Final Project - Berger

7/23/2019 Final Project - Berger

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BERGER PAINTS BANGLADESH

LTD. Prepared For:

Mr. Mohammad Hannan Miah

Prepared By:

Group # 6

Faiyaz Mahmud 111 0191 030

MayeeshaFairuz Rahman 103 0493 030

Md. Imtiaz Hossain 111 0891 030

Rafat Chowdhury 112 0452 030

Ratul Rahman Foysal 103 0344 530

Ziaul Islam 113 0042 030

MGT489. 8

December 15th, 2014



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Letter of transmittal

15th December 2014

Mr. Md. Hannan MiahSenior Lecturer, School of Business North South University

Subject: Submission of Project for the course MGT489.

Dear Sir,

It is our pleasure to present you the final project on ― Berger Paints Bangladesh Limited ‖ which

is required for the completion of the course MGT489. We have tried to give our full effort to

include all the learning that we have received from the course under your guidance. We have

done this project all by ourselves despite any outside help and whatsoever.

We, therefore, pray and hope that, you would be kind enough to accept the final project and

oblige thereby.

Yours Sincerely,

Faiyaz Mahmud ID# 111 0191 030Mayeesha Fairuz Rahman ID# 103 0493 530Md. Imtiaz Hussain ID# 111 0891 030Rafat Chowdhury ID# 112 0452 030Ratul Rahman Foysal ID# 103 0344 530Ziaul Islam ID# 113 0042 030

Section: 08



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Executive Summary

This report has been conducted on Berger paints Bangladesh ltd. which is the largest paint

company in Bangladesh. The purpose of the study remains at the core of finding Berger to

uphold in the competitive industry and also to safeguard their business.

To satisfy the purpose we have conducted a systematic analysis externally as well as internally

on Berger and the paint industry in determining the competitive position it acquires compared to

its competitors. In finding the reason behind the success of Berger its core competency for

instance and the superior strategies came into the view in every aspect of the study.

Despite the fact of being the market leader with the strategies and operations coincide Berger has

been recommended with a proposed business model and some alterations in their strategies so

that the company can be even more successful in the long run.

Furthermore, due to a lack of time allowed to compute all the data a very deep tentative research

was not possible, but satisfactory analysis of the company within the time frame was constructed

with to find out their strategies, problems and recommend solutions.



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Table of Contents

Introduction 1

About the company 1

Mission 3

Vision 3

Why we have chosen this company 4

Purpose 5

Industry BPBL Belongs to 6

Industry Analysis 7

Industry Structure 8

Industry Growth Analysis 9

Controlling Forces for the Profitability and Industry Profitability 10

PESTLE Analysis 11

Porter‘s Five Forces 16

Impact of Macro Environment on Porter‘s Five Forces 18

Competitor Analysis 19

Immediate 19

Impending 37

Invisible 39

SWOT Identification 43

Current Business Canvas 48

Current Business Model of BPBL 57

Core Competency 59

Corporate Strategy 60

Diversification 62Relationship between Corporate Level and the Mission Statement 63

Business Level Strategy 63

Industry Life Cycle 67

Value Chain 71

Business level Strategy helping to achieve corporate level Strategy 73



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Table of Contents

Functional Level Strategy 73

Divisions and Department of Berger 74

Market Division 75

8p‘s of Marketing 77

Finance Division 81

Human Resource Management 88

Merit Rating/Performance Appraisal 93

Linking Resources, Core Competency, Capabilities with Functional Level Strategies for Value

Creation 103

Company Structure 107

Corporate Governance 116

Executive Management Team 120

Corporate Social responsibility 121

Structure and Control System 123

Value Chain Analysis 125

4p‘s Strategy 133

SWOT Analysis 134

Proposed Business Model 141

Recommendation 142



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Introduction

Paint industry in Bangladesh is an industry which has very high potentials and is contributing

significantly in the economy. This industry has not only created opportunity for local and

multinational firms to invest but also created a great number of job opportunities in the country

and infrastructure development.

Currently, there are almost 38 paint companies in the country who are producing paints and

satisfying customer needs. But there are only a few large companies who are capable and are

producing at large scale and capturing most of the market share. Prominent of all these

companies is the Berger Paints Bangladesh Limited which alone is capturing almost 55 percent

of the market share. (Berger paints Annual Report, 2013, n.d.).

Although there are so many companies in the industry, Berger has been able to maintain the

monopoly in terms of market share but they never acted like one. They always provide customers

with new products and services making sure they have a delighted customer base. Unlike most of

the other paint companies in the country, they are always coming up with products and services

which sometimes goes beyond customers‟ expectation level‖.

Bangladesh, being a developing country of 160 million people, is heavily growing in terms ofinfrastructure and so with that comes the opportunity for the paint industry to offer what they

have best to contribute. And Berger, the largest paint company in the country has been able to

satisfy its customer needs through its efficient supply chain management and production. The

company is also contributing to society in many ways, which eventually puts the company‘s

name in a much higher level. (Berger paints Annual Report, 2012, n,d.)

About the company

Berger Paints is one of the oldest names in the paint industry in Bangladesh and it is one

of the most technologically advanced companies in the country. The company is constantly

striving for innovating superior quality products and services. Berger manufactures world class



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paints for all kinds of substrates and also provides unparallel services. It has a rich heritage of

more than 250 years. (bergerbd.com, n.d.)

Berger‘s inception was laid out in 1760 by a German national named Louis Berger, who

started dye and pigment making business in England. Louis involved his family into the business

and eventually changed the status of the company to Louis Berger & Sons Limited. The

company grew and expanded rapidly with a strong reputation for excellence in innovation and

entrepreneurship. The company grew rapidly, by establishing branches all over the world and

through mergers and acquisitions with other leading paint and coating manufacturing companies.

(bergerbd.com, n.d.)

Berger Paints started its operation in Bangladesh since independence. Over the past few

decades, Berger has evolved and transformed itself in becoming the leading paint solution

provider in the country with a diversified product range that caters to all painting needs. In most

of the product categories, Berger is the pioneer. It continues to innovate new kinds of paintings

and offer those to its customers. (bergerbd.com, n.d.)

Berger has heavily invested in technology and Research & Development (R&D)

compared to any other manufacturers in paint industry. Investment in technology and plantcapacity is even more evident from the establishment of Powder Coating and Emulsion plants at

the Dhaka factory. The state-of-the-art Dhaka factory is an addition to Berger's capacity, making

it the paint giant in Bangladesh. It sources raw materials from some of the best known names in

the world. The superior quality of Berger's products has been possible because of its advanced

plants and strict quality controls that match international standards. (bergerbd.com, n.d.)

With its strong distribution network and supply chain management, Berger has reached

almost every corner of Bangladesh. Nationwide Dealer Network, supported by 8 Sales Depots

strategically located at Dhaka, Chittagong, Rajshahi, Khulna, Bogra, Sylhet ,Comilla and

Mymensingh has an unmatched capability to answer to paint needs at almost anywhere in

Bangladesh. (Berger paints Annual Report, 2011, n.d.)



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Berger's one of the prime objectives is to provide best customer support-connecting

consumers to technology through specialized services like free technical advice on surface

preparation, color consultancy, special colour schemes etc. To bolster customer satisfaction,

Berger offers Home Decor Service from where one can get an array of services pertaining to

painting.

Besides doing business in the country and also in all parts of the world, Berger carries out many

CSR activities which are heavily impacting the society, especially countries like Bangladesh.

This is not only creating a good image for the already well known company, it is helping the

society to be a better one and a more creative one. (Berger paints, Annual Report, 2011, n.d.)

Mission

―We shall increase our turnover by 100 percent in every five years. We shall remain

socially committed ethical company.‖ Key points:

• Increase turnover by 100 percent in every five years

• Remain socially committed ethical company (Berger paints, Annual Report, 2012)

So far as we have seen, the company is moving in the right direction as far as their

mission statement is concerned. They are trying hard to increase their sales to reach their desired

growth rate. Most importantly Berger is heavily committing itself in CSR activities which show

the company‘s commitment to the people and the society as a whole.

Vision

―To be the most preferred brand in the industry ensuring consumer delight.‖

(Berger paints, Annual Report, 2012)



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Key points:

• To be most preferred brand

• Ensuring consumer delight

In fact, Berger today and till now is the most preferred brand in the paint industry. In

reality, the name has become synonymous to paint in Bangladesh. To most of the people, paint

means Berger. The company has successfully been able to maintain this reputation through

various R&D and offering customers they like and sometimes offering them something beyond

their expectation hence the company having a delighted customer base.

Why We have Chosen This Company

In progressively conscience-focused market places of the 21st century, Berger Paints

Bangladesh Ltd. drives its business in a high competitive environment by investing higher in

technology and Research & Development (R&D) compared to any other local and multi-national

organizations in this market. Low per capita consumption of paints, vast potential to upgrade the

market, limited product range and increasing urbanization have made Bangladesh paint industry

a promising area for investment. At present, the company holds 55% market shareswhereas the

rest of 45% market shares are held by the other multi-national and local businesses. Some 38

small and medium size companies are engaged in the paint industry of Bangladesh. The total

Bangladesh paint market is estimated to be over 50,000 tones. Per capita paint consumption is

around 250gm. The majors participants of the paint industry are: Asian Paints, Elite Paints,

Romana Paints, Roxy Paints, Aqua Paints, Pailac Paints, Al-karim Paints, Uzalla Paints, etc.

Among these companies only Asian Paints does business in several countries and others are all

local producers. (bergerbd.com, n.d.)

Berger Paints Bangladesh Ltd. chalked out CSR policies that ensure business operations

that follow ethical standards. They standardized their business introducing the 3 Ps in mind –

People, Planet and Profit. . (bergerbd.com, n.d.)



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These exceptions have forwarded Berger Paints Bangladesh Ltd. to perform better each

year for the last consecutive five years (2008 – 2013). A figure has been shown in the following:

Performance in Last Five Years

Turnover Gross Profit

Tk. in „000 2008 2009 2010 2011 2012 2013

Profit Before Tax Profit After Tax

The research is developed to identify the strategies that Berger Paints Bangladesh Ltd.

have used to establish themselves as the market leader of the paint industry of the country and

the report also seeks to recommend some suggestions for developing better strategies and

removing lacks for future.

Purpose

Berger Paints began its painting in Bangladesh since independence. And this has been a

footstep to bring more than 230 years of global paint industry experience into Bangladesh. With

its strong distribution network, Berger has reached almost every corner of the country.

TK. in „000

2008 2009 2010 2011 2012 2013

10,000,000 8,000,000 6,000,000 4,000,000 2,000,000

-

3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000

500,00 -

TK. in„000

2008 2009 2010 2011 2012 2013

1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000

-

1,000,000

800,000

600,000

400,000

200,000

-

2008 2009 2010 2011 2012 2013



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Nationwide Dealer Network, supported by 7 Sales Depots strategically located at Dhaka,

Chittagong, Rajshahi, Khulna, Bogra, Sylhet and Comilla has an unmatched capability to answer

to paint needs at almost anywhere in Bangladesh. The aim of this research is to discover the

strategies that Berger Paints Bangladesh Ltd. follow to maximize the potential of their business,

the core competencies that they have, and form a research of the industry it belongs to.

Industry BPBL Belongs to

Berger Paints is one of the oldest names in the paint industry and one of the most

technologically advanced companies in the country. With more than 250 years of rich heritage,

Berger manufactures world class paints for all kinds of substrates.

Bangladesh‘s paint industry has been growing at a double-digit rate for the past several

years riding on the increasing demand from the construction sector. A recent study reveals its

market size based on demand is estimated at Tk 1,000 crore and domestic production capacity

Tk. 920 crore. Leading private commercial bank Prime Bank conducted the study. The demand-

supply gap, according to the study, is Tk 80 crore. The paint industry in Bangladesh is still

growing for which now RAK group a UAE based conglomerate is going to set up a paint factory

in Bangladesh. (Rahaman.S, 2010, January 24)

Only a few players Berger, Asian, Roxy, Pailac, Aqua and Elite etc. are operating in the

market with over 90 percent market share. The Prime Bank study shows Berger alone holds

almost half the market share, followed by

Companies Market Share (%)

Asian Paints 12 %Roxy 10 %

Pailac 7 %

Aqua 7 %

Elite Paints 5 %



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Berger grew by 25 percent in 2008 and Asian Paints that entered the market in 2002,

grew by 50 percent.

Key products that hold the major market shares are: plastic emulsion, distemper, outer

coat (weather proof), synthetic enamel etc. Plastic emulsion and distemper are close substitute of

each other. Emulsion is basically used in high-end residence all over the country and distempers

are economy class products having a demand in semi-urban and rural markets. Weather coat is

growing very fast and presently hold 20 percent market share.

Industry Analysis

Stages in the industry life cycle:

Paint industry right now in Bangladesh is experiencing a boom and is going through the

growth stage with only around 6 to 8 companies dominating the industry‘s market share. Back in

2010 the industry went through a double digit growth rate and is still continuing to become

bigger and bigger. From the past 10 years, a radical trend of urbanization has become a

significant issue in Bangladesh which is still increasing drastically. More and more people are

getting educated and are moving towards developed cities including the capital city, Dhaka,

which has the highest amount of immigrants coming in. By the year 2015 the expected



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population of the city is forecasted to be as high as 15.7 million. Upsurge in the demand of

shelter for living is giving the real estate companies the big opportunity now to seal their desired

profits these days. Single unit houses are being replaced by multi-storied apartments everywhere

due to the immense concentration of people living in towns nowadays. The real estate industry‘s

growth is in a word, exponential. Following all these factors, the colossal demand faced by the

paint and coating industries is very obvious to happen as painting and coating is a dire necessity

for the newly built constructions. As a result, the paint industry is not only growing in this region

of the developing economy but is also expanding world-wide.

Figure: Approximate market share of paint industry companies in Bangladesh.

The paint and coating industry in this country is in a state right now where the major players

are few. Mostly, names like Berger Paints, Asian Paints, Elite Paints, Roxy Paints, Pailac Paints

and few others make up the paint industry of Bangladesh.

Amongst these, the gigantic share of market stays conquered by Berger Paints

Bangladesh Limited (BPBL) which is over 50%. Rest of the companies despite the overallindustry growth, still hold less than 10% of the market share each except Asian Paints which has

recently succeeded in capturing up to 20% of the market share.

Industry Structure



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So, it is quite apparent that the paint industry is being controlled by only a few numbers

of companies in Bangladesh where Berger Paints Bangladesh Limited is the major portion of the

industry. If 75% or more of the industry share was held by only one company, it would have

been monopoly. On the other hand, if at least two companies held most of the shares in the

industry, it could be labeled as oligopolistic. Therefore, with just somewhat more than 50% of

the market share owned by BPBL solely, the situation of the industry remains inconclusive andcan be described as somewhat between Monopoly and Oligopoly.

Figure: Berger‟s five year profit growth till the end of the last annual year [Taka in 000].

The table above displays the profit earned by the biggest player in the paint industry,

Berger Paints Bangladesh Limited. Profit for the company in the past 5 years grew to BDT

281,258,000 which is an approximate increase of 49%. According to the semi-annual report so

far, the profit at the end of June 2014 amounted to BDT 599,303,000 which is approximately

70% of the previous year‘s annual income covered within only the half of this year. This

Industry Growth Analysis



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indicates a towering growth of the industry as Berger comprises of more than 50% of the market

itself.

As per reports from sources like Dhaka tribune, the second biggest market share holder

right now, Asian Paints is already holding around 20% of the market share within 11 years of its

entrance in Bangladesh, and most importantly, this company‘s growth is challenging as well.

Overall it is clear that the paint industry in Bangladesh with its few components is facing a

growth that is significant as the major paint and coating companies are growing along with the

real estate industry.

Controlling Forces for the Profitability and Industry

Profitability

Industry profitability focuses on some of the following issues:

IndustryProfitability

Development

of the Country

Consumer

UsageBehavior

Ethical andSocial

Responsibility

Advancementof Technology

ConsumerDemand

Buying Habitof the

consumers



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Controlling forces for profitability for the paint Industry in Bangladesh are as follows:

PESTLE Analysis

Political:

The last year has been one of the most disturbing years for Bangladesh in the recent past

in terms of domestic political instability caused by strikes, blockades and hostility for months

which affected all sort of business including the paint industry as well. Products were transported

with much difficulty with greater risks and higher cost during political violence regarding the

election issue. Frequent changes of government and policymakers‟ lack of enthusiasm or failure

to implement development oriented policies is a huge problem for the paint industry, which is

ControllingForces for

Profitability

Decorative

and

Protective

Customer

Satisfaction

AdequateCapacity

and

Production

Quality ofProducts

and

Services

Distribution

Network

Logistics

Consistent

SalesGrowth



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persistently changing in terms of technology. One thing which can be done is the market players

in this industry can maintain a good relation with the government so that the negative affect these

changes and fluctuations can be minimized which can be possible by having the government and

political parties by their side. Also, the tax system in Bangladesh is among the least effective tax

systems in the world, characterized by manual administration, low revenue and high levels of

corruption. Bangladesh has seen a rising trend in real GDP over more than past 15 years which

means that companies doing business in industries such as painting could do even better as with

rise in real GDP affordability and demand for normal products like paint is likely to increase.

However, the most obvious issue i.e. political instability such as changes in government, strikes,

civil commotion, extreme bureaucracy, corruption, etc. has always been a huge barrier which

affects such industries negatively.



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Economic:

In the perspective of customers‟ buying power, in various ways Bangladesh is a poor

country. And with such low GDP per capita and a majority of the population under poverty level,

too much of the population, a more or less medium priced gallon of paint might seem to be

expensive for them. Also, due to political problems, The World Bank International Monetary

Fund, Bangladesh Bank (BB) and many experts have projected the gross domestic product

(GDP) to be lower than 6%, which is much below the target of 7.2% for FY2014. Reduced

growth will have negative consequences that might lower efforts for poverty reduction. Though

public investment has increased, private, domestic and foreign investments is yet disappointingly

low. However, this scenario might change as it is also true that Bangladesh is having an

increasing trend of GDP over several past years and income of people is also increasing slowly

which does opens up good opportunity for industries such as painting to do business here. The

composition of growth trend in Bangladesh suggests a positive shift towards a modern economy

with a little more drive hence it is likely to affect the paint industry positively.

Social:

The paint industry has definitely made an impact on the job market of the country,

different local and multinational paint brands taking in thousands of employees and creating new

career opportunities every day. Also, the demand for companies to act responsibly towards

society has increased day-by-day and several companies are acting in such ways, for example,

Berger paints has been organizing Young Painters; Art Competition for the last nine (9) years

and also introduced Young Architects‟ Award from 2003. The company regularly contributes to

a number of causes and social welfare institutions through donations and sponsorships. These

efforts results in a better image for BPBL, as minds of the general public, who are, after all,

consumers of their products. In this globalized era and deterritorialization of borders, people are

getting more exposed to various cultures, luxurious lifestyles, better products and services, etc,

this opens up opportunity of paint industry to flourish here with various kinds of paint products. .



