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Report

On

Recruitment and Selection of Berger


Paints Bangladesh Limited

Group - 05
MBA Program, 2015 (16th Batch)

Supervisor
Sabnam Jahan
Assistant Professor

Department of Management
Faculty of Business Studies
University of Dhaka

April 30, 2015

Letter of Transmittal
April 30,2015

Sabnam Jahan
Assistant Professor
Department of Management
University of Dhaka
Dhaka-1000
Subject: Submission of the Report on Recruitment and Selection of Berger Paints
Bangladesh Limited.

Dear Madam,
We consider our self very fortunate to have had the opportunity to prepare a report under
your valuable guidance.
Your teachings of Human Resource Management in Bangladesh helped us in our study
Recruitment and Selection of Berger Paints Bangladesh Limited. was very appropriate.
This study enabled us to gain new insights about how theoretical knowledge acquired in the
classrooms helps us to understand the practical field Human Resource management in
multinational organizations.
We would like to express my sincere appreciation and gratitude to you for giving us the
opportunity to show our gained knowledge while preparing of this report.
We shall be glad to answer any queries you may have in this matter.
Sincerely yours,
______________________________
Group 5
Roll: 209, 211, 217, 272
Department of Management
University of Dhaka

Acknowledgement
An internship program is a very important and essential means for acquiring practical
knowledge because the knowledge of a student does not get fulfilled until he acquires
knowledge theoretically and practically. At the very beginning, I obviously express my
deepest thanks and appreciation to my honorable faculty Assistant Professor Sabnam Jahan,
Department of Management, for giving his valuable time, guidelines and advice in
preparation of my r report on Recruitment and Selection of Berger Paints in Bangladesh.
In this connection, I would like to thank Abul Khair Sabbir (Manager-Market Research and
Consumer Insight) and other executives of Berger Paints Bangladesh Limited for their
suggestions and comments which inspired me greatly to prepare the report successfully and
their heartiest co-operation which makes my destination easier.
Finally, we convey our sincere thanks to my friends and family who inspire in different ways
to complete the report and the course as well.
Roll No: 209, 211, 217 & 272
Department of Management , 16th batch
University of Dhaka

Declaration
I declare that the internship report entitled Marketing Strategy of Berger Paints Bangladesh
Limited: A Critical Analysis embodies the result of my own work, perused under the
supervision of M. A. Akkas, Professor of Management Studies, University of Dhaka.
I further affirm that this internship report is original. Materials of work found by other
researcher are mentioned by reference. This report, neither in whole nor in part, has been
previously submitted for any degree.

_____________________
Signature of the student

Certificate of Supervisor

We have pleasure to certify that the entitled Recruitment and Selection of Berger Paints

Bangladesh Limited:, ID No. 209, 211, 217 & 272, student of MBA program of Department of
Management , University of Dhaka, is the candidates own achievement and is not a conjoint
work.
We also certify that we have gone through the draft report thoroughly and found it satisfactory for
submission to the Department of Management in fulfillment of the requirement for the degree of
MBA (Management ).

_________________________
Assistant Professor Sabnam Jahan
Department of Management
University of Dhaka

Executive Summary

Now Berger Paints BD Ltd. (BPBL) is one of the major market share capturer. They have
some excellent strategies, which I have discussed in this report. Their strength is more than
their weakness. For this reason Berger Paints BD Ltd. (BPBL) is one of the best companies
in Bangladesh. The paper is an attempt to observe how Berger Paints Bangladesh Limited is
influencing the urbanization pattern by their effective marketing strategy. The report is
categorized in six different chapters. In chapter one introduction, purpose, objective, scope,
limitations are discussed. Chapter two narrates methodology. Chapter three describes the
company profile. Chapter four concentrates on the theoretical framework of marketing
strategy. Chapter five describes the marketing strategy of BPBL. In formulating strategies the
company first makes SWOT analysis on the basis of mission & objective. They make
strategies depending on STP (Segmentation, Target market selection & positioning). So first
it segments its market on the year basis and then product basis. Then they select their target
market. After selecting market they position its product by product differentiation, service
differentiation and image differentiation. They price their product as they could capture most
of the market share and better quality product at reasonable price. Finally conclusion &
recommendations are given in the chapter six. The main objectives of the report are
identifying the marketing strategy of Berger Paints Bangladesh Limited.

Abbreviations

BPBL

Berger Paints Bangladesh Limited.

Table of Contents

Chapters
Particulars
Chapter - 1 Introduction

Pages
1-5

1.1 Background of the study


1.2 Significance and rationale of the study
1.3 Objectives of the study
1.4 Scope of the study
1.5 Limitations of the study

2
3-4
5
5

Chapter -2

Methodology of the Study

6-8

Chapter-3

Organizational Profile

9-46

3.1 Historical Background


3.2 Berger in Bangladesh
3.3 Company Profile
3.4 Nature of Business
3.5 BPBL at a glance
3.6 Vision and Mission of BPBL as a group
3.7 Spirit, Corporate objectives, Strategy of Berger
3.8 Marketing Objective of BPBL
3.9 Operations of BPBL
3.10 Organizational Structure of BPBL
3.11 Departments of Berger Paints Bangladesh Limited
3.11.1 Human resource and Administration
3.11.2 Financial Accounting and Treasury
3.11.3 Information Technology
3.11.4 Research and Development
3.11.5 Marketing Department
3.11.6 Sales Department

15
16
17
17
18
18
19
19
20
20
21
22-23
24
25-26

27-42

3.11.6.2 Sub-departments of Sales

28
29
30
39

Department
3.11.6.3 Depots of Sales Department

40

3.11.6.1 Functions of Sales Department

3.11.7 Financial Department


3.11.8 Supply Chain Department
3.11.9 Internal Audit
3.11.9.1 The Mission of the Internal Audit
Department
3.11.9.2 The Prime Objective of Internal
Audit Department
3.11.10 Budget and Cost Control

43-104
52
44
46
47

3.12 Different Products of Berger Paints Bangladesh


Limited
3.12.1 Berger Decorative
3.12.1.1 Top coat finishes
3.12.1.2 Color Bank of BPBL
3.12.1.3 Premier/Thinner/Undercoat

3.12.2 Berger Industrial


3.12.2.1 Industrial Finishes
3.12.2.2 High Productive Coatings
3.12.2.3 Industrial Premiers

3.12.3 Berger Marine


3.12.4 Berger Illusions
3.12.5 Other Products of BPBL

3.13 Major Competitors and the Company


Performance
3.14 Competitive Market Positioning
3.15 Berger Market Share Trend
3.16 Global Coverage
3.16.1 Regional Groups
3.17 Profitability Position of Berger Paint Bangladesh
Limited
3.18 Achievement of Berger Paints Bangladesh Limited
Chapter
Four

Theoretical Framework
4.0 Theoretical Framework

Chapter Five

Marketing Strategy Of Berger Paints


Bangladesh Limited: A Critical Analysis.
5.1 Marketing Process
5.1.1 Marketing Opportunities
5.1.2 Segmentation and Targeting Market
5.1.3 Developing Marketing Mix

49
50
50
52
54
55
58
59
63
65
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69
70
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76
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81
88

5.1.3.1 Product
5.1.3.2 Place

91-93

5.1.3.3 Pricing
5.1.3.3.1 Different Pricing approach of
Berger
5.1.3.3.2 Pricing Strategies of Berger

94-100

5.1.3.3.3 Price adjustments strategies of


Berger
5.1.3.3.4 Changes in Pricing

101-105

5.1.3.4 promotion

102
105

5.1.3.4.1 Advertising
5.1.3.4.2 Sales Promotion

106-113

5.1.3.4.3 Public Relation

107
108-109
110-113

5.1.3.4.4 Publicity
5.1.3.4.5 Personal Selling

5.1.4 Managing Marketing Efforts

5.2 Marketing Strategies of Berger


5.2.1 Segmentation Strategies of Berger
5.2.2 Target Market Selection Strategies
5.2.3 Positioning Strategies
5.2.3.1 Product Differentiation
5.2.3.2 Service Differentiation
5.2.3.3 Personnel Differentiation
5.2.3.4 Image Differentiation
5.2.4 Pricing Strategies
5.3 Market Share analysis
5.4 Implementation of Marketing Strategies by BPBL
5.4.1 Market Skimming
5.4.2 Market Penetration
5.5 Counter Strategies by Berger
Chapter six

Conclusion and Recommendations


6.1 Conclusion
6.2 Recommendations

References

Chapter One
Introduction of the report

The businesses are ever changing so are the way of their characteristics. The changing
scenario presents us new techniques and methods of business as well as their employment
strategies. The core of business is to market the product that will be attracted by the
consumers and also the product will satisfy the consumers needs. Human resource efforts are
vital for any business that is the combination of various factors affecting the real market
scenario. The changing environment is creating new issues that must be considered for
employing a person. In this dynamic business world the scenario of business aspect changes
so rapidly that one poor decision in recruitment and selection process could cause the firm to
lose its very important issue which is resources. We have chosen to conduct the study in
BERGER paints Bangladesh Limited because they are the leading firm in the painting
industry occupying the highest market share and possession of efficient and quality human
resources.

1.1 Background of the study


This report has been prepared as a requirement of the Masters of Business Administration
(MBA) program under Department of Management, University of Dhaka. We have prepared
this report by obtaining information from this company which elaborates the total recruitment
and selection process starting recruitment policy to selection. It also includes a brief profile
of the company, product categories and distribution channel of the company. Each of the
segments has been stated in a manner that will be sufficient to have an idea about recruitment
and selection process followed by Berger Paints Bangladesh Limited.

1.2 Significance and Rationale of the Study


Human resource management and recruitment and selection process is one of the burning
issues in current business world. The success of every company is significantly dependent on
these activities. As a graduate from business school we have learned a lot of theoretical
knowledge about human resource management. The textbook ideas are not enough to gain
the actual things, so this study will certainly adjust us with the situation prevailing in the field
in respect to management in the business world. This study which is made for the course

requirement will represent a lot about the real practical scenario recruitment and selection
practices performed by Berger Paints Bangladesh Limited.

1.3 Objectives of the Study


The objective of the report is to get a definite idea about how a company develops and
maintains their recruitment and selection issues. As the scenario of recruitment and selection
process is changing day-by-day, new recruitment and selection process and techniques are
implemented.
But other objectives of the report are as follows:

To know the background of Berger Paints Bangladesh Limited ;


To understand the overall

recruitment and selection process of

Berger Paints

Bangladesh Limited ;
To identify the problems of recruitment and selection of Berger Paints Bangladesh
Ltd.
To recommend suggestions for the successful recruitment and selection of Berger
Paints Bangladesh Ltd.

1.4 Scope of the study


This report mainly focuses on the recruitment and selection activities of HR Department of
Berger Paints of Bangladesh Ltd. Different observations about overall recruitment selection
strategies have been discussed in this report. This report has covered almost all the strategy of
Berger Paints Bangladesh ltd for recruitment and selection of its human resources. It includes
a brief profile of the company. To know the strategy of the company it also includes the
theoretical frame work of recruitment and selection to understand the difference between
literature and practical procedure.

