FINAL PROJECT REPORT

SEMESTER-2
COURSE: MASTERS OF BUSINESS ADMINISTRATION (MBA)
SPECIALISATION: MARKETING

COMPANY: BERGER PAINTS INDIA LTD.

PRODUCT: INTERIOR WALL COATINGS

SUBMITTED BY:
DEEPANSHU BHATIA
MBA MARKETING – 3
UID: 2019-1106-0001-0005
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Table of Contents
Paint Industry Overview ........................................................................................................................................................... 3
CONTRIBUTION TO GDP................................................................................................................................................... 3
Industry Structure ................................................................................................................................................................. 6
Paints and Their Market Share ............................................................................................................................................. 7
Companies & Their Collaboration ........................................................................................................................................ 8
Drivers to the growth of the Paint Industry .......................................................................................................................... 8
Main Concerns of the Paint Industry .................................................................................................................................. 10
Paint Industry Prospects (Historical Growth of Last 5 Years & Next 5 Years) ................................................................. 11
MICHAEL PORTER’S FIVE FORCE MODEL ANALYSIS OF PAINT INDUSTRY ................................................... 13
Company Profile ...................................................................................................................................................................... 17
History .................................................................................................................................................................................. 18
Company Background ......................................................................................................................................................... 19
Board of Directors: .............................................................................................................................................................. 21
BERGER PERFORMANCE ............................................................................................................................................... 22
BERGER PRODUCTS: ....................................................................................................................................................... 22
Product Lines: ...................................................................................................................................................................... 24
SWOT ANALYSIS .............................................................................................................................................................. 26
COMPETITOR ANALYSIS ............................................................................................................................................... 27
News Last 6 Months: ............................................................................................................................................................ 28
Marketing Strategy .................................................................................................................................................................. 29
MARKETING MIX (Interior Wall Coatings) .................................................................................................................... 29
STP of Interior Wall Coating: ............................................................................................................................................. 34
PLC of the Interior Wall Coating as well Berger Other Products ..................................................................................... 35
Digital Marketing & Promotional Strategy......................................................................................................................... 36
Growth & Future Plans ....................................................................................................................................................... 39
Ways to Improve current digital marketing strategy: ........................................................................................................ 45
Sales Forecasting Using Excel: ............................................................................................................................................ 46
Sales forecast assumptions:.................................................................................................................................................. 47
Distribution network / Channels ......................................................................................................................................... 49
BERGER‟s hybrid marketing system ................................................................................................................................. 51
Factor Analysis: ................................................................................................................................................................... 51
Conclusion: .............................................................................................................................................................................. 54
References: ............................................................................................................................................................................... 55

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 Paint Industry Overview

 India is the second largest paint market in Asia with an annual demand of over two million tones.
The Indian paint industry has been growing constantly over the last decade. Growth has been
consistent with the GDP growth rate and in some years even higher. Over the past few years, the
Indian paint market has substantially grown and caught the attention of many international
players. The country continues to enjoy a healthy growth rate compared to other economies,
backed by the increasing level of disposable income, and demand from infrastructure, industrial
and automotive sectors. On the back of such advocacy, it is anticipated that the sector will post a
CAGR (Compound Annual Growth Rate) of around 15per cent during 2012 to 2015, according
Indian paint industry expert forecast.

 The paint industry can easily grow at 12-13% annually over the next few years from its current
size of Rs 350 bn. The per capita paint consumption in India which is a little over 4 kgs is still
very low as compared to the developed western nations. Therefore, as the country develops and
modernizes, the per capita paint consumption is bound to increase.

 The unorganized sector controls around 35% of the paint market, with the organized sector
accounting for the balance. In the unorganized segment, there are about 2,000 units having small
and medium sized paint manufacturing plants. Top organized players include Asian Paints, Kansai
Nerolac, Berger Paints and ICI.

CONTRIBUTION TO GDP

3.70%

PAINT INDUSTRY OTHERS

96.30
%
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Demand for paints comes from two broad categories:

Decorative: Major segments in decorative include exterior wall paints, interior wall paints,
wood finishes and enamel and ancillary products such as primers, putties etc. Decorative
paints account for over 70% of the overall paint market in India. Asian Paints is the market
leader in this segment. Demand for decorative paints arises from household painting,
architectural and other display purposes. Demand in the festive season

(September-December) is significant, as compared to other periods. This segment is price

sensitive and is a higher margin business as compared to industrial segment.

Industrial: Three main segments of the industrial sector include automotive coatings,
powder coatings and protective coatings. Kansai Nerolac is the market leader in this
segment. User industries for industrial paints include automobiles engineering and
consumer durables. The industrial paints segment is far more technology intensive than the
decorative segment.

The paints sector is raw material intensive, with over 300 raw materials (50% petro-based
derivatives) involved in the manufacturing process. Since most of the raw materials are
petroleum based, the industry benefits from softening crude prices.

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 Indian Paints Industry

Decorative Segments Industrial Segments

(77%) (23%)

Premium Medium Distemper Consumer

Automative
range (high range paintes durable
sector (2/3
& acrylic (Enamals (low end marine
share)
emulsion) paints) paints) paints other
OEMs

Sub Urban
Metro and Small and Rural
large cities cities Areas

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 Industry Structure

Indian Paint Industry is over 1000 years old. Its beginning can be traced back to the setting up of
a factory by Shalimar paints in Calcutta back in 1902. Till the Second World War the industry
consisted of small producers and two foreign companies. After the war, the imports stopped which
led to the setting up of manufacturing facilities by local entrepreneurs. Still the foreign companies
continued to dominate the market, which in a way is the current scenario as well. The initial
decades saw the complete dominance of British Paint companies such as GoodlassNerolac (now
KansaiNerolac), ICI, British Paints (now Berger Paints), Jenson & Nicholson and Blundell
&Eomite. The Indian Paints sector is valued at Rs 6,800 crores in value terms and is very
fragmented. The current demand is estimated to be around 650,000 tons per annum and is seasonal
in nature. The per capita consumption of paints in India stands at 1.0-kg p.a. as compared to 1.6
kg in China and 22 kg in the developed economies. India's share in the world paint market is just
0.6%.

The Indian Paint industry can be divided as:

 The organized sector comprising of large and medium size units

 The unorganized or the small-scale sector.