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As Bangladesh is trying to uplift its economy, more job opportunities are opening up slowly and

hence desire to enjoy a better lifestyle and living conditions according to affordability is

increasing. So, by having products of various categories to satisfy people of various income level

consumers, good business can be done, and overall the move towards a global culture and other

social aspects including a deliberate growth in employment are likely to contribute positively to

the industry in the upcoming years.

Technological:

Technology is one of the most prominent factors in the industry. The value of the global

production of paints and coatings was about 13% higher in 2012 than in 2010. Demand in Asia

continues to rise faster than elsewhere in the world, and that region now accounts for nearly 50%

of global consumption but still Bangladesh does not have an infrastructure that allows for

research and development of large scale even though paint industries changes persistently with

technologies. However, recent drives to automate day to day activities have been taken by a

majority of paint brand companies for example; Berger has always been the most technology

oriented paint company of the country. It has the most modern state-of-the-art production

facilities installed in its Dhaka factory. Its Research and Development (R&D) and Quality

Control (QC) departments are equipped with the best technologies in this country. As discussed

earlier, the potential market and opportunity to succeed in this industry is likely to increase in

Bangladesh, however, as still no proper support is given from the technological side and as

Bangladesh is still lagging behind from this perspective, this affect negatively to the paint

industry in the following years.

Legal:

According to the Construction laws, companies are not allowed to use any materials that

bring harm to human life or environment. – But in reality, certain companies are buying out non-

brand or low budget paints which are creating a lot of environmental effects. There are middle

man in many situation who take advantage of the big projects and suggest or sell paints which

are harmful in the long run. Hence, the company is losing a lot of money in re painting those



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structures or buildings. For e.g. Navanagroup‘s director, Mr. Shubro NGL experienced such

scenario during 2002-2003. The construction business was growing at that time, and they were

buying paints in bulk amounts from different 3rd party, to make maximum profit he used to buy

non brand paints, so in the long run he experienced that he had to repaint those buildings again

after 2-3 years. Which, in fact, cause him a loss. This has turned out to be a major problem, as

this trait is limiting the number of potential paint market in Bangladesh Paint Industry. Top class

companies who buy branded paints, has to sell apartments at a high price, but they are not

bothered until people are appreciating the color.

The companies and consumers who are using Berger paint currently had to look for the

availability of the paint. Mostly the companies get the paints directly from Berger Paints. But the

consumers who want to paint their individual apartments or house had to look for hardware

stores. So, at times the paint is not available. Sometimes due to trade restrictions paints are

unable to get into the country through the port, and hence there are works hampers and lots of

other problems which effects negatively to the paint industry.

Environmental:

With increase in competition and awareness, paint companies are also trying to act in a

more eco-friendly manner to protect the environment for example, Berger is committed to

maintain the harmonious balance of eco system and therefore constantly seeks ways to

manufacture and produce products in an eco friendly manner. From its inception, Berger has

played a pioneering role in introducing new paint and paint technologies to the Bangladeshi

market. Other companies like Asian Paints approaches the environment issue from the

perspective of waste minimization and conservation of resources. Determined to reuse, recycle

and eliminate waste, Asian Paints' material losses in manufacturing have reduced substantially

over the last few years. Traditional paintingmaterials and processes can have harmful effects on

the environment, including those from the use of leadand other additives. Bangladesh in

agreement of a global resolution is contemplating to ban paints containing lead by the end of this

year. The household enamel paints are widely blamed for causing harmful effects in biological

systems. It has also been seen that the rules and regulations regarding environment protection

http://en.wikipedia.org/wiki/Painting

http://en.wikipedia.org/wiki/Environment_(biophysical)


http://en.wikipedia.org/wiki/Lead











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can easily be evaded as there is still no strong enforcement; however, some firms are getting

more concerned about environmental issues to achieve sustainable development, which yet might

prove to be a bit more expensive operations that might affect the industry in a moderately

positive manner.

Thus from PESTLE analysis as the six industry factors give mixed results, it can be said

that the external factor will have a moderately positive effect on the industry.

Porter‟s Five Forces

Threats of New Entrants

Threats of new entrants in the paint industry are low as there are many barriers the new

entrant will face in setting up a new business.

Those barriers consist of:

High capital requirement

Huge amount of capital is required to set up new factory with working set of paint

manufacturing plant. One such set of plant which can produce paints up to 100,000 tons

annually roughly costs $50,000 as per one suppliers of machineries from China. And

there are also other machines required after producing the basic product paintlike the

container, labeling, weighting etc.

Existing companies in the market

Berger Paints, Asian Paints, Elite Paints, RAK Paints and many more companies are

already competing in the market. Now suppose a new investor opens up a new company,it will be very tough to grab market share, where the existing companies are fighting to

grab a decent amount of share from Berger.

Knowledge about the product/market/industry



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A lot of knowledge is required for commitment in this industry. Starting from sourcing

cheap raw materials while maintaining good quality, technological knowhow about the

production process to efficiently produce the product, and also being able to produce the

products within the industry average production cost to maintain a standard retail price.

Bargaining Power of Suppliers:

In the era of globalization there are thousands suppliers available over the world. A

supplier simply cannot charge whatever he likes. The company will find alternatives as they also

tend to have different department dealing with supply chain management and procurement. So

the bargaining power of the supplier is low.

Bargaining Power of Buyers:

There are lots of paint brands in the market. Different brands offer different benefits. The

customer has the complete freedom to choose from the available brands in the market based on

his/her needs. If the customer thinks that the brand he has been using in the past was

unsatisfactory he can easily switch as there is no switching cost. The same applies for pricing as

well. If one brand is significantly cheaper than another while maintaining a good quality, the

customer is more likely to buy the cheaper. So the bargaining power of the customer is very high

in the paint industry.

Threat of Substitute Products:

As previously mentioned, there is no alternative of paint if the consumers want to fulfill

their coloring needs. So there is no substitute of paints. Thus, the threat of substitute products is

low for paint manufacturing industry.



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Intensity of Rivalry among Competitors:

The intensity of rivalry among competitors is high in the paint manufacturing industry.

Different brand offers different features/benefits to the consumers. One company opts for huge

collection of colors, one offers superior durability and another company offer lower price. Every

company is fighting to grab market share from its competitor.

Factors State Attractiveness

Threats of New Entrants Low Unattractive

Bargaining Power of Suppliers Low Attractive

Bargaining Power of Buyers High Unattractive

Threat of Substitute Products Low Attractive

Intensity of Rivalry among Competitors High Unattractive

Based on the analysis of the five forces in paint manufacturing industry, we say that the

industry overall is unattractive in perspective of new entrant to set up a new company.

Impact of Macro Environment on Porter‟s Five Forces

Technological Changes:

With the evolving technology new things are invented every day. As of now there is no

substitution for paints, but in the future we never know there could be new type of product that

will satisfy coloring needs.

Economic Conditions:

Economic conditions affect the buying power of the end consumer and also the rivalry

among the major players in the market. So any major changes in a country‟s economic



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environment can impact on the bargaining power of the supplier and also the buyer and change

the competitive scenario among the companies in the industry.

Legal and Political Factors:

Legal and political factors always involve a business in its operation. Government rules

and regulations have a substantial impact on potential new entrants. In a country like Bangladesh

where corruption is at a very high level, some may find it easy to enter a industry with the help

of lobbing and bribery and some may not be able to enter due to incompliance with the political

leaders or the political system.

Immediate, Impending, Invisible Competitors of “Berger”

Immediate Competitors:

Asian Paints:

Core Competency:

Services:

Colourpro 360 degree Service:

It is a 360 degree service offering that understands, simplifies, and decodes the

oftencomplex world of paints and colour.

Royale Play International Designer Collections:

Immediate Competitors

Asian

Paints

Elite

Paints

RAK

Paints

Navana

Paints

Roxy

Paints

Aqua

Paints



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An exclusive rang selected from the latest trends in international décor with finishes

available only to architects and designers.

Products:

Decorative paints:

Interior wall paints, Exterior wall paints, Wood surface paints, Metals surface paints.

Industrial coatings:

Protective coatings, Floor coatings, Road markings.

Ancillaries:

Wall primer, Acrylic Wall Putty, Exterior Wall Putty, Wood Primer.

Capabilities:

Strong Financial Position:

Asian paints have a turnover of more than Tk. 200 billion in 70 years.

Operation worldwide in 23 different paint manufacturing facilities

Well skilled designers& employees

Resources Capabilities Core Competency

Industrial anddecorativecoatings

Paintingservices andsolutions

StrongFinancialPosition

OperationWorldwide

SkilledDesigners &Employees

Services

Products

Strengths

Nationwide Coverage; AP‘s Logo; Widest Product Range;Country Wide Distribution; Strong Dealership; Inventory Control;Pricing Strategy; Production-Marketing; In-house Production;

High Caliber HR; Corporate Reputation



Page | 26

Resources:

Asian Paints manufactures and markets industrial and decorative coatings. Along with

that the company also provides home painting services and solutions. The company's key

products and brands include the following:

Decorative paints:

Interior wall paints, Exterior wall paints, Wood surface paints, Metals surface paints.

Industrial coatings:

Protective coatings, Floor coatings, Road markings.

Ancillaries:

Wall primer, Acrylic Wall Putty, Exterior Wall Putty, Wood Primer.

Asian paints made a foray in automotive paints in the year 1997 with a joint venture with

PPG Industries. The joint venture is called PPG Asian paints. The company manufactures body

coatings and plastic coatings.

Paint brands owned by the company are: Ace & Apex, Apcolite, Apex, Apex Ultima,

Asian Paints, Color Next, Premium Gloss Enamel, Royale, Royale Play, Touchwood, Tractor

Emulsion, Utsav.

Strengths:

1. Comprehensive nationwide coverage of the market - urban, semi-urban andrural areas.

They have quite a number of brands, covering all segments and fillingall gaps. For

example, they have brands in different price slots like Utsav for rural lower-end markets

and Apcolite for high end-markets;

2. AP‘s logoGattu, an impish boy with the paint tin and brush, is most popular and easily

recognized;

3. Widest product range in terms of products, shades, pack sizes - 40 differentdecorative,

some in 150 shades, 8 different pack sizes;



Page | 27

4. Unlike its competitors who concentrate only in urban areas, AP is found everywhere. It

has a country wide distribution;

5. A network of 13,000 dealers spread all over the country. The nearestcompetitor has less

than 8,000. For this, they have large network of regionaloffices and company depots and

sales personnel to service the nationwide dealer network;

6. Strong in inventory control. APs average inventory level is 28 days salesagainst 51 days

for the industry. AP has 45% edge in inventory carrying costs;

7. The pricing strategy is oriented to middle/lower end consumers;

8. AP is quite strong in production-marketing coordination. Their policy of offering tailor-

made products to suit customer need has resulted in an ever growing product range;

9. In-house production, no outsourcing, high reliability in suppliers, superior in quality

assurance;

10. High caliber human resource, employs maximum number of MBAs, as a proportion to

total number of employees;

11. Corporate reputation has been a major strength for AP. The image is that of a successful

and well-managed company. They have won many accolades and awards.

Weaknesses:

1. In industrial paints, AP has only a 12% market share. It is far behind theleader BPBL.

Since this is going to be the major growth segment in the future, a lagin this segment will

end up as a major weakness;



Page | 28

2. Widening product mix puts strain on production distribution, accounting

andadministration;

3. Innovation in developing new products is not adequate;

4. AP has a major weakness on the technology front in industrial paints. Most paint firms

have technology tie-ups with manufacturers abroad.

5. Ever expanding product mix throws some strain on inventory management;

6. Seasonal demand and hence in off seasons it can lead to cash flow problems;

7. No tie up with foreign manufactures. Through it has units in severalcountries.

Why Asian Paints is an Immediate Competitor?

Asian Paint consists the second largest market share in the Bangladeshi Paint Industry.

They are financially strong and operating in the same segment as BPBL is currently existing.

Asian Paints targeting broader market segment than BPBL and they are offering a large number

of products to the customers. They are cost efficient.

Elite Paints:

Core Competency:

High quality product:

Marine Paint:

Ships and offshore structures are sensitive to briny air and sea water corrosion.

This category of paint is a highly specialized ecological coatings i.e., eco-friendly which

performs as a protective layer for ship parts, boat bottom and other offshore structures. It



Page | 29

has eventually revolutionized the market for salt and fresh water hull coatings. This paint

offer all the advantages of foul-release, low surface energy (friction reduction), non-stick

coatings and solves the durability problems. Marine Paint can be divided in two

segments, one is conventional and the other is high performance type. These products are

being offered mainly through direct marketing approach and it is mostly concentrated to a

niche market such as, Dhaka and Chittagong dock yards, Bangladesh Navy, and

Passenger Ships, etc.

Color Fest:

The uniformity of color varies from person to person, while the base may remain

the same. The shades define the personality while the usage defines the vision. All of us

have a distinct personality. So, while choosing the colors that will set the environment,

eventually have distinct shades in mind. Therefore, to find the distinct color, Elite Paint

brings in Colorfest – the country‘s most advanced POS tinting solution.

Opening up world of colors, Elite Colorfest offers a wide spectrum of shades.

From the ordinary to the extraordinary, from the eye catching to the subtlest of shades,

Colorfest has it all. Under this Brand Elite Paint offers four decorative products. They

are, Acrylic Plastic Emulsion, Synthetic Paste Distemper, Master Coat and Silky Finish.


Suppliers of

Equipment Marketing Mix High Quality

Service

High QualityProduct

Competitive pricing Optimal utilization

of availableresources at alltimes.

Optimal use ofinformation &technology.

Strengths

Customer Loyalty; Individualizing the Experience;

Brand Image;



Page | 30

All these four new products give the walls a touch of elegant ambiance. Made with the

finest quality raw materials, Elite Paint Color fest products put forward a colorful

sophisticated atmosphere while ensuring highest durability and better coverage ever

offered. Hence one can choose color that steals the heart from Elite Paint Colorfest and

celebrate ones the vibrant world with color beyond colors.

Competitive pricing

Optimal utilization of available resources at all times.

Optimal use of information & technology.

Capabilities:

Elite Trade Painting goals and objectives are essentially to guarantee satisfaction.

Specifically, they have four basic rules that they follow:

1. Everything that should be painted is painted

2. Anything that should not be painted will not have paint on it

3. All lines are straight and surfaces smooth

4. At the end of the job, we leave a clean site and a high quality paint job (source)

For Elite‘s marketing mix, our client wishes to provide the service through online

means for the North Vancouverarea. They already service here, but believe that a proper

online presence would ultimately be beneficial. Simply having a website that is generally

representative, and also located for eastern Canada is not enough. For promotions, there

don‘t seem to be much of it going for the eastern website. There are no places to connect

with social media. Visitors shouldn‘t have to Google to check for Twitter, Facebook, etc.

Accounts — they should be immediately accessible through the website.Price of the

services is case specific, thus the ‗estimates‘ menu option.

Resources:

Main collaborators with Elite would be their suppliers of equipment, namely for paint.

They would likely be wholesalers, while suppliers of equipment would likely be



Page | 31

merchants and manufacturers, depending on the life of the equipment and the complexity

of the tool being used.

Strengths:

‗Request an Estimate‘ and ‗Contact Us‘ pages give visitors a chance to commit to

the company. First coming into the site, there is even a separation those who are

customers and those who are interested in joining the Elite Trade Painting team. This is

the third stage of the Four Key Stages of Customer Relationship.

Elite‘s separation of customers from those who wish to join the team is an effort

in individualizing the experience. This delivers a more unique message than if everything

was put into the same site.

The Elite brand is presented strongly while going through the company site. It is

always in the top left corner, is well-sized, bold and simple. It is important to have strong

branding, especially when marketing in the global digital world, because people come

across many advertisements and thus logos every day. It is important to have one that

stands out so recollection of the company is likely in the future.

Weaknesses:

Taking from the Four Key Stages of Customer Relationship, the website can use

work on the second stage —―Exploration/Expansion.‖ There are a several pages on the

customer site, which is fine, but once a visitor has gone through three of the six pages,

they will probably start to notice a common theme — each page is really rather bland, with

little to no visual element and unexciting textual arrangements and conventional serif font

use. To encourage visitors to explore each of the six tabs, the first two, ‗About Elite

Trade Painting‘ and ‗Message from the President‘ should be the best pages that will set

the precedent for exploring the rest of them.



Page | 32

Why Elite Paints is an Immediate Competitor?

Elite Paint is currently enrolled in the same industry, targeting the same market segment,

and offering products for various demands of the consumers. They are offering various category

of products to their customers and have been competing to capture more market share.

RAK Paints:

Core Competency:

Largest Paint factory:

RAK Paints have one of the largest paint manufacturing factory in the country.

Green building

Capabilities:

Strong Distribution System

RAK Paints have been maintaining strong relationship with their distributors and

they have an organized distribution system.

Resources:

R & D Department

They have a strong R&D department who are developing their products and

coming up with the new innovative colors.



Page | 33

Strengths:

Befitting Distribution System

Incomparable Merchandising Performance

Persuasive Brand Image

Quality Products

Good Production Facilities

Weaknesses:

Fluctuating Price Level

Because of the high cost of production and imbalance implementation of the

resources, their price have been fluctuating often.

High Cost of Own Product

They have been suffering from reducing their own cost of production for the last

3 years.


R&D

Department

StrongDistribution

System

Large Paint Factory

Green Building

Strengths

Befitting Distribution System; Persuasive Brand Image; Quality Products;

Good Production Facilities; Incomparable Merchandising Performance.



Page | 34

Navana Paints:

Core Competency:

Distributor‘s Relationship

Navana Paints have strong distributor‘s relationship as well as strong distribution

channel as the organization itself is under the Navana Group which is one of the largest

organization in the country.

Capabilities:

In the umbrella of one of the biggest company in Bangladesh

Number of assets

Navana Paints have a lot of assets as this is the part of Navana group who are

strongly known for their high number of assets.

Distribution Channel

Because of the Navana Group, Navana Paints is having the facility of the

distribution channel.

Resources:

Financial Support:

They have strong financial backup from their parent company.

Human Resource

Navana Paints have been hiring some of the excellent employees who are

competent and qualified. These employees are working to minimize their expenses.



Page | 35

Strengths:

Strong Financial Backup

Navana Paints belongs to Navana Group who are one of the largest organization

in the country and they generate a huge number of profit each year. Navana Paints are

being benefitted by the investment of the Navana Group.

Strong Distribution Channel

The Navana Paints have strong distribution channel and they maintain strong

relationship with the wholesalers to retailers by offering them compensation.

Weaknesses:

Low Brand Image

Navana Paints have a low brand image as they do not focus on their marketing

department much.

Low Technology Advancement

Why Navana Paint is an Immediate Competitor?


