EAST-WEST UNIVERSITY

REPORT ON BERGER Paints

COURSE TITLE – PRINCIPLE OF MARKETING

COURSE CODE – MKT 101

SECTION – 1

SUBMITTED TO –

SUBMITTED BY –

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 Table of Contents

Executive summary ..................................................................................................6

Introduction ..............................................................................................................7
Company Profile: .....................................................................................................7
Mission: .....................................................................................................................8
Vision:........................................................................................................................9
Main Competitors: ...................................................................................................9
Products: ...................................................................................................................9
Color bank products-..........................................................................................10
Highlighted Products:.........................................................................................10
SPD:...................................................................................................................10
Luxury Silk Emulsion: ....................................................................................11
Illusions:............................................................................................................11
Color Bank Product: .......................................................................................11
Market Share: ........................................................................................................11
Market Segmentation: ...........................................................................................12
Primarily:.............................................................................................................12
Secondly: ..............................................................................................................12
Segmentation based on Income.............................................................................13
Segmentation based on Usage Rate ......................................................................13
Segmentation based on Brand Loyalty ................................................................14
Psychographic Segmentation: ...............................................................................14
Market Targeting:..................................................................................................15
Single-segment: .............................................................................................15
Selective specialization: ................................................................................15
Product specialization: .................................................................................15
Market specialization: ..................................................................................15

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 Full market coverage: ..................................................................................15
Differentiation: .......................................................................................................16
Positioning: .............................................................................................................16
Product Positioning: SPD...................................................................................16
Marketing Mix: ......................................................................................................17
Product: ...............................................................................................................17
Variety: .............................................................................................................17
Quality: .............................................................................................................17
Design:...............................................................................................................17
Brand Name: .......................................................................................................17
Packaging: ...........................................................................................................18
Services: ...............................................................................................................18
Price: ....................................................................................................................18
Unit Price:.........................................................................................................18
Discounts: .........................................................................................................18
Credit Terms: ......................................................................................................18
Promotion: ...........................................................................................................19
Advertising: ......................................................................................................19
Personal Selling: ..................................................................................................19
Sales Promotion: .................................................................................................19
Public Relation: ...................................................................................................19
Place: ....................................................................................................................19
Channels: ..........................................................................................................19
Coverage and Location: .....................................................................................20
Transportation: ...................................................................................................20
BCG growth-share matrix of Berger: ..................................................................21
Recommendation: ..................................................................................................22
Conclusions: ............................................................................................................23

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Acknowledgement: .................................................................................................24
Reference: ...............................................................................................................24

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Executive summary

Berger Paints Bangladesh Limited is not only a company with reputation but is a name to the
dynamic industry which has history and the pride to be the best at what it does. Berger Paints
Bangladesh Limited often referred to as BPBL is considered to be the market leader in
Bangladesh and has a wide array of products such as Regular Coatings, Industrial Paints, Marine
Paints, Outdoor Paints Protective, Color Bank, Textured Coatings, Heat Resistant Paints,
Roofing Compounds and Epoxies and Powder Coatings. BPBL gives a comprehensive and
sustainable painting solution and providing the best customer support. It connects consumers to
technology through specialized services. It has a strong distribution Networking, Berger has
reached almost every corner of Bangladesh. Whether it is World-class range or durability,
BERGER is always ready to answer to all weather conditions. It strives for the improvement of
Quality of Work Life(QWL) with competitive advantage. Berger Paints Bangladesh Limited is
basically managed by its Finance, Supply Chain, IT, Budget, Marketing & Sales departments.
The manufacturing units at Dhaka and Chittagong are also the strategic advantages that it has
because of their location. Berger’s corporate strategy is to build larger market share through
providing quality and speedy service. Its primary focus is to strengthen its current position by
provided value added customer service. BPBL is committed to get highest consumer satisfaction.
BPBL is committed to express itself as an ethical and socially responsible company by producing
environment friendly paints, in an environment friendly production plants. BPBL is made up of
well experienced, well trained, highly educated officials and very dedicated and experienced
employees along with the stakeholders. BPBL is nothing without its valued customers. So, to
serve the best to the customers has been on top of all priorities.

