Business To Business

Marketing

Project: Berger Paints Ltd

Department: FMS

MBA 1.5 Marketing

Submitted to:

Sir Adnan Shabir

Submitted by:

UsmanAfridi 7116

Abdul HaseebIqbal 7132

International Islamic University Islamabad, Fall 2015

 1. Company Profile:
Berger was established two centuries ago and now it
has grown to become one of the world’s largest paints
manufacturer. In Pakistan, history of Berger is as old as
history of Pakistan. Berger started its operations in
Pakistan in 1950 and was the first organized Paint
Company to offer premium products through import
from the United Kingdom.

BERGER PAINTS PAKISTAN LTD. became a public

limited company in 1974. Berger established its first
local manufacturing facility in Karachi in 1955. As the
country’s economic and industrial sector expanded the demand for quality paints also grew and
Berger continued to make extensions in its product range to meet these requirements.

In 2006, Berger established state of the art manufacturing facility in Lahore. This plant has
provided Berger an edge over its competition through enhanced production. It has enabled
Berger to meet the growing demands of its valued customers across Pakistan. Berger Paints
Head office is located in Lahore.

Berger has the most comprehensive product range for various paint market segments at
different price points. Berger has earned the admiration and trust of customers by virtue of its
superior technology, product quality and a very high level of customized services.

Vision:
We will become the leading paints and associated products manufacturing and marketing
company in Pakistan ensuring best returns to our investors & highest customer satisfaction.

Mission:
We will lead by innovative ideas and technological development in the paints and
associated products in Pakistan ensuring efficient utilization of resources yielding high
returns.
We will ensure highest level of commitment to achieve best quality products and
services.
We will vigorously promote and safeguard the interests of employees, shareholders,
business associates & all other stakeholders.
We will act as a good corporate citizen ensuring service towards community and shall
focus on environment, health and safety.
 2. Macro factor and micro factor:

The external environment for Berger is identified

under macro (pest) and micro SPICC environment.

Macro Environment:

PEST: PEST is an economic tool which is used in

evaluating the environment so that we can
understand the suitability of the environment for making strategy for the organization. PEST is
actually a short form for political, environment, social and technology.

Political factor

Political factor involve government regulation. Laws on business pollution employment

and taxation are the factor applies on the organization and they are bound to follow them.

Trends: Last October increase in tax from 16-17% and then again increases tax from 17-21 % so
that increase in price had affect Berger paints as some time there are deal with customer that
for specific period they will supply product on same rate , thus this increase in tax are going to
bear by organization result in cutting margin. Similarly imports policy as Berger imports its
paints from Dubai. Pollution control law health and safety law and environmental law are too
followed by burger.

Economic situation

Inflation: Generally increase in price in an economy that result fall in purchase value of money
is inflation. So if the inflation rate is increased purchase value will decrease. Thus a moderate
inflation rate is desirable for Berger paints

GDP: If the economy of country is healthier result in better GDP, thus it is helpful for business.
SOCIAL

These factor may include demographic factor in which variable i.e. Population , ,norm and
culture etc. are some of social factor that have to some extent an impact on the ongoing
operation of business and in future as well.

TECHNOLOGICAL

Berger has entered into a number of technical collaboration arrangements with leading
international manufacturers. These include the largest paint company in Japan, which enables
Berger to develop Automotive, UK for Powder Coatings, Malaysia for Road & Runway Markings
etc The Company also follows a continuous process of investment in new equipments, such as
computerized color matching technology, to ensure fast and accurate testing results at all times

In 2006, Berger established state of the art manufacturing facility in Lahore. It has enabled
Berger to meet the growing demands of its valued customers across Pakistan. Burger is largest
industry in Asia and recently a collaboration is going on with car industry such as Dura and
cromix a car paint, Nippon with parent company in Japan and have latest technology and
environmental friendly how because scientifically it is proved that led emit fumes i.e. is
injurious to health.

