Expansion of the Market of Berger Paints Through Alternative Distribution Channel

A SUMMER INTERNSHIP PROJECT REPORT
On
Abhishek Kumar
EXPANSION OF THE MARKET OF BERGER PAINT THROUGH
ALTERNATIVE DISTRIBUTION CHANNEL

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“EXPANSION OF THE MARKET OF BERGER PAINT THROUGH
ALTERNATIVE DISTRIBUTION CHANNEL”
Summer Internship Project Report Submitted Towards Partial Fulfillment Of
MASTERS IN BUSINESS ADMINISTRATION
From
MAHAMAYA TECHNICAL UNIVERSITY,NOIDA
Academic Session 2012 - 14
SUBMITTED TO SUBMITTED BY
Prof. P.K.Ghosh ABHISHEK KUMAR
(Director, MBA) MBA – Sem. III
Roll No.: 1207270005
IIMT MANAGEMENT COLLEGE
‘O’ POKET GANGA NAGAR, MAWANA ROAD
MEERUT 250001

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DECLARATION
I hereby declare that the project work entitled “EXPANSION OF THE MARKET OF
BERGER PAINT THROUGH ALTERNATIVE DISTRIBUTION CHANNEL” submitted to
MAHAMYA TECHNICAL UNIVERSITY as a part of the MBA curriculum, is a record of
an original work done by me under the guidance of Prof. P.K.Ghosh
(Director,IIMT Management College) and Mr. Aftab Ahmad (Faculty Of
Management, IIMT Management College) and Mr. Paras Bajaj (Area Sales
Manager, Berger Paints India Ltd) and this project work is submitted in the partial
fulfillment of requirement for the award of the degree of Masters of Business
Administration. The results embodied in this project have not been submitted to
any other university or company for the award of any degree or diploma.
ABHISHEK KUMAR

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ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report for Berger
Paints India Ltd. It has been an enriching experience for me to undergo my
summer training at Berger Paints India Ltd, which would not have been possible
without the goodwill and support of the people around. As a student of “IIMT
Management College”, Meerut I would like to extend my sincere gratitude and
thanks to Mr. Paras Bajaj (Area Sales Manager, Berger Paints India Ltd.),
Prof. P.K.Ghosh (Director,IIMT Management College), Mr. Aftab Ahmad (Faculty
Of Management, IIMT Management College) to shape my understanding towards
the project. It was because of their immense help and support that this project has
been duly completed.
However, I accept the sole responsibility for any possible error and would be
extremely grateful to the readers of this project report if they bring such mistakes
to my notice.
-----------------------------------
Abhishek Kumar

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CONTENTS
1: Executive Summary…………………………………………………………………….....6
2: Overview Of Paint Industry In India …………………………….…………………11
3: Company Profile …………………………………………………………………………….25
4: Research Problem And Background ……………………………………………….52
5: Objectives And Scope Of Study ………………………………………………………55
6: Project Methodology ……………………………………………………………………..57
7: Data Analysis And Interpretation …………………………………………………..60
8: Comparative Analysis Of Advertisements ……………….……………………..81
9: Observations And Findings …………………………………………………………….86
10: Recommendations …………………………………………………………………………89
11: Limitations And Scopes Of Study ……………………………………………………91
12: Conclusion……………………………………………………………………………………..93
Bibliography And References ………………………………………………………………95
Appendix ……………………………………………………………………………………………..97

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EXECUTIVE SUMMARY
The purpose of this project titled “Expansion of the Market of Berger Paint through
Alternative Distribution Channel” is to collect the necessary information from the prospective
dealers. .
The study includes interviewing the dealers who are into the business of building material and
collecting information regarding their shop and contact details. It also includes necessary
information like annual turnover so that accordingly they can be contacted in future. They were
asked that in what other products they deal at present and of which company like sanitary,
cement, pumps, steel. These data which has been collected through the interview has helped in
deriving many conclusions regarding the market share and awareness of their competitors and
other building related products.
If sales and distribution channel is expanded, then it would be beneficial for customer to buy
Berger which can only be done by increasing its dealer in the market. So this study also helped
the company to know how many dealers are ready to become the dealer of Berger.
As India is entering into the scenario where the consumers want each and every product at one
place. A shopping mall is a good example where consumer finds the goods of their use at one
place. Same applies on construction related goods like cement, paint, sanitary, plywood. So in
this study the alternate channels are targeted, with which the company as well as dealer will
get benefit.

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1.1) TYPES OF ALTERNATE CHANNELS
Though there are various types of alternate channel dealers we are basically targeting 4 types
of dealers
1. Cement Dealers.
2. Steel Dealers.
3. Plywood Dealers.
4. Tiles and Marble Dealers.
1.2) CEMENT DEALERS
 Dealer have billed materials from warehouses /go -downs and the same is supplied
directly to the dealer or to his site.
 Dealer operates on APS mostly.
 Target is to capture the retail selling dealer who sells 300 – 400 MT of cement per
month.
Why Cement Dealer is a Prime Target for Alternate Channel
 Ample go down and showroom space.
 Financially sound.
 Dealers have a ready base of customers who take cement. These leads can be converted
by us.
 CC and Putty can be easily sold via these counters.
 Dealers have ample manpower to have one dedicated shop boy for paint store.

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1.3) STEEL DEALERS
 Like cement, steel is also a high investment low return industry
 Unlike cement dealers, steel dealers hold stocks of steel bars of various sizes –
mm/8m/10mm/12mm/16mm/ 20mm
 The steel industry is dominated by the regional players and very few national players are
present
 Steel prices are subject to drastic changes- both increase & decrease which adversely
affects the profits of a dealer as huge stocks are held by the dealers
 Dealer operates on APS mostly 7 days credit (Max)
 Target is to capture the retail selling dealer who sells 100 tons of steel per month. The
average investment is 20 lakhs.
Why Steel Dealer is a Target for Alternate Channel
 Ample go down and showroom space.
 Dealers have a ready base of customers who take Steel. These leads can be converted
by us.
 Dealers have ample manpower to have one dedicated person for paint store.
 Steel Industry is fluctuating and the market is also shrinking so the dealers are on
lookout for new ventures.

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1.4) Plywood Dealers
 Mostly Dealers are selling multi SKU’s including Plywood, laminate, veneer and allied product,
some dealers also have display gallery for color combination.
 Investment is high with good return.
 At present, the sector is predominantly in the hands of unorganized units.
 A dealer who is selling veneer and laminates is more targetable.
WHY WE NEED PLYWOOD DEALERS
 Existing customers of plywood and allied product.
 Good contacts with architects and Interior designers.
 Proper space and enough manpower for selling paint.
 Already dealing in multi SKU’S.
 Plywood dealers can be groomed to become FS stores.

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(2)
OVERVIEW OF THE
PAINT INDUSTRY IN
INDIA

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2.1) Brief Description
What is paint?
Paint is a mixture of ( 1 ) Pigment, ( 2 ) Extenders, ( 3 ) Binders , ( 4 ) Solvents, ( 5 ) Additives, It
generally gives an opaque film, some time transparent paint film also. It is available in the form
of liquid (Solvent base enamel paints & primers), in the form of thick, curdy like viscous liquid,
(emulsion paints for walls) in the form of paste (Putty type) and in the form of powder (oxides
for floor, cement paint, powder base putty, etc) It gives glossy finish, some time semi glossy
paint, some time sheen finish and some time matt finish. There are two types of paint such as
(a) Solvent base and (2) Water base.
Why we paint the surface?
The main objective of painting are ( 1 ) To protect the surface from many factors like – Rain,
saline water, heat, sunlight, UV rays, dust etc. ( 2 ) To give aesthetic look and ( 3 ) To guide
people the traffic rules etc. The paints are many types like – Decorative paints, Protective
coatings, Industrial paints, automotive paints and Powder coatings.
What are the basic tools used while painting?
We generally use the following (1) Paint brush (different types) (2) Sand papers / Water papers
of different grades (3) Waste cloth (4) Putty knives (5) Spray gun (conventional type and air less
type).

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PIGMENT:
Pigment gives color to the paint. When applied on a surface it gives as opaque paint film to the
surface. The pigments are 2 types. Those are (1) Organic pigment (2) In organic pigment. The
pigments are available in the form of powder .It is responsible for coverage and hiding. Higher
the pigment higher the coverage / hiding. Lower the pigment is reverse. Please note there are
some colors, who give lower coverage and lower hiding by birth. Those pigments are Yellow
color, Red color, and Orange color. The organic pigments are clean in color whereas inorganic
pigments are dirty in color. Price wise Organic are costly and in organics are cheaper. Life on
wall inorganic pigments gives better life as compared to organic.
Extender:
In general chemically it is inert. Some of the extenders are processed minerals where as others
are chemically prepared. The names of some extenders are as follows:-
( 1 ) Barites ( 2 ) Whiting ( 3 ) China clay ( 4 ) Soap stone ( 5 ) French chalk ( 6 ) Mica and
there many. It does not give any color and therefore no hiding property. The difference
between the pigment and extender is Refractive Index (RI) In case of pigments the RI is higher
as compared to extender. Please note that higher the RI is higher the hiding/opacity and
obviously in coverage. Therefore when extenders are used in paint binder it gives no color, and
virtually transparent. The main reasons we used extenders in paint are to reduce gloss of paint.
Higher %age of extender used in paint reduces more and more gloss of paint and it moves
towards Gloss to high sheen finish, Sheen finish to Matt finish. In other words we can call
extenders as matting agent.
Binder
In simplest way it can be defined as one that bind pigments and extender (if any) together and
ensures adherence of paint to the substrate when applied as paint. Pigments and extenders are
grinded and dispersed in the binder during manufacturing process. It is mainly responsible for
giving life to the paint when applied on surface. When we applied paints on a substance, it
starts fight with( 1 ) Corrosion ( 2 ) Water ( 3 ) Heat ( 4 ) Air ( 5 ) Light and ( 6 ) Earth i.e. Dust.
The binder quality decides its durability, which means up to what extent it (Binder) can fight
with above factors. Weaker the binder, reduces the life of paint, and ultimately the life of

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surface reduces. It’s a national loss. We made loss to the nation is about 50 thousand crore per
year. It is our responsibilities to arrest this loss. How it is possible? It is possible only to
understand the importance of pant and painting.
Solvents
It is liquid material. It is used in 3 states like (1) In manufacturing process of Binder (2) In
manufacturing process of paints and (3) While in application process of paints. After application
of paints on substrates it evaporates to air. There are two (2) types of solvents such as Aromatic
solvent and Aliphatic solvent. Aliphatic solvents are petroleum bi products whereas Aromatic
solvents are Coal bi products. Aliphatic solvents are slow evaporating whereas Aromatic
solvents are fast evaporating solvents.
Additives
Additives are many in numbers, but each one are used less in quantity. It upgrades the quality
of paints. Use of excessive quantities of Additives will create problems. The maximum
quantities you can use are 5% maximum. It is used to improve the following properties of
paints.

