2. Introduction
Manufacturing of decorative paints since 2000 in Nepal. It was established
through FDI from Berger Paints India Limited (BPIL), a MNC based in India with
subsidiaries in Bangladesh, Russia, Poland, and Cyprus.
The company has ushered in advanced manufacturing technology to conform
to international benchmarks of quality at its modern production facility in
Hetauda. Since its inception, Berger (J&N) has consistently responded to
consumer needs and demonstrated its commitment to consumers by offering
a varied range of high performance decorative products with the highest level
of customer service. That's why today it is one of the largest paint
manufacturers in Nepal with the highest compounded growth in the last
decadeerger (J&N) Nepal Pvt. Ltd. has been engaged in the.
Source :http://www.bergernepal.com/about.php
3. Companyinformation
• Founded 1760 U.K and in India 1923
• Starting out as Hadfield's (India) Limited, it had just one factory in Howrah, West Bengal
• By the close of 1947, Hadfield's was acquired by BritishPaints (Holdings) Limited, UK and
came to be known as British Paints (India) Limited
• Head quartered in Kolkata.
• Berger Paints has come a long way since its inception in 1923.
• Lewis Berger was the founder of Berger Paints.
• 2nd largest paint company next to Asian paints
• Fastest growing paint company
• Its annual sales turnover is `3600 crore
4. Vision
We will become the leading paints and associated products
manufacturing and marketing company in Nepal ensuring best
returns to our investors ' highest customer satisfaction.
Mission
( summarized mission of Berger paints) is :
We will lead by the innovation, commitment to achieve best quality
products and services, safeguard the interests all other stakeholders,
act as a good corporate citizen ensuring service towards community
and shall focus on environment, health and safety
Objectives
(The company utilizes all available resources to pursue its (health,
safety ,Environment/) 0bjectives by striving to attain economic
prosperity and ecological balance.
5. Responsibility of Board of director
Berger paints has nominal participation of the board of director with
limited degree of involvement in reviewing the performance or review
of key decision and program of management. “The role is widely
occupied by CEO and its management team . How ever the key
decision is made by board of director”.
Social Responsibilities of Board
Berger Paints believes in growth and fostering of human assets
which eventually contribute for the wellness of respective families,
their country and humanity at large which indicate that Berger
paints is following the carol view of social responsibility.
6. Legal Responsibilities
Legal responsibility as per defined by governments of Nepal
is very well obeyed by Berger paint such as employee
discrimination laws, laws related to quality standard or to pay
taxes and interest etc.
Ethical Responsibilities
Following are the moral correct path as well as to follow
generally held believe related to behavior is first priority
of Berger paints, Birthday celebration, celebrating Nepalese
day etc are the activities that help Berger feel its employee like a
family.
7. Ethical Approach of Burger Paint
Utilitarian approach to ethical behavior is followed by Berger as
the utilitarian approach proposes that actions and plans should be
judged by their consequences .
Thus, People at Berger react in a way that will give the greater
benefit to the society and lowest harm or cost .
Focus is specially placed at Berger paints on protecting the
environment as well the safety and health of customer, employee
and communities at large.
8. Marketing Mix
The marketing mix (also known as the 4 Ps) is a foundation model in marketing. The
marketing mix has been defined as the "set of marketing tools that the firm uses to
pursue its marketing objectives in the target". Thus the marketing mix refers to four
broad levels of marketing decision, namely: product, price, promotion, and
place. Marketing practice has been occurring for millennia, but marketing theory
emerged in the early twentieth century. The contemporary marketing mix, or the 4 Ps,
which has become the dominant framework for marketing management decisions, was
first published in 1960. In services marketing, an extended marketing mix is used,
typically comprising 7 Ps, made up of the original 4 Ps extended by process, people,
and physical evidence. Occasionally service marketers will refer to 8 Ps, comprising
these 4P s plus performance.
10. 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.
Following are the products offering by Lewis Berger Paints.
Interior Wall Coatings
Exterior Wall Coatings
Berger Metal & Wood Paints
Construction Chemical
Undercoats
Protective Coating
1.Interior Wall Coatings
Interior wall coatings is divided into three categories, namely
A.Interior Emulsions
B. Interior Wall Distempers
C. Designer Finishes
10
Marketing Mix in relation to Berger Paints
11. 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.
Place
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 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 uses public transportation carriers such as truck and railway on 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.
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12. Exteriorcoatingproducts
• Super protective 100% acrylic latex paint
specially formulated for tiles and bricks.
