ICI Project

8/6/2019 ICI Project

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Group MBA 24B

Muhammad Kamran Haider

International Islamic UniversityIslamabadSubmitted To: Sir Naveed Altaf

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Contact#03137192323

Contents

Sr No: Description PageNo

1. ICI COMPANY PROFILE 42. HISTORY 4

3. ICI PAINTS 54. PRODUCT OF ICI PAINTS 65. ICI PRODUCT LINE 76. PLACEMENT OF ICI PRODUCTS 97. PROMOTION OF ICI PRODUCTS 108. PRICING OF ICI PRODUCT 119. COMPETITORS 1210. COMPETITOR ANALYSIS 12

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11. CONDITIONS 13

ICI Pakistan LimitedCOMPANY PROFILE

ICI Pakistan Limited (Imperial Chemical Industries) is located in Karachi, Pakistan. TheCompany was subsidiary of ICI Plc United Kingdom but with worldwide takeover of ICI PLC

by AKZO NOBEL now AKZO NOBEL is 75.81% stake holder of ICI PAKISTAN. It was set up

as a public limited company in Pakistan in 1952. The ICI Group is a renowned internationalbusiness. It employs approximately60, 000 people in more than countries.

The vision of ICI is to be the leader in formulation science. It has, and continues to

develop, a portfolio of businesses that are major players within their respective industries,

bringing together outstanding knowledge of customer needs with leading edge technology

platforms to provide superior products to its customers. Through these attributes, it aims to create

superior value for ICI customers and shareholders, without compromising its commitment to

safety, health, environment and the communities in which it operates.

ICI Pakistan Limited is involved in various businesses including:

Polyester fibers

Soda ash

Paints

Chemicals

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pharmaceuticals

History

1944

The khewra soda ash Company, a predecessor of ICI Pakistan Limited, set up a soda ash

manufacturing facility in Khewra with a capacity of 18,000 tones per annum. This facility

was sited next to the salt range as rock salt and limestone, two key raw materials needed

for manufacturing soda ash, were available here in abundance.

1953

The Khewra Soda Ash Company was incorporated as a public limited company.

1966 The Khewra Soda Ash Company changed its name to ICI Pakistan Manufacturers

Limited.

Over the next few decades, major changes took place in the company as our Specialty chemicals

and Polyester plants were commissioned, and Imperial Chemical Industries (Pakistan) Private

Limited and Paintex Limited both merged into ICI Pakistan Manufacturers Limited

1987

The company has changed their name to ICI Pakistan Limited

The company launch the business as well as the Dulux range of coatings.

The company has established ICI Pakistan Power Gen and set up the ICI PakistanFoundation as a charitable trust

1995 The company has set up a USD 490 million PTA manufacturing facility at Port Qasim,

near Karachi.

1998

PTA manufacturing facility commissioned

2000 The business was de-merged to form Pakistan PTA Limited, which was at the time a

subsidiary of ICI Plc UK.

2007 We completed 50 years of continuous listing on the Karachi Stock Exchange

2008 The company formally became part of the Akzo Nobel Group, bringing us under the

banner of one of the

Largest coatings and chemicals companies in the world

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ICI Paints"The ICI Paints team intends to remain market leaders in the Paints Business. The company has

aim to be recognized for offering the best products and excellent customer

service. The company is running a high quality, profitable and growth oriented business in an

exciting and safe environment."

[Mission Statement]

The ICI Paint business can be divided into three categories

Industrial

Automotive

Decorative

All the three business have embarked on programs which focus on the consumer and customer

needs. The focus is to understand the needs of the major stakeholders. Pursuing research, marketunderstanding and delivering high quality product and services forms the nucleus of creating a

competitive advantage in the market place for the paints business.

The Industry & Automotives coatings business of ICI paints besides gaining strength in the local

market also aspires to become a regional player. Self leveling epoxy floor coatings have been the

new addition in the product portfolio and have been well received by major customers. After the

initial success of the Turn-Key project management concept with one of the leading customers

where a one shop solution in terms of design, fabrication and commissioning of automotive

paints is done by ICI, the business is now offering it to other customers also.

Products of ICI paints

ICI paint is dealing in the following paint products.

Decorative.

Refinish and Industrial.

Automotive.

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ICI Product line

Dulux super gloss enamel

Dulux metallic finish enamel

Dulux matt finish enamel

Dulux synthetic enamel fan finish white

Dulux pentalite special plastic emulsion (Acrlast ylic Based)

Dulux pentalite natural white special emulsion with added fragrance (Acrylic Based)

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Dulux contractors plastic emulsion

Dulux weather shield (Acrylic Based)

Dulux prime-on

Dulux water repellent

Dulux synthetic clear varnish

Paintex plus emulsion

Maxilite

Dulux red oxide anti corrosion metal primer

Dulux aluminum paint dual pack

.

