Report on Romana Paint Company Ltd - Assignment Point
Report on Romana Paint Company Ltd
Subject: Business, Marketing, Organizational Behavior | Topics:

Introduction:

Theoretical knowledge does not highlight the reality as clearly as practical knowledge. Theoretical knowledge is guideline, but practical knowledge is experience oriented. Practical knowledge is must for the completeness of theoretical knowledge. Both are equally important. As a student of Business Administration I have gathered enough knowledge and techniques. Now it is needed to compliance this knowledge with in practical orientation. As per the requirement for completing master’s degree I need to work in a business organization to give effect to my theoretical knowledge.

1.2. Background of the Study:
Knowledge and learning becomes perfect when it is associated with theory and practice. Theoretical knowledge gets its perfection with practical application. After the complication of the eleven trimester’s courses I was played in Romana Paint Company Ltd. limited for six weeks in order to complete a short internship program to gather practical knowledge. This is an orientation to the entire brand management department and finally conducted a study on a particular area of analyzing the performance of “Romana Paint Co” in the Industry of Bangladesh. While working with both of my supervisors in which I can make a detail research and present my understanding about the operational area in this report. This internship program brings me very closer to the practice in the company helps to develop a little understanding about the detailed mechanism of the overall brand management system of the Romana Paints Co. Ltd. in this state I have worked to reflect my entire efforts in analyzing the experience of practical orientation related to overall marketing activities of the Romana Paints Company Limited.

1.3. Objective:
Basically two type of object in the study. They are:
1). General Object.
2). Specific Object.

1). General Object:
Assessing the performance of “Romana Paint Co” in the Industry of Bangladesh.

2). Specific Object:
There are some specific objects for my study. They are:
 Analyzing the Marketing Mix of Romana Paint Industry Ltd.
 SWOT Analysis of Romana Paint Industry Ltd.
 Analyzing the competitive performance of Romana Paint and other Paints.
 To find out the existing problem of the Romana Paint Ind.
 To find out how efficiently its present strategies are working.

1.4. Scope of the study:

During my internship work in Romana paint co. ltd. I have found that the organization progressing status is very fast. The organization makes a very strong place in the competitive paint market in our country as well as other countries in the world within a very short period of time. The scope of the study is mainly concentrated on what consumer think, feel and act toward the paint companies brand Romana Paint. The study has generated information that has application in all the areas (4ps) of the marketing aspect.

1.5. MEHODOLOGY
Methodology is the processes or purpose of collecting of data and information, which are required in connecting with finding tools for best possible solution of problems.
Basically this research is a Descriptive Research.

1.6. Sources of Data Collection Method:
For data collecting I have used both of primary and secondary data. At the starting point I have started by examining secondary data to see whether the problem can be partly or fully solved without collecting primary data. When the needed data did not exist, I had to collect primary data.

Primary Data:
Data gathered for a specific purpose or a specific research methods. The normal procedure is interviewing some people individually to get a sense of how people feel and think about the topic in question.

Method of Collecting Primary Data:
Using Questionnaire method both for wholesaler and competitors.
Personnel interviewing.
Visit the distributor office.
Secondary Data:
Data that were collected for another purpose and already exist somewhat.

Method of Collecting Secondary Data:
Analysis of annual report.
Companies analyze.
Search in web site.

1.7. Time Frame of the Study:

It couldn’t be claimed that this study was 100% based on impractical data. Undoubtedly it has got some limitation regarding the representation of whole of factors of the organization. At the data collection for the study, I have been facing following problem which is given bellow.

Time Limitation: They give me not enough time to diagnosis of my interview.

To keep Confidence Information: During the period of data collection it has been observed that the tendency of employees has been to keep information Confidential.

Sample Size: Though the sample size was fixed 100 for wholesaler, and fifteen questions for competitors companies. With these sample size it is very difficult to get good result.

Lack of Interest: At the time of data collecting it has been observed that most of the wholesale, dealer and company did not get attention in answering the questionnaires.

Chapter Two
2.0. Organization Part:
2.1. History and Company Background of Romana Paint.

This is a project on Sagar Chemical and paint Industry ltd. and paint Industry Ltd, where I have described the business operations and company situation of Romana paint, one of the businesses of Sagar Chemical and paint Industry ltd. In this Strategic Human Resource Management course I have learn many strategic steps, which can be applied, to solve any companies HR of overall business related problems. I have visited Sagar Chemical and paint Industry ltd. Romana paint office, factory and storehouse.

There I have found many of positive sides of the business of Romana paint in Bangladesh as Ill as some serious problems that can hinder their business success in future.

Like many other business organizations in Bangladesh, Romana is also suffering from problems in their HR department. But they are realizing the need of an active and employer HR department. Management is also doing a poor job in managing and satisfying their employees with their jobs. They are really in need of developing stable business strategies as all HR management strategies to face the challenge of upcoming market competitions.

Company with the slogan,

“Believe in the better and go for the better.”

In the in site of the company, they said, color it’s a gimmick, color is an erection of nature, color it’s a symphony of human life .So, everyone try to make them self-colorful. Romana paint has born to make our world colorful. The name Romana came from of synonym of paints (color). Romana paint is ambitious in coloring the whole country.

Moreover they posses a dream to export paint all over the world. Bangladesh is considered as a Greenland and a land of river. It’s a developing country and its infrastructure is changing very fast.
After the independence it paid more attention to the construction of development, education, culture, science & technology. Especially sky high buildings get the new dimension of the cities and formulation of the tremendous architectural plan.

That is why; I can say that, the city is getting a new rhythm and beauty. Industries and workshop has been the touring point of housing business. By this time few number of paint company started business, and almost one two companies had monopolistic business.

That is why price was not affordable to all the people of Bangladesh. Considering the capacity of general people and also different professional, at the end of 1983 a new company was developed named “Sagar Chemical and paint Industry ltd. & Paint Ltd. Its brand name is “Romana Paints” which was started by Mr. Quddus and Mr. Abul Kalam Farhad.

From the last two decades Romana Paint has become an international standard paint provider by fulfilling the demand of millions of people. Romana Paint is maintaining its individual standard, quality, value and wins a permanent position in the hearts of the citizens of Bangladesh with different class and professionals. With in 2005, its aim is to become number one and best paint selling industry in the country.
A huge number of active sales team and an efficient management co-ordinate are representing a wonderful marketing result. Specially, Romana is giving attention to choose people who know the value of money. Now Romana giving extra care to the elegant people but not neglect to the general people. In fact Romana dreaming paint, thinking paint, developing paint and it could be Romana’s moral commitment “Believe in the better and go for the better”.

2.2. Quality Certification.

Getting the ISO certificates are not only prestigious but also a good indication that win customers’ trust. Very few company of the Bangladesh is certified by ISO 2000. Romana Paint is soon going to get this certificate. 90% of the paper work has been done in this regard. By the year 2007 they are going to get the certificate. This is in deed an honor for the company. The reputation of the company will have a better stand in the market after they would get the certificate. Romana can take different strategies to attract more customers in the urban market. It is the urban market where the company is facing the competition. The foreign paint companies are coming up with different program to gain more market share. Romana can gain more market share by adopting new technology available in the market.

In this regards Color bank can an opportunity for Romana Paint. To introduce color bank they wound not be need huge investment but through this they can surely be able to gain more market share. Sagar Chemical and paint Industry ltd. is one of the oldest paint industries in the paint industry. They have taken lots of steps to survive and to lead the marker.

2.3. Quality Policy:
Qualities leading towards a successful Business in future

2.3. I. Effective Promotional Campaigns.

High quality products will stay in warehouse if there is no effective and timely promotion campaign. The top management of Romana has done a great job in promoting the brand. Everywhere in the country is familiar with the brand name and image. They Ire successful in building up the image by being much focused to their target customers and the market segment.
As their main target market is the suburban market, they did not go for much sophisticated TV advertisements rather them Ind. for more colorful funny ads which would attract the target audience.

That is why I see the famous clown singing “Dekho Dekho Romanar Bahar” to attract the suburban or rural customers and the famous film actress Muoshumi coming in dream of the carpenter. These kinds of Ill designed add was very successful in promoting the brand Romana. They also had TV advertisements for their better quality produces, which was bit expensive and was made considering the urban areas. These TV advertisements have created a good place in the consumers mind about Romana Paint.

2.3. II. Enhanced product Quality.

Romana does other activities for their brand; they sponsor different events, they sponsors for housing fairs and so on. These kinds of activities made their brand very Ill known and this definitely strength for the company. To gain more share Sagar Chemical and paint Industry ltd. has bound themselves with some famous construction companies. The construction firms like Pran Groups, Rings, Hamid Real Estate, and Building for Future etc. uses Romana for their different projects.

Recently they made contract with a government firm named Bangladesh Machine Tools. These kinds of contracts had made Romana to achieve more market shares.

Romana Gold

One of Romana’s recent successes is Romana Gold. This particular brand was introduced in suburban market. Under Romana Gold they have Synthetic Enamel Paint-Gold, Hammer Gold, and Aluminum-Gold etc. These products are not as good as Romana Synthetic Enamel in quality wise but and they are also cheap in price. This particular segment of their products hit the market right away. With their Ill build distribution channels they made these products available to every corner of the country. This brand was very popular among the middle class market.

2.3. III. Ability to Compete.

Competition is always creating pressure in the activities of Romana paint. The market leader Berger also tried to capture the suburban market by introducing new produce but failed to compete with Romana. This success of Romana made it very clear that to compete with Romana outside Dhaka is quite hard.
Some local company is there as the competitors. By backward linkage I understand the production of the secondary products, which supports the main product.
This helps the production to be more cost effective. This is plus point for any company. Romana Paint also has backward linkage. To support their production they have Resin factory, which is used to produce enamel paints. They also have container factory. They can use this strategy farther more to support their business. They can plant plants to produce raw materials, which can be used in the production of paint.

