ACKNOWLEDGEMENT & DEDICATION
In the name of Allah, the Beneficent, the Merciful
We are highly grateful to Almighty Allah who gave us power to
complete this project. The project was about the ICI Pakistan Ltd,
Paints Business. The basic focus was to know the marketing mix
strategy of ICI Paints and SWOT analysis of ICI and Berger Paints.
We are very thankful to ICI Paints Business Sahiwal, for their
cooperation and guidance which they grant us for completion of the
project. Moreover, their timeto-time guidance in preparing project
report was also been a great aid. And of course our parents and
teachers encouragement cannot be ignored and we dedicate this
project to our beloved parents and honorable teachers.
TABLE OF CONTENTS
EXECUTIVE SUMMARY INTRODUCTION SUMMARY OF OPERATIONS REASON FOR
CHOSING THE TOPIC HYPOTHESIS STATISTICAL TESTING HYPOTHESIS TESTING
LITERATURE REVIEW FROM SYNTHETIC TO HYBRIDS SEEDS PROBLEM
DEFINITION CORN MARKET FODDER MARKET SCOPE OF STUDY DATA COLLECTION
DATA ANALYSIS OF CORN MARKET DEALERS RESPONSE GROWERS RESPONSE
INTRODUCTION TO THE COMPANY
ICI Pakistan continuously strives to be the preferred choice of
allot of customers and consumers. This is a consequence of an
unrelenting focus on the changing needs of our customers and
proactively addressing their issues and problems. Putting a premium
on innovation in product and services, maintaining stringent
quality standards is the raison-deter ensuring we deliver value to
our customers.
PolyesterBusiness investment in a new plant is an endeavor to
improve the consistency of its product quality. The Business focus
on customer needs led to the development of a new fiber, delivering
improved performance on customer s lines called Polyester Viscose.
Production of variants such as super white is to cater to specific
needs of customers seeking innovation in their products. Our
technical service team truly differentiates us in the market.
Focusing on optimizing mill conditions to enhance productivity,
running trials to improve quality and trouble shooting successfully
has earned. ICI the reputation of being the Technical Experts.
Soda AshBusiness, where the customers and the industry are
challenged by increasing costs, the focus has therefore been to
minimize the impact. Initiatives launched in logistics and key
account management for the customers have assisted them in
cutting
down on working capital by reducing inventor y, reduction in
warehousing and storage costs and distribution expenses.
PaintsBusiness has brought to the consumer the world of colours.
The introduction of over six thousand colour options, supported by
our unique colour consultancy services and our colour studios have
opened up a vista of imaginative colour solutions to our customers.
Pioneering innovative products and services has been the driving
force behind our zest for excellence. Our Automotive customers are
provided with the latest in Japanese technology for their coating
solutions. Working with them to the minutest detail, they have also
benefited in cost reductions with conversion of supplies in bulk.
Our refinish customers are trained at a state of the art Training
Centre, the only one of its kind in South East Asia.
Life SciencesPharmaceuticals Division recently entered the
Branded Generics Market with Cefixime, plugging the gap for high
quality antibiotics at competitive rates. The launch of Cefixime
would provide both the customers and the consumers a viable option
for a quality third-generation Cephalosporin. Besides its
affordability, each pack of ICEF comes with sterile water for
reconstitution of the solution. This unique benefit gives the
medical community the confidence to prescribe the drug to the
patients, most of whom are not very aware of the importance of
correct mixing of the product in water to achieve the required
concentration.
ChemicalsBusiness has introduced customer focused Key
Performance Indicators in its supply chain which are monitored to
improve delivery times and facility of tracking of consignments.
The focus on business development initiatives to provide cost
competitive sourcing options for the customers while maintaining
the quality promise has enabled ICI Chemicals to be at the
forefront of introducing new products and ideas to its customer
base, hence facilitating technology transfer to the local industry.
We at ICI Pakistan believe that our future is dependant on the
success of our consumers. We partner with them to ensure that the
maximum possible potential is realized by all arranging training
workshops and seminars. We continue to drive our commitment to
safety, health and environment for all our customers and suppliers
to ensure that our society as a whole values the importance of our
lives and the need to protect the environment.
