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Presented to:

Sheikh Morshed Jahan

Associate Professor
Prepared by:
Danny Martin Gonsalves
Roll: 03, Batch: 49D
Group 1 (evening)
Course: Business Strategy



Institute of Business
University of Dhaka
Submission Date: May 25, 2015

A TTF Approach based Case

Will Berger remain the market leader?




Berger Paints is one of the oldest names in the paint industry, yet, it is one of the most
technologically advanced companies in the country. It is constantly striving for innovating
superior quality products and services. With more than 250 years of rich heritage, Berger
manufactures world class paints for all kinds of substrates and also provides unparalleled
Berger Paints started painting Bangladesh since independence. Over the past few decades,
Berger has evolved and transformed itself in becoming the leading paint solution provider in
the country with a diversified product range that caters to all your painting needs.
Berger has heavily invested in technology and Research & Development (R&D) compared to
any other manufacturer in this market. Investment in technology and plant capacity is even
more evident from the establishment of Powder Coating and Emulsion plants at the Dhaka
factory. The state-of-the-art Dhaka factory is an addition to Berger's capacity, making it the
paint giant in Bangladesh. It sources raw materials from some of the best known names in the
world. The superior quality of Berger's products has been possible because of its advanced
plants and strict quality controls that match international standards.
With its strong distribution network, Berger has reached almost every corner of Bangladesh.
Nationwide Dealer Network, supported by 8 Sales Depots strategically located at Dhaka,
Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Comilla and Mymensingh has an unmatched
capability to answer to paint needs at almost anywhere in Bangladesh.
Berger's one of the prime objectives is to provide best customer support-connecting
consumers to technology through specialized services like free technical advice on surface
preparation, color consultancy, special color schemes etc. To bolster customer satisfaction,
Berger offers Home Decor Service from where one can get an array of services pertaining to
The product range includes specialized outdoor paints to protect against adverse weather
conditions, ColorBank, Superior Marine Paints, Textured Coatings, Heat Resistant Paints,
Roofing Compounds, Epoxies and Powder Coatings. In each of these product categories,
Berger has been the pioneer. Besides, Berger offers illusions-the first designer paint solution
in Bangladesh. The company also launched Power Bond adhesive, Innova Wood Coating in
collaboration with Sherwin-Williams, Vehicle Refinish in collaboration with world renowned
PPG-USA, Texbond binder to cater to the growing needs of the customers.

Apart from business, Berger Paints has added another dimension to its social responsibilities
by contributing to the wellbeing of the autistic children in Bangladesh from 2009. Berger
Paints Bangladesh Limited has been promoting the young and creative talents of the country
through Berger Young Painters Art Competition (BYPAC), Berger Award for Excellence in
Architecture (BAEA), Berger Award Program for the Students of Architecture of BUET
(BASAB), Scholarship Program for the students of Architecture Discipline, Khulna
To be the most preferred brand in the industry ensuring consumer delight.ii
Berger will increase its turnover by 100 percent in every five years. It shall remain socially
committed ethical company.iii
Bergers strategy is to build long-term partnerships with the customers/consumers. With their
support, Berger aims to maximize the potential of its business- through a combination of
enhanced quality of product, service, creative marketing, competitive pricing and cost
Respect: Show an attitude of courtesy, admiration or esteem
Integrity: Act consistently with Bergers mission, being honest and transparent in
what we do and say and accept responsibility for our collective and individual actions
Commitment: Be sincere and steadfast to protect Bergers interest and achieve goals
Excellence: Never be satisfied with simply meeting expectations; always try to
exceed them significantlyv
In Bangladesh the major milestones of Berger Paints are given below:
1950 Started operation in Bangladesh by importing Paint from Berger U.K.
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 at Chittagong
1999 Establishment of Most Modern SateoftheArt Paint Production Plant in Dhaka
2002 - Construction of own building for the Corporate Office in Dhaka
2004 Establishment of Powder Coating Plant at Dhaka
2005 Listed in Dhaka & Chittagong Stock Exchanges and issued 5% shares to the public
2010 Remained market leader with more than 50% of market share