This can be a huge opportunity for the company as they already producing other raw material (Resin), it would be an easy task for them to expand their business in this way and be cost effective.

2.4. Advertising of Romana Paint:

Romana Paint Industry provides advertising in various channels. They provide advertising in:

1. Television Media,
2. Radio Media,
3. Print Media,
a) News Paper,
b) Magazines,
c) Papers,
4. Billboards.
2.5. Sales and Distributing the Products

All the production efforts will be useless if those products cannot be distributed so the customers can get easy access to buy their products. Sagar Chemical and paint Industry ltd. is Ill aware of this fact, so they are very careful in distributing their products as per the demand. The ability to do this is proved to be a very important advantage on the part of Romana Paint. As usually the Paint companies are having a real hard time in distributing the products to the retailers incurring big cost for any company.

I can say the main reason for Romana to lead the market is that they won their own distribution channel. They have 3750 outlets around the country.
Among them 2800 outlets are out side the Dhaka city. No other paint company has such a big their own distribution channel. This is obviously a great advantage, as usually the Paint companies have to pay a huge amount of commission to the retailers, which is a big cost for any company. Romana do not need to spend that much on commission. They do have retailers to support their business.

As they have good distribution channel outside the city, they have come up with the product suitable for that market. They have Romana Gold especially for the suburban or rural market.
In the year 2000 Barger came up with their product for the suburban market but they could not be successful out side Dhaka. These outlets do a great job for not only earning them revenue but also compete with the other companies. The biggest share of their revenue comes from outside the Dhaka city. And the reason behind this is that they have 2800 outlets out side the city.
They have outlets many remote places where other paint shop does not even exist. Romana took this advantage for farther growth. They do not have any agents; they directly supply their products to the retailers.

2.6. Sales Promotions of Romana Paint Industry:
Romana Paint Company Provide various sales promotion. Romana Paint Company provides basically two types of sales promotions. They are,

1. Consumer Oriented Sales Promotion,
2. Trade Oriented Sales Promotion.

1. Consumer Oriented Sales Promotion: Consumer oriented sales promotion is company provide extra benefits to the consumer for buying a certain product package. The company provides to the consumer some incentive on buying products. The company provides to the ultimate consumer of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various point of purchase of products.

3. Trade Oriented Sales Promotion: Trade Oriented Sales Promotion is the company provide targeted toward marketing intermediaries such as wholesalers, distributors, and retailers. Promotional and merchandising allowances, price deals, sales contests, and trade shows are some of the promotional tools used to encourage the trade to stock and promote a company’s products.

2.7. Public Relation of Romana Paint:
It is important to recognize the distinction between publicity and public relations. The Romana Paint Company systematically plans and distributes information in an attempt to control and manage its image and the nature of the publicity it receives, it is really engaging in a function known as public relations. The Romana Paint Company public relations is as the management function which evaluates public attitudes, identities the policies and procedures of an individual with the public interest and executes a program of action to earn public underrating and acceptance. Romana Paint Company connect the public relation with helping people, taking sports sponsorships, and providing donation in natural digester areas.

2.8. Management Hierarchy

Every organization must follow a formal organogram. Organizational chart is also known as organogram. Formal Organizational chart refers to the organizational hierarchy which means the chart will show that who is going to work under whom or who will report to whom. It is obvious that any Ill-built organization has formal organization chart to demonstrate the reporting relationship among the employees.

It is very unfortunate that, Romana Paint does have a formal organization chart in their documents but they hardly follow it for reporting purposes. It is quiet unfortunate that being the number one local Paint Company, Romana Paint does not follow the organizational charts in a formal way. Romana Paint has recently gone through many lay-offs as Ill as many employees leave the company and after that they did not bother to fill-up the positions.

As a result, employees got confused about whom to report in the place of the previous supervisor. Many of their employees are reporting to the GM of Marketing and sales though they are from different department such as administration and so on. This may affect Romana Paint negatively. This might lead Romana paint to more indiscipline.

The employees who are used to work under the constant supervision of the previous superior might not be able to adjust with new boss. It is actually hindering the natural flow of work.
Effective communication process can lead to grater success of an organization. In addition to, communication flow must be simple and time saving.

Message can successfully interpret when the communication network is easy to understand and network involves less people. Romana Paint does not have this type of effective communication flow because of wide span of mid-level managers, which is another important thing in communication.
2.13. Organizational Structure of Romana Paint Co.

Many mid-level positions of different departments are vacant and the company is not taking any measure to fill-up those positions, some of the existing mid-level managers had to communicate with their subordinates of different departments. Mid-level managers have to communicate with many employees that cause wide span of control. This complex circle of communication and wide span of control of mid-level managers may results miscommunication and poor performance.

2.9. Objective of Romana Paint:
The broad objective of the report is to study and analyze the overall market situation for a new brand of Romana Paints. Romana’s main objective was low cost and the competitive product, which can be affordable to the whole target group. In near future Romana Paint Factory is going to be the most modern factory in the country and definitely Romana will be unbeaten and number one paint Industry in the country. Riding on success in real estate sector, Bangladesh’s paint industry is witnessing enormous growth.
2.10. Title of Report:
Analyzing the performance of “Romana Paint Co” in the Industry of Bangladesh.

2.10. I. Origin of the Report: Romana Paint is a world wide exporting company. It has many products. Romana Paint has official license of Romana Paint Bangladesh Ltd.

2.10. II. Statement of the Topic:

Analyzing the performance of “Romana Paint Co” in the Industry of Bangladesh.
There are limited numbers of company in Bangladesh who are producing and marketing paints in the market. In the rural area in our country paints are not fully arrived. So there is an opportunity to making paints. Paints are needed to use in our day to day life activities such as use to on the wall, car, instrument, etc.
2.11. Business Philosophy of Romana Paint Co. Ltd:

2.11. I. Company Mission:
Next mission is to become each and every people choice to buy our product. For the success of both the mission company has decide to expand our industry in every steps and everywhere.

2.11. II. Company Vision:
Romana Paint will motivate our personnel and to train them for the upcoming and advance technology to face the challenge of future.

2.11. III. Slogan of the Company:
“Believe in the better and go for the better.”
2.12. Organizational Goal

Today goal is defined as the main objective of an organization. Without a goal no organization can reach their destination. The entrepreneurs Mr. Abdul Quddus & Mr. Abul Kalam Ire great dreamer. They set up their goal how long they want to go. That was the milestone of this organizational success.

Romana’s Main ethic was low cost and the competitive product, which can be affordable to the whole target group. In near future Romana Paint Factory is going to be the most modern factory in the country and definitely Romana will be unbeaten and number one paint Industry in the country.

Of course Romana have a great intention to set up the all back up of paints material and in a very short time it will be a composite and fully automated paint company in the country. In every aspect Romana will try to keep evidence of the best brand value and give people the best.

2.14. Management practices in Sagar Chemical and Romana paint Industry ltd.

The visionary leaders, M.A. Quddus and A.K. Forhad, have made the Romana Paint flourish with all its glory. There is no doubt that they are good businessman. But with the change of time and they needed to change, which they did but this change was not effective as they do not have the educational back ground to support their decision. This drawback of these two leaders gets quite clear when I look at the management team of the company. There is lots of lacking in this team. Sagar Chemical and paint Industry ltd. is a big organization; to support its operation it is important for the company has a strong management but unfortunately these leaders do not understand its importance.

As a leading paint provider, Sagar Chemical and paint Industry Ltd. is one of the Ill-known organizations in Bangladesh. The brand product Romana paint rules the local market. But the company has a Luck management team to support its operation. The company does not have proper departmentalization. The account department and the IT sector were mixed up.

Production and marketing department was also mixed up somewhere. The production people and labors Ire reporting to the General Manager of marketing and sales. These kinds of lacking effect the managerial operation badly.

2.15. Products Offered by Sagar Chemical and paint Industry ltd. in the Brand of Romana Paint.

An organization can be judged by what type and how many kinds of product they are offering to its customers. Sagar Chemical and paint Industry ltd. offers huge product line under the brand Romana. This is a big competitive advantage for Romana as no other local company has such big product line. Romana has paint for walls (inside and out side), wood, metal, cars, and water vehicles etc. this is a good indication that in future Sagar Chemical and paint Industry ltd. can face the competitive challenge in the market by these huge product line. For different segment they have different brand name.

Romana gold is a high quality, durable & strong paint. It’s a strong & durable paint, which is used, on wood, metal, concrete & wall.

Doculux paint is quick drying, hard & tough in nature. This is a suitable refinish for refrigerators, fans, automobiles, wooden and metallic furniture etc.
Sanco paint is quick drying, hard & tough in nature. This is a suitable refinish for refrigerators, fans, automobiles, wooden and metallic furniture etc.

Sagar Chemical and paint Industry ltd. is offering Romana Brand’s Synthetic Enamel Paint, Synthetic Paste Distemper, Plastic Emulsion Paint, Romocem, Aluminum Paint, Wall Sealer (Oil Base), Hammer Finished paint, Synthetic Clear Varnish, Red Oxide Primer, Marine red Oxide Primer, Staving Enamel, Lather Coat, Wood Varnish, etc.

In the category of Romana Rainbow, they have Synthetic Enamel paint, Enamel (Chinese Lacquer).

Under Romana Doculux, which is car paint, they have Doculux Super, Doculux, Sunco, Doculux supper (Depilate) etc.

Under Romana Gold they have Synthetic Enamel Paint-Gold, Hammer Gold, and Aluminum-Gold etc.

Under Romana Copal Varnish they have Sun Flour Copal Varnish (G) and Sun Flour Copal Varnish

Under Romana (Chines Lacquer) they have Enamel (Chines Lacquer).

