PREFACE

This project report is the result of DEALER SURVEY aimed at considering market potential of PAINTS in VARANASI. This report is an attempt to find out the satisfaction level of dealers, market-share, strength and weaknesses and the strategies adopted by company. This report also highlights the names of the retailers and competitors dealers who have the potential to become the dealers of Berger paints in Varanasi region. The project is classified in various sections. These sections provide insight to the objective, research methodology, findings and recommedations of the researcher for the Berger Paints India limited.

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ACKNOWLEDGEMENT

The satisfaction, which accompanies the successful completion of the project, is incomplete

without the mention of a few names. I take this opportunity to acknowledge the efforts of the

many individuals who helped me make this project possible.

I would like to express my gratitude to Mr. Pradip Bandyopadhayay, Manager- HR, Berger

Paints India Limited for providing me an opportunity to work in Berger Paints India Limited at

Varanasi depot and make it a very memorable moment.

I would also like to express my heartfelt appreciation and gratitude to my project guide Mr.

Chandra Bhushan, ASM, Varanasi Depot. This project is a result of his teaching,

encouragement and inputs in the numerous meetings he had with me, despite his busy schedule.

He made sure that my stay in the office was a learning experience.

I would also like to thank all other departmental members especially Mr. Ganesh Verma,

Administrative Coordinator and Mr. Pankaj Shukla, Sales Representative for their constant

support, continued encouragement and guidance throughout my training period.

Finally, I would like to thank my Institute FMS BHU for making this experience of summer

training in an esteemed organization like Berger Paints India Limited possible. The learning from

this experience has been immense and would be cherished throughout life.

Chandan Kumar

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TABLE OF CONTENTS

1. Executive summary……………………………………………………..4

2. Industry Profile……………………………………...............................6

3. Introduction……………………………………………………………..8

4. Research methodology………………………………………………….9

5. Data Analysis ……………..…………………………………………...11

6. Findings…………………………………………………………………20

7. Limitations………………………………………………………………22

8. Recommendations………………………………………………………23

10. Conclusions…………………………………………………………….25

11. References………………………………………………………………26

12. Appendix…………………………………………………………………27

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EXECUTIVE SUMMARY

Objective: The aim of the project was to conduct a dealer survey so as to determine the satisfaction level of dealers and prospects for Berger paints in Varanasi region. It is also required to know market size and share of different players in the market.

Approach: Dealers survey has been conducted with the help of questionnaire. All the possible paint dealers in the region had been contacted whether they are direct dealer or a sub dealer of the different players in the market.

How it went:

First week: This week was sort of induction program. I interacted with the project guide

and office members to know better about the paint industry and the way company

functions. This duration helps me a lot to change my perception about paint and paint

industry.

Second week: This week was totally devoted for questionnaire. During this time

discussions and pretesting has taken place.

Next four weeks, that is third, fourth, fifth and sixth week of my training was devoted for

data collection by personal interview method.

Seventh week: Analysis and study of data collected has been taken place.

Eighth week: Preparation and submission of project report.

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Findings:

Asian paints and Nerolac Paints have occupied the 1st and 2nd position in this market respectively. Dealers felt that it is easy to sell the products of Asian and Nerolac than the Berger Paints, only because of less demand of Berger from consumer side.

In terms of quality, schemes, service and price, Berger paints give a tough competition to its competitors but due to lack of promotional activities the demand in consumers for the Berger Paints is lesser than the other two.

Recommendations:

Aggressive marketing for promotion of the various brands of Berger Paints is the need of the hour for the company. Promotional offers should target not only to painters, dealers as well as customers because they are the ultimate destination for the paints.

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INDUSTRY PROFILE

The market size of the Indian paints sector has been pegged at Rs 134 bn in value terms and is very fragmented. While in value terms, the industry grew by 18% in FY08, in volume terms, the growth stood at 15% per year. The current demand is estimated to be around 650,000 tons per annum and is seasonal in nature. The per capita consumption of paints in India stands at 0.5 kg per annum as compared to 1.6 kgs in China and 22 kgs in the developed economies. India's share in the world paint market is just 0.6%.

The unorganized sector controls around 35% of the paint market, with the organized sector accounting for the balance. In the unorganized segment, there are about 2,000 units having small and medium sized paints manufacturing plants. In organized sector there are mainly four players, Asian paints, Berger paints, Kansai Nerolac paints & ICI paints.

