Project Report Berger Paint

Internship Project Report

on
A Comparative Analysis of Its Advertisements With Its Competitors OF
BERGER PAINTS INDIA LIMITED”
CONTENTS

Chapter 1:Overview Of Paint Industry In India …………………………10

Chapter 2:Company Profile …………………………24
Chapter 3:Research Problem And Background …………………………45
Chapter 4:Objectives And Scope Of Study …………………………48
Chapter 5:Project Methodology …………………………50
Chapter 6:Data Analysis And Interpretation …………………………54
Chapter 7:Comparative Analysis Of Advertisements …………………………80
Chapter 8:Observations And Findings …………………………85
Chapter 9:Recommendations …………………………89
Chapter 10:Limitations And Scopes Of Study …………………………92
Bibliography And References …………………………94
Appendix…………………………96
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CHAPTER1
OVERVIEW OF THE
PAINT INDUSTRY IN
INDIA
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1.1 Brief Description
The Indian Paint industry, estimated to be a Rs.21,000 Cr. industry, has been growing
at a rate of above 15% for the past few years. The organized players of the industry cater to
about 65% of the overall demand, whereas the unorganized players take care of the remaining
35%, in value terms. The unorganised players mainly dominate the distemper segment.
The industry consists of two segments, namely
 Decorative segment – caters to the housing sector and

 Industrial segment - consists of powder coatings, floor coatings and
other protective coatings catering to the automobile, marine and other industries.
In the domestic market, Decorative segment accounts for 70% of the total demand for
paints whereas the industrial segment accounts for the remaining 30%. Globally, the demand
for paints is almost equally distributed, where both the segments account for close to 50% of
demand.
The paint industry volume in India has been growing at 15% per annum for quite some years
now. As far as the future growth prospects are concerned, the industry is expected to grow at
12-13% annually over the next five years. FY11 was a challenging year for the industry as a
whole due to subdued demand across key sectors and rising inflation.
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INDIAN PAINT
INDUSTRY
DECORATIVE INDUSTRIAL
SEGMENT (70%) SEGMENT (30%)
PREMIUM MEDIUM DISTEMPER AUTOMOTI CONSUMER

RANGE RANGE RANGE VE SECTOR DURABLES,
(HIGH END (ENAMEL (LOW END (2/3 rd MARINE
ACRELYC PAINTS) PAINTS) SHARE) PAINTS,
EMULSION) OTHER OEMs
METROS SMALL SUB URBAN

AND CITIES AND
LARGE RURAL
CITIES AREAS
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1.2Working Of The Paint Industry
The working of the Paint industry has been explained pictorially below:
MAJOR INPUTS MAJOR PRODUCTS END USERS
RAW DECORATIVE
PRODUCTS: PAINTS, HOUSEHOLDS,
MATERIAL
EMULSIONS, CONSTRUCTION
(56%) VARNISHES, FIRMS
DISTEMPER, WOOD
FINISH, METAL FINISH, (70%)
SPECIALIZED PAINTS
(WEATHER
PROTECTION, NON
SELLING AND TOXIC)
ADMINISTRATI
ON EXPENSES
(22%) INDUSTRIAL
PRODUCTS: POWDER AUTOMOBILE
COATING, SURFACE OEMs, CONSUMER
COATING, FLOOR GOODS,
COATING, HIGH MANUFACTURERS
EMPLOYEE M MARINE
PERFORMANCE
COST INDUSTRIES
COATINGS,
(22%) SPECIALIZED
COATINGS (THERMO
PROTECTIVE, RUST
PROTECTIVE, NON
COMBUSTIBLE)
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1.3 Industry Structure
Indian Paint Industry is over 1000 years old. Its beginning can be traced back to the
setting up of a factory by Shalimar paints in Calcutta back in 1902. Till the Second World
War the industry consisted of small producers and two foreign companies. After the war, the
imports stopped which led to the setting up of manufacturing facilities by local entrepreneurs.
Still the foreign companies continued to dominate the market, which in a way is the current
scenario as well. The initial decades saw the complete dominance of British Paint companies
such as Goodlass Walls (now Goodlass Nerolac), ICI, British Paints (now Berger Paints),
Jenson & Nicholson and Blundell & Eomite. The Indian Paints sector is valued at Rs 6,800
crores in value terms and is very fragmented. The current demand is estimated to be around
650,000 tonnes per annum and is seasonal in nature. The per capita consumption of paints in
India stands at 1.0-kg p.a. as compared to 1.6 kg in China and 22 kg in the developed
economies. India's share in the world paint market is just 0.6%.
The Indian Paint industry can be divided as:
 The organized sector comprising of large and medium size units

 The unorganized or the small scale sector.
There are now twelve players in the organized sector with a market share of 70%.
This is in contrast to the 55% share that the sector commanded a few years back. Major
companies in this segment include Asian Paints (44% market share), Berger Paints (17%
market share), ICI (12% market share), Goodlass Nerolac (15% market share), Jenson
Nicholson (6% market share), Shalimar Paints and Rajdoot Paints. The organized sector has
grown at a CAGR of 11.5% in the last five years. The unorganized sector comprising of over
2000 units has a combined market share of around 30%. The major players are Asian Paints,
Goodlass Nerolac, Berger, ICI and Shalimar. Recently, world leaders like Akzo Noble, PPG,
Dupont and BASF have set up base in India with product ranges such as auto refinishes
powders and industrial coatings. Kansai Paints of Japan, which entered into collaboration
with Goodlass Nerolac in 1984, is now the
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holding company for Goodlass Nerolac with 64.52 % equity holding. PPG has a joint venture
with Asian Paints to manufacture industrial coatings. Jenson & Nicholson and
Snowcem India are no longer active players because of dwindling sales in recent
years. In the 1990s, helped by a growing economy, the paint industry had recorded a healthy
growth of 12-13 % annually. This was mainly due to a drastic reduction in excise from a
staggering 40% to 16%. However, the growth was restricted in 2000-03 to single digits.
There was a revival in 2003-2004 with a robust growth of 13%.8.The per capita consumption
of paint in India is 700 grams against 19 kg in the U.S., and 2.7 kg and 5.8 kg in other
developing countries like China and Brazil. As the consumption goes with affordability, the
low Indian figure is not a surprise.High excise duties, low technology and low capital costs
for production led to the incidence of a high number of units in the small scale sector.
However, since 1992 the government has been consistently lowering duties from 40.5% in
1992 to around 16% currently. This has led to lowering of price differential between the
organized and unorganized sector. Moreover the paints sector was also allowed to claim
MODVAT credit on petro-based products, thus lowering the excise incidence further.
1.4.1 Paints And Their Market Share
Product Share
50
45
40
35
30
25
20
15
10
5 %Product
0
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1.4.2 Industrial Paints
Industrial paints comprising 30% of the market include automotive paints, high performance
coatings, coil coatings, powder coatings, marine paints and general industrial coatings. The
automotive segment is further bifurcated into OEMs and auto refinishes. The automotive and
general industrial coatings occupy top slot in terms of production. Goodlass Nerolac is the
market leader in this segment.
Demand for these paints is relatively price inelastic, but is prone to business cycles and
depends on industrial and economic growth. Major end user industries include shipping,
capital goods, white goods and heavy industries.
The industrial paints segment due to specialized technology and high capital expenditure
attracts fewer players. Most Indian companies have tied up with or are in the process of tying
up with international paint majors to have access to the latest technology. A tie-up with a
global paint manufacturer also enables the domestic company to supply to local customers of
its partner. For example, Goodlass Nerolac is a majorsupplier to Maruti Suzuki because of
Kansai, its Japanese collaborator and Suzuki relations. It is for the same reason that Asian
Paints (tie-up with PPG Industries, USA) is a major supplier of paints to Opel Astra.
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COMPANY COLLABORATION AREA OF COLLABORATION
BERGER PAINTS Herbert sons GmbH; Auto coatings;
Valspar Corp. Inc,; Heavy duty coatings;
Teodur BV Power coatings
ASIAN PAINTS PPG Ind. Inc., Electro deposition primers;
Sigma coatings, High performance coatings,
Nippon Paints Power coatings
GOODLASS Kansai paints Auto & Industrial coatings
ICI(India) ICI plc. Auto refinish
J&N Herbert sons GmbH Auto coatings
1.5 Drivers to the growth of the Paint Industry
1. Increasing level of income and education – The increasing proportion of young population
along with increasing disposable incomes is leading to a change in consumer habits. The
Indian economy is shifting from a savings economy to a spending economy. With more
income at their disposal, people are now ready to pay for better products and paint is no
exception.
Educated consumers are more brand conscious and seek value in what they consume. Thus,
paint companies offering value-added features like non-toxicity, weather protection, texture,
eco-friendly production, etc. will attract more demand. These value-added products enable
the manufacturers to earn a better premium as compared to the regular paints, thus offering
higher margins.
2. Increasing Urbanization: Urbanization is leading to a shift from temporary houses to