• protects tiles/bricks from dampness,
algae and fungi caused by lashing/heavy rain
• Premium Plus Exterior Wall Paint
• First paint in the industry to use the Silicon Technology
• Water rolls of it keeping your house 100% rain proof
• Comes with a warranty of 7years
• Withstand extreme weather conditions
• It has a unique feature called "one way barrier" which enables
the wall to breathe out moisture
• It keeps your house up to 5 degrees cooler
Emulsions
13. Exteriorcoatingproducts
• Premium plus acrylic paint for exterior walls with its
Elastomeric property
• The paint film stretches to cover hairline cracks
• Built for high rainfall areas where water seepage
occurs through hairline cracks
• It is formulated with 100% Acrylic Elaslomeric Polymers that expand and
contract with the substrate and prevent development of hairline cracks
over a long period of time
• It reflects Visible Radiation and infrared rays
• it helps trapped water molecules to easily evaporate
• Berger's Walmasta is a-100% water based paint. Made of
suitable pigments, it is ideal for dry climates. It has higher
resistance to cracking and its matt finish makes it a less
expensive alternative to cement paint.
Emulsions
14. Exteriorcoatingproducts
Weather coat texture- Its fine colourants and chemical inertness
guarantee longevity and fine texture. WeatherCoat Texture also
contains controlled quartz particle size distribution which
enables the paint to spread over uniformly.
Texture
Tartaruga Hi - Build Texture Coating provides a thin-layer decorative and
protective plaster coat for the interiors and exteriors of building.
Tartaruga -With a high-build acrylic formulation (200-300 microns), it
is water-resistant, includes aggregates like quartz, mica, silicon and
cobalt, as well as IN resistant inorganic pigments and other additives to
enhance its durability.
15. 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 paise per square feet. Some of the speciality 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 effected 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 discounts, seasonal discounts and allowances. The dealers take advantage of these discounts to gather more business.
Berger also came with the concept of paint calculator helps you calculate the area to be painted and gives you an estimate of the required amount of paint, along with material and
labourcost. 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, brandetc.
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 dealer and market demand.
In-Store Displays: Point-of-Purchase, Berger paints Banners, Demonstrations of color on wal, etc are provided by the company. Temporary Price Reduction (TPR): They get
marginsplussome incentivespromotionscheme 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.
15
16. 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.
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17. Sampling: Alowing 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.
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:
17
18. Historicalgrowth
• Rising level ofincome
• Consumers being morebrand
conscious
• Increasing urbanization
• Increasing share of organizedsector
• Development of realestate
• Increasing penetration in ruralareas 0
5000
10000
15000
20000
25000
30000
1 2 3 4
[source:aceanalyzer.com]
23. P.E.S.T.E.L
• POLITICAL FACTORS:-
– The political situation is more or less stable in nature now
• ECONOMIC FACTORS:-
– Market based economy
– Introduction of FDI in paint sectors
• SOCIAL FACTORS:-
– Rise in price of raw material
– Import of raw material
24. P.E.S.T.E.L
• TECHNOLOGICAL FACTORS:-
– Emerging of IT sector
– Modernization of paint like (waterproof paints, Teflon coating, creating colors shops etc.)
– Lead free paints
• ENVIRONMENTAL FACTORS:-
– Impact of volatile organic compounds (VOCs)
– Lead free paints
– Season and climate changes
• LEGAL FACTORS:-
– Pollution Control Law
– Health and Safety Law
– Environmental Law
25. S.W.O.Tanalysis
Strengths:-
• Berger Paints has excellent brand perception and brand awareness amongst its potential
customers.
• It provides with high quality products and has very high market space both in terms of
visibility and sales.
• With nearly one-fifth market share and is ranked 2nd inNepal.
• Its industrial and automotive coating is used by the best automobile companies like
Mercedes.
Weakness:-
• Dependence on Decorative Segment where competition is intense.
• High levels of lead found leading to negative publicity.
• Limited liquidity options.
27. Marketplanning
Berger is way behind its competitor Asian paints who enjoys a share of 49% while the former
enjoys 25% which less than its immediate competitor.
Therefore Berger has come up with several plans to increase their market share which are as
follows:
• Increase sales network
• Boost deliveries of the fastest growing emulsions for higher profit margins
• Bought the local unit of Sherwin Williams Co., a Cleveland-based paint maker for southern
and western markets of the country
• Focusing on emulsions
• Improving supply chain in village, towns and small cities
• Adding retail outlets
• The industry is forecast to grow $12.4 billion in 2017 from $5.9 billion in 2012
• Going premium by focusing more on decorative segment and Gala
[Source: Bloomberg interview with the managing director of Berger paints]
30. Promotion
• In-Store Displays: Point-of-Purchase, Berger paints Banners, Demonstrations of color on
wall, etc
• Contests: Dealer to dealer contest is kept to promote push strategy and best dealer gets the
reward
• Sampling: Allowing the dealer to experience the product or service by providing free samples
so as he can promote word of mouth
• Television advertisements
• The company comes out with many different sales promotion schemes on the larger packs.
Coupons and free gifts are offered on packs of more than 10 kgs
30
25
20
15
10
5
0
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
31. Consumersurvey
Brands Pashu
pati
Asian
Paints
Berger
Paints
Nerolac Shalimar
No Of Respondent 2 7 4 0 0
54%
31%
Green Quality Paints
ICI Asian Paints Berger Paints Nerolac
15%
Shalimar
Interpretation:
• In the Breathe Easy Emulsion category the maximum market
share is enjoyed by Asian Paints comprising of 54%
• Berger Paints enjoy the 2nd most market share of 31% and
• ICI enjoys the 3rd most market share 15 % .
