Market Study of Berger Paints Bangladesh Limited

martplace break down of Berger key fruits Bangladesh hold1.1 enigma BackgroundBangladesh create mart place is experiencing a superb growth of 8-10% per annum consistently in the late 90s and early course of instructions of this degree centigrade principally because of a boom in real estate development1. Besides, this write step to the fore in growth of demand is interchangeablely to persist or may even witness an upswing in the future as the country moves from countrified base to urban base project (Real estate). there is a Brobdingnagian possibility that headstone industry provide and thrive because s till 39% of the target market ar presently using key fruit and others are progressing to get into the tr decision of using key instead of the tralatitious way of whitening their dear houses. According to the cement manufacturers of Bangladesh, the cement market is as well ripening at some 4% p.a., which correlates quite salubrious with our paint marke t growth information. The limited growth up to instanter in industrialization and per capita income in Bangladesh has restricted the size of the paint market, which is currently at around Tk.755-800 crores (1.5-1.6 crores gallons)2. However a good number of topical anaesthetic paint manufacturing companies (40 organized and at least 50 more in the informal sector) hold been operating in this small market. Quite a few of these companies are producing paints of multinationally acceptable character colligateence and genuinely seriously, the installed wholeness shift outpution capametropolis of the local paint companies is double the introduce local market demand.Berger, the market leader in the Bangladesh paint market, is unmatched of the oldest names in the global paint industry. It has its origin in the year of 1706 and from then on the caller is operating with strong adherence to quality and social responsibility. Initially, Lewis Berger, a German national, founded dy e pigment making cable in England. Lewis Berger Sons special(a) grew rapidlywith a strong reputation for origination and entrepreneurship culminating in perfecting the functioning of making Prussian Blue, a deep ghastly dye, a ruse widely apply for many European armies uniform. product of dyes pigments evolved into production of paints coatings, which till today, perseveres the core vexation of Berger. right away, Berger offers all kinds of motion picture solutions in enhancive, industrial or marine surgical incision for both decorative and protective purpose. base on the secondary literature vision, experts opinions and consumers requirements, the broad and the unique(predicate) Objectives of the research project been set-Market Study of Paint Industry in Bangladesh. This objective can be met by next the content methodology described in the forthcoming chapter.1. 2 Origin of the StudyAs a partial requirement for the completion of the MBA program, internship p rogram is a springy part which circulates the door to gather the practical issueledge in proportion with the theoretical noesis.MBA program at University of capital of Bangladesh requires a 3 months yearn internship program. As an intern, I was placed in Unitr termination express- Affiliated with McCann Worldwide. I worked for 3 months in the Unitrend Limited (Brand Division), under the supervision of Jahidul Islam, senior(a) Brand administrator of Unitrend Limited. As an intern of the department I was imploreed to assist the Brand character (Berger pints Bangladesh Limited). After consultation with my supervisor, my faculty advisor at University of Dhaka, Dr. Serajul Hoque (Professor, Department of Marketing), I decided to explore Market Study of Berger Paints Bangladesh limited (BPBL).1. 3 ObjectivesBased on the secondary literature survey, experts opinions and consumers requirements, the broad and the specific Objectives of the research have been set.1.3.1 Broad Object iveMarket Study of Berger Paints Bangladesh Limited (BPBL).1.3.2 Specific Objectivesi. To tumble market trends market shares of BPBLii. To Analyze competitor behavior and performanceiii. To image current gratification train of BPBLiv. To find out whether current products of Berger Paints Bangladesh Limited meet consumer expectations or non.v. To identify the reference group ( painters, Architectures,) influence of the clients in choosing specific flaw.vi. To find out the market capability for existing products (e.g. market size, growth, changing sales trends)vii. To Assess the electromotive force for new products that are not provided by the current paint manufacturers ( in term of New product Development)viii. To forecast new user for existing products1.4 Approaches to the Problem1.4.1 Theoretical theoretical accountA pull demand is created when demand is created in the market and is the close beneficial. To implement such a st ordaingy we have to eldest appreciate the