 There are now twelve players in the organized sector with a market share of 77%. This is in
contrast to the 55% share that the sector commanded a few years back. Major companies in this
segment include Asian Paints (42% market share), Berger Paints (23% market share), ICI (6%
market share), Containerload (10% market share), Jenson Nicholson (4% market share), Shalimar
Paints and Rajpoot Paints. The organized sector has grown at a CAGR of 11.5% in the last five
years. The unorganized sector comprising of over 2000 units has a combined market share of
around 30%. The major players are Asian Paints, Containerload, Berger, ICI and Shalimar.
Recently, world leaders like Akzo Noble, PPG, Dupont and BASF have set up base in India with
product ranges such as auto refinishes powders and industrial coatings. Kansai Paints of Japan,
which entered into collaboration with Containerload in 1984, is now the holding company for
Containerload with 64.52 % equity holding. PPG has a joint venture with Asian Paints to
manufacture industrial coatings. Jenson & Nicholson and Snowcap India are no longer active
players because of dwindling sales in recent years. In the 1990s, helped by a growing
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  economy, the paint industry had recorded a healthy growth of 12-13 % annually. This was mainly
due to a drastic reduction in excise from a staggering 40% to 16%. However, the growth was
restricted in 2000-03 to single digits. There was a revival in 2003-2004 with a robust growth of
13%.8.The per capita consumption of paint in India is 700 grams against 19 kg in the U.S., and
2.7 kg and 5.8 kg in other developing countries like China and Brazil. As the consumption goes
with affordability, the low Indian figure is not a surprise. High excise duties, low technology and
low capital costs for production led to the incidence of a high number of units in the small scale
sector. However, since 1992 the government has been consistently lowering duties from 40.5% in
1992 to around 16% currently. This has led to lowering of price differential between the organized
and unorganized sector. Moreover the paints sector was also allowed to claim MODVAT credit
on petro-based products, thus lowering the excise incidence further.

Paints and Their Market Share

Product Share

%Product

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Companies & Their Collaboration

COMPANY COLLABORATION AREA OF COLLABORATION

BERGER PAINTS Herbert sons GmbH; Auto coatings;
Valspar Corp. Inc, Heavy duty coatings;
Teodur BV Power coatings

ASIAN PAINTS PPG Ind. Inc., Electro deposition primers;

Sigma coatings, High performance coatings,
Nippon Paints Power coatings

KANSAI Kansai paints Auto & Industrial coatings

NEROLAC

ICI(India) ICI plc. Auto refinish

J&N Herbert sons GmbH Auto coatings

Drivers to the growth of the Paint Industry

1) Increasing level of income and education: The increasing proportion of young population
along with increasing disposable incomes is leading to a change in consumer habits. The Indian
economy is shifting from a savings economy to a spending economy. With more income at their
disposal, people are now ready to pay for better products and paint is no exception.

Educated consumers are more brands conscious and seek value in what they consume. Thus, paint
companies offering value-added features like non-toxicity, weather protection, texture, eco-
friendly production, etc. will attract more demand.

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These value-added products enable the manufacturers to earn a better premium as compared to the
regular paints, thus offering higher margins.

2) Increasing Urbanization: Urbanization is leading to a shift from temporary houses to

permanent houses. Urban houses are well-designed in its interior as well as exterior aspect. This
calls for more houses being painted using medium and premium paints. For urban houses, interior
design is becoming a fashion statement and a lot of paint is used to decorate the interiors. This will
lead to an increase in the per capita consumption of paint which will increase the overall demand
of paint. Urbanization also brings more nuclear families. More nuclear families mean more number
of houses even for the existing population thus further driving the demand.

3) Increasing share of organized sector: Decrease in taxes on key raw materials will improve
the position of the organized players. The Organized sector is expanding its distribution network
and adopting the installation of tinting machines at retail outlets. These tinting machines offer a
wide variety of colour shade options to choose from. The unorganized players are not in a position
to offer such facility as it is comparatively capital intensive. Shift in use, from distemper segment
towards premier segment is also shifting market share from the unorganized sector to the organized
sector.

4) Development of the Realty, Automobile and Infrastructure sector:The growth of the paint
industry is largely dependent on the development of the realty and housing sector, as decorative
segment generates about 70% of the total paint demand from this sector. The Automobile segment
generates more than two-third of the demand for Industrial paints, and hence is the growth driver
for Industrial Paints. The Infrastructure segment creates direct demand for paints as well as creates
indirect demand through supporting the growth of the realty, automobile, FMCG and other
industries where paint is used.

The growth potential in the above 3 sectors is immense, the paint industry being dependent on
these 3 sectors is expected to grow along with them.

5) Availability of financing options: Easier housing finance and auto finance is expected to favor
more people to buy houses and travel in personal vehicles. This will drive the growth of housing
and automobile sector, of which the Paint industry will get its share.

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 6) Increasing Penetration in the Rural Markets: Paint usage in rural areas is generally in the
distemper segment, hence dominated by the unorganized players. Demand in rural areas is
dependent on agriculture, which is dependent on the monsoons. With the development of irrigation
facility, the dependence of agricultural output on monsoons will be on a decreasing trend. Also,
with the modernization of agriculture and accompanying development of rural India, consumer
preferences are expected to improve. Paint companies are expanding their distribution network in
rural parts of India, which is a relatively untapped market for the organized players. These factors
supported by the increasing penetration of the paint companies will help drive the demand for
paints.

Main Concerns of the Paint Industry

Cost of raw materials: The Cost of Raw materials are an important factor as the industry
is raw material intensive. Fluctuation in the prices of Titanium dioxide and Petroleum
directly affect the production cost. This is more of a concern for the Industrial segment as
compared to the Decorative Segment, as it is comparatively easier to pass on the costs in
case of decorative paints. Also, a large portion of raw materials are imported, leaving the
cost factor vulnerable to exchange rate fluctuation.

MNC’s entering the Indian Paint Market:The entry of Established foreign players in the
Indian market may increase the competition among the players of the industry. This may
lead to price competition which may impact the profit margin of the companies. As a result,
the increase in volume growth may not equally reflect in the profit growth for the
companies.

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 Paint Industry Prospects (Historical Growth of Last 5 Years & Next 5 Years)

The market for paints in India is expected to grow at 1.5 times to 2 times GDP in the next five years. With GDP growth
expected to be over 7% levels, the top three players are likely to clock above industry growth rates, especially given the
fact that protection that was available to unorganized players has come down significantly.

Decorative paints segment is expected to witness higher growth going forward. The fiscal incentives given by the
government to the housing sector have benefited the housing sector immensely. This will benefit key players in the long
term.

Although the demand for industrial paints is lukewarm it is expected to increase going forward. This is on account of
increasing investments in infrastructure. Domestic and global auto majors have long term plans for the Indian market,
which augur well for automotive paint manufacturers like Kansai Nerolac and Asian-PPG. Increased industrial paint
demand, especially powder coatings and high-performance coatings will also propel top line growth of paint majors in
the medium term.

