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A STUDY AND COMPARATIVE ANALYSIS OF

MARKET POTENTIAL OF BERGER PAINTS

by
S.P.Vinoth rajah
COMPANY INTRODUCTION
 Berger Paints India Limited is an Indian paint company which
operates chiefly in India headquartered in Kolkata.

 It has come a long way since its inception in 17th December,


1923.

 India’s second largest decorative paint player, Berger Paints


services the market through a distribution network of 82 stock
points and 12,000+paint retailers.
MARKET SHARE

Source- www.equitymaster.com

19% 19%

Berger Paints
Asian Paints
12% Kansai Nerolac
ICI Paints
Other Brand Paints
30%

20%
OBJECTIVES

• Primary Objective:
To identify the drawbacks, why the market share of Lewis
Berger paints is less when compared to other competitive
products.
OBJECTIVES
• Secondary Objectives:
– To study the presence of other similar brands in the
different channels and compare it with Berger Paints.

– Our work comprised of visiting different places, to reach


out to 100 retail counters in the specific area.

– To find out the necessary steps to overcome the drawbacks


Berger Paints.
RESEARCH METHODOLOGY

• Research Design:
– Descriptive research design.

• Data Source:
– Primary Source – Paint Dealers.

– Secondary Source – Records of the company and Internet.


RESEARCH METHODOLOGY

• Data Collection Method:


– Survey Method:
• By personal interview using framed questionnaire.
– Sampling Design:
• Stratified Sampling.
– Size:
• 100 respondents.
BRAND

15% 14%

6% BERGER
ASIAN
ICI
12% NEROLAC COMPANY NUMBERS
OTHERS
Berger 24
53%
Asian 90

ICI 20

Nerolac 11

Others 26
MACHINE
BERGER ASIAN ICI NEROLAC OTHERS

5%
3% 13%

11%

COMPANY NUMBERS

BERGER 14

ASIAN 73

ICI 12

68% NEROLAC 3

OTHERS 5
PAINTS SALES PER MONTH (IN LITRES)
90.0%

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%
Berger Asian ICI Nerolac Others
0 - 500 L 37.5% 22.2% 45.0% 81.8% 57.7%
501- 1500 L 16.7% 13.3% 25.0% 9.1% 26.9%
1501- 3000L 25.0% 18.9% 20.0% 9.1% 11.5%
3001-5000L 16.7% 20.0% 5.0% 0.0% 0.0%
Above 5000L 4.2% 25.6% 5.0% 0.0% 3.8%
PAINTS SALES PER MONTH (IN RS)
70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%
Berger Asian ICI Nerolac Others
0 - 1 Lac 37.5% 22.2% 50.0% 63.6% 57.7%
3 Lacs & Below 4.2% 14.4% 15.0% 18.2% 23.1%
6 Lacs & Below 16.7% 14.4% 15.0% 9.1% 7.7%
10 Lacs & Below 33.3% 14.4% 20.0% 0.0% 7.7%
Above 10 Lacs 8.3% 34.4% 0.0% 9.1% 3.8%
DEALERSHIP (%)
70

60

50

40

30

20

10

0
Paints Hardwares Tiles Electricals Cement Steel
0-20 26 38 0 11 10 4
21-40 33 23 33 16 17 26
41-60 18 27 67 32 43 0
61-80 15 13 0 42 30 70
81-100 8 0 0 0 0 0
CUSTOMER PROFILE
CUSTOMER PROFILE (%)

14%
CUSTOMER PROFILE NUMBERS
House Owners
37% Painters
16%
House Owners 99
Contractors

Engineers
Painters 90

33% Contractors 42

Engineers 39
HOUSE OWNERS BUYS PAINT ON
WHOSE RECOMMENDATION

HOUSE OWNER DECISION


RECOMMENDATION (%)

PARTICULARS NUMBERS

Painter 63
Painter
38%
45% Contractor
Contractor 6
Engineer
Neighbour
Engineer 6
Own Decision

10% 3% Neighbour 17
4%

Own Decision 75
DELIVERY PERIOD
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Asian Berger ICI Nerolac Others
< 2 Hrs 4.4% 0.0% 0.0% 0.0% 0.0%
2 - 4 Hrs 2.2% 8.3% 5.0% 0.0% 0.0%
4 -6 Hrs 7.8% 8.3% 5.0% 9.1% 0.0%
6 -8 Hrs 6.7% 0.0% 5.0% 0.0% 3.8%
24 Hrs 67.8% 66.7% 75.0% 81.8% 76.9%
2 Days 11.1% 16.7% 10.0% 9.1% 19.2%
MINIMUM LOT OF DELIVERY OF
PAINTS
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Asian Berger ICI Nerolac Others
1 Case 97.8% 100.0% 95.0% 100.0% 92.3%
20 Lts 1.1% 0.0% 0.0% 0.0% 3.8%
50 Lts 1.1% 0.0% 5.0% 0.0% 3.8%
IF DELIVERY IS 1 CASE, THEN TIME
PERIOD
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Asian Berger ICI Nerolac Others
< 2 Hrs 3.3% 0.0% 0.0% 0.0% 0.0%
2 - 4 Hrs 0.0% 4.2% 5.0% 0.0% 0.0%
4 -6 Hrs 1.1% 8.3% 5.0% 0.0% 0.0%
6 - 8 Hrs 4.4% 0.0% 0.0% 0.0% 0.0%
24 Hrs 78.9% 70.8% 70.0% 90.9% 80.8%
2 Days 12.2% 16.7% 20.0% 9.1% 19.2%
DELIVERY PERIOD OF SLOW MOVING
MATERIALS
90.0%