FinancialSupport

Human

Resource

Number ofAssets

In the umbrellaof one of thelargest

hospitality

Strong FinancialBackup

Strong Distribution

Channel

Strengths

Strong Financial Backup; Strong Distribution Channel



Page | 36

Navana Paint has developed a strong retailer and distributor relationship in the market

where BPBL is currently operating. Navana Paint is targeting the same market segment and

making their products for the same consumers as BPBL.

Roxy Paints:

Core Competency:

Creative Strategy for Advertising:

Creative strategies of advertising depend on advertising budget. Two considerations

may influence the strategy selection.

i. Whether the campaign is intended to maintain or to change market condition.

ii. Whether the campaign will communicate information imagery or symbolism.

iii. Utilization of the 1000 shades for decorating Paints.

The creative strategy is guided by target market and desired positioning of the product.


EfficientEmployees

DecorativeProduct

Industrial

Product

Creative Strategy Strong Distribution

Channel foradvertising

Strengths

Sales Force; Strong Distribution Channel



Page | 37

Low Passive Strategy

Being a small manufacturer and products have lower cost feature than other

competitors Roxy paint is using this strategy. It indicates —

i. Low price

ii. Less risk

iii. Low expenditure

iv. Large volume of production

v. Large volume of sales

vi. Easy break-even point.

Capabilities:

Decorative Product

There are more than 1000 shades are already available.

Industrial Product

1. Epoxy Enamel

2. Coal Tar Epoxy

3. Epoxey Zinc Chromate Primer

4. Epoxy Red Oxide Primer

5. Roxy Aluminium Paint

6. Roxy Hammer Finish

7. Roxy Tennis Court Paint

8. Roxy Road marking Paint

Strong Marketing Department

Roxy Paints have direct marketing through email, official latter and phone to

persuade the target organization to give the order. Many construction and builder‘s

organization give order through mail or phone as well as their sales force.



Page | 38

Resources:

Efficient Employees:

Roxy Paints train their employees in a regular basis and provide them good incentives

on their performance.Roxy paint has a formal training program for sales people‘s

developments. The training program include:

Type sales job.

Size of firm

Product complexity

Experience of new sales people.

Selling concept and technique.

Product knowledge

Territory management

Company policies and operating procedures.

Above mention programs are helpful for sales people developments and then company

seek from trained people following output:

Increase productivity.

Improve morale

Lower turnover

Improve customer relation

Enable better management in territory

Effective Marketing Channel

Their marketing channel is very high. They have good relations with thewholesalers, dealers, and customers.



Page | 39

Strengths:

Sales Force:

Roxy paint used to the trade selling method to sales their products because of

product genre. This form of selling provides assistance and support to value chain

members rather obtaining sales. Marketing through wholesalers, Retailers, or other

intermediaries providing merchandising, logistical, promotional, and product information

assistance.

Distribution Channel:

Place is the very important fact of paint marketing. In case of paint market are

segmented by place such as city area, town area, semi town area and rural area. In city

and area customer seeks more synthetic paste distemper, plastic paint and weather coat

because of huge luxury building housing. In semi town and rural area customer more

purchase oil-based paint because of tin and wood based housing. Thus dealers also keeps

product according to their place. So distribution channel, sales team and overall

marketing department are working through place.

Weaknesses:

Lack of enough quality products

New products according to customer needs

Technology to fight with competitor.

Why Roxy Paint is an Immediate Competitor?

Roxy paint has a strong marketing department and sales force for which they are able to

capture the customer‘s attention. They are offering various categories of products for the same

customers of BPBL and operating in the same market.



Page | 40

Aqua Paints:

Core Competency:

Enamel Matte

Aqua Style Plus

Ice Today

Capabilities:

Online Facility

Industrial Coating

Resources:

Interior Products

Exterior Products

Dealer‘s Information

Strengths:

Expert Advice

Superior technologies deployed to achieve maintain the competitive edge for eg. Supply

chain management system that integrates plants, regional distribution centers, outside

processing centers etc. hence they have strongest supply chain system with

They have maintained their brand name and increased awareness by unique ways of

advertising and roping in celebrities.



Page | 41

Weaknesses:

Limited market share in industrial paints segment

In decorative paints Industry Customer tastes and perceptions change very fast and

products may become obsolete with change in trends, hence production planning and

inventory problem.

Why Aqua Paint is an Immediate Competitor?

Aqua Paint is technologically advanced and they offer various sources of products to the

consumers that BPBL targets to. Their market segment is the same but they capture a very low

market share.


Interior Product Exterior

Product

Dealer‘sInformation

DecorativeProduct

IndustrialProduct

Enamel Matte Aqua Style Plus

ICE Today

Strengths

Expert Advice; Superior Technology; Brand Name



Page | 42

Impending Competitors:

Pailac Paints and Chemical Co.

Core Competency:

Quality

Employee Efficiency

Why Pailac Paints and Chemical Co. is an Impending Competitor?

Pailace Paints and Chemical Co. offers good quality paint as well as glue, gums,

and other products. Their target market is not the same but they offer various categories

of products to all the markets related to paint industry and itself.

BD Painters and Decorators

Core Competency:

Superior Service

Why BD Painters and Decorators is an Impending Competitor?

They provide superior service to the customer of paint industry as well as they

target the same industry with a very limited category of products.

Pailac

Paints and

Chemical

BD Painters

and

Decorators

Adhesion

Products

Pvt. Ltd

Anchor Paints

Industries

Fisco Bangladesh

Ltd (Paint Unit)

Impending

Competitors



Page | 43

Adhesion Products Pvt. Ltd

Core Competency:

Number of Choices of Products for Customers

Why Adhesion Products Pvt. Ltd. is an Impending Competitor?

Adhesion Products Pvt. Ltd. offers the same market segment but different

products. Their main target is to provide adhesives to the paint industry as well as Berger.

Adhesion Products Pvt. Ltd. provides more products than Berger do in adhesive business

and Adhesion Products Pvt. Ltd. captured the more market in this adhesive industry

which is directly connected with the paint industry. They also offer low quality colors in

the market.

Anchor Paints Industries

Core Competency:

Quality Product

Superior Service

Technology Advancement

Why Anchor Paints Industries is an Impending Competitor?

They provide superior quality and service to the customers of the paint industry.

But they have a very low market segment in the Bangladeshi Industry. Anchor Paints

have a strong financial backup from its parent company and they target the same

market as Berger.



Page | 44

Fisco Bangladesh Ltd (Paint Unit)

Core Competency:

Cheaper Price

Low Production Expenses

Why Fisco Bangladesh Ltd. (Paint Unit) is an Impending Competitor?

They provide product to the paint industry in a lower price targeting the lower

market segment. They have a very low investment in the business but operating in the

same industry as Berger.

Invisible Competitors

The invisible competitors of the paint industry are the few selective wallpaper companies.

“Zero Inch Interiors”

Core Competency:

Keeping the Bangladeshi Flavor: Whatever they do they try to keep a Bangladeshi touch

to it

Zero Inch

Interiors

Vaaz

Interiors

Invisible

Competitors



Page | 45

Services

Interior Design & Execution

Architecture

Furniture

Landscape

Graphics & Communication

Strength

Environmental preservation

Affordable dignified structures

Cutting edge designs expressed through the play of light upon the natural beauty of

materials

Sustainability is the key commitment of this firm of Architecture, Interior Architecture

and Graphic Designs.

Weakness

Less exposure in the market

Restricting itself only to the wallpaper product

Not much variety

Capabilities

Create distinctive designs and memorable interiors, producing highly satisfying results

for both the Firm and the Clientele

Follows the principle of function, beauty, economy and end results

Presenting design solutions that are both functional and aesthetical

Endeavor to create healthy, energy efficient spaces



Page | 46

Why Zero Inch Interiors are our invisible competitors?

Firstly, they are doing great in the wall paper industry. Secondly, they have the

Bangladeshi flavor in their works which makes make them patriotic and differentiated. They

are very creative and also look out for the environmental issues.

“Vaaz Interiors”

Core Competency:

Consultation:

Vaaz Interior offers discussion for those clients not needing comprehensive

interior design services. They are ready to provide the best design solution backed with

sound design rationale to assist the consumers in creating that special environment they

have envisioned.

Services

Corporate Office Interior

Showroom and Office Interior

Apartment Interior

Kitchen Kabinet Interior

Imported Partition Installation

Glass Paper and Wall Paper Installation

All Type of Alluminum Works

Tiles and Electrical Works

Initial Design Consultation

Interior and Experior Painting Services

Space Planning and Furniture Planning

Color Consultations

Bathroom Remodel

Building Design

http://www.vaazinteriorbd.com/services.html






























Page | 47

Rajuk Approval Drawing

Strength

A breadth of products

Affordable custom design, inexpensive Training

Range of interior design and interior architectural services

20 years of designer work repertoire

High professionalism

High quality design

Weakness

Expensive

Only targets the prestigious market

Capabilities

Qualified designers

Quality products

Consultation with Clients

Many services

Why Vaaz Interiors are our second invisible competitors?

Vaaz are also doing well in the market, even better than Zero Inch Interiors. So, they

have a better chance of competing in the paint. They have a variety of services, a lot more than

other wall paper companies. If the good work is continued by the Vaaz interiors than they have a

pretty much a good chance of expanding/diversifying their business and come into paint

industry.





Page | 48

SWOT Identification:

Internal Environment

Industryprofitability

factors

Corecompetencies

of competitors

CoreCompetencies

of Berger

Strengths Weaknesses



Page | 49

Figure: Matching Internal Analysis

Core competencies

of Berger:

R&D

Wide range of products

Quality

Industry profitability factors:

Distribution Network

Quality of Products andServices

Adequate Capacity andProduction

Customer Satisfaction

Decorative and Protective

Cost Effective

Consistent Sales Growth

Consumer Demand

Advancement of Technology

Ethical and Social

Responsibility Consumer Usage Behavior

Development of the Country

Buying Habit of theConsumers

Core competencies of

competitors:

Decorative Paints

Ancillaries

Marine Paint

Color Fest

Largest Paint factory

Green building

One of the biggest companyin Bangladesh

Over 1000 color shades

Industrial Painting

Enamel Matte

Aqua Style Plus

Strength:

Greater Market Share

Diversified ProductOfferings

Excellence in Innovation

R&D Department

TechnologicalSophistication

The Brand Name

Experience

Customer Service

Plant Capacity

Strong Financial Condition

Efficient Supply ChainManagement

Ethical Practices / CSR

Activities Good Profitability

Weakness:

High cost structure

Lack of access to the best natural resources

High cost for importingraw materials



Page | 50

External Environment:

Porter's Five

Forces

PESTLE

Analysis

Opportnities Threats



Page | 51

Figure: Matching External Analysis

PESTLE:

• Political - Negative

• Economical - Positive

• Social - Positive

• Technological - Negative

• Legal - Negative

• Environmental - Moderate

Opportunities:

• Rapid rate of urbanization

• Rising Real Estate Business

• Newly Emerging Festivals

• Rise of New Consumer

Segments

• Removal of international trade

barriers

• Loosening of regulations

• Arrival of new technology

Porter‟s 5 Forces • Threats of New Entrants -

Low

• Bargaining Power of Suppliers –

Low

• Bargaining Power of Buyers –

High

• Threat of Substitute Products –

Low

• Intensity of Rivalry among

Competitors -High

Threats:

▪ Political instability

• Corruption

▪ Low switching cost of Buyers

▪ High competitive rivalry

▪ Emergence of invisible competitor

▪ Possibility of new environmental

regulations

▪ Slow Economic Development

• Exposed to currency risk



Page | 52

SWOT Identification at a Glance:

Strength:

Greater Market Share Diversified Product

Offerings

Excellence in Innovation

R&D Department

TechnologicalSophistication

The Brand Name

Experience

Customer Service

Plant Capacity

Strong FinancialCondition

Efficient Supply ChainManagement

Ethical Practices / CSRActivities

Good Profitability

Weakness:

High cost structure

Lack of access to the best natural resources

High cost for importing

raw materials

Opportunities:

• Rapid rate of

urbanization

• Rising Real Estate

Business

• Newly Emerging

Festivals

• Rise of New Consumer

Segments

• Removal of international

trade barriers

• Loosening of regulations

• Arrival of new

technology

Threats:

▪ Political instability

• Corruption

▪ Low switching cost of

Buyers▪ High competitive rivalry

▪ Emergence of invisible

competitor

▪ Possibility of new

environmental regulations

▪ Slow Economic

Development

• Exposed to currency risk

External External

I

NT

E

R

N

A

L



Page | 53

Current Business Canvas

Key Partners

IT Partners:

Berger needs information technology support that consists of internet and hardware

which is provided by mainly three companies. Aamra Networks Limited provides the high

speed internet service as per Berger‘s requirements. Smart Technologies Limited provides

hardware support whereas SEP India provides them with both internet and hardware support.

Financial Partners:

Accounts of Berger Paints Bangladesh Ltd along with other core banking services and

letter of credits is maintained by Standard Chartered Bank (SCB). Third party accounts of

Berger are maintained by Citibank N.A. and Dutch Bangladesh Bank Ltd.

Marketing Partners:

Berger communicates its values and offerings on a massive level through creative and

mesmerizing advertisement campaigns. They use numerous mediums like television, radio,

billboards and all sort of print mediums for advertisements. The media and paper advertisements

are mainly created by Grey Advertising Ltd and Unitrend Advertising agency. Awareness

programs and social campaigns are carried out by a company named One Step as per Berger‘s

report. The advertising agencies come up with marketing ideas and submit the ideas to Berger‘s

marketing de partment. Then it is Berger‘s marketing department who chooses and approves the

advertisement ideas to be selected.



Page | 54

Figure: Current Business Canvas of Berger Paints Bangladesh Limited.

Key Partners

- IT partners –

Aamra, SEP

India, Smart

Technologies

ltd.

- Financial

Partners – SCB,

City Bank N.A,

DBBL

- Marketing

Partners – Grey

Advertising Ltd,

Unitrend

Advertising

Agency

Key Activities

- Manufacturing

Paints.

- Marketing and

Branding.

- Research and

Development of

paint categories.

- Maintaining

relationship with

stakeholders

- Striving overall to

attain greater

market share

Key Resources

- Brand value and

recognition

- Strong R&D

sector

- Strong quality

control programs

- Wide range of

products

- Financial

resources

- Strong

distribution

network

Customer

Relationships

- Launching

campaigns

- Organizing

social events

and programs

- Providing expert

after sales

services

- Incentives

occasionally

Customer

Segments

- Decorative

Segments

- Industrial

segments

- Marine

segments

- All other

segments

where paint

is needed

Channels

- Eleven majorsales depots

across the

country in

eleven districts

- Sales done by

retailers and

dealers of paints



Page | 55

Manufacturing Partner:

Becker Industrial Coatings Holding AB, makes up a joint venture with Berger to help

Berger manufacture coil coatings.

Key Activities

Manufacturing paints and vinyl for diverse purposes:

Value Propositions

- Nation-wide

reach

- Diverse and

numerous target

segments

- R&D efforts to

provide safest

Paints

- After sales expert

services

Cost Structure

- Agent Banks

- Marketing and Advertising

- Local and International suppliers and retailers

- Fixed Costs- Variable Costs

- Technological Support cost

Revenue Streams

- Products

- Services

- Events and Programs



Page | 56

Berger tries to cover all the areas that can be covered by their paint products. Their

product mix consists of decorative paints, industrial paints, marine paints, powders, coatings,

adhesives, textile products, auto refinish products, wood coating,pre treatment chemical, brush &

rollers. Thus throughout Bangladesh, Berger remains the number one company in terms of

coverage of segments and market share holding.

Marketing and Branding:

As mentioned earlier, Berger markets its offering through various mediums Television,

radio, billboards, magazines, print advertisements and marketing campaigns. They use all sort of

traditional and newly emerging technological or innovative means to communicate its message

to its numerous target segments. Whenever they find a region where their opportunity is

lucrative but demand is comparatively low, they put enormous amount of effort to create the

demand in those areas by marketing activities. The brand in the long run aspires to be the most

preferable customer delight and that‘s how they try to position the brand in customers‘ minds

through their marketing efforts.

Developing and Maintaining R&D platform:

The Research and development division of Berger is highly equipped with modern paint

testing equipment and analytical instruments. The activities performed by the department are

coming up with cutting edge researches, product and process development, providing technical

support to customers and manufacturing units. They also support the raw material procurement

teams by identifying alternate or new raw materials and by developing new vendors. Berger also

possesses technology tie ups with companies like Valspar (USA), Orica (Australia), DuPont

(France), and more.

Maintaining Relationship with Stakeholders:

Berger is very sensitive to complaints against their products or services as it positions

itself as the number one paint manufacturer provider of the country. This is why they respond

and communicate with their best efforts to hold onto their stakeholders. Dealers are provided

with incentives so that they distribute Berger‘s products in the way Berger wants. Customer

relationships are maintained by providing them superior services through their dealers and home

decors. If any complaints are received from the customers regarding the product they provided,



Page | 57

immediately the R&D team rushes to the place where their product has been used and they

collect samples of the product to research and find out the cause of the quality mismatch.

Striving overall to achieve a greater market share:

Within the next 5 years Berger Paints Bangladesh limited wants to increase their revenue

with 100% and they are basically taking all sort of measures needed to achieve this goal.

Key Resources

Brand value and recognition:

Since its arrival in Bangladesh in 1980 Berger has successfully captured the top position

in the paint industry and is still the biggest paint manufacturer and provider of the country.

‗Berger – Color it!‘ motto is harmonizes with any painting or decorative project all across

Bangladesh for every place where paint is required.

Strong R&D sector:

As discussed earlier, Berger possesses high expertise through its qualified personnel and

high tech equipments in their research and development division. By this they develop their

products, come up with various product lines and mixes. Within the paint category they have

profuse number of paint categories which are manufactured for different weather conditions and

surfaces. These are all products of intense research and development expertise.

Strong Manufacturing and Quality control:

Berger Paints Bangladesh Limited manufactures its products in manufacturing plants

located in Dhaka and Chittagong. They import high quality raw materials and manufacture their

products using effective and efficient machineries which are high tech in nature. After

manufacturing the paints, heavy quality control test are undertaken with their advanced methods

to verify if there‘s any deficiency in quality of the produced material.

Wide range of products:



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The wide range of paint categories according to use of paints is a strong product line and

resource that they Berger possesses.

Financial resources:

Berger Paints Bangladesh Ltd. excels in capturing the biggest market share of every product

category they hold onto. Each year ‘s revenue and profit is increasingly and they are aiming for

100% increase in revenue within the next five years. Thus their financial resources are very

strong and investments are high overall.

Strong Distribution Network and countrywide reach:

The distribution of products is done through numerous dealers and eleven main sales depots

owned by Berger in Multiple districts like Dhaka, Chittagong, Rajshahi, Borga and more.