permanent houses. Urban houses are well-designed in its interior as well as exterior aspect.
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This calls for more houses being painted using medium and premium paints. For urban
houses, interior design is becoming a fashion statement and a lot of paint is used to decorate
the interiors. This will lead to an increase in the per capita consumption of paint which will
increase the overall demand of paint. Urbanization also brings more nuclear families. More
nuclear families mean more number of houses even for the existing population thus further
driving the demand.
3. Increasing share of organized sector: Decrease in taxes on key raw materials will improve
the position of the organized players. The Organized sector is expanding its distribution
network and adopting the installation of tinting machines at retail outlets. These tinting
machines offer a wide variety of colour shade options to choose from. The unorganized
players are not in a position to offer such facility as it is comparatively capital intensive. Shift
in use, from distemper segment towards premier segment is also shifting market share from
the unorganized sector to the organized sector.
4. Development of the Realty, Automobile and Infrastructure sector:The growth of the paint
industry is largely dependent on the development of the realty and housing sector, as
decorative segment generates about 70% of the total paint demand from this sector. The
Automobile segment generates more than two-third of the demand for Industrial paints, and
hence is the growth driver for Industrial Paints. The Infrastructure segment creates direct
demand for paints as well as creates indirect demand through supporting the growth of the
realty, automobile, FMCG and other industries where paint is used.
The growth potential in the above 3 sectors is immense, the paint industry being dependent
on these 3 sectors is expected to grow along with them.
5. Availability of financing options: Easier housing finance and auto finance is expected to
favour more people to buy houses and travel in personal vehicles. This will drive the growth
of housing and automobile sector, of which the Paint industry will get its share.
6. Increasing Penetration in the Rural Markets: Paint usage in rural areas is generally in the
distemper segment, hence dominated by the unorganized players. Demand in rural areas is
dependent on agriculture, which is dependent on the monsoons. With the development of
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irrigation facility, the dependence of agricultural output on monsoons will be on a decreasing
trend. Also, with the modernization of agriculture and accompanying development of rural
India, consumer preferences are expected to improve. Paint companies are expanding their
distribution network in rural parts of India, which is a relatively untapped market for the
organized players. These factors supported by the increasing penetration of the paint
companies will help drive the demand for paints.
1.6 Main Concerns Of The Paint Industry
• Cost of raw materials: The Cost of Raw materials is an important factor as the industry is
raw material intensive. Fluctuation in the prices of Titanium dioxide and Petroleum directly
affect the production cost. This is more of a concern for the Industrial segment as compared
to the Decorative Segment, as it is comparatively easier to pass on the costs in case of
decorative paints. Also, a large portion of raw materials are imported, leaving the cost factor
vulnerable to exchange rate fluctuation.
• MNC’s entering the Indian Paint Market: The entry of Established foreign players in the
Indian market may increase the competition among the players of the industry. This may lead
to price competition which may impact the profit margin of the companies. As a result, the
increase in volume growth may not equally reflect in the profit growth for the companies.
1.7 Paint Industry Prospects
 The market for paints in India is expected to grow at 1.5 times to 2 times GDP in the
next five years. With GDP growth expected to be over 7% levels, the top three players
are
likely to clock above industry growth rates, especially given the fact that protection
that was available to unorganised players has come down significantly.
 Decorative paints segment is expected to witness higher growth going forward. The
fiscal incentives given by the government to the housing sector have benefited the
housing sector immensely. This will benefit key players in the long term.
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 Although the demand for industrial paints is lukewarm it is expected to increase going
forward. This is on account of increasing investments in infrastructure. Domestic and
global auto majors have long term plans for the Indian market, which augur well for
automotive paint manufacturers like Kansai Nerolac and Asian-PPG. Increased
industrial paint demand, especially powder coatings and high performance coatings
will also propel topline growth of paint majors in the medium term.
1.8 Top Paint Brands In India
Goodlass Nerolac : -This company’s paint decors every third car in the country. It is the
market leader in the industrial paint segment supplying over 90% of the requirements and has
planned to increase its presence in the decorative segment through aggressive new product
development and brand building. They are the second largest company in India in the
decorative segment with a market share of around 20%. They are the leaders in powder
coatings. Goodlass Nerolac Paints Ltd is a subsidiary of Kansai Paint Company Limited,
which is the largest paint manufacturing company in Japan and among the top ten coating
companies of the world, with a human asset of over 1900 professionals and a sales turnover
of Rs. 925 crores. This company started in 1920 as Gahagan Paints and Varnish Co. Ltd. at
Lower Parel in Bombay. In 1930, three British companies merged to formulate Lead
Industries Group Ltd. In 1933, Lead Industries Group Ltd. acquired entire share capital of
Gahagan Paints in 1933 and thus, Goodlass Wall (India) Ltd. was born. Subsequently, by
1946, Goodlass Wall (India) Ltd. was known as Goodlass Wall Pvt. Ltd. In 1957, Goodlass
Wall Pvt. Ltd. grew popular as Goodlass Nerolac Paints (Pvt.) Ltd. Also, it went public in the
same year and established itself as Goodlass Nerolac Paints Ltd. In 1976, Goodlass Nerolac
Paints Ltd. became a part of the Tata Forbes Group on acquisition of a part of
the foreign shareholdings by Forbes Gokak. In 1983, Goodlass Nerolac Paints Ltd.
strengthened itself by entering in technical collaboration agreements with Kansai Paints Co.
Ltd., Japan and Nihon Tokushu Toryo Co. Ltd., Japan. In 1986, Goodlass Nerolac Paints Ltd.
turned into a joint venture of the Tata Forbes and the Kansai Paints with the latter acquiring
36% of its share capital. In 1999, Kansai Paints Company Ltd., Japan took over the entire
stake of Tata Forbes group. During this journey, Nerolac has entered into technical
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collaborations with other industry leaders such as E.I. Du-Pont de Nemours & Company Inc.,
USA and Oshima Kogya Company Ltd., Japan for different products.
Berger Paints:- This company started in 1947 as British Paints when it acquired Hadfield's
(India) Limited, a paint company that produced 150 tonnes of ready mixed stiff paints,
varnishes and distempers.Sales offices were opened in Delhi and Mumbai and in 1951 a
depot was started in Guwahati. Sales rose to Rs.60 lakhs in 1952. The Company declared its
first dividend and shifted the H.O. to 32, Chowringhee Road, Calcutta. By 1959,
modernization of the Howrah Factory was completed and the first Resin Plant commissioned.
With that, the Company entered the Synthetics Paints market. By 1965 British Paints
(Holdings) Limited, UK was acquired by Celanese Corporation, U. S.A. As a result, the
controlling interest of British Paints (India) Limited passed on to Cel. Euro N.V., Holland. In
1969 Celanese Corporation sold their interest in the Indian Company to Berger Jenson
Nicholson Limited, UK. In 1975, the foreign holding of the Company was reduced from 60%
to 45% through a Public issue. A year later the foreign holding was diluted to below 40% by
sale of a portion of the shares to the UB Group.
In 1983, the name of the Company was changed to Berger Paints India Limited (BPIL) and
by this time the Berger's operations were divisionalized into the Retail Business Line (RBL)
and the Industrial Business Line (IBL) in order to better cater to the needs of the customers.
During this period many new products were launched like "Luxol Silk" the first premium
emulsion in India, Viton Refinish for cars, Bison Acrylic Distemper and Rangoli Acrylic
Emulsion.
In 1990’s, ‘Berger Pro Links’, a service aimed at providing paint and application related
information to professionals, was introduced marking one of the first steps into painting
related services. In 1991, the stake of the UB Group in the Company was purchased, by Mr.
KS
Dhingra, Mr. G S Dhingra and their associates. The sales of the company touched 276 crores
by 1995-96. The latter half of the nineties saw Berger attain the ISO - 9000 certification
(1996) and establishment of Berger's Quality Management System. Color Bank tinting
system was also launched through which the consumer can select from a range of over 5000
colors and which are then made available in minutes. As part of its expansion program, a new
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paint-manufacturing unit at Pondicherry was commissioned in early 1997. Berger Paints
Home Decor a complete painting solution service was launched making painting a hassle free
activity for consumers. An illusion multichrome finishes was also introduced as "designer
finishes for walls" allowing consumers to transform their walls into fashion statements. This
is a first for the Indian paint industry.
ICI:-ICI India was the subsidiary of the $15 billion British multinational company ICI Plc.
Brunner Mond & Co., one of the four Companies that combined to form ICI in UK in 1926,
opened a trading office to sell alkalis and dyes in Calcutta. In 1923, Brunner Mond & Co.
(India) was incorporated and the company's name was subsequently changed to Imperial
Chemical Industries (India) Ltd., in 1929. During its 70 years in India, ICI had created six
subsidiary companies in businesses such as research, chlorine, caustic soda, paints, rubber
chemicals, explosives, polyester fiber, urea, agro-chemicals, seeds, pharmaceuticals, specialty
chemicals, polyurethane, nitrocellulose, and surfactants. In 1984, all ICI companies
consolidated in one of the largest mergers in Indian corporate history. By 1997, as a part of a
restructuring exercise ICI had exited or was planning to exit from several non-core
businesses. The 1996 sales break up was as follows: Paints 43%, Explosives 28%, Rubber
chemicals 17%, Pharmaceuticals 8%, and Other Products 4%. ICI (India) ranked No. 4 in the
paint business, after Asian Paints, Goodlass NerolacPaints and Berger Paints. Unlike the
other paint companies ICI (India) was a diversified unit and paint constituted 43% of its net
sales. ICI (India)’s turnover in 1996-97 was $180 million and paint amounted to $77.4
million. ICI identified paints as a thrust area and was aggressively moving to improve their
position. They invested $11 million in a new decorative paints plant near Bombay and were
constructing a $16.7 million plant for industrial paints near Chandigarh in North India. ICI
(India) intends to go on an offensive with a target of achieving
ten-fold growth in 10 years. The ‘10X Plan’, as it was called, envisaged a strategy based on
acquisitions, take-over and alliances.
Asian Paints :- Asian Paints Limited was established in 1942 as a partnership firm by
fourfriends Champaklal H. Choksey, Chimanlal N. Choksi, Suryakant C. Dani andArvind
R.Vakil to manufacture paints in a garage in Mumbai (Bombay). Fromits humble beginnings,
the company has moved on to become the largest paintscompany in India with a market share
of 30 percent. The company with aturnover of US$ 535 million on standalone basis and US$
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640 million onconsolidated basis (including turnover of all its subsidiaries) is one of the
topten decorative paints companies in the world. Its reach and dominance in theIndian market
can be gauged from the fact that it is more than twice the size ofits neares competitor in India
and it has been the market leader in paintsindustry in India since 1968.The company operates
in 22 countries and has 29paint manufacturing plants in the world which service consumers in
over 65countries. The company operates around the world on its own and also throughits
three subsidiaries Berger International Limited,Apco Coatings and SCIBChemicals.The
company aims to become one of the top five decorative paintcompanies in the world and has
embarked on an aggressive strategy ofexpanding its global operations. The promoters hold
the majority stake in thecompany (46.8 per cent of the equity stake).The next largest
shareholders arethe foreign institutional investors (19.5 per cent stake), followed by
Indianpublic (16.5 per cent stake). Domestic banks, financial Institutions, mutualfunds and
insurance companies hold 13.4 per cent stake. Corporate bodies andnon-resident Indians hold
the remaining stake.
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CHAPTER 2
COMPANY PROFILE
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2.1 Company Philosophy
Purpose of Corporate Philosophy
An effective corporate philosophy helps a company develop a certain corporate culture,

