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PART ONE: ORGANIZATIONAL PART

1. INTRODUCTION 1.1 ORIGIN


The organization I was attached to for my internship was Berger Paints Bangladesh Limited. The attachment period was from March 9th to May 11th, 2002.

1.2 BACKGROUND
The Chittagong Factory: Jenson and Nicholson (Pakistan) Ltd., a subsidiary of the international Berger Group established a factory in Chittagong during 1970 to cater to the demand of the East Pakistan market with a capital outlay of Pakistan Rupees 4,033,700. The unit was set up to produce around only 1000 gallons of paint per day. It went into commercial production after the liberation of Bangladesh in 1972. The factory did not expand its capacity till 1985 as the paint market was growing very steadily. But after that it started to expand its business due to the very rapid growth of the market. Jenson and Nicholson Bangladesh Limited: In 1994, Berger had gone into a new venture of establishing a Double Tight Can Manufacturing Plant, named Jenson and Nicholson BD. Limited. Presently double tight containers with cap seals are being manufactured in the factory. Berger had been able to achieve cost savings and fight adulteration of cans by establishing this factory. The company also had future plans to operate the can factory to meet the demand of other customers on commercial basis in addition to meeting its own requirements. Moreover, the company had also invested in a Printing Unit, which has been completed. The Dhaka Factory: To meet the growing market demands and ensure smooth distribution of paints with lower transportation cost and minimum transit time, another plant was established in Savar in 1999. Most of the A-category 4-liter pack size paint, now, is produced in that factory.

2.

BERGER PAINTS BANGLADESH (BPBL): AN OVERVIEW

LIMITED

Berger Paints Bangladesh Ltd. (member of worldwide BERGER group), the only multinational paint company of Bangladesh, started its first plant at Kalurghat Industrial Area, Chittagong 25 years ago. Since then it has continued its efforts to be the premier customer-oriented company by providing the best quality, new state-ofthe-art products, and obviously the best after sales service. Utilizing its access to the groups highly developed international Research and Development facility, Berger has always been able to be one step ahead of the competition in providing the best quality and the best technology to the customer. As a result, Bergers contribution is 35% of the total paint requirements in Bangladesh paint market today. Through its Dcor Service wings located in Dhaka, Chittagong, and in 5 other depots, i.e. Sylhet, Comilla, Rajshahi and Bogra, Berger helps the customer in choosing the right paint. Bergers commitment to the Bangladesh economy and its drive for quality has led it to set up the first Double Tight Can manufacturing unit. To fulfill its role as a corporate citizen, Berger has sponsored Exterior-Interior, the first and only international interior design school in Dhaka to contribute in developing professionals in the field of interior design.

2.1 VISION
The vision of Berger is stated as:

Becoming Taka 2500 million company by 2006. Remaining as the benchmark in the paint industry by: Being an innovative and technology driven company. Consistently delivering world class products. Ensuring best customer satisfaction through continuous value added

services provided by highly professional and committed team.

Pursuing high-tech and capital intensive diversification.

2.2 COMMITMENT POLICY


According to Berger, its vision can be achieved through its Commitment policy. The policy is stated as:

We at Berger Paints Bangladesh Limited are committed to achieving total

customer satisfaction.

We commit to project ourselves as an ethical and socially responsible

company.

We commit to continue as the market leader through consistent sales growth,

increasing productivity and developing new products befitting consumer needs.

We shall ensure continual improvement in our operations through utilization

of our highly professional and dedicated team, proper process management and participation of our stakeholders.

We shall set measurable targets at appropriate stages and shall continuously

monitor them.

2.3 CLASSIFICATION OF THE PRODUCTS


2.3.1 Classification based on type:
The business or the products of Berger can be broadly divided into three major areas: 1. Decorative: The paints in this category are used for applying in walls, furniture, grills and steel. This category roughly includes

Enamels This is used in wooden structures, steel structures, concrete, asbestos etc. It is sometimes also applied in the walls in hotel, clinics, hospitals as this paint can be washed easily.

Plastic Emulsions This is applied in both interior and exterior walls. This type of paint gives a glaze, has an extremely smooth finish and is washable.

Distemper This is applied only in interior walls. This is less costly than the Plastic Emulsions, but it does not have a glaze and is less smooth than the Plastic paints. It is also non-washable.

Cement Paint It is especially made for applying in exterior walls. It is more durable.

Other types This consists of other exterior wall paints like Weathercoat which is more durable and costly than cement paints.

2. Industrial: The paints in this category are used for applying in machines, for other industrial purposes and for applying in swimming pools, tennis courts and roads. This category includes high performance coating paints and other protective coatings. 3. Marine: The paints in this category are used in ships, boats and other water based transports. This category also includes high performance coating paints and other protective coatings. The three categories of paints are promoted to the market under three brand names. Decorative is offered to the market under the brand name Robbialac, Industrial under the name "Jensolin and Marine under the name Seaborne. Some lower priced paints in the decorative category are also offered to the market under the brand names Parrot and Peacock.

2.3.2 Classification based on application:


The business of Berger can also be divided into two areas on the basis of application, which are 1. Primer: This is applied before the paint is applied. It helps the paint to stick firmly on the surface. It also protects the paint from moisture or fungus on the surface and helps the paint to last longer. 2. Finishing: This is the paint that is applied on the surface.

2.3.3 Classification based on the thinning of paints:


The paints can also be classified based on the thinning of paints. These are: 1. Water based: These types of paints have to be mixed with water for thinning. 2. Solvent based: These types of paints have to be mixed with solvents for thinning.

2.4 THE PRODUCTS


Berger offers a variety of products to the market. The list of products offered by Berger is given in the next page.
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Decorative Category
Finishing For interior walls 1. Luxury Silk Emulsion 2. Robbialac Acrylic Plastic Emulsion 3. Robbialac Synthetic Polyvinyl Distemper (SPD) 4. Peacock Synthetic Distemper 5. Parrot Synthetic Distemper (PSD) 6. Robbialac Plastic Emulsion Classic (From Color Bank) 7. Robbialac Luster Finish (From Color Bank) For exterior walls 1. Walmasta 2. Tartaruga (Textured wall finish) 3. Weather Coat 4. Durocem Cement Coating 5. Weather Coat Smooth (From Color Bank) For grills, steel structures 1. Robbialac Super Gloss Synthetic Enamel 2. Parrot Synthetic Enamel (PSE) 3. Robbialac Synthetic Enamel Gold (From Color Bank) For wooden furniture 1. Woodkeeper Primer 1. Robbialac Plastron Wall Primer Sealer

2. Flexible Roofing Compound 3. Robbialac Wood Primer 4. Robbialac Red Oxide Primer 5. Bison All Purpose Primer 6. Aqua-Safe (For drinking water tanks) 7. Silicone Water Repellent 8. Robbialac Damp Stop

Industrial Category
Finishing 1. Jensolin Apexior No. 1 (Boiler Composition) 2. Jensolin Apexior No. 3 (Boiler Composition) 3. Jensolin Chlorinated Rubber Paint) 4. Jensolin Epilux 4 Epoxy Enamel 5. Jensolin Bituminous Black Paint 6. Jensolin Stoving Enamel 7. Jensolin Epilux Flooring Compound 8. Jensolin Swimming Pool Paint 9. Jensolin Road Marking Paint 10. Jensolin Tennis Court Paint 11. Jensolin Tennis Court Finishing 12. Jensolin Epoxy Paint Jointing Compound Primer 1. Jensolin Red Lead Primer 2. Jensolin Zinc Chromate Primer 3. Jensolin Zinc Phosphate Primer 4. Jensolin Industrial Primer

5. Jensolin Wash Primer 6. Jensolin Epilux 4 Red Oxide Primer 7. Jensolin Epoxy Clear Lacquer 8. Jensolin Stoving Red Oxide Primer

Marine Category
Finishing 1. Seaborne Marine Enamel Paint 2. Chlorinated Rubber Paint Primer 1. Coal-tar Epoxy 2. Bituminous Black It is to be noted that, Bergers product line consists of approximately 600 SKU, which include variations within basic product groups. These are targeted to specific customers whose different requirements are governed by their needs.

2.5 THE COMPETITION AND MARKET SHARE


2.5.1 Competitors in the Decorative category:
In the Decorative category, Elite paint, Romana paint and Pailac paint are the main competitors of Berger. Before Berger started its marketing activities on a large scale, Elite had the largest market share. Now Berger has the largest market share with dwindling market share of Elite. The other paint companies operating in this sector are Roxy, Navana, Olympic, Pelican and Al Karim. Although Berger faces little competition in the premium paints category, it faces tough competition in the low and economical paints category. Al Karim, Romana and Elite are the main competitors in this category.

2.5.2 Competitors in the Industrial and Marine category:


Elite Paint is the main competitor of BPBL in Industrial and Marine paint business. Elite competes with almost all types of paints of Industrial and Marine. Now, Romana Paint is emerging as another competitor in these areas although its offering to meet

different needs is limited yet. But in immediate future it may become a tough competitor.

2.5.3 Market Share of the Paint companies


The present market share of the companies operating in this market can be seen from the following chart.

Berger 3% 6% 7% 2% 6% 44% Romana Elite Pailac Roxy 7% 13% 12% Olympic Al-Karim Navana Others

Figure 1: Market share of the Paint companies The figure clearly shows the market dominance of Berger. Elite is in 2nd place with a 13% market share although it is facing tough competition from Romana who has a 12% market share.

2.6 THE MANAGEMENT


Presently the Bergers entire operation includes 306 employees. The Managing Director is assisted by 8 Senior Executives who are heading different departments such as Sales, Marketing, Finance, Factory Operations, Planning, Raw Materials etc and help the MD to formulate the strategic plans and policies of the company. These executives in turn, are assisted by managers and officers who remain responsible for efficient execution of various tasks set by their Superiors.

2.7 THE DEPARTMENTS


Berger Bangladesh is not only increasing its production capacity, but also expanding by introducing new departments. Total activities are managed by 10 functional areas, which are listed below: 1. Marketing 2. Sales Decorative 3. Sales Industrial and Marine 4. Planning and Materials 5. Production 6. Research and Development 7. FG(Finished Goods) Planning and Distribution 8. Finance 9. Systems 10. MDs Secretariat Major functions, responsibilities and other necessary aspects of the functional areas are described below.

2.7.1 The Marketing Department:


Until 1990, the business practice of Berger Paints Bangladesh Ltd. was very much conservative in terms of market presence. In 1993, the marketing department was introduced due to its growing need and importance. Thereafter Berger has been growing very rapidly in terms of market share and sales growth. In 1994, just after the year of launching marketing department, sales growth was 34%. Presently, Berger is enjoying 48% share of the total paint market and has established itself as the champion of the market by offering the best quality paint and providing the maximum value to the customers for their money. Although three categories comprise the total business of Berger, contribution of the Decorative sector is approximately 85% of the total turnover. Because of its contribution, Decorative is considered the main business of the organization and gets

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more priority. Thus the marketing department focuses mainly on the decorative paints. 2.7.1.1 STRUCTURE OF THE MARKETING DEPARTMENT: The marketing department is composed of 5 people. It is headed by the General Manager Marketing, Sales (D) and Distribution. Under him is the Marketing Manager, who has an Assistant Product Manager under him, who in turn has a product officer reporting to him. The secretary of marketing assists the personnel of the marketing department in their activities. The organogram of the marketing department is given below.

General Manager Operations Secretary

Marketing Manager

Assistant Product Manager

Product Officer

Figure 2: Organogram of the marketing department 2.7.1.2 MARKET SEGMENTATION: For segmenting the total paints market, Berger uses more than one basis. Initially, the total business of the company is segmented on the basis of customer types. Berger segments the total market as Decorative, Industrial and Marine. Then, Decorative group is further segmented on the basis of surface types- wooden, metal and concrete. Again, sub-class of the total paint market is sliced on the basis of Internal and External surface category. Lastly price segmentation is used to classify the market into Premium, Regular and Economy. 2.7.1.3 THE MARKETING MIX:

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Product:
Berger is committed to offer quality products that satisfy consumers ultimate desires from paints with the help of state-ofart technology. Berger is trying to fill up all the 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 and Marine). Berger Bangladesh offers approximately 600 SKU including variations within basic product groups. Due to shift in market growth trends Berger is trying to establish itself in the economy segment of the paint market. In this segment competition is becoming more intensified than regular and premium segments. To continue the dominance in the paint market, achieving substantial amount of market share in the economy segment is very much crucial for Berger to maintain its image as champion of the market. Bergers future position depends to a greater extent on Parrot Synthetic Enamel and Parrot Synthetic Distemper, the offerings in the economy segment.

Price:
Generally Berger follows cost based pricing method. After calculation of the total manufacturing cost (direct and indirect research cost, direct and indirect labor cost and manufacturing overhead cost) and adds 20% gross profit to get the price of the product. But this is not the rule of thumb in pricing the products. Competition based pricing policy is also followed as well, because of the increased competition in the paint market.

Place/Distribution:
Berger follows the direct distribution policy to make the paints available in the market. Berger distributes paints through its own sales force. Distribution activities of Berger in all over Bangladesh are covered by 7 strategic depots. One-level channel is mainly used by Berger Paints for distributing its Decorative products, but in some cases two-level channel is also used. Zero-level channel that is personal selling is also used for grasping the project offers. The three levels of distribution of Berger can be seen in the following diagram.

SALES DEPOT OF BERGER

DEALERS 12

DEALERS

CUSTOMERS

Figure 3: Channel level In the one-level channel, Bergers sales force delivers paints to the dealers from where ultimate users purchase paints. In the two-level channel, some major dealers dominate the paint market in the region where they are located. Small dealers collect paints from the large-scale dealers. Ultimate users then buy paints from these small dealers.

Promotional Mix:
Advertising: Electronic media: The paints of Berger are promoted through electronic media, mainly in BTV and the Cable Channels. Through radio, Berger is trying to reach those potential targets that are not easily reachable by BTV or the satellite channels. Print Media: Berger has also taken the initiative to attract these peoples attention through print media to some extent. Moreover, brochures, shade cards and other paint related information in printed form are delivered to the dealers, potential customers, painters and other targeted potentials to make them more interested toward Bergers products. Billboard: Berger also places billboards in strategic locations to grasp the target markets attention and to increase the frequency of exposure toward Berger products while they are on the way to their destinations. Sales Promotion: Berger offers different types of incentives for consumers and traders of the paint market. Trade promotion occurs more frequently than consumer promotion, because success in this market highly depends on the traders involved in channeling the paints from producers to consumers. Traders are highly influential in the market because of long purchase cycle time (app. 3 years) of paints, technical aspects of the paints and etc. Moreover, painters, end user of paint, play important roles in purchase decision of the paint. Incentives offered to different groups that have impact on paint purchase decision by Berger to stimulate sales are discussed below: Consumers:

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Gift items With a view to boost up sales various gift items are offered to consumers for buying Berger paints. Sometimes, gifts are offered for buying more volume. Traders: Discount on MRP: In the decorative business category, paints are offered to the dealers at 5% discount on MRP of the all products. Moreover, additional percentages are offered for the PSE and PSD to dealers to motivate the dealers to sell more of these two brands. Credit Facilities: Dealers of all over the country except Dhaka and Chittagong are entitled to enjoy 30 days credit facility provided that these dealers are registered. Dealers of these two areas enjoy the credit facility of 37 days for all products of the Company. In case of PSE and PSD, the most challenging brands for Bergers future, dealers of Dhaka are allowed to enjoy the credit facilities for 60 days. The rationale behind this exceptional credit facility is to enjoy additional sales volume through increased market penetration. Dealers meet: For creating a loyal, motivated dealer group Berger arranges dealers meet in which some exclusive dealers are invited for 3 / 4 days in a nice location. And the total program is sponsored by Berger paints. Credit note: If dealers buy more than a specified volume in one invoice they are rewarded with exemption of certain percentage on total monetary value of invoice. The amount exempted is deducted during the cash payment of amount due to him or at the next purchase. TOC: Each registered dealers of Berger has to achieve a yearly sales target set by Berger to enjoy TOC (Turnover Commission), a percentage on total yearly sales. If a dealer is able to achieve the target set, money based on performance is disbursed to that dealer as a reward of satisfactory performance. If the dealer is not able to achieve the sales target, dealers also enjoy TOC facilities but at a lower rate. Co-operative Ad: Berger facilitates the dealers with a signboard displaying the identity of the outlet.

