF LITERATURE
Thorough website search was conducted for relevant documents/studies. Contact was also made
in this regard with the concerned personnel of ICI Paints. Following documents were located /
secured and were reviewed in detail.
LIST OF QUESTIONS
Current size of exterior paint market. Any printed information available?
Growth rate in the sale of ICI Weathershield. Any printed information available?
Growth rate in the market share of ICI Weathershield. Any printed information
available?
What forces influence/guide the consumers in selecting any specific brand of paint?
Who are the real decision makers?
Typical sale promotion activities of ICI Paints. Is there an advisory service? What is its
set up and how does it function?
Any special sale incentives offered by competition for their brands of exterior paint?
What is the basis/indications for concluding that fake paint is being sold in the market?
Can a control in the sale of “fake sale” under the brand name of ICI result in an
increase in the market share of Weathershield?
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What can be done to control the sale of fake paint under ICI brand name?
What other steps can be taken to increase the market share of Weathershield?
RESEARCH PROPOSAL
I. Purpose of the proposed research design:
The main purpose of this research is to determine how to modify the marketing strategy
to increase the market share of ICI Weathershield from 60% to 70%.
Research Objectives
To determine the changes in the marketing mix which could increase the market
share of Weathershield by 10%.
To determine whether the market share could be increased by controlling the fake
paint being sold in the market under ICI Weathershield brand name
• Exploratory Research
• Descriptive Research
Exploratory Research
Literature survey:
Experience survey:
Interviews will be conducted with the higher management of the organization and with
those belong to the competitor organization to have a clear idea as how the whole
distribution system is working and to identify the loop holes amongst different marketing
channels and to come up with an appropriate solution to improve the distribution
procedure.
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Descriptive Research
• Detailed Interviews
• Structured Questionnaires
Detailed Interviews:
With Contractors:
Detailed interviews will be conducted with the contractors to see if they are
satisfied with ICI products and if not, what the major factors responsible for that
are.
With Retailers:
With Management:
Interviews will be conducted with the management to get more awareness about
company’s management policies and marketing strategies.
Structured Questionnaires:
Questionnaires will be distributed and get filled by the households as to see their
preferences and elements they consider while selecting the paint for their
house .What improved features they would like to see in the paint brands they
purchase and how they compare it with other alternatives.
For Distributors/Retailers/Contractors:
To have a clear idea about their preferences and suggestions they have for the
betterment of the company.
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For our research, we have specifically targeted the following segments of the market:
• Painters
• Retailers
• Dealers
• Contractors
• Households/Direct Consumers
The total sample size of the research will be 100.From each segment 20 sub samples will
be picked randomly.
• Literature survey
• Internet
• Related articles
• Interviews
• Questionnaires
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Following are the major benefits which management will drive after the research
is completed:
• To establish a system to eliminate the sale of fake paint under ICI Weather
Shield brand name
Questionnaire cost
• Material cost
• Printing cost
• Transportation cost
• Telephone expenditures
Target Population
Unlike typical products – there is limited knowledge amongst the masses regarding paints. The
only people who can provide reliable information are either individuals who have been involved
in the purchase of paint or the paint-dealers, paint-contractors and painters.
As a result the target population for our survey instrument would comprise of:
Sampling Frame
Having two separate survey instruments required us to have two different sampling frames for
each. Thus the sampling frame for the consumer questionnaire consists of all households which
spread over the various geographical areas of Lahore.
The second questionnaire which is designed for dealers / painters / paint contractors has a
sampling frame that includes all the paint shops located at the various markets of Lahore.
Sampling Procedure
Due to limited time we have opted for non-probability sampling. In non-probability sampling we
have chosen a mixture of convenience, judgment, snowball and quota sampling.
We will be relying on our judgment when selecting elements from the sample frame. Although
we will make an effort to include samples from all the segments but due to limited time the
sample would have to be convenient. As we wish to target individuals who have had a certain
level of exposure to the purchase, sale, or use of paint we will also be asking our respondents to
guide us through our sample selection. To diversify our sample based on certain demographics
such as household income etc. we are going to assign certain quotas to specific areas while
selecting the elements.
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Sample Size
Due to the nature of the study and the limited time the sample size could not be very large. As a
result the following sample size has been chosen which should be sufficient.
50 House holds
50 Dealers / Painters
Sample Elements
The sample elements would consist of the head of the households who are the most likely
decision-makers in the purchase of paint as well as the paint-dealers, paint-contractors and
painters.
