Barger Paint Bangladesh Limited Case Study

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Letter of Transmittal December, 27 th 2011 To Mahenoor Osman Lecturer of ULAB School of Business University of Liberal Arts Bangladesh (ULAB) Subject: A report on Berger Paint Bangladesh LimitedDear Sir, We are in a course under in guidance and teaching, which is Business communication. With your great ability to teach in this course we are enjoying it and it is a partial requirement of this course to present a research work. According to your teaching and course requirements we have chosen a research work on “Berger Paint Bangladesh LimitedThe report attempts to describe our observation, learning & experience gained during the two months research experience where my major research was identify current position, competitors, products etc. We would like to thank you for giving us the opportunity to interact with the real world and find out what is really happening to enrich our practical knowledge. A Paint for Berger Paint Bangladesh

Transcript of Barger Paint Bangladesh Limited Case Study

Berger Paint Bangladesh LimitedA Paint for Every NeedLetter of Transmittal

December, 27th 2011

ToMahenoor OsmanLecturer of ULAB School of BusinessUniversity of Liberal Arts Bangladesh (ULAB)

Subject: A report on Berger Paint Bangladesh Limited

Dear Sir,

We are in a course under in guidance and teaching, which is Business communication. With your great ability to teach in this course we are enjoying it and it is a partial requirement of this course to present a research work. According to your teaching and course requirements we have chosen a research work on Berger Paint Bangladesh Limited

The report attempts to describe our observation, learning & experience gained during the two months research experience where my major research was identify current position, competitors, products etc.

We would like to thank you for giving us the opportunity to interact with the real world and find out what is really happening to enrich our practical knowledge.

Sincerely

MD.Samsul Hoque 102011011Dilara Afroj 102011013Sanjida Akter Tilma 102011025

Declaration

We undertake that all materials presented for report is our own work and has not been written for others, in whole or in part, by any other person(s). We also undertake that any quotation or paraphrase from the published or unpublished work of another person has been duly acknowledged in the work, which we present for report.

.. MD.Samsul Hoque Dilara Afroj Sanjida Akter Tilma 102011011 102011013 102011025

ULAB School of business

Acknowledgement

First of all, we like to express our gratitude to Almighty Allah for His blessings that help us to complete this report. We are very much grateful to Mahenoor Osman, our course teacher to approve this real life project on Berger Paint Bangladesh Limited as a requirement of this course. She always guided us to finish this task successfully. Without her help it was quite impossible to finish this project properly in time.

We would also like to thank Mr. Tanvir Ahmad, Assistant Marketing Manager, Berger Paints Bangladesh Ltd., for giving us time in his busy schedule, for providing us Information that was needed to complete the report, we also like to thank Mr. Ershad Jahan,CEO of Dimention who help us to interview the marketing manager of Berger paint Bangladesh Ltd. .

At all we are greatly thanking to the persons whose enrich books, journals and working papers have provided a guideline to us in preparing this report. This report would not be possible without the cooperation of each group members. Finally, we would like to thank all others whose strong support makes us able to complete this report and We are also owed to each person who is bothered inside and outside in carrying out this report.

Table of ContentsPage NO.1.0 Introduction to the Study Rationale of the Study Statement of the Problems. Scope & Delimitation of the study Objective of the report Broad Objectives Specific Objective Statistical Tools & Techniques Acronyms 2.0 Overview of the Organization Historical Background Nature of the Business

The Company Profile

3.0 Current Marketing Situation Products of BPBL Competitors Distribution Network and Channel4.0 SWOT Analysis Mission Vision Performance indicator5.0 Marketing Strategy6.0 Evaluation of the Strategies Methodology of consumer and retailer interview Choice of Methodology Sampling Method Data Sources &Data Collection: Research approach Contact Method Data Analysis Questionnaire Design & Research7.0 Analysis and Interpretation of Data Popular Adhesive & Paint at Badda & Mirpur area Uses Type Paint Department of Customers Type Most uses adhesive at Badda & Mirpur area Causes of Popularity Important of Sales Service Important of Credit Payment System Important Of Advertising Attention towards Sales promotion Price factor Increase in price can influence Brand loyalty from the quality side Essentiality of Quality Distribution efficiency 8.0 Findings.9.0 Recommendation.10.0 Conclusion.11.0 Bibliography& References.

Executive SummarySatisfying customers are the only way to stay competitive in today's marketplace. The balancing act between what customers want and what the company can provide must be optimized in order to maximize companys long-term profits. Berger Paints has done numerous researches to understand the level of customer satisfaction. They are already in a good position in the consumers mind but understanding the customers satisfaction level, will help the company to exceed the present level of customer satisfaction. However, no such research has been done to understand the level of customer satisfaction level of Berger paint and Adhesive user.This study investigates the level of customer satisfaction of Berger paint and Adhesive users. On assessing the level of customer satisfaction, what marketing tools, like promotional efforts and other marketing efforts, are necessary to improve the customer satisfaction level will be given as recommendation by the researcher.This study is based on primary data, as no such previous research has been done to understand the level of customer satisfaction of Berger paint and Adhesive users. The nature of this study was a qualitative explorative research, and information was gathered through extensive one-to-one interviews with respondents. We covered the geographical base Mirpur and Badda area, and samples were selected on a non-probabilistic quota sampling method.Upon completion of the research analysis, we understood the level of customer satisfaction of the customers. The level of satisfaction varied from 60% to 100%. All respondents were highly satisfied with the product quality of Berger Color Bank. However, they did show concern with the services. They were unhappy with the unavailability of shade cards at the dealers outlets. We also found that the dealers have tremendous effect on customers. If the dealers are happy, then they would give all positive efforts in making the customers more satisfied. The dealers were unhappy with the financial assistance provided by Berger paint and Adhesive.