To Achieve Our Mission We Will:
Give our highest priority to Health, Environment and On Ethical
business behaviors. ~ Make sure our product offer gives value to
the customer in Dependable supply, reliability and consistent
quality. ~ Make sure our service levels help us foster long-term
relationships With customers and suppliers. ~ Aim to be best in
class in our operating efficiencies and costs And grow the business
by selectively increasing capacities And introducing new products
that meet customers needs. ~ Develop and retain a team of capable
people Who are enthused to deliver the mission?
SSH&E Nothing we do is worth getting hurt for. Safety,
Health and Security of Employees and Contractors is paramount to
any other consideration. We shall act responsibly to protect the
environment and participate in the well-being of the communities we
operate in. We shall demonstrate respect and care while dealing
with our customers, our suppliers and the general public. Valuing
People Our competitive edge. We shall value our people our
competitive edge, respect the individual, value teamwork and,
without discrimination, recognise and reward performance.
Innovation Creativity for improvement. We shall seek new and better
ways to improve products, services and processes. Business
Excellence Better, faster and best value. We shall lead in quality,
speed, and cost competitiveness. We shall maximize returns for
shareholders and deliver sustainable growth. Customer Obsession
They pay our bills. We shall understand customer needs and deliver
on our commitments and show adaptability and agility in response to
change.
Transparency Beyond reproach. All our systems are transparent
and can stand the test of Scrutiny. Ethics Uncompromising
integrity. We shall demonstrate uncompromising integrity in
ourbusiness dealings; be fair and honest; be free of bias; and
auditable in all aspects of our business, ensuring conformity with
our code of conduct and regulatory standards.
Further investment in Soda Ash capacity expansion (65ktpa) under
evaluation. Manpower productivity increased by 10%.
The Company crosses the Rs. 2.0 billion mark in operating profit
and profit before tax for the first time In Companys history.* o
Gross Profit up by 22% compared to last year. o Operating results
and profit before taxation higher by 35% and 31% respectively over
2005. o Adjusted earning per share** up by 31% over 2005. Record
production and sales volume achieved consecutively for the second
time in the Soda Ash business for both Soda Ash and Sodium
Bicarbonate. Investment in three major projects at a cost of Rs
3.3
billion: Asset Modernization and Improvement Project (AMIP) in
Polyester, Soda Ash 50 ktpa expansion and acquisition of
manufacturing facility of Fayzan Manufacturing Modaraba (FMM).
Paints Business Performance 2006Paints Business delivered an
exceptional performance during the year 2006 with all its segments
posting double-digit improvement in sales volume on the back of GDP
growth and enhanced activities in downstream construction And
automobile sectors. In the Decorative segment, competitive brand
strategy, channel expansion and launch of new products assisted the
Business in achieving higher sales volume over last year.
Similarly, the Industrial segment showed a solid performance in
2006 on account of growth in Motor, Motorcycle and Tractor sectors.
The Refinish segment also delivered a strong growth in sales volume
compared to last year and entered the Middle East market with the
commencement of commercial exports.
ICI PAINTS BUISNESSICI Pakistan paints business vision is to
further strengthen its position as the leading paint company in
Pakistan and drive its operations to world class standards with a
relentless commitment to Safety, Security, Health & environment
and Business Excellence. It is committed to deliver innovative
products and services whilst driving improvement in processes and
systems to add value to its customers, employees and working
environment. The business has integrated into its workplace the
values and behaviors of ICI Pakistan and these have been
communicated and accepted in various interactive sessions with all
employees. These values and behaviors now form the way of life for
all those who work for the paints business All the three business
today have embarked on programs which focus on the consumer and
customer needs. The focus is to understand the needs of our major
stakeholders. Pursuing research and market understanding and
delivering high quality product and services form the nucleus of
creating competitive advantage in the market place for the paints
business. The Decorative segment of the business is driving a
strategy of providing a super premium range of products with a wide
color range under the Dulux brand that fulfill the growing needs of
the market. Pentalite Classis was the first launch in this
category. A super premium plastic emulsion with five properties of
resisting hairline cracks, high
scrub resistance, better flow, anti fungal and luxurious finish
was very well received by the consumers, architects and painting
professionals. After its initial success in the furniture market
segment the Dulux Woodcare range is now available in the retail
segment also. In one stroke the consumer can now get the shade of
wood that he or she wants.