Through this wide network, Berger successfully covers almost all the corners of the country.

Value Propositions

Nation-wide reach of product and services:

Eleven sales depots located in separate districts carry the products of Berger to almost every

edge of the country through huge number of retailers. This makes Berger‘s paints available and

easily accessible to its consumers.

Covering all possible range of segments:

The offerings of Berger diversify into every sphere of the industry, from decorative paints to

industrial, marine and powder coatings. For each segment of consumers depending on the

demographic, geographic or industrial factors, the demand comes as requirement of the target

segments. The response to all these demands are made by providing the target segments the

appropriate category of paints they require. For instance paint needed for a ship and the paint

needed for a school is not the same, as is manufactured per requirement.



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R&D efforts to provide safest paints:

Chemicals that pose health hazards from paints are avoided best by Berger with the help of their

R&D efforts. They strive to create the best mix of paint and as well as paint that is safe for

human beings. Factors like harmful chemicals or unpleasant smell from paints are finely

eradicated through R&D efforts and quality control.

After sales services:

If there is ever any form of deficiency in the paints sold to the consumers, Berger‘s R&D team

immediately collects the sample of the product with defect and tests those to figure out the cause

of the problem. Customers are also provided with quality replacements afterwards.

Overall View of Value Proposition:

Berger Paints Bangladesh Limited, being the biggest painting company of the country, holds a

share of more than fifty percent in the market. It grew to such huge stature by capturing value

from customers and by providing value to them. Berger recognizes its diverse amount of

customer segments from all over the country and strives to fulfill their needs according to the

demands specified by each segment. Just with the name itself, Berger is recalled before any other

name in the country because of its strong brand value and image. The world class research and

development division of Berger experiments and guides the production of different categories of

paint needed for different purposes and segments. Demand itself is created by Berger‘s

marketing efforts through its dealers in regions they need to cover. High quality of product is

ensured by quality control tests after manufacturing and safe paints that are not hazardous or

irritating to human beings are marketed while quality remains superior. After sales services

regarding any defect, shortcoming or inefficiency of product is given to the customers

immediately. Berger also tries to communicate a superior value it provides, which is lead free

and environment friendly paints.



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Customer Relationships

Berger Paints Bangladesh has a huge consumer base as already mentioned in the

previous sections. They maintain strong ties with customers by providing expert services both

before purchasing and after purchasing their products. The services like the ones which Berger

Home Décor provides help maintain good relationship with customers by understanding and

responding to customer specific needs and serving according to the requirements. Sales

incentives are often given. Various campaigns like art competitions for handicapped children,

free coloring of street islands and many other events and programs are sponsored by Berger to

provide the customers both the emotional appeals and product category benefits. A lot of

industries need constant supply of paints. Incentives for high volume purchase is given to them

and through actions, the overall quality control and superiority of Berger paints is always

communicated over and over to their customers. Some major events and programs recently

carries out by Berger are:

Regional Program for Berger‘s dealers and their families.

Contribution for Welfare of autistic children.

Berger Award for Excellence in Architecture.

Berger Diamond Jholok Scheme. (An attractive scheme titled for valued dealers)

Berger Paints National ‗A‘ Chess Championship.

Channels

Berger Paints has their main manufacturing plants in Dhaka and Chittagong. For the distribution

of the products, an overall of eleven sales depots are there in the entire Bangladesh. The

locations of these depots are strategic locations which are Dhaka, Chittagong, Rajshahi, Khulna,

Bogra, Sylhet, Comilla, Mymensingh, Barisal, Rangpur and Feni. These depots help and in fact

enable them to cater to all the parts of the country. Various retailers and dealers are used to sell

their products and the coverage is almost as near strong as reaching all the corners of the

country. Home Decor service outlets are also located in some Urban areas which provide

customers with expert home decorating ideas and designs and also provides products needed for

decoration.



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Customer Segments

Berger serves numerous market segments to co-operate in the interest of the overall company

in a manner that is socially responsible. To make the segmentation simpler we can say that

the major segments consist of three parts, which are Decorative, Industrial and Marine.

Around more than 80% of the segment consists of the decorative segment whereas the

industrial and marine covers around 15% and 5%. So it is evident that the major focus of the

company is on the decorative segment which generates the biggest portion of revenue for

Berger and this segment consists of homes, offices, schools, malls, etc. As Berger market

share in the synthetic enamel category is increasing gradually, its continuing success will

result in significant growth of the overall market share of the company. This enables Berger

to fight its competitors with a strong ground to stand on

Cost Structure

Fixed Costs:

As a paint manufacturer, Berger has to incur a lot of fixed cost coming from land,

equipments, rent and all the costs associated with manufacturing and running the

company.

Agent banks:

Banks that control the accounts of Berger and all its affairs have to be paid for their

services.

Supplies from exporters from abroad:

To provide superior quality, Berger imports raw materials that make up the ingredients

for them to manufacture paints which are of international standard. MITSUI, MOBIL,



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DUPONT, BASF are examples of companies which provide them with raw materials

from outside the country. So, these exporters forms a big part of the cost structure.

Supplies from within the country:

There are abundant suppliers of necessary materials within the country as well for Berger

for whom costs are incurred. Padma Oil for example, due to their massive reserve and

comparatively lower price, supplies Berger with oil.

Wages and Salaries:

Employee wages and salaries plus incentives are costs for Berger.

Advertising agencies:

Good amount of payment is required for the advertisements created by advertising

agencies.

Dealers/Retailers:

Costs incurred in capturing good relationship with dealers and creating channels through

them. Incentives are also given at times.

Technological Support Providers:

Berger has a wide variety of sectors where technology is more than vital. To support

these technologies, Berger also has to incur high costs.

Revenue Streams

Products:

Berger‘s major revenue streams come from their products. Selling of various categories

of paints makes up the biggest portion of the revenue. Along with these Berger also sells



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products like paint brushes and adhesives. The selling is carried out by the dealers in each

district and to all the consumers of the decorative, industrial and marine segments.

Services:

Berger‘s revenues also flow in from their Home Décor services where expert advice and

designs ideas are provided by the personnel.

Events and Programs:

As mentioned earlier, Berger organizes and sponsors a lot of events, competitions and

programs, most of which are to create awareness. But some of these, as aired in

televisions and purchased by audiences, do generate few revenues for the company.



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Current Business Model of BPBL



Page | 65

Core Competency:

` Berger‘s core competency is made up of Research and Development, Wide Range of

Product and Quality.

The reason Berger became this huge company which everyone recognizes and also

recalls whenever they are thinking about paint products is due to the core competency. Firstly

their Quality is just the very best available in the market. The competitors of Berger cannot

simply match the quality of their paint products. They use the most advanced equipment in their

production facility as well as top quality raw materials from abroad to ensure the quality is not

compromised at any cost.

The next component is Research and Development. With the bright minds working for

their R&D, Berger is able to innovate new products every now and then to satisfy a different

needs of the customer.

The range of products available from Berger, specially the paint products is very wide.

Starting from paints for interior surfaces to exterior surfaces to wood, metal and etc. This unique

benefit is only provided by Berger. No other competitor is able to provide customers with such

wide variety of products for each of their needs.

Research and

Development

Wide Range

of ProductQuality

Core

Competenc



Page | 66

Corporate Level Strategy:

Mission Statement:

―We shall increase our turnover by 100 percent in every five years. We shall remain

socially committed ethical company.‖

Vertical Integration:

Berger Paints Bangladesh perused Backward Vertical Integration strategy. They acquired

the company Jenson & Nicholson Bangladesh Limited (JNBL). JNBL used to be a trader and

indenter of paint raw materials. JNBL also produced and marketed tin containers and painting of

tin sheets. So this subsidiary now helps to pack the paints produced by Berger into the tin

containers.

Berger

VerticalIntegration

HorizontalIntegration

StrategicAlliance

StrategicOutsourcing

IT ServicesMarketing

Services

Diversification



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Horizontal Integration:

Berger formed a joint venture in association with the company Becker Industrial

Coatings Holding AB from Sweden. The newly formed joint venture is called Berger Becker

Bangladesh Limited. Becker is a manufacturer of high quality coil coatings and Berger formed

this joint venture to endeavor excellence and better service for the company.

Strategic Alliance:

Berger formed strategic alliance with the American company PPG Industries. PPG

Industries is the market leader in its origin country. They operate using the leading edge

technology to develop their products. The strategic alliance gives Berger the exclusive right for

distributing PPG Industries‘ paint solutions for vehicles. The brands distributed in Bangladesh

include NexaAutocolor, Bilux, ACS and V-Fleet.

Strategic Outsourcing:

In order to maintain the best quality, Berger gives its full focus on the production of the

core product. Many of their other value adding activities are outsourced to different

organizations that are specialized in doing those specific job.

IT services:

Some of the technological specialties required by Berger are outsourced. Those services include

Internet based IT service, hardware support and etc.

i. Amra Networks Limited

Amra networks Limited is a company that specializes in giving Internet, IT and

hardware based services. Berger outsources many of their IT and hardware related

tasks from Amra Networks.

ii. Smart Technologies BD Limited

Smart technologies BD Limited is large company that sells computer hardware to

home users and corporate clients. They also offer specialized services for corporate

clients. Berger outsources some of their IT and hardware related services from Smart

Tech.



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iii. SEP India

SEP is a company operating in India that serves corporate clients with IT based

activities. SEP fulfills some of Berger‘s IT and Internet based service requirements.

Marketing Services:

Berger outsources many of their marketing activities to 3rd party. These activities include making

of advertisement and public relations activities.

i. Grey

Grey is an independent advertising firm that specializes in making creative

advertisement for different organizations. Berger‘s marketers prepare the marketing

program/campaign and then Grey makes the advertisement based on Berger‘s

requirements.

ii. Unitrend Limited

Unitrend is an advertising firm. Just like Grey Berger produces many of their

advertisement from Unitrend Limited.

iii. One Step Limited

Many of Berger‘s public relation activities are organized by One Step Limited. Those

activities includes arrangement of art competition, making awareness of the brand etc.

iv. Uttara Colors

Berger outsources some of their marketing and public relation activities to Uttara

Colors. Uttara Colors makes novelty products like T-Shirts, Calendars etc.

incorporating Berger Brand name.

Diversification:

Berger is known for its top notch paint products for verity of surfaces and is also themarket leader in Bangladesh Market. While being successful in the paints industry, Berger

Bangladesh decided to expand their product range from paint to other new products. They

include:



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PowerBond:

In 2007 Berger introduced a new brand named PowerBond which consists adhesive products.

These adhesives are used primarily for furniture.

Feather:

Berger introduced painting brush in 2009 and painting rollers in 2011. These products are

marketed with the brand name Feather.

As Berger is now not only in the paints industry but also diversified into other products

like that are related to paints like brush and rollers and unrelated products like furniture

adhesives, we can say that Berger perused both Related and Unrelated Diversification.

Relationship between Corporate Level Strategy and the

Mission Statement:

As per Berger‘s mission statement, they want to increase their turnover by 100% every

five years. In order to accomplish that, Berger diversified their business into new industry to

generate more revenue. The introduction of painting tools and adhesive products definitely helps

them increase the revenue they used to get just from selling paint products.

Business level strategy

An organization uses its core competencies to satisfy customer needs and preferences to

achieve above average returns. This process is done by creating a value chain, which is done at

the business level and is a part of business level strategy. Business level strategy focuses onactions to provide as much value as possible to its customers to gain competitive advantage by

exploiting the core competencies in specific product market.

Berger‘s core competency is made up of Research and Development, Wide Range of

Product and Quality.



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Business

levelstrategy

Keyissues

Who?People of

Bangladesh

Different

needs

What?Painting and

colouring

How?

Diversified

products

Quality

InnovationGeneric

B.L.S.

Differentiationstrategy

Broad market

Differentiatedproduct range

Valuecreationfrontier

Quality as

excellence

High quality andinnovative products

Customerresponsiveness

Life-

cycle Growth

stage

Hugeinvestments

Increasesales

Grab marketshare

Huge

competition

SeveralB.L.S.

Diversifiedproductrange

All overBangladesh

ANSOFF matrix

Market penetrationstrategy

Product development

strategy

Market development

strategyDiversification

strategy

BCGmatrix

Star

High growth rate

High market share

Valuechain

Satisfied

customer



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Key issues of business level strategy

There are key issues of business level strategy which are concerned about the customers

of an organization and satisfying customers is the foundation of successful business level

strategies. Therefore before discussing about the strategy of Berger (BD), key issues are

discussed below:

1. Who will be served?

The ultimate objective of Berger is to ensure that it provides painting facilities of different needs

and requirements to entire Bangladesh – to its people. Berger has wide range of products (paint

being the core product and paint brush and roller and adhesive are in line) and services available

for all the people with different needs. In fact, today, when painting comes into consideration,

people first think of Berger. But it is the price of the paint which is comparatively higher than its

competitors and this creates a barrier for low income group to cross. This is comparative high

Who will be

served?

•People who needspainting solution

•With different typesof needs

What needs will

be served?

•Needs of paintingand colouring surface

How those needs

to be satisfied?

•Diversified productline

•Quality•Innovation



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price sometimes eliminates the low income people from being served. Otherwise the paint is

available for anyone who can afford it.

2. What needs to be satisfied?

Berger wants to fulfil the painting needs of people across the country utilising its resources,

R&D, innovation, customer service etc. Berger‘s theme is to paint Bangladesh – in other word to

supply all people with paint whenever painting a surface comes into consideration. It is also that,

unlike most of the paint manufacturer in Bangladesh, Berger has differentiated products and

services, which helps the company to serve the customers with even more options.

3. How those needs to be satisfied?

Berger has the best supply chain management as far as paint manufacturing industry is

concerned. Through its strong distribution channels and dealers, Berger is capable of reaching its

customers easily than any other paint manufacturers in the country. Availability is not the only

way to satisfy the needs for paint but the company‘s innovation, R&D, customer services help

the company to satisfy the customers and hence satisfy their needs.

Generic Business Level Strategy



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Fig: Five Generic Business Level Strategy

Berger is serving a broad market, in fact, the entire Bangladesh – including consumers

and business consumers, using its capabilities to create value for customers on an industry-wide

basis. Among five generic business level strategies, Berger falls under differentiation strategy

as the company is well capable of differentiating its products in terms of quality and wide range

of products and customer service through Berger Décor and serving a broad market. Serving a

broad market with differentiated products and service is, of course, a competitive advantage for

Berger, which puts the company ahead of all the available competitors in the market.

The distinctive competencies include superior brand recognition and country wide supply

facilities and dealers all over the country. Berger is well known for its R&D and innovation

through which the company is capable of bringing in new products with time and improving

quality. The company also provides customized painting facilities through its customer center

Berger Décor and all these make Berger a differentiator in the market, capable of serving theentire nation better than any other companies in the market. Since the price of Berger paints is

comparatively higher than the competitors‘, it cannot fall in the cost leadership strategy despite

being a large company in the industry. Broad market includes those people who prefer quality,

personal designing option and who can afford it. Berger was capable of capturing and serving the

broad market by means of intensive marketing both at consumer level and business level.



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Competitive position and value creation frontier

Fig: Value Creation Frontier

Berger being the differentiator in the generic business level strategy occupies the position

in the value creation frontier which is termed as quality as excellence. This is such a position in

the frontier where Berger falls as the company is capable of providing high quality paint and

services, respond to customer needs faster than any other firms in the market with their

innovative and diversified products and excellent production facilities. All these together are

helping to create a value which no other company in the country has capability to attain with

their current resources and strategy. So this position surely puts Berger in a much higher position

in the market.

Industry Life cycle



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Fig: Stages in the industry life cycle

Paint industry right now in Bangladesh is experiencing a boom and is going through the

growth stage with only around 6 to 8 companies dominating the industry‘s market share. Back

in 2010 the industry went through a double digit growth rate and is still continuing to become

bigger and bigger. From the past 10 years, a radical trend of urbanization has become a

significant issue in Bangladesh which is still increasing drastically. More and more people are

getting educated and are moving towards developed cities including the capital city, Dhaka,

which has the highest amount of immigrants coming in. By the year 2015 the expected

population of the city is forecasted to be as high as 15.7 million. Upsurge in the demand of

shelter for living is giving the real estate companies the big opportunity now to seal their desired

profits these days. Single unit houses are being replaced by multi-storied apartments everywhere

due to the immense concentration of people living in towns nowadays. The real estate industry‘s

growth is in a word, exponential. Following all these factors, the colossal demand faced by the

paint and coating industries is very obvious to happen as painting and coating is a dire necessity

for the newly built constructions. As a result, the paint industry is not only growing in this region

of the developing economy but is also expanding world-wide.

As far as investment is concerned, Berger is making huge investments in R&D, product

development, quality, customer services and distribution channels to grab more market share and

increase sales.



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Fig: ANSOFF Matrix

According to the ANSOFF Matrix, Berger follows all the strategies depending on the

market condition and products‘ stage in the life cycle.

When the products already exist in the existing market, Berger follows market

penetration strategy where mostly it tries to reduce the price of the products and give discounts if

needed both to the consumers and dealers and suppliers. Marketing plays an important part inthis strategy.

When the product is new and Berger wants the existing market to experience the new

product, it follows product development strategy. In this strategy, Berger goes for intensive

marketing both at consumer and business level. For Berger promoting a new product in the

existing market is not that hard job for it has a very good brand image in the country.

Berger follows the market development strategy when it tries to enter a new market segment

with its existing products. Developing a new market is always a tough job but for Berger with its

brand image and reputation, the task becomes comparatively easy.

Finally when entering a new market with a new product comes into consideration, Berger

follows diversification strategy. Highlighting or emphasizing on diversified or differentiated



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products becomes the only option not only for Berger but for any company when they try to

enter a new market with a new product.

Fig: BCG Matrix

The BCG Matrix is based on the product life-cycle theory. The product life cycle of

Berger is in the growth stage with huge potential for the company to increase its sales and

capture even a greater market share. Bangladesh is a developing country with a GDP growth of

above 6%. So there is always a good opportunity for Berger to grow even further and maximize

its potential. At present, Berger is having both high market shares (55%) and a high growth rate

– which is way more than its competitors. It is also that Berger is continuously innovating,

coming up with new products and services all the time which is helping the company to get

greater market share easily. So in the BCG Matrix, Berger is labeled as a star where it is using

high cash as investment and generating high return.

Considerations at the business level strategy

After analyzing the Porter‘s Five Forces, after doing the STEEP analysis and identifying

and then keeping in mind the strengths, weaknesses, opportunities and threats (SWOT) and of

course exploiting the core competencies and capabilities, Berger, like any other well established

businesses, formulate its business level strategies. One of the main stages of business level



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strategy is to formulate the value chain in such a way so that it is capable of creating a high

perceived value in the minds of its customers.

Porter‘s Five Forces, STEEP analysis, SWOT analysis were discussed earlier so are the core

competencies and capabilities. Value chain has also been discussed earlier.

