Presentatiom on Berger Paints

69
SUMMER TRAINING

description

full businessn plan of berger paints, including al there schemes and plan

Transcript of Presentatiom on Berger Paints

Page 1: Presentatiom on Berger Paints

SUMMER TRAINING

Page 2: Presentatiom on Berger Paints

WHAT IS PAINT

Paint is a mixture of 1 ) Pigment 2 ) Extenders 3 ) Binders 4 ) Solvents 5 ) Additives There are two types of paint such as (a) Solvent base (b) Water base.

Page 3: Presentatiom on Berger Paints

WHY WE PAINT

The main objective of painting are ( 1 ) To protect the surface from many factors

like – Rain, saline water, heat, sunlight, UV rays, dust etc.

( 2 ) To give aesthetic look .

The paints are many types like – Decorative paints, Protective coatings, Industrial paints, automotive paints and Powder coatings.

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PAINT INDUSTRY-AN OVERVIEWB

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Emulsions Enamel paints Distempers Cement Paints

• Automotive Coatings High performance

protective coatings Powder coatings Coil Coatings

Decorative Paints Industrial Paints

The Indian Paints Industry is estimated at Rs. 25,000 crs in 2012-13. It is expected to reach Rs. 85,000 crs by 2020.

Paint Industry: Organized sector-65% & Un-organized sector-35%

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Achievement highlights:

BPIL is the 2nd largest paint company in India.

15,000 plus paint retailers, 85 stock points, 6 RDCs, 7 production units

Total Consolidated Gross Turnover of 3500 crs in 2012 – 13

Recorded the fastest growth in the decorative paint segment in India growing @ 20%

Corporate Profile: India Operations

“WE ARE THE NUMBER TWO.THATS WHY WE TRY

HARDER” – WAS THE SLOGAN OF THE David AVIS WHICH RACED PAST THE Goliath

HURTZ...

5

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INDIA-WIDE CAPABILITY

Over 85 stock points & 6 RDCs

Dedicated Sales Teams in all locations with empowered support staff to cater to customer needs

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INDIA-WIDE CAPABILITY

7 manufacturing units located across India

The largest coming up at Hindupur

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BERGER PRODUCTS

Page 9: Presentatiom on Berger Paints

Painting System for INTERIOR WALLS

NEW SURFACE

Surface to be cured with water and sanding to be done

with 80 emery paper.

Apply 3 coats of Berger Putty and sand the

surface with emery paper number 100.

Add one coat of Berger Cement Primer Water Base and sand the surface with emery paper number 200

and wipe clean

Two coats of emulsion to be applied on top.

OLD SURFACE

Surface to be stripped of all old paints and cleaned properly

water and sanding to be done with 80 emery paper

Touch Up putty to be done using Berger Happy Wall

Putty

Two coats of emulsion to be applied on top.

Add one coat of Berger Cement Primer Water Base and sand the

surface with emery paper number 200 and wipe clean

Use of roller is required for getting a better finish on the walls. For applying primer 4 inch brush should be used.

Page 10: Presentatiom on Berger Paints

BERGER INTERIOR RANGE SILK (DEEWARON SE NAZAR NAHIN HATTI) • A rich, luxurious, high-sheen emulsion.• High washability, Plesant Smell• Luxury emulsion for a premium lifestyle home. It gives your wall a

silky smooth finish.

EASY CLEAN ( NO DAAG NO DHABBA Only Beautiful Walls)

• Effortless cleaning. No patch work formation or colour loss – Most Washable Emulsion

• Gives a soft-sheen premium finish on the walls.• Non Stick Paint which does no let stain adhere to the wall.

RANGOLI TOTAL CARE• Has Anti Microbial and Anti fungal Properties.• Stain guard properties.• Gives a butter like smooth finish on the walls.• Higher coverage.

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BISON EMULSION

• Emulsion at the price of distemper. 40 Kg of distemper coverage is equal to 20 ltr coverage of Bison emulsion.

• More than 5000 shades available.• Smooth long lasting mat finish.

BISON DISTEMPER • Gives surfaces an elegant and durable matt

finish.

