BERGER PAINTS BANGLADESH

An assignment submit to the faculty of BBA in Part fulfillment of requirement of mid-term examination In Principles

of Marketing

Prepared and Submitted by-

ORCHID
NAME ID

Hossen, Md. Sabbir Chwdhury, Md. Motaher hossain Mohd. Adnan Islam, Jahirul Rashed, Md. Harunur

08-09984-1 07-09503-3 08-11093-2 06-07364-3 08-09845-1

COURSE INSTRUCTOR:

KHAN, TAHSINA NIMMI

American international University of Bangladesh

AIUB
1

BERGER PAINTS BANGLADESH

Acknowledgment
First we want to thank to our respective course instructor KHAN, TAHSINA NIMMI. For his co-operation despite his busy schedule, he was always there to guide us whenever we needed help, his keen insight, advice and suggestion have helped us to improve our assignment.

His guidelines have enabled us to complete the assignment which is extremely important for our course principles of marketing.

We would like to remember the smiling face of all the people who give us their valuable time.

All in all it was a wonderful experience to work as a team in doing the study and preparing this assignment on such an important issue.

Last but not the least we are also grateful to some of our friends and well wishers who inspired us to give information of this assignment.

BERGER PAINTS BANGLADESH

# Table of Contents

Introduction

Mission vision

SWOT Analysis

6-14

BCG matrix

15-17

Marketing Mix

18-24

Conclusion

25

BERGER PAINTS BANGLADESH

Introduction
Berger is one of the oldest names in paint industry tracing back to 1760. Lewis Berger, a German national, founded dye & pigment making business in England. Lewis Berger & Sons Limited grew rapidly with a strong reputation for innovation and entrepreneurship culminating in perfecting the process of making Prussian Blue, a deep blue dye, a color widely used for many European armies' uniform. Production of dyes & pigments evolved into production of paints & coatings, which till today, remains the core business of Berger. Berger grew rapidly by establishing branches the world over and through merging with other leading paint & coating companies. Berger has been involved in paint business since 1950 in Bangladesh when paints were first imported from Berger UK and then from Berger Pakistan. In 1970, Berger Paints Bangladesh Limited (BPBL) erstwhile Jenson & Nicholson had set up its paint factory in Chittagong at an estimated investment of TK.4 million. The shareholders were Jenson & Nicholson (J& N), Duncan Macneil & Co Ltd and Dada Group. Duncan Macneil subsequently sold their shares to majority shareholder J& N group. The Dada group's share ultimately vested with the Government of Peoples' Republic of Bangladesh after the independence. The name of the company was changed from J& N (Bangladesh) Limited to Berger Paints Bangladesh Limited on 1st January 1980. In August 2000, J& N investment (Asia) Ltd purchased Government shareholding. Now, Berger Paints Bangladesh Limited is 100% owned by J& N Investment (Asia) Limited, UK. With the passage of time Berger has unfolded its kaleidoscopic wings into all kinds of paint solution be it Architectural paints or Industrial coatings, Marine paints or Powder coatings. Berger has it all!

BERGER PAINTS BANGLADESH

To give a comprehensive and sustainable painting solution to the need of the industry, Berger has invested more on technology and Research & Development (R & D) than any other manufacturer in this market. It selects the raw materials from some of the best known names in the world: MITSUI, MOBIL, DUPONT, HOECHST and BASF are a few to name. The superior quality of Berger's products has been possible because of support from its advanced plants and an international-standard of strict quality.

Investment in technology and plant capacity is even more evident from the new factory of Berger Paints Bangladesh Limited at Savar. The state-of-the-art factory is an addition to Berger's capacity to make it the paint-giant in Bangladesh. Not to forget about the first Double Tight Can manufacturing unit in its Chittagong factory. All, together with a devotion into R & D to make it the reputed center of Basic & Applied Research in paint and Resin Technology, proof the commitment that Berger has for this industry.

With its strong distribution network, Berger has reached almost every corner of Bangladesh. Nationwide Dealer Network, supported by 7 Sales Depots strategically located at Dhaka, Chittagong, Rajshahi, Khulna, Bogra, Sylhet and Comilla has an unmatched capability to answer to paint needs at almost anywhere in Bangladesh.

The sheer innovation and development drive is reflected on the various products Berger has so far launched in this market. The product range includes, Specialized outdoor paints protective of the worst weather conditions, Color Bank, superior Marine Paints, Textured Coatings, Heat Resistant Paints, Roofing Compound and Epoxies. In each of the product category, Berger has always been the pioneer and will continue to do so proudly.