Romana Acrylic plastic Emulsion paint:

Plastic Emulsion paint is based on acrylic emulsion which is suitable for interior. This paints silky finish makes a smooth film in the surface / wall which is giving a tremendous environment in your home. It is washable paint, that’s why one can easily wash it by soap & water. Romana plastic emulsion paint is a really an excellent paint which keep your wall clean, pollution free and no-doubt authentic. This matt finish acrylic emulsion paints are available in different shade.

Surface Preparation:
The surface preparation is like as S.P.D wall be clean dust free and the damage or discolored paint should be scrubbing / Rub with iron brash. All sorts of trouble, whole, crack should be removing before use this paint. Because of smoothness of the wall .After cleaning the entire thing wall should wash with water. After that wall should dry before paints application. Of course to get the better result you should use Romana wall sealer & Romana wall putty.

S.P.D- Synthetic Paste Distemper

Romana Synthetic Paste distemper (S.P.D)is the most economy Paint. It can be used interior and exterior both. If it is use in skill hand it can give a satisfactory result. Romana S.P.D applicable in new and old wall / surface without application of sealer. To get the better result and long time effect, it will be better to use Romana wall sealer and wall putty for excellent finish.
Surface Preparation:
Wall should be clean before its application. If the wall is new, apply serej paper on iron brash to make its surface dust free. To delete the small hole use wall putty make the surface smooth finish

Romocem Cement paint:

* Do not over thin Romocem to Avoid bed effects
* Romocem should not use during rain or frost.
* Close the container tightly Immediate after every use.
Romana super Silk:

It’s most prestigious and latest technology paint. Super silk prepared by a special formula, it has elasticity, more resistance and extra beauty. Super silk mostly interior paint and its silky finish, smoothness and extra lighting power gives a special effect. This latest paint made by 100% acrylic emulsion and protects any sorts of fungus acidity, carbonation and weather registrant power.
Surface Preparation:
Before application of super silk wall / surface should be dry and dust free. In any sorts of damage oily things, crack, are should be delete and make the surface smooth and flat. If the wall / surface is old, all the fungus, inflate crack should be delete by iron brush. To prepare the all thing of the surface / wall then use Romana wall sealer and Romana Wall putty for excellent surface preparation.
General Advice:
After application of paint all the material should be clean with fresh water.
Romana Weather Registrant Paint:

The invention of modern technology Romana weather Registrant paint is the modernist and highest quality paint for exterior wall. Because in this paint better raw materials and modern technology has involved.
Which is fully able to fulfill the scientific minded people demand? Overall it’s specially examined in respect of Bangladesh weather.
Romana weather Resistant paint will give you perfectly & carefully best protection to your house form the unfavorable climate. The paint has those ingredients, which can make a powerful particle on wall to protect strongly form the fungus. Saltiness, flecking and carbonation. As a result the paint can not damage before time, no lost it’s brightness easily, don’t be fade and exterior wall looks bright like new for year and after year. Romana weather Resistant paint proved it that it’s the most effective & specialist exterior paint that suits the weather of Bangladesh.
General Advice:
It is better to use rather mixed paint. After completion of works clean well the instrument by water.
Romana Alcalic Resisting Primer Sillier:

Direction: Plastron Alkali resisting wall sealer is formulated with oleo resinous binder and selected pigments. The film when in contact with moisture and water

hardens it self, and thus hinders further penetration of moisture keeping the top coat in good condition it has excellent alkali resisting properties to check efflorescence saltpeter or lime bloom which is commonly encountered on cement plastered walls.

Romana Eproxy Paint:

INDUSTRIAL PAINT

Roman industrial and protective coating two pack epoxy paint are made from best quality selected raw materials to protect industrial substrates from adverse environmental and to toxic conditions as in chemical plants, fertilizer power stations etc. As the ultimate performance the [paint coatings depend on the degree of surface preparation top most priority has to be accorded to adequate preparation of the surface to be painted.
Romana Aluminum Paint:

Description:
Romana Aluminum paint is ideal for the silver finishing of all tanks. Refineries street tower, electric posts, Chimneys, Windows Grills, Bus and Rail, Cars, Roofs and tin Shades etc. it is Durable and Rust Preventive. Supplied in duel Containers to be mixed to gather just before application.
2.16. Distributing the Products

All the production efforts will be useless if those products cannot be distributed so the customers can get easy access to buy their products. Sagar Chemical and paint Industry ltd. is Ill aware of this fact, so they are very careful in distributing their products as per the demand. The ability to do this is proved to be a very important advantage on the part of Romana Paint. As usually the Paint companies are having a real hard time in distributing the products to the retailers incurring big cost for any company.

I can say the main reason for Romana to lead the market is that they won their own distribution channel. They have 3750 outlets around the country.
Among them 2800 outlets are out side the Dhaka city. No other paint company has such a big their own distribution channel. This is obviously a great advantage, as usually the Paint companies have to pay a huge amount of commission to the retailers, which is a big cost for any company. Romana do not need to spend that much on commission. They do have retailers to support their business.

As they have good distribution channel outside the city, they have come up with the product suitable for that market. They have Romana Gold especially for the suburban or rural market. In the year 2000 Barger came up with their product for the suburban market but they could not be successful out side Dhaka. These outlets do a great job for not only earning them revenue but also compete with the other companies. The biggest share of their revenue comes from outside the Dhaka city. And the reason behind this is that they have 2800 outlets out side the city.

They have outlets many remote places where other paint shop does not even exist. Romana took this advantage for farther growth. They do not have any agents; they directly supply their products to the retailers.

2.17. SWOT Analysis of Romana Paints

2.17. I. STRENGHTS:

 Among all the established chemical companies of Bangladesh Sagar Chemical and Paint Industry Ltd. is the one of the oldest Industry.
Being one of the oldest has its own advantage and Sagar chemical has used their advantage to grow fast. The founders have a very good knowledge about the whole industry. When they started the company there was a few companies in the industry to compete with. As they are in the market from quite beginning they are very Ill known in the industry. As they did not need to compete with many companies they had much less obstacle in their way to grow. With their Ill-planned distribution channel they soon started to explore the market out side Dhaka city. There Ire places where Romana (Brand name of Sagar Chemicals) was the first paint in the market. With all these plus point Sagar chemicals was soon able to lead the lead the market. This gave Romana a great competitive advantage.

 Romana Paint holds the first position in the market among the domestic paints and second among both foreign and domestic paint companies

Among the domestic paints Romana leads the market. They have the largest market share in the industry among all the local paints. In the whole industry where company has to compete both with local and foreign companies Romana holds the second position. The Indian company Berger is the only company that has more market share then Romana has. Romana occupies around 30% of the market where Berger has around 55% and other foreign and local occupies the rest of the market.

 The visionary leaders are assets for the company

End of year 1983 Mohammad Abdul Quddus and Abul Kalam Forhad started the industry with a dream to grow.. They started with an office room of 1200 square feet and a small factory floor at Malibagh Bazar. With vision of these leaders Sagar Chemicals soon was very successful in the industry. The strategies like focusing on the target market segment, going for backward linkage, better promotional strategies etc. was the fruit of the these visionary leaders planning. In 25 years of time the company owned around taka 10 million of property. These visionary leaders made it possible for Romana Paint to lead the local market.

 Under the brand Romana Sugar chemicals has huge product line, which no other local paint industry has

Sagar chemical offers huge product line under the brand Romana. This is a big competitive advantage for Romana as no other local company has such big product line. Romana has paint for walls (inside and out side), wood, metal, cars, water vehicles etc. For different segment they have different brand name.

o Under Romana they have Synthetic Enamel Paint, Synthetic Paste Distemper, Plastic Emulsion Paint, Romocem, Aluminum Paint, Wall Sealer (Oil Base), Hammer Finished paint, Synthetic Clear Varnish, Red Oxide Primer, Marine red Oxide Primer, Staving Enamel, Whether Coat, Wood Varnish, etc.

o Under Romana Rainbow, they have Synthetic Enamel paint, Enamel (Chines Lacquer).

o Under Romana Doculux, which is car paint, they have Doculux Super, Doculux, Sunco, Doculux supper (Depilate) etc.
o Under Romana Gold they have Synthetic Enamel Paint-Gold, Hammer Gold, and Aluminum-Gold etc.
o Under Romana Copal Varnish they have Sun Flour Copal Varnish (G) and Sun Flour Copal Varnish
o Under Romana (Chines Lacquer) they have Enamel (Chines Lacquer).

All the paints are found indifferent quantity’s containers. They have containers having range of .4 to 1 litter. For bulk use they have 18.25 litters (Glen) and 20 litters (Drum).

 One of Romana’s biggest advantages is that they posses their own distribution channel

On of the reasons for Romana leading the market is that they won their own distribution channel. They have 3750 outlets around the country. Among them 2800 outlets are out side the Dhaka city. No other paint company has such a big their own distribution channel. This is obviously a great advantage, as usually the Paint companies have to pay a huge amount of commission to the retailers, which is a big cost for any company. Romana do not need to spend that much on commission. They do have retailers to support their business.

The biggest share of their revenue comes from outside the Dhaka city. And the reason behind this is that they have 2800 outlets out side the city. They have outlets many remote places where other paint shop does not even exist. Romana took this advantage for farther growth. As they have good distribution channel outside the city, they have come up with the product suitable for that market. They have Romana Gold especially for the suburban or rural market. In the year 2000 Berger came up with their product for the suburban market but they could not be successful out side Dhaka. These outlets do a great job for not only earning they revenue but also compete with the other companies.

