A PROJECT REPORT

ON
“PROSPECTIVE COUNTER - DATA MAPPING AND OPENING NEW
CHANNELS OF DISTRIBUTION”

BY
NIRAJ SAILESH MEHTA
MBA CLASS OF 2014

AT
BERGER PAINTS INDIA LIMITED

UNDER THE SUPERVISION OF

MRS. PRIYANKA BASU

IN PARTIAL FULILLMENT OF THE REQUIREMENTS OF THE DEGREE OF

MASTERS OF BUSINESS ADMINSTRATION

AT
AMITY GLOBAL BUSINESS SCHOOL
KOLKATA
ACKNOWLEDGEMENT

It is with deep sense of gratitude that, I express my indebtedness to everybody who

has been instrumental in helping me in completing the project.

I would like to thank the Dean of AGBS – Kolkata Prof. Ankita Chakravarty
Bhattacharya for her continuous support.

I extend my sincere gratitude to Mr. Jaideep Sikdar, Divisional Sales Manager,

Berger Paints India Limited, Kolkata, for giving me this project and opportunity to
work with such a prestigious organization. Also would like to thank Mr. Satadal
Ghosh, Area Sales Manager and Jai Prakash Ray, Supervisor – Business
Development, my industry guide for their invaluable guidance during the
internship program.

I whole heartedly thank Prof. Priyanks Basu, my faculty guide, for her inspiration,
support and guidance, which has been a major contribution factor to the successful
completion of this project.

Finally, would like to acknowledge Mr. Saurabh Bose, Placement and Training
department, AGBS – Kolkata who has always stood beside me.

NIRAJ SAILESH MEHTA

DECLARATION

I hereby declare that the titled “PROSPECTIVE COUNTER - DATA

MAPPING AND OPENING NEW CHANNELS OF DISTRIBUTION” is
prepared me during the academic year 2012-2014 under the guidance of
Mr. Satadal Ghosh, Area Sales Manager and Jai Prakash Ray, Supervisor –
Business Development, Berger Paints India Limited and Prof. Priyanka Basu,
Faculty – AGBS, Kolkata.

I also declare that this project work is the result of my own effort and has not been
submitted to any other university or institution for the award of any degree. All the
data collected are primary and are true in nature; neither has it been submitted for
publishing at any organization.

NIRAJ SAILESH MEHTA

REGD NO. A30901912070
DATE:
PLACE : KOLKATA
EXECUTIVE SUMMARY

“Authentic marketing is the art of identifying and understanding customer needs

and creating solutions that deliver satisfaction to the customers, profits to the
producers and benefits for the stakeholders.” Philip Kotler

The businesses are ever changing so are the way of their characteristics. The
changing scenario presents us new techniques and methods of business as well as
their marketing strategies. The core of business is to market the product that will be
attracted by the consumers and also the product will satisfy the consumer’s needs.
Marketing efforts are vital for any business that is the combination of various
factors affecting the real market scenario. The changing environment is creating
new issues that must be considered for doing a business. In this dynamic business
world the scenario of business aspect changes so rapidly that one false decision
could cause the firm to lose its very existence. We have chosen to conduct the
study in BERGER PAINTS INDIA LIMITED because they are one of the
leading firms in the painting industry occupying a significant market share. My
project has started from 10th of June, 2013 and has ended in July 2013. My project
has been divided into two different parts. The first one is to map the non- Berger
dealers who deals in business of Paint, Wood, Hardware, Furniture, Sanitation,
Iron and Cement in the assigned territory (T15 – South Suburban and South West
Kolkata), there by pitching them for Berger Dealership. Second was to call the
non-contract painters and pitch them for Berger Master Painter. My title of the
project is “Prospective Counter - Data Mapping” The main objective of my project
is to build an effective Dealer relation by direct interactions with them to gain
competitive advantages over other companies with special reference to
promotional strategy.
For the first project the data was to be collected independently and for second
project the data was provided by the company. I met the prospective dealers
physically and gathered all the information according to questionnaire. What I
observed that the maximum dealers are aware about the company and its facility.
Few dealers are trying to switch to the other companies because of their extreme
company backup and promotional strategies. The main reason behind that is
customer preference, the painters and people who prefer to buy their own choice of
paint. Customers prefer Asian paints and Dulux paint (ICI) due to product quality
and price. Also they have a high preference on Asian Paint. The main reason
behind that is high quality, high promotion and advertising, direct contact with the
indirect customer, availability of shops and outlets. And Berger Paints is lacking in
all of the areas. Berger’s product quality is diminishing and it has effected to
customer’s mind. But the primer and putty of Berger Paint is still preferred in first
place in the prevailing market. In terms of customer relation or Dealer handling
Berger Paint is showing a great performance.
During the tipping process I observed a certain preference on Berger paints due to
their brand value and many of them have a will to work with BPIL. My
recommendation in this regard is to increase promotional activity along with
betterment of quality of the products, enhancement of direct interaction with
complete coverage and offer some certain benefits which can propel them towards
the organization.