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DESCRIPTION OF ACTIONS
The research objectives and the hypothesis were reviewed in detail in order to determine the type
of information and the primary data to be collected. In view of the nature of the research
objectives it was decided to pursue the method of communication for the collection of the data
and to target the relevant persons who are involved in the decision making process for the
selection of a particular brand of the exterior paint.
Two lists of questions were developed – one for contacting the consumers and the other for
contacting the Painters, Dealers, Retailers and House Builders, who are considered to be
relatively more knowledgeable about the subject.
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QUESTIONNAIRE FOR CONSUMERS (A)
Above Average
Average
Below Average
Above Average
Average
Below Average
Owner
Living on rent
Yes
No
5) When is the last time that you had your house painted?
Berger
ICI
Master
Silver Sand
Gobi
Don’t Know
7) How important do you consider the following factors while selecting a particular brand of
exterior paint?
Very Imp Important Unimportant Very Unimportant
Brand Reliability
Price
Dealer Reliability
Own experience
Advice of Friends
Advice of Painter
Advice of Retailer
Berger
ICI
Master
Silver Sand
Gobi
Personally
Retailer
Can you name the shop: ___________________
11) Can you differentiate between a company appointed dealer-shop and a non-dealer
shop?
Yes
No
12) Are you aware of any “token scheme” being offered by paint manufacturers?
Yes
13) Are you familiar with the details of the “token scheme”?
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Yes (If Yes, Elaborate: ________________________________)
No
14) Which paint suppliers are offering the “token scheme” as an incentive?
Berger
ICI
Master
Silver Sand
Gobi
15) Are you aware of any price-discounts being offered by paint suppliers?
Yes
16) Which suppliers of paint are offering price-discounts? (tick all that apply)
Berger
ICI
Master
Silver Sand
Gobi
17) In your opinion is fake exterior paint being sold in the local market under various
brand names?
Yes
18) Are you aware of any campaign launched by any paint manufacturing company to
warn against the sale of fake paint?
No
19) Are you familiar with customer support service being offered by ICI
Paints?
No
20) What other steps can ICI Paints take in order to increase the market share of
Weathershield?
________________________________________________________________
________________________________________________________________
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QUESTIONNAIRE FOR DEALERS/PAINTERS (B)
Dealer
Retailer
Berger
ICI
Master
Silver Sand
Gobi
4) How many years of experience does the respondent have in this field?
Up to 5 years
5 – 15 years
ICI
Master
Silver Sand
Gobi
Own experience
Family/Friends
Painter / Contactor
Retailer
Others
non-dealer shop?
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Yes
No
Berger
ICI
Master
Silver Sand
Gobi
10) Which of the following suppliers of various brands are offering price discount on
their retail price?
Berger
ICI
Master
Silver Sand
Gobi
11) Which of the following suppliers of various brands offer any other type of
motivational sale incentives?
Berger
ICI
Master
Silver Sand
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Gobi
Yes
13) What is the basis/indication for the assumption that fake paint is being sold in the
market?
Customer/Painter complaints
14) How can one confirm the sale of fake paint in the market?
Tempered Paint-box
15) What could be the approximate average percentage of the sale of fake exterior paint?
Up to 10%
10% - 20 %
16) Is the quantity of fake ICI Weathershield more or less than the perceived average
sale of fake paint?
Average
Yes
No
18) Is it relatively easier or more difficult to refill the paint boxes of ICI Weathershield?
Easier
More difficult
Same
19) Looking at a new-unopened box of ICI Weathershield, can one confirm whether it is
genuine or fake?
No
20) What can ICI Paints do to minimize the sale of fake Weathershield?
Other
21) What other steps can ICI Paints take in order to increase the market share of
Weathershield?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
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SURVEY ANALYSIS
Q. How would you rate the following exterior-paint manufacturers in terms of quality and
reliability?