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Shop helpers: Cash incentives: To create the shop helpers favorable attitude towards Berger products, cash incentives are offered to them. These shop helpers try to induce customers to buy the Berger products. Personnel Selling: To collect orders from construction projects, the sales force visits all newly constructed buildings or structures. Sales personnel frequently collect information about where project works will be conducted and who is the responsible person of the project and other relevant information regarding buyers probable needs. Then they visit the site and try to convince the authorized person to buy Berger Paints. If they need more technical information then they discuss with R&D to provide necessary information to the prospective customers. Publicity: Some publicity items undertaken by Berger Paints are as follows.

Young Painters Art competition Sponsoring Delta Break Housing Fair

Public Relations: The public relations activities undertaken by Berger are as follows. Sales personnels visit to dealer Communicating with the initiators of different projects. Communicating with various groups (engineers, architect etc.) related with paint business by the Prolink division of Marketing Department. 2.7.1.4 MARKET RESEARCH AND RETAIL AUDIT: To know the market scenario of the paint market Berger conducts different studies with the help of professional research firms. Most of the market studies aim to get consumer insight, know the competitors position in the market and so on. Retail audit also takes place to know the retail off take, shelf presence of the brands, traders purchase cycle time etc. The culture of conducting market study through in-house personnel is very much uncommon.

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2.7.2 The Sales Department (Decorative)


The sales department (Decorative) looks after the sales of the paints in the decorative category. Seven strategic depots manage the sales activities all over the country. The depots are in Dhaka, Chittagong, Sylhet, Bogra, Rajshahi, Khulna and Comilla. Activities of all seven strategic depots are monitored and controlled by the Sales (Decorative) Office situated in the corporate office. Time to time sales review meeting with the representatives of all the sales depots is conducted to evaluate the current sales position of the company, discuss the reasons for current success or failure, determine the next action plans to strengthen the position of the company, kinds of incentives offered to boost up sales etc. 2.7.2.1 STRUCTURE OF THE SALES (DECORATIVE) DEPARTMENT This department is composed of 39 people. It has 1 executive (the head of the department), 4 managers, 3 assistant managers and 30 officers. The department is headed by the General Manager - Marketing, Sales (Decorative) and Distribution who is assisted by the General Sales Manager Decorative. There is one National sales manager for Dhaka who looks after the sales activities of the Dhaka division. The other four areas are Chittagong, Sylhet, the Northern and the Southern Zone which is looked after by Area Sales Managers. The organogram of the Sales (Decorative) department is given in the next page.
General Manager Marketing, Sales (D) and Distribution National Sales Manager (D) Dhaka General Sales Manager Decorative Secretary - Sales

Assistant Manager Admin Dhaka


Zone I Zone IV

ASM Dec. Dhaka

Zone II

Zone III

Area Sales Manager Ctg and Comilla

Area Sales Manager Sylhet

Area Sales Manager Northern Zone

Area Sales Manager Southern Zone

Prolink and Color Bank Officer

Sales and Support Officer

Sales Officer 16 Prolink and Sales Assistant and ASM Sales Zone Color Bank Zone ManagerSupport Zone Dec. Zone I IV II Officer Officer Officer Dhaka III Admin Dhaka Sales Comilla Officer DIC Sales Assistant Support Manager Sales OfficersDec Officers Sales Sales and Sales Sales Officer Sales DIC DIC Store Officers Officers Officers Khulna Bogra Rajshahi

Figure 4: Organogram of the Sales (Decorative) Department 2.7.2.2 MAJOR FUNCTIONS OF THE SALES (DECORATIVE)

DEPARTMENT: The major functions of the sales (decorative) department are:

To prepare National Sales Budget detailing sales value, volume and growth and translates it into monthly and half-yearly budget. To express the national sales budget in terms of Sales Area, Zone, Product and Color Shade. To develop sales strategies to achieve sales budget. To respond to complains of customers efficiently and take necessary action(s) for arriving a favorable solution to the problem. To maintain relationship with existing dealers of the company and develop new dealers. To suggest marketing department to introduce incentive programs to enhance sales volume. To scan current market condition including competitors current and probable future action pattern, customers preference, dealers business situation etc. To monitor sales position of the company and initiate necessary actions if any deviation exists. To arrange sales review meeting on a timely basis. To ensure smooth distribution of paints. To train the sales personnel to handle customers efficiently.

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2.7.2.3 TRANSACTIONS WITH DEALERS: Existing dealers enjoy credit facilities for a specific period with a ceiling (specific amount). Sales people travel to current and prospective dealers for collecting orders. Moreover, dealers can place orders to the sales officer of a respective area to deliver the specific quantities including color shade. Sales people deliver the paints to the dealers outlets provided that dealers requirements are available in finished paints inventory. If finished goods inventory is inadequate to fulfill the order, then, they reschedule the delivery order consulting with dealers and take actions to fill up the inventory gaps with safety stock immediately. Registered dealers who are entitled to get credit facilities must have amount outstanding including latest invoice value within the credit ceiling If dealers credit limits are exhausted, dealers need to deposit the amount above the limit in cash. If dealers are not registered with the Berger, all transactions are made in cash. In case of new dealers, authority evaluates their previous business transactions. If the prior business relationship with unregistered dealers is satisfactory enough, then, Berger authority may allow them to enjoy credit facilities. Credit limit for each dealer is decided by the sales authority based on their previous years business performances regarding Berger products. 2.7.2.4 INCENTIVES FOR THE SALES PERSONNEL: Sales Department offers exclusive rewards for those sales personnel who reach or cross the set sales target. Berger sets a yearly sales target for each sales personnel and, then, this target is translated into half-yearly, monthly budget. Target is also expressed in terms of products and monitored on a monthly basis. Higher authority of Sales Department takes corrective measures, if necessary, and guides the sales personnel in their journey regularly. To reinforce the activities of sales personnel, different monthly, quarterly and yearly incentive programs are offered exclusively for sales personnel.

2.7.3 The Sales (Industrial and Marine) Department

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This department looks after the sales of the paints of the Industrial and the Marine category. These business groups contribute 15% (app.) of the total turnover of the BPBL. These business groups are growing now although at a lower rate than the decorative group. All paints of these groups are offered to the customers under two brand names, that is, Jensolin for Industrial and Seaborne for Marine paints. 2.7.3.1 STRUCTURE OF THE SALES (INDUSTRAL AND MARINE) DEPARTMENT This department is headed by the General Sales Manager Industrial, Marine, PreTreatment Chemical (PTC) and Protective Coating (PC) who directly reports to the Managing Director for the activities and performances of the department. GSM is assisted by two managers, Manager- PTC and Area Sales Manager- Marine and 5 officers. The organogarm is given in the next page.

General Sales Manager Industrial, Marine, PTC and PC)

Secretary Sales

Manager - PTC and PC

Area Sales Manager Marine Dhaka

Sales Officer PTC and PC

Industrial and Marine Chittagong Officers

Industrial Dhaka Officers

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Figure 5: Organogram of the Sales (Industrial and Marine) Department 2.7.3.2 SPECIAL FEATURES OF THE INDUSTRIAL AND MARINE SECTOR: There are some features of the Industrial and Marine sector, which are different from the Decorative sector. The features are:

All customers are institutional Direct marketing (Personal Selling) is the only mean to promote the brand. More resistance power than decorative products. These two categories include high performance coating paints and other protective coatings. Lower discount rate than decorative paints. 2% discount on MRP for Industrial paints and 3% for Marine paints are offered, whereas discount rate is 5% for decorative paints. Number of customer is limited. But consumption per customer is much higher in this area than decorative area. Incentives are rarely offered to the customers. Sometimes, volume incentives are offered to the regular customers when they buy in bulk quantities. Institutional customers while buying decorative paints, buy decorative paints through Industrial and Marine sales personnel.

2.7.3.3 INDUSTRIAL PAINTS: Only in Dhaka and Chittagong sales area, individual sales personnel promote the paints to the current and potential customers directly. In other areas, sales people of the Decorative department communicate with prospects and collect order and place it to the concerned department of industrial paints. Some dealers in Dhaka and Chittagong are involved with the trade of industrial paints in smaller quantities. Type of Customers: Industrial Customers are of two types: 1) OEM (Original Equipment Manufacturers): This group buys industrial paints from Berger most frequently.

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2) Protective Coating (PC): This group buys the industrial brands infrequently. Most of their consumption is for maintenance. 2.7.3.4 MARINE SECTOR Like Industrial Paints, individual sales personnel are engaged in Dhaka and Chittagong to communicate with the customers. All products are promoted in the market under Seaborne brand name. Most of the transactions (large volume) take place through personal selling although 12 dealers in Dhaka and 7 dealers in Chittagong offer the Marine Paints to the customers. Business Pattern in Dhaka and Chittagong: 80% of total turnover of Dhaka for Marine is sold through dealers but in Chittagong it is only 20% of total marine sales. This is because a considerable amount of the paint is sold directly to the ship-breaking dockyard. The operators in the dockyard need a lot of paint for the ships before it is broken down. The paints are sold over here at a lower price. Peak season varies in this segment in different areas because of the different timing of customer needs. In the rainy season fishing boats are very much active in fishing in the deep sea in Chittagong. So, in Chittagong rainy season is the most suitable time for the Marine paints business. On the other hand, reverse situation emerges in other areas such as Dhaka. In this region passenger boats are the main customers of this paint. In the rainy season the business of the passenger boats decrease, thus resulting in less sales of the marine paints. 2.7.3.5 CREDIT FACILITIES Business relationship with BPPL is the most important criteria for customers to enjoy credit facilities. New customers have to pay cash or advance payment. But MNCs, Government Organizations and other regular customers enjoy 60 days credit facility.

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2.7.4 The Planning and Materials Department


The main responsibility of this department is to collect raw materials at the right time from the right vendors at the right price and at the right quantity. Moreover, this department also purchases required machinery and other stationery necessary for the organization. 2.7.4.1 SRUCTURE OF THE DEPARTMENT This department is headed by the General Manager Planning and Materials, who directly reports to the Managing Director. The GM is assisted by two Procurement Officers and two Planning and Materials Officers. The organogram is given below.
General Manager Planning and Materials

Secretary

Procurement Officers

Planning and Materials Officers

Figure 6: Organogram of the Planning and Materials Department 2.7.4.2 FUNCTIONS OF THE PLANNING AND MATERIALS DEPARTMENT: The functions of the department are stated below:

Finding out material and machinery sources: This department continuously scans the internet, literatures and other related publications to identify new sources from where raw materials and machinery can be collected. Communicating with the sources: They communicate with the sources and collect information regarding price, quality, terms and conditions of payment and other relevant matters about raw materials and machinery.

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Buying raw materials, machinery and other necessary items from internal (domestic) and external sources. Developing new vendors: When raw materials source is very much limited, sometimes buyers have to accept unfavorable terms and conditions because of not having sufficient bargaining power. To gain adequate bargaining power this department tries to develop new vendors in areas where they are in a disadvantageous position. Finding out substitute raw materials Sending the sample to R&D for assuring the quality of the raw materials. Providing support to the Marketing Department in developing container. Providing new ideas regarding raw materials, packaging, and machinery. Supporting R&D to make new formulations. Suggesting maintenance department for doing their jobs efficiently. Buying gift items for marketing department. Buying shade cards for Marketing Department from India and Singapore. Collecting color bank materials from Italy. Buying raw materials for Jenson and Nicholson.

2.7.4.3 FORECASTING Determination of required materials After establishing the sales budget of the upcoming year, the FG planning department determines the current finished goods stock level according to product categories. After evaluation of closing stock and desired stock level, it then decides the amount of various product categories to be produced in the next year. The amount decided is then translated into monthly, weekly and daily production volume target. The FG Planning department then submits the production plan to the production department. The Planning and materials department then prepares a forecast for the department based on the next years production requirement. To prepare a yearly forecast they need to determine their expected closing stock for the current year based on production target and desired safety stock level for each month. The Planning and materials department also translates their yearly forecast into monthly forecast.

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Determination of price Forecasting the prices of raw materials in the domestic and international market take place based on historical data, market trend and prior experiences. For forecasting purposes lending cost of raw materials is determined. Lending cost is calculated by adding the C&F price of the materials and other expenses incurred to place the raw materials in the store house of factory (Transportation cost, loading and unloading cost and other cost, if any). On the basis of lending cost, prices of raw materials for the next year are forecasted.

2.7.4.4 SOURCES OF RAW MATERIALS

BPBL COLLECTS NECESSARY RAW MATERIALS FROM DOMESTIC LIMITED. AND FOREIGN SOURCES ALTHOUGH UTILIZATION OF DOMESTIC SOURCE IS VERY MUCH

Most of the raw materials are imported from Netherlands, Germany, UK, Singapore, Taiwan, Australia, India, Norway and Canada. Name of the organizations from where most of the raw materials are collected are:

Swiss Color CIBA Rivertax BSF

Unie Cavard Bayer Thor chemicals. TATA

2.7.5 The Production Department

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Berger has 2 production facilities in Bangladesh. One is in Dhaka and the other is in Chittagong. The production department consists of people working in these two factories. The personnel performing the administration activities of the two facilities are different, but there is one head who looks after the two facilities. 2.7.5.1 THE CHITTAGONG FACTORY The Chittagong factory is headed by the General Manager Manufacturing, who directly reports to the Managing Director. The GM is assisted by 2 Managers, 5 Assistant Managers, 18 Officers and 62 workers. The department sometimes has some casual or temporary workers working in it when the need arises. The organogram is given below.
General Manager Marketing, Sales (D) and Distribution General Sales Manager Decorative Secretary-Sales National Sales Manager (D) Dhaka
Assistant Manager

Area Sales Manager Ctg and Comilla

Area Sales Manager Sylhet


Sales Officers

Area Sales Area Sales Manager Manager Northern Zone Southern Zone

Admin Dhaka
Zone I Zone IV

ASM Dec. Dhaka

Assistant Manager Sales - Dec Sales and Support Officers

Zone II Sales Officer

Zone III

Comilla DIC Sales Officer

Sales Officers

DIC Bogra Sales and Store Officer

Sales Officer Rajshahi Sales Officers

DIC Khulna Sales Officers

Prolink and Color Bank Officer

Sales and Support Officer

Figure 7: Organogram of the Chittagong Factory 2.7.5.2 THE DHAKA FACTORY

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The Dhaka factory is also headed by the General Manager Manufacturing. He is assisted by 1 Plant Manager, 1 Production Manager, 10 Officers and 43 staff and Workers. The organogram is shown below.
General Manager Manufacturing

Plant Manager Dhaka Factory

Production Manager Dhaka


Assistant Manager R&D

RM Officer

Distribution Officer

Systems Officer

Administration Officer

Quality Control Officers

Production Officers

Staff & Workers

Figure 8: Organogram of the Dhaka Factory 2.7.5.3 ADMINISTRATION IN THE FACTORIES:

Functions of the department:


Major functions of the section are described below:

Casual Recruitment Checking the daily attendance of officers and workers Preparation of daily working hour report including normal and extra hours, machine wise. General Services Maintenance of canteen Disciplinary actions Leave

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Casual worker recruitment procedure


If any section requires casual workers for unusual work load, the person who represents the section will need to fill up the casual workers requisition form one day prior to the specified day and submit the form to the head of the administrative section. If the administrative section thinks that the reason for recruiting casual worker(s) is valid, the proposal is accepted. The people who are known to the concerned person of the administrative section or were engaged in work earlier get priority in the recruitment. Payment system of casual workers is on a weekly basis.