1.5 Limitations of the report


Many factors affected us on our way of making the report. We had much personal limitations
for which we failed to prepare a most updated data. Lacks of sufficient documents made us
unsuccessful in making the term paper highly informative. Limitations of the report are:

Six Weeks are not enough to understand recruitment and selection process.
Limited access for to collect information due to confidentiality.
Data collected from secondary sources is not verified.

It was not possible to collect some desired information due to the


confidentiality of their business.

Find out and contact with existing employees for the study was also a
limitation as we could not get enough of them.

Difficulty in accessing latest data of interpersonal operations.

Chapter Two
Research Design

The study requires systematic procedures from selection of the topic to final report
preparation. This report is descriptive one. In this report, two types of sources are used to
collect valid data. To perform the study data sources were identified, collected and presented
in a systematic manner and key points are found out. This overall process of methodology is
given below that has been followed in the study.

2.1 Sources of data


In this report all necessary information to prepare are collected from both sources of data.
These are:
a) Primary Data: This source of data contains information that is collected from the market
initially. Primary data is known as raw data.
b) Secondary Data: This source of data contains all the information that already exists
somewhere.

2.2 Methods of data collection

Primary data is collected from:


Face to face conversion with employees.
Observation.

Secondary data comes from:


Website of Berger Paints Bangladesh Ltd.
Organizational brochures.
Annual Report of BPBD.
Berger Paints Bangladesh Limited Publications & Prospectus.

2.4 Overall procedure in brief


The total methodology of the report is showing below for better clarity and easier
understanding through flowchart construction:

Planning

Activities

Application

Assessment and recommendation


i. Brain Storming
Collecting data from internet, annual report, etc.
ii. Discussion
iii. Topic selection

Figure: Methodology Process

Chapter Three
Company profile

3.1 Historical Background


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. Today the names "Berger" and "Lewis Berger" are synonymous with color. Berger
Paints continues to be inspired by the creation and innovation of Mr. Lewis Berger, who
through his marvelous shades, had offered people a chance to transform their homes through
the power of imagination. At Berger it believes in taking paints to the level of fine art
enriched by the imagination of Lewis Berger since 1760. In 1760, a young color chemist
"Lewis Berger" developed a method for manufacturing Prussian blue using a secret process
that every designer and householder coveted. His business was nurtured by his descendants
and others till it merged with Jenson and Nicholson Ltd. to form Berger, Jenson & Nicholson
Limited.

3.2 Berger in Bangladesh


Berger paints Bangladesh Limited is not only a company with reputation but is a name to the
dynamic industry which has history and the pride to be the best at what it does. Berger Paints
Bangladesh Limited often referred to as BPBL is considered to be the market leader in
Bangladesh. BPBL gives a comprehensive and sustainable painting solution and providing
the best customer support. It connects consumers to technology through specialized services.
It has a strong distribution Networking, Berger has reached almost every corner of
Bangladesh. Whether it is world-class range or durability, BERGER is always ready to
answer to all weather conditions. It strives for the improvement of Quality of Work Life a
(QWL) with competitive advantage. Berger Paints Bangladesh Limited is basically managed

by its Finance, Supply Chain, IT, Budget, Marketing & Sales departments. The
manufacturing units at Dhaka and Chittagong are also the strategic advantages that it has
because of their location. Bergers corporate strategy is to build larger market share through
providing quality and speedy service. Its primary focus is to strengthen its current position by
provided value added customer service. BPBL is committed to get highest consumer
satisfaction. BPBL is committed to express itself as an ethical and socially responsible
company by producing environment friendly paints, in an environment friendly production
plants. BPBL is made up of well experienced, well trained, highly educated officials and very
dedicated and experienced employees along with the stakeholders. BPBL is nothing without
its valued customers. So, to serve the best to the customers has been on top of all priorities.
The major milestones of Berger Paints in Bangladesh are given below:

1950: Berger commenced the paint business in the Indian sub-continent from
1950. Initially the paints were first imported from Berger UK and later from

Berger Pakistan.
1970: In 1970, Berger Paints Bangladesh Limited (BPBL), formerly known
as Jenson & Nicholson, had set up its 1st paint factory at Kalurghat,
Chittagong. The shareholders were Jenson & Nicholson (J&N), Duncan

Macneil & Co. Limited and Dada Group.


1971: Duncan Macneil subsequently sold their shares to the majority
shareholder J&N Group. The Dada Group's share was ultimately vested with
the Government of the Peoples Republic of Bangladesh after the
independence of the country in 1971.
1980:
The name of the company was changed from J&N (Bangladesh) Limited to
Berger Paints Bangladesh Limited.
1990: The company has established a subsidiary company named Jenson &
Nicholson (Bangladesh) Limited. The core business of the subsidiary was
trading and indenting and its 100% share is owned by Berger.
1995: Establishment of Double Tight Can Manufacturing Plant at Nasirabad,
Chittagong under the umbrella of subsidiary company Jenson & Nicholson
(Bangladesh) Limited.
1999: Establishment of Most Modern State-of-the-Art Paint Production Plant
at Savar, Dhaka.

2000: In August 2000, J&N Investment (Asia) Limited UK, the majority
shareholder of the company purchased the government shareholdings.
2002: Completion of the construction work of Corporate Office building on
own land at Dhaka.
2003: Relocation of Corporate Office from Chittagong to Dhaka.
2004: Establishment of Powder Coating Plant at Savar, Dhaka.
2005: In December 2005, the company got listed with Dhaka Stock Exchange
(DSE) and Chittagong Stock Exchange (CSE).
2006: Establishment of Emulsion Plant at Savar, Dhaka.
2009: Implementation of SAP across the company.
2011: Berger Paints Bangladesh Limited signed a tri-party deal with M/S
Mitali Stone (Private) Limited and leading real estate developer Sanmar
Properties.
Berger Paints Bangladesh Limited, the absolute leader and pioneer in
introducing technology and import substitute products, has joined hands with
Becker Industrial Coatings Holding AB, Sweden, a global giant in coil
coating.
2012: Berger Paints has been awarded as the 'Best Brand' in the paint category
of Bangladesh.
BPBL recently introduced 3 international standard products.
Received top VAT payer awards.
2013: Berger Paints, the absolute market leader in Bangladesh paints industry,
has joined hands with HEMPEL, a global leader in marine coatings, to offer
the most advanced marine solutions in Bangladesh market.
Berger Paints Bangladesh Limited has been honored with the ICMAB Best
Corporate Performance Award 2012 for its outstanding accomplishment in
financial and management excellence.
2014: Berger Paints has been awarded the "Best Paint Brand" in Paints
category for the 4th time consecutively in the 6th Best Brand Award.
2015: Berger Paints Bangladesh Limited has been honored with the ICMAB
(The Institute of Cost and Management Accountants of Bangladesh) Best
Corporate Award 2014 for its outstanding accomplishment in financial and
management excellence.

3.3 Company Profile:

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.
With an ever-evolving profile and rich history, Berger Paints started its business in
Bangladesh since independence. Berger is one of the oldest names in the paint industry.
Berger Paints turns ones dreams into colorful reality. It is a leader in paints, offering its
customers a variety of innovative painting solutions, weather it is decorative or industrial.
Whether it is ones home or office, shop or factory, interiors or exteriors, metal, wood, plastic
or any other surface - it has a paint solution for it.
Berger has been involved in paint business since 1950 in Bangladesh when paints were first
imported from Berger UK and then from Berger Pakistan. In 1970, Berger Paints Bangladesh
Limited (BPBL) erstwhile Jenson & Nicholson had set up its paint factory in Chittagong at
an estimated investment of TK.4 million. The shareholders were Jenson & Nicholson (J& N),
Duncan Macneil & Co Ltd and Dada Group. The name of the company was changed from
J&N (Bangladesh) Limited to Berger Paints Bangladesh Limited on 1st January 1980. In
August2000, J& N investment (Asia) Ltd purchased Government shareholding. Now, Berger
Paints Bangladesh Limited is 100% owned by J& N Investment (Asia) Limited, UK.
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
painting. Apart from business, Berger Paints has added another dimension to its social
responsibilities by contributing to the well being 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
University.

3.4 Nature of business:

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.

3.5 Berger Paints Bangladesh Limited at a glance:

Berger Paints is operating in Bangladesh since 1950s. BPBLs Corporate Office is located in
Uttara, Dhaka. It has 2 Factories one at Dhaka and the other one at Chittagong. Berger has
established 8 strategically located Sales Offices throughout the whole country. A wide
distribution channel reaches the whole country with a network of almost 1000 dealers. The
table will give us a clear idea about the company in brief:

1.

Origin

: United Kingdom

2.

Registered Office

: 43/3, Chatteswari Road


Chittagong 4000, Bangladesh.
Email: bergerbd@spnetctg.com
Web: http//www.bergerbd.com

3.

Corporate Headquarter

: Berger House
Plot 8, Road No.-2
Uttara Sector 3, Uttara Model Town
Email: info@bergerbd.com
Web: http//www.bergerbd.com

4.

Factory

: Dhaka Factory - Nabinagar,


Chittagong Factory 27 D, FIDC Road
Kalurghat, Chittagong

5.

Plant

: Powder coating plant Nabinagar, Savar


: Emulsion plant - Nabinagar, Savar,

6.

Home dcor

: Bonani, Dhaka
: Email: dcor@bergerbd.com

7.

Sales office

: Dhaka 3/3-D Bijoynagar Kakrail


Chittagong - 43/3, Chatteswari road
Sylhet H # 32, Block A, Shahjalal
Upashahar

3.6 Vision and Mission of Berger as a Group:

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:
The vision of Berger is the following

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:
Organizations mission refers to managements customized answer to the
question what is the business of the company and what will it be. A mission
statement broadly outlines the organizations future direction and serves as a
guiding concept for what the organization is to do and to become. The mission
of Berger in Bangladesh is the following:

To increase the turnover by 100% in the next five years.


To remain socially committed ethical company.

3.7 Spirit, Corporate Objectives & Strategy of Berger:


Spirit
Our customers are our partners, our People are our strength, our shareholders are our foundations,
and we proudly bring inspirations, strength and color to communities, though affiliations with our
customers.
Corporate objectives
Our aim is to add value to life, to outperform the peers in terms of longevity, customer
services, revenue growth, earnings and cash generation. We will be the employer of choice
for all existing and future employees.
Strategy
Our strategy is to build long term- partnership with the customer/consumer. With their
support we aim to maximize the potential of our business-through a combinations of
enhanced quality of product, service, creative marketing, competitive price, and cost
efficiency.
Quality Policy of Berger
Berger Paints Bangladesh Limited is committed to achieving total consumer satisfaction.

Commit to project ourselves as an ethical and socially responsible company.

Commit to continue as the market leader through consistent sales growth, increasing
productivity and developing new products befitting consumer needs.

Ensure continual improvement in our operations through utilization of our highly


professional and dedicated team, proper process management and participation of our
stakeholders.

Set measurable targets at appropriate stages and shall continuously monitor them.

