1

Chapter 1: Research Design

1.1. Introduction:
Roxy Paints limited is one of the leading paint manufacturing companies in Bangladesh. This
organization is achieving double digits growth over last 10 years. But the time has become critical for the
organization as the business environment has become more competitive than the previous years. The
management of this organization is concern about future regarding its sustainability and consistent
growth. This is why the management of Roxy Paints feels to analyze the business of this organization
from different strategic angle that will help management people to formulate time demanding game plan
to cope up with multi dimensional business environment.
1.2. Background of the study:
As a student of DBA at Institute of Business administration under the University of Dhaka, I have been
given an assignment to submit on Strategic Business Analysis of Roxy Paints Ltd. in context of
Bangladesh Paint industries as the part of the course title Strategic management. Sine I am the
Executive Director of Roxy Paints Limited this study will help me lead the business more methodically
and scientifically.
This is the age of globalization where country borders of countries are open and trade and commerce are
almost free. Almost every state legislate an investment friendly environment to encourage foreign
investors for new investment for the development of country or state. Thus business competition is
increasing extensively day by day as entry and exit mode is very easy into a market for any of the player.
Even locally and internationally successful organizations are trying to increase their business volume.
They are making new investment to grape up new opportunities where ever the market is. Successful
business organizations are trying to expand their business through exploring new market in the same
industry or new industry in the same market. Companies are becoming group of companies within a short
span of time. In this situation, business of Roxy Paints is needed to be analyzed methodically for its
survival in future in the changed environment.
1.3. Problem statement:
The open market system sometimes bring threats for existing company if they fail to understand their
position in the market and fail to cope up with the competitive business environment. The paint market is
getting high per competitive in Bangladesh. There are almost thirty companies playing here who are
holding different portion of market share according to their strength and capacity. Among the competitors
Berger Paints, Asian Paints, Roxy Paints and Elite Paints are occupying more than eighty percent market

2
share of the total market. Even only Berger Paints has a market share of fifty percent of the total market
share where Roxy Paints is occupying less than ten percent. New entrant RAK Paints is also doing good
here. In this situation of the market, successful players of the world such as Nippon Paints, Jotun Paints
and Shalimar Paints have started their operation in Bangladesh. It is expected that they will start their
business within this year. This high per competitive business environment of paint market in Bangladesh
has made thought Roxy management to think for future as the regular growth has become tough to
achieve. They are also concern about their survival over future days. Strategic business analysis of Roxy
Paints will help to set the game plan based on the findings of the study.
1.4. Objectives:
1.4.1.

Broad Objective: To analyze and / or develop different business model and strategies of Roxy
Paints limited comparing with standard strategic management theories which we have learnt from
study materials supplied as well as taught by our honorable faculty.

1.4.2.

Specific Objectives:

To sum up the business overview of Bangladesh paint industry.

To analyze Vision, Mission, Goal and Objectives of the organization and provide necessary
suggestion streamlining more those rationally and meaningfully.

PESTEL Analysis

Porters Five Forces Model Analysis

SWOT Analysis

Generic competitive strategies analysis

Strategic Group Mapping

Balanced Score Card development and analysis

Narrate Industry Life Cycle and attractiveness of the industry.

Business Model preparation and analysis

Setting Strategic Intent and explanation

Find out Key Success Factors and logical brief.

Quality policy analysis and necessary proposal.

1.5. Research methodology:

1.5.1. Type of research: This study goes under the type of exploratory research since the objective of this
study is to explore all key factors of Roxy Paints as well as the factors of paint market based on which
Roxy paints limited formulates the business strategy or game plan. Exploratory research is defined as
the initial research into a hypothetical or theoretical idea where a researcher has an idea or has observed
something and seeks to understand more about it. An exploratory research project is an attempt to lay the
groundwork that will lead to future studies, or to determine if what is being observed might be explained
by a currently existing theory (http://education-portal.com).
1.5.2. Data collection method: To analyze the insights of Roxy Paints Limited as well as the insights of
Paint market of Bangladesh data has been collected from both primary and secondary sources.
1.5.2.1. Primary data sources:

Primary data are the data generated only for a specific research.

Exploratory research is meant to provide details where a small amount of information exists. It may use a
variety of methods such as trial studies, interviews, group discussions, experiments, or other tactics for
the purpose of gaining primary information (http://www.businessdictionary.com). In this research data
has been collected through experience survey, interview with the paint marketing professionals, paint
dealers and paint users (focus group).
1.5.2.2. Secondary data source: Secondary data are the data which were generated by individual or
agencies for different purpose or different research objective. Usually books, magazines, journals,
government directories, industry directory, company directory, internal statements and papers, research by
individuals or agencies, web site etc (http://libweb.surrey.ac.uk). In this research all the sources
mentioned above has been studied for collecting secondary data.
1.5.3. Questionnaire design: To collect required data three questionnaires have been prepared where
structured, semi-structured and unstructured questions were included. Some questions were close ended
and some were open ended.
1.5.4. Our population: The paint marketing professionals, paint dealers and paint users.
1.5.5. Sampling:
1.5.5.1. Sample size: Sample size of this research was 67 including 10 professionals, 23 dealers and 34
users where direct interview was conducted over the paint marketing professionals, paint dealers and
paint users.

4
1.5.5.2. Sampling technique: Judgmental Sampling technique was followed to select respondent.
1.5.6. Data analysis: Collected data was analyzed by statistical software SPSS to get necessary
information for this research.
1.5.7. Report preparation: Based on the findings the study a report has been prepared finally which has
contained a recommendation for Roxy Paints Limited.
1.6. Rationale: This study has provided an immense knowledge about the paint market of Bangladesh. It
will be useful for business people, paint marketing professional, investors, paint raw material suppliers,
packaging material suppliers, academic, students, researchers, paint seller as well as users and Roxy
Paints Limited itself.
Business people may learn different models and theories and their application as well as implication in
business. Since it is a rich report on paint market, paint marketing professionals will know ins and outs of
the paint market of Bangladesh including products, services, prices, competitors and their strategies,
market size, customer orientation, decision makers, decision making process, role of reference group etc.
Through this study management of Roxy Paints Limited will come to learn their strengths, weakness,
opportunities and threats. This research will also help Roxy management to take more realistic strategy
for advancement.
Potential investors will get a clear idea about paint market of Bangladesh including paint market size,
existing players and share occupied by the players, competitors activities, industry profitability,
customers etc.
Dealers and user of paints will get a brief on paints including product line, price, availability etc.
Collected data will also help the researchers, academics, students who will go for further study on paint
industry or any other industry. This research may be taken as an example by the Academics for their
students in the class room.
1.7. Scope of the study: This has been a comprehensive study of paint market giving a focus on Roxy
Paints Limited. The study has covered the behavior of paint manufacturers, paint marketing professionals,
paint dealers, users. To analyze the strategy of Roxy Paints limited different business models have been
used which had required to go through business specially marketing related books, magazines, journals,
directories, website etc. The report has covered following areas:

a) Paint market overview of Bangladesh.

b) Market position of Roxy Paints Limited
c) Macro environment analysis (PESTEL)
d) Micro environment analysis (SWOT, Porters five forces model etc.)
e) Prospects of Roxy Paints Limited.
1.8. Limitations: This study has been passed through some limitations while going to collect required
information. Some of these limitations have been identified as follows:
a) Sufficient information was not available in company reports and papers.
b) Company policy is conservative while providing data to the outsiders.
c) It is difficult to get time and cordiality from the respondent.
d) Data sources are limited.
e) Time constrains and budget constraints.
Chapter 2: Literature Review
2.1. Introduction:

Roxy Paints limited is one of the oldest paint manufacturing companies of

Bangladesh. Roxy started it business in 1953 when Bangladesh was East Pakistan. Since its beginning, it
has been winning the heart of Bangladeshi people providing quality paints and services keeping in line
with the demand of time. Roxy Paints is number one among local paint manufacturer and third among
local and multinationals. This is because of the far looking business strategy taken by the management
people of Roxy Paints Limited.
2.2. Business strategy: Business strategy is the method or plan chosen to bring about a desired future,
such as achievement of a business goal or solution to a problem in business. Strategy is the art and
science of planning and marshalling resources for their most efficient and effective use
(www.businessdictionary.com). A business strategy is the means by which it sets out to achieve its desired
ends (objectives). It can simply be described as a long-term business planning. Typically a business
strategy will cover a period of about 3-5 years (sometimes even longer) (http://businesscasestudies.co.uk).
The success of business depends on how smartly the strategy is formulated. The current position of Roxy
Paints Limited in Bangladesh paint market is basically because of the visionary strategy taken by the
management of Roxy Paints Limited.