Berger Paints is one of the top leading companies in India as well as paint industry.
They have their head office in Kolkata at Park Street. They have 9 factory/plant,
113 sales depots in India. They have a vast market in Kolkata and have a good
market share in paint industry. They have a great marketing team, sufficient
working capital, good inventory management, developed technology, wide
distribution network and a renowned brand value. They have some certain
competitors (Asian paints, Dulux ICI, Nerolac, Shalimar etc.) in Kolkata market.
Beside of maintaining a good position in this market they are going towards more
market share by improvising their potential. I am very lucky to get the opportunity
of doing Summer Internship Project from this pioneer company.
 CHAPTER 1

OVERVIEW OF THE PAINT

AND PAINT INDUSTRY
WHAT IS PAINT?
Paint is a mixture of Pigment + Extenders + Binders + Solvents +Additives

Pigment: Gives color to the paint. When applied on a surface it gives as opaque
paint film to the surface.
Extender: In general chemically it is inert. Example: Whiting, China Clay, Soap
Stone and Mica.
Binders: Ensures adherence of paint to the substrate when applied as paint.
Solvents: Liquid material, Aromatic solvent and Aliphatic solvent.
Additives: It upgrades the quality of paints.

It generally gives an opaque film, sometime transparent paint film also. It is

available in the form of liquid (Solvent base enamel paints & primers), in the form
of thick, curdy like viscous liquid, (emulsion paints for walls) in the form of paste
(Putty type) and in the form of powder (oxides for floor, cement paint, powder
base putty, etc.) It gives glossy finish, sometime semi glossy paint, sometime sheen
finish and sometime matt finish.
There are two types of paint such as (a) Solvent base and (2) Water base.

Why we paint the surface?

The main objectives 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 and
(3) To guide people the traffic rules etc.

The paints are many types like –

Decorative paints, Protective coatings, Industrial paints, Automotive paints and
Powder coatings.

What are the basic tools used while painting?

We generally use the following (1) Paint brush (different types) (2) Sand papers /
Water papers of different grades (3) Waste cloth (4) Putty knives (5) Spray gun
(conventional type and air less type)
Indian Paint Industry – Sweet Spot

Urbanization is an “Index of transformation from traditional rural economies to

modern industrial one.” Over the last 4-5 years; the economic growth in India
reported an average growth of ~8%, leading to explosion of urbanization &
development in rural India. Also rural spending has started to outpace urban
consumption trend fuelled by a strong increase in incomes, led by rising non-farm
employment opportunities and the government’s focus on rural employment
generation schemes. This has led to growth at a CAGR of 15% in last 5 years
(FY07-12) in the Indian Paint Industry which is estimated to be at `291 Bn in
FY12. Even the paint volumes growth is closely related with the GDP growth rate
& has grown on an average 1.7 –2.1x GDP. Thus, going forward with economy
revival, changing lifestyle & public aspirations, we believe the Indian Paint
Industry is expected to conservatively grow at a CAGR of 15% for next 3
years to be ~ `443 Bn industry by FY2015E.

EMULSION Paints – Customers Choice

The Paint Industry is dominated by decorative paints (77%) & Industrial paints
(23%). Emulsion, which constitutes the majority share of decorative paints, is the
fastest growing segment of the paint industry. Presently, the growth of the Indian
paint industry is being witnessed from new demand pockets, especially in Tier-II
and Tier-III cities, thus, signaling the growing acceptance of branded quality
products among the masses. The growing popularity of branded quality paints
& increasing income levels of people residing in Tier-II and Tier-III cities has led
to a shift in demand from unorganized players to organized players & pushed the
growth & shift towards premium paint segment i.e. “Emulsion” category from
“Distemper & Primer” Category.