INTERIOR PRIMER - BP Cement Primer (WT) - BP Cement Primer (Water Thinnable) is used on interior walls as the priming coat. It is air drying primer .

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Product Category Berger Brand Asian Brand ICI Brand Neroalc Brand

Luxury Interior Emulsion

Silk Royale Velvet Touch Impression

Luxury Interior Emulsion

Easy Clean  - na - 3 in 1 Emulsion  - na -

Premium Interior Emulsion

Rangoli Total Care Premium Emulsion Dulux Super

Smooth Beauty Gold

Economy Interior Emulsion

Bison Emulsion Tractor Emulsion Rainbow Beauty Smooth

Distemper Bison Distemper Tractor Distemper Magik NAD

BERGER INTERIOR RANGE ALONG WITH COMPETITOR BRANDS

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Painting System for EXTERIOR WALLS

NEW SURFACE

Surface to be cured with water and sanding to be

done

Add one coat of Weather Coat Exterior Primer

Two coats of emulsion to be applied on top.

OLD SURFACE

Proper sanding of the surface to be done. It

should be then cleaned with water.

Two coats of emulsion to be applied on top.

Add one coat of Weather Coat Exterior

Primer

Use of roller is required for getting a better finish on the walls. For applying primer 4 inch brush should be used.

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BERGER EXTERIOR EMULSIONS

WEATHERCOAT ALL GUARD• Product has silicon which repels water• Prevents seepage and dampness.• High Sheen finish• Defends against fungal growth.

WEATHERCOAT • Gives a low-sheen finish on the walls• Has strong anti fungal properties• Has sun guard which reflects heat and reduces the

internal temperature of the house by 5 degrees (certified by CESR)

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EXTERIOR PRIMER :-Weathercoat Exterior Primer - It is a water based wall coating suitable for exteriors. It improves the coverage of exterior emulsions.

WALMASTA • Walmasta has strong anti fungal/fading and flaking

properties.• It gives a matt finish on the walls.• Complete value for money product.

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Product Category Berger Brand Asian Brand ICI BrandNeroalc Brand

Premium Exterior Emulsion

Weather Coat Allguard

Apex Ultima

Weather shield Max

Excel Total

Regular Exterior Emulsion

WeatherCoat APEX Weather shield Excel

Economic Exterior Emulsion

Walmasta ACE Promise Suraksha

BERGER EXTERIOR RANGE ALONG WITH COMPETITOR BRANDS

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Painting System for Metal Surfaces

NEW SURFACE

Sand the surface with 180 emery paper and

wipe clean

Apply one coat of red oxide zinc chromate

yellow

Two coats of enamel to be applied on top.

OLD SURFACE

Strip all old paints and remove all loose particles. Sand the surface with 180 emery paper and wipe

clean.

Two coats of enamel to be applied on top.

Apply one coat of red oxide zinc chromate

yellow

Use of roller is required for getting a better finish on the walls. For applying primer 4 inch brush should be used.

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BERGER ENAMEL PAINTS

BREATHE EASY ENAMEL• Water Base quick drying enamel which can be

applied on all surfaces• Has low VOC which reduces harmful effects of other

paints.• Semi gloss paint.

LUXOL ENAMEL

• Luxol Enamel gives a mirror like finish on wood and metal surfaces.

• Its properties gives a long lasting finish.

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JADOO AND BUTTERFLY ENAMEL

• Economy range of enamel suitable for interior doors and grills.

• Is glossy and sold widely in rural market.• Available in wide range of shades.

SATIN ENAMEL

• Long lasting soft sheen finish.

METAL PRIMER :- Luxol Zinc Chromate Primer is based on a special synthetic resin in which zinc chrome is used as a rust inhibiting pigment. It is the ideal primer for steel and non-ferrous metals that are exposed to heavily corrosive environments.

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Product Category Berger Brand Asian Brand ICI BrandNeroalc Brand

Premium Enamel

Luxol High Gloss Premium Enamel Dulux Gloss Nerolac Syn.