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Top 10 paints companies in India:

1. ASIAN PAINTS

2. BERGER PAINTS

3. KANSAI NEROLAC

4. JENSON & NICHOLSON (I) LTD

5. SHALIMAR PAINTS

6. BRITISH PAINTS

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7. SNOWCEM PAINTS

8. DULUX PAINTS

9. SHEENLAC PAINTS

10. NIPPON PAINTS

MICHAEL PORTER’S FIVE FORCE MODEL ANALYSIS OF PAINT INDUSTRY

THREAT OF NEW ENTRANTS

Paint market in India is dominated by few players, making it difficult for anyone newly entering the industry to
compete.

It is estimated that 18-20% of the total raw materials used in the industry are imported

Working capital needed is high-causes difficulty to local players & big firms enjoy economies of scale

Big players have high brand image & quality products & good promotional activities to attract customers

Threat of new entrants is Low.

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THREAT OF SUBSTITUTES

In rural areas lime wash is used as substitute

Another alternative for decorative wall paints available today is Wallpaper

Availability of Paint varieties are there

Buyer propensity to substitute is low

Relative price performance of Decorative walls is High

Availability of substitutes is Low

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 BARGAINING POWER OF SUPPLIERS

Raw material intensive production- over 300 rawmaterials make the final product

Raw materials-pigments, binders, additives, solvents, etc.

Titanium Dioxide is one of the key pigments used in the production of paint and is facing a global supplyshortage.
Thus, supplier of this material has solid bargaining power.

Other raw materials-crude derivatives-have highprice fluctuations affecting industry profits

Bargaining power of suppliers is Medium

BARGAINING POWER OF BUYERS

Households and Industrial Users are the main customers of this industry.

For housing requirements, the buyers are building contractors who buy in bulk and end people who paint their house.
Customers are more price sensitive because for them number of options are available and decisions are made based on
quality, price and differentiating factors like weather protection, environment friendly paints

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 Industrial segment is low margin high revenue business and buyers of these segments are knowledgeable about their
needs. Therefore, price comparison is done effectively by the customers. However, The leading Industrial paint
suppliers have their expertise in their favour, which limits the bargaining power of buyers.

Bargaining power of buyers as a whole is Medium.

COMPETITIVE RIVALRY

About 80% of organized sector contributed by top 3 players

Current market growth rate can provide ample room of opportunity for all the players of the industry to flourish.

Asian Paints is the only paint company that manufactures PAN (phthalic anhydride) which is one of the main raw
material for paint industry.

Presence of unorganized sector –can cause competition Competitive rivalry is Low

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Company Profile

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History

 The name Berger or Lewis Berger is today synonymous with color worldwide. But actually the
origin of the name dates back to over two & a half centuries in England in 1760, when a young
color chemist named Lewis Berger, started manufacturing in Europe, 'Prussian blue' using a secret
process that every designer and householder coveted. Mr. Berger perfected this process & art of
the blue color, which was the color of most military uniform of that time. Enriched by the
imagination of Lewis Berger, the unending quest for creation and innovation in the world of
color& paints still continues.

 The history of Berger Paints India Limited as a company started in 1923 as Hadfield's (India)
Limited which was a small colonial venture producing ready- mixed stiff paints, varnishes and
distempers setup on 2 acres of land in one of India's first industrial towns close to Kolkata in
Howrah, Bengal. Subsequently in 1947, British Paints (Holdings) Limited, an international
consortium of paint manufacturing companies bought over Hadfield's (India) Limited and thus
the name changed to British Paints (India) Ltd. The gentleman who took over, as its first managing
director was Mr. Alexander Vernon Niblet, an Englishman who was later on followed by Mr.
Alfred Godwin in 1962.

 Further in the year 1965, the share capital of British Paints (Holdings) Limited was acquired by
Celanese Corporation, USA and the controlling interest of British Paints (India) Ltd was acquired
by CELEURO NV, Holland, a Celanese subsidiary. Subsequently in 1969, the Celanese
Corporation sold its Indian interests to Berger, Jenson & Nicholson, U.K. Then onwards the
company British Paints (India) Ltd became a member of the worldwide BERGER group having
its operations across oceans in numerous geographies and this marked the beginning of Lewis
Berger's legacy in India – which the company would later take forward to enviable heights.

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  From 1973 the company entered into one of its dynamic phases of business with introduction of
new generation products in the industrial, marine and decorative segments under the able
leadership of it first Indian Managing Director Mr. Dongargaokar Madhukar.

 Year 1976 was another turning point in the history of the company when the foreign holding in
the company was diluted to below 40% by sale of a portion of the shares to the UB Group
controlled by Mr. VittalMallya. The reins of the company were taken over by Mr. Biji K Kurien
as its Chief Executive & Managing Director in the year 1980. Finally in the year 1983, the British
Paints (India) Limited, changed its name to Berger Paints India Limited.

 The entire 80s & 90s saw the lunch of many new products from company's stable such as premium
emulsions and high quality acrylic distempers. The COLOUR BANK tinting system was launched
through which the consumer could select from a range of over 5000 shades.

 Again the fortunes of the company changed hands in 1991 with UB Group's stake in the company
bought over by the Delhi based Dhingra brothers, Mr. K.S. Dhingra & Mr. G.S. Dhingra and their
associates of the UK Paints Group. Presently Dhingras' control a majority stake of almost 73% in
Berger Paints India Limited, which is a professionally managed organization, headquartered in
Kolkata, with the stewardship resting since 1994 until 2012 with the Managing Director Mr. Subir
Bose. The current managing director of Berger Paints India Ltd is Mr. Abhijit Roy.

Company Background

 Established in 17th December, 1923, the company then known as Hadfiled's (India) Limited; was
a small paint company based in Kolkata having its only manufacturing facility at Howrah, West
Bengal to produce ready mixed stiff paints, varnishes and distempers. Post-independence, towards
the end of 1947, British Paints (Holdings) Limited, U.K acquired Hadfield's (India) Limited and
thus British Paints (India) Limited was incorporated.

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 From a production capacity of 150 tones and sales turnover of around Rs. 25 lakhs in 1947, the
company has come a long way to become at one point of time; a part of the worldwide BERGER
group in 1983 and thereby acquiring its present name Berger Paints India Limited to having
subsequently gone through further ups & downs as well as ownership changes to gain its present
status wherein the majority stake is with Delhi based Dhingra brothers and business revenue more
than Rs 4465 crs.in FY 2015-16.