Professionals like architects and developers also play a major role in influencing customers. The research analysis suggests that the architects and developers would be happier if Berger could maintain proper liaison with them. Painters are happy with the product quality and coverage of Berger paint and adhesive.

1.0 Introduction to the Study:1.1 Rationale of the Study: This report has been prepared as a part of the Marketing term paper which is an integral part of the USB department of University of Liberal Arts Bangladesh (ULAB).The main purpose of this term paper is to bring out the deviation between practical knowledge and theoretical knowledge. As the students one can blend the theoretical knowledge with practical work experience. Theoretical knowledge is not enough for a student. There is a gap between theoretical knowledge and practical field. We are actually proposing the study to know about the Badda & Mirpur market and also the competition level to the Adhesive industry on that place. At Badda & Mirpur area in Adhesive & paint industry what customers actually want, to whom (actually which Glue & paint) they are giving priority. As the researchers, we think that it is very much important to know about all of these thinks. After getting all of the information the market analyst must know what the position of each is and individual adhesive and paint industry. It is totally a field study and there is a chance to gain huge practical knowledge.

1.2 Statement of the Problems:Problem statement is to identify current market scenario and new potential area for Berger paint Bangladesh which include followings-1. Number of new Furniture shop created.1. Number of owner who continue their Furniture Business.1. Carpenter who play an important role to selecting adhesive.1. Painter and also the customer who play an important role to selecting paint.

1.3 Scope & Delimitation of the study The industry part consists of a brief analysis of the Adhesive & paint industry, the industry where the organization is operating. Though our range was Badda & Mirpur areas, we have visited all of the Badda & Mirpur areas Berger dealers and Carpenters according to that I have clear idea with it. The report will cover the overall scenario of Badda & Mirpur area. What is the market share of this industry on that, what is the condition of this industry right now? BPBL is a large multinational paint and Adhesive company; therefore it is not possible to find out the true picture within a short period. To prepare the report we may be to face some problems & limitations. Those limitations are unavoidable for us. That may causes reduction the quality of our report.Sometimes the Dealers of Berger as well as other stores, Furniture workshop and shop people dont want to communicate. They always use to talk why need that information because some of that is user of other Adhesive products. So they always scared that we may pass some information. 1.4 OBJECTIVE OF THE REPORT1.4.1 Broad Objectives:1. To relate the marketing theories with the actual business world practice.1. To fulfill the requirement of this term paper.1. To analysis the policies, techniques.

1.4.2 Specific Objective:1. To find out the total market share of BPBL at Badda & Mirpur area for Adhesive & paint Business.1. To analyze the customers type on the basis of purchase.1. To find out the brand preference.1. To find out the contribution in the market share of the dealers from Badda & Mirpur area, the dealers from outside of Badda & Mirpur area.1. SWOT analysis of BPBL.1.5 Statistical Tools & Techniques

Some tables and diagrams were used to express information in concise form.

1.6 Acronyms

BPBL Berger Paint Bangladesh LimitedKPI- Key Performance IndicatorCEO- Chief Executive Officer

2.0 Overview of the Organization: Historical Background:Berger is one of the oldest names in paint industry tracing back to 1760.Lewis Berger, a Germen national founded & pigment making business in England. Lewis Berger & sons Limited grew rapidly with a strong reputation for innovation and entrepreneurship culminating in perfecting the process of making Prussian blue a deep blue dye, a color widely used for many European armies uniform. Production of dyes & pigment evolved into production of paints &coatings, which till today remains the core business of Berger. Berger grew rapidly by establishing branches the world over and through merging with other leading paint, coating & adhesive Business.

Berger paints is operating in Bangladesh since 1950s as a Berger Pakistan. The major Milestones of Berger Paints in Bangladesh are Given Below.

YearsMajor Milestones

1950Started operation in Bangladesh by importing Paint from Berger UK

1970Establishment Of Chittagong Factory

1980Named as Berger Paints (BD) Ltd. from Jenson & Nicholson (J&N)

1991BMRE in Chittagong Factory

1995Establishment of Double Tight Can Manufacturing Plant

1999Establishment of Most Modern Sate-of-the-Art Production Plant in Dhaka

2002Construction of own building for the Corporate office in Dhaka

2004Establishment of Power Coating Plant

2007Launching the Adhesive Business

2010Got the Third place as Adhesive Business

Table: Major Milestone of BPBL(Source: BPBL Website)With the passage of time Berger has unfold its wings into all kinds of paint solution be it Architectural paints or Industrial coatings, Marine paints or Power coatings Berger or Adhesive Products has it all.