Dulux Super Gloss Enamel

Dulux Super Gloss Enamel is a high quality solvent-based super gloss finish, suitable for use

on all types of interior and exterior wood and metal surfaces. Dulux Super Gloss Enamel gives

a smooth mirror like finish and has excellent durability. Generally resistant to heat up to 90 C,

but some discoloration of light colors may occur at temperatures above 80 C. Resistant to thelevels of atmospheric humidity present in normal interior and exterior environments and will

withstand repeated washing. Not suitable for use on immersed surfaces. It can be applied

through Brush, Roller or Conventional Spray and it is highly flammable.

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Dulux Metallic Finish EnamelDulux Metallic Finish is a high quality solvent based super gloss finish, suitable for use on alltypes of interior and exterior wood and metal surfaces. Dulux metallic Finish gives a smooth

finish and excellent durability. Generally resistant to heat up to 90 C, but some discoloration of

light colors may occur at temperatures above 80C Resistant to the levels of atmospheric humiditypresent in normal interior and exterior environments and will withstand repeated washing. Not

suitable for use on immersed surfaces. Spray is the only way to apply and it is highly flammable.

Dulux Matt Finish EnamelDulux Matt Finish Enamel is a high quality solvent-based matt finish, suitable for use on all

types of interior wood, metal and masonry surfaces. Dulux Matt Finish Enamel has excellentresistance to steam and moisture, which makes it ideal for use in Kitchens and Bathrooms.

Generally resistant to heat up to 90 C, but some discoloration of light colors may occur at

temperatures above80 C .Resistant to the levels of atmospheric humidity present in normal

interior and exterior environments and will withstand repeated washing. Not suitable for use onimmersed surfaces. It can be applied through Brush, Roller or Conventional Spray and it is

highly flammable.

Placement of ICI PaintsPlace includes company activities that make the product available to target consumers.Placement is the process in which the final good or service is made available to the end

Customer .The channels used for this purpose are known as Marketing Channels.

Marketing channels are defined as set of independent organization involved in the process of

making a product or service available for the use or consumption by the consumer or business

user.

The overall ICI Paints products are manufactured in ICI Paints Lahore. For all Pakistan stocks

Dispatch is carried out from factory warehouse.

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There are further 5 warehouses in the country.

LAHORE

ISLAMBAD

MULTAN

KARACHI

QUETTA

The distribution channel includes Distributors and Dealers/ retailers. The Pakistan is divided into

3 regions.

Upper PUNJAB

MIDDLE PUNJAB

LOWER PUNJAB

Every region is headed with Regional Sales Manager and in every Region there are further Area/

Territories. The supply activities are carried out with keeping the region and areas. One region

cannot carry out supply in others region same in the case with areas/ territories.

The product is only delivered to the company approved dealer or distributor. Distributor can sale

to the customer which is not approved dealers of the company. Main consumption of paint is on

dealer/retailers counter. The delivery is made through 2 modes

Distribution Vehicles

Freight On Road ( goods transportation service)By these 2 means ICI manage the distribution and placement of their products to beavailable forTheir customers and consumers

Promotion of ICI Paints

ICI Paints is using following promotional tools:

Customer satisfaction is itself a promotion tool for ICI Paints and it help to develop C2Crelationship.

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ICI Paints arranges painter parties at different places and at this event gift are given to those

painters which have used a reasonable quantity of ICI paint for the period.

ICI Paints has given a target to every dealer according to its capacity and market analysis. If that

dealer meets that target, ICI Paint will take that dealer to some other country for recreationalpurpose e.g. last time ICI Paints chartered special plane for its dealers and took them Dubai. For

present year ICI Paints has promised to take its dealers to Malaysia.

Just like other paints ICI has offered a token in every Bucket or Gallon of Maxilite and Paintex

which are worth Rs. 220 per Bucket and Rs. 60 per Gallon.

The company is promoting its product through the following modes

Advertisement

Public Relations

Sales Promotion

External Communication

Events And Exhibitions

T.V Advertisement on different channels

Radio Advertisement , F.M 100

Bill boards almost in every big city

Posters / Banners

Small gifts for dealers/distributors to push new product sale

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Small gifts for painters / contractors who are labor force who apply paint

Painters party to introduce them new product

T Shirts printed with product logo on them

Caps

Key chains

The company many warehouses in different places like

LAHORE

ISLAMABAD

KARACHI

QU ETTA.

PRICING OF ICI PAINTS

As far as the pricing is concerned it is the most difficult decision because keeping all the things

on one side price matters. ICI Paints is promoting different brands on different prices according

to the market segmentation. Dulux is the most expensive brand in the market. The reason is that

the best raw material and components are used in the manufacturing of the Dulux. Second reason

is that Dulux target market is upper tier. And to some extend upper tier of middle tier. But paying

more for Dulux, customer feels value.

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If we compare the price of Dulux with other local brands, its the fact that price difference is not

more than 20-100 rupees. As far as quality is concerned, by paying more customers is not

worried about the quality.

For the market which is middle tier, ICIs brands Paintex Emulsion and Glidden are the brands

with low price and optimum quality within the tier. If we go into the comparison of Paintex andGlidden their price is lower than the other paint brands selling in the market. Glidden is purely

priced to cover the buying power of middle tier.