Expanding and improving service levels have been the major
thrusts of the Decorative business. After the great success of the
first color studio in Karachi a second color studio was opened in
Islamabad. Now consumers in Islamabad also have the platform to
experiment with colors, come up with new contrasts and combinations
that reflect their persona and lifestyle projecting their color
aspirations into their living environments. The housing and the
color consultancy team has been re structured with more feet on the
street and proper training to help consumers with new color trends
and interior design solutions. The Industry & Automotives
coatings business of ICI paints besides gaining strength in the
local market also aspires to become a regional player. Self
leveling epoxy floor coatings have been the new addition in the
product portfolio and have been well received by major customers.
After the initial success of the Turn-Key project management
concept with one of the leading customers where a one shop solution
in terms of design, fabrication and commissioning of automotive
paints is done by ICI, the business is now offering it to other
customers also. The Refinish business continues to grow in the
local market. It also set sights on becoming a regional player. The
top coat color range was launched under the Dulac Auto paints
umbrella along with all its ancillaries. To cap on the mid and low
tier thinner
market an acrylic thinner was launched in mid tier and a GP
thinner was launched in the low tier. In pursuance of its channel
strategy to increase its numeric coverage the business expanded its
network to 491 dealers while 12 additional SSS dealers were made in
2006
DEFINATION OF PAINTCoatings applied to a surface or substrate to
hide, decorate, protect and perform other specialized function
PAINTS CLASSIFICATION
Paint
Solvent borne
Waterborne
Decorative
Refinish
Motor & Industry
Decorative
COMPONENTS OF PAINT
Pigments
Binder
COMPONENTS OF PAINTS
Solvent
Additives
PRODUCT RANGE(Under Coats)
Dulux-Dulux Prime-on -Dulux Wall Putty Water Based -Dulux Red
Oxide Primer -Dulux Universal Primer Grey
DECORATIVE PRIMERS(Under Coats)
Glidden-Glidden Ultra Prime -Glidden Wall Putty Water Based
-Glidden Wall Putty Solvent Based -Glidden Red Oxide Primer
Decorative Solvent Borne Products(Top Coats)
Dulux Range-Dulux Gloss Finish -Dulux Matt Finish -Dulux
Metallic Finish
GLIDDEN RANGE-Glidden Hi Gloss -Glidden Ultramatt
DECORATIVE WATER BORNE PRODUCTS(Top Coats)O
DULUX RANGE
-Dulux Weathersheild -Dulux Pentalite -Dulux Supercoat -Dulux
KidZone -Dulux Contract Emulsion -Dulux Texture Finish
DECORATIVE WATER BORNE PRODUCTS(Top Coats)
GLIDDEN RANGEo Glidden Duraguard o Glidden Ultra hide o Glidden
Ultratex
Decorative Water borne Products(Top Coats)
NON DULUX NON GLIDDEN RANGEo Paintex o Maxilite o ICI Vinyl plus
Distemper
Decorative Wood Care Products SURFACE PREPARATION
PRODUCTS-Filler -Sealer o STAINS -ICI Woodcare Stain -30
ShadesO
TOP COAT -ICI Woodcare Lacquers -Matt Lacquers -Full Gloss
Lacquers
o
Thinner -ICI Woodcare Special Thinner
OTHER PRODUCTS DULUX WARNISH DULUX ALUMINUM DUAL PACK DULUX
WATER REPELLENT
MASTER PALLATE (6,134 Colors) PENTALITE CLASSIC WEATHER SHIELD
GLOSS FINISH MATT FINISH
Marketing Mix StrategyUsually firms do a considerable amount of
research to identify markets and define segments. Among the many
questions market research seeks to answers, one of the most
important is the sales potential of particular market segments. To
determine sales potential a firm must forecast demand in its
targets markets. The results of demand forecasting will indicate
whether the segments are worth pursuing, or whether alternative
need to be identified. Next the management must design the
marketing makes. The combination of product how it is distributed
and promoted and its price. Together these four components of
strategy must satisfy the needs of the target markets. Some of the
challenges facing marketing managers in developing a market mix are
o Product, Strategies are needed to decide what products to offer
managing existing products over time and dropping failed products
.Strategic descions must also be made regarding, branding,
packaging and other product features such as warranties o Price,