NATURE OF THE BUSINESS:Berger paint Bangladesh is one of the leading Multinational Company in the paint Industry. It is a Multinational company which continues their operation more than 46 countries. In most of the countries this company is leading from the front. But this company is mostly strong in European market. Berger has evolved to become the leading paint solutions provider in this country and has diversified into every sphere of the industry-from Decorative Paints to Industrial, Marine, Powder Coatings and Adhesive Products.Berger Paint Bangladesh Ltd. has its own production plant and store house and own distribution channel. Berger Paints Bangladesh Ltd. at a glance:

Own Corporate Office Located in Dhaka 2 Factories at Dhaka and Chittagong 7 Strategically located Sales Offices throughout the Whole country. The locations of the Sales Offices are shown in a map attached in the annexure A wide distribution channel reaches the whole country with a network of almost 1000 dealers Major Market Share holder.

University of Liberal Arts Bangladesh

The Company Profile:SubjectDescriptionNameBerger Paint Bangladesh Limited

Logo

ThemeTrusted WorldwideOriginUnited KingdomFounderLewis BergerChairmanMr. Gerald K AdamsMDRupali ChowdhuryPublic Limited CompanyStatus (Enlisted in both Dhaka and Chittagong Stock Exchange)43/3, Chatteswari Road Chittagong-4000, Bangladesh.Registered Office Email: [email protected], Web: http//www.bergerbd.comCorporate Headquarter:Berger House Plot 8, Road.2 Uttara Sector 3, Uttara Model TownEmail: [email protected] Web: http//www.bergerbd.comFactory: Dhaka Factory # Nabinagar, Chittagong Factory 27 D FIDC Road, Kalurghat, Chittagong

Plant1. Powder coating Plant-Nabinagar, Saver

2.Emulsion Plant#Nabinagar,Savar

Home Decors

Sales Office

1.Banani,Dhaka

2.Dhanmondi27,Dhaka

3.Uttar,Dhaka

Email:[email protected]

1.Dhaka-272 Tejgaon industrial area,Dhaka-1208

2.Chittagong#43/3,Chatteswari road

3.Syhlet-H#32 Block-Shahjalal Upashahar

4.Khulna-2 KDA Approach Road,Sonadanga

5.Bogra-31,Piari Sankar,Katnar Para

6.Comilla-576,Laksham road

7.Rajshahi-1458,Ramchandrapur Ghoramara,Boalia

8.Mymensingh

Subsidiari Company: Jenson &Nicholson (Bangladesh) Limited 70, East Nasirabad I/A Baizid Bostami RoadDate of Incorporation 6th July 1973Commercial Production 1973Business Line Manufacturing and Marketing of High Quality Paint and Nature of Business the Principal activities of the company throughout the year continued to be manufacturing and marketing of liquid and Activities :no liquid paints & varnishes and coating.Position in1st the IndustryPercentage50% of Market ShareSpecial Achievement: ISO 9001: 2000

Focus of BPBLBerger Paints Bangladesh Limited focuses on the following things: Commitment to achieve total customer satisfaction. Commitment to project the company as an ethical and socially responsible one. Commitment to continue as the market leader through consistent sales growth, increasing productivity and developing new products befitting customer needs. Ensuring continuous improvement in operations through utilization of highly professionals and dedicated team, proper process management and participation of the stakeholders. Setting measurable targets at appropriate stages and continuously monitoring them.

Organizational Structure:Like all other manufacturing organizations, BPBL has a conventional organizational structure. Generally six Board Meetings are called in BPBL during a year where Chairman of the Board of Directors presided over the meetings. In BPBL several committees like- the Audit Committee, Risk Committee, Remuneration Committee, Executive Committee and theActivities:no liquid paints & varnishes and coating.Position in1st the IndustryPercentage50% of Market ShareSpecialISO 9001: 2000 Achievement

3. Currant Marketing Situation

3.1 Products of BPBL:

Adhesive Business:Power Bond- Synthetic Resin Adhesive-SHBerger Paints Bangladesh Ltd. has introduced Power Bond, Synthetic Resin Adhesive-SH. Power Bond is a premier quality water based adhesive that gives the highest bonding strength suitable for furniture industries, this product is lacquer proof and resistant to heat and water, having high coverage which will add value to the related industries. Power Bond is available at the dealers. Outlets of Berger and in other hardware stores. The product was launched in December 2007 and has already been appreciated by the end users for its bonding performance and high value for money.

Power Bond SRPower Bond SR is a solvent based adhesive that guarantees maximum bonding capacity with versatile uses. It can be used for furniture using Formica, fixing upholstery, joining Formica to particle boards, joining foams nine sofas, fixing tubes, tires and even leather.

Berger grew rapidly by establishing branches all over the world and over and through merging with other leading paint, coating & adhesive Business.