Berger
ICI
Master
Silver Sand
Gobi
• Consumer Survey:
ICI
Cumulative
Frequency Percent Valid Percent Percent
Valid Very Good 57 57.0 57.0 57.0
Good 26 26.0 26.0 83.0
Poor 12 12.0 12.0 95.0
Very Poor 5 5.0 5.0 100.0
Total 100 100.0 100.0
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Berger
Cumulative
Frequency Percent Valid Percent Percent
Valid Very Good 30 30.0 30.0 30.0
Good 55 55.0 55.0 85.0
Poor 6 6.0 6.0 91.0
Very Poor 9 9.0 9.0 100.0
Total 100 100.0 100.0
Master
Cumulative
Frequency Percent Valid Percent Percent
Valid No Reponse 5 5.0 5.0 5.0
Very Good 29 29.0 29.0 34.0
Good 47 47.0 47.0 81.0
Poor 15 15.0 15.0 96.0
Very Poor 4 4.0 4.0 100.0
Total 100 100.0 100.0
Silver Sand
Cumulative
Frequency Percent Valid Percent Percent
Valid No Reponse 9 9.0 9.0 9.0
Very Good 3 3.0 3.0 12.0
Good 52 52.0 52.0 64.0
Poor 28 28.0 28.0 92.0
Very Poor 8 8.0 8.0 100.0
Total 100 100.0 100.0
Gobi
Cumulative
Frequency Percent Valid Percent Percent
Valid No Reponse 20 20.0 20.0 20.0
Very Good 6 6.0 6.0 26.0
Good 27 27.0 27.0 53.0
Poor 39 39.0 39.0 92.0
Very Poor 8 8.0 8.0 100.0
Total 100 100.0 100.0
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• Dealer Survey
ICI
Cumulative
Frequency Percent Valid Percent Percent
Valid Very Good 87 87.0 87.0 87.0
Good 13 13.0 13.0 100.0
Total 100 100.0 100.0
Berger
Cumulative
Frequency Percent Valid Percent Percent
Valid Very Good 15 15.0 15.0 15.0
Good 66 66.0 66.0 81.0
Poor 8 8.0 8.0 89.0
Very Poor 11 11.0 11.0 100.0
Total 100 100.0 100.0
Master
Cumulative
Frequency Percent Valid Percent Percent
Valid Very Good 21 21.0 21.0 21.0
Good 18 18.0 18.0 39.0
Poor 54 54.0 54.0 93.0
Very Poor 5 5.0 5.0 98.0
5 2 2.0 2.0 100.0
Total 100 100.0 100.0
Silver Sand
Cumulative
Frequency Percent Valid Percent Percent
Valid No Response 8 8.0 8.0 8.0
Very Good 6 6.0 6.0 14.0
Good 26 26.0 26.0 40.0
Poor 35 35.0 35.0 75.0
Very Poor 25 25.0 25.0 100.0
Total 100 100.0 100.0
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Gobi
Cumulative
Frequency Percent Valid Percent Percent
Valid No Response 26 26.0 26.0 26.0
Very Good 10 10.0 10.0 36.0
Good 10 10.0 10.0 46.0
Poor 32 32.0 32.0 78.0
Very Poor 22 22.0 22.0 100.0
Total 100 100.0 100.0
As one can see above ICI Weathershield is ranked the best among the consumers in terms of
quality and reliability. There were 57 individuals who ranked ICI Weathershield as “Very
Good” as opposed to only 30 individuals who ranked Berger’s Weathercoat as “Very Good” the
other major competitor. On the other hand 87 dealers considered ICI Weathershield as “Very
Good” as opposed to only 15 dealers for Berger.
Another question was used to determine the perceived qualities amongst the dealers based on
various factors. The following question was used.
60
80
50
60
40
40 30
20
20
Percent
Percent
10
0 0
Satisfactory Good Very Good Satisfactory Good Very Good
50
40
30
20
10
Percent
0
Poor Satisfactory Good Very Good
40
30
20
10
Percent
0
No Response Poor Good
Very Poor Satisfactory Very Good
30
20
10
Percent
0
No Response Poor Good
Very Poor Satisfactory Very Good
50
40
30
20
10
Percent
0
No Response Very Poor Poor Satisfactory Good
20
10
Percent
0
No Response Poor Good
Very Poor Satisfactory Very Good
50
40
30
20
10
Percent
0
Poor Satisfactory Good Very Good
60
40
20
Percent
0
Poor Satisfactory Good Very Good
In order to understand how important the consumers consider various factors while selecting a
particular brand the following question was used.