BERGER PAINTS BANGLADESH

Vision:

We shall remain as the benchmark in the Paint industry by: Being an innovative and technology driven Company consistently delivering world-class products ensuring best consumer satisfaction through continuous value added services provided by highly professional and committed team.

Mission:
We shall increase our turnover by 100% in the next five years. We shall remain socially committed ethical Company.

BERGER PAINTS BANGLADESH

SWOT Analysis
The following SOWT analysis describe Berger decorated paints present Strengths, Weakness, Opportunities and Threats.

Strengths

Product Quality
On the basis of quality there are two types of paint in Bangladesh market, premium quality another one is lower quality. Berger paint is one of the well-known companies that provided premium quality product.

Wider Product Line

In Bangladesh, there are different paint company and sector. Berger has a broad line of product to satisfying the needs of decorative paint users, marine paint users and industrial paint users. It has got an opportunity to gain some share with undercoat.

Group Image
Berger Group is one of the largest groups in Bangladesh. Its past record is full of success on the way of full fill consumer needs, wants, and demand. Berger paint successfully enlarge its goodwill although establish separate reputation.
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BERGER PAINTS BANGLADESH Technical Services

Consumer in our country is not worry about different feature on the product. As a result, they do not get the appropriate result form paint and painting. They face some sought of problem like mixture of paints, lack of awareness about care of surface. Berger always provides free technical advises on the above-mentioned situation to its valued consumers. Not only that Berger Technical Team takes steps to give proper solution to the problems to ensure clients satisfaction.

Skilled Manpower
Members of Sales and Marketing team in Berger Paints are well educated, experienced and skilled enough to define, design, develop and implement the policies and strategies of the company effectively and efficiently. The sales and marketing team is very strong they ready to provide their full effort to achieve the organization goal.

Central Depot
Berger has a central depot in Dhaka from where delivery made to different areas of the country. That strong management and control over product delivery can be easily recognized the need and help to overcome future problem.

BERGER PAINTS BANGLADESH Other Services

Berger delivery the product by their own services, without charge to large amount customers. They also provided sample paints to their corporate buyer for gather an idea about the brand.

Wider range of shades

Shades are very important for doing business in paint market. Different customers order different shades of paints. To satisfy all the consumers company must have wide range of shades. Berger can provide any shade in shorter time to customers producing them in the factory. This has increased satisfactoriness of the company.

color bank
Color bank is a computerized machine where paint of any shade is possible to make combination different paints. Competitor are already adopt this technology, Berger paint do it through this process for that reason it doesnt consume customer valuable time and customer are satisfied for that matter.

BERGER PAINTS BANGLADESH

BERGER PAINTS BANGLADESH

BERGER PAINTS BANGLADESH

WEAKNESSES

Lack of promotional activities

Competitors like Berger, Asian have huge promotional activities in the market. They have strong position in Television, Satellite, Newspapers and Magazines etc. But unfortunately Berger Paints is not going that way for that reason market share of Berger paint is not growing as there capability.

Low acceptability of products in Real-estate sector

Rea-estate developers use huge quantity of paints every year. Competitors are already cop these market. Recently Berger has started business in this sector, which is very small. It is think that developers always use best paint in their project. This bear a image, and this influence other customer. Berger has not been succeeded to build that image.

Location disadvantage of factory

Factory establish of Berger paint is in Chittagong. But business is run and monitored from Dhaka. This location gap has created wastage of time, cost, energy and money. It has also produced a gap of communication between the factory and head office for that reason market is affected.

BERGER PAINTS BANGLADESH Narrow dealers network

Dealers network of Berger paint is very small. Still at some districts, there is no dealer. As a result, expansion of business is very slow.

BERGER PAINTS BANGLADESH Lower credit facilities

Paint market is a credit-based market Berger paint provides lower credit facilities to the dealers and corporate purchasers. As a result, they search alternative brands to get more credit facilities. This is a barrier of the company to develop market demand.

OPPORTUNITIES

Improve market portfolio

The paint market is now only 450 Cores Tk and it increase every year. So Berger have a strong opportunity to increase market share through develop new portfolio like RealEstate Developers, Government and Semi Government Organizations, Private Organizations etc.

Promotional activities
Berger paint has no financial problem so they have a strong opportunity to increase promotional activity to increase their brand image.

Establishing show room

Berger can set up showroom at least one in each area of the country. The aim of set up this show room would no to sale the products only, but to provide suggestions on painting to the users.