Economy Enamel

Jadoo Enamel/Butterfly Utsav Enamel NA Goody

Satin Enamel

Luxol Satin Enamel Premium Satin Enamel Dulux Satin Nerolac Satin

BERGER ENAMEL RANGE ALONG WITH COMPETITOR BRANDS

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WATERPROOFING

Packs

Brand Name SUPER LATEX PLUS, LATEX PLUS LATEX SHIELD 2K

Usage Area

•Old & new concrete•Bathrooms•Terrace•Lift Pits

•Balconies•Terraces•Chajjas•Sloping RCC Roofs•Swimming pools

Key Benefit

•Bonding Agent between old & new concrete•Multiple repair work

•Excellent impermeable coating•Corrosion Protection•Elongates with substrates

CompetitionPidicrete URP, Super Latex(Pidilite), SikaLatex (Sika)

PIDIFIN 2K (Pidilite)

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CRACK FILLING

Packs

Brand Name CRACK FILL PASTE, CRACK FILL POWDER

Usage Area• Internal & External cracks of masonry and plaster upto 5mm

Key Benefit•Excellent adhesion•High Flexibility•Excellent waterproofing

Competition Crack X Paste/Powder (Pidilite), Cracksil (Sika)

ADMIXTURE

CEMENTMIX PLUS (ILW+)

•Normal concrete and Plasters•Water tanks•Sewerage works

•Waterproofs by cutting capillary pores•Economical to use

Pidiproof LW+ (Pidilite), Plastocrete Super (Sika)

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COLORBANK MACHINE In Today’s scenario Tinting machine is an integral part of all paint

shops Tinting machine is a necessity for selling of emulsions where any

shade could be requested by the customer Function of a Tinting Machine is to dispense colorants into Base

can to get the desired color

Components of a Machine• Dispenser- Used for dispensing the colorants into

the base• Gyroshaker- Mixes the colorants and base to make

the shade• Computer- Used for viewing the formulations and

for controlling the dispensing operation• Software- Indicates the formulations and other

statistics for the dealers

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BENEFIT OF COLORBANK SYSTEM• To the Dealer

1. Minimum inventory and Max shades

2. Customization of shades as per customer requirements

3. No stock out.

• To the Customer (leading to customer satisfaction)

1. Option to choose from a wide range of shade.

2. Availability guarantee.

3. Perfect reproduction incase of repeat order.

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DISPENSER TYPES

FM Dispenser – installed from year 2002

Hero Dispenser from year 1998

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GYROSHAKER• Compact and covered unit

with a front door for accessibility

•  Homogeneously mixes the base and colorants to get the desired shade of paint

• Performs two way rotation (gyro movement) which is timer controlled.

• Mixing time: 2 to 5 minutes depending on product and shade.

• As a safety measure there is a limit switch which allows the gyro to rotate only when the door is closed.

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16 COLORANTSBerger Colorant Colour BP Price/Ltr

OC Yellow Oxide 480SP Red Oxide 791NT Black 467BF Blue 629VB HT Violet 1152GC HT Green 1229GF Fast Green 921WT HT White 663RD Interior RED 935RE Exterior RED 1785LM LemonYellow 1278NS Medium Yellow 840MG Magenta 1579BC HT Blue 1397OR Orange 1493BR Tinting Black 622

Total 16261

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BASESThe bases usage based on shades is detailed below

For tinting pastel shades – P0 or W0 ( e.g. Shade – Apple White from CB 101 card)

For tinting light intermediate shades – W1 ( e.g. Shade – Blue Chip from CB 101 card)

For tinting dark intermediate shades – N1 ( e.g. Shade – Jodhpur Beige from CB 101 card)

For tinting light accent shades – N2 ( e.g. Shade – Ink Drop from CB 101 card)

For tinting dark accent shades – N ( e.g. Shade – Ultra violet from CB 101 card)

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BASES

Coloured bases are used for reducing the quantity of colorant consumed for making a shade and therefore economizing the shade cost with better hiding

Coloured bases Yellow – Used for making Yellows, Oranges and

Yellow greens – Available in Interior and Exterior Emulsions

Red – Used for making deep red shades Brown – Used for making browns, reddish browns

in exteriors Cream – Used for making earthern tones and ivory

shades in exteriors Grey – Used for making grey shades in

enamels(Smoke grey/light grey/dark grey)