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PAINT INDUSTRY AN OVERVIEW
Indian Paint Industry – Sweet Spot
Urbanization is an “Index of transformation from traditional rural economies to modern
industrial one.” Over the last 4-5 years; the economic growth in India reported an average
growth of ~8%, leading to explosion of urbanization & development in rural India. Also rural
spending has started to outpace urban consumption trend fuelled by a strong increase in
incomes, led by rising non-farm employment opportunities and the government’s focus on rural
employment generation schemes. This has led to growth at a CAGR of 15% in last 5 years (FY07-
12) in the Indian Paint Industry which is estimated to be at `291 Bn in FY12. Even the paint
volumes growth is closely related with the GDP growth rate & has grown on an average 1.7 –
2.1x GDP. Thus, going forward with economy revival, changing lifestyle & public aspirations, we
believe the Indian Paint Industry is expected to conservatively grow at a CAGR of 15% for next 3
years to be ~ `443 Bn industry by FY2015E.
EMULSION Paints – Customers Choice
The Paint Industry is dominated by decorative paints (77%) & Industrial paints (23%). Emulsion,
which constitutes the majority share of decorative paints, is the fastest growing segment of the
paint industry. Presently, the growth of the Indian paint industry is being witnessed from new
demand pockets, especially in Tier-II and Tier-III cities, thus, signaling the growing acceptance of
branded quality products among the masses. The growing popularity of branded quality paints
& increasing income levels of people residing in Tier-II and Tier-III cities has led to a shift in
demand from unorganized players to organized players & pushed the growth & shift towards
premium paint segment i.e. “Emulsion” category from “Distemper & Primer” Category.

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Customer Centric Approach – Key Sales Driver
With the changing landscape of Indian Paint Industry – from B2B to B2C, Organized players
have aggressively taken marketing initiatives –to involve customers in paint selection process ,
creating awareness of product differentiating features like Zero VOC, Low VOC, lead free & eco-
friendly products, opening customer friendly concept stores like “Color World, Impression
Stores, Kids World“ for customers to touch & feel “ Textures, designs, Glow & Disney themes”
& providing unique professional services of product consultancy and color consultancy through
“Home Solutions & Home Stylers”, Interactive Call Centre & Simulation Software based
websites , Social Media Campaigns on Face Book & Twitter etc have assisted in creating &
meeting the demand related to lifestyle conscious people to upgrade & change customer
preferences. We believe such marketing initiatives with aggressive advertising spends would go
a long way in creating a strong brand image & customer loyalty paving way for rapid
penetration & Shift in favor of Organized players vs. Unorganized players in Tier II & Tier III
cities.
STRUCTURAL REPRESENTATION OF PAINT INDUSTRY:

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2.2) Working Of the Paint Industry
The working of the Paint industry has been explained pictorially below:
RAW
MATERIAL
(56%)
EMPLOYEE
COST
(22%)
SELLING AND
ADMINISTRATI
ON EXPENSES
(22%)
DECORATIVE
PRODUCTS: PAINTS,
EMULSIONS,
VARNISHES,
DISTEMPER, WOOD
FINISH, METAL
FINISH, SPECIALIZED
PAINTS (WEATHER
PROTECTION, NON
TOXIC)
INDUSTRIAL
PRODUCTS: POWDER
COATING, SURFACE
COATING, FLOOR
COATING, HIGH
PERFORMANCE
COATINGS,
SPECIALIZED
COATINGS (THERMO
PROTECTIVE, RUST
PROTECTIVE, NON
COMBUSTIBLE)
AUTOMOBILE
OEMs, CONSUMER
GOODS,
MANUFACTURERS
M MARINE
INDUSTRIES
HOUSEHOLDS,
CONSTRUCTION
FIRMS
(70%)
MAJOR INPUTS MAJOR PRODUCTS END USERS

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2.3) Industry Structure
Indian Paint Industry is over 1000 years old. Its beginning can be traced back to the setting up
of a factory by Shalimar paints in Calcutta back in 1902. Till the Second World War the industry
consisted of small producers and two foreign companies. After the war, the imports stopped
which led to the setting up of manufacturing facilities by local entrepreneurs. Still the foreign
companies continued to dominate the market, which in a way is the current scenario as well.
The initial decades saw the complete dominance of British Paint companies such as Goodlass
Nerolac (now Kansai Nerolac), ICI, British Paints (now Berger Paints), Jenson & Nicholson and
Blundell & Eomite. The Indian Paints sector is valued at Rs 6,800 crores in value terms and is
very fragmented. The current demand is estimated to be around 650,000 tons per annum and
is seasonal in nature. The per capita consumption of paints in India stands at 1.0-kg p.a. as
compared to 1.6 kg in China and 22 kg in the developed economies. India's share in the world
paint market is just 0.6%.
The Indian Paint industry can be divided as:
 The organized sector comprising of large and medium size units
 The unorganized or the small scale sector.
There are now twelve players in the organized sector with a market share of 77%. This is
in contrast to the 55% share that the sector commanded a few years back. Major companies in
this segment include Asian Paints (42% market share), Berger Paints (23% market share), ICI
(6% market share), Kansai Nerolac (10% market share), Jenson Nicholson (4% market share),
Shalimar Paints and Rajdoot Paints. The organized sector has grown at a CAGR of 11.5% in the
last five years. The unorganized sector comprising of over 2000 units has a combined market
share of around 30%. The major players are Asian Paints, Kansai Nerolac, Berger, ICI and
Shalimar. Recently, world leaders like Akzo Noble, PPG, Dupont and BASF have set up base in
India with product ranges such as auto refinishes powders and industrial coatings. Kansai Paints
of Japan, which entered into collaboration with Kansai Nerolac in 1984, is now the holding
company for Kansai Nerolac with 64.52 % equity holding. PPG has a joint venture with Asian
Paints to manufacture industrial coatings. Jenson & Nicholson and Snowcem India are no longer
active players because of dwindling sales in recent years. In the 1990s, helped by a growing
economy, the paint industry had recorded a healthy growth of 12-13 % annually. This was
mainly due to a drastic reduction in excise from a staggering 40% to 16%. However, the growth

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was restricted in 2000-03 to single digits. There was a revival in 2003-2004 with a robust growth
of 13%.8.The per capita consumption of paint in India is 700 grams against 19 kg in the U.S., and
2.7 kg and 5.8 kg in other developing countries like China and Brazil. As the consumption goes
with affordability, the low Indian figure is not a surprise. High excise duties, low technology and
low capital costs for production led to the incidence of a high number of units in the small scale
sector. However, since 1992 the government has been consistently lowering duties from 40.5%
in 1992 to around 16% currently. This has led to lowering of price differential between the
organized and unorganized sector. Moreover the paints sector was also allowed to claim
MODVAT credit on petro-based products, thus lowering the excise incidence further.
2.4) 1 Paints and Their Market Share
0
5
10
15
20
25
30
35
40
45
50
Product Share
%Product

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2.4) 2 Industrial Paints
Industrial paints comprising 30% of the market include automotive paints, high performance
coatings, coil coatings, powder coatings, marine paints and general industrial coatings. The
automotive segment is further bifurcated into OEMs and auto refinishes. The automotive and
general industrial coatings occupy top slot in terms of production. Kansai Nerolac is the market
leader in this segment.
Demand for these paints is relatively price inelastic, but is prone to business cycles and depends
on industrial and economic growth. Major end user industries include shipping, capital goods,
white goods and heavy industries.
The industrial paints segment due to specialized technology and high capital expenditure
attracts fewer players. Most Indian companies have tied up with or are in the process of tying
up with international paint majors to have access to the latest technology. A tie-up with a
global paint manufacturer also enables the domestic company to supply to local customers of
its partner. For example, Kansai Nerolac is a major supplier to Maruti Suzuki because of Kansai,
its Japanese collaborator and Suzuki relations. It is for the same reason that Asian Paints (tie-up
with PPG Industries, USA) is a major supplier of paints to Opel Astra.

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COMPANY COLLABORATION AREA OF COLLABORATION
BERGER PAINTS Herbert sons GmbH;
Valspar Corp. Inc,;
Teodur BV
Auto coatings;
Heavy duty coatings;
Power coatings
ASIAN PAINTS PPG Ind. Inc.,
Sigma coatings,
Nippon Paints
Electro deposition primers;
High performance coatings,
Power coatings
KANSAI NEROLAC Kansai paints Auto & Industrial coatings
ICI(India) ICI plc. Auto refinish
J & N Herbert sons GmbH Auto coatings
2.5) Drivers to the growth of the Paint Industry
1. Increasing level of income and education – The increasing proportion of young
population along with increasing disposable incomes is leading to a change in consumer habits.
The Indian economy is shifting from a savings economy to a spending economy. With more
income at their disposal, people are now ready to pay for better products and paint is no
exception.
Educated consumers are more brands conscious and seek value in what they consume. Thus,
paint companies offering value-added features like non-toxicity, weather protection, texture,
eco-friendly production, etc. will attract more demand. These value-added products enable the
manufacturers to earn a better premium as compared to the regular paints, thus offering
higher margins.

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2) Increasing Urbanization: Urbanization is leading to a shift from temporary houses to
permanent houses. Urban houses are well-designed in its interior as well as exterior aspect.
This calls for more houses being painted using medium and premium paints. For urban houses,
interior design is becoming a fashion statement and a lot of paint is used to decorate the
interiors. This will lead to an increase in the per capita consumption of paint which will increase
the overall demand of paint. Urbanization also brings more nuclear families. More nuclear
families mean more number of houses even for the existing population thus further driving the
demand.
3) Increasing share of organized sector: Decrease in taxes on key raw materials will
improve the position of the organized players. The Organized sector is expanding its
distribution network and adopting the installation of tinting machines at retail outlets. These
tinting machines offer a wide variety of colour shade options to choose from. The unorganized
players are not in a position to offer such facility as it is comparatively capital intensive. Shift in
use, from distemper segment towards premier segment is also shifting market share from the
unorganized sector to the organized sector.
4) Development of the Realty, Automobile and Infrastructure sector: The growth
of the paint industry is largely dependent on the development of the realty and housing sector,
as decorative segment generates about 70% of the total paint demand from this sector. The
Automobile segment generates more than two-third of the demand for Industrial paints, and
hence is the growth driver for Industrial Paints. The Infrastructure segment creates direct
demand for paints as well as creates indirect demand through supporting the growth of the
realty, automobile, FMCG and other industries where paint is used.
The growth potential in the above 3 sectors is immense, the paint industry being dependent on
these 3 sectors is expected to grow along with them.
5) Availability of financing options: Easier housing finance and auto finance is expected
to favor more people to buy houses and travel in personal vehicles. This will drive the growth of
housing and automobile sector, of which the Paint industry will get its share.

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6) Increasing Penetration in the Rural Markets: Paint usage in rural areas is generally
in the distemper segment, hence dominated by the unorganized players. Demand in rural areas
is dependent on agriculture, which is dependent on the monsoons. With the development of
irrigation facility, the dependence of agricultural output on monsoons will be on a decreasing
trend. Also, with the modernization of agriculture and accompanying development of rural
India, consumer preferences are expected to improve. Paint companies are expanding their
distribution network in rural parts of India, which is a relatively untapped market for the
organized players. These factors supported by the increasing penetration of the paint
companies will help drive the demand for paints.
2.6) Main Concerns of the Paint Industry
• Cost of raw materials: The Cost of Raw materials are an important factor as the
industry is raw material intensive. Fluctuation in the prices of Titanium dioxide and Petroleum
directly affect the production cost. This is more of a concern for the Industrial segment as
compared to the Decorative Segment, as it is comparatively easier to pass on the costs in case
of decorative paints. Also, a large portion of raw materials are imported, leaving the cost factor
vulnerable to exchange rate fluctuation.
• MNC’s entering the Indian Paint Market: The entry of Established foreign players
in the Indian market may increase the competition among the players of the industry. This may
lead to price competition which may impact the profit margin of the companies. As a result, the
increase in volume growth may not equally reflect in the profit growth for the companies.

