BERGER PAINTS INDIA LTD.

ADVERTISING STRATEGIES OF PAINT COMPANIES IN INDIA

A Study into the recent trends of advertising strategies of Paint Companies in India

Sayan Chakraborty Enrolment No- 030206027

Marketing Major PGDM 2012-14

Unitedworld School of Business Ahmedabad

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ACKNOWLEDGEMENT

For achieving any destination, efforts are the path. On the path, we meet lots of people who

support us to make our journey memorable & few of them accompany us till we get the goal.

After getting the goal we must not forget the presence of such people who made our journey

easier. I express my sincere regard & my gratitude to all of them.

Sometimes words fall short to express your gratitude to people who have been instrumental in

providing you success in any juncture. The same happened to me during PGDM course at the

Unitedworld School of Business, Ahmedabad.

I express my indebtedness to my guide, Dr. Bhuvneshwar Gupta, Director, Unitedworld

School of Business, for providing me with the opportunity to undertake the dissertation

project of my own choice and also for carrying it out successfully. I have grasped a lot of

learning and working under his constant supervision and guidance was a great experience

throughout my course.

I would also like to present my sincere thanks to my faculty guide …………………….,

Faculty Guide, Unitedworld School of Business, Ahmedabad for being a constant source of

knowledge, information and motivation.

Last but not the least I am also thankful to my friends and family who have provided me with

their valuable help all throughout my course and also for their valued suggestion and

constructive criticism.

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APPROVAL OF THE FACULTY GUIDE

This is to certify that the project work titled “Advertising Strategies of the Paint

Companies in India” is a piece of work done by Mr. Sayan Chakraborty (PGDM, Batch

2012-14) under my guidance and supervision. To the best of my knowledge and belief this

report includes the work of the candidate himself and fulfills the requirement of the institute.

Faculty Guide

Unitedworld School of Business, Ahmedabad

.

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STUDENT DECLARATION

I hereby declare that the project titled “Advertising Strategies of Paint Companies in India”,

with special reference to Berger Paints India Ltd. submitted by me to Unitedworld School of

Business in partial fulfillments of requirements for the award of degree of Post Graduate

Diploma in Management, is my original work and interpretations drawn therein are based on

material collected by myself.

Place: Ahmedabad Sayan Chakraborty

Date: 7 April, 2014 PGDM 2012-14

Unitedworld School of Business

Ahmedabad

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OBJECTIVES OF THE PROJECT

The basic objective of the project undertaken was to understand the various sets of

advertising or marketing communications strategies adopted by the major paint companies

operating in India

The objectives can be summarized as follows:

To understand the advertising strategies the major players in the paint industry use.

To study the evolution of the advertising trends in the industry

To analyze the effectiveness of each methods of advertising implemented by these

companies

To understand the recent trends in the advertising strategies

To find a scope of improvement, if any.

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EXECUTIVE SUMMARY

Advertising is the main tool used to sell products and services. Every company irrespective of

the industry in which it operates understands the importance of a successful advertisement

campaign. Great brands are those that effectively formulate their advertisement strategies as

per the consumer behaviour of their target group and then also implement the planned

strategy effectively.

This paper signifies the importance of advertising in the Indian Paints Industry which is

seeing constant and dramatic changes due to the rise in income level, urbanization, growth of

infrastructure and rural development. It highlights that the Paints Industry is one of the most

consistent industries in India that is growing faster than the overall Indian GDP. Thus, the

major players in this sector are constantly changing their marketing communications

strategies to gain competitive advantage.

The paper starts with a detailed description about the Indian Paints Industry- its history, its

way of operations, its market segmentation and size, its growth over the years, etc. The

second part of this report deals with the company analysis of Berger Paints, one of the biggest

paint companies in India. It shows its performances over the years through some valuable

financial figures. The third part of this report understands the concept of Advertising. This

portion explains why advertising is the most effective way of communication. It also explains

the various models of advertising that are commonly used, the types of advertising methods

and also the growth of the advertising industry in India.

The final portion deals with the various advertising strategies used by the five major players

of this industry- Asian Paints, Berger Paints, Kansai Nerolac, AkzoNobel and Jenson

Nicholson. It discusses about each type of advertising method that these companies use and

also the effectiveness of these methods and what can be the scope of improvement of these

companies in terms of their advertising strategies.

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TABLE OF CONTENTS

About The Industry- The Indian Paints Industry…………………………………..11

The Beginning………………………………………………………………….12

Overview……………………………………………………………………….13

Workings of the Industry………………………………………………………14

Competition…………………………………………………………………….15

Market Size and Segmentation…………………………………………………16

Porter’s Five Forces Analysis…………………………………………………..18

Growth Drivers of the Industry…………………………………………………18

Major Concerns…………………………………………………………………20

Future Outlook………………………………………………………………….20

About The Company- Berger Paints India Ltd……………………………………..22

Company Overview- 3CET…………………………………………………….23

SWOT Analysis…………………………………………………………………30

PESTEL Analysis……………………………………………………………….31

Corporate Social Responsibility………………………………………………..32

Product Portfolio……………………………………………………………….33

Acquisitions and Mergers………………………………………………………38

Financials………………………………………………………………………39

Awards & Certifications………………………………………………………43

Introduction of the Topic- Advertising in India and the Recent Trends………….45

Introduction of the Topic……………………………………………………..46

Advertising Models…………………………………………………………..54

Commonly Used Advertising Methods………………………………………58

Growth of Advertising in India……………………………………………….63

Creativity in Advertising………………………………………………………70

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Research Methodology……………………………………………………………..74

Introduction…………………………………………………………………75

Marketing Research…………………………………………………………75

Research Design……………………………………………………………76

Sources & Methods of Data Collection…………………………………….77

Advertising Strategies Adopted by Major Paint Companies in India………….79

Introduction…………………………………………………………………80

Branding Strategies of Five Major Players………………………………….83

Advertising Methods………………………………………………………..86

o Television Commercials

o Print Ads

o Online Advertising

o Celebrity Branding

Conclusion………………………………………………………………………….128

Bibliography……………………………………………………………………….129

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LIST OF TABLES

Table 1- Berger Paints’ Competitor Analysis…………………………………………27

Table 2- Financial Results & Appropriations…………………………………………39

Table 3- Balance Sheet……………………………………………………………….40

Table 4- Ad Revenues in India……………………………………………………….64

Table 5- Indian Advertising Industry- Market Size and Projections…………………65

Table 6- Advertising Revenue………………………………………………………..65

Table 7- Indian Print Industry Overview……………………………………………..66

Table 8- Top Advertisers in India……………………………………………………69

Table 9- Factors Influencing Consumer Behaviour………………………………….81

Table 10- Celebrity Endorsers……………………………………………………….126

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LIST OF FIGURES

Figure 1.1- Indian Paint Industry Segmentation…………………………………13

Figure 1.2- Workings of the Industry……………………………………………14

Figure 1.3- Market Share of Paint Companies…………………………………..16

Figure 1.4- Indian Paints Industry Market Size for FY 2006-2012………………16

Figure 1.5- Decorative Paints Segmentation According To Revenue…………...17

Figure 1.6- Industrial Paints Market Share……………………………………….17

Figure 1.7- Indian Paints Industry Projections for the Next Few Years………….21

Figure 1.8- Key Observations of the Industry……………………………………21

Figure 2.1- Berger Paints- Over the Years………………………………………23

Figure 2.2- Berger Paints- Product Portfolio……………………………………33

Figure 2.3- Important Financial Charts and Figures…………………………….41

Figure 2.4- Market Capitalization……………………………………………….42

Figure 2.5- Distribution of Income………………………………………………42

Figure 2.6- Quarterly Analysis…………………………………………………..43

Figure 3.1- Classification of Advertising……………………………………….50

Figure 3.2- IMC Planning Process………………………………………………51

Figure 3.3- Product Life Cycle…………………………………………………..57

Figure 3.4- Indian Advertising Industry- Market Share…………………………66

Figure 3.5- Indian Print Industry- Segmentation………………………………..67

Figure 3.6- Indian Digital Advertisement Market………………………………67

Figure 3.7- Online Advertising Revenue Mix…………………………………..68

Figure 3.8- Expected Internet Connections in India……………………………68

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Figure 3.9- Online Advertising Sectors…………………………………………69

Figure 3.10- Creative Appeals in Advertisement……………………………….72

Figure 4.1- Secondary Data Collection Sources………………………………...78

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ABOUT THE INDUSTRY- THE INDIAN PAINTS INDUSTRY

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THE BEGINNING

India is currently one of the biggest contributors in the global paint and coatings industry.

The domestic paint industry however has a long history which dates back to 110 years when

the first manufacturing plant was set up by Shalimar Paints in Calcutta (which is now called

Kolkata) in 1902. Until World War II, the industry consisted of only few local producers and

two foreign companies. Thus, the market then was controlled by foreign companies.

However, local entrepreneurs started to operate after World War II when the imports were

stopped. Many local manufacturing facilities were set up, but still the market was largely

dominated by the foreign companies. Many foreign companies also set up their

manufacturing facilities in the country after the war. The British companies that dominated

the market then were: Goodlass Walls (later became Goodlass Nerolac), ICI, British Paints

(now Berger Paints), Jenson & Nicholson and Blundell & Eomite.

However, after the Indian independence, the market has grown exponentially over the year

with the emergence of new entrants in the market and also the constant shift in the consumer

behaviour. Currently, the market is mostly dominated by the unorganized sector. There are 12

major players in the organized sector and over 2,000 in the unorganized sector. Thus, it can

be said that unorganized sector occupies a large space in this market. But this has also

changed over the years because the unorganized sector occupies a nearly 70% market share in

this booming Indian paints industry. In the 1990s, the paint industry achieved a staggering

growth of about 12-13 per cent annually due to the growing Indian economy and also the

drastic reduction of excise from 40% to 16%. However, the growth was in single digits

during 2002-03 but there was a revival in 2003-04 when the industry achieved a robust

growth rate of 13%.

FIRST MANUFACTURING PLANT IN INDIA

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OVERVIEW

The Indian Paints industry, being over 100 years old occupies 4.3% of the global market of

paints and coatings. It is currently an industry of worth more than Rs. 24,000 crores or USD 6

billion. The market size of the Indian paints industry is about 2.7 million tonnes. India has

also been a major export of paint products in the global market.

The Paint Industry is generally classified into two segments- Decorative Paints and

Industrial Paints. Decorative Paint segment includes interior and exterior wall finishes,

enamels, wood finishes and ancillary products whereas the Industrial Paint segment includes

automotive and industrial, protective, powder, coil and marine coatings. The decorative

paints segment occupies the largest segment in this industry with almost 70% of the

industry’s total sales while the industrial segment occupies the remaining 30%. The main

drivers of the decorative segment are the realty and housing sector which not only forms the

largest demand in this segment but also the entire industry. Hence, it can wisely said that

realty and housing sector drives the entire paint industry in India. As far as the industrial

paints is concerned, sectors like infrastructure, automobiles, construction, consumer durables

and other sectors that require paint form the largest demand.

FIGURE 1.1- INDIAN PAINT INDUSTRY SEGMENTATION

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In the financial year, the paint industry stood at Rs.26, 040 crore, out of which the decorative

segment contributed nearly 71 per cent at Rs 18,490 crore, while the remaining Rs.7, 550

crore was contributed by the industrial segment. In terms of volume, the industry stood at

3.11 million tonnes, of which decorative segment accounted for nearly 77 per cent share.

