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PRESENTED TO:

PROF. AITAZAZ KHURSHID

PRESENTED BY:

SYEDA FARWA BATOOL (082150)


ASAD JAVED (082155)
DEMOGRAPHICS OF PAKISTAN
Pakistan is small country with limited resources. But the population of Pakistan
is 180,000,000. Pakistan has 6th number in population in world.

POPULATION AND GROWTH


• Population: 180,000,000 (2008 est.)
• Growth rate: 1.828% (2007 est.)
• Birth rate: 27.74 births/1,000 population (2007 est.)
• Death rate: 8 deaths/1,000 population (2007 est.)
• Net migration rate: -1.24 migrant(s)/1,000 populations (2007 est.)
AGE STRUCTURE
• 0-14 Years: 40% (Male 33,293,428; Female 31,434,314)
• 15-64 Years: 56.9% (Male 48,214,298; Female 46,062,933)
• 65 Years And Over: 4.1% (Male 3,256,065; Female 3,542,522) (2007 Est.)
Gender Ratios

• Sex Ratio At Birth: 1.05 Male(S)/Female


• Under 15 Years: 1.06 Male(S)/Female
• 15-64 Years: 1.05 Male(S)/Female
• 65 Years And Over: 0.92 Male(S)/Female
• Total Population: 1.05 Male(S)/Female (2007 Est.)

LITERACY
Finition: over the age of 15 and can read and write.

• Total population: 54% (2004 est.)


• Male:60%
• Female: 42%
• Muslims: 174,500,000
• Hindus: 2,500,000
• Christians: 2,500,000
• Ahmadis: over 400,000
• Bahá'ís: 30,000
• Sikhs: 20,000
• Buddhist: 20,000
UNEMPLOYMENT RATE:
It is the percentage of persons unemployed (those looking for work and
temporarily laid off) to the total economically active population
PAINT MARKET ANALYSIS IN PAKISTAN
PAINT INDUSTRY GROWTH/TRENDS YEAR TO YEAR IN
PAINT INDUSTRY GROWTH/TRENDS YEAR TO YEAR IN

S
A
L
E
S

MARKET SHARE OF DIFFERENT PAINT COMPANIES IN


PAKISTAN

60%

50%

40% ICI PAINTS


BERGER
30% MASTER PAINTS
SILKY
20% OTHERS

10%

0%
1
ICI PAINTS 25%
BERGER 12%
MASTER PAINTS 3%
SILKY 1%
OTHERS 49%
MARKET TRENDS OF INDUSTRY
One of the greatest opportunities for paints producer is that now a day's people
are very much conscious about the quality of the paints. They are aware of the
fact that good quality paint is long lasting for their houses and businesses. Paints
producers are also investing heavy in advertisement. As a result customers are
getting aware of the importance of paint and their trends are moving from
traditional white wash (KALI) to quality paints products. As producer companies
of paints will more focus on the TQM, it will increase the demand of products.
There is also a great opportunity for paint industry; the housing rate in Pakistan
is flourishing very rapidly, especially after the Earth Quake in Pakistan. Paint
industry can target these customers.

MARKET GROWTH OF INDUSTRY


There are huge opportunities for the growth of paint industry in Pakistan. And
this industry also has shown very good results in last decades. But due to
economical recessions and bad political condition of Pakistan this business has
declined by the 10%. But after the creation of new government in 2008, this
business has able to increase its 1% share. Although decorative business
increased market share by 1% and industrial sales also increased because of the
very significant decline in the size of the decorative market, the overall reduction
in sales volume is 4% as compared to the previous year. However gross margin
increased by 6% through improvement in product mix and efficiencies in
procurement and manufacturing, which coupled with stringent control over
fixed costs resulted in as operating profit improvement of 14.4% over last year to
Rs. 262.9 million.

The new government has increases the general sales tax from 15% to 16%. This
increase can hurt the growth of the paint industry. Recently this industry has
increase the 1% share but new government policies can again hurt this industry.
The increase in tax, energy crisis in Pakistan and high prices of the decorative
paint products are major hurdles in the growth of this industry. But there are still
chances to grow. There are almost54, 0000,000 potential customers in Pakistan.
There are huge opportunities for paint industry of Pakistan to export the paint
products to Middle East and Afghanistan. If government gives incentives to
paint industry in export, this can increase its growth; as a result Pakistan will
also generate the heavy revenues.

Recently new competitors are coming in this industry, which is the sign of the
growth of paint industry. According to industry analysts, this tough competition,
high promotion strategies and increasing trend toward paint industry are the
clear chances of the high growth in the paint industry
.
PEST ANALYSIS OF PAINT INDUSTRY OF PAKISTAN

POLITICAL AND LEGAL ANALYSIS


The Political condition and Government rules and regulations of the country can
affect any industry whether that is at introduction, growth, maturity or at
decline. The same case is with the paint industry of Pakistan. From the many
years the political condition of the country is not very certain. The suicide
attacks, the issue of judges, bad law and order condition in northern areas and
unstable new government has hurt the paint business very badly. The high costs
of the petroleum products, energy crisis and lack of infrastructure are the major
hurdles in the growth of this industry. Government will have to focus on this
industry because it is generating lots of revenues for the country

ECONOMIC ANALYSIS
Economy has a critical role in fostering the success or creating problems for any
organization. Similarly in case of paints industry, this industry is facing
instability in the sales and growth from many years. Government has imposed
16% sales tax and heavy duties on imports of raw materials. Paints industry of
Pakistan import 75% of its raw materials so import duties have increased the
production cost thus decreasing the profit margin.