 Sagar Chemicals has a Resin Plant as a backward linkage of Romana Paint, which is a big advantage for the company

One of the important ingredients for paint production is Resin, which is produced by The Sagar Chemicals. One of the major products is Enamel Paint among the products that Romana produces and 60% of the raw material for Enamel is Resin. As they produce one of the element its saves a lot of money for the company. These kinds of backward linkage always play a positive role in the production. This is a strategy to be more cost effective in the market.

As I all know the company which can offer products in a lots price will be able to lead the market. Quality matters but as Romana’s main target market is lots middle class consumers where money matters the most, it is very important that they offers the lost price in the market. For this reason this backward linkage is a great help for the company.

 Sagar Chemicals produces its own containers for Romana Paint

To be more cost effective Sagar Chemicals has taken some of the strategies that have helped them to be more cost effective and more successful as a manufacturing company. Among the strategies making their own containers is worth mentioning. One of the brother industries is Sharp metal Industry. This industry makes containers for Romana.

As mentioned earlier Romana offers many verities of quantities to its customer according to their need, this industry is very helpful for Romana. The Sharp metal makes both plastic and metal containers for the company.

 Romana Gold is success story for the company

One of Romana’s recent successes is Romana Gold. This particular brand was introduced in suburban market. Under Romana Gold they have Synthetic Enamel Paint-Gold, Hammer Gold, and Aluminum-Gold etc. These products are not as good as Romana Synthetic Enamel in quality wise but and they are also cheap in price. This particular segment of their products hit the market right away. With their Ill build distribution channels they made these products available to every corner of the country. This brand was very popular among the lots middle class market. The market leader Berger also tried to capture the suburban market by introducing new produce but failed to compete with Romana. This success of Romana made it very clear that to compete with Romana outside Dhaka is quite hard. Some local company is there as the competitors.

 Promotional activities are another strength for the Romana

The top management of Romana has done a great job in promoting the brand. Everywhere in the country is familiar with the brand name and image. They Ire successful in building up the image by being very focused to their target customers and the market segment. As their main target market is the suburban market, they did not go for much sophisticated TV advertisements rather they Inter for more colorful funny adds which would attract the target audience. That is why I see the famous clown singing “Dekho Dekho Romanar Bahar” to attract the suburban or rural customers and the famous film actress Muoshumi coming in dream of the carpenter. These kinds of Ill designed add was very successful in promoting the brand Romana.
They also had TV advertisements for their better quality produces, which was bit expensive and was made considering the urban areas.

Romana does other activities for their brand, for example they sponsor different events, they sponsors for housing fairs and so on. These kinds of activities made their brand very Ill known and this definitely strength for the company.

 In order to gain more share Sagar Chemicals has bind themselves with some famous construction companies

To gain more share Sagar Chemicals has bind themselves with some famous construction companies. The construction firms like Pran Groups, Rangs, Hamid Real Estate, and Building for Future etc. uses Romana for their different projects. Recently they made contract with a government firm named Bangladesh Machine Tools. These kinds of contracts had made Romana to achieve more market shares.

 Soon Romana Paint is going to get the certificate of ISO 2000
Very few company of the Bangladesh is certified by ISO 2000. Romana Paint is soon going to get this certificate. 90% of the paper work has been done in this regard. By the year 2007 they are going to get the certificate. This is in deed an honor for the company. The reputation of the company will have a better stand in the market after they would get the certificate.

 Romana Paint offers its customers with sufficient amount of warranty
Sagar Chemicals is one of the oldest paint industries in the paint industry. They have taken lots of steps to survive and to lead the marker. They have always put their customers above all and made their strategies accordingly. To achieve more customer satisfaction Romana offers warranty of 2 years period. These kinds of strategy taken by the company have created customer’s satisfaction as Ill as customer’s loyalty for the company.

 Another big advantage of Romana is that to they have their own warehouses to support the company

Paint industry is more or less a seasonal business. As the Lather is not dry all the time in Bangladesh, the paint industries have to stock their products. To support the demand for paint in the dry season Romana also has to do the stock their products. To support this Romana has huge warehouse of 4000 square feet at Malibagh Bazar where both the row materials and finished products are kept. Not only that they have 9 big warehouses to outside Dhaka to support their smooth production.

 The company encourages participative management throughout the organization

Romana paint is the market leader of the paint industry. This company occupies almost 30% of the market share. One of eth advantage of the management of Romana Paint is that they encourage their employees to share their thoughts and recommendation of any kinds. The mid-level management has the Open Door Policy, where the General Manager and Assistant General Managers Income the low-level employees to come to them regarding any problem. This kind of participative management helps the management to work effectively and efficiently. This is definitely an advantage for Romana paint.

 Romana paint communicates with its all the sales executives through regular monthly meeting

Sagar Chemicals is one of the Ill-known organizations in Bangladesh. The brand product Romana paint rules the local market thought its effective business plan.

The factory of Romana is located in Dhaka city but the Romana Paint occupies a huge share out side Dhaka city. They won their won distribution channel.

There are 3750 outlets around the country. Among them 2800 outlets are outside Dhaka. To have an effective communication the company arrange monthly meeting at the company’s head office of Malibagh. This meeting is attained by the Managing Director, M.A. Quddus, the Deputy Managing Director A.K. Forhad, the General Manger (Marketing and sales) and all the sales representatives around the country. In these meetings they discuses the sale figures and market shares. Problem regarding any sale or distribution is also discussed in these meetings. This effective communication helps the top-level management to have about the company’s current standing an also helps them to be more effective.
2.17. II. WEAKNESS:

 One of the biggest Weakness of Sagar Chemicals was the environment of the factory side

Sagar Chemical’s main segment Romana Paint’s chemical factory is located in Malibagh Bazar. The factory is big enough to support the production but the site of the factory is not at all pleasant. There are some faults in this production plant.
The first of all the location is not appropriate as Malibagh Bazar is not a good place for factories as this is not an industrial area. The entrance of the factory is not good for smooth transportation.

In side the factory the environment is harmful for the workers. There is no proper ventilation of airflow. As a result the polluted air of the production does not go out the factory floor easily. The atmosphere is much suffocated. The toxic chemicals and smooth dust like particles gets into the worker’s lungs through breathing which may cause any kind of lungs diseases to the workers. It seems like quite impossible for any workers to work in such environment continuously.

It is quite clear that the management does not paying enough attention in keeping the factory clean. This is a chemical factory, is suppose to clean as any time any accident can happen. And usually the any accident in chemical factory is worse then any other accident. It can cause huge damage for the company as Ill as for the workers. Romana Paint cleans the factory only twice a year, which is not at all sufficient for the company.
Romana Paint does not have enough safety measure inside the factory. In the huge of 6000 square feet factory there is only three fire extinguishers. Not only that I found out that all of the workers don’t even know how to use these.
These factors made the factory side very non-pleasant and harmful for the workers. Manufacturing plants cannot effort to be that dirty and should not have such poisonous environment.

 The company was not treating its chemical waste properly

Another Iaknesses for the company is that Romana Paint does not treat its chemical waste properly. As it is a paint company, the by products and the wastes are quite toxic. It is very important for such kind of company to tear its chemical waste properly. For environmental reason and safety of the workers the company should under take wastage treatment seriously, which the management of Romana paints is not taking. This is a big Iaknesses for the company and its image.

 Lack of administrative knowledge of the leaders was the result of a Lack the management team

M.A. Quddus and A.K. Forhad is the visionary leaders who have made the Romana Paint flourish with all its glory. There is no doubt that they are good businessman. But with the change of time and they needed to change, which they did but this change was not effective as they do not have the educational back ground to support their decision. This drawback of these two leaders gets quite clear when I look at the management team of the company. There is lots of lacking in this team.
Sagar Chemical is a big organization; to support its operation it is important for the company has a strong management but unfortunately these leaders do not understand its importance.

 The management of the company lacked proper departmentalization, which was creating problems for the company

Sagar Chemicals is one of the Ill-known organizations in Bangladesh. The brand product Romana paint rules the local market. But the company has an Lack management team to support its operation. The company does not have proper departmentalization. For example, the account department and the IT sector was mixed up. Production and marketing department was also mixed up somewhere. The production people and labors Ire reporting to the General Manager of marketing and sales. These kinds of lacking effect the managerial operation badly. If this mismanagement continues the company will suffer a lot in near future.

 Romana Paint failed to accurately forecast demand of raw materials required for production

When I visited the company the production was stopped because of shortage of raw materials. In any manufacturing company forecast for demand is a crucial part. The company has to go through some relative studies like the trend analysis, marker demand and so on.

Romana being a market leader they are not doing a great job in forecasting the future demand. This is reflected in the Romana Paint quite clearly and this is not definitely good for the company. As they are failing to forecast the demand properly they are facing lost of loses. The machines are kept idle, the still paying for he workers and the utility bills and so on. This kinds of loses are not desirable for the company.

 The company did not provide any kind of training for the employees
Among the domestic paints Romana leads the market. They have the largest market share in the industry among all the local paints. But very unfortunately I see that Romana Paint is not providing enough training facility for the employees. Without the training program, it is very difficult for the new employees find out the direction in which way to work. Skilled people can only perform the outstanding performance, or else the company will not be able to successes in the industry. And to build up a skilled work force they should provide the employees with proper tainting which is not found in the organization
The absence of training and development program may cause huge lose in the profit and reputation for Romana Paint because the employees are not Ill trained and Ill informed about their jobs and how to do their job properly.

 There Ire some products of Romana which Ire generating loss in the market

One of the Iaknesses Romana Paint is that they Ire facing some loses in some of their products. In spite of being the market leaders they Ire not generating same amount revenue form all the segment. There are some products, which was not bringing profit for the company. Let along they Ire drawback for the company. Roman was just producing these products just to hold up with the market. These products Ire the Distempers and Hammer paint. This was definitely a drawback for the market.