ethical practices and strengthens the relationship between employers and employees. It also
positions the values of the company in the minds of others both within and outside of the
organization. Your corporate philosophy should give employees a starting point for the
decision-making process, so they are all operating on the same page. Developing a corporate
philosophy gives you something against which you can compare candidates for new
positions, thereby helping you make hiring decisions based on whether an individual will fit
within your corporate culture.
Creating a Corporate Philosophy
One of the first things to consider when creating a corporate philosophy is the purpose of
your business. A company’s philosophy can contain similar verbiage as a company’s mission
statement, but in more detail. For example, the mission statement of a major search engine
company is, “To organize the world's information and make it universally accessible and
useful." A portion of that company’s corporate philosophy includes the statement, “We do
search. With one of the world‘s largest research groups focused exclusively on solving search
problems, we know what we do well, and how we could do it better.” By reading these and
other similar statements in its corporate philosophy, you can ascertain its mission.
Corporate Philosophy Benefits
Small businesses benefit greatly from developing a corporate philosophy. A primary benefit
of a corporate philosophy is that it helps to build long-lasting, trusting relationships between
your business and clients. You should implement your corporate philosophy within every
level of your company, which allows customers to trust that they will receive the same
professional treatment throughout the organization. A corporate philosophy also builds
consistency between your employees. When employees are familiar with the company’s
philosophy, it makes the integration of new hires easier and helps current employees embrace
changes within the
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company that follow the corporate philosophy. Another benefit of a corporate philosophy is
that it can possibly give your company a competitive advantage because you possess a clear
vision of how you want customers and competitors to perceive your business.
2.2 Company History And Milestone
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 theworldwide 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 latertake forward to
enviable heights.
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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 able
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. Vittal 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, which is a professionally
managed organization, headquartered in Kolkata, with the stewardship resting since 1994
until 2012 with the Managing Director Mr. Subir Bose. The current managing director of
Berger Paints India Ltd is Mr. Abhijit Roy.
2.3 Company Background
Established in 17th December, 1923, the company then known as Hadfiled's (India) Limited;
was a small paint company based in Kolkata having its only manufacturing facility at
Howrah, West Bengal to produce ready mixed stiff paints, varnishes and distempers. Post
independence, towards the end of 1947, British Paints (Holdings) Limited, U.K acquired
Hadfield's (India) Limited and thus British Paints (India) Limited was incorporated.
From a production capacity of 150 tonnes and sales turnover of around Rs. 25 lakhs in 1947,
the company has come a long way to become at one point of time; a part of the worldwide
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BERGER group in 1983 and thereby acquiring its present name Berger Paints India Limited
to having subsequently gone through further ups & downs as well as ownership changes to
gain its present status wherein the majority stake is with Delhi based Dhingra brothers and
business revenue more than Rs 2400 crs.
Today Berger Paints India Limited, having solely used and developed the name and
trademark BERGER and all its variants in India, is a household name in paint. With Head
Office in Kolkata the company manufactures and markets a range of decorative & industrial
paint products under various product brands and has it operations spread throughout the
length & breath of the country; with seven manufacturing facilities in India and more than 85
depots, several regional & area offices, besides four facilities overseas. It has a workforce of
over 2500 employees and a countrywide distribution network of 15000 plus dealers.
Berger Paints has clearly demonstrated its commitment to Indian consumers for over 88
years, by offering its varied range of high performing quality products backed by highest
level of customer service. Company's high ethical standards in business dealings and its on-
going efforts in community welfare make Berger Paints India Limited a responsible corporate
citizen. While the company's decorative and Industrial paints continue to gain an increasing
market share, Berger as an organization has managed to achieve sustainable competitive
advantage through innovations in all spear of business, desire to excel and by creating a
winning culture & abiding faith in its values & philosophy among all its stakeholders.
With Berger Paints we can now see your imagination of colour unfurl in front of your eyes
and watch your home come alive, telling a thousand tales.
Transform our home with the POWER OF IMAGINATION.
2.4 Board of Directors
 Mr. Kuldip Singh Dhingra (Chairman)

 Mr. Gurbachan Singh Dhingra (Vice-Chairman)
 Mr. Abhijit Roy (Managing Director)
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 Mr. Subir Bose (member in the Board of the Company.)
 Mr. Anil Bhalla
 Mr. Gerald Kenneth Adams
 Mr. Gurcharan Das
 Mr. Kamal Ranjan Das
 Mr. Pulak Chandan Prasad
 Mr. Srijit Dasgupta
 Mrs. Rishma Kaur
 Mr. Kanwardeep Singh Dhingra
2.5 Landmark Projects
The Calcutta Club was set up in 1907 in response

to the discriminatory practices of the Bengal Club
which admitted only white members. Today, it is
not just popular but also one of the most prestigious
clubs in the city. A membership to the club is so
coveted and the list of prospective members
believed to be so large, that it takes over a year
before the screening committee finds time to
consider the suitability of an applicant.
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A high rise condominium spread over five acres,
Teen Kanya overlooks Lake Nucifera. The three
towers, 16 storied each, arranged in a semi circle
overlook the 100 acre water body. Plenty of natural
light, perfect cross ventilation and a whole host of
state-of-the-art amenities make the flats of Teen
Kanya, in Action Area II of Rajarhat, perfect for
living. Living here is like living in the heart of
nature with all the modern facilities you can dream
of.
Rs. 275 crore was poured into making the mall and
the five-star hotel of City Centre II – a multi-utility
urban infrastructure project. The project, which
took three years to get completed, is built on five
acres of land. City Centre II, at Rajarhat is just 3 km
from the Netaji Subhash Chandra Bose
International Airport. It has been designed to give a
boost to the hotel business while the mall caters to
the people of north Kolkata largely.
In 1994 as a development and maintenance

services arm of The Dun & Bradstreet Corporation
and Satyam Computers and Services Ltd.,
blossomed into an independent organization called
Cognizantin a matter of two years. One of the first
IT services companies with key industry verticals as
well as technology horizontals.
~ 23 ~
Gold Souk Grande is a large format multi-specialty
mall in Chennai. The Rs. 250 crore project is spread
across 8 lakh sq. ft. The mall which will be fully
operational by the third quarter of 2010 will have a
hypermarket, food court, anchor stores and a
multiplex. Like all malls it house stores offering
lifestyle products, accessories, electronics,
footwear, cosmetics and more.
The T .A Pai Management Institute (TAPMI)
located in the international university town of
Manipal (Karnataka), is among the leading
management institutes in India, and is reputed for its
academic rigour and faculty-student interaction.
Founded by the visionary, Late Shri. T.A. Pai,
TAPMI’s mission is to provide much needed
impetus to the task of building professional
management capability in the country. In the
process, it has also played a role in strengthening
the existing educational and health infrastructure of
Manipal.
The land on which Mantri Greens is built was once

Royal property belonging to none other than The
Maharajah of Mysore. Not only that, the title
document bears the signature of world renowned
engineer and Statesman - The Dewan of Mysore, Sir
M. Visvesvaraya. The authenticity of this title has
stood intact for more than 110 years. Now, it is a
place where you and your family's can enjoy the
rich and scenic nature for a lifetime.
~ 24 ~
2.6 Berger’s Presence in India
2.7 Berger’s Presence All Over The World
~ 25 ~
Apart from operations in Russia, with a production facility at the Berger manufacturing unit
at Krasnodar, Berger has also expanded its footprint in Nepal by setting up a second unit.
Today Berger’s sister company in Bangladesh is the dominant leader with 65% market share.
In keeping with the company’s dynamic growth plan, Berger has also acquired Bolix SA of
Poland, a leading provider of External Insulation Finishing System (EIFS) in Eastern Europe.
As Berger continues to grow internationally, it also continues to be the second largest paint
company in India. Berger is the lone supplier of Nuclear Power Plants with its Protective
Coatings. The automotive sectors, be it cars or bikes, is primarily ruled by Berger’s
automotive coatings. Luxury cars including Mercedes make use of Berger products.
Companies like Nokia uses
Berger‘s services as well. Berger has tied up with Becker of Sweden to manufacture coil
coatings for steel surfaces
~ 26 ~
2.8Market Share Of Industrial Paints
Market Share of Industrial Paints
Goodlass Nerolac Paints Ltd. Asian Paints (India) Ltd. Berger Paints (India) Ltd.
ICI India (Ltd.) Shalimar Paints Ltd. Others
17%
41%
8%
9%
10%
15%
2.9 Market Share Of Decorative Paints
~ 27 ~
Market Share of Decorative Paints
Asian Paints (India) Ltd. Goodlass Nerolac Paints Ltd. Berger Paints (India) Ltd.
ICI India (Ltd.) Shalimar Paints Ltd. Others
25%
38%
6%
8%
9% 14%
2.10 Industrial Sector Composition
~ 28 ~
Industrial Sector Composition
50
45
40
35
30
Market Share (%)
50
25
20
30
15
10
10
5
5 5
0
Automotive High Powder Coating Coil Coating Marine Paints
Paints Performance
Coating
Types of Industrial Paints
~ 29 ~
2.11 Marketing Mix in relation to Berger Paints
Marketing decisions fall into four main controllable categories namely
 Product
 Place
 Price
 Promotion
Relating these factors with respect to Berger Paints
Product :- Berger is committed to offer quality products that satisfy consumers’ ultimate
desires from paints with the help of state-of–art technology. Berger always believes in one
step ahead in offering new product to create more value for customers’ money. Berger
outsmarts other competitors of the market through its one step in advance policy and
innovative market offers. Berger is trying to fill up all holes of the market through offering a
wide range of products to meet the needs (Premium to Economy Paints) of different types of
users and to solve the different types of functional requirements (Industrial, Decorative &
Marine).Due to shift in market growth trends Berger is trying to establish itself in the
economy segment of the paint market.
Place :- Another major component of marketing mix is place. During our visit at BERGER I
was able to include inventory, transportation, coverage, channel, logistics and market and
market segments etc. under these marketing mix components.
Differentiated market segment
Berger’s market segments are differentiated. They use different types of marketing mix for
different segments. Their product quality, advertisement, promotional techniques, price are
high for upper class customers. Again for the people of middle class on the basis of their
income,
~ 30 ~
occupation, taste, lifestyle different marketing policies are applied. We can observe this
deviation in TV advertisement.
Inventory
BERGER has divided their products in A,B,C category. For inventorying their products
BERGER is following some storing norms. Depending on this storing norms company
decides how long their product will stay in the market in accordance with the existing sales
trend of that particular product. This is how the firm can determine when to order and how
much to order.
Transportation
To ensure customer satisfaction BERGER uses modern and fastest going covered van as
transportation carrier while moving goods from depots to dealers. But when they move
goods from factory to depots they uses public transportation carriers such as truck and
railway as rental basis.
Distribution network
With Head Office in Kolkata the company manufactures and markets a range of decorative &
industrial paint products under various product brands and has it operations spread
throughout the length & breath of the country; with seven manufacturing facilities in India
and more than 85 depots, several regional & area offices, besides four facilities overseas. It
has a workforce of over 2500 employees and a countrywide distribution network of 15000
plus dealers. The orders are collected by the sales executives and passed on to the nearest
depot. The depots are fed by regional warehouses. These depots maintain a minimum order
quantity which is arrived at from the monthly demand forecast. The material is dispatched
from the depot in the name of the dealer. Generally some orders of the same region are
clubbed together and dispatched in trucks. Finally the truck is unloaded and the small orders
of the dealers are dispatched to them.
~ 31 ~
Manufacturing Unit Manufacturing Unit Manufacturing Unit
Depot Depot Depot Depot Depot
Dealer Dealer Dealer Dealer Dealer

Dealer Dealer
BERGER
Feedback
Product
Customer Retail
Depots
Feedback
Product
Feed back
Direct dealers
Feed back Customer Wholesale
BERGER’s hybrid marketing system
Direct channel
~ 32 ~
Customer
BERGER
Direct dealer Customer