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2.7) Paint Industry Prospects
 The market for paints in India is expected to grow at 1.5 times to 2 times GDP in the
next five years. With GDP growth expected to be over 7% levels, the top three players
are likely to clock above industry growth rates, especially given the fact that protection
that was available to unorganized players has come down significantly.
 Decorative paints segment is expected to witness higher growth going forward. The
fiscal incentives given by the government to the housing sector have benefited the
housing sector immensely. This will benefit key players in the long term.
 Although the demand for industrial paints is lukewarm it is expected to increase going
forward. This is on account of increasing investments in infrastructure. Domestic and
global auto majors have long term plans for the Indian market, which augur well for
automotive paint manufacturers like Kansai Nerolac and Asian-PPG. Increased industrial
paint demand, especially powder coatings and high performance coatings will also
propel top line growth of paint majors in the medium term.

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3.1) Company Philosophy
Purpose of Corporate Philosophy
An effective corporate philosophy helps a company develop a certain corporate culture, ethical
practices and strengthens the relationship between employers and employees. It also positions
the values of the company in the minds of others both within and outside of the organization.
Your corporate philosophy should give employees a starting point for the decision-making
process, so they are all operating on the same page. Developing a corporate philosophy gives
you something against which you can compare candidates for new positions, thereby helping
you make hiring decisions based on whether an individual will fit within your corporate culture.
Creating a Corporate Philosophy
One of the first things to consider when creating a corporate philosophy is the purpose of your
business. A company’s philosophy can contain similar verbiage as a company’s mission
statement, but in more detail. For example, the mission statement of a major search engine
company is, “To organize the world's information and make it universally accessible and
useful." A portion of that company’s corporate philosophy includes the statement, “We do
search. With one of the world‘s largest research groups focused exclusively on solving search
problems, we know what we do well, and how we could do it better.” By reading these and
other similar statements in its corporate philosophy, you can ascertain its mission.
Corporate Philosophy Benefits
Small businesses benefit greatly from developing a corporate philosophy. A primary benefit of a
corporate philosophy is that it helps to build long-lasting, trusting relationships between your
business and clients. You should implement your corporate philosophy within every level of
your company, which allows customers to trust that they will receive the same professional
treatment throughout the organization. A corporate philosophy also builds consistency
between your employees. When employees are familiar with the company’s philosophy, it
makes the integration of new hires easier and helps current employees embrace changes within
the company that follow the corporate philosophy. Another benefit of a corporate philosophy is

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that it can possibly give your company a competitive advantage because you possess a clear
vision of how you want customers and competitors to perceive your business.
3.2) Company History and Milestone
The name Berger or Lewis Berger is today synonymous with colour worldwide. But actually the
origin of the name dates back to over two & a half centuries in England in 1760, when a young
colour chemist named Lewis Berger, started manufacturing in Europe, 'Prussian blue' using a
secret process that every designer and householder coveted. Mr. Berger perfected this process
& art of the blue colour, which was the colour of most military uniform of that time. Enriched
by the imagination of Lewis Berger, the unending quest for creation and innovation in the world
of colour & paints still continues.
The history of Berger Paints India Limited as a company started in 1923 as Hadfield's (India)
Limited which was a small colonial venture producing ready- mixed stiff paints, varnishes and
distempers setup on a 2 acres of land in one of India's first industrial towns close to Kolkata in
Howrah, Bengal. Subsequently in 1947, British Paints (Holdings) Limited, an international
consortium of paint manufacturing companies bought over Hadfield's (India) Limited and thus
the name changed to British Paints (India) Ltd. The gentleman who took over, as its first
managing director was Mr. Alexender Vernon Niblet, an Englishman who was later on followed
by Mr. Alfred Godwin in 1962.
Further in the year 1965, the share capital of British Paints (Holdings) Limited was acquired by
Celanese Corporation, USA and the controlling interest of British Paints (India) Ltd was acquired
by CELEURO NV, Holland, a Celanese subsidiary. Subsequently in 1969, the Celanese
Corporation sold its Indian interests to Berger, Jenson & Nicholson, U.K. Then onwards the
company British Paints (India) Ltd became a member of the worldwide BERGER group having its
operations across oceans in numerous geographies and this marked the beginning of Lewis
Berger's legacy in India – which the company would later take forward to enviable heights.
From 1973 the company entered into one of its dynamic phases of business with introduction
of new generation products in the industrial, marine and decorative segments under the able
leadership of it first Indian Managing Director Mr. Dongargaokar Madhukar.

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Year 1976 was another turning point in the history of the company when the foreign holding in
the company was diluted to below 40% by sale of a portion of the shares to the UB Group
controlled by Mr. Vittal Mallya. The reins of the company were taken over by Mr. Biji K Kurien
as its Chief Executive & Managing Director in the year 1980. Finally in the year 1983, the British
Paints (India) Limited, changed its name to Berger Paints India Limited.
The entire 80s & 90s saw the lunch of many new products from company's stable such as
premium emulsions and high quality acrylic distempers. The COLOUR BANK tinting system was
launched through which the consumer could select from a range of over 5000 shades.
Again the fortunes of the company changed hands in 1991 with UB Group's stake in the
company bought over by the Delhi based Dhingra brothers, Mr. K.S.Dhingra & Mr. G.S.Dhingra
and their associates of the UK Paints Group. Presently Dhingras' control a majority stake of
almost 73% in Berger Paints India Limited, which is a professionally managed organization,
headquartered in Kolkata, with the stewardship resting since 1994 until 2012 with the
Managing Director Mr. Subir Bose. The current managing director of Berger Paints India Ltd is
Mr. Abhijit Roy.
3.3) Company Background
Established in 17th December, 1923, the company then known as Hadfiled's (India) Limited;
was a small paint company based in Kolkata having its only manufacturing facility at Howrah,
West Bengal to produce ready mixed stiff paints, varnishes and distempers. Post independence,
towards the end of 1947, British Paints (Holdings) Limited, U.K acquired Hadfield's (India)
Limited and thus British Paints (India) Limited was incorporated.
From a production capacity of 150 tones and sales turnover of around Rs. 25 lakhs in 1947, the
company has come a long way to become at one point of time; a part of the worldwide BERGER
group in 1983 and thereby acquiring its present name Berger Paints India Limited to having
subsequently gone through further ups & downs as well as ownership changes to gain its
present status wherein the majority stake is with Delhi based Dhingra brothers and
business revenue more than Rs 2400 crs.
Today Berger Paints India Limited, having solely used and developed the name and trademark
BERGER and all its variants in India, is a household name in paint. With Head Office in Kolkata
the company manufactures and markets a range of decorative & industrial paint products

~ 29 ~
under various product brands and has it operations spread throughout the length & breath of
the country; with seven manufacturing facilities in India and more than 85 depots, several
regional & area offices, besides four facilities overseas. It has a workforce of over 2500
employees and a countrywide distribution network of 15000 plus dealers.
Berger Paints has clearly demonstrated its commitment to Indian consumers for over 88 years,
by offering its varied range of high performing quality products backed by highest level of
customer service. Company's high ethical standards in business dealings and its on-going efforts
in community welfare make Berger Paints India Limited a responsible corporate citizen. While
the company's decorative and Industrial paints continue to gain an increasing market share,
Berger as an organization has managed to achieve sustainable competitive advantage through
innovations in all spear of business, desire to excel and by creating a winning culture & abiding
faith in its values & philosophy among all its stakeholders.
With Berger Paints we can now see your imagination of colour unfurl in front of your eyes and
watch your home come alive, telling a thousand tales.
Transform our home with the POWER OF IMAGINATION.
BERGER PERFORMANCE:
 BPIL is the 2nd largest paint company in India.
 15,000 plus paint retailers, 85 stock points, 6 RDCs, 7 production units
 Total Consolidated Gross Turnover of 3500 crs in 2012 – 13
 Recorded the fastest growth in the decorative paint segment in India growing @ 20%
BERGER PRODUCTS:
BERGER INTERIOR EMULSION VS COMPETITION
Product Category Berger Brand Asian Brand ICI Brand Neroalc Brand
Luxury Interior Emulsion Silk Royale Velvet Touch Impression
Luxury Interior Emulsion Rangoli Easy Clean - na - 3 in 1 Emulsion - na -
Premium Interior Emulsion Rangoli Premium Emulsion Dulux Super Smooth Beauty Gold
Economy Interior Emulsion Bison Emulsion Tractor Emulsion Rainbow Beauty Smooth
Distemper Bison Distemper Tractor Distemper Magik NAD

~ 30 ~
BERGER EXTERIOR EMULSION VS COMPETITION
Premium Exterior Emulsion Weather Coat ALL GUARD Apex Ultima Weather shield Max Excel Total
Regular Exterior Emulsion WeatherCoat APEX Weather shield Excel
Economic Exterior Emulsion Walmasta ACE Promise Suraksha
BERGER ENAMEL RANGE VS COMPETITION
Premium Enamel Luxol High Gloss Premium Enamel Dulux Gloss Nerolac Syn.
Economy Enamel Jadoo Enamel/Butterfly Utsav Enamel NA Goody
Satin Enamel Luxol Satin Enamel Premium Satin Enamel Dulux Satin Nerolac Satin
COLORBANK
 In Today’s scenario Tinting machine is an integral part of all paint shops Tinting machine
is a necessity for selling of emulsions where any shade could be requested by the
customer .Function of a Tinting Machine is to dispense colorants into Base can to get
the desired color.
BENEFITS OF COLORBANK SYSTEM
To the Dealer
 Minimum inventory and Max shades
 Customization of shades as per customer requirements
 No stock out.