Decorative:Berger offers huge range of color and product varieties for decorative paints. It is the pioneer for introducing high quality color bank products and top coat finishes decorative paints inBangladesh. It also provides primers, undercoats, thinners and other decorative products. The major decorative products of BPBL are listed in the table:

Table 3.2: Major decorative products of BPBL (Source: BPBL Directory & Website)

Decorative Paints

Top Coat FinishesRobbialac Synthetic Enamel (RSE)

Robbialac Acrylic Plastic Emulsion (APE)

Robbialac Synthetic Polyvinyl Distemper (SPD)

Weather coat Smooth

Luxury Silk Emulsion

Jhilik Synthetic Enamel

Durocem

Wood keeper

Tartaruga Textured Coating

Robbialac Easy Clean Berger

Illusions

Color Bank ProductsRobbialac Plastic Emuls Classic

Robbialac Synthetic Enamel Gold

Luxury Silk Splendour

Weathercoat Smooth Classic

Robbialac SPD Super

Wood Keeper Finesse

Other productsRobbialac Exterior Wall Putty

Robbialac Damp Stop

Flexible Roofing Compound

Silicone Water Repellent

Robbialac Synthetic Clear Varnish

Robbialac Wall Putty

Primers/ThinnersRobbialac Red Lead Primer

Robbialac Plastron Primer Sealer

Robbialac Water Sealer

Robbialac T-6 Thinner

Industrial:For Industrial purpose Berger offers industrial finishes, high protective coatings, and industrialThese paints are long lasting and prepared in a special method to protect industrialEquipments, structures from heat, swatting and bulging. BPBL provides the following products for its industrial customers.

Table: Major industrial products(Source: BPBL Directory & Website)

Industrial Paints

Industrial Finishes

Berger Suprakoat Powder Coating

Jensolin Synthetic Enamel

Jensolin Aluminium Paint

Jensolin Stoving Enamel

Jensolin Chlororubbrer Paints

Jensolin Other Product

Jensolin Road Marking Paint

Jensolin Swimming Pool Paint

Jensolin Tennis Court Paint

Jensolin Cycle Paints

Jensolin Insulating Varnish

Jensolin Paint Remover

Jensolin Rust Remover

Thermoline

High Protective Coatings

Jensolin Epoxies

Jensolin Polyurethanes

Industrial Primers

Jensolin Red Oxide Primer

Jensolin Red Lead Primer

Jensolin Zinc Phosphate Primer

Jensolin Zinc Chromate Primer

Jensolin Wash Primer

Marine:Berger produces entirely different top coat finishes, special coatings, primers and thinners forShips, boats and other marine vessels these paints are exclusively produced to protect marine vessels from sea water, fungus and fragility. Some marine products of Berger are

Table Major marine products of BPBL (Source: BPBL Directory/ Website)

Marine

Top Coat FinishesSeaborne High Gloss Enamel

Seaborne Aluminium Paint

Seaborne Boot Topping

Seaborne Topside

Seaborne Deck

Seaborne Funnel Heat Resisting

Seaborne Bituminous Black

Seaborne Berger Marine Enamel

Special CoatingsSeaborne Epoxy Coatings

Seaborne Chlororubber Antifouling

PrimersSeaborne Red Lead Primer

Seaborne Zinc Chromate Primer

Seaborne Zinc Phosphate Primer

Seaborne Metallic Coatings Berger

Marine Red Lead Primer Berger

Berger Marine Antico Primer

ThinnersJensolin T-1 Thinner

T-2 Thinner

T-3 Thinner

T-4 Thinner

T-7 Thinner

T-8 Thinner

3.2 Competitors

BPBL have lots of competitors like:- BPBL Elite Asian Pailac Roxy Moon Star Sagar paint

With the help of the pie chart, we can see the BPBL and other competitor of BPBL market share of Mirpur and Badda market.

Figure 1: Compititors and BPBL market shareAnd in Adhesive business competitors are: Pedilite (Fevicol) Fast Others local company

With the help of the pie chart, we can see the market share of BPBL and other competitor of BPBL and their market share of Mirpur and Badda market.

Figure 2: Compititors and Berger (power band) market share

3.3 Distribution Network and Channel:

With the strong distribution network, Berger has reached almost every corner of Bangladesh. The nationwide dealer network, supported by seven (7) sales depots strategically located at Dhaka., Chittagong, Rajshahi, Khulna, Bogra, Sylhet and Comilla has enabled them to strategically cater to all parts of the country. Berger divides the entire country into 13 zones or territories to serve its dealers and customers. Among these zones seven are supervised from Dhaka sales office suited at 272, Tejgaon Industrial Area, Dhaka - 1208. Rests of the tern stories are monitored from each divisional sales office.

BPBL maintains very short and effective channel length to distribute its products to the customers. It promotes direct selling approach and manages only dealers and projects. Objective of such approach is to gain more control over its dealers and customers and brings close monitoring and evaluating facilities to the top management of the organization.

Sylhet Depot.Chittagong FactoryMymensingh Depot.Bogra Depot.Khulna Depot.Dhaka Depot.

Dhaka Factory

Rajshahi Depot.

Dealer

Chittagong Depot.Commila Depot.

End Customer

Production Department:This department looks after total factory operations through a number of sections, namely,

Power & FuelProduction PlanningAdministrationDeliveryProduction DepartmentProduction Planning, different sections for Production Process, Administration, Stores & Go down, Power & Fuel, Maintenance, Delivery, etc. Production planning section prepares the plan of production that includes the amounts and specification of the product. They have to maintain tight schedule in production and delivery.

MaintenanceProduction ProcessStores And Godown

Figure: Various Sections of Production Department. (Source: BPBL Directory & DSO) Sales Department This department is headed by GM- Mkt., Sales & Distribution who is assisted by GSM. 7 strategic depots manage sales activities all over the country. 7 depots are

a. Dhaka,b. Chittagong,c. Sylhet,d. Bogra,e. Rajshahi,f. Khulna andg. Comilla.