6
2.3. Factors affecting strategy: Business strategy is influenced by all micro and macro environmental
factors of business since business enterprises have to run their operation in at environment. Enterprises
micro environmental factors include competitors, customers, suppliers, public, marketing intermediaries,
as well as workers and their union (www.yourarticlelibrary.com) where Macro environmental factors
include social, economic, political and legal influences, together with demography and technological
forces. All those micro and macro environmental factors of Roxy Paints Limited will be analyzed in this
research.
2.4. Strategic models and their importance: There are different strategic models developed by scholars
which are now a days being applied in business by the management people to achieve organizational
goal. These models have already proved their efficacy in business.
2.5. Vision, Mission, Goals, Objectives and importance of determination: To run a business
professionally management people have to determine business vision, mission, goal and objective. Vision
is the dream organization wants to achieve in future. Business vision drives people to move with high
enthusiasm. So, vision statement of an organization should be strategic so that people get motivation to
run behind. In line with the business vision, business mission also has to be determined. Mission of the
business is actually the clear description of the business. The mission statement of the organization should
guide the actions of the organization, spell out its overall goal, provide a path, and guide decision-making.
It provides "the framework or context within which the company's strategies are formulated." It is like a
something for what the company wants to do for the world (2008).

Vision

Mission
Goal & Objectives

Figure: VMGO

7
Goal is the target organization wants to achieve in a specific time period. Goal-setting ideally involves
establishing

specific,

measurable,

achievable,

relevant,

and

time-bounded

(S.M.A.R.T.)

(www.en.wikipedia.org). If the goal of the organization is set smartly, it becomes easier to achieve it by
the people of the organization. Objective is the sub goal need to achieve time to time and part by part to
achieve organizational goal. Business objectives are set for short term and specific job like cost control,
efficiency increase, profitability increase etc. Vision, mission, goal and objective setting is very important
part of strategy formulation. All those things will be analyzed in perspective of Roxy Paints Limited.
2.6. SWOT analysis and its implication in business: A scan of the internal and external environment is
an important part of the strategic planning process. Environmental factors internal to the firm usually can
be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as
opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT
analysis (www.quickmba.com).

Figure: SWOT
However, the SWOT analysis provides information that is helpful in matching the firm's resources and
capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy
formulation and selection. SWOT of Roxy paints will be analyzed while analyzing the strategy of the
business.
2.7. Porter five forces model and its implication in business: A five forces model was developed by
Michael E. Porter of Harvard University 1979 (www.cgma.org). This model is basically a framework to
analyze level of competition within an industry and business strategy development. According to porter
operation of a business is affected by five forces which are Threat of new entrants, Threat of substitute
products or services, Bargaining power of customers (buyers), Bargaining power of suppliers and
Intensity of competitive rivalry (www.en.wikipedia.org).

Figure: Porters five forces model.

The Porter's Five Forces tool is a simple but powerful tool for understanding where power lies in a
business situation (www.mindtools.com). Five forces analysis helps organisations to understand the factors
affecting profitability in a specific industry, and can help to inform decisions relating to: whether to enter
a specific industry; whether to increase capacity in a specific industry; and developing competitive
strategies (www.cgma.org). This five forces model will be analyzed will be analyzed while analyzing
strategy of Roxy Paints Limited.
2.8. Balanced score card and its implication in business: The Balanced Scorecard is a theory and
management approach first proposed in the Harvard Business Review by Robert S. Kaplan & David P.
Norton (1995). A subsequent book, The Balanced Scorecard, was published following this article (1996).
The most recent refinement of this theory and management approach appears in Kaplan & Nortons book,
The Strategy-Focused Organization (2001). This paper attempts to present a high-level overview of this
management theory, along with a description of its historical foundation and development.

As defined by Kaplan and Norton (1996), The Balanced Scorecard translates an organizations mission
and strategy into a comprehensive set of performance measures that provides the framework for a
strategic measurement and management system. This strategic management system measures
organizational performance in four balanced perspectives:

Financial summarizes the readily measurable economic consequences of actions already taken.
Customer contains measures that identify the customer and market segments in which the business
unit will compete and the measures of the business units performance in these targeted segments.

Internal Business Process measures the critical internal processes in which the organization must
excel.

Learning & Growth measures the infrastructure that the organization must build to create longterm growth and improvement.
Business operation of Roxy Paints Limited will be analyzed in contrast of Balanced Score Card while
analyzing the business strategy of Roxy Paints.
2.9. PESTLE analysis and its implication in business: The PESTLE Analysis is a framework used to
scan the organizations external macro environment. The letters stand for Political, Economic Socio-

10
cultural, Technological, Legal and Environmental (www.oxlearn.com). This model is used as a tool by
companies to track the environment theyre operating in or are planning to launch a new
project/product/service etc. All the aspects of this technique are crucial for any industry a business might
be in. More than just understanding the market, this framework represents one of the vertebras of the
backbone of strategic management that not only defines what a company should do, but also accounts for
an organizations goals and the strategies stringed to them. It is imperative to any strategy a company
wants to develop that they conduct the PESTLE analysis as it forms a much more comprehensive
version of the SWOT analysis (http://pestleanalysis.com). Analysis of this model will also open new
window for me to get better understanding of Roxy Paints strategy.
2.10. Industry life cycle and its importance: Industry life cycle is the normal stages that an industry
goes through during the course of its lifecycle in the market. An industry lifecycle is broken into five
separate phases: Early stages phase or embryonic stage, innovation phase, cost/shakeout phase, maturity
phase and decline phase. During the initial phase, the product may be altered to make a place for it in the
industry. The innovation phase looks to expand the product even further to come up with a concrete
design (www.businessdictionary.com). The next phase involves companies within the industry
establishing a concrete design thus eliminating some of the smaller companies that do not follow this
patter. At the maturity stage, revenue from the product becomes the main focus of the company. Finally,
the decline phase is marked by decreasing revenue as demand shifts to another product in the industry.

Figure: Industry life cycle

11

2.11. Strategic group mapping and its importance: Strategic group mapping is a technique for

looking at the position in the sector, field or market. Hunt coined the term strategic group in
1972 when he noticed sub-groups of businesses with similar characteristics in the same market.
Michael Porter then expanded the concept in the 1980s. There are a number of benefits to
strategic group mapping:

It can help you identify who your direct and indirect competitors (or possible partners)
are
It can illustrate how easy it might be to move from one strategic group to another

It may help identify future opportunities or strategic problems

It ensures you take your customers or beneficiaries views into account when developing
or assessing your strategy

The purpose of strategic group mapping is to make sure you take the needs or wants of your
customers/beneficiaries into account. It encourages you to ask different questions about your
future strategy, relationships with other businesses in your sector and your understanding of the
people who ultimately benefit from your products or services.
The tool helps you assess the top five other players working in your field or sector. You then map
the results on a matrix. You can do it on your own or with a group. It is most suitable for SMEs
and larger businesses but can be adapted. It will take several hours to complete a detailed map.
2.12. Key success factors of business: There are some factors which drives a business to get
success in the field. Experts have identified following factors that are to be kept in the mind of
management people while formulating game plan which are described shortly in the bellow
section:
Employee Attitudes Drive Growth and Change: Attitudes drive behaviors that result in change. If your
employees do not take initiative, make suggestions, happily stay late when necessary and strive to do their
best work all the time, your business will certainly stagnate. A key business success factor is a motivated
and committed workforce. Without that, no amount of vision and planning will provide the framework for
growth and prosperity.
Technology Utilization: Avoid keeping up-to-date with technology at your own peril. The company that
utilizes technology to open up new markets serves customers, increase efficiency and new product and
service development has the better chance of besting competition. This success factor, along with your
motivated workforce, can also help you weather business downturns.

