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I nternship Report

Summer 2012












A research to explore customer satisfaction level in perspective of
Berger Breathe Easy Paint, Bangladesh.










Submitted by,
Mishinia Munia Munir I D: 0820229
Submitted to,
Abul Khair J yote









School of Business
Independent University, Bangladesh
September 6th 2012



TABLE OF CONTENTS


LETTER OF TRANSMITAL ……………………….………… (i)
AWKNOWLEGMENT ……………………………………….. (ii)
EXECUTIVE SUMMARY………………………..…………… (iii)
PROBLEM STATEMENT………………………………………(iv)

CHAPTER ONE: UNDERSTANDING OF THE REPORT.1-3
CHAPTER TWO: VARIABLES ……………………….…..…4
CHAPTER THREE: LITERATURE REVIEW ……….......5-7
CHAPTER FOUR: INTRODUCTION TO PRODUCT …8-20
CHAPTER FIVE: METHODOLOGY …………………..21-23
CHAPTER SIX: DATA ANALYSIS………… .........….…24-28
CHAPTER SEVEN: RECOMMENDATION…………….…29
CHAPTER EIGHT: CONCLUSION………………………...30












(i)

Dated: August 26
th
2012



Mr. Abul Khair Jyote
Internship Supervisor
School of Business,
Independent University, Bangladesh.
Baridhara, Dhaka.

Subject: Submission of internship report


Dear Mr. Abul,

I have been advised to prepare the internship report on the level of customer
satisfaction for Berger Breathe Easy for the successful completion of my Internship.
As was
advised, I have successfully completed my report on “Customers satisfaction level
analysis of Berger Breathe Easy”

It gives me immense pleasure to tell you that working on this internship report has
given
me a wide range of exposure. To prepare this report, I have faced extensive one to one
interviews with professionals and customers. It has taught me the value of
patience, and has given me a higher insight on the level of communication in the
practical
world.

This report basically gives an overview of the level of customer satisfaction of the
Berger Breathe Easy users and how different influencing parties can hamper the level
of customer
satisfaction. I also had to make recommendation as to how the existing level of
satisfaction could be improved. This research was done to analysis the market for this
new product which has a very niche market.

It will be a great honor for me if you require me to explain any sort of queries.






Yours Sincerely,
Mishinia Munia Munir
ID- 0820229


(ii)

ACKNOWLEDGEMENTS


All praises are due to Almighty Allah who enabled me to complete this report.
Preparing this report was both exciting and hard work at the same time, it is for the
first
time that I had a real life experience working on an actual company project. I would
like
to express my gratitude to Mr. Sohel Islam, internship supervisor, School of Business,
Independent University, Bangladesh for providing me with the proper guidance and
support. This constant encouragement and supervision throughout the period of this
study have been greatest inducement for me and directly contributed to the
accomplishment of the task.

I worked at an advertising firm Unitrend limited and worked in the account for
Berger. Firstly I would like to thank the head boss of the Berger team Mr. Liton
and I would also like to thank my immediate boss Mrs. Shakila Islam, Brand
Executive, who constantly supervised me during the whole experience. She gave me
time and care in her busy schedule, provided me information that was needed to
complete the report, and to properly guide me throughout my internship period. More
over Mrs. Ratna Halder another Brand Executive member of the team I belonged also
helped me with every aspect to teach me and to help me with anything I needed.
Additionally I would like to thank each of the teams at Unitrend who always gave me
attention whenever I got curious to learn something.
























(iii)

EXECUTIVE SUMMARY


Satisfying customers are the only way to stay competitive in today's marketplace.
The balancing act between what customers want and what the company can provide
must
be optimized in order to maximize company‟s long-term profits. Berger Paints has
done
numerous researches to understand the level of customer satisfaction. They are
already in
a good position in the consumer‟s mind but understanding the customer‟s satisfaction
level, will help the company to exceed the present level of customer satisfaction.

However, no such research has been done to understand the level of customer
satisfaction
level of Breathe Easy Individually.

This study investigates the level of customer satisfaction of Berger Breathe Easy
users,
On assessing the level of customer satisfaction, what marketing tools, like
promotional
efforts and other marketing efforts, are necessary to improve the customer satisfaction
level will be given as recommendation.

This study is based on primary data, as no such previous research has been done
to understand the level of customer satisfaction of Breathe Easy users. The nature of
this
study was a qualitative explorative research, and information was gathered through
extensive one-to-one interviews with respondents. The researcher covered the
geographical base of Dhaka city, and samples were selected on a non-probabilistic
quota
sampling method.

Upon completion of the research analysis, the researchers understood the level of
customer satisfaction of the customers. The level of satisfaction variation wasn‟t
much different. Most users are satisfied with their usage. However, they did show
concern with the pricing of the product. It is a newly arrived niche market product so
everyone is not aware of the product fully yet. But the users are willing to spread
mouth of word after usage. They also are in attempt to conduct different market
promotion to create awarness in the market.








(iv)
Problem Statement:

A research to explore customer satisfaction level in context of Berger Breath Easy.

Berger Paints has done numerous researches to understand the level of customer
satisfaction on their previously existing products. They are already in a good position
in the consumer‟s mind in a general sense and has satisfied potential customers with
different existing product line but understanding the customer‟s satisfaction level on
the upcoming products , will help the company to exceed the present level of
customer satisfaction. However, no detail research is available of Berger Breath Easy
user and I intend to conduct research and jot down any information available on it.

This brand is a premium brand of Berger and has been introduced very recently to the
market. Paint over the years has chemicals on them which are harmful to both the
human and environment but it is a necessity for people‟s life so different brands did
search on it and made it better for the people and the environment. When different
companies in the world are taking the initiative to reduce carbon foot print and work
in saving the environment Berger has not been far behind either. The new series of
premium Brand such as Breathe Easy is the first Odor Free, Low VOC, Anti-Bacterial
& Stain Free interior paint of Bangladesh from Berger Paints.

This is a new product in the market and belongs to a niche market. It hasn‟t yet set its
awareness properly to its target customer. This report is to identify till now how well
is the product doing among its customer. The way potential customer view the
product and how well they are satisfied. The repot sums up the summary of the factors
that determine the satisfaction level of Berger Breathe Easy.