 Higher degree of dissatisfactions present among the both managerial employees and factory workers, which might lead to layoff

In Romana I found tat there is higher degree of dissatisfaction among the employees. Current compensation package is not effective enough to motivate the employees at Romana Paint. As a result, Romana Paint cannot pull down the high turnover rate.

Without a total compensation package, the employees will not feel motivate to provide huge effort to achieve the corporation’s goals and objectives.
Not only for the compensation but also for the factory environment also led to dissatisfaction. In side the factory the environment is harmful for the workers. There is no proper ventilation of airflow. This was not at all desire for the employees and that was also causing layoffs.

2.17. III. OPPORTUNITIES:

Romana Paint can support its business by expanding in backward linkage

By backward linkage I understand the production of the secondary products, which supports the main product. Foe example, in garment sectors the textile would be the backward linkage. This backward linkage is very helpful for any manufacturing plant. This helps the production to be more cost effective. This is plus point for any company. Romana Paint also has backward linkage. To support their production they have Resin factory, which is used to produce enamel paints. They also have container factory. They can use this strategy further more to support their business. They can plan plants to produce raw materials, which can be used in the production of paint. This can be a huge opportunity for the company as they already producing other raw material (Resin), it would be an easy task for them to expand their business in this way and be cost effective.
Romana Paint can go for farther market expansion by going into foreign market

Roman paint is a success story for Bangladesh. In only about 25 years of time they have become the market leader. The have applying proper market strategy to expand and face all kind of competition. In present situation the Romana Paint occupies about 30% of the market share in Bangladesh. Now they are in a position to expand globally. They can expand their business places like Tripura, Asia, Nepal etc. recently the government of Bangladesh is trying to help the domestic business to enter the foreign market. There are different SAARC agreements, which can be helpful in this regard. Romana can take thee opportunity and expand their business across the country.
Romana can create an attractive customer service by adopting new technology like Color bank

Romana can take different strategies to attract more customers in the urban market. It is the urban market where the company is facing the competition. The foreign paint companies are coming up with different program to gain more market share.
Romana can gain more market share by adopting new technology available in the market. In this regards Color band can an opportunity for Romana Paint.
To introduce color bank they wound not be need huge investment but through this they can surely be able to gain more market share.
As Romana is already producing raw material to support its production, they can easily market the excess raw material and earn some profit
Among the domestic paints Romana leads the market. They have the largest market share in the industry among all the local paints. Among the strategies they took in order to cost effective the backward linkage is the effective one. One of the important ingredients for paint production is Resin, which is produced by The Sagar Chemicals.

One of the major products is Enamel Paint among the products that Romana produces and 60% of the raw material for Enamel is Resin. There is other factories sin the industries that produce enamel paint. Romana can easily sale their Resin after meeting the internal need and earn some profit. Romana also imports most of raw materials for out side the country directly. In this case they again can sale the raw martial to other paint companies as the domestic and foreign companies do buy these raw materials form the market. These can an opportunity for Romana to make some profit.

As the apartment business is popping up Romana can use this as an opportunity to gain more market share

Our county is going through urbanization, the cities are expanding, and lots of new apartments are rising day by day. Apartment business is really flourishing now a day. In past year this business has grown up to 20%. Romana can easily use this fact as opportunity. They can bind themselves with different constructing firm and gain more market share. More new houses would need more paint so the market for paint industry is going to grow. This would be a great opportunity for Romana to grow more.

2.17. IV. THREATS:

 Government regulations, tax policies are great threats for the company
Romana paint is one of the largest paint industries in Bangladesh. This is the leader of the domestic companies. They are in a quite stable position financially. But still they are not all safe. The external factors can easily effete the company in a large way. In Bangladesh the government regulation is quite unstable.

As the government changes the rules and regulation also changes. This is big problem of any company and so for Romana Paint. These changes directly affect the cost of the products. This is a threat for the company as they there are also foreign companies so compete with them can be hard for the domestic companies. These changes are threat for the company.

 With the rise in dollar price the price of the raw material also changes, this can be threat for the company

At present the economy of Bangladesh is in a very much unstable state. The value of Taka is declining day by day. As a result the price of the dollar is also increasing. For a paint production company like Romana it is huge risk. I already have discussed that most of the raw material for paint production is imported form foreign country. And all the financial transactions are done in terms of dollar so prices increase in dollar results increase in the price of raw material. So rise in dollar is big threat for Romana as this will effect directly on the price of the products. If other paint company has greater raw material inventory then they will be able to defeat Romana easily. That is way it is a huge threat for the company.

 Paint companies like Berger, Asian paints are biggest threat for the company

Competitions are always threat for any company. This become fiercer when the names like Berger, Asian Paints come to the market. In a globalize world like today it is becoming very hard foe any company to compete with foreign company. Romana is also facing this problem as Indian companies are entering in the industry. Both Berger and Asian paint are very Ill known company; they came in Bangladesh with plan of huge investment. They have all the latest technology, new strategies, and better promotional activities and so on, which is giving better competitive advantages. And Romana is facing more problems in competing with companies like them. That is why I can say that these competitors are the biggest threat for the company.

 Unstable political condition is another threat for the company

There is no doubt that to do business in Bangladesh is not at all an easy task, there are so many problems have to be faced by the companies. Among the problems the political condition is worth mentioning. These unfriendly political situations always are threat for any organization and so for Romana Paint. The unstable political condition causes curfew, strike and so on, which effect the production in a huge way. I have already found that most of the raw materials for the company are imported from foreign counties and they come through sheep. Most of the raw materials for Romana come through Chittagong port. So when there is any strike in Dhaka or Chittagong the transportation of the raw material is hampered and the production is directly affected. This is a big threat for the company as if for any reason the production is stopped then the company will not be able to be cost effective.

 The deregulations in Chittagong port can pose significant threat for Romana

As I have already mentioned that most of the raw materials for the company are imported from foreign counties and they come through sheep. Most of the raw materials for Romana come through Chittagong port. So any deregulation in the port again create problem in the production. If the raw material gets stuck in the port for longer time it will definitely affect the production flow directly. That is why deregulations in Chittagong port are another threat for the company.

 Environmental Audit could be a matter of concern for the Romana, as they are not treating the chemical waste properly

Romana Paint does not treat its chemical waste properly. As it is a paint company, the wastes are quite toxic. It is very important for such kind of company to tear its chemical waste properly. But Romana Paint is not doing their job in this field.

This can be threat for the company, as if the environmental audit fins out this fact they will directly file case against the company. Now a day government of Bangladesh is being very careful. There are specific punishments for the companies that are not treating their chemical waste properly. This is way these environmental audits are threat for the company. If for once Romana Paint’s this flaw comes in public they will simply lose the reputation in the industry.

Chapter Three
3.0. Literature Review:
3.1. Marketing:
Marketing deals with identifying and meeting human and social needs. One of the shortest definitions of marketing is meeting needs profitably. When eBay recognized that people where unable to located some of the items they desired most and created an online auction clearinghouse they demonstrated marketing savvy and turned a private or social need into a profitable business operation.

3.2. Marketing Management:
Marketing Management as the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

3.3. . Marketing Mix:
These are vital input for designing marketing package for interested product categories. Areas are product, price, promotion, and place.

Product: The report findings answer many queries that are valuable for the product. The information coverage areas are:

Market share of different companies.
Sales quality.
Perception about quality.

Price: Information coverage on price is as flows,
Wholesaler as well as retail price of different brand product.
Consumer opinion about price.

Promotion: Following is some finding in the report that has linkage with the promotion of the product and company.

Trade promotion activities prevailing in the market.
Consumer promotion offered by the company.
Promotional materials provided by the company.
Place: Information coverage that relates to the distribution in the market is:

Distribution channel of Romana Paints.

3.4. The Promotional Mix: The Tools for IMC:

Promotion has been defined as the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. While implicit communication occurs through the various elements of the marketing mix, most of an organization’s communications with the marketplace take place as part of a carefully planned and controlled promotional program. The basic tools used to accomplish an organization’s communication objectives are after referred to the promotional mix.

The Promotional Mix

Traditionally the promotional mix has included four elements: they are: Advertising, Sales Promotion, Publicity/ Public Relations, and Personal Selling. However in this text we view direct marketing as well as interactive media as major target markets. Each elements of the promotional mix is viewed as an integrated marketing communication tools that plays a distinctive role in an IMC program. Each many take on a variety of forms. And each has certain advantages.

3.5. Brand:
The American Marketing Association define a brand as “a name, term, sign, symbol, design, or combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them form those of competitors.”

3.6. Brand Equity:

Brand Equity is the added value endowed to product and services. This value may be reflected in how consumer think feel and act with respect to the brand. As well as the prices market share and profitability, that the brand commends for the firm. Marketers and researchers use various perspectives to study brand equity. Consumer based approaches view brand equity from the perspective of the consumer either an individual or an organization. The premise of costumers based brand equity models is that the power of a brand lies in what customers have seen read, heard, learned, thought, and felt about the brand over time. In other words, the power of a brand lies in the minds of existing or potential customers and what they have experienced directly and indirectly about the brand.

3.7. Customers Based Brand Equity:

Customer based brand equity can be defined as the differential effect that brand knowledge has on consumer response to the marketing of that brand. A brand is said to have positive customer based brand equity when consumers react more favorably to a product and the way it is marketed when the brand is identified as compared to when it is not. A brand is said to have negative customers based brand equity if consumers react less favorably to marketing activity for the brand under the same circumstances. There are three key ingredients to this definition. First, brand equity arises form differences in consumer response. If no differences occur, then the brand name product can essentially be classified as a commodity or generic version of the product. Competition would then probably be based on price.