 Today Berger Paints India Limited, having solely used and developed the name and trademark
BERGER and all its variants in India, is a household name in paint. With Head Office in Kolkata
the company manufactures and markets a range of decorative & industrial paint products under
various product brands and has it operations spread throughout the length & breath of the country;
with seven manufacturing facilities in India and more than 85 depots, several regional & area
offices, besides four facilities overseas. It has a workforce of over 2666 employees and a
countrywide distribution network of 20000 plus dealers.

 Berger Paints has clearly demonstrated its commitment to Indian consumers for over 88 years, by
offering its varied range of high performing quality products backed by highest level of customer
service. Company's high ethical standards in business dealings and its on-going efforts in
community welfare make Berger Paints India Limited a responsible corporate citizen. While the
company's decorative and Industrial paints continue to gain an increasing market share, Berger as
an organization has managed to achieve sustainable competitive advantage through innovations
in all spear of business, desire to excel and by creating a winning culture & abiding faith in its
values & philosophy among all its stakeholders.

 With Berger Paints we can now see your imagination of colour unfurl in front of your eyes and
watch your home come alive, telling a thousand tales.

 Transform our home with the POWER OF IMAGINATION.

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Board of Directors:

Mr. Kuldip Singh Dhingra (Chairman)

Mr. Gurbachan Singh Dhingra (Vice-Chairman)

Mr. Abhijit Roy (Managing Director)

Mr. Aniruddha Sen (Vice President & Company Secretary)

Mr. Subir Bose (Member in the Board of the Company)

Mr. Anil Bhalla

Mr. Gerald Kenneth Adams

Mr. Gurcharan Das

Mr. Kamal Ranjan Das

Mr. PulakChandan Prasad

Mr. SrijitDasgupta

Mrs. Rishma Kaur

Mr. Kanwardeep Singh Dhingra

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BERGER PERFORMANCE:

 BPIL IS THE 2ND LARGEST PAINT COMPANY IN INDIA.

 20,000 PLUS PAINT RETAILERS, 90 STOCK POINTS, 6 RDCS, 7

PRODUCTION UNITS

 TOTAL CONSOLIDATED GROSS TURNOVER OF 4465 CRS IN 2018 – 19

 RECORDED THE FASTEST GROWTH IN THE DECORATIVE

PAINT SEGMENT IN INDIA GROWING @ 20%

BERGER PRODUCTS:

BERGER INTERIOR EMULSION VS COMPETITION

Product Category Berger Brand Asian Brand ICI Brand Neroalc
Brand
Luxury Interior Silk Royale Velvet Touch Impression
Emulsion
Luxury Interior RangoliEasy Clean - NA - 3 in 1 Emulsion - NA -
Emulsion
Premium Interior Rangoli Premium Dulux Super Beauty Gold
Emulsion Emulsion Smooth
Economy Interior Bison Emulsion Tractor Rainbow Beauty
Emulsion Emulsion Smooth
Distemper Bison Distemper Tractor Magic NAD
Distemper

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BERGER EXTERIOR EMULSION VS COMPETITION
Product Category Berger Brand Asian Brand ICI Brand Neroalc Brand
Premium Exterior Weather C o a t All Apex Ultima Weather shield Excel Total
Emulsion Guard Max
Regular Exterior Weather Coat APEX Weather shield Excel
Emulsion
Economic Exterior Walmasta ACE Promise Suraksha
Emulsion

BERGER ENAMEL RANGE VS COMPETITION

Product Category Berger Brand Asian Brand ICI Brand Neroalc Brand
Premium Enamel Luxol High Gloss Premium Dulux Gloss Nerolac Syn.
Enamel
Economy Enamel Jadoo Utsav Enamel NA Goody
Enamel/Butterfly
Satin Enamel Luxol Satin Enamel Premium Satin Dulux Satin Nerolac Satin
Enamel

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Product Lines:

INTERIOR
WALL COATING
DESIGNER FINISHES EXTERIOR WALL COATING
Silk Illusions Design EXTERIOR EMULSIONS
Metallica Weather Coat All Guard
Silk Illusions Metallica Weather Coat Anti-dust
Silk Illusions Marble Weather Coat Smooth
Finish Walmasta
INTERIOR
EMULSION Weather Coat Tile Protector
Silk Glamor Weather Coat Kool & Seal
Silk Luxury
TEXTURE FINISHES
Emulsion
Weather Coat Texture
Easy Clean
Weather Coat Hi- Build
Rangoli Total
Weather Coat Tartaruga
Care Bison
Acrylic
Emulsion
INTERIOR WALL
DISTEMPER
Bison Distemper

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 BERGER WALL & WOOD PROTECTIVE
PAINTS COATING HIGH
ENAMELS PERFORMANCE
Luxon Satin Enamel PROTECTIVE
Luxol Xtra Super Gloss Enamel COATINGS
Luxol High Gloss Enamel Epilux- The Range
Berger Butterfly Gp Enamel Of Epoxies Epilux
Luxol Lustre Frx Anticorrosive
CLEAR WOOD Coatings
Woodkeeper Epilux Super Build St Glass
Melamine Finish Flake Coating Epilux 950
Woodkeeper Easy Clean 2k Pu Super High Building
Imperia Coating Epimax Gpe
Imperia Water Based Pu Coating
Imperia Colour Zone Epilux
Imperia Epoxy Block Primer Durebuild Fre
Wood Keeper Fill-o-dent Coating Epilux
Wood Keeper Wood Stainer Stl Coating
Epiphenolic
Hbtl
CONSTRUCTION
Epilux Floor Coatings
CHEMICALS
Dampstop Crack Fill Lumerous- Heat
Paste Resistant Coatings
Advanced Latex Plus Crack Zinc Anode-
Fill Powder Tile Adhesive Inorganic
Plus Tile Adhesive Zinc Silicate Coatings
Latex Plus Latex Bergerthane- The
Shield 2k Dampshield Polyurethane Range
2k Cementmix Plus Aqugreen Coatings
Illusion Sealer ti

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SWOT ANALYSIS

STRENGHTS WEAKNESSES

• 1/5th market share and 3 rank • Focus on decorative segment where

competition is intense

• Wide range of products • High lead content

• Wide supply chain network • Limited liquidity options

• Excellent brand perception and brand

awareness

• International presence

• Lone supplier of protective coatings to

nuclear power plants and coatings used
by companies like Mercedes

OPPORTUNITIES THREATS

• Innovation with changing trends • New entrants and local companies

• Increasing urbanization • Fluctuating raw material prices

• Diversification • Stiff competition

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COMPETITOR ANALYSIS

COMPANY MARKET SHARE

ASIAN PAINTS 30%

KANSAI NEROLAC 20%

BERGER PAINTS 19%

ICI 12%

OTHERS 19%

MARKET SHARE

19% ASIAN PAINTS

30% KANSAI NEROLAC
12% BERGER PAINTS
ICI
19% 20% OTHERS

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News Last 6 Months:

 February 18, 2020: Berger Paints declares interim dividend of ₹1.90:

 A meeting of the board of directors of Berger Paints was held on February 18, 2020, where in declared an
interim dividend of ₹1.90 per equity share (190 per cent) for the financial year 2019-20. Further, the company
has fixed March 3, 2020 as the record date for the purpose of determining entitlement of shareholders to the
interim dividend, which would be paid on March 16, 2020.

