Asian Paint

RESEARCH PROJECT REPORTON

“Market Research On Paints”A Research Project Report submitted for the

requirement of partial fulfillment for the award of Master of Business Administration (2006-08)

Guided By:Dr. J.N.S. Chandel

Submitted By:Naveen Dixit

(Roll No. 0617670021)

IILM Academy of Higher Learning Lucknow,1, Viraj Khand, Gomati Nagar, Lucknow.

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CERTIFICATE

This is to certify that Mr Naveen Dixit is a student of final year M.B.A (2006-2008) has written his Report under my supervision on the topic, “Market Research On Paints”.

( ) ( )

Dr. J.N.S. Chandel Mr. Himanshu mohan Faculty guide M.B.A program co-ordinator

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PROJECT OUTLINE

NAME OF THE PROJECT: - A MARKET RESEARCH REPORT ON PAINTS

COMPANY TAKEN: -Asian paint, Nerolec, Dulux, and Berger. RESEARCH METHODOLOGY:-

Primary data collection Secondary data collection.

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RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

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Research methodology is based on internal as well as external data which are given below:-

Internal data: - we have collected the information from company profit and loss a/c, balance sheet and company record. External data:- external data is based on two primary sources which are as follows.

Primary data collection:- We have collected our all data from questionners, and observation methods.

Secondary data collection:-We have collected our secondary information from News paper, Internet and journals.

OBJECTIVE OF THE RESEARCH

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By through this research we find various aspects of paints quality. We find out what various quality customers want in their paints. We also find what are the strong and weakness of particular company in terms of its marketing strategy and corporate strategy. These are pricing strategy, promotion strategy and distribution strategy.

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EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

This project is completely based on market research of paint. Under this research, we have taken 100 sample sizes of which 80 questionnaires belong to consumers and rest

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belong to retailers. We have taken four brands of paints these are Asian paint, Nerolac, Berger, and Dulux. Inspite of research we have analyzed the each brand of paint in numerical nature. On the basis of that we have assessed the strong brand and weak brand out of brands. Then after we have formulated the strategy of each brand in which we have told about grabbing the market on the basis of:-

Quality product rendered to customer.To attain customer satisfactionTo reduce the price of brand so sales can be boost up.To advertise their product which is socially accepted?To advertise their product through prominent celebrity.

On basis of weak brand, we have given recommendation in which we mentioned how to strengthen the weak brand. This is the precise study of project.

ACKNOWLEDGEMENT

I am greatly inspired by the very good response from a large numerous of consumers and retailers of paints in Lucknow.

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I am deeply indebted to PROF. Himanshu Mohan, who has always been a source of great help, guidance and inspiration, and insight thinking help us to complete this project.

Every effort has been made to reduce to minimum the printing and calculation mistakes.

I sincerely believe that the road to improvement is never ending. Hence, I will look forward to and gratefully acknowledge all suggestions received.

Thank you

April, 2008 Naveen Dixit

(IILM, Lucknow)

TABLE OF CONTENT

INTRODUCTION

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ANALYSE CUSTOMER RESPONSE

ANALYSE RETAILER RESPONSE

MAJOR FINDINGS

Asian paintsNerolecBergerDulux

RECOMMENDATION AND STRATEGY

CONCLUSION

BIBLOGAPHY

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INTRODUCTION

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Asian Paints

In 1942, four partners got together to manufacture paint in a garage in Bombay. The company was named Asian Oil and Paint Company; a name picked at random from a telephone directory. Up against giant international paint companies, Asian Paints hit on the innovative marketing strategy of reaching consumers in the remotest corners of the country with its small, conveniently sized packs. During the 1950’s the company grew from being a family-managed, small-time paint manufacturer to a professionally

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managed organization competing with the best companies in the world. By 1967, through innovative R&D and ambitious grass-roots marketing, forming strong relationships with thousands of paint dealers in small towns all over India, the company jolted its multinational competitors by emerging as India’s number one paint company. See Exhibits 1, 2, 3, 6 and 7 for more company information

For the next thirty years they maintained their position as market leader through a four pronged strategy –i. Excellent marketingii. Intensive distribution iii. Leadership in Information Technology, andiv. Recruitment of young management professionals.

In 1996-97 AP’s total sales reached $175 million, almost double that of Good lass Nerolac Paints, (1996-97 sales $94 million) the number two paint company in the country. Asian Paints had strengthened its technological capabilities through agreements with Nippon Paints of Japan for automotive and powder coatings, Sigma Coatings BV of Netherlands for marine and high-performance coatings, and PPG Industries of USA for the cathodic electrode position technology - a much needed enhancement for its automotive business.

Asian Paints is India's largest paint company and ranks among the top ten decorative coatings companies in the world today, with a turnover of Rs.22.6 billion (around USD 513 million). The company has an enviable reputation in the corporate world for professionalism, fast track growth, and building shareholder equity.

Company Vision

Asian Paints aims to become one of the top five Decorative coatings companies world-wide by leveraging its expertise in the higher growth emerging markets. Simultaneously, the company intends to build long term value in the Industrial coatings business through alliances with established global partners.

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History

Today to Asian Paints becomes the 10th largest decorative paint company in the world. Asian Paints is more than twice the size of its nearest competitor. It is one of the most admired companies in India .

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Present in 22 countries with 27 manufacturing locations, over 2500 SKU's, Integrated SAP - ERP & i2 - SCM solution.

Rated Best Employer by BT-Hewitt survey, 2000 Bluest of the blue chips by Hindu Business Line; Most admired company to work for by ET-BT survey, 2000.

On the recommendations of Booz, Allen and Hamilton, Asian Paints restructured itself into Growth, Decorative and International business units and adopted SCM and ERP technology.

Asian Paints aims become the 5th largest decorative paint company in the world.

1957-66 The family-owned company makes the transition to a professionally managed

organisation. British company Balmer Lawrie rejects the products of a giant British paint company in

favour of Asian Paints. Asian Paints embarks on an ambitious grassroots marketing campaign, partnering with

thousands of dealers in small towns all over India.

 1967 Asian Paints emerges as India's leading paint company ahead of any international

competition.

 1945 Asian Paints touches a turnover of Rs. 3,50,000, with an innovative marketing strategy

"to reach consumers in the remotest corners of the country with small packs."

 1954 Asian Paints mascot, Gattu, the mischievous kid, is born.

1st February, 1942 Armed with little knowledge and great determination, Champaklal H. Choksey,

Chimanlal N. Choksi, Suryakant C. Dani and Arvind R. Vakil get together to manufacture paint in a garage on Foras Road, Bombay. They name their company 'The Asian Oil & Paint Company', a name that they picked randomly from a telephone directory.

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Research & Development

At Asian Paints, Research and Development (R&D) plays an important role in developing new products and innovations, and reducing costs by value re-engineering of formulations.

In India, the company’s 140 strong R&D team consisting of 7 doctorates and around 115 qualified scientists, has always backed the company’s business plan and demands of the market place. Right from the company’s inception, all its decorative products for the Indian market and also in the overseas market have been developed in-house. In the last few years, our R&D efforts have been focused on developing new exterior finishes, economy emulsions and distempers.

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Asian Paints’ R&D team has successfully managed to develop High-end exterior finished and wood finishes in-house, which was earlier imported into the country. These products are currently marketed under Asian Paints Elastomeric Hi-Stretch Exterior paint and Asian Paints PU wood finish respectively.

The R&D team also provide technological support and develop customized products for the company’s international operations spanning across 19 countries.

The company is also in the process of setting up new a new R&D centre near Mumbai (India).

Award & Recognition Awarded the "Sword of Honour" by the British Safety Council for all the paint plants in

India. This award is considered as the pinnacle of achievement in safety across the world.

Forbes Global magazine, USA ranked Asian Paints amongst the 200 'Best Small Companies of the world' in 2002 and 2003 and amongst the top 200 'Under a Billion Firms' of Asia in 2005.

Ranked 24th amongst the top paint companies in the world by Coatings World - Top Companies Report 2006.