Value Chain

As value chain is formulated, Berger gains some competitive advantage over its competitors.

This value chain is also capable of differentiating Berger in the intense competition that exists in

this market.

Business

Level

Strategy

Porter’s Five

Forces STEEP Analysis SWOT Analysis

Core

Competencies Capabilities

Value chain



Page | 79

Sources of competitive advantage for Berger:

R&D

Continuous innovation

Customer services

Quality

Distribution channels

Environmental friendly paints

Wide market coverage

Customer: their relationship to business level strategy



Page | 80

As a result of being good enough to exploit the core competencies, using the strengths and

capabilities and formulating a value chain, Berger is capable of creating a satisfied customer

base. Customers are satisfied as they are getting new, well diversified paints solution with high

quality and innovation. The R&D of Berger is always concerned about its customers‘ desires and

expectations. The customer service that Berger provides is also a major source that helps to

maintain satisfaction of the customers.

Using the strengths, capabilities and the core competencies, Berger has created a value chain for

which it has a satisfied customer base. But since it is never certain to keep this forever, Berger

needs to consistently monitor its strategy. The value chain is also created keeping the

weaknesses, opportunities and threats in mind. To gain from opportunities and remove the

weaknesses and overcome the threats few changes need to be made at the functional level

strategy.

Value ChainCompetitive

Advantage

Satisfied

customer

New and diversified

paints

High quality

Innovative painting

solutions

Customer services



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Business level strategy helping to achieve corporate level

strategy

The vision of Berger is ―To be the most preferred brand in the industry ensuring consumer

delight.‖ To fulfil this vision, strategies are formulated in the corporate level. And business level

strategies are formulated to help achieve corporate level strategies and hence achieve the vision.

At the corporate level, both unrelated and related diversifications have been made. As a result at

the business level, the managers have to concentrate on the related (painting accessories and

tool) and unrelated products (adhesives) besides concentrating on its core product which is paint.

Although selling the other two types of products other than the core product is not that easy, the

business level strategy is formulated in such a way to make them competitive products in the

market beside its well established paint. At the business level, Berger has to concentrate on its

backward integrated firm as well, which again a decision is made at the corporate level. A good

relation is needed to be maintained for the backward vertical integration made. Berger is also a

sole agent of automotive paints so Berger is also responsible for selling this and creates

competition for this product as well. Different business level strategies are needed to be

formulated for each of the products and hence comply with the corporate level strategies.

Functional Level Strategy

To provide varieties with an affordable price it‘s what the customers look for when they want to

purchase and also when they want to purchase again. Berger is a company that provides many

color variations and designs beyond imagination, and this makes them stand out in the market.

Berger is the heart of the color company, they produce all kinds of paints and it is known thatBerger has been the pioneer company in producing them. The paints include ―Color Bank‖,

―Superior Marine Paints‖, ―Textured Coatings‖, ―Heat Resistant Paints‖, ―Roofing Compounds‖,

―Epoxies‖, and ―Powder Coatings‖. Berger mainly has eleven (11) depots around Bangladesh.

They are located in Dhaka, Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Comilla, Mymensingh,



Page | 82

Barisal, Rangpur, and Feni. These selected areas have enabled Berger in providing their product

all over Bangladesh through various dealers/retailers.

The question may arise why Berger has been doing so well in the market and keeps on

doing the good work. The answer is simple, they study the market. Berger studies every area and

looks what kind of product each area is looking for, what is highest amount of price they are

willing to pay. Berger has made it easy for the consumers by making the things available for

them. The availability of Berger product is inevitable.

Berger products can be found in areas which are posh and also in areas which are

mediocre. The distribution system of Berger is very good. This allows Berger to capture their

market, and maintain reliability. Another strategy they can implement is economies of scale.

This helps them achieve lower cost of production and can restrict any new entrant.

Berger mainly makes transaction with the Dutch Bangla Bank. Berger main account is in

the Standard Chartered Bank.

Berger maintains a certain standard, that their products are similar across the globe. This

ensures quality everywhere.

Divisions and Departments of Berger

Management Division:

Management division of Berger is comprised of 5 units:

Corporate Strategy and Decision Making wing

The corporate people take the decision what needs to be done and what is needed to be

done. They take all the necessary decisions.

Corporate Affairs



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Berger needs to keep in touch with higher officials to keep their operation running

smoothly. The corporate affairs deals with the necessary communications needed to operate the

company.

Market

This division deals with all the brand management and promotion activities of the

company. How the Berger is performing in both outdoor media and indoor media.

Service development and Management

This unit concentrates on how they can develop themselves on their facilities which they

are providing.

Corporate Sales

How much sales Berger is making are in hands of the corporate sales department. This

department also helps in making assumptions for future sales that Berger can anticipate.

Marketing Division:

The marketing division consists of mainly three divisions

Product Development teams:

Berger has invested in R&D more than any other manufacturers belonging to the

same industry in the county. It selects the raw materials from some of the best known

names in the world: MITSUI, MOBIL, DUPONT, HOECHST and BASF etc. The

superior quality of Berger‘s products has been possible because of support from its

advanced plants and an international-standard of strict quality which has been maintained by their product development teams. The teams continuously carries on R&D for:

Development of new products and up-gradation of existing products

Cost reduction without affecting quality

Development of environment-friendly products



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Adaptation and reproduction of collaborator‘s technology

OEM specific products.

For the continuous effort of the product development team, the company was

benefited in various ways such as, Introduction of several new products in the area of

Automotive, Powder Coating, Protective Coating and Architectural Coating. (Annual

Report 2013-2014)

Media and Creative Teams:

Berger has built up its image through advertising (TVCs, RDCs, billboards, print

medias, etc), sponsoring different social and cultural activities. They themselves do not

have any significant media teams; after developing a new product when they find it

necessary to communicate to audience and promote it in Bangladesh, they take help from

some of the firms for media s such as, Grey, Unitrend, who designs and creates

advertisements for promoting Berger and their products and then Berger selects the

desired advertisement. Also, for handling certain PR activities such as creating social

campaigns or awareness programs Berger takes help of One-step.

Marketing Strategies:

They make strategies on depends STP (Segmentation, Target market selection

& positioning) so first it segments its market on the year basis (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) and then product basis. Decorative is the main

product of Berger, it contributes most to their total revenue. Then they select their target

market. After selecting market they position its product by product differentiation,

service differentiation and image differentiation. Their basic Segmentation, Target

Group and Positioning are as follows:

Segment Anyone who can afford their product



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Target Group

Home owners, Professionals, Industry Users, any group who might

require paint and their related product

Positioning Fulfill your imagination of colors

Berger also does Product differentiation on the basis of size, shape, color shade,

convenient size of their paint container, plastic container and so on.

They also differentiate their service by ease of ordering and customer consulting and

delivery :

o With a view to bolstering consumer satisfaction, Berger Paints Bangladesh

Limited has introduced ―Berger Home Décor‖ on June 15, 2002 through which

one can get an array of services pertaining to painting. (Report on Marketing

Strategies of Berger Paints Bangladesh Limited)

8ps in Marketing

Product:

The product range of Berger includes: Decorative, Industrial, Marine, Powder

Coating, Adhesive, Textile Products, Auto Refinish, Wood Coating, Pre Treatment

Chemical, Brush & Rollers, Mr. Expert Construction Chemical, Breathe Easy.

Berger markets both water based and solvent based paints in our country. Beside this

Berger also market Cement paint which can be used for exterior wall coating. In addition to

that Berger also markets small quantity of powder coating paint. Paint can be divided into

various types by considering different aspects. Painting is mainly of three categories: Decorative (exterior/interior), Industrial, Marine

From the application sequence, paints can be categorized as: Primer, under coat, finish

coat

Paints can be divided into two categories according to thinner/ solvent usage: water-

based, solvent-based



Page | 86

The famous brands of Berger are given below: it is to be noted that all these are market

leader in their respective category:

Berger Paints Produces decorative, industrial, marine, coatings along with

binders/different polymers (for paints and textile industry) and adhesive in its two factories

located in Dhaka and Chittagong. The factories employ modern technologies for the purpose

that includes automatic and semi-automatic production and filling lines. Production and quality

testing machine from famous makers in Asia, Europe and America ensures precision of

operations and enviable quality of the product. Raw materials of consistent quality from

renowned brands are being used and the best of theprofessionals in the industry oversee the

production and quality assurance operations. Berger thus ensures manufacture of the best

quality products at a competitive cost employing green manufacturing techniques.

Price:

Price strategy of Berger can be spelled out in following manner. ―Provide high quality

product at highly affordable price‖. At some places Berger had to change higher price than that

of their competitor due to strict Compliance of quality and government financial law. Beside

this Berger also consider Commissions / Discount to Dealers and Retailers while preparing the

pricing strategy. Berger supplies their product to Dealers through some establishes discount

basis. They also offer some special commission and discount rate for their premium Dealers,

who can cross the benchmark, set by Berger.

Place:



Page | 87

With its strong distribution network, Berger has reached almost every corner of

Bangladesh. The nationwide dealer network, supported by eleven sales depots strategically

located at Dhaka, Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Comilla, Mymensingh, Barisal,

Rangpur and Feni has enabled them to strategically cater to all parts of the country. (Annual

Report, 2013)

Promotion:

Berger generates different slogans with different massages to promote their various

products. In their promotional activities they also promote different messages for theirdifferent products, so that become familiar to their customer. Various promotional tools are

integrated by Berger (360 degree branding) to promote themselves all over the world and also

Bangladesh.

Advertising: Berger undertakes advertising through TV, radio, billboards and print media. For

this, they take the help of firms such as Unitrend and Grey. Berger does different

advertisements tailoring to the needs of different countries including Bangladesh

Public Relations: They also undertake several public relations activities such as, the painted

footpaths in Uttara, Dhaka to create public relations. They also engage themselves in various

CSR activities such as arranging art competitions. For creating social awareness and managing

PR activities in Bangladesh, Berger takes the help of One-step. They also take help of one firm

to make novelty items. i.e gift items for customers.



Page | 88

Sales Promotion: Provides discounts to its dealers and various customers. They also provide

dealers with several incentives to maintain close ties.

People:

Berger paints Bangladesh Ltd, believe that ‗Our People‘ are ‗Our Strength‘. These

people with their hard work, dynamism and creative minds have made the business

successful. They are well trained and have the in-depth knowledge of the business. High

priority is placed in developing human resources. Importance is given on relevant on-the-job,

in-house and external training programs, so that employees are well equipped with necessary

skills. According to the company, Berger Bangladesh‘s culture encourages professionalism,

stimulates teamwork and promotes innovation reinforced with high ethical standard. (Report

on 4ps, Berger)

Processes:

This is related to services offered by Berger paints. They make their own products in

Dhaka Supply Chain Management spans all movement and storage of raw materials, work-in-

process inventory, and finished goods from point-of-origin to point-of-consumption. The

company‘s aim is to optimize and consolidate resources and processes for a low-cost but

efficient, develop and manage simplified and effective supply network to achieve a high level

of service, create a continuous improvement culture driven by performance measures and

reward. Supply Chain management isconsidered as the Company's "Growth Enabler" and

"Cost Optimizer" for which BERGER has restructured the Supply Chain of Berger Paints

Bangladesh Limited to enhance the overall effectiveness as well as efficiency at both

functional and operational level. (bergerbd.com)

Physical Evidence:

In today‘s world physical layout also plays an important role unlike in the past where

factory appearance would not matter at all. Companies need to appeal to its customers by

making changes to their physical layouts according to their changing environments. For Berger

in Bangladesh, they have 11 sales depot through which they supply to the dealers who in turn

sell to the final consumer. However they also have their website which is quite informative and



Page | 89

benefits the consumers as they can see their offered products, and contact Berger for assistance.

In June 2012, they opened ‗Berger Home Décor‘ to provide direct assistance to customers.

Productivity and Quality:

Berger never compromises with their product quality or productivity. Almost most of

their raw materials are imported from abroad. Then, they produce their product in their own

factories in Dhaka, Chittagong. After that, they do not just release the product, rather they do

quality testing and only after proper inspection, they release their product in the market. Even

after purchase, if their customers complain about their products, their R&D team directly goes

to the customer‘s place and try to solve the problem immediately, thus ensuring good quality.

They also try to ensure same good quality as the parent company across

all the countries.

Finance Division

Central Accounts

Central account is an important unit of the finance division dealing with the budget and

fixed assets. The annual budget of various departments is prepared under the close observation

of this unit. They are responsible for keeping the record of accounts payable and receivables

and reporting.

BPBL has their central account in Standard Chartered Bank Limited and Commercial

Bank of Seylonin Bangladesh. For LC, BPBL use both the Citibank N.A. and Standard

Chartered Bank Limited . Dutch-Bangla Bank Limited is used as their third party or agent forany kind of loan or related issues.

Costing and Factoring



Page | 90

This unit forecasts the costing of different departments and resorts them regarding the

expected expenditure of any alternation.

Analysis of materials consumed:

Figures ‗000

2013 2012

Qty - KG Taka Qty – KG Taka

Raw Materials

Resin 864 201,695 733 178,930

Pigments 4,545 1,062,663 4,156 1,125,414

Extenders & White Cements 26,299 474,357 23,239 412,371

Solvents & Oils 9,686 886,569 9,484 838,273

Additives & Chemicals 8,363 1,418,655 7,666 1,337,455

49,757 4,043,939 45,278 3,892,443

Packing Materials 878,208 786,189

4,922,147 4,678,632

Consumption of imported and indigenous materials and stores & spares and the percentage of

each to the total consumption:

Figures ‗000 2013 2012

Taka % Taka %

Imports 3,106,278 63 3,024,270 65

Indigenous 1,815,869 37 1,654,362 35

4,922,147 100 4,678,632 100

Check Consumption

Raw Materials 4,043,939 82 3,892,443 83

Packing Materials 878,208 18 786,189 17

4,922,147 100 4,678,632 100

Stores & Spares 8,764 5,845

4,930,911 4,684,477



Page | 91

Other Costs:

2013 2012

Selling, Distribution and warehousing expenses 1,842,940 1,282,451

Administrative & General Expenses 321,653 276,422

Other Operating Expenses 68,598 62,069

Short Term Investment:

BPBL sometime has surplus fund or idle cash; it does not provide any return for the firm, if

it is invested it can generate some return for the shareholders, so treasury management has

to take short-term investment decision. Short-term investment process has following steps:

Check or forecast surplus fund or idle cash fundRequest and recommend investment

Approve investment request

Receive and compare offer letter which was obtained from investment firms or

financial

institutions

Analyze and evaluate the investment proposal

Select investment firms and accept the proposal

Approve the investment

Sign the agreement with selected financial institutions and archive the documents.

Revenue Assurance

This unit consists of the revenue assurance and fraud management. Revenue assurance

monitors the transactions and assures all protection of the finances. On the other hand, fraud

management protects the fraudulences take place in the daily transactions



Page | 92

Monthly sales in different product of BPBL is given below:

Di vision Dai ly sales Monthl y sales

Colorant 64,390 3,075,379.20

Decorative 14,412,758.05 226,623,218.50

Durocem 1,107,778.60 22,637,121.55

Industrial 472,934.05 19,094,378.84

Marine 985,926.95 19,375,401.79

Suprakoat 69,368.00 5,975,928.00

Total 17,113,153.65 296,781,425.39

Performances over the last five years and value added statement of Berger Paints Bangladesh

Limited have shown below with table.

Part iculars 2013 2012 2011 2010 2009

Turnover 3,480.2 3,065.65 2,410.1 2,121.12 1,737.64

Value Added

Tax (VAT)370,540 331,210 285,903 274,084 216,730

Turnover (Net

off VAT)2,645,210 2,347,650 2,154,652 1,847,032 1,520,907

Gross Profit 810,549 779,689 754,210 729,092 693,710

Profit Before

Tax492,212 440,587 399,045 360,521 316,020

Profit After Tax 271,121 259,450 240,540 227,120 216,448

Taxation

Taxation unit takes care of the tax, VAT and tariffs of the company.



Page | 93

Product Basis Market Share (2013)

Enamel

Almost every company has two category of enamel – premium and economy. Berger

paint‘s premium enamel is Robbialac Superglues Synthetic Enamel and Economy is

Jhilik . Asian paints premium enamel is Apcolite Synthetic Enamel and Economy

is Decora. Generally the sales of Enamel are comparatively high in comparison to the

other category of product irrespective of areas.

The following table shows the market share of Enamel-

Companies Value Sales (%)

Berger 44.60

Asian 19.20

Roxy 15.23

Pailac 9.80

Elite 3.20

Romana 3.54

Uzala .90

Others 3.53

Total 100

Plastic Emulsion

Plastic Emulsion is comparatively higher priced interior emulsion.Generally the areas

where constructions are raising and, plastic Emulsion are highly demanded in these

areas. It is also more demanded in higher class societies. Different companies try to

different product by making it luxury, washable, and vast range of color.



Page | 94

The following table shows the market share of Plastic emulsion-


Berger 40.5

Asian 20.30

Roxy 15.21

Pailac 9.80

Elite 5.65

Romana 3.54

Uzala 1.15

Others 3.85

Total 100

Distemper

Distemper is lower price but higher volume sales product. Generally upper lower class

and middle class societies highly require distemper. All most all companies have

distemper. Distemper is highly demanded whole Dhaka city.

The following table shows the market share of Distemper-


Berger 59.60

Asian 12.32

Roxy 8.3

Pailac 6.30

Elite 4.56

Romana 2.2

Uzala 1.15

Others 5.56

Total 99.96



Page | 95

Exterior Liquid

Exterior liquid is higher quality exterior emulsion. Exterior liquid are introduced in the

market in different brand names. Berger paints exterior liquid are Weather Coat Classic

and weather Coat Long Life. It is highly demanded on VIP area in Dhaka city.

The following table shows the market share of Exterior liquid-


Berger 45.6

Asian 30.2

Roxy 8.30Pailac 2.32

Elite 4

Romana 2.2

Uzala 1.15

Others 6.2

Total 99.95

Cement Paint

Cement paint affords a hard, durable and waterproof surface. Cement paints are

introduced in the market in different brand names. Berger‘s paints Cement paint is

Durocem, Asian paint cement osDecora, Elite paint‘s Cement paint is Elitecem, Bengle

agency‘s cement paint is Snowcem etc. It almost all areas in Dhaka city, this product

are highly required.