WORKINGS OF THE INDUSTRY

The industry operates in the following manner:

FIGURE 1.2- WORKINGS OF THE INDUSTRY

Raw Materials- Raw Materials constitute 56% of the entire expenditure of the paint industry.

Titanium Oxide is the major raw material for paint companies. The fluctuation in the prices

of titanium oxide also affects the cost of paint which in turn affects the overall demand and

supply of the products.

End-users- Household sectors are the prime end-users of decorative paints, which form the

major segment of this industry. Automotive, construction and consumer durables form the

user segment of the industrial paints.

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COMPETITION

The competition in the paint industry can be divided into two parts- Organized &

Unorganized. As mentioned earlier, there are around 12 major paint companies in India that

form 65% of the total revenue. On the other hand, there are over 2,000 in the unorganized

sector that constitutes the remaining 35% of the market share. It is often observed that the top

5 companies contribute to 80% of the organized market. As the paints sector is more

technologically oriented, the power of differentiation in terms of quality lies on the major

players’ technological expertise. Thus, the existing companies are fighting it hard to capture

the maximum share in the market through collaborations with foreign companies. Some of

the leading players in the paint industry are:

Asian Paints

Berger Paints

Kansai Nerolac

Akzo Nobel ICI

Shalimar Paints

Jenson Nicholson

The Indian Paint Industry is currently estimated at Rs. 26,000 crores, which is expected to

touch Rs. 50,000 crores during the FY2016. Asian Paints is and has been over the years the

clear cut market leader in this industry. However, it has been facing stiff competition from

companies Kansai Nerolac and Berger Paints very recently. The paint industry is generally

divided into two segments- Decorative & Industrial. Kansai Nerolac is the market leader in

the industrial segment while Asian Paints is the market leader in the decorative segment.

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51%

17%

16%

13%

3% 0%

MARKET SHARE OF PAINT COMPANIES (FY2012)

Asian Paints

Berger Paints

Kansai Nerolac

Akzo Nobel ICI

Shalimar Paints

Jenson Nicholson

FIGURE 1.3- MARKET SHARE OF PAINT COMPANIES

MARKET SIZE AND SEGMENTATION

Market Size:

The financial year 2012-13 has been challenging for the paint industry due to various reasons

such as higher interest rates, increase in raw materials and inflation. In spite of this, the

industry is growing at a rate higher than the country‘s GDP. For the FY2012, the industry

stood at Rs. 28,500 crores growing at 12.5% from previous year. The decorative segment

accounted for 79% and stood at Rs. 20,000 crores while the industrial segment accounted for

the remaining Rs. 8,500 crores.

The market size of the paint industry over the years can be highlighted in the following

figure:

FIGURE 1.4- INDIAN PAINTS INDUSTRY MARKET SIZE FROM FY 2006-2012

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Segmentation:

The Paint industry is generally segmented into two parts- Decorative & Industrial. The

decorative segment accounts for 79% of the total industry and stands at Rs. 20,000 crores

while the industrial segment accounts for the remaining Rs. 8,500 crores.

Decorative Paints- Even the decorative paints segment can be further segmented in the form

of enamel, interior emulsion, exterior emulsion, distemper and wood finishes. Distempers are

generally low cost products. Enamels form the largest portion of the total sales from

decorative paints, which can be highlighted in the figure below. Asian Paints is the market

leader in this segment with a market share of around 53% while Berger Paints is second with

a market share of around 18%.

FIGURE 1.5-DECORATIVE PAINTS SEGMENTATION ACCORDING TO

REVENUE (FY2012)

Industrial Paints- This is one segment of the paint industry that is more technologically

driven than the others as it deals with industries. The industries that form the major end-users

of this segment are automobiles, consumer durables, and construction. Kansai Nerolac is the

market leader in this segment.

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PORTER'S FIVE FORCES

ENTRY BARRIERS- Medium

BARGAINING POWER OF

BUYERS- Medium

COMPETITION-

Low to Medium

AVAILABILITY OF SUBSTITUTES- Low to Medium

BARGAINING POWER OF SUPPLIERS-

Medium

PORTER’S FIVE FORCES ANALYSIS

GROWTH DRIVERS OF THE INDUSTRY

Rise in the level of income and education- India is a country which has a large

chunk of youth in its population. Along with the increase in the young population,

there is also an increase in the disposable income which in turn is leading to a change

in consumer habits. India has now quickly turned from a saving economy to a

spending economy. Thus, more money at the hands of people are enabling them to

buy quality products.

Education is also influencing consumer choices as educated consumers are becoming

more brand conscious and thus prefer companies that offer value-added services like

non-toxicity, weather protection, eco-friendly, etc.

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Increasing Urbanization- Urbanization is leading to a shift from temporary to

permanent houses. Urban houses are well designed both in the interior as well as

exterior aspect. Interior decoration has become a fashion statement nowadays and

more and more premium and medium paint is used for this decoration. Thus, it

increases the per-capita consumption of paints, thereby increasing the overall demand

of paints. Urbanization is also leading to more nuclear families. Thus, more nuclear

families mean more houses are built and more paints required.

Increasing share of the organized sector- As mentioned earlier, the organized sector

comprises of 70% of the total paints market and decrease in taxes for key raw

materials will further improve their market position. The organized sector is also

constantly expanding its distribution network and is using tinting machines at retail

outlets. These tinting machines offer a wide variety of colour shade options to choose

from. Thus, the organized sector is offering more value-added services than the

unorganized sector as the latter is more capital intensive.

Growth of the Realty, Infrastructure and Automobile sector- The demand for

paints is highly depended on the growth of the realty, infrastructure and automobile

sector as these sectors form 70% of the entire demand for the paints sector.

Development of the realty and infrastructure sector would lead to an increase in the

demand for decorative paints. On the other hand, automobile sector forms two-third of

the entire revenue of the industrial paint. The infrastructure segment creates direct

demand as well indirect demand. The growth of these three sectors is immense, thus it

also proves to be a major growth driver for paints industry.

Increasing penetration in the rural market- Rural market is a relatively untapped

market for the organized players. The usage of paint in those parts is mainly in the

distemper segment which is dominated by the unorganized sector. And also the

demand for paints in that area depends on agriculture, which in turn depends on

monsoon. With the advancement in irrigation facilities, dependence of agricultural

output on monsoons is expected to decrease and also modernization of agriculture and

overall development of rural India, the consumer preference is likely to improve, thus

providing the organized sector a good opportunity to tap that market.

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MAJOR CONCERNS

Cost of Raw Materials- The cost of raw materials is the major cause of concern

for the paints industry as it is a raw material intensive industry. Fluctuation in the

prices of titanium dioxide and petroleum will directly impact the pricing of the

paints industry. The industrial sector is more vulnerable to these fluctuations than

the decorative sector. Also, a larger portion of raw materials is imported, thereby

leaving the cost factor vulnerable to exchange rates.

Entry of MNCs in the market- Many foreign companies are entering into this

market seeing the growth opportunity in this sector. Entry of these foreign companies

will increase the competition and also decrease the profit margin of the existing

companies.

FUTURE OUTLOOK OF THE INDUSTRY

Indian Paints industry has witnessed remarkable growth over the years. With all the major

players in this segment coming up with innovative marketing and promoting strategies and

also by widening their distribution networks, it can be said that the paint industry is set to

grow in the future. In the FY2012, the paint industry grew at 12% and earning a revenue of

Rs. 26000 crores. According to many exports, the market enjoys one of the highest growth

rates. The industry is expected to grow at a CAGR of 14% in the next five years and is also

expected to touch Rs. 50,000 crores by the year 2017. One of the major issue of the industry

is the low per-capita consumption of paints which is very low at 1.25 kg as compared to 38kg

in Singapore or 25kg in U.S or 2.5kg in China. Thus, the rise in the per-capita income of the

Indian consumers will in turn help in increasing the per-capita consumption of paints. The

growing middle class with higher disposable incomes are also now shifting to branded paints,

thereby opening a big scope to the organized players. Also the automotive sector, which

forms the largest part of industrial paints is expected to grow at a CAGR of 15%, thereby

enhancing the opportunities of the industrial segment. The expected projections of the paint

industry can be highlighted in the figure below.

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FIGURE 1.7- INDIAN PAINTS INDUSTRY PROJECTIONS FOR THE NEXT FEW

YEARS

FIGURE 1.8- KEY OBSERVATIONS OF THE INDUSTRY

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ABOUT THE COMPANY- BERGER PAINTS INDIA LTD.

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COMPANY OVERVIEW

Company

Berger Paints India Ltd. is an Indian paint company that is headquartered in Kolkata, the

capital city of West Bengal. Since its inception in the year 1923, it has come a long way to

become the second largest decorative paint company in India after Asian Paints. The

company has the second largest distribution network among all the paint companies in India

with around 82 stock points, 15000 dealers and 12,00 tinting machines. Berger Paints has a

strong presence in East and North India, which accounts for 60% of their distribution

network. The Western and Southern part of India accounts for 40% of their distribution

network.

The Company derives almost 80% of revenue from decorative paints and the rest from

industrial paints of which automotive accounts for 8%, powder coating accounts for 2% and

other industries accounts for 10%. Berger Paints product portfolio includes interior and

exterior wall coatings as well as metal and wood paints. They have strong brands like Berger

Silk, Berger Rangoli, Berger Illusions, Berger Weather Coat, Jadoo Enamel, etc. Berger

Paints has four direct subsidiaries, four step-down subsidiaries and two JVs located across

geographies including Cyprus, Russia, Poland and Nepal.

FIGURE 2.1- BERGER PAINTS- OVER THE YEARS

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Company Philosophy

Continuous Innovation and Change

Achievement of goals are perform at high levels

Performance, Customer first, Ethical Practices and Valuing People

Managing and meshing stakeholders’ expectations and providing integration of

efforts.

GREEN HORIZON- An eco-friendly initiative by Berger Paints

Vision- “To endure an environmentally safe and secure future with a commitment from the

company and its employee to practice and implement methods that help reduce the harmful

effects on our environment.”

Mission

To conserve natural resources and ensure that protection of the environment remains

the top priority.

To take up the challenge and develop more advanced products which consistently

help to reduce the harmful effects on our environment and conserve natural resources.

We not only take the responsibility of environment protection but also make our

employees aware and committed to the cause.

We respect the needs and social implications of all communities and cultures where

our business operates.

Customers

As Berger Paints is a company that operates in both decorative and industrial paints

segments, its customer base can be divided into three main categories- Home Users,

Professional Users and Industrial Users. The detailed description of the three is given

below:

Home Users- This segment of customer base includes the normal households. As

it has been mentioned earlier in the report that people are becoming more brand

conscious and shifting from distempers to interior decoration, this user segment

forms a large of Berger’s customer base. This segment is spread over the entire

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country. Berger provides value added services to satisfy this segment, some of

which are highlighted in the figures below:

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Professional Users- This segment is also a major customer base in the decorative

paints sector. These types of users generally are involved in bulk purchasing.