Berger Paints Bangladesh Limited is committed to provide quality product and


service.

3.9 Operations of BPBL:


There are a large number of multi-national companies operating their businesses in
Bangladesh. Berger Paints Bangladesh Limited is one of them. In fact, it is one of the leading
multi-national companies in our country. Main functions of BPBL are given below:

BPBL gives comprehensive and sustainable painting solution.


It provides best customer support.
Through specialized services, BPBL connects consumers to technology.
To reach the customers Berger continuously work to establish strong distribution

Network..
World-class range and durability, BERGER is always ready to answer to all

weather conditions.
Berger is striving for the improvement of Quality of Work Life (QWL) with
competitive advantage.

3.10 Organizational hierarchy of BPBL:


It is consisted of almost 413 employees of whom about Permanent 389(Staff 131, Officer
123, Higher level 135 and others are outsourcing workers, general workers and the rest are
White Collar employees), Internal contract 24. These employees are working in different
factories and depots of the company.

Fig: Organizational Structure of BPBL.

3.11 Departments of Berger Paints Bangladesh Ltd.


Functions, responsibilities & other necessary aspects of major departments of the company are
described below:
3.11.1 Human Resources & Administration
Human Resources & Administration Department of Berger Paints Bangladesh Limited provides
overall policy direction on Human Resources & Administration management issues and
administrative functions related to management of employees. Their functions comprises of:
R
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Fig: Main task of HR dept.


They believe, it is people, not technology who create the company. Thus Human Resources &
Administration Department is concern about the work given below:

Hiring, engaging and retaining talented employees.


Achieving a balance between the corporate goals and objectives.
Ensuring the satisfaction and welfare of our employees.
Fostering a positive working relationship for all the employees in Berger.
Establishing discipline in the organization.
Ensuring people development and equity.
Motivating employees to meet job satisfaction.
Ensuring a strong collective commitment to teamwork and a strong personal commitment
to the Department's mission and goals.

3.11.2 Financial Accounting & Treasury


This department is responsible to deal with all the financial transactions complying all
policies and practices of the Company and generate required number of external and internal
reports for all stakeholders.
Core area of work of this department is gives below:

Zero tolerance of treasury management,


Efficient receivable and payable management,
Minimizing the corporate risk is our
Managing and controlling future cash flows
Optimal use of all available resources
Efficient and effective management and control of various risks i.e. market risk, credit
risk and liquidity risk.

Handling all these areas, ensure us a better Working capital management and efficient
financial management on day to day basis. Minimizing risk and maximizing net
return of all stakeholders are the key focus of BPBL Finance and Treasury team by
ensuring good corporate governance and practice.

3.11.3 Information Technology

In today's world, companies with effective 'information technology' are achieving


their business goals with ease. Berger is an IT driven company. Berger Paints
Bangladesh Limited employs a number of highly technically skilled professional to
keep up with the rapidly growing need for Information Technology They adamantly
believe that information technology is of no use if it is not informative. Developing
innovative 'info tech' not only helps them to attain their business goals but also helps
them in serving their customers better. Through their strong nationwide infrastructure
for communication and data transfer, BPBL is able to remit and process information
with a click of a button with the help of
W

o r l d

D a t a

in

r e n o w

n e d

C e n t e r w

h o u s e

it h

E R P

s y s t e m

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h a r d w

D e v e lo p m

a r e

e n t T e a m

a n d

S y s t e m

A d m

in is t r a t o r s

3.11.4 Research & Development


The Research and Development wing at Berger Paints boasts of housing the best
chemists in the country. The highly professionally trained scientists receive the best
training from famous paint making houses, use of modern laboratories with latest and
precision equipment, work jointly with researchers of other organizations, and play
significant role in developing cost effective formula. The R&D unit works relentless
with the objective of
Improving product quality,
Redefining/ re-engineering processes for ensuring higher productivity,
Minimizing wastes and complying with environmental regulations,

Development of new products and


Selection of new sources of materials.
These tasks tie up the R&D efforts with Marketing and Supply Chain activities in the
organization.
3.11.5 Marketing Department
Until 1990, business practice of the Berger Paints Bangladesh Ltd. was very much
conservative in terms of market presence. In 1993, marketing department started. Thereafter
Berger has been growing very rapidly in terms of market share and sales growth. In 1994, just
after the year of launching marketing department, sales growth was 34%. Berger is enjoying 55%
share of the total paint market and established itself as the champion of the market through its
commitment, offering the most quality paint and providing the maximum value for customers
money, to the customers.

The major activities of marketing department are as follow:

PEp r s r o t i
mem p oa tt
iia oo r nn i /
Cno f og
msM a ma l e
urs k n e i c
agt i tr n io o
nwg t h
M iix
x

p r Ee P s p r t o a i m m r i a no t t g i i o o nM n / o a C f r o k s m a e lm t e i s n u n g i r c Mo a w it x i t o h n M i x

Figure: Major activities of Marketing department of BPBL.

3.11.6 Sales Department

Sales department is consists of Decorative and Industrial & Marine. It mainly deals with

preparing National Sales Budget detailing sales value, volume & growth and translates it into
monthly and half-yearly budget. Sales department express the national sales budget in terms of
Sales Area, Zone, and Product & Shades of Color.

3.11.7 Financial Department

Financial Controller is responsible for all the activities of this section. This section handles

absolute debtors (customer related) related all activities which are done through:

Bill Payment System.


Private Accounts Section.
Costing Section.
3.11.8 Supply Chain Department
Main responsibility of this department is to collect raw materials at right time from right
vendors at right price and at right quantity. Moreover, this department also purchases required
machinery and other stationery necessary for the organization.

Functions of Supply Chain Department

This department continuously works to identify new sources of raw materials & machinery.

They communicate with the sources and collect information regarding price, quality, terms
and conditions of payment & other relevant matters about raw materials and machinery.

They buy raw materials, machinery & other necessary items from both internal (domestic)
and external sources.

This department tries to develop new vendors in areas where they are in disadvantageous
position to gain adequate bargaining power.

They find out substitute raw materials.

Provide support to the Marketing Department in developing container.

Provide new ideas regarding raw materials, packaging, and machinery and help to reduce
cost.

Support R&D to make new formulations.

Buys gift items for marketing department.

Buys shade cards for Marketing Department from India & Singapore.

Collects color bank materials from Italy.


The whole function of supply chain department can be summarized into three parts
which is shown by a diagram:

C
o

af
ot
mr
gg

e
t
R

mrt
vec
ee

a
e
i

i c

hr
gt
pht

a
w
M

i
i
i
t
r
a

d
o
r
s
Fig: Main task of Supply Chain Department.

3.11.9 Internal Audit

Berger Paints Bangladesh Limited regularly conducts internal audit for all of its
business units. These audits cover production facilities, research and development
activities, selling and marketing activities, supply chain functions, human resources
and administration, financial management systems, information systems, sales centers
and dcor service activities. A team of auditors conduct the internal audit in two
phases.

The first phase comprises of a periodic review of all the business units.

The second phase involves the assessment of business units that require immediate
attention to measure effectiveness, efficiency and economy.

3.11.9.1 The mission of the internal audit department


The mission of the internal audit department is to ensure that the BPBL's operations
are conducted according to the highest standards by providing an independent,
objective assurance function and by advising on the best business practices. Through
a systematic and disciplined approach, the internal audit department helps the
company to accomplish its objectives by evaluating and improving the effectiveness
of risk management, control and governance processes.

3.11.9.2 The prime objective of internal audit department


The prime objective of internal audit department is to examine and evaluate whether
the BPBL's frame work of risk management, control, and governance processes, is
adequate and functioning properly. In addition, the objectives of internal audit
department

include

advising

and

recommending

senior

management

for

improvements in internal control and risk management systems.


3.11.10 Budget and cost control
BPBL has its Budget and Cost Control (BNCC) function to undertake the financial
planning and operational monitoring across the company. A complete set of MIS
providing insightful analysis on operations in both a planning environment as well as
actual transactions is generated to support management .Control and monitoring
extends to the co ordination of the actions planned on the basis of the review of the
MIS in order to support the functional departments to bring the desired result.
Planning function is operated for annual and quarterly timeframe and also at each

business change scenario to reflect the change in financial performance compared to


the annual projection. The planning function includes feasibility study of the new
projects under the company business diversification program.
A fully fledged monitoring on the operation on a monthly time frame is operated
under the BNCC function. Monitoring function is sometimes exercised as and when
required basis in addition to the monthly routine.

3.12 Different products of Berger Paints Bangladesh Ltd.

Production of paints and coatings is the core business of Berger. Berger produce a
wide range of paints including decorative/architectural paints, industrial coatings,
marine paints and powder coatings. Berger paints operate in three major segments of
the paint industry. These are:

Decorative.

Industrial.

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.

5
6
7
8

Figure: Segments of BPBLs Products.

3.12.1 Berger Decorative:


9

Berger Decorative is the major revenue earning business area of Berger Paint
Bangladesh Limited. This business mainly targets household segment. Products are
being offered to the consumers through a dealer network. Products fulfill the aesthetic
value of the consumers. The objective is to beautify the surfaces with protection from
corrosion and erosion. Premium emulsions, regular acrylic emulsions, distempers, first
quality enamels, exterior finishes, textured finishes, automotive refinishes BERGER,
the premier paint company in Bangladesh, have leading brands in all these categories.
BERGER also leads in a vast range of other formulations: Stoving paints, chlororubber based enamels, epoxies, silicone heat resistant paints.

Top coat finishes

Color bank

Premier/
undercoat /thinner

10
11
12

3.12.1.2 Color Bank of BPBL:

13

14

Berger Color Bank has made it possible for their customers to choose the color of their
dreams. It is an innovative computerized color dispensing solution that allows them to
choose from an astounding range of unlimited shades for interior and exterior walls.

15
16
17
18

3.12.2 Berger Industrial:


19

This is a different segment of Bergers wide range of paints mostly used for the
industries both as raw materials and as protective paints for the equipments and
buildings. Berger industrial paint is the economy brand of industrial paints.

20

Very soon an Industrial manual will be available in this site which is a guidebook to the
exhaustive range of products offered from Berger Paints. Soon youll find, as you start
using this book, that Berger has an answer to almost each of your need when it comes
to painting.

Industrial finishes

High productive
coatings

21
22

23

25

24

Industrial premiers
These products give protection to the surfaces in extreme situations like severe
hazardous

environment, high temperature, movement of heavy materials and

machinery etc. Berger use direct marketing approach to promote the Industrial
Coatings. Main customer groups: Garments Factories, Chemical Plants, Fertilizer
Manufacturing Plants, Consumer Durable Manufacturing Plants etc.

3.12.3 Berger Marine


26

Bangladesh is a riverside country with a large no. of big & small rivers and their
tributaries. Moreover, it has a large sea coastal area with Bay of Bengal. Because of this
facility a good proportion of transportation is being done by sea & river. Bay of Bengal is
well known for its fish reserves. Our fishing trawlers & boats are engaged in fishing in
Bay of Bengal. We have two sea-ports and a good no. of river ports. A good no. of ships
are coming to and going out from these seaports. Large no. of sea-coasters, launches,
trawlers, barges, and country boats (powered and unpowered) are plying everyday
through sea-coasts and rivers.

