A REPORT

ON TRAINNING UNDER TAKEN AT

TO EXPLORE THE POTENTIAL OF NEROLAC PRODUCT IN UPCOMING PROJECTS IN JAIPUR CITY BY VARIOUS BUILDERS

SUBMITTED TO : MR. 3rd) NARESH AGARWAL

SUBMITTED BY : DHARMENDRA KATIYAR(BBA

STAINI MEMORIAL P G COLLEGE A REPORT ON

TO EXPLORE THE POTENTIAL OF NEROLAC PRODUCT IN UPCOMING PROJECTS IN JAIPUR CITY BY VARIOUS BUILDERS

BY DHARMENDRA KATIYAR
2

A report submitted in partial fulfillment of the requirements of BBA 3rd yr from STANI MEMORIAL PG COLLEGE

PREFACE
The BBA programmed is well structured and integrated course of business studies. The main objective of practical training at BBA level is to develop skill in student by supplement to the theoretical study of business management in general. Industrial training helps to gain real life knowledge about the industrial environment and business practices. The BBA programmed provides students with a fundamental knowledge of business and organizational functions and activities, as well as an exposure to strategic thinking of management. In every professional course, training is an important factor. Professors give us theoretical knowledge of various subjects in the college but we are practically exposed of such subjects when we get the training in the organization. It is only the training through which I come to know that what an industry is and how it works. I can learn about various departmental operations being performed in the industry, which would, in return, help me in the future when I will enter the practical field. Training is an integral part of BBA and each and every student has to undergo the training of for 2 months in a company and then prepare a project report on the same after the completion of training. During this whole training I got a lot of experience and came to know about the management practices in real that how it differs from those of theoretical knowledge and the practically in the real life.

In todays globalize world, where cutthroat competition is prevailing in the market, theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which would help an individual in his/her carrier activities and it is true that Experience is best teacher.

ABSTRACT
In this competitive market where customer and dealer is the king, it is very important to analyze the customer perception about the product. Companies, by conducting various market researches, try to improve their products and provide customers better and more services. As without putting customers on the top no company can get success. For achieving success every company should target customers because the market is totally market oriented. The report is prepared for the partial fulfillment of BBA programme and as a part of curriculum. The report is an attempt to find out the Builders Perception with special reference to Kansai Nerolac Paints Ltd. This training is being conducted by survey on the builders. The survey was conducted through questionnaires by personally interviewing each respondent on a number of queries structured in the questionnaire. The data thus collected through survey was organized in a database, which could be referred for future endorsements. The data thus collected was then subjected to analysis by a mixture of common and advanced statistical technique. The above mentioned survey was conducted on 50 respondents. The respondents were selected from different parts of jaipur city.. It is found that still kansai Nerolac Paints Ltd is the strongest competitor for the private Paints companies like: Asian Paints, Berger Paints, ICI Paints and Shalimar Paints, etc.

ACKNOWLEDGEMENT
I would like to express my sincere gratitude to MR. KAMLESH SINGH, Kansai Nerolac Panit Ltd.(Head), Jaipur, for his permission to pursue my Project. his busy schedule. I extend my sincere thanks to, Prof. NARESH AGARWAL. (Stani memorial PG college) for having spared their valuable time with me and for all the guidance given in executing the project as per requirements. Last but not the least; I would like to record my deepest sense of gratitude to my friends for their support and constant encouragement. Mr.Ballabh gupta, (TSM) For his constant support and mentorship throughout the project despite of

Thank You Dharmendra katiyar

TABLE OF CONTENTS

S.NO

CONTENT

PAGE NO.

Cover Page

Title Page

ii

Preface

iii

Abstract

iv

Acknowledgement

chapter 1- overview of paint industry

chapter 2 -introduction of company

15

chapter 3-competitors and strategies

38

19

chapter 4- research methodology

48

10

chapter5- observation & analysis

51

11

Chapter6- conclusion and recommendation

61

12 13

annexures
bibliography

63 68

CHAPTER 1 OVERVIEW OF PAINT INDUSTRY

HISTORY OF PAINTS:Colour has fascinated culture throughout history, every age and every region has produced dyes and pigment depending on the available resources. Colour has been with us for more than

10

20,000 years. Evidence survives in early cave paintings and the ancient Chinese are considered to have brought its manufacture and use to a state of perfection tens of thousands of years ago. Colour was widely used by the ancient Egyptians and was considered to have magical and healing properties and around this time, 1500 BC, paint making as an art became quite widely established in Crete and Greece with the Egyptians passing their skills to the Romans. It was between 600 BC-AD 400 that the Greeks and Romans then introduced varnishes. For the Aztec Indians red dye was considered more valuable than gold and both the Indians and Chinese practiced Colour Healing. A 2000 year old, Chinese chronicle, The Nei/ching, records colour diagnoses. Yet for all this it was discovered that none of the worlds civilizations has named many colours. In the 1960s two anthropologists conducted a worldwide study of colour naming. Many languages only contained two colour terms, equivalent to white (light) and black (dark). Of 98 languages studied, the highest number of basic colour terms was to be found in English - where we have eleven: black, white, red, orange, yellow, green, blue, purple, pink, grey and brown. The other millions of colours have 'borrowed' names, based on examples of them, such as avocado, grape, peach, tan, gold, etc. One of the earliest recorded colour discoveries was made by Plato who discovered that by mixing two colours, a third is produced, therefore changing the, 'manufacture', of colour forever. Prior to that the earliest cave paintings were made by using iron oxides, it was the ancient Egyptians who developed other paints from pigments in the soil (yellow, orange, and red). It was the Romans who gave us purple, a pound of royal purple dye, required the crushing of four million mollusks. Cochineal red, discovered by the Aztecs, was made using the female cochineal beetle. A pound of water-soluble extract required about a million insects and it was the Spaniards who introduced the crimson colour to Europe in the 1500's. Later genuine Indian Yellow was produced from concentrated cows urine which was mixed with mud and transported to London for purifying, Sap Green from the Blackthorn berry and Sepia Brown from the dried ink sac of squid. Paint is made up of a pigment, a binder to hold it together and appropriate thinners to make it easy to apply. 5000 years ago Blue Frit was the first synthetic pigment being produced by the Egyptians from ground down blue glass. Before the nineteenth century the word 'paint' was only applied to oil-bound types; those bound with glue were called 'distemper'.
11

By 1000 B.C. development of paints and varnishes based on the gum of the acacia tree (better known today as gum arabic) had been developed. At this time umbers, ocher's and blacks were readily obtainable, new colours were also discovered - the first was 'Egyptian Blue'; 'Naples Yellow' dates from around 500 BC and 'red lead' was discovered by accident in about 2500. White lead occurred naturally but demand encouraged production of manmade versions. Vitruvius describes production of white lead in the 2nd century AD. Before the 16th century, pigment colour was largely dependant on dyestuffs which could be grown in, or were indigenous to Europe and similar temperate regions. Between 1550 and 1850 only the so-called natural dyestuffs were available but the range was greatly extended with tropical dyestuffs from Central America and India and elsewhere. In the 17th century the Dutch greatly increased availability of white lead and lowered cost by invention of the Stack Process. All white lead paints included chalk in their undercoats, reserving purer white lead for finish coats. In1856 the first real synthetic dye, 'Mauveine', was discovered by Henry Perkins. It was then realized that a great many dyes could be made synthetically and cheaply. It was then that Linseed Oil began being mass produced. They also had pigment grade zinc oxide - we call it white paint. Using cast-iron paint mills and zinc-based pigments, industrialists produced the first washable paint marketed as 'Charlton White' in the 1870's (the first ready mixed paint was patented by one D.R. Averill of Ohio in 1867, but it never caught on). The Sherwin-Williams company spent ten years trying to perfect the formula where fine paint particles would stay suspended in Linseed oil. In 1880 they succeeded in developing a formula that far exceeded the quality of all paints available at the time. It was then that emulsions based on similar formulae, were produced and marketed as 'oil bound distempers'. By 1880 the new paints were readily available in tins, in a wide range of colours, and came to be exported all over the World.

