1.

0 Introduction
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.

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2.0 Company Profile

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 August 2000, J& N investment (Asia) Ltd purchased Government shareholding. Now, Berger Paints Bangladesh Limited is 100% owned by J& N Investment (Asia) Limited, UK.

Investment in technology and plant capacity is even more evident from the new factory of Berger Paints Bangladesh Limited at Savar. The state-of-the-art factory is an addition to Berger's capacity to make it the paint-giant in Bangladesh. All, together with devotion into R & D to make it the reputed center of Basic & Applied Research in paint and Resin Technology, proof the commitment that Berger has for this industry.With its strong distribution network, Berger has reached almost every corner of Bangladesh. Nationwide Dealer Network, supported by 7 Sales Depots strategically located at Dhaka, Chittagong, Rajshahi, Khulna, Bogra, Sylhet and Comilla has an unmatched capability to answer to paint needs at almost anywhere in Bangladesh.

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The sheer innovation and development drive is reflected on the various products Berger has so far launched in this market. The product range includes, specialized outdoor paints protective of the worst weather conditions, Color Bank, superior Marine Paints, Textured Coatings, Heat Resistant Paints, Roofing Compound and Epoxies. In each of the product category, Berger has always been the pioneer and will continue to do so proudly. 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 has recently launched Home Decor Service from which once can get an array of services pertaining to painting.

Vision:
We shall remain as the benchmark in the Paint industry by: Being an innovative and technology driven Company consistently delivering world-class products ensuring best consumer satisfaction through continuous value added services provided by highly professional and committed team.

Mission:
We shall increase our turnover by 100% in the next five years. We shall remain socially committed ethical Company.

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3.0 Organizational structure

Like all other manufacturing organizations, BPBL has a conventional organizational structure. Generally six Board Meetings are called in BPBL during a year where Chairman of the Board of Directors presided over the meetings. In BPBL several committees like- the Audit Committee, Risk Committee, Remuneration Committee, Executive Committee and the Purchase Committee are formed along with Managing Director (MD) and other Executive and Non-Executive Directors. These committees sit at least once a month to approve various proposals brought by the management prior to implementation. All the proposals are placed to the committee through the Managing Director of the company. The proposals are initiated by the mid level managers and then forwarded to the Managing Director through the head of the divisions or departments. The company has also a legal advisor (an advisor firm) to solve the legal problems faced by the company and external auditors to conduct audit activities of Berger Paints Bangladesh Ltd.

There are four Non-Executive Directors, two Executive Directors and ten Managers work under the Managing Director of the company. Among the ten managers three directly report to the Executive Directors and others report to the Managing Director. The managers of each department monitor the work activities of subordinates, convey top management decisions and provide necessary feed back to reach organizational goals and objectives. In response the bottom level managers perform their responsibilities sincerely and report regularly to their immediate superiors.

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The organizational structure of BPBL:

Managing Director

Director Operation s

Director Finance

GM Planning

GM Mfg &Project

System Manager

Manager HR & Admin

Marketing Manager

General Sales Manager

Finance Manager

Assistant Manager

Assistant Manager

Assistant Manager

Assistant Manager

Assistant Mkt Manager

Regional Sales

Deputy Finance Manager

Planning Officer

Officer

System Officer

HR Officer

Manage r

Marketin g Officer

Area Sales Manager

Assistant Manager

Sales Officer

Finance Officer

Branch Manager

Sales Officer

Fig: 1: The organizational structure of BPBL

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4.0 Product Line of BPBL

The Company improved its overall market share due to strong brand pull from consumers, continued support from the distribution network, as well as projects. Moreover the innovative marketing strategies during 2006 i.e., Berger Home Dcor- the one stop paint/painting solution together with color consultancy, the launch of Berger Illusions range of design coatings, as well as Robbialac Easy Clean Emulsion paint have provided the consumers with unique coatings resulting in improvement in life style.

Performances over the last five years and value added statement of Berger Paints Bangladesh Ltd have shown below with tables and graphical presentation: All types of paints can be divided into three major groups. These are Decorative, Industrial, and Marine. Decorative paints are generally three types; oil based, water based, and cements paint.

