Summer Internship Project

On

CONSUMER PERCEPTION ON BUYING DECORATIVE PAINTS IN

BHUBANESWAR
At

BERGER PAINTS,
Bhubaneswar

Prepared By :

Soumyakanta Sahoo
Batch-2016-2018

Under the Guidance of

Mr Sambit Dash
Branch manager, Berger paints
&

Mr Rajesh Kumar Satpathy

Professor, Marketing Area

1
 Biju Patnaik Institute of IT & Management
ePublications@biitm

Summer Project Report Management

A REPORT ON EQUITY ANALYSIS OF AUTOMOBILE SECTOR AT BIRLA SUN
LIFE INSURANCE LIIMTED

MR. SOUMYAKANTA SAHOO

Biju Patnaik Institute of IT & Management Studies, Bhubaneswar

Affiliated to Biju Patnaik University of Technology, Odisha

BPUT Registration Number: 1606258092

E mail: soumyakants96@gmail.com

Internal Faculty Guide: Prof. RAJESH KUMAR SATPATHY, Asst. Prof. , BIITM, Bhubaneswar
External Corporate Guide: Mr. SAMBIT DASH

Follow this and additional works at: http://www.biitm.ac.in/epublication

Recommended Citation
Soumyakanta sahoo“A STUDY ON CONSUMER PERCEPTION ON BUYING DECORATIVE
PAINTS IN BHUBANESWAR”
This Summer Internship Project Report is brought to you by the Faculty of Management at
ePublications@biitm.
It has been accepted for analysis in Management ePublication by an authorized administrator of
ePublications@biitm. For more information, please contact Biju Patnaik Institute of IT & Management
Studies, Bhubaneswar SIP Repository Coordinator at sip.biitm@gmail.com

2
 CERTIFICATE OF THE GUIDE
WHOM SO EVER IT MAY CONCERN

This is to certify that the Project Work titled “A STUDY ON CONSUMER PERCEPTION ON

BUYING DECORTIVE PAINTS IN BHUBANESWAR” is a bonafide work of

SOUMYAKANTA SAHOO Enroll/Reg. No. 1606258092 carried out in partial fulfilment for the

award of degree of MASTER IN BUSINESS ADMINISTRATION FOR THE SESSION (2016-

2018) of Biju Patnaik University of Technology, Odisha under my guidance. This project work is

original and not submitted earlier for the award of any degree / diploma or associate ship of any other

University / Institution. The thesis:

• Embodies the work of the candidate himself

• Has duly been completed

• Fulfils the requirement of the rules and regulation relating to the summer internship of

institute.

• Is up to the standard both in respect to contents and language for being referred to the

examiner.

Signature of the Guide

3
 DECLARATION

I hereby declare that the project work entitled “A STUDY ON CUSTOMER PERCEPTION ON

BUYING DECORATIVE PAINTS IN BHUBANESWAR” submitted to the branch manager

Berger paints, Bhubaneswar, is a record of an original work done by me under the guidance of Prof

Rajesh Kumar Satpathy (Faculty Guide, BIITM) and Mr Sambit Dash (Company Guide, Berger

Paints India Ltd) and this project work is submitted in the partial fulfilment of requirement for the

award of the degree of Masters of Business Administration. The results embodied in this project have

not been submitted to any other university or company for the award of any degree or diploma.

Soumyakanta Sahoo

4
 ACKNOWLEDEGEMENT

With immense pleasure, I would like to present this project report for Berger Paints India Ltd. It

has been an enriching experience for me to undergo my summer training at Berger Paints India Ltd,

which would not have been possible without the goodwill and support of the people around. As a

student of “Biju Pattnaik Institute of IT and Management, Bhubaneswar” I would like to extend my

sincere gratitude and thanks to Mr Sambit Dash (Branch Manager, Berger Paints India Ltd.), Mr

Sudhansu Dash (Sales officer) and Prof. Rajesh ku. Satpathy (Faculty of Marketing, BIITM) to

shape my understanding towards the project. It was because of their immense help and support that

this project has been duly completed.

However, I accept the sole responsibility for any possible error and would be extremely grateful to

the readers of this project report if they bring such mistakes to my notice.

Soumyakanta Sahoo

5
Executive summary:-

Consumer perception, also called as consumer psychology, is a branch of applied psychology,

marketing and organizational behaviour. It examines consumers' decision making processes and

ways in which they gather and analyse information from the environment. See the consumer

behaviour article for an overview. Consumer behaviour is a multidisciplinary field which is integral

to industrial psychology and aspects of household economy studied in microeconomics. Consumer

perception also means the actions shown by consumers while making decision to select household

and consumer items

With reference to this context, this project has been prepared to put a light on marketing strategies

for promotion of products at Berger Paints.

This project is completely based on market research of paint. Under this research, we have taken 80

sample sizes. On the basis of that we have assessed the Quality and level of Customer Satisfaction of

Berger paints. Then after we have formulated Conclusion and recommendations to improve their

quality:-

• Quality product rendered to customer.

• To attain customer satisfaction

• To reduce the price of brand so sales can be boost up.

• To advertise their product which is socially accepted?

• To advertise their product through prominent celebrity.

On basis of weak brand, we have given recommendation in which we mentioned how to strengthen

the weak brand. This is the precise study of project.

6
 The above one is totally a quantitative research based on a descriptive research design. The

second part of the project is a qualitative analysis. This is the analysis of the pros and cons of the

perception on paints of Berger Paints and analysing its stand with respect to its competitors in the

market. The sales of both Berger Paints and its competitors are analysed on the basis of the key

features of a good quality and a conclusion has been drawn out. The analysis stage includes

understanding the implications and relevance of the data collected and drawing conclusions about the

company’s business and marketing decisions. Berger is engaging themselves in customer satisfaction

programs by offering many lucrative schemes to them. These schemes will definitely serve the

company to achieve its goal. Further some more schemes have been discussed which are to be

enforced as demanded by the customers.