Breathe Easy Feature:

- No distasteful lingering paint smell
- No growth of bacteria & fungus on walls
- No stains of tea-coffee, ink, crayons, sauce & ketchup, hand-prints or shoe-marks
- No environmental hazards
- No delay in reoccupying home after painting
Breathe Easy - Healthy Paint for Your Home






















CHAPTER ONE












Understanding of the Report
Working experience
My background of study at Independent University Bangladesh is marketing in
perspective of that I started my internship at an advertisement firm in the client
service department of Unitrend. Unitrend is an advertisement firm with a well
reputation of being in the business for coming up with big successful campaign.
My job was to a good communicator and deliver proper information for the job to be
done. I worked for Berger and the concentrated product was Berger Breathe Easy.
This report let me an insight of the satisfaction level of the target audience of the
product. Until now much promotional hasn‟t been done for this certain product and so
the report is helpful to understand what variable affects the potential customer more?

Introduction to Unitrend

Consumers and brands: any place between these two is Unitrend‟s forte. Unitrend
seeks to bridge consumers and needs. Indifference and loyalty. Expectations and
surprises.

To make this connection possible, a brand must come out of the realm of awareness to
the arena of experience. Consumers must not only experience the physical product,
but also embrace to the idea that lies at the heart of the brand.

And therefore, Unitrend, in line with the McCann philosophy, has always focused not
on selling brands, but rather on creating demand for them. Because creating demand
makes selling superfluous.

History

1985
Muneer Ahmed Khan, Zulfiqar Ahmed and Partners sets up a four-man
communication agency. They are committed to following modern, advertising
methods and trends. This marks the entry of professional marketers to the
Bangladeshi advertising scene.

1985
Landmark advertising campaign for Philips Bulb declares „Maacher Raja Ilish Ar
Battir Raja Phillips‟ [Hilsa the king of fish and Phillips the king of lights]. Following
launch, national sales jumped by 60 percent. This marks the beginning of demand
creation by Unitrend.

1995
Unitrend formally became affiliated with McCann-Erickson Worldgroup. Portfolio
alignment welcomes brands like Coca-Cola, Reckitt & Coleman into the house. It also
brings in a paradigm shift in terms of organizational culture, consumer understanding,
strategic thinking, creative executions and brand management.

1997
McCann Erickson Worldgroup is formed to meet the changing needs of marketers.
This includes the Weber Group, Torre Lazur Healthcare, Momentum and MRM
Partners.

2000
Unitrend receives the Highest Recognition Award in the McCann System

2001
The trailblazing „Simple Math‟ campaign is developed and launched for Eastern Bank
Limited. The campaign is based on the simple insight that consumers are afraid of
formal transactions at banks.


2003
McCann Worldgroup creates the McCann Demand Chain TM – a revolutionary
model for linking the elements of demand creation. Unitrend wins 3 “Srijon Samman”
awards in Kolkata, India.

2004
Unitrend launches its specialist social and development communication wing,
Unisocial. Clients include UNICEF, FHI, World Bank, SMC and the Bangladesh
chapter of John Hopkins University Center for Communication Programs.

2005
Zulfiqar Ahmed succeeds Muneer Ahmed Khan as CEO and Managing Director,
while the latter assumes the position of Chairman and Creative Chief.









Awards

Sangbad Protidin award


Philips Award

Coke gold-Award Coke Bronze-Award Berger-Silver-Award Philips-Award

McCann Award



McCann-award-small

Firstly the process of the whole service begins with the heart of the firm the client
service who directly communicate to the clients to understand their needs and wants
for a campaign and delivers the best way understandable to the creative for further
work. Client service department is the middle man between the client and the creative
of the firm.

At heart of Unitrend‟s unique capacity to deliver „effective‟ communications – is a
strong, capable strategic planning wing. In simple words, strategic-planning, in the
context of advertising, is the process of prioritizing consumer insights and utilizing
them to generate brand-ideas for long-term sustainability. It is from here that a brand
will be given a firm, evidence-based direction for unique, effective and differentiating
positioning. The planning wing is a vital lifeline between consumer insights and great
creative that contribute towards breaking clutter, creating association and gradually
building powerful brands. Planning functions include development of a brand‟s
proposition, positioning, brand-strategy, marketing-strategy and tactical marketing
solutions planning. In one word, strategic planning is where the blueprint is developed
for building and nurturing a brand from the word „Go‟.


Taking cue from Strategic Planning department‟s recommendations, the creative
department is responsible for developing communication concepts, brand-grids, visual
representations, copywriting and overall creative executions. It is what eventually
reaches the consumers through different media. Functioning under the Creative
Director, the department essentially supervises the development of final creatives for
brands. In short, the creative & copywriting department executes the strategic vision
of a brand.


Unitrend‟s media company is an independent entity with its own offices, set-up and
employees. Using McCann‟s world-standard media-planning software and buying
mechanisms, the media unit ensures the best cost-versus-benefit (CPRP) for clients.
But prime focus is always on achieving highest exposure with segments targeted for
specific brands. The Media department thrives with a diverse combination of people,
skills and capabilities. It embodies expert knowledge about regional and local media
and is often hailed as the best option for consumer-focused media campaigns in
Bangladesh.

Some of their major clients are:
Berger
BSRM Cement
Nestle
Coke


















CHAPTER TWO


















Dependent Variable:

Satisfaction

Independent Variable:

Quality: It‟s a high end level brand and has started operating from 1950 with high
standards and has maintained it over the years

Brand Positioning: In the mind of the potential customer Berger it is the top brand of
Bangladesh and it has been one of the oldest. They held on to loyal customers over
the years (Brand Recognition, Brand image, Brand Identity)

Price: as it maintains to be high quality product the price is at high end for most of its
products

Distribution: Berger has a good disturbing all over Bangladesh with its products.




Dependent variable



























Independent variable


Satisfaction

Distribution

Price

Quality

Brand positioning













CHAPTER THREE

















LITERATURE REVIEW

The conceptual frame work suggests Berger satisfies people with different
elements such as: Quality, Brand Positioning, Price and Availability.