Berger Paints has been involved in various landmark projects involving the

professional users, such as:

o The Bandra Skywalk Project

o Hotel Le Meridian Delhi

o TAPMI, Manipal

o Hotel Shangri La, Delhi

o Mantri Greens, Bangalore

o Akshardham Temple, Delhi

o Calcutta Club, Kolkata

o Bengaluru International Airport

o Cognizant, Chennai

o Eden Gardens, Kolkata

o CSI Airport, Mumbai

o AIIMS, Delhi

o Commonwealth Games Village

o National Library, Kolkata

Industrial Users- Berger Paints, being a major player in the industrial paints

sector, also has a large industrial user base. Berger Paints has a tie-up with major

companies like Mercedes India, which is one of the top automobile companies in

India. Its industrial user base can be categorized into following:

o GI & Automotive Coatings- Berger has established its presence in regards

to GI & Automotive Coatings. With sound knowledge of technology and

experience of catering to renowned brands, Berger has proven its expertise

in this segment.

o Powder Coatings- Berger Powder Coatings are used for goods ranging

from furniture to hospital items, power generators to garden tools and

much more. Leading brands have availed services from Berger, because of

the dependable quality of its products.

o Protective Coatings- Protective Coatings are meant to act as a protective

measure against emission of volatile organic compounds. This kind of

coating works as a protection against corrosion for a long duration.

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Competition

The competition in the paint industry can be divided into two parts- Organized &

Unorganized. As mentioned earlier, there are around 12 major paint companies in India that

form 65% of the total revenue. On the other hand, there are over 2,000 in the unorganized

sector that constitutes the remaining 35% of the market share. It is often observed that the top

5 companies contribute to 80% of the organized market. As the paints sector is more

technologically oriented, the power of differentiation in terms of quality lies on the major

players’ technological expertise. Thus, the existing companies are fighting it hard to capture

the maximum share in the market through collaborations with foreign companies.

Over the last 5 years (FY 07-08 to 11-12), the Company’s revenues, net of excise duty, have

grown at CAGR of 17.5%. Berger Paints stands second in the decorative sector following

Asian Paints as the market leader in this sector. It also stands second in the industrial sector

trailing behind Kansai Nerolac as the market leader in this sector. Overall, Berger Paints is

the second largest paint company in the country following Asian Paints and Kansai Nerolac,

details of which is given in the “Competition” section of “Indian Paints Industry” in this

report.

The detailed comparison of Berger Paints with its peers can be described in the table below.

TABLE 1- BERGER PAINTS COMPETITOR ANALYSIS

[Source- www.moneycontrol.com]

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Environment

Quality Policy

Berger Paints is committed to provide full satisfaction to our customers with respect to

Quality, Reliability and Delivery and attain Quality Leadership for all products that are

offered by us. We shall achieve this goal by:

Establishing a Quality Management System conforming to International

Standards.

Institutionalizing a culture of "Getting it Right, First Time."

Upgrading our Technology continuously to meet expectations of customers.

Planned and structured Training and Development Programmes for all employees.

Creating an environment which encourages team effort and where each

individual's contribution is recognised and valued.

[Source- www.bergerpaints.com]

Green Horizon

Green Horizon is Berger Paints’ endeavour to create a greener future and to make sure that

they remain true to their commitment towards their responsibility and accountability towards

the environment. This project aims at the following:

Shades of green in all colours.

Reducing waste and conserving natural resources

Installing energy efficient systems in all its manufacturing facilities

Eco safe products

Exterior Insulation & Finishing Systems

Aqua green Coatings

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Technology

Technology has become an integral part of any organization in today’s world. Organizations

tend to maintain the perfect balance between manual work and technology. As this era is

credited to be an era of technological advancement, companies are implementing various

software and hardware to maintain an effective relationship with its suppliers, customers and

shareholders.

Berger Paints, being one of India’s foremost paint companies, also realizes the importance of

deploying an effective ERP system. It uses Oracle’s effective ERP software in its day-to-day

operations. Apart from the regular ERP system, Berger Paints has also identified the need to

use an effective Customer Relationship Management (CRM) system to enhance

communication, feedback and service levels to the company’s customers and also to bring

down lead time, inventory and the overall working capital. Berger Paints has deployed

Microsoft Dynamics CRM Solution to boost business productivity. The company claims that

the implementation will lead to enhanced customer satisfaction, improved dealer engagement

and higher return on investment.[Source: www.informationweek.in] The company believes

that using this CRM software will bring down the time spent by the sales team on

administration activities and will enable them to focus more on business development. This

further helps to improve dealer service levels, process efficiency, integration and information

traceability and transparency in various business operations. Ease-of-use, low-cost

maintenance and functional excellence are some of the other key advantages offered by this

solution.

In keeping with the Company’s customer orientation, Berger Paints also provides a Preview

facility, available both online and offline, bringing value and convenience to today’s busy but

quality conscious consumers. Using the latest simulation software, consumers can check out

different colour schemes on photographs of their homes to help them choose just the right

combination prior to actual painting.

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SWOT ANALYSIS

Strengths

With almost Rs. 3500 crores as its revenue, it is the second largest paint company in

India.

Decorative segment, the biggest sector of the industry, is the major contributor of its

revenue.

Produces and markets a wide range of products under various brands names for both

decorative as well as industrial paints.

Well established distribution network all over the country with 7 manufacturing

plants, 15,000 dealers and 85 depots.

Excellent brand perception and brand awareness among its potential customers, with

Katrina Kaif as its brand ambassador.

Has high market space, both in terms of visibility and sales.

Has presence internationally. For example, Russia, Poland, Bangladesh and Nepal.

Has a strong presence in automobile coatings, which is used by top brands like

Mercedes.

Lone supplier of protective coatings to nuclear power plants.

Weakness

Over dependence on decorative sector where competition is intense

High level of lead found in products lead to negative publicity

Pricing power limited only to industrial sector

Trailing to the market leader by a big margin

Opportunities

Changing consumer trends leading to new product launches and innovation.

Increasing level of disposable income among the consumers.

Rising urbanization

Low per-capita consumption for paints

Revival in Infrastructure and Automobile Sectors.

Modernization of Tier II and Tier III cities and also Rural India

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Threats

Large presence of unorganized players

Stiff competition

Fluctuation in the prices of raw materials

Forex risk due to the import of certain raw materials

PESTEL ANALYSIS

Political Factors

Export-oriented economy

Political situation more or less stable

Reduction in excise duty and taxes on raw materials

Largest democracy in the world

Economic Factors

Market based economy

Introduction of FDI

More or less stable GDP growth

Inflation rate – 8.10 per cent

Increasing disposable income of middle class Indians

Increasing urbanization and rural development

Social Factors

Second largest populated country in the world

Different segments of people- upper, middle, etc.

Interior decoration becoming a fashion statement

Consumers becoming more brand conscious in regard to paints

Technological Factors

Modernization of paints

Implementation of CRM by major players to enhance customer service

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Emergence of lead free paints

Use of tinting machines

Emergence of IT sector

Environmental Factors

Impact of Volatile Organic Compounds (VOC)

Less usage of lead in products

Dependence on seasons and climate

Inclination towards eco-friendly products

Legal Factors

Pollution Control Law

Consumer Law

Health and Safety Law

Environment Law

CORPORATE SOCIAL RESPONSIBILITY

[Source- Berger Paints Annual Report 2012-13]

The Company is a multi-locational and multi-cultural company having plants and branches

all over India. The Company is committed to discharging its obligations to its stakeholders.

The Company believes that operating with accountability and transparency all over India and

elsewhere in the globe, respecting the customs, practices and laws, providing honest means of

livelihood to people and adding to wealth of nations, are by themselves self-fulfilling.

As part of the Company’s social responsibilities, following are few of the activities carried

out during the year:

• Child sponsorship programmes

• Education materials for schools

• Renovation and painting of schools in the vicinity of our presence

• Supporting children with special needs

• Organizing Health Camps

• Assistance to the aged

• Developing areas around the manufacturing sites/offices in the form of upkeep

of roads, parks, water pumps, tube wells, etc.

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BERGER PAINTS

INTERIOR WALL COATINGS

EXTERIOR WALL COATINGS

BERGER METAL & WOOD PAINTS

PROTECTIVE COATING

UNDERCOATS

CONSTRUCTION CHEMICALS

• Celebration of Environment Day

• Plantation of saplings and gifting plants to local communities

• Spreading awareness of a greener environment through schools and

educational institutions

• Organization and participation of awareness programmes at the adjacent

areas/vicinity of the manufacturing locations

• Supporting seminars, research work in regard to environment.

PRODUCT PORTFOLIO

Berger Paints is one of the major players in the paint industry, both in decorative and

industrial sector. It is currently the second largest paint company in India. Thus, it offers a

wide range of products under various brand names. The product categories of Berger Paints

can be classified as follows:

FIGURE 2.2- BERGER PAINTS PRODUCT PORTFOLIO

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DESIGNER FINISHES

• Silk Illusions Non Metallic

• Silk Illusions Metallica

• Lewis Berger Design Stories

• Silk Illusions Marble

INTERIOR EMULSIONS

• Breathe Easy

• Silk Luxury Emulsion

• Easy Clean

• Rangoli Total Care

• Bison Acrylic Emulsion

INTERIOR WALL DISTEMPERS

• Jadoo Acrylic Distemper

• Bison Distemper

Interior Wall Coatings

Exterior Wall Coatings

EXTERIOR EMULSIONS

• WeatherCoat Tile Protektor

• WeatherCoat All Guard

• WeatherCoat Smooth

• WeatherCoat Kool & Seal

• WeatherCoat Longlife

• Walmasta

TEXTURE FINISHES

• WeatherCoat Texture

• Tartaruga Hi – Build

• Tartaruga

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Berger Wood & Metal Paints

Protective Coatings

ENAMELS

• Breathe Easy Enamel

• Luxol Lustre

• Luxol Satin Enamel

• Luxol High Gloss Enamel

• Jadoo Enamel

• Berger Butterfly GP Enamel

CLEAR WOOD

• Woodkeeper

• Melamine Finish

EPILUX

LUMEROS

ZINC ANODE

BERGERTHANE

AQUAGREEN COATINGS

ANTICARB RANGE

REBAR COATINGS

SIGMARK

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Undercoats

Construction Chemicals

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PICTORIAL REPRESENTATION OF BERGER PAINTS’ PRODUCTS

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ACQUISITIONS & MERGERS

Acquisition of Sherwin Williams Paints India Pvt. Ltd

Berger Paints India Ltd. Acquired the architectural operations of Sherwin Williams Paints

India Pvt. Ltd. with effect from 31st March, 2013. The acquisition was carried out by Berger’s

wholly-owned subsidiary Brushworks India Ltd. and was funded through internal accruals.

The acquisition is said to further strengthen the position of Berger Paints in the decorative

business. The main aim behind the acquisition of Sherwin is to gain prominence in the

Southern India market as Sherwin was a major player in that part of the country. This

transaction significantly increases the Company’s presence in key markets and builds on the

Company’s strategy to grow its architectural paint business throughout India. It brings a high

quality, committed team of employees to the Berger Paints family, a 24,000 MTPA paints

plant at Taloja in Maharashtra and relevant brands. The integration process with the erstwhile

architectural paints business of Sherwin Williams Paints India Private Limited was carried

out at a fast pace and Mr. Jairaj Hegde, who was in charge of that company earlier, continues

to be the CEO of Brushworks Paints Limited.