Setting a price for a product is a marketing decision. Other
necessary strategies to changing pricing related items within a
product line tons of a sale and possible discounts o Place Here
strategies relate to channels by which ownership of products is
transferred from producer to customers and in many cases the means
by which goods are moved from where they are produced to which they
are produced to the final customer. In addition strategies
applicable to any middle man such as whole sailers and retailers. o
Promotion
Strategies are needed to combine individual methods such as
advertising, personal selling and sales promotions into an
integrated communications campaign. In addition promotional
strategies must be adjusted as product move from the early stages
to the later stages of life. The four marketing mix elements are
interrelated decisions in one area affect actions in another. To
illustrate design of marketing mix is certainly affected by whether
a firm chooses to compete on the basis of price or on one or more
other elements .When a firm relies on price on its primary
competitive tool .the other elements must be designed to support
aggressive pricing. For example, promotional campaign likely will
be built around a theme of low, low price, In non price competition
how ever product, place and promotion strategies come to fore
front. Each marketing mix elements contains countless alternatives.
For instance a producer may make and market one producer or many
,and producer may be related or unrelated to each other. They may
be distributed through wholesalers and retailers without the
benefits of wholesalers, or even directly to final customers.
Ultimately from the multitude of alternatives, management must
select a combinations of elements that will satisfy target markets
and achieve organizational and marketing goals. Like many areas of
business marketers some times face seemingly contradictory goals
.The desires to satisfy customers , For example may seen to
conflict with a particulars revenues or profits objectives. When
this occurs ethical predicaments may arise .Thus ethics in
marketing deserves our attentions.
ICI, S PAINTS MARKETING MIX STRATEGY
Like other companies ICI Paints, Decorative Division also
focused on the marketing mix strategies. It becomes obvious to
design such a market mix strategy which can helpful in achieving
organizational objectives and first and foremost objective of
organization is to maximize its profits. We will now explain how
ICI Paints formulates its Market Mix Strategies.
1. Product
MAINTAIN AND MANAGING THE EXISTING PRODUCTS
First and foremost priority of the company is to maintain the
standard and quality of the existing product which are already in
the markets. Their manufacturing, meeting demands of the market had
become a great challenge for the company. And the main thing which
is taken in to account before getting the product out of the gate
of Factory is to maintain the quality of every single pack of the
product. With time to time increasing demand, it had also become
essential to maintain the supply chain. Many of the raw materials
are imported from several countries. They are chemicals so their
transportation through air services is not feasible so they are
usually mobilized through ships. So when there is such expended
inflow of raw materials and outflow of product, it becomes a
challenge to manage it.
IDENTIFYING DEMAND
Secondly
the step goes what is the current need of the market. Today is
the
world of change, and only change is the continuous phenomena in
this world. Several needs were identified in the market through
research and the products were launched by keeping the demand of
the customers. Paint which overcome the hairline cracking. Dulux
Pentalite Classic (for interior) was launched. ICIs R&D worked
on this problem and ultimate find the solution to it. Dulux
Pentalite Classic was launched as a new product with additional
features of high scrub resistance, better flow and luxurious
finish. ICI was pioneer in finding solution to this common problem
and offered a better value added product to their customers.
Paint which resists alkali, salts.
Still Research and Development is working on the paintwhich can
resist the alkali, salts and evaporation of water from the walls.