 Shares of Berger Paints closed at ₹578.75, down 0.25 per cent from its previous close on the BSE.

 January 13, 2020: Berger Paints net zooms 40% in third quarter:

 Berger Paints reported a near 40 per cent rise in standalone net profit to ₹166 crore for the quarter ending
December 2019.

 Profit in the corresponding quarter last fiscal stood at ₹119 crore.

 During the period under review, the company reported a near three per cent rise in Revenue from Operations
(standalone) to ₹1,502 crore.

 EBIDTA (excluding Other Income) for the quarter stood at ₹261 crore, or a near 17 per cent rise over the ₹224
crore it reported in the corresponding quarter of the previous fiscal.

 Berger Paints stock up marginally after resuming operations:

 The company had closed down factories and most of its business from March 24, 2020, on account of the
lockdown arising out of the COVID-19 pandemic.
 March 25, 2020: Berger Paints India announces closure of factories and most
businesses

 Amid COVID-19 pandemic

 Berger Paints India announced that accordance with the advisories/ instructions issued by the Central
Government and the State Governments and in order to ensure health of all stakeholders in view of the
COVID 19 pandemic, the factories and most of the businesses of the Company are closed till the end of the
lockdown. The Company is taking steps to maintain essential services such as security, safety and IT
services. The employees have been advised to work from home, to the extent possible.

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 Marketing Strategy

MARKETING MIX (Interior Wall Coatings)

Marketing decisions fall into four main controllable categories namely

Product

Place
Price
Promotion

Relating these factors with respect to Berger Paints, Interior Wall Coating Product.

Product :- Berger is committed to offer quality products that satisfy consumers‟ ultimate desires
from paints with the help of state-of–art technology. Berger always believes in one step ahead in
offering new product to create more value for customers‟ money. Berger outsmarts other
competitors of the market through its one step in advance policy and innovative market offers.
Berger is trying to fill up all holes of the market through offering a wide range of products to
meet the needs (Premium to Economy Paints) of different types of users and to solve the
different types of functional requirements (Industrial, Decorative & Marine). Due to shift in
market growth trends Berger is trying to establish itself in the economy segment of the paint
market.

Place :- Another major component of marketing mix is place. BERGER was able to include
inventory, transportation, coverage, channel, logistics and market and market segments etc. under
these marketing mix components.

Differentiated market segment

Berger‟s market segments are differentiated. They use different types of marketing mix for

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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 their product will 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.

Price :- In the paints industry price is the used only as a differentiator between the various
segments in the same product line. The prices of different brands in the same segment remain
more or less similar, with just a difference of 30 to 40 paise per square feet. Some of the
specialty products, which are not produced by all brands, may be priced at a higher price.

Pricing decisions in the paint industry largely depend on the price of the inputs like petro
products, other raw materials, excise duties and taxes and the general operating profits. Generally
increase or decrease of prices is effected across all brands in the market. Most of the paint
companies offer a 5% margin to the dealer. Due to internal competition, the dealers pass on this
advantage to the customers by reducing their own margins to 2-3%. This is a cause of concern
for the paint companies because they have to keep a constant check on the prices offered in the
market. The dealers offer more of discounts and the companies are not able to firm up the prices.
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Paint companies offer a lot of discounts like cash discounts, volume discounts, seasonal
discounts and allowances. The dealers take advantage of these discounts to gather more business.

Promotion:- The paint industry until 1999 was concentrated mostly on increasing sales by
intensive trade promotion wherein the dealers, contractors and other components of the supply
chain. There was little emphasis on theme advertising directed towards the customer. A recent
trend that is emerging in the Indian paint market is that the major brands have all identified the
importance of reaching out to the common man instead of just limiting themselves to the
intermediaries.
Advertising strategy: BERGER follows different strategy for developing its strategy. It
depends on some characteristics that is product life time, brand etc. Media: Berger used
different media for advertising like- on-air advertisement, television, newspaper, magazines.
The dealers
are educated with the company background, products and service etc The

time to time selling incentive are given by company according to performance of deal
er and market demand. In-Store Displays: Point-of-Purchase, Berger paints Banners,
Demonstrations of color on wall, etc are provided by the company. Temporary Price Reduction (TPR):
They get margins plus some incentives promotion scheme to maintain the dealer. Contests: Dealer to
dealer contest is kept to promote push strategy and best dealer gets the reward. Berger paints
likes to do the same within same geographic areas. Sampling: Allowing the dealer to experience the
product or service by providing free samples so as he can promote word of mouth. Berger‟s sales promotion
consists of short-term incentives to encourage the purchase of sale of a product or services.
Berger Paint‟s advertising has created brand awareness, highlighted what the brand has to offer
and has consistently brought all of it top-of-the-mind for the customer. But the outreach effort
does not end there. Berger Paints has recognized the importance of communicating to and
involving key players who influence the final brand choice. These include channel partners,
contractors and painters, on whom Berger Paints focuses by initiating and developing innovative
activities and promotions. This helps build the Berger Paints family so that customers get a high
degree of personalized service and professional guidance to facilitate their final decision.

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Sales Promotion:

Sales Promotion is an important component of marketing communications mix. It adds an extra

value to the product and hence prompts the dealer or consumer to buy the product. In a specific

sense, sales promotion includes those sales activities that supplement both personal selling and
advertising, and coordinate them and make them effective, such as displays, shows,
demonstrations and other non-recurrent selling efforts not in the ordinary routine.