Page 30: Presentatiom on Berger Paints

CB MACHINE

Alternate channel dealers should be opened with CB machines.

a) 5 cheques of 40000 to be collected. Cheques to be banked.

b) One cheque of Rs 5000 to be collected for AMC of the machine.

c) A debit note of Rs 7000 to be raised per annum for AMC of CB machine. The DN would be raised on half yearly basis from 2nd year onwatds.

d) Dealer does 9 lakhs value sales of which 3 lakhs is emulsions then dealer will be eligible for CB refund.

e) 20 % Growth required in subsequent years.  

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PAYMENT STRUCTURE

Customers will get 5 % discount on bill Blank cheque to be kept in the office Cheque number to be linked while booking the order Cheque number once used/ linked cannot be utilized for any other

purpose. If invoices are not fully paid within a stipulated period of time, debit

notes will be generated based on certain logic. a. on the 7th day, DN of 1.5% to be raised. b. on the 14th th day , additional DN of 1% to be raised. c. on the 21st th day , additional DN of 2.5 % to be raised. Also

account will be locked. DN will be generated on invoice value after Bill rebate (B99) and

before Tax.

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REBATE STRUCTURE Rebate applicable to the dealer

Quantity Discount: - Quantity discount is of two types. a) Depot Scheme – based on achievement of depot stipulated

volume schemes. b) H.O. Schemes – product based schemes are run from H.O.

The dealer will get reward CN/Gift based on qualifications.

E.g. Depot scheme . Earn Rs 8/ltr on lifting 100 ltrs of Weathercoat in June

H.O. Scheme – Get a ADIDAS track suit by lifting 200 ltrs of WeatherCoat in June.

Dealer lifts 200 ltrs of weathercoat in June. The dealer then ges a) Rebate of Rs 8 x 200 ltrs = Rs 1600. b) He also gets a ADIDAS track suit.

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CREDIT NOTES Quantity discount credit notes will be issued on a monthly basis at

branch level against the scheme communicated at the beginning of the month based on the off take of the material by the counters Credit notes for billing done in July will be issued by the Berger

branches in Aug HO schemes will take 2 months for redemption as the same is done

centrally from Kolkata. Codes under which credit notes are issued

Code 40 – Quantity discount Code 1M – Invoice cancellation Code 1J – Material return Code 1F – Material short dispatch Code 21 – Product token reimbursement Code 61/64 – Corporate scheme redemption Code 85 – Machine refund

Page 34: Presentatiom on Berger Paints

LANDING COST

DPL of 1 ltr of Luxol Golden Brown = Rs 196. Payment discount = 5%. Rebate = Rs 14. Landing = (196)-(5%)*([email protected]%) -(14). =

Rs 199. Selling Price = Rs 220 . Profitability = Rs 220 – Rs 199 = Rs 21.

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PROFITABILITY

CATEGORY OF PAINTS PRODUCTS AVERAGE PROFITABILITY/LTR SOLD

LUXURY EMULSION

SILK

18 - 20%EASY CLEAN

WCOAT ALL GUARD

PREMIUM EMULSIONSRANGOLI TOTAL CARE

15 - 17 %WCOAT SMOOTH

ECONOMY EMULSIONSBISON EMULSION 11 -13%

WALMASTA

OTHER PRODUCTS DISTEMPER/ENAMEL ETC. 6 - 8%

Page 36: Presentatiom on Berger Paints

Give one stop information to dealers on

Stock availability

Sales and schemes

Payment details

CN/DN details

Despatch details

Microsoft Dynamics CRM package being implemented

Call 1800 103 6030 for uninterrupted services 7 days a week between 9 Am – 9 PM

Page 37: Presentatiom on Berger Paints

Business Development Business Development had started as an activation

wing in FY 11-12. • Generating Secondary Sales through activities like

Painter Meets & Sell-outs, Retail Projects etc.

