Marketing Strategies of Berger Paints Bangladesh

Main purpose of this report is to analysis Marketing Strategies of Berger Paints Bangladesh Limited. This report has covered just about all the strategy of Berger Paints Bangladesh ltd for marketing its product. Additionally, it includes a brief profile on the company. To know the strategy on the company it also includes the item categories and the distribution channel on the company. Other objectives are identify Segment strategies and identify Target market selection strategies. Finally identify Positioning Strategies and identify Pricing strategies also identify promotional strategies.

 

Objectives of the study

This study had been carried out to achieve some predetermined objectives. This has been broken down into two different categories of objective.

Broad objective

  • To identify and analyze the marketing strategies that Berger adapt in different levels

Specific objectives:

  • To identify Segment strategies
  • To identify Target market selection   strategies
  • To identify Positioning Strategies
  • To identify Pricing strategies
  • To identify promotional strategies

 

Methods and Procedures

Every Research work should be conducted through a specific and predetermined methodology to explore an effective research outcome. The nature of the study is a qualitative research. It has been conducted with a methodology and the laments of methodology are as following:

Primary sources

Primary data have been collected by direct interviews and conversations with the employees within the Dhaka sales office of Berger Paints Bd. Ltd.

Secondary sources

  • Berger’s Bluebook
  • The website of Berger (www.bergerbd.com)
  • Prospectus of Berger
  • Different journals and publications
  • Other Research Papers

 

 

History of Berger

Berger is one of the oldest names in paint industry detailing back more than 200 years to 1760. Lewis Berger, a German national, founded dye & pigment making business in England.

Lewis Berger & Sons Limited grew rapidly with a strong reputation for innovation and entrepreneurship culminating in perfecting the process of making Prussian Blue, a deep blue dye, a color widely used for many European armies’ uniform.

Production of dyes & pigments evolved into production of paints & coatings, which till today, remains the core business of Berger.

Berger grew rapidly by establishing branches the world over and through merging with other leading paint & coating companies.

 

Berger in Bangladesh

Berger Paints began its painting in Bangladesh since independence. And this has been a footstep to bring more than 230 years of global paint industry experience into Bangladesh.

In 1970, Berger Paints Bangladesh Limited (BPBL) erstwhile Jenson & Nicholson had set up its paint factory in Chittagong at an estimated investment of TK.4 million. The shareholders were Jenson & Nicholson (J& N), Duncan Macneil & Co Ltd and Dada Group.

Duncan Macneil subsequently sold their shares to majority shareholder J& N group. The Dada group’s share ultimately vested with the Government of  Peoples’ Republic of Bangladesh after the independence

The name of the company was changed from J& N (Bangladesh) Limited to Berger Paints Bangladesh Limited on 1st January 1980. In August 2000, J& N investment (Asia) Ltd purchased Government shareholding. Now, Berger Paints Bangladesh Limited is 100% owned by J& N Investment (Asia) Limited, UK. Over the decades, Berger has evolved to becoming the leading paint solution provider in this country and has diversified into every sphere of the industry – from Decorative Paints to Industrial Coatings, from Marine Coatings to Powder Coating and what not.
To give a comprehensive and sustainable painting solution to the need of the industry, Berger has invested more on technology and Research & Development (R & D) than any other manufacturer in this market. It selects the raw materials from some of the best known names in the world: MITSUI, MOBIL, DUPONT, HOECHST and BASF are a few to name. The superior quality of Berger’s products has been possible because of support from its advanced plants and an international-standard of strict quality.

 

Major products of Berger paints Bangladesh limited

Production of paints and coatings is the core business of Berger. Berger produce a wide range of paints including decorative/architectural paints, industrial coatings, marine paints and powder coatings. The main products of the company are:

Major categoriesBrand name
Decorative
Synthetic enamelRobbialac  synthetic enamel
Jhilik synthetic enamel
Interior emulsionRobbialac acrylic plastic emulsion
Exterior  emulsionWeather coat
DistemperRobbialac distemper SPD
Cement paintDurocem

 

IndustrialJensolin
Epoxy
Berger industrial enamel
MarineBerger marine
Powder coatingsSupracoat

 

Major Competitors of BPBL

Berger paints Bangladesh LTD operates its business in a competitive environment with both local and multi-national organizations. At present the company holds 55% market share where as the rest of 45%market share holds by the other multi-national and local companies. It’s clearly indicated that Berger paints Bangladesh Ltd is in the leading position  among all other competitors in the paints industry .The majors participant of  the paints industry are ; Asian  Paints, Elite Paints, Romana Paints , Roxy Paints , Aqua Paints , Pailac Paints ,Al-karim Paints, Uzalla Paints, etc. Among this company only Asian Paints is multinational and others are all local producers. Asian Paints has started its operation in Bangladesh very recently. Already it diversifies its business with huge ranges of color and product verities.