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%
Asian Berger ICI Nerolac Others
1 Day 22.2% 33.3% 30.0% 9.1% 11.5%
2 Days 68.9% 62.5% 55.0% 81.8% 69.2%
3 Days 3.3% 0.0% 10.0% 9.1% 19.2%
Above 3 Days 5.6% 4.2% 5.0% 0.0% 0.0%
ACCOUNT STATEMENT OF PAINT
COMPANIES
100.0%

90.0%

80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%
Asian Berger ICI Nerolac Others
Excellent 91.1% 100.0% 90.0% 90.9% 73.1%
Good 7.8% 0.0% 5.0% 9.1% 15.4%
Average 1.1% 0.0% 5.0% 0.0% 7.7%
Poor 0.0% 0.0% 0.0% 0.0% 3.8%
WHETHER THE ACCOUNT STATEMENT
IS UNDERSTANDABLE OR NOT
100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Asian Berger ICI Nerolac Others
Yes 99% 100% 95% 100% 96%
No 1% 0% 5% 0% 4%
SCHEMES OF PAINT COMPANIES
80.0%

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%
Berger Asian ICI Nerolac Others
Excellent 12.5% 32.2% 10.0% 63.6% 42.3%
Good 54.2% 28.9% 10.0% 9.1% 3.8%
Average 33.3% 35.6% 75.0% 27.3% 46.2%
Poor 0.0% 3.3% 5.0% 0.0% 7.7%
WHETHER THE SCHEMES ARE
UNDERSTANDABLE OR NOT
100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Asian Berger ICI Nerolac Others
Yes 99% 100% 100% 100% 100%
No 1% 0% 0% 0% 0%
CONCLUSION
Berger is the 2nd largest decorative paint company and third largest
paint manufacturer in India. Berger Paints is following continuous
growth strategy. The installed capacity as in FY10 for synthetic
resin was 32,287 Metric Ton (MT) per annum while paints,
varnishes and enamel together have an installed capacity of
240,315 MT per annum. The major competitors are Asian and
Nerolac . With proper marketing mix and strategy the company
would be able to increase its dominance in the whole country.
LIMITATIONS
• Since regions from where researcher has to collect the data was pre
specified so some of the regions which were not stated were left out.

• Some of the dealers were hesitant in providing the information due to lack
of trust and familiarity with the researcher.

• In some shops the real owners was not there so information may not be
perfectively up to the point.

• Some of the dealers were inflating their sales figures.

• Only some areas were chosen for survey, so it cannot say the overall
reports.

• Few dealers don’t have the awareness about the survey, so they were scared
to provide the data.
SUGGESSTIONS
• The advertisement is given for only few brands like silk, weather
coat, Luxol, Rangoli easy clean. Therefore the company needs to
emphasize more on the promotion of sub-brands. The advertisement
can be made in a funny manner which would easily reach the
customers.

• Advertisements can be given in south Indian TV channels. Banners


can be given to dealers as a part of promotional activity. People are
not aware about the products of Berger paints so that promotional
activities are very much necessary.

• More and more women can be found perusing the shelves at paint
stalls in search of the right type of paint for their homes. So the
company can target this new set of interested customers by
increased advertising in women magazines.
• Distribution and transportation can be improved.

• The services provided by the company on the website are not being
used because of the low penetration of internet in India. So we
recommend that these facilities should be made available at the
point of purchase.

• Berger could also target few new customers of the same area and
give them gift item. This would make customers feel special and the
positive word of mouth, a factor of customer loyalty, can be
achieved. However it is suggested that this should be done on a trial
basis, for a yearlong period. If the outcome is not fruitful, Berger
can always terminate the idea.
• A one year period can be used for proper evaluation of the dealers,
whether or not they are making proper used of the improved
financial benefits. Upon assessment of the dealers after one year, few
inefficient dealers could be terminated. This would increase
competition within the dealers, and thus increase productivity.

• As there are already many dealers in the urban areas the main focus
can be to increase the sale of paints in rural areas by increasing the
availability in the form of making new dealers.

• Dealers need to improve their approach in selling the Color Bank


option, for which Berger can give more emphasis towards the
dealers. Dealers play a vital role to attract consumer and they are the
one who can convince people buying behavior. Berger Paints is
already in a good position and they successfully can keep good
relation with the Dealer’s but their approach should be more dynamic
and more prompt.

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