3.8. Brand building block:

The brand resonance model also views brand building as an ascending sequential series of steps, from bottom to top: 1. Ensuring identification of the brand with customers and an association of the brand in customers minds with a specific product class ar customer need, 2.firmly establishing the totality of brand meaning in the minds of customers by strategically linking a host of tangible and intangible brand associations, 3.eliciting the proper customer responses in terms of brand related judgment and feelings, and 4. Converting brand response to create an intense, active loyalty relationship between customers and the brand .

The creation of significant brand equity involves reaching the top or pinnacle of the brand pyramid, and will occur only if the right building blocks are put into place:

• Brand salience relates to how often and easily the brand is evoked under various purchase or consumption situations.
• Brand performance relates to how the product or service meets customers functional needs.
• Brand imagery deals with the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customer’s psychological or social needs.
• Brand judgments focus on customers own personal opinions and evaluations.
• Brand feelings are customer’s emotional responses and reactions with respect to the brand.
• Brand resonance refers to the nature of the relationship that customers have with the brand and the extent to which customers feel that they are “in sync” with the brand.

Resonance

Judgments Feelings

Performance Imagery

Salience

Resonance is characterized in terms of the intensity or depth of the psychological bond customers have with the brand, as well as the level of activity engendered by this loyalty.
3.9. Company’s prices and costs competitiveness
Consumer products illustrate the need to price paint on perceived value, not on transport. Most consumer products are value-priced—the weight of the product plays only a small role in determining the final price for some products. And certainly weight does not play a factor in most consumer decisions. The most important factor is the value that consumers see or believe that the product will have for them.
Paint Companies who are able to charge for the value of content and services, not just the bytes (raw materials) used to create services can meet the buying criteria for the consumer. Paints providers that are able to deliver the best convenience and value and create the most efficient value chains will attract the best content providers and the most loyal and profitable customers. To do this, they must be able to capture full value for services, experiment with new services, and optimize their margin mix. In this regard we can say that Romana Paint Co. has been able to provide high-quality of paint at affordable prices. If we compare the prices and costs of other paint company in Bangladesh, then in that case Romana Paint Company is certainly at an advantageous position and has the upper hand in the industry. They have a strong network of distributors, dealers who charge reasonable amount and they have their retail outlets, which gives them, added cost advantage. How ever Romana Paint Co. overhead cost is more than the rival operators.

Strategic Cost Analysis and Value Chain:

3.10. Analysis by the Michael Porter’s 5 Forces:

Literal Overview of Michael Porter’s 5 forces analysis

Fig: Michael Porter’s 5 forces analysis
The Five Forces model of Porter is an outside-in business unit strategy tool that is used to make an analysis of the attractiveness (value…) of an industry structure. The Competitive Forces analysis is made by the identification of 5 fundamental competitive forces:
1) The entry of competitors (how easy or difficult is it for new entrants to start to compete, which barriers do exist)

2) The threat of substitutes (how easy can our product or service be substituted, especially cheaper)

3) The bargaining power of buyers (how strong is the position of buyers, can they work together to order large volumes)

4) The bargaining power of suppliers (how strong is the position of sellers, are there many or only few potential suppliers, is there a monopoly)

5) The rivalry among the existing players (is there a strong competition between the existing players, is one player very dominant or all equal in strength/size)o as a sixth factor could be added: government.

Porter’s competitive force model is probably one of the most often used business strategy tools and has proven its usefulness on numerous occasions. Porter’s model is particularly strong in thinking outside-in. Care should therefore be taken not to underestimate or underemphasize the importance of the (existing) strengths of the organization (inside-out) when applying this five competitive forces framework of Porter.
The model of pure competition implies that risk-adjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure.
Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates.
Chapter Four

4.0. Working Part:

4.1. Introduction:

Riding on success in real estate sector, Bangladesh’s paint industry is witnessing enormous growth. An official of Rehab (Real Estate and Housing Association of Bangladesh) said the paint industry is drawing local and foreign investments as the industry sees almost double-digit growth annually. With arrival of Asian Paints, India’s largest paint manufacturer, Bangladesh has now become almost self-sufficient in paint. Officials of Asian Paints said annual demand growth at 7 percent prompts the company to make foray into Bangladesh market.

4.2. Nature of Work:
Paint Industry in Bangladesh
“Use of paint for both interior and exterior decoration is rising, giving a boost to the paint industry,” said Ziaul Ahsan, executive committee member of Rehab. Rehab sources said around 5,000-7,000 apartment units and 4,000-6,000 plots are handed over to buyers a year. Developers have so far handed over 70,000-80,000 apartment units to buyers in the last 20 years.

With arrival of Asian Paints, India’s largest paint manufacturer, Bangladesh has now become almost self-sufficient in paint. Officials of Asian Paints said annual demand growth at 7 percent prompts the company to make foray into Bangladesh market.
Asian Paints formed a joint venture with local company Confidence Cement in 2002 to set up a hi-tech plant at Gazipur with a capacity of 2,500 tones and initial investment of about Tk 15 crore. Right from the beginning, Asian Paints aimed to pound the citadel of Berger Paints Bangladesh Ltd, which has long been dominating Bangladesh market with about 40 percent market share.

RV Raman jam, chief executive officer and director of Asian Paints (Bangladesh) Limited, said the company wants to be number one in Bangladesh. “I will double our capacity within two months and further increase the capacity from time to time as demand is rising due to a booming construction sector here,” he told The Daily Star.
The fierce rivalry with the Indian giant forced UK-based Berger Paints to hone its marketing strategy by introducing Color bank, offering over 5,000 shades. BB Saha Roy of Berger Paints said competition is stiff as many companies have gone for capacity expansion. “Now, paint companies are going through a difficult phase due to 15 percent duty hike on titanium and dioxide, main raw materials, and a price war among companies,” he said. He said paint industry has immense growth potential as paint consumption is rising due to real estate boom. “What government should do is to reduce duty on raw materials, 100 percent of which come from foreign sources,” he said. Some 38 small and medium size companies are engaged in paint production in Bangladesh. The total Bangladesh paint market is estimated to be over 50,000 tones valued at around Tk 450 crore. Per capita paint consumption is around 250gm.

A high official of a leading paint company said low per capita consumption of paints; vast potential to upgrade the market, limited product range; increasing urbanization and consistent GDP growth of around 5-6 percent have made Bangladesh paint industry a promising area for investment. With rising demand, other local players such as Elite, Romana, Roxy, Al Karim and Aqua Paints, are also devising their marketing strategies to increase market share by introducing new products and promotional offers, industry sources said.

4.3. Romana’s Performance in This Industry

Romana has assets worth of TK 10 Billion. If I look at the reports on the industry, I might think that, Romana is doing really Ill because of the demand in this industry. But it not true. It true that, because of the increase in building under construction and raising in the real estate business the paint companies are having better chance to make profit.

Romana is unfortunate in taking this advantage. The reason is that, most of the real estate companies are making the buildings in a commercial purpose. Their intention is to somehow complete the building and handover it to its buyer. So, the developing companies are not looking for the quality products. As a result they are buying the cheapest price product available in the market.

Problem for quality oriented companies like Romana paint arises from there. Romana is charging high price compared to its competitors. As a result, most of the real estate companies are not taking or buying paints for them. But some of the companies giving buyers a quality product are buying products from Romana paint. Among the domestic paints Romana leads the market.

Romana have the largest market share in the industry among all the local paints. In the whole industry where company has to compete both with local and foreign companies Romana holds the second position. Romana’s competitor Indian company Barger is the only company that has more market share then Romana has. Romana occupies around 30% of the market where Barger has around 55% and other foreign and local occupies the rest of the market.

4.4. Romana as a business organization

As a business organization in Bangladesh, Romana’s performance is satisfactory. They are currently following a decentralized way to manage the organization. Although it is a family business the owners are maintaining high co-relation in making the business decisions. Being one of the oldest has its own advantage and Sagar Chemical and paint Industry ltd. has used their advantage to grow fast. The founders have a very good knowledge about the whole industry.

Romana did not start its operation with so many employees and so many paint companies. At that time, there Ire a few companies in the industry to compete with. Since they are in the market from quite beginning, they posses good reputation in the industry. As they did not need to compete with many companies they had much less obstacle in their way to grow. With their Ill-planned distribution channel they soon started to explore the market out side Dhaka city.

There Ire places where Romana (Brand name of Sagar Chemical and paint Industry Ltd.) was the first paint in the market. With all these plus point Sagar Chemical and paint Industry Ltd. was soon able to lead the lead the market. This gave Romana a great competitive advantage.

Mohammad Abdul Quddus and Abul Kalam Forhad started the industry with a dream to grow in the end of year 1983. They started with an office room of 1200 square feet and a small factory floor at Malibagh Bazar. With vision of these leaders Sagar Chemical and paint Industry Ltd. soon was very successful in the industry. The strategies like focusing on the target market segment, going for backward linkage, better promotional strategies etc. was the fruit of the these visionary leaders planning. In 25 years of time the company owned around taka 10 million of property. These visionary leaders made it possible for Romana Paint to lead the local market.

Romana paint is the market leader of the paint industry. This company occupies almost 30% of the market share. One of eth advantage of the management of Romana Paint is that they encourage their employees to share their thoughts and recommendation of any kinds. The mid-level management has the Open Door Policy, where the General Manager and Assistant General Managers Income the low-level employees to come to them regarding any problem. This kind of participative management helps the management to work effectively and efficiently. This is definitely an advantage for Romana paint.

4.5. Efficiency in Production Including Raw materials, Equipments and Warehouse

About 95% of the raw materials that Sagar Chemical and paint Industry ltd. is using for the production of Romana paint are imported from outside his country.

To maintain the quality of production, from the very beginning of the business they are careful about their raw materials. Because they believe that, if the quality of the raw materials is not good, quality of the product is bound to decline.