Sales promotion can be used:

For facilitating introduction of new products

For overcoming unique competitive situation
For unloading accumulated inventory
For overcoming seasonal slumps
For getting new accounts
For retrieving lost accounts

As a support and supplement to the advertising effort

As a support and supplement to the salesmen‟s effort
For persuading salesmen to sell the full line of product
For persuading the dealer to buy more or increase the size of order

Commonly Used Tools and Techniques of Sales Promotion:

Demonstrations
Trade Fairs and Exhibition

Coupons, Premiums, Free offers, Price-offs, etc

Free samples
Joint promotion

Contests (consumer contests, dealer

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 contests) Merchandising or Display
Sales promotion on the internet

The company has been concentrating more on sales promotion than on advertising. Customer is
returning to the store after an average of about three years it is better to concentrate more on the
dealers who are in the business throughout the year. Keeping this in mind the company‟s decision
of doing more sales promotion than advertising stands justified. Sales promotion can broadly be
divided into two categories:

1) Customer promotion – this section includes all the sales promotion activities directed towards
the customers. Scratch cards that are provided with specific size of packages are examples. The
company comes out with many different sales promotion schemes during the festival season,
especially the durga puja festival in Orissa and West Bengal. There are a number of gifts and
schemes on the larger packs. Coupons and free gifts are offered on packs of more than 10 kgs.
The company also offers a large number of services to the customers to assist them in their

buying decisions. These services are offered on the company‟s website to make it accessible to a
very wide range of customers.

2) Trade promotion – As part of the company‟s policy, huge emphasis is given on trade
promotion. The dealers and contractors who are a part of the distribution chain are given special
attention. The company comes up with several incentive schemes for the dealers. The most
popular schemes include cash discounts, foreign trips and gifts such as refrigerators etc for
dealers who succeed in meeting or exceeding pre-determined sales targets. The company also
organizes regional dealer meets regularly. Here the dealers are briefed about the company‟s new
products and the technical details and application procedures of these products. The company
also aims at building and retaining dealer loyalty through these meetings.

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STP of Interior Wall Coating:

SEGMENTATION

Urban and rural areas

Dry regions where dust-free paints are required Metro Cities, T2/T3 cities

Working Professionals, House-owners, Industry users

Income- above Rs. 50000

Upper, Middle, Upper-middle and lower middle class

People who want their homes to look decorated

TARGETING

Working Professionals, House-owners, Industry users

Upper, Middle, Upper- middle and lower middle class

POSITIONING

“No Daag No Dhabba”- Berger provides paints which are scratch resistant
and dust-free and provides coatings which suits the requirements like
offices have different coatings and homes have different coatings.

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PLC of the Interior Wall Coating as well Berger Other Products

Berger’s Interior Wall Coating is in Growth Stage.

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Digital Marketing & Promotional Strategy

 The company’s strategy is to select the target market and position its product with the help of product
segregation, service segregation, and image segregation.

 This helps to capture the market by providing better quality products at an affordable price.

 For Diwali campaign, Berger paints collaborated creativeness, talent and colours together making their activity
not only exclusive and attractive but also engaging.

 Berger Express Painting: #JaldiKaro was framed to announce and endorse Berger’s new quick service paint
job – Express Painting, using appealing and interactive social media activity and communication.

 Social Media Marketing

 Berger paints have a strong presence on social media. Berger paints have seen more than 95K followers on
Twitter, 12 K followers on Instagram and massive 1.17 million fans on Facebook.

 Berger paints promote its campaign on social media platforms to increase the engagement of the brand with
their audience. The campaign activity also focused on promoting Berger color palettes and textures.

36
Example:
The social media posts helped popularize #PickYourFavourite, #ColourChemistry on Twitter too, as the hashtag
was trending in India.

37
 #JaldiKaro campaign was kick started on multiple social media channels including Facebook, Twitter, and
Instagram with the help of a series of hilarious videos. It further stated the launch of ‘Express Painting’ with a
microsite-based contest to create buzz.
 Leading contestants to their microsite, #JaldiKaro concerned solving a puzzle of reordering the frames of the
video for a chance to win prizes by sharing their score with their contacts on social media.

 It was marked at driving engagement on their microsite by offering a fun activity for their followers to join in,
and also encouraging a domino effect as contestants could invite their contacts. The campaign was getting an
overwhelming reaction from their followers.

 TV Commercial
 Television is a significant medium for promotion its products especially the high-end combinations. It aims to
an emphasis on its product range for combinations and expands its resources across towns and small cities.

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  Offline Advertising
 Even offline the brand made a big splash on travel media on the metros, domestic flights and Volvo passage
buses, etc.

Growth & Future Plans

 The company posted revenues of around INR 2,700 crore in the 2020-21 financial years. They are aiming to
double their sales to around INR 5,500 crore in the next four years. The company has around 12,000 dealers
across the country and the company would try to expand them further.

 The company is planning to invest on expansion. Berger Paints India Ltd Managing Director & CEO Abhijit
Roy said, “We are already in the process of investing on two new plants. While around Rs 220 crore is being
invested in a facility near Bangalore, another plant is coming up near Pune.”

39
 The plant near Bangalore would manufacture water-based paints; the second plant near Pune would provide to
industrial segment.

 Even, the company is also planning to set up a plant in Assam. Assam government is expected to allot two
plots of land in two distinct locations, in Guwahati and in Tezpur,

 The company spent around INR 50 crore on marketing events last year. It will keep growing by 15-20% per
annum.

 Product line and Marketing of Berger Paints

 Berger Paints is a brand known for its superior quality produce. It produces paints and many other materials
for both commercial and home use. The products can be broadly classified into:
• Interior Wall Coatings
• Exterior Wall Coatings
• Berger Metal and Wood Paints
• Undercoats
• Construction Chemicals
• Wallpapers

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The services also include delivery of the paints for the person ordering all the products for his use plus a virtual
painter and even a preview facility. With located in 4 major regions, Berger Paints produces these high-quality
products and sells it at a rate cheaper than its competitors.

With the tagline “Paint your imagination”, Berger Paints easily sweeps the eye of its customers. It is catchy and
once you hear it, you probably will trust the brand. And in India, film stars sell, because people worship them. And
Berger Paints got on this idea at the very start and till date has been appointing famous stars and celebrities to market
its products in Advertisements. Actors like Katrina Kaif and Pankaj Tripathi.

41
And not just that targeting on the sale of eco-friendly paint and marketing it with religious activities like Durga Puja
in West Bengal, Berger Paints always stays a step ahead with its innovative marketing strategies. No doubt that with
such good ideas and catchy phrases, and the never-ending products, Berger Paints is the #2 paint brand in India

 Berger Paints is very heavy on its marketing and promotions. They have very unique and different concepts
when it comes to TV commercials which focus on various pain points of painting a house and how Berger
Paints has the solution for it. The tag line of the brand is ‘Paint your Imagination’

 Most of its commercials are targeted to family and kids and hence are very popular and remembered by the
audiences. They are the first ones to create an ‘Anti Dustt Paint’ in India as well. Actor Pankaj Tripathi too is
seen on print and some TV commercials done by the brand for this product.