INTRODUCTION TO PAINTS INDUSTRY IN INDIA

The Indian paint industry is over 100 years old. Its beginning can be traced back to the setting up of a factory by Shalimar Paints in Calcutta (now Kolkata) in 1902. Until World War II, 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
12

foreign companies continued to dominate the market. Initially British paint companies such as Goodlass Walls (now Kansai Nerolac), ICI, British Paints (now Berger Paints), Jenson Nicholson and Blundell & Eomite dominated the market. Paint Companies in India bring to you a wide range of paints, varnishes, pigments and coatings for the perfect finishes for the home interior and exteriors dcor and beautification. The paints industry in India has flourished into a full-fledged manufacturing and sale market catering to the international standards being demanded for the painting jobs. Painting is a vital ingredient in any dcor. Different surfaces require different kinds of products. The surfaces may vary from walls - interior, exterior and textured to wood and glass surfaces, metals, faux finishes, doors and handles to cars and special decorative paints for bedrooms and kids rooms and many such special requirements. The India paints companies have given many products to suit each individual need. You can get all varieties of plastic paint, acrylic paint, primers, emulsions, latex paints etc. in a wide spectrum of colors to choose from. Selection of home and office paint goes far beyond just the matching or desired color. The texture and quality of the paint applied is what matters the most for the perfect finish you are looking for. Some of the common problems one might face with the painting jobs done on their surrounding surfaces are blistering, cracking or flaking, blocking, sagging, yellowing, fading or surfactant leaching. The Indian Paints industry is worth more than Rs. 110 billion. The demand for paints is priceelastic but it is linked to industrial and economic growth. In India the organized sector controls 70 percent of the total market with the remaining 30 percent being in the hands of nearly 2000 small-scale units. The industrial paint segment accounts for 30 percent of the paint market while the decorative paint segment accounts for 70 per cent of paints sold in India. In most developed countries, the ratio of decorative paints vis-a-vis industrial paints is around 50:50. Indian paints industry offers lucrative scope for stable revenue streams to manufacturers of both decorative and industrial paints. The types of paints available in the market and their utility are: Acoustic Paint: It is specially designed for acoustic tiles Alkyd Resin Paint: Best suitable for trim, doors, faux finishes and other maximized use areas. Dripless Paint: This paint is thicker and is most suitable for application on ceilings

13

Latex Paint: The applicability of this paint is easier than most other and it dries much quickly. It is also easier to be washed. One-Coat Paint: It is the more expensive version of the latex and alkyd paints and is mostly chosen for surfaces that require flawlessness in color. Primers: This paint is the initiation for all interior paint works. Rubber-Base Paint: This is best for concrete and bricks. Textured Paint: If need is to cover any flawed surface in your house get this paint. It works well on ceilings. Besides these home decorating and improvement paints and office paint you can also get industrial paints, aircraft paint, airplane paint, aviation paint and many other paint products with the paint shops in India. The paint companies in India house a wide range of paint products that cater to all your needs. A whole spectrum of colors with your own textured options and application patterns are available with the paint companies. Each company has its own specialized product and some also offer home paint services. The cost of a painting job may vary with the paint chosen - acrylic, emulsion, primer etc., the paint tools being used and the painting company hired. The industry has also witnessed increased activity in the industrial variety of paints with the entry of MNCs in auto, consumer durables etc, which has been gaining steadily over decorative paints in the last one decade. The typical characteristics of the Indian paints industry have been discussed in depth covering the typical features of the Indian industry viz., raw material intensiveness, working capital intensiveness, seasonality of demand, price elasticity of demand and low entry barriers. The current global scenario with reference to the paint industry has been covered in the report with special focus on auto-coats market, which is a key growth area in the International market. While talking about the post independent development of the Paint industry in India, mention must be made of Asian Paints, a completely Indian unit which started on a very small scale, grew so big and so beyond recognition over the years that it is today not only the largest unit in India but way ahead of the second largest, Kansai (Goodlass) Nerolac Paints Ltd., formerly a unit of Goodlass Wall (UK). Besides Asian Paints, numerous factories, wholly Indian in ownership and with rare exceptions in technology as well, were set up in Kolkata, Kanpur and Mumbai. The British units, though a
14

few in number, were technically strong and financially sound and, with the active support and patronage of the Government, controlled a vastly higher share of the market. The post independence period witnessed a steady growth in the paint industry. From a mere Rs.200 million turnover in 1950, the paint industry crossed the Rs.14000 million mark in 1990-91. But even in this period, paints were considered a luxury item. Only people with high incomes were expected to decorate their houses with the use of paints. Paints, as a protective element, were totally unheard of. The industrial segment, which was traditionally a low user of paints, vis--vis its counterparts in the decorative segment, too contributed to this notion. In line with this misconceived notion, the government drastically increased duties on paints in the early nineties with an aim to bolster exchequer revenues. The result was obvious. This inevitably brought about a downturn in the fortunes of the industry. The products, which are highly price elastic, saw a negative growth rate of 20 % in 1991-92. The next year was also not good, registering a growth of only 2%, bringing it back to the 1990-91 level, thus corroborating the fact that the industry needed lower excise levels to grow. The industrial slowdown during that period also did not help matters. In line with the liberalized policies and the realization that paints are not necessarily a luxury item, duties were progressively reduced from 1993-94. This squared growth as most companies passed on duty reductions. Further, the entry of world majors in the automobile and white goods market in India since 1993 helped the market to expand. Demand for auto paints shot up suddenly. Form a modest 8% growth rate in 1993-94, paint demand touched 12% in 1995-96. Rapid industrialization and improvements in the infrastructure such as transport, energy and communication during the last decade gave a further fillip to the growth of the paint industry. Aided by Governments liberal policy of technology import, the automotive and consumer durable segments expanded phenomenally, with a flurry of foreign collaboration. Increased demand for decorative, protective and functional coatings was a natural fall out, which brought, in its stride, a host of indigenous developments as well as the injection of new technology.

SWOT ANALYSIS OF INDUSTRY:Strengths

15

 Imp of brand image as barriers to new entrants Good technology backup.

Weakness
Raw materials scarcity Requirement of high working capital Real estate in a depression phase.

