ACKNOWLEDGEMENT & DEDICATION

In the name of Allah, the Beneficent, the Merciful

We are highly grateful to Almighty Allah who gave us power to complete this

project. The project was about the ICI Pakistan Ltd, Paints Business. The basic

focus was to know the marketing mix strategy of ICI Paints and SWOT analysis

of ICI and Berger Paints.

We are very thankful to ICI Paints Business Sahiwal, for their cooperation and

guidance which they grant us for completion of the project. Moreover, their time-

to-time guidance in preparing project report was also been a great aid. And of

course our parent’s and teacher’s encouragement cannot be ignored and we

dedicate this project to our beloved parents and honorable teachers”.

TABLE OF CONTENTS

EXECUTIVE SUMMARY

INTRODUCTION

SUMMARY OF OPERATIONS

REASON FOR CHOSING THE TOPIC

HYPOTHESIS

STATISTICAL TESTING

HYPOTHESIS TESTING

LITERATURE REVIEW

FROM SYNTHETIC TO HYBRIDS SEEDS

PROBLEM DEFINITION

CORN MARKET

FODDER MARKET

SCOPE OF STUDY

DATA COLLECTION

DATA ANALYSIS OF CORN MARKET

DEALERS RESPONSE

GROWERS RESPONSE
INTRODUCTION TO THE COMPANY

ICI Pakistan continuously strives to be the “preferred choice” of

allot of customers and consumers. This is a consequence of an
unrelenting focus on the changing needs of our customers and
proactively addressing their issues and problems. Putting a
premium on innovation in product and services, maintaining
stringent quality standards is the raison-deter ensuring we
“deliver value to our customers”.

Polyester

Business’ investment in a new plant is an endeavor to improve

the consistency of its product quality. The Business’ focus on
customer needs led to the development of a new fiber, delivering
improved performance on customer ’s lines called Polyester
Viscose. Production of variants such as super white is to cater to
specific needs of customers seeking innovation in their products.
Our technical service team truly differentiates us in the market.
Focusing on optimizing mill conditions to enhance productivity,
running trials to improve quality and trouble shooting
successfully has earned. ICI the reputation of being the Technical
Experts.

Soda Ash

Business, where the customers and the industry are challenged by

increasing costs, the focus has therefore been to minimize the
impact. Initiatives launched in logistics and key account
management for the customers have assisted them in cutting
down on working capital by reducing inventor y, reduction in
warehousing and storage costs and distribution expenses.

Paints

Business has brought to the consumer the world of colours. The

introduction of over six thousand colour options, supported by
our unique colour consultancy services and our colour studios
have opened up a vista of imaginative colour solutions to our
customers. Pioneering innovative products and services has been
the driving force behind our zest for excellence. Our Automotive
customers are provided with the latest in Japanese technology for
their coating solutions. Working with them to the minutest detail,
they have also benefited in cost reductions with conversion of
supplies in bulk. Our refinish customers are trained at a state of
the art Training Centre, the only one of its kind in South East
Asia.

Life Sciences

Pharmaceuticals Division recently entered the Branded Generics

Market with Cefixime, plugging the gap for high quality
antibiotics at competitive rates. The launch of Cefixime would
provide both the customers and the consumers a viable option for
a quality third-generation Cephalosporin. Besides its
affordability, each pack of ICEF comes with sterile water for
reconstitution of the solution. This unique benefit gives the
medical community the confidence to prescribe the drug to the
patients, most of whom are not very aware of the importance of
correct mixing of the product in water to achieve the required
concentration.
Chemicals

Business has introduced customer focused Key Performance

Indicators in its supply chain which are monitored to improve
delivery times and facility of tracking of consignments. The
focus on business development initiatives to provide cost
competitive sourcing options for the customers while maintaining
the quality promise has enabled ICI Chemicals to be at the
forefront of introducing new products and ideas to its customer
base, hence facilitating technology transfer to the local industry.
We at ICI Pakistan believe that our future is dependant on the
success of our consumers. We partner with them to ensure that
the maximum possible potential is realized by all arranging
training workshops and seminars. We continue to drive our
commitment to safety, health and environment for all our
customers and suppliers to ensure that our society as a whole
values the importance of our lives and the need to protect the
environment.
To Achieve Our Mission We Will:

Give our highest priority to Health, Environment and

On Ethical business behaviors.
~
Make sure our product offer gives value to the customer in
Dependable supply, reliability and consistent quality.
~
Make sure our service levels help us foster long-term
relationships
With customers and suppliers.
~
Aim to be best in class in our operating efficiencies and costs
And grow the business by selectively increasing capacities
And introducing new products that meet customers’ needs.
~
Develop and retain a team of capable people
Who are enthused to deliver the mission?
SSH&E
«Nothing we do is worth getting hurt for.»
Safety, Health and Security of Employees and Contractors is paramount to
any other consideration. We shall act responsibly to protect the environment
and participate in the well-being of the communities we operate in. We shall
demonstrate respect and care while dealing with our customers, our
suppliers and the general public.

Valuing People
«Our competitive edge.»
We shall value our people – ‘our competitive edge’, respect
the individual, value teamwork and, without discrimination,
recognise and reward performance.

Innovation
«Creativity for improvement.»
We shall seek new and better ways to improve products,
services and processes.

Business Excellence
«Better, faster and best value.»
We shall lead in quality, speed, and cost competitiveness.
We shall maximize returns for shareholders and deliver
sustainable growth.

Customer Obsession
«They pay our bills.»
We shall understand customer needs and deliver on our commitments and
show adaptability and agility in response to change.
Transparency
«Beyond reproach. »
All our systems are transparent and can stand the test of
Scrutiny.

Ethics
«Uncompromising integrity.»
We shall demonstrate uncompromising integrity in ourbusiness dealings; be
fair and honest; be free of bias; and auditable in all aspects of our business,
ensuring conformity with our code of conduct and regulatory standards.
 • Further investment
in Soda Ash
capacity expansion
(65ktpa)
under evaluation.
• Manpower
productivity
increased by 10%.

The Company crosses the

Rs. 2.0 billion mark in
operating profit
and profit before tax for the first time
In Company’s history.*

o Gross Profit up by 22% compared to last year.

o Operating results and profit before taxation higher
by 35% and 31% respectively over 2005.

o Adjusted earning per share** up by 31% over 2005.

• Record production and sales volume achieved

consecutively for the second time in the Soda Ash
business for both Soda Ash and Sodium Bicarbonate.

• Investment in three major projects at a cost of Rs 3.3

billion: Asset Modernization and Improvement Project
(AMIP) in Polyester, Soda Ash 50 ktpa expansion
and acquisition of manufacturing facility of Fayzan
Manufacturing Modaraba (FMM).
Paints Business Performance 2006

Paints Business delivered an exceptional performance during the year 2006 with
all its segments posting double-digit improvement in sales volume on the back of
GDP growth and enhanced activities in downstream construction
And automobile sectors. In the Decorative segment, competitive brand strategy,
channel expansion and launch of new products assisted the Business in achieving
higher sales volume over last year. Similarly, the Industrial segment showed a
solid performance in 2006 on account of growth in Motor, Motorcycle and Tractor
sectors. The Refinish segment also delivered a strong growth in sales volume
compared to last year and entered the Middle East market with the
commencement of commercial exports.
ICI PAINTS BUISNESS

ICI Pakistan paint’s business vision is to further strengthen its position as the leading

paint company in Pakistan and drive its operations to world class standards with a

relentless commitment to Safety, Security, Health & environment and Business

Excellence. It is committed to deliver innovative products and services whilst driving

improvement in processes and systems to add value to its customers, employees and

working environment.

The business has integrated into its workplace the values and behaviors of ICI Pakistan

and these have been communicated and accepted in various interactive sessions with all

employees. These values and behaviors now form the way of life for all those who work

for the paints business

All the three business today have embarked on programs which focus on the consumer

and customer needs. The focus is to understand the needs of our major stakeholders.

Pursuing research and market understanding and delivering high quality product and

services form the nucleus of creating competitive advantage in the market place for the

paints business.

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, better flow, anti fungal and luxurious finish was very well received by

the consumers, architects and painting professionals.

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.