Quality ensures an organizations-wide approach to understanding precisely what
customers need and consistently delivering accurate solutions within budget, on time
and with the minimum loss to society. In here for Breathe Easy is one of the examples
from many of its products Berger has been able to ensure that to the customer. In the
paint market it has above 50% market share at present and has been able to retain that
over the years for ensuring the promised quality to its customer. Berger is the top
brand of Bangladesh and everyone customer or not knows it is a top notch quality
brand.
Relation of customer satisfaction and quality: Customer loyalty is a major strategic
objective and focus in marketing. It has been suggested that brand reputation is a
major driver of customer loyalty, and hence companies seek to increase the equity of
their brands. Quality affects not only customer satisfaction, but also the reputation of
the brand. Thus, both brand reputation and customer satisfaction are important
determinants of customer loyalty. The interaction between these two drivers of
customer loyalty has, however, been neglected in the literature. Present a theoretical
model which integrates quality, brand reputation, customer satisfaction and loyalty.
The model is tested in four industries, covering both business-to-business markets and
private customer markets. The findings suggest that companies should monitor and
improve both customers satisfaction and brand reputation. In situations where the
intrinsic cues of the product or service are ambiguous, brand reputation is the
strongest driver of customer loyalty compared with customer satisfaction. In fact,
when the intrinsic cues are ambiguous, it is found that customer satisfaction
is not driving customer loyalty
Brand positioning is to place a brand where it is clearly distinguishable from
competitors brand on the market. The principal aim is to ensure that the
brand occupies a unique position on the market and that it is endowed with a precisely
defined profile with clear-cut contours. The basic idea underlying this analysis is that
consumers' perceptions of the various brands can be conceived as a multidimensional
space in which individual brand are positioned.
Brand image has been an important concept in consumer behavior research since the
early 1950s
An important aspect of a brand‟s position in a product category is how similar or
different the brand is perceived to be in comparison with other brands in the product
category. For positioning a new brand, especially one that is in some way different
from present brands in the category, several choices are available to the marketer.
The idea of Brand positioning can mean many things. It could refer to where a brand
is seen in a category relative to its competitors it could refer to the benefits or images
associated with a brand. Kotler has defined it in terms of enabling a brand to occupy a
distinct and valued place in the mind of target consumer. All these meanings are
important and must be considered when thinking about how to specifically position a
brand


Brand positioning is the super communication which tells the potential customer what
the brand is who is it for and what is offers. This reflects the relationship between
brand positioning and two more core communication of brand awarness and brand
attitude. Strong brand awarness must be generated and sustained with marketing
communication. It is market communication and advertising in particular that builds
and maintains Brand salience. It is just not enough for the brand just to be recognized.
It is to be successful a brand must occupy “salient” within the target audience
consideration set.

First, the maerketer can choose to position the brand within the overall market as a
differentiated product. With the strategy, the brand is positioned so that it is seen as
sharing important attributes or product characteristics with other brands in the
category and as being superior on the differentiating or digtinguishing attributes
(Dickson and Ginter 1987)

A second strategy, also based on differentiating the brand from other brands, involved
an attempt to create a separate submarket or niche for the new brand. With this
strategy, an attempt is made to set the brand apart from the general category rather
than to position the brand within the overall market as in the first strategy.

The author presents a conceptual model of brand equity from the perspective of the
individual consumer customer based brand equity is defined as the differential effect
of brand knowledge on consumer response to the marketing of a brand. A brand is
said to have positive (negative) customer based brand equity when consumer react
more (less) favorably to an element of the marketing mix for the brand then they do to
the same marketing mix element when it is attributed to a factiously named or
unnamed version of the product and services. Brand knowledge is conceptualized
according to an associative network memory model in terms of two components,
brand awareness and brand image. (i.e a set of brand association) Customer based
brand equity occurs when the consumer is
Familiar with the brand and holds some favorable strong and unique brand association
in memory. Issues in building, measuring, and managing customer-based brand equity
are discussed, as well as areas for future research.
Berger has its competition with other paint industries and as days goes by the
competition is getting more difficult but the position which Berger has created over
the years on the mind of its customer has led it lead the market till present. When
people want no compromise with quality and health wise the best for their family and
environment they opt for Breathe Easy and that is the unique feature of Breathe Easy
Berger paint from its competitor. That is how Berger positions their Brand over its
competitors.
Pricing strategies can be complex; the basic rules of pricing are straightforward:
 All prices must cover costs and profits.
 The most effective way to lower prices is to lower costs.
 Review prices frequently to assure that they reflect the dynamics of cost,
market demand, response to the competition, and profit objectives.
 Prices must be established to assure sales
Every product comes with a price and Berger is no different than that. The main
objective of Berger is to provide such product which has value with the cost of it. The
product is costly but customer pays well when they know what they are getting in
return.

Customer satisfaction and price tolerance
Customer satisfaction is a post hoc evaluation of consumption experience( Oliver
1980) A customer satisfaction evaluation can be quit specific in nature-a specific
subset of experience such as a single transaction and/or particular attribute- but may
also be cumulative, based on all previous experience with a good or service
(Anderson and Fornell, 1993) As the purpose of this study is to investigate buyers
price tolerance- the maximum price increased satisfied customer are willing to pay or
tolerate before switching it seems natural to focus on cumulative customer
satisfaction. Cumulative customer satisfaction as opposed to satisfaction with a
specific transaction or product attribute should provide a more accurate deception of
the net or marginal value customer attached consumption of the future of a good or
service.

Product distribution or place is one of the four elements of the marketing mix.
Distribution is the process of making a product or service available for use or
consumption by a consumer or business user, using direct means, or using indirect
means with intermediaries.
In here Berger Breathe Easy distribution process is simply to supply the dealers with
any amount of paint tins they request for and then purchase self space where their
product will be placed and leave the rest to the dealers to conduct sales. They ensure
any dealers requesting their product has it available as soon as possible up for sale.
Both urban and rural areas are on their reach they have fleet of transportation for
deliver their products. Mostly Breathe easy is available in urban areas which is at all
the main cities, towns and at high end areas.

