Business Development &

Marketing Management
For Built Environment
 Marketing strategies of Asian paints 2020

Table of Contents
ACKNOWLEDGEMENT ...................................................................................................................................... 3
1. INTRODUCTION ....................................................................................................................................... 4
2. VISION & MISSION OF THE COMPANY ..................................................................................................... 4
3. BACKGROUND ......................................................................................................................................... 4
3.1. BOARD OF DIRECTORS ....................................................................................................................................... 5
3.2. DIVISION OF BOARD OF COMMITTEES ................................................................................................................... 5
4. A GLANCE AT SHARE MARKET ................................................................................................................. 5
5. SWOT ANALYSIS ...................................................................................................................................... 7
5.1. INTERNAL ANALYSIS .......................................................................................................................................... 7
A. Strengths ............................................................................................................................................... 7
B. Weakness .............................................................................................................................................. 8
5.2. EXTERNAL ANALYSIS .......................................................................................................................................... 8
A. Opportunities ........................................................................................................................................ 8
B. Threats .................................................................................................................................................. 8
6. CURRENT MARKETING STRATEGIES ......................................................................................................... 9
6.1. MARKET SEGMENTATION ............................................................................................................................ 9
6.2. BERGER PAINTS IN LIGHT OF THE PORTER’S FIVE FORCES ..................................................................................... 9
6.3. MARKETING MIX OF BERGER PAINTS ............................................................................................................. 9
A. Product Mix ........................................................................................................................................... 9
B. Place Mix ............................................................................................................................................. 10
C. Promotion Mix ..................................................................................................................................... 10
D. Price Mix .............................................................................................................................................. 12
7. BERGER PAINTS FUTURE STRATEGIES .................................................................................................... 12
8. CONCLUSION AND RECOMMENDATION ................................................................................................ 12
9. REFERENCES .......................................................................................................................................... 14

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TABLE OF FIGURES
Figure 1 Basic chart of prices in stock market (control, 2020)................................................................ 6
Figure 2 Major Players of Indian Paint Industry (sanasecurities, 2020) ................................................. 6
Figure 3 Financial analyses (control, 2020) ............................................................................................. 6
Figure 4 Industrial sector compositions of paints (paint, 2019) ............................................................. 6
Figure 5 Retail Values in INR ................................................................................................................... 7
Figure 6 Berger Paints Market Segmentation Table (mbaskool, 2020) .................................................. 9
Figure 7 Promotional Branding Posters ................................................................................................ 11
Figure 8 Berger Paints future strategies (Scribd, 2020) ........................................................................ 12

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Acknowledgement
I would like to present this project report with tremendous pleasure to RICS
School of Built Environment, Mumbai. Working on the subject of "Study of
Marketing Strategies at Berger Paints India Ltd," this would not have been
possible without the goodwill and guidance of the people around me, has been
an enriching experience for me. As a student I wish to extend my sincere
thanks and appreciation to Mr.Parshuraman and Dr.Sonali Joglekar (Faculty of
Business Development and Marketing Management) to shape my
understanding towards the project.

Arunima Rane
MBA (CPM) 2nd Semester
RICS School of Built Environment,
Amity University, Mumbai

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 Marketing strategies of Asian paints 2020

1. Introduction

The brand Berger Paints started as Hadfield's (India) established in 1923 which was a small venture
manufacturing varnishes, mixed stiff paints and distempers. The company was set up on a 2-acre
industrial town into one of India's most famous cities, Kolkata. Berger Paints was founded in 1760,
by Mr Lewis Berger. Today the name Berger or Lewis Berger is synonymous with colour around the
world. His concept of adding shades of colour to communities was to transform their homes through
the power of imagination into their dream spaces.
Berger Paints India is a public limited company with headquarters in Kolkata, India. It was founded
94 years ago in the month of December 1923. The company has 13 production units with workforce
strength of 3000 and over 25,000 dealers in India.
Berger Paints are known for making high-quality paints and other materials for commercial as well as
home use. Their product portfolio includes:
i. Interior Wall Coatings
ii. Exterior Wall Coatings
iii. Berger Metal and Wood Paints
iv. Undercoats
v. Construction Chemicals
vi. Wallpapers
Berger Paints is also known for its expert services such as:
i. Virtual Painter
ii. Express Painting
iii. Preview Facility
iv. Expert Advice
v. Projects
vi. Protective Coatings
vii. Powder Coatings
viii. Automotive & GI Coatings
The Berger Easy clean luxury emulsion is one of the most famous and loved product by this
company. This is a very common choice among people who have children at home, and who also
want some fun and colorful designs (paint, 2019).