Opportunities
Fiscal incentives provided by Government. Commodity to FMCG. Rise in disposable income

Threats
Foreign companies entering as sole players

CHAPTER 2
INTRODUCTION OF COMPANY
HISTORY OF THE ORGANIZATION We embarked our journey 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
16

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 Paint 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 Paint Co. Ltd., with the latter acquiring 36% of its share capital. In 1999, Kansai Paint Company Ltd., Japan took over the entire stake of Tata Forbes group and thus KNP became a wholly owned subsidiary of Kansai Paint Company Ltd. In 2006, on the 11th of July, Goodlass Nerolac Paints Ltd. name has been changed toKansai Nerolac Paintss Ltd. During the journey of continuous performance excellence, we have entered in to many technical collaborations with other industry leaders such as E.I. Du-Pont de Nemours & Company Inc., USA and Oshima Kogya Company Ltd., Japan for our different products. Our incessant journey of successes will go on backed by our present human asset of over 2000 professionals and a sales turnover of Rs. 1484 crores. We are esteemed to be 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. We are the second largest coating company in India with a market share of over 20%. We are the market leader in industrial / automotive segment supplying over 90% of the OEM requirements. We are the leader in powder coatings. VISION VALUES AND CULTURE In todays dynamic business environment, no organization can afford to survive without a wellarticulated and carefully thought vision stating the overall strategic direction and long-term future of its business.
17

We have been at the forefront of paint manufacturing over eight decades pioneering a wide spectrum of quality products that change the face of economy and lifestyles of people at large. It is our vision to leverage global technology, for serving our customers with superior coating systems built on innovative and superior products and world class solutions, to strengthen our leadership in Industrial coatings and propel for leadership in Architectural coatings, all to the delight of our stakeholders. We firmly believe that it is not only the vision of where we wish to go which will form a cornerstone of all our further growth, but also our conviction to the fact that the values based proposition has to be ultimate foundation of our business. To this end we consciously have internalized and been practicing these values in all our business transactions though human beings: Innovation Entrepreneurial Responsive Simplicity Team Orientation

OBJECTIVE OF COMPANY: The management of kansai nerolac decided some objectives to become topper in the market. And the objectives are: o Better quality then other company. o Fair returns to share holders. o A higher productivity to cover maximum market. o Maximum customer satisfaction. o Clean & healthy Environment for employees growth. o Try to lower pollution to fulfillment of social responsibilities

CULTURAL ETHOS Vision driven organization

18

Employees feel pride in being part of the organization Recognition of human resources as extremely important and critical assets High level of human dignity Transparency and openness among employees at all hierarchical levels Performance-linked reward system Management and employee commitment to organization values is high Autonomy in work is high High commitment to quality products

THE QUALITY POLICY It is the philosophy of Kansai Nerolac Paints s Ltd., and its associates to achieve complete customer satisfaction by providing products and services that consistently meet or exceed the customer needs and expectations, pursuant to agreed specifications, delivery schedules and competitive prices. It is the philosophy of the company to systematically operate its manufacturing facilities by inculcating commitment to total quality management at all levels and on a continuous basis with a view to achieving First Time Right results in manufacture, services and other operations. It is the companys aim to constantly reduce waste of material and effort, increase efficiencies and ensure safety of plant and people and protection of the environment. OPEN DOOR POLICY Working together requires that we have a friendly atmosphere based on trust and respect amongst all of us. At Nerolac we follow an Open Door policy. Any person is free and welcomed to share good idea, suggestion, doubt, problem about job or work place, or uncertainties about ones future in the organization. An open and transparent communication is appreciated. SOCIAL RESPONSIBILITY The company continues to make its due contribution to community relief and development activities and has donated both in cash and kind for the beautification of some public places in Mumbai and elsewhere. The company continued its activities directly or indirectly through
19

trusts/agencies in community Development and Social Welfare including contributions towards national defense, medical help, education, improvement of environment etc. ORGANIZATIONAL STRENGTHS An organization is not set on pillars of brick and concrete but is set on strong inherent characteristics that make it strong for years! Nerolac is carrying on strong since 1920. Following are its strengths that have kept this company in good faith. STRONG VISION AND VALUES Nerolac is a company with very clear and well-defined vision and very strong values. Clarity of vision and strong foundation of cultural values have always kept this company in good stead. Its ethical conduct has always guarded it against any possible traps and pit falls. We have made sure that the distribution hurdles and the climatic vagrancies do not affect the quality of our services. This same commitment will ensure that Kansai Nerolac will march towards its centennial year, fully dedicated and invigorated, in step with the exciting wave of industrialization and modernization pervading through the new India.

KANSAI NEROLAC PAINTS AND THEIR ASSOCIATES COMPANIES:The Associates are: Nipa Chemicals Limited:-

This Company specializes in the manufacture of Pre-Treated Chemicals. Nipa Chemicals Ltd., is a joint venture of Nihon Parkerizing Co. Ltd., Tokyo, Japan, and kansai Nerolac. kansai Nerolac provides the technical and the marketing support for Nipa Chemicals.
Polycoat Powder Limited:-

Kansai Nerolac provides the marketing expertise and technical services for Polycoat products. KANSAI NEROLAC PAINT LTD & THEIR TECHNICAL COLLABORATORS Committed to provide the best in Paints, Kansai Nerolac have entered into Technical Collaboration with four industry leaders known for their technical superiority.
20

The four technical collaborators are:

E.I. Dupont De Nemours & Co. Inc,U.S.A; Kansai Paint Co. Ltd., Japan; Oshima Kogyo Co. Ltd. Japan Dupont Performance Coatings GmbH & Co.KG ; Germany

The Associates of Nerolac provide that vital edge to stay ahead of the competition. These associations were setup with the specialized expertise of the Industry leaders to make Nerolac a complete Paint Company catering to all the market segments. MARKET STATUS OF THE ORGANIZATION The Company has registered a Top line growth of 21.9% at Rs. 345.06 crores, in the IV Quarter, as compared to Rs.283.01 crores in the previous year, same period. The Profit Before Tax posted for the IV quarter is of Rs. 35.68 crores as against Rs. 31.06 crores in the previous year, same period, registering a 14.9% increase. On cumulative basis, for the full year the gross sale registered is of Rs 1483.86 crores, an increase of 21% per cent, as compared to Rs1225.98 crores for the previous year. The Company has posted Profit Before Tax of Rs. 160.97 crores as against Rs. 199.60 crores in the previous year. Previous years profit included an extraordinary gain on sale of shares of Rs 50.39 crores. On excluding this, the growth in Profit Before Tax is 7.7%. During the quarter, a scheme of amalgamation of Polycoat Powders (PPL) with the Company was approved by the Bombay High Court effective 1st April, 2006. On completion of all the statutory formalities, the scheme has been given effect to, in these results and hence figures for nine months have been restated. Consequently, figures for the quarter and year are not comparable with the previous quarter/year. Pursuant to the amalgamation, the company has issued 14,38,320 shares to Kansai Paints Japan as a result of which Kansai Paint Japans equity holding has increased from 64.52% to 66.41%. Commenting on the performance of the company, Mr. H. M. Bharuka, Managing Director,Kansai Nerolac Paintss Ltd, said It has been a year since we started working under the brand name Kansai Nerolac and we have had a favorable year with Top line growing at
21

21%. The growth this year is led by Decorative business. The growth in industrial has been lower and the cost could not be fully passed on to customers. We will continue to invest in research & technology in developing new products & finishes keeping abreast of all the latest trends in the sector and cost will be kept under check. The boom in infrastructure continues to accentuate the sales and industrial is not the least behind. Kansai Nerolac Paints has been at the forefront of paint manufacturing for more than 86 years pioneering a wide spectrum of quality paints. Kansai Nerolac is the second largest paint company in India and undisputed leader in Industrial segment, having a turnover of Rs1484 crores. The company has five strategically located manufacturing units all over India and a strong dealer network of over 11000 dealers across the country. The company anufactures a diversified range of products ranging from architectural coatings for homes, offices, hospitals and hotels to sophisticated industrial coatings for most of the industries. ORGANIZATIONAL STRUCTURE A sale organization is both an orienting point for co-operative endeavor and a structure of human relationships. It is a group of individuals striving jointly to reach qualitative and bearing formal and informal relations to one another. Existence of a sales organization implies the existence of patterns of relationships among subgroups and individuals established for purposes of facilitating accomplishment of the group's aims. A good and efficient sales organization is the foundation for execution of sales policy and sales program me. The concept of organizational structure is somewhat abstract and illusive. However it is real and effects everyone in the organization. According to March and Siman, "Organizational structure consists of those aspects of pattern of behaviour in the organization that are relatively stable and change only slowly." It facilitates the growth of the organization. It stimulates creative thinking and initiative by proving well defined are of work with provisions for development of new and improved ways of working.
22

Organizational Structure:-

PRODUCT PROFILE OF KANSAI NEROLAC PAINTS LTD.