Recessionary conditions continued to prevail as the government pressed on with


its efforts to document the economy. The depressed construction industry and
the slow trading industry and the slow trading environment resulted in an
overall market shrinkage in the decorative business by 10%. Against this back
drop the business however has able to increase its market share by 1% through
its strong advertising and promotional campaigns and effective after sale service.
The industrial business continued to deliver a robust performance driven by
penetration of new market segments within the general industry sector.

SOCIETAL ANALYSIS
In recent years paint industry has shown a lot of concern for society. Industry is
very conscious about environmental pollution which occurs because of the
production of paints. The industry has huge focus on the SH&E. The paint
producers are trying to produce those products which are free from the harm full
chemicals.

MAJOR SEGMENTATION VARIABLE FOR TARGET


MARKETING OF PARGET PAINTS:

GEOGRAPHICALLY:
WORLD, REGION AND COUNTRY:
Asia, Pakistan

DENSITY:
Urban

DEMOGRAPHICALLY:

AGE:
25 and above

GENDER:
Male and Female

FAMILY LIFE CYCLE:


Single, Married, older but children are not the target market

INCOME:
30,000 to onwards

OCCUPATION:
Businessmen, professionals, high ranking managers.
PSYCHO GRAPHICALLY:

SOCIAL CLASS:
Upper middles, Lower uppers and Upper Uppers

LIFESTYLE:
Achievers and strivers but not survivors

PERSONALITY:
Ambitious and Compulsive

BEHAVIORAL:

OCCASIONS:
Regular and special both

BENEFITS:
Quality

USER STATUS:
Potential users, Regular users, first time users

USAGE RATE:
Medium users, Heavy users

LOYALTY STATUS:
Medium, Strong

READINESS STAGE:
Desirous, Interested, Aware
MICROENVIRONMENT:

SUPPLIERS:
Main supply of raw material for the company comes from
foreign countries like Japan and Europe. Approximately 70% of total purchases
of raw material come from Japan and Europe and 30% supply provide from
local.

MARKETING INTERMEDIARIES:
Parget Paints give distributions only to its authorized
dealers and distributors.

CONSUMERS:
Households, Painters, interior designers, building
contractors are usually the consumers of Parget Paints.

BUSINESS CUSTOMERS:
Parget Paints is supplying paints to some business
customers like Pak Suzuki, Pak Hino, Descon, NLC , and KSB.

RESELLERS:
Parget Paints is not selling their paints through resellers
channel.

GOVERNMENT:
They have no specific or regular contracts with
government but it do execute it occasional order
received from Government for military and other Government institutions.

COMPETITORS:
Direct Competitors:

I.C.I Paints , Berger Paints, Master, Diamond, Silver Sand,


Marvell, Buxluy, Black Horse Gobi etc
Indirect Competitors:

Tiles, Wood peeling, Wallpapers, Rockwall, Paint Puree etc.

PUBLICS:

 Financial Publics:

Citi Bank, ABN AMRO, Habib Bank, UBL, MCB etc

 Media Publics:

Mind Share Company in Karachi

MACRO ENVIRONMENT:

DEMOGRAPHIC:
If we see the demography of Parget Paints. Then this fact
come most of its customer’s are age of 35-40 years.

TECHNOLOGICAL ENVIRONMENT:
They have installed a plant in the company which purifies
all the harmful material from the disposal. Moreover they are also using the
latest technology for paint making. They are also using latest technology for
advertisement of their product.

NATURAL ENVIRONMENT:
Parget Paints are producing mercury free and lead free
paints which are environment friendly.
FACTORS AFFECTING CONSUMER BEHAVIOR:
There are certain external forces that affect consumer’s buying behavior.
These factors include cultural, social, personal and psychological. How these
factors affect buying behavior of consumer of Parget Paints are described below:

CULTURAL FACTORS:
Cultural factors also affect consumer’s behavior towards Parget Paints.
As Parget is suitable only for urban area because the culture of urban area is
advanced, and only high income people can afford it, whereas in rural areas,
people are either not aware of painting the walls and if they are aware, they
prefer to use whitewash.

SOCIAL FACTORS:
Social factors also affect the buying behavior of consumer of Parget
Paints. Social factors include groups, family, roles and status.
In groups, there are membership groups, reference groups and opinion
leaders. Relating this with Parget we can say that for the consumers of Parget
paints, the membership group is upper middle and elite class, and the reference
group of the customers relating to upper middle class is elite class, so Parget
should design its campaigns according to the reference groups of target market
.While talking about family, buying behavior for Parget paints mostly depends
upon the parents, as the males decide which company of paint they should take,
and females are usually involved in choosing among the wide range of colors.

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