But still Berger paints Bangladesh Ltd holds its top position with strong distribution networks, effective and efficient management team and human resource.

 

Marketing Strategies of Berger Paints BD Ltd.

Marketing strategies of Berger is built on STP – Segmentation, Targeting and Positioning. Berger discovers different needs and groups in the market place, target those needs and groups that it can satisfy in the superior way and then position its offerings,  so that the target market recognize the companies distinctive offerings and image.

Marketing strategies of Berger depends on

  • Segmentation of products.
  • Target market selection.
  • Positioning their product.

Segmentation strategies of Berger

Before segmentation their product Berger segments its business through the year. Generally the summer and winter is the peak season not only for Berger but also every paint producer. October to June is peak season and July to September is the lean season for the paint industry in Bangladesh, which is related to weather conditions.

The peak and lean months of the year, on the basis of the seasonality of the paint market, is as follows:

Month/ periodConditions
JanuaryPeak
FebruaryPeak
MarchPeak
AprilPeak
MayPeak
JunePeak
JulyLean
AugustLean
SeptemberLean
OctoberPeak
NovemberPeak
DecemberPeak

Berger paint Bangladesh limited mainly segments their product mainly on three categories. These are

  • Decorative.
  • Industrial.
  • Marine.

 

Decorative

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

Premium emulsions, regular acrylic emulsions, distempers, first quality enamels, exterior finishes, textured finishes, automotive refinishes- you would expect a company like BERGER, the premier paint company in Bangladesh, to have leading brands in all these categories.

 

Color Bank

Berger Color Bank introduces you to the global way to paint with a unlimited choice of shades to match your taste-instantly. The shade cards in Berger Color Bank stores are merely indicative of the amazing choice Berger Color Bank can give you. The rest is up to your imagination and your fingertips. Every Berger Color Bank store has a computerized color tinting machine to help you choose and take home your own shades from our world class range of paints. Availability of your chosen shades is always ensured as the paint is created and dispensed by the machine before your very own eyes.

What’s more, as you see the shades of your choice on the screen, it also suggests three other colors to match it. Today thousands of satisfied customers swear by Berger Color Bank. Resulting in the installation of numbers of tinting machines in Berger Color Bank stores across the country. Our Access to World Class Quality. Berger Color Bank uses superior imported colorants and the world renowned tinting technology of Italianate, Italy. All these assure you a paint quality which is world class. Match and Compare endless Color Combinations Berger Color Bank has an unique Tint vision software which allows you to see infinite color combinations on the screen of the computer. If you so desire you can mix and match and create your own shades as well.

 

Color Bank Products at a Glance

Robbialac Plastic Emulsion Classic
Robbialac Synthetic Enamel Gold
Luxury Silk Splendour
Robbialac Pearl Lustre Finish
Weather coat Smooth Classic
Robbialac SPD Super
Wood Keeper Finesse

Industrial Paints

This is a different segment of Berger’s wide range of paints mostly used for the industries both as raw materials and as protective paints for the equipments and buildings. Berger industrial paint is the economy brand of industrial paints. Protecting industrial assets is increasingly becoming critical owing to rising asset costs, harsh weather conditions and mounting chemical pollution. Therefore asset owners are looking at specialized protective coatings specific to their requirements. We perceive this to be just the right environment for Berger Paints to demonstrate its growing technical strength.

Protective Coatings from Berger paints offer a choice of high-performance, heavy-duty coatings, designed to protect assets against the specific corrosive environment they are exposed to. Berger Paints Protective Coatings are tested under extreme conditions to ensure that they are durable and can withstand the vagaries of the different climatic conditions. Today the range of coatings find use across diverse industries such as nuclear, thermal or hydel power plants, chemical, petrochemical or fertilizer plants, refineries, sugar, pulp and paper industry, offshore structures, pharmaceuticals etc.

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

 

Target market selection Strategies

Berger has chosen target markets to co-operate in the interest of overall company in a socially responsible manner. The total size of the paint industry in Bangladesh is estimated at taka 4.29-4.44billion in 2005. The paint industry can be divided into three segments. These are

a) Decorative.

b) Industrial.

c) marine.