Fig.1: Sector wise break up of Paint industry

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Categories:

Decorative: Major segments in decorative include exterior wall paints, interior wall paints, wood finishes and enamel and ancillary products such as primers, putties etc. Decorative paints account for over 75% of the overall paint market in India. Asian Paints is the market leader in this segment. Demand for decorative paints arises from household painting, architectural and other display purposes. Demand in the festive season (September-December) is significant, as compared to other periods. This segment is price sensitive and is a higher margin business as compared to industrial segment.

Industrial: Three main segments of the industrial sector include automotive coatings, powder coatings and protective coatings. User industries for industrial paints include automobiles engineering and consumer durables. The industrial paints segment is far more technology intensive than the decorative segment.

Fig. 2: Market share of different segment of paint

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INTRODUCTION

In paint market there is always neck to neck fight of branded companies in organized sector and they also faces a tough competition from the local companies of unorganized sector. The purpose of this survey is to provide suggestions and recommendations to the company Berger paint to groom its strategy for dealers as well as for the local market.

The project “Paint Dealers survey in Varanasi region” is totally concentrated to the dealers who directly or indirectly deal in decorative segment of paint with different companies.

The aim of the project is to collect and analyze the views of dealers about the companies whom they deal with, which further leads to gather information to know the market capitalization, satisfaction level, brand decider, demand of colours and service level of companies. Study of collected datas can be used for comparative analysis of different companies and to find the demand and prospects for Berger paints India ltd. in Varanasi market.

Statement:

To conduct a dealer survey that is able to suggest the prospect for Berger paints as well as help to determine the market capitalization, satisfaction, service quality with respect to different companies and to know the colour demand and brand decider in market in present scenario.

Scope:

All the paint dealers, dealing directly or indirectly with different companies in organized as well as unorganized segment inside the boundary region of Varanasi.

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RESEARCH METHODOLOGY

Research objective:

Main Objective: The aim of the project was to conduct a dealer survey so as to determine the satisfaction level of direct dealer and prospects for Berger paints in Varanasi region.

Peripheral objective:

To understand the market demand of colour for wall (interior and exterior). To find the total paint market size and share of different players. To analyze the factors which influences most to the customers.

Research plan:

The flowchart of my research plan is as follows:

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Study of paint and industry: An overview

Designing of survey instrument

Collection of primary and secondary data

Analysis of the issues relating to the objective

Conclusion and Recommendations

Research design:

The research design is a Exploratory research design.

Sample design:

Population: Paint dealers.

Sampling Unit: Individual dealer.

Sample size: 141.

Sampling technique: Snowball & Convenient sampling

Tools: Questionnaire

Location: Varanasi, Uttar Pradesh

Duration: Two months.

Types of Data collected:

Primary Data:

General observation method-

Few of the data’s were easily available by merely visiting the shop of dealers. Keeping

my eyes opened helped to capture insight from dealers.

Questionnaire method:

A questionnaire was prepared having set of 15 questions to get required information for

analysis .After preparation of questionnaire personal interview has been conducted with

dealers to get the required data.

Secondary data:

Secondary data collected from various websites mentioned in References.

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DATA ANALYSIS

The data collected were analyzed with the help of Bar charts and pie charts. MS-Excel had also

played a great role in analysis part.

1) Total number of dealers contacted: Total of 141 dealers were contacted, in which 76

are direct dealers of different companies and 65 are non direct dealers, who used to

procured material from direct dealers or wholesalers.

Fig. 3: Break up of dealers contacted

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2) Segregation of dealers according to dealing companies: Number of dealers who

used to sell the products of:

Asian paints - 88

Berger paints - 64

Nerolac paints - 85

Shalimar – 34

ICI - 13

Others – 70

Fig.4: Number of dealers dealing with different companies.

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3) Direct dealers: There are 35 direct dealers of Berger paints, 50 are of Asian as well as of

Nerolac paints. Shalimar has a network of 19 direct dealers and ICI has only 6 dealers. 33 dealers

have dealership of other companies.

Fig. 5: Number of direct dealers

It directly indicates that Berger paints must have to increase the number of the direct dealers. So

as to provide a good competition to market leaders.