Activities of all seven strategic depots are monitored and controlled by the Sales Office situated in Corporate Office. Time to time sales review meeting with the representatives of all sales depots is conducted to evaluate the current sales position of the Co., discuss the reasons for current success or failure, determine the next action plans to strengthen current position of the Co., kinds of incentives offered to boost up sales and etc.

Major Functions of Sales Department:To prepare National Sales Budget detailing sales value, volume & growth and translates it into monthly and half-yearly budget.To express the national sales budget in terms of Sales Area, Zone, Product '& Color ShadeTo develop sales strategies to achieve sales budget to respond to complains of customers efficiently and take necessary action.For arriving a favorable solution to the problem To maintain relationship with existing dealers of the Co. and develop new dealers. To suggest marketing department to introduce incentive programs to enhance sales volume. To scan current market condition including competitors' current and probable future action pattern, customers' preference, dealers' business situation and etc. To monitor sales position of the Co. and initiate necessary actions if any deviation exists. To arrange sales review meeting timely basis. To ensure smooth distribution of paints. To train the sales personnel to handle customers efficiently.

4. SWOT Analysis

To formulate the marketing & overall strategy of Berger paints Bangladesh limited,(BPBL) the management 1st analyze their mission and objective and then use the steps of SWOT analysis to find out the strength, weakness, opportunities and threats and then find out the main strategies for the company.

Mission:The Company's mission is to increase its turnover by 100% within the next five years by being socially committed ethical Company.

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

PERFORMANCE INDICATOR:A Performance Indicator or Key Performance Indicator (KPI) is an industry jargon term for a type of Measure of Performance. KPIs are commonly used by an organization to evaluate its success or the success of a particular activity in which it is engaged. Sometimes success is defined in terms of making progress toward strategic goals, but often, success is simply the repeated achievement of some level of operational goal.

Overall Performance:The Sales achieved during the financial year ended 31' December 2005 was Taka 2,121.12 million as but in 2009 it was 5333.01 million which Cleary showed that how fast the company sales increase. Every year their sales increase. Side by side their profit after Tax was 400.66million in 2008, in 2009 it is 579.68 million, in 2010 and 2011 taka 6,204,108 & 7,128,035 which is which indicate the an extraordinary performance of the company.The Company improved its overall market share due to strong brand pull from consumers, continued support from the distribution network, as well as projects. The growth in the building construction results a growth in the use of Exterior Emulsion paint, as opposed to the conventional cement paint. Moreover the innovative marketing strategies during 2006 i.e., Berger Home Decor- the one stop paint/painting solution together with color consultancy, the launch of "Berger Illusions" range of design coatings, as well as "Robbialac Easy Clean" Emulsion paint have provided the consumers with unique coatings resulting in improvement in life style.Performances over the last Five years and value added statement of Berger Paints Bangladesh Ltd have shown below with tables:

Table 1: Performances of BPBL over 2009 to 2005.(Taka in `000)(Source: Annual Report 2009-2010)

Particulars20092008200720062005

Turnover5333002449920835277592,872,4472,121,116

Value Added Tax (VAT)737098617431480087389.783274,084

Turnover(Net Off VAT)4595904388177530476722,482,6641,847,032

Gross Profit188106313499661138528943,586729,092

Profit Before Tax779772540867466557434,297316,020

Profit After Tax579681400660339851313,877227,120

Figure 3: Turnover of BPBL for the 2005 to 2009 year

Figure 4: Trend of Profit after tax Of BPBL

This can easily drawn that over the year ranging from 2005 to 2009 sales turnover and profit after tax is shapely raise over the year

According to the study of the organization Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis of BPBL is described below:

Table: SWOT Analysis of BPBL

S Sound profitability and growth with good internal Capital generation. Dedicated efforts of experienced and efficient management Team. Favorable access to distribution networks. High quality environmental pollution free products and huge range of products and color Varieties. Most updated techno-based production system. Company reputation and goodwill

W Lack of good communication with the painter, owner and developer company key personnel. Lack of motivation to the key painter. Lack of adequate marketing and promotional efforts. Lack of full scale automation

O Scope of market penetration through diversified products and increasing sales. Online selling and automation of transaction processes. Government's policy of encouraging infrastructure development and private sector development. Adding more value in products and services than the competitors. High industry growth in the real estate sector accelerates the demand for paints.

TThe new arrival of multinational and local companies in the paint industry.Increasing prices of the raw materials and global demand/supply factors and devaluation of local currency.National and global political unrest.Inflationary economic conditions.

5. Marketing Strategy

Marketing strategies of Berger depends on1. Segmentation of products.2. Target market selection.3. Positioning their product.