The decorative segments of the market accounts for a whopping 83.42% of the total industry, whereas industrial, marine segments contribute 12.17%, and 4.41%, respectively.

The major focus of the companies, operating in the industry, is towards decorative segment. Only a few of the companies have their product offerings in industrial and marine segment. All the competitors are concentrating their best efforts for carving out their share of the pie in the decorative segment of the industry. The enamel segment accounts for around 50% of the decorative paint market by value and approximately 40% by volume.

Berger market share in the synthetic enamel category is increasing gradually. As this product is accountable for the major share of the paint market, its continued success will result in significant growth of the overall market share of the company. This will also enable Berger to battle its competitors by weakening then in such a strategically important segment.

 

Positioning Strategy

Berger designs the company’s offerings and image to occupy distinctive place in the mind of the target market. For positioning in the mind of the target market Berger has differentiated its variables.

Product differentiation

Product differentiation on the basis of size, shape, color shade, convenient size of their paint container, plastic container and so on. It’s also maintain its better quality product, finest color shade, durable & long lasting paint, and they are also responsible to the customer wants and satisfaction.

Service differentiation

Every company in the service market differentiate their service to be the best service company and capturing most of the market share. Berger differentiates its service comparing to the other competitors. These are

  • Ordering ease
  • Customer consulting & delivery Service

Ordering ease

Ordering ease of Berger refers to how easy it is for the customer to place an order to the company. So they introduce the online service in case of order. So the customer can order and receive its product without going to market.

Customer consulting & delivery Service

With a view to bolstering consumer satisfaction, Berger Paints Bangladesh Limited has introduced “Berger Home Décor” on June 15, 2002 through which one can get an array of services pertaining to painting.

Berger Home Decor offers two-stage services:

  • Free Service
  • Paid Service

Berger Home Décor is currently offering wide range of services to its prospects and existing consumers embracing:

Technical advice on surface preparation and application guideline:

  • Paint selection.
  • Dealer selection.
  • Painter/ Contractor selection and
  • Color scheme.

There is defined Telephone number, 02-9354067 for queries. By ringing simply in the number one can make query or seek available services from the company. According to the nature of query, the company provides solutions.

Personnel differentiation

Berger always gain a strong competitive advantage through having better trained people. To recruit personnel Berger follows some strategies that are

  • Skill & knowledge.
  • Courtesy, friendly.
  • Communicating ability.

Channel distribution

Berger achieve competitive advantage through the way they design their distribution channels coverage, expertise and performance

Distribution of product

With its strong distribution network, Berger has reached almost every corner of Bangladesh. Their nationwide dealer network, supported by seven sales depots strategically located in Dhaka, Chittagong, Rajshahi, khulna, Bogra, Sylhet and Comilla has an unmatched capability of cater to the needs of the consumers of paints products, almost everywhere in Bangladesh (Special shade & products)

 

Image differentiation

Berger has taken many powerful marketing strategies to build a high image in the market. It has strong slogan and symbols to identify image powerfully.

Media & sponsorship

Media is the mainstream to built and develop image not in our country but also allover the world. Burger built up its image through advertising, sponsoring different social and cultural activities.

Social responsibility

Berger paints has been organizing Young Painters; Art Competition for the last nine (9) years and also introduced Young Architects’ Award from 2003. The company regularly contributes to a number of causes and social welfare institutions through donations and sponsorships. These efforts results in a better image for BPBL, as minds of the general public, who are, after all, consumers of their products.

Quality policy of the company

Burgers objective is to achieve business excellences through quality by understanding, accepting, meeting and exceeding customer expectations. Berger follows international standard on quality management system to ensure consistent quality of product and services to achieve customer satisfaction.

ISO Quality Policy

Berger Paints Bangladesh Limited is committed to achieving total consumer satisfaction. They commit to project themselves as an ethical and socially responsible company. Berger commits to continue as the market leader through consistent sales growth, increasing productivity and developing new products befitting consumer needs. It shall ensure continual improvement in their operations through utilization of highly professional and dedicated team, proper process management and participation of stakeholders. Berger will set measurable targets at appropriate stages and shall continuously monitor them.

 

Environment strategies of Berger for marketing

Berger is committed to main etingtain the harmonious balance of our eco system and therefore constantly seeks ways to manufacture and produce products in an eco friendly manner. From its inception, Berger has played a pioneering role in introducing new paint and paint technologies to the Bangladeshi market; Berger’s efforts have established it as the most esteemed paint company of the country and have contributed significantly in its growth. Berger intends to continue its ceaseless endeavors in the future years, and it is expected that such efforts will contribute immensely to the sustained and growing success of the company’s business.