The Asset - one of Asia's leading financial magazine ranked Asian Paints amongst the leading Indian companies in Corporate Governance in 2002 and 2005.

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Received the Ernst & Young "Entrepreneur of the Year - Manufacturing" award in 2003.

Capital History 

Type of issueYear of

issueRatio

No. of shares

Total cumulative shares (No.)

Paid up Capital (Pre-IPO) 1982 – – 35,00,000

IPO 1982 – 16,85,185 51,85,185

Bonus issue 1985 3:5 31,11,111 82,96,296

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Bonus issue 1987 1:2 41,48,148 1,24,44,444

Bonus issue 1992 3:5 74,66,666 1,99,11,110

Bonus issue 1996 1:1 1,99,11,110 3,98,22,220

Issue of shares pursuant to merger with Pentasia Chemicals Limited

1996 1:25 2,94,000 4,01,16,220

Bonus issue 2000 3:5 2,40,69,732 6,41,85,952

Bonus issue 2003 1:2 3,20,92,976 9,62,78,928

Cancellation of shares pursuant to merger of Pentasia Investments Limited with the Company

2003 – 3,59,149 9,59,19,779

Total paid up capital as on 31st March, 2007 9,59,19,779

Nerolac paints

We embarked our journey in 1920 as Gahagan Paints and Varnish Co. Ltd. at Lower Parel in Bombay. In 1930, three British companies merged to formulate Lead Industries Group Ltd. In 1933, Lead Industries Group Ltd. acquired entire share capital of Gahagan Paints in 1933 and thus, Goodlass Wall (India) Ltd. was born. 

Subsequently, by 1946, Goodlass Wall (India) Ltd. was known as Goodlass Wall Pvt. Ltd. In 1957, Goodlass Wall Pvt. Ltd. grew popular as Goodlass Nerolac Paints (Pvt.)

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Ltd. Also, it went public in the same year and established itself as Goodlass Nerolac Paints Ltd.

Goodlass Nerolac Paints, a major player in the Indian paint industry, has just launched Magic Eye (or spectrophotometer) for the first time in the country. With the help of this system, the customer can walk in with a shade in mind and walk out with the paint within minutes.

Goodlass Nerolac Paints, a major player in the Indian paint industry, has just launched Magic Eye (or spectrophotometer) for the first time in the country. With the help of this system, the customer can walk in with a shade in mind and walk out with the paint within minutes.

The machine can conjure up to 60, 00,000 different colors, as many as a naked eye can detect. The shade to be matched can be in any form at textile, plastic chip, paper or even wallchip.

The company has five strategically located manufacturing units all over India. It manufactures a diversified range of products, ranging from architectural coatings for homes, offices, hospitals and hotels to sophisticated industrial coatings for most industries.

In 1976, Goodlass Nerolac Paints Ltd. became a part of the Tata Forbes Group on acquisition of a part of the foreign shareholdings by Forbes Gokak.

In 1983, Goodlass Nerolac Paints Ltd. strengthened itself by entering in technical collaboration agreements with Kansai Paint Co. Ltd., Japan and Nihon Tokushu Toryo Co.Ltd.,Japan. In 1986, Goodlass Nerolac Paints Ltd. turned into a joint venture of the Tata Forbes and the Kansai Paint Co. Ltd., with the latter acquiring 36% of its share capital.

In 1999, Kansai Paint Company Ltd., Japan took over the entire stake of Tata Forbes group and thus GNP became a wholly owned subsidiary of Kansai Paint Company Ltd. 

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In 2006, on the 11th of July, Goodlass Nerolac Paints Ltd. name has been changed to Kansai Nerolac Paints Ltd.

During the journey of continuous performance excellence, we have entered in to many technical collaborations with other industry leaders such as E.I. Du-Pont de Nemours & Company Inc., USA and Oshima Kogya Company Ltd., Japan for our different products.

Our incessant journey of successes will go on backed by our present human asset of over 2000 professionals and a sales turnover of Rs. 1484 crores

We are esteemed to be a subsidiary of Kansai Paint Company Limited, which is the largest paint manufacturing company in Japan and among the top ten coating companies of the world.

We are the second largest coating company in India with a market share of over 20%.

We are the market leader in industrial / automotive segment supplying over 90% of the OEM requirements.

Vision Values and Culture

In today’s dynamic business environment, no organization can afford to survive without a well-articulated and carefully thought vision stating the overall strategic direction and long-term future of its business.

We have been at the forefront of paint manufacturing over eight decades pioneering a wide spectrum of quality products that change the face of economy and lifestyles of people at large.

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It is our vision to leverage global technology, for serving our customers with superior coating systems built on innovative and superior products and world class solutions, to strengthen our leadership in Industrial coatings and propel for leadership in Architectural coatings, all to the delight of our stakeholders.

We firmly believe that it is not only the vision of where we wish to go which will form a cornerstone of all our further growth, but also our conviction to the fact that the values based proposition has to be ultimate foundation of our business.

To this end we consciously have internalized and been practicing these values in all our business transactions though human beings:

InnovationEntrepreneurialResponsiveSimplicityTeam Orientation

Cultural  Ethos

  Vision driven organization.Employees feel pride in being part of the organization.Recognition of human resources as extremely important and critical assets.High level of human dignity.Transparency and openness among employees at all hierarchical levels.Performance-linked reward system.Management and employee commitment to organization values is high.

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Autonomy in work is high.High commitment to quality products.

The HR Philosophy

At Nerolac we recognize our human resources as extremely important and critical assets. We honor the dignity of each individual, irrespective of position and highly value the feelings and emotions of people.

Our Human Resource Policy is, to facilitate creation of synergy, mutuality and interdependence between individual and corporate development and growth through total employee involvement and building an enabling work culture in the organization.

Informality in interactions, transparency and openness in communications at all levels, and an enabling work environment supporting high autonomy of work, transparency and an objective subjectivity of Performance Management System, fair dealing, tremendous

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care and concern for people are a few of the softer aspects of permeable people management environment which represent the organizational climate and culture. Our faith is averred by the fact that people feel pride in being part of the Nerolac family. We care for people; people care for our business.

The Quality Policy

It is the philosophy of Kansai Nerolac Paints Ltd., and its associates to achieve complete customer satisfaction by providing products and services that consistently meet or exceed the customer needs and expectations, pursuant to agreed specifications, delivery schedules and competitive prices. It is the philosophy of the company to systematically operate its manufacturing facilities by  inculcating commitment to total quality management at all levels and on a continuous basis with a view to achieving “First Time Right” results in manufacture, services and other operations.

It is the company’s aim to constantly reduce waste of material and effort, increase efficiencies and ensure safety of plant and people and protection of the environment.

Open Door Policy

Working together requires that we have a friendly atmosphere based on trust and respect amongst all of us.

At Nerolac we follow an Open Door policy. Any person is free and welcomed to share

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good idea, suggestion, doubt, problem about job or work place, or uncertainties about one’s future in the organization. An open and transparent communication is appreciated.

Social Responsibility

The company continues to make its due contribution to community relief and development activities and has donated both in cash and kind for the beautification of some public places in Mumbai and elsewhere. The company continued its activities directly or indirectly through trusts/agencies in community Development and Social Welfare including contributions towards national defense, medical help, education, improvement of environment etc.

Berger paints

BERGER PAINTS is the culmination of over seven-decade process of evolution and growth that began in 1923. Its growth has been closely linked with the business and industrial development of modern India.

BERGER'S performance is anchored today in a wide variety of Decorative and Industrial paints which continue to gain an increasing share of the highly competitive Indian paint market. Being an ISO 9001 company its quality products have attained instant recognition, worldwide, and continues to meet quality requirements that are demanded today even in the domestic market.

The Country's third largest paint manufacturer, with its Headquarters in Calcutta,

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BERGER controls a distribution network comprising of 66 stock points and approximately 10,000 dealers, spread across the country. 