The following table shows the market share of Cement-



Page | 96


Berger 55.5

Asian 24.20

Roxy 6.32

Pailac 2.32

Elite 2.2

Romana 1.8

Uzala 1.45

Others 6.20

Total 100

Human Resource Management

Recruitment & Selection Policies

Recruitment &

Selection Policies

RecruitingApplicants

Selection

Process

Promotion

Policies

Transfer

Policies

Training

Policies

Job Evaluation &Analysis

Performance

Appraisal

Pay

Scales

Disciplinary

Training &

Development

Compensation

Bonuses &

Incentives

Allowances



Page | 97

Two of the most important functions of any organization are the recruitment and selection of

employees. The health and wellbeing of an organization depend in large part on a steady flow of

new people. Employees must be hired to fill newly created positions and to replace people who

have left. Acquiring new employees can be a costly and difficult undertaking. It involves the

following four steps:

1. Planning the need for employees

2. Getting appropriate people to apply for positions (recruitment)

3. Deciding whom to hire (selection)

4. Getting the selected people to take the jobs.

Recruitment and Selection process begin in Berger only after the HR Planning has been

made. These plans include both a consideration of the organization‘s needs for people and the

supply of possible people to hire. At BPBL, in order to initiate the procedure of Hiring, there are

3 requirements, which must be met:

Employee Requisition by the Authority or Concern Department:

Whenever there is a vacant position in a department or unit, the departmental head raises

an employee requisition to the Human Resources Division.

Standard of the Quality of the Personnel (Job Description & Job Specification):

The second step is to generate a Man Profile based on the Job Profile provided by the

relevant department. It includes the type of the job, the involved functions, and most importantly

the required qualifications (both educational & professional) to perform the job.

A Planned Recruitment Program:

When the above mentioned steps are completed the HR department takes initiative to

arrange for the proper recruitment procedure.

Recruiting Applicants:



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To be able to hire good people, an organization must have a large number of job

applicants because there are many available people who are easily attracted. For jobs in which

there is an undersupply of people, an organization must expend considerable effort to attract the

right people to fill its job vacancies. Several methods can be used to recruit applicants for a

vacant position. For Recruitment and Selection both sources are examined:

Internal Source:

This includes current employees (promote able/ transferable), Employee Referral etc.

External Source:

This comprises of the whole labor market outside the organization.

After selecting the source, HRD decides on the appropriate media like, Newspaper,

Internet, Notice Board, Agents for publishing the advertisement for Recruitment. In Berger

Paints Bd. Ltd. recently almost all the career opportunities are exposed through web site/

internet. Very few ads are published in the leading newspapers. And some specific job

opportunities (mostly contractual) are circulated in related educational / professional institutes.

Selection Process:

Screening:

Initial Screening of resumes is conducted to match the requirements of the job with the

applicant profiles. Sometimes there are preliminary interviews according to the nature of job.

Employment Interview:

In most of the cases Written Tests are carried out for entry-level jobs.

Applicant Appraisal Form:

A prescribed Application Form has to be filled in before the Interview.

VIVA:



Page | 99

A Viva is conducted after passing the Written Test, if any. 1 / 2 Interviewers from the

related departments along with HR personnel usually conduct the interview session.

Conditional Job Offer:

Depending on the performance of the final interview, few applicants are offered the

respective job.

Physical Examination:

If the individual(s) accept(s) the offer, they are sent for a medical examination. This is

mandatory for all.

Appointment:

If they are found medically fit and eligible, Appointment /Employment Letter are handed

over.

Induction/ Orientation:

The Induction to the new employee takes place after joining. The duration of orientation

program can be for minimum 1 (one) day to maximum 30 (thirty) days depending on the nature

of Job.

This is the actual end of the Selection process.

Promotion Policies

Human Resources Department (HRD) of Berger Paints Bangladesh Ltd. always cares about

the motivational tool-Promotion for its personnel. Promotion Policies of the Company are as

follows:

1. In every year, after conducting the Annual Performance Appraisal (PPAD-Performance

Planning Appraisal & Development), HRD get recommendations for Promotion from the

various Departmental Head‘s.

2. Bases on the selected criteria for the respective personnel, HRD proposes to the Top

Management for approval for Promotion, if any.



Page | 100

3. Berger Paints Bangladesh Ltd. believes in ―Ability and Seniority‖ both for giving

Promotion to the employees.

Transfer Policies

The company may transfer any employee to other Department or to other Offices,

Factories or Depots located in different places in the country at its full discretion according to the

situational demand of the Company.

The Company has 2 Factories, 2 Sales Offices, and 7 Depots in different parts of the

country including its Head Office at Dhaka. Transfer is a normal practice in the Company and

most of them are found horizontal Transfer.

Training Policies

The Human Resources Training section begin its function of providing whatever

Training and Orientation the employees might need in order to make certain that they are well

equipped to perform their duties as per desired level of the Company

After conducting Training Needs Assessment (TNA) or getting the summary of needs

from Annual Appraisal (PPAD), HRD arrange Training for the respective employees. Training

may be different types according to the needs:

1. On-the-Job

2. Off-the-Job

It may be Tailor made Training or Local or International Training according to the needs and

demand of the situation. Berger Paints Bangladesh Ltd. believes in investment of people.

Job Evaluation and Analysis



Page | 101

The Company conducts Job Evaluation & Job Analysis Program as a means of

controlling Wage & Salaries, Equity of Pay, Hiring Decisions, and Appraisal Functions; to have

better Knowledge and control of the employees and to ensure competitiveness in Wage &

Salaries.

For Appraising and Grading the Job, Berger Paints Bangladesh Ltd. practices the

following procedures:

1. Wage & Salary Survey with the similar companies.

2. Made a Guideline or Plan of Salary Range.

3. Analysis, Evaluation, Weighing & Scoring of the information.

a. Observe Survey Result, Company Chart, Questionnaire (if used), Compiled Job

Descriptions (to account for each job being performed in the company), and

chosen Wage & Salary Plan- the Company determine the value or weight on each

Job Descriptions.

b. When Jobs are Evaluated, Written, Scored & Approved, they must then be

maintained on a periodic basis.

Merit Rating/ Performance Appraisal

Berger has a Systematic, and Periodic Appraisal Process to assess its employee‘s

performance. As this is the focus of the recent study, it will be covered in details later on.

Pay Scales

Berger Paints Bangladesh Ltd. is a Private Limited Company. As there is no Government

prescribed Pay Scale for the Private Company, Berger has its own Pay Scale.

There are 16 Grades found on that Pay Scales from Worker to The Managing Director.

But according to the Management of Berger Paints Bangladesh Ltd. it is completely restricted



Page | 102

and prohibited to express their Pay Scale to others in any form. So, it is not possible to attach the

Pay Scale of Berger Paints Bangladesh Ltd. with this report.

But the Management informed that their Pay Scale is Competitive, Consistent and

Commensurate with other similar companies of the country.

Disciplinary Program

The objective of the Disciplinary Program is to make conscious and to motivate the

employee to the extent possible to improve performance and not to indulge in any activity

detrimental to the Company.

Whenever Disciplinary action is required, it is important that the penalty fit the offence

(after assuring that there was in fact an offence) and that the Labour Code be followed with

regard to all Disciplinary actions.

The ―People‖ has been the key success factor that has allowed Berger Paints of

Bangladesh Limited to achieve so much in a short span of time. Thus Management of BPBL

strives to hire, engage and retain talented employees. Human Resources Strategy of BPBL

constantly grows and renews its commitment to meet the career aspiration and priorities of the

employees. Berger Paints of Bangladesh Limited views their employees‘ as mostvaluable capital

of the organization and is endowed with unique qualities and if thoughtfully andinspiringly led

the workforce can bring superior result with creativity. The management of BPBL carefully

identifies potentialfuture leaders amongst its employees and takes extra ordinary effort to build

them.

As a successful and growing company, BPBL provides a lot of facilities to their

employees to motivate them to work. BPBL have two three types of employee:



Page | 103

The facilities that these employees receive are described as follows:

Training and Development

To help the employees perform more effectively in their jobs To prepare the employees for future growth and advancement by providing

supervisory and other management programs.

To building effective work teams through developing staff communications and

interpersonal skills.

Compensation

Cost Effectiveness:

In cost effectiveness the BPBL tries to minimize the costs behind the employees.

It means the employees will be paid in a good margin, but it will also be cost effective for

the organization. Otherwise, if the salaries are paid without any sorts of judgment or

study, then it will be expensive for the organization. Such sort of careful decisions about

Employee

Type

Permanent

ThirdParty

Contractual



Page | 104

pay levels are made for those positions where the employees will get same or lesser

salaries in other job places if they switch their jobs.

Skill-Based Compensation:

In skill based compensation the organization pays for the level of skill of the

employees. These positions are very important for the BPBL. There are shortages of

skillful people in our country. So the BPBL tries to hire skillful employees to serve for

them and help to achieve growth. Skillful people are like diamonds for the BPBL. In this

company these people are paid in a higher range compared to the other positions of the

organization. Top level managers, production officers, technical persons are mainly

labeled as skillful people. Because the technical people help the company with their

production skills, top level managers are counted as the resource persons with vast

knowledge of the production and business sectors. Then the managers are also skilful

persons who have a lot of experiences with other companies and have good

communication skills with well managerial skills to handle all kind of employees of the

company.

In skill based compensation, the skills of the people are emphasized. Their experiences,

knowledge, and other useful skills are paid.

Economic environment:

In today‘s world the economic environment plays a vital role for any

organizations. Whenever the economic conditions affect the whole market, then it is a

huge matter for the BPBL. For example, we are seeing the time of recession, BPBL is

also thinking to cut or minimize the salary levels. But they cannot do this easily as the

pressures will be higher. But they are trying to cope up with the current situation.

Pay for Performance:

BPBL also has plans for pay for performance. Whenever any employees show the

best level of performances, then the bank tries to increase the salaries or give extra



Page | 105

incentives. This enables the good performers to do well in future, and also motivates in a

great deal.

Retention payment:

In retention payment, BPBL tries to hold those employees who are very much

precious for the organization and the other banks or the competitors tend to take them

away with higher lucrative salaries and bonuses. In this sort of payment BPBL tries to

give more payment to this type of employees who are very well performers and have a

huge network of link in the business world to benefit the organization. The aim of this

payment is to make the employees stick with BPBL. The Managers, Assistant Senior

Vice Presidents (ASVP), Assistant Vice Presidents (AVP), Vice Presidents (VP), and

some other position holders are the employees who are paid with this sort of payments.

Motivating payment:

Berger Paints Bangladesh Ltd (BPBL) tries to pay the employees in such a way

that motivates them to work well and makes motivated. In the industrial company, the

work pressures are very high. So the employees are less relaxed with leisure. The BPBL

tries to pay the employees in such a way that never drives the employees to a frustrated

situation. The payments, the bonuses and the incentives are designed in such a manner

that keeps the employees motivated.

Job analysis payment:

In this sort of payment the compensation is designed after conducting the job

analysis. The jobs are analyzed with the KSOs needed, the works included to the

positions, the skills required for the positions. Then the fixtures of the payments are

decided. These are the main ways how the Berger Paints Bangladesh Ltd (BPBL) designs

their compensation packages.



Page | 106

Bonuses and Incentives:

High Salary:

Berger Paints Bangladesh Ltd (BPBL) as a paint industry provides high salary to their

employee. Their salary pay scale in different position is more than any other paint

industry.

More Facility:

Berger Paints Bangladesh Ltd (BPBL) providing the highest facilities to their employees.

Their facilities includes-

• Discount

• BPBL Share

• Foreign training

Discount:

As a BPBL employee he or she always gets some discount in some particular

product. Suppose for the Singer Products the BPBL employees gets 5% discount from the

tagged price. For the Transcom international (electronic products) they get 10% discount.

Berger Paints Bangladesh Ltd (BPBL) Share:

BPBL allows their employees to buy the share through them at a lower price. The

benefit is that if there any loss incurred then the loss will be beard by the BPBL but

forprofit there are no bindings. The employees will get the full percentage of their profit

from the share.

Foreign Training:

Employees always need some training to keep them competitive enough for the

outer world. BPBL sometime provides training for their employees in the foreign

countries.

The training cost fully bear by the company.



Page | 107

Allowances:

In addition to the basic salary there are a number of allowances. Every employee

receives each month as follows:

Housing Rent Allowance:

This is a monthly allowance which is added to their basic salary according to the

respective grade of employee.

Transport Allowance:

This may in the form of a cash payment or the company provides a car for

officers. Executives have the option to cash out the car benefit.

Leave Allowance:

For the leave allowance employees have to apply 2 weeks before and request for

this allowance to be paid. This will be paid according to the respective grade and once in

a year.

Medical Allowance:

Employees are allowed for medical expenses for their spouse/partner and

children. The company will pay up to allowance for medical consultations and

examinations, cost of drugs, medicines, injections, and other appropriate medical

treatment.

Late Shift Allowance:

Certain jobs such as when more production is needed may require working hours

or also may require for starting production shift such as evening or night shift. Staff

working such hours will receive an allowance.



Page | 108

Daily Allowance:

Staff visiting cities outside their home office on official business will be entitled

to a daily allowance to cover incidental expenses such as meals and transport. The

amount will be reduced by 20% if the staff has a lunch provided by the company or

another party and by 40% for dinner. If they arrive late or departing before 3.00 pm, the

allowance will be reduced by 50%.

Leave:

The BPBL employees enjoyed a greater number of leave benefits in a year. Most

of them are paid benefit. Apart from this in a year (365 days) they enjoyed one third (165

days) of it‘s as a leave. The different types of leave include.

Leave fair assistance:

If any employee, suppose takes leave from the organization for one month then he

will get the full month‘s salary with some extra allowances.

Sick Leave:

If someone is absent due to sickness for the period of 3 days or more than they are

required to provide a medical certificate from a registered doctor. In case of absence due

to sickness they must inform your head of department or human resourcedepartment

regarding their inability to attend office.

If they are absent for an extended period due to illness and hospitalized, they are

required to inform human resource department with details so that they can process

employee‘s hospitalize insurance claim.

Maternity Leave:

Female staffs are eligible for maternity leave up to a maximum of 90 days during

their pregnancy. You may take this leave before or after the completion of six weeks

from the day of your delivery.



Page | 109

Any leave of absence on account of maternity which is greater than the maternity

leave entitlements can be adjusted from your annual leave.

Privileged Leave:

As confirmed staff you will be entitled to 7 days leave including weekend and

national holidays at the time of marriage.

Paints:

All permanent employees are entitled to purchase certain quality of paint at 25%

discount on MRP every year and executive are entitled for free paint for painting their

house every three years.

Profit Bonus:

All performance employees of the company are entitled for profit bonus, which is

declared in the AGM.

Target Bonus:

All the employees of the company are entitled for target bonus, which is

determined by the company‘s executive.

Festival Bonus:

All the employees of the company are entitled for different kind of festival bonus.

Like: Eid-ul-fitre, Eid-ul-azha. Durga puja etc. Apart from these facilities they also

provide some end benefit to their employees these include

Provident fund

Gratuity fund

Super vision fund

Other important facilities

Long service award

Promotion



Page | 110

Job evaluation

Long service award:

Long service awards have been instituted as a token of appreciation for an employee‘s

long term of service with the bank. Those who complete 25 years of service with the

bank will receive awards from the CEO at a function that will be organized to felicitate

the long service award recipients.

Promotion:

Employees are rewarded according to their performance. Every employee has a desired

target and their work is designed and forwarded to obtain those desired target. When

employees fulfill their target their level is increased. They are promoted to one grade to

another grade.

Employees‟ perf ormance evaluation:

BPBL strictly follows their rules and regulations to make the performance evaluation.

They evaluate their employees based on their performance. If they found the positive

result from the performance evaluation then they just increase the level or grade of that

employee. And employees get internally motivated to do give the better performance

because they know that their career development depends on the performance evaluation.

And this performance evaluation is fair and clear so they feel motivated. As they follow

their rules strictly so, there is no chance of making mistake about any one‘s evaluation.

Safety Health and Environment (SHE):

Safety Health and Environment (SHE) is an independent department in Berger Paints.

SHE has very significance role in such a big industry where hundreds of machineries are

in motion day and night. Enormous electric power is being used every corner of the

factory. Hazardous and non-hazardous chemical are the main raw materials for the

production. There are ample chances for accidents and injuries or damage of the

equipment if one works unsafely or without taking pre-caution. That‘s why SHE has a

vital role for the safety of the employees, equipment and environment as well.



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Linking Resources, Core Competency, Capabilities with

Functional Level Strategies for Value Creation

For a company to gain competitive advantage, it must do so by making efficient and innovative

use of both its resources and capabilities, to build core-competencies, which through the

im plementation of effective strategies can be transformed into the company‘s comparative

advantage.

The resources of BPBL include:

BPBL has very high skilled, energetic, hardworking and motivated human resources.

Strong Customer Base

Brand Value and recognition

Financial resources

Accessibility


The capabilities of BPBL include:

Marketing and Branding

Maintaining customer relationship

Convenient and accessible to customers

Availability of cash

Exclusive access to high grade natural resources

Favorable access to distribution networks

Continuously fulfill demands of customers

Country wide coverage Strong network of agents

The above capabilities and resources have enabled BPBL to develop core competencies of

Research and Development, Wide Range of Product and Quality.



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The Quality is so best that the competitors of Berger cannot simply match the quality of

their paint products. Berger use the most advanced equipment in their production facility as well

as top quality raw materials from abroad to ensure the quality is not compromised at any cost.

The R&D of Berger is able to innovate new products every now and then to satisfy a different

needs of the customer.

The range of products available from Berger, specially the paint products is very wide.

Starting from paints for interior surfaces to exterior surfaces to wood, metal and etc. This unique

benefit is only provided by Berger. No other competitor is able to provide customers with such

wide variety of products for each of their needs.

Now BPBL has been able to maintain and sustain their competitive advantage through

the following means:

Superior efficiency:

BPBL have superior efficiency of fulfilling the demand of each of their customer

segment by developing new products. Whenever and wherever they find out demand they use all

forces to efficiently capture the market. If they are required, they hire more agents, train their

agents, and compensate them to supply their products to the customers.

Superior Quality:

BPBL maintains superior quality by their Quality Control Department which evaluates

their products and ensure their unique benefit in their products. The quality of their product is

solely managed by Berger.

Innovation:

BPBL is well-known for their innovation of their different categories of products which

satisfies the demand of their customer segments. The R&D team of Berger brings out the idea of



Page | 113

new products whenever a demand rises among the customers so that Berger can capture the

market segment. This is how, Berger has developed so many product verities.

Superior Customer Responsiveness:

Berger has tried to provide superior customer responsiveness with the help of their

massive network of their agents, their home decors, and their color banks across Bangladesh. On

top of that their customers can easily communicate with them through online.

Berger also conduct many awareness campaigns as well as art competitions and concerts. To

build strong customer relationship Berger have their third party to support them for conducting

these campaigns. Berger also recover any loss occurred by them to their customers and take the

customers complaint seriously.