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Introduction

This report attempts to give an idea about the marketing strategies of “Berger Paint” in
Bangladesh. The report includes information on the current strategies that “Berger Paint” is
following to market their products and service and also discusses the marketing strategies that we
have come up with to increase the market share and growth rate of their business.

Company Profile:

With an ever-evolving profile and rich history, Berger Paints started its business in Bangladesh
since independence. Berger is one of the oldest names in the paint industry. Berger Paints turns
one’s dreams into colorful reality. It is a leader in paints, offering its customers a variety of
innovative painting solutions, weather it is decorative or industrial. Whether it is one’s home or
office, shop or factory, interiors or exteriors, metal, wood, plastic or any other surface - it has a
paint solution for it.

Berger has been involved in paint business since 1950 in Bangladesh when paints were first
imported from Berger UK and then from Berger Pakistan. In 1970, Berger Paints Bangladesh
Limited (BPBL) erstwhile Jenson & Nicholson had set up its paint factory in Chittagong at an
estimated investment of TK.4 million. The shareholders were Jenson & Nicholson (J& N),
Duncan McNeil & Co Ltd, and Dada Group. The name of the company was changed from J& N
(Bangladesh) Limited to Berger Paints Bangladesh Limited on 1st January 1980. In August
2000, J& N investment (Asia) Ltd purchased Government shareholding. Now, Berger Paints
Bangladesh Limited is 100% owned by J& N Investment (Asia) Limited, UK.

Investment in technology and plant capacity is even more evident from the new factory of Berger
Paints Bangladesh Limited at Saver. The state-of-the-art factory is an addition to Berger's

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capacity to make it the paint-giant in Bangladesh. All, together with devotion into R & D to
make it the reputed center of Basic & Applied Research in paint and Resin Technology, proof
the commitment that Berger has for this industry. With its strong distribution network, Berger
has reached almost every corner of Bangladesh. Nationwide Dealer Network, supported by 7
Sales Depots strategically located at Dhaka, Chittagong, Rajshahi, Khulna, Bogra, Sylhet and
Camilla has an unmatched capability to answer to paint needs at almost anywhere in Bangladesh.

The sheer innovation and development drive is reflected on the various products Berger has so
far launched in this market. The product range includes, specialized outdoor paints protective of
the worst weather conditions, Color Bank, superior Marine Paints, Textured Coatings, Heat
Resistant Paints, Roofing Compound and Epoxies. In each of the product category, Berger has
always been the pioneer and will continue to do so proudly.

Berger's one of the prime objectives is to provide best customer support-connecting consumers to
technology through specialized services like free technical advice on surface preparation, color
consultancy, special color schemes etc. To bolster customer satisfaction, Berger has recently
launched Home Decor Service from which once can get an array of services pertaining to
painting

Mission:

 We shall increase our turnover by 100% in the next five years.

 We shall remain socially committed ethical Company.

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Vision:

We shall remain as the benchmark in the Paint industry by:

Being an innovative and technology driven company consistently delivering world-class

products ensuring best consumer satisfaction through continuous value added services provided
by highly professional and committed team.

Main Competitors:

1. Asian Paints
2. Romana Paints
3. Elite Paints

Products:

1. Robbialac
2. Illusions
3. Luxury Silk Emulsion
4. Zhilik
5. Weather Coat
6. Durocem
7. Wood keeper
8. Color Bank Product:
Berger Color Bank is the pioneer to show the global way to paint with an unlimited
choice of shades to match one’s taste-instantly. Every Berger Color Bank store has a
computerized color tinting machine to help one choose and take home one’s own shades
from its world class range of paints. Availability of one’s chosen shades is always
ensured as the paint is created and dispensed by the machine before one’s very own eyes.
Berger Color Bank has unique Tint vision software which allows one to see infinite color

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 combinations on the screen of the computer. If one so desire one can mix and match and
create one’s own shades as well.