Paints Decorative Industrial Oil Based Water Based Cement Paint Marine

Fig: Paints Major Category of BPBL

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Decorative Paints:
Berger Paints Bd Ltd. offers both interior and exterior paints. It leads the way for introducing high quality color bank products and top coat finishes decorative paints in Bangladesh. Interior paints like plastic and distemper are used in wall, cement plaster etc. and enamel is generally used for metal, wood, bamboo, hardboard etc. Those products ensure long life of metal, wood, bamboo, hardboard, cement plaster etc. as well as its beauty. Very recent Berger offers Robbialac easy clean which is high quality interior wall finish, highly applicable for concrete wall and cleanable. It offers exterior paints like weather coat which is high quality exterior liquid and durocem is power based. Both are water, weather and fungus resistant. It also provides primers, undercoats, thinners and other decorative products.
The following chart shows the category of decorative products of Berger paints.

Decorative Paints Oil Based Water Based Cement Paint

RSE

Interior

Exterior

Durocem

Jhilik

APE

Weather Coat

SPD

WC Longlife

Luxury Silk

Easy Clean

Fig: Major Decorative Paints of BPBL

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The following table introduces Decorative top coat finishes

Product Name

Description A marvel of international emulsion technology, Luxury Silk combines the best of aesthetic appeal with the best of functional properties like durability and ease of maintenance.

Luxury Silk

Robbialac Acrylic Emulsion (APE)

A standard emulsion paint formulated with acrylic, copolymer emulsion, quality pigments and other raw materials. R. APE has a smooth, rich, matt finish and is Plastic available in a very wide range of pleasing shades. Painted surfaces, which have matured for at least two months, are easy to clean with a solution of water and mild soap (not detergent).

Robbialac Super Gloss Synthetic Enamel is hardworking, premium quality synthetic enamel formulated to retain its gloss and film integrity in the face of extreme climatic variations. Its excellent weather ability makes it ideal for Robbialac Super Gloss rolling stock like railway coaches, buses, lorries, oil tankers, as well as for doors, windows, signboards and Synthetic Enamel (RSE) hoardings. It is equally versatile for interior applications like furniture, fixtures and various other domestic articles.

Robbialac Distemper (SPD)

A specially formulated acrylic co-polymer emulsion based washable distemper for elegant, smooth, durable, matt Acrylic finish for interiors. Compared to other conventional distempers, Robbialac SPD can cover 30% more area because of its special formulation.

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Weather Coat Smooth

Weather coat is smooth water based super exterior wall finish formulated to give exceptional durability in adverse climatic conditions. It provides the building with a long lasting and fresh appearance. It is based on tough, flexible and high quality resin emulsion, which provides excellent flexibility and adhesion.

Jhilik Synthetic Enamel

Jhilik Synthetic Enamel is an economy synthetic enamel formulated for interior and exterior application to give a glossy durable surface. It is ideally suitable for wood and steel furniture, toys and various household items.

Durocem Cement Coating

Durocem is an exceptional formulation based on selected raw materials and specially treated white cement that makes it ideal for both indoor and outdoor applications. It affords a hard, durable and waterproof surface. This product is a unique combination of aesthetics, durability and economy.

Wood Keeper

It provides brightness to polished or polish less, plain or uneven surface of wood and spot resistance.

Tartaruga Textured Coating

This is one of the most famous BERGER formulations in the world.

Illusion

Berger illusions is not just a paint its a whole new lifestyle for ones walls. A range of designer wear for ones walls with thousands of color options.

Robbialac Wall Putty

It used for new even plaster wall and only applicable for outer wall.

Table-1: Major decorative products of BPBL

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Color Bank Product:

Berger Color Bank is the pioneer to show the global way to paint with an unlimited choice of shades to match ones taste-instantly. Every Berger Color Bank store has a computerized color tinting machine to help one choose and take home ones own shades from its world class range of paints. Availability of ones chosen shades is always ensured as the paint is created and dispensed by the machine before ones very own eyes.Berger Color Bank has an unique Tintovision software which allows one to see infinite color combinations on the screen of the computer. If one so desire one can mix and match and create ones own shades as well.