Berger History

Welcome to the world of Berger Paints where we turn your dreams into colorful reality. With an unmatched range of products and services, Berger Paints India Ltd is a leader in paints, offering its customers a variety of innovative painting solutions, be it decorative or industrial. Whether it is your home or office, your shop or factory, interiors or exteriors, metal, wood, plastic or any other surface - we have a paint solution for it! With an ever-evolving profile and rich history, Berger Paints India Ltd. (an ISO 9001 Company) has come a long way in the highly competitive Indian paints industry. Today the names "Berger" and "Lewis Berger" are synonymous with colour. Berger Paints continues to be inspired by the creation and innovation of Mr. Lewis Berger, who through his marvelous shades, had offered people a chance to transform their homes through the power of imagination. At Berger we believe in taking paints to the level of fine art. Enriched by the imagination of Lewis Berger since 1760.The history of BERGER PAINTS (INDIA) LIMITED is literally as colorful as the business it is in. This chapter will reveal the milestones in our history. Please click on the milestones in the picture below to travel through our past.

Genesis

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In 1760, a young colour chemist "Lewis Berger" developed a method for manufacturing Prussian blue using a secret process that every designer and householder coveted. His business was nurtured by his descendants and others till it merged with Jenson and Nicholson Ltd. to form Berger, Jenson & Nicholson Limited. On 17 December 1923, an Englishman, Mr. Hadfield, set up Hadfields (India) Limited - a small paint company in Calcutta. Hadfieds (India) Limited started with a small factory in Howrah, West Bengal. Controlling stake in this Company was acquired by British Paints (Holdings) Limited, England in 1947 and its name was changed to British Paints (India) Limited. At that time the Company produced 150 tons of ready mixed stiff paints, varnishes and distempers. Our 1947 sales were a paltry sum of RS.2.5 million, with total employee strength of 100.

Code of Conduct

Applicability:

This Code is applicable to all Directors and employees of the Company. This is in addition to the code framed under SEBI (Prohibition of Insider Trading Regulations), 1992 and all other applicable policies, procedures as well as the existing rules and regulations applicable to the Company. This Code applies to all places where the Company's business is conducted.

Standards of Conduct:

The Company expects all Directors, employees, agents and contractors to take steps for furthering safety and welfare of citizens and for ensuring a cooperative, efficient, positive, harmonious and productive work environment.

Those who neglect or willfully breach this Code may be subject to corrective action, which may include termination.

Shareholder Value:

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The Directors and employees of the Company shall be fully committed to enhancing shareholder value and net worth. Every member of the Board and employees shall take adequate steps and measures that would have been taken by a man of ordinary prudence towards achieving this objective.

Conflict of Interest:

The Directors and employees shall not participate in the decision making process in respect of any subject matter where there is a conflict of interest between the interest of the Company and the personal interest of such persons. The Directors and employees shall also not participate in taking decisions in respect of any matter or transaction involving an organisation, firm or a person in which case such Directors or employees may be deemed to be interested.

Gifts:

The Directors and employees shall not accept any gift, hospitality or material benefits from any agent/contractors/vendors or other parties with whom the Company has a business relationship. Gifts customarily given on special occasions like New Year, Diwali, Pujas, Christmas, etc., not expensive in value or distributed generally and openly at ceremonies and a business lunch or dinner shall not come under purview of this Clause. Participation by employees in general customer meets, seminars, conferences organized by business partners under an open invitation will also not fall under the purview of this clause.

Business Opportunity:

The Directors and employees shall not take advantage of any business opportunity belonging to the Company and known to them to be so belonging. Time and Attention:

The whole-time Directors and employees shall devote full time and attention to the affairs of the Company and shall not engage in any other profession or calling which impairs their ability to do so.

Quality:

Directors and employees shall function so as to ensure that the Company preserves its reputation in the market, supplies quality products and valued services to the customers, both internal and external, and will continuously work towards enhancement of the Company's goodwill.

Dissemination of Information:

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Directors and employees shall ensure that all information, which is made available by the Company to the public, is correct, and is free from ambiguity. Information related to the Company and not in the public domain will be generally treated as confidential. Confidential information will be deemed to be a valuable asset and shall be treated as such by all employees and Directors. The Company shall be entitled to take all such steps as may be required to prevent any unauthorised disclosure of information. Funds:

Every employee shall be personally responsible for the Company funds over which he or she exercises control. Company funds must be used only for Company purposes. Every employee will ensure that he or she and the Company's agents and contractors take all reasonable steps such that the Company receives value for the Company funds and accurate and timely record of each and every expenditure is kept.

Records:

Every employee shall take necessary steps to preserve records as may be necessitated by law and the Company's business. Records include written documents, CD's, computer hard disks, email, floppy disks, microfilm, microfiche and all other media.

Compliance with Laws:

The Directors and employees shall take steps to ensure that the Company complies with applicable laws, regulations, rules and regulatory orders. They will also seek such compliance from the Company's contractors and agents.

All employees shall comply with applicable laws in India and non-compliance will render them susceptible to action by the Company.

Utilisation of Assets:

The Directors and employees shall ensure that the assets of the Company are utilised in the best interest of the Company and not for their personal benefit, unless specifically allocated for such purpose. Non-discrimination:

All other factors being equal, Directors and employees shall not discriminate on the basis of race, religion, colour, creed, sex, disability or marital status. Any form of sexual harassment is prohibited. Complaints of sexual harassment will be investigated and action taken against offending persons.

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Benefits:

No Director or employee shall derive any undue benefit from the Company which would not be otherwise available to him or her in the course of the Company's business.

Enforcement:

1. All the present Directors and employees of the Company shall be deemed to have accepted this Code from 31 December 2005. All other persons who may become Directors and employees shall be deemed to have accepted the Code from the date when they become Director or employee of the Company.

2. The Company Secretary shall be the compliance officer for the purpose of this Code.

3. All Directors and Managers will have to make an annual affirmation of the Code. Any person aware of violation of the Code may lodge a written complaint with the Compliance Officer.

4. The Company may suo moto undertake internal investigation or enquiry in respect of a suspected breach of the Code.

5. This Code may be amended by the Board of Directors of the Company.

Dulux paints Dulux is the world's leading brand of premium quality paint. It offers the DIY user or professional help and inspiration to achieve lasting good looks. Whilst Dulux product ranges vary from country to country, as they are tailored to meet local needs, Dulux's ambition is constant around the world - to help people create a beautiful environment with confidence.

The curtain comes down today on one of the great eras of British industry. After 82 years, Imperial Chemical Industries - the erstwhile corporate titan which developed the anti-malarial drug Paludrine, invented Polythene and Perspex, and revamped domestic paints under its much-loved Dulux brand - will officially move into new ownership: Dutch rival Akzo Nobel.

Akzo's first tricky decision will be whether to retain ICI's famous brand or consign what has become an emblem of British history to the scrapheap. The decision, an Akzo spokesman said, "will not be based on emotion but on what will be the best value for the company for the future".

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In Britain, where Akzo is already established and ICI's client problems five years ago ultimately led to its unravelling, an unsentimental break from the past is likely. Elsewhere, the ICI name still carries valuable currency - particularly in the former Asian colonies where Akzo has no notable presence.

"The brand still opens a lot of doors," an ICI insider said. "There's a lot of value there that they'll want to incorporate."

There will be no hint of a dilemma over Dulux or Glidden, ICI's paints brand in the US. Akzo is already in the process of selling Crown Paints in the UK to clear European Commission competition rules.

The Dulux brand, like the Dulux dog - a marketing tradition started with the old English sheepdog Shepton Dash in 1963 - will be a key part of the new Akzo.

But aside from Dulux, few echoes will remain of the once-great ICI. On January 7, five days after the £8bn takeover becomes effective, ICI's shares will be delisted.

At its height, the company's results announcements to the London stock exchange would bring the City to a halt, so important was its performance to British industry.

ICI's decline can be traced back to 1991, when the acquisitive industrialist Lord Hanson bought a 2.8pc stake. The threat of a takeover galvanised the board and, two years later - after seeing off Lord Hanson - they decided to crystallise the value he had spotted in its fast-growing pharmaceutical arm by spinning it off as Zeneca.