Color bank products-

 Robbialac Plastic Emulsion Classic
 Robbialac Synthetic Enamel Gold
 Luxury Silk Splendor
 Easy Clean
 Robbialac Pearl Luster Finish
 Weather coat Smooth Classic
 Weather coat Long life
 Robbialac SPD Super
 Wood Keeper Finesse

Highlighted Products:

1. Robbialac SPD
2. Luxury Silk Emulsion
3. Illusions
4. Color Bank

SPD:
For medium to high income people who have little or no aspirations. People who are more
accustomed to middle class life and who do not do a lot of differentiation among colors.

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Luxury Silk Emulsion:
For people of high income and high aspiration. They are frequents corporate & social parties
who want class to be reflected in the colors of the walls.

Illusions:
For successful entrepreneurs & top management executives who achieved their
goals & dreams who want their thoughts patterned on the walls.

Color Bank Product:

Berger Color Bank is the pioneer to show the global way to paint with an
unlimited choice of shades to match one’s taste-instantly. It’s able to provide the consumers
option of choosing variety of colors; 5000 shades within 5 minutes.

Market Share:

Approximate market shares are:

 Berger – 67%,
 Asian – 12%,
 Romana – 8%,
 Elite – 7.5%,
 Others – 5.5%.

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 Berger Paints
Asian Pints
Romana Paints
Elite Pints
Others

Market Segmentation:

Berger segmented its market as follow:

Primarily:
 Decorative Finishes – for Interior and Exterior Finishes.
 Industrial Coatings – for road, structural steel, sheets etc.
 Marine Coatings – for ship, dock etc.

Secondly:
Segmentation Bases:
 Income
 Usage Rate,
 Brand Loyalty
 Psychograph

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Segmentation based on Income

Segmentation based on Usage Rate

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Segmentation based on Brand Loyalty

Psychographic Segmentation:

Robbialac SPD – Economy product with quality.

Luxury Silk – Premium product at a premium price.
Illusions – Paint that reflects dream and achievements.

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Market Targeting:

There are several different target-market strategies that may be followed. Targeting strategies
usually can be categorized as one of the following:

 Single-segment: strategy - also known as a concentrated strategy. One market

segment (not the entire market) is served with one marketing mix. A single-segment
approach often is the strategy of choice for smaller companies with limited resources.

 Selective specialization: this is a multiple-segment strategy, also known as a

differentiated strategy. Different marketing mixes are offered to different segments. The
product itself may or may not be different - in many cases only the promotional message
or distribution channels vary.

 Product specialization: the firm specializes in a particular product and tailors it to

different market segments.

 Market specialization: the firm specializes in serving a particular market segment

and offers that segment an array of different products.

 Full market coverage: the firm attempts to serve the entire market. This coverage
can be achieved by means of either a mass market strategy in which a single
undifferentiated marketing mix is offered to the entire market, or by a differentiated
strategy in which a separate marketing mix is offered to each segment.

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Differentiation:

Berger is the only company which has differentiated its product with over 200 product
variations. Seven sales office and thousands of dealers throughout Bangladesh. Home services
are also there for the customer.

Positioning:

Product Positioning: SPD

Robbialac SPD has almost same quality comparing to competing products but still has a high
price than competitors.

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Marketing Mix:
Product:

Variety: Berger has a lot of variety of Robbialac. Such as –

 For interior finishes

 For exterior finishes
 For industrial coatings
 For marine coatings etc.

Quality: Less qualitative comparing to its other products like Luxury Silk Emulsion, Illusions
but better than the competitors.

Design: It includes lots of design variety too.