Customer Centric Approach – Key Sales Driver

With the changing landscape of Indian Paint Industry – from B2B to B2C,
Organized players have aggressively taken marketing initiatives –to involve
customers in paint selection process, creating awareness of product differentiating
features like Zero VOC, Low VOC, lead free & ecofriendly products, opening
customer friendly concept stores like “Color World, Impression Stores, Kids
World “for customers to touch & feel” “Textures, designs, Glow & Disney
themes” & providing unique professional services of product consultancy and
color consultancy through “Home Solutions & Home Stylers”, Interactive Call
Centre & Simulation Software based websites , Social Media Campaigns on Face
Book & Twitter etc. have assisted in creating &meeting the demand related to
lifestyle conscious people to upgrade & change customer preferences. We believe
such marketing initiatives with aggressive advertising spends would go a long way
in creating a strong brand image & customer loyalty paving way for rapid
penetration & Shift in favor of Organized players vs. Unorganized players in Tier
II & Tier III cities.

Paint Sector Analysis

The paint industry is expected to grow at 12-13% annually over the next five years.
FY12 was a challenging year for the industry as a whole due to subdued demand
across key sectors and rising inflation.

The unorganised sector controls around 35% of the paint market, with the
organised sector accounting for the balance. In the unorganized segment, there are
about 2,000 units having small and medium sized paint manufacturing plants. Top
organised players include Asian Paints, Kansai Nerolac, Berger Paints and ICI.

Demand for paints comes from two broad categories:

Decoratives: Major segments in decoratives include exterior wall paints, interior

wall paints, wood finishes and enamel and ancillary products such as primers,
putties etc. Decorative paints account for over 77.3% of the overall paint market in
India. Asian Paints is the market leader in this segment. Demand for decorative
paints arises from household painting, architectural and other display purposes.
Demand in the festive season (September-December) is significant, as compared to
other periods. This segment is price sensitive and is a higher margin business as
compared to industrial segment.

Industrial: Three main segments of the industrial sector include automotive

coatings, powder coatings and protective coatings. Kansai Nerolac is the market
leader in this segment. User industries for industrial paints include automobiles
engineering and consumer durables. The industrial paints segment is far more
technology intensive than the decorative segment.

The paints sector is raw material intensive, with over 300 raw materials (50%
petro-based derivatives) involved in the manufacturing process. Since most of the
raw materials are petroleum based, the industry benefits from softening crude
prices.
STRUCTURAL REPRESENTATION OF PAINT INDUSTRY:

There are now total twelve players in the organized sector with a share of 80%.
This is contrast to the 55% share that the sector commanded a few years back.
The top 5 companies make up more than 80% sales of the organized market.
The market share of the organized sector is continuously improving as consumer
preference is shifting towards better products offered by the leading brands.
Established Foreign companies have entered the Indian market by acquiring
existing Indian companies. Kansai Paints, Japan entered the Indian Market by
acquiring Nerolac, Akzo Nobel, the world’s largest Paint company, entered the
Indian market by acquiring ICI Paints (now Akzo Nobel India.)

Asian Paints is the market leader in the Indian Paint Industry and gets the major
portion of its revenue from the Decorative segment. Over the years, it has
outperformed its peers in every aspect by wide margins. This is mainly due to its
strong moat (competitive advantage) which lies in its strong Brand Equity and an
extensive Distribution Network. The company’s Net sales, Net Profit and Book
Value have grown with a 5 year CAGR of 22%, 27% and 28% respectively. Also
the company’s debt is very low and its ROIC has been 40% on an average over the
last six years.
Kansai Nerolac holds the second position in the Indian Paint market, and is the
market leader in the Industrial Paint Segment, owing to its leadership position in
the Automobile Paint segment. It is the subsidiary of Kansai Paints Ltd., the
leading Japanese paint company. Berger paints has the third position and derives
its major revenue from the Decorative segment. Akzo Nobel (former ICI Paints) is
the subsidiary of the world’s largest Paint Company and is at the fourth position.
Shalimar Paints is at the fifth position.
How does Paint Industry Work??
 The growing Drivers to the Industry

1. Increasing level of income and education

2. Increasing Urbanization
3. Increasing share of organized sector
4. Development of the Realty, Automobile and Infrastructure sector
5. Availability of financing options
6. Increasing Penetration in the Rural Markets

Outlook of Paint Industry in India

The Indian paint Industry has a wide potential for growth which is demonstrated by
the fact that the per capita consumption of paint in India is merely around 1 kg as
compared to about 20 kg in the developed countries or a global average of about 15
kg. So, the absolute consumption of paint in India is definitely expected to rise.