12
Financial Success Factors: Most business owners will first measure success in terms of financial factors.
But, while a business needs to make a profit to survive, if the right technology and workforce are not in
place, profits will be more elusive. Profits, though, are a key measure of success along with positive cash
flow, a manageable debt load and a drive toward efficiency in holding down variable costs, among others.
Financial success indicators may also be different from one industry to the next.
Global Footprint: Even if your business is strictly local, the size of your global footprint is important to
your future and is a measure of your success. In today's world of instant communication, you have the
ability to share information, develop new products and open new markets more easily than ever before.
Examine ways to expand globally and make it a part of your plan that is continually reviewed and graded.
Marketing Consistency: Many firms make the mistake of not carefully overseeing their marketing
message. They have different messages going out to the same audience at the same time which confuses
potential and current prospects. Companies with a consistent message across all media platforms, such as
websites, paid media and other forms of marketing collateral are the more successful marketers.
Marketing consistency is a success factor that any company should not overlook.

2.13. Generic competitive strategy:

A firm's relative position within its industry determines whether a firm's profitability is above or below
the industry average. The fundamental basis of above average profitability in the long run is sustainable
competitive advantage. There are two basic types of competitive advantage a firm can possess: low cost
or differentiation. The two basic types of competitive advantage combined with the scope of activities for
which a firm seeks to achieve them, lead to three generic strategies for achieving above average
performance in an industry: cost leadership, differentiation, and focus. The focus strategy has two
variants, cost focus and differentiation focus.

13

Cost Leadership: In cost leadership, a firm sets out to become the low cost producer in its industry. The
sources of cost advantage are varied and depend on the structure of the industry. They may include the
pursuit of economies of scale, proprietary technology, preferential access to raw materials and other
factors. A low cost producer must find and exploit all sources of cost advantage. if a firm can achieve and
sustain overall cost leadership, then it will be an above average performer in its industry, provided it can
command prices at or near the industry average.
Differentiation: In a differentiation strategy a firm seeks to be unique in its industry along some
dimensions that are widely valued by buyers. It selects one or more attributes that many buyers in an
industry perceive as important, and uniquely positions itself to meet those needs. It is rewarded for its
uniqueness with a premium price.
Focus: The generic strategy of focus rests on the choice of a narrow competitive scope within an industry.
The focuser selects a segment or group of segments in the industry and tailors its strategy to serving them
to the exclusion of others.
The focus strategy has two variants.

14
(a) In cost focus a firm seeks a cost advantage in its target segment, while in (b) differentiation focus a
firm seeks differentiation in its target segment. Both variants of the focus strategy rest on differences
between a focuser's target segment and other segments in the industry. The target segments must either
have buyers with unusual needs or else the production and delivery system that best serves the target
segment must differ from that of other industry segments. Cost focus exploits differences in cost behavior
in some segments, while differentiation focus exploits the special needs of buyers in certain segments.
2.14. Strategic intent: Strategic intent is a readily grasped declaration of the course that the management
of a business plans on taking the company in over some future time frame. The strategic intent of a
business needs to be easily understood by every member of the firm so that all staff can be working
toward a consistent overall goal. This strategic intent usually incorporates stretch targets, which force
companies to compete in innovative ways. In this McKinsey Awardwinning article, Hamel and Prahalad
describe four techniques which are building layers of advantage, searching for loose bricks, changing
the terms of engagement, and competing through collaboration.
2.13. Quality policy and their importance: Quality policy is an important aspect of quality management
implementation in an organization which is top management's expression of its intentions, direction, and
aims regarding quality of its products and processes. In a sentence, quality policy means what is the
overall intention and direction within an organization related to quality.
The Standard requires the top management to ensure the following:
Quality policy is appropriate to the purpose of the organization.
Quality policy includes a commitment to comply with requirements and continually improve the
effectiveness of the quality management system
Quality policy provides a framework for establishing and reviewing quality objectives
Quality policy is communicated and understood within the organization
Quality policy is reviewed for continuing suitability
Quality policy may be communicated by issuing a documented statement of quality policy, which is
approved for adequacy prior to issue as per organizations documented procedure on control of
documents.

15
Top management is required to ensure such a quality policy that is appropriate to the purpose of the
organization, that includes a commitment to comply with requirements and continually improve the
effectiveness of the quality management system, and that provides a framework for establishing and
reviewing quality objectives. The top management must ensure those activities that improve
communication and understanding of quality policy within the organization. In most organizations, QMS
documentation (including quality policy statement) are generally developed by a team of people and then
approved for adequacy prior to issue. Here it is immaterial who signs the quality policy or the quality
policy is signed or unsigned. Even a quality policy verbally expressed by the top management in a
meeting with staff or board of directors or annual general meeting may be termed as formally expressed
overall intentions and direction of the organization related to quality by the top management.
Where a duly approved quality policy statement is communicated and understood within the
organization, that will serve the purpose and intent of quality management system as per ISO 9001:2008
QMS Standard.
2.14. Conclusion: Business models are framework that helps management people to formulate strategy.
In this research will look into all the models discussed above in perspective of Roxy Paints Limited. All
those models will help us to justify the strategy taken by management of Roxy Paints Limited. These will
also help to give valuable input and/or guideline to management.
Chapter - 3: Paint market overview
3.1. Introduction:
Bangladesh is a developing country where per capita income is US $550 and GDP growth average around
7% during last decade which is quite satisfactory. The economy is heavily stilted towards agriculture and
our industrialization is still in its infancy stage. It is really sad that at this premature stage we are in the
race with industrially developed and advanced countries because of the accelerated adoption of open
market policies in our country. Readymade garments, knitting, frozen seafood and man power exports are
the main source of foreign remittance.
The Bangladesh paint market has been experiencing a good growth of 10 12% per annum consistently
since late nineties mainly because of a boom in Real Estate Development, which is now appears to a
remarkably sluggish trend for the political situation of the country and Government policy in regards of
gas and electricity supply. However, the dynamics of the paint market is shaped up following factors:

16
a. Growth of housing industry
b. Economy and political stability
c. Government, ADB and foreign aids
d. Government policy for decentralization of economic activities
e. Raw material price change in international market
f.

Price of other construction materials

The growth of export oriented industries like RMG, textile, pharmaceuticals and the rise of remittance
inflow have expanded our national economy, which in turn contributed positively to the growth of the
paint market. The growth trend of the paint industry in recent year is as below:

It is seen that from 2008 to 2011 there is a declining growth because of embargo on gas and electricity
supply the government where the growth started to rise up in 2012 and again fell down in 2013 where the
country war going through extreme political unrest that resulted to overall decline of the economy.
Bangladesh paint market size and its growth trend analysis during 2008 2013 is furnished below to
exemplify the situation at a glance:
Year
Volume ("000
Ltrs)
Volume (MT)

2008

2009

2010

2011

2012

2013

70200

77220

83398

88401

97242

105993

88250

97075

104841

111131

122245

133247

Growth

11%

10%

8%

6%

10%

9%

17
A graph representation of the above data shows the picture of the market:

However, there is a great hope that the paint industry is expected to grow at 12-13% annually over the
next five years from BDT 2000 in FY13 to around BDT 3000 FY18 was a challenging year for the
industry as a whole due to subdued demand across key sectors and rising inflation. 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, 100 units having small and medium sized paint manufacturing
plants. Top organized players include Berger Asian Paints, Roxy Paints and Elite Paints.
3.2. Demand for paints comes from two broad categories:
3.2.1. 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 Bangladesh.
Berger 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.
3.2.2. Industrial: Three main segments of the industrial sector include automotive coatings, powder
coatings and protective coatings. Berger 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.

