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Mgt 12th batch Sec- A University of Dhaka
Letter of transmittal
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12th May, 2007 To MS.Rubina Maleque Associate Professor Department of Management Studies. University of Dhaka. Subject: Effectiveness of Distribution Channel of Berger paints Bangladesh limited Madam, We are highly grateful to you for assigning us such an assignment. It is a unique opportunity for us to develop ourselves. It also develops our intellectual ability and potentiality. We pay our heartiest gratitude to you. The report has been prepared on the marketing strategies of Berger paints Bangladesh limited (BPBL). It helps us to know about marketing strategies of Berger paints Bangladesh limited. We hope that our effort able to reach the goal.
MEMBERS OF ICONS
NAME MD. MILTON MIA EHSANUR RAHMAN MD.RAFSAN RIAD HASAN SHAHARIAR MD. MAHMUDUR RAHMAN
Table of contents
Part
Executive Summary
Page
v
1 Introduction of the report 2 Profile or Berger paints a) History of Berger b) Company profile c) Nature of business d) Major products 3 Marketing strategies of Berger paint a)swot analysis b)Segment strategies c) Decorative d) Industrial e) Marine
1 4 5 7 8 9 10 11 14 15 19 21
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5 Positioning strategies a) Product differentiation B) Service differentiation c) Channel distribution d) Distribution of product e) Image f) Media & Sponsorship i) Social responsibility j) Quality policy k) Environmental strategy
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26 26 26 30 31 32 32 32 33 34
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Table
Decorative
1 Seasonal segmentation 2 Top coats finish 3 Color bank 4 Premier/ Undercoat /Thinner 14 16 17 18
Industrial
1Industrial finishes 2 High productive coatings 3 Industrial premiers 19 20 20 22 23 24 24
Marine
1 Thinners 2 Premiers 3 Top coat finishes 4 Special coatings
Chart
1 Market share of products 2 Channel Distribution 3 Distribution of Product 25 30 31
Executive Summary
This report analyses the strategies of the Berger paint Bangladesh limited. Berger is one of the most renowned companies in our country. In formulating strategies the company first makes SWOT analysis on the basis of mission & objective. They make strategies on depends STP (Segmentation, Target market selection & positioning) so first it segments its market on the year basis and than product basis. Decorative is the main product of Berger, it contributes about 82% of their total revenue. Than 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 the report also includes some suggestion and recommendation for making better strategy and removes their lacking.
Scope
Our report has covered almost all the strategy of Berger Paints Bangladesh ltd for marketing its product. It also includes a brief profile of the company. To know the strategy of the company it also includes the product categories and the distribution channel of the company
Primary data
Primary data are collected from interviewing people within the organization.
Secondary data
We have collected secondary data by many ways. They are We are collect data from its main office We collect information from the sales office. Prospectus of Berger. The website of Berger (www.bergerbd.com)
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Limitation
Many factors affected us on our way making the report. We have much personal limitations for which we failed to prepare a most updated report. Lacks of sufficient documents make us unsuccessful in making the report highly informative. And lake of previous experience is also hampering in our way. Some other factors affected us negatively, which we could not overcome. Those limitations are as follows:
Lake of sufficient resources. Lack of public cooperation. Lot of other assignments and examination. Lack of experience.
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History of BERGER
Berger is one of the oldest names in paint industry detailing back more than 200 years to 1760. Lewis Berger, a German national, founded dye & pigment making business in England.
Lewis Berger & Sons Limited grew rapidly with a strong reputation for innovation and entrepreneurship culminating in perfecting the process of making Prussian Blue, a deep blue dye, a color widely used for many European armies' uniform. Production of dyes & pigments evolved into production of paints & coatings, which till today, remains the core business of Berger. Berger grew rapidly by establishing branches the world over and through merging with other leading paint & coating companies.
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Berger in Bangladesh
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. Duncan Macneil subsequently sold their shares to majority shareholder J& N group. The Dada group's share ultimately vested with the Government of Peoples' Republic of Bangladesh after the independence 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. With the passage of time Berger has unfolded its kaleidoscopic wings into all kinds of paint solution be it Architectural paints or Industrial coatings, Marine paints or Powder coatings. Berger has it all!
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Company profile
Berger Paints began its painting in Bangladesh since independence. And this has been a footstep to bring more than 230 years of global paint industry experience into Bangladesh. Over the decades, Berger has evolved to becoming the leading paint solution provider in this country and has diversified into every sphere of the industry - from Decorative Paints to Industrial Coatings, from Marine Coatings to Powder Coating and what not. To give a comprehensive and sustainable painting solution to the need of the industry, Berger has invested more on technology and Research & Development (R & D) than any other manufacturer in this market. It selects the raw materials from some of the best known names in the world: MITSUI, MOBIL, DUPONT, HOECHST and BASF are a few to name. The superior quality of Berger's products has been possible because of support from its advanced plants and an international-standard of strict quality. Investment in technology and plant capacity is even more evident from the new factory of Berger Paints Bangladesh Limited at Savar. The state-of-theart factory is an addition to Berger's capacity to make it the paint-giant in Bangladesh. Not to forget about the first Double Tight Can manufacturing unit in its Chittagong factory. All, together with a 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. 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.