The price of the products in which ICI is having technological edge over competitors is

comparatively high. The reason is that ICI is enjoying state of monopoly for that product. There

is no product in the market to encounter them.

The price of Dulux Weather shield Fresh is Rs. 1050/-, others companies brands offeredin the market are 300-400 Rs less than Weathersheild Fresh.

Same is the case with Dulux Gloss Finish and Dulux Matt Enamel Odorless Range. The

price is Rs. 300-400 more as compared to other brands.

So pricing factor vary from brands to brands and target market.

COMPETITORS OF ICI PAINTS

ICI paint is the largest paint industry in Pakistan. The company is holding a position of market

leader in the market. The company has highest share in oil and paint market in Pakistan. ICI paints have got the latest technology with them as compared to their competitors. Their

production process is highly automated. They can offer any color as demanded by the customer.

Customers can ask for any of 6134 colors. For every shade of color there is a specific formula

that states about composition of constituents and their proposition. High level of automation is

one of the critical success factors of ICI that differentiates then from their competitors and serves

as a source of competitive advantage.

Competitor analysisICI is the largest paint manufacturing company in Pakistan. The company has hundreds of

competitors in open market, but they have little share in total market. Mainly there are two main

competitors of ICI paints i.e. Burger paints and Master Paints. Other competitors include the

following:

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Nippon paints

Diamond paints

Silky paints

Bright paints

COMPANY MARKET SHARE

ICI PAINTS 25%

BERGERS PAINTS 12%

MASTER PAINTS 3%

SILKY PAINTS 1%

All other companies have fewer shares as compared to the main competitors.

COMPANY MARKET SHARE

ICI PAINTS DULUX

BERGERS PAINTS BURGER ROBBIALAC

MASTER PAINTS MASTER

SILKY PAINTS SILKY

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CONDITIONS1: YOUR LARGEST COMPETITORS HAS REDUCED ALL ITS PRICES BY 15%

ICI has two main competitors i.e. burger paints & master paints. Suppose that those two main

rivals have reduced their prices by 15% on their paint products. There is need to analyze & judge

this step taken by the ICI competitors. There may be an intention to create new customers or totarget new segments in rural & urban areas in order to increase their sales, profit and to boost up

their market share to capture the paint industry in Pakistan.

This is a major threat to the market leader ICI paints. There is need to take corrective decisions

in order to keep the company position in the market. The company can take the following steps:

The company may also decrease their prices to make tuff competition with its rivals

The company may offer some products like paint brushes and other products necessarilyrequired to paint the houses, shops e.t.c

The can increase the promotion of their products by giving some incentives to itsdistributors, wholesalers and retailers.

The company can launch new product which is not currently launched by its competitors.

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The company can introduced new technology, it helps the company to reduce their

production cost and the company is able to sell it at lower prices for better quality.

The company can increase its advertisement of newly coming products, this will help

them to set a great image in consumer mind in order to retain their customers.

The company can introduced their products in the segments or areas, in which the

company products are not launched before.

The company can improve their customer services or environment and customers relation

relations for the delivery of quality product.

2: THERE IS A GENERAL ELECTION IMMINENT. POLITICAL PUNDITS ARE

FORESEEING A NEW GOVERNMENT IN POWER WHICH HAS PROMISED

PROTECTION FOR LOCAL BUSINESS IN ITS ELECTION MANIFESO.

3: INTERNATIONAL OIL PRICES ARE EXPECTED TO RISE AGAIN THIS YEAR IN

THE WAKE OF RENEWED POLITICAL CRISES IN A MAJOR OPEC COUNTRY.The ICI paint company is paint manufacturing company. The company production is directly

linked with oil. The change in the prices of oil will affect the paint industry as a whole. There

are different chemicals used in the manufacturing of paints. The high prices of raw materialin inflationary conditions will affect the production of paint industry and increase the prices

of paints.

4: HEAVY RAINS AND FLOODING HAS INUNDATED A LARGE MASS OF THE

COUNTRYS AGRICULTURAL HEARTLAND.

ICI Paint Company is paint manufacturing company. The company has no direct relation

with agricultural land. Thats why heavy rains and floods can not affect the working ofcompany. But it can create problems in transportation of raw materials, and final products to

the manufacturing units and sales stores.

But this situation can create an opportunity for the paint manufacturing companies to target

new segments and to maximize profits. This will also help them to promote their paint

products through welfare of people in flood affecting areas. This will create a positive image

for the company in people mind.

Their will create another situation due to flood and heavy rains. Suppose heavy rains and

floods have destroyed thousands of houses, hotels and shops. This ultimately affects theeconomy of the country which is also facing inflationary conditions due to high prices and

political instability. The flood victims need food, shelter for a short period until their new

homes and reconstruction process is not start. The company can help and take part in thewelfare and rehabilitation of people.

The next stage is rebuilding of homes, hotels and shops. This will increase the demand forpaint products. The company can use the first mover strategy to introduce their products in

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the new segments or areas. The company can distribute free samples of paints to market their

products. This will help them to increase their customers and market share in future. The

company can also decrease the prices of paint products in flood victim areas.

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