18
3.3. Key points:
Supply: Supply and demand exceeds in both the decorative as well as the industrial paints segments.
Industry is fragmented.
Demand: Demand for decorative paints depends on the housing sector and good monsoons. Industrial
paint demand is linked to user industries like auto, engineering and consumer durables
Barriers to entry: Brand, distribution network, working capital efficiency and technology play a crucial
role.
Bargaining power of suppliers: Price increase constrained with the presence of the unorganized sector
for the decorative segment. Sophisticated buyers of industrial paints also limit the bargaining power of
suppliers. It is therefore that margins are better in the decorative segment
Bargaining power of customers: High due to availability of wide choice.
3.4. Market Characteristics:
Bangladesh paint market is already a highly competitive as evidenced by the fact that paint price increase
at an average of less than 5% per year over the last ten years in spite of considerable higher inflation,
huge price hike of paint raw material and regular devaluation of taka during this period. The Bangladeshi
consumers have been benefited from the fierce competition in the paint sector even though under
utilization of production capacity has though many local manufacturers in a shaky financial situation. It is
argued that globalization and open market economy means survival for the fittest, but policy makers, in
all conscience, should be ponder.
3.5. Market share:
It is estimated that Bangladesh paint market is of value of BDT 2000 crore where Berger Paints (BD) Ltd.
is holding the maximum market share that is around 55% where almost 30 players are playing in the
market. Asian Paints, Roxy Paints and Elite Paints are holding double digit or near to double digit market
share. There are some other small players playing is the different geographical market and fighting well
against giant players. Moon Star paints, Olympic Paints are mentionable. Recently four big multinational
companies have entered into this market may be considering the growing GDP and industrialization of
Bangladesh. However, the market share has been shown in the following pie chart:

19

Chapter 4: Brief of Roxy Paints

4.1. Introduction:
The history of paint industry in Bangladesh is, in other words, the history of Roxy Paints Ltd. It is not
only because of its uninterrupted manufacturing of quality paints since 1953, it is more so because of
Roxys being the pioneering national entity. It fought against non-Bengali or Western paints during the
Pakistan days and against the multinational during last 43 years of independent Bangladesh.

20
Roxy survived the protracted battle for existence. But its success was manifest not only just in survival; it
won the hearts of the millions with world class consistent quality and proper customer service. Our users
bear ample testimony of a national paint being international in quality and again at an affordable cost per
unit of surface coating area.
The oldest paint manufacturing industry of the country Roxy is proud of being in a position to offer a
wide range of paints and varnishes that include distemper, interior paint, exterior paint, sealer and primers
are of water based family. Synthetic enamel paint and marine paint are of oil based group. Hammer,
epoxy, road and runway marking paint and tennis court paints are of industrial segment. Others are
cement paint, thinners, rust and paint removers.
Quality is never an ending journey. Making sure strong foothold in this dynamic global market, Roxy has
invested vigorously for its exclusive and modern R & D unit dedicating itself equally at laboratory, plant
and customer level to ensure constant quest for quality improvement and research into its present and
future product configuration and presentations.
The proverbial old is gold concept is only meaningful if the future looks brighter and consistent with
the past. Roxys future expansion master plan includes establishing its own backward linkage project for
producing time tested quality as well as developing new paint formulations to meet customers
satisfaction.
Fusion, the stylish wall finish is the newly developed product by Roxy Paints. Roxy Fusion is an art
using bold artistic colors and innovative movements to achieve a composition of shades and textures that
can only be achieved through the wondrous forces of nature. Fusion is provided with 150 designs under 9
categories.
Roxy has launched six Customer Care Center (3C), where customer may get total painting solution under
one roof. Architect advice, computerized color visualization, trained painter service, instant color tinting
system and installment payment facility on credit card purchase are the services offered free of cost.

4.2. Vision and Mission of the company

Roxy Paints Ltd operates with a very clear and concrete vision and mission. The vision and
mission statement of the company is given below:
4.2.1. Vision statement of Roxy Paints:
To lead the market achieving high level of satisfaction at user and stakeholder end improving the
quality of life through responsible application of knowledge, skill and technology

21

4.2.2. Mission statement of the company:

To attain market leadership in all categories of traditional paints by shortest possible time.
To ensure world-class products and services of high and consistent quality ensuring high
value for money to our customers.

To attain a high level of productivity through activating as well as executing all

functional area strategies of operation.

To improve its human resources by encouraging empowerment and rewarding

innovation.

To improve value chain activities by encouraging as well as sharing skill and knowledge
to its all value chain members.

To work maintaining harmonious relationship with the community and well being of the
society.

4.3. Values:

World-class quality

Transparency and integrity

Continuous Improvement

Innovation

Technological advancement

Superior customer service

Internal and external customer loyalty

4.4. Focusing points of Roxy Paints Limited:

Commitment to achieve total customer satisfaction.

Commitment to project the company as an ethical and socially responsible one.
Commitment to continue its reputation as the pioneer of the industry.
Commitment to continue its improvement in operation through utilization of highly
professionals and dedicated team, proper process management and participation of the
stakeholders.
Setting measurable target at appropriate stages and continuously monitoring them.

4.5. Nature of Business:

22

The core business of Roxy Paints 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, Roxy has
introduced end-user oriented services such as Ronger Mela (Instant Tinting System), Roxy
Fusion. The service technical service is provided by world famous leading colorants company
Evonik, Australia.
4.7. Major products of Roxy Paints Limited:
Production of paints and coatings is the core business of Roxy. Roxy produce a wide range of
paints including decorative/architectural paints, industrial coatings, marine paints and powder
coatings. The main products of the company are:

4.7.1. Water based products:

Water Based products are the products in which water is used as a main vehicles. Roxy produce
different kinds of Water Based Products like:

Weather guard paints:

Acrylic plastic emulsion
Acrylic distemper
Water sealer
Wall putty
Wall care

4.7.2. Oil Based Products:

High gloss synthetic enamel

Butterfly synthetic enamel

4.7.3. Marine Paints:

Roxy sea guard

Roxy marine paints

23

4.7.4. Industrial Paints:

Roxy industrial paints (Epoxy paints)

4.7.5. Varnish:

Best copal varnish

Synthetic clear varnish
Roxy new butterfly copal varnish

24

4.7.6. Paints Accessories:

Roxy Crown Brush

12mm
38mm
100mm
63mm
75mm
50mm
Roxy Crown Paint Roller
180mm
230mm
270mm

4.8. Roxy Ronger Mela:

Ronger Mela is an instant tinting system which allows an end user to choose color shades from a
wide range of shade option according to his/her choice. Roxy provide the technical support of the
service along with leading colorants company Evonik, Australia. The process of tinting system
can be figured out as below:

Fig: Ronger Mela Tinting System

25

4.9. Roxy Fusion: Roxy Fusion is an art using bold artistic colors and innovative movements to
achieve a composition of shades and textures that can only be achieved through the wondrous forces of
nature.
The range of Roxy Fusion are meticulously chosen by a panel of experts consisting of architects and
interior designers who analyze global fashion trends and decide on the color palette, which in turn allow
consumers to be in step with the latest style and color trends.
At Roxy Fusion, we believe freedom to fashion your walls. As much as we make sure, you feel at home
every time you walk into it, we also take care that every time a guest walks into your home, he knows that
he has entered your personal style spectrum.
This year Roxy Fusion brings so many colors which allow customers to revel in their own personal style.
The color palette comes in 8 distinctive themes to match your mood & personality. We call these
1. Stencil coating - the Beauty of nature which includes a range of colors that are smooth and
soothing and give the room a casual comfortable feel. It unfolds the tremendous personality and
imagination which can effectively relieve daily work, life stress.
2. Art coating bundle of joy ' is a theme which is geared towards those who choose to see the
fun side of life. These bright colors showcase a time of innocence and fun, a world that is filled
with a sense of magic and joy, ageless.
3. Floral coating heavens garden is the art of using flower design to create a pleasing and
balanced composition. This guide serves to illustrate the variety of design styles of floral
arrangements.
4. Texture coating joy of creative mind Texture coating is higher the look and feel of the
canvas. It is based on the paint, and its application, or the addition of materials for ethnic spaces
that are heavy on prints and textures, walls that are warm and humble do the trick.
5. Sand coating - 'rich and luxurious' is the trend which caters to the individual with classic taste
for those who crave to be the centre of attention. Retro patterns in subtle colors with sand coating
can be just what you need.
6. Rainbow Coating abstract color is a range that gives the room a sense of purpose and
simplicity. Shining luster as pearl, endless change color, it can bring the beats all art effect for the
situation which is needed the special decorative effects.
7. Splash coating color kingdom bold colors, free flowing ideas, cross-cultural influences,
unconventional patterns and impulsive combinations give birth to the Bohemian style created by
Roxy Velvet Trends.
8. Kids world - alice in the wonderland we decorate the wonderland of your children with the
large collection of our kids world. For a kids space that is big on colors and patterns, you need to
compliment it with bright colors and wonderland pattern are the way to go.

26
We at Roxy Fusion, help you create a world around you that truly reflects your identity, your persona,
your style. We help you fashion your walls as an extension of your lifestyle. As a famous designer said,
Fashion is not something that exists in dresses alone. Fashion is in the sky and on the street. It is in the
ideas we cultivate, the way we live and in what is happening around us."

4.10. Roxy 3C:

Roxy 3C Center is a one-stop shop for all your painting needs. Now paint shopping is made easy with
everything present under one roof. Be it color advice from our color expert, customized visualization or
even getting a trained Painter. Just walk-in to a Roxy 3C center and walk-out with a color solution that
will make your dream home come alive. We take the pleasure in introducing the Roxy 3c, a complete
decorating and design service operating in Uttara, Dhanmondi, Mohammadpur, Mirpur, Gulshan &Sylhet.
Free of Cost Services from ROXY 3C:
Architect Advice: Our interior and exterior architects are ready to assist customer in guiding their color
combination for their establishment. They can also suggest customer regarding the best utilization of their
space.
Computerized Color Visualization: We use state of art Paint visualization software that helps customer
to visualize customers establishment before they do the paint in reality.
Installment facilities on Credit Cards: Being the pioneer of paint industry Roxy Paints offer the
customers and installment facilities on Credit Cards. Now paint your house with Roxy Paints and pay in
3, 6 & 12 months installment with 0% interest. AMEX and SCB card holder can avail this privilege in all
Roxy 3Cs.
Instant color tinting: Roxy RongerMela - The latest instant tinting technology at store in technical
collaboration with world famous colorants Company Evonik can give customer any color them
visualize within few minutes.
Trained painter service: A large team of Roxy Trained painters and contractors of different locality with
different specialization can ensure valued customer a hassle free painting experience.

Fig: Roxy 3C

27

4.11. Sale and Customer support team:

Roxy Paints operate the business through following channels

6 Depot
70 Sales Executives
50 Sales Promotion Officers
25 Area Sales Managers
4 Regional sales head
1 General Sales Manager
3000 Dealers throughout country.

Fig: Field Force across the country

28

Chapter 5: Strategic business analysis of Roxy Paints

5.1. Introduction:
Roxy Paints though an oldest paint companies but quite an evergreen in name is strongly vivid in the
minds of millions as Roxy Paints since 1953, by a creative and popular TVC of last decade. The
Business was initiated by three national entrepreneurs with a noble objective of building the nation; this
venture had to struggle for survival with the socio political events which turmoil the nation with
significantly the language movement of the 1952s and war for independence in 1971.
With the passage of time this Entity has conceived more successful ventures who have become billion
dollar company today like as DEKKO Group and Blessing Group. After establishment of its branches in
the diversified business with different SBUs, it has concentrated more the last couple years to reorganize
the operation of paint business.
To strongly handle the severe competition from the multinationals who are generally being backed by
extensive backward linkages and R & D support, Roxy Paints has been elegant enough to develop and
modernize the paint solutions extensively with hiring the best technical experts and skilled professionals
available in the industry so that quality products can be provided at a competitive price, in the year 2012
the Brand has been re-launched with more augmentation and synergic designs which is first time in the
paint industry. The result came out the company grown by 100 % in the last 5 years.
This local brand with strong passion for providing world class products has been audacious is deploying
the best instant paint solution of the industry Roxy Ronger Mela in association with world famous
Colorants Company EVONIK.
The concept Total Paint Solution under than one roof in the name Roxy 3c in the year 2012 was
initiated first time where customers can get to have computerized color visualization, Architect advice,
Trained Painter supports, Look and Feel finishes of different surfaces. The state of the art customer care
center at highly developing zone Uttara is of 5000 sft. is till now the largest and most sophisticated paint
solution under one roof in the country.
More over to moderate the thirst of the artistic and imaginative minded clients it has launched Roxy
Fusion. The naming of the brand tells the story how different paint elements from oriental and western
cultures are being blended to create warm claiming hues by using bold and artistic movements in
breathtaking colors and textures.

29
Though being a local company Roxy has not only glued to the hard core commercial objectives only, as
part of CSR it has initiated a big budgeted scholarship program which has set an example for all national
and multinational Paint companies for doing something concrete for the marginal painters who generally
struggles with their siblings for higher studies, every year it runs a two year long scholarship program of
monthly 2,000/- for students who gets GPA 4 to GPA 5 in the SSC level, every year it is adding around
100 students in this program.
Though Roxy Paints limited is well known paint manufacturing company but time has come to conduct a
strategic business analysis because the market is getting more and more competitive day by day. In this
section, the business of Roxy Paints limited has been analyzed from different strategic angle. Different
models have been used to analyze the business based on the objective of the research.
5.2. Vision, Mission and Values of Roxy Paints: Roxy Paints Limited has its own vision and mission as
follows:
Vision statement of Roxy Paints:
The vision of Roxy Paints Limited is To lead the market achieving high level of satisfaction at user and
stakeholder end improving the quality of life through responsible application of knowledge, skill and
technology.
We have analyzed the vision as per the criteria accepted unanimously by strategic business academician
whether the vision is graphic, forward looking and directional, focused, having some wiggle room,
feasible, the directional path makes good business sense and memorable.
This statement fulfills most of the criteria which will give the right direction to the Roxy team for moving
forward by their own.

Mission statement of Roxy Paints:

To attain market leadership in all categories of traditional paints by shortest possible time.

To ensure world-class products and services of high and consistent quality ensuring high
value for money to our customers.

To attain a high level of productivity through activating as well as executing all

functional area strategies of operation.

30

To improve its human resources by encouraging empowerment and rewarding

innovation.

To improve value chain activities by encouraging as well as sharing skill and knowledge
to its all value chain members.

To work maintaining harmonious relationship with the community and well being of the
society.

If we analyze all the mission statements of Roxy Paints our finding is quite clear that mission
statements are highly co-related with the objectives of vision.
We have conducted a survey among the management people (lower to top management) of Roxy paints
whether they are aware of the vision of the company and found that 95% of people are aware of the
vision. Among these 99% people think that this vision shows the right direction.