The core business of Berger `is manufacturing and marketing of paints, varnishes and
coatings. It produces a wide range of paints including architectural paints, industrial coatings,
marine paints and powder coatings. With a view to improving consumer satisfaction, Berger
has also introduced end-user oriented services such as color bank, home dcor, pro link and
tinting. Its wholly owned subsidiary, JENSON & NICHOLSON BANGLADESH LIMITED,
is engaged in tin container production most of which is supplied to their parent company.
Like all other manufacturing organizations, BPBL has a conventional organization structure.
Generally six board meeting are called in BPBL during a year where chairman of the board of
Directors presided over the meeting. In BPBL several committees like the Audit committee,
Risk committee, Remuneration committee, Executive committee and the Purchase committee
are formed along with Managing Director (MD) and other Executive & non-Executive
Directors. These committees sit at least once a month to approve various proposals brought
by the management prior to implementation. All the proposals are initiated by the mid-level
managers and then forwarded to the Managing Director (MD) through the head of the
divisions or dements. The company has also a legal problems faced by the company and
external auditors to conduct audit activities of BPBL.
There are four Non-Executive Directors, two Executive Director and ten Managers work
under the Managing Director (MD) of the company. Among the ten managers three directly
report to the Executive directors and other report to the Managing Director. The Managers of
each dement monitor the work activities of subordinates, convey top management decisions
and provide necessary feedback to reach organizational goals and objectives. In response the
bottom level managers perform their responsibilities sincerely and report regularly to their
immediate superiors.

2. Berger Paints Bangladesh (BPBL) based on TTF approach

Berger Paints Bangladesh Ltd. is chosen for a TTF analysis due to several issues that has
recently become concerns for the company. Although being market leader the company is
recently facing extreme competition from the existing rivals also the threat from the entrance
of the new rivals. Another issue that has drawn our attention to conduct this analysis on the
organization is that with the up gradation of technology several substitute for paints have
been created leading to the loss of market share business for paint. These important issues are
to be dealt by the company with significant strategic decision and innovation. As a matter of
fact the Triple Triangle Framework analysis is conducted on Berger Paints and the findings
came out as follows


Berger Paints Bangladesh Limited is most technologically advanced companies operating in

the Bangladesh paint industry. The company has successfully replaced Oracle by the most

popular SAP Enterprise software for supply chain management and inventory management.
This help the company reduce lead time, shipping cost & storage cost. The companys color
bank technology can provide any shade required within only 5 minutes. Berger has two stateof-the-art international standard factories with enough production capacity to serve the
market. The company has very skilled and experienced human resources with average
retention rate of more than 6 years.


Berger Paints Bangladesh Ltd. has a capital of 35,752.71 million BDT. The companys share
price in the stock market ranged from 965.3 to 1729.9 over the last one year. Berger has been
very successful in maintaining business in instant cash delivery and short term credit leading
the company with high net cash flows. Again the company collect all its credits within 90
days of product The companys capital also include its high production capacity
and strong distribution channel. Bergers major products include the following
Product Name
Luxury Silk
Robbialac Acrylic
Plastic Emulsion (APE)
Robbialac Super Gloss
Synthetic Enamel
Robbialac Acrylic
Distemper (SPD)
Weather Coat Smooth
Jhilik Synthetic Enamel
Durocem Cement
Robbialac Aluminium
Tartaruga Textured