needs of the market, judging the perception of customers and contractors and finding out new locations and turn them into new dealers so that in that location is more availability of the product in the market.Assessing competitor market and developing a strategy to kill or e verywherecome competition is the second part of the field of larn. Opening new dealers in the market provide take care of this. Expanding the dealer network helps in market penetration.All the effort allow for be a waste if there is no demand from the end consumer of goods. Painters, contractors, advertisements, friends and family influence the end customer. So the end customer generates the main demand and Berger Paints must analyze customer satisfaction over time.A Job Satisfaction Data FormHow did you know regarding the go being rendered by alkali Decor?TV squash..Friends . Word of Mouth OthersWe would like to have your comments on the following profession details 1. ShadeVery comfortable . Satisfi ed .. Not Satisfied..2. DesignVery Satisfied . Satisfied .. Not Satisfied .3. cunning of PaintersExcellent Good. Average.. Poor. 4. Service by pretension ConsultantsExcellent Good. Average.. Poor.5.Overall Service by office DecorExcellent. Good. AveragePoor. 6. Will you refer Home Decor to anybody in near future? Yes. No .. 7. shutting d star according to the time scheduleYes. No ..1.4.2 Analytical stick1.4.3 question Questions HypothesesA structured questionnaire has been used to collect data. Multiple excerption questions and dichotomous questions have been used to develop structured questionnaire.H0 There is no association between customer satisfaction (DV) and factors influencing customer satisfaction (IV).H1 There is an association between customer satisfaction (DV) and factors influencing customer satisfaction (IV).1.5 Problem DefinitionManagement Decision Problem 1. Is the Current satisfaction level of Berger Pints Bangladesh Limited satisfactory?Marketing Research Problem 1. To square up the factors those feign the customer satisfaction level of Berger Paints Bangladesh Limited.1.6 Problem Variables1. Dependent VariableTo determine customer satisfaction level of Berger Paints Bangladesh limited.2. Independent VariablesPriceAvailability change in paintVariation in ShadeAttractive softwarePacket coatLongibilityDiscolorationSwellingPowderingThinner Requirement1.7 Research TimelineActivitiesTime (Week)1-23-4567-891011-12Preliminary conceptualizationSelection Training of FieldworkData CollectionData Analysis pen Report PreparationRerport PresentationFinal Report Preparation1.8 LimitationsThe study aims to explore analyze market study of Berger Paints Bangladesh Limited and find out if there is any scope for its improvement. In doing so, I have encountered the following problemsThe Large attempt size could detect the problems more accurately.I was uneffective to dedicate sufficient time to make an in-depth on such an important issue. It is quite difficult to write closely an organization within 3(lead) months. obtuse workload at office was one of the main barriers of this study and superfluous time for doing the survey could hardly be extracted.Another limitation of this report is Enterprises policy of not disclosing some data and reading for obvious reason.2.0 books ReviewThe annual report of some of the leading paint companies of Bangladesh including Berger Bangladesh Ltd., Asiatic Paints Ltd., Elite Paints, Sagor Chemicals troupe Bangladesh Ltd., and so on were studied on with whatever reports that were available. However, a good number of them were back dated and were of little use in view of the fast changing market position. Apart from the literature so far consulted, the initial phase of the methodology began with the review of relevant literature on the issues indicated under the Top-down and Bottom-up approaches as well as aspects under Projection, assimilation of relevant data available in the second ary sources, and then conducting a desk research.2.1 Literature in the official website of Berger Paints Bangladesh LtdWith a view to bolstering consumer satisfaction, Berger Paints Bangladesh Limited has introduced Berger Home Dcor on June 15, 2002 by dint of and through which one can get an array of profits pertaining to exposure. Berger Home Decor offers two-stage services1. Free Service2. Paid ServiceBerger Home Dcor is currently offering wide outrank of services to its prospects and existing consumers embracing technical foul advice on surface eagerness and application guideline. Paint selection. corpus selection. Painter/ Contractor selection and Color scheme.2.1.1 Literature on the Fundamentals of Berger India Illusions which create a basis for BPBL Illusions.Report on BPIL Attachment on IllusionsSyed Tanzim Rezwan, protagonist Product Manager, BPBL What is Illusions?An illusion is basically mentioned as Designers solution/finish. It is more think to the applic ation procedure