Professional Documents
Culture Documents
Contents
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11. CONDITIONS 13
The vision of ICI is to be the leader in formulation science. It has, and continues to
develop, a portfolio of businesses that are major players within their respective industries,
bringing together outstanding knowledge of customer needs with leading edge technology
platforms to provide superior products to its customers. Through these attributes, it aims to create
superior value for ICI customers and shareholders, without compromising its commitment to
safety, health, environment and the communities in which it operates.
ICI Pakistan Limited is involved in various businesses including:
• Polyester fibers
• Soda ash
• Paints
• Chemicals
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• pharmaceuticals
History
1944
• The khewra soda ash Company, a predecessor of ICI Pakistan Limited, set up a soda ash
manufacturing facility in Khewra with a capacity of 18,000 tones per annum. This facility
was sited next to the salt range as rock salt and limestone, two key raw materials needed
for manufacturing soda ash, were available here in abundance.
1953
• The Khewra Soda Ash Company was incorporated as a public limited company.
1966
• The Khewra Soda Ash Company changed its name to ICI Pakistan Manufacturers
Limited.
Over the next few decades, major changes took place in the company as our Specialty chemicals
and Polyester plants were commissioned, and Imperial Chemical Industries (Pakistan) Private
Limited and Paintex Limited both merged into ICI Pakistan Manufacturers Limited
1987
• The company has changed their name to ICI Pakistan Limited
The company launch the business as well as the Dulux range of coatings.
The company has established ICI Pakistan Power Gen and set up the ICI Pakistan
Foundation as a charitable trust
1995
• The company has set up a USD 490 million PTA manufacturing facility at Port Qasim,
near Karachi.
1998
• PTA manufacturing facility commissioned
2000
• The business was de-merged to form Pakistan PTA Limited, which was at the time a
subsidiary of ICI Plc UK.
2007
• We completed 50 years of continuous listing on the Karachi Stock Exchange
2008
• The company formally became part of the Akzo Nobel Group, bringing us under the
banner of one of the
Largest coatings and chemicals companies in the world
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ICI Paints
"The ICI Paints team intends to remain market leaders in the Paints Business. The company has
aim to be recognized for offering the best products and excellent customer
service. The company is running a high quality, profitable and growth oriented business in an
exciting and safe environment."
[Mission Statement]
All the three business have embarked on programs which focus on the consumer and customer
needs. The focus is to understand the needs of the major stakeholders. Pursuing research, market
understanding and delivering high quality product and services forms the nucleus of creating a
competitive advantage in the market place for the paints business.
The Industry & Automotives coatings business of ICI paints besides gaining strength in the local
market also aspires to become a regional player. Self leveling epoxy floor coatings have been the
new addition in the product portfolio and have been well received by major customers. After the
initial success of the Turn-Key project management concept with one of the leading customers
where a one shop solution in terms of design, fabrication and commissioning of automotive
paints is done by ICI, the business is now offering it to other customers also.
• Decorative.
• Refinish and Industrial.
• Automotive.
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ICI Product line
• Dulux pentalite natural white special emulsion with added fragrance (Acrylic Based)
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• Dulux contractors plastic emulsion
• Dulux prime-on
• Maxilite
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Dulux Metallic Finish Enamel
Dulux Metallic Finish is a high quality solvent based super gloss finish, suitable for use on all
types of interior and exterior wood and metal surfaces. Dulux metallic Finish gives a smooth
finish and excellent durability. Generally resistant to heat up to 90 C, but some discoloration of
light colors may occur at temperatures above 80C Resistant to the levels of atmospheric humidity
present in normal interior and exterior environments and will withstand repeated washing. Not
suitable for use on immersed surfaces. Spray is the only way to apply and it is highly flammable.
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There are further 5 warehouses in the country.
• LAHORE
• ISLAMBAD
• MULTAN
• KARACHI
• QUETTA
The distribution channel includes Distributors and Dealers/ retailers. The Pakistan is divided into
3 regions.
• Upper PUNJAB
• MIDDLE PUNJAB
• LOWER PUNJAB
Every region is headed with Regional Sales Manager and in every Region there are further Area/
Territories. The supply activities are carried out with keeping the region and areas. One region
cannot carry out supply in others region same in the case with areas/ territories.
The product is only delivered to the company approved dealer or distributor. Distributor can sale
to the customer which is not approved dealers of the company. Main consumption of paint is on
dealer/retailers counter. The delivery is made through 2 modes
• Distribution Vehicles
• Freight On Road ( goods transportation service)
By these 2 means ICI manage the distribution and placement of their products to be
available for
Their customers and consumers
Customer satisfaction is itself a promotion tool for ICI Paints and it help to develop C2C
relationship.