23

PRODUCTS

DECORATIVE PAINTS

INDUSTRIAL PAINTS

Decorative Paints
(1) Walls

Interior Water Based Paints EMULSION NEROLAC IMPRESSION 24 CARAT PREMIUM LUXURY EMULSION Product Description Nerolac Impression 24 Carat Premium Luxury Emulsion is a premium quality Architectural coating specially formulated by using pure acrylic latex, and high opacity micronised pigments so as to impart smooth velvet finish, with excellent wash ability. Performance Features & Benefits Smooth Velvety Finish with Sheen Excellent Flow & Brushability Excellent Washability & Stain Resistance Very good Antifungal Resistance Ease of application
24

 Low odour. NEROLAC IMPRESSION METALLIC Product Description Nerolac Impression Metallic is a premium quality water base special effect designer series range that creats a variety of special effects and textures on interior walls and is based on pure acrylic emulsion Performance Features & Benefits Smooth Velvety Finish with Sheen Excellent Flow & Brushability Excellent Washability & Stain Resistance Very good Antifungal Resistance Ease of application Low odour. Good aesthetic look Can make various designs with different application tools NEROLAC DISNEY EMULSION Description: Nerolac Disney Emulsion is a water-based, premium super luxury interior wall finish. It provides a distinctly rich, velvety smooth with exquisite satin finish. Ideal base coat for Disney stencil application and for superior results. Properties: It offers excellent washability and superior stain resistance. No added lead, mercury or chromium compounds. Designs: Nerolac Disney Emulsion has beautiful designs of Micky & family, Pooh and Princess. Packaging: Nerolac Disney Emulsion is available in 1lt attractive pack. Along with this one set each of stencil kit and tool kit is required for one complete design.
25

DISTEMPER

NEROLAC BEAUTY PREMIUM ACRYLIC DISTEMPER Product Description Nerolac Beauty Premium Acrylic Distemper is supplied in paste form, and it can be used for the decoration of fully matured plasterwork, concrete, brickwork and asbestos surfaces. The paste is bound with a stable acrylic medium. Performance Features & Benefits Premium Acrylic Distemper Ease of application Good washability Eye soothing matt finish. NEROLAC BEAUTY ACRYLIC DISTEMPER Product Description Nerolac Beauty Acrylic Distemper is supplied in paste form, and it can be used for the decoration of fully matured plasterwork, concrete, brickwork and asbestos surfaces. The paste is bound with a stable acrylic medium. Performance Features & Benefits Economical Distemper Ease of application Good washability Eye soothing matt finish.

26

NEROLAC BEAUTY OIL BOUND DISTEMPER Product Description Nerolac Beauty Oil Bound Distemper is supplied in paste form and it can be used for the protection and decoration of fully matured plasterwork, concrete, rickwork and asbestos surfaces. The paste is bound with a stable oil emulsion medium. Performance Features & Benefits Ease of application. Good wash ability Eye soothing matt finish.

Solvent Based Paints

(I) Nerolac Pearls Lustre Finish

NEROLAC PEARLS LUSTRE FINISH Brand Name Nerolac Pearls Lustre finish is a Special Interior Wall paint that captures the magic glow of pearls and the intrinsic resilience of the shell. Thus, this paint very rightly stands for "Ornamentation for walls". This is a special product for interior use, developed by incorporating selected pacifying pigments dispersed in a specially formulated medium. Performance Features & Benefits Silky finish with pearly sheen Excellent stain resistance Very good washability Good applicability Tough and hard film.

ENAMEL

27

NEROLAC SYNTHETIC ENAMEL Product Description Nerolac Synthetic Enamel is a time tested and proven, high quality alkyd based enamel incorporated with best quality opacifying and light fast pigments. Performance Features & Benefits Excellent Water Repellency Good Stain Resistance Excellent flow characteristics to form smooth and uniform finish Excellent Hardness and Durability Excellent Gloss. NEROLAC SATIN ENAMEL Product Description Nerolac Satin Enamel is specially formulated to give an excellent smooth finish resembling the smoothness of satin to masonry, wood and metal surfaces. It can be easily cleaned to give new look to the surface. Performance Features & Benefits Very smooth satin like appearance Good wash ability Very good flow and brush ability Hard durable film. NEROLAC IMPRESSION HI-PERFORMANCE ENAMEL Product Description Nerolac Impression Hi-Performance Enamel is a specially designed coating having
28

a judicious blend of high quality resin & light fast pigments. It is recommended for suitably primed interior & exterior wooden, masonry and metal surfaces. Performance Features & Benefits Super sleek and shiny finish with special anti-fungal formula to Provide protection from fungus. Excellent gloss and gloss retention. Excellent colour and colour retention Excellent flow characteristics to form smooth and uniform finish Excellent durability Up to 30% more coverage than popular enamels.

FLAT OIL
NEROLAC SYNTHETIC FLAT PAINT INTERIOR Description: Nerolac Synthetic Flat Paint Interior is a ready to use paint for wall & ceilings incorporating high opacity pigments dispersed in a synthetic resin medium. This product can be blended with Nerolac Synthetic Enamel in various proportions to obtain different sheen levels as desired. Properties: Nerolac Synthetic Flat Paint Interior can be easily applied on interior walls which when dried gives a pleasant velvet matt finish. The dried film provides a very hard wearing surface. It can be regularly cleansed without detriment to its appearance. The matt finish is useful in minimizing the uneven appearance of ceiling & wall surfaces. It is best suited for decoration of ceiling & wall surfaces where a matt finish combined with long-term durability is an essential requirement. Packing: The choice of packs that are offered to the consumer are 20 litre drums, 4 litre & 1 litre tins.

Exterior
NEROLAC IMPRESSION EXCEL ANTI PEEL ACRYLIC EXTERIOR PAINT Product Description Nerolac Impression Excel Anti Peel Acrylic Exterior Paint is premium water based, high performance, long lasting exterior paint, formulated to suit the extreme tropical conditions of
29

high rainfall, humidity and heat. The product is based on 100% Acrylic resin and hence it forms a tough and flexible protective film, with an excellent bonding to the substrate, which prevents peeling off or cracking for years together. Nerolac Impression Excel Anti Peel Acrylic Exterior Paint contains a unique combination of surface protectants, which are released slowly over a long period of time. This actively helps not only to prevent the fungal and algae growth, but also, ensures constant surface activity against these irritants for a long period. Performance Features & Benefits Excellent out-door durability Very good colour retention Faster drying Smooth & Matt to Slight Sheen finish Excellent resistance to fungal and algae growth Easy to apply and maintain Superior washability & scrub resistance Very wide range of beautiful colours Very good coverage thus good value for money. NEROLAC IMPRESSIONS EXCEL TOTAL ALL IN ONE ACRYLIC EXTERIOR EMULSION Product Description Nerolac Impressions Excel Total All In One Acrylic Exterior Emulsion is high performance premium water based, long lasting exterior paint, with UPF (Ultimate Paint Formula). It is formulated to suit the extreme tropical conditions of high rainfall, humidity and heat. The product is based on 100% Acrylic resin and hence it forms a tough and flexible protective film, with an excellent bonding to the substrate, which prevents peeling off or cracking for years together. It contains special type of emulsion which gives Excellent Dirtpickup Resistance and Excellent Sheen. 1`All In One Acrylic Exterior Emulsion contains a unique combination of surface protectants, which are