The Indian Paint industry is mainly divided into two segments – decorative paints segment and

industrial paints segment. Berger has a share of 10% for industrial sector and 17% for decorative

sector. Berger earns most of its revenue through Enamels in decorative sector and through automobile

paints in industrial sector. Berger has a vast distribution network with Berger has the lowest price

range of all the well known brands in India. Promotion and hence sales of Berger paints mostly

increases during festive seasons.

On the basis of the survey conducted it’s found that major section of the revenue of Berger

Paints comes from Interior and Exterior paints. Although Berger recently launched wood finishes and

damp proof materials in the market but to compete with the market leaders it has to carry out intense

promotional program.

Berger is engaging themselves in customer satisfaction programs by offering many lucrative

schemes to them. These schemes will definitely serve the company to achieve its goal. Further some

more schemes have been discussed which are to be enforced as demanded by the customers.

7
 CONTENTS

CHAPTER SUBJECT PAGES

Chapter I Introduction 9 - 19

Chapter II Research methodology 20 – 22

Chapter III Company Profile 23 - 37

Chapter IV Literature Review 38- 42

Chapter V Data analysis and Interpretation 43- 51

Chapter VI Conclusion and suggestion 52- 54

Chapter VII Bibliography 55 -56

Chapter VIII Questionnaire 57- 58

8
INTRODUCTION

9
Indian paint industry

The Indian Paint industry, estimated to be a Rs.21, 000 Cr. industry, has been growing at a rate of

above 15% for the past few years. The organized players of the industry cater to about 65% of the

overall demand, whereas the unorganized players take care of the remaining 35%, in value terms. The

unorganised players mainly dominate the distemper segment.

The industry consists of two segments, namely

• Decorative segment – caters to the housing sector and

• Industrial segment - consists of powder coatings, floor coatings and other
protective coatings catering to the automobile, marine and other industries.

In the domestic market, Decorative segment accounts for 70% of the total demand for paints

whereas the industrial segment accounts for the remaining 30%. Globally, the demand for paints is

almost equally distributed, where both the segments account for close to 50% of demand.

The paint industry volume in India has been growing at 15% per annum for quite some years

now. As far as the future growth prospects are concerned, the industry is expected to grow at 12-13%

annually over the next five years. FY11 was a challenging year for the industry as a whole due to

subdued demand across key sectors and rising inflation.

The initial decades saw the complete dominance of British Paint companies such as Goodlass

Walls (now Goodlass Nerolac), ICI, British Paints (now Berger Paints), Jenson & Nicholson and

Blundell & Eomite. The Indian Paints sector is valued at Rs 6,800 crores in value terms and is very

fragmented. The current demand is estimated to be around 650,000 tonnes per annum and is seasonal

in nature. The per capita consumption of paints in India stands at 1.0-kg p.a. as compared to 1.6 kg

in China and 22 kg in the developed economies. India's share in the world paint market is just 0.6%.

10
 The Indian Paint industry can be divided as:

• The organized sector comprising of large and medium size units

• The unorganized or the small scale sector.

There are now twelve players in the organized sector with a market share of 70%. This is in

contrast to the 55% share that the sector commanded a few years back. Major companies in this

segment include Asian Paints (44% market share), Berger Paints (19% market share), ICI (12%

market share), Goodlass Nerolac (15% market share), Jenson Nicholson (6% market share), Shalimar

Paints and Rajdoot Paints. The organized sector has grown at a CAGR of 11.5% in the last five years.

The unorganized sector comprising of over 2000 units has a combined market share of around 30%.

The major players are Asian Paints, Goodlass Nerolac, Berger, ICI and Shalimar. Recently, world

leaders like Akzo Noble, PPG, Dupont and BASF have set up base in India with product ranges such

as auto refinishes powders and industrial coatings. Kansai Paints of Japan, which entered into

collaboration with Goodlass Nerolac in 1984, is now the holding company for Goodlass Nerolac with

64.52 % equity holding. PPG has a joint venture with Asian Paints to manufacture industrial coatings

The industrial paints segment due to specialized technology and high capital expenditure attracts

fewer players. Most Indian companies have tied up with or are in the process of tying up with

international paint majors to have access to the latest technology. A tie-up with a global paint

manufacturer also enables the domestic company to supply to local customers of its partner. For

example, Goodlass Nerolac is a major supplier to Maruti Suzuki because of Kansai, its Japanese

collaborator and Suzuki relations. It is for the same reason that Asian Paints (tie-up with PPG

Industries, USA) is a major supplier of paints to Opel Astra.

11
Drivers in paint industry:-

• Increasing level of income and education

• Increasing Urbanization.

• Increasing share of organized sector

• Development of the Realty, Automobile and Infrastructure sector

• Availability of financing options

• Increasing Penetration in the Rural Markets

Paint Industry Prospects:-

• The market for paints in India is expected to grow at 1.5 times to 2 times GDP in the next five

years. With GDP growth expected to be over 7% levels, the top three players are likely to

clock above industry growth rates, especially given the fact that protection that was available

to unorganised players has come down significantly.

• Decorative paints segment is expected to witness higher growth going forward. The fiscal

incentives given by the government to the housing sector have benefited the housing sector

immensely. This will benefit key players in the long term.