Indirect channel
Price :-In the paints industry price is the used only as a differentiator between the various
segments in the same product line. The prices of different brands in the same segment remain
more or less similar, with just a difference of 30 to 40 paise per square feet. Some of the
speciality products, which are not produced by all brands, may be priced at a higher price.
Pricing decisions in the paint industry largely depend on the price of the inputs like petro
products, other raw materials, excise duties and taxes and the general operating
profits.Generally increase or decrease of prices is effected across all brands in the market.
Most of the paint companies offer a 5% margin to the dealer. Due to internal competition, the
dealers pass on this advantage to the customers by reducing their own margins to 2-3%. This
is a cause of concern for the paint companies because they have to keep a constant check on
the prices offered in the market. The dealers offer more of discounts and the companies are
not able to firm up the prices. Paint companies offer a lot of discounts like cash discounts,
volume discounts, seasonal discounts and allowances. The dealers take advantage of these
discounts to gather more business.
Promotion:- The paint industry until 1999 was concentrated mostly on increasing sales by
intensive trade promotion wherein the dealers, contractors and other components of the
supply chain. There was little emphasis on theme advertising directed towards the customer.
A recent trend that is emerging in the Indian paint market is that the major brands have all
identified the importance of reaching out to the common man instead of just limiting
~ 33 ~
themselves to the intermediaries. Advertising strategy: BERGER follows different strategy
for developing its strategy. It depends on some characteristics that is product life time, brand
etc. Media: Berger used different media for advertising like- on-air advertisement, television,
newspaper, magazines. The dealers
are educated with the company background, products and service etc The
time to time selling incentive are given by company according to performance of
dealer and market demand. In-Store Displays: Point-of-Purchase, Berger paints Banners,
Demonstrations of color on wall, etc are provided by the company. Temporary Price
Reduction (TPR): They get margins plus some incentives promotion scheme to maintain the dealer.
Contests: Dealer to dealer contest is kept to promote push strategy and best dealer gets the
reward. Berger paints likes to do the same within same geographic areas. Sampling: Allowing
the dealer to experience the product or service by providing free samples so as he can promote word of
mouth. Berger’s sales promotion consists of short-term incentives to encourage the purchase
of sale of a product or services. Berger Paint’s advertising has created brand awareness,
highlighted what the brand has to offer and has consistently brought all of it top-of-the-mind
for the customer. But the outreach effort does not end there. Berger Paints has recognized the
importance of communicating to and involving key players who influence the final brand
choice. These include channel partners, contractors and painters, on whom Berger Paints
focuses by initiating and developing innovative activities and promotions. This helps build
the Berger Paints family so that customers get a high degree of personalized service and
professional guidance to facilitate their final decision.
Sales Promotion:
Sales Promotion is an important component of marketing communications mix. It adds an

extra value to the product and hence prompts the dealer or consumer to buy the product. In a
specific
sense, sales promotion includes those sales activities that supplement both personal selling
and advertising, and coordinate them and make them effective, such as displays, shows,
demonstrations and other non-recurrent selling efforts not in the ordinary routine.
Sales promotion can be used:
 For facilitating introduction of new products
~ 34 ~
 For overcoming unique competitive situation
 For unloading accumulated inventory
 For overcoming seasonal slumps
 For getting new accounts
 For retrieving lost accounts
 As a support and supplement to the advertising effort
 As a support and supplement to the salesmen’s effort
 For persuading salesmen to sell the full line of product
 For persuading the dealer to buy more or increase the size of order
Commonly Used Tools and Techniques of Sales Promotion:

 Demonstrations
 Trade Fairs and Exhibition
 Coupons, Premiums, Free offers, Price-offs, etc
 Free samples
 Joint promotion
 Contests (consumer contests, dealer contests)
 Merchandising or Display
 Sales promotion on the internet
The company has been concentrating more on sales promotion than on advertising. On
analyzing the customer survey data it becomes evident that since the customer is returning to
the store after an average of about three years it is better to concentrate more on the dealers
who are in the
business throughout the year. Keeping this in mind the company’s decision of doing more
sales promotion than advertising stands justified. Sales promotion can broadly be divided into
two categories:
1)Customer promotion – this section includes all the sales promotion activities directed
towards the customers. Scratch cards that are provided with specific size of packages are
examples. The company comes out with many different sales promotion schemes during the
festival season, especially the durga puja festival in Orissa and West Bengal. There are a
number of gifts and schemes on the larger packs. Coupons and free gifts are offered on packs
~ 35 ~
of more than 10 kgs. The company also offers a large number of services to the customers to
assist them in their
buying decisions. These services are offered on the company’s website to make it accessible
to a very wide range of customers.
2) Trade promotion – As part of the company’s policy, huge emphasis is given on trade
promotion. The dealers and contractors who are a part of the distribution chain are given
special attention. The company comes up with several incentive schemes for the dealers. The
most popular schemes include cash discounts, foreign trips and gifts such as refrigerators etc
for dealers who succeed in meeting or exceeding pre-determined sales targets. The company
also organizes regional dealer meets regularly. Here the dealers are briefed about the
company’s new products and the technical details and application procedures of these
products. The company also aims at building and retaining dealer loyalty through these
meetings.
Paint shows maximum growth before festive

season
30
25
20
Sales in crores
15
YEAR 2003
10
5 YEAR 2004
0
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Months
2.12 Sales Turnover For the Past Ten Years
Year Year Number (x) Sales turnover in crores (y)

Mar '03 1 586.43
Mar '04 2 675.82
Mar '05 3 831.68
Mar '06 4 987.91
~ 36 ~
Mar '07 5 1,172.21
Mar '08 6 1,346.21
Mar '09 7 1,513.74
Mar '10 8 1,688.68
Mar '11 9 2,100.82
Mar '12 10 2,662.10
Turnover in Crores
3000 y = 210.2x + 200.1
R² = 0.9363
Turnover in crores
2500
2000
1500
Turnover in Crores
1000
Linear (Turnover in Crores)
500
0
0 2 4 6 8 10 12
Years
An upward trend line shows that the sales volume have risen over the past years, it gives an
impression that the company has been continuously progressing.
CHAPTER3
~ 37 ~
RESEARCH PROBLEM
&
BACKGROUND
3.1 Background
This project is basically based on the analysis of the existing contractors, investigating a new
avenue of contractors i.e the interior decorators and architects and also comparing the
advertisements of Berger Paints with its competitors.
1) KYC is an acronym for "Know Your Customer", a term commonly used for Customer
Identification Process.The activities of customer that financial institution and other regulated
companies must perform to identify their clients and ascertain relevant information pertinent
to doing financial business with them.
The KYC guidelines of BERGER PAINTS INDIA LTD are to collect three proofs from their
customers.
~ 38 ~
They are
1. Photograph
2. Proof of identity
3. Proof of address
Accordingly, BERGER has framed its KYC procedure according to which, a photograph and
documentary proof of personal identification and address proof are required to be provided.
In addition to these documents various other information like the per year consumption of
each paint category, construction chemicals and wood finish were taken. These data formed
the main basis of the study. Various analysis like brand preferences, contribution of each
product in the total sales volume etc were analysed.
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. This is done in case of
the interior decorators and architects. 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) Analysis of the advertisements : Advertising is a form of communication for marketing

and used to encourage or persuade an audience (viewers, readers or listeners; sometimes a
specific group) to continue or take some new action. Most commonly, the desired result is to
drive consumer behavior with respect to a commercial offering. So we can say here that
better the quality of the advertisements better is the customer response.
3.2 Research Problem
In this case the research problem is divided into three heads :
~ 39 ~
 Analyse the existing contractors 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 interior decorators
and contractors, analyse their state, the brand preference, and the type of job they do
so that they can be converted into dedicated customers in near future.
 A comparative analysis of the advertisements of Berger Paints with respect to its
competitors and suggest the various strengths and weakness of the media promotion
of Berger Paints.
~ 40 ~
CHAPTER4
OBJECTIVES AND
SCOPE OF STUDY
4.1 Objectives
~ 41 ~
The main objectives of the study is listed below :
 To find the preference and choices of contractors regarding the different paint brands.
 To collect appropriate contractor identification (address proof, passport size photo).
 To survey the total purchase of different kinds of paints by the contractors.
 To survey the market potential of the company.
 To survey a new avenue of customers i.e the interior decorators and architects about
their choices and preferences of different paint brands, who were previously not a part
of Berger Paints target customers.
 A qualitative analysis of the impact of the advertisements of Berger Paints on the
customers.
4.2 Scope of Study
The main scopes of the study is listed below :
 It gives us information about the various categories of the contractors on the basis of
their total purchase.
 It gives us information about the proportion of dedicated Berger Paints contractors.
 It shows the market share of Berger Paints with respect to its contractors.
 It gives the information regarding the preference and choices of the different
contractors.
 The study also gives information regarding a new market segment i.e the interior
decorators and architects which was not previously the target of Berger Paints about
their tastes and preference of brands and their needs and expectations from the paint
industry.
 It gives us information that how much effective the advertisements of Berger Paints
are
as a promotional strategy with respect to its competitors.
~ 42 ~
CHAPTER 5
PROJECT
METHODOLOGY
5.1 Research Objective
The prime objective of this study was to analyse the taste and preference of the existing
contractors of Berger Paints, their contribution to the sales volume and their expectations
~ 43 ~
from the company. Secondly, investigating a new avenue of customers i.e the interior
decorators and architects and getting information about their tastes and preferences so that
they can be converted into customers of Berger Paints. And thirdly, analyzing the
advertisements of berger paints and comparing with those of its competitors.
5.2 Research Design
 Contractor and Interior Decorator analysis : Descriptive research design

 Advertisement Analysis : Exploratory research design
5.3 Data
 Primary Data : Primary data collected by interviewing the contractors and interior
decorators.
 Secondary Data : Web based data are used as secondary data
5.4 Research Instrument
Two different sets of questionnaire one for the contractors and the other for the interior
decorators and architects were used. Most of the questions were open ended.
5.5 Research Tool
Many statistical tools like,
 Bar Charts
 Pie Charts
 Chi Square Analysis
~ 44 ~
 ANOVA
Have been used in this research to derive the conclusion
5.6 Research Plan
Contractors and Interior Decorators
Call by phone
Wrong number not interested interested or available out of station busy
Noted down reported fixation of appointment queued queued
and complain taken
Questionnaire filled up
5.7 Sample Size
Contractors Sample Size : 98

Successful Survey : 65
Wrong Numbers : 12
Failures : 21
Interior Decorators Sample Size : 35
Successful Survey : 19
~ 45 ~
Wrong Numbers : 3
Failures : 13
~ 46 ~
CHAPTER6
DATA ANALYSIS AND

INTERPRETATION
6.1 Know Your Contractors
~ 47 ~
6.1.1 Interior Paints
Purchase (Rs Lakhs) No. Of Contractors Cumulative %

0-1 19 29.69%
1-2 10 45.31%
2-3 12 64.06%
3-4 3 68.75%
4-5 8 81.25%
5-6 5 89.06%
6-7 1 90.63%
7-8 2 93.75%
8-9 0 93.75%
9-10 2 96.88%
10-above 2 100.00%
Interior Paints
Frequency Cumulative %
19
20 120.00%
No. Of Contractors
100.00%
15 12
10 80.00%
10 8 60.00%
5 40.00%
5 3 2 2 2
1 0 20.00%
0 0.00%
Purchase (Rs Lakhs)
Interpretation
 Maximum number of contractors purchases interior paints of value between 0 to 5

lakhs yearly.
~ 48 ~
 Very few contractors i.e only 12.5% purchases interior paints of value between 6 to
10 lakhs.
 There are only few well to do contractors i.e roughly 3% who have a purchase
capacity above 10 lakhs.
6.1.2 Exterior Paints
Purchase (Rs Lakhs) No. Of Contractors Cumulative %