The market share of the organized sector is on an increasing trend. Also, the
contribution of industrial segment will increase with the continuing economic
development of the country. With India moving towards becoming a developed
economy, the decorative to industrial paint ratio of 70:50 is expected to move
towards the global average of 50:50. Thus the Indian paint industry is in its growth
phase and is expected to grow at a rate faster than that of GDP. The future
prospects of the industry are strong.

The 10 YEAR X-RAY facilitates analysis of the financial performance of the

company considering the five most important parameters. A 10 Year period will
normally encompass an entire business cycle. Analyzing the performance over this
time frame is essential to understand how a company has fared during the good as
well as bad times. The five most important parameters that one needs to look at are
Net Sales Growth Rate, EPS Growth Rate, and Book Value per Share (BVPS)
Growth Rate, Return on Invested Capital (ROIC) and Debt to Net Profit Ratio.
 CHAPTER 2

COMPANY PROFILE
COMPANY PROFILE: "Innovation, customer-focus, contemporary and
responsible products" –the driving forces of Berger Paints – reflect the very spirit
of its founder Lewis Berger – who laid the foundations of brand Berger way back
in 1760 in the UK. With modest beginnings in India in 1923, currently, Berger
Paints India Limited is the second largest paint company in the country with a
consistent track record of being the fastest growing, quarter on quarter, for the past
two years. Undergoing a number of changes in ownership and nomenclature in its
88 year old history in India, the company has come a long way. Starting out as
Hadfield’s (India) Limited, it had just one factory in Howrah, West Bengal. By the
close of 1947, Hadfield’s was acquired by British Paints (Holdings) Limited, UK
and came to be known as British Paints (India) Limited. In 1983, it became part of
the worldwide Berger group and thereby acquired its present name – Berger Paints
India Limited. Presently, the majority stake is with the Delhi based Dhingra
brothers.
From an annual sales turnover of Rs.25 lakhs, business revenues today are in
excess of Rs.2, 400 crores. Headquartered in Kolkata, with 7 strategically located
manufacturing units, and over 85 sales offices, the company also has an
international presence in 4 countries. With employee strength of over 2,500 and a
countrywide distribution network of 15,000+ dealers, Berger is acclaimed as a
game changer in the sector with a vibrant portfolio of paints and tailor-made
customer services in every paint segment. Committed to being a responsible
corporate citizen, Berger proactively pursues strategies both within and without
that bring multiple societal and environmental benefits to all stakeholders.

HISTORY OF BERGER
The name Berger or Lewis Berger is today synonymous with colour worldwide.
But actually the origin of the name dates back to over two & a half centuries in
England in 1760, when a young colour chemist named Lewis Berger, started
manufacturing in Europe, 'Prussian blue' using a secret process that every designer
and householder coveted. Mr. Berger perfected this process & art of the blue
colour, which was the colour of most military uniform of that time. Enriched by
the imagination of Lewis Berger, the unending quest for creation and innovation in
the world of colour & paints still continues. The history of Berger Paints India
Limited as a company started in 1923 as Hadfield's (India) Limited which was a
small colonial venture producing ready- mixed stiff paints, varnishes and
distempers setup on a 2 acres of land in one of India's first industrial towns close to
Kolkata in Howrah, Bengal. Subsequently in 1947, British Paints (Holdings)
Limited, an international consortium of paint manufacturing companies bought
over Hadfield's (India) Limited and thus the name changed to British Paints (India)
Ltd. The gentleman who took over, as its first managing director was Mr.
Alexender Vernon Niblet, an Englishman who was later on followed by Mr. Alfred
Godwin in 1962. Further in the year 1965, the share capital of British Paints
(Holdings) Limited was acquired by Celanese Corporation, USA and the
controlling interest of British Paints (India) Ltd was acquired by CELEURO NV,
Holland, a Celanese subsidiary. Subsequently in 1969, the Celanese Corporation
sold its Indian interests to Berger, Jenson & Nicholson, U.K. Then onwards the
company British Paints (India) Ltd became a member of the worldwide BERGER
group having its operations across oceans in numerous geographies and this
marked the beginning of Lewis Berger's legacy in India – which the company
would later take forward to enviable heights. From 1973 the company entered into
one of its dynamic phases of business with introduction of new generation products
in the industrial, marine and decorative segments under the table leadership of it
first Indian Managing Director Mr. Dongargaokar Madhukar.
Year 1976 was another turning point in the history of the company when the
foreign holding in the company was diluted to below 40% by sale of a portion of
the shares to the UB Group controlled by Mr. Vital Mallya. The reins of the
company were taken over by Mr. Biji K Kurien as its Chief Executive & Managing
Director in the year 1980. Finally in the year 1983, the British Paints (India)
Limited, changed its name to Berger Paints India Limited. The entire 80s & 90s
saw the lunch of many new products from company's stable such as premium
emulsions and high quality acrylic distempers. The COLOUR BANK tinting
system was launched through which the consumer could select from a range of
over 5000 shades. Again the fortunes of the company changed hands in 1991 with
UB Group's stake in the company bought over by the Delhi based Dhingra
brothers, Mr. K.S.Dhingra & Mr. G.S.Dhingra and their associates of the UK
Paints Group. Presently Dhingras' control a majority stake of almost 73% in Berger
Paints India Limited, a professionally managed organization, headquartered in
Kolkata, Mr. Subir Bose, a 10-year company veteran, took over as Managing
Director on 1 July, 1994. Completing a challenging 18 year stint at the helm with
immense success, Mr Bose retired on 30 June, 2012, handing over the reign of the
company to Mr. Abhijit Roy. Today the stewardship rests with the current
managing Director Mr. Abhijit Roy.
PHILOSOPHY OF BERGER