Values of Roxy Paints:

World-class quality

Transparency and integrity

Continuous Improvement

Innovation

Technological advancement

Superior customer service

Internal and external customer loyalty

Values of Roxy Paints cover all factors as well as strategies related to its vision and mission.
5.3. PESTEL Analysis of Roxy Paints: We have analyzed the macro environment of Roxy Paints as per
PESTEL model. Following political, economical, social, environmental and legal factors have been
identified that affect the business of Roxy Paints:
Political factors:

31
a. Political situation is not favorable.
b. Government rule is flexible toward import and export of paint.
c. Government rule is flexible toward import of paint chemical.
d. Supplementary duty on paint.
e. Labor union is not active here.
Economical factors:
1. Very good economic growth of Bangladesh.
2. Exchange rate fluctuates time to time.
3. Per capita income is increasing.
4. Labor cost is favorable.
6. Interest rate is relatively high.
Social factors:
a. Different people with different occupation are available.
b. People are here with different status.
c. Families are now getting small from large joint family.
d. People are becoming more fashionable.
e. Income level is getting increased. Different people are here with different income level.
Technological factors:
a. Automation and low cost technology is getting popularity.
b. People are more active in social media.
c. Information sharing is relatively easier because of internet and website.
d. Supply chain has now faster.
Environmental factors:
a. The climate is moderate in Bangladesh which favorable for paints.
b. There is no ethical barrier to run the paint business

32
c. People are more concern about CSR activities by the company.
Legal factors:
a. BSTI is very active to protect consumer right.
b. People are getting more aware about health and safety issue.
c. Employees are getting aware about their rights and protection.
d. Government is also concern regarding all those issues.
5.4. Analysis by Porters five forces model: To determine the game plan we have analyzed the business
as per Porters five forces model which is described as follows:

Rivalry among competitorsAggressive price cutting strategy by

existing MNCs
Hostile attitude to grab market share
especially by MNCs.
World giant MNCs are entering into the
market having aggressive strategic vision
to take market share promptly.
Emergence of substitute products like wall
paper, Tiles, Ceramic bricks which have
longer life, comparatively high longevity
on investment.
Rapid change of technological
advancement among MNCs
High sales volume and promotional budget
for brand building activities.
Sufficient fund of MNCs to inject market
for business development.
Tendency of giving more credit in the

Very aggressive dealer incentive (foreign

tour to USA, UK and EU) by the MNCs.

33

Spending high budget for ATL and BTL

activities which is difficult to combat by
local player.

Firms in Other Industries Offering Substitute Products

Substitute products as follows
Wallpaper
Tiles
Ceramic bricks
Sticker

Effects of Substitute products

Target group has switching tendency to the substitute product, since buyers
have low costs in switching.
Pricing of substitute product also attractive in terms of longevity.

liers bargaining power:

pliers

Substitutes have comparable or better performance features.

dden enhancement of paint manufacturer for the last one
ar supplier products and services are in short supply which
ve an leverage in setting prices.

ost of the industry members are incurring high costs in

itching their purchases to alternative suppliers.
witching

e supplier industry is more concentrated than the industry it

lls to and is dominated by a few large companies.

ere are no good substitutes for what the suppliers provide.

pplier products and services are critical to industry members

oduction processes.

mber of supplier is not large relative to the number of

umber
dustry member and there are few large supplier with large
arket share.

34

Potential new entrantsMNC- three worlds giant MNCs has started their operation by the last one year.
Those are:
Akzo Noble- World market Leader in paint industry
Nippon
Juton

Very big player

across the globe

Local player- Many local players has started their operation. Those are:
FMC Paint
Hi-Max Paints,
Farzana Unique Chemical Co.
Echo Chemical Complex Ltd.
Both MNCs and Local players started their operation in a very aggressive manner
to snatch market share as well as strengthen their footing in the market which is
created a very tuft competition among competitors.

35

5.6. SWOT Analysis of Roxy Paints: We have identified strengths, weakness, opportunities and threats
of Roxy Paints. We have taken plan to grab up opportunity utilizing strengths and to defend threats
recovering weaknesses.
Strengths:
a. The oldest paint manufacturing company in Bangladesh.
b. Unique product quality at relatively better price.
c. Well known company name.
d. Strong in solvent based segment.
e. Strong dealer base in semi urban and rural segment.
f. Market leader in Varnish sector (Copal Varnish in varnish).
g. Young and aggressive management team.
h. Strong research and development team.
i. Niches strong customer base
j. Strong central whole sale distribution channel.
k. Highly confident management to fight against multinational.
Weakness:
a. Production capacity constrain (90% of total production capacity is being used).
b. Main factory premise is not in a strategic location.

36
c. Local brand image.
d. Lack of R & D support from Parents Company where MNCs get it free of cost.
e. No spillover effect in ATL activities.
f. Late entrant in water based segment.
g. Weak distribution as well as pull of brand in urban segment.
h. Insufficient fund for promotional activities.
i. Not automated production system.
Opportunities:
a. High economic growth of Bangladesh.
b. Rapid urbanization and Industrialization
c. Change of life style
d. Rapid market growth
e. Emerging necessity of new paint category.
f. High scope to enter international market.
g. Capitalizing patriotic feeling.
Threats:
a. World giant MNCs have entered into this market.
b. Emergence of substitute product.
c. Price cut strategy by MNCs
d. Political unrest.
e. Fluctuation of raw material price.
f. Merger and acquisition by multinational across the globe.

37
g. No government policy to pave local player.
h. Government flexibility toward finished paint.

5.7. Generic competitive strategy analysis: The business of Roxy paints Limited has been analyzed by
Porters generic competitive model. Roxy paints basically follow focused low cost strategy.

Roxy Paints
Figure Generic competitive strategy
Roxy Paints operates its business in different geographical area in Bangladesh at different leadership
position. Considering the market characteristics and leadership position, Roxy Paints offers different price
relatively lower or higher than the multinationals. But Roxy has some brand where it can enjoy price
leadership.
5.8. Strategic group mapping: We have mapped the strategic position of Roxy Paints within the group.
To find out the position within the group we have passed through following steps:

38
Step 1 Identify Competitors in the Industry
Step 2 Identify the Two Key Variables
Step 3 Identify the Third Variable
Step 4 - Plot the Strategic Groups Identified in Step 1 & 3
Step 5 - Aha or Not?

Elite

Roxy
Elite

Asian

High

Berger

RAK

Pailac

Monsta
Ujala

Considering the key variable quality and dealer network we have found the position of Roxy Paints which
is shown in the following figure:

Price/quality

High

Low

39

Few
locations

Not many
locations

Many locations

Geographic Coverage

Performance Management Framework of Roxy Paints

40

41

Performance Management Component of Roxy Paints

Three critical components for effective process of performance management

Performance Management Process of Roxy Paints

Wealth maximization

Paid up capital has been increased ten times for the last ten years.

Each year target to achieve at least 20% paid up capital of share holders.
Market Share Maximization

By the last ten years the market share has became double; 100% growth has been
achieved.

Each year target to increase 1.5% on total market share

Customer base and satisfaction maximization

No. of customer also has been double for the last five years.

Each year we are aiming to appoint three hundred potential dealers across the country.

42

It is our continuous effort to maximize customer satisfaction through Value Chain

Management (VCM) practice.

Team building with happy team players

We believe in Participatory Management Thought Process. So we always share well and

woe of our team player.

We always practice all policies as well as offer right kind of motivational incentives.

Performance Management Culture of Roxy Paints

We believe in faster growing culture.
Every team player is well aware of our vision and mission.
Roxy family is a team with high confidence to achieve business goals.