than product. Regular products are applied with some specialise tools and in some cases with some specialized chemicals to get the desired name. As it is more related to the application procedure, Illusions is offered as a full painting solution rather than a product and that is why it is more like offering a service than a product. Objectives of rearing IllusionsThe objectives are Enhancing the trade name image of Berger Value addition to the existing painting service r separately of usageIllusions is basically a instauration finish. So it is more steal for the privileged walls. Plastered walls or wooden surfaces are the preferred surfaces for Illusions use. unmatched has to remember however, that Illusions is more like a designer finish than a protective one. So areas with exposure to high heat or weewee are not prescribed for Illusions use. Distribution Strategy The way Illusions is offeredBerger India is using their Home Dcor facilities to offer Illusi ons in different cities. Their basic judgement is to offer the painting solution through the existing panel of painters they have for different cities.2.1.2 Literature on the Illusions Procedureas a service escape, true in Berger India and which formed a basis for the service flow of Illusions in BPBL with some modifications literature on client generation for Illusions through promotions by Berger IndiaModus Operandi Satellite Operations BPHD/IllusionsBerger IndiaIllusions procedure as according to Berger India On receipt of enquiry the Customer Support Manager allow yap away the site and complete finalization of the design/area of application/shades and fill into the conjecture estimate page of the customer fact institutionalize The final estimate from the customer fact file is to be fill up in and give to the customer. On customer agreeing to the job, light speed% exhibition by means of a single current dated cheque is to be taken from the customer and a painting sche dule has to be developed for the job. The cheque details and the painting schedule have to be alter into the customer fact file in relevant pages. On realisation of the cheque, the materials for the job may be purchased from the dealer as deposited by the destination manager. Material will be issued by the dealer tho against the order. Dealer on delivery of the material to the site has then to raise a bill on Berger Paints Home Dcor for the material supplied and submit it along with a copy of the Material Requisitions form. Tools required for the job are to be signed out to the painter who has been al fit(p) the job. A Before photograph is to be taken of the site and on completion of the job. An After photograph is also to be taken for each of the areas where Illusions designs has been applied. On completion of the job, the completion security notice has to be signed by the customer and following this, the warranty security system has to be handed over to the customer along w ith a acquaintance ka faida reference booklet.Lead GenerationAll of the below mentioned modes of promoting Illusions will be followed in varying mixes depenmding on the efficiency of the individual methods. Referrals 10% of the job grade will be paid to the referring party as referral counsel Dealer Contractor Architect Interior Decorator2.2 Literature on Asian Paints debut Bangladesh paint market-Asian Paints starts proceedings in Bangladesh04 kinfolk 2002Asian Paints, Indias largest paint company, has begun its operations in Bangladesh. The entry into Bangladesh marks Asian Paints 11th joint venture in international markets and its largest green-field venture in overseas markets.The inauguration of the operations of Asian Paints (Bangladesh) Ltd was done by Bangladesh look of Industries M K Anwar and Asian Paints (India) Ltd vice-chairman and managing director Ashwin Dani. M Rahman, executive chairman, dining table of Investment, Bangladesh, and M L Tripathi, High Commissi oner of India to Bangladesh, were the other distinguished dignitaries at the inauguration.state Dani The opportunities that the Bangladesh market provides for Asian Paints are immense. The experience that we have gained from operating in three out of six countries in the SAARC South Asian Association for regional Cooperation region has armed us with excellent expertise to operate in this region. We would like to provide value for money and the complete range of products for the Bangladeshi consumer.He further said that low per-capita consumption of paints, vast potential to boost the market, limited product range, emergenced urbanisation and consistent gross domestic product growth of around 5-6 per cent have been some of the reasons for Asian Paints entering into this market. Moreover, this venture will help the company consolidate its position in the SAARC region.Asian Paints (Bangladesh) Ltd is a joint venture between Asian Paints (India) Ltd, Indias largest paint company, and Confidence