2. Vision & Mission of the Company

VISION: To be the most admired Indian Paint & Coating Solutions Company with globally recognized
competencies (paints, 2020).
MISSION: To maximize shareholder value by developing and delivering innovative and best solutions
for our customers, consistently outperforming our peers and providing a Dynamic & Challenging
work environment for our employees (paints, 2020).

3. Background

For over 88 years, Berger Paints has demonstrated its dedication to Indian customers by offering its
wide range of high-performance, high-quality products backed by the highest customer service level.
The high ethical standards of the organization in business dealings and its ongoing community
welfare activities make Berger Paints India Limited a responsible corporate citizen. While the
decorative and industrial paints of the company continue to gain an increasing market share, Berger

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as an organization has succeeded in achieving sustainable competitive advantage through creativity

in all spear of industry, the commitment to excellence and the development of a winning culture and
the abiding confidence among all its stakeholders in its values & philosophy.
Transform our home with the POWER OF IMAGINATION (paint, 2019).

3.1. Board of Directors

Mr.Kuldip Singh Dhingra Chairman

Mr. Gurbachan Singh Dhingra Vice Chairman
Mr. Abhijeet Roy Managing Director & CEO
Mr. Kamal Ranjan Das Director
Mr. Naresh Gujral Director
Mr. Pulak Chandan Prasad Director
Mr. Kanwardip Singh Dhingra Executive Director
Mrs. Rishma Kaur Executive Director
Mr.Anoop Hoon Independent Director
Mrs.Sonu Halan Bhasin Independent Director

3.2. Division of Board of committees

1. AUDIT COMMITTEE
2. COMPENSATION & NOMINATION & REMUNERATION COMMITTEE
3. SHAREHOLDERS COMMITTEE
i. Share transfer committee
ii. Stakeholders' relationship and investor grievance committee
4. CSR COMMITTEE
5. BUSINESS PROCESS & RISK MANAGEMENT COMMITTEE

4. A glance at share market

Annual revenue for this company is US$ 630 million, and is a leading name in the paint and coating
sector. This is the 2nd largest paint firm in India after Asian paint. In India, Berger Paints has seven
factories located in four major regions. The brand is founded in over 80 locations across India. It is
present worldwide in 4 countries including Nepal, Russia, Poland and Bangladesh. All site offices
have a sales staff committed to meeting the needs of the customers. Berger is the lone supplier of
Nuclear Power Plants with its Protective Coatings. The automotive sectors, be it cars or bikes, is
primarily ruled by Berger’s automotive coatings. Luxury cars including Mercedes make use of Berger
products (summerinternship report, 2020).

The Competitor’s Business Models:

1. Asian Paints-Overall market Leader due to cost leadership strategy
2. Kansai Nerolac-Market Leader in Industrial Paints Segment also presents in decorative
paints segments.
3. Akzo Nobel-Major revenue comes from decorative segment. Also present in automobile
paints.
4. Shalimar Paints -Oldest Company. Mainly into decorative and non-automobile paints.

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Figure 1 Basic chart of prices in stock market (control, 2020)

Figure 2 Major Players of Indian Paint Industry (sanasecurities, 2020)

Market Cap (Rs Cr.) 43,593.20

P/E Ratio 73.67
Book Value (Rs) 24.43
Dividend (%) 190
Price/Book 18.37
P/C Ratio 61.04
Figure 3 Financial analyses (control, 2020)

Figure 4 Industrial sector compositions of paints (paint, 2019)

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5. SWOT Analysis

5.1. Internal Analysis

A. Strengths
Following are the Strengths in Berger Paints SWOT Analysis:
1. Ranking: Berger Paint is ranked 2nd with nearly one-fifth market share in India.