So it can be interpreted that Asian Paints is the market leader
followed by strong competitors like Berger Paints
[source: ccrm.in]
32. Growthdrivers
• 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.
• Educated consumers are more brand consciousand 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.
• 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.
• 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.
33. Growthdrivers
• Development of the Real estate, 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 growthpotential in the above 3 sectors is immense, the paint industrybeing dependent on
these 3 sectorsis expected togrow along with them.
o Availability of financingoptions:Easier housing finance and auto finance is expected to favour more
people to buy houses and travel in personal vehicles.
o 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.
34. Comparativestudyofadvertisements
Berger Paints:
Product Name Weather Coat All Guard ExteriorPaints
Description A girl childstanding in the windowand experiencing the reverse effect of rain i.e water
moving up back to the sky, resemblingthe same in case of the exterior wallswhere water
willnot percolate and damage the construction after the rains.
Attention Factor Slogans like “Reversethe effect of rain”and “7years of warranty” are good for gainingthe
attention of the viewers.
Memorizing Factor “Reverse the effect of rain”is saida numerous times withinthe add whichwillstay in mind
easily.
Sentimental Appeal Keeping the wallsfungus free and spotless
EducationFactor Presence of siliconpushes water away leaving the wallsspotless, fungus free, and rain
proof
[source: youtube.com]
35. Comparativestudyofadvertisements
Asian Paints :
ProductName Asian Paints Ultima
Description Features or key advantages are notshowndirectlyto the customersbut through
expressions and acts it is made understandable that year after year the exterior paint of
the house stays withoutlosingits color and glamour, startingfrom the birthof the childtill
marriage.
Attention Factor “7years warrantywithcolour stay” thissloganwhichmeans that year after year the
conditions of the exterior wallsremain unchanged is good in attractingthe attention of the
viewers.
Memorizing Factor 4 to 5 times whenthe ownerof the housetries to tell aboutthe qualities of his sonto the
different visitors, the visitorswithoutgivingattention to his son starts praisingor
complementing the paint whichhe has used for hisexterior walls.
Sentimental Appeal No suchsentimental stuffsare related to thisadvertisement
Education Factor No such educatingstuffsare related to thisadvertisement
[source: youtube.com]
36. Comparativestudyofadvertisement
Kansai Nerolac :
Product Name Nerolac Exel Exterior Paint
Description Son was trying to take a rotten apple then mom comes up and says whichis 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 whichpresents a shabby look from outside) so
put nerolac paints to keep ur house safe from outside whichwill automatically keep it safe from
inside, usingthe key wordslike anti germs, anti allergy and anti pollution.
Attention Factor Ati Germs
Anti Allergy
Anti Pollution
No Harmful Fumes
Memorizing Factor The comparison shownbetween the rotten apple and the house.
Sentimental Appeal The bollywoodstar 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)
39. Importanceofpackagingin ‘berger’
• Hard core container big in size are used for domestic sale
• The color of the container should match with the color inside
• During export the paints are packaged in jars of tons and the sku containers are
travelled stand alone
• Big plastic jars are used for 30lt to 50lt and are used for toiletries in rural and semi
urban areas
• Small sku’s are sold in metal containers
• Packaging cost is more because the container must be chemical resistant
• Packaging is similar among competitors too
40. Branding&positioning
In 2010, Berger Paints repositioned itself on the lifestyle platform. It adopted a new branding
strategy, positioned Lewis Berger as the master brand and included the premium decorative
range under it. The strategy seems to have done wonders for the brand. Today, the
country's second-largest decorative paint player, which has a distribution network of multiple
stock points and plus retailers, has more than doubled its sales growthin the premium
water-based paint segment.
[source:himalyantimes.co
m]
44. Directcost
Interpretation:
It’s raw-material costs are always high since paint
industries require 300-400 raw-materials to
manufacture different kind of paints
Most of its stuffs are imported
Other costs remaining almost same throughoutthe
year
[source :aceanalyser.com]
0
500
1000
1500
2000
2500
Raw Materials Power & Fuel Cost Employee Cost
Mar' 14 (Rs. In cr.) 2084.7 33.61 158.74
Mar' 13 (Rs. In cr.) 1919.93 28.04 139.96
Direct cost
50. Careeropportunitiesinberger
• Sales and Marketing- They operate in a regional and national level and are quick to respond
to the evolving and expectations of the clients, distributors and end users.
• Supply Chain Management- The smooth functioning and running of the supply chain is
essential at every point as its plays a huge role in the day to day operation of the business.
• Paint Engineering- The paint engineers not just design and select the correct paint depending
on the project, but also have to study in depth the surfaces involved, the environmental
factors involved, ease of application, levels of adherence, corrosiveness and much more, to
ensure the durability and optimization of the paint.
[source : job description in naukri.com]