Labor Welfare and Benefits:


For the welfare of the workers Berger paints has taken a number of steps. Moreover, after every two years the Trade union leaders with their charter of demands meet with the management of Berger. Welfare facilities and benefits offered by Berger are stated below:

WELFARE

Food facilities Primary treatment Safety instruments Dress Cultural program Annual picnic Education allowance for the meritorious children of the workers which is Tk. 450 per year and Tk. 650 for buying books. Winter jacket

BENEFITS

House rent Conveyance

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Medical allowance Incentive for extra production Profit bonus Target bonus Festival bonus

Training Programs:
a) Industrial relations development training b) On the job training c) Training given in IRC (Industrial relations center)

Disciplinary Actions:
Administrative section can take disciplinary actions against workers and officers for violating any kind of rules and regulations applicable in the factory premises as per disciplinary action policy set by higher authority. Reasons for disciplinary action are stated below: Late coming Absenteeism Superiors claim Daily and monthly operational report

2.7.5.4 RAW MATERIALS SECTION According to the production plan, production department informs the Raw materials section about its raw materials requirements. Raw materials section then transmits the message of its raw materials requirement for the whole month to the Planning and Materials department, which takes necessary action to buy the raw materials in an efficient manner. Raw materials section plays the necessary role to deliver the raw materials to the production facility. In Berger more than 230 types of raw materials are used for manufacturing paints. In the broader categorization, they are as follows:

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Pigments and fillers Pigment gives color and opacity. Fillers are not true pigments. It is used to reduce cost and to increase pigment percentage in paints. How much filler can be used with pigments depends on which color needs to be produced. Different types of pigments are used for developing different colors. Resin/Binder and polymer This group of raw materials provides adhesive power to paints, binds all raw materials together and creates a layer on the surface. Solvents This raw material group helps to dissolve Polymer and Resin. It also controls the viscosity of paints. Additives These are not the main ingredients of paints. Different additives perform different functions. Preservative is used to reduce the perishability of paints, Dryer is applied for drying the paints and Defoamer acts as a foam removing agent.

Moreover, the Raw materials section provides samples to R&D for testing the quality of the raw materials, if it is bought from domestic sources. If there is no problem regarding the quality of raw materials, this section informs the test result to the Planning and Materials department. Then the Planning and Materials department goes ahead in buying the Raw materials. If the raw materials are imported from abroad and the quality of the materials do not match with the desired quality level, Raw materials section takes the necessary actions regarding materials as per the instruction of the Planning and Materials department. If the raw material quality is not acceptable, this section informs the Planning and Materials department to reject the raw material. This section is also responsible to maintain and store raw materials efficiently so that material wastage can be reduced. 2.7.5.5 QUALITY CONTROL: The main function of the Quality Control is to ensure the quality of the different categories of the product produced in the factory. They have to evaluate the quality of
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the paints produced against the standards established R&D. They are responsible for ensuring quality consistency of the paints. Other Functions of QC: Other functions of quality Control are listed below:

Process auditing Issued raw materials auditing Filling weight checking Stability checking of distemper Complain handling Product reprocessing

2.7.5.6 DISTRIBUTION: The distribution sections of the factories are responsible for distributing finished goods from the factory to the depots. It has to keep close interaction with the production section and the sales department. Initially the distribution section of the factory collects distribution requirement for a certain period from FG Planning, Corporate office. It then transmits the documents, instructing the production section to produce the required goods. After production, goods produced are transferred to the distribution section. During the placing of the finished paints in the store of the distribution house from where the paints will be dispatched, these paints are placed in a way so that FIFO method can easily be followed.

2.7.6 The Research and Development Department


Research and Development is playing a very vital role in the operations of Berger Paints Bangladesh Ltd. Their continuous dedicated efforts help the organization to offer different types of products ranging from economy paint such as PSE and PSD to premium brands of paint such as Weather Coat to meet the different tastes of different users.

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The overseas link-up has enabled the R&D personnel to induct a good number of new products like Luxury Silk, Durocem, Weather Coat, and Roofing Compound - all of which are specialized products. It is the only paint manufacturing company having Color Computer facilities for accurate color matching of different colors of different product lines. At the beginning, Quality Control and Research and Development worked as a functional unit. Now, they are working separately although QC works under the assistance of R&D. The R&D team is a part of the personnel of the Production team. 2.7.6.1 FUNCTIONS OF R&D: Major functions of the R&D are described below: Product development:

Two types of product development activities are performed by R&D. 1) New product development 2) Improvement of existing product Cost reduction exercise:

Through retaining existing quality, R&D tries to reduce the cost of production through different types of formulations. Also they try to reduce cost through using less expensive materials and changing the production process. This type of project is initiated when the accounts department shows to the upper management the declining trend in the contribution of a product. Quality improvement:

R&D tries to improve the quality of the paints, if the organization thinks that quality is not up to mark. In addition, if there is any provision to improve the quality of the product further without substantial change in price, R&D takes steps in this regard.

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COMPETITORS PRODUCT STUDY


Another important function that R&D does continuously is the comparative study of the competitors paints with Bergers paints. R&D evaluates the various parameters of the paints of the competitor and Berger. Through the comparative study, R&D benchmarks the best attributes of its competitors paints and then tries to upgrade itself to the set standard if it lags behind. Complain Handling

Sometimes, Berger faces complain regarding its paints. For ensuring greater customer satisfaction and retaining the organizations image, R&D personnel physically visits the site, tests the sample of the paint used and tries to provide a solution to the problem. Providing Customer Service by creating the desired shade

Sometimes customers require a specific color shade, which is not available in the shade card. In this situation, R&D tries to develop the color shade ordered and if possible, deliver a sample to the customers. If the customer is satisfied with the developed product with the specific color shade, R&D fixes the formulation of this color shade and communicates with the relevant section in this regard. Training the personnel of different departments

R&D personnel train the sales people about product features, ideal condition of applying paint on surfaces, surface preparation procedures and other aspects related with painting. They help the marketing department gain knowledge by briefing about the product and the technical aspects of paints. R&D also helps the Marketing Department in developing shade cards, product manual and analyzing the cost of paints. Moreover, they educate the painters, distributors and dealers regarding the different technical aspects of the product.

2.7.7 FG (Finished Goods) Planning And Distribution Department


Prior to the structured development of the FG Planning and Distribution department, Berger paints followed the Sales concept. In those days goods were produced
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without estimating the market demand precisely. At that time, the sales flow started from the organization without considering the external aspects of the market. The flowchart given in the next page shows the flow of goods that was followed earlier.
Raw Materials Section Inside of Organization External Parties (Market)

PRODUCTION

SALES

DEALERS

CUSTOMERS

System Section

SMALL DEALERS

Figure 9: Distribution Flow (Initially) Now the organizations business philosophy has turned into Marketing Concept. Every year a sales target is established by considering the current market size, market growth rate consumers preference trends, governments plan to develop infrastructure, foreign aid available for socio-economic development of the country, trade policy of the government and some other issues related with the business of the organization. Then the total yearly target is broken down into monthly target. Based on this target the production department goes ahead with its production. The philosophy followed at present is shown below.

1. MARKET
MARKET DEMAND SALES TARGET

2. COMPANY
ORDER TO FG PLANNING

3. MARKET

PRODUCTION

CUSTOMERS

DEALERS DEALERS

SALES DEPOTS THROUGH FG PLANNING/ DISTRIBUTION DEPARTMENT

Figure 10: Distribution Flow (Currently)

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2.7.7.1 STRUCTURE OF THE DEPARTMENT The department is also headed by the General Manager Marketing, Sales (Decorative) and Distribution. He is assisted by 1 Distribution Manager and 1 Finished Goods Planning Manager. The organogram is shown below.
General Manager Marketing, Sales (D) and Distribution

Distribution Manager

Manager FG Planning

Figure 11: Organogram of FG Planning and Distribution Department 2.7.7.2 MAJOR FUNCTIONS: The ultimate objective of this department is to ensure the delivery of the right quantity of finished paints to each depot at the right time so that over stock and under stock situation in every depot can be avoided. To perform the responsibility assigned to the department it needs to perform the following functions.

To monitor the current stock position in the depots To place order to the factory To know the last months sales and sales month to date To place additional/minus order if necessary To inform the expected delivery date of paints from factory. To assist production department in developing production plan so that utilization of the resources - men, machines, materials and etc- can be optimized.

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2.7.8 The Finance Department


The finance department of Berger is mainly divided into three sections, which performs all the activities of this department. These are 1. Finance 2. Personal Accounts and 3. Costing 2.7.8.1 STRUCTURE OF THE DEPARTMENT The Finance department is headed by the General Manager Finance who is assisted by the Finance Manager, Accounts Manager and Cost Accountant Manager. The Finance manager is responsible for the activities of the finance section. He is assisted by one Assistant Finance Manager, two Accounts Officers, one Cash Officer and one Data entry Officer. The Cost Accountant Manager is responsible for the Costing section. He is assisted by one Assistant Manger and four Officers. The Accounts Manager is responsible for the Personal Accounts section. Besides these there is one manager for Audit, one Assistant manager for Credit Control and one manager for VAT and Excise with one Officer under him. These three managers report to the General Manager Finance directly. The organogram of this department is given in the next page

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General Manager Finance Secretary

Accounts Manager

Cost Accounts Manager

Finance Manager

Assistant Manager Cost & Accounting

Assistant Finance Manager

Manager Audit and Accounting

Manager VAT and Excise

Manager VAT and Excise

Officers

Officers

Data Entry Operator

VAT Officer

Figure 12: Organogram of the Finance Department 2.7.8.2 FUNCTIONS OF THE DEPARTMENT Finance Section: This section handles all activities related to debtors (customer related). It is responsible for the payment of bills. Bill Payment System: Bills can be both external and internal. Payment of internal bills is made as early as possible to ensure the smooth functioning of the business of Berger. But external bills are paid twice per month, on the 10 th and 25th day of the month. All bills are approved by Finance Manager provided that there is no provision

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for VAT and amount of bill is not more than Tk. 5000. If the amount of bill is more than Tk. 5000 and less than Tk. 10,000, then the General Manager - Finance decides on the bill. Bills above that can only be approved by the Managing Director. The steps in the total bill payment system are: 1. Receiving the bill 2. Sending to the VAT Department, if there is any provision for VAT. Otherwise bill is sent directly to the accounts section) 3. Sending to the Accounts Department. This section verifies the bill to check the validity of the bill. If any inconsistency is found the Accounts section takes proper action. 4. Approval by the authorized person. Personal Accounts Section: This section deals with salary payment, group insurance, foreign affairs and issues related with corporate heads. Costing Section: The main function of this section is to find out the per liter production cost of a paint category. This section also finds out the gross profit (GP = MRP Dealers Commission Total Production Cost) of a specific category of paints. In addition, this section calculates the total costing and Gross Profit of PTC (Pre Treatment Chemical) and other finished goods imported from abroad. Moreover, this section performs inventory valuation activities of factories and depots. Costing section prepares profitability analysis report for most of the paints. If profitability of any paint is not satisfactory they inform the relevant authority. Other Sections: VAT and Audit activities are also included in the Finance Department. Activities of these two sections are briefly described below: Audit: An internal auditor performs the audit-related activities in Berger. External auditors are also employed on a time-to-time basis. Internal auditor audits the sales depots twice in a year, generally in June and November. An audit of the total organization takes place once in a year.

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VAT: This section assesses the VAT amount that has to be deposited to the government exchequer on the bill payable to the external parties. The GM Finance handles other activities of the Finance Department like government dealings and legal issues.

2.7.9 The Systems Department


This department is providing its support to two Berger factories in addition to the Corporate Office and all sales depots. LAN is utilized in the Corporate Office, two factories and two depots Dhaka and Chittagong. The Systems department uses UNIX, Windows NT operating system and Dataflex. The main database file is in Dhaka. A number of software used by various departments is developed in-house. Different departments inform the Systems department the nature of activities they perform regularly, kinds of problems faced and types of output they need. This department then develops the software to meet the specific need of the different departments. This department also has to play a vital role during the yearly planning period. It has to provide different types of data and reports for preparing the yearly budget. For preparing the required reports (regular and ad hoc), data have to be transferred to Excel mode from Dataflex and reports are prepared according to the format instructed or requested by the relevant person. 2.7.9.1 STRUCTURE OF THE DEPARTMENT The department is headed by the Systems Manager, who has one Systems Engineer, one Service Engineer and two Officers under him. The Systems Manager reports directly to the Managing Director. The organogram is shown below.
Systems Manager

Systems Engineer

Service Engineer

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Officers

Figure 13: Organogram of the Systems Department 2.7.9.2 MAJOR FUNCTIONS OF THE DEPARTMENT: Major functions of the department are stated below:

Preparing different types of report as required by the various departmental heads for monitoring their concerned activities and evaluating performances of relevant areas. Collection of different types of data needed to produce reports required by the various departments. Selection of hardware and software products. Designing systems interfaces, flow and procedures. Managing the total IT services. Designing user interfaces (input/output) to the computer. Designing files and database structures, data collection forms and techniques, communication setup and system security and controls. Preparation of application programming. Developing and guiding system testing and conversion plans. Arranging training programs and plans. Installing and maintaining the network and communication setup under UNIX and Windows NT.

2.7.10 The MDs Secretariat


The MDs secretariat is responsible for assisting the Managing Director in his day to day activities. It also performs the human resource development and liaison function. This department consists of one Liaison Manager, one Human Resource Development Manager, one Office Secretary and one Personal Secretary to the MD. The organogram is given in the following page.

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Managing Director

Personal Secretary

Liaison Manager Manager Human Resource Development R&D Office Secretary

Figure 14: Organogram of the MDs Secretariat

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PART TWO: PROJECT PART

41

1. INTRODUCTION 1.1 ORIGIN


The report was assigned as a requirement of the internship program of BBA. The project Consumer behavior regarding paints with special emphasis on Berger Paints has been completed during the organizational attachment period, March 9 to May 11, 2002. A.K.M. Sadeque Nawaj (Assistant Product Manager) acted as my organizational supervisor while Professor Neaz Ahmed guided me as my faculty advisor.

1.2 PROBLEM STATEMENT


Better understanding of consumers regarding their behavior towards paints is needed to provide improved product and related services.

1.3 OBJECTIVES
Broad Objectives
1. To determine the behavior of consumers regarding the use of paints.

Specific Objectives
1. To determine the paint purchase decision making process of the consumers and to relate it with their income level. 2. To determine the reasons and occasions when consumers use paints and their usage interval. 3. To determine the relationship between the income level of consumers and their usage of specific brands of paints and their preference of shades. 4. To determine the satisfaction derived from the last paint purchase and the reasons behind it. 5. To determine the awareness level and paint related knowledge of the consumers. 6. To determine the attitude of the consumers towards the paints of different paint companies.

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7. To determine the service required by the consumers from the paint companies.

1.4 SCOPE OF THE REPORT


The report will deal with consumers who only buy and use paints for their household purposes. It will focus only on the consumers of Dhaka city. The report will mainly cover various aspects of the consumers and their paint usage habits, behavior, preferences and satisfaction level. It will also look at the attitude and the awareness of the consumers towards the different brands of paints.

1.5 SOURCE OF INFORMATION


The data had been mainly collected from the primary source that is from the household paint users. Survey had also been conducted among the painters and dealers to gain a better understanding of the paints..

1.6 METHODOLOGY
1.6.1 Work Plan:
The overall procedure had been broken down into the following phases.

Exploratory research was done to diagnose the current paint market situation. Information has first been collected through experience survey, among the painters, dealers to gain knowledge about the different paints, the application procedure of paints and the paint market. A questionnaire had been designed (shown in the appendix) that was used to collect data from the household paint users. The questionnaire had been pre-tested in the Chittagong market among the household paint users. The final survey was conducted among the household paint users of Dhaka city. Most of the respondents had been interviewed in the home of the respondent.

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1.6.2 Sampling Procedure:


Sampling Unit

The sampling unit was the households of Dhaka city. Eligible respondents were adults over the age of 18. Within each household an effort was be made to interview the individual who was the most familiar with paints, their applications and the paint market.

Sample Design

A survey of 136 households among Dhaka city provided the database for this study. The respondents had been divided into three broad social classes according to income. Household having income less than 12,000 taka were defined as low-income group, income in the range of 12,001 to 50,000 taka as middle-income group and income of more than 50,000 taka as high-income group. About 40% of the respondents that is 26 respondents had been from the upper class, 40% that is 56 respondents from the middle class and 20% that is 54 respondents from the lower class. The areas that have been chosen for survey were Banani, Baridhara, Uttara, Dhanmondi, Gulshan, Mirpur, Mohammadpur, Elephant Road, Green Road, Kalabagan, Lalmatiya, Mirpur, Mohakhali, Kamalapur, Azimpur, Moghbazar, Shiddeswari, Shantinagar, Paltan, Rampura and Eskaton, Motijheel, Paribagh, Wari and Nilkhet.

Sampling Technique

Random, judgmental and convenience approach had been used to define the sampling unit and the areas

1.6.3 The Questionnaire:


The questions were designed to address the different objectives. The questionnaire manual below shows how the questions contained in the questionnaire (attached in the appendix) tried to serve the specific objectives of the research
1.