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 Refinish business continues to grow in the local market. It also set sights on
becoming a regional player. The top coat color range was launched under the Dulac Auto
paints umbrella along with all its ancillaries. To cap on the mid and low tier thinner
market an acrylic thinner was launched in mid tier and a GP thinner was launched in the
low tier. In pursuance of its channel strategy to increase its numeric coverage the business
expanded its network to 491 dealers while 12 additional SSS dealers were made in 2006

DEFINATION OF PAINT
“Coatings applied to a surface or substrate to hide, decorate, protect and perform other
specialized function”

PAINTS CLASSIFICATION

Paint

Solvent borne Waterborne

Decorative Refinish Motor & Industry Decorative

COMPONENTS OF PAINT
 Pigments Binder

COMPONENTS
OF
PAINTS

Solvent Additives

PRODUCT RANGE
(Under Coats)
 • Dulux

-Dulux Prime-on
-Dulux Wall Putty Water Based
-Dulux Red Oxide Primer
-Dulux Universal Primer Grey

DECORATIVE PRIMERS
(Under Coats)

• Glidden

-Glidden Ultra Prime

-Glidden Wall Putty Water Based
-Glidden Wall Putty Solvent Based
-Glidden Red Oxide Primer

Decorative Solvent Borne Products

(Top Coats)

• Dulux Range

-Dulux Gloss Finish

-Dulux Matt Finish
-Dulux Metallic Finish
 • GLIDDEN RANGE

-Glidden Hi Gloss
-Glidden Ultramatt

DECORATIVE WATER BORNE PRODUCTS

(Top Coats)

O DULUX RANGE

-Dulux Weathersheild
-Dulux Pentalite
-Dulux Supercoat
-Dulux KidZone
-Dulux Contract Emulsion
-Dulux Texture Finish

DECORATIVE WATER BORNE PRODUCTS

(Top Coats)

• GLIDDEN RANGE
o Glidden Duraguard
o Glidden Ultra hide
o Glidden Ultratex
Decorative Water borne Products
(Top Coats)

• NON DULUX NON GLIDDEN RANGE

o Paintex
o Maxilite
o ICI Vinyl plus Distemper

Decorative Wood Care Products

• SURFACE PREPARATION PRODUCTS
-Filler
-Sealer
o STAINS

-ICI Woodcare Stain

-30 Shades
O TOP COAT
-ICI Woodcare Lacquers
-Matt Lacquers
-Full Gloss Lacquers
o Thinner

-ICI Woodcare Special Thinner

OTHER PRODUCTS
• DULUX WARNISH
• DULUX ALUMINUM DUAL PACK
• DULUX WATER REPELLENT

MASTER PALLATE (6,134 Colors)

• PENTALITE CLASSIC
• WEATHER SHIELD
• GLOSS FINISH
• MATT FINISH
Marketing Mix Strategy
Usually firms do a considerable amount of research to identify markets and define
segments. Among the many questions market research seeks to answers, one of
the most important is the sales potential of particular market segments. To
determine sales potential a firm must forecast demand in its targets markets. The
results of demand forecasting will indicate whether the segments are worth
pursuing, or whether alternative need to be identified.
Next the management must design the marketing makes. The combination of
product how it is distributed and promoted and its price. Together these four
components of strategy must satisfy the needs of the target markets. Some of the
challenges facing marketing managers in developing a market mix are
o Product,
Strategies are needed to decide what products to offer managing existing products
over time and dropping failed products .Strategic descions must also be made
regarding, branding, packaging and other product features such as warranties
o Price,
Setting a price for a product is a marketing decision. Other necessary strategies to
changing pricing related items within a product line tons of a sale and possible
discounts
o Place
Here strategies relate to channels by which ownership of products is transferred
from producer to customers and in many cases the means by which goods are
moved from where they are produced to which they are produced to the final
customer. In addition strategies applicable to any middle man such as whole
sailers and retailers.
o Promotion
Strategies are needed to combine individual methods such as advertising, personal
selling and sales promotions into an integrated communications campaign. In
addition promotional strategies must be adjusted as product move from the early
stages to the later stages of life.

The four marketing mix elements are interrelated decisions in one area affect
actions in another. To illustrate design of marketing mix is certainly 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 how ever product, place and promotion strategies come to
fore front.

Each marketing mix elements contains countless alternatives. For instance a

producer may make and market one producer or many ,and producer may be
related or unrelated to each other. They may be distributed through wholesalers
and retailers without the benefits of wholesalers, or even directly to final
customers. Ultimately from the multitude of alternatives, management must
select a combinations of elements that will satisfy target markets and achieve
organizational and marketing goals.