Micro Environment SPICC:

Supplier

Raw material is supplied from Dobie and reaches

Lahore from where it is supplied to other city main
warehouses; however every city has it on distributor
chain. In supplying to market the intermediary channel
is used while in case of B2B selling the paint is directly
supplied to the B2B customer.
Public

Across all layers in the organization, Berger is promoting a culture of acknowledging talent,
nurturing potential and encouraging initiatives. We are maintaining an enabling environment
with fairness and equal opportunity and freedom to perform and excel.

Berger was recognized for its activities done in respect of CSR by NFEH (National Forum for
Environment & Health) in a graceful conference held in Islamabad and was awarded Corporate
Social Responsibility Award 2015

Intermediaries

Shah distributer act as an intermediary to supply product to the market in Islamabad

however every city has its own intermediary channel. But in B2B we supply our self to the
customer as because buying it from market it will be more expensive for them as compare to
deal directly, similarly the commission given to intermediary is also saved for Berger paint in
selling B2B.

Customer & Market

A large team of sales personnel and a wide network of dealers and distributors serve customers
in all urban centers across the country. Berger is not just a Paint company; it offers one window
solution across different paint product categories in order to meet the demands of its valued
customers.

Berger Color Advisory Service is a free color consultancy that can be accessed on UAN: 111-237-
437. The service is very popular among customers of decorative paints. It offers professional
advice on selection of appropriate color schemes and types of paints that should be used on
different surfaces and in different environments.

Berger offers professional services to its industrial customers through highly qualified and
experienced Technical Services team. The team consists of highly trained technical staff holding
degrees in chemistry.
Competitor

List of competitor is long including local company but because its brand image is high thus competitor
who compete include AkzoNobel, Pakistan ICI deluxe bright etc

However AkzoNobel is leader in market while Berger is second to it. The reason behind it is that fire
evoked in Karachi head quarter that spoils billion of stuff.

3. Market situation,Competitive analysis and Consumer Buying

Behavior:
Berger offers professional services to its industrial customers through highly qualified and experienced
Technical Services team. The team consists of highly trained technical staff holding degrees in chemistry
that efficiency exactlymeets the customer needs.

Market situation

Currently because of that fire Berger presently is feeling the effect of that incident, the competitor
Akzonobel is leading the market with their good implementation of their strategy while other
competitor such as ICI DuluxBrighto are also doing well. AkzoNobel Pakistan is currently leading the
market with Berger paints is second to it while ICI and Brighto comes after Berger paints. On the other
hand local paints company are also grabbing market share because of low price strategy

Competitive analysis

The competitive analysis Shows that AkzoNobel Pakistan is leading the market because of their
commitment to provide quality to customer, public relation, arranging seminar and participating in trade
shows have made very good position in the mind of customer. Similarly high investment in promotion
have also give competitive edge on the other hand local paint distributer are also doing well because of
their price strategy rather than quality makes an alarming situation for Berger paint as cutting their
margin.

Consumer Buying Behavior

On the basis of the survey most customers seek the following qualities in their brand of paint

 Good Quality
 Long-lasting
 Reliable
 No color fading
 No paint-sweating
  Wide range of colors
 Different textures and designs
 Value for money
 Customer Support

4. Swot Analysis:

Strengths
• Existing distribution and sales network
• Monetary assistance provided
• High profitability and revenue
• Skilled workforce
• Reduced labor costs
Weaknesses
• Investments in research and development
• High levels of lead found leading to
negative publicity

Opportunities Threats
• Global markets • Increasing costs
• Venture capital • Tax changes
• Income level is at a constant increase • External business risks
• Growing economy • Increase in labor costs
• Business diversification • Stiff competition
• New entrants in the industry and local
companies.

5. Objectives:

Berger paints Bangladesh Ltd is committed to add value to life to

out performs the peers in terms of longevity, customer service,
revenue growth, earnings and cash generation. Besides the
company will be the employer of choice for all existing and future
employers. But it also tries to do best in the conjunction with
activating the ultimate objective of a business organization –Wealth Maximization.

Goals:Develop and implement marketing strategies, sales plans, personal selling to fulfill
customerneeds.