This is one of the main demands which are lying in the market of
paint. Almost every customer had to face this problem. Its the fact
that the company which will encounter this problem and find the
real remedy to this problem will be appreciated and welcomed by the
customers and this can help to maximize its profits. There is a
strong competition between the paint manufacturing companies to
find the solution to this problem. Exterior paint which gives
smoothness and luxurious finish like interior paint.
World of weather shield was launched. First time in thehistory,
an exterior putty and exterior primer which was having an
additional feature of being waterborne was introduced by ICI
Pakistan Limited. The credit goes to R&D.
Paint which gives mirror like finish
Dulux Gloss Finish was introduced.
Paint which give non-yellowing White
The above mentioned product which was launched to givethe mirror
like finish was with additional feature of having non-yellowing
White.
Paint which has fragrance.
Dulux Special Plastic Emulsion was launched.
Oil base paint which has no smell
Once again, for the first time in the world, oil paint
waslaunched by ICI Pakistan Limited with no smell. The paint
gives no smell like ordinary paints. This product was very
successful and collected a lot of appreciation of customers.
Recently a new range is launched with a ver y demanding need of
customer which is ODOURLESS. As we often experience that when even
1 room of our home is painted, a specific smell starts to come and
its pinching. Especially when Matt is applied in any room, its
impossible to sleep in that room before 4 or 5 days. And it also
causes irritation in eyes.So in the process of value addition of
ICI, a new range was launched with the additional and separate
feature of ODOURLESS. It is available in Dulux Matt Enamel, Dulux
Enamel and Dulux Pentalite Classic.
Exterior paint which retains its shade for long time
Dulux Weathersheild Fresh was launched with the featuresof
Fungus guard, Color lock and Dirt Guard.
2. PriceAs far as the pricing is concerned it is the most
difficult decision because keeping all the things on one side price
matters. ICI Paints is promoting different brands on different
prices according to the market segmentation. Dulux is the most
expensive brand in the market. The reason is that the best raw
material and components are used in the manufacturing of the Dulux.
Second reason is that Dulux target market is upper tier. And to
some extend upper tier of middle tier. But paying more for Dulux ,
customer feels value .
If we compare the price of Dulux with other local brands , its
the fact that price difference is not more than 20-100 rupees. As
far as quality is concerned , by paying more customer is not
worried about the quality . For the market which is middle tier,
ICIs brands Paintex Emulsion and Glidden are the brands with low
price and optimum quality within the tier. If we go into the
comparison of Paintex and Glidden their price is low then the other
paint brands selling in the market. Glidden is purely priced to
cover the buying power of middle tier. The price of the products in
which ICI is having technological edge over competitors is
comparatively high. The reason is that ICI is enjoying state of
monopoly for that product. There is no product in the market to
encounter them. The price of Dulux Weathersheild Fresh is Rs.
1050/-, others companies brands offered in the market are 300-400
Rs less than Weathersheild Fresh. Same is the case with Dulux Gloss
Finish and Dulux Matt Enamel Odourless Range. The price is Rs.
300-400 more as compared to other brands. So pricing factor vary
from brands to brands and target market.
3. Placement / DistributionThe overall ICI Paints products are
manufactured in ICI Paints Lahore. For all Pakistan stocks dispatch
is carried out from factory warehouse. There are further 5
warehouses in the country. Lahore Islamabad Multan
Karachi Quetta
The distribution channel includes Distributors and Dealers/
retailers. The Pakistan is divided into 4 Regions. Upper Lower
Punjab Center Punjab Lower
Every region is headed with Regional Sales Manager and in every
Region there are further Area/ Territories. The supply activities
are carried out with keeping the region and areas. One region
cannot carry out supply in others region same in the case with
areas/ territories. The product is only delivered to the company
approved dealer or distributor. Distributor can sale to the
customer which is not approved dealers of the company. Main
consumption of paint is on dealer/retailers counter. The delivery
is made through 2 modes Distribution Vehicles Freight On Road (
goods transportation service)
By these 2 means ICI manage the distribution and placement of
their products to be available for their customers and
consumers.