• Although the demand for industrial paints is lukewarm it is expected to increase going

forward. This is on account of increasing investments in infrastructure. Domestic and global

auto majors have long term plans for the Indian market, which augur well for automotive paint

manufacturers like Kansai Nerolac and Asian-PPG. Increased industrial paint demand,

especially powder coatings and high performance coatings will also propel topline growth of

paint majors in the medium term

12
Challenges in paint industry:-

• Cost of raw material

• MNC’s entering paint industry

• Top competition due to many competitors

• To build a large customer base

• To adopt with the changing environment

• To enable the company strategies to fulfil the needs of customers

• Technical advancements

• Efficient distribution

Berger Paint has started a market expansion process by penetrating the market comprising of interior

decorators and architects. A survey of the interior decorators and architects was made to get to know

about the different types of work they are doing, the types of paints they require and the volume they

consume every year. Information regarding the their total turnover in a year and also the brand they

preferred were collected.

In the 1990s, helped by a growing economy, the paint industry had recorded a healthy growth of 12-

13 % annually. This was mainly due to a drastic reduction in excise from a staggering 40% to 16%.

However, the growth was restricted in 2000-03 to single digits. There was a revival in 2003-2004

with a robust growth of 13%.8.The per capita consumption of paint in India is 700 grams against 19

kg in the U.S., and 2.7 kg and 5.8 kg in other developing countries like China and Brazil. As the

consumption goes with affordability, the low Indian figure is not a surprise.

13
INDIAN PAINT INDUSTRY:-

INDIAN PAINT
INDUSTRY

DECORATIVE INDUSTRIAL
PAINTS SEGMENT

PRIMER AND
INTERIOR PAINTS EXTERIOR PAINTS WOOD & METAL AUTOMATIVE
ROOF

METROS AND MARINE,AIRCRAFT

SMALL CITIES SUB URBANS RURAL SECTOR
CITIES

Decorative segment:-

• Primers

• Putty

• Interior emulsion

• Exterior emulsion

• Wood and metal coatings

• Roof coatings

Industrial segment:-

• Automotive paints like car, and other vehicle coatings

• Marine

• Aircraft

• Machine coatings

14
Working of paint industry:-

MAJOR INPUTS MAJOR PRODUCTS END USERS

RAW DECORATIVE
PRODUCTS: PAINTS, HOUSEHOLDS,
MATERIAL
EMULSIONS, CONSTRUCTION
(56%) VARNISHES, FIRMS
DISTEMPER, WOOD (70%)
FINISH, METAL
FINISH, SPECIALIZED
PAINTS (WEATHER
PROTECTION, NON
SELLING AND TOXIC)
ADMINISTRATI
ON EXPENSES
(22%) INDUSTRIAL
PRODUCTS: POWDER AUTOMOBILE
COATING, SURFACE OEMs, CONSUMER
COATING, FLOOR GOODS,
COATING, HIGH MANUFACTURERS
EMPLOYEE M MARINE
PERFORMANCE
COST INDUSTRIES
COATINGS,
(22%) SPECIALIZED
COATINGS (THERMO
PROTECTIVE, RUST
PROTECTIVE, NON
COMBUSTIBLE)

15
CONSUMER PERCEPTION

Consumer perception applies the concept of sensory perception to marketing and advertising. Just as

sensory perception relates to how humans perceive and process sensory stimuli through their five

senses, consumer perception pertains to how individuals form opinions about companies and the

merchandise they offer through the purchases they make. Merchants apply consumer perception

theory to determine how their customers perceive them. They also use consumer perception theory to

develop marketing and advertising strategies intended to retain current customers -- and attract new

ones.

Perception and its importance:-

Perception is a psychological variable involved in the purchase decision process that is known to

influence consumer behaviour. Other variables included in this consumer process

include: motivation, learning, attitude, personality, and lifestyle. All of these concepts are crucial in

interpreting the consumer buying process and can also help guide marketing efforts.

Perception in marketing:-

Perception is a psychological variable involved in the Purchase Decision Process that is known to

influence Consumer Behaviour. Elective Perception is the process by which

individuals perceive what they want to in media messages and disregard the rest.

Brand perception:

Brand perception is owned by consumers, not brands. Regardless of your message, whatever people

are thinking and saying about your brand, that is your brand. Surveys and focus groups can form an

important part of any strategy in measuring and improving brand perception.

16
Quality perception:-

Perceived quality can be defined as the customer's perception of the overall quality or superiority of

a product or service with respect to its intended purpose, relative to alternatives. Perceived quality is,

first, a perception by customers.

Perception affects consumer behaviour:-

The classical conditioning theory suggests that product packaging directly influences a consumer’s

perception of the product. And the influenced value perception of product is bound to affect

consumers buying decision.

Perceived value may be seen as an “an overall assessment of the utility of a product based on

perceptions of what they receive (quality) versus what they give (price)”.

Making a buying decision involves consumers to go through several cognitive and affective mental

stages before they make a choice. When consumers recognize a need by themselves or upon

provoking, they start to actively look around and consume information available across various

channels. Based on what is presented to them during these stages, they form an attitude towards

particular choices they begin to trust. After a choice is made, and consumer decides to make a

purchase they continue to evaluate their decision while enjoying the product experience.

17
Consumer perception process:-

Buying process:-

BERGER
Feedback

Product

Customer Retail
Depots
Product
Feedba
ck

Feed back
Direct dealers

Feed back Customer Wholesale

18
Scope of Study:-

The main scopes of the study is listed below:

• It gives us information about the perception of customers on decorative paints.

• It gives us information about the proportion of dedicated Berger Paints customers..

• It shows the market share of Berger Paints with respect to its competitors.

• It gives the information regarding the preference and choices of the different customers.

Objective of the study:-

The main objectives of the study is listed below:

• To find the preference and choices of customers regarding the different paint brands.

• To survey the total purchase of different kinds of paints by the customers

• To study the perception on different products of the company.

• To study the perception of customers on decorative paints.

19
Research methodology

20
 Research methodology:-

A descriptive research methodology was used for this study. A survey was administered to a selected

sample from a specific population identified by the Berger paints. These ‘survey’ is commonly

applied to a research methodology designed to collect data from a specific population, or a sample

from that population, through utilizing a questionnaire or an interview as the survey instrument.