Subsidiary and Joint Ventures

Berger Paints has four wholly-owned subsidiaries- Beepee Coating Private Ltd. in Gujarat,

Berger Jenson & Nicholson (Nepal) Private Ltd. in Nepal, Berger Paints (Cyprus) Ltd. in

Cyprus and Lusako Trading Ltd. in Cyprus.

The above mentioned companies also have their respective wholly-owned subsidiaries,

details of which are given below:

• Brushworks India Ltd. - Wholly-owned subsidiary of Beepee Coatings

• Bolix S.A., Poland- Wholly-owned subsidiary of Lusako

• Berger Paints Overseas Ltd., Russia- Wholly-owned subsidiary of Berger Cyprus

• Bolix Ukraine Limited Liability, Ukraine- Subsidiary of Bolix S.A.

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FINANCIALS

For the Financial Year 2012-13

For the financial year 2012-13, Berger Paints India Ltd. achieved net consolidated revenue of

Rs. 3,346 crores as against Rs. 2,948 crores in the previous financial year of 2011-12. The

profit before depreciation, interest and taxes amounted to Rs. 403 crores as compared to Rs.

334 crores in the previous financial year. The profit before tax has also seen a significant

growth from Rs. 254 crores in 2011-12 to Rs. 308 crores in 2012-13. There has also been a

21% increase in profit after tax, from Rs. 180 crores to Rs. 218 crores. Over the past few

years, the company’s revenue has grown at a CAGR of 17%. The above mentioned points are

highlighted in the figures below:

TABLE 2- FINANCIAL RESULTS & APPROPRIATIONS

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TABLE 3- BALANCE SHEET FOR THE YEAR ENDED 31ST

MARCH, 2013

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FIGURE 2.3- Some Important Charts and Figures

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FIGURE 2.4- MARKET CAPITALISATION

FIGURE 2.5- DISTRIBUTION OF INCOME

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NET SALES EXPENSES NET PROFIT

Q1 2013-14 816.16 740.71 55.16

Q2 2013-14 827.29 753.28 55.53

Q3 2013-14 879.24 791.34 65.65

0

100

200

300

400

500

600

700

800

900

1000

AM

OU

NT

IN C

RO

RES

(R

s.)

QUARTERLY REPORT (FY 2013-14)

Quarterly Reports

FIGURE 2.6- QUARTERLY ANALYSIS

AWARDS & CERTIFICATIONS

Awards

10th

Annual Construction Global Awards 2012

Builder Information Bureau (BIB) 2012 Leadership in the paint category

Reader's Digest Gold Award - 2008 Most Trusted Brand

Best Supplier Award Outstanding contribution in Product Development OEM

customer M/S Whirlpool - 2005, Faridabad

Fastest Growing Paint Company Construction World NICMAR Award

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Certifications

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INTRODUCTION OF THE TOPIC- ADVERTISING IN INDIA AND THE

RECENT TRENDS

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INTRODUCTION TO THE TOPIC

Advertising- an effective way of communication

Nearly everyone in today’s world of modernization is impacted strongly with advertising and

promotion. This can be seen in the huge costs incurred in the marketing purposes of

organizations both in the private as well as private sectors. Companies are fighting it hard to

achieve competitive advantage with the efficient and effective use of their advertisement

campaigns and promotional strategies. The concept of marketing has also evolved from the

Production Concept to Product Concept to Selling Concept to Holistic Marketing Concept.

The marketing strategies of all organizations around the globe are more customer-oriented

and this is also enabling some organizations to adapt to customization. Thus, as the business

scenario is more inclined towards the customer satisfaction, companies have identified the

need to effectively communicate their offerings to their target customers. It has been found

out that the companies that effectively communicate their products and services and position

themselves in front of the consumers are the ones that are the market leaders and achievers.

The impact of advertising has expanded to such an extent that it is used not only to sell

products and services, but also to promote causes, market political parties and candidates, and

deal with social issues like addiction to drugs and alcohol. Marketers are constantly

innovating in their advertising strategies by constantly finding new ways to communicate

with its customers. Thus, consumers are finding it difficult to avoid the marketing campaigns

of such companies.

Marketers often feel that there is no other field to study that is more dynamic and fascinating

that advertising and promotion. However, they also acknowledge the fact that the field of

advertising is constantly changing due to the following reasons:

Changing consumer needs and preferences

Clients wanting better results

Creativity becoming an integral part in advertisement campaigns

Emergence of rural segment as an important customer base

Economic growth

Increasing expenditure on advertising and sales promotion

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Not only advertising as a concept has evolved over these years, but the modes of advertising

have also seen dramatic changes in these past few years. For decades, advertising for a

national brand involved one or two commercials for television, few print ads for national

magazines, and sales promotion techniques like coupons and offers. But in the present world,

there are various fields where an advertising campaign can be put into effect, such as:

Print

Radio

Cable and Satellite TV

Internet

Tie-ups and Associations

Events

Thus, it can be seen that advertisers are using the above mentioned outlets to capture the

attention of its consumers. In addition to redefining the role and nature of their advertising

agencies, marketers are changing the way they communicate with consumers. They know

they are operating in an environment where advertising messages are everywhere, consumer

channel-surf past most commercials, and brands promoted in traditional ways often fail.

New-age advertisers are redefining the notion of what an ad is and where it runs. Stealth

messages are being woven into the culture and embedded into movies and TV shows or made

into their own form of entertainment. Many experts argue that “branded content” is the wave

of the future, and there is a growing movement to reinvent advertising and other forms of

marketing communication to be more akin to entertainment. Companies such as BMW, Levi

Straus & Co., Nike, and Skyy Spirits are among the marketers using “advertainment” as a

way of reaching consumers: They create short films or commercials that are shown on their

websites.

Therefore, companies are focusing more on advertisement as an effective mode of

communication as it can reach its geographically-diverse customers. The increasing use of

TV and Internet has further enlightened the effective use of advertising. The rivalry amongst

companies can also be seen in their advertisements where they directly or indirectly target

their competitors. Thus, it can be said that advertisement is one field that is set to grow and

will see many more dramatic changes in the coming future with the advancement of

technology.

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Advertising- Promotional Mix Tool of IMC

For many years, the promotional functions in many companies were dominated by mass-

media advertising. Companies normally took guidance from their advertising agencies in all

areas of marketing communication. Some marketers often used additional marketing

channels, but these were termed as auxiliary services and were not properly looked upon.

Public Relations agencies were used to maintain the organization’s image and brand building.

Many marketers built strong barriers around the various marketing and promotional functions

and planned and managed them as separate practices, with different budgets, different views

of the market, and different goals and objectives. These companies failed to recognize that

the wide range of marketing and promotional tools must be coordinated to communicate

effectively and present a consistent image to target markets.

It was in the 1980s that the companies identified the need to develop a strategic integration of

their promotional tools. Thus, the concept of Integrated Marketing Communications came

into the picture, that co-ordinated all the promotional tools and marketing activities of a

company. The basic tools used by an organization to accomplish its marketing

communication objectives are known as Promotional Mix. There were four basic elements in

the traditional promotional mix- Advertising, Sales Promotion, Publicity/Public Relations

and Personal Selling. However, with the dramatic change in the communication process,

internet as well as direct marketing were also identified as an important promotional for

modern day marketers.

THE PROMOTIONAL MIX

ADVERTISING

DIRECT MARKETING

INTERNET MARKETING

SALES PROMOTION

PUBLICITY/PUBLIC RELATIONS

PERSONAL SELLING

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Advertising is generally defined as the paid form of non-personal communication about an

organization, product or service, or idea by an identified sponsor. There are two important

aspects of this definition- paid and non-personal. The paid aspect of this definition reflects

the fact that the space or time for an advertising message is bought, except for a public

service announcement. The non-personal aspect of this definition indicates the involvement

of mass media (T.V., radio, magazines, newspapers, etc.) in transmitting a common message

to a large number of people at the same time. The nonpersonal nature of advertising means

that there is generally no opportunity for immediate feedback from the message recipient

(except in direct-response advertising). Therefore, before the message is sent, the advertiser

must consider how the audience will interpret and respond to it. [ Source- “Advertising &

Promotion- An Integrated Marketing Communications Perspective”, George E. Belch &

Michael E. Belch]

Advertising is the best-known and widely-used tool of promotion due to its pervasiveness. It

is a very essential tool especially for those companies whose products and services are

targeted at mass consumer levels. Advertising is important for various reasons, some of

which are as follows:

Cost-effective method for communicating with large audiences

Creates brand images and symbolic appeals for a company or a brand

Specifically tailored for different channels

Creativity at its best

Ability to strike an instant chord among the target customers

Acts as a differentiator from the competitors

There are various forms of advertisements, which are classified in the figure below:

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FIGURE 3.1- CLASSIFICATION OF ADVERTISING

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The Marketing Communications Planning Process

The Marketing Communication program of an organization is developed with a specific

purpose in mind and is generally the end product of a detailed marketing and promotional

planning process. Planning plays an integral part in every business function. Without proper

planning one cannot reap the benefits of a marketing campaign. Thus, an effective marketing

communications program also has a detailed process, which is described in the figure below:

FIGURE 3.2- IMC Planning Process

The detailed descriptions of the above steps are as follows:

Review of Marketing Plan

• Examine overall marketing plan and objectives

• Role of advertising and promotion

• Competitive analysis

• Assess environmental influences

Monitor, evaluate, and control integrated marketing communications program

Integrate and implement marketing communications strategies

Develop Integrated Marketing Communication Program

Budget Determination

Analysis of Communications Process

Analysis of Promotional Program Situation

Review of Marketing Plan

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Analysis of Promotional Program Situation

• Internal Analysis- Review of previous program, ability to implement, agency

evaluation

• External Analysis- Consumer Behavior Analysis, Market Segmentation and Target

Marketing, Market Positioning

Analysis of Communications Process

Analyze receiver’s response processes

Analyze source, message, channel factors

Establish communications goals and objectives

Budget Determination

Set tentative marketing communications budget

Allocate tentative budget

Develop Integrated Marketing Communications Program

Advertising

Direct Marketing

Internet Marketing

Publicity/ Public Relations

Sales Promotion

Personal Selling

Integrate and Implement Marketing Communications Strategies

Integrate promotional-mix strategies

Create and produce ads

Purchase media time, space, etc.

Design and implement direct-marketing programs

Design and distribute sales promotion materials

Design and implement public relations/publicity programs

Design and implement interactive/Internet marketing programs

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Monitor, Evaluate, and Control Integrated Marketing Communications Program

Evaluate promotional program results/effectiveness

Take measures to control and adjust promotional strategies

Marketing and Promotions Process Model

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ADVERTISING MODELS

AIDA Model

Attention- This stage of the AIDA Model occurs at the beginning and is designed to give the

prospective customers a reason to take notice of the offerings of the organization. The

purpose of this stage is to give them a reason to know more about the product.

Interest- After the interest of the prospects is garnered, the next level is to maintain the

interest of the prospects towards the products and services to keep them engaged. This can be

done by explaining the prospects how the problem identified in the earlier stage can affect

their lives.

Desire- After explaining the problem to the prospects, the next stage is to show them how the

products and services offered by the company can solve the problem mentioned earlier. This

can be done by highlighting the features and attributes of the offerings.