By then, the remaining ICI business was in the low-growth field of bulk chemicals, an area that was dominated by cheaper producers in the Far East.

As AstraZeneca - as it is now - went from strength to strength, ICI languished. A desperate search for growth convinced management to buy Unilever's flavours and fragrances chemicals business, but ICI overpaid horribly, amassing a £4.2bn debt pile that fatally undermined its ability to innovate.

When a computer glitch at Quest, the flavours and fragrances arm on which all hopes were pinned, caused clients to desert in 2003, the writing was on the wall. An £868m pension deficit sealed its fate.

One by one the divisions were sold off until Akzo was finally able to pick up the shrunken ICI, which consisted of the adhesive and ingredient products developed under its National Starch unit, and paint.

But ICI will live on in other forms. AstraZeneca was not the only separate company the industrial giant spawned.

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Imperial Metals Industry, today's IMI, was once a part of the great ICI stable, as was Brunner Mond, the alkaline chemicals group now owned by India's Tata conglomerate.

In fact, Brunner Mond was one of the four British chemical companies that were merged to create ICI in the first place, in 1926. Back then the company embodied the growth of new industries after the First World War, making a profitable living from volume chemicals with fat margins that supported both innovation and diversification.

In its glory years after the Second World War, having been vital to the war effort, ICI established itself as a formidable pioneer, testing new technologies and creating innovative products. Its plants and their miles of pipework came to dominate Britain's industrial landscape.

During the 1950s and 1960s, heavy capital investment helped it meet booming demand for the fast-growing plastic spin-offs from the petrochemical industry, while its pharmaceutical arm had breakthrough successes with the likes of beta blockers - one of the most important contributions to 20th Century medicine.

So numerous and important were its contributions that shorthand for describing the company became the all-encompassing and rather clichéd "bellwether of British industry". Sadly, the bell has tolled its final time.

Company History

1953 - On 5th November, a Declaration of Intention was signed by the Government of India, Imperial Chemical Industries Ltd., U.K. and I.C.I. (India) Pvt. Ltd., to form a company for the manufacture of commercial blasting explosives, safety fuses, etc. 1954 - The Company was incorporated as a public limited company in the State of West Bengal to implement the agreement and the Certificate of Commencement of Business was obtained on 19th August. The Company manufacture explosives and accessories of all kinds, blasting equipment, chemicals, Industrial and other preparation and fertilizers. 1955 - A technical collaboration agreement was executed between the Company and Imperial Chemical Industries Ltd., who agreed to act as consultants to the Company and provid the Company with the necessary technical information.

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1959 - 24,00,000 shares held by ICI Ltd., U.K. and 6,00,000 shares by the President of India. 1965 - 4,30,000 shares issued at a premium of Rs 12 per share; 57,000 sharesreserved for allotment to the resident directors and employees and3,73,000 shares offered to public. 13,73,000 shares offered to public.13,72,000 Bonus shares issued in prop. 2:5. 1967 - In Oct/Nov. 16,80,000 `A' series No. of Equity shares issued at par: (i) 76,00,000 shares to ICI Ltd., U.K.; (ii) 21,50,000 shares to IFCW; (iii) 19,00,000 shares to the President of India; (iv) 21,67,200 shares to members of the company other than the President of India and ICI Ltd., U.K. (v) 28,62,800 shares to public. `A' Series shares became pari pasu with the existing shares from 1.10.1970. 1975 - Industrial licence was received for the manufacture of 1,000 tonnes per annum of nitrocellulose, both blasting soluble and industrial grade. This plant was commissioned in August 1978. 1978 - Industrial licence was received, Collaboration agreements were signed with Imperial Chemical Industries Ltd., U.K., Benfield Corporation, U.S.A. and Toyo Engineering Corporation, Japan. - During Jan./Feb. 71,60,667 Bonus shares issued in prop. 1:3. After the bonus issue, 3,41,000 shares issued as rights (prem. of Rs 5 per share; prop. 1:34) to resident Indian shareholders. 1979 - The Company offered 5,00,000 redeemable partially convertible Secured debentures of Rs 500 each for cash at par as rights to equity shareholders in the proportion 1:58. These debentures carry interest at the rate of 10 1/2% payable half-yearly on 31st March and 30th September.

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1980 - The Company received a letter of intent for the manufacture of 100 tonnes of primary reforming catalyst at Panki, in collaboration with Imperial Chemical Industries PLC The boilers were commissioned inApril/May 1983 and generation of steam commenced. Letters of intent were in hand for the manufacture of 100 tonnes per annum of permethrin/cypermethrin for application as a cotton pesticide and for the manufacture of methyl chlorosilanes. 1982 - With effect from 1st October, the Alkali & Chemical Corporation of India Ltd. (ACCI), Chemicals & Fibres India Ltd. (CAFI) and Crescent Dyes & Chemicals Ltd. (CDC) were amalgamated with the company. - In terms of the Scheme of Amalgamation, the Company issued and allotted to the members of the merged companies without payment in cash 31,000-11% cumulative preference shares of Rs 100 each and 89,18,12 No. of equity shares of Rs 10 each as follows: - (i) 31,000-11% preference shares of 12,51,213 No. of Equity shares of Rs 10 each to members of ACCI in proportion of 1 Pref.: 1 Pref. and 2 equity: 7 equity respectively, - (ii) 59,86,908 No. of equity shares of Rs 10 each to members of CAFI in the proportion 4:5, fractional entitlement being sold and distributed at pro rata basis, and - (iii) 16,80,000 No. of equity shares of Rs 10 each to members of CDC in the proportion of 7:10. - At the option of the holder of any debentures, 20% of the face value of each debenture i.e. Rs. 100 out of Rs 500 held by him is convertible into six equity shares of Rs 10 each of the Company at a premium of Rs 62/3 per shares on 1st October. - If the Company makes a bonus issue of equity shares before 30 th June, the entitlement to equity shares of the debentureholder shall stand augmented in the same proportion in which augmentation took place in the issued equity shares capital of the Company consequent upon the bonus issue. - Debentureholders not exercising the option will be paid Rs 100 per debenture on 1st October, and the balance Rs 400 in 5 annual instalments of Rs 80 each on 30th September commencing from 1983 together with the interest accrued thereon. - 29,68,824 No. of equity shares of Rs 10 each were issued at a prem. of Rs 5 2/3 per share in conversion of debentures and were allotted on 1.10.1982. 1983

34

- The Company issued 15% non-convertible debenture of Rs 100 each for Rs 1,500 lakhs as rights to meet the requirements of working capitat and also the normal capital expenditure. 1984 - The turbo generator for the captive power plant at Panki was commissioned on 16th July. The project for the primary reformer catalyst at Panki was commissioned in September. - A letter of intent was received for the manufacture of 3 tonnes per annum of uinapyramine salts. - Industrial licences were received for expanding the paint manufacturing capacity at Rishra and for the Quinapyramine salts projects. - The name of the Company was changed from Indian Explosives Ltd., to IEL Ltd. Effective from 25th May, 1989, the name was again changed to ICI India Ltd. 1985 - A modified letter of intent was received for the manufacture of certain new drug items and for production of membrane cells for use in caustic chlorine manufacture. Another application was made for installation of an additional 450 tonnes per day ammonia stream with matching urea capacity of the Panki factory. This project was proposed to be set up based on the lattest energy efficient technology of ICI plc. U.K. - Pref. shares redeemed on 31.7.1986. 1986 - The letter of intent for expanding polyester staple capacity to 30,000 tonnes per annum was converted into an industrial licence. 1987 - New products such as Maxilite gloss and emulsion and a masonry paint were added to the existing range. Dulux colour centres were set up at major centres to provide advice in areas of home decoration. - The Company awaited Government clearance for production of membrane cells and coating of electrodes for use in caustic chlorine manufacture. Approvals were awaited for polyurethanes, toner resins projects and the fourth ammonia - urea stream project at Panki. The Company also proposed to apply for letters of intent seeking investment opportunities in other speciality and effects chemicals.