Breathe Easy

Product Description
A marvel of international emulsion technology, Luxury Silk combines
the best of aesthetic appeal with the best of functional properties like.
A standard emulsion paint formulated with acrylic.
Robbialac Super Gloss Synthetic Enamel is hardworking, premium
quality synthetic enamel formulated to retain its gloss and film integrity
in the face of extreme climatic variations.
A specially formulated acrylic co-polymer emulsion based washable
distemper for elegant, smooth, durable, matt finish for interiors.
Weather coat is smooth water based super exterior wall finish formulated
to give exceptional durability in adverse climatic conditions.
Jhilik Synthetic Enamel is an economy synthetic enamel formulated for
interior and exterior application to give a glossy durable surface.
Durocem is an exceptional formulation based on selected raw materials
and specially treated white cement that makes it ideal for both indoor
and outdoor applications.
Robbialac Aluminium Paint is a superior 2- pack aluminium paint with a
brilliant silver-like luster. It is ideal for application on the exteriors of
storage tanks for water, petrol, oil.
This is one of the most famous BERGER formulations in the world. The
product is paste like having special aggregate to facilitate drawing
desired textured patterns on the surface.
Berger illusions is not just a paint its a whole new lifestyle for your
walls. A range of designer wear for your walls with thousands of color
Berger breathe easy is the first ever environment friendly paint in
Bangladesh with very low VOC and high durability. This is now the
most premium paint of the company.


Berger Paints Bangladesh Ltd. organizational culture comprise of the characteristics: Growth
hungry & Risk taker. The company has achieved a growth of 50% in last 2 years which is a
record for any paint company after the 2008s recession. Berger takes risk by launching new
product in less than every 2 years. Most importantly the company has a very friendly work
environment and it practices ethical and professional business norms.
Berger Paints Bangladesh Ltd.s customers include households, industries, commercial
buildings, architects, developers, car producers, ship producers, wooden furniture producers
etc. The number of customers for the firm is increasing every year leading the company to
higher growth. The better part is that the customers are less price sensitive whereas a portion
of them are loyal to the brand Berger. The company provides Home dcor service from 11
locations all over the country and also provide online consulting service for any paint related
solution. But there is always a risk of losing customers as the witching cost from one paint
company to another is minimal.
Berger paints has a quality policy to ensure quality paints for its customer. They are

We at Berger Paints Bangladesh Limited are committed to achieving total consumer

We commit to project ourselves as an ethical and socially responsible company.
We commit to continue as the market leader through consistent sales growth,
increasing productivity and developing new products befitting consumer needs.
We shall ensure continual improvement in our operations through utilization of our
highly professional and dedicated team, proper process management and participation
of our stakeholders.


Berger Paints is well ahead of its competitors in Bangladesh market with more than 50% of
market share. Whereas the closest competitor Asian Paints has around 20% market share. The
company has gained first-mover advantage over both the national and multinational
competitors. But the monopoly days for Berger are about to go as the international big
players like Akzo Nobel and Jotun Paints are entering the market. Other competitors include
Roxy paints, Aqua paints, Uzala paint, Paylac paints, Elite paints, Romana paints etc. Asian
paint has put immense pressure on Berger by rapidly increasing their market share.

Market Share of paint companies in 2014










7% 8%


Figure: Market share of paint companies in 2014vii

The figure shows, data as of 2014, that Asian Paints enjoying a market share of 8% and Roxy
Paints market share is 7%. 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 a 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 2006 is 8%. Though the
share is not very high but being new entrant their growth is significant.



Berger Paints has both very strong backward and forward linkage with the actors in its value
chain. The organization has a fully owned subsidiary named Jenson and Nicholson
Bangladesh Ltd. Berger also has merger with to giant paint companies the Becker for wood
and coal coating solution and the Hempel for marine and fire proofing paint solution. The
company again has strategic alliance with ExxonMobil, Dupont, BASF, Shell etc. for
importing of high quality raw materials. Berger has a strong dealer channel to reach the
customer. The number of direct or exclusive dealers is 1500 and the number of indirect or
non-exclusive dealers is more than 3000.
Figure: Distribution Network of Berger Paints Bangladesh Ltd.viii
Berger paints has been socially responsible by doing act like contributing the well-being of
autistic children. The company has proved itself to be environment friendly by introducing
green product name Berger Breath Easy. The firm also sponsor different educational institute
e.g. BUET Architecture Department to arrange constructive competitions. But the political
instability like blockades, strikes etc. has brought threat to the company regarding its
distribution of products from factory to sales depots and sales depots to the dealers.