30

released slowly over a long period of time. This actively helps not only to prevent the fungal and algae growth, but also, ensures constant surface activity against these irritants for a long period. It also offers a 7 year warranty* Performance Features & Benefits Excellent Dirt Pick up Resistance Excellent resistance to fungal and algae growth 7 year warranty* Excellent out-door durability Very good colour retention Smooth & High Sheen finish Easy to apply and maintain Superior washability & scrub resistance Very wide range of beautiful colours Very good coverage thus good value for money. NEROLAC SURAKSHA ADVANCED PLASTIC EXTERIOR PAINT Product Description Nerolac Suraksha Advanced Plastic Exterior Paint is an economical water thinnable coatings, specially designed for application on exterior walls in dry or moderatey humid climatic conditons. It has good Washability, Anti-Algal & Anti Fungal properties. Performance Features & Benefits Economical water thinnable coating Better outdoor durability Smooth and pleasing finish with Sheen Performance much superior to cement paint No need of curing. NEROLAC SURAKSHA PLASTIC EXTERIOR PAINT Product Description

31

Nerolac Suraksha Plastic Exterior Paint is an economical water thinnable coatings, specially designed for application on exterior walls in dry or moderately humid climatic conditons. Nerolac 'Suraksha' is much superior to normal cement paint coatings in respect to exterior durability, finish, washability and resistance to fungus / algae. Performance Features & Benefits Economical water thinnable coating Better outdoor durability Smooth and pleasing finish Performance much superior to cement paint No need of curing.

TEXTURED
NEROTEX MATT DECORATIVE AND PROTECTIVE EXTERIOR FINISH Product Description Nerotex matt wall finish is a water-based product that gives a high performance, textured finish coating. It is specially formulated by using Light fast pigments, special type thermoplastic resin medium, fine and tough aggregates like inert silica, unique additives to resist fungus, algae and mould growth. It protects the exterior surfaces from rain, sun, dust. Performance Features & Benefits Very good exterior durability Matt and textured finish Good resistance to fungus, algae and moulds Good flexibility and adhesion Good wash ability

CEMENT
NEROCEM WITH TITANIUM+ Product Description
32

Nerocem with Titanium + is available in powder form. It is an economical exterior product specially formulated by using best quality white cement and other ingredients to get an economical exterior product. It is useful for the protection and decoration of the surfaces. Performance Features & Benefits Easily mixable with water Superior water repellency No cracking, flaking or peel off Excellent hiding power Ease of application by brushing. NEROLAC IMPRESSION EVER LAST SELF CLEANING NEROLAC IMPRESSION EVERLAST SELF CLEANING Product Description Nerolac Everlast with pliolite is a specially designed solvent based exterior coating having superior properties with respect to protection of masonry surfaces from aggressive environmental conditions. It is formulated by using ideal combination of true pigments and special type of extenders, dispersed in a balanced combination of different grades of Styrene Acrylate Resins and plasticized with ultra violet stabilized grade of plasticizer. Performance Features & Benefits Excellent durability Excellent adhesion to masonry surfaces Very good alkali resistance Unique breathable film properties Self cleaning characterstics Very good resistance to mould growth Can be applied on freshly constructed masonry surfaces. (2) Woods

33

(I) 1K PU Variants - Gloss, Matt Type of Coat - Top Coat Features - Good Gloss, Easy to Use, Good Value for Money Usage - Wood, Veneer (II) Mel'mine Variants - Gloss, Matt, Thinner Type of Coat - Top Coat Features - Excellent Finish, Quick Drying, Compatible to all base coats, Non Yellowing Usage - Wood, Veneer, MDF (III) 2K PU Variants - Gloss, Matt, Sealer, Thinner Type of Coat - Top Coat (IV) PU Interior + Variants - Gloss, Matt Type of Coat - Top Coat (V) Multisealer Variants - NA Type of Coat - Base Coat (VI) Water Clear Lacquer Variants - NA (VII) Wood Stains Variants - NA Type of Coat - Color
34

(VIII) NC Sanding Sealer Variants - NA Type of Coat - Base Coat Features - White & opaque in appearance, Quick Drying (IX) NC Wood Filler Variants - NA Type of Coat - Base Coat Usage - Wood, Veneer, MDF (X) NC Thinner Variant - NA Type of Coat - Thinner Features - Compatible with NC & Melamine based products (3) Metals NEROLAC IMPRESSION HI-PERFORMANCE ENAMEL Product Description Nerolac Impression Hi-Performance Enamel is a specially designed coating having a judicious blend of high quality resin & light fast pigments. It is recommended for suitably primed interior & exterior wooden, masonry and metal surfaces. Performance Features & Benefits Super sleek and shiny finish with special anti-fungal formula to provide protection from fungus. Excellent gloss and gloss retention. Excellent colour and colour retention Excellent flow characteristics to form smooth and uniform finish Excellent durability
35

 Up to 30% more coverage than popular enamels. NEROLAC SATIN ENAMEL Product Description Nerolac Satin Enamel is specially formulated to give an excellent smooth finish resembling the smoothness of satin to masonry, wood and metal surfaces. It can be easily cleaned to give new look to the surface. Performance Features & Benefits Very smooth satin like appearance Good washability Very good flow and brushability Hard durable film. NEROLAC SYNTHETIC ENAMEL Product Description Nerolac Synthetic Enamel is a time tested and proven, high quality alkyd based enamel incorporated with best quality opacifying and light fast pigments. Performance Features & Benefits Excellent Water Repellency Good Stain Resistance Excellent flow characteristics to form smooth and uniform finish Excellent Hardness and Durability Excellent Gloss.

INDUSTRIAL PAINTS
AUTOMOTIVE COATINGS Kansai Nerolac is the Market Leader in the automotive coating segment in India with a market share of over 60% with global technology acquired from Kansai Paint Co. Ltd, Japan. Kansai
36

Nerolac offers the latest technology in automotive painting systems to the Indian automotive industry. Automotive Coatings of Kansai Nerolac have been tested and certified by global automotive manufacturers who have set up base in India, like: Suzuki Motors Honda Motors Toyota Motors Ford Motor Company General Motors Corporation IVECO Motors Peugeot Through its various strategic collaborations, Kansai Nerolac offers a total painting system to auto makers in India with a range of products, starting from Pretreatment Chemicals, Electro Deposition Primers, Intermediate Coats/primer Surfacers, Solid & Metallic Top Coats, Clear Coats Touch-up Paints. The product range is backed up by a strong technical service network of experts placed at customers end, training programs, VA/ VE activities in co-ordination with customers resulting in ultimate delivery of optimized painting solutions. Kansai Nerolac has tie-up with the global players for product range offered to automotive and industrial customers. Kansai Nerolac has entered into collaboration with the following players for specific product range: Company o Product Category o Kansai Paint Co., Japan o ED Primers, Automotive & Industrial Coatings o Nihon Parkerizing, Japan o Pre-Treatment Chemicals o Oshima Kogyo, Japan o Heat Resisting paints
37

o Ameron, USA o High Performance Coatings Product Range: PRETREATMENT (PT) CHEMICALS Degreasing chemicals - High Temp. / Low Temp. De-rusting chemicals Phosphating Chemicals - Di-cationic and Tri-cationic Activation and Passivation chemicals Surface Conditioners Pretreatment Chemicals for plastics