Q-1, Q-2 and Q-4 attempted to determine the reasons and occasions when consumers use paints and their usage frequency.

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2.

Q-3 aimed to determine the preference of consumers towards specific shades of paints. Q-9, Q-13, Q-17 and Q-21 aimed to find out the paints used by the consumers.

3.

Q-5, Q-6 and Q-7 helped to determine the paint purchase decision-making process of the consumers. Q-5 helped determine the decision takers in the paint purchase process, Q-6 helped determine the most external influencers in decision taking and Q-7 helped determine the factors considered in decision taking

4.

Q-10, Q-11, Q-14, Q-15, Q-18, Q-19, Q-22 and Q-23 tried to find out the satisfaction level derived from their last paint usage and the reason(s) behind it.

5.

Q-24 attempted to discover the attitude of the consumers towards the paints of different paint companies.

6.

Q-25 was used to determine the additional service(s) required by the consumers from the paint companies.

7. The questions contained in the Personal Profile tried to determine the demographic characteristics of the respondents. It also determined the income level of the consumers to make comparisons based on income.

1.6.4 Data Collection:


The key personnel himself conducted most of the surveys. But additional surveyors were recruited when it was necessary.

1.6.5 Data Processing and Analysis:


Standard editing and coding procedures had been utilized. Simple tabulation along with charts and scales was used to analyze the findings of the survey.

1.7 LIMITATIONS
1. The report focused only on the household paint users of Dhaka city. 2. The report only dealt with paints in the Decorative category.

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3. It looked only on certain aspects of consumer behavior.

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2.

DEMOGRAPHIC RESPONDENTS

CHARECTERISTICS

OF

THE

Certain demographic characteristics of the respondents were determined to gain a better understanding of them. The characteristics that were determined were location, age, education, occupation and income. People with the most knowledge about the paints are usually the people who have actively participated in the decision regarding the purchase and usage of paints. As the people with the most knowledge about paints in the household were interviewed, an analysis of the demographic characteristics of the respondents would help us to identify the main decision makers.

2.1 AGE GROUP


The individuals that were interviewed were all above the age of 18 years. The percentage of the respondents falling in each age group is shown in the chart below.

5% 24% 40%
20 years and below 21 years to 27 years 28 years to 35 years 35 years to 45 years

14% 17%

45 years and above

Figure 15: Age group of the respondents (in percentage) The above chart clearly shows that the most knowledgeable persons regarding paints are people above 45 years of age. These are the people who are usually the head of the house. The next biggest group is the age group that falls between 21 to 27 years. This group consists of individuals who are university students or entering the job world and those who are gradually facing the challenges of life. This clearly demonstrates

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that the young generation of today is now taking part in various important decisions like the painting of a house, which was the domain of the elder people.

2.2 EDUCATION LEVEL


The education level of the respondents in percentage is given in the chart below.

7% H SC and below 48% 45% Post Graduate Graduate

Figure 16: Education level of the respondents (in percentage) Most of the respondents are postgraduates and almost the rest are graduates. The 7% of the respondents in the educational level HSC and below consists of all the 5% of the respondents in the age group 20 years and below. The level of education in the above chart shows the educational strength of the respondents.

2.3 OCCUPATION
The occupation of the respondents can be seen from the following chart.

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4% 9%

2%

4% 1%1%

8%

Government service Businessman


19%

Private local company Multinational company Housewife Teacher

13%

Doctor Home Owner


14% 25%

Retired Mariner Journalist

Figure 17: Occupation of the respondents (in percentage) The above chart clearly shows that the biggest group of jobholders at present consists of people who work in Multinational companies. The people working in private local companies are also large and more than people working in the government services. The second largest group consists of businessmen, showing the interest of the people to lead ones own business. The interesting information that can be seen from the chart is that 13% of the respondents, the fourth largest group were housewives. This clearly demonstrates the growing active participation of women in works such as painting, which was once an issue once totally handled by men.

2.4 INCOME LEVEL


The income level of the respondents can be seen from the chart in the next page.

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19%

39%

!2,000 taka and below 12,001 20,000 taka 20,001 35,000 taka
15%

35,001 50,000 taka 50,001 taka and above

12%

15%

Figure 18: Income level of the respondents The income group below 2,000 taka has been defined as the low-income group, 12,001 to 50,000 taka as the middle-income group and above 50,000 taka as the highincome group. Approximately 19% of the respondents are in the low-income group, 41% in the middle-income group and 40% in the high-income group. As the number of respondents that would fall in these three income groups was fixed from before, nothing concrete can be understood from the above income level findings.

2.5 LOCATION
As the respondents were chosen based on convenience and randomly, the location mix of the respondents is not uniform. The table in the next page shows the locations from where the interviews were taken and the number of households interviewed in each area.

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Table 1: Location of the respondents Area Azimpur Banani Baridhara Dhanmondi Elephant Road Green Road Gulshan Kalabagan Kamalapur Lalmatia Maghbazar Mirpur Mohakhali Mohammadpur Motijheel Nilkhet Paribagh Purana Paltan Rampura Shiddheswari Uttara Wari Number of households interviewed 8 6 4 15 3 10 10 2 5 7 8 6 3 10 2 5 1 6 4 7 12 3

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3. THE DECSION MAKING PROCESS


Purchasing paint requires input from various sources. It is seldom seen that a single person, without any suggestion or advice from others decides on which brand or type of paint and color to buy. The total paint purchase decision making process consists of many individuals, from the family members to the neighbors and relatives, from the painters to the dealers. Everyone has some part to play in deciding on the paint that will be applied. Various factors such as price, quality etc. is also considered by the individual while deciding on which paint to buy. Thus this chapter tried to understand and analyze this process by determining through the questionnaire the persons involved and the decision takers in the total paint purchase process, the external people on whom the individuals surveyed depend most, and the factors that they consider while buying paints.

3.1 THE PAINT PURCHASE PROCESS


An individual while buying paint goes through a series of steps and decisions regarding various criteria before reaching the final decision. The total paint purchase process has been divided into the following steps in the questionnaire. 1. Gaining knowledge about the paints of different companies 2. Selection of type of paint (that is enamel, distemper, plastic emulsion etc) 3. Selection of brand of paint 4. Selection of shade or color 5. Final decision 6. Purchasing The persons that can be involved in these steps has been determined as the father, mother, son and daughter of the house who are the internal people and the dealers/shopkeepers, painters, architects, contractors, representatives of the paint companies, neighbors, friends and relatives who are the external people. The people interviewed were asked to state which person plays the role in each of the steps of the paint purchase process. A person can play a role in one or more than one step of the total process. Moreover more than one person can also play a role in each
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step of the process. Then for the 136 households interviewed, the total number of fathers playing a role in each of the steps was determined, and so on for the mothers, daughters, sons, painters etc. The total was determined for each income group, that is for the low, middle and high-income group. The numbers were then converted into percentage of total households for each income group.

3.1.1 Findings:
The findings of the survey for the High, Middle and Low-income groups can be seen in the following three charts.
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Father Mother Son Daughter Dealers/ Shopkeepers Painters Architects Contractors Representative of the paint companies Neighbors, friends, relatives Gaining knowledge Selection of paint type Selection of brand Selection of shade Final decision Purchase

Figure 19: The people involved in each step of the paint purchase process in the High-income group, as percentage of the total number of respondents in the group

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70% 60% 50% 40% 30% 20% 10% 0%


Father Mother Son Daughter Dealers/ Shopkeepers Painters Architects Contractors Representative of the paint companies Neighbors, friends, relatives

Gaining knowledge Selection of paint type Selection of brand Selection of shade Final decision Purchase

Figure 20: The people involved in each step of the paint purchase process in the Middle-income group, as percentage of the total number of respondents in the group

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%


Father Mother Son Daughter Dealers/ Shopkeepers Painters Architects Contractors Representative of the paint companies Neighbors, friends, relatives

Gaining knowledge Selection of paint type Selection of brand Selection of shade Final decision Purchase

Figure 21: The people involved in each step of the paint purchase process in the Low-income group, as percentage of the total number of respondents in the group

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3.1.2 Analysis:
Gaining Knowledge: The three charts above show that the father is the main source of gaining knowledge about paints in all three income groups. It can be seen from the chart of the high-income group that about 50% of the fathers among the total households has the knowledge about paints. The percentage is less in the middleincome and low-income group. The people in the high-income group gain the next most knowledge from the neighbors, friends and relatives. This percentage decreases a lot as we go down in the middle-income group and decreases more in the lowincome group. A substantial amount of people in the high-income group also gains knowledge from the painters, contractors and architects. A substantial amount of the people in the middle and low-income group depends on the painters and dealers, but very less on the architects. The dependency on the representatives of the paint companies is also very less, which demonstrates the unavailability of the representatives during the time of need. Selection of paint type: Again in the selection of the paint type, the father is the main decision taker in all three income groups. In all the three income groups the mother of the house also occupies a significant and the next position in deciding the paint type. In both the high and middle-income groups, the painters, contractors and the architects have some say regarding the type of paint to be used. But their voice is very low in the low-income group. The son plays a significant role in the low-income group. Selection of Brand: The father is the main person who selects the brand of paint to be used. But if we compare the three income groups, the father plays the highest role in the high-income group. In the high-income group the mother plays a significant role, and in the low-income group the mother and the son plays a significant role. The contribution of others is insignificant. Selection of shade: The scenario changes completely over here. In all three income groups the mother is the main decision taker regarding the shade to be used, followed by the daughter. This shows the bigger role of females in deciding the shade of paint

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to be used. But among all three income group, the role of the mother and the daughter is highest in the high-income group. The father and the son also play a big role in all three income groups. The contribution of the external parties in deciding the shade of paint to be used is insignificant. Final Decision: Again the father is the person to take the final decision in all three income groups. The mother occupies the next significant and a big position in taking the final decision. There is some contribution of the son and daughter in the high and middle-income group. The contribution of the external parties is insignificant. Purchase: The father is the person who makes the purchase in all three income groups. There is some contribution of the mother, painters and contractors in all three income groups.

3.1.3 Recommended strategy for Berger:


Berger should try to educate the father that is the head of the house regarding the type and the quality of paints that it offers, as this is the person who in almost all the cases makes the decision regarding which brand to buy and what type of paint to buy. But when convincing the consumers about the numerous and uncommon shades that it offers, it should approach the females of the house. Because these are the people who in most of the cases make the decision regarding which paint to buy. It could also educate the mother of the house regarding the type and quality of its paints as they also have some contribution in choosing the brand and type of paint to be used. Berger could also approach the architects and convince them to push their products to the high-income group as they have some influence on the high-income people regarding the brand and type of paint to be used.

3.2 THE MOST DEPENDED EXTERNAL PARTIES IN TAKING DECISIONS


The users of paints always seek advice or knowledge from external parties while taking a decision to paint something. It might be regarding the type, brand of paint or
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the application procedure. The external parties, as mentioned before are the painters, dealers, contractors, architects, representatives of paint companies and the neighbors, friends and relatives. The respondents were asked to rank the external parties that they depended on. The party that they depended on would be ranked 1, the next depended party would be ranked 2 and so on. The total number of respondents that ranked 1 for each external party was determined. These were then converted into percentages for that ranking, income group wise. This was repeated for the 2nd and 3rd ranking.

3.2.1 Findings:
The findings of the survey for the high, middle and low-income group can be seen in the following three tables . Table 2: The dependency level on external parties in the paint-purchase decision making process ranked by the consumers in a scale of 1-3 (High-income group) in percentage of total number of responses in each ranking category 1 2 3 Dealers/ Shopkeepers 11% 21% 26% Painters 32% 33% 26% Architects 27% 18% 21% Contractors 22% 23% 24% Representative of the paint 4% 5% 3% companies Neighbors, friends, relatives 5% 0% 0% Table 3: The dependency on external parties in the paint-purchase decision making process ranked by the consumers in a scale of 1-3 (Middle-income group) in percentage of total number of responses in each ranking category 1 2 3 Dealers/ Shopkeepers 15% 13% 27% Painters 24% 42% 27% Architects 18% 21% 27% Contractors 24% 25% 18% Representative of the paint companies 6% 0% 0% Neighbors, friends, relatives 12% 0% 0%

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Table 4: The dependency on external parties in the paint-purchase decision making process ranked by the consumers in a scale of 1-3 (Low-income group) in percentage of total number of responses in each ranking category 1 2 3 Dealers/ Shopkeepers 6% 18% 38% Painters 53% 36% 25% Architects 29% 18% 13% Contractors 12% 9% 13% Representative of the paint companies 0% 18% 13% Neighbors, friends, relatives 0% 0% 0%

3.2.2 Analysis:
We can see that, in all the three income groups the painters are the party that the users depend upon most. Among all the parties, the percentage of people that ranked painters 1, is the highest among all the three income groups. In the middle-income group, the same percentage of people ranked the contractors as 1. The architects and the contractors are also depended upon while seeking advice by the three income groups. The representatives of the paint companies are depended upon most as the 1st ranking party by the least percentage of people in all three income groups. If we consider the 2nd ranking external party, we can see that the painters are again leading in all three income groups. These shows that among those people who didnt rank them 1st, a majority of them ranked them 2nd. The dealers are the parties that majority of the users depend on as the 3rd ranking party. The painters are again considered by a high percentage of people as the 3rd ranking external party, that they depend on most. The representatives of the paint companies are again depended upon most as the 2nd and 3rd ranking party by the least percentage of people in all three income groups.

3.2.3 Recommended Strategy for Berger:


Berger should put more concentration on the painters, by sending the sales representatives to them more often. Because these are the parties most depended upon as an external party by the consumers. They could train the painters free of charge and

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build very good relationships with them. The number of incentives offered to the painters should also be increased. This would help Berger to push its products more by the painters.

3.3 FACTORS CONSIDERED IN DECIDING WHICH PAINT TO BUY


People take a lot of factors into consideration while buying paints. Some people only focus on the beauty of the finishing of the paint, some consider only the shades that the paint company has to offer. Those people who are in shortage of money, consider only the price of the paint. The factors that the people place important on, is a major determinant in deciding which type or brand of paint to buy. A person focusing only on good finishing and not on price will decide to buy Berger Luxury Silk for his interior walls. But a person who considers price as the most important factor and not good finishing will decide to buy the Distemper paints offered by other companies. An equal weightage of the two factors will result in them buying a paint that falls between these extremes such as Berger Distemper or other companies Plastic paints. While doing the survey people were asked to determine the factor(s) that they placed importance on most. The total was calculated for each factor for each income group and then the percentage of total respondents that considered each factor for each income group was determined.

3.3.1 Findings:
The findings of the survey for each income group can be seen from the following table.

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Table 5: Factors considered by the consumers in deciding which companies' paint to buy (in percentage of the total number of respondents in each group) LowMiddleHighincome income income group group group Price 76% 53% 63% Company image 40% 51% 47% Durability of the paint 64% 75% 76% Physical appearance of the paint 16% 31% 24% Availability of color shades 44% 33% 47% Coverage of the paint 16% 15% 14% Availability 20% 22% 18% Advice by neighbors, friends or 24% 25% 33% relatives Painter's suggestion 0% 0% 2% Quality 0% 0% 2% Experience 0% 2% 0%

3.3.2 Analysis:
A look at the table shows that, in the low-income group the majority of people placed the most importance on price. But in the case of the middle-income and high-income group, the majority of people placed the most importance on the durability of the paint. The percentage of people that placed importance on price in the low-income group, is equal to the percentage of people that placed importance on the durability in the middle and high-income group. This shows the same level of importance place on these criteria by the three income groups. Interestingly, the next factor that majority of people in the low-income group chose is durability of the paint, while it was price for both the middle and high-income group. Availability of color shades and company image are the next two factors considered important by all three income groups. The factor that the least majority of the people considered important in the low-income group is the physical appearance and the coverage of the paint, while it is only coverage for the middle and high-income group. Thus we can say that the low-income group people considers the price first and then the durability, placing the least importance on physical appearance and coverage. Whereas, the people in the middle and high-income group places the most importance on durability and then price, placing the least importance on coverage.

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3.3.3 Recommended Strategy for Berger:


Berger should focus more on the durability of its paint rather than the shades offered in its advertisements. They should also send representatives to consumers who would prove the higher durability of its paints compared to the other paints offered in the market. Moreover it should try to decrease its price more by doing more research, modernizing its production facility and also by increasing efficiency to make it more affordable to the people in the low-income group.