Sampling:-

Exploratory research and the interview was purposive interview: It studies the main area where the

problem lies and also tries to evaluate some appropriate courses of action. Here random sampling

method is used where it is also considered as a fair way of selecting a sample from a given population

since every member is given equal opportunities of being selected. The key feature of simple random

sampling is its representativeness of the population. It is an unbiased random selection and thus a

representative sample is important in drawing conclusions from the results of a study.

Sample size-

Here in the project work the sample size was taken for the survey in the Bhubaneswar city. Sample

size of 80 customers that includes the customers who are the end user of the paints was taken in order

to have a customer survey in order to understand their perception and buying behavior on decorative

paints to paint their house.

21
Data collection:-

Primary data- The primary data is collected by direct interaction with the customers.

Secondary data- The secondary data is collected from the web, various blocks, and journals.

Research Problem

In this case the research problem is divided into three heads:

• To analyze the customer perception on buying decorative paints in urban area like

Bhubaneswar.

• To analyze the brand awareness of Berger paints and their perception on the company and its

products.

• A comparative analysis of Berger Paints with respect to its competitors and suggest the

various strengths and weakness of Berger Paints.

Limitation of the study:

There are a few limitations, as stated below, with regard to my study:

• This study is only limited to the customers.

• Time constraint was the major limitation of the project.

• Sample is not representative of the entire population.

• To create good image, respondents may give responses that may vary from the facts.

22
Company Profile

23
COMPANY BACKGROUND:-

In 1770, Louis Steigenberger shifted from Frankfurt to London to sell a Prussian blue colour, which

was made using his own formula. He then changed his name to Lewis Berger. By 1870, Berger Paints

was selling 19 different pigments such as black lead, sulphur, sealing wax and mustard. After his

demise, his sons took over the business. In the 1900s, Sherwin-Williams, an American company took

control of the company. On 17 December 1923, Mr. Hadfield set up Hadfield's (India) Ltd., a small

paint company in Calcutta. Towards the end of 1947, British Paints acquired Hadfield's (India) Ltd

and thus British Paints (India) Ltd was incorporated in the State of West Bengal. In 1951, sales offices

were opened in Delhi and Mumbai and a depot was started in Guwahati. In 1969, Berger Jenson

Nicholson Limited, UK bought British Paints (India) Ltd. This marked the beginning of Lewis

Berger’s legacy in India. In the year 1973, D. Madhukar took over as the Managing Director. Sales

figures reached over Rs. 160 million by 1978. The 80s and the 90s saw the launch of many new

products such as emulsions and distempers. In 1991, UB group sold the company to Kuldip Singh

Dhingra (Chairman) and Gurbachan Singh Dhingra (Vice Chairman). Mr Subir Bose took over as

Managing Director on 1 July 1994. Mr Bose retired on 30 June 2012, handing over the company to

Mr Abhijit Roy, the current managing director.

There are seven manufacturing facilities in India and more than 85 depots, several regional & area

offices, besides four facilities overseas. It has a workforce of over 2500 employees and a countrywide

distribution network of 15000 plus dealers. Gurbachan estimates that since 1991, the market cap of

Berger Paints has risen 2,200 times to Rs 18,072 crore as of May 3, 2016. The company, established

in 1923, is favoured by both domestic and foreign institutional investors who have taken its stock

price up from Rs 44 on March 31, 2011 to Rs 244.5 on March 31, 2016—a compounded annual

growth rate of 41 percent.

24
Company Philosophy:

An effective corporate philosophy helps a company develop a certain corporate culture, ethical

practices and strengthens the relationship between employers and employees. It also positions the

values of the company in the minds of others both within and outside of the organization. Your

corporate philosophy should give employees a starting point for the decision-making process, so they

are all operating on the same page. Developing a corporate philosophy gives you something against

which you can compare candidates for new positions, thereby helping you make hiring decisions

based on whether an individual will fit within your corporate culture.

Achievements:-

• No. 2 in decorative segment in India.

• Among top 5 decorative paint industry in Asia.

• Highest ever turnover in FY 2014-15 of Rs.4322 crores.

• Among top 10 paint brands in all over the world.

• Ranked as BRANDZ Top 20 brands in India.

• Highest ever annual growth of 22% in decorative segment in India.

25
Board of Directors:

Mr. Kuldip Singh Dhingra (Chairman)

Mr. Gurbachan Singh Dhingra (Vice-Chairman)

Mr. Abhijit Roy (Managing Director)

Mr. Subir Bose (member in the Board of the Company.)

Mr. Anil Bhalla

Mr. Gerald Kenneth Adams

Mr. Gurcharan Das

Berger presence in India:

26
Competitors:

Nerolac Paints:-

The company’s paint decors every third car in the country. It is the market leader in the industrial

paint segment supplying over 90% of the requirements and has planned to increase its presence in the

decorative segment through aggressive new product development and brand building. They are the

second largest company in India in the decorative segment with a market share of around 20%. They

are the leaders in powder coatings.

Range Of Product from Nerolac Paints -

1. Interior Paints- Impression 24 carat, Pearl emulsion, Lotus touch, Beauty silver

2. Exterior Paints-Excel rain guard, Excel mica marble, Excel everlast, Suraksa.

3. Wood care-Wonderwood 2k pu, wonderwood melamine.

4. Enamel-Impression enamel, Synthetic enamel HI gross, satin enamel

Asian Paints:-

Asian paints one of the largest paints company and manufacturer also provide wide range of

painting. Asian paints are the market leader in the paint India industry because of their sharp

leadership in the decorative paint segments. It is ranked as one among the top ten decorative coatings

companies in the world today. This is due to the strong brand quality. Asian paints offer very vast

variety of colours for our walls. Asian paints manufacturing and exporting decorative paints, emulsion

paints, protective coatings, industrial paints, and automotive paints.