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ICI Paints arranges painter parties at different places and at this event gift are given to those
painters which have used a reasonable quantity of ICI paint for the period.
ICI Paints has given a target to every dealer according to its capacity and market analysis. If that
dealer meets that target, ICI Paint will take that dealer to some other country for recreational
purpose e.g. last time ICI Paints chartered special plane for its dealers and took them Dubai. For
present year ICI Paints has promised to take its dealers to Malaysia.
Just like other paints ICI has offered a token in every Bucket or Gallon of Maxilite and Paintex
which are worth Rs. 220 per Bucket and Rs. 60 per Gallon.
The company is promoting its product through the following modes
• Advertisement
• Public Relations
• Sales Promotion
• External Communication
• Posters / Banners
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• Small gifts for painters / contractors who are labor force who apply paint
• Caps
• Key chains
• LAHORE
• ISLAMABAD
• KARACHI
• QU ETTA.
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If we compare the price of Dulux with other local brands, it’s the fact that price difference is not
more than 20-100 rupees. As far as quality is concerned, by paying more customers is not
worried about the quality.
For the market which is middle tier, ICI’s brands Paintex Emulsion and Glidden are the brands
with low price and optimum quality within the tier. If we go into the comparison of Paintex and
Glidden their price is lower than the other paint brands selling in the market. Glidden is purely
priced to cover the buying power of middle tier.
The price of the products in which ICI is having technological edge over competitors is
comparatively high. The reason is that ICI is enjoying state of monopoly for that product. There
is no product in the market to encounter them.
• The price of Dulux Weather shield Fresh is Rs. 1050/-, others companies brands offered
in the market are 300-400 Rs less than Weathersheild Fresh.
• Same is the case with Dulux Gloss Finish and Dulux Matt Enamel Odorless Range. The
price is Rs. 300-400 more as compared to other brands.
• So pricing factor vary from brands to brands and target market.
Competitor analysis
ICI is the largest paint manufacturing company in Pakistan. The company has hundreds of
competitors in open market, but they have little share in total market. Mainly there are two main
competitors of ICI paints i.e. Burger paints and Master Paints. Other competitors include the
following:
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• Nippon paints
• Diamond paints
• Silky paints
• Bright paints
All other companies have fewer shares as compared to the main competitors.
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CONDITIONS
1: YOUR LARGEST COMPETITORS HAS REDUCED ALL ITS PRICES BY 15%
ICI has two main competitors i.e. burger paints & master paints. Suppose that those two main
rivals have reduced their prices by 15% on their paint products. There is need to analyze & judge
this step taken by the ICI competitors. There may be an intention to create new customers or to
target new segments in rural & urban areas in order to increase their sales, profit and to boost up
their market share to capture the paint industry in Pakistan.
This is a major threat to the market leader ICI paints. There is need to take corrective decisions
in order to keep the company position in the market. The company can take the following steps:
• The company may also decrease their prices to make tuff competition with its rivals
• The company may offer some products like paint brushes and other products necessarily
required to paint the houses, shops e.t.c
• The can increase the promotion of their products by giving some incentives to its
distributors, wholesalers and retailers.
• The company can launch new product which is not currently launched by its competitors.
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• The company can introduced new technology, it helps the company to reduce their
production cost and the company is able to sell it at lower prices for better quality.
• The company can increase its advertisement of newly coming products, this will help
them to set a great image in consumer mind in order to retain their customers.
• The company can introduced their products in the segments or areas, in which the
company products are not launched before.
• The company can improve their customer services or environment and customers relation
relations for the delivery of quality product.
2: THERE IS A GENERAL ELECTION IMMINENT. POLITICAL PUNDITS ARE
FORESEEING A NEW GOVERNMENT IN POWER WHICH HAS PROMISED
PROTECTION FOR LOCAL BUSINESS IN ITS ELECTION MANIFESO.
3: INTERNATIONAL OIL PRICES ARE EXPECTED TO RISE AGAIN THIS YEAR IN
THE WAKE OF RENEWED POLITICAL CRISES IN A MAJOR OPEC COUNTRY.
The ICI paint company is paint manufacturing company. The company production is directly
linked with oil. The change in the prices of oil will affect the paint industry as a whole. There
are different chemicals used in the manufacturing of paints. The high prices of raw material
in inflationary conditions will affect the production of paint industry and increase the prices
of paints.
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the new segments or areas. The company can distribute free samples of paints to market their
products. This will help them to increase their customers and market share in future. The
company can also decrease the prices of paint products in flood victim areas.
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