MILLENNIUM MILESTONES
In the new millennium Jenson & Nicholson, Nepal was acquired as a 100%
subsidiary and renamed Berger Jenson & Nicholson, Nepal.
The Motors & Industrial paints business of ICI India with its factory at Rishra;
West Bengal was acquired as a 100% subsidiary Berger Auto & Industrial
Coatings Limited and then merged with the Company in 2005.
Another new paints factory at Jammu was commissioned in 2003-04 and in 2005
the Company ventured into Russia through a foreign subsidiary.
New technical tie-ups were forged. Currently the Company has Technical License
Agreements with
(1) DuPont Performance Coatings in the area of automotive coatings,
(2) Nippon Paint Co Ltd for new generation of automotive coatings,
(3) Orica Australia Pty. Ltd. in the area of protective coatings,
(4) TIGERWERK Lack-u. Farbenfabrik GmbH & Co. KG, Austria for specialized
powder coatings and
(5) Nippon Bee Chemical Co. Ltd for coating on plastic auto parts and mobile
phones.
Lewis Berger Home Painting was launched, offering painting solution to customers
- making it a hassle free exercise. Illusions multi chrome finishes was also
introduced as "designer finishes for walls" allowing consumers to transform their
walls into fashion statements. This is once again a first for the Indian paint
industry.
The name Berger was prefixed with the first name of Mr. Lewis Berger and a
premium range of products was launched under his full name. The new trademark
includes LEWIS BERGER and incorporates a unique design and color scheme,
reaffirming the Company's commitment towards aesthetics, product quality,
packaging and better service to dealers and customers.
Ever since the launch of Lewis Berger range of products, the company is on a
growth trajectory and is in the process of expansion of its manufacturing facilities
& channel network across India. The Company's consolidated sales turnover in the
year ended 31st March, 2011 was Rs 2328.12 crs.
To avail the services all that a customer needs to do is call on Berger's Helpline
1901 - 3333 - 55 and enjoy customized service in the comfort of his home.

LANDMARK PROJECTS

Structures new and old sometimes become distinct landmarks. While a modern
structure gives you a glimpse of the changing cityscape, an ancient building makes
you relive a slice of history. But both could be reflecting the same colours. The
colours from Berger Paints that are used to brighten up the landmarks across India.
Here’s a quick look at some of the projects that have been touched by Berger.

Calcutta Club City Centre II, Rajarhat, Eden Gardens

Cognizant, Chennai Akshardham Temple, Delhi(2002) Common Wealth Games Village -

Delhi
 MARKET SHARE OF RESPECTIVE COMPANIES %
45

40

35

30

25

20

15

10

0
NEROLAC ASIAN BERGER ICI DULUX SHALIMA OTHERS
PAINTS PAINTS PAINTS R
MARKET SHARE OF PAINTS
41 15 10 9 8 17
INDUSTRIAL PAINTS
MARKET SHARE OF PAINTS
14 38 9 8 6 25
DECORATIVE PAINTS

YEARLY SALES GRAPH OF PAINTS

SALES GRAPH OF PAINTS SALES STAR

10
8
6 6
5
4 4
3 3
2
1 1

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
 CHAPTER 3

OBJECTIVE OF THE
PROJECT
AND
SCOPE OF STUDY
BACKGROUND

This project is basically based on the finding of the non-Berger dealers,

investigating a new avenue of distribution and finally bringing them into the
Berger Distribution Channel.