 The brand ambassador of this product was Kartina Kaif and the Berger Silk Glamor ad campaign done by the
brand with her was very well appreciated by the audiences. She is roped in to promote the luxury paint
emulsion series of the brand. It showcased beautiful walls done up by Berger Paints and how can one make
their home gorgeous by using the Silk Glamor Paint. The tag line for this product is ‘Deewarien Nahin,
Yaadien Hain’

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  Berger Paints also does a lot of CSR activities and is known for its eco-friendly products and associations with
other communities for the same.

 This year, during the Durga Pujo celebration in West Bengal, Berger Paints in association with West Bengal
Pollution Control Board (WBPCB) and Kumartuli Association provided eco-friendly products to Idol-makers
of Kolkata to help promote the usage of eco-friendly and user-friendly substitute to solvent paints.

 Berger Easy Clean Paint:

 This is one of the most loved and popular products made by the brand. It is known for its superior cleaning
qualities and claims that the wall will remain pristine as they were on the first day of painting. The tag line for
this product is ‘No Daag, No Dhabba’

 They have also launched a variant in this called as Berger Easy Clean Fresh.

 The brand has one many Tv commercials for this paint particularly. Some of them are as follows:

#Berger Easy Clean – Football Campaign

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#Berger Easy Clean – Haldi Campaign

Berger Paints is also known for its Express Painting service which is very popular in families who don’t have enough
time to stay at home while they need to get their homes painted.

The brand has many TV commercials and has done print advertising as well to promote this service.# Berger
Express Painting – Husband and Wife

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Berger Express Painting – T20 Of Painting

Berger Paints is known for its innovation and eco-friendly products. Recently the chairman of the company, K S
Dhingra said “We will soon commence water and solvent-based decorative, industrial and protective coating, resins,
emulsion and construction chemical manufacturing facility at Sandila, Uttar Pradesh, at an estimated cost of Rs. 200
crores.

Ways to Improve current digital marketing strategy:

Company now in present situation is also following some of these strategies to boost their sales revenue, but more
focus if given to the below strategies, can increase the sales revenue at a very significant incremental rate:

Strategy 1: Choose and Leverage the Most Appropriate Social Network

Strategy 2: Be Consistent with Your Messages & Developing a Cross Channel Marketing Mix.
Strategy 3: Post as Frequently as Possible
Strategy 4: Find Your Voice
Strategy 5: Optimize Your Profile Bio
Strategy 6: Increase Inbound Traffic
Strategy 7: Improve Search Engine Optimization (SEO)
Strategy 8: Increase Conversion Rates

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Strategy 9: Answer and Acknowledge
Strategy 10: Build strong communities through content marketing
Strategy 11: Use the power of videos to help your brand stand out
Strategy 12: Widen consumer base through Influencer Marketing
Strategy 13: Drip email marketing
Strategy 14: Run campaign in regional languages
More Strategies for Customer Loyalty for
Corporate Responsibility
Social Media
Nostalgia
Trust
Discounts and Special Offers
Customer Service

Sales Forecasting Using Excel:

Historical Data of 5 Quarters from Dec-18 to Dec-19 have taken to Forecast sales for Next 4 Quarters i.e. from
March 2020 to Dec 2020.

Quarters Sales (In Crore) Growth

Dec-18 1,616.70

Mar-19 1,472.09 -10%

Jun-19 1,716.53 14%

Sep-19 1,598.58 -7%

Dec-19 1,695.87 6%

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 Mar-20 1705.57 1%

Jun-20 1734.33 2%

Sep-20 1763.10 2%

Dec-20 1791.56 2%

Berger Paints has recorded significant growth since March-19, as shown above negative growth rate of 10%, But
Eventually in the next quarter, Berger Paints recovered from Negative 10% to Positive 14%. Continuing variations in
the growth with negative as well in the next quarters, then positive, it will be growing at only 2% constant growth rate
that is forecasted for upcoming 4 Quarters till December 2020.

Sales forecast assumptions:

These factors - known as the sales forecast assumptions - form the basis of forecast above:

Assumptions:

The market:
 The market you sell into will grow by 2 per cent.

 Market share will shrink by 2 per cent, due to the success of a competitor.

Berger’s resources:
 Berger will double your sales force from three people to six people (For Example), halfway through the year.

 Berger will spend 20 per cent less on advertising, which will reduce the number of enquiries from potential
customers.

47
 Overcoming barriers to sale:
 Berger will be moving to a better location, which will lead to 30 per cent more customers buying next year.

 Berger will be raising prices by 10 per cent, which will reduce the volume of products sold by 5 per cent but result in
a 4.5 per cent increase in overall revenue.

Berger’s products:

 Berger is launching a range of new products. Sales will be small this year and costs will outweigh profits, but in future
years Berger will reap the benefits.

 Berger have new products that have the potential to increase sales rapidly.

 Berger have established products that enjoy steady sales but have little growth potential.

 Berger have products that face declining sales, perhaps because of a competitor's superior product.

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Distribution network / Channels

 With Head Office in Kolkata the company manufactures and markets a range of
decorative & industrial paint products under various product brands and has it operations
spread throughout the length & breath of the country; with seven manufacturing facilities
in India and more than 85 depots, several regional & area offices, besides four facilities
overseas. It has a workforce of over 2500 employees and a countrywide distribution
network of 15000 plus dealers. The orders are collected by the sales executives and
passed on to the nearest depot. The depots are fed by regional warehouses. These depots
maintain a minimum order quantity which is arrived at from the monthly demand
forecast. The material is dispatched from the depot in the name of the dealer. Generally,
some orders of the same region are clubbed together and dispatched in trucks. Finally, the
truck is unloaded and the small orders of the dealers are dispatched to them.

 The Projected sales can be easily achieved by the company by existing Distribution Channels, as per the
historical data, but problem is there is not that significant growth rate. There is just 2% Growth in terms of
sales Revenue projected for over 3 quarters. Moreover, now there is a situation of COVID-19 Pandemic, so it
can be a major challenge for company. But as far as real estate and Industrial Sector majorly will grow,
company can achieve its projected sales.

 To increase the growth rate, company should work in the product lines, invest in newer product or enhance the
quality of existing one. There can be many ways, company can increase its marketing budget in relation to its
profit margin if feasible.
 Company should divest the money from the products which are in Decline stage of PLC or Dogs category of
BCG Matrix.

 Retailer network should also be increased.

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Manufacturing Unit Manufacturing Unit Manufacturing Unit

Depot Depot Depot Depot

Depot

Dealer Dealer Dealer Dealer Dealer Dealer

Dealer

BERGER
Feedback

Product

Customer Retail
Depots
Feedback

Product

Feed back
Direct dealers

Feed back Customer Wholesale

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BERGER‟s hybrid marketing system

Direct channel

Customer

BERGER

Indirect channel

Direct dealer Customer

Factor Analysis:

Research To Study Consumer Behaviour

Topic: Towards Interior Wall Coating.