Performance Management Infrastructure of Roxy Paints

Three critical components for effective process of performance management
Enhancement of the production facilities
New factory building has been sat up in the year 2008 for back word linkage support.
New very modern factory will start operation by the next one and half years, since work
has been started two years back.
Installation of modern equipments for production and lab.
Many modern production machineries has been installed for the last five years to increase
production capacity as well as productivity.
World famous lab equipments has been imported for R&D lab to accelerate time tested
R&D activities.
Improvement of distribution channel
Six new distribution center has been established, vehicles with different capacity has
been purchased and trained distribution team has been developed to ensure Just In Time
(JIT) delivery

43

Roxys Strategy and Balanced Scorecard

To Roxy Paints - Balanced Scorecard Means:

A tool for balancing our financial objectives with strategic objectives.

It is also linking our financial performance objectives to specific strategic objectives that derive
from our business model.

Its give our employees a clear guideline about how their jobs are linked to the overall objectives
of the organization.

Why it is Roxy Paints Balanced Scorecard

Cause senior management of Roxy Paints signifies it balance between

Financial and Non- Financial measures

Short and long-term objectives

Leading indicators and Lagging indicators

Internal and External Perspectives

44
5.9. Balanced scorecard of Roxy Paints:
We have developed the balanced score card for Roxy paints Limited for balancing the business from four
key perspectives i.e. learning and growth, internal process, customers and financials.

When the balanced score card will be implemented, each one of the perspectives contains four sub-part
consist of
Objectives what the strategy is to achieve in that perspective.
Measures how progress for that particular objective will be measured.
Target refers to the target value that the company seeks to obtain for each measure.
Initiatives what will be done to facilitate the reaching of the target.
Strategic map framework: We have developed a strategic map framework for the implementation of
balanced score card which is in the following figure:

45

Figure: Strategic map framework

5.9.1. Strategic objectives in financial perspectives: To increase long term share holder value is the
strategic objectives of Roxy paints in financial perspectives through achieving following objectives:
a. To raise our authorized capital at taka 100 crore.
b. To land up to paid up capital taka 30 crore by the end of this year.
c. Long term goal is to make paid up capital taka 100 crore by next five years.

Following is the process how we will achieve the financial objective:

46

Figure: Mechanism of achieving financial goal.

Cost efficiency achievement mechanism:
a. Improving cost structure:
1. Experienced but innovative R & D team including two foreign consultants working for cost
reduction and new product development (NPD)
2. We have technical colaboration with some world famous company for developing technological
advanteges.
a. Cromoflow- USA based colorant company.
b. BYK- Germany based paint additives company.
c. Fast & Fluid Management- Natherland origin Tinting system technology provider.
d. Some Chinise innovative specialized paint manufacturer etc.
3. Installing modern equipments to increase productivity and decrisign production cost.
a. Manual filling machine to semi auto machine (old factory)
b. Semi auto filling to auto machine (new factory)
c. Medium term plan to set auto plant in the new factory.

47
b. Increasing asset utilization:
1. At present we are using 80 to 90% capacity of our plant which is outstanding, cause not possible
to produce more.
2. Inventory management
a. Finished goods- we use ERP for managing proper inventory. For fast moving item we
maintain 30 days inventory. And slow moving and very slow moving 45 days. But we
dont accept shortage of any SKU at any point of time.
b. Raw materials- we strictly maintain lead time for imported items and for local items we
maintain 30 days inventory.
c. Packaging materials- since we believe in VCM, so our suppliers are more cooperative
and active to ensure PM at any point of time.
Revenue growth achievement mechanism:
a. Expanding revenue opportunity:
1. By the last five years we have achieved 100% revenue growth
2. Short term target to grow 25% at the end of the financial year (14 April,2013 to 13 April, 2014)
3. Long term goal to grow more than 100% by the next three years
b. Enhancing customer value:
1. We always work on maximizing Customer Life-Time Value (CLTV)
2. Our philosophy regarding customer Right Customer Retention (with high CLTV) is more
profitable than customer acquisition and win back.
5.9.2. Strategic objective in customer perspective: To build a long term profitable customer value is the
strategic objective in customer perspective, framework of which is shown by the following figure

48
Customer Retention:
Since our philosophy is to give more emphasis on customer retention so we offer different scheme as a
part of strategy to retain profitable customers.
1. Long term monetary incentive
2. Surprise gift product bonus, utility gift items etc.
3. Foreign tour
4. Incentive for dealers spouse
5. Free godown service
Customer Profitability:
We always care for customer profitability We try to ensure 3-5% profitability for whole sellers and 12-15% for retailers
Customer Satisfaction:
1. Offer 3-4% less price with the same or better quality
2. Ensure just in time (JIT) delivery.
3. Provide customize services as and when necessary.
Market Share:
1. We have achieved 100% growth in market share for the last five years.
2. Short term target To snatch 1.5% market share by 13th April, 2014
3. Long term target To snatch 10% market share by the next four years.
Customer Acquisition
1. Quarterly target To select and acquire 75 potential but reliable dealers per quarter.
2. Yearly target To select and acquire 300 potential but reliable dealers per year.
Note: we adopt different strategic plan to acquire good dealers
5.9.3. Strategic objectives in internal process:
To build an effective and efficient management process is the strategic objective of internal process of
Roxy Paints, framework of which is shown in the following figure. This effectiveness and efficiency will
be achieved through achieving operation management process, customer management process, innovation
process as well as regulatory and social process.

49

Operations Management Processes:

1. We are ISO certified company, so what we do we make its records.
2. We are trying to follow CGMP (Current Goods Manufacturing Practice) instead of GMP
3. We believe in VCM
4. We also follow JIT delivery.
Customer Management Processes:
1. We have Customer Care Center (3C) at different location of the country- Architect Advice, Color
Visualization, Trained Painter Service, Technical Advice, Instant color tinting. We are the only the
company having Call Center- to maintain continuous relationship with existing and potential
customer.
Innovation Processes:
1. Our yearly plan is to launch 3 new brands having sustainable competitive advantages
2. Management aspiration is to change product design (packaging) six years interval to enhance
brand equity.
Regulatory and Social Processes:
1. We always abide by all government policies and regulation.
2. We do CSR activities off and on.
5.9.4. Strategic objective in learning & growth perspective: To ensure the maximum utilization of human
capital, organizational capital and information capital is the strategic objective of Roxy paints. We also
have developed the mechanism of achieving this objective which has been described below:

50

Human Capital:
We arrange need based in house training and send potential team player to attend training at different
HRD centre home and abroad.
Organization capital:
a. We believe in corporate family culture ROXY Family.
b. We prefer to develop leader from our team at different tyre.
Information capital:
a. We have modern ERP System
b. We have high performance networking system
c. We are trying to make a paperless office.

5.10. Industry life cycle analysis: We have analyzed the Paint industry life cycle while analyze the
business of Roxy paints to determine the business strategy. It has been identified that the paint market of
Bangladesh is now in its growth stage because it has some features that fulfill the criteria of growth stage
under industry life cycle.

In the graph it is shown that the paints industry of Bangladesh is now at late growth stage.
Though it has been plotted at late growth stage but there is no possibility to enter in to shakeout
very soon, rather the growth stage of Bangladesh paint industry might be linger.