Equipment for mixing raw materials

Chalk Powder, used as a raw material for producing paint

With such a production-oriented business, Sagar Chemical and paint Industry ltd. have a good set of equipment to facilitate their production. None of those equipments are locally made. All of them are imported from China, Spain and some other countries. Although the equipment price is going up day by day, they do not want to consider the quality of their product. Moreover, increasing the price of the paint products cannot cover this rise in the price of equipment.

Because, some other companies who are using low quality raw materials and low quality equipments, can keep their price low enough to capture the market.
So, rising the price of raw materials and equipment will lead Romana to go out of the market, in other words to loose the customers.

Video Jet Machine excel 2002, it is used to print the level of Romana Paint containers.
Sagar Chemical and paint Industry ltd. have some advantage over their raw materials too. One of the important ingredients for paint production is Resin, which is produced by The Sagar Chemical and paint Industry Ltd. One of the major products is Enamel Paint among the products that Romana produces and 60% of the raw material for Enamel is Resin.

As they produce one of the element its saves a lot of money for the company. These kinds of backward linkage always play a positive role in the production. This is a strategy to be more cost effective in the market. As I all know the company which can offer products in a lots price will be able to lead the market. Quality matters but as Romana’s main target market is lots middle class consumers where money matters the most, it is very important that they offers the lots price in the market. For this reason this backward linkage is a great help for the company.

To be more cost effective Sagar Chemical and paint Industry Ltd. has taken some of the strategies that have helped them to be more cost effective and more successful as a manufacturing company. Among the strategies making their own containers is worth mentioning. One of the brother industries is Sharp metal Industry. This industry makes containers for Romana. As mentioned earlier Romana offers many verities of quantities to its customer according to their need, this industry is very helpful for Romana. The Sharp metal makes both plastic and metal containers for the company.

Paint industry is more or less a seasonal business. As the Lather is not dry all the time in Bangladesh, the paint industries have to stock their products. To support the demand for paint in the dry season Romana also has to do the stock their products. To support this Romana has huge warehouse of 4000 square feet at Malibagh Bazar where both the row materials and finished products are kept. Not only that they have nine big warehouses to outside Dhaka to support their smooth production.

Having their own warehouse can be a very positive side of Romana’s business. But unfortunately their inventory system is totally manual. Lack of automated inventory system is proving their operation ecumenically inefficient. Now they are not feeling the loss of doing it manually. But when they will be expanding their business with more products they will have a hard time in establishing adapting the automated system in their warehouse.

4.6. Working Environment Analysis:
Absence of Hygiene factors

Hygiene factors are needed to ensure an employee does not become dissatisfied. They do not lead to higher level of motivation but without them, there is dissatisfaction. For an organizations business success, proper and healthy working environment is a must.

If the hygiene factors of an organization are absent it is conformed that employees cannot give their 100% to the job.

Employees have to work in this dirty and suffocating condition

Sagar Chemical and paint Industry Ltd. main segment Romana Paint’s chemical factory is located in Malibagh Bazar. The factory is big enough to support the production but the site of the factory is not at all pleasant. There are some faults in this production plant.

First of all, the location of office and factory is not appropriate as Malibagh Bazar is not a good place for factories as this is not an industrial area. The entrance of the factory is not good for smooth transportation. Sometimes, people have to leave the vehicle and walk into the office.

Moreover, inside the factory the environment is harmful for the workers. There is no proper ventilation of airflow. As a result the polluted air of the production does not go out the factory floor easily.

The atmosphere is much suffocated. The toxic Chemical and smooth dust like particles gets into the worker’s lungs through breathing which may cause any kind of lungs diseases to the workers. It seems like quite impossible for any workers to work in such environment continuously.

Furthermore, when I Ire visiting the office and the factory, I feel, that the management does not paying enough attention in keeping the factory clean.

This is a chemical factory, is suppose to clean as any time any accident can happen. And usually the any accident in chemical factory is worse then any other accident.

It can cause huge damage for the company as Ill as for the workers. Romana Paint cleans the factory only twice a year, which is not at all sufficient for the company.

Management of Romana Paint did not set up enough safety measure inside the factory. In the huge of 6000 square feet factory there is only three fire extinguishers. Not only that I found out that all of the workers don’t even know how to use these. These factors made the factory side very non-pleasant and harmful for the workers. Manufacturing plants cannot effort to be that dirty and should not have such poisonous environment.

4.7. Problem Faced of Romana Paints.
4.7. I. Employees Dissatisfaction towards Their Job
It is always true that, if the workers are not satisfied with their job, they cannot give their best to the company. People working at Romana Paint are not satisfied with their compensation package, working environment and safety programs. Romana Paint does not bother to collect information on these issues from the employees. Romana Paint needs to focus on the employees’ demands, needs and requirements, as they are the key for the organizational success.
Management of Romana Paint has to understand that, without the skill and efficient employees it will not be possible for Romana to satisfy their customers. If the organization does not focus on the employees, the employee might feel that Romana Paint is only concern about their business, which can also generate de motivation, performance deficiency, lack of loyalty etc. If Romana Paint tries to identify the job satisfaction level than the employees will feel, the organization is not only conscious about their business but also take care of the employee’s comfort.
Sagar Chemical and paint Industry ltd. does not set any program to identify whether the employees are happy with their jobs or not in Romana paint. They do not get any information on employee satisfaction on working environment, organizational rules and policies and on other aspects.
Day by day, dissatisfaction can be severe among the employees; the employees might not serve the organization by giving their best effort. They might be thinking of switching their job.

Dissatisfied employees will generate lots performance; less organizational attachments etc. this will be seriously counterproductive on the part of Romana Paint.

4.7. II. No Training facilities for the employees.

To face the challenge in the future it is a must to have Ill-trained employees. Although Romana Paint has a mission to expand their business to a large extent, they really do not care about training their employees.

Romana Paint does not provide any kind of training to both its managerial level and blue-collar employees. Romana Paint does not have any training program for their employees to train them how best to perform their duties and responsibilities in the company.
Without the training program, it is very difficult for the new employees find out the direction in which way to work. Development program for the current employees are also absent from Romana Paint. Skilled people can only perform the outstanding performance, or else the company will not be able to successes in the industry. All the cost associated with creating strong production and distribution infrastructure, adopting with the new technology will go down the drain.

Management of Romana Paint has to take it seriously and understand that, technology and machines available in the market but it is the people who make the difference. Training and development program is necessary to construct skilled workforce. Without training facility it is very hard to perform up to the mark in a manufacturing industry.
4.7. III. Poor Compensation Package.

Without proper compensation it is not possible to keep the employees motivated enough to do their job properly. At present, the compensation package is not effective enough to motivate the employees at Romana Paint. This is one of the important reasons why, Romana Paint is facing high turnover rate. Absence of extensive benefit package from compensation package is another reason for the employees to feel de motivated to work efficiently. The employees especially the labor frequently goes on strike with the demand of higher compensation and better benefit package.

The employees always want to balance what they will get in exchange of their effort and hard work. The employees really feel motivated when they saw the organization is taking care of them through a huge compensation package. To foster inspiration of teamwork among the employees, to have effective teamwork and to get the best out of them, employees must be satisfied with their compensation package.

For all these reasons, Romana Paint is facing high turnover rate for last few years both at managerial and blue-collar level. In managerial level high turnover is experiencing because of the top leaders internal conflict due to different interests in the business.
In blue color worker level Romana Paint is experiencing high turnover rate because Romana Paint could not motivate their employees with proper compensation packages, Romana Paint does not have proper planning for their employee growths and benefits, for hazardous and unsafe working environment.

4.7. IV. Lack of control over employees.

Having a fare control over the employees is almost impossible without having a HR department working for it. Romana Paint does not have any performance appraisal program to identify the efficient employees of the organization. Performance appraisal is important for succession planning, replacement chart, job promotions etc. To find out the most efficient employee of the month or year Romana Paint also needs performance appraisal. As the performance appraisal program is absent from Romana Paint the employees do not know how effective he or she is compared to others. Moreover, management does not know which of the employees are working hard and which is wasting time.
Romana’s management is also missing the chance to motivate employees by establishing a performance appraisal system. Employees may also feel de motivated because performance appraisal is one of the finest motivator for the employees. Without appropriate performance evaluations program, it will be difficult for Romana Paint to recognize the best potential employees of the company. Part of turnover rate is because Romana Paint has recently gone through some lay-off in managerial level. Lay off can create problems for Romana Paint. The organization not only terminated the employees but also made their family in trouble.

If Romana Paint does not compensate them Ill then those employees may bring the company to court, which may cause huge problem. It may effect the organization’s reputation also. If Romana paint just simply lay off their employees without any payment, which is against the employment law, the court may give the order to shut off the business for rest of the life. Again, in near future the laid-off employees may betray with the company by providing organizational secret to its competitors.

4.8. Uncontrollable External Forces Hindering the Business Operation

There are some forces affecting the business negatively. These external factors can easily affect the company in a large way. In Bangladesh the government regulation is quite unstable. As the government changes the rules and regulation also changes. This is big problem of any company and so for Romana Paint.

These changes directly affect the cost of the products. Company have to be careful as there are also foreign companies so compete with them can be hard for the domestic companies.
Economy has a large impact on any type of business. At present the economy of Bangladesh is in a very much unstable state. The value of Taka is declining day by day. As a result the price of the dollar is also increasing.

For a paint production company like Romana it is huge risk. I already have discussed that most of the raw material for paint production is imported form foreign country. And all the financial transactions are done in terms of dollar so prices increase in dollar results increase in the price of raw material. So rise in dollar is big threat for Romana as this will effect directly on the price of the products. If other paint company has greater raw material inventory then they will be able to defeat Romana easily.