Cement Ltd, one of the largest cement producers in Bangladesh. Asian Paints will hold 51 per cent stake in the company, while 49 per cent will be held by Confidence Cement. A fully-integrated paint manufacturing unit has been set up and is situated in the Ghazipur district, north of Dhaka, which will service the stainless Bangladesh paint market.Asian Paints will introduce the Apcolite range of products, which is its premium quality range in international markets, and the Decora range, which is its international brand for economic system products. Under the Apcolite and Decora brands, many product segments will be carry in the initial phase.Asian Paints will enter into segments like interior wall finishes, the exterior segment, enamels and the wood finish segment through the above-mentioned brand names. The company will immediately introduce the concept of eight-fold shade choice to the Bangladeshi consumer in most of its emulsion paints. The launch of multiple shades in its Apcolite range of emulsions will provide to the Bangladesh consumer, for the frontmost time, a wide choice of colors that was not previously offered by any paint company.The totality Bangladesh paint market is estimated to be over 30,000 MT, valued at around INR 2200 million (US $45 million). The market is growing by around 5-7 per cent. The GDP growth for the country has been consistently around 5 per cent and the per-capita paint consumption is around 250 gms. The market, thus, provides high potential for growth as well as an opportunity for paint manufacturers to upgrade and expand the market.2.3 Literature on Aqua Paints Architects Awards-Four to receive Ice Today Aqua Paints Award Shawkat Marcel KhanFour interior designers will be awarded the Ice Today-Aqua Paints Award 2007 for their works on interior design. The names of the winners will be announced during the award-giving ceremony which will be held at the Radisson Water Garden Hotel in the city on July 14.The awa rd will be given for innovation, creativity and outstanding achievements in interior design in Bangladesh, said the organizers at a briefing, held at a city hotel on Thursday. The grand prize will not be given as the jury comprising Mustafa Ameen, Nahas Ahmed Khalil and Kazi Golam Nasir did not find any design able for the award, said the executive editor of the monthly magazine Ice Today, Ziaul Karim. each(prenominal) winner will receive the Commendation Award valued at Tk 25,000, a crest and a Nokia set, he added. A total of 27 designs were submitted in residential and Non Residential categories. The jury short-listed the entries to eleven designs in the first phase. Then, they visited each sites and narrowed down to four designs taking three from Non Residential category.2.4 Literature on Home Dcor Coverage and PaintersIn total there are Home Dcor outlets in Bangladesh in total. However, asunder from the specific regions where these outlets are situated, consultants and painter s also travel to nearby areas and thus affectively cover a wider area as shown in Fig 2.2.The following tables and s are information gathered and organized by BPBLTable 2.1 Painters and Contractors of Home Dcor in BangladeshDepotContractorPainterDhaka1538Chittagong514Sylhet37Comilla25Khulna38Bogra12Rajshahi12 content Total3076The following tables and s are information gathered and organized by BPBL3.0 MethodologyThe methodology upon which the team undertook the appellation comprises of top-down and bottom-up approaches effected by literature review, secondary data analysis and desk research, and by conducting surveys, which after consultation with the experts yielded a pragmatic Market Analysis preceded by an overall industry situation, competitor analysis and customer analysis.3.1 Nature of Research and Sources of InformationThe conclusive research design take is descriptive in nature. The sources of data were both primary and secondary. It involved collection of data about the c haracteristics of the paint market, competitors and different supply chain members. utility(prenominal) information was gathered from websites, newspaper articles, journals and annual reports of different paint companies. The design of collecting primary data from customers (end users) follows the following section.3.2 Sample DesignThe judge design consists of defining the target population, determination of sample size and sample method.3.2.1 Target PopulationTo collect data from customers (users) the target population is specify to be the places of Bangladesh. The country was considered to be composed of three economic zones (High, median(a) and Low) on the basis of economic activities as follows regulate 1 (High) Dhaka, Chittagong and Sylhet DivisionsZone 2 (Medium) Barisal and Khulna DivisionsZone 3 (Low) Rajshahi Division.Source Statistical year book of Bangladesh role of Statistics, 2007As the use of paint is very much related with rate of urbanization, the