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4) Satisfaction level of direct dealers with Berger paints: Satisfaction of direct

dealers with the company Berger paints has been measured on an scale of 1-5, where

satisfaction is related with market demand, ease of selling material and the amount of

total sale. Where 1 being highly dissatisfied to 5 being highly satisfied.

Fig.6: Satisfaction level of direct dealers with Berger paints

65% of the direct dealers are fully satisfied, but still 35 % of the dealers faces problem

in market demand and ease of selling. To increase the total sale, company should make

awareness of its brand among the consumers, so as the demand of Berger paints will increase in

market.

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5) Comparative analysis of Mean satisfaction level: Mean satisfaction level of dealers

with Berger paints is 3.6428 whereas of Asian and Nerolac is of 4.375 and 4.0294

respectively. Shalimar has a mean satisfaction level of 3.470 and that of ICI is 3.20,

others have the lowest with 2.911.

Fig. 7: Mean satisfaction level of dealers

This shows that dealers of Asian and Nerolac are very much satisfied because there is good

demand of their materials among consumers which lead to increase in their sales and ultimately

satisfaction. Whereas in case of Berger paints, it is bit less popular among consumers, which

indicates to prepare a strategy to influence more and more customers.

6) Brand influencer: According to the dealers there is a great role of painters to

influence the customer about the specific brand. 41% of the dealers agreed with the

involvement of painters whereas 25% of the dealers believe that advertisement is the

most influencing factor. So the advertisement on electronic media, print media as well

as on shops at local level is necessary to attract customers. 19% of the dealers state

that they itself is the most influencing factor. While, in the opinion of 15% dealers

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company name is sufficient to market the materials. So, goodwill of the company in

market is also a essential factor.

Fig. 8: Factors to influence customers

This chart suggests that company should take care of painters and advertisements. There must be

scheme for painters on time to time basis and advertisement should be more.

7) Category which sold maximum by dealers: 44% of the dealers stated that the most

sold category from their shop is Enamel, while 40% of the dealers sell distemper from

their shop in maximum amount. As the Emulsion is bit costly in comparison to other

two its sell is maximum from 16% dealers only, but dealers believe that there is great

opportunity for Emulsions in near future and it will capture the market of distemper.

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Fig. 9: Breakup of dealers according to most sold category

Dealers also used to sell other category like primer, wood finishes etc. but this data is provided

by them on basis of maximum sold category from their shop.

8) Market capitalization: From the data available it can be deduce that the Asian paints

is the largest player among the competitors.

Fig. 10: Sale in terms of rupees (lakh)

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Fig.11: Market share of different players

According to the data collected by dealer survey, the total size of paint market is approximately

30 crores, and the Berger paints stand 3rd among competitors with 5.68 crores having market

share of 19%. Other and local companies share a market of 10% and this can be target for the

company to increase its share.

9) Prospects for Berger paints: Out of 141 dealers contacted 23 dealers showed their

willingness to work with Berger paints as a direct dealer. They have a bit of hesitation

only because of less demand from consumers, if the brand awareness will increase

then the prospects for the company will definitely increase.

The list of these 23 dealers is attached with their address and total

annual sale in appendix1.

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The segregation of these 23 dealers according to their annual sales is given in the

following table:

Annual sale (in rupees) Number of dealers

Under 5 lakh 11

5- 15 lakh 4

15 -25 lakh 4

25 lakh and above 4

These are those dealers who showed their keen interest to deal with Berger paints in near future,

other dealers do not completely deny working with company but they asked firstly to promote

the brand, so that consumer demand increases, and then only they will work with Berger paints.

10) Colours in demand: Most demanded colours according to the data collected for

exterior and interior walls are: Cream, white, orange, ivory, yellow, pink and

green.

Mostly light shades are preferable for walls but now a day’s dark colours are also coming

into fashion.

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FINDINGS

The major findings of my work are as follows:

General observation method:

Maximum Dealers are not so much educated and due to ignorance they feel companies’

schemes are complicated.

Dealers always wish to do lesser paper work.

Advertisement of Berger paints is minimal at shop and local level.

Few of the orders of dealers are rejected or not completed at the time due to non

availability of particular material in the stock.

There is few dealers meet and painters meet, in the region had taken place in past years.