0-1 16 24.62%
1-2 12 43.08%
2-3 10 58.46%
3-4 7 69.23%
4-5 7 80.00%
5-6 1 81.54%
6-7 3 86.15%
7-8 1 87.69%
8-9 2 90.77%
9-10 2 93.85%
10-above 4 100.00%
~ 49 ~
Exterior Paints
18 16 120.00%
16
100.00%
No. Of Contractors
14 12
12 10 80.00%
10
7 7 60.00%
8
6 4 40.00%
4 3
2 2 20.00%
2 1 1
0 0.00%
Purchase (Rs Lakhs)
Interpretation
 Most of the contractors i.e around 80% have their annual purchase between 0 to 5
lakhs.
 Very few contractors i.e around 10% are well to do having their purchase above 9 or
10 lakhs.
6.1.3 Damp Proof
Purchase (Rs) No Of Contractors Cumulative %

0-20000 14 60.87%
20000-40000 4 78.26%
40000-60000 1 82.61%
60000-80000 1 86.96%
80000-above 3 100.00%
~ 50 ~
Damp Proof
15 14 120.00%
No Of Contractors
100.00%
10 80.00%
60.00%
5 4 40.00%
3
1 1 20.00%
0 0.00%
0-20000 20000-40000 40000-60000 60000-80000 80000-above
Purchase (Rs)
Interpretation
 Roughly 70% of the contractors make their annual damp proof purchase within Rs
40,000.
 Very few i.e near about 15% of the contractors have their annual purchase above Rs
80,000.
 Total sales of damp proof of Berger Paints are comparatively less with respect to the
sales of interior and exterior paints.
6.1.4 Roof Treatment
Bin Frequency Cumulative %

0-20000 9 56.25%
20000-40000 0 56.25%
40000-60000 3 75.00%
60000-80000 0 75.00%
80000-Above 4 100.00%
~ 51 ~
Roof Treatment
10 9 150.00%
No Of Contractors
100.00%
5 4
3
50.00%
0 0
0 0.00%
20000 40000 60000 80000 Above
Purchase (Rs)
Interpretation
 Very few contractors use roof treatment materials of Berger Paints i.e out of a sample
of 60 only 16 contactors (roughly 26%) .
 Maximum contractors i.e 56.25% make annual purchase of roof treatment materials
within Rs 20,000.
 Only a few contractors i.e 25% have their annual purchase of roof treatment above Rs
80,000.
6.1.5 Wood Finish
Purchase in Rs No Of Contractors Cumulative %

0-20000 14 45.16%
20000-40000 5 61.29%
40000-60000 10 93.55%
60000-80000 1 96.77%
80000-Above 1 100.00%
~ 52 ~
Wood Finish
25 120.00%
20
20 100.00%
No of Contractors
14 80.00%
15
60.00%
10
5 40.00%
5 20.00%
1 1
0 0.00%
20000 40000 60000 80000 Above
Purchase in Rs
Interpretation
 Major section of the contractors i.e 93% makes their purchase within Rs 60,000.
 Purchase of wood finish materials of Berger Paints is comparatively less, the highest
annual purchase lying within a range of Rs 1,00,000.
 Out of all the respondents only half of them use wood finish materials of Berger
Paints.
6.1.6 Category Distribution
Category Frequency
A 53
B 10
C 1
~ 53 ~
Category Distribution Of Contractors
A B C
1%
16%
83%
The contractors have been divided into categories on the basis of their total annual purchase
of different types of paints. There is mainly three categories :-
Category C – below Rs 2,00,000
Category B – between Rs 2,00,000 and Rs 5,00,000
Category A – above Rs 5,00,000
Interpretation
 According to the analysis 83% , 16% and 1% of the contractors fall in the categories
A, B and C respectively.
 Major section of the contractors have an annual purchase of above Rs 5,00,000.
6.1.7 Contractors Distribution
Type Frequency
~ 54 ~
dedicated berger contractors 30
others 35
Contractors Distribution
dedicated berger contractors others
46%
54%
Interpretation
 According to the analysis it can be seen that 46% of the respondent contractors are
dedicatedly using Berger Paints products .
 The remaining 54% respondent contractors are not fully using Berger Paints products.
Their choice differ on the basis of their preference or preference of their customers i.e
the householders.
6.1.8 Market Share Of Individual Paint Category Of Berger Paints
INTERIOR EXTERIOR DAMP ROOF WOOD

PAINT(RS) PAINT(RS) PROOF(RS) TREATMENT(RS) FINISH
(RS)
~ 55 ~
23672000 20730000 940000 2650000 1060000
Market Share Of Each Paint Category (Berger

Paints)
INTERIOR PAINT(RS) EXTERIOR PAINT(RS) DAMP PROOF(RS)
ROOF TREATMENT(RS) WOOD FINISH (RS)
2% 2%
6%
48%
42%
Interpretation
From the above analysis it can be interpreted that 90% of the total revenue comes from the
sale of paints both interior and exterior. The remaining 10% comprises of the construction
chemicals and wood finish materials. (this analysis is based on the annual purchase of the
contractors)
6.1.9 Chi Square test to analyze the brand preference
Brand Preference With Respect To The Choice Of Interior And Exterior Paints
Original Values
Berger Asian ICI Nerolac Shalimar Total
~ 56 ~
Interior 17 11 5 2 2 37
Exterior 14 8 2 3 1 28
Total 31 19 7 5 3 65
EXPECTED VALUES FORMULA: (row total* cloumn total)/ grand total
Berger Asian ICI Nerolac Shalimar Total

Interior 17.639 10.811 3.983 2.845 1.707 37
Exterior 13.3517 8.1833 3.0149 2.1535 1.2921 28
Total 31 19 7 5 3 65
Chi-test Value= 0.850530371
A chi-squared test, also referred to as chi-square test or test, is any statistical

hypothesis test in which the sampling distribution of the test statistic is a chi-squared
distribution when the null hypothesis is true, meaning that the sampling distribution (if the
null hypothesis is true) can be made to approximate a chi-squared distribution as closely as
desired by making the sample size large enough.
From the data we collected through survey,
Null hypothesis: The attributes are independent i.e. the difference in brands does not have an
impact on the choice of interior and exterior paints.
Alternate hypothesis: The attributes are dependent i.e. the difference in brands has an
impact on the choice of interior and exterior paints.
In Excel, the formula to evaluate is:-
CHISQUARE TEST chi-square(actual range, expected range)
The value after evaluation,
0.850530371
~ 57 ~
Degree of freedom (DOF) = 4
Table value for 5% level of significance with DOF 4 is 9.49
Interpretation
0.850530371 is less than the table value 9.49. Therefore we can say, the null hypothesis is
accepted i.e. the difference in brands does not have an impact on the choice of interior and
exterior paints.
6.2 Analysis Of Interior Decorators / Architects
6.2.1 Interior Paints
Brands ICI Asian Paints Berger Paints Nerolac Shalimar
No Of Respondent 7 15 9 4 0
~ 58 ~
Interior Paints
ICI Asian Paints Berger Paints Nerolac Shalimar
0%
11% 20%
26%
43%
Interpretation
In the interior paint category the maximum market share is enjoyed by Asian Paints
comprising of 43% , Berger Paints and ICI almost enjoy equal shares of 26% and 20 %
respectively. Nerolac and Shalimar having negligible contribution in the market share.
So it can be interpreted that Asian Paints is the market leader followed by strong competitors
like Berger Paints and ICI.
6.2.2 Exterior Paints
~ 59 ~
Exterior Paints
0%
12% 17%
17%
54%
Interpretation
Berger Paints has a greater response in the market in the field of exterior paints being the
market leader with a share of 54%. Asian Paints and ICI enjoy equal share of 17% each and
they stand out as serious competitor to Berger Paints. Nerolac having a share of 12% and in
case of Shalimar paints, the share is negligible.
6.2.3 Interior Texture Paints
~ 60 ~
Interior Texture
0%
9%
34%
27%
30%
Interpretation
In the interior texture paint category the maximum market share is enjoyed by ICI comprising
of 34% , Berger Paints and Asian Paints almost enjoy equal shares of 27% and 30 %
respectively. Nerolac and Shalimar having negligible contribution in the market share.
So it can be interpreted that ICI is the market leader followed by strong competitors like
Berger Paints and Asian Paints.
6.2.4 Exterior Texture Paints

~ 61 ~
Exterior Texture
8
7
7
No Of Interior Decorators
6
5
5
4
4
1
0 0
0
Brands
Interpretation
 Out of 35 respondents only 19 interior decorators / architects use exterior texture

paints which comprise54% of the total sample.
 Asian Paints is the market leader enjoying roughly 44% of the market share.
 Berger Paints and ICI almost enjoy equal shares of 25% and 31 % respectively and
standing as a serious competitor to Asian Paints.
 Nerolac and Shalimar have almost negligible market share.
6.2.5 Breathe Easy Enamel / Emulsions

~ 62 ~
Green Quality Paints
0%
0%
15%
31%
54%
Interpretation
In the Breathe Easy Emulsion category the maximum market share is enjoyed by Asian
Paints comprising of 54% , Berger Paints enjoy the 2nd most market share of 31% and ICI
enjoys the 3rd most market share 15 % .
So it can be interpreted that Asian Paints is the market leader followed by strong competitors
like Berger Paints and ICI.
6.2.6 Wood Finish Materials
Category No Of Respondent
Gala Polish 18
NC Finish 7
Melamine 3
~ 63 ~
PU 6
Polyester 1
Water Based PU 0
Wood Finish Users
18
16
14
No Of Respondents
12
10 18
8
6
4 7 6
2 3
1 0
0
Gala Polish NC Finish Melamine PU Polyester Water
Based PU
Category
Interpretation
 Out of 35 respondents 18 use Gala Polish which comprises of the maximum share
among all wood finish materials.
 NC Finish and PU are also in demand among the interior decorators and architects.
 The users of Melamine, Polyester and Water Based PU are very few, i.e they are not
in much demand in the market of wood finish materials.
6.2.7 Admixture
Brands Sika Pidilite Shalimar Tar Texsa Asian Paints Berger

No Of Respondent 15 11 0 2 0 2
~ 64 ~
Admixture
Sika Pidilite Shalimar Tar Texsa Asian Paints Berger
0%
0%
7% 7%
50%
36%
Interpretation
 In the Admixture category of Construction Chemicals its seen that most of the Interior
Decorators prefer brands like Sika and Pidilite.
 Sika is the market leader enjoying a market share of 50%.
 Pidilite gives Sika a good competition with a market share of 36%.
 The rest like Texsa, Berger Paints, Shalimar Tar Paints etc enjoy negligible market
share as compared to Sika and Pidilite.
6.2.8 Tile Adhesive