Brand Reliability
Price
Dealer Reliability
Own experience
Advice of Friends
Advice of Painter
Advice of Retailer
Brand Reliability
Cumulative
Frequency Percent Valid Percent Percent
Valid Very Important 78 78.0 78.0 78.0
Important 22 22.0 22.0 100.0
Total 100 100.0 100.0
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Price
Cumulative
Frequency Percent Valid Percent Percent
Valid Very Important 58 58.0 58.0 58.0
Important 37 37.0 37.0 95.0
Unimportant 5 5.0 5.0 100.0
Total 100 100.0 100.0
Dealer Realiability
Cumulative
Frequency Percent Valid Percent Percent
Valid Very Important 52 52.0 52.0 52.0
Important 40 40.0 40.0 92.0
Unimportant 8 8.0 8.0 100.0
Total 100 100.0 100.0
Own Experience
Cumulative
Frequency Percent Valid Percent Percent
Valid Very Important 48 48.0 48.0 48.0
Important 42 42.0 42.0 90.0
Unimportant 7 7.0 7.0 97.0
Very Unimportant 3 3.0 3.0 100.0
Total 100 100.0 100.0
Advice of Friends
Cumulative
Frequency Percent Valid Percent Percent
Valid Very Important 27 27.0 27.0 27.0
Important 49 49.0 49.0 76.0
Unimportant 17 17.0 17.0 93.0
Very Unimportant 7 7.0 7.0 100.0
Total 100 100.0 100.0
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Advice of Painter
Cumulative
Frequency Percent Valid Percent Percent
Valid Very Important 70 70.0 70.0 70.0
Important 13 13.0 13.0 83.0
Unimportant 16 16.0 16.0 99.0
Very Unimportant 1 1.0 1.0 100.0
Total 100 100.0 100.0
Advice of Retailer
Cumulative
Frequency Percent Valid Percent Percent
Valid Very Important 55 55.0 55.0 55.0
Important 36 36.0 36.0 91.0
Unimportant 7 7.0 7.0 98.0
Very Unimportant 2 2.0 2.0 100.0
Total 100 100.0 100.0
The above data suggests that the factor which is given the most importance amongst the
consumers is dealer reliability (78% - Very Important) followed by the advice of painter (70% -
Very Important). Thus the advice of the painter and dealer plays a vital role in the selection of a
particular brand of paint.
Own experience
Family/Friends
Painter / Contactor
Retailer
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The question yielded the following results:
60
60
50
40
40
30
20
20
Percent
Percent
10
0 0
Very Important Important Unimportant Very Important Important Unimportant
50
30
40
20 30
20
10
10
Percent
Percent
0 0
Very Important Important Unimportant Very Unimportant Very Important Important Unimportant
As shown above the painter and paint-contractor is considered most important (72% - Very
Important) by consumers while selecting a particular brand of paint. Likewise, the retailer also
plays a significant role in the decision making process of the consumer.
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Token Incentives
Awareness
The following question was devised to determine the awareness level of consumers regarding the
“Token Scheme” being offered by various exterior paint manufacturers.
Yes
No
60
50
40
30
20
Percent
10
0
NoResponse Yes No 3
Are you aware of any "token scheme" being offered by paint manufacturers?
Cumulative
Frequency Percent Valid Percent Percent
Valid No Response 6 6.0 6.0 6.0
Yes 58 58.0 58.0 64.0
No 33 33.0 33.0 97.0
3 3 3.0 3.0 100.0
Total 100 100.0 100.0
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The results showed that 58% of the consumers were aware of “Token Schemes” being offered by
paint manufacturers.
Another question was used to determine how many consumers were familiar with the details of
these “Token Schemes” and who they felt benefited from them.
No
40
30
20
10
Percent
0
No Response Yes No
Cumulative
Frequency Percent Valid Percent Percent
Valid No Response 42 42.0 42.0 42.0
Yes 33 33.0 33.0 75.0
No 25 25.0 25.0 100.0
Total 100 100.0 100.0
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60
40
20
Percent
0
Painter Consumer
Cumulative
Frequency Percent Valid Percent Percent
Valid Painter 8 8.0 25.8 25.8
Consumer 23 23.0 74.2 100.0
Total 31 31.0 100.0
Missing System 69 69.0
Total 100 100.0
As shown above there were 33 consumers who felt that they were aware of the details of
the token scheme and amongst these individuals 23 of them felt that the consumers benefited
from the token scheme.
ICI
Master
Silver Sand
Gobi
Which of the following suppliers of various brands are offering a token scheme as a
incentive
Cumulative
Frequency Percent Valid Percent Percent
Valid Berger 42 42.0 42.0 42.0
ICI 1 1.0 1.0 43.0
Silver Sand 3 3.0 3.0 46.0
Gobi 8 8.0 8.0 54.0
Berger & ICI 7 7.0 7.0 61.0
Berger & Silver Sand 14 14.0 14.0 75.0
Berger & ICI &
10 10.0 10.0 85.0
SilverSand & Gobi
Berger & Silver Sand
15 15.0 15.0 100.0
& Gobi
Total 100 100.0 100.0
The following questions were used to assess which suppliers were offering price-discounts and
other motivational incentives to dealers for the sale of paint.