During the past three decades channel relationship has been an important area of
research in marketing. Empirical investigations of channel relationship have focused
on predicting several rich and interesting constructs such as power use,
conflict,satisfaction, opportusinm and more recently trust and commitment. Of these a
litrerature search indicated that the most popular construct in empirical studies is
satisfaction with 71 studies between 1970 and 1996 incorporarting satisfaction in their
models of channel relationships (e.g Anderson and Narus 1990) The construct of
satisfaction is of fundamental importance in understanding channel relationships (
Ruekert and Churchill 1984) Satisfaction affects channel members morale and
resulting incentive to participate in collective activity ( Suhul Little and Pride 1985) It
helps in developing integrated logistic management and just-in-time inventory system
( Brown Lusch and Smith 1991) Satisfied channel members aare less prone to exit the
channel inclined to file lawsuit against other channel members and not as likely to
seek projective legislation (Hunt and Nevin 1974)


















CHAPTER FOUR

















INTRODUCTION TO PAINT INDUSTRY
Bangladesh paint market had been experiencing a good growth of 8-10% per
annum consistently in the late 90s mainly because of a boom in real estate
development which now seems to have reached a saturation point. Since 1995, the
growth in our paint market has been declining to an estimated rate of 3-4% p.a. and
the trend reveals a point of no growth-foreseen for 2003, there should have a
precautionary signal for further newer investment in this sector. According to the
cement manufacturers of Bangladesh, the cement market is also growing at around
4% p.a., which correlates quite well with our paint market growth data.

For any economy paint industry is very a huge contribution so in Bangladesh paint
industry is growing bigger in the current economy. As there is boom in the
contruction Business, so demand for all the contraction related material are going up.
Construction goods like wood, cement, bricks, construction rot, paint, toiletries, ect
has a rise in the market share



Figure 1: Market share of the overall paint industry.

According to Mr. M A Rahman, secretary general of the Bangladesh Paint
Manufacture Association (BPMA) and managing director of anchor paints shared his
view and statistical information about the present situation on Bangladesh paint
Industry, there is a 16% growth over the past 9 years in terms of volume. During
2006-2009 the domestic industry value was worth around $150m and Bangladesh
produced 76,350 tons of paints per year. But, currently the market worth is around
$250m and Bangladesh produce above 100k tones of paints. According to Mr.
Rahamn, currently ¾ of the paint produces goes in to the architectural application,
much smaller fraction goes into individual, which is 12% and 6% goes to
shipbuilding.


Market Share Analysis
At present Bangladesh paints industry has 6 companies who have significant market
share. Berger Paints Bangladesh Ltd. is operating as the market leader and enjoying
almost 45% of national paint market share. The nearest competitor is Sagar
Chemical and Paint Industry Ltd. who resides far below the market leader in aspect
of market share. The following Table shows the present market share of different
companies in paint industry of Bangladesh:





Figure 2: Market share of different companies

The Table shows that Sagar Chemical and Paint Industry Ltd, who are mostly known
a Romana Paints manufacturer, enjoying a market share of 13.6% and Elite Paint‟s
market share is 6.8%. A very mentionable point about the national market share of
different companies is, recently the market share of the local companies are declining
whereas the market share of Berger Paints Bangladesh Ltd. is increasing. Added here,
very recently giant India based multinational paint company „ Asian Paints‟ has
entered into this market under joint venture investment with Confidence cement Inc
Ltd. Another local company „Aqua‟ has launched recently. Asian Paints‟ market
share in 2004 is 4.2%. Though the share is not very high but being new entrant their
growth is significant. The market shares of the major paint category are given below:


TOTAL PAINT MARKET
1700CROR (AS PER REVENUE)


Figure 3: Revenue positioning in 2011

SALES VALUE (IN CRORE)












Table 1: Sales value of existing paint companies in 2011










Company Value (2011)
Berger 700+
Asian 163
Roxy 96
Pailac 61
Elite 120
RAK 25
Others 82

BERGER PAINT BANGLADESH: OVERVIEW
Berger, the market leader in the Bangladesh paint market, is one of the oldest names
in the global paint industry. The company is operating in the paint industry for almost
two centuries. It has its origin in the year of 1706 and from then on the company is
operating with strong adherence to quality and social responsibility.
Initially, Lewis Berger, a German national, founded dye & pigment making business
in England. Lewis Berger & Sons Limited grew rapidly with a strong reputation for
innovation and entrepreneurship culminating in perfecting the process of making
Prussian
Blue, a deep blue dye, a color widely used for many European armies' uniform.
Production of dyes & pigments evolved into production of paints & coatings, which
till
today, remains the core business of Berger.
Berger grew rapidly by establishing branches all over the world and through merging
with other leading paint & coating companies. Today,
• Berger is one of the leading companies in the global paint industry
• Berger offers all kinds of painting solutions in decorative, industrial or marine
segment for both decorative and protective purpose
Berger Paints started its sailing into the sea of Bangladesh from pre-liberation era, to
be precise in 1950. The main business flourished in the post liberation phase. In


Bangladesh the major milestones of Berger Paints are given below:
1950 – Started operation in Bangladesh by importing Paint from Berger UK
1970 - Establishment of Chittagong Factory
1980 – Named as Berger Paints (BD) Ltd. from Jenson & Nicholson (J&N)
1991 – BMRE in Chittagong Factory
1995 – Establishment of Double Tight Can Manufacturing Plant
1999 – Establishment of Most Modern Sate-of-the-Art Paint Production Plant in
Dhaka
2002 - Construction of own building for the Corporate Office in Dhaka
2004 – Establishment of Powder Coating Plant
2011- Berger Breathe Easy











INTRODUCTION

 Healthy home concept
 Odorless i.e. zero VOC emissions
 Alkyl phenol ethylate (APEO) free
 Reduce greenhouse gas emissions to environment
 Contain antimicrobial properties that resist bacteria and other microbes on the
paint film
 Contain low or no silica
 Prevent stains from penetrating to the paint film
 Offers highest standard of indoor air quality











 Especially solvent-free resin controls minimum air pollutant
 Has an extremely low odor during application and drying.
 Rooms painted with Breathe Easy Emulsion can be used within couple
of hours without any lingering smell usually associated with freshly
painted rooms using conventional paint.
 Its characteristic additives improve its clean-ability & provide oil
repellency which helps cleaning of all sorts of stains from the wall and
gives the walls evergreen appearances & rich finish.
 It can provide a visual sheen with extremely smooth to touch finish to
your interior wall.

Berger will proudly announce the New Product
Name (Breathe Easy) to the audience which will create history as being pioneer Brand
into Paint Industry of Bangladesh.
• Own Corporate Office located in Dhaka
• 2 Factories at Dhaka and Chittagong
• 7 strategically located Sales Offices throughout the whole country. The locations
of the Sales Offices are shown in a map attached in the annexure
• A wide distribution channel reaches the whole country with a network of almost
1000 dealers
Vision and Mission of the company
The vision and mission of Berger Paints Bangladesh Ltd. (BPBL) is very transparent
and tangible. Berger emphasize highly on the ethical commitment to produce
benchmark
quality product. The vision and mission statement of the company is:
Vision
“We shall remain as the benchmark in the Paint industry by:
being an innovative and technology driven Company consistently delivering world-
class
products ensuring best consumer satisfaction through continuous value added services
provided by highly professional and committed team.”