divisiona l cities of Zone 1 were selected. However, another divisional city was selected indiscriminately from the Zone 2 to make the sample more representative to the entire population and it turned to be Khulna city. The sole division of Zone 3 could be taken into consideration too, but after consultation with the experts, it was omitted from the sample plan for better utilization of the resources available to the Research Team.3.2.2 Sample SizeFor determination of sample size, the Research Team tried to adopt various(a) taste techniques. But as the ratio of house owners (who are the end users of paint) is too small to the entire population of Bangladesh, the sample size becomes very small. So, after discussion with experts and the appointing authority, the sample size per city is determined to be 100. So the total sample size of this study is 400 (100X4). The dispersal of the samples are furnished in table 3.1.Table 3.1 Sample diffusionDhakaChittagongKhulnaSylhetTotalEnd users808085 85320Dealers/Retailers10105530Painters555520Architect/Developer555530Total1001001001004003.2.3 Sampling MethodSystematic taste method was take for selecting samples. Households were considered sampling units and owner of the household was considered sampling elements. The holding list of urban center Corporation was used as the sampling frame. The frame was divided by the number of samples required to determine the sampling intervals. Then the first sample was selected from the first sampling interval following simple random sampling and then the rest of the samples were selected from subsequent sampling intervals as usual. If a household was found ineligible then the next adjacent household was considered the sampling unit.For conducting the surveys on the duct members, samples were selected based on judgment. The fieldwork was carried out during the period of may 28 to June 10, 2009.3.3 Instrument and Scale for Data CollectionStructured Questionnaire was used as the instrumen t of data collection. Five sets of questionnaire were used for customers, dealers, retailers, painters and developers respectively (Provided in the Appendix Section). Questions set in the questionnaire were worded with simplest form possible. Rank order plate and 5 point Likert scale were used in these questionnaires. In each questionnaire, at least one question was set as an open ended question to reveal the thoughts of the respondents regarding paint industry of Bangladesh.After preparation of the questionnaires, they were pretested using a small size of sample taken from Dhaka city. The reliability of the questionnaires was judged from the result of pretest. Coefficient alpha was used as a measure of internal consistency check for the questionnaires.3.4 Field horizonField Survey procedure was used to collect data from the primary source. The bases covered hold customers (end users), dealers, retailers, painters and architect/developers. Furthermore, a panel of experts was consu lted including experts in Chemical Engineering, Civil Engineering, Architecture, Marketing, political economy and Supply Chain Management. A brief list of the expert share is provided in the appendix A.The purpose, information coverage and other requirements of the study were further reviewed and finalized after consultation by the Research Team with the Unitrend management. Obviously the study was national in nature and the sample size was large large to be representative of different segments. The steps involved in conducting survey were including sampling design process, questionnaire preparation, fieldwork, and data preparation and analysis.3.5 Fieldwork and SupervisionThe fieldworkers were trained soundly for carrying out the surveys effectively. The training included as to how to select respondents, introduce themselves to the respondents, ask questions, provide reinforcements to the respondents, record the responses etc. Fieldworkers were students of Department of Marketin g from the Faculty of descent Studies of University of Dhaka. A member of the Research Team supervised the fieldwork. He monitored the activities of the investigators very closely, provided them support and motivation, and in some cases, took part in the field investigation.4.1 Berger Paints Bangladesh Limited An OverviewBerger, the market leader in the Bangladesh paint market, is one of the oldest names in the global paint industry. It has its origin in the year of 1706 and from then on the company is operating with strong adherence to quality and social responsibility.Initially, Lewis Berger, a German national, founded dye pigment making business in England. Lewis Berger Sons Limited grew rapidly with a strong reputation for innovation and entrepreneurship culminating in perfecting the process of making Prussian Blue, a deep blue dye, a color widely used for many European armies uniform. Production of dyes pigments evolved into production of