2. Consumption Basket: Berger Paints offers a wide variety of products which includes home
to industrial paints.

3. Workforce and effective supply chain: With 7 production plants, 85 depots, several
regional & area offices with 2500 employees and over 15000 dealers, it has well-established
operations & supply chain network throughout the whole country.

4. Brand Recognition: It has an excellent brand marketing awareness among their potential
customers.

5. International Market: The Company has international presence, it has 4 manufacturing

facilities abroad; operations in Russia, Nepal, Europe and Bangladesh.

6. Barriers to market entry: They have grown so large they have built a barrier to market entry
for fierce competition. They dominate much of the market along with Asian Paints.

7. Loyalty: Customers are loyal to Berger Paints when it comes for re-painting their homes.

8. Growth: They have had a steady growth in their retail values (RSP) (marketing91, SWOT
Analysis of Berger Paints, 2020).

Figure 5 Retail Values in INR

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B. Weakness
Following are the Weaknesses in Berger Paints SWOT Analysis:
1. High dependence on one segment: For their full profit, Berger Paints is heavily dependent
on one segment and that is the decorative segment. This is not a long-term plan, and cannot
maintain long-term high growth rates (marketing91, SWOT Analysis of Berger Paints, 2020).

2. Bad brand image: Berger faced more negative publicity due to excessive lead found in their
paints. That kind of advertising taints the company's brand identity. (marketing91, SWOT
Analysis of Berger Paints, 2020).

3. Weaker distribution: Berger paints is known to have a weaker distribution network as

compared to Nerolac or Asian paints which is a major problem for the company. It needs to
ramp up its distribution network far and wide and if needed, increase its manufacturing
potential to match demand (marketing91, SWOT Analysis of Berger Paints, 2020).

4. No premium alternative: Asian paints have conveniently targeted a unique segment which
gives high margin through their Asian paints Royale initiative. Berger paints needs such
initiative to get in touch with their customers and have better sales and brand equity
(marketing91, SWOT Analysis of Berger Paints, 2020).

5.2. External Analysis

A. Opportunities
Following are the Opportunities in Berger Paints SWOT Analysis:
1. New Launches: New Product launches and innovation with changing trends.

2. Strong growth Potential in India owing to urbanization.

3. Business diversification.

4. Product diversification (marketing91, SWOT Analysis of Berger Paints, 2020).

B. Threats
The threats in the SWOT Analysis of Berger Paints are as mentioned:
1. New entrants in the industry and local companies.

2. Raw material Prices: Fluctuations in raw material prices

3. Competition in the market: Stiff competition among several paint products companies
(mbaskool, 2020).

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6. Current Marketing Strategies

6.1. Market Segmentation

Segment Middle Class and upper class segment

Target Group Home owners, Professionals and Industry Users

Positioning Fulfill your imagination of colours

Figure 6 Berger Paints Market Segmentation Table (mbaskool, 2020)

6.2. Berger paints in light of the porter’s five forces

Supplier strength varies from low to large within the paint industry. It could however be understood
that for Berger Paints most of the inputs were typically generated internally by themselves. The
Company made sure on the manufacturers they were not too expensive. This minimized suppliers
'influence and Berger Paints had greater control over the consistency and cost-effectiveness of the
raw material. The current competitor competition was still high in the paint industry's integrated
sector but Berger paints was one of the market's strong competitors. While Asian paints was the
market leader and Berger paints only contributed for about half the share of the market of Asian
Paints, Berger paints still had a very strong foothold in the market and the competitors were still
aware of the past impact. Switching costs are very minimal for the consumers and therefore
branding and market segmentation is a key to surviving the market. Berger paints have decided to
target the luxury market and launched a variety of products known for their enamel finishes,
emulsion and weather resistant paints. The naming of the goods and the development of a
trustworthy name has helped to the purchaser power and increase the loyalty of the customers
substantially over the years (Scribd, 2020).