Mission
“We shall increase our turnover by 100% in the next five years.
We shall remain socially committed ethical Company.”
Area of Operation
Berger Paints operates in three broad segments of the paint industry.
Decorative Paint
• The objective is to beautify the surfaces with protection from corrosion and
erosion
• This business category mainly targets household segment
• Products are being offered to the consumers through a dealer network
• Products fulfill the aesthetic value of the consumers
• Major revenue earning business area of BPBL
Industrial
• Tailor made products to cater to the specific needs of customers
• Products give protection to the surfaces in extreme situations like severe
hazardous environment, high temperature, movement of heavy materials and
machinery etc.
• Direct marketing approach is being used to promote the Industrial Coatings
• Main customer groups: Garments Factories, Chemical Plants, Fertilizer
Manufacturing Plants, Consumer Durable Manufacturing Plants etc.
Marine
• Products are being offered mainly through Direct marketing approach.
• Dock Yards, Bangladesh Navy, Passenger Ships are the main user groups.
• Market is mostly concentrated in Dhaka and Chittagong.
Manpower Structure
It is consisted of more than 300 employees of whom about 160 are general workers
and the rest are White Collar employees. These employees are working in different
factories and depots of the company.
The positional hierarchy of the company is as follows:
1. Managing Director
2. Director
3. General Manager (Executive -1)
4. Executive -2
5. Senior Manager
6. Manager
7. Assistant Manager
8. Officer (i, ii, iii, iv) / Management Trainee

Preparing Marketing Mix

Market Segmentation
For segmenting total paint market, Berger uses more than one basis. Initially, total
business of the Co. is segmented on the basis of customer types. Berger segments total
market as Decorative, Industrial & Marine. Then, Decorative group is further
segmented
on the basis of surface types- wooden, metal & concrete. Again, sub-class of the total
paint market is sliced on the basis of Internal & External surface category. At the last
step, price segmentation is used to create a number of small niches– Premium,
Regular &
Economy- in the market.
Product
Berger is committed to offer quality products that satisfy consumers‟ ultimate desires
from paints with the help of state-of–art technology. Berger always believes in one
step
ahead in offering new product to create more value for customers‟ money. Berger
outsmarts other competitors of the market through its one step ahead policy and
innovative market offers. Berger is trying to fill up all holes of the market through
offering a wide range of products to meet the needs (Premium to Economy Paints) of
different types of users and to solve the different types of functional requirements
(Industrial, Decorative & Marine). Berger Bangladesh offers approximately 600 SKU
including variations within basic product groups. Due to shift in market growth trends
Berger is trying to establish itself in the economy segment of the paint market.
Price
Generally Berger follows cost based pricing method. After calculation of the total
manufacturing cost (Direct & Indirect RM cost, Direct & Indirect Labor cost and
Manufacturing overhead cost) and adds 20% GP to get the price point of the product.
But
this is not the rule of thumb in pricing the Berger products. Competitor based pricing
policy is also followed as well because of the increased competition in the paint
market.
Place/Distribution
Berger follows the direct distribution policy to make the paints available in the
market. Berger distributes paints through its own sales force. Distribution activities of
Berger in all over Bangladesh are covered by 7 (Seven) strategic depots. *One level,
mainly, and *two level-channel, to some cases, are used by the Berger Paints for
Decorative products. Zero level channel, personal selling, is also used for grasping the
project offers.

Figure 5: Channel level
In one level channel, Berger‟s sales force delivers paints to the dealers from where
ultimate users purchase paints. In the two-level channel, some major dealers dominate
the
paint market in the region where they are located. Small dealers collect paints from
the
large-scale dealers. Ultimate users buy paints from these small dealers.
Promotion/Communication Mix
Advertising
Electronic media: Paints of Berger are promoted in the market through electronic
media
mainly in BTV and Cable Channels. Through these ads not only the overall Berger
products are offered but also the individual brands are promoted. Through radio
Berger is
trying to reach those potential targets that are not easily reachable by the BTV or
Satellite.

Print Media: During daytime mostly in the office market potentials have little
opportunity to go through the electronic media. Rather, they are used to go through
the
newspapers, magazines and other periodical publications. So Berger has taken the
initiatives to attract people‟s attention through print media to some extent. Moreover,
brochures, shade cards and other paint related information in printed form are
delivered
to the dealers, potential customers, painters and other targeted potentials to make them
interested /more interested toward Berger products.
Billboard: Berger efforts also move to grasp the potentials‟ attention and to increase
the
frequency of exposure toward Berger products while they are on the way to their
destinations.


Sales Promotion

Berger offers different types of incentives for consumers and traders of the paint
market. Trade promotion occurs more frequently than consumer promotion. Because,
success in this market highly depends on the traders involved channeling the paints
from
producers to consumers. Traders are highly influential in the market because of long
purchase cycle time (app. 3 years) of paints, technical aspects of the paints & etc.
Shop
boys are also included within the discursion of traders. Moreover, painters, end user
of
paint, play important roles in purchase decision of the paint. So, Berger offers
incentive
to create a favorable attitude towards the paints of Berger. Incentives offered to
different
groups that have impact on paint purchase decision by Berger to stimulate sales are
discussed below:
With a view to boost up sales various gift items are offered to consumers for
buying
Berger paints. Sometimes, gifts are offered for buying more volume.
In the decorative business category paints are offered to the dealers at 5% discount
on MRP of the all products.
Dealers of all over the country except Dhaka & Chittagong are entitled to enjoy 30
days credit facility provided that these dealers are registered. Dealers of these two
areas enjoy the credit facility of 37 days for all products of the Co.
For creating a loyal, motivated dealer group Berger arranges dealers meet in which
some exclusive dealers are invited for 3 / 4 days to visit an exclusive location. And
the total program is sponsored by Berger paints.
For selling more Berger products a turnover incentive is offered to them.
If dealers buy more than a specified volume in one invoice they are rewarded with
exemption of certain percentage on total monetary value of invoice. The amount
exempted is deducted during the cash payment of amount due to him or at the time
next time purchase.
Each registered dealers of Berger has to achieve a yearly sales target set by Berger
to
enjoy TOC (Turnover Commission), a percentage on total yearly sales.
Berger facilitates the dealers with a signboard displaying the identity of the outlet.
To create a shop boys‟ favorable attitude towards Berger products, cash incentives
are
offered to them.
To increase the sales of the company‟s paints attempt is taken by Berger to create a
loyal painter group who will favor the Berger paints through offering cash coin within
the containers of paint.
To collect the orders from projects sales force visits different newly constructed
projects.