~ 31 ~
To the Customer (leading to customer satisfaction)
 Option to choose from a wide range of shade.
 Availability guarantee.
 Perfect reproduction incase of repeat order.
Components of a Machine
• Dispenser- Used for dispensing the colorants into the base
• Gyroshaker- Mixes the colorants and base to make the shade

~ 32 ~
• Computer- Used for viewing the formulations and for controlling the dispensing
operation
• Software- Indicates the formulations and other statistics for the dealers.
• Colorants used: The dispenser dispenses colorants in various proportions as per the
software into the emulsion container to make various shades.
Different bases are used for different shades of colors.
The bases usage based on shades is detailed below
 For tinting pastel shades – P0 ( e.g. Shade – Apple White from CB 101 card)
 For tinting light intermediate shades – W1 ( e.g. Shade – Blue Chip from CB 101 card)
 For tinting dark intermediate shades – N1( e.g. Shade – Jodhpur Beige from CB 101 card)
 For tinting light accent shades – N2 ( e.g. Shade – Ink Drop from CB 101 card)
Berger
Colorant Colour
BP
Price/Ltr
OC Yellow Oxide 480
SP Red Oxide 791
NT Fast Black 467
BF Fast Blue 629
VB HT Violet 1152
GC HT Green 1229
GF Fast Green 921
WT HT White 663
RD Interior RED 935
RE Exterior RED 1785
LM LemonYellow 1278
NS Medium Yellow 840
MG Magenta 1579
BC HT Blue 1397
OR Orange 1493
BR Tinting Black 622
Total 16261

~ 33 ~
 For tinting dark accent shades – N ( e.g. Shade – Ultra violet from CB 101 card)
 Coloured bases are used for reducing the quantity of colorant consumed for making a
shade and therefore economizing the shade cost with better hiding
 Yellow – Used for making Yellows, Oranges and Yellow greens – Available in Interior and
Exterior Emulsions
 Red – Used for making deep red shades
 Brown – Used for making browns, reddish browns in exteriors
 Cream – Used for making earthen tones and ivory shades in exteriors
 Grey – Used for making grey shades in enamels(Smoke grey/light grey/dark grey)

~ 34 ~
3.4) Board of Directors
Mr. Kuldip Singh Dhingra (Chairman)
Mr. Gurbachan Singh Dhingra (Vice-Chairman)
Mr. Abhijit Roy (Managing Director)
Mr. Aniruddha Sen (Vice President & Company Secretary)
Mr. Subir Bose (Member in the Board of the Company.)
Mr. Anil Bhalla
Mr. Gerald Kenneth Adams
Mr. Gurcharan Das
Mr. Kamal Ranjan Das
Mr. Pulak Chandan Prasad
Mr. Srijit Dasgupta
Mrs. Rishma Kaur
Mr. Kanwardeep Singh Dhingra

~ 35 ~
3.5) Landmark Projects
The Calcutta Club was set up in 1907 in response to the
discriminatory practices of the Bengal Club which admitted only
white members. Today, it is not just popular but also one of the
most prestigious clubs in the city. A membership to the club is so
coveted and the list of prospective members believed to be so
large, that it takes over a year before the screening committee
finds time to consider the suitability of an applicant.
A high rise condominium spread over five acres, Teen Kanya
overlooks Lake Nucifera. The three towers, 16 storied each,
arranged in a semi circle overlook the 100 acre water body.
Plenty of natural light, perfect cross ventilation and a whole host
of state-of-the-art amenities make the flats of Teen Kanya, in
Action Area II of Rajarhat, perfect for living. Living here is like
living in the heart of nature with all the modern facilities you can
dream of.
Rs. 275 crore was poured into making the mall and the five-star
hotel of City Centre II – a multi-utility urban infrastructure
project. The project, which took three years to get completed, is
built on five acres of land. City Centre II, at Rajarhat is just 3 km
from the Netaji Subhash Chandra Bose International Airport. It
has been designed to give a boost to the hotel business while the
mall caters to the people of north Kolkata largely.
In 1994 as a development and maintenance services arm of The
Dun & Bradstreet Corporation and Satyam Computers and
Services Ltd., blossomed into an independent organization called
Cognizant in a matter of two years. One of the first IT services
companies with key industry verticals as well as technology
horizontals.

~ 36 ~
Gold Souk Grande is a large format multi-specialty
mall in Chennai. The Rs. 250 crore project is spread
across 8 lakh sq. ft. The mall which will be fully
operational by the third quarter of 2010 will have a
hypermarket, food court, anchor stores and a
multiplex. Like all malls it house stores offering
lifestyle products, accessories, electronics, footwear,
cosmetics and more.
The T .A Pai Management Institute (TAPMI) located in
the international university town of Manipal
(Karnataka), is among the leading management
institutes in India, and is reputed for its academic
rigour and faculty-student interaction. Founded by the
visionary, Late Shri. T.A. Pai, TAPMI’s mission is to
provide much needed impetus to the task of building
professional management capability in the country. In
the process, it has also played a role in strengthening
the existing educational and health infrastructure of
Manipal.
The land on which Mantri Greens is built was once
Royal property belonging to none other than The
Maharajah of Mysore. Not only that, the title
document bears the signature of world renowned
engineer and Statesman - The Dewan of Mysore, Sir M.
Visvesvaraya. The authenticity of this title has stood
intact for more than 110 years. Now, it is a place
where you and your family's can enjoy the rich and
scenic nature for a lifetime.

~ 37 ~
3.6) Berger’s Presence in India

~ 38 ~
3.7) Berger’s Presence All Over the World
Apart from operations in Russia, with a production facility at the Berger manufacturing unit at
Krasnodar, Berger has also expanded its footprint in Nepal by setting up a second unit. Today
Berger’s sister company in Bangladesh is the dominant leader with 65% market share. In
keeping with the company’s dynamic growth plan, Berger has also acquired Bolix SA of Poland,
a leading provider of External Insulation Finishing System (EIFS) in Eastern Europe. As Berger
continues to grow internationally, it also continues to be the second largest paint company in
India. Berger is the lone supplier of Nuclear Power Plants with its Protective Coatings. The
automotive sectors, be it cars or bikes, is primarily ruled by Berger’s automotive coatings.
Luxury cars including Mercedes make use of Berger products. Companies like Nokia uses
Berger‘s services as well. Berger has tied up with Becker of Sweden to manufacture coil
coatings for steel surfaces

~ 39 ~
3.8) Market Share of Major Player in INDIA

~ 40 ~
3.9) Market Share of Industrial Paints
Goodlass Nerolac
Paints Ltd.
41%
Asian Paints (India)
Ltd.
15%
Berger Paints (India)
Ltd.
10%
ICI India (Ltd.)
9%
Shalimar Paints Ltd.
8%
Others
17%
Market Share of Industrial Paints

~ 41 ~
3.10) Market Share of Decorative Paints
Asian Paints (India)
Ltd.
38%
Goodlass Nerolac
Paints Ltd.
14%
Berger Paints (India)
Ltd.
9%
ICI India (Ltd.)
8%
Shalimar Paints Ltd.
6%
Others
25%
Market Share of Decorative Paints

~ 42 ~
3.11) Industrial Sector Composition
0
5
10
15
20
25
30
35
40
45
50
Automotive
Paints
High
Performance
Coating
Powder Coating Coil Coating Marine Paints
50
30
10
5 5
MarketShare(%)
Types of Industrial Paints
Industrial Sector Composition

~ 43 ~
3.12) Marketing Mix in relation to Berger Paints
Marketing decisions fall into four main controllable categories namely
Product
Place
Price
Promotion
Relating these factors with respect to Berger Paints
Product:
Berger is committed to offer quality products that satisfy consumers’ ultimate desires from
paints with the help of state-of–art technology. Berger always believes in one step ahead in
offering new product to create more value for customers’ money. Berger outsmarts other
competitors of the market through its one step in advance policy and innovative market offers.
Berger is trying to fill up all holes of the market through offering a wide range of products to
meet the needs (Premium to Economy Paints) of different types of users and to solve the
different types of functional requirements (Industrial, Decorative & Marine). Due to shift in
market growth trends Berger is trying to establish itself in the economy segment of the paint
market.
Place :-
Another major component of marketing mix is place. During our visit at BERGER I was able to
include inventory, transportation, coverage, channel, logistics and market and market segments
etc. under these marketing mix components.
Differentiated market segment
Berger’s market segments are differentiated. They use different types of marketing mix for
different segments. Their product quality, advertisement, promotional techniques, price are
high for upper class customers. Again for the people of middle class on the basis of their

~ 44 ~
income, occupation, taste, lifestyle different marketing policies are applied. We can observe
this deviation in TV advertisement.
Inventory
BERGER has divided their products in A,B,C category. For inventorying their products BERGER is
following some storing norms. Depending on this storing norms company decides how long
their product will stay in the market in accordance with the existing sales trend of that
particular product. This is how the firm can determine when to order and how much to order.
Transportation
To ensure customer satisfaction BERGER uses modern and fastest going covered van as
transportation carrier while moving goods from depots to dealers. But when they move goods
from factory to depots they use public transportation carriers such as truck and railway as
rental basis.
Distribution network
With Head Office in Kolkata the company manufactures and markets a range of decorative &
industrial paint products under various product brands and has it operations spread throughout
the length & breath of the country; with seven manufacturing facilities in India and more than
85 depots, several regional & area offices, besides four facilities overseas. It has a workforce of
over 2500 employees and a countrywide distribution network of 15000 plus dealers. The orders
are collected by the sales executives and passed on to the nearest depot. The depots are fed by
regional warehouses. These depots maintain a minimum order quantity which is arrived at from
the monthly demand forecast. The material is dispatched from the depot in the name of the
dealer. Generally some orders of the same region are clubbed together and dispatched in
trucks. Finally the truck is unloaded and the small orders of the dealers are dispatched to them.

~ 45 ~
Manufacturing Unit Manufacturing Unit Manufacturing Unit
Depot Depot Depot Depot
DealerDealer Dealer Dealer Dealer Dealer Dealer
Depot
BERGER
Depots
Direct dealers
Retail
Wholesale
Customer
Customer
Feed back
Feed back
FeedbackFeedback
Product
Product
s

~ 46 ~
BERGER’s Hybrid Marketing System
Price:-
In the paints industry price is the used only as a differentiator between the various segments in
the same product line. The prices of different brands in the same segment remain more or less
similar, with just a difference of 30 to 40 paisa per square feet. Some of the specialty products,
which are not produced by all brands, may be priced at a higher price.
Pricing decisions in the paint industry largely depend on the price of the inputs like petro
products, other raw materials, excise duties and taxes and the general operating profits.
Generally increase or decrease of prices is affected across all brands in the market. Most of the
paint companies offer a 5% margin to the dealer. Due to internal competition, the dealers pass
on this advantage to the customers by reducing their own margins to 2-3%. This is a cause of
concern for the paint companies because they have to keep a constant check on the prices
offered in the market. The dealers offer more of discounts and the companies are not able to
firm up the prices. Paint companies offer a lot of discounts like cash discounts, volume
BERGER
Customer
CustomerDirect dealer
Direct channel
Indirect channel

~ 47 ~
discounts, seasonal discounts and allowances. The dealers take advantage of these discounts to
gather more business.
Promotion:-
The paint industry until 1999 was concentrated mostly on increasing sales by intensive trade
promotion wherein the dealers, contractors and other components of the supply chain. There
was little emphasis on theme advertising directed towards the customer. A recent trend that is
emerging in the Indian paint market is that the major brands have all identified the importance
of reaching out to the common man instead of just limiting themselves to the intermediaries.
Advertising strategy: BERGER follows different strategy for developing its strategy. It depends
on some characteristics that is product life time, brand etc. Media: Berger used different media
for advertising like- on-air advertisement, television, newspaper, magazines. The dealers
are educated with the company background, products and service etc The
time to time selling incentive are given by company according to performance of de
aler and market demand. In-Store Displays: Point-of-Purchase, Berger paints Banners,
Demonstrations of color on wall, etc are provided by the company. Temporary Price Reduction (TPR):
They get margins plus some incentives promotion scheme to maintain the dealer. Contests: Dealer to
dealer contest is kept to promote push strategy and best dealer gets the reward. Berger paints
likes to do the same within same geographic areas. Sampling: Allowing the dealer to experience the
product or service by providing free samples so as he can promote word of mouth. Berger’s sales
promotion consists of short-term incentives to encourage the purchase of sale of a product or
services. Berger Paint’s advertising has created brand awareness, highlighted what the brand
has to offer and has consistently brought all of it top-of-the-mind for the customer. But the
outreach effort does not end there. Berger Paints has recognized the importance of
communicating to and involving key players who influence the final brand choice. These include
channel partners, contractors and painters, on whom Berger Paints focuses by initiating and
developing innovative activities and promotions. This helps build the Berger Paints family so
that customers get a high degree of personalized service and professional guidance to facilitate
their final decision.