1. Segmentation strategies of BergerBefore segmentation their product Berger segments its business through the year. Generally the summer and winter is the peak season not only for Berger but also every paint producer. October to June is peak season and July to September is the lean season for the paint industry in Bangladesh, which is related to weather conditions.2. Target market selection StrategiesBerger has chosen target markets to co-operate in the interest of overall company in a socially responsible manner. The total size of the paint industry in Bangladesh is estimated at taka 4.29-4.44billion in 2005. The paint industry can be divided into three segmentsa) Decorative.b) Industrial.C) marine.The decorative segments of the market accounts for a whopping 83.42% of the total industry, whereas industrial, marine segments contribute 12.17%, and 4.41%, respectively.The major focus of the companies, operating in the industry, is towards decorative segment. Only a few of the companies have their product offerings in industrial and marine segment. All the competitors are concentrating their best efforts for carving out their share of the pie in the decorative segment of the industry. The enamel segment accounts for around 50% of the decorative paint market, by value, and approximately 40% by volume.Berger market share in the synthetic enamel category increasing gradually. As this product is accountable for the major share of the paint market, its continued success will result in significant growth of the overall market share of the company. This will also enable Berger to battle its competitors by weakening then in such a strategically important segment.

3. Positioning strategiesBerger designs the companys offerings and image to occupy distinctive place in the mind of the target market. Product differentiationProduct differentiation on the basis of size, shape, color shade, convenient size of their paint container, plastic container and so on. Its also maintain its better quality product, finest color shade, durable & long lasting paint, and they are also responsible to the customer wants and satisfaction. Service differentiationEvery company in the service market differentiates their service to be the best service company and capturing most of the market share. Berger differentiates its service comparing to the other competitors. These are Ordering ease Customer consulting & delivery ServiceCurrent Marketing StrategyBerger Paints Bangladesh Ltd marketing manager told us they believes in the practice of Market-Oriented Strategic Planning, developing and maintaining a viable fit between the organization's objectives, skills and resources. The aim of such approach is to build long-term partnerships with the customers/consumers. And with their support, Berger aims to maximize the potential of its business-through a combination of enhanced quality of product, service, creative marketing, competitive pricing and cost efficiency. The strategic planning of BPBL involves repeated cycles of corporate and business planning as well as launching new product and marketing offerings.

6. Evaluation of the Strategies: Methodology of consumer and retailer interview:Marketing research methodology is the systematic gathering, recording, and analysis of data about issues relating to marketing products and services. The goal of marketing research methodology is to identify and assess how changing elements of the marketing mix impacts customer behavior. Following methodology pursued for this report is as given below:We have done this research with exploratory research. Usually exploratory research is conducted with the expectations that subsequent research will be required to provide conclusive evidence.

Choice of Methodology: Decision making is the process of developing and deciding among alternative ways of resolving a problem. For our report we choose random probability sampling method because it is very difficult to find out every specific and potential customer for us.

Sampling Method: we chose random sampling method for our research or survey because in this case we cannot identify our every potential customer.

Data Sources &Data Collection: In this report, both types of data have been used for analysis-

Qualitative data Quantitative dataQualitative data - generally used for exploratory purposes - small number of respondents - not generalize, to the whole population - statistical significance and confidence not calculated - examples include in-depth interviewsQuantitative data - generally used to draw conclusions - tests a specific hypothesis - uses random sampling techniques so as to infer from the sample to the population - involves a large number of respondents - examples include surveys and questionnaires.

Also we chose Survey with structure questioner to collect data, because our objective is to find out consumers behavior of using BP, competitors and also know about the current market situation of Berger paint and Power band adhesive at Badda and Mirpur area. Thats why survey technique has been chosen for gathering the data.

Research approach: On this case our approach is go to the market and collect the data and also get an experience how to behave with customer and knows about the activities of a multinational company. Knows their different types of marketing activities we chose Random Sampling Process and then go with question and Analysis the situation.

Contact Method: For survey we usually go to market and collect the information for our report and knowing about their demand and based on Information Company should be take some step.

Data Analysis: Standard editing and coding procedures are utilized. Simple tabulation and cross-tabulations will be utilized to analyze the data. We use Excel software to analyze our data and make our research report.

Questionnaire Design & Research: On our Questionnaire we include some fixed alternative questions and some scale questions and one open ended questions. On our research we use Microsoft Excel for analysis part. By using Excel we use some chart for explain the questions answer.

7.0 Analysis and Interpretation of Data

Analysis:

For analysis part we took respondents from Badda and Mirpur area. We have conducted our report to identify the consumers Attitude about the entire available paint and adhesive in Bangladesh. Though we have a small sample size Badda and Mirpur but we believe it represents our population of interest.The finding of our study is shown in the following:

0. Popular Adhesive & Paint at Badda & Mirpur area:Popular Adhesive at Badda and Mirpur area is shown below:

Figure 5: Popular adhesive at Badda and Mirpur area

Figure 6: Popular Paint at Badda and Mirpur area

Based on the adhesive figure above it can be seen that 35 percent people think Fevicol,30 percent think Fast, 25 percent people think Power Bond and 10 percent think Da- Co is most popular at Badda & Mirpur area. And based on the paint figure it can be seen that 65 percent people think BPBL, 15 percent think Elite, 10 percent think Roxy and 10 percent think others at mirpur and Badda area.

2. Uses Type of PaintUses type rate are shown below:

Figure 7:Uses type of Paint

Based on the figure above it can be seen that 85 percent use Berger paint, 5 percent use Roxy and 10 percent use Elite.

3. Department of Customers Type Department of Customer type percentages are shown below:

Figure 8: Customers Type of Berger paints

Figure 9: Customers Type of Berger paints and adhesive

Based on the figure above it can be seen that 54 percent customer are dealer, 20 percent are painters, 25 percent are House Owner and 1 percent are Developer.