Publicity:
• Young Painters Art competition
• Young Architects‟ Award
• Sponsoring Delta Break Housing Fair

Public Relations:
• Sales personnel‟s visit to dealer
• Communicate with the initiators of different projects.
• Prolink division of Marketing Department communicates with various groups
(engineers, architect and etc.) related with paint business. Generating consumer
pools for sales.



















Berger Paints Bangladesh limited launched „Breathe Easy‟ – the first ever odor free
and eco-friendly paint in Bangladesh at the Ruposhi Bangla Hotel on October 24,
2011.
Like its slogan „Healthy Paint for Your Home‟, this premium interior emulsion,
„Breathe Easy‟ will give the user a feeling of being in nature.
The paint is environmental friendly since it has low volatile organic compound
(VOC). It is worth mentioning that paints with high amounts of VOC can create
breathing problems and can also have side-effects such as allergies. Breathe Easy is
also ‘odor-free’ which makes it easy for people to stay in the room which has been
newly painted. It is also ‘stain-free’ and ‘anti-bacterial’ which protects the wall
from stains and fungus.
Rupali Chowdhury, Managing Director of Berger Paints Bangladesh Limited,
formally launched Breathe Easy in the presence of distinguished guests and media
personalities.
Mohsin Habib Chowdhury, General Manager, Sales and Marketing of Berger Paints
Bangladesh Limited highlighted the special features and advantages of Breathe Easy
to the audience. He also mentioned, „After years of research, we have used the best
ingredients and technology to create Breathe Easy for our consumers. We also believe
that such products will broaden the horizon of the paint industry.‟
Reputed architects, real estate representatives, Berger High Officials and media
personalities were present at the launching ceremony.

Consumers of Bangladesh have their utmost trust in the quality of Berger's paints.
Keeping in line with other developed countries, Berger uses the latest technologies to
fulfill consumer demands over the years, which have always strived to be
environmentally friendly. It always emphasized on the consumer's needs and desires,
thus creating a product range that is completely consumer centric. As the world is
tackling various issues on climate changes, Berger too has been an earnest participant
towards this cause, solemnly vowing to stop the environmental degradation so that
they can give the next generation a decent place to live. Rooting from the same
thought, Berger introduces a new interior emulsion 'Breathe Easy'.

Why is it special?

Breathe Easy is a unique paint and the first of its kind in Bangladesh that will
completely change your impression towards paints. Breathe Easy will provide your
house with a healthy environment with a touch of nature for your walls. It‟s low VOC
formula helps prevent any air pollution. So the lingering odor one experiences from
the freshly painted walls will be no longer there, making your house comfortable for
you to live in even while being painted. Breathe Easy is a healthy paint for a healthy
lifestyle.

Size and Packaging
Available in 3.6 liters and 0.9 liters pack.


Shades
Breathe Easy is available in ColorBank's 101 shades.

Usage Area

Breathe Easy Emulsion is an interior wall finish, which can be applied on all types of
smooth plasters, false ceiling, asbestos sheet, concrete etc.

SURFACE PREPARATION

New plaster surface: It is advisable to allow new plastered surface to dry adequately
before painting. Ensure that the surface is free from loose particles and any
greasy/oily substance by cleaning the surface with emery rubbing paper or wire brush.

Repainting: Previous coatings of lime wash, distemper etc. must be thoroughly
scraped off. Earlier coatings of emulsion based paint need not to be removed if the
coatings are in sound condition. However, the gloss/sheen of such coatings must be
removed by thorough sanding. Cracked or flaked paint must be removed completely.
Fungus affected areas require separate adequate treatment. Repair the cracked portion
of plasters and areas affected by leaks, drainage etc., and well prior to painting. Allow
the surface to dry sufficiently.

On new/old walls: Apply 100% thinned Robb Water Based Sealer as primer. Dry the
wall for at least 4-6 hours. Then apply two coats Robb Wall putty with a 6-8 hours
interval. After proper drying (overnight) of wall putty, rub down the wall with
sandpaper to provide a sound surface. Apply one coat of Breathe Easy thinning with
100% water as the prime coat and allow the surface to dry at least 24 hours. Now the
surface is ready for paint application.

APPLICATION

Breathe Easy Emulsion can be applied with brush or roller. Apply 2 coats of Breathe
Easy Emulsion as the finish coat within 24 hours interval.

Dilution for application:

Brush - Paint : Water = 3:1 (By volume)
Roller - Paint : Water = 4:1 (By volume)

CAUTION

- Do not over thin.
- Use the thinned paint within 12 hours.
- Do not retain the thinned material beyond
recommended time. Berger Breathe Easy is an odorless paint. That's why when you
paint your house with Breathe Easy you don't get any bad odors
It contains Anti-Microbial properties that resist the growth of bacteria and other
microbes on the paint film, so that the walls of your home will remain completely safe
and healthy for your family for many years to come
The 'Stain-Free' formula in Breathe Easy helps keep walls looking brand new for a
long time. Because of this special formula, common dirt and stains can hardly affect
your walls. However, if your walls are affected by tea-coffee stains, handprints and
the marks from your children's color pencils, you can easily wash them off more than
5000 times with soap water without affecting the color and tone of the paint Breathe
easy gives the walls an impeccable long lasting finish with a touch of soft sheen
suited for healthy living. When walls are painted with any shades of Breathe Easy, the
rooms look more spacious, thus giving you a more aesthetic interior

To make Breathe Easy even safer for human and especially for children, it is kept free
of Alkyl phenol Ethylate (APEO). It is lead free and environment friendly.