~ 48 ~
Sales Promotion:
Sales Promotion is an important component of marketing communications mix. It adds an extra
value to the product and hence prompts the dealer or consumer to buy the product. In a
specific sense, sales promotion includes those sales activities that supplement both personal
selling and advertising, and coordinate them and make them effective, such as displays, shows,
demonstrations and other non-recurrent selling efforts not in the ordinary routine.
Sales promotion can be used:
 For facilitating introduction of new products
 For overcoming unique competitive situation
 For unloading accumulated inventory
 For overcoming seasonal slumps
 For getting new accounts
 For retrieving lost accounts
 As a support and supplement to the advertising effort
 As a support and supplement to the salesmen’s effort
 For persuading salesmen to sell the full line of product
 For persuading the dealer to buy more or increase the size of order
Commonly Used Tools and Techniques of Sales Promotion:
 Demonstrations
 Trade Fairs and Exhibition
 Coupons, Premiums, Free offers, Price-offs, etc
 Free samples
 Joint promotion

~ 49 ~
 Contests (consumer contests, dealer contests)
 Merchandising or Display
 Sales promotion on the internet
The company has been concentrating more on sales promotion than on advertising. On
analyzing the customer survey data it becomes evident that since the customer is returning to
the store after an average of about three years it is better to concentrate more on the dealers
who are in the business throughout the year. Keeping this in mind the company’s decision of
doing more sales promotion than advertising stands justified. Sales promotion can broadly be
divided into two categories:
1) Customer Promotion –
This section includes all the sales promotion activities directed towards the customers. Scratch
cards that are provided with specific size of packages are examples. The company comes out
with many different sales promotion schemes during the festival season, especially the Durga
Puja festival in Orissa and West Bengal. There are a number of gifts and schemes on the larger
packs. Coupons and free gifts are offered on packs of more than 10 kgs. The company also
offers a large number of services to the customers to assist them in their buying decisions.
These services are offered on the company’s website to make it accessible to a very wide range
of customers.
2) Trade promotion – As part of the company’s policy, huge emphasis is given on trade
promotion. The dealers and contractors who are a part of the distribution chain are given
special attention. The company comes up with several incentive schemes for the dealers. The
most popular schemes include cash discounts, foreign trips and gifts such as refrigerators etc
for dealers who succeed in meeting or exceeding pre-determined sales targets. The company
also organizes regional dealer meets regularly. Here the dealers are briefed about the
company’s new products and the technical details and application procedures of these
products. The company also aims at building and retaining dealer loyalty through these
meetings.

~ 50 ~
3.13) Sales Turnover for the Past Ten Years
Year Year Number (x) Sales turnover in crores (y)
Mar '03 1 586.43
Mar '04 2 675.82
Mar '05 3 831.68
Mar '06 4 987.91
Mar '07 5 1,172.21
Mar '08 6 1,346.21
Mar '09 7 1,513.74
Mar '10 8 1,688.68
Mar '11 9 2,100.82
Mar '12 10 2,662.10
0
10
20
30
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Salesincrores
Months
Paint shows maximum growth before festive
season
YEAR 2003
YEAR 2004

~ 51 ~
An upward trend line shows that the sales volume have risen over the past years, it gives an
impression that the company has been continuously progressing.
y = 210.2x + 200.1
R² = 0.936
0
500
1000
1500
2000
2500
3000
0 2 4 6 8 10 12
Turnoverincrores
Years
Turnover in Crores
Turnover in Crores
Linear (Turnover in Crores)
Linear (Turnover in Crores)

~ 52 ~
(4)
RESEARCH PROBLEM
&
BACKGROUND

~ 53 ~
4.1) Background
This project is all about data mapping of all alternate distribution channels by getting necessary
information. ADCs can be cement dealers, plywood dealers, sanitary shops, and as well as paint
dealers.
1) To expand their distribution channel, the company wants to create database of each and
every alternate distribution channel that are into the business of building material. This is being
held throughout the India. I was given Moradabad & Bijnor Districts. There I have visited the
following towns:
 Moradabad city
 Kanth
 Thakurdawara
 Surjannagar
 Dhampur
 Afjalgarh
 Badigarh
 Seohara
 Sahaspur
 Noorpur
 Chandpur
1) Accordingly, BERGER these towns have enough potential dealers who can be interested
in dealing with Berger Paints.
In addition to these documents various other information like the per year consumption of
each paint category, construction chemicals and wood finish were taken. These data formed
the main basis of the study. Various analysis like brand preferences, contribution of each
product in the total sales volume etc were analyzed.
2) Company wants to explore all the opportunity in the market by making more dealers of
Berger Paints and by expanding the distribution channel.

~ 54 ~
4.2) RESEARCH PROBLEM
 All the dealers of alternate distribution channels can be made paint dealers or not.
 Collect the necessary database of dealers, so that accordingly the dealer should be
approached.
 Convince them to be a part of Berger paints and how it can be helpful to be with Berger
Paints.

~ 55 ~
(5)
OBJECTIVES
&
SCOPE OF STUDY

~ 56 ~
5.1) Objectives
The main objectives of the study are listed below:
 To collect the necessary information about the dealers and do the data mapping of all
alternate distribution channels (ADCs).
 To increase the dealership of Berger Paints.
 To find how many ADCs are eligible for dealership.
 To know how many ADC counters are willing to deal with Berger Paints?
 To recommend a suggestion for the company.
 To create an awareness among the dealer about Berger Paints.
 To contact the potential dealers in future.
 To know which type of dealers are more interested in Berger Paints.
5.2) Scope of Study
The main scopes of the study are listed below:
 It gives us information about the scope of opening a dealership account in different
towns.
 It gives us information about the proportion of dedicated Berger Paints dealers.
 It shows the market share of Berger Paints with respect to its competitor.
 It gives the information regarding the preference and choices of the different dealers.
 The study also gives information regarding the expansion of distribution channel of
Berger Paints.
 It gives the information about how far the Berger is reached to interiors of Moradabad
& Bijnor districts.

~ 57 ~
(6)
RESEARCH
METHODOLOGY

~ 58 ~
6.1) Research Objective
The prime objective of this research to find the prospective dealers through alternative
distribution channel who can be a dealer of Berger. The main objective to this research is to
map the dealer of the district Moradabad & Bijnor.
6.2) Research Design
Dealer analysis that are in manufacturing business: Descriptive research design
6.3) Data
 Primary Data: Primary data collected by interviewing the different types of dealers
through alternative distribution channel.
 Secondary Data: Collected from Ghaziabad depot by Area Sales Manager.
6.4) Research Instrument
A questionnaire was provided by the company for mapping the data of different types of
dealers. The questionnaire they provided was open ended and containing the straight forward
questions.
6.5) Research Tool
Many statistical tools like,
 Bar Charts
 Pie Charts
 Chi-Square Test
Have been used in this research to derive the conclusion

~ 59 ~
6.6) Research plan
 Interviewing the prospective dealers
 Collecting information and filling it up in questionnaire.
 Short listing the dealers according to the information collected.
 Contacting the dealers through sales representative.
 Telling them about the company and persuading them to take the dealership.
6.7) Sample Size
Dealers Sample Size :201
Successful Survey : 201

~ 60 ~
(7)
DATA ANALYSIS AND
INTERPRETATION

~ 61 ~
7.1) Type of Market
Table (1.1)
Market
Type of Market Frequency Percent
SUBURB
SATELLITE MKT
VILLEGE
METRO
TOWN
00
00
12
44
145
00.00
00.00
5.97
21.89
72.14
Total 201 100.00
METRO
22%
SUBURB
0%
SATELLITE
0%
TOWN
72%
VILLEGE
6%
MARKET

~ 62 ~
INTERPRETATION
 Most of the market is at town, which indicates that
 72.14% market is visited at town.
 21.89% market is visited at metro market.
 Only 5.97% market is visited at village, which indicates that there is less availability of
market.
7.2) Location of Counter
Table (1.2)
Location
Location of
Counter
Frequency Percent
MAIN MARKET
MAIN ROAD
CROSS ROAD
BY LANE
OUTSKIRTS
40
93
28
12
28
19.9
46.3
13.9
6.0
13.9
Total 201 100.0

~ 63 ~
INTERPRETATION
 46.3% counters are visited at main road.
 Most of counters are at main road of town, which indicates that dealers find it useful if
counters are present at main road.
 13.9% counters are visited at cross road & outskirts.
 Only 6% of counters are visited at by lane, which indicates that there is least availability
of customers there.
MAIN MARKET
20%
MAIN ROAD
46%
CROSS ROAD
14%
BY LANE
6%
OUTSKIRTS
14%
LOCATION

~ 64 ~
7.3) Counter Age
Table (1.3)
How old is the Counter
Years Frequency Percent
0-5
5-10
10-15
15-20
20-25
25-30
30-35
35-40
40-45
More than 45
42
46
34
25
18
12
12
3
3
6
20.9
22.9
16.9
12.9
9.0
6.0
6.0
1.5
1.5
2.9
Total 201 100.0
20.9
22.9
16.9
12.4
9
6 6
1.5 1.5
2.9
0
5
10
15
20
25
0-5 5-10 10-15 15-20 20-25 25-30 30-35 35-40 40-45 More
than
45
Percent
Counter Age
How old is the counter

~ 65 ~
Interpretation
 Most of the counter which is present in the Moradabad & Bijnor is among 0-5 & 5-10
years old.
 Therefore these counters can have a nice customer network and it would be beneficial
for Berger Paint.
7.4) Dealing in Paint or Not
Table (1.4)
Dealing in Paint
Dealing in
Paint
Frequency Percent
Yes
No
51
150
25.4
74.6
Total 201 100.0

~ 66 ~
Interpretation
 25% of the dealers were already working in paint segment.
 150 out of 201 are from the different sector.
Yes
25%
No
75%
Dealing in Paint

~ 67 ~
7.5) Turnover in Lakhs
Table (1.5)
Turnover
Turnover
(in lakhs)
Frequency Percent
0-5
5-10
10-15
15-20
20-25
25-30
30-35
35-40
40-45
45-50
More than 50
39
34
42
33
15
10
8
3
2
0
15
19.4
16.9
20.9
16.4
7.5
4.9
4.0
1.5
1.0
0.0
7.5
201 100.0
0
5
10
15
20
25
0-5 5-10 10-15 15-20 20-25 25-30 30-35 35-40 40-45 45-50 More
than
50
Turnover 19.4 16.9 20.9 16.4 7.5 4.9 4 1.5 1 0 7.5
Percent
Turnover