27

So huge activity could be seen in sea-ports, river- ports, dockyards & dry-docks. Besides
there are shore and off-shore constructions, Pontoons, Buoys, oil/gas rigs, underground or
underwater pipelines. To cater to the need of maintaining these vessels & other
constructions Berger has introduced a wide range of Marine paints suitable to withstand
rigorous marine weather both at sea & sea-coasts and also at river & river-ports. Berger is
here to help you choose the kind of protection you need for your belongings. The marring
products of Berger are divided in.

28

Thinners

Premiers

Top Coat Finishes

Special Coatings
Marine market is mostly concentrated in Dhaka and Chittagong. Products are being
offered mainly through direct marketing approach. Dock Yards, Bangladesh Navy,
Passenger Ships are the main user groups.

29

3.12.4 Berger illusions

30

For the first time in Bangladesh, Berger Paints brings Berger illusions, a range of designer
wear for your walls. Berger illusions are not just paint. Its a whole new lifestyle for your

walls. Unique designs with thousands of color options from Berger Color Bank, giving
one an unlimited variety of unique designs to choose from.
31
32

3.12.5 Other Products of BPBL

33
34

Major categories

36

Brand name

35
Synthetic enamel

38

Robbialac synthetic enamel

41

Interior emulsion

40
42

Jhilic synthetic enamel


Robbialac acrylic plastic emulsion

43

Exterior emulsion

45

Weather coat

44
46

Distemper

48

Robbialac distemper SPD

47
49

Cement paint

50

Durocem

51
54

Berger marine

56

Supracoat

37

52
53
55

Adhesive
Powder coatings

57
58
59

Beside these some major products are:


Textile
Brush & rollers
Pre treatment Chemicals

Auto refinishing.
Wood coatings.
BreathEasy.

3.13 Major competitors and the company performance:


In paint world Berger has many competitors those are: Romana, Roxy, Aqua,
Pailac, Asian, Elite and Navana, from those Romana and Roxy are the most. Among
them Romana is the best competitor of BERGER in the field. Although it has many

competitors sales of Berger is highest than other competitors in Bangladesh. In a


market survey it is found that 80% seller believes that Berger is the best paint and they
are earning more profit by selling these types of paint rather than other competitors. By
discussing with the sellers we came to know that Berger provides many facilities than
its competitors those are:
The quality of Berger products is better than its competitors.
It has more than 5000 shades and there is no extra price for those shades or all colors are
of same price.
Its paint has the quality of maximum coverage
Buyers dont need to wait more than (2-4) hours to get those products.
Its photo deer formula protects the wood, iron, bus, and truck for long time than their
competitors.
After use its plastic emulsion can easily be washed by water.
So, most of buyers know that Berger is the name of best quality and they
purchase it on straight re buy basis (purchase the goods based on past buying
satisfaction). Although its price is higher than its competitors buyer has no complain on
Berger.

3.14 Competitive market positioning:


We came to know that the above color producing companies have their
dominance in different district in Bangladesh. Such as ROMANA has dominance in
Dhaka city. PAILAC has in Sylhet. Dhaka and Chittagong are the capture of
MOONSTAR. In order to maintain competitive advantage they actually focus of
national strategy then regional. So they maintain equal strength nationwide.

3.15 BERGER market share trend


During our visit to BERGER, the officials there clearly stated that they are
holding 55% of the total market share in painting industry as a firm. Their theme is
high price company offering better quality service. Though the growth rate of the
industry is 7%-8% but their target is always to get higher growth than the industry and

make it a double digit. Their growth rate is 15%-16%, which may vary year to year, but
after operating for lots of years they are now stabilizing.

3.16 Achievement of Berger Paints Bangladesh Ltd.


Berger Paints Bangladesh Limited has been honored with the ICMAB Best Corporate
Performance Award 2012 for its outstanding accomplishment in financial and
management excellence.
Berger Paints received top VAT payers Award. On 10th July 2012 (VAT DAY) the
National Board of Revenue (NBR) of the Government of Peoples Republic of
Bangladesh has awarded Certificate of Honor to Berger Paints Bangladesh Limited as
the highest Value Added Tax (VAT) payer, both in Dhaka and Chittagong district, in the
manufacturing category for the financial year 2010-2011.
Country's leading paint brand 'Berger' secured its top position in Best Brand Award2011.

Chapter 4
(Theoretical
Framework)

4.0 Theoretical Framework


Different academicians, professionals and analysts have contributed to Human
resource management thought with particular emphasize on recruitment and selection
process of an organization.
According to Dale Yoder recruitment is the process of searching for prospective
employees and stimulating to apply for jobs in the organization. Selection means
choosing a few from those who apply, It is picking up of applicants or candidates
with requisite qualifications and qualities to fill jobs in the organization.
Robbins identifies that the recruitment office or department has to perform variety of
functions, which are listed below:

Job Design and Development


In order to find someone to work for a company, a recruiter first has to know exactly
what the company needs. The first function of recruitment thus is to identify what the
new employee will do and what qualifications and experience is necessary to
complete the work tasks. From the identified points, the company develops a formal
job description and sets a basic pay scale.

Identifying and Seeking Candidates


Once the recruiter knows what type of employee the company needs, he figures out
what segments of the population might be able to do the job and where to recruit. For
instance, if the company needs an information technology professional, then the
recruiter may consider recruiting through information technology programs, journals
or conferences, as well as computer repair stores. He gets the word out about the job
through word of mouth, printed advertisements, website postings and similar tools.

Receiving and Tracking Applicants


Potentially hundreds or even thousands of people can apply for a single job. The
recruiter keeps track of the applications that come in through spreadsheets and
databases. He tries to organize the information so that the candidates who appear
most qualified are easy to find and contact.

Reference and Background Checks


Another function of recruiting is verifying the experience and work ethic of the
candidate. Recruiters do this by contacting the references the candidates list on their
applications. They also do a basic background check to see if the candidate has any
criminal history that might indicate the employee would not be able to perform the
job properly or would pose a risk.

Testing
When the recruiter has narrowed down the pool of applicants, he invites applicants to
take basic tests. These tests are additional tools the company uses to determine if the
applicant has the knowledge and competence necessary to do the job. The test may be
hands-on or oral, but more often it is written.

Interview
When a company has a pool of applicants that are qualified, experienced and who
score well on aptitude tests, managers set up interviews. The interview gives the
managers a chance to get a sense of what each candidate is like and talk with each
applicant in depth about his experience and qualifications. Interviews are very
important because they show the managers how the employee might interact with
others on the job and how professional he can be.

Evaluation and Hiring


The final functions of recruitment are the evaluation of all the information gathered
about the candidates managers still are considering. Based on this data, the managers
think critically about what they have learned about the applicants and what the
company needs. They make a final hiring decision and contact the person they want
to have the job. If the applicant selected accepts the job, then the managers proceed to

negotiate a salary and handle the formal aspects of hiring, such as filling out human
resources paperwork.
Objectives of Recruitment
Recruitment fulfills the following objectives:
1. It reviews the list of objectives of the company and tries to achieve them by
promoting the company in the minds of public.
2. It forecasts how many people will be required in the company.
3. It enables the company to advertise itself and attract talented people.
4. It provides different opportunities to procure human resource.

Factors affecting recruitment:

There are a number of factors that affect recruitment.


These are broadly classified into two categories:
1. Internal Factors
2. External Factors
These are discussed one by one.
1. Internal Factors:

The internal factors also called endogenous factors are the factors within the
organisation that affect recruiting personnel in the organisation. Some of these are
mentioned here.
a. Size of the Organisation:
The size of an organisation affects the recruitment process. Experience suggests that
larger organisations find recruitment less problematic than organisations with smaller
in size.
b. Recruiting Policy:

The recruiting policy of the organisation i.e., recruiting from internal sources (from
own employees) and from external sources (from outside the organisation) also
affects recruitment process. Generally, recruiting through internal sourcing is
preferred, because own employees know the organisation and they can well fit into
the organisations culture.
c. Image of Organisation:
Image of organisation is another internal factor having its influence on the
recruitment process of the organisation. Good image of the organisation earned by a
number of overt and covert actions by management helps attract potential and
competent candidates. Managerial actions like good public relations, rendering public
services like building roads, public parks, hospitals and schools help earn image or
goodwill for the organisation. That is why blue chip companies attract large number
of applications.
d. Image of Job:
Just as image of organisation affects recruitment so does the image of a job also.
Better remuneration and working conditions are considered the characteristics of
good image of a job. Besides, promotion and career development policies of
organisation also attract potential candidates.
2. External Factors:

Like internal factors, there are some factors external to organisation which has their
influence on recruitment process.
Some of these are given below:
a. Demographic Factors:
As demographic factors are intimately related to human beings, i.e., employees, these
have profound influence on recruitment process. Demographic factors include sex,
age, literacy, economic status etc.

b. Labour Market:
Labour market conditions i.e., supply and demand of labour is of particular
importance in affecting recruitment process. For example, if the demand for a specific
skill is high relative to its supply, recruiting employees will involve more efforts. On
the contrary, if supply is more than demand for a particular skill, recruitment will be
relatively easier.
In this context, the observation made by 11PM in regard to labour market in India is
worth citing: The most striking feature in the Indian Labour market is the apparent
abundance of labour yet the right type of labour is not too easy to find.
c. Unemployment Situation:
The rate unemployment is yet another external factor having its influence on the
recruitment process. When the unemployment rate in a given area is high, the
recruitment process tends to be simpler. The reason is not difficult to seek. The
number of applicants is expectedly very high which makes easier to attract the best
qualified applicants. The reverse is also true. With a low rate of unemployment,
recruiting process tends to become difficult.
d. Labour Laws:
There are several labour laws and regulations passed by the Central and State
Governments that govern different types of employment. These cover working
conditions, compensation, retirement benefits, and safety and health of employees in
industrial undertakings.
Child Labour (Prohibition and Regulation) Act, 1986, for example, prohibits
employment of children in certain employments. Similarly, several other acts such as
Employment Exchange (Compulsory Notification of Vacancies) Act, 1959, the
Apprentices Act, 1961; die Factory Act, 1948 and the Mines Act, 1952 deal with
recruitment.

e. Legal Considerations:
Another external factor is legal considerations with regard to employment.
Reservation of jobs for the scheduled castes, scheduled tribes, and other backward
classes (OBCs) is the popular example of such legal consideration. The Supreme
Court of India has given its verdict in favour of 50 per cent of jobs and seats. This is
so in case of admissions in the educational institutions also.

f. Competition
Companies within the same industry are competing for qualified candidates to ensure
future growth. There is competition in the recruiting end of your business just as there
is in selling products. You need to analyze what your competition is offering new
employees, and try to develop a competitive package to lure in the talent that you
need.