27
Product from Asian Paints:-

1 Interior Paints - Tractor Emulsion, Premium Emulsion, Royale Luxury, Royale Shyne.

2 Exterior Paints - Ace Emulsion, Upex, Upex Ultima Exterior Paint.

3 Metal Finishes - Enamel Paint, Water Based Royale Luxury Enamel.

4 Wood Finishes - Hand Polish.

5 Water Proofing - Asian Paint Water Proofing Material.

Dulux Paints:

Dulux is an internationally available brand of architectural paint. The brand name Dulux has been

used by both ICI and DuPont since 1931 and was one of the first alkyd-based paints. It is produced

by AkzoNobel (formerly Imperial Chemical Industries) although the US markets are now served by

PPG. In Australia and New Zealand, the brand is produced by DuluxGroup, which was separated

from ICI as an independent company in 1998.

Range Of Product from Dulux Paints -

1. Interior Paints- Dulux Velvet Touch and Pearl Glow.

2. Exterior Paints- Dulux Weather shield Max and Sun reflect.

3. Wood and Metal Care- Dulux Super Satin and Super gloss 5 in 1

4. Wood Care- Dulux Advanced Water Based PU and Melamine.

28
Market shares of Decorative paints:

20%
20%

Berger Paint
Asian Paint

11% Nerolac Paint

ICI Paint
Other's
30%

19%

Market Share of Industrial Paints

Goodlass Nerolac Paints Ltd. Asian Paints (India) Ltd. Berger Paints (India) Ltd.
ICI India (Ltd.) Shalimar Paints Ltd. Others

17%

41%
8%

9%

10%
15%

In industrial segment Kansai Nerolac is the market leader with market share 41%, followed by Asian

paints with market share 15%.Berger paint is the third largest player in this segment.

29
COMPARISION OF INTERIOR PAINT PRODUCTS-

BERGER PAINTS ASIAN PAINTS NEROLAC PAINTS DULUX PAINTS

Silk Royale syrne Impression 24 carat Velvet touch

Easy clean Royale luxury Pearl emulsion Pearl glow

Rangoli Premium emulsion Lotus touch Gloss ready mix

Bison emulsion Tractor emulsion Beauty silver Super clean

COMPARISION OF EXTERIOR PRODUCTS-

BERGER PAINTS ASIAN PAINTS NEROLAC PAINTS DULUX PAINTS

Weathercoat allguard APEX duracast Excel rain guard Diamond exterior

Weather coat antidust Apex ultima Excel mica marble Weatherguard

maximum

Weather coat smooth Apex crosstex Excel everlast Weatherguard

Walmasta Apex pebbletex Suraksha Dulux accents

30
The above graph shows the comparative sales of Berger paints and its biggest competitor Asian

paints.The net sales of both the companies are given for last 5 years. In 2012 the net sales of Asian

paints is about 3 times as compared to Berger paints. Asian paint is the market leader wwith a market

share of 54% where as the market share of Berger paint is 17%. But after 2014 the growth of Berger

paints is above 20% whereas Asian paint has achieve a growth of 15%.In India the sales of Berger

paints is gradually increasing which can be seen from the above graph.

31
SWOT Analysis:

1. It has well established operations and supply chain throughout the

country along with 7 manufacturing units,85 depots, several C&F

units ,3500 employees and 15000 dealers.

2. It provides a very high quality of products and a big market space in

terms of both for sales and visibility.

3. The company has international presence, it has manufacturing units

in Russia, Nepal, Bangladesh and Europe.

Strengths 4. Berger paint is the top player in protective coatings for nuclear power
plants.
5. Its industrial and automotive paints are used by top automobile

company like Mercedes.

6. Green horizon is a initiative by producing eco-friendly products.

1. Dependence on decorative segment where competition is intense.

2. High level of leads found leading to negative publicity.

Weakness 3. Limited liquidity options.

4. Less premium alternatives

1. New products launches and innovation regarding to changing trends.

2. Strong growing potential in India owing to urbanization.

Opportunities 3. Business diversification.

4. Product diversification.

1. New entrance of companies and local companies.

Threats 2. Fluctuation of raw material price.

3. Stiff competition.

4. Changing Government laws.

32
Customer Profile:-

In paint industry there are two major segment one is decorative paints and another is industrial paints.

The decorative segment acquires 70% business of paint industries. So the major customer of paint

industry are end user or consumer.

Due to the growth of firms and market, marketing decisions makers have been removed from direct

contact with customers. Managers have had to turn to consumer research. They spend more money

in trying to learn who buys, How do the buy, when do they buy, where do they buy.

Business and academic researchers have invested much energy in researching the relationship

between marketing stimuli and consumer response.

Purchase decision:-

Once the alternatives have been evaluated, the consumer is ready to make a purchase decision.

Sometimes purchase intention does not result in an actual purchase. The marketing organization must

facilitate the consumer to act on their purchase intention. The organization can use a variety of

techniques to achieve this. The provision of credit or payment terms may encourage purchase, or a

33
sales promotion such as the opportunity to receive a premium or enter a competition may provide an

incentive to buy now. The relevant internal psychological process that is associated with purchase

decision is integration. Once the integration is achieved, the organisation can influence the purchase

decisions much more easily.

There are 5 stages of a consumer buying process. The problem recognition stage, meaning the

identification of something a consumer needs. The search for information, which means you search

your knowledge bases or external knowledge sources for information on the product. The possibility

of alternative options, meaning whether there is another better or cheaper product available. The

choice to purchase the product and then finally the actual purchase of the product. This shows the

complete process that a consumer will most likely, whether recognisably or not, go through when

they go to buy a product.