6.3. Marketing Mix of Berger Paints

A. Product Mix
The company offers a varied portfolio of products and services. Its range of products includes:
1. Interior Wall Coating
2. Exterior Wall Coatings
3. Berger Metal and Wood Paints
4. Undercoats
5. Construction Chemicals
Its range of services includes:
1. Express Painting
2. Preview Facility
3. Virtual Painter
4. Paint Calculator
5. Projects
6. Expert Advice
7. Powder Coatings
8. GI & Automotive Coatings
9. Protective Coatings

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The services offered by Berger Paints are demarcated into Home Users, Professional Users, and
Industrial Users. The services relate to specific projects undertaken by an individual or organization
wherein a product is delivered, for example, different types of coatings or consultancy of specific
nature is given for example expert advice, virtual painter or preview facility (marketing91, 2008-
2019).

B. Place Mix
The company has factories in 7 locations within India situated in all four major regions of the
country. It is present in more than 80 locations in India. Internationally, it is present in 4 countries
like Nepal, Russia, Poland, and Bangladesh. All the locations have dedicated sales team to service
the customer needs (marketing91, 2008-2019).

C. Promotion Mix
The company has undertaken various philanthropic activities as part of its Corporate Social
Responsibility (CSR) goal and improved its brand image (marketing91, 2008-2019).
Berger Paints is extremely high in ads and promotions. When it comes to TV campaigns, they have
very special and distinct concepts that concentrate on various pressure points of painting a house
and how Berger Paints has the answer for it. Brand's tag line is “Paint Your Imagination”.
Most of its commercials are targeted to family and kids and hence are very popular and
remembered by the audiences. They are the first ones to create an “Anti-Dust Paint” in India as
well. Actor Pankaj Tripathi too is seen on print and some TV commercials done by the brand for this
product (brandyuva, 2019).
The brand ambassador of this company is Kartina Kaif, and the audience very much enjoyed the
Berger Silk Glamor advertising campaign done by the brand with her. She's roped in to advertise the
brand's luxury emulsion paint collection. This showed beautiful walls made up by Berger Paints and
how the Silk Glamor Paint would make their homes gorgeous. The tag line for this product is
‘Deewarein Nahin, Yaadein Hain’ (brandyuva, 2019).
Berger Easy Clean Paint: This is one of the brand's most desired and successful products. This is
recognized for its outstanding quality of cleaning, and guarantees that the wall would stay shiny as it
was on the first day of painting. The tag line for this product is ‘No Daag, No Dhabba’ (brandyuva,
2019).
They brand has also launched various TV campaigns for promoting this Berger Easy Clean Fresh.
Some of them are as follows:
#Berger Easy Clean – Football Campaign
#Berger Express Painting – Husband and Wife
#Berger Express Painting – T20 of Painting (brandyuva, 2019).

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Figure 7 Promotional Branding Posters

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D. Price Mix
Berger Paints pricing is affordable and comparatively cheaper than some of its closest rivals, eg Asian
Paints and Nerolac. For instance a 100-125 sq. Primer by Berger Paints, ft. field, costs Rs. 1880. But
for the same zone both Asian Paints and Nerolac will cost Rs.1980.The rate of Primer is Rs. 65/Litre
by Berger Paints. For Asian Paints and Deluxe it is labelled at Rs. 70/kg and Rs. 68 respectively. The
rate of wall putty is labelled by Berger Paints at Rs. 60 /Kg, whereas Deluxe and Asian Paints price it
at Rs. 68 /Kg and Rs. 70/Kg respectively (marketing91, Marketing Mix of Berger Paints – Berger
Paints Marketing Mix, 2008-2019).

7. Berger Paints Future Strategies

Figure 8 Berger Paints future strategies (Scribd, 2020)

8. Conclusion and Recommendation

Conclusion
Following discovery of Berger's entire production, some of Berger's crucial resources are listed as
follows:
1. Quite a wide range of products, shades and packet sizes. For instance, in the decorative
paints segment alone, the company had 8 different stock keeping units.

2. Berger Paints India Ltd had a large network of about 15000 dealers. While Asia's top market
leader paints had around 33,000 dealers, Berger paints emerged with a significantly larger
global supply chain compared to the rest of the competitors.