1. Tipping: It is the term which is linked to the mapping job. Prospective

dealers and painters are tipped with the help of a questionnaire so that a
valuable data is collected on them. I.e. the basic information like their
current business, area of operations, network module and their preference
towards Berger.

2. Investigating a new avenue in the market, this in marketing perspective is

increasing the customer base, which will in turn lead to sales expansion and
growth. In marketing terms we can define market expansion as a growth
strategy in which an organization targets existing products to new markets,
market development by targeting new geographic markets, new
demographic or psychographic segments, or totally new users.

3. Berger Distribution Channel: It is the existing channel of the organization

which is always at the target. The target of making it wide and open to all.
Most commonly, the desired result is to drive consumer behavior with
respect to a commercial offering. So we can say here that better the
opportunity of the business better is the company’s sales figures.
RESEARCH PROBLEM

In this case the research problem is divided into three heads:

Mapping the dealer’s satisfaction level, contribution in the sales volume, tastes
and preferences in terms of choice of a particular paint brand and scopes for
increase in the volume of sales.

Investigate a new market with existing products in hand i.e, the interested
parties, analyze their state, the brand preference, and the type of job they do so that
they can be converted into dedicated customers in near future.

Comparative analysis of the competitors with the company. Explaining the

various strengths and weakness of the Berger Paints Dealership/ Master Painter
and bringing them under the umbrella.

BERGER HYBRID DISTRIBUTION SYSTEM

OBJECTIVES OF STUDY

1) To find the preference and choices of NON-BERGER DEALERS in various

channels of business linked to paint job.

2) To collect appropriate dealers and painters identification and to know them

better.

3) To explore new places for distribution.

4) To survey the market potential of the company.

SCOPES

1) Selling and Distribution line should be studied and improved.

2) Customer satisfaction study has to be included.

3) Product quality study should be done.

4) This study can be extended by any paint manufacturer (Asian Paints, Nerolac or
even Berger Paints) to launch a new product in the market.

5) This study can be extended to analyze, if Berger Paints need to reposition / re

brand itself in the Indian Market.

6) Primary demographic profile of survey takers are from Tier-1 cities, this study
can be extended to other parts of the country and even to Tier-2, Tier-3 cities, so as
to identify and analyze how the marketing and promotional strategy of companies
vary in Tier-1 / 2 or 3 cities.
 CHAPTER 4

PROJECT METHODOLOGY
PROJECT OBJECTIVES:

The research includes meetings with the contractors and tele-calling painters and
filling up the questionnaire by above people for knowing their respective
contribution in the sales of their current business, the area of operations, their
interest towards Berger Paints and the respective market share in comparison to his
competitors. The views of the above parties were recorded as per the questionnaire.

The objective of the first phase is to differentiate Berger paints from the other
painting companies in the terms of market share, material quality, capacity of
holding up the contractors by schemes. In the first phase, I was given a territory
(T15 – South Suburban and South West Kolkata) for mapping non-Berger dealers
and a company database of non-Berger master painters. The purpose was to collect
some details of their business data. There was a certain questionnaire which
consisted of name, area of business, type of current business, its value per year,
monthly consumption of material, and willingness to deal with Berger. Also I was
able to differentiate Berger paints from the other painting companies in the terms
of market share by customer preference, material quality, and capacity of holding
up the contractors by schemes.

The objective of the second phase is to pitch the interested parties with a
company’s area sales manager or by telephonic calling and thereby explaining
them all about Berger Dealership or Master Painter’s Scheme. Also to find out the
strengths, weakness, opportunities and threats of Berger Paints.

Type of Project: Descriptive

Sample Unit: Kolkata

PROJECT INSTRUMENT:

Structured open ended questionnaire for both the two phases.

In the first phase, in the questionnaire the contractors or painters were directly
asked to give the information about them and their business. And lastly their
overall interest in paints and Berger Dealership or Master Painter.
In the second phase, the pitching part was done.

Data Collection Methods:

For Dealership:
Primary Data (Self Collected)

Primary Data: Interview, Direct interaction and survey different dealer.

Target Sample Size for proposed Survey: Maximum possible
Number of questionnaires filled up: 50
Number of Interested parties: 20

For Master Painter:

Secondary Data (Company Provided)

Secondary Data: Interview, telephonic calling and survey different painters.