It contains very minimal amount of volatile organic compound (VOC), therefore it
prevents emission of greenhouse gases, and thus, the environment of the house
remains fresh and very comfortable to live in.














































CHAPTER FIVE














METHODOLOGY

RESEARCH DESIGN

Type of research
The task of business research is to generate accurate information for use in decision
making. Business research is defined as the systematic and objective process of
gathering, recording, and analyzing data for aid in making business decisions. There
are
two types of research.
Basic research is intended to expand the boundaries of knowledge itself or verify
the acceptability of a given theory.
Applied research is conducted when a decision must be made about a specific reallife
problem. Applied research encompasses those studies undertaken to answer questions
about specific problems or to make decisions about a particular course of action or
policy.
This research type is basic research as we are trying to expand our boundaries of
knowledge of the level of customer satisfaction of Berger Breathe Easy users.

Nature of research
When a researcher has a limited amount of experience with or knowledge about a
research issue, exploratory research is a useful preliminary step that helps ensure that
a more rigorous, more conclusive future study will not begin with an inadequate
understanding of the nature of the management problem. The purpose of an
exploratory research is intertwined with the need for a clear and precise statement of
the recognized problem. Exploratory research has two interrelated purposes, to
diagnose a situation and discover new ideas. Much, but certainly not all, exploratory
research provides qualitative data.
This research is a qualitative exploratory research, as it is an initial research
conducted to clarify and define the nature of a problem. It is qualitative as the results
of this research focuses on words and observations, instead of numbers and
mathematical analysis.

RESEARCH STRUCTURE

Type of data
This research will not be focusing on any secondary data, as no such preview
research has been conducted in context of Berger Breathe Easy. This research will
work with only primary data.

Data collection procedure
There are three types of method, survey, observation and experiment. Data is
collected through survey method. For the survey method I used both structured and
unstructured personal interview. A questionnaire is given to the person being asked
the question. I explained any question not understood sometimes direct one to one
question also asked. This allowed me to observe and understand more clearly through
physical gesture and verbal emotion of the customer, a depth of the questioned being
answered.

There are several advantages of personally conducting the questionnaire survey
• Probing complex answers.
• The opportunity for feedback.
• High participation.
• Item non-response – the technical term for an unanswered question on an
Otherwise complete questionnaire.

SAMPLING PLAN
The sampling technique is a cross-sectional study as the data is collected at a single
point in time.

Target population
The user of Berger Breathe Easy in the geographical base of Dhaka city

Sampling Frame
• List of household (Customers who have used Breathe Easy) of Dhaka city. This
was provided from Berger to my supervisor who then gave me the information.

Sample unit
Sampling unit consist of the respondents. For that reason we divided the total
population in to some group.
• The knowledgeable respondents.
Higher Upper class.
Upper Class.
Upper Middle Class

Sampling technique
The sampling will be random selection of the user of the product from different area
of the city of the different classes from the sample unit. I tried to classify population
by pertinent properties, determining desired proportion of sample from each class.
Sample size
I am considering the knowledgeable respondents basically who make the purchase
decision for (Berger Breathe Easy) within Dhaka city. For that reason I have divided
the total population in to some group.
• The knowledgeable respondents.
Higher Upper class.
Upper Class.
Upper Middle Class.

Customers
The detail of the area wise
Distribution is given below.
Sl. No Area Number
2 Uttara 1
6 Gulshan, Banani, Niketon
6 Baridhara, Mohakhali DOHS
3 Pura Paltan, SHantinagar, Kakrail,
4 Fakirapul, Siddeshwari
4 Shymoli
5 Dhanmondi, Mohammadpur, lalmatia

Sample Size for the Customers: 30
Table 3: Questioned customer

SAMPLE CHARACTERISTICS
PRE-TESTS
Pre-tests are trial runs with a group of respondents for the purpose of detecting
problems in questionnaire instruction or design. Pre-testing was done with 2 customer
and the questionnaire re-modified as required. The re-modified questionnaire as to
have a better judgment to the survey.

Demographic
Age 25-40, 41-50
Occupation Businessman, Managers, homemakers,
Architects, Engineers, Painters, Officials
High Upper Class,Upper class, upper middle class,


Behavioral
User status Regular user, first time users
Loyalty status Medium, strong
Readiness stage Aware, Informed, and Interested.
Table 4: Demography and Behavior of the interviewed customer

The above diagram is the charachteristic of the group of people interviewed. It has
both demographic and behavioral status of the users.























CHAPTER SIX













DATA ANALYSIS
My research is on Berger Breathe Easy a newly introduced healthy paint belongs in
niche market. The potential customer for this product is limited in nature so acquiring
data was difficult on that basis. Most people don‟t know about the brand properly yet.
The demography for the product is for families with children. Paint usually contains
some amount of lead and other volatile compound which is harmful especially to kids
and Breath Easy is both free of lead and other volatile compound. It is also healthy for
environment.
I surveyed with 30 people and before I handed them over with the questionnaire I
questioned them whether they have experience with Berger Breathe Easy. And then
they filled up the questionnaire. In that process I questioned more than 30 people
among whom included people who do not have any idea about it or never came any
contact to it.
Firstly I approached them asking the question to associate the independent variable
with the Product. Here most people agreed they used the product because of its
reputation with the Brand image and Quality of the product. Here we can analyze the
satisfaction comes in association to the brand name Berger and the image it has over
the years to maintain good quality. The next best association to the Price as because it
is a high end product there lays a satisfaction of purchasing the best product there is
available. The product is available in commercial and high end posh areas in the
dealer shops but that is the least important to the buyers for the reason or motive of
purchasing.
Tick and rank accordingly the motive for usage of each of the element below.
(1 being most important - 4 being least important)
Rank
Brand Name 10
Quality 12
Availability 5
Price 3

Table 5: Ranking of the independent variable

Figure 4: Ranking of the independent variables of satisfaction
In this diagram we can visualize Quality is primary satisfaction generator among the
four variables ranking wise. Berger has a reputation of being one of the top and best
of its kind so people associate quality with the product


Figure 5: Brand position in the mind of the target customer
When the question was asked how people recall the brand most people answered it‟s a
high reputed brand following to medium reputed. Here we can sum up that people
associate Berger Breathe easy to high end and posh brand. Although it is a niche
market product people who purchase shows a feel of satisfaction because of its
reputation. It is well established among its potential customers.

Figure 6: Comparison of quality with other similar category product
When I asked people the question to compare Breathe Easy with other brands
associated to quality most people answered that quality is top notch and it commences
the promise it provides. Comparatively to other brand it is quite well with its quality
and delivers good result.