Other influences:-

Personality, motivation, knowledge, attitudes, beliefs, and feelings. Psychological factors include an

individual's motivation Consumer behavior is influenced by internal conditions such

as demographics, psychographics (lifestyle), perception, attitude and belief, while personal factors

include income level, personality, age, occupation and lifestyle.

AGE Above 35 year

Marital status Married

Income level Minimum 15000-20000 per month

Social class Upper class, middle class

34
ROLE OF PAINTER:-

In paint industry painter plays a vital role in deciding paint in case of decorative segments. During

paint the consumer contact the painter and the painter give them ideas about paint and paint brand.

Many of the customers are unaware about the paint its use and the process. So the painter influences

the customer to choose the brand.so the painter is said to be the REAL CUSTOMER in paint industry.

Painter is also called as the influencer in choosing paint brand.so Berger paint took an initiative to

attract the painters. There is a training centre named iTrain which gives training to the painters for

enhancement of their skills and to make them efficient. The training helps them to use the modern

methods in a efficient manner. This initiative attracts the painter to make customers to choose the

particular brand. Many companies also provide modern machines to the painters in a cheap price to

attract them towards their brand.

STP ANALYSIS:

Segment Middle class and upper class segment.

Target group Home owner, painters, dealers and industry users.

Positioning Fulfil your imagination with colours.

35
Marketing mix:-

Marketing decisions fall into four main controllable categories namely

• Product

• Place

• Price

• Promotion

Relating these factors with respect to Berger Paints

Product: Berger is committed to offer quality products that satisfy consumers’ ultimate desires from

paints with the help of state-of–art technology. Berger always believes in one step ahead in offering

new product to create more value for customers’ money. Berger outsmarts other competitors of the

market through its one step in advance policy and innovative market offers. Berger is trying to fill up

all holes of the market through offering a wide range of products to meet the needs (Premium to

Economy Paints) of different types of users and to solve the different types of functional requirements

(Industrial, Decorative & Marine). Due to shift in market growth trends Berger is trying to establish

itself in the economy segment of the paint market.

Place: - Another major component of marketing mix is place. During our visit at BERGER I was able

to include inventory, transportation, coverage, channel, logistics and market and market segments etc.

under these marketing mix components.

Differentiated market segment

Berger’s market segments are differentiated. They use different types of marketing mix for different

segments. Their product quality, advertisement, promotional techniques, price are high for upper class

customers. Again for the people of middle class on the basis of their income.

36
Distribution network

With Head Office in Kolkata the company manufactures and markets a range of decorative &

industrial paint products under various product brands and has it operations spread throughout the

length & breath of the country; with seven manufacturing facilities in India and more than 85 depots,

several regional & area offices, besides four facilities overseas. It has a workforce of over 2500

employees and a countrywide distribution network of 15000 plus dealers. The material is dispatched

from the depot in the name of the dealer

Price: -

In the paints industry price is the used only as a differentiator between the various segments in the

same product line. The prices of different brands in the same segment remain more or less similar,

with just a difference of 30 to 40 paise per square feet. Some of the specialty products, which are

not produced by all brands, may be priced at a higher price.

Promotion:-

Sales Promotion is an important component of marketing communications mix. It adds an extra value

to the product and hence prompts the dealer or consumer to buy the product. In a specific.

Sense, sales promotion includes those sales activities that supplement both personal selling and

advertising, and coordinate them and make them effective, such as displays, shows, demonstrations

and other non-recurrent selling efforts not in the ordinary routine

37
LITRETURE

REVIEW

38
Literature review:-

• Mowen and Minor, 2006 However, fundamental basis of consumer’s values of a brand is a

unique combination of Perceived quality and perceived price that influence pre purchase

behavior of a customer and revealed that evaluations, choice and behaviors are the

fundamental theme of customer’s perception regarding risk which is defined in the form of

uncertainty and consequences. Higher the level of uncertainty is, more the risk is perceived

and creates greater negative consequences.

• Perner (2008) stated that "Consumer behaviour involves the study of the processes which

Individuals, groups, or organizations perform to acquire products, services, experiences or

Ideas to satisfy their needs and wants and how these processes have impacted the consumer

and society"

• Hansen, 2004 “The buying behaviour is considered a very complex phenomenon because it

consists of a wide set of prior and after purchase activities" The buying process consists of

five stages. Starting from recognizing a problem or in other words, recognizing need and

wants that must be satisfied, the consumer then being to search for information related to that

problem or need. After evaluating alternatives, the consumer makes the decision to purchase

the most suitable alternative and the final stage comes after purchasing, when the consumer

evaluates the choice being made.

• East, 1997 Limited -decision making buying behaviour involves reasonable level decision

making and relatively low amount of information search in order to generate a purchase. An

example of this type can be the purchase of clothes. When someone can easily get information

on the product and its quality and spend short time in selecting the desired product.

39
• Lau 2006 in his article has mentioned that there are seven factors that influence consumers'

perception on certain brands. The factors are brand name, product quality, design, price, store

environment, promotion and service quality. As a whole these factors are taken into the basket

of brand image, product quality and product price.

• Rahmani Vahid, Tajzadeh Namin Aidin (2012) analyzed that the process of deciding over

(choosing) a brand may be influenced by situation and content. The findings suggest a

significant relationship between the variables “brand attitude”, “corporate attitude”, and

“product (cell phone) choice”. In addition, no significant relationship was found between

individual decision making processes (independent or mediated) and product choice.

• Serkan Aydin, Gokhan ozer, Omer Arasil, (2005) had focused on to measure the effects of

customer satisfaction and trust on customer loyalty, and the direct and indirect effect of

“switching cost” on customer loyalty. The findings of this study show that the switching cost

factor directly affects loyalty, and has a moderator effect on both customer satisfaction and

trust.