Target Sample Size for proposed Survey: 170
Number of questionnaires filled up: 170
Number of Interested Parties: 45
Number of Partial Berger Painter: 35
Number of Painters pitched earlier: 10
Call up later after Ramzaan Season: 20
Number of Not Interested: 10
Number of Not Available: 35
Number of Painter’s who experienced problems from company earlier: 15

VISITED DEALERS OF OTHER

PRIMARY DATA BUSINESS CHANNEL AND ANALYZED,
COLLECTED THE INFORMATION VALIDATED
AND
INFORMATION FROM COMPANY SUBMITTED
SECONDARY DATA DATA BASE THE REPORT
 COLOUR BANK MACHINE FOR DEALERSHIP
SEMI-AUTO MACHINE AUTOMATIC MACHINE
Rs. 25,000 initial D.P. Rs. 40,000 initial D.P.
Rs. 25,000 x 4 PDC
payable in 4 installments Rs. 40,000 x 4 PDC payable
BOOKING SYSTEM
in 4 years in 4 installments in 4 years
Rs. 5,000 for AMC of Rs. 5,000 for AMC of
Computer Computer
1. Tinting Machine & Tint
Colors (Manually 1. Tinting Machine & Tint
operated) Colors (Automatically)
DEALER GETS 2. Gyro shaker 2. Gyro shaker
3. Computer & Color 3. Computer & Color Bank
Bank software software
4. UPS 4. UPS
If the dealer fulfill the If the dealer fulfill the
SCHEMES AND OFFERS yearly target he can get yearly target he can get an
an installment wavier installment wavier

MASTER PAINTER SCHEME:

1. The painter has to first register with the company profile. Usually done by
the business development executives of the company.
2. His mobile number gets registered with the company and an MP account is
opened in his name.
3. Whenever the painter purchases any Berger products, he needs to call up the
customer service center (CCN: 1800 103 6030) where he needs to tell his
purchase volume.
4. According to his product purchase he account will be credited with points,
the higher the product category the more points allotted.
5. Every week a SMS will be sent to his registered number stating his Account
Points.
6. On fulfillment of targets, the painter will be rewarded with gifts and cash
benefits.
 CHAPTER 5

DATA ANALYSIS
AND
INTERPRETATION
 MEETINGS WITH DEALERS TO PITCH DEALERSHIP

A study was carried on 50 dealers in Territory 15, Kolkata

NOT A GOOD
COMPANY, 8

INTERESTED, 20

NOT INTERESTED, 17

PREVIOUS
EXPERIENCE NOT
GOOD IN PAINT
BUSINESS, 5

INTERPRETATIONS

1. Maximum parties showed their willingness to work with Berger.

2. Few have experience a poor business earlier during their association with the
paint industry.

3. Some have a negative feeling and word of mouth for the company.

4. Around 17 sample units were not interested as they are satisfied with their
current business or have a shortage of Capital Investment in current
scenario.
 TYPES OF NON-BERGER DEALERS SAPMLED & INTERESTED

25

20
20

15

10
10 8
7 7
5
5 4
3 3
2
1
0
0
WOOD HARDWARE SANITATION TILES & MARBLE PAINTS IRON & CEMENT

SAMPLED INTERESTED

INTERPRETATIONS

1. The maximum interest was shown from wood industry, around 20 dealers
were sampled and around 50% showed willingness to work.

2. The same result was shown from the hardware dealers.

3. A direct business linkage to paints is of Tiles industry, but there are no

sufficient dealers in the assigned territory. Hence only one dealer showed
interest when explained that it can be a monopoly business for him.

4. Associated with paint job currently, only 2 dealers out of 5 showed interest
to shift them from Unorganized to Organized paint industry.

5. A very poor collection was observed from Iron & Cement dealers as their
volume and nature of business it completely different from Paint business.
 INTERESTED DEALER’S AREA OF OPERATIONS

BY LANES, 3

CROSS ROADS,
4
MAIN ROADS,
13

INTERPRETATIONS

1. During the sampling process it was observed that the large number of
interested dealers have their shops on main roads. By this we can analyze
that if they are made Berger Dealers there will be really good amount
marketing for the company.

2. Some have their shops situated on cross roads, which will also be an adding
account of marketing and publicity for the company.

3. A few are situated in by-lanes so there is a chance of marketing and display

in the inner parts of the city.
 ANNUAL SALES TURNOVER OF THE INTERESTED PARTIES

MORE THAN 30
LACS, 4
0 LACS TO 10
LACS, 7

10 LACS TO 30
LACS, 9

INTERPRETATIONS

1. Around 7 sampled interested parties have an annual turnover up to 10 lacs.

This can be a good account for Berger as the parties are financially sound.