• Focusing on New & Advertised Products – Visibility, Merchandizing, Display, Secondary sales, etc in the Key counters

•  State of the art software, Centralized call centre and a dedicated BD team spearheading the Berger success storyMASTER PAINTER SCHEME – LIFT & WIN

Create and Improve demand of key emulsions among Master painters.

Long term attractive loyalty program for Master Painters for improving demand of key emulsions in selected counters

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Business Development Lead generation &

conversionIn lead generation and conversion the following steps are taken

a) Lead generation: The dealer gives us the leads. The lead is then captured in lead gen software.

b) Lead Follow up: A demand generator is assigned the lead. 1) He calls the customer and takes appointment. 2) We then approach the customer and explain him about Berger and give products briefing and demonstration. 3)If the customer wants then preview facility is also provided to the customer. c) Lead conversion: The customer then wants to purchase the materials we direct him to the dealer from whom we have got the lead.

Page 39: Presentatiom on Berger Paints

PREVIEW Preview is a customized service from

Berger in which we give the customer how a color combination will look on the house of the customer before it is painted.

We take the photograph of the exterior of the house and send the picture to our preview department.

If the customer has some color choice the same is also mentioned.

Our preview team then chooses the right colors for the customers and gives the customer 3 different types of previews of the house.

Preview booklet front page.

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Page 41: Presentatiom on Berger Paints

PROLINKS TEAM FOCUS IS ON CONVERSION OF VERY LARGE PROJECTS

TEAM GETS PRODUCT APPROVAL FROM LARGE PROJECTS THROUGH PRESCRIPTIVE SELLING

PROLINKS – THE PROJECT WING OF BERGER

Page 42: Presentatiom on Berger Paints

DISTRIBUTION MODEL IN PAINTS

COMPANY

RETAILERS

CONSUMERS

WHOLESELLER

SUB- DEALER

CONSUMER85% of Business is done through retailers while 15% of the business is done through whole sellers

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NEED TO INCREASE DISTRIBUTION

Paint being a multi sku industry needs distribution to make its product reach the consumers.

Any company who has a wider distribution will be able to garner more market share.

We are at 60% of the total distribution strength of Asian, we need to increase our distribution network to gain market share.

Page 44: Presentatiom on Berger Paints

UBS – SUCCESS STORY

Berger has got an exclusive tie-up with UltraTech for selling their paints from the UBS counters.

This arrangement provides a wonderful opportunity for the dealers to offer paint and paint services to the customers.

Berger and UT tie up has entered the 6th year. Each year we have grown by 50% on an average.

Average value sale per customer is between Rs 1.25 lakhs – Rs 1.5 lakhs.

There are currently 600 counters in this tie up. Ultratech is expecting to add another 200 more new counters this year.

Page 45: Presentatiom on Berger Paints

REASON FOR SUCCESS

Lead generation and conversion. a) We get leads from UBS counters which

are tracked by the local Berger team. b) Our team then visits these sites and

convert the leads. Proper grooming of the dealers was done so

as to make them confident in paints. The market operating price and stock

planning was properly explained. One shop boy of the dealer was also

extensively trained.

Page 46: Presentatiom on Berger Paints

ALTERNATE CHANNELS

Any dealer who is a non paint dealer and is related to the construction industry can be targeted to deal in paints. Such dealers are alternate channel dealers.

Paint counters tend to be loyal to one particular company even if they deal with multiple companies.

Breaking a good competition paint counter is both time consuming and costly affair.

Alternate channel dealers are primarily cash rich dealers and when properly groomed can become the growth torch bearers for our company.

We have tied up with Ultratech and the model is growing in leaps and bounds year after year.

Page 47: Presentatiom on Berger Paints

TYPES OF ALTERNATE CHANNELS

Though there are various types of alternate channel dealers we are basically targeting 4 types of dealers

1. Cement Dealers.2. Steel Dealers.3. Plywood Dealers.4. Tiles and Marble Dealers.

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CEMENT DEALERS

Dealer is billed materials from warehouses /go - downs and the same is supplied directly to the dealer or to his site.

Dealer operates on APS mostly. Target is to capture the retail selling dealer

who sells 300 – 400 MT of cement per month.