Brand Name:

It has different brand name for different finishes like - Robbialac Acrylic Distemper (SPD),
Robbialac SPD Super ,Robbialac Plastic Emulsion Classic, Robbialac Synthetic Enamel Gold,
Robbialac Pearl Luster Finish, Robbialac Acrylic Plastic Emulsion (APE), Robbialac Super
Gloss Synthetic Enamel (RSE), Robbialac Aluminum Paint, Robbialac Red Lead Primer,
Robbialac Zinc Phosphate Primer, Robbialac Plastron Primer Sealer, Robbialac Synthetic

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Undercoat, Robbialac Anticorrosive, Robbialac Water Sealer, Robbialac T-6 for Air-Drying
Primers & Enamels, Robbialac Wall Putty etc.

Packaging:

Its packaging is better than the competitors.

Services:

It has two types of services- free services, paid services. It provides a useful Blue Book for how
to use the paint.

Price:

Unit Price: 1 liter Robbialac SPD is Tk. 170 for home finishes.

Discounts:

It has a good reputation market demand as a result it does not provide any discounts.

Credit Terms:

It also sales its products on credit sometimes with some conditions.

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Promotion:

Advertising: TV, Newspaper, Bill Board etc.

Personal Selling:
Personal selling through showrooms, e.g. Color bank.

Sales Promotion:
Taking part in Trade Fairs.

Public Relation:
Tries to maintain good public relations.

Place:

Channels:

7 Sales offices, Over thousands Dealers and Retailers throughout the country. Uses selective and
complementary distribution.

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 Company

Sales office &

Dealers

Whole sellers &

Retailers

Consumers

Coverage and Location: Whole country coverage.

Transportation: Its own truck and pick up transport its product across the country.

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BCG growth-share matrix of Berger:

Star Question Mark

High
(Luxury Silk (Illusion)
Market Emulsion)

Growth

Rate Cash Cow Dog

(Robbialac) (Zhilik)

Low

High Low

Relative Market Share

Star: Luxury Silk Emulsion is now being considered as Star because of its high growth rate
and market share.

Cash Cow: Robbialac is considered as Cash Cow as it generates huge cash besides its
market growth relatively low. Because once it was the Star of Berger.

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Question Mark: Illusions is considered as Question Mark as it has a high price, its market
share is low though growth is comparatively high. There is low chance for Illusions to grow as
Star.

Dog: Zhilik is considered as the Dog because it generates enough cash to maintain itself.

Recommendation:

The following recommendations can be draw for the further development of the Berger Paints
Bangladesh –

 Berger Paints should always provide emphasis on customer demand. It should always
satisfy the dealers demand and arrange product availability.

 It should always pay heed to the dealers’ growth rate, take initiatives to recover gap and
always monitor their activities.

 Berger Paints should restructure its sales system. It can restructure through employing
more SOs, day to day sales and delivery system, enrich end-user activists activities,
frequent market visit, better communication with distribution.

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  Its general sales procedures like taking order, preparing invoice, categorization of
invoice, preparing rout plan, lining products for loading, final check, and loading of
vehicles should be automated.

 It should also organize distribution system through increase space for store systematic
way, frequently update its database systems which shows products, pack size and color
availabilities and increase the number of delivery .

Conclusions:

The paint market is very much competitive although Berger paint holds the major market share.
But the growth rates of the competitors are great challenges for Berger. It’s true that Berger
paints is very prominent in the market because of its high quality products, better customer
response, variety of products, competitive price rate etc. The first choice of consumers is
BERGER because they can rely on it and its long lasting capabilities. It’s also able to provide the
consumers option of choosing variety of colors; 5000 shades within 5 minutes through its color
bank.

Berger Paints is very much restricts in credit policy. It provides credit only some selected dealers
where as other competitors are very much liberal in credit. Paints traders; wholesalers or
retailers, are naturally very much found of huge credit. Thus the key competitors gradually grow
up in the market through their vast credit policy.

With world class range and durability, Berger is always ready to answer to all weather conditions
and try to satisfy every corner of the country.

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Acknowledgement:

Mr. Abul Hasnat

Dealer

Berger Paints Bangladesh Ltd.

Mirpur-1, Dhaka-1216.

Reference:

 www.bergerbd.com
 International Business Environment & Operations (12th Edition)
 Annual Report of Berger paint

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