ELECTRO DEPOSITION (ED) PRIMER S Polybutadiene Resin Based Anodic Electrodeposition Primer Epoxy Resin Based Cathodic Electrodeposition Primer Acrylic Resin Based Cathodic Electrodeposition Primer INTERMEDIATE COATS / PRIMER SURFACERS Conventional Primers, based on - Alkyd-Amino Epoxy Polyester amino Polyurethane The Intermediate Coats are available in White, Light Grey, Dark Grey, Red, Blue and other specific colours as required by OE manufacturers. Top Coats
Solid Colours, based on -

Alkyd-Amino
38

TSA Polyester amino Polyurethane Metallic / Mica, based on Polyester Thermo-setting Acrylic Polyurethane Clear Coats Acrylic amino 2K acrylic urethane Alkyd-Amino Polyester / Acrylic Silane based Mar Resistant

Touch-Up Paint
Nitro-cellulose Acrylic based paint Quick Drying Acrylated based paint Polyrethane based paint

The entire range of products from Primers to Top Coats are available as per customers' specific colour/performance need. General Industrial Coatings The paint manufacturing industry is moving ahead by leaps and bounds, and setting the momentum isKansai Nerolac Paintss. A pioneering R&D, ensures we manufacture a wide spectrum of paints that change the face of the industry in India. Our product spectrum offers a comprehensive coating system starting from P.T. Chemicals, Primers, Top Coats & Lacquers, Coil Coats, Heat Resistant Paints, Metal decoration coating, etc.
39

High Performance It is amazing how often the havoc wreaked by the ravages of corrosion goes unnoticed, even though rough estimates put the corrosion losses in India at a whopping Rs. 4000 crores a year! Powder Coating POLYCOAT POWDERS LTD. Polycoat Powders Ltd., is an associate company of M/s.Kansai Nerolac Paints s Ltd., occupying the No.1 position in the powder coating segment in India. Polycoat Powders Ltd. is an ISO-9001 certified company and is engaged in the manufacture of Thermosetting Powder Coatings since 1984. The powders are manufactured in technical collaboration with Kansai Paints - Japan which is among the top 10 Coating companies in the world. The manufacturing facilities for Powder Coating are at Lote Parshuram in Ratnagiri district, Maharashtra & at Bawal, Haryana.

CHAPTER 3 COMPETITORS AND STRATEGIES

MAJOR COMPETITORS:-

40

MAJOR COMPETITOR IN INDIA: ASIAN PAINTS Asian Paints is India's largest paint company and the third largest paint company in Asia today, with a turnover of Rs 30.2 billion (around USD 680 million). The company has an enviable reputation in the corporate world for professionalism, fast track growth, and building shareholder equity. Asian Paints operates in 21 countries and has 29 paint manufacturing facilities in the world servicing consumers in over 65 countries. Asian Paints is a great marketing success in a branded consumer product business. The company succeeded where others failed in three areas: First, it understood the requirements of the Indian paints market better than the MNCs which did not bother to respond to local consumer needs. It was the first to introduce small pack sizes, a

41

variety of shades and a wide range of paint types (enamels, distempers, emulsions) to suit different pockets. Thus, in the 1960s, the company came out with plaster distemper, Tractor, to suit the needs of the mass market for a product that was much cheaper than costly emulsions but much better than the widely used whitewash and crude powder distempers. This opened up a huge market and today distemper accounts for 25% of the decoratives market in volumes and 15% in value. And as recently as in 1992, the company introduced a synthetic distemper, branded Utsav, aimed at the same rural and low income urban markets. Secondly, in the highly competitive market emulsions segment, the company introduced as many as 151 shades in its Apcolite range when the competition was offering a maximum of 40 odd shades. The strategy paid off and Asian Paints today commands a 40% share in this segment. It set up an extensive national distribution network to tap demand in smaller towns. Today it has direct dealers in 3,200 towns and 10,000 stockists. Investments were also made in computer technology to ensure up-to-date information interface between the marketing and production sides of the business. And finally, the company has displayed considerable savvy in its advertising campaigns, dealer relations, point of sale publicity and product demonstrations to consolidate and expand markets. In fact, the company has played a pioneering role in expanding the Indian paints market by identifying high demand potential areas and then tapping them to maximum effect.

42

BERGER PAINTS: Berger Paints is the culmination of over seven-decade process of evolution and growth that began in 1923. Its growth has been closely linked with the business and industrial development of modern India. The performance of this company is anchored today in a wide variety of Decorative and Industrial paints which continue to gain an increasing share of the highly competitive Indian paint market. Being an ISO 9001 company its quality products have attained instant and worldwide recognition, and continues to meet quality requirements that are demanded today even in the domestic market. The Country's third largest paint manufacturer, with its Headquarters in Kolkata, Berger controls a distribution network comprising of 66 stock points and approximately 10,000 dealers, spread across the country. BPIL has technical tie-ups with Herberts, a subsidiary of the German pharmaceutical major Hoechst for automotive paints, Tendor NV of Holland for powder coatings and Valspar Corporation, USA for heavy duty coatings. The company is particularly active in the powder coating segment and is a supplier to most OEMs in the white good segment. With its thrust shifting to industrial coatings, the company is expanding its powder coating capacity from 840 metric tons to 1,840 metric tons at its existing plant. Recently, it introduced Color Bank, a computerized mixer tinting machine in technical collaboration with Ital Tinto of Italy. Special software, Tintovision installed in the Color Bank gives the customers a choice of more than 5,000 shades and can even produce the colors offered by the companys competitors. Another achievement of Berger is the setting up of Berger Prolinks. Prolinks is Berger Paints' response to a market environment that is increasingly driven by technology and calibrated by expertise. Prolinks is aimed at placing the initiative in the hands of builders, architects and designers to enable them to directly source innovative products and services. The team is entrusted with maintaining a seamless interface between paint specifiers and Berger Paints. The objective is to provide specifiers with a complete basis for recommending products and processes - databases, technical services, color consultancy, site inspection, etc. Prolinks experts ensure specific solutions to specific problems, whether it is a particular shade that needs development, special climatic factors to be provided for, or application factors that have to be maintained. From know-how to legwork, the Prolinks team delivers total support.
43

ICI INDIA: ICI India was the subsidiary of the $15bn 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. ICI (India) is ranked fourth in the paint business, after Asian Paints, Goodlass Nerolac Paints and Berger Paints. Unlike the other paint companies, ICI (India) was a diversified unit and paint constituted 43% of its net sales. It identified paints as a thrust area and was aggressively moving to improve its position. The company invested $11 million in a new decorative paints plant near Bombay and constructed a $16.7 million plant for industrial paints near Chandigarh in North India. In order to increase its presence in the paints market, ICIs growth plan is to beef up its distribution network, widen the purview of specialty products, access newer technologies through joint ventures and of course, targetting the urban and semi-urban markets by introducing more products in the lower and middle segment of the paints market. In order to be amongst the top two players in the industry, the company is firming up plans to aggressively market its products in the country.