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Berger's one of the prime objectives is to provide best customer supportconnecting 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. With world class range and durability, Berger is always ready to answer to all weather conditions. It was honored with The top tax payers award 2003 in June 2004 by the income tax authorities of the government of Bangladesh. Additionally the company received the Channel I performance award 2004 for its effort in promoting the young painters and architects of the country through the burger young painters art promotion and young architects award. This award recognized the role of Berger paint Bangladesh limited (BPBL) as a responsible corporate citizen
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
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Vision
Berger 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
Increase turnover by 100% in the next five years. Socially committed ethical Company.
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Strength
Strong brand image. Experienced top management. Global experienced of Berger. Strong market share. Good profitability. Strong solvency. Wide distribution of network. Satisfactory MIS.
Weakness
Exposed of currency risk. Semi automated plant needing. Human intervention. Concentrated ownership pattern. Poor internal capital generation.
Opportunities
Increasing demand on paints. Growing market. Backward image for value addition. Full automation scope.
Threats
Emergence of competitors. Credit driven market. After SWOT analysis the company makes its strategies for its product and service
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Month/ period January February March April May June July August September October November December
Conditions Peak Peak Peak Peak Peak Peak Lean Lean Lean Peak Peak Peak
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Berger paint Bangladesh limited mainly segments their product mainly on three categories. These are 1) Decorative. 2) Industrial. 3) Marine.
Berger Decorative
Premium emulsions, regular acrylic emulsions, distempers, first quality enamels, exterior finishes, textured finishes, automotive refinishes- you would expect a company like BERGER, the premier paint company in Bangladesh, to have leading brands in all these categories. Yes, BERGER does. BERGER also leads in a vast range of other formulations. Stoving paints, chloro-rubber based enamels, epoxies, silicone heat resistant paints, flooring compounds, Polyurethanes............ 1, top coat finishes 2 color bank 3 premier/ undercoat /thinner
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Luxury Silk
Robbialac A standard emulsion paint Acrylic Plastic formulated with acrylic.. Emulsion (APE) Robbialac Super Gloss Synthetic Enamel (RSE) Robbialac Acrylic Distemper (SPD) Weather Coat Smooth Robbialac Super Gloss Synthetic Enamel is hardworking, premium quality synthetic enamel formulated to retain its gloss and film integrity in the face of extreme climatic variations... A specially formulated acrylic copolymer emulsion based washable distemper for elegant, smooth, durable, matt finish for interiors... Weather coat is smooth water based super exterior wall finish formulated to give exceptional durability in adverse climatic conditions...
Jhilik Synthetic Enamel is an economy synthetic enamel Jhilik Synthetic formulated for interior and exterior Enamel application to give a glossy durable surface... Durocem Cement Coating Wood Keeper Robbialac Aluminium Paint is a superior 2- pack aluminium paint with a brilliant silver-like luster. It is ideal for application on the exteriors of storage tanks for water, petrol, oil... This is one of the most famous BERGER formulations in the world. The product is paste like having 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...
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special aggregate to facilitate drawing desired textured patterns on the surface... Berger illusions is not just a paint its a whole new lifestyle for your walls. A range of designer wear for your walls with thousands of color options.
illusion
Color bank
Robbialac Plastic Emulsion Classic Robbialac Synthetic Enamel Gold Luxury Silk Splendour Robbialac Pearl Lustre Finish Weathercoat Smooth Classic Robbialac SPD Super Wood Keeper Finesse
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Robbialac Synthetic Undercoat Robbialac Anticorrosive Red Oxide Primer Robbialac Water Sealer Robbialac T-6 for AirDrying Primers & Enamels Bison All Purpose Primer is applicable on concrete, wooden and metal surfaces. It can be applied on both new and old surfaces... Robbialac Red Oxide Primer provides an excellent, quickdrying protective coating on various types of ferrous metal surfaces...
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BERGER INDUSTRIAL
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. 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 you'll 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
Product Name Berger Suprakoat Powder Coating Jensolin Industrial Enamel Jensolin Aluminium Paint This primer is based on Alkyd / Jensolin Stoving Amino resin combination as well as Primer anti-corrosive pigment and is most suitable under stoving finishes... Jensolin Chlororubber Lacquers A chlorinated rubber based finish with exceptional properties like water impermeability, resistance to salt spray, spillage and fumes of most acids... A top quality glossy paint based on high quality selected resins and pigments. It has versatile applications... Product Description
This is high performance enamel Jensolin Stoving based on a blend of high grade Enamel thermosetting Alkyd-Amino resin together with high quality pigments...