Based on the figure above it can be seen that 30 percent customer are dealer 27 percent are furniture worshiper 22 percent are partex pointer and 21 percent are furniture shopper.

4. Most uses adhesive at Badda & Mirpur area

Uses percentage are shown below:

Figure 10: Most uses adhesive at Badda and Mirpur and area

Based on the figure above it can be seen that 30 percent use Fevicol it either SH, SR or DDL 25percent use Fast it either SH, SR or DDL 20percent use power bond it either SH, SR or DDL and other 25 percent use other cheaper adhesive it either SH,SR or DDL.

5. Causes of Popularity: Factor of choosing a brand of the respondents of survey is shown below:

Figure 11: Causes of Popularity

Causes of being popular in a paint Market are Shown Below:45 percent customer said that quality was the main cause 43 percent said that price was the main factor, 12 percent said that other things like after sales, and behaves of sales person was the main factor.

6. Important of Sales Service:Importance of Sales Service factor for choosing brand of the respondents of survey is shown below:

Figure 12: Important of Sales Service

Based on the figure above it can be seen that 40 percent people said that Berger paint Company Provide good sale service, 30 percent people said that Elite paint Company Provide good sale service, 20 percent people said that Roxy Company Provide good sale service and 10 percent people said that other Company Provide good sale service.

7. Important of Credit Payment System:Importance of Credit Payment Systems factor for choosing brand of the respondents of survey is shown below:

Figure 13: Important of Credit Payment SystemBased on the figure above it can be seen that 29 percent respondent said that Pidilite Company Provide Credit payment system 24 percent said that fast company provide credit payment system 22 percent said that Berger company provide credit payment system and 25 percent said that Bengal company provide credit payment system.

8. Important Of AdvertisingImportant of Advertising for choosing the Brand of respondents of survey is shown below:

Figure14: Important Of Advertising

Importance of Advertisement: 64 percent respondents agreed that advertisement plays an important role in selecting a brand. among the 64 percent 24 percent strongly believe that they go for a certain brand after watching the advertisement.22 percent are neutral 14 percent are disagreed that advertisement plays an important role in selecting a brand.

9. Attention towards Sales promotion Importance of sales promotion for choosing brand of the respondents of survey is shown below:

Figure 15: attention towards Sales promotion

Sales Promotion: 20 percent of consumer strongly agreed that they are influenced by the sales promotion, 48 percent agrees that sales promotion is important, 18 percent were neutral, and 14 percent disagreed on this statement.

10. Price factor Importance of price for choosing brand of the respondents of survey is shown below:

Figure 16: Price factorPrice: In case of price, 44 percent strongly believes that price is very important in selecting a brand. 30 percent agrees that price is important. 18 percent were neutral and 8 percent disagreed.

11. Increase in price can influence Increase in price of the paint of survey is shown below:

Figure 17: Increase in price can influencePrice Variation: 30 percent strongly agreed that if the price increases, they will shift to other brand. 18 percent agreed and 22 percent were neutral and 30 percent were disagreeing on this fact.

12. Brand loyalty from the quality sideChanges in quality for choosing brand preference are shown below:

Figure 18: Brand loyalty from the quality side30 percent strongly agreed that if the quality change, they will shift to other brand. 18 percent agreed and 22 percent were neutral and 30 percent were disagreeing on this fact.13. Essentiality of QualityImportance of quality for choosing a brand is shown below:

Figure 19: Essentiality of QualityQuality: 40percent strongly agreed that quality is the most important factor for them, 20 percent agreed and 20 percent were neutral and 20 percent were disagreeing on this fact.

14. Distribution efficiency Importance of distribution factor for choosing brand of the respondents of survey is shown below:

Figure 20: Distribution EfficiencyLack of Distribution Efficiency: 8 percent strongly agreed that effective distribution is very important. 34 percent agreed and 32 percent were neutral and 26 percent were disagreed with this fact. Most of the people say that for quality, few people says that price, brand, and many people says that for all of.

Most of the people say that for quality, few people says that price, brand, and many people says that for all of.

8.0 FindingsAs the objective of the study is find out the competitors of Berger paint and comparison to other Adhesive. In the Badda and Mirpur area Berger paint is very popular in each and every store and people believe in Berger a lot but it is for paint because of paint industry they believe Berger and use power bond adhesive. Because of their quality of product, good will and good relationship with the dealers and customers Berger is operating business successfully in Badda and Mirpur area. The other findings that are found during the period are stated below:

Berger Paint has product variations and strong brand name in the market. Berger Paint has 3 main competitor Fast is their main competitor. Pedilite (Fevicol) is in Fast position in adhesive industry. They have 50% local market share fast have 20 % and Berger (power bond) have 18 % and other local cheaper local company have 22 % share. At Badda contribution of sub dealers are more than dealers. So here is the chance of adulteration of product is high because most of the adulterated paints are supplied by sub dealers. Adulterated products are available in the market that are providing by the sub dealer and some dealer of Berger Paint. Berger Provide Their adhesive to other big furniture company for making their furniture. For example Hatil, otobi, Brother, Navana and so on big company. Because of those companies Berger paint able to do their business in adhesive industry. And capture 60%market share on those big companies market. Bengal (Da-Co) and other cheaper price company is the main threat in this area for BPBL because of their Strong marketing and their low price. A company is arising about the marketing officer that they are not motivated the carpenters as like other companies did. That's why they are moving them self from Berger paint to other companies Berger paint is not showing any marketing activities like before where fast, Fevicol and other adhesive company did strongly.

