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PRESENTED

TO:

PROF. AITAZAZ KHURSHID

PRESENTED BY:
SYEDA FARWA BATOOL ASAD JAVED (082150) (082155)

DEMOGRAPHICS OF PAKISTAN
Pakistan is small country with limited resources. But the population of Pakistan is 180,000,000. Pakistan has 6th number in population in world.

POPULATION AND GROWTH
• • • • •

Population: 180,000,000 (2008 est.) Growth rate: 1.828% (2007 est.) Birth rate: 27.74 births/1,000 population (2007 est.) Death rate: 8 deaths/1,000 population (2007 est.) Net migration rate: -1.24 migrant(s)/1,000 populations (2007 est.)

AGE STRUCTURE
• • •

0-14 Years: 40% (Male 33,293,428; Female 31,434,314) 15-64 Years: 56.9% (Male 48,214,298; Female 46,062,933) 65 Years And Over: 4.1% (Male 3,256,065; Female 3,542,522) (2007 Est.) Gender Ratios Sex Ratio At Birth: 1.05 Male(S)/Female Under 15 Years: 1.06 Male(S)/Female 15-64 Years: 1.05 Male(S)/Female 65 Years And Over: 0.92 Male(S)/Female Total Population: 1.05 Male(S)/Female (2007 Est.)

• • • • •

LITERACY
Finition: over the age of 15 and can read and write.
• • • • • • • • • •

Total population: 54% (2004 est.) Male:60% Female: 42% Muslims: 174,500,000 Hindus: 2,500,000 Christians: 2,500,000 Ahmadis: over 400,000 Bahá'ís: 30,000 Sikhs: 20,000 Buddhist: 20,000

UNEMPLOYMENT RATE:
It is the percentage of persons unemployed (those looking for work and temporarily laid off) to the total economically active population

PAINT MARKET ANALYSIS IN PAKISTAN

PAINT INDUSTRY GROWTH/TRENDS YEAR TO YEAR IN

PAINT INDUSTRY GROWTH/TRENDS YEAR TO YEAR IN

S A L E S

MARKET SHARE OF DIFFERENT PAINT COMPANIES IN PAKISTAN
60% 50% 40% 30% 20% 10% 0% ICI PAINTS BERGER MASTER PAINTS SILKY OTHERS ICI PAINTS BERGER MASTER PAINTS SILKY OTHERS

1 25% 12% 3% 1% 49%

MARKET TRENDS OF INDUSTRY
One of the greatest opportunities for paints producer is that now a day's people are very much conscious about the quality of the paints. They are aware of the fact that good quality paint is long lasting for their houses and businesses. Paints producers are also investing heavy in advertisement. As a result customers are getting aware of the importance of paint and their trends are moving from traditional white wash (KALI) to quality paints products. As producer companies of paints will more focus on the TQM, it will increase the demand of products. There is also a great opportunity for paint industry; the housing rate in Pakistan is flourishing very rapidly, especially after the Earth Quake in Pakistan. Paint industry can target these customers.

MARKET GROWTH OF INDUSTRY
There are huge opportunities for the growth of paint industry in Pakistan. And this industry also has shown very good results in last decades. But due to economical recessions and bad political condition of Pakistan this business has declined by the 10%. But after the creation of new government in 2008, this business has able to increase its 1% share. Although decorative business increased market share by 1% and industrial sales also increased because of the very significant decline in the size of the decorative market, the overall reduction in sales volume is 4% as compared to the previous year. However gross margin increased by 6% through improvement in product mix and efficiencies in procurement and manufacturing, which coupled with stringent control over fixed costs resulted in as operating profit improvement of 14.4% over last year to Rs. 262.9 million. The new government has increases the general sales tax from 15% to 16%. This increase can hurt the growth of the paint industry. Recently this industry has increase the 1% share but new government policies can again hurt this industry. The increase in tax, energy crisis in Pakistan and high prices of the decorative paint products are major hurdles in the growth of this industry. But there are still chances to grow. There are almost54, 0000,000 potential customers in Pakistan. There are huge opportunities for paint industry of Pakistan to export the paint products to Middle East and Afghanistan. If government gives incentives to paint industry in export, this can increase its growth; as a result Pakistan will also generate the heavy revenues. Recently new competitors are coming in this industry, which is the sign of the growth of paint industry. According to industry analysts, this tough competition,

high promotion strategies and increasing trend toward paint industry are the clear chances of the high growth in the paint industry .