Sources of Recruitment
A) Internal Recruitment
B) External Recruitment
Internal Recruitment - is a recruitment which takes place within the concern or
organization. Internal sources of recruitment are readily available to an organization.
Internal sources are primarily three - Transfers, promotions and Re-employment of
ex-employees. Re-employment of ex-employees is one of the internal sources of
recruitment in which employees can be invited and appointed to fill vacancies in the
concern. There are situations when ex-employees provide unsolicited applications
also.
Internal recruitment may lead to increase in employees productivity as their
motivation level increases. It also saves time, money and efforts. But a drawback of
internal recruitment is that it refrains the organization from new blood. Also, not all

the manpower requirements can be met through internal recruitment. Hiring from
outside has to be done.
Internal sources are primarily 3 types:
a. Transfers
b. Promotions (through Internal Job Postings) and
c. Re-employment of ex-employees - Re-employment of ex-employees is one of the
internal sources of recruitment in which employees can be invited and appointed to fill
vacancies in the concern. There are situations when ex-employees provide unsolicited
applications also.
External Recruitment - External sources of recruitment have to be solicited
from outside the organization. External sources are external to a concern. But it
involves lot of time and money. The external sources of recruitment include Employment at factory gate, advertisements, employment exchanges, employment
agencies, educational institutes, labour contractors, recommendations etc.
a. Employment at Factory Level - This a source of external recruitment in which the
applications for vacancies are presented on bulletin boards outside the Factory or at the
Gate. This kind of recruitment is applicable generally where factory workers are to be
appointed. There are people who keep on soliciting jobs from one place to another. These
applicants are called as unsolicited applicants. These types of workers apply on their own
for their job. For this kind of recruitment workers have a tendency to shift from one
factory to another and therefore they are called as badli workers.
b. Advertisement - It is an external source which has got an important place in recruitment
procedure. The biggest advantage of advertisement is that it covers a wide area of market
and scattered applicants can get information from advertisements. Medium used is
Newspapers and Television.

c. Employment Exchanges - There are certain Employment exchanges which are run by
government. Most of the government undertakings and concerns employ people through
such exchanges. Now-a-days recruitment in government agencies has become
compulsory through employment exchange.
d. Employment Agencies - There are certain professional organizations which look
towards recruitment and employment of people, i.e. these private agencies run by private
individuals supply required manpower to needy concerns.
e. Educational Institutions - There are certain professional Institutions which serves as an
external source for recruiting fresh graduates from these institutes. This kind of
recruitment done through such educational institutions, is called as Campus Recruitment.
They have special recruitment cells which helps in providing jobs to fresh candidates.
f. Recommendations - There are certain people who have experience in a particular area.
They enjoy goodwill and a stand in the company. There are certain vacancies which are
filled by recommendations of such people. The biggest drawback of this source is that the
company has to rely totally on such people which can later on prove to be inefficient.
g. Labour Contractors - These are the specialist people who supply manpower to the
Factory or Manufacturing plants. Through these contractors, workers are appointed on
contract basis, i.e. for a particular time period. Under conditions when these contractors
leave the organization, such people who are appointed have to also leave the concern.

Selection Process
Employee Selection is the process of putting right men on right job. It is a procedure
of matching organizational requirements with the skills and qualifications of people.
Effective selection can be done only when there is effective matching. By selecting
best candidate for the required job, the organization will get quality performance of
employees. Moreover, organization will face less of absenteeism and employee
turnover problems. By selecting right candidate for the required job, organization will

also save time and money. Proper screening of candidates takes place during selection
procedure. All the potential candidates who apply for the given job are tested.
But selection must be differentiated from recruitment, though these are two phases of
employment process. Recruitment is considered to be a positive process as it
motivates more of candidates to apply for the job. It creates a pool of applicants. It is
just sourcing of data. While selection is a negative process as the inappropriate
candidates are rejected here. Recruitment precedes selection in staffing process.
Selection involves choosing the best candidate with best abilities, skills and
knowledge for the required job.

1) Initial screening interview

2) Application blank or application form


3) Written examination & other selection tests
4) Comprehensive interview
5) Medical examination
6) Checking the references
7) Final employment decision
8) Placement

1. Initial screening interview - It is used to eliminate those candidates who do not


meet the minimum eligiblity criteria laid down by the organization. The skills, academic
and family background, competencies and interests of the candidate are examined during
preliminary interview. Preliminary interviews are less formalized and planned than the
final interviews. The candidates are given a brief up about the company and the job
profile; and it is also examined how much the candidate knows about the company.
Preliminary interviews are also called screening interviews.
2. Application blank or application form - The candidates who clear the
preliminary interview are required to fill application blank. It contains data record of the

candidates such as details about age, qualifications, reason for leaving previous job,
experience, etc.
3. Written Examination and others Selection Tests- Various written tests conducted
during selection procedure are aptitude test, intelligence test, reasoning test, personality
test, etc. These tests are used to objectively assess the potential candidate. They should
not be biased.
4. Comprehensive Interviews- It is a one to one interaction between the interviewer and
the potential candidate. It is used to find whether the candidate is best suited for the
required job or not. But such interviews consume time and money both. Moreover the
competencies of the candidate cannot be judged. Such interviews may be biased at times.
Such interviews should be conducted properly. No distractions should be there in room.
There should be an honest communication between candidate and interviewer.
5. Medical examination- Medical tests are conducted to ensure physical fitness of the
potential employee. It will decrease chances of employee absenteeism.
6. Checking the references: Past performance is often the best predictor of future
performance, the best way to verify an applicants background and job suitability is to
conduct a thorough reference check.
7. Final employment dececision: After the final interview, panel members
should compare their ratings and judgements (and any scoring system
agreed prior to the interviews) amongst themselves. It is preferable to review
candidates and their performances immediately after the interview process
whilst the information is still fresh in the minds of the panel. All discussion
should be supported by assessment evidence - not just personal impression.
Candidates should be rated against the agreed and specified criteria and not
against each other.

8. Placement: Companies conduct recruitment and selection and finally select


employees. The employees undergo an induction program. After the

induction program is over the employee is given a specific job in the


company. This is called placement.

Chapter: Five
Recruitment and Selection of
Berger Paints Bangladesh
Limited

Recruitment
Recruitment Philosophy
At Berger, we recruit the appropriate candidate matching the company's HR
requirements in terms of necessary qualifications, experience, attitudes and values.
We believe that the Company can only remain competitive and maintain a lean and
flat organization provided we are selective in our recruitment of people. We look
forward to qualities such as a quest for excellence and unadulterated passion for work
in prospective employees. Other competencies that we appreciate in an ideal
candidate and try to inculcate in our employees are:

Leadership
Leadership is an attribute that doesn't come with designation or experience. At
Berger, all of us, irrespective of age or profile are leaders in our own right. We are

faced with challenges every single day, where we stumble, yet continue to learn from
each other. We own up, take responsibility and get it done. And therefore, every day
is an opportunity to make it what we want it to be.

Commitment
At Berger, apart from the body, mind and heart, people even get their soul to work.
And by choice work here is not a nine to five chore. It is what defines us and we love
what we do. This is important to belong and have fun and if this is your philosophy of
work culture, we would be glad to have you.

Solution provider
We understand that there is an efficient way out of every problem and that it can be
solved with strategy, action or advice. We, as an organization and as employees, focus
on the solution rather than the problem. And if this is your mindset, then you belong
here.

Energy
If there is one defining characteristic of all people working at Berger Paints around
the world, it is the energy. The vigor is infectious and is visible in our work, in our

interactions and in us. We live passionately. We work passionately. We solve


problems passionately. We are passionate. And if this defines you, Berger is meant for
you.

Integrity
Berger fosters a sense of responsibility in its entire people who do what they do with
utmost honesty. You are not bundled under layers of management which ensures that
there is absolute transparency in the system. Integrity being high on your list of
priorities shows your application in a positive light.

Sources of Recruitment
Berger Paints in Bangladesh uses both internal and external sources for recruitment
and selection purposes. In Barger Paints internal sources of recruitment is done for
higher level managerial positions which is also known as lateral level recruitment.
Berger Paints use external sources of recruitment for entry level positions which is
also known as entry level recruitment.
A) internal sources: internal sources of recruitment are:
a. Transfers
b. Promotions (through Internal Job Postings) and
c.

Re-employment of ex-employees

B) external sources: external sources of Recruitment are:

Employment at Factory Level


Advertisements
Educational institutions
Internship program

Level of Recruitment:
The process of Recruitment & Selection that is followed in Berger in the two levels
of recruitment:

Lateral Level Recruitment


Efforts are made to recruit & fill up Senior Level positions with in-house talent
available. The
eventual destination of a career path is the culmination of the aspiration & enthusiasm
of each of their employee by giving them opportunities to grow within the
organization. However, in case of non availability of internal talents they explore
with in industry and eventually outside industry, whenever required.

Entry Level Recruitment


At Berger fresh candidates at entry level such as Engineers (BE / B.Tech) &
Management Graduates (MBAs) are recruited as "Campus Recruits" straight from the
Campus as Management Trainees (MTs) or Graduate Engineer Trainees (GETs).
Selection process of berger Paints in Bangladesh:
1. Application Blank: The candidates who apply for jobs are required to fill
application blank format on internet. It contains data record of the candidates such as
details about age, qualifications, reason for leaving previous job, experience,
membership, awards and hobbies references signature line, work history, picture etc.
2. Preliminary Interviews: It is used to eliminate those candidates who do not meet
the minimum eligiblity criteria laid down by the organization. The skills, academic
and family background, competencies and interests of the candidate are examined
during preliminary interview. Preliminary interviews are less formalized and planned
than the final interviews. The candidates are given a brief up about the company and
the job profile; and it is also examined how much the candidate knows about the
company. Preliminary interviews are also called screening interviews. It is generally
done through the telecommunication media.
Preliminary Phone Interview
Conducting a preliminary phone interview is essential for obtaining information
about the applicant background, work history and experience. When employment
specialist conducts a preliminary interview, the objective is to determine whether or
not the applicant has the requisite skills and qualifications for the job vacancy.
Consistent with widely accepted human resources practices. While an employment

specialist may probe further into the applicants experience and interpersonal skills,
the purpose of this interview is to narrow the field of applicants to send for
consideration by the hiring manager.
3. Written examination and other Test: Various written tests conducted during
selection procedure are aptitude test, intelligence test, reasoning test, personality test,
etc. These following tests are done to objectively assess the potential candidate in
Berger Paint in Bangladesh.
a) Written test: at first the candidates have to give a written test comprising both
MCQ and analytical questions. The test is of 100 marks.
b) Group discussion: After the written test the employee have to attend a group
discussion. Here applicants are divided into several teams and topics are given to
discuss. Here the ability to work in a team as a team member is observed in a
candidate.
c) Role playing: After the group discussion the candidates are set to do role playing.
A topic or problem or situation is given by the employer to applicants for role
playing. The applicants are asked to solve the problem and give a power point
presentation playing different roles within 1 hour.
Each of the tests are evaluated independently and few candidates are chosen by
averaging the numerical value of each test for the final employment interview.
4. Employment interview: If the candidates pass the day long tests a final interview
is taken by the top level executives and managers. It is a one to one interaction
between the interviewer and the potential candidate. It is used to find whether the
candidate is best suited for the required job or not. By this interview the employment
decisions are made by the organization.
5. Medical examination: after the employment interview a medical tests are
conducted to ensure physical fitness of the potential employee.