Color bank products-

Robbialac Plastic Emulsion Classic Robbialac Synthetic Enamel Gold Luxury Silk Splendour Easy Clean Robbialac Pearl Lustre Finish Weathercoat Smooth Classic Weathercoat Longlife Robbialac SPD Super Wood Keeper Finesse

Industrial paints:

Berger offers industrial finishes, high protective coatings, industrial primers and other industrial products for the requirements of industrial paints. These paints are long lasting and prepared in a special method to protect industrial equipments, structures from heat, swatting and bulging. BPBL offers the following products for its industrial customers

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Industrial Paints Berger Suprakoat Powder Coating Jensolin Synthetic Enamel Industrial Finishes Jensolin Aluminium Paint Jensolin Stoving Enamel Jensolin Chlororubbrer Paints

Jensolin Road Marking Paint Jensolin Swimming Pool Paint Jensolin Tennis Court Paint Jensolin Cycle Paints Jensolin Other Products Jensolin Insulating Varnish Jensolin Paint Remover Jensolin Rust Remover Thermoline

Jensolin Epoxies High Protective Coatings Jensolin Polyurethanes

Jensolin Red Oxide Primer Jensolin Red Lead Primer Industrial Primers Jensolin Zinc Phosphate Primer Jensolin Zinc Chromate Primer Jensolin Wash Primer Table-2: Major industrial products of BPBL, Source: www.bergerbd.com

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Marine Paints:
Berger produces completely different top coat finishes, special coatings, primers and thinners for ships, boats and other marine vessels. These paints are exclusively produced to protect marine vessels from sea water, fungus and fragility. Some marine products of Berger areMarine Paints of BPBL : Seaborne High Gloss Enamel Seaborne Aluminium Paint Seaborne Boot Topping Seaborne Topside Top Coat Finishes Seaborne Deck Seaborne Funnel Heat Resisting Seaborne Bituminus Black Seaborne Berger Marine Enamel

Special Coatings

Seaborne Epoxy Coatings Seaborne Chlororubber Antifouling

Seaborne Red Lead Primer Seaborne Zinc Chromate Primer Seaborne Zinc Phosphate Primer Primers Seaborne Metallic Coatings Berger Marine Red Lead Primer Berger Marine Antico Primer

Jensolin T-1 Thinner T-2 Thinner Thinners T-3 Thinner T-4 Thinner

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T-7 Thinner T-8 Thinner Table-3: Major marine products of BPBL

5.0 strategies of BPBL

In the arena of competitive business, organizations are surviving on strategy, which play very vital role to achieve the organization goal. Product policy is one of the major strategies for stay in the market with brand locality. Especially in paint products, the role of marketing is very important to satisfy the customers through quality of product, new flavor, better packaging, competitive pricing and product availability.

Target Market Strategies:

There are several different target-market strategies that may be followed. Targeting strategies usually can be categorized as one of the following:

Single-segment strategy - also known as a concentrated strategy. One market segment

(not the entire market) is served with one marketing mix. A single-segment approach often is the strategy of choice for smaller companies with limited resources.

Selective

specialization- this is a multiple-segment strategy, also known as a

differentiated strategy. Different marketing mixes are offered to different segments. The product itself may or may not be different - in many cases only the promotional message or distribution channels vary.

Product specialization- the firm specializes in a

different market segments.

particular product and tailors it to

Market specialization- the

firm specializes in serving a particular market segment

and offers that segment an array of different products.

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 Full market coverage - the firm attempts to serve the entire market. This coverage
can be achieved by means of either a mass market strategy in which a single undifferentiated marketing mix is offered to the entire market, or by a differentiated strategy in which a separate marketing mix is offered to each segment.

5 C strategies analysis
A useful framework for performing a situation analysis is the 5 C Analysis. The 5C analysis is an environmental scan on five key areas especially applicable to marketing decisions. It covers the internal, the micro-environmental, and the macro-environmental situation. The 5 C analysis is an extension of the 3 C analysis (company, customers, and competitors), to which some marketers added the 4th C of collaborators. The further addition of a macroenvironmental analysis (climate) results in a 5 C analysis, some aspects of which are outlined below.

Company:
Product line Image in the market Technology and experience Culture Goals

Collaborators

Distributors Suppliers Alliances

Customers

Market size and growth Market segments Benefits that consumer is seeking, tangible and intangible. Motivation behind purchase; value drivers, benefits vs. costs
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Decision maker or decision-making unit Retail channel - where does the consumer actually purchase the product?

Consumer information sources - where does the customer obtain information about the product?