Berger Paints has its global presence with current operation in more than 50 countries yet
Berger Paints Bangladesh Ltd. has full local discretion of its own operation leading the
company take full advantage of the market. The companys value chain comprise of
international actors like Becker, Hempel and several others for importing high quality raw
materials and producing specialized and differentiated paints.


As is already discussed Berger Paints Bangladesh Ltd. is yet the most technology advanced
paint companies in the industry. The company is using latest technology in paint production
and enterprise solution SAP. The company has been very innovating by continuously
bringing new or differentiated products. And recently the company is working or
environment friendly and technologically improved product name green products, fire
proofing products etc.
Berger has been executing some effective strategies to hold leading position in the market
with continuous increase in market share amid the aggressive marketing efforts by the
competitor and substitute products. Few strategies include the following
3.1 Targeting Strategy
Berger has chosen target markets to co-operate in the interest of overall company in a socially
responsible manner. The total size of the paint industry in Bangladesh is estimated at taka
4.29-4.44billion in 2005. The paint industry can be divided into three segments. These are a)
Decorative. b) Industrial. c) Marine. The decorative segments of the market accounts for a
whopping 83.42% of the total industry, whereas industrial, marine segments contribute
12.17%, and 4.41%, respectively.
The major focus of the companies, operating in the industry, is towards decorative segment.
Only a few of the companies have their product offerings in industrial and marine segment.
All the competitors are concentrating their best efforts for carving out their share of the pie in
the decorative segment of the industry. The enamel segment accounts for around 50% of the
decorative paint market, by value, and approximately 40% by volume. Berger market share in
the synthetic enamel category increasing gradually. As this product is accountable for the
major share of the paint market, its continued success will result in significant growth of the
overall market share of the company. This will also enable Berger to battle its competitors by
weakening then in such a strategically important segment.

Berger designs the companys offerings and image to occupy distinctive place in the mind of
the target market. For positioning in the mind of the target market Berger has differentiated
its variables.


Product differentiation on the basis of size, shape, color shade, convenient size of their paint
container, plastic container and so on. Its also maintain its better quality product, finest color
shade, durable & long lasting paint, and they are also responsible to the customer wants and


Every company in the service market differentiates their service to be the best service
company and capturing most of the market share. Berger differentiates its service comparing
to other competitors. Ordering ease of Berger refers to how easy it is for the customer to
place an order to the company. So they introduce the online service in case of order. So the
customer can order and receive its product without going to market. With a view to bolstering
consumer satisfaction, Berger Paints Bangladesh Limited has introduced Berger Home
Dcor on June 15, 2002 through which one can get an array of services pertaining to


Berger always gains a strong competitive advantage through having better trained people. To
recruit personnel employees who have ability and updated knowledge. Berger always doing
courtesy and friendly relation to the customers. They are more reliable and responsiveness to
personnel differentiation and the most importantly communicating ability of Berger Paints
(BD) Ltd. successful.


Berger is committed to main extinction the harmonious balance of our eco system and
therefore constantly seeks ways to manufacture and produce products in an ecofriendly
manner. From its inception, Berger has played a pioneering role in introducing new paint and
paint technologies to the Bangladeshi market; Bergers efforts have established it as the most
esteemed paint company of the country and have contributed significantly in its growth.
Berger intends to continue its ceaseless endeavors in the future years, and it is expected that
such efforts will contribute immensely to the sustained and growing success of the companys


Berger has always been the most technology oriented Paint Company of the country. It has
the most modern state-of-the-art production facilities installed in its Dhaka factory. Its
Research and Development (R&D) and Quality Control (QC) departments are equipped with
the best technologies in this country. Such technolo0gy driven strategy will definitely assist
the future business growth of the company.
3.3.2 MARKET


Berger has always tried to respond promptly to market feedback. AS a result, Berger enjoys
competitive advantage over its competitors. It is expected that Berger will enjoy more growth
in the future, if it continues to be so be market responsive.