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Fig: Functional Level Strategy

Resources:

Strong Customer Base

Brand Value andrecognition

Financial resources

Accessibility


Motivated Human

Resources

Capabilities:

Marketing and Branding

Customer relationship

Convenient and accessible

to customers

Availability of cash

Exclusive access to high

grade natural resources

Favorable access to

distribution networks

Continuously fulfill

demands of customers

Country wide coverage

Strong network of agents

Core Competencies:

Superior Quality

Wide Range of Product

Strong Research and

Development

Differentiation Strategyfor

Broad Market

Superior

Profitability

More Segments tofulfill demands

Strategies for

Innovation

Efficiency

Quality

To be the Benchmark in

the Paint Industry by

creating Target



Page | 115

Company Structure

Marketing Department:

Until 1990, business practice of the Berger Paints Bangladesh Ltd. was very much

conservative in terms of market presence. In 1993, marketing department started. Thereafter

Berger has been growing very rapidly in terms of market share and sales growth. In 1994, just

after the year of launching marketing department, sales growth was 34%. Berger is enjoying

48% share of the total paint market and established itself as the champion of the market through

its commitment, offering the most quality paint and providing the maximum value for

customers‘ money, to the customers.

Total business of the Berger Paints Bangladesh Ltd. is categorized into three major heads.

These are:a. Decorative

b. Industrial

c. Marine

Marketing

Department

Sales

Department

Finance

Department

R&D

Department

P&M

Department

Production

Department

3 MajorHeads:

- Decorative- Industrial

- Marine

2 MajorHeads:

- GSM -DecorativeSales Dept.

- Manager -

Industrial andMarine SalesDept.

Director

- CostAccountantManager

- FinancialController

- Accounts

Manager



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Although three categories comprise the total business of Berger, contribution of the

Decorative sector is 85% (app.) of the total turnover. Because of its contribution, Decorative is

considered the main business of the organization and is getting more priority.

Three categories of paints are promoted to the market under three brand names. Decorative is

offered to the market under the brand name of ―Robbialac‖ and Industrial & Marine are of

―Jensolin‖ & ―Seaborne‖ respectively. Marketing department handles mainly decorative paints.

Major Activities:

a) Estimation of Sales Growth

b) Preparing Marketing Mix

c) Promotion/Communication Mix

Sales Department:

This department is broadly categorized into two parts: Decorative and Industrial & Marine.

These are respectively discussed in brief below

Decorative Sales Department:

This department is headed by Director Operations who is assisted by GSM (Decorative).

7 strategic depots manage sales activities all over the country. Activities of all seven strategic

depots are monitored and controlled by the Sales (Decorative) Office situated in Corporate

Office.

Major Activities of Decorati ve 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& Shades of

Color.

To develop sales strategies to achieve sales budget.



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To respond to complaints of customers efficiently and take necessary action(s) 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 company 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.

Sales (Industrial and Marine):

This department is headed by Director Operations who is assisted by the Manager –

Industrial & Marine for all the activities & performances of the department. These business

groups contribute 15% (app.) of the total turnover of the BPBL. All paints of these groups are

offered to the customers under two categories: premium products are under two different Brand

names that is, Jensolin and Seaborne for Industrial and Marine paints respectively and the other

category is Economy products. Economy products are represented by another two different

Brand names Berger Industrial and Berger Marine.

Special Features of the Business Groups in BPBL

All customers are institutional

Direct marketing (Personal Selling) is the only mean to promote the brand.

More resistance power than decorative products.

These two categories include high performance coating paints and other protective

coatings.



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Lower discount rate than decorative paints. 2% discount on MRP for Industrial paints and

3% for Marine paints are offered, whereas discount rate is 5% for decorative paints.

Number of customer is limited. But consumption per customer is much higher in this area

than decorative area.

Incentives are rarely offered to the customers. Sometimes, volume incentives are offered

to the regular customers during the buying of bulk quantities.

Institutional customers, if they buy decorative paints, buy decorative paints through

Industrial and Marine sales personnel.

Industrial Sector:

Only in Dhaka and Chittagong sales area, individual sales personnel promote the paints

to the current and potential customers directly. In other areas, sales people of Decorative

communicate with prospects and collect order & place it to the concerned department of

industrial paints. Sales people engaged in Dhaka and Ctg. with Industrial Paint perform the

duties as same as the sales people of decorative. Some dealers in Dhaka and Ctg. are involved

with the trade of industrial paints with smaller quantities.

Types of Customers:

Industrial Customers are of two types:

OEM customers: This is the Original Equipment Manufacturer who uses the paint as the raw

material and eventually buys frequently.

Protective Coating (PC): This group is the infrequent buyers of the industrial brands. Most of

their consumption is for the maintenance purpose.

Marine Sector:

Like Industrial Paints, individual sales personnel are engaged in Dhaka and Ctg. to

communicate with the customers. All products are promoted in the market under ―Seaborne‖ and

―Berger Marine‖ brand name. Most of the transactions (large volume) take place through

personal selling although 12 dealers in Dhaka & 6/7 dealers in Ctg. offer Marine Paints to the

customers.



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Finance Department:

Director – Finance who is assisted by Financial Controller (FC), Accounts Manager and Cost

Accountant Manager, heads finance department. Three sections – finance, personal accounts and

costing, perform all activities of the department.

Activities of F inance Section:

Financial Controller is responsible for all the activities of this section. This section handles

absolute debtors (customer related) related all activities.

Bill Payment System:

Bills are considered as external & internal. Payment of internal bill is made as early as possible.

But external bills are paid twice, 10th and 25th day of the month, in a month. All bills are

approved by DFM provided that there is no provision for VAT and amount of bill is not more

than Tk. 5000. If the amount of bill is more than Tk. 5000 to Tk. 10,000, then, GM decides on

the bill. Thereafter, only authorized person to approve the billing amount is MD.

Private Accounts Section:

An Accounts Manager who deals with Salary Payment, Group Insurance, Foreign Affairs and

issues related with corporate heads this section.

Costing Section:

A Cost Accountant Manager who is assisted by four Officers heads this section. Main function

of this section is to find out per liter Production Cost of a paint category. This section finds out

Gross Profit (GP=MRP – Dealers‘ Commission – Total Production Cost) of a specific category of

paints and shows more than one price points by considering different GM percentage on total

production cost of that paint. In addition, this section calculates the total costing and GP of PTC

(Pre Treatment Chemical) and other finished goods imported from abroad. Moreover, this

section performs inventory valuation activities including factories and depots. Costing section

prepares profitability analysis report for most of the paints. If profitability of any paint is not

satisfactory they inform relevant authority.

Other Sections in Finance Department:

VAT and Audit activities are also included in Finance Department. Activities of these two

sections are briefly described below:



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Audit:

An internal auditor performs audit-related activities in Berger. The person who is responsible for

auditing, reports to Director- Finance directly. External auditors are also employed for time-to-

time basis. Internal auditor audits sales depots twice in a year, generally in June & November.

And yearly audit of total organization takes place once in a year.

VAT:

This section assesses VAT amount that has to be deposited to Govt. exchequer on the bill

payable to the external parties. Moreover, some external parties deposit VAT amount in favor of

Berger Paints and that amount need to be adjusted with financial activities of Berger. An

Assistant Manager, reporting directly to the Director-Finance. and an Officer manage the

activities of the section.

Planning and Materials Department:

Main responsibility of this department is to collect raw materials at right time from right vendors

at right price and at right quantity. Moreover, this department also purchases required machinery

and other stationery necessary for the organization.

Functions of P & M Department:

To find out material and machinery sources: This department continuously scans the

Internet, Literatures and other related publications to identify new sources from where

raw materials & machinery can be collected.

To communicate with the sources: They communicate with the sources and collect

information regarding price, quality, terms and conditions of payment & other relevant

matters about raw materials and machinery.

To buy raw materials, machinery & other necessary items from internal (domestic) and

external sources.

To develop new vendors: When raw materials source is very much limited, sometimes

buyers have to accept unfavorable terms and conditions because of not having sufficient



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bargaining power. To gain adequate bargaining power this department tries to develop

new vendors in areas where they are in disadvantageous position.

To reduce the cost of raw materials: If access power to different vendors is high, this

department collects raw materials from the substitute vendors to get some types of

advantages (such as lower price) provided that this source meets all other criteria.

To find out substitute raw materials.

To send the sample to R&D for assuring the quality of the raw materials.

To provide support to the Marketing Department in developing container.

To provide new ideas regarding raw materials, packaging, and machinery help to reduce

cost.

To support R&D to make new formulations.

To suggest maintenance department for doing their jobs efficiently.

To buy gift items for marketing department.

To buy shade cards for Marketing Department from India & Singapore.

To collect color bank materials from Italy.

To buy raw materials for Jenson & Nicholson.

Research and Development Department:

R & D is playing very vital role in the operations of Berger Paints Bangladesh Ltd. Their

continuous dedicated efforts help the organization to offer different types of products ranging

from economy paint such as JSE & JSD to premium brand of paint such as Weather Coat (WC)

& LSE to solve different motives of different users

Major Functions :

Product Development: Two type of product development activities are performed by R&D.

Product development activities of R&D are depicted below:

New Product Development

Improvement of Existing Product

Cost Reduction Exercise

Substituting Raw Materials with New Source and New Grade

Complains Handling



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Providing Customer Service

To Train the Personnel of Different Departments

Production Department

The production process consists of the following departments:

Raw Materials Department:

There are various raw materials that are required for producing different paints. These raw

materials are gathered both from local and international sources. At the beginning of the year,

the total projected raw materials requirement is submitted to the department and the department

sources out the raw materials and ensures the availability of the materials at the right time. They

are also responsible for storing and dispatching of the raw materials.

Water-based Plant:

All types of Water-based products are produced in this plant. The major products produced here

are SPD, PSD, APE, LSE, Weather Coat, Tartaruga, Water Sealer and Roofing Compound.

There are 5 types of machine here – TSD1, TSD2, Master Mixture, HSD4 and HSD7.

Solvent-based Plant:

All the solvent-based paints are produced here. The major products are RSE, PSE, Wood

Keeper, Hammer Finish, Epoxy paints, Plastron Sealer, Stoving Paint, Various Primers and all

other solvent-based paints.

Durocem Plant:

As Durocem is a different type of product (offered in powdered shape), a separate plant has been

established for the production of Durocem. As Durocem is basically cement paint, the main raw

material used for producing Durocem is White Cement. The machines that are used for the

production process are basically Ball Mills. There are three Ball Mills in the plant – One with ½

M. Ton capacity and Two with 1 M. Ton capacity.



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Resin Plant:

Resin works as the binder for the solvent-based paints. Resins are of various types and different

types of resins are required for different type of paints. Most of these resins are produced in this

resin plant. But the resin for the Epoxy paints is imported from foreign countries. In this resin

plant twelve types of resins are produced.

Distribution:

Distribution is the way of dispatching the produced items as per the requirement of different

depots. First, the distribution department hands over the container wise requirements of various

products to the plants. Then the distribution department plans the truck loading for different

depots. In this purpose they give the first priority to the Project Requirements, second priority to

the critical requirements of the depots and third priority to other requirements that are not termed

as critical by the depots. During this process, the Dhaka depot is given the most priority, as there

lies a huge volume of business.

Administration:

Administration handles the labors of the factory. The Administration department looks after the

welfare of the labors as well as officers of the factory.

Role of R&D in Production:

R&D is not directly related with the production process. Its main duty is to check the new

options of raw materials, search for better ways of production, developing the guideline for

production of paints and developing new products. But, sometimes R&D gets involved in the

production process as per requirement and solves the problem if any.

FG Planning Department (Distribution):

The organization‘s business philosophy has turned into ―Marketing Concept‖ from the previous

―Sales Concept‖. For every year a target of sales is established by considering current market

size, market growth rate, consumers‘ preference trends, govt.‘s plan to develop infrastructure,

foreign aid available for Socio-economic development of the country, trade policy of the govt.



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and some other issues related with the business of the organization. Then, total yearly target is

broken down into monthly target.

Decorative paints are basically sold through Company‘s registered Dealers, whereas Industrial &

Marine paints are basically sold through personal selling.

Major functions:

To monitor current stock position in the depots

To place indent to the factory

To know the previous month‘s sales and sales month to date

To place additional/minus indent if necessary

To inform the expected delivery date of paints from factory

Corporate Governance

Board of Directors:

Mr. Gerald K Adams

Chairman

Since 2004

Ms. Rupali Chowdhury

Managing Director

Since 2008

Mr. K R Das

Director

Since 1992

Mr. Anil Bhalla

Director

Since 1994

Mr. Subir Bose

Director

Since 1995

Mr. Jean-Claude

Loutreuil

Director

Mr. AbulKhalek

Director

Since 2004



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Background of the Board of Directors:

Mr. Gerald K Adams (Chairman): Adams is a professional company director and also

the founder and MD of a consulting company specializing in strategy and business

development. His directorships include: Berger Paints Bangladesh Ltd., as Chairman;

Berger Paints India Ltd.; Bolix SA (Chairman) and ZORK Pty Ltd. His previous

directorships include Axiom Energy Ltd. and the Joint State of South Australia and

Carnegie Mellon University Advisory Board. Prior executive roles include: Managing

Director of Orica Consumer Products, the leading paint and handyman products company

in Australia and New Zealand; President and CEO of Box USA; Chief Executive of the

Australian corrugated box business of Amcor Fibre Packaging, a part of Amcor Limited;

Vice President and Director, Business Development, of Kraft Foods, Asia-Pacific; and

consultant, the Boston Consulting Group. He was educated at the Harvard Business

School (Cambridge, Mass.) from 1977-79, and the University of Washington (Seattle,

Washington) from 1971-75. Mr. Adams was born in 1953 in the US and now resides inAustralia.

Ms. Rupali Chowdhury (Managing Director): Rupali Chowdhury was born in 1960.

She is an MBA from IBA, University of Dhaka, and completed her Graduation with

Honors in Chemistry from the University of Chittagong. She started her career with the

multinational pharmaceutical & chemical Company, ‗Ciba Geigy (Bangladesh) Limited‘,

in 1984 as Senior Officer- Planning Information and Control and worked there for about

six and a half years. She was Brand Manager while leaving Ciba Geigy (Bangladesh)

Limited in 1990. Ms. Rupali Chowdhury joined Berger Paints Bangladesh Limited in

1990 as Planning Manager and during her tenure she worked for various departments

such as Marketing, Sales, Distribution, Planning and Systems under different supervisory

capacities. Ms. Chowdhury was promoted to the position of Managing Director of the



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Company on 1 January 2008. She is also Chairman & Managing Director of Jenson &

Nicholson (Bangladesh) Limited, a 100% subsidiary of Berger Paints Bangladesh

Limited. She is involved with different trade bodies including Foreign Investors‘

Chamber of Commerce & Industries of Bangladesh (FICCI) wherein she is a member of

the Executive Committee.

Mr. K. R. Das (Director): K.R. Das was born in India in 1931. On completion of his

graduation in science with honors, he started his career with Gillanders Arbuthnot & Co

limited in 1951. He was Head of Pigments Division when he left Gillanders in 1965. Mr.

Das joined Jenson & Nicholson Limited in 1965 and left the company in 1975 as General

Sales Manager after a long 10 years of service. Mr. Das joined Berger Paints India

Limited in 1975 and after 20 years of service retired in 1994 as Executive Director. Mr.

Das has been working as Management Consultant since 1994. He is a director of Berger

Paints India Limited, and Chairman of King & Company Homeo Chemist (Pvt.) Limited,

India and RDG Systems (Pvt.) Ltd, India. Mr. Das is also the Regional Supervisory

Director of Berger Paints Bangladesh Limited.

Mr. Anil Bhalla (Director): Anil Bhalla was born in India in 1946. He graduated in

Economics (Hons) from the University of Delhi and is a Fellow Chartered Accountant.

He is the managing partner of JC Bhalla& Co., a reputed Chartered Accountants firm of

India. He has four decades of experience in professional services in both India and

abroad. Mr. Bhalla has a wide range of experience in auditing, joint venture consultancy,

tax consultancy, strategic business consultancy, business valuations, and mergers &

acquisitions. He was a Member of the Northern India Regional Council of the Institute of

Chartered Accountants of India (ICAI) from 1976 to 1979 and it‘s Chairman from 1978

to 1979. He has served ICAI as member of different Committees namely Company law,

Expert advisory and Auditing and Assurance Standards Board. He was an Executive

Committee member of the Income Tax Appellate Tribunal Bar Association of Delhi. He

was President of the Institute of Internal Auditors, Florida, USA Delhi Chapter. He is

also a Director of Berger Paints India Limited.



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Mr. Subir Bose (Director): Subir Bose was born in India in 1949. He is a Chemical

Engineer from the Indian Institute of Technology, Kanpur and completed his post

graduation in Business Administration from the Indian Institute of Management,

Ahmedabad. He started his career with Asian Paints India Limited in 1974. He was the

Industrial Sales Manager while leaving Asian Paints India Limited in 1982. Mr. Bose

joined Abucon Nigeria Limited, Lagos, Nigeria in 1982 and worked there till June 1984.

Mr. Bose returned to India in 1984 and joined Berger Paints India Limited. He was

elevated to the position of Managing Director in July 1994 and has been holding the

position till date.

Mr. Jean-Claude Loutreuil (Director): Mr. Jean-Claude Loutreuil was born in 1945 at

Saint Laurant Sur Mer in France. He is an MBA and has been working for the last 40

years mostly in pharmaceutical and chemical sectors as manager and consultant.

Mr. AbulKhalek (Director): Khalek was born in 1959. He is a Fellow Chartered

Accountant, and has his Masters of Commerce in Accounting from the University of

Dhaka. He joined ‗ProshikaManobikUnnayan Kendra‘, a leading national NGO in 1985

as an Auditor. He was Chief Internal Auditor while leaving Proshika in June 1993. Mr.

Khalek joined Berger Paints Bangladesh Limited in 1993 as Management Accountant.

Over the period, he served the company under different capacities and is presently

holding the position of Director- Finance & Company Secretary. Mr. Khalek is also a

member of the Board of Directors of Jenson & Nicholson (Bangladesh) Limited, a 100%

subsidiary of Berger Paints Bangladesh Limited. Mr. Khalek has been a member of the

Taxation & Corporate Laws Committee of the Institute of Chartered Accountants of

Bangladesh for the last 15 years. He is also serving the Foreign Investors‘ Chamber of

Commerce & Industries of Bangladesh as a member of Import, Tariff & Taxation Sub-

committee for the last 12 years and has served as the convener of its Finance Sub-

committee during the year 2006-2007. He is also serving the Metropolitan Chamber of

Commerce and Industries as member of Taxation and corporate law committee for the

last 2 years. Apart from his service, he has been one of the faculty members of The

Institute of Chartered Accountants of Bangladesh for the last 16 years and has authored a



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good number of articles on trade and commerce. He is also a member of the Institute of

Internal Auditors of Bangladesh.

The Board of Directors are committed to transparency and accountability,

consistent with good corporate governance and practices. They play a pivotal role in

ensuring this across the Group, towards the protection of all their stakeholders including

minority shareholders and partners.