• Nasr Azad, Maryam Safaei (2012) states that there are many evidences to believe that

customers select their products based on brand name. The results of the study show that there

are some positive relationships between exclusive name and quality perception, between

exclusive name and word of mouth advertisement, between quality perception and fidelity,

between word of mouth advertisement and brand name and between brand name image and

brand name.

• Mehran Rezvani, Seyed Hamid Khodadad Hoseini, Mohammad Mehdi Samadzadeh

(2012) investigates the impact of Word of Mouth (WOM) on Consumer Based Brand Equity

(CBBE) creation. WOM characteristics such as, volume, valence, and source quality are

studied to find how intensely they each affect brand awareness, perceived quality, and brand

40
 association. The results suggested that volume and valence, two elements of WOM, affect

CBBE and no significant relationship between source type and brand equity was seen.

• Arvind Sahay and Nivedita Sharma (2010) focused on brand relationships are indeed

important for different categories of young consumers; second, to investigate the effect of

peer influence, family influence, and brand relationships on switching intentions amongst

young consumers; and third, to look at the impact of price changes on switching intentions in

the context of brand relationships. Researcher’s results suggest that young consumers develop

relationships on all brand relationship dimensions.

• Jonathan, Lee, Janghyuk, Lee and Lawrence, Feick, (2001) analyzed that moderating role

of switching costs in the customer satisfaction-loyalty link; and to identify customer segments

and to retain them. Thus the purposes of this paper are: to examine the moderating role of

switching costs in the customer satisfaction-loyalty link; and to identify customer segments

and then analyse the heterogeneity in the satisfaction-loyalty link among the different

segments.

• Shakir Hafeez, SAF Hasnu (2010) states that Customer satisfaction is a crucial element for

the success of all businesses. One of the biggest challenges for a market is how to satisfy and

retain the customers. This study is based on Mobilink’s prepaid customers. The findings

suggest that overall customer satisfaction and customer loyalty is comparatively low among

the customers of Mobilink.

• Ramakrishnan Venkatesakumar, D. Ramkumar and P. Thillai Rajan, (2008), confirms

that Brand loyalty and brand switching behaviour of the consumers are evergreen issues of

research and strategic importance to the marketers and academic researchers. The current

research aims to address the significance of product attributes in brand switching behaviour

through multi-dimensional scaling and results suggest that a set of product attributes trigger

the intention to switch the current brand.

41
• Ahmed Alamro, Jennifer Rowley, (2011) explored that there are 11 antecedents of brand

preference; these can be theoretically clustered into three groups: awareness antecedents such

as controlled communication (advertising), and uncontrolled communication (publicity, word

of mouth), image antecedents like service value attributes (price, quality), provider attributes

as brand personality, country of origin, service (employee + location), and corporate status

(corporate image, corporate reputation) and, customer attribute antecedents (satisfaction,

perceived risk, and reference group).

• Pecotich and Ward, (2007) an important element of a brand is the name and it has a potential

to contribute to the brand equity. In many research, it is accepted as a vital indicator of quality

and it affects consumers' quality perception, brand -name is an important cue that provides

identification and continuity in the market place"

42
Data Analysis

And

Interpretation

43
 Name of brands you buy;

Asian paints 45 45%

Berger paints 30 30%

Nerolac paints 15 15%

Others 10 10%

PREFERED BRAND

10%,

15%, ASAIN PAINTS

45%, BERGER PAINTS

NEROLAC PAINTS
OTHERS
30%,

Interpretation:

➢ 45% customers prefer Asian paints.

➢ 30% customers prefer Berger paints.

➢ 15% customers prefer Nerolac paints.

➢ 10% customers prefer other paints like ICI, Shalimar paints etc.

44
 DO YOU AWARE OF BERGER PAINTS:

YES 94 94%

CAN’T SAY 4 4%

NO 2 2%

AWARENESS
4%, 2%,

YES
CAN'T SAY
NO

94%,

INTERPRETATION:

➢ 94% customers are aware about Berger paints.

➢ 4% can’t say about it.

➢ 2% are unknown about Berger paints.

45
WHO INFLUENCE YOU TO BUY PARTICULAR PAINTS BRANDS?

PAINTER 25 25%

DEALER/RETAILER 40 40%

CONTRACTOR 20 20%

OTHERS 15 15%

INFLUENCER

15%,
25%,
PAINTER
RETAILER
20%,
CONTRACTOR
OTHERS

40%,

INTERPRETATIONS:

➢ 40% of the customers are influenced by the retailer.

➢ 25% of the customers are influenced by the painter.

➢ 20% of the customers are influenced by the contractors.

➢ 15% of the customers are influenced by other influencer like friend, family etc.

46
FACTORS INFLUENCING PAINT BRANDS:

PRICE 40 40%

COVERAGE AREA 30 30%

DURABILITY 25 25%

OTHERS 5 5%

FACTORS

5%,

25%, PRICE
40%,
COVERAGE AREA
DURABILITY
OTHERS

30%,

INTERPRETATIONS:

➢ Price is the main factor for 40% customers.

➢ Coverage area is the second factor affecting 30% of the customers.

➢ Durability is another factor affecting 25% customers.

➢ Other factors like smell, dust and strains protecting affect 5% customers.

47
WHY CUSTOMER CHOOSES BERGER PAINTS;

Coverage area 32 32%

Durability 28 28%

Price 20 20%

Easy to handle 12 12%

Others 8 8%

FACTORS

8%
12% Coverage
32%
Durability
Price
20% Easy handling
Others
28%

Interpretation:-

➢ The customer’s perception on Berger paint is they like it most for good at coverage area and

durability.32% customers choose it because of coverage area and 28% customer choose it

because of durability.

➢ Price of Berger paint products also affordable which is preferred by 20% customer.

➢ 18 % customers prefer it due to its features like easy cleaning.