Like many areas of business marketers some times face seemingly contradictory
goals .The desires to satisfy customers , For example may seen to conflict with a
particulars revenues or profits objectives. When this occurs ethical predicaments
may arise .Thus ethics in marketing deserves our attentions.
ICI, S PAINTS MARKETING MIX STRATEGY

Like other companies ICI Paints, Decorative Division also focused on the
marketing mix strategies. It becomes obvious to design such a market mix
strategy which can helpful in achieving organizational objectives and first and
foremost objective of organization is to maximize its profits. We will now explain
how ICI Paints formulates its Market Mix Strategies.

1. Product

• MAINTAIN AND MANAGING THE EXISTING PRODUCTS

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.
With time to time increasing demand, it had also become essential to maintain
the supply chain. Many of the raw materials are imported from several
countries. They are chemicals so their transportation through air services is not
feasible so they are usually mobilized through ships. So when there is such
expended inflow of raw materials and outflow of product, it becomes a
challenge to manage it.

• IDENTIFYING DEMAND
Secondly the step goes what is the current need of the market. Today is the
world of change, and only change is the continuous phenomena in this world.
Several needs were identified in the market through research and the products
were launched by keeping the demand of the customers.

 Paint which overcome the hairline cracking.

 Dulux Pentalite Classic (for interior) was launched.

ICI’s R&D worked on this problem and ultimate find
the solution to it. Dulux Pentalite Classic was
launched as a new product with additional features
of high scrub resistance, better flow and luxurious
finish. ICI was pioneer in finding solution to this
common problem and offered a better value added
product to their customers.

 Paint which resists alkali, salts.

  Still Research and Development is working on the paint
which can resist the alkali, salts and evaporation of water
from the walls. This is one of the main demands which are
lying in the market of paint. Almost every customer had to
face this problem. It’s the fact that the company which will
encounter this problem and find the real remedy to this
problem will be appreciated and welcomed by the
customers and this can help to maximize its profits. There
is a strong competition between the paint manufacturing
companies to find the solution to this problem.
 Exterior paint which gives smoothness and luxurious finish like
interior paint.
 “World of weather shield” was launched. First time in the
history, an exterior putty and exterior primer which was
having an additional feature of being waterborne was
introduced by ICI Pakistan Limited. The credit goes to
R&D.
 Paint which gives mirror like finish

 Dulux Gloss Finish was introduced.

 Paint which give non-yellowing White

 The above mentioned product which was launched to give

the mirror like finish was with additional feature of having
non-yellowing White.

 Paint which has fragrance.

 Dulux Special Plastic Emulsion was launched.

 Oil base paint which has no smell

 Once again, for the first time in the world, oil paint was
launched by ICI Pakistan Limited with no smell. The paint
 gives no smell like ordinary paints. This product was very
successful and collected a lot of appreciation of customers.
Recently a new range is launched with a ver y
demanding need of customer which is “ODOURLESS”. As
we often experience that when even 1 room of our home is
painted, a specific smell starts to come and it’s pinching.
Especially when Matt is applied in any room, it’s
impossible to sleep in that room before 4 or 5 days. And it
also causes irritation in eyes.So in the process of value
addition of ICI, a new range was launched with the
additional and separate feature of ODOURLESS. It is
available in Dulux Matt Enamel, Dulux Enamel and Dulux
Pentalite Classic.


  Exterior paint which retains its shade for long time

 Dulux Weathersheild Fresh was launched with the features

of Fungus guard, Color lock and Dirt Guard.

2. Price

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 low then 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.

So pricing factor vary from brands to brands and target market.

3. Placement / Distribution
The overall ICI Paints products are manufactured in ICI Paints Lahore. For all
Pakistan stocks dispatch is carried out from factory warehouse.
There are further 5 warehouses in the country.
• Lahore
• Islamabad
• Multan
 • Karachi
• Quetta

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.

4. Promotion
Before getting a product into the market, ICI’s culture is to invite its business
partners (dealers/distributors) to give them orientation regarding new product
what ICI is going to launch, with what features and how it will work.
After this first step when product is introduced to the business partner’s second
step is its promotion how the promotion is done.
• T.V Advertisement on different channels
• Radio Advertisement , F.M 100
• Bill boards almost in every big city
• Posters / Banners
• Small gifts for dealers/distributors to push new product sale
• Small gifts for painters / contractors who are labor force who apply paint
• Painters party to introduce them new product
• T – Shirts printed with product logo on them
• Caps
• Key chains