Berger is the only company of this country which contributes all types of paint in our paint
industry. And among those, other then powder coating paint rest all are produced in their
factory located in Chittagong a Dhaka. In the lower end of the segmented market, so far they
did not try to bring variety. But in the upper end they introduced some specialized brand with
added attributes. Satisfy the different customers they divided their market into three
Price strategy of Berger can be spelled out in following manner. Provide high quality
product at highly affordable price. At some places Berger had to change higher price than
that of their competitor due to strict Compliance of quality and government financial law.
Beside this Berger also consider Commissions / Discount to Dealers and Retailers while
preparing the pricing strategy. Berger supplies their product to Dealers through some
establishes discount basis. They also offer some special commission and discount rate for
their premium Dealers, who can cross the benchmark, set by Berger. Basing on these Berger
has three Pricing strategy.


With its strong distribution network, Berger has reached almost every corner of Bangladesh.
Their nationwide dealer network, supported by seven sales depots strategically located in
Dhaka, Chittagong, Rajshahi, khulna, Bogra, Sylhet and Comilla has an unmatched capability
of cater to the needs of the consumers of paints products, almost everywhere in Bangladesh


Berger generates different slogans with different massages to promote their various products.
Paint your Imagination is Bergers unique selling proposition. In their promotional
activities they also promote different messages for their different products, so that become

familiar to their customer. And over the last few years Berger uses these messages as one of
the effective promotional tools.ix



From the Triple Triangle Framework analysis it can easily be seen that Berger Paints
Bangladesh Limited is clearly a market leader in paint industry and they have expanded their
business globally. Berger is a market leader in Bangladesh for its quality and evolving
marketing strategy but from the analysis it is clear that there are some weak links in their
strategy which may be a reason for competitors gaining of market share. There is another
problem related to advertising strategy where Elite paints and Asian paints are using sample,
discount and direct advertising to influence land owners to use their paint x. Now that paint
industry is gradually becoming immensely competitive with the entrance of big international
player. Question has arisen whether Berger will be able continue as the market leader in the
industry? What competitive strategy should Berger follow to hold its leading position as well
as continue to grow? Will Berger be defensive or offensive to the competitors to hold them
back from grabbing market share from the company?
In spite of these problems and dilemma Berger paints is smartly maintaining its dominance in
paint industry but if able to solve the above mentioned problems they can easily turn into a
Superior Brand in paint industry and can be more dominant in terms of competing with



End Notes


ii Berger Paints Bangladesh Limtied, Annual Report 2014
iii Berger Paints Bangladesh Limtied, Annual Report 2014
iv Berger Paints Bangladesh Limtied, Annual Report 2014
v Berger Paints Bangladesh Limtied, Annual Report 2014
vi Company Analysis of Berger Paints Bangladesh Limited (2015), Rezwana Nasreen, International
Leasing Securities Ltd.
vii Marketing Strategies of Berger Paints Bangladesh Ltd., Pinak Pani Mukharji, (2014), BRAC
viii Internship report on A Research to Explore Satisfaction Level of Customer in the Context of
Berger Paint Color Bank, Bangladesh, Ahtaer Rahman (2012), Independent University Bangladesh
ix A Case Study on Analyzing the Strategy of Berger Paints for 2015, Ahsan Habib & four others
(2014), United International University
x Internship report on Treasure Management of Berger Paints Bangladesh Ltd., Faisal Mahmud
(2014), BRAC University