3. Also, Berger Paints India ltd established the importance of not being too reliant on decorative
and industrial paints, and began diversifying into automotive coatings and plastic substrates.
Berger also extended its operations globally to Nepal, Bangladesh, Russia, and Poland, and
had partnerships with Sweden's Becker and the Nippon Paints of Japan.

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4. Some of Berger's most valuable tools have been its various brands and the respective
recognition Berger has been able to achieve with each of them. Many of the main brand
names like Luxol, Rangoli and Bison were popularized in such a way that the household
generally knew such brands. The business also claims that their recent brand ambassador
Katrina Kaif has also contributed to the growth of brand equity of the Company (slideshare,
2020).
Recommendation
Some recommendations Berger Paints should follow:
1. Another worrying aspect is that nowadays the goods of the Berger Paints decorative market
offer less publicity compared to previous times. And steps should be taken to boost and
thicken the consistency of the paint to attract loyal customers.

2. Booklets consisting of different wall designs as well as different shades should be made
available to householders from which they can select which category or standard or design
best fits their individuality (summerinternship report, 2020).

3. Stalls should be built in front of the construction sites, when customers visits the site to buy
flats, they can see various kinds of wall paints and texture design. Such opportunities can
easily be turned into good sales (summerinternship report, 2020).

4. Media promotion should be increased so that Common public should be more aware of the
different types of products and advantages what the products provides the customers.

5. For a long time Berger Paints was not having a brand ambassador, but now it has signed
Bollywood actress Katrina Kaif as their brand ambassador who is going to promote Berger
Paints. But till now the commercials are not in the televisions. So in this aspect Berger Paints
is having a huge drawback as compared to Asian Paints, Nerolac and ICI who have well known
personalities as their brand ambassador. This plays on the sentimental grounds of the
viewers which lead to their greater sale. Brand promotion by a well-known figure is the most
needed to gain competitive advantage (slideshare, 2020).

6. Rural markets should also be considered for marketing of Berger paints.

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9. References

brandyuva. (2019). Journey and Marketing Strategies of Berger Paint. Retrieved from Brandyuva:
https://brandyuva.in/2018/10/marketing-strategies-of-berger-paint.html
control, m. (2020). Berger Paints India Ltd. Retrieved from www.moneycontrol.com:
https://www.moneycontrol.com/india/stockpricequote/paintsvarnishes/bergerpaintsindia/
BPI02
marketing91. (2008-2019). Marketing Mix of Berger Paints – Berger Paints Marketing Mix. Retrieved
from marketing91: https://www.marketing91.com/marketing-mix-berger-paints/
marketing91. (2020). SWOT Analysis of Berger Paints. Retrieved from www.marketing91.com:
https://www.marketing91.com/swot-analysis-berger-paints/
mbaskool. (2020). Berger Paints SWOT Analysis, Competitors & USP. Retrieved from
www.mbaskool.com: https://www.mbaskool.com/brandguide/industrial-products-and-
chemicals/5120-berger-paints.html
paint, b. (2019). Project report on berger paint marketing. Retrieved from www.slideshare.com:
file:///C:/Users/hp/Downloads/summerinternshipprojectreportbergerpaintsmarketring-
121104094909-phpapp02%20(1).pdf
paints, B. (2020). Vision and Mission. Retrieved from Berger paints:
https://www.bergerpaints.com/about-us/vision-mission.html
sanasecurities. (2020). Sana securities. Retrieved from www.Sanasecurities.com:
https://www.sanasecurities.com/kansai-nerolac-stock-analysis/
Scribd. (2020). Berger-Paints-Competitive-Strategy. Retrieved from Scribd:
https://www.scribd.com/doc/237291992/Berger-Paints-Competitive-Strategy
slideshare. (2020). summerinternshipprojectreportbergerpaintsmarketring. Retrieved from
www.slideshare.com:
file:///C:/Users/hp/Downloads/summerinternshipprojectreportbergerpaintsmarketring-
121104094909-phpapp02%20.pdf

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