9.0 Recommendation

On the basis of my survey, the following recommendations can be draw for the further development of the Berger Paints-

Berger Paints should always provide emphasis on customer demand and dealer demand but they did not care the carpenter. It should always satisfy the dealers demand side by side the painter demand because carpenter some time play important role in use adhesive decision making. Berger paint should build up a strong communication channel with the dealer, painter and the furniture companies. Because this communication helps to take the market of this area. BPBL should give more concentration to the carpenters and should provide more facilities than the other adhesive companies. Berger paint should increase their marketing activities and also increase the field level marketing that other companies did. It should also organize distribution system through increase space for systematic way, frequently update its database system which shows products, pack size and availabilities and increase the number of delivery van. Berger Paints should concentrate on complaint against their product. Berger Paints should take strong strategy against its key competitors. The competitors are providing false information about Berger Paints. So they should protect it. Otherwise Berger Paints may lose its brand image. Berger paints can reconsider its discount policy and provide more discount to the customers. BPBL needs to have some valuable carpenters contractors who have the goodwill in the specific area The company should always maintain its promotional activity Always be aware about the marketing strategy of competitors BPBL must concentrate about the demand and want of customer more consciously. BPBL should maintain good relationship with furniture workshop and shop owner. Never give any chance of your competitors to do marketing Giving newspaper, TV and Radio advertisement more frequently usually for adhesive product BPBL always organize lots of workshop with Carpenters, which is really effective. It should be more and more. Bill boards are getting positive attention in reaching a product to its customer. BPBL should look into this matter. Different types of promotional activity should be used more frequently to push the product. BPBL should recruit more end user activist.

10.Conclusion

We have conducted my report to identify the consumers though we have a small sample size (Badda and Mirpur Area) but we believe it represents our population. From our Research we found that Berger Paint has product variations and strong brand name in the market though have strong brand name they are in little bit low position on their adhesive business. At Badda and Mirpur contribution of sub dealers are more than dealers. If Berger paints can make effective innovative advertisements, introduce sales promotional programs, improve the packaging, make the distribution effective and most importantly stress should be given to the quality and reasonable price. If price is too much high and also quality is good than people try to choose an alternative because carpenter group are lower class group. They want quality with reasonable price. If the Adhesive companies wants to retain the market share they have to consider all the factors such as Quality, price advertisement, etc.

11.0Bibliography& References

BPBL Annul Report 2009-2010,DR, BPBL "Performance in last Four Years of BPBL" Annul Report 2009-2010. Website: http://www.bergerpaintBD.com/vision mission objective.php Website: http://www.bergerbd.com/history.php Website: http://www.bergerbd.com/productcatalog.php Website: http://www.bergerbd.com/social_comit.php Website: http://www.bergerbd.com/globalcovarage.php

Questionnaire: Area: ___________

Shop Name:

Name of Retailer: ______________ Name of Consumer/Carpenter: __________________

1. In terms of Paint industry which company is most popular in Badda and Mirpur Area (Retailer)? 1. Berger paint (2) Elite Paint (3) Roxy(4) Others2. What type of Paint you use more (Consumer)?(1) BPBL (2) Elite(3) Roxy 3. What type of customers you are?(1) Dealer (2) Painter (3) House Owner (4) Developer

4. Now which companies adhesive you use most (Carpenter)? 1. Pidilite (Fevicol) (2) Fast (3)Berger (Power Bond) (4) Others5. Why do you think this company is most popular in the adhesive industry?(1) Quality (2) Price(3) Others6. Which company provides you good sales service?1. Berger (2) Elite (3)Roxy (4)Other7. Which company provides you credit payment system? (1) Pidilite (Fevicol) (2) Fast (3) Berger (Power Bond) (4) Bengal (Da-co)

8. Advertising plays an important role in selecting a brand

Strongly Agree Neutral Disagree Strongly Agree (2) (3) (4) Disagree1. (5)9. Sales promotion can attract your attention towards a particular brand?

Strongly Agree Neutral Disagree Strongly Agree (2) (3) (4) Disagree(1) (5)

10. Price can be an important factor in selecting a brand?

Strongly Agree Neutral Disagree Strongly Agree (2) (3) (4) Disagree1. (5)11. Increase in price can influence you to change your preferred brand

Strongly Agree Neutral Disagree Strongly Agree (2) (3) (4) Disagree(1) (5)12. You will stay with your preferred brand even if the Quality changes.

(1) Strongly Agree Neutral Disagree Strongly (5) Agree (2) (3) (4) Disagree 13. Quality is the most important factor in creating brand loyalty.

Strongly Agree Neutral Disagree Strongly Agree (2) (3) (4) Disagree(1) (5) 14. Lack of distribution efficiency can create dissatisfaction towards your preferred brand.

Strongly Agree Neutral Disagree Strongly (1) Agree (2) (3) (4) Disagree (5)You like your brand for: ---------------------------------------------------------------------------------------