35

1989 - The Company introduced in the market new coil coating paint. - The foreign collaboration application for the manufacture of Accinox ZC, a rubber chemical was approved by Government. Application was made for a Letter of Intent for the manufacture of Methyl methacrylate and the related Polymers, dispersions and sheets, Government approval was also sought for introducing in India the latest generation synthetic pyrethroid, lambdacyhalothrin, with the existing licensed capacity for cypermetrin. Approval from Government was received for production of FM-21 membrane cells and coating of electrodes. 1990 - MRTP approval was received for the manufacture of high quality highyielding hybrid seeds for cereals and oil seeds. 1991 - The antiozonant `Accinox Zc' plant at Rishra commissioned. A letter of intent for methane diphenyl di-isocyanate was received. 1992 - With a view to reinforce a competitive edge, the range of bulk products was extended by the introduction of `Poweran' series. - Never decorative and refinish paints were launched thereby improving the operating efficiencies. - High quality hybrid seeds of sunflower and maize were launched. - A Memorandum of Understanding was entered into between the Company and Nalco Chemicals Company, U.S.A. (Nalco) for the manufacture of speciality chemicals and industrial application. - The Company and Nalco would each subscribe for upto a maximum of 40% in the equity capital of the joint venture company and the remaining shares accounting for 20% of the total equity would be offered either to Indian public and/or to financial institutions, depending upon the final scheme of finance to be approved by Govt. - The Company made an application for a letter of intent for the manufacture of 12,000 tonnes per annum of speciality chemicals. The new Company's factory was proposed to be set up at the Rishra, West Bengal.

36

1993 - New products in the growing segment of decorative paints were introduced. The introduction of `Dulux', `Maxilite' and `Cobra' brands increased the growth in paints volume. - The Company introduced `Tenoclor' - a fixed dose cardiovascular combination with diuretic in 1994-95. 1995 - Agrochemicals were transferred to a joint venture with Zeneca plc U.K. to ensure a strong market position through continued introduction of new products and technologies. - The Company was progressively replacing Nitroglycerine based packaged explosives with emulsion and for the purpose a new small diameter emulsion manufacturing facility was commissioned at Gomia. Formation of joint venture for initiating explosives with the Emign Bickford Company USA was being implemented. - The launch of international ICI brands `Weathershield' and `Duette' added strength to the production fortfolio. 1996 - A Joint venture with The Ensign Bickford Company, USA initiating Explosives Systems India Ltd. was formed. - A new paints plant at Thane was commissioned in December. 1997 - The new state-of-the-art 20 million litres per annum automotive refinish and decorative paint manufacturing facility was commissioned in March 1998 at Mohali near Chandigarh. - New products like Lignocaine Buprenorphine, Neostignine, Maxigard and ICIDIL were launched. - Imperial Chemical Industries plc., U.K. the holding Company, holds 2,07,76,213 No. of equity shares of the Company. 1998 - ICI (India) Limited is set to form a joint venture company with Herberts of Germany for manufacturing and marketing automotive paints in India and the Asia Pacific regions.

37

The two companies have already entered into a technical tie-up for manufacturing and marketing automotive coating in India and Asia. - ICI India, a subsidiary of Imperial Chemical Industries Plc of UK, signed a joint venture with Gujarat State Fertilisers and Chemicals (GSFC) to market acrylics products of GSFC. - ICI India Ltd. a partly owned subsidiary of ICI plc of the UK, has acquired the nitrocellulose business of Asha Nitrochem Industries Ltd. at Valsad in Gujarat. - ICI which has set up new paint factories at Thane, and Mohali in Maharashtra is slated to commission another plant at Chennai. - An agreement has been entered into with Zeneca Ltd. of UK for the sale of ICI India's 49 per cent shareholding in Zeneca ICI Agrochemicals Ltd. - The company has also entered into an agreement with Nalco Chemicals, USA, for the sale of its 40 per cent shareholding Nalco Chemicals India Ltd. 1999 - Initiating Explosive Systems India Ltd, ICI India's joint venture with The Ensign Bickford Company (EBCo) of the US, is all set to introduce the EXEL, Handide range of detonators in the country. - The company has signed an agreement with Orica Investment Pvt. Ltd., Australia, a subsidiary of Orica Ltd for transfer of its explosives business, including its shareholding in the share capital of IES India Ltd., to Indian Explosive Ltd., a joint venture to be established with orica Ltd. The company will hold 51 per cent of the issued share capital of Indian Explosives Ltd. and the balance 49 per cent will be held by Orica Ltd. 2000 - ICI India Ltd, subsidiary of ICI Plc of the UK, has embarked on a restructuring drive to focus on specialty products and paints to align businesses in line with the global parent. - ICI India Ltd, a subsidiary of British multinational ICI Plc, is open to acquisitions of brands and companies that synergise with its core competency and portfolio. - ICI India is exiting from the polyurethane business by selling off the business to Huntsman Corporation of US. The Company is also hiving off its motor and industry paint business into a 50:50 joint venture with Berger Paints. 2002

38

- ICI India is set to enter the flavours & fragrances business, and has commissioned an in-house study of the market. - ICI India Ltd has decided to redesignate the following Wholetime Directors with effect from April 01, 2002. 1. Mr R L Jain whose current designation is Wholetime Director and Chief Operating Officer will be designated Wholetime Director and Chief Executive Officer, Paints. 2. Mr M R Rajaram whose current designation is Wholetime Director will be designated Whole Director and Chief Financial Officer. -ICI India transfers pharmaceuticals business to Nicholas Piramal. -ICI India Ltd has informed BSE that Mr Suresh Chandra, a nominee of the Government of India, has resigned and ceased to be a Director of the Company w e f July 05, 2002. -Sudhir Krishna appointed as Director of ICI India. 2003 -ICI India announces change in the management 1. Mr Ashok Ganguly, Chairman has decided to retire 2. Mr Aditya Narayan, MD has decided to resign 3. Mr Rajiv Jain has been appointed as MD along with current role as CEO. -ICI India has reported a 34% growth in the net profit at Rs. 107.7cr. -ICI India has entered into an agreement with Orica Investment Pvt Ltd of Australia for the sale of its 51% holding in Indian Explosive ltd for a consideration of Rs.666.4 miilion 2004 -ICI India to seek members Approval to divest Nitrocellulose and Trading Businesses through Postal Ballot -ICI India Ltd has informed that Mr Sudhir Krishna, a nominee of the Government of India, has ceased to be a Director of the company wef January 21, 2004. -ICI Paints introduces Supergloss 5-in1, a unique enamel paint for wood and metal surfaces. -Nitrocellulose and Trading business transferred to Nitrex Chemicals India Pvt. Ltd. -Unveils new acrylic latex based paints Dulux Weathershield Max and Tileshield for exterior walls and roof tiles respectively in the Kerala market

39

2006 -ICI India, paint division, launched its Dulux ColourFutures 2006, new range of shades based of annual forecast of international colour trends, in the city on March 18. -ICI Paints has launched Inspira, 4-wall finish super premium paint, in the Kerala market. 2007 -ICI India Ltd has informed that the registered office of the Company has been shifted from Chowringhee Road, Kolkata to Middleton Street, Kolkata with effect from January 08, 2007. - ICI India Ltd has appointed Mr. Sandeep Batra as a Whole-time Director of the Company with effect from April 01, 2007.

Health & Safety Practices

"No injuries to anyone, ever" is our safety vision statement, We are committed to providing safe workplaces and knowledgeable employees. From the time you enter reception at any Dulux site you are aware of the company concern with safety.

Many areas may not be entered without safety glasses, safety shoes, protective clothing and/or hard hats. Other visible signs of safety concern are first aid and emergency equipment strategically located around the site. These include fire extinguishers, fire alarm buttons, first aid boxes, eyewash bottles and emergency eyewash stations and safety showers ( for emergency use only), to wash major spillage's of chemicals resins and solvents off the body.