BERGER PAINTS BANGLADESH

THREATS

Entrance of new competitors in the market

Paint market is looking profitable and growing in our country, for those reason new companies are willing to enter the market.

Unlimited credit facility by the competitors

Some paint company has offered unlimited credit facilities to dealers that are barrier for growth of market share of Berger paints. For example, Asian Paints are providing huge credit without maintaining any limit. Even, they are somehow trying to dump the market, as they are financially giant in paint industry.

Customers-bound policy by Berger Paints:

Berger, adopted such policy that dealers would give more attention on its products ignore the others. For example, they have given sales targets to the dealers and offered Air Trip to in a foreign country against achievement of the target. Again, they have announced that id a particular dealer is able to sale Enamel paint more than the previous sale; he would get additional Tk 10.00 from each gallon (3.64 ltr). Such schemes have indirectly bound the dealers to sale their products.

BERGER PAINTS BANGLADESH

BCG Matrixes

Berger has a wide range of products and is the market leader in paint business over the world. However, it has a limited number of brands on Bangladesh. The peculiarity of these brands is that those brands which are established ones are really ones which dominate the market and make almost no room for any competition while, the brands which are not so well established are not so on account of any qualitative deficiency but either because of a weak promotional campaign of the company or on account of a misplacement of the product in the target segment. Nevertheless, we go ahead with our study. The present chapter is devised in the manner that the overall matrix comes first and then each products placed on the matrix is explained as to why it finds a place in the grid it has been placed in the matrix, along with the relevant empirical data reproduced therein. Also, in the matrix itself, though the products have been placed in one of the categories, their projected placement i.e. where should be or can be placed with a promotional exercise, is also indicated by an arrow which shows the appropriate category in which the product is aimed to be placed. For example, Weather Coat Smooth has been the pioneer of the industry in the Bangladesh market. But as far as Berger is concerned, it is only a cash cow. Therefore it is aimed to be placed in the Stars. This is indicated by an upward arrow which signifies that the product is aimed for repositioning and the direction of the arrow shows the grid where it is heading to, in this case upward arrow is indicating to the stars. Also, besides the intended placement of the products, there are some products which need to be taken off the market. For example, Berger brand of Robbialac Synthetic Matt was taken off the Indian market on 29.12.2003 when strategically it was found unviable to continue with it. This shows the intention of Berger not to play in the Bangladesh market though it has a well established base of the same brand abroad and it could have reaffirmed a market share had it decided to introduce a new brand.

BERGER PAINTS BANGLADESH

BCG MATRIX in diagram

Star Question marks

Robbialac SPD Robbialac

Acrylic Plastic Emulsion (APE)

Jhilik Luxury Silk Robbialac Wood Primer

Weather Coat Smooth

Cash cows

Dogs

Robbialac Synthetic Matt. Robbialac

Super Gloss Synthetic Enamel

Durocem Solid Cement Coating Tartaruga- The One Coat Textured Coating

BERGER PAINTS BANGLADESH

BERGER PAINTS BANGLADESH

BERGER PAINTS BANGLADESH

Marketing mix
Berger will be maintaining the following marketing mix approach to achieve marketing objectives:

PRODUCT

Physical properties: Every competitive pack size will be available in the market to take advantage of meeting satisfaction of every type of buyer. Company will be able to produce and serve any shade which will customer demand within a short of time.

Quality:

Variation in quality is sometimes identified as serious problem for which brand image is lost to a particular group of buyers. Berger decorated paint will minimize quality variation 50%, of 5% total product variation.

BERGER PAINTS BANGLADESH Product offering

Product

Pack Size(Ltr) 18.2 3.64

MRP Including VAT(Tk) 2,725.00 590.00 150.00 76.00 38.00 1,360.00 303.00 78.00 2,700.00 590.00 154.00 3,400.00 3,150.00 720.00 660.00 186.00 170.00 2,950.00 590.00 165.00