~ 68 ~
Interpretation
 Most of the dealers I have visited are having an approximate turnover of 10-15 lakhs per
annum.
 This is a nice number for giving dealership.
7.6) Paint Dealers Dealing With Which Company
Table (1.6)
Company Name
Company Frequency Percent
Berger
Asian
Nerolac
Local
Asian + Nerolac + ICI
More than 1 Including
Berger
18
11
3
3
3
13
35.3
21.5
5.9
5.9
5.9
25.5
Total 51 100.0

~ 69 ~
Interpretation
 31 dealers were already dealing in Berger.
 16 dealers were having more than one paint company dealership.
 Out of 31 dealers were dealing directly with Berger Paints.
 This shows that there is an opportunity to target the Berger Paint’s dealers which are
dealing with wholesaler.
35.30%
21.50%
5.90% 5.90% 5.90%
25.50%
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
Berger Asian Nerolac Local Asian +
Nerolac +ICI
More Than 1
Including
Berger
Percent
Company
Company Name
Company Name

~ 70 ~
7.7) CB Machine Availability
(51 dealers were working in the paint segment.)
Table (1.7)
CB Machine
Does dealer have a CB
Machine
Frequency Percent
Yes
No
28
23
54.9
45.1
Total 51 100.0
Interpretation
 54.9% paint dealers have a CB Machine.
 45.1% paint dealers have not CB Machine.
Yes
55%
No
45%
CB Machine

~ 71 ~
7.8) Company Name of CB Machine
Table (1.8)
Machine Name
Company
Name
Frequency Percent
Berger
Asian
Nerolac
ICI
Berger + Asain
Asain + ICI
12
6
5
1
3
1
42.9
21.4
17.8
3.6
10.7
3.6
Total 28 100.0
Berger
43%
Asian
21%
Nerolac
18%
ICI
3%
Berger + Asian
11%
Asian + ICI
4%
Machine Name

~ 72 ~
Interpretation
 Only 15 dealers out of 28 are having Berger CB Machine.
 This shows that remaining 13 existing dealers should be persuaded and targeted for CB
Machine.
 We can see that dealers are having more machines of Berger Paints.
7.9) Willing To Deal with BERGER
Table (1.9)
Willing to deal with Berger
Willing to
Deal
Frequency Percent
Already Dealing
Yes
Maybe
No
28
43
11
119
13.9
21.4
5.5
59.2
Total 201 100.0

~ 73 ~
Interpretation
 13.9% dealers were already having dealership of Berger Paint.
 We can see that 21.4% (43) dealers are ready to be a part of Berger Paint.
 5.5% of the dealers will be deal with Berger in future.
Already Dealing
14%
Yes
21%
Maybe
6%
No
59%
Willing to Deal

~ 74 ~
7.10) When to Approach
Table (1.10)
When to Approach
When to
Approach
Frequency Percent
Immediate
Later
20
34
37.04
62.96
Total 54 100.00
Interpretation
 37.04% (20) dealers want to deal with Berger Paint immediate.
 62.96% (34) dealers want to deal with Berger Paint later.
Immediate
37%
Later
63%
When to Approach

~ 75 ~
7.11) CHI-SQUARE TEST:
Null Hypothesis (H0) - There is no relation between the location of counter and prospective
dealers.
Alternative Hypothesis (H1) - There is a relation between the location of counter and
prospective dealers.
Location
Location Observed N Expected N Residual
Main Market
Main Road
Cross Road
By Lane
Outskirts
40
93
28
12
28
40.2
40.2
40.2
40.2
40.2
-0.2
52.8
-12.2
-28.2
-12.2
Total 201
Test Statistics
Location
Chi-Square
Degree of
Freedom
Assume. Sig.
96.534
4
.000
Interpretation
 As sig. value is less than 0.05, and then we should reject the null hypothesis.
 So it can be concluded that alternate hypothesis can be accepted and there is a
difference between the prospective dealers and there counter location.

~ 76 ~
7.12) Counter Names & Contact No.
Counter Name Contact
Person
Town District Pin code Phone
No
Mobile No
.M/S ADESH KUMAR
NIMIT KUMAR
ADESH KUMAR Chandpur Bijnor 246725 0 9411847881
A.S. Enterprises Mr.Umar Sambhal Road Moradabad 244001 0 9219095410
afjalgarh khad bhandar kamal agarwal Afjalgarh Bijnor 246722 0 9456823394
Agarwal Machinery Store Mr.Sudhir Agarwal katra road Moradabad 244001 0 0591-2314953
Ahamad Steel Mr.Najeemu Shad Prince Road Moradabad 244001 0 5912486596
alfa paint & hardware rahman Seohara Bijnor 246746 0 9259978155
alifa cement store moh. afjal Surjannagar Moradabad 244602 0 9568864789
al-rana hardware
sanitary& electrical store
sadaqt husain Sahaspur Bijnor 246745 0 9897331545
amolak chand & sons atul jain Afjalgarh Bijnor 246722 0 9411428184
ansari group ishaq ali Thakurdwara Moradabad 244601 0 8899209988
ANURAG CEMENT STORE KAMENDRA
SINGH
Noorpur Bijnor 246734 0 9639140501
Arora Brothers Mr.Rajesh Arora Prince Road Moradabad 244001 0 9837684654
arshad plywood shadab Kanth Moradabad 244501 0 8791728402
arya hardware anurag Seohara Bijnor 246746 0 9536510218
avon glass works moh. umar Thakurdwara Moradabad 244601 0 9897996495
Banarsi Das & Brothers Mr.Divakar
Sharma
Town hall
Market
Moradabad 244001 0 9359702964
Banarsidas Mukut Bihari
Lal
Mr.Ashok Gupta Dhampur Bijnor 246761 0 9412216794
batsal paint store sarvesh kumar Badigarh Bijnor 246722 0 9719154118
bharat cement & paint
store
tasleem Kanth Moradabad 244501 0 9837451457
bharat hardware moh. nadeem Dhampur Bijnor 246761 0 9897744055
bharat marbels saud Afjalgarh Bijnor 246722 0 9675010326
bharat paints pritam singh Dhampur Bijnor 246761 0 9410603602
BHARAT PAINTS CHANDRA
MOHAN
AGARWAL
Chandpur Bijnor 246725 0 9412856899
bharat traders hafizi galsaheed
choraha
Moradabad 244001 0 9837644890
bhart cement store moh. hanif Afjalgarh Bijnor 246722 0 9690944885
bhart paint & sanitary
store
farukh Kanth Moradabad 244501 0 9837055277
bisnoi cement store prakash jain Surjannagar Moradabad 244602 0 9412805481
Chandi Prashad Kailas
Chandra
Mr.Krishna Gopal Dhampur Bijnor 246761 0 0114-22133
CHANDPUR HARDWARE
STORE
MAHMOOD
AHAMAD
chaudhary furniture house vijay pal singh Surjannagar Moradabad 244602 0 9411872429
chaudhary hardware,paint
& sanitary store
rahman Seohara Bijnor 246746 0 8057700012
chaudhary paint store mashoor hasan Thakurdwara Moradabad 244601 0 9837784669
chauhan hardware &
plywood
hari singh Surjannagar Moradabad 244602 0 9837990737
constraction house bhopal singh Dhampur Bijnor 246761 0 9897428238

~ 77 ~
DANISH TRADERS SARFARAJ
AHAMAD
Noorpur Bijnor 246734 0 9675200778
Deep Emporium Mr.Deep katra road Moradabad 244001 0 936811155
DELHI TOOLS RIHAN Chandpur Bijnor 246725 0 8859794603
divya cement store satish kumar Dhampur Bijnor 246761 0 9759811610
ekta steel sandeep Noorpur Bijnor 246734 0 9410432980
faisal cement & paint
store
moh. yaseen Kanth Moradabad 244501 0 9917143221
GAMBHIR PAINTS DEVENDRA
GAMBHIR
Noorpur Bijnor 246734 0 9719461121
GARG PLYWOOD SANJEEV
AGARWAL
GHAFAR AHAMAD
Cement Agency
GHAFAR AHAMAD Noorpur Bijnor 246734 0 9719452160
global electrical Moh. farman Seohara Bijnor 246746 0 9058012818
golden hardware mohamad atiq Seohara Bijnor 246746 0 911042879
golden trders faraj ahamad Sahaspur Bijnor 246745 0 9627088887
gulsan plywood works sakir Thakurdwara Moradabad 244601 0 9837134677
Gupta Enterprises Mr.Asvani kumar Sambhal Road Moradabad 244001 0 9927031986
gupta plywood &
hardware store
gupta ji Kanth Moradabad 244501 0 0
gurunanak hardware store lakhbir singh Badigarh Bijnor 246722 0 9411832891
Habib Cement Store Mr.kasar Prince Road Moradabad 244001 0 9837070218
hamja hardware store shajad Kanth Moradabad 244501 0 9058666487
hanjala bath & tiles farid ahamad Dhampur Bijnor 246761 0 9634373677
harsh cement store mukul agarwal Thakurdwara Moradabad 244601 0 9412389818
HARSHIT PVT. LTD. ANAND KASHYAP Noorpur Bijnor 246734 0 9719637430
hasni cement store sakir ali Thakurdwara Moradabad 244601 0 9837823000
hasnihardware store gulsan sabir Thakurdwara Moradabad 244601 0 9927075454
hazi cement store zulfukar ali Thakurdwara Moradabad 244601 0 9927301210
hazi paint store hazi mobeen
ahamad
Surjannagar Moradabad 244602 0 9756142955
hindustan cement store rakesh kumar Seohara Bijnor 246746 0 9837401410
Hindustan Machinery
Store
Mohamad Abdul
Salam
katra road Moradabad 244001 0 9859102270
hindustan paint store yameen Sahaspur Bijnor 246745 0 9528031579
Hindustan Paints &
marbels
Ashok miglani Budh bazaar Moradabad 244001 0 2322263
HS TRADERS SAMSUL KHAN Chandpur Bijnor 246725 0 9927138881
indian paint store rashid husain Afjalgarh Bijnor 246722 0 8909854418
indian paint store abid husain Kanth Moradabad 244501 0 9837564868
Indian paint store Mohamad Fahim prince road Moradabad 244001 0 9358866755
indian plywood &
hardware store
wajid ali Kanth Moradabad 244501 0 9456873449
israr ahamad cement
agency
israr ahamad Dhampur Bijnor 246761 0 9412133690
j.k.hardware dusyant kumar Dhampur Bijnor 246761 0 01344-221642
j.k.s.traders saeed ahamad Dhampur Bijnor 246761 0 9862306225
jagdish prakash agarwal ravi prakash Dhampur Bijnor 246761 0 9897742940
janta furniture najakat ali Badigarh Bijnor 246722 0 9756507508
janta hardware store sakir aalam Thakurdwara Moradabad 244601 0 9412435659
janta pipe store vineet agarwal Afjalgarh Bijnor 246722 0 9012451000
Jeewan Das Madan Gopal Mr.Jeewan Das Budh bazaar Moradabad 244001 0 9411636788