Buying process; e.g. impulse or careful comparison Frequency of purchase, seasonal factors Quantity purchased at a time Trends - how consumer needs and preferences change over time

Competitors:

Actual or potential Direct or indirect Products Positioning Market shares Strengths and weaknesses of competitors

Climate (or context):

The climate or macro-environmental factors are:

Political & regulatory environment - governmental policies and regulations that affect the market

Economic environment - business cycle, inflation rate, interest rates, and other macroeconomic issues

Social/Cultural environment - society's trends and fashions Technological environment - new knowledge that makes possible new ways of satisfying needs; the impact of technology on the demand for existing products.

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6.0 lessons I learn from BPBL

Expectation of paint traders from the companies:
Available products and colors Timely delivery Provide urgent delivery Flexibilities in sales systems Reduce rigid sales target Optimum profit margin Information center Provide more training for the painters More credit amount More Credit time limit Take return of waste product Provide constant commission for all dealers Arrange amusement program Reward for well decorated products Conduct door to door visit Provide acquired commission after every month

Problems:
In paints market, there are some problems which hinder the sales Instable political situation. Action taken by Govt. (Many Shops smashed in last two months) Key Dealers reduced their purchase due to afraid of tax. Apartment business and construction of house is about to stopped. Dealers have to purchase products in cash but they have to sale in credit. Credit collection of dealers from their customers is very slow.

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Market Share
Market share studies determine the proportion of total sales received by a company and its competitors. A term used frequently in business as a performance measure, market share is the proportion of total sales of a product during a stated person in a specific market that is captured by a single firm. Market share can refer to entire industries, segment of industries, or particular geographic areas and can also apply to past, present, or future periods. In this research I find out the market share in 3 categories- entire industries, segment of geographic areas, and segment of products. I have conducted this research on major decorative paints. Market share 2010 The following table shows the market share of Decorative Paint in Dhaka city for the year 2010Companies Berger Asian Roxy Pailac Elite Aqua Romana Uzala Alkarim Others Total Value Sales (%) 58.55 14.65 5.98 3.48 7.93 1.33 4.37 0.80 1.33 1.57 100 Table-Market Share 2010

In 2010, Berger Paints held 58.55% of market share in Dhaka city whereas the second largest market share was occupied by Asian Paint with 14.65%. Elite Paint possessed the third largest market share 7.93% where Roxy Paint held the fourth position with 5.98% market
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share. Romana and Pailac possessed consecutively 4.37% and 3.48% of the market share. Other paints like Polac, Dunkun, Paramax, Bengal Agency, Nazrul Brothers Paint, Imperial, Navana etc. held 1.57% of the paint market share.

Outcomes:
Berger Paints possessed the leading position in paints market. Asian Paint possessed the second position. Elite Paint held third highest market share. Roxy Paint acquired fourth position of the paints market. Romana held the fifth place in the market.

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7.0 recommendations
The following recommendations can be draw for the further development of the Berger Paints Bangladesh -

Berger Paints should always provide emphasis on customer demand. It should always
satisfy the dealers demand and arrange product availability.

It should always pay heed to the dealers growth rate, take initiatives to recover gap
and always monitor their activities.

Berger Paints should restructure its sales system. It can restructure through employing
more SOs, day to day sales and delivery system, enrich end-user activists activities, frequent market visit, better communication with distribution.

Its

general sales procedures like taking order, preparing invoice, categorization of

invoice, preparing rout plan, lining products for loading, final check and loading of vehicles should be automated.

It should also organize distribution system through increase space for store systematic
way, frequently update its database systems which shows products, pack size and color availabilities and increase the number of delivery van.

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8.0 conclusions
The paint market is very much competitive although Berger paint holds the major market share. But the growth rates of the competitors are great challenges for Berger. Its true that Berger paints is very prominent in the market because of its high quality products, better customer response, variety of products, competitive price rate etc. The first choice of consumers is BERGER because they can rely on it and its long lasting capabilities. Its also able to provide the consumers option of choosing variety of colors; 5000 shades within 5 minutes through its color bank.

Berger Paints is very much restricts in credit policy. It provides credit only some selected dealers where as other competitors are very much liberal in credit. Paints traders; wholesalers or retailers, are naturally very much found of huge credit. Thus the key competitors gradually grow up in the market through their vast credit policy.

With world class range and durability, Berger is always ready to answer to all weather conditions and try to satisfy every corner of the country.

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9.0 references
www.bergerbd.com International Business Environment & Operations (12 th Edition) Annual Report of Berger paint 2010

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