Executive Management Team:

Ms. Rupali Chowdhury

Managing Director

Since 2004

Mr. Abdul Khalek

Director, Finance &

Company Secretary

Mr. NazimuddinHelali

GM - Manufacturing

Md. Mohsin Habib

Chowdhury

GM – Sales &

Mr. Mohammad

AhsunUllah

GM – Treasury &

Mr. Mushfequr Rahman

GM – Human

Resource &

Mr. H. M. RakibUllah

Bashar

GM – Financial

Mr. RashedulHaque

GM – Supply Chain

Md. Abu Nader Al

Mokaddes

GM – Information

Dr. A. S. M. Obaidullah

Mahmud

GM – Research &



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Berger has strong corporate governance. They follow a three step activity to support its corporate

governance:

1. Enhance good practices in financial reporting and risk management

2. Ensure establishment of adequate internal control and compliance with laws and

regulations

3. Ensure that the preparation, presentation and submission of financial statements have been

made in accordance with the prevailing laws, standards and regulations

Corporate Social Responsibility:

Berger has been very environment friendly and very supportive as well. They have been a

constant provider of the society. Berger continued to provide financial and other material aids to

organizations working for the development of autistic and differently challenged children in

Bangladesh.

Some of the activities Berger did are:

Contributed paint for Nishpap School, a school for specially challenged Children in

Chittagong.

Mr. Sabbir Ahmed

GM – Business

Process, Risk &

Mr. Syed Salahuddin

Abu Naser

General Sales Manager

Mr. Anupam Paul

Plant Manager –

Dhaka Factory

Mr. A. K. M.

SadequeNewaz

Head of Marketing

Md. Kawsar Hasan

Plant Manager –

Chittagong Factory

Mr. Syed Mizanur

Rahman

Manager – Human

Mr. A. M. M. Sajjad

Manager – Admin

&Labour Relations



Page | 130

Distributed blankets for severely cold affected people.

Organized the 18th round of Berger Young Painters‘ Art Competition (BYPAC) in

2013 to encourage young talents, also organized a painting competition for autistic

children.

Berger has extended its support in the field of sports also. The company was the title

sponsors of ―Berger Paints 39th national ―A‖ Chess Championship‖ in 2013. Berger Paints also

co-sponsored expeditions to Mount Everest and Kanchonjangha by pioneering mountaineers of

Bangladesh in recent years. The Company also facilitates interns of different academic

backgrounds to let them gain firsthand knowledge and experience of the corporate world, and

thus groom the potential leaders of the society.

Berger is trying to diversify itself in the corporate social responsibility and make an

impact on all aspects in societal needs.

Investors:

Report on activities are carried out by the Audit Committee, including any report made to

the Board of Directors to maximize company‘s long run profitability and profit growth.

Auditors:

Auditors Responsibility

Berger has a very fair audit system. They involve performing procedures to obtain audit

evidence about the amounts and disclosures in the financial statements. The procedures selected

depend on the auditors‘ judgment, including the assessment of the risks of material misstatement

of the financial statements, whether due to fraud or error. In making those risk assessments, the

auditors consider internal control relevant to the entity‘s preparation and fair presentation of the

financial statements in order to design audit procedures that are appropriate in the circumstances,



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but not for the purpose of expressing an opinion on the effectiveness of the entity‘s internal

control.

An audit also includes evaluating the appropriateness of accounting policies used and the

reasonableness of accounting estimates made by management, as well as evaluating the overall

presentation of the financial statements.

Internal Auditor:

BPBL has an internal audit function that acts as an independent appraisal function by

examining and evaluating the adequacy and efficiency of the company‘s system of internal

control. Internal audit resides administratively within the top management‘s organization and

report to the audit committee of the board of directors. This department has all time direct access

to the audit committee without any involvement of the management.

External Auditor:

The external auditor of BPBL are elected annually by their shareholders at the AGM of

the company. The audit committee of the board of directors makes a proposal to the shareholders

in respect of the appointment of the auditor based upon its evaluation of the qualifications and

independence of the auditor proposed for election on an annual basis.

Structure and Control System

Berger focuses well on keeping the activities and behaviors of employees in control to make the

overall organizational activities very efficient. From the corporate level to the sales level

employees, everywhere, Berger tries to empower people in order to stay motivated, deliver



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superior customer service, communicate with the Berger‘s stakeholder s and improve

relationships with them.

Personal Control:

Capabilities of employees are crucial to an organization‘s success. To improve the skills and

understanding of an employee‘s own tasks and responsibilities, managers look at their problems

and direct them with solutions. This occurs by face to face interactions. Employees at Berger

gain more ability to work towards the goals and objectives of the company by getting trained at

work.

Output Control:

Berger Paints Bangladesh Ltd. has got objectives that are very ambitious. For instance, in the

next 5 years, they want to increase their revenue to 100% above of what it is right now. To

achieve these objectives Berger continuously sets short term goals to be accomplished within a

fixed period of time. After this, the output is measured to see whether it matches with the

standards set by the organization. If any mismatch occurs, the causes of problems are analyzed

and activities of employees are controlled in such a way that reduces deficiency in the desired

level of outcome.

Behavior Control:

Berger tries to keep their employees motivated and focused towards the goals and objectives of

the organization. Set of guidelines are there to educate employees about their code of conduct

and the type of behavior expected from them in the organization at various functional levels. To

achieve the goals and objectives set by the company, team work and harmony is encouraged and

emphasized. Continuous innovation and R&D excellence is expected from the employees at all

levels. For this employees are also rewarded with incentives for performance up to the mark.

Berger also takes care of the fact that employees do not get too much stressed out due to work.

For this, they‘re allowed 14 days break from the workplace along than the 16 government

holidays throughout the year.



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Value Chain Analysis:

Primary Activities:

Demand Identification:

Communicate with the Customers:

BPBL follows the demand in the market. They try to find the demand on the

market through their selling points, where customers visit and learn the customers

want and demand.



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Communicate with the Retailers:

BPBL make strong communication with the retailers for serving the demand.

They try to know the market condition and the type of product the customers want

from the retailers through their Sales Force.

Identifying Activities of the Indirect Competitors:

BPBL keep a close look to its indirect competitors move and how these

competitors create value to the customers mind. BPBL have a very strong

marketing and sales department who are responsible for these work. And they

come up with innovative products which attracts the customers.

Evaluating Performance Frequently:

BPBL continuously evaluate their performance by looking into their sales in

every quarterly basis. For this, BPBL have a strong Finance Department who are

responsible for this work.

Searching for Needs in Diverse Corporate Customers:

BPBL try to learn the needs of different market segments and try to relate those

segments with their brands. If it needs, they offer innovative new products.

Research and Development Department are responsible for this crucial work

which can create value in the consumers mind.

R & D Department:

Provide Safest Paints:

BPBL provides quality protective paints which do not affect the customer‘s

environment. R&D Department continuously check it through the support of

Quality Assurance Department.



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Value Creation:

BPBL creates value in the minds of the customers through introducing new

quality products which are creative in design.

Innovative Design:

BPBL introduces products which are innovative and completely new for the

market segment.

Less Smell:

The quality assurance department focus on the products which smell less for the

consumer‘s attraction.

Cost Reduction:

BPBL try lowering the cost with the comparison of their product quality through

continuous development.

Long-lasting:

The main focus of R&D department is to produce product colors which are there

for long-term.

Inbound Logistics:

Factory Size:

They have a very big manufacturing factory size.

Strong Warehousing System:

BPBL has a strong warehousing system where it stores their final products for

supply and their warehouse is strongly protected and maintained.

Technological Advancement:

BPBL has an advanced technological machineries for which they can produce

more and quality products.



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High Quality Raw Materials

BPBL uses the high quality raw materials for its products and they have their

quality assurance department for it.

Importing Raw Materials:

BPBL imports some of the raw materials from abroad as not much of the quality

raw materials are not available in the country for its quality product.

Operations:

Enhancing Customer Segments:

BPBL enhance customer segments by looking into the demands of the customers

from its distributors, retailers, and employees. They develop products in the wants

of customers from the different market segments.

Customer Visit to their Home Décor:

BPBL has their home décor who are responsible for providing strong customer

service and attract customers.

Designing through Customers Want:

They have the R&D Department who develops products focusing on the designs

that the customer wants.

Outbound Logistics:

Diverse and Numerous Market Segments:

BPBL does business in numerous and diverse market segments from paint

industry to glue, gums, and adhesives. They have the marketing channels for this

value creation.

Nation-wide Reach:

BPBL have their distributors and retailers all around the country.



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Diverse Retail Formats:

They have different retail formats to serve different customer segments. They

have online store, home décor, color bank, local retailers, etc.

Strong Distribution Network:

BPBL has a strong distribution network for which they are able to distribute the

product continuously to their consumers.

Marketing & Sales:

Strong Marketing Partners:

They have strong marketing partners who are responsible for marketing in

different ways. Grey and Unitrend are responsible for their TV advertisement.

One step is responsible for making social events.

Social Events:

They have strong association with their marketing and sales partners for which

they continuously support on social events.

Art Competitions:

One Step advertising is responsible for their art competitions and it is held to

create innovation among the children.

Contribution in Development of Residential Areas:

BPBL invests in different residential areas where they can reach out to their target

customers. In Baridhara, Gulshan, Banani, Dhanmondi, etc. they have set up gates

and invested in road ways.

Color Banks, Home Décor, & Outlets:

They have all type of retail segments by which they can contact their customers

and provide service to them.



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Strong Influence on Retailers:

BPBL has a strong influence on retailers for which they can make an impact on

the customers mind.

Incentives to Retailers:

BPBL provides high compensation to their retailers to reach out the customers.

Strong Event Partners:

BPBL has strong event partners who are well-renowned and make creative

advertisements and events.

Services:

After Sales Services:

BPBL provides after sales services through their home décor, color bank, retailrs,

etc.

Providing Experience to the Customers:

They provide direct experience to their customers by showing demo walls, online

support etc.

Call Center:

BPBL has their call center services for which customers can receive the services

and information.

Support Activities:

Firm Infrastructure:

Mitigating Risk:

BPBL tries to mitigate their risk by continuously keeping information about the

market and change.



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Wide Array of Management Expertise Available:

Berger has a strong management expertise who can connect with their sales force

to reach to the customers.

Strong Supplier Network:

They have strong supplier network worldwide and most of their key raw material

are imported from abroad.

Strong Financial Stand:

BPBL has a strong financial stand and receives a huge amount of turnover each

year.

Major Market Share:

BPBL has the largest market share in the country.

Human Resources:

Trained Employees:

BPBL has trained employees who understands the customers demand and act

accordingly. They also are trained very frequently to learn about the change in the

market.

Expert Painters:

BPBL has skilled and expert designers and painters of their own who knows the

customers need.

Training to External Painters:

They provide trainings to some of the external local painters so that they can use

them when they require.

Strong Expertise of Salesperson:



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BPBL has some of the strong salesperson in the paint industry who can make

their product visible to the customers.

Technology Development:

Advanced Machineries:

They have advanced technology and machineries to product high quality

products.

Online Support:

BPBL provide online support to their customers.

Procurement:

All Segments Where Paint can be Used:

BPBL focus on all the segments where paint can be used. They have been

providing all types of colors for this.

Strong held of Marketing Channels

BPBL has a strong held on the marketing channels and most of their marketing

activities are done by the 3rd party.

Strong held of Retailer Channels

They have a strong held of retailer channels by whom they reach to the customers

Strong Supplier Network

BPBL has a very good supplier network who can continuously supply the

products to the customers.



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4P‟s of Strategy:

Position:

Mission: “We shall increase our turnover by 100 percent in every five years. We shall

remain socially committed ethical company.‖

Vision: “To be the most preferred brand in the industry ensuring consumer delight.‖

Values: Berger wants to maximize business through enhanced quality of product,

service, creative marketing and cost efficiency.

Priorities:

Provide excellent quality through inspection and adequate investment.

To maintain its position as the leading paint solutions provider in the country

To provide best customer assistance through specialized services e.g. Berger Home

Décor.

Capture greater share of customer value

Payments:

Continue heavy investment in R&D and technologies for innovating products yet

maintain their standard quality.

Invest in CSR such as protecting the environment, promoting young and creative talents,

contributing to the well being of autistic children, etc.

Performances:

High quality control and efficient R&D teams Higher customer satisfaction through quality product and service

Higher market share through diversification into every sphere of the industry. ( more than

50% market share in Bangladesh)

Increase in turnover and gross profit margin.

Maintain strong ties with dealers.



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SWOT Analysis:

Strengths:

One of Berger‘s core competency is their Research and Development ca pability. By utilizing

their R&D capability along with the help from sophisticated technology and strong financial

resource, they were able to innovate various type of products that meet wide varieties of

customer needs. By doing so, they actually have turned the wide range products into one of their

core competencies, as no competitors have such variety of product offerings in the paints

industry.

Another core competency of Berger is their product quality. With superior product quality and

their efficient distribution channel, Berger was able to capture greater share of the market.

Linking to their superior product quality and the availability of their product all over the country,

they have developed a very strong brand image. Actually their brand is so well positioned in the

customer‘s mind that whenever they think of paint, they instantly picture Berger in their mind.

Some of Berger‘s competitors share common strengths, but the fact is Berger has more or less all

of their competitors strength combined. This gives Berger a competitive edge. And using this

edge Berger should be able to avail the opportunities and tackle their threats.

Weakness:

In order to maintain the very best quality of their products, Berger needs a certain quality of raw

materials which is not available in Bangladesh. So they have to source these materials from

abroad, which leads to a longer time in delivery of goods and also incurs more cost. Thus Berger

needs to charge a bit higher than what their competitor are charging. So even though Berger has

superior quality product, many of the customers are choosing competitor‘s products in order to

save money. And this case is true especially for the rural area customers.

Opportunities

As far as the opportunities are concerned, from the industry, Berger has quite a number of

opportunities which were identified earlier in the SWOT identification section. Opportunities are

needed to be utilised by using the strengths, capabilities and core competencies, trying to



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eliminate the weaknesses and protect the company from potential threats. The opportunities are

explained below, keeping in mind all the factors mentioned above.

Rapid rate of urbanization, rising real estate business, rise of new customer segment and newly

emerging festivals are the opportunities that Berger can avail. Rapid rate of urbanization, rising

real estate business, rise of new customer segment and newly emerging festivals in Bangladesh

mean that the demand for paints is and will be in increase, especially for constructions purposes,

in new markets and in new segments. With Berger‘s current production plant, which is quite big

and capable of producing a huge amount of diversified product range, Berger can easily take this

opportunity in its favour by utilising its strengths, core competencies and capabilities and of

course if needed by overcoming the weaknesses and keeping the potential threats in mind to be

handled. Berger has an excellent R&D team which is capable of continuous innovation and the

production team is capable of producing quality paints. With its experience in business, customer

services, plant capacity, strong financial condition, efficient supply chain management,

technological sophistication, Berger can well avail these opportunities, be in a better position

than now and grab a greater market share. Currently most of Berger‘s competitors do not have so

many attributes as Berger has, that can help them grab these opportunities offered by the industry

and turn those into their favour. So Berger can now easily play the leader‘s role in the future

even in a better way than they are doing today. But high cost structure, which is a major

weakness of Berger, may appear to be a problem in the future. So this weakness needs to be

addressed immediately and corrective measures need to be taken.

Of course in the process of availing these opportunities, Berger will be able to increase their

strengths even more. There is another opportunity that many new weaknesses will come up

while doing so, which will open a window for Berger to correct the weaknesses and learn new

methods of dealing with the threats that eventually appear while doing businesses.

Threats

Threats are external factors which come for a business as they perform their activities and they

have little or no control over it. Since threats are negative for any business, all businesses need to

learn to tackle the threats and learn methods of handling these.



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Being a part of paint manufacturing industry, Berger is exposed to many threats, which include

political instability, corruption, low switching cost of buyers, high competitive rivalry,

emergence of invisible competitors, possibility of new environmental regulations, slow

economic development and exposure to foreign currency risk. Again, using their experience,

which is Berger‘s one of the strengths, Berger can find ways to face these threats just like a true

market leader. For the case of foreign currency risk, which is not in the company‘s hand, Berger

can take hedging policies, for example, to deal with the threats. New environmental regulations

can well challenge Berger‘s products and production system. With its R&D, it can find new

methods of productions. For the case of low switching cost of buyers, high competitive rivalry,

emergence of invisible competitors, possibility of new environmental regulations, Berger can of

course and in fact will have to find new competitive edges to overcome these threats. Here again,

the experience, strong financial condition and the R&D can play important role. Political

instability, corruption and slow economic growth are facts where Berger can hardly do anything

but use experience to deal with such major threats. These threats will definitely challenge

Berger‘s profitability and others activities which are the pillars of the business.

In the process of dealing with the threats, it is likely that Berger will come up with new methods,

which can eventually turn out to be its strengths. Since no other company has so many strengths

as Berger- most importantly experience, it is likely that Berger will be able to tackle these threats

better than any other competitors in the industry.



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Proposed Business Model:



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Recommendation:

Corporate Level:

Problem

Mission Statement: ―We shall increase our turnover by 100 percent in every five years.

We shall remain socially committed ethical company.‖

Recommendation:

Formulate a proper mission statement

Problem:

Exposure to currency risk

Solution:

Hedging Strategy

Improve PR activities

Involve in more joint ventures



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Conclusion

Berger Paint Bangladesh Limited is undoubtedly the market leader in the paint industry of

Bangladesh. They have achieved that position by providing superior quality product along with

their strong distribution channel. Continuous innovation from their R&D team has paid offBerger by producing a huge portfolio of products. Berger is able to provide paint for almost

every possible surface available out there.

From the detailed analysis of Berger Paints Bangladesh Limited we found that the industry

growth rate is high. The rise of constructions of building and house has resulted in high demand

for paint. This growth of industry and the customer demand has contributed towards the growth

of Berger as a company.

The high growth rate of industry has attracted many other paint manufacturers. Though Berger

has the additive advantage of being the most experienced paint manufacturer in Bangladesh,

competitors are catching up. One area where Berger has the absolute advantage is their brand

position. People think of Berger whenever they think of paint. But their high quality offering

means higher production cost and that leads to a higher retail price. Competitors takes this

situation into their advantage and sell at a lower price, hence slowly taking Berger‘s market

share.

Berger also engaged in diversification, where they introduced new products like painting brush,

rollers and adhesive. This products are not widely popular like their paint. Thus Berger has the

scope of improving these products and marketing them widely.



REFERENCES

Berger Paints. (n.d.). (Berger) Retrieved December 2014, from

http://www.bergerbd.com/

Annual Report 2012. (n.d.). (Berger) Retrieved December 2014, from Bergerbd:

http://www.bergerbd.com/images/corporate_info/BAR2012.PDF





Mukherjee, P. P. (2014, April). Marketing Strategies of Berger Piants limited. Retrieved

December 2014, from bracu:



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