PEST ANALYSIS OF PAINT INDUSTRY OF PAKISTAN

POLITICAL AND LEGAL ANALYSIS
The Political condition and Government rules and regulations of the country can affect any industry whether that is at introduction, growth, maturity or at decline. The same case is with the paint industry of Pakistan. From the many years the political condition of the country is not very certain. The suicide attacks, the issue of judges, bad law and order condition in northern areas and unstable new government has hurt the paint business very badly. The high costs of the petroleum products, energy crisis and lack of infrastructure are the major hurdles in the growth of this industry. Government will have to focus on this industry because it is generating lots of revenues for the country

ECONOMIC ANALYSIS
Economy has a critical role in fostering the success or creating problems for any organization. Similarly in case of paints industry, this industry is facing instability in the sales and growth from many years. Government has imposed 16% sales tax and heavy duties on imports of raw materials. Paints industry of Pakistan import 75% of its raw materials so import duties have increased the production cost thus decreasing the profit margin. Recessionary conditions continued to prevail as the government pressed on with its efforts to document the economy. The depressed construction industry and the slow trading industry and the slow trading environment resulted in an overall market shrinkage in the decorative business by 10%. Against this back drop the business however has able to increase its market share by 1% through its strong advertising and promotional campaigns and effective after sale service. The industrial business continued to deliver a robust performance driven by penetration of new market segments within the general industry sector.

SOCIETAL ANALYSIS
In recent years paint industry has shown a lot of concern for society. Industry is very conscious about environmental pollution which occurs because of the production of paints. The industry has huge focus on the SH&E. The paint

producers are trying to produce those products which are free from the harm full chemicals.

MAJOR SEGMENTATION VARIABLE FOR TARGET MARKETING OF PARGET PAINTS: GEOGRAPHICALLY:
WORLD, REGION AND COUNTRY:
Asia, Pakistan

DENSITY:
Urban

DEMOGRAPHICALLY:
AGE:
25 and above

GENDER:
Male and Female

FAMILY LIFE CYCLE:
Single, Married, older but children are not the target market

INCOME:
30,000 to onwards

OCCUPATION:
Businessmen, professionals, high ranking managers.

PSYCHO GRAPHICALLY:
SOCIAL CLASS:
Upper middles, Lower uppers and Upper Uppers

LIFESTYLE:
Achievers and strivers but not survivors

PERSONALITY:
Ambitious and Compulsive

BEHAVIORAL:
OCCASIONS:
Regular and special both

BENEFITS:
Quality

USER STATUS:
Potential users, Regular users, first time users

USAGE RATE:
Medium users, Heavy users

LOYALTY STATUS:
Medium, Strong

READINESS STAGE:
Desirous, Interested, Aware

MICROENVIRONMENT:
SUPPLIERS:
Main supply of raw material for the company comes from foreign countries like Japan and Europe. Approximately 70% of total purchases of raw material come from Japan and Europe and 30% supply provide from local.

MARKETING INTERMEDIARIES:
Parget Paints give distributions only to its authorized dealers and distributors.

CONSUMERS:
Households, Painters, interior designers, building contractors are usually the consumers of Parget Paints.

BUSINESS CUSTOMERS:
Parget Paints is supplying paints to some business customers like Pak Suzuki, Pak Hino, Descon, NLC , and KSB.

RESELLERS:
channel. Parget Paints is not selling their paints through resellers

GOVERNMENT:
They have no specific or regular contracts with government but it do execute it occasional order received from Government for military and other Government institutions.

COMPETITORS:
Direct Competitors: I.C.I Paints , Berger Paints, Master, Diamond, Silver Sand, Marvell, Buxluy, Black Horse Gobi etc

Indirect Competitors: Tiles, Wood peeling, Wallpapers, Rockwall, Paint Puree etc.

PUBLICS:

Financial Publics:

Citi Bank, ABN AMRO, Habib Bank, UBL, MCB etc

Media Publics: Mind Share Company in Karachi

MACRO ENVIRONMENT:
DEMOGRAPHIC:
If we see the demography of Parget Paints. Then this fact come most of its customer’s are age of 35-40 years.

TECHNOLOGICAL ENVIRONMENT:
They have installed a plant in the company which purifies all the harmful material from the disposal. Moreover they are also using the latest technology for paint making. They are also using latest technology for advertisement of their product.

NATURAL ENVIRONMENT:
Parget Paints are producing mercury free and lead free paints which are environment friendly.

FACTORS AFFECTING CONSUMER BEHAVIOR:
There are certain external forces that affect consumer’s buying behavior. These factors include cultural, social, personal and psychological. How these factors affect buying behavior of consumer of Parget Paints are described below:

CULTURAL FACTORS:
Cultural factors also affect consumer’s behavior towards Parget Paints. As Parget is suitable only for urban area because the culture of urban area is advanced, and only high income people can afford it, whereas in rural areas, people are either not aware of painting the walls and if they are aware, they prefer to use whitewash.

SOCIAL FACTORS:
Social factors also affect the buying behavior of consumer of Parget Paints. Social factors include groups, family, roles and status. In groups, there are membership groups, reference groups and opinion leaders. Relating this with Parget we can say that for the consumers of Parget paints, the membership group is upper middle and elite class, and the reference group of the customers relating to upper middle class is elite class, so Parget should design its campaigns according to the reference groups of target market .While talking about family, buying behavior for Parget paints mostly depends upon the parents, as the males decide which company of paint they should take, and females are usually involved in choosing among the wide range of colors.