48
 Contribution of each segment to total sales of Berger paints:-

INTERIOR EXTERIOR DAMP ROOF WOOD

PAINT(RS) PAINT(RS) PROOF(RS) TREATMENTS(RS) FINISH(RS)

23672000 20730000 940000 2650000 1060000

48% 42% 1.5% 6.5% 2%

MARKET SHARE OF EACH SEGMENT

2%
6.5%
1.5%

INTERIOR
EXTERIOR
48%
DAMP PROOF
ROOF TREATMENT
42%
WOOD FINISH

Interpretation:-

From the above analysis it can be interpreted that 90% of the total revenue comes from the sale of

paints both interior and exterior. The remaining 10% comprises of the construction chemicals and

wood finish materials.

49
Customer preference in interior paints segment:

Asian paints Berger paints Nerolac paints Dulux paints Others

32 24 12 8 4

41% 33% 12% 10% 3%

INTERIOR

3%

10%
Asian
12% 41% Berger
Nerolac
Dulux
others
33%

Interpretation:

In Bhubaneswar 41% consumer prefer Asian paints, where as 33% consumer choose Berger paints.

The two top brands have above 70% share in interior segment. Here other 30% customers choose

brands like Nerolac, Dulux, ICI, etc.

50
Exterior paints:-

Asian paints Berger paints Nerolac paints Dulux paints Others

30 22 11 13 5

39% 28% 12% 16% 4%

EXTERIOR

4%

16% Asian

39% Berger
Nerolac
12%
Dulux
Others
28%

Interpretation:

In exterior segment 39% customer prefer Asian paints.28% customer chooses Berger

paints.12%customers chooses Nerolac paints.16% customers choose Dulux paints.In exterior

segment Asian paint is the biggest competitor of Berger paints.

51
 CONCLUSION
&
RECOMENDATION

52
Conclusion:-

➢ From our research I can conclude that most of the respondents are aware of Berger paints.

Advertisement on television and newspaper is the main source of awareness of the product.

➢ Our respondents like the product mostly due to lower prices compared to other brands, the

quality of the product is also good at these prices and the product is in reach of customers.

➢ A very few share of respondents dislike the product and mostly give common reasons of

thickness, eco friendliness, durability and colour combinations available in the product which

makes the product non-valuable for them.

➢ Most of respondents buy the product once a year but our analysis shows that maximum of the

respondents are loyal to the product. Here we also conclude that the painter and the dealer are

the important influencer in paint industry.

➢ We found that the main factors which affect the customer most is price, coverage area,

durability etc. From the study we conclude that products and the company is well known

among the customers.

53
Recommendations:-

✓ A few more advertisements on Social Media can add on modern consumers for the products

✓ Improvement in durability, thickness and eco friendliness if needed to make it more valuable

can change the views of respondents about the product.

✓ A wide range of color combination is always appreciated by the customer. Company can add

new color combinations available in the Berger paints.

✓ Company can open new outlets of Berger paints, which can provide digital mixing of color

like other brands.

✓ Company can provide attractive offers and schemes for regular and new customers to for

diminishing the possibility of Berger paint customers opting some other brand.

✓ Another alarming factor is that nowadays Berger Paints decorative segment’s products are

giving less coverage as compared to earlier times. So steps should be taken to make the quality

of the paint better and thicker to satisfy the existing customers.

✓ Booklets consisting of various wall designs as well as different shades should be made

available to the householders from where they can chose which category or quality or design

will best suit their personality.

✓ Stalls should be given in front of the construction sites, so that when people come to see the

flats they have bought, they can be demonstrated with different kinds of wall paints and

texture designs. These prospects can be easily converted into successful sale.

54
Bibliography
and
References
:-

55
Bibliography

1. Marketing Management: A South Asian Perspective by Philip Kotler, Abraham Koshy, Kevin

Lane Keller, Mithileswar Jha

2. Consumer Behaviour :Leon G. Schiffman, Leslie Lazar Kanuk, S.Ramesh Kumar

3. Marketing Research: An Applied Orientation by Naresh K. Malhotra, Satyabhushan Dash

4. Advertising and Promotion by Keyoor Purani, George E Belch, Michael A Belch

5. Oglethorpe J. E., Monroe K. B., Journal of consumer affairs 28(2) (1994) 326-347.

6. Oliver R. L., Journal of Applied Psychology 62 (1977) 246-250.

7. Oliver, R. L., Journal of consumer satisfaction, Dissatisfaction and complaining behaviour

2(1989) 1-16.

8. Taormina, R. and Gao, J. (2013). Maslow and the Motivation Hierarchy: Measuring

Satisfaction of the Needs. The American Journal of Psychology, 126(2), pp.155-177.

Reference

1. http://en.wikipedia.org/

2. http://stockshastra.moneyworks4me.com/paints-indian-paint-industry-analysis-and-

research-report-2011

3. http://www.scribd.com

4. http://www.slideshare.net

5. http://www.bergerpaints.com

6. http://www.Equitymaster.com

56
 Questionnaire

Customer name- Contact No-

Address-

1. Status of the Building.

New painting Repainting

2. When did you last time paint your house?

Never

0-6 months

7months-2years

Over 2 years

3. What is the important factor in choosing paints?

Brand
Color shades
Price
Retailers
Painters
Others
4. Which brand do you more prefer & why?

BRANDS RESPONSE REASON

Berger paints

Asian paints

Nerolac paints

Dulux

57
5. If not Berger paint why?

6. Preview Required?

Yes No

7. Any service required by Berger paints India ltd?

Suggesting a skilled applicator.

Suggesting an authorized dealer for procurement of material.

Supervision of yours site by the company executive.

8. Any comments/complain regarding Berger paints service.

9. Why do you prefer Berger paints

Price

Coverage area

Durability

Easy to handle

Others

58