Action- After creating a desire to purchase, the final step of this model is to persuade the

prospects to take action in terms of purchase. This can be done by offering limited discounts

for a limited period of time, which will induce them to take immediate action.

ATTENTION

INTEREST

DESIRE

ACTION

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DAGMAR Approach

DAGMAR Approach is a famous marketing approach to measure the results of an advertising

campaign. DAGMAR stands for- Defining Advertising Goals for Measured Advertising

Results. The approach involves setting specific, measurable objectives for a campaign to

determine if specific objectives were met. Specifically, DAGMAR seeks to communicate a

specific message through four steps:

Awareness - making the consumer aware that the product or company exists

Comprehension - letting the consumer know what the product is used for

Conviction - convincing the consumer to purchase the product

Action - getting the consumer to actually make the purchase

DRIP Model

Differentiate- This process deals with differentiating the products or services of a particular

company from others in the same company.

Reinforce- Here the aim can be as a reminder to consumers of the benefits of a product, or

persuading them to start a new transaction.

Inform - Inform about your offering or make the target group aware about it.

Communicate and educate about our offering to your prospects. This can include new

DIFFERENTIATE

REINFORCE

INFORM

PERSUADE

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PROBLEM RECOGNITION

INFORMATION SEARCH

EVALUATION OF ALTERNATIVES

PURCHASE

POST-PURCHASE EVALUATION

features, benefits, availability, offers, value etc. This will educate the consumer about our

product.

Persuade- It means induce your prospect to behave in a certain way. Persuade your audience

to behave in a particular way, evoke certain attitude within customers. Here we’re building a

relationship with our customers, getting into emotional connect with them.

VIPS Model

The VIPS Model is an advertising model designed by David Bernstein which implies that for

an advertisement to be effective, the message should be checked to have the following

qualities:

Visibility

Identity

Promise

Single-mindedness

Decision Making Process Model

The Decision Making Process is one of the most widely used tools for analysing consumer

behaviour. As advertising campaigns are designed keeping in mind the consumers, it can be

quite effective in formulating a proper advertising strategy.

The key components of the DMP Model are:

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The marketers can use this model in their advertisement campaign in the following ways:

Problem Recognition- Remind or create perception for need

Search for Information – Find out what we have to offer

Evaluation of Alternatives- Inducing customers that the products or services are

better than that of the competitors.

Purchase- Easy to buy

Post-Purchase Evaluation- Reminding customers that they made the right choice

Repurchase- Making the customers feel that they are the valued customers.

Product Life Cycle Model

The PLC Model is an effective marketing tool that analyses at which stage a particular

product is in the market. It attempts to identify a set of common stages in the life of

commercial products.

It normally comprises of four stages:

FIGURE 3.3- PRODUCT LIFE CYCLE

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The PLC Model can be used by the advertisers in the following way:

Pre-Launch- Teaser Campaign

Introduction- Launch Campaign

Growth- Maximise sales

Maturity- Tactical Campaigns

COMMONLY USED ADVERTISING METHODS

Television Advertising

A commercial advertisement on television is a span of television programming produced and

paid for by an organization, which conveys a message, typically to market a product or

service. Advertising revenue provides a significant portion of the funding for most privately

owned television networks. The vast majority of television advertisements today consist of

brief advertising spots, ranging in length from a few seconds to several minutes (as well as

program-length infomercials). Advertisements of this sort have been used to promote a wide

variety of goods, services and ideas since the dawn of television.

It can be done on cable TV, national TV or the local stations. The concept behind it is to

bring advertising commercials, production and campaigns to TV viewers in between their

favourite programs as this is set to get their attention. Successful TV advertising is witty,

thoughtful short and straight to the point.

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Infomercials

[Source: Investopedia]

Infomercials are a form of television advertisement that acts as a stand-alone program, and

typically lasts longer than five minutes. Because an infomercial lasts longer than a regular

commercial, it is able to present more details about a product or service and gives a company

more time to present a persuasive call to action. Most infomercials will prompt the viewer to

call a toll free number or visit a website to make a purchase several times during its run.

Radio Advertising

Radio Advertising is one of the oldest forms of advertising which is done through the

medium of radio. Radio advertisements are broadcast as radio waves to the air from a

transmitter to an antenna and a thus to a receiving device. Airtime is purchased from a station

or network in exchange for airing the commercials. While radio has the limitation of being

restricted to sound, proponents of radio advertising often cite this as an advantage. Radio is

an expanding medium that can be found not only on air, but also online.

Online Advertising

Online Advertising is the most popular form of advertising nowadays that uses the internet

and the World Wide Web to communicate marketing messages to its target customers to

attract them. This form of advertising is seeing dramatic changes every day and is expected to

create more opportunities for every organization irrespective of the industry it operates. The

increasing presence of people in the Internet all over the world is inducing companies to

formulate effective online advertising strategies. Examples of online advertising can be-

social networking, e-mail marketing, banner ads, contextual ads in search engine pages, etc.

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Covert Advertising

Covert Advertising or Guerrilla Advertising is a form of advertising where the product or

service of an organization is embedded in entertainment and media. This type of advertising

is done by the manufacturing companies partnering with film producers in order to show their

product on screen and also highlight their brand name, as part of the flick. This is a very new

concept of advertising that is emerging very fast and which can be seen in major films all

over the world.

Press Advertising

Press advertising describes advertising in a printed medium such as a newspaper, magazine,

or trade journal. This encompasses everything from media with a very broad readership base,

such as a major national newspaper or magazine, to more narrowly targeted media such as

local newspapers and trade journals on very specialized topics. A form of press advertising

is classified advertising, which allows private individuals or companies to purchase a small,

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narrowly targeted ad for a low fee advertising a product or service. Another form of press

advertising is the Display Ad, which is a larger ad (can include art) that typically run in an

article section of a newspaper.

Billboard Advertising

Billboards are large structures located in public places which display advertisements to

passing pedestrians and motorists. Most often, they are located on main roads with a large

amount of passing motor and pedestrian traffic; however, they can be placed in any location

with large amounts of viewers, such as on mass transit vehicles and in stations, in shopping

malls or office buildings, and in stadiums.

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In-Store Advertising

In-Store Advertising is advertising at a retail store. It involves placing of products in visible

locations in a store, such as at eye level, at the end of aisles and near checkout counters. This

type of display is commonly known as POP- Point of Purchase display.

Celebrity Endorsement

This type of advertising is the most cost bearing one for an organization as it involves a well-

known celebrity to endorse the product or service of the organization. Advertisers often

advertise their products, for example, when celebrities share their favourite products or wear

clothes by specific brands or designers. Celebrities are often involved in advertising

campaigns such as television or print adverts to advertise specific or general products. The

use of celebrities to endorse a brand can have its downsides, however. One mistake by a

celebrity can be detrimental to the public relations of a brand.

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GROWTH OF ADVERTISING IN INDIA

Advertising is one field in India which has seen dramatic changes in the past few years. The

emergence of various new modes of advertising has really opened up the doors for many

organizations to capture the attention of a large chunk of people at different places. The

Indian context also offers unique opportunities to the marketers. Even big multi-national

brands are finding it tough to implement an effective advertising plan that can cater to the

diverse culture of India.

Cultural and economic diversity, a blend of Western lifestyle, strong cultural anchoring, and

the rural/urban divide are some of the critical factors that marketers take into consideration

while formulating their advertisement campaigns. In India, the advertising industry is

growing at 30% to 35% annually. Currently, the Indian advertising industry is worth more

than Rs. 36,000 crores and it is expected to double in the next five years according to the

Federation of Indian Chamber of Commerce and Industry.

In the year 2005, advertising industry in the U.S.A was merely a $300 billion industry that

was mainly focused on the traditional methods of advertising- radio stations; TV broadcast

stations, media and print and new websites that were just gaining prominence. It also

included direct mail, which had a share of about $21 billion in the total advertising industry,

and also outdoor advertising, which had a mere $6 billion share. In addition, there was also a

significant increase in specialty and alternate advertising, from ball point pens printed with a

message to T-shirts to small planes towering advertising banners.

Advertisers are constantly faced with daunting realities regarding the various media they can

use to implement their advertising campaigns to reach a wider audience. It has come to their

notice that traditional advertising is not connecting with the consumers the way it did few

years back. In other words, it can be said that traditional media is losing control over its target

audience. The advertisers no longer feel that their ads in TV, radio and print media can gain

mindshare and really induce the consumers to make the ultimate decision to buy. Consumers,

especially in the younger demographics, now demand more and more control over what they

watch, read or listen to and thus more control over the advertising they are exposed to. Issues

related to control include: pricing for content (including free, illegal download versus

authorized, paid downloads or pay-per-views); portability (the ability for a consumer to

download once, and then use a file on multiple platforms and devices).

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Over the past few decades, not only advertising but also the context in which it operates has

also changed dramatically. As the communications universe expanded and society became

more fragmented, advertising lost its traditional place within the communications system. It

has been faced with lot of challenges that it is finding hard to meet. Advertising and

marketing are undergoing a seismic shift, as new technology endangers social change and

transforms the way consumers view commercial interaction. ‘Brand’ advertising is not

something which consumers find always adequate. Thus, marketers are trying to the utmost

to cope up with the challenges posed at them. Advertising and Advertising research are also

forcing marketers to focus on individual advertising rather than mass advertising.

India is becoming a market that is slowly but steadily being dominated by technology, thus

the scope of advertising is also evolving hand in hand. Due to this growing dependence on

technology, individuals are getting more interconnected and at the same time isolated with

the whole world virtually via computers. New technology offers a computer-mediated

environment for advertisers to communicate their messages.

The use of Internet and social networking sites have increased to such an extent that many

large companies have also identified that they can capture the largest attention from these

sites as people are normally found to spend most of their time on these sites. Also with the

growing popularity of e-commerce business in India, advertisers are finding it easy to educate

the consumers about online advertising.

Experts foresee an exciting future for advertising as it is adapting to multicultural strategies,

finding new uses for new media and exploring e-commerce and online information

technologies. Some of the statistics relating to the growth of advertising in India can be seen

in the figures below:

TABLE 4- AD REVENUES IN INDIA

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TABLE 5- INDIAN ADVERTISING INDUSTRY- MARKET SIZE & PROJECTIONS

TABLE 6- ADVERTISING REVENUE

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FIGURE 3.4- INDIAN ADVERTISING INDUSTRY- MARKET SHARE

TABLE 7- INDIAN PRINT INDUSTRY- OVERVIEW

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FIGURE 3.5- INDIAN PRINT INDUSTRY- SEGMENTATION

FIGURE 3.6- INDIAN DIGITAL ADVERTISEMENT MARKET

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FIGURE 3.7- ONLINE ADVERTISING REVENUE MIX

FIGURE 3.8- EXPECTED INTERNET CONNECTIONS- INDIA

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FIGURE 3.9- ONLINE ADVERTISING SECTORS

TABLE 8- TOP ADVERTISERS- INDIA

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CREATIVITY IN ADVERTISING

[Source: Online Journal of Communication and Media Technologies, Volume: 2 – Issue: 3 –

July – 2012]

In today’s world where it is very difficult to shape consumer attitudes and behaviours and

move them to the next level of buying process, advertisers find it difficult and challenging to

break through the clutters of competitive advertising. Consumers are no longer impacted with

the traditional advertising that mainly focused on the features and characteristics of the

products or services in offer. The preferences of the consumers have identified the use of

creativity in advertising as the one factor that keeps them interested. The importance of

creativity factor in advertising has got wide recognition by many researchers, practitioner, but

there is a miss of true & systematic research to define advertising creativity and how it relates

to ad effectiveness.