The sales team is assigned a target the placement of the new product on every
counter. With the help of direct marketing, ICI employees gives orientation to the
customers and Painters that what the new product is and what features it has.
Currently T.V commercial of ICI Dulux Odourless, in on air on different T.V
channels.
SWOT ANALYSIS
A method of analyzing an organizations competitive situation that involves
assessing organizational Strength (S) and Weaknesses (W) as well as
environmental opportunities (O) and Threats (T).
Before we go through the SWOT analysis, first of all let’s identify the competitors
of ICI Paints. ICI is still enjoying a reasonable percentage of market shares. Still
ICI do not consider any company its competitors but the company which is
chasing ICI is Berger Paints. Berger is the only company which has some how
reasonable market share, as main share of the paints market goes to the local paint
manufacturers.

Now we will made assessment through SWOT analysis of both ICI Paints and
Berger Paints.

STRENGTH
ICI Paints Berger Paints
• More than 80 yeas of • Gained reasonable market
experience in the paints share in very short time
industry. period.
• Multinational Company • Comparatively fast supply of
PLc U.K the products.
• World renowned chemicals • Having 2 manufacturing
and paints manufacturers. plants as ICI had only 1
• Having production setup in which helped in improving
more then 55 countries. the delivery of goods.
• Popularity of ICI is much • Good discounts and
 more due to its thousands incentives for business
of other products rather partners as compared to ICI
then paints. Paints.
• Having product which has
no competitors.
• Laid new histories in the
paint industries.
• Business volume is very
high as compared to the
competitors.
• Focuses Safety, Security,
Health and Environment as
a corporate social
responsibility.

WEAKNESS

ICI Paints Berger Paints

• Very low discounts for
business partners.
• Comparatively less
convenient delivery of
the products as the
business partners are in
1000,s.
• Meeting demand
becomes challenge in the
• Poor dealer network as compared
to ICI.
• Complaint often arises in the
product while applying.
• Low range of products.
• None of the product which can be
said better then ICI
• Lack of policy.
 season.
• Lack of formulating competent
THREATS
ICI Paints
• Threats to the new entrants in the
market. e.g. Nippon Paints Japan
has entered the market of Pakistan
• Political stability of the Pakistan
• Economic Stability
• Come under the definition of local
brand as it is claimed by Berger
that they are Multinationals.
strategies.
Berger Paints
• Threat to the expanding market of
ICI Paints.
• Threats to the other new entrants in
the paints market e.g. Nippon Paints
Japan has entered the market of
Pakistan
• Economic and Political stability has
also become a threat to almost all
companies either national or
multinationals to carry out their
business operations in the Pakistan.
• Threat of the new innovative
products of the competitor like ICI
is having its products in market
which have no competitors and
gained popularity and market share.
 OPPORTUNITY

ICI Paints Berger Paints

• Pakistan is developing country • Berger should formulate its
and there is a lot of business strategies and develop its product
growth in this country. So seeking keeping in view about the growth
new markets in this area is great opportunity in this country.
opportunity. • Extensive research on different
• In developing countries, there is problems can lead to launch of
always opportunity for products which are in demand by
maintaining sustainable growth, market.
so it’s also in Pakistan. • Maintaining the quality is key to
• Keeping the need of the market, success in the paints market.
still there are some products • Still Berger has a long way to go ,so
which are not offered by ICI. That they should cover the new
product also weights a technological gaps which can lay
considerable share so by them down.
launching these products ICI can
improve its market share.
• Finding solutions to the painting
problems can also help to grow.
Such product are still absent in
the market which can gain the
attention of customers. So to work
on those problems lead to a great
opportunity.
• Low price products can allow
gaining a good market share. So
cost cutting should focused.
CONCLUSION
ICI Pakistan Limited is one of the leading companies. ICI Pakistan's Paints

Business is one of the largest in the country, which started with the acquisition of

Fuller Paints (Pakistan) Limited. The business manufactures paint for the

Decorative, Refinish and Industrial segments. In Pakistan they are enjoying a state

of monopoly but there is always an opportunity some where. ICI has consistently

developed new and innovative areas of businesses. ICI’s paints brands are some

of the most successful in the world.

ICI Should focus to encounter the new off shore paint companies which are

entering in the market of paints.

No doubt, some of the brands of ICI are exclusive in the market and still have no

competition, but along with this the low price and high quality products should

also be in the market.

The fact that Research and Development of ICI had brought today to the current

position and set milestones for other companies to follow.