Page 49: Presentatiom on Berger Paints

WHY CEMENT DEALER IS A PRIME TARGET FOR ALTERNATE CHANNEL.

• Ample go down and showroom space.• Financially sound. • Dealers have a ready base of customers who

take cement. These leads can be converted by us.

• CC and Putty can be easily sold via these counters.

• Dealers have ample manpower to have one dedicated shop boy for paint store.

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WHAT DOES THE DEALER GAIN.

CEMENT PROFITABILITY

VOLUME 400 tonnes (Per Month)

Number of Bags @ 50 Kg Bag 8000

Cost per bag Rs 320

Total Cost 8000*Rs320 = Rs 2560000

Profit per Bag Rs 8

Total Profit Rs 8X 8000 = Rs 64000

Profit Percentage 2.50%

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STEEL DEALERS Like cement, steel is also a high investment low

return industry Unlike cement dealers, steel dealers hold

stocks of steel bars of various sizes – mm/8m/10mm/12mm/16mm/ 20mm

The steel industry is dominated by the regional players and very few national players are present

Steel prices are subject to drastic changes- both increase & decrease which adversely affects the profits of a dealer as huge stocks are held by the dealers

Dealer operates on APS mostly 7 days credit (Max)

Target is to capture the retail selling dealer who sells 100 tonnes of steel per month. The average investment is 20 lakhs.

Page 52: Presentatiom on Berger Paints

WHY STEEL DEALER IS A TARGET FOR ALTERNATE CHANNEL.

• Ample go down and showroom space.• Financially sound. • Dealers have a ready base of customers who

take Steel. These leads can be converted by us.

• Dealers have ample manpower to have one dedicated person for paint store.

• Steel Industry is fluctuating and the market is also shrinking so the dealers are on lookout for new ventures.

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WHAT DOES THE DEALER GAIN.

STEEL DEALER PROFITABILITY

VOLUME 100 tonnes (Per Month)

Cost per tonne 44000

Total investment 44000 X 100 = Rs4400000

Profit @Rs 1000/tonne Rs 100000

Profit Percentage 0,22%

Additional 1% is given by the company. The dealers get additional profit by speculating about rate and buying the stock at lower price and selling at a higher rate. This also results in lost sometimes.

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PLYWOOD DEALERS

• Mostly Dealers are selling multi SKU’s including Plywood , laminate, veneer and allied product, some dealers also have display gallery for color combination.

• Investment is high with good return . • At present, the sector is predominantly in the

hands of unorganized units.• Dealers who is selling veneer and laminates

is more targetable .

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WHY WE NEED PLYWOOD DEALERS .

Financially sound. Existing customers of plywood and allied product. Good contacts with architects and Interior designers. Proper space and enough manpower for selling paint . Already dealing in multi SKU’S. Plywood dealers can be groomed to become FS stores.

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WHY THEY SELL PAINT. Just another one wing. Low investment and high gain. Ready made customer base. Project selling through architects and interior

designers. Additional profit with the same customer.

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DEALERS PROFITABILITY

LAMINATE PROFITABILITY

VOLUME PER MONTH 400 PC

Cost per LAMINATE Rs 900

Total Cost400*Rs900 = Rs

360000

Profit per Laminate Rs 50

Total Profit Rs 50X 400 = Rs

20000

Profit Percentage 5.55%

PLYWOOD PROFITABILITY VOLUME PER MONTH 400 PC

Cost per Sft Rs 65

Total Cost400xRs 65x32Sft=

Rs 832000

Profit per Sft Rs 6

Total Profit Rs 6X 32Sft X 400

= Rs 76800

Profit Percentage 9.23%

Page 58: Presentatiom on Berger Paints

TILES AND MARBLE DEALERS

Tile dealers do much more than show customers samples of wall and floor coverings. They also offer advice about which materials will work with the buyer's home and lifestyle.

Investment is high with very good return . Dealers deal mostly exclusive. Having enough space for display.

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WHY TILES DEALERS .

• Ready made customers of TILE .• Tiles dealers mostly sales on good projects.• Amicable relation with architects and Interior

designers.• Financially sound. • Can be groomed to become FS stores.• Good showroom and go-down space.• Having appropriate shop boys who are more customer

centric. • CC (tiles adhesive and tile grout ) can be sold easily.