6.Segmentation, Targeting, Positioning and Marketing Mix:

Marketing strategies of Berger is built on STP – Segmentation, Targeting and Positioning. Berger
discovers different needs and groups in the market place, target those needs and groups that it
can satisfy in the superior way and then position its offerings, so that the target market
recognize the companies distinctive offerings and image.

Segmentation:

Before segmentation their product Berger segments its business

through the year. Generally the summer and winter is the peak
season not only for Berger but also every paint producer. October
to June is peak season and July to September is the lean season
for the paint industry in Pakistan, which is related to weather
conditions.

Segmentation of products is on the basis of the Market

Segments.Berger segmented its market as follow:

 Decorative Finishes: for Interior and Exterior Finishes.

 Industrial Coatings:for road, structural steel, sheets etc.
 Marine Coatings: for ship, dock etc

Targeting:

Berger independently evaluates its each market segments’

attractiveness and tries to enter all segments because it wants to
expand its market more and more.

Differentiation:Berger is the only company which has differentiated its

product with over 200 product variations. Tensales offices and
thousands of dealers throughout Pakistan. Home services are also
there for the customer.
Positioning:

Berger designs the company’s offerings and image to occupy distinctive place in the mind of the
target market.For positioning in the mind of the target market Berger has differentiated its
variables.

Product differentiation

Product differentiation on the basis of size, shape, color shade, convenient size of their paint
container, plastic container and so on. It’s also maintain its better quality product, finest color
shade, durable & long lasting paint, and they are also responsible to the customer wants and
satisfaction.

Service differentiation

Every company in the service market differentiates their service to be the best service company
and capturing most of the market share. Berger differentiates its service comparing to the other
competitors. These areOrdering ease and Customer consulting & delivery Service

Berger Home Decor offers two-stage services:

 Free Service
 Paid Service

Marketing Mix:

Product:
Variety: Berger has a lot of variety of paints.
Such as –
 For decorative finishing includes
Decorative Paints and best
finishings.

 For industrial coatings that includesAutomotive Paints, General Industrial Finishes, Powder
Coatings, Protective Coatings, Vehicle Refinishes Business
 For marine coatings that includesRoad Safety, Government & Marine, Construction
Chemicals, Printing Inks, and Adhesives.

Packaging: Its packaging is better than the competitors.

Services: It has two types of services- free services, paid services. It provides a useful Blue Book
for how to use the paint
Price:

Berger paints can’t go for low price because of high brand image as compared to
local paint company. For projects their price is depends on the volume of order
and in services their price depends on volume of work.

Promotion:
We promote our products by

Advertising: TV, Newspaper, Bill Board etc.

Personal Selling: Personal selling through showrooms, e.g.

Colorbank.

Sales Promotion: Taking part in Trade Fairs.

Public Relation: Tries to maintain good public relations.

Place:
Berger Paints Pakistan maintains very short and effective Channel length to distributors its
products to the customers. It promotes selling approach and managers, dealers and projects.
Objects of such Approach are to gain more control over its customers and dealers.

7. Action Plans:
As our vision is to become the leading paint company and associated products manufacturing
and marketing company in Pakistan ensuring best returns to our investors & highest customer
satisfaction. So to reach this vision we need a plan of action. After analyzing our internal and
external environment, and analysis of our competitor we formulate a list of action such as:

 Focus on promotion with quality as our main focus. Our competitor Akzonobel is leading
the marketing because of very good promotion. Participating in trade shows,
 Organizes seminars about new products to bring awareness among public about
different issue arise in paint along with our quality giving culture. Using social media as a
tool can also be an effective way
 Continues improvement with focus on R&D and bringing in new state of art technology
so to overcome the competitor
  Matter to investigate the reason of fire that burn billion of stuff in Islamabad and
Karachi so to over this problem in future and find ways such as do research how to stop
such threat, as it can save very good revenue
 Make such pricing strategies that help for Business selling and hope so get the highest
projects of large industries by these strategies.

Reference:

On 22nd DEC, 2015 we met MR Meeraj Suleman for our project Business to Business Marketing.
After half hour of discussion, Mr Meeraj gives very brief and valuable information about Berger
paints that helps in our project.