6. Employment letter: after the medical examination a reference check is made


about the candidate selected and then finally he is appointed by giving a formal
appointment letter.

5.1 Marketing process:


In order to describe the marketing process I have to go through lots of things that are
the vital factors in order for expressing the core. This is the formal beginning of
describing the marketing process. The four components that make up the marketing
process are elaborated below:

5.1.1 Marketing opportunities:


For analyzing marketing opportunities information in required.
BERGER collects information from various sources that help them to
properly analyze the opportunities. They collect information mainly
from direct dealers and marketing service agency. Sometimes they
employ internship students to collect information from customer and

they are also keen to identify the changes in government regulations.


These factors/information are very important to analyze

the

opportunities that they have.

5.1.2 Segmentation and targeting market:


They segment the market according to the income level, life
style of rural and urban, taste of the people, education. But they enter
into the segment, which is segmented on the basis of income. This level
includes high, mid, low level of income people. Their segment is very
important because they want to satisfy each level of people by
producing different products according to their need.

5.1.3

Developing Marketing mix:


5.1.3.1 PRODUCT:
Careful emphasis about the level of product to satisfy customer:
Their main goal is to produce the product that means paint, which is the core
product. They put emphasis in producing actual product by fixing up characteristics
like quality level, features, design, brand name and packaging. These things will be
described later in the concerned fields. Their all time service and commitment create
the augmented product for their valued customers.
Classification of Product:
First of all BERGER paint can be regarded as shopping product because the customer
put lots of purchasing effort to buy this type of product. As the price varies, this
product can also be specialty product because luxury people sometime choose the
highest quality for that they have to pay higher price.

Product decision:
In terms of product decision there are many factors that appears to be important. In
this section the factors that individual/company can focus on are described below Quality Product:
They produce the highest quality of product through the most scientific techniques
and machines. Following the procedure of modified rebuy they import materials from
Indonesia, Malaysia, India, and Thailand. Their R&D departments invention to
produce a new product ensures the highest quality in the field.
Attractive Product features:
BERGER offers so many features that attract customers to purchase the product
without thinking. The main important features are:
Berger Colorbank introduces a global way to paint with an unlimited choice of shades to
match ones taste-instantly. Every Berger Colorbank store has a computerized color
tinting machine to help choose and get shades from world-class range of paints. There is
already installation of more than 1300 tinting machines in Berger Colorbank stores across
the country. Colorbank can produce any color of ones imagination with in 5 minutes from
5000 shades.
Their commitment /service to the customer really amazing. During all these years the
reputation they made attracts the people to have faith on them as they constantly
producing the high quality product with their best effort.
BERGER is a multinational company operating in Bangladesh registered in UK. They
are operating for 230 years, this long years relationship with the people keeps them to be
number one.
The design of the product:
Their R&D department design the product based on the weather of our
country. Painting parameter like thinning ratio, drying time, and viscosity are
also considered because they are core for producing high quality paint.

Packaging & labeling:


Their packaging department gives the highest quality of packaging in
order to protect the materials inside from other particles that may hinder its
quality. From the customer viewpoint they (BERGER) are delivering the type
of product that does not need very attractive packaging as it is purchased
mainly for quality not for attractiveness. BERGER has a Can factory, which
is operated independently as SBU. Professional painter does the painting work
in our country though BERGER provides all type of information that is
required to use the material in safe mood. Ingredients, using Method, post using
method and others are narrated in a very effective manner.
Service in the changing scenario:
Now in this changing environment in the business post purchase service
are necessary for survival in the industry. These services help the customer to
adjust with the usage of products. The services that BERGER provides are the
following:

Post purchase services


Their post purchase service is also highly available. Having any complain form
the customer they rush to their premises to see themselves where the problem is
and get the solution thereafter. But most often these types of problem arise because
of the mismatch of color and uses. Because of less knowledge and proper guidance
people use paint that may not suitable for the purpose.

Home dcor service:


Berger provides a home dcor service which work is to give the solution of the
problem of the customer in terms of painting through e-mail and telephone at free
of cost. People have varieties problem in terms of matching the paint with the
home/office atmosphere, this service give the solution in an effective manner.

New product development:


BERGER collects information from various sources as described in the analyzing
marketing opportunities segment. If the generated information suggests producing a
new product then marketing department takes necessary step to implement it. They
produce the paper mentioning what will be the newly product required quality, cost,
shade and others. At that time they also determined that who would be the main buyer
of that particular product in the sense that it can be a luxurious product offering very
high quality of shades. If the top-level management approves it then the proposals are
sent to the R&D department to produce the product with the given outlay. Thats how
they develop new product.

New product according to


given outlay

Information search

Need for new product


department

Sent to R&D

Initiative taken by mkt


department

Required outlay for


producing new product

Approved by the top


management

Figure: New product development


Product life cycle Strategy:
BERGER is offering different brands in order to meet the demand. Their different
product life cycle varies depending on the time they have introduced the product in
the market.

The given outlay will give a view about the product life cycle:
Product
Se

Comments

Stage

name

1.
2.

Wood

High quality,

Introduct

Keeper

luxurious product

ion stage

Robbial

High quality

Growing

ac

product designed for

stage

upper level of
people
3.

Plastic

High quality

Maturity

emulsio

product

stage

Economy product

Decline

n,
distemp
er
Wood
4.

Vernish

stage

Sales &

Plastic

Profit(s)

emulsion

vernis

Robbialac
Wood

Wood

Sales
Profit

keepe

Time
Product

introductionGrowt
h
Development
stage

Lossesinvestment(
s)

Maturit
y

Decline

Figure: Different product life cycle of BPBL.


5.1.3.2 PLACE:
Another major component of marketing mix is place. During my internship at
BERGER I was able to include inventory, transportation, coverage, channel, logistics
and market and market segments etc. under these marketing mix components.
Differentiated market segment:
Bergers market segments are differentiated. They use different types of marketing
mix for different segments. Their product quality, advertisement, promotional
techniques, price are high for upper class customers. Again for the people of middle
class on the basis of their income, occupation, taste, lifestyle different marketing
policies are applied. We can observe this deviation in TV advertisement.
Inventory:
BERGER has divided their products in A,B,C category. For inventorying their
products BERGER is following some storing norms. Depending on this storing
norms company decides how long will their product stay in the market in accordance
with the existing sales trend of that particular product. This is how the firm can
determine when to order and how much to order.
Transportation:
To ensure customer satisfaction BERGER uses modern and fastest going covered van
as transportation carrier while moving goods from depots to dealers. But when they
move goods from factory to depots they uses public transportation carriers such as
truck and railway as rental basis.
Coverage:

There are two factories of BERGER; one is


situated in SAVAR, Dhaka and another is located
in Kalurghat heavy industrial area. There are
seven depots or sales office located in Dhaka,
Rajshahi, Bogra, Khulna, Comilla, Sylhet, and
Chittagong. The products are delivered from
these depots to direct dealers. With the help of
the dealers they marketed the products country
wide. The number of dealers that BERGER has
is approximately 750. Among them 400 dealers
in Dhaka, 150 in Chittagong, 45 in Rajshahi, 30
in Bogra, 55 in Khulna nad rest are in different
localities.

BERGER sells its products to consumers through direct dealers. The firm has no
dealing with wholesalers, retailers or jobbers. The dealers can wholesale or retail the
product. The total process is shown on the following chart:

Berger
Customer
Feedback

Product
Feedback

Depots

Retail

Feedback

Product

Wholesale
Direct
Dealer

Customer
Feedback
Fig: Distribution Process.

BERGERs hybrid marketing system:


Direct channel

Customer
Berger
Direct
dealer

Customer

Indirect Channel
5.1.3.3 Pricing:
Price, the important factor for buying any product, is the amount of money charged
for a product or service. It is one of the important elements of marketing process.
Berger follows dynamic pricing. They charge different prices depending on
individual customers and situations and it is flexible. Berger serve the people of
Bangladesh, high quality products with high price . They dont consider all levels of
peoples. Say, if the competitors market a product in low price, Berger didnt market
the same product in same price because ensures the quality and considers average
growth and resources.
Before setting price of the product Berger consider various types of
factors which affects the price. These are:

Internal factors,
External factors.

Under Internal factors Berger considers the following facts:


The price affect by short & long term marketing objectives :

Berger targets the share position of the product in the market.

And also target the return of highest long run profit.

One of the important factors is in new segment Berger target to launched new products in
new segment with new features. For example: Berger doesnt always market new products
because if they launched new products because there is a possibility to be copied by the
competitors then expense will higher than revenue.

Berger is offering high quality product for middle to higher class people so they doesnt set
the price in competitors level because of durability , reliability & quality .
For example: Berger luxury silk emulsion etc.

For several types of products Berger target to maximize current profit. For those products
which have highest demand in the market .For example : wood keeper a commercial
product

If the product is existed in the market then Berger try to add new features and market that
product in new segment. Extra feature increase the cost and also vary the segmentation.

Their long term objective affect pricing like for survival in the market they sometime set
prices at competitors level but not all types of product.

The design and distribution affect the price of the product:

Price also depends on design and performance and Berger always offer a new product with
different performance this add customer value.
For example: with 1 can how much space a customer can paint and the durability
of color.

Base on branding Berger also launched new or modified product in a new category.
For example: The Color bank product is for higher level customer of the
society. Who are always wanted to get something exceptional? And Robbiolac
super gloss enamel is for those who want better quality with durability.

Berger also target to increase the distribution net. It also increases the sales of products and
increase the distribution cost.

To meet up customer consideration Berger produce product for commercial use. For
example: the customer of wood keeper uses this paint for commercial purpose. If the
durability of this product is 5 years usually it will increase the product cost then demand will
decrease. It will be perfect for them when the durability will 1 year with good quality.

Berger considers all types of Cost of products:

Berger chose a price that both covers all its costs for producing, distributing, selling
and rate

Return. After determining prime cost and adding overhead the company

determine the
Production cost. Fixed will hamper if the demand of the product will decrease. It will
have negative impact in pricing. Company management always want average sales of
their product because a company must pay each months executive salary, bills, heat
rent etc.

Under External factors there are Berjer considers the following facts:

The market & demand of product affects the pricing :

Berger faces oligopolistic competition; there are few companies who are
sensitive to each others pricing and marketing strategies. Berger serving large
number of buyers and it is difficult for a new sellers to enter into the market
.Berger occupy 50% market from 100% in Dhaka and other 50% from other
district. There is no chance of pure monopoly.

Customer perception of price & value :

We know the main target of Berger is to serve high quality product but not in
competitive price. Customer always wants to get something extraordinary. If price
is little bit higher but the product performed as consumer test then consumer are
ready for extra pay. After analyzing the economic condition of people, their earning
source i.e. After market analyze company analyze how much value customer place
on the benefits they receive from the product and setting a price that fits this value .