Offer provided to the dealers on completion of their target must be such that it satisfies

their needs.

Survey method:

Numbers of direct dealers of Berger paints are nearly 30 % less in comparison to Asian

paints and Nerolac paints.

Maximum paint dealers used to sell the material of Asian and Nerolac.

There are 23 dealers who wish to be Berger dealer in near future.

In market capitalization Berger paints stand to the 3rd position. Asian paints and Nerolac

paints has 1st and 2nd position in the market respectively.

Asian paints and Nerolac paints has a good market demand and that’s why dealers feel

easy to sell their products.

According to the dealers, painters are the most influencing factor for consumer to make

perception about the particular brand.

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Advertisements also play a major role to influence customers.

Painters and Advertisements help the customers to make perception about the brands but

dealers are those who actually sell the material and it depends on dealers a lot to increase

or decrease the sale of materials of a particular company.

The most sold category of paint by dealers is Enamel.

Mainly light shades colours are in demand for interior and exterior walls.

According to 4 P’s of marketing:

Product: Product of Berger paints are of superior quality and the packaging is also very good. The drums of paints are of high quality material. The varieties of products are available in each category and for each segment of customer. The finish and life of paints is very good and itis as good as their competitors. Some of the dealers had also stated that if they have to colour their own home they will prefer Berger paints but when it is a matter of sale then they will opt for Asian and Nerolac paints.

Price: Product of the company is of superior quality yet the price is lower than its competitors. Berger paints also offers a good discount to their dealers on Dealers price list.

Place: The dealers of Berger paints are located at different geographic locations in Varanasi. The products are available at both rural and urban areas. The products are directly supplied from manufacturing units to Regional Headquarters or depot & from depot to the dealers. Berger paints has nearly 20% market share in Varanasi.

Promotion: Schemes provided to painters and dealers are attractive but when it came to advertisement it has a poor reputation. Advertisement of the company is lesser as compared to other competitors.

In terms of quality, schemes, service and price, Berger paints give a tough competition to its competitors but due to lack in promotional activities the demand in consumers for the Berger paints is lesser than the others.

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LIMITATIONS

Survey has been conducted on maximum number of dealers present in the region but still few dealers had been left.

Address of all the paint dealers present in the region is not available anywhere.

Some of the dealers were reluctant in providing the information due to lack of trust and familiarity with me.

In some shops the real owner was not there so information may not be perfectly upto the point.

Some of the dealers were inflating their sales figures.

In chilly summer days it has also taken care of that at the time of meeting with dealers electricity must be there, and then only they respond in a good manner.

The data was collected in Varanasi only so it can’t be generalized for the other regions of the state but some inferences can be made.

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RECOMMENDATIONS

The various recommendations which follow from my project work are as follows:

General recommendations:

Various schemes provided by company to the dealers must be completely entertained by

the help of personal meetings as most of the dealers are not well educated to understand

the schemes.

Frequency of advertisements on television should increase, because it is the best way for

a national level organization to reach to their customers.

Advertising campaign of “paint your imagination” is really good and is focused mainly

on urban market and upper segment of the society but as we know the majority of

population of India lives in villages so advertising campaigns should target them.

Dealers and Painters meet should take place on a regular interval of time as it helps to

promote the brand as well as it maintain the goodwill of the company in the market.

Consumer is the ultimate destination for paints. So, promotional activities and schemes

must increase for consumers.

Emulsions have a great future, they should be promoted.

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Specific recommendations:

Dealer’s need should be identified and schemes framing should be like that the dealers

get motivated to satisfy their needs. Need of various dealers are different, small dealers

and sub dealers want gifts like refrigerator, goggles etc. but big dealers want some

prestigious gift which can add value to their status. It does not mean they want any

expensive gift but they want some fame which can add value to their name.

Asian and Nerolac paints are used to do advertisements by painting of shops, whereas

Berger paints just provide a hoarding to the dealers. Company should start painting of

shops for dealers. It serves dual purpose, firstly it will attract customers and it also

provides satisfaction to the dealers.

There must be a demarcation between target of small dealers and big dealers, so that

small dealers can also get motivated to complete their target.

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CONCLUSION

There is a very tough competition in paint market among top 3 players. The heat of competition is felt not only by the organizations but also by the dealers.