paints coatings, which till today, remains the core business of Berger.Berger Paints started its sailing into the sea of Bangladesh from pre-liberation era, to be meticulous in 1950. In Bangladesh the major milestones of Berger Paints are given below1950 Started operation in Bangladesh by importing Paint from Berger UK1970 giving medication of Chittagong Factory1980 Named as Berger Paints (BD) Ltd. from Jenson Nicholson (JN)1991 BMRE in Chittagong Factory1995 Establishment of Double Tight Can Manufacturing pose1999 Establishment of Most Modern Sate-of-the-Art Paint Production Plant 2002 social organization of own building for the Corporate Office in Dhaka2004 Establishment of Powder Coating Plant* Owns Corporate Office located in Dhaka* 2 Factories at Dhaka and Chittagong* 7 strategically located Sales Offices throughout the whole country.* A wide distribution channel reaches the whole country with a network of more than 1500 dealers4.2 Vision and charge of BPBLBerger emphasize highly on the ethical co mmitment to produce benchmark quality product.4.2.1 VisionWe shall remain as the benchmark in the Paint industry by being an innovative and technology driven Company consistently delivering world-class products ensuring best consumer satisfaction through continuous value added services provided by highly professional and committed team.4.2.2 MissionWe shall increase our turnover by 100% in the next five years.We shall remain socially committed ethical Company.4.3 Area of OperationBerger Paints operates in three broad segments of the paint industry.4.3.1 nonfunctional Paint* The objective is to beautify the surfaces with vindication from corrosion and erosion* This business category mainly targets household segment offered to the consumers through a dealer network constituting major revenue earning business area of BPBL.* Products fulfill the aesthetic value of the consumers.4.3.2 industrial* Tailor do products to cater to the specific needs of customers.* Products give protectio n to the surfaces in extremum situations like severe hazardous environment, high temperature, movement of heavy materials and machinery etc.* Direct marketing approach is being used to promote the Industrial Coatings* Main customer groups Garments Factories, Chemical Plants, Fertilizer Manufacturing Plants, Consumer Durable Manufacturing Plants etc.4.3.3 naval* Products are being offered mainly through direct marketing approach.* oxalis Yards, Bangladesh Navy, Passenger Ships are the main user groups.* Market is mostly operose in Dhaka and Chittagong.4.4 Manpower StructureIt is consisted of more than 300 employees of whom about 160 are general workers and the rest are White snatch employees. These employees are working in different factories and depots of the company. The positional hierarchy of the company is as follows1. Managing Director2. Director3. General Manager (Executive -1)4. Executive -25. Senior Manager6. Manager7. Assistant Manager8. Officer (i, ii, iii, iv) / Mana gement Trainee4.5 prepare AnalysisThe SWOT Analysis of Berger Paints is presented belowStrengths* Corporate image as pioneer in paint industry and one of the leading paint companies of the world* Wide distribution network* Rich experience on Bangladesh Paint Market* Presence in all major segments of the market* Strong financial baseWeaknesses* Insignificant presence in the international satellite channels* Perceived as premium priced company at semi-urban and rural market* Higher dependence on large dealers* Consumers knowledge gap about paints painting systemOpportunities* Growing market* physical exertion of positive corporate* image for corporate diversification* To popularize economy products at remote marketThreats* Fierce competition in the Bangladesh market* Credit-driven market* Strong command of few dealers in the market through sub-dealer* Unethical and corrupt practices by the local companies* Low priced imported products are entering due to trade liberalization5.1 Ex isting SituationThe paint market of Bangladesh comprises primarily with urban consumers as the rate of construction and thread in urban areas is very high compared to that of the semi urban and rural areas. The mix of consumers in paint market encompasses with 80% urban consumers along with 12% semi urban as well as 8% rural consumers ( 5.1).The demand in the market can be categorized into 4 broader segments based on use Decorative, Industrial, Marine and Automotive paints. Decorative products are the used in households for beautification of buildings and interiors. This is the biggest among all segments. Industrial products have mainly two types of uses industrial raw materials and protective or maintenance. But in spite of the dual use, the segment is only 8% of the total demand. crave for marine products are only 5% and for automotive paints, it is even lesser, only 3%. A detail of the product demand is endowed in 5.2.Decorative produ