It is a known and accepted fact that there should be an element of creativity in advertisement

campaigns. This creativity is to create something new, unique, extremely attractive and

appealing to the consumers. In fact, advertising itself is a creative process. It is the outcome

of long term planning and hard work on the part of the copy writer & creative director who

prepares & shapes the final copy of advertisement. Advertising allows you to communicate a

salient message to a large group of consumers faster than any other form of communication.

It allows you to truly connect with your consumer; it gives you an opportunity to develop an

ongoing relationship between the consumer and a brand. At its best, advertising will create a

sense of urgency for the consumer, honest awareness and accurate that there are products,

places, styles or sensibilities that cry out for attention or action. To do that there are various

styles of advertising, a soft sell or a hard sell, a subtle approach or a blatant approach, an

informative style, humour or a modern and edgy one. Style will always change: with the

product or service you are selling; with the timing of the message and with the medium you

are using. But important aspect is how you can engage your consumers to watch that Creative

challenge you took with the blend of style.

But most challenging part of creativity in advertising is finding the right balance between

defining a good creative message and executing it. No matter how creative your message, it

will not strike a chord with customers if it is not properly executed. There are many examples

of companies spending millions on their advertisement campaign but fail to properly execute

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them. The true craft is in identifying ways to interest consumers in what is being offered at

the same time justifiable creativity. A creative strategy can put you on the right course, but in

a world filled with distractions and clutter you must develop communications that capture

consumer attention and interest. The key of delivering effecting creative message is the

selling point in an interesting, non-contrived manner. Great advertising builds the brands and

some advertising sells brands. Creativity makes advertisement popular among the consumers

and motivates them to purchase advertisement specific product. The advertising message is

received well by the target audience for follow-up action.

How Creativity Works

The field of advertising has altered in many ways. Advertising now has become more

creative and more real. Creativity increases the brand value. There is enough evidence that

value for a brand will be formed through creativity. With Pointing on India’s phenomenal

growth, it has become even more important for ad agencies and their clients to gear up

together to meet challenges that come with such expansion. Creative ideas have no

boundaries, Ideas can strike anytime. A successful & great creative idea can give brands the

required thrust to explore new heights. It is very important that with creativity involved in

advertising it should not forget its basic agenda –of informing, convincing, and selling.

Creative advertising needs to intelligent, sharp, imaginative to the point and extremely

catchy. It must motive people to purchase advertisement product. The message and appeal

made should be able to make positive impact on the consumers. The creativity develops new

useful ideas which further fulfill the desired requirement. Creativity should focus the

attention of the customer on the product and he must feel the urge to have that product for

same benefit. This suggests that creative advertising should be able to create demand for the

product when it is introduced for the first time. Some of the distinct creative ads impacted

hard. The advertising strategies are changing but should not leave question mark on the

sustainability of creativity and also not to overlook consumer’s intelligence.

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FIGURE 3.10- CREATIVE APPEALS IN ADVERTISEMENT

Requisites of a Good Ad

A good advertisement is one that captures the attention of its target customers. Success

factors of all good ads in the Indian market are considered to have the following elements:

Children

Celebrities

Humour

Music

Emotions

Creative Advertising: Is There A Strong Need In The Market?

[Source: Online Journal of Communication and Media Technologies, Volume: 2 – Issue: 3 –

July – 2012]

Most brands in the same category deliver more or less the same functional benefits and

answer the same needs of the consumers. With so many products on the market having the

same function, the only way to position a product, service, or company differently from

anything else in the same category is through creative development in advertising.

Today traditional advertising is losing its sheen. The biggest problem with traditional media

is that consumers today have lots of choice for ad avoidance. The fragmentation is very high

and there is very less scope of customized message for all. The Indian consumer has changed

if we focus on this issue there is a lot more on the menu to choose from. Now the message

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unlike the past is no longer a one way process. But public opinion is far more mobilized, they

have immediate platform for expression.

The expert believes that the creativity in advertising could never exist in isolation without a

context. The success of final product completely depends on empathy and the relevance of

message it intends to deliver. The trigger for ideas and insights must necessarily come from

the environment.

The new millennium is decade old now, advertising, which is about creating demand, has

undergone a complete transformation. Many things have changed and many things have

stayed exactly the same in this industry. The media agencies have witnessed the tremendous

growth in skills set. If one critically analyse, “advertising reflects the mood of the times. The

simplistic inform-persuade-sell mode worked beautifully for a long time but once

communication became sophisticated, technology entered, there was a paradigm shift. Multi-

tasking became the order the day. It is not uncommon to see today’s kids on the mobile while

hitting the net, right? So in this age of YouTube, Twitter and Facebook, advertising content

has to keep pace. It can’t be as direct, naïve and simplistic as it once was. The new-age

consumer would dismiss it, straightaway.” For hard-core information and details about

products and services that are in the hi-ticket category, the internet provides it all; one doesn’t

have to completely depend on advertising. So the job of advertising today is to primarily push

the brand in an endearing fashion that triggers the recall factor, and examples discussed

indicates that ‘creativity’ stored better recall value

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.

RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem, it not only

takes the research methods but also consider the logic behind the methods. The study of

Research Methodology for developing the project gives us the necessary training in gathering

materials and arranging them, participation in the field work when required, and also

provides training in techniques for the collection of data appropriate to particular problems.

Main Objectives:

To understand the advertising strategies the major players in the paint industry use.

To analyze the effectiveness of each methods of advertising implemented by these

companies

To understand the recent trends in the advertising strategies

To find a scope of improvement

MARKETING RESEARCH

Marketing research is the systematic design collection, analysis and reporting of data findings

relevant to the specific marketing situation faced by the company. Marketing research

process, the research findings and inferences based on the data interpretations along with the

concept, methodology and limitations of the research are of much use to the management

while making strategic decisions about the company. In marketing research investigation the

first three steps namely formulation of the problem, specification of a research design and

collection of desired information tend to be closely interrelated. In Research Methodology,

we consider about the Research Design, Methods of Collection of Data, etc.

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RESEARCH DESIGN

A research design is a framework or blueprint for conducting the marketing research project.

It deals with the procedures necessary for obtaining the information needed to structure or

solve marketing research problems.

Research Design Used in this Project

The research design adopted in this report is Descriptive Research. The Descriptive Studies is

used in this project due to the fact that the descriptive studies attempt to obtain a complete

and accurate description of a situation, that is it covers the all phases required and provides

the ways to collect the data from various sources of information (sample design), ensure

minimum bias in the collection of data, hold costs to a minimum, and reduces the errors in

interpreting the data collected. In this report, we already have stated the problem, i.e. the

Advertising Strategies of the Paint Companies in India. Thus, this report basically deals with

describing the problem as to how, why, what affects this problem. Here, descriptive research

is used for the following purposes:

To understand the various advertising methods adopted by the paint companies

To analyse the recent trends in their advertising strategies

To analyse the effectiveness of each methods of advertising implemented by these

companies

To find a scope for improvement, if any.

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SOURCES & METHODS OF DATA COLLECTION

For the research purpose, the researcher does data collection. For successful efficient

marketing research investigation, the researcher must be familiar with the nature of the data

as well as the data collection method.

Sources of Data Collection

Sources of data collection state the various sources of data from where we collect the

information’s for the comparative analysis.

Primary Data

Primary data is a type of information that is obtained directly from first-hand sources by

means of surveys, observation or experimentation. It is data that has not been previously

published and is derived from a new or original research study and collected at the source

such as in marketing. Primary data is data that is original and has never been published

before. It is obtained through means of surveys, observation or experimentation and research.

Primary data is the raw information before the processing is done. It mainly consists of

numerical collections of raw information to be analysed and evaluated. The term primary data

may sometimes be used to refer to first-hand information.

Secondary Data

Secondary data is all the information collected for purposes other than the completion of a

research project and it’s used to gain initial insight into the research problem. It is classified

in terms of its source – either internal or external. Secondary data is any information that has

been collected or researched recently. Sources of secondary data include the internet,

libraries, museums, company reports, newspaper etc. The data collected is useful as it allows

the researcher to see the prevailing thoughts about his/her area of study. Secondary data is

any information collected by someone else other than it's user. It is data that has already been

collected and is readily available for use. Secondary data saves on time as compared to

primary data which has to be collected and analysed before use.

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Methods of Data Collection

Methods of data collection are the way through which the data is collected for the research

purposes. While deciding about the method of data collection to be used for the study, the

researcher should keep in mind two types of data viz., primary and secondary. The researcher

would have to decide sort of data he would to select for his study and accordingly he will

have to select one or the other method of data collection. The methods of collecting primary

and secondary data differ since primary data are to be originally collected, while in case of

secondary data the nature of data collection work is merely that of compilation.

The data collection method used in this report is Secondary Data.

The Secondary Data sources used in this report are mentioned in the diagram below:

FIGURE 4.1- SECONDARY DATA COLLECTION SOURCES

SECONDARY DATA INTERNAL SOURCES QUARTERLY SALES

REPORTS

WEBSITE VISIT

ANNUAL REPORTS

EXTERNAL SOURCES MARKETING AND TRADE JOURNALS

ACADEMIC PUBLICATIONS

COMPUTERISED DATABASES

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ADVERTISING STRATEGIES ADOPTED BY MAJOR PAINT COMPANIES IN

INDIA

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INTRODUCTION

As mentioned in the earlier sections of this report, the Indian Paint Industry is an industry that

is experiencing continuous change and also shifts in terms of the consumer preferences and

tastes. Factors such as rising urbanization, increasing level of disposable income,

modernization of urban houses, development of the rural part of this country and growth of

the assisting sectors such as infrastructure, real estate and automobile is opening up the paint

industry and is giving them enough scope for expansion. Also the consumers are nowadays

becoming more brand conscious which is making them shift towards the quality products

available in the market, thereby increasing the market of the organized players in the sector.

These above mentioned factors have also increased the competition prevalent within the

sector. Thus, major companies like Asian Paints, Berger Paints, Kansai Nerolac and ICI are

spending more and more on their marketing programs and advertisement campaigns to gain

the competitive advantage. The companies are trying to position themselves differently than

its competitors in the minds of its target customers. The use of celebrity endorsing their

products has also been one of the highlights of the recent trends in the advertising strategies

of these companies. Companies like Asian Paints, Berger Paints, Dulux and Kansai Nerolac

are also fighting for appointing top notch celebrities as their brand ambassadors so as to

increase their brand recall and also to increase their mind share among the consumers. The

Indian market, which is under transition, is also getting more and more competitive both in

terms of consumption and quality consciousness. A booming paints and varnish industry has

resulted innovate marketing techniques come into play. All major players like Asian Paints,

Nerolac Paints, Berger Paints and few other players are trying to strengthen their retailing

operations with different marketing strategies/techniques because the paints and varnish

industries come under the impulse category where factor like supply change management.

The width of distribution, advertisement, packing & communication make all the differences.