44

The Gliddens brand is being positioned in the middle segment to supplement Maxilite in the mass-segment and Dulux in the premium segment. In response to Jenson & Nicholsons Instacolor, ICI launched Color Solutions which can be used for both exteriors and interiors. This comprises a menu driven, user friendly touch color screen on a computer that helps consumers visualize as many as 6,000 shades on house structures resembling their homes.

MARKET SHARE IN INDIA

Company Name ASIAN PAINTS KANSAI NEROLAC ICI BERGER OTHRS Market Share 49.89% 16.78% 11.03% 16.47% 5.83% Sales(Cr.) 5041.87 1664.56 1114.87 1695.77 588.01

MARKETING MIX
45

PRODUCTS
Paints can be generally divided into decorative paints and industrial paints. Industrial paints consist of the automotive category also. Decorative paints can be further divided into interior and exterior wall paints, wood and metal enamels. Each of these products has a range of products varying from the premium segment to the economy segment. Apart from these there a certain speciality paints produced by these brands which are not produced by all the brands and cannot be categorized. Industrial segment All the paint brands produce industrial paints like epoxy based paints, metal primers, polyurethane coatings, etc. In the Indian market Kansai Nerolac paints is the leader in this segment. Decorative Paint All the paint brands produce industrial paints like Emulsion, Distemper, Cement, Enamel etc. In the Indian market Asian paints is the leader in this segment.

PRICE
46

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 specialty 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 etroproducts, 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.

DISTRIBUTION NETWORK
Kansai Naerloc paint in 24 State in India and 68 sales Depots.The distribution system is taken care by area sales managers and executives. The executives keep canvassing the market and meeting the dealers to get the orders. Asian paints has around 12000 dealers who are catered to by the sales xecutives. 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. The The sales executives are also responsible for the collection of outstandings. Generally paint companies allow a maximum outstanding of 2-3 lakhs for 45 days. Other jobs of the sales team consist of grievance redressal and customer feedback.

47

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 themselves to the intermediaries.

SWOT ANALYSIS
STRENGTH:
Well Establish Brand: Nerolac Paints is 90 year old brand. Kansai Nerolac is at third Position in the world.

Quality driven: While its competitors concentrate more on variety and mass production and a lot of other different strategies, the company is essentially a quality centric company. This has helped the company grow and sustain its brands

48

First Mover Advantage Nerolac was started in 1920. So company has first mover advantage. Company was started LEAD free products. Innovation in Research and Develpoment "Compete through Innovation" The keystone of kansai Nerolac's success has been its investment in technology and the importance given to Research and Development. The company has, over the years, set up excellent facilities for developmental research, improving its manufacturing processes and continuously innovating on its products. People:Nerolac is a company, which considers its people as one of its strengths. Nerolac has always valued its employees. Recruitment thus becomes very important activity at Nerolac. Employees that add value to the organization are suitably awarded & rewarded to keep the fire live & going.

WEAKNESS:
Weak Distribution Company has less dealer network in compare to competitor . Company has around 12000 dealer in India. Products Awareness Kansai Nerolac products Brand awareness is very less.

OPPORTUNITY:
Greater Penetration One of the biggest opportunities KNP has in India is to become the positioned leader in all parts of the country. At present, there is very less penetration of KNP brands in the rural market. KNP could reap great profits coming from the rural areas as well.
49

Real Estate Boom The real estate boom which is gaining momentum by the day, is a great boon to the entire paint industry. This would actually be a good opportunity for all of the industry to cash in on their profits.

THREAT:
Loss Of Loyal Customers Because KNP is one of the oldest and one of the most bankable brands in the market today, it has a lot of demand as well as appeal among consumers. With a lot of innovations and a lot of movement in the market, the loyal consumer might just get inquisitive and opt or a competitor brand. A study shows that most loyal brand users opt for new brands because boredom sets in and change seems to be a great option. Possibility of Running out of Fashion New trends keep coming up and they have a lot of impact on the consumption patterns of people. Moods and a lot of other factors also are taken into consideration when it comes to choosing consumer goods. With so many different innovations and finishes launching in the industry, a consumer is very prone to get deviated from his original choice. This deviation influences the consumer to try out a new product which has an element of surprise in it as well.

50

CHAPTER-4 RESEARCH METHODOLOGY

Research methodology is used to search answers of the research questions. An attempt has been made to describe the nature of the builders of jaipur city by the study of the samples. SAMPLE PLAN To know the position & perception of NEROLAC PAINTS in the Jaipur region regarding sales and brand equity in comparison with the other brands on the basis of attributes of paint has been done. For this purpose, opinion of contractors and builders has been taken. This might be helpful to draw the right picture about the market scenario. This was convenient in nature because I would have to account only those people who actually require or purchase paint. The survey is conducted with the help of questionnaire method and survey is conducted in the Jaipur region. Survey of BUILDERS has been done for the analysis. Sample size: 50 Data Collection Every type of research requires two types of data to be collected to reach up to any conclusion. Primary Data are those data, which are directly obtained from people by approaching them individually; primary data are generated when the researcher employing mail questionnaire, telephone surveys, personal interviews, observations and investigates a particular problem at hand. For this project primary data was collected from contractors and builders by using survey method. Data collection from respondents was carried out with the help of a structured interview schedule. In this method data was collected from respondents through questionnaires. I made a survey based on the questionnaire. The mode of survey was directly contacting the people and recording their response based on well-defined questions and also through telephone. Secondary Data, on the other hand, includes those data, which are collected in the past for other research work and are being used in current project work. Secondary Data, such as procedures of marketing for paint, marketing conditions, brief details of NEROLAC paint and other competitors, price, quality, and other strategy and planning, specification in relation to
51

other paint companies, all other information which can be useful to complete this project, was collected from different resources.

SOURCES OF DATA

Primary Data

Secondary Data

Questionnaire Observation Interviews

Newsletter Journals Magazines Newspapers Books Websites

OBJECTIVE OF STUDY: To find out Market size Trends Brand Perception Band Awarenesss of Paint Industry and Potential Market for Kansai Nerolac in various upcoming building projects in jaipur. To determine what aspects do people deem important in selecting a particular brand of paint. It was done with the help of questioner, survey and current information of the company and taking into consideration the current market scenario of the paint industry at Jaipur.

52

SCOPE OF THE STUDY The research had been conducted in Jaipur in the month May-June 2010. We contacted builders and contractors in different areas of Jaipur city for fieldwork. The research not only partially fulfilled the requirement of MBA degree program but also learned a lot in the field of marketing research. This project gives an opportunity of implementing his theoretical knowledge of management curriculum in practical life and will learn a lot from practical experiences during this research. Type of Research exploratory Type of Data Primary Method of Data collection Survey Research Instrument - Structured Schedule Sampling Method non parametric Sample Size 50 Sampling Unit Builders and contractors

LIMITATIONS OF THE STUDY: The successes of any research work depend on the response of the respondent. But sometime the response is not sufficient due to these following reasons Respondents generally have less time to respond. Sometimes they are confusing in their response due to lack of knowledge. Some persons are not willing to disclose the truth. Their attitude towards people representing a company. The time constraint faced in the project might have affected the comprehensiveness of its findings.

53

CHAPTER-5 OBSERVATION & ANALYSIS

Q-1 Which paint brand are you using in your projects?

INFERENCE: On Asking the Question We Recognized That Asian paints Is Holding a Quite More Share than Nerolac paint . Reason behind Asian Paints is more focusing on Brand

54

building( Advertisement). First brand name come that is Asian Paints. Or We Can Say That the Closest Competitor Of Nerolac paint (18%) Is Berger paint with 18% Consumption Share.