51

Paint
industry
of
Banglade
sh

The reason of BD paint industry at growth stage is,

stable and continuous economic growth,

People power is increasing day-by-day, changing life-style, booming urbanization, increasing

distribution reach, increasing paint demand, technological advancement, innovative / new
featured products as per customer or society demand, using advanced formula for more profit,
for increasing sales all are considering their price, new entrants (MNCs are showing interest for
entering BD paint market).
5.11. Business model for Roxy Paints: We have developed a business model for Roxy Paints what will
help to achieve the vision of this company which is as follows:

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Value proposition Optimization:
Products:
- World class product at reasonable price i.e. at comparatively less price then competition.
Services:
Architect Advice: Our architect team is always ready to assist our customer in guiding color
combination and the best utilization of space for their establishment.
Computerized Color Visualization: We use state of art Paint visualization software that helps
customer to visualize their establishment before they do the paint in reality.
Installment facilities on Credit Cards: Being the pioneer of paint industry Roxy Paints offer
installment facilities on Credit Cards to pay in 3, 6 & 12 months installment with 0% interest.
Instant color tinting: Roxy Ronger Mela - The latest instant tinting technology at store in
technical collaboration with world famous colorants Company Cromoflo can any color
visualized within few minutes.
Trained painter service: A large team of Roxy Trained painters and contractors of different
locality with different specialization can ensure a hassle free painting solution.
Call Center Service: Our highly skilled call center representative team is providing services
towards our existing and prospective customers as per their requirement.
Our strategy toward adding customer value
We always work on maximizing Customer Life-Time Value (CLTV).
Our philosophy regarding customer-Right Customer Retention (with high CLTV) is more
profitable than customer acquisition and wins back.
We always ensure high value for money for our target groups.
Ensure just in time (JIT) delivery.
Provide customize services as and when necessary.
Revenue Maximization :
More customers, more outlets and more markets is the key factor of revenue
maximization.
A) Our goal for customer acquisition
- We have a strong corporate team to explore as well as acquire corporate client (3 big
customers per month).
- We have also a sales promotion team to discover potential end user and sell our
products directly to them (50 big establishments per month)
B) Our target for dealer acquisition as below- Quarterly target- To select and acquire 75 potential but reliable dealers per quarter.

53
- Yearly target- To select and acquire 300 potential but reliable dealers per year.
C) Our strategic direction for market expansion.
- We are focusing three big divisional town when we are weak in distribution as well as
demand creation to increase product availability and brand pull, these are-Dhaka Metro,
Chittagong Metro and Sylhet Metro.
- We are also targeting uncover thana and potential rural hut and bazars of the country.
- Since we are going to enhance the production capacity by establishing a new factory so
we are preparing our self to entering the export market.
Cost Reduction:
1. Experienced but innovative R & D team including two foreign consultants working for cost
reduction and new product development (NPD)
2. We have technical colaboration with some world famous company for developing technological
advanteges.
a. Cromoflow- USA based colorant company.
b. BYK- Germany based paint additives company.
c. Fast & Fluid Management- Natherland origin Tinting system technology provider.
d. Some Chinise innovative specialized paint manufacturer etc.
3. Installing modern equipments to increase productivity and decrisign production cost.
a. Manual filling machine to semi auto machine (old factory)
b. Semi auto filling to auto machine (new factory)
c. Medium term plan to set auto plant in the new factory.

Profit maximization:
- Very simple arithmetic equation for profit enhancement is to maximize revenue with
minimization of cost.

5. 12. Strategic intent for Roxy Paints: Roxy Paints limited is the third largest paint manufacturing
company in Bangladesh among multinational and local paint company where it is the first among local

54
paint company. The strategic intent of Roxy paint is to compete with multinationals to achieve the
leadership through providing world class products and services at a reasonable price.
5.13. Key success factors of Roxy Paints:
a. The oldest paint manufacturing company in Bangladesh.
b. Unique product quality at relatively better price.
c. Well known company name.
d. Strong in solvent based segment.
e. Strong dealer base in semi urban and rural segment.
f. Market leader in Varnish sector (Copal Varnish in varnish).
g. Young and aggressive management team.
h. Strong research and development team.
i. Niches strong customer base
j. Strong central whole sale distribution channel.
k. Highly confident management to fight against multinational.

5.14. External feedback: We have conducted a survey over 23 dealers, 34 users to know their feedback
in terms of product quality, distribution service, price and profit and found following feedback from the
field.

55

Dealer feedback:
Quality

Frequency
Valid

Good

Percent

Valid

Cumulative

Percent

Percent

10

43.5

43.5

43.5

Moderate

26.1

26.1

69.6

Very good

30.4

30.4

100.0

23

100.0

100.0

Total

Distribution

Frequency
Valid

Good

Percent

Valid

Cumulative

Percent

Percent

10

43.5

43.5

43.5

Moderate

21.7

21.7

65.2

Very bad

4.3

4.3

69.6

Very good

30.4

30.4

100.0

23

100.0

100.0

Total

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Time
Cumulative
Frequency
Valid

Percent

Valid Percent

Percent

12

52.2

52.2

52.2

12

30.4

30.4

82.6

24

13.0

13.0

95.7

48

4.3

4.3

100.0

23

100.0

100.0

Total

Profit
Valid

Cumulative

Frequency Percent Percent

Valid

Happy

Percent

11

47.8

47.8

47.8

Moderate

8.7

8.7

56.5

Unhappy

8.7

8.7

65.2

Very

34.8

34.8

100.0

23

100.0

100.0

happy
Total

Descriptive Statistics
N

Minimum

Maximum

Mean

Std. Deviation

Quality Score

23

3.00

5.00

4.0435

.76742

Distribution score

23

1.00

5.00

3.9565

.97600

Time score

23

1.00

5.00

4.2609

1.00983

Profit Score

23

2.00

5.00

4.0870

.90015

Valid N (listwise)

23

It is seen that according to dealer quality standard, delivery time and profitability are good which
have been found the output by SPSS software where distribution service need to be improved.
Consistency is also good.
User feedback:

57

Quality

Frequency
Valid

Good

Percent

Valid

Cumulative

Percent

Percent

14

41.2

41.2

41.2

Moderate

23.5

23.5

64.7

Very good

12

35.3

35.3

100.0

Total

34

100.0

100.0

Distribution

Frequency
Valid

Good

Percent

Valid

Cumulative

Percent

Percent

17

50.0

50.0

50.0

Moderate

17.6

17.6

67.6

Very good

26.5

26.5

94.1

Very

5.9

5.9

100.0

34

100.0

100.0

Good
Total

Time

Frequency
Valid

Percent

Valid

Cumulative

Percent

Percent

10

29.4

29.4

29.4

12

17

50.0

50.0

79.4

24

20.6

20.6

100.0

34

100.0

100.0

Total

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Price

Frequency
Valid

Happy
Moderate
Very

Percent

Valid

Cumulative

Percent

Percent

14

41.2

41.2

41.2

17.6

17.6

58.8

14

41.2

41.2

100.0

34

100.0

100.0

happy
Total

Descriptive Statistics
N

Minimum

Maximum

Mean

Std. Deviation

Quality Score

34

3.00

5.00

4.1176

.76929

Distribution score

34

3.00

5.00

4.1471

.70205

Time score

34

3.00

5.00

4.0882

.71213

Price score

34

3.00

5.00

4.2353

.74096

Valid N (listwise)

34

It is seen that according to user quality standard, distribution service, delivery time and
profitability are good which have been found the output by SPSS software with a good
consistency.
5.15. Recommendation:
1. It is very well known to all strategy execution is more important than strategy building. So it is
the prime responsibility of top management of Roxy Paints to share and make all tyre of
employees to understand the importance as well as application of all business models and
strategies develop by the top management.
2. Motivate all of the employees for their whole hearted support as well as right kind of attitude for
executing all the models and strategies to achieve the Visson and Misson.
3. To harvest the advantage of all strengths of Roxy Paints in terms of achieving top line and
bottom line of the company.

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4. To convert all weaknesses of the company in to strength or neutralize for strengthening
companys back bone.
5. To execute all strategic direction effectively and efficiently to grab all opportunity for Roxy
Paints.
6. To implement all defensive strategies to protect and minimize all threats of Roxy Paints at least at
minimal level.

5.17. Conclusion:
While I was going through all existing models and strategies of Roxy paints aiming to prepare this report.
Many of the models was not found in place as a result, unavailable model has been develop considering
strategic vision and mission of the company as well as existing mode of operation. Now, I am very
confident this report helps Roxy Paints to drive in to the market more professionally and strategically.
This report also helped me a lot to prepare and practice most of the important business strategic models in
the light of theoretical knowledge of strategic business management.