Technology orientation:

Berger has always been the most technology oriented paint company of the country. It has the most modern state-of-the-art production facilities installed in its Dhaka factory. Its Research and Development (R&D) and Quality Control (QC) departments are equipped with the best technologies in this country. Such technolo0gy driven strategy will definitely assist the future business growth of the company.

Market responsiveness:

Berger has always tried to respond promptly to market feedback. AS a result, Berger enjoys competitive advantage over its competitors. It is expected that Berger will enjoy more growth in the future, if it continues to be so be market responsive.

Social Commitment

The 9th term of Berger Young Painters’ Art Competition has been completed successfully in 2004 .We are encouraged to see the increasing level of enthusiasm among the young painters. This year also, a large number of participants took part in this nationwide Art Competition.

Berger has always been a responsible corporate citizen. This unique Art Competition is one of the examples of Berger’s social commitment as a responsible corporate citizen.

Like previous year, in line with our convention of showcasing the best six paintings, we present before you the paintings of the award winners of 2004 competition. The top six winners of this year are Selina Haque Lina, Mohammad Imran Ali, Pintu Chandra Deb, Dip Narayan Biswas, Touhin Hasan and Shahida Begum.

The Jury Committee for the competition comprised of Prof. Qayum Chowdhury, Prof. Hashem Khan, Prof. Rafiqun Nabi, Prof. Abdus Sattar, Prof. Abdus Shakoor Shah, Associate Prof. Jamal Ahmed and Asst. Prof. Shishir Bhattacharjee.

Berger Paints Bangladesh Limited had also organized an exhibition with the top 40 paintings, at the Zainul Art Gallery of Institute of Fine Arts University of Dhaka.

 

Pricing strategies

The fierce competition has also made the industry highly price competitive. Most of the competitors consider pricing as one of the major marketing tools.

The price strategy of Berger is to offer a high quality product at a competitive price. They set its price in relation to the value delivered and perceive by the customer. Because it believes that if the price is higher than the value perceived, the company will miss potential profits and if the price is lower than the value received the company will fail to harvest potential profits.

 

Findings and Analysis

Analysis

SWOT Analysis

To formulate the marketing & overall strategy of Berger paints Bangladesh limited,(BPBL) the management 1st analyze their mission and objective and then use the steps  of SWOT analysis to find out the strength, weakness, opportunities and threats and then find out the main strategies for the company.

Strength

  • Strong brand image.
  • Good reputation among customers
  • Experienced top management.
  • Global experienced of Berger.
  • Cost advantage from proprietary know-how.
  • Favorable access to distribution network
  • Strong market share.
  • Good profitability.
  • Strong solvency.
  • Satisfactory MIS.

Weakness

  • Exposed of currency risk.
  • High cost structure
  • Lack of access to the best natural resources
  • Lack of access to key distribution channels
  • High cost for importing raw materials

Opportunities

  • Increasing demand on paints.
  • An unfulfilled customer need in some cases
  • Arrival of new technology
  • Loosening of regulations
  • Removal of international trade barriers
  • A developing market such as the internet
  • A new international market

Threats

  • Shifts in consumer tastes away from the firm’s products.
  • Emergence of substitute products.
  • New regulations.
  • Increased trade barriers.
  • A new competitor in your home market.
  • Price wars with competitors.
  • A competitor has a new, innovative product or service.
  • Competitors have superior access to channels of distribution.
  • Taxation is introduced on your product or service.

 

Sales Analysis

The Sales achieved during the financial year ended 31st December 2009 was 3480.20 million as against Tk 3065.50 million in the previous year showing a growth of 23.05%. The profit after tax at Tk 227.12 million marked a growth of 4.93%. However, due to abnormal inflation of raw materials prices, progressive devaluation of the taka and intensive competition in the market, desired profit could not be achieved.

The company improved its overall market share due to strong brand pull form consumers, continued support from the distribution network as well as projects. The growth in the building construction resulting in a growth in the use of Exterior Emulsion paint, as opposed to the conventional cement paint. Moreover the innovative marketing strategies during 2008 i.e., Berger Home Décor the one stop paint solution together with color consultancy, the launch of ‘Berger Illusions’ range of design coatings, as well as ‘ Robbialac Easy Clean’. Emulsion paint has provided the consumers with unique coatings resulting in improvement in life style.