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Jensolin Epoxies
Jensolin Polyurethanes
Industrial premiers
Product Name Jensolin Red Oxide Primer This is a quick drying Red Lead Primer to use on structural steel. Provides a Jensolin Red hard drying, anticorrosive coating, Lead Primer suitable for over coating with conventional finishes and chlorinated rubber coatings... Jensolin Zinc Phosphate Primer is Jensolin Zinc based on a special synthetic resin in Phosphate which zinc phosphate is used as a Primer rust-inhibiting pigment... Jensolin Zinc Chromate Primer is Jensolin Zinc based on a special synthetic resin in Chromate which zinc chromate is used as a rustPrimer inhibiting pigment... Jensolin A two pack etch primer for use on C.I. Wash Primer sheets, G. I. Sheets or pipe... Product Description
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BERGER MARINE
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, country - boats (powered and unpowered) are plying everyday through sea-coasts and rivers. 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 maring products of Berger are devided in 1 Thinners 2 Premiers 3 top coat finishes 4 Special coatings
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Thinners
Product Name Seaborne Thinner T-1 Seaborne Thinner T-6 Seaborne Thinner T-7 Jensolin Thinner T-1 Jensolin Thinner T-2 Jensolin Thinner T-3 Jensolin Thinner T-4 Jensolin Thinner T-7 Jensolin Thinner T-8 For Stoving paints, cycle paints.. For Chlororubber paints, Swimming pool paints, Tennis court paints.. For N.C paints.. For Road / Runway marking paints.. For all epoxy paints.. For polyurethanes.. Product Description
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Premiers
Product Name Seaborne Red Lead Primer Seaborne Zinc Chromate Primer Seaborne Zinc Phosphate Primer Seaborne Metallic Protective Coatings Berger Marine Red Lead Primer Berger Marine Anticorrosive Primer
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Special coatings
Product Name Seaborne High Performance Epoxy Coatings Seaborne Chlororubber Antifouling
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The major focus of the companies, operating in the industry, is towards decorative segment. Only a few of the companies have their product offerings in industrial and marine segment. All the competitors are concentrating their best efforts for carving out their share of the pie in the decorative segment of the industry. The enamel segment accounts for around 50% of the decorative paint market, by value, and approximately 40% by volume. Berger market share in the synthetic enamel category increasing gradually. As this product is accountable for the major share of the paint market, its continued success will result in significant growth of the overall market share of the company. This will also enable Berger to battle its competitors by weakening then in such a strategically important segment.
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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.
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.
Service differentiation
Every company in the service market differentiate 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.
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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.
Berger Home Decor offers two-stage services: Free Service Paid Service Berger Home Dcor is currently offering wide range of services to its prospects and existing consumers embracing: Technical advice on surface preparation and application guideline. Paint selection. Dealer selection. Painter/ Contractor selection and Color scheme. There is defined Telephone number, 02-9354067 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.
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Personnel differentiation
Berger always gain a strong competitive advantage through having better trained people. To recruit personnel Berger follows some strategies that are
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Channel distribution
Berger achieve competitive advantage through the way they design their distribution channels coverage, expertise and performance
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Distribution of product
With its strong distribution network, Berger has reached almost every corner of Bangladesh. Their nationwide dealer network, supported by seven sales depots strategically located in Dhaka, Chittagong, Rajshahi, khulna, Bogra, Sylhet and Comilla has an unmatched capability of cater to the needs of the consumers of paints products, almost everywhere in Bangladesh (Special shade & products)
Dhaka factory
Chittagong factory
Dhaka Depot
Khulna Depot
Rajshahi Depot
Bogra Depot
Comilla Depot
Sylhet Depot
Chittagong Depot
Direct Dealears
Direct Dealears
Indirect dealers
Indirect dealers
Indirect dealers
End Users
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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.
Social responsibility
Berger paints has been organizing Young Painters; Art Competition for the last nine (9) years 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.
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Technology orientation
Berger has always been the most technology oriented paint company of the country. It has the most modern state-of-the-art production facilities installed in its Dhaka factory. Its Research and Development (R&D) and Quality Control (QC) departments are equipped with the best technologies in this country. Such technolo0gy driven strategy will definitely assist the future business growth of the company.
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Pricing strategies
The fierce competition has also made the industry highly price competitive. Most of the competitors consider pricing as one of the major marketing tools. 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.
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Conclusion
Berger Prints Bangladesh ltd is the market leader of paint industry having about 40% shares. The company has strong distribution network all over the country. It has more than 1000 direct dealers. In addition, numerous secondary dealers operating in the outskirts of the major markets are engaged in selling the products of the company. BPBL introduced many new products into the market like exterior emulsion, silk emulsion, readymade wall putty etc. it first introduced Color Bank back in 1998, which enabled the customers to choose his desired shades from an exclusive array of over 5,000 shades. It also introduces home dcor service. It has good brand image. Berger has been trying to increase its brand image further through more media presence, arranging programmers like Berger Young Painters are competition, Berger Young architects award, scholarship program for architecture students of BUET. It is constantly working to improve its products quality through comparative study and customer feedback in order to maintain competitive edge.
Recommendation
By reviewing report it can be recommended that The company should find out new sector. Reduce dependence on special brand as decorative. They should expand their sales depot countrywide. They should deal with construction firm.
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