Berger
ICI
Master
Silver Sand
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Gobi
Q. Which of the following suppliers of various brands offer any other type of
motivational sale incentives?
Berger
ICI
Master
Silver Sand
Gobi
Which of the following Suppliers of various brands are offering price-discounts on their
retail price
Cumulative
Frequency Percent Valid Percent Percent
Valid No Response 2 2.0 2.0 2.0
Berger 10 10.0 10.0 12.0
ICI 5 5.0 5.0 17.0
Master 12 12.0 12.0 29.0
Berger & ICI 10 10.0 10.0 39.0
Berger & Master 7 7.0 7.0 46.0
Berger & ICI & SilverSand
54 54.0 54.0 100.0
& Gobi & Master
Total 100 100.0 100.0
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Which of the following suppliers of various brands offer any other type of motivational sale
incentives?
Cumulative
Frequency Percent Valid Percent Percent
Valid Berger 2 2.0 2.0 2.0
ICI 18 18.0 18.0 20.0
Master 1 1.0 1.0 21.0
Silver Sand 8 8.0 8.0 29.0
Berger & ICI 35 35.0 35.0 64.0
Berger & Master 6 6.0 6.0 70.0
Berger & ICI & SilverSand
6 6.0 6.0 76.0
& Gobi
Berger & ICI & SilverSand
24 24.0 24.0 100.0
& Gobi & Master
Total 100 100.0 100.0
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Fake Paint
• Consumer Questionnaire
Following question was designed to assess whether consumers felt that fake paint is being sold in
the market.
Q. In your opinion is fake exterior paint being sold in the local market under
various brand names?
Yes
In your opinion is fake exterior paint being sold in the local market?
100
80
60
40
Percent
20
0
NoResponse Yes No
As shown in the graph almost 80% consumers are aware of the fact that fake exterior
paint is being sold in the local market under various brand names whereas approx.20%
consumers felt otherwise.
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The following question was designed to assess the awareness level amongst consumers
regarding any campaigns launched by paint manufacturing companies to warn against
sale of fake paints.
Q. Are you aware of any campaign launched by any paint manufacturing company
to warn against the sale of fake paint?
No
60
40
Percent
20
0
NoResponse Yes No
As shown in the above bar chart more than 75% consumers were not aware of any such
campaigns.
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• Dealer Questionnaire
Following question was designed to assess whether dealers and painters felt that fake paint is
being sold in the market.
Yes
No
60
40
Percent
20
0
Yes No
As shown in the graph almost 70% dealers and painters are aware of the fact that fake
exterior paint is being sold in the local market under various brand names whereas
approximately 30% felt otherwise.
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Following question was designed to assess the ways through which dealers and painters felt that
fake paint is being sold in the market.
Q. What is the basis/indication for the assumption that fake paint is being sold in the
market?
Customer/Painter complaints
40
30
20
Frequency
10
0
NoResponse Customer Painter Com
General Market View Market View &Compla
The above bar chart shows that 35% dealers have no idea whereas approximately 40%
dealers and painters think that customer/painter complaints are the major indications that
fake paint is being sold in the market and almost 15% think that general market view is
the major indication and 10% painters/dealers think that both market view & complaints
are the basic indications.
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Following question is designed to assess the confirmation of the sale of fake paint in the
market.
Q. How can one confirm the sale of fake paint in the market?
Tempered Paint-box
50
40
30
20
Percent
10
0
NoResponse TamperedPaint-Box Painter'sviewupon
As shown in the above bar chart more than 50% painter and dealers confirmed the sale of
fake paint through painters view upon usage whereas approximately 35% painters and
dealers have no idea about the sale of fake paint.
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Following question is designed to assess the approximate average percentage of the sale
of fake exterior paint.
Q. What could be the approximate average percentage of the sale of fake exterior
paint?
Up to 10%
10% - 20 %
30
20
Percent
10
0
NoResponse Upto10% 10%- 20% Morethan20%
As shown in the above bar chart approximately 35% of painters and dealers think that up to 10%
is the average sale of fake exterior paint in the market whereas approximately 10% of the
painters and dealers think that the sale of the fake exterior paint lies between 10% to 20% and
almost 30% feels that the sale of fake exterior paint in the market is more than 20%.