~ 78 ~
Joyti Paints pankaj Budh bazaar Moradabad 244001 0 9319942052
julfukar plywood julfukar ahamad Badigarh Bijnor 246722 0 9997571091
Karanwal Cement Agency RAJA KARANWAL Noorpur Bijnor 246734 0 9536822599
KAVI & SONS MOH. DANISH Thakurdwara Moradabad 244601 0 9012112586
khandelwal iron & cement
store
vikas khandelwal Thakurdwara Moradabad 244601 0 9639203046
khandewal iron & cement
store
vikas Thakurdwara Moradabad 244601 0 9412494088
Kisan Agriculture &
Machinery Store
LIKESH KUMAR Noorpur Bijnor 246734 0 9759182013
kisan kasth kala udhuog hazi sarajudeen Kanth Moradabad 244501 0 9411096200
kisan pipe & hardware
store
jaiveer singh Badigarh Bijnor 246722 0 9756556820
kosik traders chandraprakash Afjalgarh Bijnor 246722 0 9917114685
krishak pipe & hardware
store
mohamad ismile Seohara Bijnor 246746 0 9927812288
Kumar Locks Suplyers Mr.Asutosh Kumar Dhampur Bijnor 246761 0 9412440453
kumar paints vikas agarwal Dhampur Bijnor 246761 0 9412117811
KUMAR TRADERS ASHOK KUMAR Noorpur Bijnor 246734 0 9719673730
Lala Ramavtar Sanjeev
Kumar
Mr.Sanjeev Kumar Dhampur Bijnor 246761 0 9760246212
Laxmi Enterprises Mr.Hitesh kumar
Agarwal
Sambhal Road Moradabad 244001 0 9837220982
LAXMI PLYWOOD SUSHIL KUMAR Noorpur Bijnor 246734 0 8979443234
Laxmi Sanitary Mr.Sandeep Prince Road Moradabad 244001 0 9917878877
liba water plant kafeel ahamad Afjalgarh Bijnor 246722 0 9719563297
LOLT Agarwal Steel &
Cement MRT
MR.Chaudhary
Nisar Ahamad
Budh bazaar Moradabad 244001 0 9012410786
lucky glass store afsar husain Budh bazaar Moradabad 244001 0 9837439655
lucky pipe store raish ahamad Surjannagar Moradabad 244602 0 9761797710
M.K. BUILDING
MATERIALS
MOH. KAFIL
AHAMAD
Noorpur Bijnor 246734 0 9758786547
M.R.CEMENT STORE MOH. RAFI Noorpur Bijnor 246734 0 9719212491
m/s krashak shewa
kendra
suresh pal singh Afjalgarh Bijnor 246722 0 9412855236
MAKSUD AHAMAD
CEMENT AGENCY
MAKSUD
AHAMAD
Noorpur Bijnor 246734 0 9897841275
MAQSUD AHAMAD
CEMENT AGENCY
MAQSUD
AHAMAD
Noorpur Bijnor 246734 0 9897841275
maya cement store radheshyam Kanth Moradabad 244501 0 9359844213
MAYANK TRADERS MUKESH
AGARWAL
Noorpur Bijnor 246734 0 9411042631
Mittal Pipe Store Mr.Vinod Kumar Dhampur Bijnor 246761 0 9897051638
Mittal Pipe Store Mr.Mittal katra road Moradabad 244001 0 9837032061
moh. akram cement store moh. akram Badigarh Bijnor 246722 0 8958849875
moin cement store moin Badigarh Bijnor 246722 0 8869077914
monu plywood samsad ahamad Afjalgarh Bijnor 246722 0 9720972012
naman electrical jitendra singh Surjannagar Moradabad 244602 0 9760629595
NARGISH TRADERS NAIM ASRAF Chandpur Bijnor 246725 0 9012241219
national cement store firoj aalam Kanth Moradabad 244501 0 0
national hardware arshad Dhampur Bijnor 246761 0 9411051135
national hardware khursheed
ahamad
Noorpur Bijnor 246734 0 0
national hardware store muzib ahamad Afjalgarh Bijnor 246722 0 9639270011
NATIONAL PLYWOOD ISRAR ALI Noorpur Bijnor 246734 0 9837927396

~ 79 ~
National Plywood Store Mr.Mahmood
Alam
Navrang Paints Mr.Sabahat
Husain
Galsheed
Choraha
Moradabad 244001 0 9927325848
New Agarwal Paint Store Mr.Anil Kumar
Agarwal
New National Plywood Vikram Budh bazaar Moradabad 244001 0 9837656234
new plywood & glass
store
babu bhai Budh baza Moradabad 244001 0 9927260530
new welcome enterprises aftab ahamad Seohara Bijnor 246746 0 9897889015
NIJAMUDEEN BORING
WORKERS
NIJAMUDEEN Noorpur Bijnor 246734 0 9719097935
Noor Ply Board Mr.Noor Sambhal Road Moradabad 244001 0 9927916798
NOOR TRADERS SAFIQ AHAMAD Noorpur Bijnor 246734 0 9639715325
noori hardware store noor ahamad Thakurdwara Moradabad 244601 0 9927408084
Om Shri Paints Sanjay Budh bazaar Moradabad 244001 0 9997908458
plywood & hadware store vineet singh Badigarh Bijnor 246722 0 9927174296
PRADEEP TIMBER
MERCHANT
PRADEEP Noorpur Bijnor 246734 0 9897645203
pushpak trders jitendra kumar Seohara Bijnor 246746 0 9411224149
QUALITY PAINTS AFTAB JAIDI Chandpur Bijnor 246725 0 9411361616
QUALITY TRADERS DEEPAK Noorpur Bijnor 246734 0 9719415694
R.A. Metals Mr.Rohit Agarwal katra road Moradabad 244001 0 0591-2410655
r.k. machinery store kapil Thakurdwara Moradabad 244601 0 9897432653
R.K. Sanitary Store Mr.Rakesh Kumar Prince Road Moradabad 244001 0 9675073041
r.k.sanitary & paint store rashid khan Thakurdwara Moradabad 244601 0 9639198960
rachna hardware store Rachna katra road Moradabad 244001 0 0591-6533701
RAHUL MACHINERY Store RAM AVTAR
SINGH
Raja ram Paints Mr.Umang Kumar Dhampur Bijnor 246761 0 9457257831
RAJA TRADERS SUHAIL RAJA Noorpur Bijnor 246734 0 7409424646
rajaram steel corporation rajaram Dhampur Bijnor 246761 0 01344-230283
rajasthan marbles asrar ahamad Dhampur Bijnor 246761 0 9412116425
RAJU TRADERS RAJEEV DUBEY Chandpur Bijnor 246725 0 9719585564
ram paints sourabh
maheshwari
Dhampur Bijnor 246761 0 9412115675
Rameshwar Saran Ram
Bharose Lal
Mr.Rameshwar
Saran
katra road Moradabad 244001 0 0
Regal Plywood &
Hardware Store
Mr.Nabid Yaseen Prince Road Moradabad 244001 0 9897114264
Roshan Lal Mr.Yashpal katra road Moradabad 244001 0 9412494231
s.k. agriculture moh. Suhail Noorpur Bijnor 246734 0 9639058864
SAFI AGRICULTURE ABDUL WAHID Noorpur Bijnor 246734 0 9837349761
safi hardware moh. parveez
ahamad
Dhampur Bijnor 246761 0 9690101289
safi hardware Yameen Seohara Bijnor 246746 0 0
safi traders moh. Akram Kanth Moradabad 244501 0 9412512052
sagun pipe store sushil kumar Afjalgarh Bijnor 246722 0 9756602447
sahdev paints & sanitary
store
Vikas Surjannagar Moradabad 244602 0 9411843528
Saini Cement Store Mr.Bhoop Singh
Saini
sakir machinery store Sakir Noorpur Bijnor 246734 0 9557864543
Saleen Building Materials FAIHM Chandpur Bijnor 246725 0 9927826276

~ 80 ~
Sameem & Sons Traders WASIM AKHTAR Chandpur Bijnor 246725 0 9837557830
Sameer Glass Store Mr.Shariq Sirak Sambhal Road Moradabad 244001 0 7417742965
SAMEER TRADERS WAKAR ANSARI Noorpur Bijnor 246734 0 9536877459
sanjay traders sanjay kumar Afjalgarh Bijnor 246722 0 9528424800
santi cement store mahendra singh Dhampur Bijnor 246761 0 9634591850
sarad traders sarad gupta Afjalgarh Bijnor 246722 0 9012417082
satna cement store babu pradhan Badigarh Bijnor 246722 0 9837041626
Satya prakash & Sons Mr.Satya Prakash Budh bazar Moradabad 244001 0 9368226554
Seema Paint Store Mr.Ifamulhaq Islamile Road Moradabad 244001 0 9837114323
Shabudeen Cement Store SHABUDEEN Noorpur Bijnor 246734 0 8057207472
Shadab Paint Mr.Shadab indra chowk Moradabad 244001 0 9557708828
Shan Glass Store Mr.Parveez Sambhal Road Moradabad 244001 0 8439492051
shiv traders dayanand bisnoi Surjannagar Moradabad 244602 0 9456079165
Shivam Plywood &
Hardware Store
Shivam Budh bazaar Moradabad 244001 0 9897062191
shree bala ji machinery
store
Rajul Afjalgarh Bijnor 246722 0 0
shree krishna cement
store
chandraveer singh Dhampur Bijnor 246761 0 979548452
shri balaji traders rajeev bisnoi Kanth Moradabad 244501 0 9897909016
singhal brothers rachit singhal Thakurdwara Moradabad 244601 0 9927053059
Singhal Enterprises Mr.Mudit Agarwal Moradabad Moradabad 244001 0 9837099887
Singhal Paints Mr.Shashank
Agarwal
Moradabad Moradabad 244001 0 9897232577
sony traders wazid khan Surjannagar Moradabad 244602 0 9412309821
sourabh traders sourabh jain Afjalgarh Bijnor 246722 0 9412855548
star plywood & hardware
store
shazad ali Thakurdwara Moradabad 244601 0 9997147824
Subhash Cement&
Hardware Store
SUBHASH Noorpur Bijnor 246734 0 9536976599
surendra paints Surendra Dhampur Bijnor 246761 0 9456069011
taj tarders Waheed Noorpur Bijnor 246734 0 9897844844
tuba marbels jamshed aalam Kanth Moradabad 244501 0 9897790248
Umrav Mal Ramniwas Mr.Umravmal Dhampur Bijnor 246761 0 9897063136
usmani marbels muzib ahamad Afjalgarh Bijnor 246722 0 9756312968
Vaish Brothers Mr.Rajeev Mprince road Moradabad 244001 0 8909654701
vardan cement &sanitary
store
anoop kumar Dhampur
Bijnor
246761 0 9837589075
vikas plywood sultan ahamad Kanth Moradabad 244501 0 9045155274
vipul traders Vipul Dhampur Bijnor 246761 0 9419602015
visal paint& hardware
store
hasaan chaudhary Seohara Bijnor 246746 0 9719966287
Vishal traders Mr.Dleep Gupta harpal nagar Moradabad 244001 0 9756500787
washim plywood washim ahamad Afjalgarh Bijnor 246722 0 9719557404
Wasim Cement & Iron
Store
WASIM Noorpur Bijnor 246734 0 8755158167
Welcome Agriculture &
Cement Store
MOH. AAUB Noorpur Bijnor 246734 0 9719450974
welcome agriculture store moh. Imran Noorpur Bijnor 246734 0 9219615497
y.s. hardware & plywood yogendra singh Surjannagar Moradabad 244602 0 9756838060
yadav hardware &
sanitary
gorav yadav Seohara Bijnor 246746 0 9410434072
Yash MachineryStore KOSAL SINGH Noorpur Bijnor 246734 0 9719891594