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4. PAINTING REASONS, OCCASSIONS AND TIME


Painting an item is seldom done without any occasion or reason. People generally paint an item keeping some occasion in mind or for a specific reason. The reasons for painting might be to increase the beauty of an object or to protect its surface from rain, moss or other bad effects. People might paint without keeping any occasion in mind, or might paint before some important occasion like Eid or marriage ceremony. These events that can instigate a painting job can be numerous. Based on the repetition of this events and the importance individuals place on it, an object might be painted on an yearly basis or after two to three years. The objective of this chapter is to determine the reasons why an individual paints an item, the occasions that instigate a painting job and the time interval between two painting jobs.

4.1 THE REASONS FOR PAINTING


The reasons for painting that were identified in the questionnaire are protection of surface, increase of beauty or part of maintenance. People who dont have any particular reason for painting have been termed as habitual painters. The respondents were asked to mark the reason(s) in the questionnaire and the total number of respondents mentioning a specific reason was determined for each income group. This total of each reason was then converted into percentage of total number of respondents for each income group.

4.1.1 Findings:
The findings of the survey for the three income group can be seen in the following chart.

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80% 70% 60% 50% 40% 30% 20% 10% 0% 53% 49% 36%

75% 69% 56% 52% 53% 57%

Low income group Middle income group


7% 8% 0%

High income group

Protection of surface

Increase beauty

Part of maintenance

Habitual

Figure 22: Reasons for painting an item as percentage of total responses in each income group

4.1.2 Analysis:
Majority of the respondents of all three income groups identified Increase of beauty as the main reason for painting. The next highest identified reason for all three income groups was Part of maintenance and the next one was Protection of surface. As the order of importance of the three reasons was same for all income groups, it proves that, irrespective of income, people have the same reasons in mind when painting something. Moreover the responses of all three income group shows the importance people place on the beauty or in improving the looks of an object. So the paints made by the paint companies should help to fulfill this need for beauty. Another finding that can be seen is that people of the low-income group need to have a reason before painting something, but this is not the case for the middle and high-income group, some of whom can sometimes have no reason for painting.

4.2 THE OCCASIONS FOR PAINTING


Occasions of painting have been identified as a particular event or happening that instigates an individual to paint their house, furniture or other materials in their house. The occasions in which painting is done has been identified in the questionnaire as marriage ceremony, Eid, construction of house, change of tenant. Some other

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occasions identified by the respondents are someone important visiting our house and renovation. The importance people place on these occasions is different for different people resulting in different time intervals for painting. The respondents were asked to pick out the occasion(s) in which painting is done in their house. The total was determined for each occasion for each income group. This was then converted into percentages of total respondents for each income group.

4.2.1 Findings:
The findings of the survey of all three income groups can be seen in the following chart.
Low income group 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 22% 18% 20% 7% 3% 1% Middle income group High income group

Percent response

39% 36% 36% 34% 32% 30%

1%

4%

3.6%

1%

Figure 23: Occasions in which painting is done as percentage of total responses

4.2.2 Analysis:
The occasion pointed out by majority of the respondents for painting is change of tenant. This is the highest in all three income groups. This percentage would have been higher if more house owners were interviewed. Interestingly, the next majority of responses received by all three income groups and nearly equal to the previous

Marriage ceremony

Eid

Change of tenant

Occasions

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No particular occasion

Construction of the house

Someone Important visiting our house

Renovation

Any big occasion

response was No particular occasion. This proves that after a particular period of time has elapsed, people just paint their house or furniture even if no occasion takes place, just to increase its beauty or as a part of maintenance. Marriage ceremonies are the next occasion that received the next highest and about equal responses by all three income groups. About 20% of the respondents in each income group mentioned this occasion for painting their house, which shows the importance of having a good looking house during any marriage ceremony. Among all the three income groups, Eid as an occasion for painting was chosen most by the low-income group, followed by the middle and then the high-income group, although the percentage is very less. The other occasions mentioned in the chart received negligible responses.

4.2.3 Recommended Strategy for Berger:


The sales representatives of Berger should constantly collect information when the tenants of different houses will leave, so that it can arrive with its offer and products to the owner at the right time. They could then try to convince the owner to use their products even if he did not use it in the last painting. Good convincing at the right moment could turn these owners of houses into Berger's favor. Moreover, the sales representatives should also determine when a marriage would take place in the different houses by keeping close link with community centers. By convincing the owner, the sales representatives could even make an owner paint his house during a marriage, even if he did not have any plan to do it. Thus, the sales representatives should also turn into household intelligence officers.

4.3 TIME INTERVAL BETWEEN TWO PAINTINGS


Depending on the occasions and the need for maintenance or other reasons the time interval between two paintings may differ for different individuals. The time interval sometimes even does not stay the same for the same individual. A sudden and unexpected change of tenant will force a person to paint the tenants house long before he planned. Moreover the occurrence of other occasions can also vary resulting in different timings for paintings. Inspite of this and if we dont consider the

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happening of these sudden and unexpected occasions, there will usually be an average time between two painting occasions. When the survey was done the respondents were asked to determine their average time interval between two painting occasions. The total number of responses was calculated for each time interval and the percentage was then determined for each time interval for each income group.

4.3.1 Findings:
The findings of the survey for the three income group can be seen from the chart below.
6% 30% 25% 46% 35% 34% 23% 12% 4% 13 % 15%

More than 4 years Between 3 years and 4 years Between 2 years and 3 years Between 1 year and 2 years Below 1 year

28% 2%

23% 5%

High income Group

Middle income Group

Low income Group

Figure 24: Interval between two subsequent painting occasion in terms of percentage of responses for each income group

4.3.2 Analysis:
The above chart shows that majority of the respondents of all three income groups paint their house between 2 years and 3 years. For the middle and high-income group, the next majority responses were between 3 years and 4 years. But for the low-income group, it was between 1 year and 2 years. This inconsistency and lower interval of the low-income group than the high and middle-income groups could be due to the use of cheap and low quality paints, resulting in faster degradation of the paint. The percentage of respondents painting their house below 1 year is also higher for the low-

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income group than the high and middle-income group, which supports the above conclusion.

4.3.3 Recommended Strategy for Berger Paints:


The representatives of Berger Paints could thus approach every consumer after every 2 to 3 years after using their paint, as this is the time interval between which majority of the consumers paint their house, irrespective of income. They would then be able to convince the consumers to use their paint again and to give them the necessary advice regarding the use of paints. This would result in more sales and better customer satisfaction, due to better prediction of the timing of paint usage.

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5. USAGE OF BRANDS AND PREFERENCE OF SHADES


From the variety of brands and shades offered in the market, the consumer has to decide which brand to apply and which shade to choose. Again, for every kind of surface, there are different types and brands of paint available, out of which they have to pick the one that matches with their tastes and demands. This chapter emphasizes on the usage of specific brands of paints by the consumers and their preference of shades. The goal of this chapter is to find out the extent to which the choice of brands and selection of shade are influenced by the income level. The usage of brands by the consumers at different income level is discussed at first, followed by their preference of shades.

5.1 USAGE OF THE TYPE AND BRAND OF PAINT


The responses derived from the consumers regarding the type and brand of paint they used are presented in the figures that will follow. For the ease of explanation, the income wise responses are sometimes combined. The usage of a specific brand in a particular income group is expressed as percentage of the total responses obtained from that income group. This reflects the variation in the consumers choice depending on the income level. Again, all the responses regardless of income are combined to get an understanding of the consumer preference from a broader perspective. For every kind of surface, the usage of brand and type of paint is discussed below. Sometimes the respondents could not recall any of the names of the brands and the type of paint, though they have mentioned the occasion of using paint. Some could recall either the brand or the type while many could recall both. The first type of responses is not taken into consideration in this chapter.

5.1.1 Interior wall


5.1.1.1 FINDINGS The following findings are consumer responses regarding interior wall. The income wise preference is shown first and then the combined picture is illustrated.

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High Income group


3% 11% 6% 3%

Berger Robiallac Plastic Emulsion Berger Luxury Silk Berger Robiallac Enamel Elite Plastelite Navana (Cant be recalled )

77%

Middle income
2% 2% 2% 2% 9% Berger Robiallac Plastic Emulsion Berger Robiallac Distemper Romana Distemper 2% 4% 50% Romana Plastic Elite Plastic Elite Synthetic Enamel Elite Distemper Navana Distemper 27% Peilac Plastic

Low Income
4% 8% 4% 4% 21% Roxy Plastic Romana Distemper Romana Plastic Peilac Distemper Roxy Distemper 13% Berger Robiallac Distemper Pelican Distemper 21% 4% 21% Elite Distemper Peilac Plastic

Figure 25: Type and brand of paint used for interior wall as percentage of total responses obtained from each income group

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Berger Luxury Silk Berger Robiallac Distemper 3% 6% 7% 2% 2% 1% 1% 1% 1% 6% 2% 1% 5% 4% 11% Berger Robiallac Plastic Emulsion Berger Robiallac Synthetic Enamel Elite Distemper Elite Plastelite Elite Synthetic Enamel Navana (Can't recall) Navana Distemper Peilac Distemper Peilac Plastic Pelican Distemper Romana Distemper 47% Romana Plastic Roxy Distemper Roxy Plastic

Figure

26:

Type and brand of paint used for interior wall as percentage of total number of respondents from all income groups 5.1.1.2 ANALYSIS

The income wise distribution reflects a wide dissimilarity among the choice of brand of the consumers in different income groups. The choice of the high-income group is entirely different from that of the low-income group. It seems that the brand picked by the high-income consumers is targeted for that specific income group and vice versa. But the responses from the middle-income group seem to be the mixture of the other two. If we go into more detail, the high-income group sought for mainly the brand Berger. None in this group has chosen distemper type of paint. A very negligible portion of this income group has used Navana, though the type of paint couldnt be recalled. There is also Elite Plastelite, with a nominal preference share. Berger Luxury Silk is represented as the high-income brand, since none in the other two income group mentioned of the usage of this brand. A remarkably large portion of the consumers in the high-income group (77%) went for Berger Robiallac Plastic Emulsion, which is also preferred by half of the consumers in the middle-income group. Though the low-income group does not prefer this brand, almost half of the respondents chose this brand as a whole. But for interior, the popularity of the Berger

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Robiallac Distemper is nil in the high-income group. A significant portion of the middle and the low-income group went for this brand, which is why this brand came, as the second preferred if we consider the whole picture. The dominance of Roxy Plastic, Romana Distemper and Romana Plastic paint in the low-income group is noteworthy. All the three of these brands has the highest preference among the consumers in this income group. The second highest is Roxy Distemper, which is very closely being followed by Pelican Distemper. The other brands in the lowincome group are equally insignificant, which includes Berger Robiallac Distemper that was second preferred by the middle-income consumers. If we ignore the very small presence of Pailac Plastic Paint in the Middle-income group and Berger Robiallac Distemper in the low-income group, then we can label the brands preferred by the low-income group as completely unique from those preferred by the other two income groups. These brands are Roxy, Romana, Pailac and Pelican. The presence of Elite Distemper is also there, with a very nominal share in the low-income group and even more so in the middle-income. As a whole, the dominance of the Berger Robiallac Plastic Emulsion for the interior wall is worth noticing. Then comes with very few share-Berger Robiallac Distemper, Romana Distemper, Romana Plastic and Elite Plastelite.

5.1.2 Exterior wall


5.1.2.1 FINDINGS For exterior wall, the findings are depicted in the following figures.

High Income Group


6% 10% 10% 3% 42%

Berger Durocem Cement Coating Berger Weathercoat Berger Robiallac Synthetic Enamel Berger Robiallac Plastic Emulsion Berger Robiallac Distemper Snowcem Cement Coating

10% 3% 16%

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Mastecoat Cement Coating Elite Unknown

Middle Income Group


4% 4% 36%

4% 15%

4%

Berger Durocem Cement Coating Berger Robiallac Plastic Emulsion Snowcem Cement Coating Mastecoat Cement Coating Remocem Cement Coating Romana Plastic Lime (Whitewash)

33%

Low Income Group


17% 8%

Berger Durocem Cement Coating Romana Enamel Roxy Plastic

50% 25%

Lime (Whitewash)

Figure 27: Type and brand of paint used for Exterior wall as percentage of total number of respondents from each income group

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Berger Robiallac distemper

10% 7% 11%

4% 18%

Berger Robiallac plastic emulsion Berger Robiallac synthetic enamel Durocem cement coating

1%

Elite (unknown) Mastecoat cement coating Remocem Cement coating

4% 1% 1% 1% 4% 1%

Romana Enamel Romana plastic Roxy Plastic

37%

Snowcem cement coating Weathercoat Whitewash

Figure 28: Type and brand of paint used for Exterior wall as percentage of total number of respondents from all income groups 5.1.2.2 ANALYSIS The usage of Berger Durocem Cement Coating retains the highest share if all the income groups are combined. This brand is also the most popular in the high-income and middle-income segment. The usage of Berger Weathercoat is seen only in the High-income group with a significantly large share. The very high price of this brand is the reason for this. Berger Robiallac Plastic Emulsion is seen to be the second popular in the middle-income segment, with a low share in the high-income group. Snowcem Cement Coating has almost the same percentage preference as the Robiallac Plastic Emulsion. But the prevalence of lime or whitewash usage in the low-income group is worth mentioning here. Half of the respondents in this income group have used this for their interior. There is a slight usage of whitewash in the middle-income too, for which this paint has taken up a noticeable space in the total picture. In the middle-income group, one fourth of the participants use Roxy Plastic Paint while Berger Durocem Cement Coating has the third largest preference share. Snowcem and Remocem were used in cases as alternatives of Durocem with a substantial preference share as a whole. Similarly, those who could not afford Weathercoat but could afford to spend more than the price of Durocem used

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Mastercoat Cement Coating. Though the usage of this brand in the total picture is very nominal, but this added to the wide variety of brands in the exterior category. Unlike interior, the variety is somewhat restricted within some specific desired brand that made the sole dominance of a few brands possible. Again, the variation in the brand choice is highly dependent on the income level while selecting type and brand for exterior wall. Romana and Roxy again represented the low-income segment, Remocem (a brand of Romana) being the exception. Berger Luxury Silk Berger can be compared to the Weathercoat for both being high-income preference, though the share of the latter is more.

5.1.3 Furniture
5.1.3.1 FINDINGS There were some types of brand found in both the interior and exterior category, which will not be repeated in case of Furniture. The information for Steel and Wood furniture is presented in the same figures below. The varnish, polish and spirit are mostly used for wood furniture, whereas enamel paints are applied for mostly steel ones. Majority of the respondents couldnt recall the brand and responses of many were ignored for their lack of knowledge regarding both the type and brand of paint. Spirit, polish and varnish are also categorized as paint for the ease of comparison. The findings of the survey can be seen from the following charts.

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High Income
Berger Enamel 6% 11% 6% 6% 17% Polish Zamuna Spirit Spirit Docupaint-ICI Elite-Crown 11% 21% 11% 11% Carew Spirit Navana Romana

Middle Income
6% 6% 6% Berger Enamel Elite Enamel Polish Varnish 43% Wood Paint 39%

Low Income

29%

Varnish Spirit

71%

Figure 29: Type and brand of paint used for Furniture as percentage of total number of respondents from each income group

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2%

5%

5% 5% 5% 2% Berger Enamel Carew Spirit Docupaint-ICI Elite Enamel

30%

9%

Elite-Crown Navana

2%

Polish Romana Spirit Varnish

9% 2%

23%

Wood Paint Zamuna Spirit

Figure 30: Type and brand of paint used for Furniture as percentage of total number of respondents from all income groups 5.1.3.2 ANALYSIS: The vast use of Varnish and Polish proves that there is very little option for the owners of wood furniture to paint their furniture. The high reliability on these two types is also a reason for its extensive usage. In the high-income group, Elite-Crown has got the major share. This is a brand of Elite specially prepared for wood furniture that no other company has offered. Also this brand is very expensive, which is why only the people in the high-income group could afford it. The second largest share in the high-income group is occupied by polish with no brand specified. Spirit (without mentioning brand), Docupaint, spirit-Carew and Spirit-Zamuna are all very close to the second large share. The spirit type dominates the whole high-income group if we dont consider the brand name. Zamuna and Carew spirits are also expensive brands that were only used by the high-income people. Docupaint of ICI is chiefly used for painting car and therefore expensive, too. Still it is seen to be used by the people in the high-income group. Navana, Romana and Berger Enamel have the smallest share in the high-income group, not much insignificant compared to the leading brands. In the middle-income, again, polish and varnish regardless of brand are widely used. The

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dominance of varnish is slightly ahead of polish. Together, these two types take up the lion share in the furniture paint market in the middle-income segment. Berger Enamel, Elite Enamel is also used along with wood paint not remembering/mentioning the brand. The enamel paints were supposed to be used for steel furniture, which reveals that almost 80% of the middle-income segment own wood furniture. The findings in the low-income segment are interestingly fully covered by polish and varnish. The respondents did not seem to bother to go for a specific brand or to remember that. Regardless of brand, varnish is applied by most of the people in the low-income, the rest using polish. This also reveals a fact that none among the respondents has uses steel furniture and if they do, they dont bother to paint those. However, the presence of branded paints in the total picture is very nominal. The major share is held by polish, varnish and spirit altogether. The awareness of brands mostly came from the high-income group, which are Carew, Elite-crown, ICI-Docupaint, Spirit-Zamuna, Berger-Enamel, Romana and Navana. If we sum the types of paint together, we can conclude that most of the painting was applied for wooden furniture, which means majority in our country own wood furniture.