~ 65 ~
Tile Adhesive
0% 0%
0%
33%
67%
Interpretation
In the category of Tile Adhesive it is seen that brands like Pidilite and Sika are only preferred
among Interior Decorators and Architects. Pidilite enjoy a greater market share of 67% which
is 2/3 rd of the whole market standing out as the market leader and Sika gives it a good
competition with a market share of 33%. Other brands are not preferred as such by this
particular segment of the market.
6.2.9Roof Treatment

~ 66 ~
Roof Treatment
7%
20%
43%
0%
7%
23%
Interpretation
 In this section of construction chemicals also we see that brands like Sika and Pidilite
are mostly preferred.
 Sika leads the market with a share of 43%.
 Pidilite is the second most preferred in the market enjoying a share of 23%.
 Other brands like Asian Paints, Berger Pants Shalimar Tar are equally distributed
among the remaining market.
6.2.10 Damp Proof

~ 67 ~
Damp Proof
12
10
8
No Of Respondent
0
Brand
Interpretation
Customers like Interior Decorators and Architects have a variety of preference of brands in
the Damp Proof section. But the preference here also is inclined toward Sika and Pidilite.
Other brands like Texsa, Asian Paints and Berger together form a recognizable section of the
market.
Sika is the market leader with a share of roughly 33% and Pidilite stays 2nd to Sika with a
share of 25% roughly.
6.2.11Analysis of Variance (ANOVA) for different types of paints and

brands
Analysis of Variance has been defined as the statistical technique for the “separation of
variation due to a group of causes from the variation due to other groups”. Analysis of
variance (ANOVA) is similar to regression in that it is used to investigate and model the
relationship between a response variable and one or more independent variables. However,
~ 68 ~
analysis of variance differs from regression in two ways: the independent variables are
qualitative (categorical), and no assumption is made about the nature of the relationship (that
is, the model does not include coefficients for variables). In effect, analysis of variance
extends the two-sample t-test for testing the equality of two population means to a more
general null hypothesis of comparing the equality of more than two means, versus them not
all being equal.
 One-way analysis of variance tests the equality of population means when

classification is by one variable. The classification variable, or factor, usually has
three or more levels (one-way ANOVA with two levels is equivalent to a t-test),
where the level represents the treatment applied. For example, if you conduct an
experiment where you measure durability of a product made by one of three methods,
these methods constitute the levels. The one-way procedure also allows you to
examine differences among means using multiple comparisons.
 Two-way analysis of variance performs an analysis of variance for testing the

equality of population means when classification of treatments is by two variables or
factors. In two-way ANOVA, the data must be balanced (all cells must have the same
number of observations) and factors must be fixed.
From the data we collected through survey,

Interior 7 15 9 4 0
Exterior 6 6 19 4 0
Interior Texture 11 10 9 3 0
Exterior Texture 8 13 7 0 0
Green Quality 2 7 4 0 0
Waterbased Enamel 0 0 0 0 0
~ 69 ~
ANOVA : Two-Factor
SUMMARY Count Sum Average Variance

Interior 5 35 7 31.5
Exterior 5 35 7 51
Interior Texture 5 33 6.6 23.3
Exterior Texture 5 28 5.6 31.3
Green Quality 5 13 2.6 8.8
Waterbased Enamel 5 0 0 0
ICI 6 34 5.666666667 16.26667

Asian Paints 6 51 8.5 29.1
Berger Paints 6 48 8 40.8
Nerolac 6 11 1.833333333 4.166667
Shalimar 6 0 0 0
ANOVA
Source of Variation SS df MS F P-value F crit
Rows 207.2 5 41.44 3.390237 0.022224 2.71089
Columns 339.1333 4 84.78333333 6.936188 0.001133 2.866081
Error 244.4667 20 12.22333333
Total 790.8 29
Interpretation
 The observed value of F for the types of paints is larger than the critical value of F for
degrees of freedom (5,20) which implies that there is a significant difference between
the types of paints, i.e, the choice of paints is dependent on the respondents
preference.
 The observed value of F for the types of brands is larger than the critical value of F
with the degrees of freedom (4,20) which implies that there is a significant difference
between the types of brands, i.e, the choice of the brands is dependent on the
respondents preference.
~ 70 ~
6.2.12 Analysis of Variance (ANOVA) for different types of Construction
Chemicals and Brands
From the data we collected through survey :

Admixture 15 11 0 2 0 3
Tile Adhesive 9 18 0 0 0 0
Roof Treatment 13 7 2 0 6 2
Damp Proof 11 8 0 3 7 2
ANOVA : Two-Factor
SUMMARY Count Sum Average Variance

Admixture 6 31 5.166666667 39.76667
Tile Adhesive 6 27 4.5 56.7
Roof Treatment 6 30 5 22.4
Damp Proof 6 31 5.166666667 17.36667
Sika 4 48 12 6.666667
Pidilite 4 44 11 24.66667
Shalimar Tar 4 2 0.5 1
Texsa 4 5 1.25 2.25
Asian Paints 4 13 3.25 14.25
Berger 4 7 1.75 1.583333
ANOVA
Source of Variation SS df MS F P-value F crit
Rows 1.791667 3 0.597222222 0.059939 0.980045777 3.287382
~ 71 ~
Columns 531.7083 5 106.3416667 10.67271 0.00016158 2.901295
Error 149.4583 15 9.963888889
Total 682.9583 23
Interpretation
 The observed value of F for different types of brands is larger than the critical value
of F with degrees of freedom (5,15) which implies that there is significant difference
between the types of brands, i.e, the choice of the brand of construction chemical is
dependent on the respondents preference.
Chapter 7
~ 72 ~
COMPARATIVE
ANALYSIS OF
ADVERTISEMENT
This comparison is done on the basis of the good features of an advertisement
7.1 Interior Paint
Berger Paints
Product Name Berger Rangoli Easy Clean

Description Father and son made up a mess of the wall, then mom comes up and
looks at their scared faces and says that its easy clean paint where
walls can be washed to remove dirt without affecting the colour.
Attention Factor The display is quite capable of getting the attention of the common
mass as we can see that the lady in the house who is generally most
~ 73 ~
concerned about the cleanliness and longevity of the house takes
everything casually as she knows what has been done can be undone
easily. This usually attracts the attention of the wives and even the
husbands.
Memorizing Factor The punch line in this display i.e “daag jaye par rang na jaye”, is
quite appealing and people will remember this add for this punch
line.
Sentimental Appeal The casual approach of the lady shown in this act works as
sentimental appeal for all women who usually are the most concerned
within the family.
Education Factor Just a wash can free the wall of all dust, dirt and stains.
Asian Paints
Product Name Asian Paints Royale (Luxury Emulsion)

Description Saif Ali Khan who was playing video game and and was unaware of
the fact that there was a clash between his dog and his house butler,
who was carrying some food and drinks for Saif and eventually all
the food and drinks gets spilt on the walls making a mess of it, later it
could be
easily wiped out because of the Teflon surface protector.

Attention Factor 1) Saif Ali Khan a Bollywood superstar
2) Less cautious nature while at home
Memorizing Factor This advertisement is repeated a lot in most of the commercial and
news channels which serves the memorizing factor.
Sentimental Appeal Saif Ali Khan a Bollywood superstar and a member of the royal
family advertising for Asian Paints Royale. It’s a good strategy of
Asian Paints to bring both the Royals together.
Education Factor Because of the Teflon surface protector in the paint, the walls will not
get easily damaged.
~ 74 ~
Kansai Nerolac
Product Name Neerolac Impressions Eco Clean

Description In a newly painted house the husband (SRK) is with his daughter and
pregnant wife. As the paint is free of VOC and Lead its harmless for
even new born children. It is shown that any scribbling in the walls
can be easily washed off i.e the paint is washable.
Attention Factor Firstly, as because of no fumes and pollutants in the paint its even
safe for pregnant women as well as new born babies and secondly,
paints are wash proof.
Memorizing Factor Its not a much repeated commercial as compared to Asian Paints and
Berger Paints. Hence its memorizing factor is low as compared to the
rest.
Sentimental Appeal Appearance of King Khan in this commercial as a Brand ambassador
is itself the strongest sentimental appeal compared to others for a
major section of the population.
Education Factor It’s not having any side effect as it comes with low VOC and its
totally lead free.
7.2 Exterior Paints
Berger Paints
Product Name Weather Coat All Guard Exterior Paints

Description A girl child standing in the window and experiencing the reverse
effect of rain i.e water moving up back to the sky, resembling the
same in case of the exterior walls where water will not percolate and
damage the construction after the rains.
Attention Factor Slogans like “Reverse the effect of rain” and “7 years of warranty”
are good for gaining the attention of the viewers.
Memorizing Factor “Reverse the effect of rain” is said a numerous times within the add
~ 75 ~
which will stay in mind easily.
Sentimental Appeal Keeping the walls fungus free and spotless
Education Factor Presence of silicon pushes water away leaving the walls spotless,
fungus free, and rain proof
Asian Paints
Product Name Asian Paints Ultima

Description Features or key advantages are not shown directly to the customers
but through expressions and acts it is made understandable that year
after year the exterior paint of the house stays without losing its color
and glamour, starting from the birth of the child till marriage.
Attention Factor “7 years warranty with colour stay” this slogan which means that
year after year the conditions of the exterior walls remain unchanged
is good in attracting the attention of the viewers.
Memorizing Factor 4 to 5 times when the owner of the house tries to tell about the
qualities of his son to the different visitors, the visitors without giving
attention to his son starts praising or complementing the paint which
he has used for his exterior walls.
Sentimental Appeal No such sentimental stuffs are related to this advertisement
Education Factor No such educating stuffs are related to this advertisement
Kansai Nerolac
Product Name Nerolac Exel Exterior Paint