~ 81 ~
(8)
COMPARATIVE
ANALYSIS OF
ADVERTISEMENT

~ 82 ~
This comparison is done on the basis of the good features of an advertisement
8.1) Interior Paint
Berger Paints
Product Name Berger Rangoli Easy Clean
Description Father and son made up a mess of the wall, then mom comes up and
looks at their scared faces and says that its easy clean paint where walls
can be washed to remove dirt without affecting the colour.
Attention Factor The display is quite capable of getting the attention of the common
mass as we can see that the lady in the house who is generally most
concerned about the cleanliness and longevity of the house takes
everything casually as she knows what has been done can be undone
easily. This usually attracts the attention of the wives and even the
husbands.
Memorizing Factor The punch line in this display i.e. “daag jaye par rang na jaye”, is quite
appealing and people will remember this add for this punch line.
Sentimental Appeal The casual approach of the lady shown in this act works as sentimental
appeal for all women who usually are the most concerned within the
family.
Education Factor Just a wash can free the wall of all dust, dirt and stains.
Asian Paints
Product Name Asian Paints Royale (Luxury Emulsion)
Description Saif Ali Khan who was playing video game and was unaware of the fact
that there was a clash between his dog and his house butler, who was
carrying some food and drinks for Saif and eventually all the food and
drinks gets spilt on the walls making a mess of it, later it could be easily
wiped out because of the Teflon surface protector.
Attention Factor 1) Saif Ali Khan a Bollywood superstar
2) Less cautious nature while at home

~ 83 ~
Memorizing Factor This advertisement is repeated a lot in most of the commercial and
news channels which serves the memorizing factor.
Sentimental Appeal Saif Ali Khan a Bollywood superstar and a member of the royal family
advertising for Asian Paints Royale. It’s a good strategy of Asian Paints
to bring both the Royals together.
Education Factor Because of the Teflon surface protector in the paint, the walls will not
get easily damaged.
Kansai Nerolac
Product Name Neerolac Impressions Eco Clean
Description In a newly painted house the husband (SRK) is with his daughter and
pregnant wife. As the paint is free of VOC and Lead its harmless for
even new born children. It is shown that any scribbling in the walls can
be easily washed off i.e. the paint is washable.
Attention Factor Firstly, as because of no fumes and pollutants in the paint it’s even safe
for pregnant women as well as new born babies and secondly, paints
are wash proof.
Memorizing Factor It’s not a much repeated commercial as compared to Asian Paints and
Berger Paints. Hence its memorizing factor is low as compared to the
rest.
Sentimental Appeal Appearance of King Khan in this commercial as a Brand ambassador is
itself the strongest sentimental appeal compared to others for a major
section of the population.
Education Factor It’s not having any side effect as it comes with low VOC and it’s totally
lead free.

~ 84 ~
8.2) Exterior Paints
Berger Paints
Product Name Weather Coat All Guard Exterior Paints
Description A girl child standing in the window and experiencing the reverse effect
of rain i.e. water moving up back to the sky, resembling the same in
case of the exterior walls where water will not percolate and damage
the construction after the rains.
Attention Factor Slogans like “Reverse the effect of rain” and “7 years of warranty” are
good for gaining the attention of the viewers.
Memorizing Factor “Reverse the effect of rain” is said a numerous times within the add
which will stay in mind easily.
Sentimental Appeal Keeping the walls fungus free and spotless
Education Factor Presence of silicon pushes water away leaving the walls spotless,
fungus free, and rain proof
Asian Paints
Product Name Asian Paints Ultima
Description Features or key advantages are not shown directly to the customers
but through expressions and acts it is made understandable that year
after year the exterior paint of the house stays without losing its color
and glamour, starting from the birth of the child till marriage.
Attention Factor “7 years warranty with colour stay” this slogan which means that year
after year the conditions of the exterior walls remain unchanged is
good in attracting the attention of the viewers.
Memorizing Factor 4 to 5 times when the owner of the house tries to tell about the
qualities of his son to the different visitors, the visitors without giving
attention to his son starts praising or complementing the paint which
he has used for his exterior walls.
Sentimental Appeal No such sentimental stuffs are related to this advertisement
Education Factor No such educating stuffs are related to this advertisement

~ 85 ~
Kansai Nerolac
Product Name Nerolac Exel Exterior Paint
Description Son was trying to take a rotten apple then mom comes up and says
which is rotten from outside its even rotten from inside, now the
brand ambassador SRK comes up and says that the same is the case
with the house (directing towards their house which presents a
shabby look from outside) so put nerolac paints to keep your house
safe from outside which will automatically keep it safe from inside,
using the key words like anti germs, anti allergy and anti pollution.
Attention Factor Anti Germs
Anti Allergy
Anti Pollution
No Harmful Fumes
Memorizing Factor The comparison shown between the rotten apple and the house.
Sentimental Appeal The bollywood star Shah Rukh Khan giving promotion to any product
will itself have a sentimental appeal for a major section of the Indian
population.
Education Factor Tagged as Healthy home paints (low VOC and Lead Free)

~ 86 ~
(9)
OBSERVATIONS AND
FINDINGS

~ 87 ~
9.1) DEALERS AVAILABILITY
 From the study it can be observed that most of the dealers are present at the main road
of the town.
 By Lane dealers are very less.
 Berger paints awareness is more in urban market as compared to rural markets.
 Asian Paints is the biggest competitor in the market.
 Berger Paints is performing well in interior and exterior paints.
 Out of the sample surveyed, it is found that company has great opportunities in the
market.
 Some of the previous dealers of Berger thinks that scheme should be available for all
seasons.
 Some of the dealers think that there are fewer profit margins.
 Most of the contractors are satisfied with the paint quality of Berger, mostly the primer.

~ 88 ~
9.2) SWOT Analysis of Berger Paints
STRENGTHS  Wide range of product and service offering
 Sales force.
 High on quality and preferred by customers
 Comparatively less price with respect to its competitors.
WEAKNESS  Dependence on paint segment only.
 Less awareness in rural markets.
 Less concentration in decorative segment.
OPPORTUNITIES  Many new products has been launched
 New segment of customers targeted
 Growing business of real estate.
 Rural customers can be targeted.
THREATS  Fluctuation in raw material prices
 Intense competition from pioneer brands.
 Price competition.

~ 90 ~
Berger Paints is a preferred brand in India but on the basis of the survey there are some fields
that are yet to be more emphasized which can improve the sales volume in the near future are
stated as follows :-
 Alternate distribution channel demanded for the training programs based on the new
product launches.
 Berger should also concentrate on rural markets.
 Dealers want to improvement in transportation at town.
 It would be beneficial for the company if they can increase its sales and distribution in
villages.
 Another alarming factor is that now a day Berger Paints decorative segment’s products
are giving less coverage as compared to earlier times. So steps should be taken to make
the quality of the paint better and thicker to satisfy the existing customers.
 Shade cards should be made easily available to the contractors.
 As far as the interior and exterior texture paints are concerned the versatility of the
designs should be increased and designs should be more attractive.
 Booklets consisting of various wall designs as well as different shades should be made
available to the householders from where they can chose which category or quality or
design will best suit their personality.
 Stalls should be given in front of the construction sites, so that when people come to
see the flats they have bought, they can be demonstrated with different kinds of wall
paints and texture designs. These prospects can be easily converted into successful sale.

~ 91 ~
(11)
LIMITATIONS & SCOPE
OF STUDY

~ 92 ~
11.1) Limitations
 Survey area was confined to Moradabad & Bijnor.
 Survey was totally confined with small dealers and no builder was contacted.
 Time span was limited to 1 month.
 Questions were mostly open ended.
 There was less scope of feedback from end customers.
11.2) Future Scopes
 This study can be used by the company to convert more dealers into dedicated Berger
Paints customers.
 Analyses the requirements of the alternate channels and devise strategies of market
penetration.
 Make a quantitative research and analysis of the effectiveness of its sales force.

~ 94 ~
Conclusion
It was a good experience doing my training in totally different industry. Through this project I
became aware of paint industry and its operations.
The various findings during the project were that the market share of Berger Paints is around
33%. The major competitors of Berger are Asian Paints, ICI, Shalimar.
During the project I learned about various aspects of the paints industry. I learned about
various functions performed by the company like Business Development, Dealers’ perception
about the company’s products and performance, channel management, margins to the dealers
and various facets of the distribution system.
There is a huge potential for the paints industry as household incomes are rising and people
prefer to innovate with newer colors in their homes. There is always demand for quality
products and Berger being a preferred brand among customers. Dealers prefer keeping this
brand as it has a sizeable demand in the market.

~ 95 ~
BIBLIOGRAPHY AND
REFERENCE

~ 96 ~
Bibliography
 Marketing Management: A South Asian Perspective by Philip Kotler, Abraham Koshy,
Kevin Lane Keller, Mithileswar Jha
 Marketing Research: An Applied Orientation by Naresh K. Malhotra, Satyabhushan
Dash
 Advertising and Promotion by Keyoor Purani, George E Belch, Michael A Belch
Reference
 http://www.bergerpaints.com/
 http://en.wikipedia.org/
 http://stockshastra.moneyworks4me.com/paints-indian-paint-
industry-analysis-and-research-report-2011/
 http://www.scribd.com/
 http://www.slideshare.net/

~ 98 ~
PROSPECTIVE COUNTER- DATA MAPPING
Date Mapped By :
Dealer Contact Details (Location)
Counter Name
Name of Person
Other Family Members Involved Father / Wife / Son / Brother
Name of the Family members Involved
Town
District
Pin Code
Bank Details (Name of Bank)
Counter Phone Number Mobile Number
Counter Profile
Type of Market Metro / Suburb / Satellite Mkt / Town / Village
Population of Market
Location of Counter Main Market / Main Road / Cross Road / Bylane / Outskirts
Landmark near store
Transporter's who service the Market
(in case of non depot market)
Transporter Name Contact Person Contact Nos
Proximity Alert
Any Berger Counter Present Yes / No
Distance from This Counter (km)
Dealer Annual Turnover (lacs) Rs Lakh p.a.
Companies He is dealing with (pl mention Name of Co. & No. of years of dealing)
Cement : Hardware :
Steel : Tile :
Sanitaryware : Electrical :
Pumps : Glass :
Plywood : Paint :
If Dealing in Paint :
Annual Turnover in Paints
Does dealer have a CB machine
If Yes then of which Company.
If Dealing in Const Chemicals :
Sale Contribution Details (% sales)
Thru Wholesale %
Thru Customer %
Thru Painter %
Thru Sites %
If a Wholeseller
Which Products

~ 99 ~
How Many Vehicles
Which Districts are Serviced
How Many Retailers Serviced
Overall Comments / Recommendation
Willing to Deal with Berger Yes / Maybe / No
When to approach Immediate / Later
If Later, Details…

Expansion of the Market of Berger Paints Through Alternative Distribution Channel

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