AcrylicPaints:

Dulux Australia's development of environmental-friendly water-based paints as a replacement for many solvent-based paints has been under way since the 1960's. Dulux Australia is now the largest manufacturer of water-based paints. The benefit to the environment is obvious. When solvent-based paint dries, a large quantity of solvent

40

evaporates into the atmosphere, contributing to air pollution levels. On the other hand, water-based paint emits mainly harmless water vapour into the air.

Dulux Australia will continue to introduce the latest developments in environmental friendly paint.

WasteManagement:

Correct waste disposal is an essential and important part of safe working practice. Every endeavour is made to minimise the quality of waste generation and hence reduce the associated problem of waste disposal.

A thorough and environmental friendly strategy for dealing with chemical waste has been in operation for a number of years. In general the following options are available:- Recycle within company operations, e.g. reclaiming solvent through Waste Plant or Brighton still .

Attempt to rework or convert to a safer material for disposal Off-site disposal by EPA Approved Licensed waste contractors for incineration on land or approved land fill areas.

Transportation With Safety:

The safe transportation of Dulux products from plants to wholesale and retail outlets and then by consumers has long been one of the company's high priorities.

In recent years, Government Dangerous Goods regulations have meant even safer transportation of domestic and industrial paints and other liquids, especially those which are flammable. For instance, the possibility of spillage and its environmental impact has been decreased by improving the design of paint drums so they can survive a 1.5 metre fall from the back of a truck without spilling.

When leaving our factories, Dulux products are usually packed in shrink-wrapped palletised cartons and delivered on enclosed vehicles, further minimising the potential for spills.

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ANALYSE CUSTOMER RESPONE

42

Q.1 Do you use the paint?

Ans. Yes = 80  

HIG MIG LIG

BASIS ON INCOME 34 38 8

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Observation:- In our research we observed that most of the people (43%) who are live in upper class they are used color,(47%) who are belongs to MIG and 10% who are live in LIG. Those people who live are not use paints as MIG use because they are not involve in their construction work.

Q.2 Which brands do you prefers?Ans.  

brands PreferenceAsian paint 42Nerolac 7Berger 7Dulux 13Asian + Berger 1Asian + Dulux 2Asian + Other 2Asian + Nerolac 2Berger + Nerolac 1others 3

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Observation:- In our research we observed that 52.5% People are used Asian paints, 8.75% people use Nerolux and Berger, Dulux is used by 16.25%, Asian and Berger 1.25%,asian+dulux, Asian other, Asian+ Nerolac 7.5%and rests are 3.7% respectively. Asian paints are country leading paints company who dominate the paint market.

Q.3 From where do you prefer to purchase?

Ans.

Dealer Wholesaler retailerWILLINGLY TO PURCHAGE 13 24 39

45

Observation:- Many people bye their product from retailer (51%), but still some customer purchase their product from wholesaler because of paints some times use in big scale, due to some discount customer wants purchase paints from wholesaler. Some wholesaler sometimes give home delivery also so its make good impact on customer. Some customer wants to bye their product from dealer also but dealer are not available in every where.

Q. 4 Why do you like this brand?Ans.

Reason PreferenceShine 25Reasonable price 16Not sticky 4Rain 15All thing 1Shine+Price+not sticky 1Shine+Price 7Shine+Price+rain 2Price+Not sticky+rain 1Shine+Not sticky 2

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Price+Rain 2Price+Rain 1

Observation:- More people are concern on their product quality, paints is a decorative product people are mare concise its attribute, that’s why more people purchase their product for its shininess. But some people choice their product for its price some people are referred their product for their product protect their building from water.

Q.5 In which media have you seen the ad of your brands?

Ans.

Mass communication Rersponse Newspaper 5T.V. 42Radio 2Hoardings 2Others 5Newspaper+T.V.+Hardings 1T.V.+Hardings 2Radio+Other 1Newspaper+T.V. 9

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Al 5Radio+Hardings 1T.V.+Radio 4T.V.+Hoardings 1

0

5

10

15

20

25

30

35

40

45

response

new spaper

T.V.

radio

hoardings

others

new spaper+T.V.+hoardings

T.V.+hoardings

radio+other

new spaper+T.V.

all

radio+hoardings

T.V.+radio

T.V.+hoardings

Observation:- As far as advertising is concern most of people (53%) are told that they are know about product from T.V. , 6, %,3%, 6%,1%, 2%,6%,1%,5% are newspaper,radio,other and hoardings respectively. Though T.V. is covering mass.

Q.6 How do you rate the ads? Ans.

EXCELLENT VERY GOOD GOOD FAIRCONSUMER 20 36 20 4

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Observation: Which media generally they preferred they rate it 45% is very good,25% is excellent, 25% told its good and 5% told its fair, its indicate that teir must to need some change in their advertisement also.

Q.7 How many member do you have in your family?Ans.

4 6 8 10

CONSUMER 31 37 9 3

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Observation:- As you have seen the bar chart which indicate the highest consumer response in the 6 member and the rest are not similar.

Q.8 What is your family income?Ans.

   10000 15000 20000 25000

CONSUMER 8 9 21 34

50

Observation:-

As per income paints is used in family there are various type of paints is there like plastic color, distemper and many varities is there, as per income its used by customer like HIG group used plastic color, MIG used normal Distemper, LIG also used clour but they used simle white clour.

Q.9 How much paint do you require?Ans

KILOGRAM

  1 2 4 10

CONSUMER 8 11 25 36

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Observation:- Use of paints is used in big scale or in small scale also, as per their needs they wants, its include the family number, size of their flat or it used base on their number of times be used.

Q.10 By whom are you persuaded to purchase this brand?Ans.

FAMIY NEIGHBOUR MEDIA FRIENS

CONSUMER RESPONSE

37 14 17 12

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Observation:- Paints is kinds of product which are reflect its quality by it self so most of people are persuade by friends or those people who are leaving around individual.

Q.11 For how many years are you purchasing this brand consistently?Ans.

YEARS

2 4 6 8

CONSUMER 24 22 16 18

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Observation:- According to our research we find that customer are not want to change their brand frequently for that 23% people are used their product consecutively 8 years.

Q.12 What is the market share of paints recently?Ans.

  ASIAN PAINT

NEROLAC BERGER DULUX

THROUGH SURVEY

48 8 10 14

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Observation:- In our depth research we observed that Asian paints is market leader, Asian paints market share is near about 48% at the same time Nerolac, Berger, Dulux enjoy 14%, 8% and 10% respectively.

Q.13 What is the customer complain rate?Ans.

BRANDS ASIAN PAINT NEROLC BERGER DULUX

COMPLAINT 2 1 1 0

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Observation: When people are more engaged in certain product they are find some problem from that product. According to product Asian paints have very minor complain they have only 50% complain from total complain.

Q.14 What is the customer satisfaction?Ans.

BRANDS ASIAN PAINT NEROLEC BERGER DULUX

SATIFACTION 46 13 7 10

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Observation:-

For premium quality and other facility, availability Asian paints give more satisfaction to customer. We are made our research in 100 people out of 100 people 61% are satisfied in Asian paints. At the same time Nerolec, Berger, and Dulux have 13.7%, 10.13% and 7.9% respectively.

Q.15 How many individual wants to change their brands?Ans:

BRANDS ASIAN PAINTS

NEROLAC BERGER DULUX

WILLING TO CHANGE

3 1 0 2

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Observation:- As paints is a durable goods people are not wants to change their product frequently. As far as Asian paints is concern it is more popular brand out of 100 observation we are find only 3 person is wants to change their product. Satisfaction of paints is concern with after sale service.

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ANALYSIS RETAILER RESPONSE

Analysis Retailer Response

Q.1 For how many years have you stocking paints?Ans.

  1-2 Yrs 2-5 Yrs More than 5yrs

Response 1 4 7

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Response

1-2 yrs8%

2-5yrs33%

more than 5yrs59%

1-2 yrs

2-5yrs

more than 5yrs

OBSERVATION:-

This graph exhibits that most of the retailers belong to more than 5 years category and having the percentage of 59% of overall survey. The rest retailers have the 33% of 2-5 years and 8% of 1-2 years.