Other external factors :

Political condition, economic conditions of country also have a strong impact


on the pricing. And Berger also considers the reseller of their product . Gives them
a fair profit, commission & encourage their support.

5.1.3.3.1 Different pricing approaches of Berger:

For different types of product Berger use different types of pricing approach. Like
cost based
Pricing and value based pricing.

Cost based pricing approach :


For higher price product Berger apply this approach .at first they find production cost
and then add standard markup and consider consumer at the last stage. For example:
Berger color bank offers 5000 shades. After identifying production cost they add the
value what customers are ready to pay? These products are for those who are always
wanted to be exceptional.

Value based pricing approach :


Here Berger considers buyers perceptions of value rather than on the seller cost. For
middle class people Berger produce Robbiolac. For this at first they consider
consumers economic conditions. After identifying market they produce this paint.

5.1.3.3.2 Pricing strategies of Berger:

For new product: Berger lunched new products with new features with high quality its
usually increase the production cost so they market the product in higher price & cover the
expense getting revenue from segment .

For product mix: Berger offers different product with different performance in new category
within various price ranges. Then customer can evaluate different features of product as their
cost.

5.1.3.3.3 Price adjustment strategies of Berger:


Berger usually adjusts basic prices to account various customer differences &
changing situations. Berger gives:

Cash discount: Berger gives chance to the buyer, price reduction in product for receiving
bills properly.

Quantity discount: If buyer buy large volumes of product then Berger give them this
discount.

Allowances: Berger gives trade in allowances for turning in an old item when buyers by a
new product .they also give promotional allowances for rewarding dealers for participating in
advertising & sales support programs.

5.1.3.3.4 Changes in pricing:


Changes in pricing are caused by environmental conditions. International
situations, local share market, the competitors share market, companies own product
life cycle, consumer perception, consumer reaction if price will change etc.
Considering these features Berger changes their production price i.e. after international
& local market analyzing Berger changes their price.
5.1.3.4 PROMOTION:
Actually promotion comes from the developing the marketing mix .As we know that
the 4Ps of the marketing mix-product, price, place & the promotion means activities
that communicate the merits of the product & persuade target customer to buy it.
There are four variables in promotion is known as APPS that means advertising,
personal selling, public relation, & promotion.

5.1.3.4.1 ADVERTISING
In this part I will discuss the advertising of BERGER, a paid from of non-personal
presentation and promotion of ideas, goods or services buy an identified sponsor.

# Objective of Advertising: The objective of the company is to draw attention to the


buyer of the products, brands & its quality.
#Advertising budget: BERGER spent one third of their total expenses. Here we give
an approximate budget of the BERGER co. ltd.
Media

Amount of taka (crore)

TV, RADIO & PRESS

TRADE PROMOMTION

CONSUMER PROMOTION

# Advertising strategy: BPBL follows different strategy for developing its strategy. It
depends on some characteristics that is product life time, brand etc.
# Media: BPBL used different media for advertising like- on-air advertisement,
television, newspaper, magazines, radio & neon-sign etc. Everyday radio telecast a
program at 12:30 pm. named Parrot Pea-cock Prioy Pochondo.
5.1.3.4.2 SALES PROMOTION

BERGERs sales promotion consists of short-term incentives to encourage the


purchase of sale of a product or services.
#Sample: The company do not provide any sample for the sellers because it is very
expensive & also they dominant in the market.
#Coupon: BERGER co. gives coupon to its customers like million taka offer,
tingting etc.
#Price-pack: Because of the many competitor in the market exist thats why the
BERGER co. cuts its price for the convenience of customer like- scratch card, gift
etc.

#Premium: the BERGER CO. offers no premium for its customer or seller.
#Advertising specialty: Yes, BERGER co. maintain the advertising specialty because
they have various type of brand & their customer also vary.
#Discount & Allowance: Obviously, BERGER provides discount &allowance for the
seller to increases the sale.

5.1.3.4.3 PUBLIC RELATION

Press relation: To draw the attention & attracting the person to inform about the product

BERGER co. regularly maintain the press relation


Product publicity: BPBL publishing about the new product like-Wood keeper & to

maintain the direct relationship with the general customer & the potential customer.
Public affairs: BERGER co. recently added the new public affairs services for its

customer named Home decorating service.


Young
Painters Art competition
5.1.3.4.4
PUBLICITY

Young Architects Award

Sponsoring Delta Break Housing Fair

5.1.3.4.5 PERSONAL SELLING


For the purpose of making sales and building customer relationship BPBL follow:

#Tele marketing: BERGER do not sale on over telephone but now they are thinking
about this.
#online marketing: They do not provide this service for the customer but they have
web site

named WWW.BERGERBD .COM

#Credit sell: BERGER co. doesnt sell on credit. They sale products on cash basis.

#Tutorial sales force structure: Actually this co. doesnt apply any sales person to sell
its product.
#Relationship marketing: The BERGER co. follow the relationship marketing to
maintain & enhancing strong value laden relationship with its customer & other
stockholders.
#Praline: Its a separate wing. That engaged in communicating the officer, dealer,
developer & architect.

5.1.4 MANAGING MARKETING EFFORTS:


To design the marketing mix and put them into action Berger develops relationship
between the four marketing management functions analysis, planning,
implementation and control.
After analyzing the market in the light of the marketing environment,
opportunities, threat, strengthen and weakness, BERGER develops overall strategies
and objectives for each product or brand. These planning involve current market
situation, threat and opportunity analysis, objectives and issues, marketing strategy
action program, budget etc that may vary from brand to brand. Through
implementation, the company turns the plans into action. Control consists of measuring
and evaluating the results of marketing activities and taking corrective action where
needed.
SWOT analysis to Formulate Strategies
Strength
Strong brand image.

Strong market share.

Experienced top

Good profitability.

management.
Global experienced of
Berger.

Strong solvency.
Wide distribution of
network.

Satisfactory MIS.

Weakness
Exposed of currency risk.

Concentrated ownership

Semi automated plant

pattern.

needing.

Poor internal capital

Human intervention.

generation.

Opportunities
Increasing demand on

Backward image for

paints.

value addition.

Growing market.

Full automation scope.

Threats

Emergence of
competitors.

Credit driven market.

After SWOT analysis the company makes its strategies for its product and

service. By managing marketing effort properly BPBL has achieved a significant growth in
sales:

Figure: Sales Trend

5.2 Marketing strategies Of Berger in short:

Marketing strategies of Berger is built on STP Segmentation, Targeting and


Positioning. Berger discovers different needs and groups in the market place,
target those needs and groups that it can satisfy in the superior way and then
position its offerings, so that the target market recognize the companies
distinctive offerings and image.

Marketing strategies of Berger depends on

Segmentation of products.
Target market selection.
Positioning their product.

5.2.1 Segmentation strategies of Berger:

Before segmentation their product Berger segments its business through the
year. Generally the summer and winter is the peak season not only for Berger
but also every paint producer. October to June is peak season and July to

September is the lean season for the paint industry in Bangladesh, which is
related to weather conditions.

The peak and lean months of the year, on the basis of the seasonality of the
paint market, is as follows:

Month/

period
January

Peak

February

Peak

March

Peak

April

Peak

May

Peak

June

Peak

July

Lean

August

Lean

September

Lean

October

Peak

November

Peak

December

Peak

Conditions

Berger paint Bangladesh limited mainly segments their product mainly on


three categories. These are

1) Decorative.
2) Industrial.
3) Marine.

5.2.2 Target market selection Strategies:

Berger has chosen target markets to co-operate in the interest of overall


company in a socially responsible manner. The paint industry can be divided

into three segments. These are: 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.

Figure: Three segments of BPBLs Product.

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.

Bergers share of market in the synthetic enamel category is 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.

5.2.3 Positioning strategies:

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.

5.2.3.1 Product differentiation:

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 satisfaction.

5.2.3.2 Service differentiation:

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 the other competitors. These are

Ordering ease

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.

Customer consulting & delivery Service

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 painting.

F re
e
S e r
v ic
e

P a i
d
S e r
v ic
e

B
D
t
s

e rg e r H o m e
e c o r o ff e r s
w o -s ta g e
e r v ic e s :

Figure: Services of Berger Home Dcor.


Berger Home Dcor

Berger Home Dcor is currently offering wide range of services to its


prospects and existing consumers embracing: They give technical advice on

Surface preparation and application guideline.

Paint selection.

Dealer selection.

Painter/ Contractor selection and

Color scheme.

There is defined Telephone number, 02-9872428 for queries. By ringing


simply in the number one can make query or seek available services from the
company. According to the nature of query, the company provides solutions.
BPBL has 7 Home decors among them 3 is in Dhaka, 1 is Chittagong, 1 is
Khulna 1 in Sylhet and 1 in Comilla. They are listed below:

Home Decor, Dhanmondi.


Home Decor, Uttara,
Home Decor, Banani,
Home Decor, Chittagong,
Home Decor, Sylhet,
Home Decor, Khulna,
HomeDecore,Comilla.

Channel distribution:

Berger has achieved competitive advantage through the way they design their
distribution channels coverage, expertise and performance. With its strong
distribution network, Berger has reached almost every corner of Bangladesh.
Their nationwide dealer network, supported by

Sales depots strategically located in Dhaka, Chittagong, Rajshahi, khulna,


Bogra, Sylhet, Comilla, Mymensingh and Barishal has an unmatched

capability of cater to the needs of the consumers of paints products, almost


everywhere in Bangladesh.

factory

(Special shades & products )

factory

Dhaka
Depot

Khulna
Depot

Rajshahi
Depot

Bogra
Depot

Comilla
Depot

Sylhet
Depot

Chittagong
Depot

Direct Dealers

Direct Dealers

Indirect dealers

Indirect dealers

Indirect dealers

End
Users

5.2.3.3 Personnel differentiation:

Figure: Distribution Channel of BPBL.

Berger always gains a strong competitive advantage through having better


trained people. To recruit personnel Berger follows some strategies that are:

Skill & knowledge.

Courtesy, friendly.

Reliability.

Responsiveness.

Communicating ability.

5.2.3.4 Image differentiation:

Berger has taken many powerful marketing strategies to build a high image in
the market. It has strong slogan and symbols to identify image powerfully.

Media & sponsorship


Media is the mainstream to built and develop image not in our country but
also all over the world. Burger built up its image through advertising, sponsoring
different social and cultural activities.

Social responsibility
Berger paints organizes Young Painters; Art Competition and also introduced
Young Architects Award from 2003. The company regularly contributes to a
number of causes and social welfare institutions through donations and
sponsorships. These efforts results in a better image for BPBL, as minds of the
general public, who are, after all, consumers of their products.

Berger Young Painters' Art Competition:

Berger Paints Bangladesh Limited has been patronizing art for more than a
decade. In continuance of its commitment, Berger Paints has been organizing
Young Painters' Art Competition (BYPAC) since 1996. This particular
initiative of Berger Paints has highly encouraged the young aspiring artists of
Bangladesh.
Every year, young painters from different parts of Bangladesh participate in
the competition. The winners are selected by a Jury board comprising of
prominent

artists

of

the

country.