Description Son was trying to take a rotten apple then mom comes up and says
which is rotten from outside its even rotten from inside, now the
brand ambassador SRK comes up and says that the same is the case
~ 76 ~
with the house (directing towards their house which presents a
shabby look from outside) so put nerolac paints to keep ur house safe
from outside which will automatically keep it safe from inside, using
the key words like anti germs, anti allergy and anti pollution.
Attention Factor  Ati Germs
 Anti Allergy
 Anti Pollution
 No Harmful Fumes
Memorizing Factor The comparison shown between the rotten apple and the house.
Sentimental Appeal The bollywood star Shah Rukh Khan giving promotion to any
product will itself have a sentimental appeal for a major section of the
Indian population.
Education Factor Tagged as Healthy home paints (low VOC and Lead Free)
~ 77 ~
Chapter 8
OBSERVATIONS AND
FINDINGS
8.1 Contractors
~ 78 ~
 Majority of the dedicated Berger Paints contractors consume product of value more
than 5 lakhs annually.
 Out of the sample of contractors surveyed it is found that 46% of them are dedicated
Berger contractors and the rest 64% use a variety of brands along with Berger.
 On the basis of the survey conducted its found that major section of the revenue of
Berger Paints comes from Interior and Exterior paints.
 The difference in brands does have an impact on the purchase of interior and exterior
paints among all the contractors.
 Shade cards i.e, those cards which contains all the different shades of colours, are not
easily available to the contractors.
 The contractors have a complaint that there is a communication gap between the
representatives or executives of Berger and the contractors.
 Most of the contractors are satisfied with the paint quality of Berger, mostly the
primer.
 Few dissatisfied contractors had a complaint that the coverage of paints of Berger are
less as compared to what it had been previously. This has led to the loss of many
dedicated contractors of Berger who are now shifting towards Asian Paints and ICI.
8.2 Interior Decorators / Architects
 Though this section of interior decorators and architects is a new avenue for Berger
Paints, i.e a market segment which was not a target previously, it is found that these
prospects use Berger Paints products mainly the paints but not in huge volume.
 They mainly prefer interior paints of Asian Paints as it gives a good coverage and the
quality is also better as compared to the others, inspite of the price being higher than
Berger Paints.
 On the basis of the survey conducted it is found that the exterior paint qualities of
Berger Paints are in good demand as it has the maximum share.
 With respect to the exterior and interior texture paints again Asian Paints and ICI
leads the market.
~ 79 ~
 The primer of Berger Paints is highly preferred by these prospects because of its best
quality among all other brands.
 Other brands like Nerolac and Shalimar are hardly preferred.
 The green quality paints are not in much demand, very few people go for that.
 With respect to wood finish materials majority of the architects and interior decorators
use gala polish, NC finish, PU etc are hardly used.
 With respect to the various construction chemicals and adhesives, the market relies
mainly on brands like Sika and Pidilite as they are the pioneers in the market with a
high quality product base.
 An analysis of variance (ANOVA) done on the sample data determines that the choice
of paint brands is dependent on the respondents preference.
 An analysis of variance (ANOVA) done on the sample data determines that the choice
of the brand of construction chemical is dependent on the respondents preference.
 Berger Paints sales team should make more efforts in terms of regular interactions and
co operations with these customers, as these are potential customers and can give
good business if co ordinated properly.
 Shade cards are not available with all the customers, which is a major problem for
them.
 The quality of melamine should be improved according to the responses received
from the survey.
8.3 Advertisements
 If a comparison of all the advertisements of the exterior paints and interior paints of
different brands are made its clearly seen that Berger Paints has less media coverage
as compared to its competitors. But if we refer to the content its quite eye catching
and informative which will be able to influence the viewers.
 The main disadvantage is unlike Asian Paints and Kansai Nerolac , Berger Paints
doesnot have a Brand Ambassador until now, but according to the recent news and
~ 80 ~
updates its known that bollywood actress Katrina Kaif will be promoting Berger
Paints. This can give it more advantage in the near future.
 Repetition of the key factors like “7 years warranty”, “daag jaye par rang na jaye”,
“reverse the effect of rain” etc will remain in the minds of the viewers for a long time
which will be surely reflected in the sales volume.
8.4 SWOT Analysis of Berger Paints
STRENGTHS  Wide range of product and service offering

 Substantially huge customer base
 High on quality and preferred by customers
 Comparatively less price with respect to its competitors/
WEAKNESS  Dependence on paint segment only.
 Less interactive with customers and contractors.
 Less coverage
OPPORTUNITIES  Many new products has been launched
 New segment of customers targeted
 Growing brand conscious population in India
THREATS  Fluctuation in raw material prices
 Intense competition from pioneer brands
~ 81 ~
Chapter 9
RECOMMENDATIONS
Berger Paints is a preferred brand in India but on the basis of the survey there are some fields
that are yet to be more emphasized which can improve the sales volume in the near future are
stated as follows :-
 Both Contractors and Interior Decorators who have been interviewed have a common
complain that there is not much interactions from the company. So sales officers
should be in a regular touch with their customers. Regular interactions are necessary
as a part of after sales service which can bring more sales later.
~ 82 ~
 Many contractors were not satisfied with the training programs given based on the
new product launches. Without sound training they are not willing to use the new
categories of products such as the wood finish materials and many of the construction
chemicals products. So effective training programs should be designed to make the
contractors aware of the dos and donts and pros and cons of a particular product so
that they can make efficient use of it.
 Another alarming factor is that nowadays Berger Paints decorative segment’s
products are giving less coverage as compared to earlier times. So steps should be
taken to make the quality of the paint better and thicker to satisfy the existing
customers.
 Shade cards should be made easily available to the contractors.
 Efforts should be made so that the contractors are made aware of the various new
schemes and new product launches. According to me company should directly
involve themselves with the contractors other than keeping the dealers as middleman.
 As far as the interior and exterior texture paints are concerned the versatility of the
designs should be increased and designs should be more attractive.
 Booklets consisting of various wall designs as well as different shades should be
made available to the householders from where they can chose which category or
quality or design will best suit their personality.
 Stalls should be given in front of the construction sites, so that when people come to
see the flats they have bought, they can be demonstrated with different kinds of wall
paints and texture designs. These prospects can be easily converted into successful
sale.
 Media promotion i.e tele advertisements should be increased. Common mass should
be made more aware of the different types of products and the advantages of using
them.
 For a long time Berger Paints was not having a brand ambassador, but now it has
signed bollywood actress Katrina Kaif as their brand ambassador who is going to
promote Berger Paints. But till now the commercials are not in the televisions. So in
this aspect Berger Paints is having a huge drawback as compared to Asian Paints,
Nerolac and ICI who have well known personalities as their brand ambassador. This
~ 83 ~
plays on the sentimental grounds of the viewers which lead to their greater sale.Brand
promotion by a well known figure is the most needed to gain competitive advantage.
Chapter10
~ 84 ~
LIMITATIONS& SCOPE
OF STUDY
10.1 Limitations
 Only 65 contractors and 35 interior decorators have been visited, which comprises a
very small sample.
 Survey area was confined to south Kolkata and parts of south 24 paraganas.
 Survey was totally confined within small level contractors and interior decorators, but
a huge sale which is contributed by the real estates, builders etc are not investigated.
 Time span was limited to 2 ½ months.
 Questions were mostly open ended.
10.2 Future Scopes
~ 85 ~
 This study can be used by the company to convert more contractors into dedicated
berger paints customers.
 Analyse the requirements of the interior decorators and devise strategies of market
penetration.
 Make a quantitative research and analysis of the effectiveness of the advertisements of
Berger Paints.
~ 86 ~
BIBLIOGRAPHY AND
REFERENCE
Bibliography
1. Marketing Management: A South Asian Perspective by PhilipKotler, Abraham

Koshy, Kevin Lane Keller, Mithileswar Jha
2. Marketing Research: An Applied Orientation by Naresh K. Malhotra, Satyabhushan
Dash
3. Advertising and Promotion by Keyoor Purani, George E Belch, Michael A Belch
Reference
1. http://en.wikipedia.org/
2. http://stockshastra.moneyworks4me.com/paints-indian-paint-industry-analysis-
and-research-report-2011/
3. http://www.scribd.com/
4. http://www.slideshare.net/
~ 87 ~
5. http://www.bergerpaints.com/
APPENDIX
~ 88 ~
APPENDIX-I
KNOW YOUR CONTRACTOR STUDY
PERSONAL DETAILS:
NAME………………………………………………………………………………………
ADRESS……………………………………………………………………………………
………………………………………………………………………………………………
NAME OF THE FIRM…………….……………………………………………………..
………………………………………………………………………………………………
ADRESS (FIRM)…………………………………………………………………………
……………………………………………………………………………………………..
MOBILE NO 1: …………………………………………………
MOBILE NO2: ……………………………………………………………….
LAND LINE NO 1: ……………………LAND LINE NO 2: …………………………....
OFFICENO 1: ……………………………………………………………….
OFFICE NO 2: ……………………………………………………………….
DATE OF BIRTH: ……………………………………………….
DATE OF WEDDING ANNIVERSARY: ……………………………………..
EMAIL ADD: ……………………………………………………………………………
~ 89 ~
PROFESSIONAL DETAILS:-
1) INTERIOR PAINT CONSUMPTION IN A YEAR: (VALUE)
RS ……………………………………………………..........
2) EXTERIOR PAINT CONSUMPTION IN A YEAR :( VALUE)
RS ………………………………………………………………
3) CONST. CHEM. (DAMP PROOF) CONSUMPTION IN A YEAR: (VALUE)
RS ……………………………………….
4) ROOF TREATMENT MATERIAL CONSUMPTION IN A YEAR: (VALUE)
RS ………………………………………
5) WOOD FINISH METERIAL CONSUMPTION IN A YEAR: (VALUE)
RS ………………………………………………..
6) TOTAL TURNOVER OF BUSINESS IN A YEAR: (VALUE)
RS……………………………………………………………….
CATEGORY: A B C
DEALER DETAILS: - (MATERIALS LIFTED FROM)

DEALER 1> …………………………………………………………………….…………
LOCATION: ……………………………
DEALER 2>...……………………………………………………………………………..
LOCATION: …………………………….
DEALER 3>...……………………………………………………………………………...
LOCATION: ……………………………
REMARKS: (EXPECTATION FROM BERGER PAINTS)
~ 90 ~
APPENDIX-II
SURVEY OF INTERIOR DECORATORS / ARCHITECTS
From no. /Interview no.: Interviewed By: Date
CATEGORY: A (6lacs/yr) B (4lacs/yr) C (1.5lacs /yr)

NAME: ……………………………………………………………………………………..
RES.ADDRESS: …………………………………………………………………………...
OFFICE ADDRESS: ………………………………………………………………………
MOBILE NO: …………………………..OFFICE NO: …………………………………...
DATE OF BIRTH: ……………………..DATE OF ANNIVERSARY: ………………….
DEALER: ………………………TERR: ……………………DEPOT: …………………..
NO OF PERMANENT LABOURS /APPLICATION WORKING UNDER YOU: ……...
VALUE OF METERIAL APPLICATION BUSINESS PER YEAR: …………………….
ARE YOU USING PAINTS? YES/NO: ………………………………………………...

(IF YES: WHAT KIND OF PAINTS?): …………………………………………………..
1. INTERIOR EMULSIONS PAINT…………………………………………………
2. EXTERIOR EMULSIONS PAINT………………………………………………...
3. INTERIOR DESIGNER/TEXTURE PAINT………………………………………
4. EXTERIOR DESIGNER/TEXTURE PAINT……………………………………...
5. GREEN QUALITY PAINT (BREATHE EASY
EMULSIONS/ENAMEL)…………………………………………………………..
6. WATER BASED ENAMEL PAINT (BREATHE EASY
ENAMEL)…………………………………………………………………………..
~ 91 ~
(COMPANY NAME /BRAND PREFERRED&MATERIELS VALUE PER MONTH):
………………………………………………………………………………………………
ARE YOU USING WOOD FINISHES? (YES /NO): ……………………………………
IF YES WHAT KIND OF WOOD FINISHES? …………………………………………..
7. GALA POLISH ……………………………………………………
8. NC FINISHES ……………………………………………………..
9. MELAMINE ……………………………………………………
10. PU………………………………………………………..
11. POLYESTER…………………………………………………
12. WATER BASED PU ………………………………………………………
(COMPANY /BRAND PREFERRED &MATERIALS VALUE PER MONTH):

……... ………………………………………………………………………………………
ARE YOU USING CONSTRUCTION CHEMICALS? (YES/NO): ……………………..