5.1.4 Grills/Gates
5.1.4.1 FINDINGS For grills/gates, the usage of brands and types of paint are summarized in the figures that follow.

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High Income
15% 12%

Berger Enamel Romana Enamel Peilac Enamel


61%

12%

Elite Enamel

Middle Income
25%

Berger Enamel Romana Enamel


50%

Peilac Enamel Elite Enamel

4% 21%

Low Income
Romana Enamel
8% 23% 38%

Peilac Enamel Elite Enamel Roxy Enamel

8% 23%

Pelican Enamel

Figure 31: Type and brand of paint used for Grills/Gates as percentage of total number of respondents from each income group

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4% 21%

Berger Robiallac Super Gloss Enamel Elite Synthetic Enamel


46%

Peilac Enamel Pelican Enamel Romana Enamel

1% 10%

18%

Roxy Enamel

Figure 32: Type and brand of paint used for Grills/Gates as percentage of total number of respondents from all income groups 5.1.4.2 ANALYSIS The Grills/gates used by individuals are made of steel, so the type of paint used is the enamel paint of different companies. There is very less variety compared to the previous three types of surface. The high-income group mostly went for Berger Enamel. Apart from Elite Enamel, the appearance of Pailac and Romana in this income group is unlike the previously mentioned trend of this group. This could be explained this way, for grills/gates, the high-income people go for the cheaper brand too. Again there could be another possible reason for that, which is, the quality of the enamel paints are almost same regardless of the brand/price. In the middle-income group, half of the respondents used Berger enamel and Romana and Elite Enamel almost equally share the rest, if we ignore the slight share represented by Pailac Enamel. In the low-income group, again there is Romana with the largest share followed head-to-head by Roxy and Pailac. Elite and Pelican equally share a small portion of the market covered. As a whole, Berger Robiallac Super Gloss Enamel dominates the market with the lion share, subsequently followed by Romana Enamel and Elite Synthetic Enamel.

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5.1.5 Recommended Strategy for Berger Paints:


The Berger paints Ltd. could consider the market share of its products with high importance. In many cases, the brands of other companies are used more than those of Berger. The brands that do not possess market share more than Berger is not falling much behind. So, to remain competitive, the company has to provide services desired by the customers and give importance to the consumers preferences. For the category of wood, Berger should come up with something like Carew and Crown with reasonable price to gain the major share of the market currently held by these popular brands. Berger has to grab the lower income segment, which is being dominated by Roxy, Romana, Pailac and in some cases, Elite.

5.2 PREFERENCE OF SHADES/COLOR OF THE PAINT


The selection of the color or shade by the consumers is something that seldom matches with each other. The range of color could be to the extent of infinity, if one wants to consider all possible shades within a specific base-color. While asking the respondents about their desired shade for surfaces, many colors were supplied that were not exactly similar to each other though the base color for all is the same. The number of responses for each color is converted into the percentage of the total number of respondents in the associated income group. The furniture, both steel and wooden are kept separated into different classes so that there is no confusion regarding the application of the desired shade on this item by the consumers. Like the former part of this chapter, the findings in this part will be described separately based on the kind of surface, too.

5.2.1 Interior Walls


5.2.1.1 FINDINGS The data obtained regarding the choice of colors/shades by the consumers to apply on the interior walls are stated in the table-6.

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Table 6: Choice of color shades for Interior Walls as percentage of total respondents in each income group Low-income group 8% 4% 4% 4% 4% 4% 8% 4% 20% 2% 4% 8% 24% 4% 4% 4% 4% 4% 4% 4% 8% 7% 47% 7% 8% 33% 2% Middle-income group High-income group 2%

Ash/Light ash Beige Biscuit Black Blue Coffee Cream Cream-White Fawn French gray Green Grey Lavender Light green Off-white Paste Pink Purple Red Silver Sky blue Violet Yellow White 5.2.1.2 ANALYSIS

2% 5% 7% 2% 14%

2% 7% 19%

18% 14% 2%

The color off-white is the most desired among the consumers from all income groups. In a list of colors with a large range of variation, the percentage shown for this specific color is very significant. An important finding is that most of the variety in color-shade has come from the lower income group. The indecisiveness of this segment could be a reason for that, which is subject to further research. Another interesting finding from the same income group is their inclination towards the color green. This color is so much in contrast with the most sought for color off-white that, we could again get a hint of incongruity in the choice of this particular segment. For the high-income group, sky-blue is the color sought out after off-white. The next two desirable colors are cream and violet. For interior wall, these colors are commonly used and these are somewhat light in nature, which is ideal for the application on the

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interior wall. The middle-income group mostly sticks to the color off-white and the other color chosen by some respondents are of few portions with a significant attachment to the color white.

5.2.2 Exterior Walls


5.2.2.1 FINDINGS: The preference of shades of the consumers for the paint they used on the exterior wall is listed in the Table 7. The responses are expressed as percentages of total number of responses in each income group. Table7: Choice of color shades for Exterior Walls as percentage of total respondents in each income group Low-income group 4% 4% 4% 4% 4% 4% 4% 8% 4% 4% 4% 12% 4% 4% 4% 4% 4% 60% 4% Middle-income group 6% 2% 4% 6% High-income group 20% 10% 4% 4%

Ash/Light ash Beige Blue/Light blue Brick red Brown Brown-grey Chocolate Coffee Cream Fawn Grey Grayish green Lemon Light green Off-white Paste Pink Silver Grey Sky blue Sonargaon Teal White Yellow/Light yellow 5.2.2.2 ANALYSIS

2% 2% 9% 4% 2% 26% 4% 2% 2% 2% 43% 2% 37% 4%

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For exterior wall, the most desired color by the consumers is white. In all income groups, this color covers the largest share in terms of preference. In the low-income group, off-white is the color after the sole dominance of white, which is also valid for the middle-income group. The extensive use/preference of the color white could be related to the high use of lime (whitewash) in painting the exterior. The high-income group prefers ash/light ash as their second most desired choice. There is also some demand for blue/light blue in this segment.

5.2.3 Wooden Furniture


5.2.3.1 FINDINGS The choice of color shade for wooden furniture would definitely be different from that of steel furniture. Therefore, the furniture section is divided into two components. The list of preference for color shades desired by the consumers at different income level is given in the table 8. Table 8: Choice of color shades for Wooden Furniture as percentage of total respondents in each income group Low-income group 4% 16% 36% 8% 4% 4% 2% 6% 2% 2% 4% 24% 4% 28% 13% 4% 17% 2% 2% 43% Middle-income group 6% 45% 2% 2% High-income group 2% 45% 6%

Ash/Light Ash Black Brown/Dark brown Coffee/Light Coffee Coffee-brown Golden Grey Maroon Mahogany Orange Pink Red Varnish White Wood color Yellow 5.2.3.2 ANALYSIS

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In this section, the lion share in the color preference is same for all income groups, which is brown/dark brown. This preference could be explained by the tendency of the consumers to keep the wood in its natural color. There is again another color termed as wood color, is the second desired color by the consumers in all income groups. The color seen after varnishing the wood furniture is also much preferred by the consumers. And there is the color black, sought next, by the people in the lowincome group. The mention of the other different color is very few compared to the large demand of the color resembling the natural color of wood.

5.2.4 Steel Furniture


5.2.4.1 FINDINGS The choice of colors for steel furniture of different income groups is listed in table 9. Table 9: Choice of color shades for Steel Furniture as percentage of total respondents in each income group Low-income Middle-income High-income group group group Ash 4% 10% Black 20% 22% 33% Blue 8% 7% 4% Brown 2% Chocolate 4% 2% Cream 4% 6% Golden 2% Green 4% 7% 2% Grey 16% 25% 8% Grey-black 2% Mahogany 2% Metallic 2% Off-white 4% 2% Paste 2% Pink 2% Silver 20% 7% 16% Silver-ash 2% Silver-gray 2% Steel color 2% Teal 2% White 16% 5% 5.2.4.2 ANALYSIS:

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In the low-income group, silver and black are the most wanted color though we saw in the previous section that none among this segment actually used paints other than varnish/polish. Then come gray and white with equal share of preference in this income group. In the middle-income group the most desired color is gray, closely followed by black. There is similarity in the choice of color between the low and the high-income group for the most preferred color by the high-income group is black, too. The color preferred next by the people in this group is silver. As a whole, the choice of color by people for steel furniture is limited among black, silver, gray and white. The responses in each color category are converted into the percentage of the total number of respondents in the associated income group. There are also other colors mentioned by the customers, which are not negligible though they represent very few portion of the preference share.

5.2.5 Grills/gates
5.2.5.1 FINDINGS The preferences of shades by the consumers at different income levels for the application on the grills/gates are shown in the table 10. Table 10: Choice of color shades for Grills/gates as percentage of total respondents in each income group Low-income group Ash Black Blue Brick Brown Chocolate Coffee Cream Grey Maroon Mahogany Metallic Off-white Olive Red Silver 36% Middle-income group 4% 24% 5% 2% 20% 11% 4% 2% 5% 4% 4% 2% 2% 2% 4%
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High-income group 41% 6% 16% 10% 4% 4%

12%

2% 4% 8%

Teal White 5.2.5.2 ANALYSIS

4% 24%

15%

16%

As mentioned earlier, the type of paint used for grills/gates are enamel paint. So the are possibilities for the color preference between steel furniture and grills/gates. We can see from the table that the most sought for color is black by the people in all income groups. For the high-income group, the next two colors preferred are brown and white with equal preference share. Brown is the second preferred color in the middle-income group whereas white is the same in the low-income group. Chocolate color is also preferred by the middle and high-income group. Therefore, the choice of color for grills/gates is mostly restricted among the black, brown, white and chocolate. There are other colors preferred by the consumers to apply on grills/gates. The colors that are not emphasized are not at all unimportant despite having low preference share.

5.2.6 Recommended Strategy for Berger Paints:


The color and shade preferred by the consumers gives a big clue regarding consumers preferences. Berger should come up with a wide range of possible shades keeping the highlighted colors mentioned above in mind as base colors. The availability of desired shade is a very important factor in deciding which companys paint to buy. So, if Berger can provide the consumers with the perfect shade they desire, the demand for the products of Berger will rise for sure.

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6. SATISFACTION DERIVED FROM PAINT USED


As previously mentioned, the consumers use different types and shades of paints depending on the material. The satisfaction derived from the use of these paints widely varies because the yardsticks used by individuals are different. The variation in their judgment for the quality of paint also comes from the difference in their attitude. For example, the deciding factors considered by the high-income group in assessing a brands quality is different from those considered by the low-income group. The definition and extent of satisfaction of the consumers at different level also varies. However, the focus of this chapter is the level of satisfaction derived by the consumers and the reason(s) behind this. The respondents were asked about the extent of their satisfaction (dissatisfaction) they got when they used paint. Some of the respondents could recall both the name of brand and the type of paint, some could recall only one of these two, and some couldnt recall any-though they remembered how satisfied they were while using the paint. In case of an unknown paint (both type and brand), the level of satisfaction and the reason for it cannot contribute to the desired outcome of the research. So the responses that gave no information regarding the type and brand of paint are ignored in this chapter. In this chapter, the answers providing any of the brand and type of paint are considered only. For every type of paint, the respondents were asked to express their satisfaction in a five-point scale from the use of a specific paint. The rating of this satisfaction was like the following: o Extremely Satisfied o Satisfied o Neither Satisfied nor Dissatisfied o Dissatisfied o Extremely Dissatisfied The paints are categorized taking both the brand and the type into consideration (For example: Berger Distemper represents the brand-Berger and the type-Distemper). The responses from all income groups are first combined. Then the responses for each type of surface (interior wall/ exterior walletc.) are documented separately. The responses for each category of paint regarding the satisfaction level and the reasons for the satisfaction (dissatisfaction) are then recorded in the tables followed. The

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responses for all the surfaces are illustrated in two tables; the first one showing the level of satisfaction while the second reveals the reasons for the satisfaction (dissatisfaction).

6.1 INTERIOR WALL


6.1.1 Level Of Satisfaction
For the interior wall, the responses of the consumers are given in the following tables. Table 11: The satisfaction level for Interior wall as percentage of total responses Extremely Satisfied satisfied 50% 8% 16% Neither satisfied Extremely Dissatisfied nor dissatisfied dissatisfied 50% 15% 14% 50% 17%

Name of Brand Berger Luxury Silk Berger Robiallac Distemper Berger Robiallac Enamel Berger Robiallac Plastic Emulsion Elite Distemper Elite Plastelite Elite Synthetic Enamel Navana (Unknown) Navana Distemper Pailac Distemper Pailac Plastic Pelican Distemper Romana Distemper Romana Plastic Roxy Distemper Roxy Plastic

77% 100% 70% 50% 83%

100% 100% 100% 100% 100% 50% 43% 50% 67% 60% 50% 57% 50% 33% 20%

20%

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In case of interior wall, no case of dissatisfaction was seen. The consumers who used Berger Luxury Silk, Pelican Distemper and Romana Plastic paint are seen to be either extremely satisfied or indifferent (neither satisfied nor dissatisfied). Half of those who used this paint are extremely satisfied and the rest are neither satisfied nor dissatisfied. This means, those who are satisfied are highly satisfied. Among those who used Berger Robiallac Distemper, majority is satisfied while some were indifferent. The information regarding the Berger Robiallac Plastic Emulsion is somewhat same, with the a few portions being highly satisfied. But the responses of the users of the Berger Robiallac Enamel paint are remarkable. All of the users, who applied this paint on the interior wall, have been satisfied, though none of them termed themselves as extremely satisfied. Same scenario is observed in case of Navana (unknown) and Pailac Plastic paint. Compared to the plastic paint of Berger, Elite Plastelite brought substantial satisfaction from its users. Again, all of the respondents using Elite Synthetic Enamel were highly satisfied. None among the users of Romana Distemper are highly satisfied, with the portion of satisfaction and indifference being almost equal. The ratio between the indifferent and satisfied users of Roxy Distemper is 2:1, while the same brand brought some responses of high satisfaction in the plastic type, lowering the weight from the set of indifferent.