 The Factors were identified after having Personal Interview with 10 Individuals.
 21 Factors were identified on which questionnaire was made and responses were filled
using Google Forms. Data was collected using 5 Point Likert Scale.
 Note: Focus Group Discussion was not possible because of this Pandemic Situation, So
only Personal Interviews were taken.
 Data was collected by 51 Individuals.

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 Total Variance Explained
Extraction Sums of Squared
Initial Eigenvalues Loadings Rotation Sums of Squared Loadings
% of Cumulative % of Cumulative % of Cumulative
Component Total Variance % Total Variance % Total Variance %
1 5.897 26.806 26.806 5.897 26.806 26.806 2.584 11.744 11.744
2 2.342 10.646 37.452 2.342 10.646 37.452 2.538 11.536 23.280
3 1.784 8.107 45.560 1.784 8.107 45.560 2.474 11.247 34.527
4 1.607 7.303 52.862 1.607 7.303 52.862 2.467 11.214 45.741
5 1.332 6.056 58.919 1.332 6.056 58.919 1.899 8.633 54.374
6 1.115 5.066 63.985 1.115 5.066 63.985 1.478 6.718 61.092
7 1.074 4.881 68.866 1.074 4.881 68.866 1.429 6.497 67.590
8 1.037 4.714 73.581 1.037 4.714 73.581 1.318 5.991 73.581
9 .944 4.291 77.872
10 .705 3.204 81.077
11 .672 3.055 84.132
12 .605 2.750 86.881
13 .508 2.311 89.192
14 .440 1.999 91.192
15 .352 1.601 92.793
16 .336 1.527 94.321
17 .301 1.366 95.687
18 .262 1.193 96.880
19 .220 1.000 97.880
20 .190 .864 98.744
21 .163 .739 99.482
22 .114 .518 100.000
Extraction Method: Principal Component Analysis.

Rotated Component Matrixa

Factors Influencing consumer Component
behaviour towards Interior
Wall Coatings 1 2 3 4 5 6 7 8
Brand .793 .032 -.045 .068 -.173 .090 .028 .080
Price .360 .050 .002 .583 .132 .292 .239 .103
Luxury
.342 .292 .533 -.058 .134 .095 -.050 .433

Premium .106 .064 .771 .042 .118 .092 .116 .094

Value For Money

.558 .049 .276 .326 .174 .026 .108 .181

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Lifestyles .162 .275 .685 .169 .106 .040 -.164 -.025
Brand Personality
.426 .529 .323 -.170 -.100 -.012 -.212 .411

Age of Coating/Paint
.355 .312 .302 .509 .089 .051 .121 .263

Reference Group .034 .667 .371 -.242 .279 -.129 .141 -.073

Variety .635 .211 .211 .289 .392 -.088 -.158 -.161

Discount Offers .114 .152 .125 .250 .150 .032 .827 .057
Loyalty Programs .194 -.008 -.096 -.017 .720 .298 .180 .234
Colours Availablity -.255 -.038 .486 .650 -.173 .078 .161 -.075
Advertisement & Other .666 .179 .220 -.039 .313 .032 .199 -.144
Promotions
Competitors .163 .673 .395 .075 -.132 .182 .204 -.075
After Sales Services -.050 -.050 .059 .325 .194 .026 .120 .803
Store Ambiance .076 .876 -.018 .159 -.003 -.003 -.072 .047
Quality .183 -.002 -.053 .824 .211 -.062 -.079 .205
Sizes Availabilty .140 .397 -.084 .256 .050 .631 .119 .087
Uniqueness -.029 .215 .255 .363 .410 -.091 -.586 -.084
Physical Appearance -.011 -.135 .221 -.056 .021 .886 -.014 -.019
Packaging .007 -.014 .279 .225 .768 -.110 -.074 .082

Consumer Behaviour Towards Interior Wall Coating can be understood upto 61%, using these 6 factors.

Productive Value for

Product External Personal/Economic Variants Money Convenience

FACTOR
1 FACTOR 2 FACTOR 3 FACTOR 4 FACTOR 5 FACTOR 6
Sizes Availability
Reference Colours Loyalty
Brand Group Premium Availability Programmes
Physical
Appearance

Variety Competitors Lifestyles Quality Packaging

Advertisement
& Other
Promotions Store Ambiance

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Conclusion: (Factor Analysis):

Therefore, Product, External, Personal/Economic, Productive Variants, value for Money and Convenience.
These 6 Factors are analyzed from different factors falling under each component of Rotated Component Matrix Table
which is calculated by Performing Factor Analysis. So, instead of measuring 20 different Items we can use the above 6
Items or factors to measure Consumer behavior Interior Wall Coatings.
These 6 Factors can help to Understand Consumer Behavior Towards Interior Wall Coatings up to 61% (This 61% is
derived from Total Variance Explained Table at Eigen Value of 1.037 & KMO Value of 0.678)

Conclusion: (Based on all Analysis in the Report)

1) Focusing on the core industry

Focus on paint and grow only in paint. It is a very competitive business. One small mistake can take business back by
3-4 months or even more vs peers. Berger have to tread safely.

Whilst competitors wait for Berger to make a mistake, Berger too wait for competitors to make a mistake,
so that Berger can cover the gap between them, faster.

2) Intensifying the competitive channel

Berger has, in the past, focused extensively on introducing products with special features which have allowed it to
create a strong brand value for such products. Berger products have enabled Berger to sustain its competitive
positioning in the industry.

3) Controlled capital distribution

Berger is clear that whatever capital is available with them they will use it for our paint business and not anywhere
else. This is clear.

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Way ahead for the company:

Berger should not go for diversification, that should not be the way ahead for the company.

 To increase the growth rate, company should work in the product lines, invest in newer product or enhance the
quality of existing one. There can be many ways, company can increase its marketing budget in relation to its
profit margin if feasible.
 Company should divest the money from the products which are in Decline stage of PLC or Dogs category of
BCG Matrix.
 Retailer network should also be increased

References:

https://www.indiainfoline.com/article/capital-market-corporate-news/berger-paints-india-
announces-closure-of-factories-and-most-businesses-120032500112_1.html

https://economictimes.indiatimes.com/berger-paints-india-ltd/yearly/companyid-13971.cms

https://www.bergerpaints.com/

https://www.bergerpaints.com/products/interior-wall-coatings/

https://brandyuva.in/2018/10/marketing-strategies-of-berger-paint.html

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