Page 60: Presentatiom on Berger Paints

REASONS TO START PAINT BUSINESS• Same business model• Paint Can start by same infrastructure with

low investment .• They Can capitalize relation with architects

and interior designers• Tiles dealers Know the color combination

can better satisfy the customers.• Paint can easily sell on same project

where they are selling tiles.• Good return on investment.• Small space required

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HOW TO CONVINCE THEM.

No need to search customers . These dealers already have a good customer base.

Professional relationship with who’s who of industry. -Architect playing very important roll in decision making in project

business same applied for interior designers in house holds as well

as engineers for cement and steel dealers. Now a days less seasonality in paint industry. Good return on investment. Higher profitability in paints. Proper training from Berger to help establish the

new business. Small space required

Page 62: Presentatiom on Berger Paints

PAINT PROFITABILITY

VALUE sales @ 1 lakh /month 1 lakh

40% Emuslion sales in ADC40 thousand worth of paint sale

15% profit on Emulsion Sale (SCHEME + PD)

15% on 40,000 = Rs 6000

Rs 60,000 other products at 10% Profit (SCHEME + PD)

10% on 60,000 = Rs 6000

Total Profit on selling 1 lakh of paint Rs 12000

Profit Percentage 12%

Page 63: Presentatiom on Berger Paints

ADDITIONAL BENIFITS Paint business is going to be done by them

from their existing set up there by no additional investment on infrastructure is required

ADC dealers have a ready made demand for paintThey just need to cater to their existing

customers of cement for supply of paints and not forced to search for any new customer

Berger shall take care of the training needs of the shop owner as well as the shop boy who is going to take care of the shop

He can also sell paints to a few of his sub dealers.

Paint requires lower investment compared to that of ADC business for getting the similar returns.

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QUESTIONNAIRE

A detailed questionnaire has been made to understand the mapping done.

MAPPING

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FAQ• How many manpower is required?

Ans) 1 dedicated shop boy will be enough to do CB tinting and selling. The training of shop boy would be the responsibility of Berger.

• Paints is a multi SKU item how will I deal?

Ans) Even though paint is a multi SKU item 5 – 6 fast moving products contribute 70 – 80 % of the total sale. We need to focus on those products only for day to day business.

• How will I sell paints ?

Ans) Demand generation activities like painter meet, sell outs etc will be carried out in your shop . This will attach painters who will bring in more customers.

How much investment is required?

Ans) To sell 1 lakh of paint the dealer requires 3 lakhs of materials.

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FAQ How much space would be required?Ans ) A 10 X 8 sqft shop would be required for displaying

and selling paints. For stocking a separate go down would be required. A CB machine can fit into 16 sqft area.

What is my Landing?Ans) Landing = Invoice rate – Product discount . What is my profit margin?Ans) If you sell at DPL also you stand to gain 12 -14% on

sale. Normal market practice is to sell paint at DPL + 5%.

What else do I need to sell paints ? Ans) Paint accessories like Brush,Roller, Tarpin etc is

required. The list of vendors for the same would be provided by local Berger team.

Page 67: Presentatiom on Berger Paints

FAQ What kind of training would be given to me as I am new to

the paint business? Detailed training will be given to Dealers and their shop

people on Categories of paint Paint application Landing cost of each brand, market selling rates along

with profit calculations Equivalent products of competition Paint accessories Operation of Tinting machine

If there is a technical problem with CB machine will the company address the same?

Ans) Yes, within 72 hours.

Page 68: Presentatiom on Berger Paints

PROJECT TIMELINES

Project is for the period from 13th May – 12th June,

a) 13th and 14th May there would be briefing about Berger the mapping software and quiz will be taken on the same.

b) You would join the depots on 16th of May for debriefing and assignment of towns in the district assigned to you along with the route map.

c) Every two days you had to upload the mapping data into the software.

d) All the towns assigned has to be completed within the stipulated time.

Page 69: Presentatiom on Berger Paints

THANK YOU