Figure 7: Comparison of price with similar category product
When the price was asked to compare most people agrees the price is more than that
of other brands.

Figure 8: Availability of the Breathe Easy
Most people agree the product is quite conveniently available in reach to its potential
customer. Berger has a good reach with its products. It is already well established
with its distribution network. But still Breathe easy isn‟t available in every corner of
the country because that‟s not there target aim.


Figure 9: High frequency of purchase
People who already purchased it once or even more than one‟s answered they are
willing to repurchase and they wouldn‟t mind recommending it to others.




Figure 10: Recommending the product to others

The customers who already used the product mostly aren‟t sure about recommending
others but some do agree to recommend somewhat likely and very likely.



Figure 11: Experience related to Breathe Easy
Most people agree they had an overall very good to good experience. Some even
considers it as an excellent experience.










CHAPTER SEVEN











RECOMMENDATION
Direct buying from paint industries
According to the Construction laws, companies are not allowed to use any materials
that bring harm to human life or environment. – But in reality, certain companies are
buying out non-brand or low budget paints which are creating a lot of environmental
effects. There are middle man in many situation who take advantage of the big
projects and suggest or sell paints which are harmful in the long run. Hence, the
company is losing a lot of money in re painting those structures or buildings.
For e.g. Navana group‟s director, Mr. Shubro NGL experienced such scenario during
2002-2003. The construction business was growing at that time, and they were buying
paints in bulk amounts from different 3rd party, to make maximum profit he used to
buy non brand paints, so in the long run he experienced that he had to repaint those
buildings again after 2-3 years. Which in fact cause him a lose. (Appendix,
questionnaire)
This has turned out to be a major problem, as this trait is limiting the number of
potential paint market in Bangladesh Paint Industry. Top class companies who buy
branded paints, has to sell apartments at a high price, but they are not bothered until
people are appreciating the color.
Recommendation
The government should make it mandatory for all companies to genuinely get their
demand on the branded paint market, Bangladesh.
 Availablity of foreign market
The companies and consumers who are using Berger paint currently had to look for
the availability of the paint. Mostly the companies get the paints directly from Berger
Paints. But the consumers who want to paint their individual apartments or house had
to look for hardware stores. So, at times the paint is not available.
Sometimes due to trade restrictions paints are unable to get into the country through
the port, and hence there are works hampers and lots of other problems.
Recommendation
Government should set up a plan for construction industries, since its booming and
bringing lot of foreign currency to Bangladesh, government should make it a bit
flexible and give incentives on tax on certain products. This might help the
construction firm to get available product and in low and usual price.

 Promotional activities:
Berger Breathe Easy should conduct more promotional activities such as “consumer
promotion”, advertisement, billboards, Public awareness of health concern etc.
Recommendation
If Berger takes more initiative in conducting promotion more people will understand
the benefit of using environmental friendly and health protectiveness of the paint and
thus may increase the sales of it. Berger should promote the fact more that they think
green and are socially responsible for keeping the environment safe and that they care.


















CHAPTER EIGHT
















CONCLUSION

This report has outlined the contours of Bangladesh paint industry and Berger Breathe
Easy satisfaction level of its customers. The benefits are potentially very significant
but they cannot be fully obtained by individual initiatives alone. The satisfaction
pattern will hopefully hold its positive attitude but in time sales are expected to raise
as more awareness and promotional activities will be done. Since Breathe Easy are
rising in demand, and they have already a market of home décor, they should keep up
a good strategy of pricing and holding on to the customers. As the Bangladesh
developing firms are booming, Breathe Easy will be able to get a lot of support from
the experience and good end users.

The protection of human health and environment is an important issue in today‟s
world. In keeping track with the globalization Berger introduced the environmental
friendly paint Breathe Easy. They are socially responsible and playing their part in
keeping the world green. Synchronizing to that the paint Breathe Easy will find a
good place in the market in no time. Present customer are satisfied with their
experience in general so keeping that in mind they should maintain the quality with
the good distribution network they already have. Price in generally high but in time
when sales volume may increase they may lower the pricing then it already is. They
operate in peneratration pricing method at present as they entered a niche market
being the one and only of its kind in the market. The brand name Berger always plays
a major role in the present positioning of their product. To conclude Breathe Easy is
playing its card right and in time with proper marketing and other factors affecting the
sales it will boom its way in the paint industry.
























Did you use or come into contact with the Brand Berger Breathe Easy?
 Yes
 No
Tick and rank accordingly the motive for usage of each of the below element.
(1 being most important - 4 being least important)


How do you recall the brand Berger Breathe Easy?
 Highly reputed
 Medium reputed
 Neutral reputed
 Below average reputed
 Poorly reputed


Compared to our competitors our product is?
 Much better
 Somewhat better
 Same
 Slightly better
 Much worse






Rank
Brand Name
Quality
Availability
Price

Compared to our competitors our prices are?
 Somewhat more reasonable
 Slightly more reasonable
 Alike
 Slightly less reasonable
 Much less reasonable
Was the product conveniently available?
 Yes
 No
Would you like to repurchase the product?
 Yes
 No

How likely are you to recommend Berger Breathe Easy to people known?
 Very likely
 Somewhat likely
 Not sure
 Slightly likely
 Not likely at all

How to rate the overall experience?
 Excellent
 Very good
 Good
 Average
 Poor










REFERENCE

http://www.acrwebsite.org/volumes/display.asp?id=7005

http://books.google.com.bd/books?hl=en&lr=&id=nOWf14vc1EIC&oi=fnd&pg=PA6
7&dq=brand+positioning%2Bbrand+image&ots=0n2G1LIF4S&sig=zQcugkgO499x0
MUrUZOfbp63wDo&redir_esc=y#v=onepage&q=brand%20positioning%2Bbrand%
20image&f=false

http://www.jstor.org/discover/10.2307/3172765?uid=3737584&uid=2&uid=4&sid=2
1100919365851

http://www.jstor.org/discover/10.2307/1252002?uid=3737584&uid=2&uid=4&sid=2
1100919365851

http://www.springerlink.com/content/x7842k5276263163/

http://www.jstor.org/discover/10.2307/1252054?uid=3737584&uid=2&uid=4&sid=2
1100919365851

http://www.emeraldinsight.com/journals.htm?articleid=851630&show=abstract

http://www.emeraldinsight.com/journals.htm?articleid=853324&show=abstract