6.1.2 Reasons for satisfaction


Table 12: Reasons for satisfaction: Interior Wall Name of Brand Berger (Unknown) Reasons for satisfaction The color/shade was up to expectation Durable/Sustainable Durable/Sustainable Good/Smooth finishing Reasonable price compared to quality Easy to paint Less wastage Available The color/shade was up to expectation Beauty Frequency 2 1 5 1 3 1 1 1 1 1

Berger Robiallac Distemper

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Berger Robiallac Enamel Berger Luxury Silk

Berger Robiallac Plastic Emulsion

Elite Emulsion Elite Plastelite Elite Synthetic Enamel Navana (Unknown) Pailac Plastic Pelican Distemper Plastic Unknown

Romana Distemper

Romana Plastic Roxy Distemper Roxy Plastic

Durable/Sustainable Durable/Sustainable Brightness/Glow Looks Elegant Availability of various/perfect shades Brand image Beauty, Brightness/Glow Durable/sustainability Easy to paint Exquisite/Elegant/Good Physical Appearance Gives service as per promise Good Service/Quality Fineness, Good/Smooth finishing Greater coverage Habit of years Reasonable price Served purpose Washable Durable/sustainability Smooth/Good Finishing The color glows/glossy Looks good Durable/sustainability Beauty Good quality Shields Dampness Availability of shade/color Expected Service compared to price Satisfactory/good service Cheap but good quality Expected Service compared to price Durable/Long-lasting Beauty Reasonable price Good service Durable/Long-lasting Doesnt peel off Satisfactory Quality Expected Service compared to price Durable/Long-lasting Satisfactory Quality Serves Purpose

1 1 1 1 9 1 5 14 1 8 5 5 5 2 1 1 2 3 3 2 1 1 1 1 1 1 1 1 2 1 1 1 1 1 1 2 1 1 1 1 1 1

We can see from the table above, Durability is a very common reason for the satisfaction of the users. For Robiallac Plastic Emulsion, this is the mostly stated reason to derive consumer satisfaction. The fact of this paints being washable is one

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of the reasons for satisfaction. Also the physical appearance of this paint is frequently mentioned as the reason for satisfaction. The beauty, brightness, elegant or exquisite look, smoothness and good/expected service and availability of the color/shades desired also acted as bases for the satisfaction of the users of Berger Robiallac Plastic Emulsion. Brand image also played a role in creating consumer satisfaction. For the rest of the paints, the same reasons are stated as the reasons for satisfaction. The reason serves purpose is the indication of being barely satisfied by the performance of the paint. The price of Berger Robiallac Distemper was stated as reasonable compared to quality, which indicates the perceived price of other high-quality paints to be higher.

6.2 EXTERIOR WALL


For the exterior wall, the responses describing the level of satisfaction and the reasons for this are stated in the tables 13 and 14.

6.2.1 Level of satisfaction


Table 13: The satisfaction level for Exterior wall as percentage of total responses Neither Extremely satisfied Extremely Satisfied Dissatisfied satisfied nor dissatisfied dissatisfied 14% 61% 100% 92% 100% 60% 100% 86% 100% 8% 20% 100% 14% 100% 100% 19% 6%

Name of Brand Berger Durocem Cement Coating Berger Robiallac Synthetic Enamel Berger Robiallac Emulsion Berger Robiallac Distemper Berger Weathercoat Elite (Unknown) Mastecoat Cement Coating Snowcem Cement Coating Remocem Cement Coating Romana Plastic Lime (Whitewash)

20%

We saw earlier that the highest used paint for exterior wall is Durocem. Among the users of the paint Berger Durocem, the only case of dissatisfaction was seen in the exterior wall category. But majority of the users of this paint was satisfied among

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which a significant number of people seemed to be extremely satisfied. A noticeable portion of the respondents remains indifferent. On the other hand, all the users (though few in number) of Berger Robiallac synthetic Enamel, Mastercoat and Remocem have been satisfied after using the paint. The second highest used paint Berger Robiallac Emulsion also created cases of mostly satisfaction with very few cases of indifference. Weathercoat was used solely by the high-income group, of which cases of satisfaction is many with some users being extremely satisfied. But there were instances of indifference too, which is not at all negligible in number. Most of the respondents confuse Snowcem, a competitor of Durocem, as a product of Berger. In that regard the satisfaction derived from this paint is higher than Durocem. Remocem, another competitor brand of Durocem also brought satisfaction by from all of its users. Lime and Romana Plastic generated neither satisfaction, nor dissatisfaction from its users.

6.2.2 Reasons for satisfaction/dissatisfaction


Table 14: Reasons for satisfaction: Exterior Wall Name of Brand Reasons for satisfaction Good protection Good quality Berger (Unknown) Prevents water oozing out Expected Shade/Color/Service Wide coverage Berger Robiallac Distemper Good finishing Berger Enamel Good protection Smooth/Good Finishing No Problem Occurred/Good Service Good protection Berger Robiallac Plastic Emulsion Expected Shade/Color/Service Durable/long-lasting Durable/Sustainable Appearance Reasonable price Distemper (Unknown) Satisfactory/better service/No problem occurred Durocem Strong/durable Waterproof Good finishing Uncommon/New/Unique Color Shade Good quality Reasonable Price Greater Coverage Beauty/Looks Good/ Elegant

Frequency 1 1 1 3 1 1 1 3 1 3 2 2 3 1 1 6 1 1 1 1 4 1 5

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Lime (Unknown)

Mastercoat

Romana Enamel Roxy plastic

Snowcem

Weathercoat Berger

Satisfactory/better service/No problem occurred Durable/Sustainable Appearance Durable for a years time Durable/long-lasting Satisfactory/better service/No problem occurred Durable/Sustainable Appearance Smooth/Good Finishing Reasonable price Durable Paint doesnt washed out by rain Uncommon/New/Unique Color Shade Beauty Reasonable Price Expected Shade/Color/Service Durable/long-lasting Satisfactory/better service/No problem occurred Durable/Sustainable Appearance Good protection of surface Availability of Expected/desired shade Good protection (against sun, rain and moisture) Looks good Durable/long-lasting

3 2 1 1 1 1 1 2 1 1 1 1 1 1 2 2 2 2 2 1 2 4

Table 15: Reasons for Dissatisfaction: Exterior Walls Name of Brand Reasons for Dissatisfaction Frequency Durocem Shade was not what they expected 1 Walls Affected by Fungus 1 Roxy plastic Shade was not up to expectation 1 Leaks after few months 1 Lime (Unknown) Leaks when it rains 1 Dampens in moisture 1 The reasons of satisfaction after using Durocem are all that could be possible. The mostly stated reason is the durability of the paint. Actually, this is the most-wanted quality in paint especially if it is applied on the Exterior. The appearance, price and the service provided by this product was also stated as the reasons for satisfaction. Durability is also one of the reasons for satisfaction from the competitor brands of Durocem. Weathercoat is also liked for the durability it provides. The appearance, availability of shades and strong protection of surface are also reasons for satisfaction from this product. A difference in the reason for satisfaction can be seen in the case of lime, which is durable for a years time. This reveals that the sustainability of this sort of paint for a whole year is what the users of this paint expect. For other brands

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the reasons are limited within appearance, durability, color, protection, coverage, finishing, etc. The reason for dissatisfaction for Durocem was the unavailability of expected shade, though the reason opposite, acted as the reason for satisfaction for some of the consumers. The same complain also applied for Roxy Plastic. The lack of protection against fungus, rain/moisture is another reason for dissatisfaction in case of both Lime and Roxy Plastic paint.

6.3 GRILLS/GATES
The information regarding the level of satisfaction derived from the users of Grills and gates and the reasons for that are listed in the tables 16 and 17.

6.3.1 Level of satisfaction


Table 16: The satisfaction level for Grills/Gates as percentage of total responses Neither Extremely satisfied Extremely Name of Brand Satisfied Dissatisfied satisfied nor dissatisfied dissatisfied Berger Robiallac Super 23% 53% 23% Gloss Enamel Elite Synthetic Enamel 67% 33% Pailac Enamel 50% 50% Pelican Enamel 100% Romana Enamel 50% 50% Roxy Enamel 100% Only the low-income group used pelican and Roxy enamel and were satisfied by the performance of the products. There are no cases of dissatisfaction for grills/gates. Berger Robiallac Enamel is the brand that brought the highest satisfaction, of which a very notable portion is highly satisfied. The same amount of portion is neither satisfied nor dissatisfied in case of this brand. Elite Synthetic Enamel also produced significant level of satisfaction while almost one-third of the users were neither satisfied nor dissatisfied. Half of the users of Pailac and Romana are satisfied the rests being indifferent.

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6.3.2 Reasons for satisfaction


Table 17: Reasons for Satisfaction: Grills/Gates Name of Brand Reasons for satisfaction Satisfactory service (Unknown) Enamel Washable Prevents Rust Durable Berger (Unknown) Looks good/bright and new Serves purpose up to expectation Satisfactory service/ Serves purpose up to expectation Durable Easy to use Good finishing/ Smoothness Berger Robiallac Super Gloss Good protection Enamel Good/Expected Shade/color High Quality Looks Good/Beauty/ Shines Prevents Rust Reasonable Price Water proof Berger Plastic Durable Prevents Rust Elite (Unknown) Looks Good/Beauty Looks good/bright and new Long-lasting paint Elite Enamel Prevents Rust Good Finishing Durable Good finishing Pailac Enamel Why not? (Satisfied) Excellent quality Pelican Enamel Prevents rust Good Finishing Durable/Long-lasting Romana Enamel Good appearance Good/Expected Shade/color Good service Durable/Long-lasting Roxy Enamel Painters Influence Good service Frequency 1 1 1 1 3 1 6 9 1 5 1 1 1 2 1 1 1 1 1 1 2 4 2 2 1 1 1 1 1 1 2 1 1 1 1 1 1

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Since the grills/gates are all made of steel, the quality of preventing rust is the mostly mentioned reason for satisfaction. The feature of being washable is also a reason for satisfaction for some of the paints, which is a common feature for all enamel paints. The good finishing and appearance also counts for the grills/gates reflects most of the beauty of a house. For Robiallac Super Gloss Enamel Paint, all possible reasons for satisfaction are present that are present for other paints. Only the reason painters influence is unique in case of Roxy Enamel.

6.4 FURNITURE
The tables 18 and 19 display the level of satisfaction derived by the consumers from their usage of paint in case of furniture (both steel and wooden).

6.4.1 Level of satisfaction


Table 18: The satisfaction level for Furniture as percentage of total responses Name of Brand Berger Robiallac Synthetic Enamel Carew Spirit Docupaint-ICI Elite Enamel Elite-Crown Navana Polish Romana Spirit Varnish Wood Paint Zamuna Spirit Extremely Satisfied satisfied 100% 26% 33% 26% 33% 62% 66% 24% 48% 34% 23% 42% 12% 26% 30% 38% 12% 50% 19% 64% 33% 47% 11% 11% 54% Neither satisfied Extremely Dissatisfied nor dissatisfied dissatisfied

50%

11% 13% 16% 62%

50%

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There are cases of dissatisfaction in the varnish and polish category. Half of the users of both the items are dissatisfied, the rests being segregated in indifference, and satisfaction. All the users of Berger Robiallac Enamel are satisfied. There are high levels of satisfaction among the brands Carew, Docupaint, Crown and Zamuna, where all of the users of the latter one are satisfied.

6.4.2 Reasons for satisfaction/dissatisfaction:


Table 19: Reasons for Satisfaction: Furniture Name of Brand Reasons for Satisfaction Frequency Navana Good quality 1 (Unknown) Enamel Prevents Rust 1 Berger (Unknown) Looks Good/Beauty 1 Good service 2 Long-lasting paint 6 Long-lasting Glaze 1 Good Finishing/Smoothness 3 High Quality 1 Berger Robiallac Super Gloss Enamel Good/Expected Shade/color 1 Prevents Rust 1 Looks Good/Beauty/shines 2 Reasonable Price 1 Water proof 1 Durable/Serves longer 1 Docupaint ICI Looks good/elegant 2 Prevents Rust 1 Elite (Unknown) Looks Good/Beauty 1 Prevents fungus/worm-eating 1 Elite Crown Looks good/elegant 1 Matches with the furniture 1 Prevents rust 2 Good glaze/gives glow 1 Elite Enamel Good Physical Appearance 2 Durable/ Long-lasting paint 5 Good Finishing 2 Navana Local brand 1 Good glaze/gives glow/ Brightness 2 Polish (Unknown) Durable 1 Prevents (protection against) weevil 1 Polish Zamuna Good service 2 Romana (Unknown) Durable/Serves longer 1 Romana Enamel Good Finishing 1 Romana Synthetic 1 Good/Expected Shade/color Enamel Spirit (Unknown) Prevents fungus/worm-eating 1

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Good quality 2 Prevents (protection against) weevil 2 Good Physical Appearance 2 Brightness 1 Varnish (Unknown) Prevents Moisture 2 Ensures longer life of furniture 1 Glows after use 1 The reasons for satisfaction for the enamel paints that was assumed to be used for steel furniture are somewhat same as those mentioned for the grills/gates. For the paints (mostly varnish and polish) used for wooden furniture, the durability, prevention of weevil, beauty, good finishingetc are commonly seen as the reasons for satisfaction. The varnishes and spirits both branded and un-branded are seen to derive satisfaction for the longer life of the furniture, protection against fungus and moisture, and good appearance. Table 20: Reasons for Dissatisfaction: Furniture Name of Brand Reasons for Dissatisfaction Frequency Polish (Unknown) Took long time to dry 1 Varnish (Unknown) Looks Bad 1 The reasons for dissatisfaction came from the users of polish and varnish, which are the taking of a long time to dry and bad physical appearance.

Spirit/varnish/polish Vanish/Spirit

6.5 RECOMMENDED STRATEGY FOR BERGER PAINTS


Berger Paints should note down the reasons that caused satisfaction in the consumers mind which are not present in its products. Also the reasons for which dissatisfaction occurred from both of its own and competitors brands should be taken into serious consideration so that this could be avoided in the products of Berger in future. The level of satisfaction derived from Berger and its competitors brands are to be evaluated so that Berger can be aware of its status in the consumers mind, among the competitors. The level of indifference (neither satisfied nor dissatisfied) should be upgraded to the level of satisfaction. Moreover, the level of satisfaction should be upgraded to the level of high satisfaction by taking necessary measures.

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7. COMPARISON AMONG THE DIFFERENT PAINTS


The paints of the different companies vary in various attributes. This can be in price or in quality or in any other feature. By comparing the various attributes and by placing different level of importance to each attribute, the consumers come to a final decision regarding which paint to buy. The objective of this chapter is to determine the rating the consumers giving to each attribute of some of the paints available in the market and thus compare the different brands. The attributes that will be taken into consideration while comparing the different paints are price, durability, physical appearance, smoothness, coverage (the amount of space a specific quantity of paint can cover), and color shades available. The attributes durability, physical appearance, smoothness and coverage can be termed as quality attributes. The respondents had been asked to rate the above-mentioned attributes of Berger, Romana, Elite and Pailac on a scale of 1 to 5. A respondent would give a 5 to an
attribute if he/she thought that the companys paint is excellent in that attribute, 4 if it is good, 3 if it is neither good nor bad, 2 if it is bad, and 1 if it is extremely bad. If the consumer does not know anything about that paint, he/she would leave the space blank. The rating given by all the respondents for each attribute of each brand of paint was taken and the average rating was determined for each attribute of each paint.

7.1 FINDINGS
By determining the average rating of each attribute, the following chart was created.

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25 4 20 4 15 4 4 4 3 0 Berger Romana Elite Pailac 3 3 3 10 3 3 4 4 4 3 3 4 4 2 3 3 3 3 4 Color shades available Coverage Smoothness Physical appearance Durability Price

Figure 33: Comparison of different paints from customers point of view The numbers given in the bar chart above are the average ratings given by the respondents to each attribute of the four paints shown above.

7.2 ANALYSIS
The above chart shows that Berger is thought by the respondents to be Good, a rating of 4 in five of the attributes which are availability of color shades, coverage, smoothness, physical appearance and durability. These are the four attributes of paints that Berger excels in. But it got a rating of 3 that is Neither good nor bad in Price, which is lower than the rating of all the three paint companies. This lower rating is due to the high price of Berger paints. Romana got a 4 only in the attribute Price, due to its lower price. But it got a 3 in all the other five attributes. Elite is better than Romana in that it got a rating of 4 in three of the attributes, which are smoothness, physical appearance and durability. This shows that, according to the respondents, Elite is nearly equal to Berger in terms of quality. It would have been equal to Berger in quality if it would not have got a rating of 3 in coverage, the other quality attribute. It got a rating of 4 in price, due to its lower price.

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Pailac is the worst among the four as it got a 3 in all the four quality attributes. It also got a rating of 2 which means Bad in the attribute, availability of color shades. This is due to few color shades that Pailac offers to the consumers. It also got a rating of 4 in price, due to its low price. Thus comparing the four paints according to the rating given by the respondents, we can say that Berger is the best among the four paints, although it is higher priced. Elite ranks second, while Romana ranks second and Pailac ranks last.