IF WHAT KIND OF CONSTRUCTION CHEMICALS? ………………………………...
13. ADMIXTURE (PIDIPROOF LW/PLASTORICSUPER)………...……………………
14. LATEX BASED ……….…………………………………………………………........
15. TILEADHESIVE…………………………………………...…………………………..
16. ROOF TREATMENT……………………………………………….………………….
17. DAMP PROOF (WALLS /ROOF)……..………………………………………………
(COMPANY PREFERRED &MATERIALS VALUE PER MONTH):

………………………………………………………………………………………………
GOVT CONTRUCTOR/PRIVATE CONTRUCTOR /BOTH/GOVT
ENROLLED IN: HOME PAINTING (BERGER PAINTS)/HOME SOLUTION (ASIAN
PAINTS)/ PAINT SUDIO (ICI)/ALL
DECORATIVE /WATER PROOFING /CONST CHEMICAL JOBS/WOOD FINISH
JOBS/NONE/ALL
~ 92 ~
APPENDIX-III
Yearly Results of Berger Paints India
2008-2012
Mar’12 Mar’11 Mar '10 Mar’09 Mar’08
Sales Turnover 2,662.1 2,100.8 1,688.6 1,513.7 1,346.2
Other Income 30.60 35.87 18.22 17.45 7.60
Total Income 2,692.7 2,136.6 1,706.9 1,531.1 1,353.8
Total Expenses 2,384.5 1,883.4 1,507.9 1,381.0 1,216.1
Operating Profit 277.60 217.40 180.70 132.67 130.10

Profit On Sale Of -- -- -- -- --
Assets
Profit On Sale Of -- -- -- -- --
Investments
Gain/Loss On -- -- -- -- --
Foreign Exchange
VRS Adjustment -- -- -- -- --
Other
Extraordinary -- -- -- -- --
Income/Expenses
Total
Extraordinary -- -- -- -- -0.27
Income/Expenses
Tax On
Items
Net Extra Ordinary -- -- -- -- --
Income/Expenses
Gross Profit 308.20 253.27 198.92 150.12 137.70
Interest 22.40 12.18 3.11 12.39 --
PBDT 285.80 241.09 195.81 137.73 137.43
Depreciation 37.60 29.98 26.41 20.40 18.65

Depreciation On
Revaluation Of -- -- -- -- --
Assets
PBT 248.20 211.11 169.40 117.33 118.78
Tax 70.80 62.80 49.26 28.57 26.70
Net Profit 177.40 148.31 120.14 88.76 92.08

Prior Years -- -- -- -- --
Income/Expenses
~ 93 ~
Depreciation for
Previous Years -- -- -- -- --
Written Back/
Provided
Dividend -- -- -- -- --
Dividend Tax -- -- -- -- --
Dividend (%) -- -- -- -- --
Earnings Per 5.12 4.29 3.47 2.78 2.89
Share
Book Value -- -- -- -- --
Equity 69.23 69.21 69.21 63.77 63.77
Reserves 775.40 651.99 556.04 350.37 284.00
Face Value 2.00 2.00 2.00 2.00 2.00
2003-2007
Mar '07 Mar '06 Mar '05 Mar '04 Mar '03
Sales Turnover 1,172.21 987.91 831.68 675.82 586.43
Other Income 5.80 5.30 5.38 5.19 2.55
Total Income 1,178.01 993.21 837.06 681.01 588.98
Total Expenses 1,049.62 878.59 745.75 602.81 526.74
Operating Profit 122.59 109.32 85.93 73.01 59.69
Profit On Sale Of
-- -- -- -- --
Assets
Profit On Sale Of
-- -- -- -- --
Investments
Gain/Loss On
-- -- -- -- --
Foreign Exchange
VRS Adjustment -- -- -- -- --
Other
Income/Expenses
Total
Extraordinary -0.06 -0.31 -5.70 -0.05 -0.05
Income/Expenses
Tax On
Items
Net Extra
Ordinary -- -- -- -- --
Income/Expenses
Gross Profit 128.39 114.62 91.31 78.20 62.24
~ 94 ~
Interest 8.29 5.28 3.64 2.80 3.85
PBDT 120.04 109.03 81.97 75.35 58.34
Depreciation 17.80 17.39 15.69 13.93 13.12
Depreciation On
Revaluation Of -- -- -- -- --
Assets
PBT 102.24 91.64 66.28 61.42 45.22
Tax 19.17 21.35 14.16 17.39 11.80
Net Profit 83.07 70.29 52.12 44.03 33.42
Prior Years
-- -- -- -- --
Income/Expenses
Depreciation for
Previous Years
-- -- -- -- --
Written Back/
Provided
Dividend -- -- -- -- --
Dividend Tax -- -- -- -- --
Dividend (%) -- -- -- -- --
Earnings Per
2.61 3.53 13.08 16.57 12.58
Share
Book Value -- -- -- -- --
Equity 63.77 39.86 39.86 26.57 26.57
Reserves 225.62 188.27 163.44 159.40 139.35
Face Value 2.00 2.00 10.00 10.00 10.00
APPENDIX-IV
The shareholding pattern of Berger paints India Ltd as on December 31,

2011
NO. TOTAL NO. TOTAL NO. TOTAL SHARES

CATEGORY OF OF SHARES OF SHAREHOLDING PLEDGED
OF SHAREHOL SHAR SHARES AS A % OF OR
DER EHOL HELD IN TOTAL NO. OF OTHERWISE
DERS DEMATERIAL SHARES ENCUMBERE
~ 95 ~
IZED AS A % AS A D
FORM OF % OF NUMBER OF
(A+B) (A+B+ SHARES
C)
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / 10 18,643,680 18,643,680 5.39 5.39 - -
Hindu
Undivided
Family
Bodies 5 192,711,438 192,711,438 55.67 55.67 - -
Corporate
Sub Total 15 211,355,118 211,355,118 61.06 61.06 - -
(2) Foreign
Bodies 1 50,234,565 50,234,565 14.51 14.51 - -
Corporate
Sub Total 1 50,234,565 50,234,565 14.51 14.51 - -
Total 16 261,589,683 261,589,683 75.57 75.57 - -
shareholding of
Promoter and
Promoter Group
(A)
(B) Public Shareholding
(1) Institutions
Mutual Funds / 19 1,711,430 1,704,855 0.49 0.49 - -
UTI
Financial 11 44,574 35,358 0.01 0.01 - -
Institutions /
Banks
Insurance 5 12,097,732 12,096,732 3.50 3.50 - -
Companies
Foreign 35 28,606,871 28,606,871 8.26 8.26 - -
Institutional
Investors
Sub Total 70 42,460,607 42,443,816 12.27 12.27 - -
(2) Non-
Institutions
Bodies 615 6,145,195 6,031,381 1.78 1.78 - -
Corporate
Individuals - - - - - -
Individual 36,637 33,729,264 23,155,347 9.74 9.74 - -
shareholders
holding nominal
share capital up
to Rs. 1 Lakh
Individual 17 1,342,819 1,342,819 0.39 0.39 - -

shareholders
holding nominal
share capital in
excess of Rs. 1
~ 96 ~
Lakh
Any Others 648 874,396 654,980 0.25 0.25 - -
(Specify)
Non Resident 505 706,357 491,141 0.20 0.20 - -
Indians
Clearing 136 77,871 77,871 0.02 0.02 - -
Members
Trusts 6 89,168 84,968 0.03 0.03 - -
Foreign 1 1,000 1,000 - - - -
Nationals
Sub Total 37,917 42,091,674 31,184,527 12.16 12.16 - -
Total Public 37,987 84,552,281 73,628,343 24.43 24.43 - -
shareholding
(B)
Total (A)+(B) 38,003 346,141,964 335,218,026 100.00 100.00 - -
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter - - - - - -
and Promoter
Group
(2) Public - - - - - -
Sub Total - - - - - -
Total 38,003 346,141,964 335,218,026 - 100.00 - -
(A)+(B)+(C)
~ 97 ~

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Internship Project Report

Chapter 1:Overview Of Paint Industry In India …………………………10

The industry consists of two segments, namely

 Decorative segment – caters to the housing sector and

PREMIUM MEDIUM DISTEMPER AUTOMOTI CONSUMER

METROS SMALL SUB URBAN

MAJOR INPUTS MAJOR PRODUCTS END USERS

The Indian Paint industry can be divided as:

 The organized sector comprising of large and medium size units

1.4.1 Paints And Their Market Share

BERGER PAINTS Herbert sons GmbH; Auto coatings;

Valspar Corp. Inc,; Heavy duty coatings;

Teodur BV Power coatings

ASIAN PAINTS PPG Ind. Inc., Electro deposition primers;

Sigma coatings, High performance coatings,

Nippon Paints Power coatings

GOODLASS Kansai paints Auto & Industrial coatings

ICI(India) ICI plc. Auto refinish

J&N Herbert sons GmbH Auto coatings

1.5 Drivers to the growth of the Paint Industry

2. Increasing Urbanization: Urbanization is leading to a shift from temporary houses to

1.6 Main Concerns Of The Paint Industry

1.7 Paint Industry Prospects

1.8 Top Paint Brands In India

Purpose of Corporate Philosophy

An effective corporate philosophy helps a company develop a certain corporate culture,

Creating a Corporate Philosophy

Corporate Philosophy Benefits

2.2 Company History And Milestone

2.3 Company Background

Transform our home with the POWER OF IMAGINATION.

2.4 Board of Directors

 Mr. Kuldip Singh Dhingra (Chairman)

2.5 Landmark Projects

The Calcutta Club was set up in 1907 in response

In 1994 as a development and maintenance

The land on which Mantri Greens is built was once

2.7 Berger’s Presence All Over The World

Market Share of Industrial Paints

2.9 Market Share Of Decorative Paints

2.10 Industrial Sector Composition

Marketing decisions fall into four main controllable categories namely

Relating these factors with respect to Berger Paints

Differentiated market segment

Depot Depot Depot Depot Depot

Dealer Dealer Dealer Dealer Dealer

Feed back Customer Wholesale

BERGER’s hybrid marketing system

Direct dealer Customer

Sales Promotion is an important component of marketing communications mix. It adds an

Sales promotion can be used:

 For facilitating introduction of new products

Commonly Used Tools and Techniques of Sales Promotion:

Paint shows maximum growth before festive

2.12 Sales Turnover For the Past Ten Years

Year Year Number (x) Sales turnover in crores (y)

development by targeting new geographic markets, new demographic or psychographic

3) Analysis of the advertisements : Advertising is a form of communication for marketing