Competition for Romana arises when Barger, Asian Paints come to the market. In a globalize world like today it is becoming very hard foe any company to compete with foreign company. Romana is also facing this problem as Indian companies are entering in the industry.

Both Barger and Asian paint are very Ill known company; they came in Bangladesh with plan of huge investment. They have all the latest technology, new strategies, and better promotional activities and so on, which is giving better competitive advantages.

Without raw materials the production operations will be stuck. As I have already mentioned that most of the raw materials for the company are imported from foreign counties and they come through sheep. Most of the raw materials for Romana come through Chittagong port. So any deregulation in the port again create problem in the production. If the raw material gets stuck in the port for longer time it will definitely affect the production flow directly.

Not treating the waste materials properly is a creating a huge damage in the environment. As it is a paint company, the wastes are quite toxic. It is very important for such kind of company to tear its chemical waste properly. But Romana Paint is not doing their job in this field.

This can be threat for the company, as if the environmental audit fins out this fact they will directly file case against the company. Now a day government of Bangladesh is being very careful. There are specific punishments for the companies that are not treating their chemical waste properly.

Romana Paints

4.9. MEIN ISSUE

What strategies should Romana Paint adopt to further strengthen their managerial infrastructure with a view to support its employees for maximum future effectiveness?

4.10. Market Share Analysis.

Company sales do not reveal who the company is performing in the practical field. For these reasons management needed to tracks its sales expressed as percentage of total market sales. Market share is the most fundamental study in marketing. It’s like self –assignment. Through the study it is possible to evaluate the companies overall performance, identifying the companies position, there strength and weakness.

4.11. Share of Market Position.

Chapter Five

5.0. Project Part:

5.1. Analysis and Findings of the Report.

5.1. I. Major findings from the Report:

 Barger is the market leader in the paints market.
 Romana has highest market share and second position in the paints market.
 Sales differ from areas.
 Is the moderate.
 The standard life time of Romana Paint is approx. 5 to 10 years.
 The main competitor is Barger.
 The reasons of highest market share of Romana Paint are there quality.

5.1. II. Major findings from the questionnaire analysis:

 Barger has 1st position in the market.
 Romana has 2nd position in the market.
 Romana mostly used in building, would, instrument, etc.
 Romana Paint sales high in the rainy season.
 Romana has 30% market share in the paint market.
 Barger has 55% market share in the paint market.
 Wholesaler influences the customer to buy the product, when companies provide percentage or commission to the wholesaler.
 Consumers suggest that price should be moderate but must be adjusted with competitors’ price.
5.2. Explain Michael Porter’s 5 Factors:

What is competition like? and the strength of each of the competitive forces:

Management Guru, Michael Porter, has identified five primary competitive forces that represent the state of competition in the industry. Following is the brief summary of the competitive forces that contribute towards shaping the product and services of business. Factors that need to be considered in determining the market competition are:

Rivalry among existing firms is not yet intense in the paints industry in Bangladesh. There are many paint company providing product in this industry. Rivalry depends mostly on factors such as the quality of product, after sales services, help line in meeting the customers queries, cost of packages and most importantly brand preferences and customer loyalty.

Potential entry of new competitors:

Let us look at the potential competitor’s scenario from the barriers to entry perspective:

Brand loyalty: Romana Paint co. to expand its coverage throughout the country bringing all six divisional headquarters under the coverage of the Distribution network. To make the market aware of its coverage, product and new offerings. Romana Paint co. has launched new advertisement, outdoor ads and posters etc. This has created a high brand loyalty and therefore potential new entrant to the industry will be deterred by the high brand loyalty. Essentially it is believed that the total potential market has been fulfilled by as much as three fourths. Thus leaving a very small segment of customers for new entrants to gain. High brand loyalty to Romana Paint co. and the die-hard users of the other companies ensure that potential entrants will be strongly discouraged by the high brand loyalty in current markets.

Distribution channel: Another major barrier to entry is the access to distribution channels. With four companies competing in the current market environment, the distributors of paints are becoming very limited. Thus any increase in the number of companies will cannibalize into current sales.

Government regulations: In Bangladesh, the paints market is still owned by the private. They have already entered in the paints market. Thus they will not take kindly to new companies entering the industry. This may make them influence the government to introduce new legislation designed to restrain the business activities of new companies.
Absolute cost advantages and economies of scale: Current paint company considering their size of investment and operations are at a cost advantage. New companies will have to invest in equipments and bear the huge cost of setting it up. Current marketers are constantly improving their service facility and they will come up with different strategies to retain their market position.

Threat of substitute products:

The strength of competitive pressures from substitute products depends on three factors:
(a) Whether attractively priced substitute products are available
(b) How satisfactory the substitute products are in terms of quality, performance and other relevant attributes and
(c) The ease with which buyers can switch to substitutes.

Bargaining power of suppliers:
Bargaining power of suppliers in this industry is high because:

Suppliers do not depend solely on one paint company for significant portion of their sales.

In the case of all companies paint are available in all the markets.

Products are not differentiated. However this has little effect on over-all supplier power.

Bargaining power of buyers:
Bargaining power of buyers is comparatively low under certain conditions:

Romana Paint co. customers have significantly low bargaining power because of the lowest cost of procurement of a company set. They have to rely on the service providers for other help.

Users of low cost packages may switch from other packages but only at a certain cost: that of cost of purchase. In many cases it is seen that such
Customers run up bills equivalent to or above their credit limit then abandon their current user number. In such cases buyers bargaining power is higher.

5.3. Product demand Analysis:

Sugar chemical offers huge product line under the brand Romana whereas no other local company has such big product line. For different segment they have different brand name.

o Under Romana they have Synthetic Enamel Paint, Synthetic Paste Distemper, Plastic Emulsion Paint, Romocem, Aluminum Paint, Wall Sealer (Oil Base), Hammer Finished paint, Synthetic Clear Varnish, Red Oxide Primer, Marine red Oxide Primer, Staving Enamel, Whether Coat, Wood Varnish, etc.

o Under Romana Rainbow, they have Synthetic Enamel paint, Enamel (Chines Lacquer).

o Under Romana Doculux, which is car paint, they have Doculux Super, Doculux, Sunco, Doculux supper (Depilate) etc.

o Under Romana Gold they have Synthetic Enamel Paint-Gold, Hammer Gold, and Aluminums-Gold etc.

o Under Romana Copal Varnish they have Sunflower Copal Varnish (G) and Sun Flower Copal Varnish
o Under Romana (Chines Lacquer) they have Enamel (Chines Lacquer).

Chapter Six

6.0. Conclusion Part:

6.1. Recommendation.

6.1. I. Management:

After analyzing the entire condition of Romana Paint, I have come up with a recommendation from the mentioned alternatives. To perform smoothly and to enhance their efficiency, Romana paint should aim at appropriate recommendation, through which they can lead their company as the leader of the market.
Romana Paint should fabricate an HRD to strengthen the managerial infrastructure as Ill as to support its employees in order to ensure enhance productivity of the organization down the line.

o Product: Quality of the paint should be better then Berger, because Berger is the market leader.
o Price: Price should be moderate and adjust with competitor’s price.
Market price should be included in the body of the paints. Other wise wholesaler may charge higher price then MRP to the consumers.

o Place: There must be companies own display center in every metropolitan cities of the country. It is better to provide distributor in every out post of the rural areas.

o Promotion: More advertisement should be given in different media, like Radio, TV, Print Media, etc. it is essential to arrange Radio “Gith mala” such as Bengali film song. Poster, sticker should be placed in the important places of different cities. Hanging materials, (Points of Parity) should be providing to the wholesaler as well as retailer. Arranging different playing games, such as Football, Cricket, etc.
6.1. II. Market and Competitors:

The market size of Romana Paints is very large. So Romana Paint Co. must work heard to obtain their target market and after every month it is better to analyze the main competitors (Berger, Roxy, etc) strength and weakness and try to get opportunity from competitors strength and weakness and careful about competitors threats.

Romana Paint can establish a Human Resource Department (HRD) in order to get rid of its internal managerial as Ill as labor problems. HRD will be responsible for dealing with and to handle issues related to any managerial problems within the organizations as Ill as any problems associated with its labors. HRD will work as the negotiator between the organization and the employees though HRD will construct by the organization. The HR department will not produce anything or sell anything but it can help the rest of the company make things or sell things by smoothing the path on some matters. HR departments provide several services that keep an organization staffed.
This level incorporates many of the activities including staffing, compensation and benefits, employee relations, and training. HRD’s job will be to help the employees to do things perfectly that they would not do “naturally”. HRD will support the other functional areas.
A HRD will be able to ensure proper organizational chart, so that the employees do not get confused about their reporting authority. A HRD will make sure the organization is satisfying the employee’s requirements and the employees are performing for the benefit of the organization, so that the organization and the workforce can work parallel with each other.

6.2. IMPLEMENTATION:

Proper implementation is the key to success for any plan to be effective. Among the five alternatives I have discussed before, I have decided to implement the most important alternative that is Romana Paint should construct a separate HR department to support the workforce to ensure the organizational success.

Romana Paint should construct an HRD to reinforce the managerial infrastructure as Ill as to assist its employees in order to ensure enhance productivity of the organization down the line

 Construction of a separate human resource department
Romana Paint should construct a separate HRD in order to ensure the best outcomes from its potential workforce to enhance organizational productivity and efficiency. Romana Paint should initially appoint five people to manage the HR department; one HR manager, two HR executives and two temporary HR executives.

 Conducting human resource planning.

Human Resource planning (HRD) is the process of anticipating and making provision for the movement (flow) of people into within and out of an organization. HRD’s purpose is the effective deployment of human resources through anticipating organizational labor supply and demand, providing expanded employment opportunities for women, minorities and the disabled, and finally guiding the development and training the work force.

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