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Following question is designed to assess that either the quantity of fake ICI Weathershield is
more or less than the perceived average sale of fake paint.
Q. Is the quantity of fake ICI Weathershield more or less than the perceived
average sale of fake paint?
Average
50
40
30
20
Percent
10
0
NoResponse Average
Morethanaverage Lessthanaverage
Following question is assess to design that either there has been any general awareness
campaign launched by any paint manufacturing company to warn consumers about fake
paint.
Q. Has there been any general awareness campaign launched by any paint
manufacturing company to warn consumers about fake paint?
Yes
No
50
40
30
20
Percent
10
0
NoResponse Yes No
The following question was devised to estimate whether it was easier or more difficult to
refill the paint boxes of ICI Weathershield in comparison to its competitors.
Easier
More difficult
Same
60
50
40
30
20
Percent
10
0
NoResponse Easier MoreDifficult Same
As we look at the above bar chart results more than 65% of the painters and dealers felt
that it was easier to refill the container of ICI Weathershield.
Following question was designed to speculate which of the following proposed solutions
would be most effective to minimize the sale of the fake ICI Weathershield paint.
Other
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The above question yields the following results:
60
40
Percent
20
0
NoResponse Introduceatamper p
Sell throughdesigna Other
By looking at the above results more than 65% of the painters and dealers were in favor to sell
the ICI Weathershield paint through designated dealership whereas almost 23% of them were in
favor of introducing a temper-proof seal in ICI Weathershield paints to minimize the sale of fake
paint.
SUMMARY OF FINDINGS
The survey findings can be summarized as follows:
• The quality of ICI Weathershield is considered the best amongst the various paint
manufacturers.
• ICI does not offer as many incentives to its dealers as other competitors.
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• The advice of the painter and dealer plays a vital role in the selection of a particular brand
of paint.
• Consumers are unaware of the details of the token scheme and how they take advantage
of consumers.
• Fake ICI Weathershield is sold more than the products of other competitors.
• Selling through designated dealers or introducing a tamper-proof seal could reduce the
sale of fake paint.
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CONCLUSION & RECOMMENDATIONS
Based upon the market survey, the quality of ICI Weathershield is already considered to be the
best. However ICI paints should carry out the following recommendations in order to increase
the market share of Weathershield from 60% to &70%;
• Devise a suitable strategy to nullify the effect of the incentive of “Token Scheme” being
offered by Berger for its product.
The beneficiaries of the “Token Incentive” are mostly the Painters/Painting Contractors.
They also have maximum influence on the selection a specific brand of paint by the
consumers. It is therefore essential the strategy must include some kind of incentive for the
Painters/Painting Contractors.
One of the approaches could be to give some kind of award to the Painters/Paint
Contractors based upon the number of wrappers of Weathershield box collected.
Install measures to eliminate/minimize the sale of fake paint under the brand name of ICI
Weathershield. This can be achieved by:
• Designing and installing a proper sealing system on the Weathershield boxes on similar
lines as being done presently by Berger.
• Raising public awareness through advertisement about the fake paint sold in the market.
• Taking suitable measures whereby ICI Paints official Dealers are easily recognizable –
perhaps by displaying a sign board.
Several strategic options can help ICI Paint overcome its weaknesses and gain market share from
the competition.
• Forward integration: ICI at the moment is depending on dealers for the sale of their
products. These dealers store company’s products, retailers have to get ICI products from
these dealers & then offer customers for sale.
If ICI instead of depending on dealers use their own on distribution to supply products to
retailers then they can increase the sales of their products by giving products to every
possible retailers and in this way they can get acceptance of every retailer to get their
product and offer it to customer for sale.
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• Backward integration: Presently ICI Pakistan is purchasing its raw material from
both local as well as foreign suppliers. About 75% material is purchased from foreign
countries and 25% is purchased locally.
As such as huge quantity of raw material is purchased from foreign countries that’s why
change in government import duties have a great impact on prices of raw material which
also increase the prices of finished products.
Therefore if ICI acquires local suppliers for start making its own raw material then it can
save itself from such fluctuations in prices, which could result in the stabilization of
prices, and customers can purchase the products at low prices.
If ICI gains control over their local suppliers by ownership and take charge of their
operation then a significant cost cutting is possible. After getting ownership if ICI start
manufacturing all or most of the required raw material locally then they can significantly
reduce the volume of import thus avoiding the heavy import duties imposed by the govt.
It will result in decrease in cost of product and ICI would be able to offer its product at a
relatively cheaper price.
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