Though Berger paints India limited is one of the top 3 companies in decorative segment in India yet there is lot to be done to achieve its vision of becoming top most company in India.

Many of the consumers are bit unaware about the paints they felt it is something related only with colours. To increase the prospects and overall sale of the company, Awareness among consumers is necessary. With proper marketing mix and strategy, the company would be able increase its dominance in Varanasi as well as in the whole country.

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REFRENCES

www.bergerpaints.com www.domain-b.com www.indiainfoline.com N.K.Malhotra, Marketing Research (2007).

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APPENDIX –I

List of those dealers who are willing to work with Berger paints in near future:

NAME ADDRESS ANNUAL SALENew Gupta paints and building material

Lat no.2, Mughalsarai 45 lakh

Avash sanitary and paints Sigra, Varanasi 4 lakhShilp shahkar store Maidagin, Varanasi 60 lakhJaiswal paints & hardware Dlw road, Varanasi 1 lakhRisabh hardware Durgakund, varanasi .50 lakhChourasiya building material Pandeypur, varanasi 30 lakhBalji enterprises Naria, Varanasi 1.5 lakhSharma hardware Gallamndi, mughalsarai 6 lakhVijay paints luxa road, Varanasi 1 croreR.k.traders lunka, Varanasi 1.5 lakhSri A.P. enterprises Pahadiya, Varanasi 1.5 lakhMourya hardware Naria, Varanasi 1 lakhJaiswal paints & hardware Teliabagh, Varanasi 5 lakhAmit agency Samneghat, Varanasi 10 lakhSri Ram store Pahadiya, Varanasi 20 lakhModern sanitary chitaipur, varanasi 1 lakhRajkumar & co. Godai chowki, Varanasi 18 lakhLucky industries Mughalsari 5.5 lakhOm sai hardware store lunka, Varanasi 1 lakhR.T. enterprises Assi, varanasi 3.5 lakhSampati paints Maidagin, Varanasi 20 lakhJ.P.sanitary hardware Ravinagar, mughalsari 22 lakhSaurabh building material Dlw road, Varanasi 1 lakh

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APPENDIX- 2

The Questionnaire used for the survey:

1. Do you have direct dealership of companies?

Yes No

2. If you are not a direct dealer then from whom you purchase material from

……………………………………………………………………………

3. Companies, which you deal with.

Asian paints Berger paints Nerolac paints

ICI paints Shalimar paints Others (………………………..)

4. Give points (From 1-5) according to satisfaction level with companies.

Asian paints Berger paints

Nerolac paints ICI paints

Shalimar paints Others

5. Rank the companies according to their service.

Asian paints Berger paints Nerolac paints

ICI paints Shalimar paints Others

6. Are you interested to deal with/with other companies?

Yes No

7. If no, why not?

…………………………………………………………………………………………

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8. If yes, why not started yet

Non interaction No knowledge about the company

To avoid unnecessary paper work Any other reason (………………)

9. What do you require to deal with new companies?

…………………………………………………………………………………………

10. 5 colours for wall (interior & exterior) which are in demand

……………………………………………………………………………………..….

11. Who influences the most to the customer to buy a specific brand?

Company name Advertisements Painters

Dealers Others

12. Sell of which category of paint is maximum from your shop

Emulsion Enamel Distemper

Primer Cement paint

13. What is total sale of paint from your shop annually?

……………………………………………………………………………

14. What is annual sale of different companies from your shop?

Asian paints ……………………………..

Berger paints ……………………………

Nerolac paints ……………………………

ICI paints …………………………………

Shalimar paints ………………………………………………………………………..

Others …………………………………………………………………………………..

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15. What improvement would you like in the way the company functions?

(a)Asian…………………………………………………………………………………………………………

……………………………………………………………………………………………………

(b)Nerolac………………………………………………………………………………………………………

………………………………………………………………………………………………………

(c)Berger………………………………………………………………………………………………………

……………………………………………………………………………………………………

(d)ICI……………………………………………………………………………………………………………

…………………………………………………………………………………………………………

(e)Shalimar………………………………………………………………………………………………………

…………………………………………………………………………………………………………

(f) Others…………………………………………………………………………………………………..

NAME: ……………………….. Phone: ………………..

NAME OF THE PERSON …………………………………………….

ADDRESS: ………………………………………

(Signature)

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