2. Major amount of interested dealers are having a turnover between 10 lacs to

30 lacs. So giving them dealership can be of great value as they can play
majorly in the markets.

3. Few sampled units have a turnover of more than 30 lacs. These are big
mouth accounts. They can really boost up the sales for company there by
adding good marketing and publicity.
 A COMPARATIVE INTERPRETATION

NATURE OF BUSINESS AREA OF OPERATIONS ANNUAL TURNOVER

MORE
0 LACS TO 10 LACS TO
TYPE MAIN ROAD BY LANES CROSS ROAD THAN 30
10 LACS 30 LACS
LACS
WOOD, 10 8 1 1 3 5 2
HARDWARE, 4 2 1 1 3 1 -
SANITATION, 3 2 - 1 - 1 2
TILES & MARBLES, 1 1 - - - 1 -
PAINTS, 2 - 2 - 1 1 -
IRON & CEMENT, 0 - - - - - -

INTERPRETATION

1. By analyzing the above table we see that the maximum benefits the
company can gain is from wood dealers. They satisfy the extreme
requirements of both location on Main Road and Turnover of above 30 Lacs.

2. Followed by the sanitation dealers, they also have the same portfolio.

3. If the Berger wants to start with small or medium accounts the Hardware
dealers are best at choice, as their location and capital satisfy the business
needs.

4. By the above sampling we found that Iron and Cement dealers are not
satisfying the link to paint industry, hence they are not to be approached in
future scope.
 TELECALLING THE PAINTERS FOR MASTER PAINTER’s SCHEME

A survey was conducted on 170 sample units, data provided by company.

45
45
35
40
30
35
30
20
25
15
20
10 10
15
10
5
0

INTERPRETATIONS

1. A good sample size were really interested to know about the scheme, hence
they were willing to work with Berger.
2. Around 35 sample units were partial dealers; they contribute very less to the
sales figures of the company.
3. Around 10 sample units were pitched earlier; they know about the scheme
and have got registered.
4. 50 sample units were did not respond as they were not available or asked to
call in future due to festive season.
5. 10 sampled units were not interested, the reason being they don’t participate
in such schemes or have been linked to other competitive paint companies
with better offers.
6. While sampling a few gave complains and suggestions about the company.
They have experienced a poor backup service during their association with
Berger in past.
CHAPTER 6

CONCLUSION
After analyzing the data obtained from the consumers and the dealers it was
evident that Berger Paints is one of the market leader. It enjoys a good potential
customer base in the Kolkata market. I came up with the following suggestions for
improving upon the current customer base and expanding into other high potential
sectors.

Sales promotion committee should be formed to formulate and implement new

market strategies to compete with competitors and to extend the market share.

Instead of giving standalone dealership, the company should open Berger Paint
Zone Store, where the company takes the initiative of Marketing, Selling and
Customer Services.

Company sales representatives must maintain relations with construction

companies as well as with painting contractors of the competitors.

Company should conduct awareness programs, at least to make the customers to

know about the latest development in the paint industry and their products.

Companies should even concentrate on quality of the products and services as the
customers are not satisfied.

Advertisement should be increased to update the image of Berger Paints in the

changing environment.

Company must look after their sales representative’s relationship with dealers as
they are the first hook to the customers.

Company should convey the information about their new products to the customers
as the coverage of Berger Paints is very much unknown to the most of the interior
parts of city. Therefore the company needs to emphasize more on the promotion of
products.

Company should promote their “Home painting” association for better business
profit. Since the intermediaries play a very important role in the marketing of the
brand.

Company should start to think about penetration of rural market by several small
size packs of products like Asian Paints.
 SWOT ANALYSIS

Strength
1. Wide range of products and service offerings.
2. Substantially huge customer base and preferred by customers

Weakness
1. Dependence on Paint segment only
2. Less interactive with potential customers and contractors.

Opportunity
1. New segment of customer targeted
2. Growing brand conscious population in India

Threat
1. Other pioneer brands gives good cut-throat competition
2. Market scenario and environment changing very fast from products to
services. Therefore more focus should be made on service part.
 CHAPTER 7

BIBLIOGRAPHY
All the data and material is taken as reference from the following sources.

1. WIKIPEDIA.COM

2. SLIDESHARE.COM

3. STOCKSHASTRA.MONEYWORKS4ME.COM

4. BERGERPAINTS.COM

5. IPAINDIA.ORG

6. GOOGLE.COM
ANNEXURES