Monthly sales in different product of BPBL

DivisionDaily salesMonthly sales
Colorant643903,075,379.20
Decorative14,412,758.05226,623,218.50
Durocem1,107,778.6022,637,121.55
Industrial472,934.0519,094,378.84
Marine985,926.9519,375,401.79
Suprakoat69,368.005,975,928.00
Total17,113,153.65296,781,425.39

Source: Primary data

Performances over the last five years and value added statement of Berger paints Bangladesh Ltd have shown below with tables and graphical presentation

Particulars20092008200720062005
Turnover3480.23065.652410.12121.121737.64
Value Added Tax (VAT)370,540331,210285,903274,084216,730
Turnover (Net off VAT)2,645,2102,347,6502,154,6521,847,0321,520,907
Gross Profit810,549779,689754,210729,092693,710
Profit Before Tax492,212440,587399,045360,521316,020
Profit After Tax271,121259,450240,540227,120216,448

 

Sales Volume in Current year:

 

MARKET SHARE

Market share studies determine the proportion of total sales received by a company and its competitors.

A term used frequently in business as a performance measure, market share is the proportion of total sales of a product during a stated person in a specific market that is captured by a single firm. Market share can refer to entire industries, segment of industries or particular geographic areas and can also apply to past, present, or future periods.

MARKET SHARE 2009

The following table shows the market share of Decorative paints in Dhaka city for the year 2008,

CompaniesValue sales (%)
Berger55.40
Asian17.20
Roxy5.90
Pailac3.40
Elite7.90
Aqua1.33
Romana3.54
Uzala0.80
Others4.53
Total100

Source: Secondary data

In 2009, Berger paints held 55.4% of market share in Dhaka city whereas the second largest market share was occupied by Asian paints with 17.20%.Elite paint possessed the third largest market share 7.90% where Roxy paint held the fourth position with 5.9% market share. Romana and Pailac possessed consecutively 3.94% and 3.40%of the market share. Other paints like as Polac, Dunkun, paramax, Bengal Agency, Nazrul Brothers paint, Imperial, Navana etc Held 4.53% of the paint market share.

Source: Secondary data

Outcomes:

  • Berger paints possessed the leading position in paints market.
  • Asian paints possessed the second position.
  • Elite paints held third highest market share.
  • Roxy paints acquired fourth position of the paints market.

 

PRODUCT BASIS MARKET SHARE, 2009

Enamel

Almost every company has two category of enamel – premium and economy had already mentioned earlier. Berger paints premium enamel is Robbialac Superglues Synthetic Enamel and Economy Jhilik. Asian paints premium enamel is Apcolite Synthetic Enamel and Economy is Decora. Generally the sales of Enamel are comparatively high in comparison to the other category of product irrespective of areas.

The following table shows the market share of Enamel-

CompaniesValue Sales %
Berger44.60
Asian19.20
Roxy15.23
Pailac9.80
Elite3.20
Romana3.54
Uzala.90
Others3.53
Total100

 

PLASTIC EMULSION

Plastic Emulsion is comparatively higher priced interior emulsion.Generally the areas where constructions are raising and, plastic Emulsion are highly demanded in these areas. It is also more demanded in higher class societies. Different companies try to different product by making it luxury, washable, and vast range of color.

The following table shows the market share of Plastic emulsion-

CompaniesValue Sales %
Berger40.5
Asian20.30
Roxy15.21
Pailac9.80
Elite5.65
Romana3.54
Uzala1.15
Others3.85
Total100

 

 

DISTEMPER

Distemper is lower price but higher volume sales product. Generally upper lower class and middle class societies highly require distemper. All most all companies have distemper. Distemper is highly demanded hole Dhaka city.

The following table shows the market share of Distemper-

CompaniesValue Sales %
Berger59.60
Asian12.32
Roxy8.3
Pailac6.30
Elite4.56
Romana2.2
Uzala1.15
Others5.56
Total99.96

EXTERIOR LIQUID

Exterior liquid is higher quality exterior emulsion. Exterior liquid are introduced in the market in different brand names. Berger paints exterior liquid are Weather Coat Classic and weather Coat Long Life. It is highly demanded on VIP area in Dhaka city.