Q..2 which brand of paints does you stock?Ans

  Asian Paint Nerolac Berger Dulux

Retailer 1 1     1

Retailer 2 1 1 1 1

Retailer 3 1 1 1 1

Retailer 4 1      

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Retailer 5     1  

Retailer 6 1 1 1 1

Retailer 7 1 1 1  

Retailer 8 1 1 1 1

Retailer 9 1      

Retailer10   1    

Retailer 11 1 1 1  

Retailer 12   1    

Retailer 13 1 1    

Retailer 14 1 1 1 1

Retailer 15 1      

Retailer 16     1 1

Retailer 17 1 1   1

Retailer 18       1

Retailer 19 1   1  

Retailer 20   1   1

Observation:-

This graph exhibits the market share of each brand of paints. Asian paint posses the 70%, Nerolac 60%, Berger 50%, and Dulux 50%. According to sources this is the perception of each retailer who is using more than one brands or even one.

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Brandsretailer 1retailer 2retailer 3retailer 4retailer 5retailer 6retailer 7retailer 8retailer 9retailer 10retailer 11retailer 12retailer 13retailer 14retailer 15retailer 16retailer 17retailer 18retailer 19retailer 20

Q.4 Do you have any window display?Ans

  Yes No

Response 11 9

62

Response

55%

45%yes

no

Observation:-

According to survey, retailers told us they are deploying the window display if it is provided by manufacturer so 55% retailers say yes and rest 45% say no.

Q.5 Who plays the window display?Ans

  Manufacture Retailer

Played by 15 5

63

played by

manufacture

retailer

5

15

0

5

10

15

manufacture

retailer

Observation:-

This graphs depicts that 25% of retailers are playing the window display material and the 75% of wholesalers are playing it.

Q.6 If no display materials is being used, how do let the customer to know About the paints?Ans.

  Yes No Advertisement

Response 6 10 4

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Response

30%

50%

20%

yes no advertisement

Observation:-

This is nothing but it is perception of retailer who told us If the material is being used then consumers can automatically understand while seeing and it’s ratio is 20%. If that material is not being used then the message is conveyed by advertisement that’s percentage is 50% and no is 30%.

Q.7 Are you satisfied of your existing level of display set?Ans

  Yes No

Response 13 7

65

Response

65%

35%

yes no

Observation:-

Retailers told us that they are satisfied through display which is of 65% and rests are of 35%.

Q.8 Are you satisfied with the existing level of advertising done by manufacture?Ans

  Yes NoSatisfaction 17 3

66

Satisfaction

85%

15%

yes

no

Observation:-

The rate by which retailers have been satisfied by the manufacturers in order to performing the advertisement is all 85% and rests are 15%.

Q.9 Usually, when did consumer ask for paint?Ans

  Season Random

Consumer 13 7

67

Consumer

consumer, 65%

consumer, 35%

season random

Observation:-

The retailers told us that the sales are affected 35% by randomly and the rests are affected 65% by season wise. So we have observed that company prefer to produce the huge production at the time of season like Diwali.

Q.10 Do you give credit to your customer for other purchase?Ans

  Yes No

Retailer 13 7

68

Retailer

65%

35%

yes

no

Observation:-

We observed that the retailers prefer to enhance their sales so they will like to credit to their customers. In this survey, the retailers are providing to credit to their customer. The percentage of providing credit is 65% and not providing credit is 35%.

Q.11 Do you provide home delivery to your customer?Ans

  Yes No

Service provider 7 13

69

Service provider

35%

65%

yes no

Observation:-

The 35% of retailers are providing home delivery and rests 65% are not rendering it to their customer.

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Major Findings

Major Findings

Asian Paints (India) is targeting a 10 to 12 per cent growth in net sales for the financial year ending March 2003. The company expects to maintain its margins at current levels and hopes to achieve a return on capital employed (ROCE) of at least 35 per cent over the next two years. This was disclosed by Ashwin Dani, vice-chairman and managing director, Asian Paints, at an analyst meet held in Mumbai.

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On a consolidated basis, Asian Paints will perform well in 2003, both in top line as well as bottom line. International operations will generate profits after minority interest,` Dani said, adding that only two months sale of Berger International, which the company recently acquired, will be considered and less than one month sale of SCIB Chemicals will be considered while consolidating the accounts.

Goodwill write off due to the new acquisitions will be Rs 5 crore. Dani added that Asian PPG industries will add to the bottomline and the consolidated profits will have no significant impact on the net profit of Asian Paints (India). The company will also maintain its dividend payout ratio (which is at 0.48 to 0.50) in the years to come, Dani said.

On the Berger International acquisition, senior company officials said that lack of direction from the top was the main reason for the poor performance of the company. The changes which need to take place will be looked at after January, however some changes have already been made. Dani said that we are the process of studying the operations of Berger International in the 11 countries it operates in and wherever there are gaps either existing Berger brands or Asian Paints brands will introduced but that process will take time.

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PROBLEM AND REMEDIES

PROBLEM AND REMEDIES

Problem Cause Remedies

Patchiness or uneven finish

Due to highly absorbent nature of surface Apply an extra coat of primer or use well-sealer.

Cracking or Chipping of paint film

Due to excessive use of putty/due to very thick coat of paint/due to a defective surfaces.

Regulate use of putty and paint.

Flaking-off of paint film

Due to improper application of primer coat over putty, and not being completely covered/ due to application of paint on insufficiently dry surfaces/ due to shrinkage or expansion of a surface causing the paint film to move.

Let there be be no gaps in covering putty with primer coat ensure that the surface is dry and clean.

Efforescence or formation of white powdery deposit on

Due to salts present in building material like brick and mortar, which surface later on

Give a long time gap between plastering and painting (about 6 months including one monsoon)

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walls after painting use paint with a porous film like emulsions and distempers.

Blistering or Swelling of paint

Due to trapping of air, moisture or solvent between the surface and the paint film

Allow surface to be fully dry before painting; avoid painting under direct sunlight

Cissing or tiny craters

Caused by oily or greasy surface/due to water based paints being applied over gloosy or smooth enamel paints.

Clean the surface thoroughly with soap solution and water.Roughen enamel paint with Sandpaper or use a barrier coat of matt primer.

Non-drying or slow drying of paint film

Due to humidity, poor air circulation, low temperature or presence of oil or grease on the surface/due to alkalinity of the surface.

Reduce the impact of atmospheric conditions to the extent possible; scrub oil or grease offwith a rag soacked in white spirit and wash with water and soap.

Loss of glossDue to poor surface preparation/due to presence of oil or grease/due to over thinning of paint.

Clean surface thoroughly and take all recommended steps for surface preparation.

Brush marks Due to under-thinning of paints/due to poor application of final cost of paint/due to poor quality brush

Ensure paint is applied using the right viscosity and a good brush

Bittiness Caused by dirt from atmosphere on the surface or from brushes that are inadequately cleaned/due to bits of

Use clean brushes and paint on clean surface; stain the paint through a cloth before use.

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STRATEGY AND RECOMMENDATION

The Asian Paints Advertising Strategy

can be seen from the Creative Brief, the ad is strategic in nature, being a part of the Asian Paints campaign promoting Asian Paints as the brand with the largest range of colours and one that will satisfy the consumer and is able to give him precisely what he wants. The advertising through the campaign is single-minded and focussed in its proposition, communication and target audience. The campaign included TVCs and other print advertisements as part of the same communication.

At the time, Asian Paints had 13 brands with over 1,100 shades, targeting different niches. They were beginning to realise that some brands like Apex emulsions, Royale interior emulsion, Apcolite and Touch Wood had high recall; none except Tractor distemper were almost generic. Therefore, they decided to promote the corporate image and the various brands under their umbrella brand ‘Asian Paints’ through their communication, pushing the generic Asian Paints brand instead of pumping in investment on individual brands. This leveraged on the advantage that Asian Paints was the one company in this low-involvement segment where people actually asked for the paint by brand, breaking away from the earlier tradition where consumers were not known to be very brand-conscious in this low-involvement segment and, more often

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than not, relied on what the painter bought for them within the budget allocated, being more specific about the colour than its source.