But before we go into details of the marketing strategies used by each of these companies, let

us focus at the consumer behaviour pattern of this industry.

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Consumer Buying Behaviour

The consumer buying behaviour of paints is shifting from unorganized to organize as people

prefer more branded products now than ever before. Thus, companies are formulating their

marketing strategies as per the changing consumer patterns. However, there are few major

factors that influence the buying behaviour of consumers, which is highlighted in the figure

below:

Cultural

Culture Social

Subculture

Social class

Reference

groups

Personal

Family

Roles and status

Age and life

Cycle stage

Occupation

Psychological

Motivation

Perception

Learning belief &

attitude

Buyer

TABLE 9- FACTORS INFLUENCING CONSUMER BEHAVIOR

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As far as the Paint Industry is concerned, cultural factors hardly play any role in the buying

behaviour of the consumers. However, the social factors such as reference groups, family,

social status plays a very significant role in this process. As paint is a product that is more

technical in nature, people seek suggestions from their reference groups which mostly consist

of the builders, agents and the painters who have a vast knowledge of the structure of paints.

Thus, they are termed as the influencers of this sector and they have a big role to play and

companies also implement effective sales promotion strategies to lure them towards their

products. Families also play a big role in the buying pattern as they are the ultimate users of

this product. It is normally found that the women in the household are the ultimate decider of

the colour to be used and the kind of paint to be used. Occupation and lifestyle also plays a

major role in the consumer behaviour as the purchase of costly paints depends on the income

and the lifestyle of the customers. And the increasing disposable income is also considered to

be one of the growth drivers of this sector. So, these factors indeed play a deterrent role in the

consumer buying behaviour.

According to a research conducted by many, it has been found out that almost half of the

respondents surveyed are not even aware of the names of all the paint companies, which

includes top companies like Asian Paints and Berger Paints. Thus, this opens the scope of

these companies to re-formulate their marketing strategies and create awareness among the

people about their respective brands. Companies in this sector are now focusing more on

advertising because it has been found out that almost 70% of the purchase is initiated from

the advertisement in T.V. or magazines. The increasing use of Internet has also enabled

consumers to know more about the companies and also about the type of products they offer.

As it is the case for other industries too, the consumers are also choosing companies that offer

them value-added services like a Paint Handbook by the Asian Paints or the 7th

Sense of

Colours by Berger Paints. Thus, offering value-added services along with quality products is

the core demand of the consumers in the paint sector.

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BRANDING STRATEGIES OF THE TOP FIVE PLAYERS

Asian Paints

Tagline/ Slogan Merawala Blue; Har Ghar Kuch Kehta Hai

Ki ;Ask Aparna

Celebrity Endorser Saif Ali Khan & Soha Ali Khan

USP India’s biggest brand with widest reach.

Segment Caters to all segments with brand Royale

aimed at premium segment and rest at mass

market.

Target Group Home-owners, industries-hotels, education,

healthcare, agro & manufacturing equipment

and automobile etc. infrastructure, govt.

buildings

Positioning A complete array of products to cater to

everyone.

Berger Paints

Tagline/ Slogan Paint Your Imagination

Celebrity Endorser Katrina Kaif

USP Innovation, Performance, Customer First,

Ethical Practice And Valuing People.

Segment Middle Class And Upper Class Segment

Target Group Home Owners, Professionals And Industry

Users

Positioning Fulfill Your Imagination Of Colours

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Kansai Nerolac

Tagline/ Slogan Low VOC And Lead Free Healthy Home

Paints ; Painting A Greener Tomorrow; Kuch

Change Kare Chalo Paint Kare

Celebrity Endorser Amitabh Bachchan, Shah Rukh Khan

USP One Stop Solution For Most Eco-Friendly

And Innovative Decorative Paints And

Industrial Coatings

Segment Middle And Upper Class Home-Owners;

Automotive Industry; General Purpose

Target Group Automobile Brands (2 & 4-Wheelers

Segment), Home-Owners, Engineering

Industries;

Positioning Low VOC And Lead Free Healthy Home

Paints And Market Leaders In Industrial

Coatings

AkzoNobel

Tagline/ Slogan Tomorrow’s Answers Today

Celebrity Endorser Farhan Akhtar, Shahid Kapoor, Boman Irani

USP An International Brand That Caters To Wide

Range Of Industries Ranging From

Infrastructure To Personal Care.

Segment Upper And Middle Class Strata Who Want

Good Quality Products With International

Brand.

Target Group Paint Category-Infrastructure (Homes And

Commercial Buildings) Industry, Industrial

Chemicals-Process Industries; Surface

Chemistry-Personal Care Industry.

Positioning A Global Brand Serving World Over In

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Paints & Protective Coatings, Industrial

Chemicals And Organic Formulations.

Jenson and Nicholson

Tagline/ Slogan When You See Colour Think Of Us

Celebrity Endorser

USP The Most Trusted Name In Paints, Leading

Technology; Benchmarking To Exceed

Industry Standards; Innovators In Paint

Industry

Segment Decorative Segment- Premium And Ultra-

Premium; Industrial Coatings

Target Group Architects, End-Consumers Mainly In

Premium Segment And Industries, Dealers,

Painters.

Positioning World-Class Technology; Innovators In

Paints Industry

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ADVERTISING METHODS

Television Commercials

Television Commercials form the largest part of the advertising campaign of any sector.

Television is now not a rarity as it was few decades back and almost every household has a

television. Thus, it gives enough opportunity to the companies to showcase their television

ads in front of a wide audience and at the same time. The major paint companies like Asian

Paints, Berger Paints and Kansai Nerolac have always taken due advantage of the television

medium. The increasing dominance of these three strong brands have somehow pushed

brands like Dulux, Jenson Nicholson out of the competition as far as the TVC branding is

concerned. However, very recently AkzoNobel’s Indian product Dulux has implemented an

effective branding strategy by appointing Shahid Kapoor and then Farhan Akhtar as its brand

ambassador.

The biggest drawback of television commercials is that it is very easy to be ignored.

Nowadays, with the advent of so many channels, it is very easy to surf channels and avoid the

ad campaigns which they find uninteresting. Another big drawback of this method of

advertising is that the company has to incur huge costs for displaying their ads and at a prime

slot. In spite of these disadvantages, companies are fighting hard to convey their messages

and offerings to their target group through television commercials.

If observed carefully, the television commercials of almost all the major paint companies

have a somewhat similar pattern. The television commercials focus on the following factors:

Humour

Children

Emotions

Environmental Friendliness

Cleanliness

Celebrity Involvement

The above mentioned factors are prevalent in the television commercials of every brand.

From Asian Paints to Nerolac to Berger, every company play around with these themes in

their commercials.

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Humour- Indian audiences have always been inclined towards advertisements that are

humorous or have a certain sense of humour. This can be seen in the television commercials

of almost every company operating in India irrespective of the industry it operates. The same

also goes with paint companies in India. From Berger Paints “Easy Clean” commercial to

Asian Paints’ “Free Happy Painting Guide” commercial to Jenson Nicholson’s first ad

involving Boman Irani, every company has touched the humorous element in its ads. Some of

the ads that carried humour as its main theme are shown in the images below:

BERGER EASY CLEAN COMMERCIAL

ASIAN PAINTS FREE HAPPY PAINTING GUIDE COMMERCIAL

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DULUX- APNE RANG CHALAKNE DO COMMERCIAL

JENSON NICHOLSON INSTACOLOR COMMERCIAL

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Children- Children have become an integral part of every ad campaign of every company. It

is often seen that the Indian audiences have always appreciated ads that had children as its

main protagonist. Children are often considered as God’s own creation in India. Thus,

involvements of children in the advertisement campaigns have always proved to be fruitful.

Every paint company operating in India has used children in their ad campaigns. Children

have generally formed the largest part of their ad campaigns. Some of the examples are given

in the images below:

BERGER PAINTS WEATHERCOAT COMMERCIAL

DULUX WEATHERSHIELD COMMERCIAL

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Emotions- Indians are considered to be people with high emotions and a country which gives

importance to the various relationships they are in. This is the reason why advertising

agencies of different companies take advantage of this fact and introduce an emotional theme

which can struck an instant chord among the consumers. Products of the upper-middle

segment are generally found to have an emotional angle to their ads. Examples of this can be

found in the images below:

BERGER PAINTS’ SILK COMMERCIAL

NEROLAC IMPRESSION ECO CLEAN COMMERCIAL

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Environmental Friendliness- Environment naturally becomes the most obvious factor in case

of the advertisement campaigns of the paint companies. Constant criticism of paint

companies regarding the excessive use of lead and other harmful elements in its products

have forced these companies to showcase eco-friendly products in their ad campaigns.

Almost all major companies are coming up with eco clean as their main theme. Berger Paints

has “Breathe Easy” as its eco-friendly product and also undergoes an initiative called Green

Horizon. The ad campaigns where environment has been the key focus are depicted in the

image below:

BERGER PAINTS “WEATHERCOAT ALL GUARD” COMMERCIAL

NEROLAC “NO VOC, NO GADBAD” COMMERCIAL

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Common Pattern in TVCs

As mentioned earlier, the television commercials of the major paint companies in India have

a similar pattern regarding the endorsement of their products. Celebrities are a major part of

their advertisement expenditure. Companies generally allow celebrities to endorse their

products which are meant for their premium segment. Emotions play a role in their interior

decorative segment, whereas children play a major role in their exterior decorative segment.

This is the same for all companies like Berger Paints, Asian Paints, Kansai Nerolac and

Dulux.

Premium Segment Products

Asian Paints’ Royale- Saif Ali Khan and Soha Ali Khan

Dulux Velvet Touch- Farhan Akhtar

Berger Paints’ Silk- Katrina Kaif

Kansai Nerolac Impressions- Shah Rukh Khan

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Print Ads

Print Ads have always been a significant method of advertisement. At a time when television

was not available to every household and was limited only to a few households, print ads

were the most effective method of advertising. The biggest advantage of print ads is that

through them, messages can be delivered to even the rural places of the country where

television is rare. The print industry have picked up after facing a downturn in the past

decade and is currently worth more that Rs. 240 billion and is growing at a CAGR of more

than 7%. In spite of the advancement of technology which is bringing new methods and

channels of advertising, companies have not sacrificed the use of print ads in their campaign.

It is the same in case of paint companies. In fact, it would be wise to say that the paint

companies have emphasised more on print ads than most of the other industries. The offering

of value-added services like providing the consumers with painting guide and colour guide

has allowed these companies to focus more on print ads. Berger Paints is one company

among all that has always focused on print ads. Print ads of Berger Paints are not only

available in English and Hindi, but are also available in local languages. This act of Berger

Paints is also now being followed by other companies like Kansai Nerolac and Asian Paints.

It is a known fact that the consumers all over the country are avoiding the traditional methods

of advertising and are accepting new and innovative methods of advertisement, but

companies believe that developing new and alternate channels of advertising does not

necessarily have to come up by sacrificing the traditional channels of advertising. New

channels have to be brought forward along the lines of the traditional ones. Many cities and

small towns of India are still affected by the traditional methods of print ads and television

when it comes to going to the next level of buying process.

The print ads can be in the form of the following:

Newspapers

Leaflets

Circulars

Handbook

The various print ads of different companies are highlighted in the images below.