The following table shows the market share of Exterior liquid-

CompaniesValue Sales %
Berger45.6
Asian30.2
Roxy8.30
Pailac2.32
Elite4
Romana2.2
Uzala1.15
Others6.2
Total99.95

 

CEMENT PAINT

Cement paint affords a hard, durable and waterproof surface. Cement paints are introduced in the market in different brand names. Berger’s paints Cement paint is Durocem, Asian paint cement os Decora, Elite paint’s Cement paint is Elitecem, Bengle agency’s cement paint is Snowcem etc. It almost all areas in Dhaka city, this product are highly required.

The following table shows the market share of Cement-

CompaniesValue Sales %
Berger55.5
Asian24.20
Roxy6.32
Pailac2.32
Elite2.2
Romana1.8
Uzala1.45
Others6.20
Total100

 

FINDINGS OF THE STUDY

The survey has been conducted on 120 traders of paints. In this survey it is tried to cover the Dhaka City to get the real picture. After processing the gather information I can draw the followings findings.

  • As it is found that 45% dealers order for Robbialac Acrylic Plastic Emulsion and 55% Of the total sales the other products.
  • Average monthly sales of the Dhaka sales office are 45 core liters. But monthly Production capacities of the Saver factory are 40 core liters. Besides majority portion Of the dealers claim that they receive about half of their total order. So it can be said that production capacity of the factory fails to meet the dealers demand.
  • Most of the dealer agreed that customer usually switch to competitors products due to Supply shortage and lengthen delivery system. Customers mostly switch to Asian Paints, Elite paints and Roxy paints as these companies also offer almost similar shades. So to Some extent Berger paints faces sales loss for other product.
  • Cent percent dealer’s claims that they are dissatisfy with the product only for shortage Of supply and lengthen delivery process.
  • The main reason behind increase the market share of Berger Paints is its high quality Products, well established customer loyalty, comparative organized structure of Management, marketing, sales, distribution.
  • In, 2009 Berger paints also possesses it leading position and its market share increase to 62%.
  • In, 2009 Asian paints possesses second largest market share and increase there position.
  • Asian paints is very much promising because of its better quality, good competitive Strategies, well market analysis well established communication, frequent dealer visit. Some time this is more than that of Berger paints.
  • Berger paints can take the Asian paints as their largest competitor because Berger Paints Started its business in Bangladesh since Independence where as Asian paints started its Business just before four years. But with in a very short time Asian paints capture it’s Market place with competitive strategies.
  • Berger Paints with in a very short time create more dealers of their own with liberal

credit policies, providing more profit to dealers, providing more discounts facilities etc.

  • In, 2009 Elite paint has possessed the third position in paints market.
  • Though Elite paint has popularity in market for better quality with comparative lower Price, but it management, sales and distribution procedure is not structured. So any time It may lose its current market share.
  • In, 2009 Roxy paints held the fourth position in the paints market.
  • Recently Roxy has taken aggressive to serve the market. It has totally redesigned its management, sales, distribution, and also human resource.
  • Though in 2009, Romana paints possessed fifth position in the paint market.

Though it has great brand image, it will have to be struggled in the paints market because of its huge bad debts.

 

Conclusion

Berger Prints Bangladesh ltd is the market leader of paint industry having about 40% shares. The company has strong distribution network all over the country. It has more than 1000 direct dealers. In addition, numerous secondary dealers operating in the outskirts of the major markets are engaged in selling the products of the company. BPBL introduced many new products into the market like exterior emulsion, silk emulsion, readymade wall putty etc. it first introduced Color Bank back in 1998, which enabled the customers to choose his desired shades from an exclusive array of over 5,000 shades. It also introduces home décor service. It has good brand image. Berger has been trying to increase its brand image further through more media presence, arranging programmers like Berger Young Painters are competition, Berger Young architects award, scholarship program for architecture students of BUET. It is constantly working to improve its products quality through comparative study and customer feedback in order to maintain competitive edge.

 

 

Recommendation

By reviewing report it can be recommended that:

  • The company should find out new sector.
  • Reduce dependence on special brand as decorative.
  • They should expand their sales depot countrywide.
  • They should deal more with construction firm.
  • It should always pay heed to the dealers growth rate, take initiative to recover gap and always monitor their activities.
  • Berger paint should restructure its sales system. Its can restructured through employing more salesperson, improving it’s delivery system, enrich end-user activities, frequent market visit and better communication with distribution.
  • Its general sales procedures like taking order, preparing invoice, categorization of invoice, Preparing rout plan, lining products for loading of vehicles should be automated.
  • Safety stocks should be maintained in the product to ensure the instant delivery against Customers demand regarding the products.