7.3 RECOMMENDED STRATEGY FOR BERGER


Berger should try to improve its quality more in terms of coverage, smoothness, physical appearance and durability so that it can get a rating of 5 (Excellent) in these attributes in the future. It should also try to bring out newer and uncommon shades which will also help it get a rating of 5 in this attribute. Moreover it should try to lower its price a little by doing more research, modernizing its production facility and also by increasing efficiency. Although the price would still be higher than the local paint companies, this lower price combining with the best quality would help it to be the unparallel paint company in Bangladesh.

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8.

AWARENESS LEVEL REGARDING PAINTS

OF

THE

CONSUMERS

In most of the households, the members of the family except the main decision taker are usually not aware of the paint that has been used in their house. It has also been seen; that even the head of the family does not know exactly what type of paint has been used in their house. These people just depend on the painter or other external parties. They just mention their budget and then the painter or the dealer suggests the brand and type of paint to be used. A good number of the main decision takers, let alone the other members of the family are even not aware of the qualities and the price of the competition brands that are in the market. For this they again depend on external parties. This report will test the awareness level of the consumers regarding two things. Firstly, it will determine whether the consumers are aware of the type and brand of paint that has been used in their house in the recent past. Secondly, it will determine whether the consumers are aware regarding the price and qualities of the other brands that are present in the market.

8.1 AWARENESS LEVEL REGARDING THE BRAND AND TYPE OF PAINT USED
To get the answer to the question regarding the awareness level of the consumers regarding the type and brand of paint used, we will focus on the question where we asked the respondents what type and brand of paint they used for their interior walls, exterior walls, furniture and grills/gates in the recent past. Based on the answer to that question we will divide the respondents into three groups for interior walls, exterior walls, furniture and grills/gates. These are the consumers who are:

Aware of both: These are the customers who know (or could recall) both the type of paint and brand they had used in the past. Aware of either: These customers could recall (or know) either the name of the brand or the type of the paint they had used in the past.
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Unaware: In spite of their previous usage, these customers dont know (or could not recall) anything regarding the brand and the type of paint. paint

Thus based on their responses, the total number of consumers falling into each of these three categories was determined. This was then converted into percentage of the total number of respondents who painted their interior walls, exterior walls, furniture and grills/gates in the recent past. Those respondents who did not paint any of the objects mentioned will not be counted in calculating the awareness level.

8.1.1 Findings:
The findings regarding the awareness level for each application can be seen in the following chart.
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 11% 1% Interior Wall Exterior Wall Furniture 6% 32% 25% 22% A ware of Either 62% 49% 88% 80% A ware of Both

Percentage

16% 4%

Unaware Grills/ gates

Application

Figure 34: Awareness of consumers regarding paint type and brand used

8.1.2 Analysis:
The above chart shows that, the category of paint regarding which the maximum number of consumers is Aware of both is Interior walls. Here 88% of the respondents could say what brand and type of paint they used. The unawareness level is also the least in this case, which is 1% of the respondents. The next category regarding which the respondents are Aware of both is Grills/Gates, which is 80% of the respondents. This proves that people are somehow interested or are very

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knowledgeable regarding the type and brand used for their interior walls and grills/gates. The percentage of Aware of both is not bad for Exterior Walls, but it is very low for Furniture, which is about 25%. But 49% of the respondents of Furniture could at least either say what brand was used or what type of paint was used. The low awareness level of the paints used for furniture could be due to the fact that, most of the respondents used spirits or polish in their furniture and people dont care about the brand of polish or spirit that is used. They just leave it upon the carpenter regarding this matter.

8.1.3 Recommended strategy for Berger:


The representatives of Berger should put more effort (especially on exterior wall paints) on educating consumers regarding the type and brand of paints available in the market. This would help the consumers make a wise decision and thus enhance customer service.

8.2 AWARENESS LEVEL ABOUT THE CHARACTERISTICS OF THE BRANDS AVAILABLE IN THE MARKET
This awareness level will be determined through the question where we asked the consumers to compare the different paints in the market based on certain attributes. Those who have idea about the attributes of all the brands have filled the full table. But those who could not fill the table fully are considered unaware regarding the characteristics of other brands in the market. The respondents are again divided into three classes, based on their responses to the question.

Fully Aware: These respondents could answer about all the brands and fill the table completely. Moderately Aware: These respondents have idea about two/three brands other than the one they used.

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Unaware: Respondents who could not rank any of the brands except the one they have used in the past fall in this category.

The total was determined for each of these categories and then the percentage of the total number or respondents falling into each of these categories were determined.

8.2.1 Findings:
The findings can be seen in the following chart.

Extent of Awareness

31% 41%

Fully Aware

Moderately Aware Unaware

28%

Figure 35: Paint related knowledge of the consumers

8.2.2 Analysis:
The above chart shows that only about 41% of the consumers are Fully aware about the paints in the market. This is very low, considering the fact that this is less than half of the respondents and most of the paint users should have complete knowledge about other paints to make wiser decision. Moreover the number of respondents who are Unaware about the other brands available in the market is also high, which is not good for informed decision making by the paint users. This also proves that a big number of the respondents are actually unaware about the characteristics of all the
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brands of paints and only become somewhat aware of their brand after they have used it. This high level of unawareness results in the users depending on the external parties like painters and dealers in comparing the brands available in the market and making a choice. Sometimes painters and dealers have links with the paint companies and thus convince these paint users that that paint with which the painter has link is the best in the market, although this might not be the case. In return the painter receives some gifts. This results in the user buying sub-standard paints, resulting in faster degradation of the painting.

8.2.3 Recommended Strategy for Berger:


Berger should take the initiative in informing the consumers about the characteristics of all the brands available in the market, including its price. In this way they could assure itself that the paint users know where its paint stands in terms of the other brands. These would help the paint users make the right decision.

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9.

SERVICES REQUIRED COMPANIES

FROM

THE

PAINT

Different paint companies offer different types of services to the consumers. But the services offered are usually insufficient. This is usually due to the extreme focus of the paint companies on the dealers. Bergers policy is to do dealer oriented selling rather than customer oriented selling. This focus on dealers has left the dealers deprived of receiving good service. Not only that, the less attention towards the consumers is also a reason for the lack of awareness of the consumers regarding paints. Thus to enhance customer satisfaction and be maintain its position in the market, Berger should focus on improving its services to the consumers. During the survey the respondents were asked to state what services they required from the paint companies. Their required services were categorized into different groups like Customer service, Quality of the product, Price of product, Selling techniques, Promotion and Shades. The total number of respondents asking for each service was also determined.

9.1 FINDINGS
The findings of the survey are given in the following table. Table 21: Additional services required from the paint companies Services Details 4-5 years' guarantee/warranty Giving booklets which promote the brands and create customer awareness Providing free advice or interior design service to show which color suits the house and surrounding best Providing free catalogs, manuals, samples Customer Service Home delivery service Personalized services according to house or room Providing paints in buckets with measurements Service of giving advice or consultation on the paint depending on the type of wall Provide suggestions regarding the mixing and maintenance of paints Quality of Decreasing the thickness of the paint

Number 5 5 11 11 5 1 1 2 1 1

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Product

Price of product

Shade

Selling techniques

Promotion

Improving the durability and physical appearance of the paints that is better quality Creating paints that maintains the glossiness Paints suitable to the weather, moisture of our country that keeps the wall durable and protects from damp Improving the quality of the low-priced paints Competitive Pricing/ Value for money Price of good quality brands should be made affordable by all Price quotations should be published in newspapers to reduce different quotes in different outlets Price should be consistent to the service/quality and shade Reducing the quality and price difference between different companies Create shades according to customer choice Every company should have a color bank Reflection of the desired color Should come up with lot more shades Customer-oriented selling, not dealer-oriented Providing a wall where the paint can be applied before use Providing good painting and maintenance training to the painters and providing professional painters with free equipments and catalogs Sales representatives should be smart and honest Getting some real life satisfied clients and promote their comments rather than promoting the quality of the product only More and regular information regarding paints from the paint companies Sponsoring the interior decoration-related magazines

4 4 5 3 7 1 1 7 3 1 2 3 1 11 1 6 1 2 4 1

9.2 ANALYSIS
From the above table we can see that the services most required by the paint companies are Providing free advice or interior design service to show which color suits the house and surrounding best, Providing free catalogs, manuals, samples and Doing Customer-oriented selling, not dealer-oriented, which are one of the major weak point of the paint companies. Although these services were mentioned by most of the respondents, the other services mentioned are not less important.

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Thus, we can summarize by saying that consumers require more customer service by providing them with advice and help including home service regarding the various aspects of the paints. They also require better quality products and better priced products. The price should also be published in the newspapers to avoid price differentiation by the dealers. The shades should also be improved in terms of quality and quantity. Moreover companies should go more for customer oriented selling providing better and trained representatives and painters. The promotion technique should also be changed, by showing satisfied clients instead of the paint only and by sponsoring interior decorating related magazines.

9.3 RECOMMENDED STRATEGY FOR BERGER


Berger is lacking behind in many of the services mentioned above. It is the duty of this company to start focusing on their consumers more than the dealers. Berger should employ a lot of smart and trained sales representatives whose only duty will be contact the household consumers. These representatives will provide the services mentioned. Only then can Berger increase customer satisfaction, thus increasing its share and maintain its stronghold.

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10. CONCLUSION
A product is originated, designed and marketed to serve its customers. As a rule, the success of the product depends on the level of satisfaction derived by its customers. A product can never be a winner in the market, unless its consumers are critically analyzed in terms of their buying behavior. Throughout the research, the consumers of household paints are extensively studied. The outcome of the project is reflected in the report along with some suggestions on the strategies to be followed by Berger Paints. The focus of this report was the consumer behavior regarding paints. Some inference can be drawn while wrapping up the report, which are stressed in this chapter. The demographic characteristic of the consumer is one of the main determinants of their behavior towards a particular product. The most knowledgeable member in the households, about the recent paint-purchase process is surveyed and it was seen that almost all of them are very well educated. So, the target for the paint companies should be the most educated ones in the families for they are found to be the best informed. There is variety of occupations found to be held by the consumers, in different proportions. Since the sampling procedure was random (and to some extent convenient and judgmental) in nature, we can assume that the combination of professions reflected in the survey result is somewhat similar to that of the whole consumer base in Dhaka. This should be taken into account in designing the marketing strategy. Similarly the implication of the age combination of the consumers is vital for the paint companies. Though the majority of the samples are found to be in the high-income group, the portion of the low-income people is not to be ignored. Berger Paints Ltd. has been able to lead the high-income segment successfully but could not take the market in the low-income segment. To most of the respondents, Berger is an expensive brand. The quality of the product is reasonably associated to the price of it. Still the low income could not go for its product because of its unaffordable price. There are some cheaper brands (Parrot, Peacock) of Berger available in the market, which are seen to be very low-quality product. None of the respondents were the users of those brands. Surely the sample does not reflect the whole of the population, but it certainly brings out some facts about the consumers of paint. Berger Paints Ltd. should put (but not divert) its attention to this segment the way it is doing so in the high-income segment.

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The family members are the main players in the paint purchase decision-making process with reasonable influence of the external parties. So the product design and promotion should be shaped to the demand of the households. The influence on external parties comes from the indecisiveness of the members in the families regarding the choice, selection and purchase of the product. So they should be made well aware of the quality and availability of the products, along with its price and application techniques. Many of the consumers are confused about the real price of the paints, which is neither written on the label of the package, nor in the advertisements. The retailers take substantial advantage of this. To be more customeroriented, Berger Paints should make the price list available to the customers. Sometimes, people want to apply the paints by themselves (for furniture or personal decoration). If Berger Paints provides free manuals on the proper application procedure of paints along with its products, customers would definitely go for it. There were incidents when the paint turned out to be unsatisfactory due to flawed application procedure. These can certainly be reduced if customer-responsiveness is shown by suggesting guidelines to paint. Also the company should train its sales representatives to go approach the households and make effective presentations to create awareness among the decision-takers in the purchase process. Many of the respondents sought for trained painters supplied by the paint companies. Berger can go for a contract with the best professional painters for each location. The mention of the list of these painters can help the consumers going for the right person. The painters will work in discount if the paint used by the consumer is brand of Berger. Therefore, the customer will be free from the troubles created by the lack of guidance and adequate information of any sort. The dependency on external party is beneficial only if it is reliable, otherwise it could be hazardous as well. The paint companies can easily remove the uncertainty in the whole paint purchase process, and Berger can take the initiative to prove itself as the most customer-focused among all the others. Since price is the major factor in considering which companys paint to buy, it should be charged reasonably. The consumer behavior is very much negatively related to the price of the product. In a country like ours, people consider the price more than quality in many cases. This tendency greatly affects the choice of paint in the lowincome segment. Again, reduction in the currently high-priced brand would definitely bring adverse effect on its perceived quality. Berger could rather improve the quality

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of its low-priced brand. The durability of the brands of Berger has never been put into question. Still, the customers should assess the two left-out brands in terms of durability and quality. Berger could offer special discount for its items during the common festival that triggers painting events. The factors identified as reasons for painting an item or surface are to be considered seriously by the paint companies for these can be used as gear to increase mass sales. Also the painting occasions determined are to be utilized to generate discount sales. The recommended strategies based on the interval between two subsequent painting occasions are also to be taken into consideration in this regard. Berger Robiallac Plastic Emulsion is the most frequently mentioned brand by the consumers for interior usage. Even some of the respondents mentioned the very popular TV advertisement for this product. It has successfully grabbed its share in both the high income and middle-income segment. On the other hand, the distemper paint for the interior is not that popular, though there is some share of it in the middleincome market. The use of lime in the low-income segment for exterior can serve the purpose in cheap, but the non-durability of this paint reduces time interval between two painting occasion and thus increases effort and long-term cost. Awareness among this group should be created revealing the fact that quality is more important in choosing items like paint, where durability is one of the highly considered factors to judge the performance of the product. Though Berger Durocem is comparatively much highly priced than lime, Romana Plastic or Romana Enamel, there is a substantial quantity of users of this product in the low-income segment. This again reflects the fact that people try for the best quality even if the price is higher. For grills/gates, the only type of paint is used is enamel paint. The high-income group that has been seemed to go for the most expensive brands on other surfaces is found to go for the cheaper brands in case of this item. Though Berger Enamel is the highest sought brand here, the presence of the others is much significant. This certainly is not because of the affordability of those paints. It could be assumed that the quality of these enamel paints is perceived to be at the same level with that of Berger. For Furniture, the wide use of spirit and varnish is remarkable. To gain this market, Berger Paints has finally come up with its new brand Woodkeeper. While doing the

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survey, none among the respondents seemed to know about this product, probably for its very new arrival. The painting occasion is not done very frequently. There are already many established brands for this item in the market People also tend to stick to the same brand that have satisfied them in their previous usage situation. So, to acquire a considerable portion of this wood-paint market, Berger has to create mass awareness the way it had done for Berger Robiallac Plastic Emulsion. The reasons for satisfaction derived from the previous usage are to be considered one by one so that the customers can always be kept satisfied. Loss of a potential customer due to unawareness is the thing happening in case of a portion of the consumers. For all the surfaces, especially in furniture, many consumers are not aware of the type or brand of paint. This is disadvantageous for Berger because if a brand of this company were wrongly applied, negative image would be created in the purchasers mind. Again, advantageous in this sense that, these unaware customers can initially be made perfectly aware of the types and brands supplied by Berger. Once satisfaction is derived from the products of Berger Paints, there would be repeat purchase of that item. The paint related knowledge is also a determining factor in which way to inform the consumers about the paints made available by Berger and its quality. In rating the paints, Berger is rated the lowest in price though highest in all the other characteristics. This means that customers are satisfied regarding the quality of the products of Berger Paints, though they dont approve the price charged for it. The whole report mirrors the behavioral aspects of the consumers in the paint market and where Berger stands in the consumers preference and usage. There are still many rooms for improvement in the features of the products and the strategies followed by the company. This could be interpreted in two ways. One is that Berger is lacking behind in many aspects, the other is that Berger has an opportunity to improve and gain more customer preference. One thing is very clear from the findings of this research, which is, Berger, as well as the other companies has not paid enough heed to the customer needs until now. The Paint business is more retailer-oriented than consumer-oriented. A customer can never be loyal to a brand unless his/her demands are fully met. Therefore, Berger has to view the consumer behavior as golden mine to

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gain more mind-share. It has to conduct consumer survey on a periodic basis and act the way consumers want.

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