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Berger Paints’ Print Ads

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Kansai Nerolac Print Ads

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Asian Paints’ Print Ads

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Dulux Print Ads

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Online Advertising

When it comes to the recent trends in the advertising methods, the most highlighting and

remarkable aspect is the tremendous growth of internet as a medium to advertise. Every

organization, big or small, is focusing now the most on the online marketing or the internet

marketing. Companies are tying up with online advertisement agencies not only to develop

their social media marketing strategies but also to develop their own official websites where

the target customers can gather useful information. Nowadays, the biggest factor that comes

in the process of purchasing any product or service is time. People normally find it useless to

travel to distant places and gather information about a particular product or service or an

organization. This is enabling the companies to implement effective online strategies so that

people can gather information and details sitting at their own homes. This also reduces the

time and also clears the confusion in the minds of the customers to a large extent.

In case of the paint companies in India, every company is developing their Facebook pages

and their own websites to stay in constant touch with their customers. They are also tying up

with agencies to do it for them. The paint handbook earlier mentioned in this report is also

available for download at their official website. Companies like Berger Paints, Asian Paints,

Jenson Nicholson have identified a new strategy to increase their brand recall by organizing

contests and awarding the winners and mentioning their names on their wall.

The online marketing in this report is divided into two sections- Social Media and Website

Social Media

Social Media is the future of marketing all over the world and the paint companies are

utilizing it to the fullest. The implementation of Berger Paints’ online marketing is itself a

case study. Berger Paints earlier had no source of online marketing except their Facebook

page which was not attractive enough. However, very recently they tied up with HGS

Interactive Solutions to redefine their social media strategy and create a brand experience for

online users through various campaigns that connect the users with the Berger Paints' brand

image. They came up with an overall digital media campaign idea of 'SEVENTH SENSE'

that connected well with the brand's tagline 'Paint Your Imagination'. This also included an

overall social media strategy for Berger Paints, with a focus on creating engagement, cross

marketing, reputation management, promotion of events, building brand connect and unifying

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the brand presence. They also created an interactive website for the brand in sync with the

overall thought.

BERGER PAINTS SOCIAL MEDIA MARKETING

SMO Creation

Berger Paints had no major social media presence, other than Facebook, so HGS

Interactive formulated a detailed social media strategy.

Facebook is the most relevant social network for Berger Paints. Being India's second

largest paints' company, Facebook makes it easier to target the desired mass audience

with our customized campaigns.

Engagement

Contests around festivals have been the key driver in engaging the audience. Over the

months we have had contests like Priyo Pujo, Berger Paints' SILK CAN Contest, etc.

Many more such contests are lined up in the coming days as a part of the 7th Sense

campaign.

Over 250 Years of Berger Paints' rich heritage has been established through the

Facebook timeline effectively.

Brand Monitoring

Relevant social media platforms were monitored. News, blogs, forums are

strategically key-worded in order identify people who are talking about the brand.

Negative comments are identified & are subsequently shared with the client along

with our recommendations to successfully maintain a positive brand image.

Good Numbers- Since August 2013, Berger Paints has increased its Facebook fans by nearly

10% through engaging posts & interactive campaigns.

Updates And Interactions- Berger Paints' Facebook page is updated daily with image posts

about colours, interior décor and festivals. It also focuses on personalized interactions.

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Promotions- Several successful campaigns and promotions held. For Durga Puja, two

Facebook contests were carried out inviting fans to participate. While one contest required

the fans to vote for their favourite Pandal, the other invited them to share their images along

with Berger Paints' product display to win exciting prizes.

Let us move further and do an independent study of Berger Paints activities on Facebook

through some images of their official Facebook page

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Asian Paints being the market leader is also not far behind in the social media marketing.

Asian Paints over the years have become an iconic advertising brand, especially after their

campaign “Har Ghar Kuch Kehta Hai”.

The following are the social media activities of Asian Paints

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It is clear that Asian Paints social presence is at best average. It lacks innovative thinking

even though its segment is colours which are a very broad opportunity. Asian paints seem to

be doing the basics but nothing that will engage their consumers in a more interactive and

brand centric manner. Paints also don’t only mean colour. They also mean décor. The page

hardly has any elements that touch upon the larger context of décor. One of the things a

consumer would look for was how he or she can use interesting colours to change the mood

and feel of their homes. In short a lot of gaps in the social media strategy for Asian paints and

a need to rethink.

Social Media Activities of Other Companies

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Website Marketing

The companies are also involved in developing their websites to provide the customers with a

better view and detailed information regarding their offerings.

The strategy of Berger Paints regarding its websites can be summed up as follows

WEBSITE

An interactive website was created around the central idea of '7th Sense' and the various

social media apps were also carried forward onto the website to maintain consistency.

REPUTATION MANAGEMENT- They reply to every query, comment and/or message

received, request feedback and solve customer queries/inconveniences across social media

channels, blogs and other online portals.

POSITIVE BRAND IMAGE- Through monitoring, brand's core values are reinstated on a

regular basis, resulting in a positive perception about the brand.

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Websites of Other Companies

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Celebrity Branding

Celebrity Branding is the most costly form of advertising as it requires appointing a well-

known celebrity as the brand ambassador of the company. Thus, it comes at a hefty price. But

this is also one of the most effective methods of communicating with the target customers,

especially in India. This is so because these celebrities are seen as demigod in India. People

aspire to be like them and probably take notice of whatever they speak or do. In this modern

age, people tend to ignore all commercials and advertisements while flipping through the

magazines and newspapers or viewing TV. But even then, the glamour of a celebrity seldom

goes unnoticed. Thus, celebrity endorsement in advertisement and its impact on the overall

brand is of great significance. In this process, the companies hire celebrities from a particular

field to feature in its advertisement campaigns. The promotional features and images of the

product are matched with the celebrity image, which tends to persuade a consumer to fix up

his choice from a variety of brands. Although this sounds pretty simple, but the design of

such campaigns and the subsequent success in achieving the desired result calls for an in-

depth understanding of the product, the brand objective, choice of a celebrity, associating the

celebrity with the brand, and a framework for measuring the effectiveness.

A brand should be cautious when employing celebrities to ensure promise, believability and

delivery of the intended effect. As the celebrities traverse from a mere commercial presence

to public welfare message endorsements, a whole new dimension is added to this process and

helps us in achieving a holistic view of the impact which celebrities generate in every sphere

and segment through their well-versed endorsements. Celebrities have also been in demand

having succeeded in being effective by rising above the clutter & grabbing the attention and

focus of the consumer. They also succeed in creating an aspiration in the minds of the

consumer to acquire what their favourite celebrity endorses.

The advantages of using a celebrity in endorsing your products can be summed up in the

following four “Qs”:

Quick Saliency

Quick Connect

Quick Shorthand for Brand Values

Quick Means of Brand Differentiation

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The companies in the Indian Paints sector have also identified this factor and are very

recently competing on the basis of celebrity endorsements. As mentioned earlier in this

report, celebrities in these companies are used to endorse their premium segment of products.

But they are very much helpful in increasing the brand value of their organization. Matching

the persona of the celebrity with the characteristics of the product is the most interesting and

challenging part of celebrity endorsements. This is the reason why Berger Paints appointed

Katrina Kaif as their brand ambassador for their premium product “Silk” as Silk is a product

that has been positioned in terms of elegance and Katrina Kaif is the perfect choice for that.

The same goes with Farhan Akhtar being appointed to endorse Dulux’s “Velvet Touch”. In

the commercials, the brand Velvet Touch is positioned as challenging and out of the box,

which goes in sync with Farhan Akhtar. However, the best example can be that of Asian

Paints choosing Saif Ali Khan and Soha Ali Khan to endorse their premium segment product

“Royale”. Royale Brand of Asian Paints signifies the royal look and this goes perfectly with

the likes of Saif and Soha, who are in fact from a royal family. Nerolac is a brand which

never hesitated to invest in promotions and brand building. The brand has a really

commendable awareness which was created through heavy brand promotions. The jingle "

Jab Khar Ki Raunak Badhana ho, Deewaroan ko jab sajana ho , Nerolac , Nerolac " still

lingers in the memory of the public. Such catchy jingles and campaigns lifted the brand to

double digits market share levels but could not bridge the gap with the market leader. It was

in 2003 , that the brand made a huge plunge in celebrity driven promotion by roping in

Amitabh Bachchan. The endorsement from Big B was a big news at that point in time. One of

the major positioning moves for Nerolac also happened at that time. Nerolac was originally

positioned on a beauty-enhancing proposition. The brand talked about decoration and in a

plain speaking style successfully associated itself with that proposition otherwise that jingle

could not have survived this long. However, the brand very recently has repositioned itself. In

tune with the global positioning of its parent Kansai Paints, Nerolac also adopted the

positioning based on environment -friendly attribute. The new campaign positions Nerolac as

a healthy paint with no lead content and Eco-clean property. Shah Rukh sells this idea

through the TVCs.

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CELEBRITY ENDORSERS

TABLE 10

Asian Paints Saif Ali Khan & Soha Ali Khan

Berger Paints Katrina Kaif

Kansai Nerolac Shah Rukh Khan

Dulux Farhan Akhtar

Pictorial Representation

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CONCLUSION

Advertising is the most effective and the most sought-after way of communication for any

company operating in any industry. The whole purpose of advertising is to sell products or

ideas. Without a proper advertising campaign, a company cannot succeed. It has been

highlighted in the report that organizations are constantly finding out new methods of

advertising. As the world is changing, people are also adapting well to the new channels of

communication.

The Paint Industry is one such industry that is seeing dramatic changes in its operations,

demand and supply and also its advertising strategies. The marketing communications

strategies of the major players in the industry are the reason why the consumers have decided

to shift from low-quality paint to the branded ones. And this has led to a tough competition

among the major players. The company in this sector mainly focus on four methods of

advertising- Television Commercials, Print Advertisement, Online Marketing & Celebrity

Branding. As evident from the report, television commercial is one aspect of advertising

which is at its developed stage in this sector. But it is seen that companies are somehow

losing their sheen over print advertisements. But the advent of developing new methods of

advertising has also struck the paint companies as their main focus is Online Marketing,

which the companies are desperately trying to capture. Companies are ambitiously

developing their social media strategies as evident from the report. Same is the case with

Celebrity Endorsements, which is letting them incur huge costs to create a brand recall

among the customers.

As far as companies are concerned, Jenson Nicholson is lagging behind in every aspect than

its competitors. Asian Paints being the market leader is probably the strongest in terms of

their advertising strategy. But Berger Paints is slowly but steadily catching up with both

Asian Paints and Kansai Nerolac in terms of marketing strategy as they have recently come

up with some great innovative strategies that is going to provide them with the optimum

results.

Thus, to conclude, it can be said that companies should focus on every method of advertising,

more on print ads. However, it can be said without a doubt that online advertising is the

future for this industry.

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BIBLIOGRAPHY

1. Belch, George E. & Belch, Michael A.(2011), “Advertising and Promotion- An

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Communication and Media Technologies, Vol. 2, Issue 3.

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4. Brierley, S. (1995), “The Advertising Handbook. London: Routledge”

5. Jain, Kokil (2010), “Celebrity Endorsements and Brand Building”.

6. Witt Austin, Gary (2011), “How You Create Advertising that Sells”, Halsteade

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