Q-2 Who does influence you to buy that particular brand?

INFERENCE: On the whole, it was noticed that in 50% of the cases, buider (owner)decide to buy a particular brand of paint by their self knowledge . In about 26%% of the cases, people were influenced by architect. painter influenced people to about 25%. No one were influenced by dealers.

55

INFERENCE: Interpretation drawn from the pie chart states that 78% of people take quality as rank 1 for purchasing decision. 16% people gives rank 2 to quality and 6 % gives rank 3. So it is very clear from the above interpretation that most of the people mainly focus on quality while purchasing paint.

56

INFERENCE: Interpretation drawn from the pie chart states that 8% of people take competitive rates as rank 1 for purchasing decision. 46% people gives rank 2 to competitive rates,10% gives rank 3 and 18-18% of people give rank4 & rank5. So it is very clear from the above interpretation that the competitive rates is also very important parameter for customers purchasing decision.most of the people majorly focus on competitive rates after quality while purchasing paint.

57

INFERENCE: Interpretation drawn from the pie chart states that 6% of people gave rank 1 to the brand name for purchasing decision. 16% people gives rank 2 to brand name and 38% gives rank 3. So it is very clear from the above interpretation that most of the people take brand name as a third preference while purchasing paint.

INFERENCE:

58

Interpretation drawn from the pie chart states that 8% of people take product performance as rank1 for purchasing decision. 10% people gives rank 2 to performance,24% gives rank 3 and 40% & 18% of people give rank4 & rank5 respectively. So it is very clear from the above interpretation that the most of the people gives rank4 to product performance while purchasing paint.

INFERENCE: From the above graph it can be seen that people while buying give coverage as a last option.

l
59

INFERENCE: The interpretation drawn from the above pie chart states that 48% of the customers preferred Asian Paints when they choose paints according to quality. While 32% of the customers preferred nerolac Paints. And 16% of the customers choose brger Paints for painting. Only 4% of the customers preferred ICI Paints. It means the quality of asian paints is very good and nerolac is biggest competitor of asian paints with quality concern.

INFERENCE: The interpretation drawn from the above pie chart states that 64% of the customers preferred Asian Paints when they choose paints according to product performance. While 14% of the customers preferred nerolac Paints. And 12% of the customers choose brger Paints for painting. Only 10% of the customers preferred ICI Paints. It means the product performance of asian paints is very good and nerolac and berger is biggest competitor of asian paints.

60

INFERENCE: The interpretation drawn from the above pie chart states that 48% of the customers preferred Asian Paints when they choose paints according to competitive rates. While 22% of the customers preferred nerolac Paints. And 20% of the customers choose brger Paints for painting. Only 10% of the customers preferred ICI Paints. .

61

INFERENCE: The interpretation drawn from the above pie chart states that 56% of the customers preferred Asian Paints when they choose paints according to brand name. While 22% of the customers preferred berger Paints. And 10% of the customers choose nerolac Paints for painting. 10% of the customers preferred ICI Paints. It means nerolac should do brand building by increasing advertisement. .

62

INFERENCE: The interpretation drawn from the above pie chart states that 78% of the customers preferred Asian Paints when they choose paints according to coverage. While 8% of the customers preferred berger Paints. And 8% of the customers choose nerolac Paints for painting. 4% of the customers preferred ICI Paints. Q- following attributes according to their importance in your purchase decision for PAINT.

63

Combined analysis of purchasing decision :from above graphs it can be seen that people are very much concern about 64

quality and easily availability. Packaging type of the product is also affect the purchasing decision of the customer. Now a days paint companies are organizing painters loyalty program but it has been seen that it is not giving much of the benefits to the company. Because only 2% people gives it highly importance, 8% people gives moderate importance out of 50 samples.

CHAPTER-6 CONCLUSION AND RECOMMENDATIONS

Conclusions followed by recommendations form the basis of the report more solid. The conclusion proves the analysis that is carried out in the report and on the basis of these conclusions, recommendations are given. In the report under study, it was found through the survey that Kansai Nerolac Paints, is lacking popularity due to the less cons traction on the advertising policy.. In the survey and analysis it was found that the Buying Behavior of the customers depends on variety of factors like Cost, Quality, Durability, Color Varity and some other factors.

Advertisements
The company should also concentrate upon the Advertisement strategies and should come up with the innovative ads. Brand recall amongst the Consumer Categories is low because of less frequency of the TV advertisements. Has to identify some of the highly dense areas of the city so that the company can use the Bill Boards. Traffic signals would be the best suitable location for the Company Advertisements. The construction industry is in boom. In order to tap the potential market, the Company can advertise in a magazine named Builders Grid. This will help in showcasing the products of the magazine. This can add an extra spice to sales.

65

Place
Kansai Nerolac has less dealer network in comparison to Asian Paints. So increasing the dealer network or market presence increase the availability of the product in the market that will increase market share also.

Human Resource
The Company should concentrate on human Resources. Company should increase Number of sales officer.

Product
Company should focus on their product line. Company has less product line in compair to competitor. Ex. Texture Paint.

Price
Company should focus on their Price. For Example Nerolac Impression 24 Carat Price higher than their competitor Product.

66

ANNEXURES

QUESTIONNAIRE

Respected Sir/Madam,
To explore the potential of Narolac Products among upcoming projects of the Jaipur city by various builders. This is a questionnaire intended to study the penetration of NEROLAC PAINTS PRODUCT in the upcoming projects in JAIPUR by various builders and the different factors that play an important role in taking purchasing decision.

67

TYPE OF PROJECT

RESIDENCIAL

COMMERCIAL

NAME OF PROJECT

BUILDER NAME

CONTACT NO.

LOCATION

Which paint brand are you using in your projects? (a) Nerolac (b) Asian paints (c) Berger (d) ICI

(e) Other(Please specify)

Who does influence you to buy that particular brand? (a) Painter (b) Architect (c) Dealer (d) Other

Do Ranking of following parameters for your choice of paint (1 to 4) . (a) Quality (b)Brand Name (c) Competitive Rates (d)Product Performance (e) coverage

1)

5)
68

2) 3) 4) Do Ranking of following companies on the basis of coverage of their products? (a) Asian paint (b) Nerolac (c) Berger (d) ICI (e) other 1) 2) 3) 4) 5) Do Ranking of following companies on the basis of quality of their products? (b) Asian paint (b) Nerolac (c) Berger (d) ICI (e) other 1) 2) 3) 4) 5)

69

Do Ranking of following companies on the basis of product performance of their products? (c) Asian paint (b) Nerolac (c) Berger (d) ICI (e) other

1) 2) 3) 4) 5)

Do Ranking of following companies on the basis of Competitive rates of their products? (d) Asian paint (b) Nerolac (c) Berger (d) ICI (e) other

1) 2) 3) 4) 5)

Do Ranking of following companies on the basis of Brand Name of their products? (e) Asian paint (b) Nerolac (c) Berger (d) ICI (e) other

1) 2) 3) 4) 5)

70

Tick the following attributes according to their importance in your purchase decision for PAINT.
Attributes Highly important Moderately important Average important Very less important Not at all important

Quality Brand Image

Packaging Type Total price

Advertiseme nt Content

Gift by Trader/comp any Easily availability

Advertiseme nts Media

Celebrity endorsement

Painter loyalty program i.e. RRK, Paint Merchant, Masterstroke etc

71

Thank you for your kind cooperation, valuable inputs and time.

BIBLIOGRAPHY:
www.google.com www.nerolacpaints.com www.marketing teachers.com

72