For the past two years Berger Paints has also been giving Lifetime
Achievement Award to venerated artists for their immense contribution and
influence in the field of art of Bangladesh.

Berger Award for Excellence in Architecture:

Berger Paints Bangladesh Limited contributes in the field of Architecture by


arranging Berger Award for Excellence in Architecture. Berger introduced the
Berger Young Architects' Award back in 2003, the first of its kind in
Bangladesh. To widen the horizon, in 2007, the award was classified into two
categories, namely "Berger Award for Excellence in Architecture" and "Berger
Young Architects' Award", so that the award can inspire the mature as well as
the young architects. The winners are selected by a jury board with eminent
architects as its members. The event is arranged bi-annually. Berger Paints
also arranges exhibitions showcasing the projects submitted in the
competition.


Scholarship Program for BUET students:

As part of its corporate social responsibility, Berger Paints introduced Berger


Award Program for the Students of Architecture BUET (BASAB) in 2006, in
collaboration with the Department of Architecture, BUET to promote the
young architects, to give them a real life experience and inspire them to go
further. Awards are given in four categories, these are:

Berger Best Design Award

Berger Best Portfolio Award

Promising Designer Award

Berger Travel Grant

Scholarship Program for Khulna University:

From 2011, Berger Paints will provide scholarship for the students of
Architecture Discipline of Khulna University. Besides, Berger will also

contribute to the KUAD-BERGER Resource Corner of Khulna University


where all the latest learning resources of architecture will be added.

Aid in Natural calamities:

In an effort to contribute to the infrastructure restoration of the Sidr affected


area of Majher Chor, Berger Paints had provided free paints. Berger Paints
also contributed TK. 10 lakhs in the government fund in 2007 for flood
affected victims to help rebuild lives.

Social work for Autistic Children:

In Bangladesh, an approximate of 10percent of the population suffer from


various disabilities. Amid them, a large number of children are autistic.
Although autism is not curable but timely diagnosis and behavioral therapies
can bring about a substantial improvement in the condition. Being committed
to the society, Berger Paints Bangladesh Limited (BPBL) contributes to the
well being of the physically and mentally challenged people of Bangladesh
giving focus on autistic children. Recently BPBL has selected some
organizations namely as SEID Trust, Autism Welfare Foundation (AWF),
Society for the Welfare of Autistic Children (SWAC), Scholars Special
School, Tauri Foundation, Deepalay etc. who are working with autistic
children to facilitate them with better infrastructural support.

Contribution in Prothom Alo Fund for Acid victims:

Berger Paints has provided a donation of Taka Three lakhs to the Prothom Alo
Trust for Assistance of Acid Victims, as a part of the company's corporate
social responsibility. The Daily Prothom Alo, the leading national daily
newspaper, has founded the trust as an initiative for support and assistance for
women who have been victims of acid violence.

Special Offers for the Dealers:


Berger Paints Bangladesh ltd. gives special offers to grab and retain its
dealers. The company does it to maintain good and continuous relationship
with the dealers. BPBL takes some strategies to do so, such as:

Providing discount to the dealers.

Giving promotional gifts.

Arranging Trade promotions.

Organizing foreign trips for them.


5.2.4 Pricing strategies:

The price strategy of Berger is to offer a high quality product at a competitive


price. They set its price in relation to the value delivered and perceive by the
customer. Because it believes that if the price is higher than the value
perceived, the company will miss potential profits and if the price is lower
than the value received the company will fail to harvest potential profits.

5.3 Market Share Analysis:

Berger Paints Bangladesh Ltd. is operating as the market leader and enjoying
almost 55% of national paint market share. The nearest competitor is Asian
Paint, 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:

Compan

Mark

ies

et

Share
55%

11%

Paints
Roxy

7%

Paints
Elite

6%

Paint
Pailac

5%

Others

16%

Total

Berger
Paint
Banglad
esh

Limited
Asian

100%

Table-08: Market Share of Different Companies

The following table and pie diagram show the present market share of
different companies in the paint industry in Bangladesh.

16%

berger paints
asian paints

5%
6%
7%
11%

roxy painst
55%

eliste painst
pailac painst
others

Chart-05: Market share of different companies

5.4 Implementation of Marketing Strategies by BPBL:

Berger paints marketing strategies includes both market skimming and


penetration in order to capture the market. The concept of market skimming
involves charging a relatively high price for a short time where a new,
innovative, or much-improved product is launched onto a market. The concept
of market penetration involves the setting of lower, rather than higher prices
in order to achieve a large, if not dominant market share. So, in case of Berger
the strategies that they use can divide in to two parts according to the
skimming and penetration criteria for Mirpur DOHS. The strategies are given
below:

5.4.1 Market Skimming:

Where a highly innovative product is launched, research and development costs are likely
to be high, as are the costs of introducing the product to the market via promotion,

advertising etc. This strategy was carried out by Berger for the product named Rust
blaster which is mainly used for decapitating rust from steel. This product is highly
innovative and only launched by Berger, so the charged price is high for huge product
promotion and marketing. This strategy is having positive impact for this product.

By charging high prices initially, a company can build a high-quality image for its
product. Charging initial high prices allows the firm the luxury of reducing them when
the threat of competition arrives. For providing high quality product Berger charges high
price for its products. This strategy is also helping them to eliminate competition in
because other competitors are also providing good products but in terms of creating
image of providing good quality Berger is step ahead.

Where a product is distributed via dealers, the practice of price-skimming is very


popular, since high prices for the supplier are translated into high mark-ups for the dealer.
Most of the landowners suggest Builders to buy Berger paint. For this reason dealers can
get high mark-up price and Berger gets high profit.

5.4.2 Market Penetration:

Maintain or increase the market share of current products this can be achieved by a
combination of advertising, sales promotion and perhaps more resources dedicated to
personal selling. This strategy is implemented by Berger through providing samples of
different colors, advertising through banners and poster and also doing personal selling
by using sales force to provide customers more insight on different products.

Berger also has products with low price criteria. These products are also of high quality
and designed to target those customers who are price cautious; such as- Robbialac
Acrylic Distemper (SPD), Robbialac Acrylic Plastic Emulsion (APE), Jhilik Synthetic
Enamel (JSE). Berger is also creating awareness among the customers that they also

have products within low price range with high quality. Many customers are using these
Berger products for their houses.

Berger is also using this strategy for attracting more customers into their profile. They
are offering various loyalty schemes, such as: price discount, coupon etc. By this
strategy they are keeping good consumer relationship with consumers and also with the
dealers by proving discount on bulk purchase, annual prize giving etc.

5.5 Counter Strategies by Berger:

For increasing sales more than competitors, Berger is providing coupons with every
product and the coupons include various prizes.

Berger organizes different seminar and training campaigns for painter and dealers where
they help them to provide proper in-sight for using existing and new paint products. By
this campaign Berger is establishing good relationships with dealers and painters and also
encourages them to use their products.

Berger is also following competitive based pricing, if the price of the product of
competitors is reduced they also reduce the price as counter strategy.

Berger is also doing more advertising through print and electronic media than the
competitors to create more awareness for target market.

For motivating dealers for suggesting their product to the customers and painters, they
are proving different sort of attractive incentives for dealers than its competitors which is
really helping them in many ways.

Berger uses personal selling more effectively than its customer for creating more
awareness for their product on its quality, price range, variety etc which is helping them
to create more customer base.

Chapter Six
Conclusion &
Recommendation

6.1 Conclusion:

Marketing Strategy plays a significant in the changing environment of


business. The new methods and techniques of marketing are now a very
sensitive issue. One has to cope with the changing situation of market in order
to survive in the long run. The changing environment should be identified in
order to meet the global challenge of marketing worldwide.

From study and observation, it can easily be predicted that Berger Paints
Bangladesh Limited is clearly a market leader in paint industry and they have
expanded their business globally. They are determined to play a leading role
in the development of Bangladesh. They have worked towards building a
strong foundation and establishing a professional corporate identity. BPBL are
the pioneer which will be respected for its achievement, professional ethics
and innovative concept. They have always believed in sustainable growth of
their company because their fundamentals are very strong. BPBL has
achieved this position by ensuring better quality product and evolving
marketing strategy. The major issues that I have observed in BPBL regarding
marketing strategy are given below:

BPBL maintains and follows its marketing strategy properly.


BPBL are committed to hand over their project before the stipulated time guarantying a

quality construction with superb finishing.


BPBL continuously work to improve the quality and service of its product.
BPBL invents new ideas and ways to attract new and potential customers and retain

them.
BPBL also contribute in the GDP growth of Bangladesh.

BPBL is influencing people by offering more discount rate.

It is influencing dealer, sub-dealer and paint contractor of Berger Paint by providing


more extra benefits such as commission, gift and party, foreign tours as well as personal
relation .

Each and every suggestions of their value customer is greatly emphasized at every phase
of the project.

Since the customer satisfaction is the main motto that creates generation by generation
customers, their marketing department always stand beside the customers to provide the
best possible friendly service.

Unrelenting efforts of their employees are building the confidence of their customer.

As a multinational company Berger Paint Bangladesh Limited is expanding


its business throughout the country. By improving their product quality to the
fullest and by developing its marketing strategies, BPBL reaches their actual
goal in less time. While analyzing its marketing strategy it is clear that they
are the market leader today and they tried their level best to stay as market
leader for the further future.

6.2 Recommendations:

Though BPBL is maintaining its marketing strategies properly, they should


take the following steps to improve their overall performance:

BPBL should implement the best service providing strategy that will ensure more value
for the existing & target customers.
Sales and marketing department of BPBL should encourage career development of the
employees. By doing so, BPBL will be able to increase the performance of the
employees.
BPBL should wishes to the clients in different occasion. It will create extra value for the
clients and make them more pleased and positive about the company.
BPBL direct marketing effort must be implemented more precisely and elaborately to
ensure maximum market coverage both for existing and proposed clients.

BPBL should be careful about the pricing strategy.


Berger should use competitive pricing for some its products which are competing with
Asian and Elite paint products in the market.

References:

Kottler, P., Armstrong, G (1999) Principle of Marketing, 8th edition, Upper


Saddle River, New Jersey: Pearson Education.

Pacxdeath (2012) SWOT analysis, Available at:


http://www.studymode.com/subjects/swot-analysis-of-berger-paint-page3.html
(Accessed: 10th March).

Riley, J. (2012) Pricing skimming, Available at:


http://tutor2u.net/business/marketing/pricing_strategy_penetration.asp
(Accessed: 10th March).

Riley, J. (2012) Pricing strategy, Available at:


http://tutor2u.net/business/marketing/pricing_strategy_penetration.asp
(Accessed: 10th March).

Olshavsky, R.,Miller, J.A. (1972) 'Consumer expectations, product


performance and perceived product quality', Journal Of Market Research, 9,
pp. 19-22.

Barger Paints Bangladesh (2012) Company information, Available at:


http://www.bergerbd.com/ (Accessed: 10th March).