Product: Asian Paints Colour World is the brand name for the one-stop colour shop of Asian Paints, which are unique paint shops where shades are generated with the help of a computer with software to choose and select 1,511 shade combinations, designed to reach consumers in a direct `dil se' style.

Target Audience

Demographics

Region :- India, urban population Occupation :- Service/working professional/self-employed

Gender :- Male

Religion :- Insignificant

Social class :- Upper Middle and upwards

SEC :- B and upwards

Family life cycle :- Middle aged

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Behavioural

Occasions :- When looking to paint the interiors of his house (usually there is an upsurge with new construction and during festive seasons like Diwali and Holi) User status :- First time user

Loyalty status :- Not defined

Readiness Stage :- Relatively informed

Attitude toward product :- Low-involvement

Attitude toward brand :- Trusting, has high-recall value

Key Consumer Benefits

Proposition :

The outlet allows the consumer to get ‘just the right shade’

Support :

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Asian Paints has the largest range of colours in the market (e.g. Over 127 shades of green, 206 shades of blue, 118 shades of yellow and many others) and the outlet allows the consumer to choose any among a vast range of colours with the help of a computer.

"Marketing Strategy to Penetrate the Distemper & Acrylic Emulsions Paint Segment"

Of the many drivers of new brand acceptance the three that emerge from factor analysis are as under:

- Advertisement

- Benefits

- Business Rationale

Drivers of New Brand Acceptance :

The dealers driven by advertisement can be largely said to be seeking and relying on marketing support. In their view, and rightly so, the quick turn toward an FMCG like industry requires high visibility and brand recall. "How can we push a product which has no visibility", was the resounding refrain.

The second segment driven by the Product focuses on the functional attributed of the offering - quality, range, ease of payment, and a manufacturer that makes it easy to push the product.

Brand Perception:

Owing to low level of knowledge and involvement, like a FMCG-good, the three sets demonstrated stark inability to differentiate between any two brands confidently on various attributes like Quality, Coverage and Reputation. High level of loyalty rather, stickiness was observed as each respondent was seen to rate a chosen brand the highest on all attributes with responses like, "har tarah se hi who achcha hai". Consumers were unable to name any brand for coverage, further underlining low involvement and easily influenced nature of paint purchase. Due to the said attributes displayed by the data collected, the only conclusion that can be reached is that high levels of commitment is seen across groups and once chosen, the same is identified as the "ideal" brand. Asian Paints, followed by ICI and Berger have emerged as Best, Good and Average respectively, though the difference between Berger and ICI is marginal only. Interestingly, the responses have brought forth the fact that Tractor, Dulux and Bison have grown as brands outshining their manufacturers - Asian Paints, ICI and Berger respectively. 4.4.d. Brand Recall

Quality

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To compete against majors like Asian Paints and ICI to name two, the product quality must leave no room for grievance. However, complaints with the DDL distemper and emulsions studied exist and the same have been summed hereunder

Sq. ft. Coverage Whiteness, Glaze & Feel Lump Formation Hardness of Mixture Deteriorated QualityDamaged Packaging DDL Synthetic Distemper DDL Acrylic Distemper DDL Contractor's DistemperDDL Wall EmulsionDDL Upscale Ceiling Emulsion

Product Mix

The Product Mix of Pidilite Industries Ltd. is mammoth in all respects - width, length and depth - but the same cannot be said of the Paints Division under PIL. Expansion of the product portfolio on all counts has emerged as a common refrain across categories with respect to suggestion. 4.6. Reasons behind less than optimum penetration, application and usage

Marketing strategy:-

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The decorative paints segment displays some of the classic attributes of FMCG products.

Since the user-base has no geographical boundaries, a company's ability to penetrate new markets and improve product awareness would be the key to maintaining market share. The future prospects, thus, depend on the marketing and distribution strategy plays a crucial role in future prospects.

Distribution is where Asian Paints is strongly placed. Its dealer network of 14,500 is the largest. It is closely followed by Goodlass Nerolac with 11,000 dealers. Berger Paints and ICI (India) are way behind in terms of market reach. Another major marketing strategy is offering value-added services to consumers. For instance, colour vending machines have been used with great success. Companies that have the ability to provide more choice to the consumers, without significantly impacting the expense budget, are likely to attract more customers.

The product reach also depends on the level and depth of the companies' promotional activity. For the paints industry, however, what matters more is the brand rather than the product. Therefore, the level of ad-spend by the companies should give an idea of the brand-building effort. For instance, Asian Paints registered the highest increase in ad spending (31 per cent growth) in the year ended March 2000 compared to March 1999. Berger Paints recorded a 22 per cent growth. Goodlass growth declined by around 2 per cent, while that of ICI India slipped 30 per cent. But whether the ad-spend has helped the company in 2000 is a moot point.

The sales generated for every rupee of expenditure should give us an indication of the effectiveness of the ad-spend. For every Rs 1 crore spent on advertising, Goodlass Nerolac managed to generate sales volumes of Rs 54 crore, Rs 8 crore more that it managed in 1999. Surprisingly, both Asian Paints and Berger Paints recorded a reduction in sales generated as a ratio of spending on advertisement. Asian Paints managed to generate Rs 38 crore in 2000 compared to Rs 42 crore in 1999. Similarly, Berger Paints generated Rs 48.50 crore in 2000 against Rs 50 crore in 1999.

Nerolac Paints unveils strategy; Bachchan is brand ambassador

Goodlass Nerolac Ltd, one of the largest paint manufacturers, today unveiled its new brand strategy. In order to reinforce the new positioning, the company has pioneered a

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trend in the paint industry by signing legendary superstar Amitabh Bachchan as its brand ambassador.

Says Nerolac Paints managing director H M Bharuka: "We are leaders in the industrial segment. We now seek to leverage our technological expertise to the decorative coatings segment. Hence we are seeking to reposition Nerolac as a larger than life brand that is omnipresent. Now is the time to make Nerolac the preferred brand in the decorative category with the values of excellence, dynamism, inspiration and innovation."

Adds Nerolac Paints vice president (marketing and sales) Anuj Jain: "We needed Nerolac to reach out to the masses. Bachchan thus was an obvious choice, a legend that every Indian identifies with. He embodies the same values Nerolac stands for. The campaign will roll across the country in various local languages."

Says Bachchan: "I would like to take this opportunity to tell you that I am really proud to be part of the Nerolac family. Through this association, we will continue to do what we do best — colour the lives and dreams of people."

The new catchline, 'Yeh rang hai jo har ek ki zindagi ko choota hai', by Big B is expected to capture consumers' minds. The campaign will involve television commercials, print ads, outdoor media and below-the-line activities. The TVC has been woven around the vastly popular jingle of Nerolac, 'Jab ghar ki raunak badhani ho', as a soothing undertone to the Big-B presence. The campaign has been created by Interface Communications.

Goodlass Nerolac Paints has been at the forefront of paint manufacturing for more than 80 years, pioneering a wide spectrum of quality paints. It is the second-largest paint company in India and the undisputed leader in the industrial segment, having a turnover of Rs 791 crore.

The company has five strategically located manufacturing units all over India and a strong dealer network of over 11,000 dealers across the country. The company manufactures a diversified range of products ranging from architectural coatings for homes, offices, hospitals and hotels to sophisticated industrial coatings for most of the industries.

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CONCLUSION

CONCLUSION

At the end, we are expressing our opinion about the paint. After completing our research we have observed that Asian paints is the best response given by consumers who use it much more times within one time at 2-3 yrs. It provides customer satisfaction in relation to not affect by rain, good quality and not sticky whatever customer wants.

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As far as we observed the response of retailers they are also selling the Asian paints in much more quantity.

Bibliography

Market research through questionners

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Internet (company website)

Guidance taken from Dr. J.N.S. Chandel

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