Super Gloss Synthetic Enamal

.91 .455 .200 18.2

Synthetic Polyvinyl Distemper

3.64 .91 18.2

Acrylic Plastic Emulsion

3.64 .91 20 18.2

Weather Coat

4 3.64 1 .91 18.2

Wall Primer Sealer

3.64 .91

BERGER PAINTS BANGLADESH

Product Pack Size(Ltr) MRP Including VAT(Tk) Aqua sealer wall primer 18.2 3.64 .91 Bright paint Aluminum 3.64 .91 .455 Red oxide primer 20 4 .91 Anti cor. Red oxide 18.2 3.64 .91 Synthetic under cote 3.64 .91 .455 Synthetic surface primer 4 3.64 1 .91 Texture finish Roofing paint 4 20 4 Silicon brick solution 4 1 180 2,600 540 145 590 150 76 2,425 510 125 1,800 380 100 480 126 69 540 485 140 126 620 4,000 825 730 130 30,0000

primer

BERGER PAINTS BANGLADESH

G.P. thinner T-6 180 20 4 1 500 9000 1100 225 69 39

PLACE

Geographic Segmentation:

Dealers of Berger paints are small in number. So companys dealer network is very narrow. Company has only 340 numbers of dealers in the whole country. Companies will increase dealers 340 to 500 within next 3 years.

The company has 6 (six) areas in the country with 11 zones for conducting Sales & Marketing activities. Businesses are operated at 40 districts only. Still 24 districts are to be covered in spreading the existing dealers network. Company will start its operation more 10 districts within next 3 years.

BERGER PAINTS BANGLADESH

Visit:

Marketing Executives will visit their respective clients to cover all parties assign to them. Zone in charge supervises the activities of Marketing Executives where as Area Managers supervises the Zone in charges. Marketing & Sales Manger and General Manger will occasionally visit the whole market on behalf of management.

Stock:

All types of running paints with running shades reserved in stock to protect delivery trouble. An uncommon shade is not preserved in the stock. If a client demands paints of uncommon shades, they will produce after their notice and at least five days will taken to supply them to the clients.

PRICE

Types of Pricing:

Company will follow a good value strategy. The price will below than the price of , Aqua, Asian and Elite but very close will ASIAN. Management revises the price ending on the situation and scheme occasionally launch by the competitors.

Incentives: Besides the discount policy, an additional 1% incentive will provide for the shop

boys.

BERGER PAINTS BANGLADESH

Product Bonus:

Berger paint will plan of product bonus which also affects pricing of products. Product bonus plan will as follows: For Plastic Emulsion - 2 gallons free against purchase of 100 gallons For Distemper - 1 gallon free for purchase of 20 gallons.

PROMOTION

Banner:

Banner is a good media of publicity. Berger will use banner important places of the country on special occasion and will peak painting period. Banner is low expensive, flexible and high repeat contact and is very effective to attract concentration of people in assigning message.

Bill board:

Bill-board is comparatively expensive but more effective than banner. It is one of the best modes of advertisement. It is mainly set up at road corners, on roof of buildings where sight of people can easily be drawn. Berger paint will build this at different areas of the country.

Neon sign:

Neon sign is a very profitable but expensive media. People are attracted by the sign easily and get an idea or message of the organization. Berger will establish neon sign.

Sample:

BERGER PAINTS BANGLADESH

One of the best modes of sales promotion is sample. After visiting a particular corporate client by an executive, paints required for the client is first identified. Then sample of the required paint of a particular shade is given to the client. Client finds the opportunity to measure the quality and different attributes of the paints. This pursues him or her to use the brand. Berger will adopt this model.

Gifts:

Gifts are not mandatory. Rather it will offer to potential buyers or resellers to increase sales and collection. Different types of gifts will offered to different classes of buyers. For example, for painters, sub contractors, site engineers, shop boys and even for Dealers Berger will gives Tea Shirt and Umbrella. Attractive mug, Clock, Pen Pot, Paper Pot etc are offered to the Engineers, Architects, Purchase Manger, Purchase Officer and even for top level managerial person. All dealers will give an annual sales target each year offering various types of gifts. The gifts depend on fulfillment of the specific target. These may be Color Television, refrigerator, mobile set air ticket to different countries etc.

BERGER PAINTS BANGLADESH

CONCLUSION:

Berger Paints began its painting in Bangladesh since independence. And this has been a footstep to bring more than 230 years of global paint industry experience into Bangladesh. Over the decades, Berger has evolved to becoming the leading paint solution provider in this country and has diversified into every sphere of the industry - from Decorative Paints to Industrial Coatings, from Marine Coatings to Powder Coating and what not.

Berger's one of the prime objectives is to provide best customer support-connecting consumers to technology through specialized services like free technical advice on surface preparation, color consultancy, special color schemes etc. To bolster customer satisfaction, Berger has recently launched Home Decor Service from which once can get an array of services pertaining to painting.

With world class range and durability, Berger is always ready to answer to all weather conditions.