4. PromotionBefore getting a product into the market, ICIs
culture is to invite its business partners (dealers/distributors)
to give them orientation regarding new product what ICI is going to
launch, with what features and how it will work.
After this first step when product is introduced to the business
partners second step is its promotion how the promotion is done.
T.V Advertisement on different channels Radio Advertisement , F.M
100 Bill boards almost in every big city Posters / Banners Small
gifts for dealers/distributors to push new product sale Small gifts
for painters / contractors who are labor force who apply paint
Painters party to introduce them new product T Shirts printed with
product logo on them Caps Key chains
The sales team is assigned a target the placement of the new
product on every counter. With the help of direct marketing, ICI
employees gives orientation to the customers and Painters that what
the new product is and what features it has. Currently T.V
commercial of ICI Dulux Odourless, in on air on different T.V
channels.
SWOT ANALYSISA method of analyzing an organizations competitive
situation that involves assessing organizational Strength (S) and
Weaknesses (W) as well as environmental opportunities (O) and
Threats (T). Before we go through the SWOT analysis, first of all
lets identify the competitors of ICI Paints. ICI is still enjoying
a reasonable percentage of market shares. Still ICI do not consider
any company its competitors but the company which is chasing ICI is
Berger Paints. Berger is the only company which has some how
reasonable market share, as main share of the paints market goes to
the local paint manufacturers. Now we will made assessment through
SWOT analysis of both ICI Paints and Berger Paints.
STRENGTHICI Paints More than 80 yeas of experience in the paints
industry. Multinational PLc U.K World renowned chemicals and paints
manufacturers. Having production setup in more then 55 countries.
Popularity of ICI is much Company
Berger PaintsGained period. Comparatively fast supply of the
products. Having 2 manufacturing reasonable market share in very
short time
plants as ICI had only 1 which helped in improving the delivery
of goods. Good discounts and
more due to its thousands of other products rather then paints.
Having product which has no competitors. Laid new histories in the
paint industries. Business volume is very high as compared to the
competitors. Focuses Safety, Security, Health and Environment as a
corporate social responsibility.
incentives Paints.
for
business
partners as compared to ICI
WEAKNESS ICI Paints Very low discounts for business partners.
Comparatively less convenient delivery of the products as the
business partners are in 1000,s. Meeting demand becomes challenge
in the
Berger PaintsPoor dealer network as compared to ICI. Complaint
often arises in the product while applying. Low range of products.
None of the product which can be said better then ICI Lack of
policy.
season.
Come under the definition of local brand as it is claimed by
Berger that they are Multinationals.
Lack of formulating competent strategies.
THREATSICI Paints Threats to the new entrants in the market.
e.g. Nippon Paints Japan has entered the market of Pakistan
Political stability of the Pakistan Economic Stability
Berger PaintsThreat to the expanding market of ICI Paints.
Threats to the other new entrants in the paints market e.g. Nippon
Paints Japan has entered the market of Pakistan Economic and
Political stability has also become a threat to almost all
companies either national or multinationals to carry out their
business operations in the Pakistan. Threat of the new
innovative
products of the competitor like ICI is having its products in
market which have no competitors and gained popularity and market
share.
OPPORTUNITY
ICI Paints Pakistan is developing country and there is a lot of
business growth in this country. So seeking new markets in this
area is great opportunity. In developing countries, there is always
opportunity for maintaining sustainable growth, so its also in
Pakistan. Keeping the need of the market, still there are some
products which are not offered by ICI. That product also weights
share so a by considerable
Berger PaintsBerger should formulate its strategies and develop
its product keeping in view about the growth opportunity in this
country. Extensive research on different problems can lead to
launch of products which are in demand by market. Maintaining the
quality is key to success in the paints market. Still Berger has a
long way to go ,so they should cover the new technological gaps
which can lay them down.
launching these products ICI can improve its market share.
Finding solutions to the painting problems can also help to grow.
Such product are still absent in the market which can gain the
attention of customers. So to work on those problems lead to a
great opportunity. Low price products can allow gaining a good
market share. So cost cutting should focused.
CONCLUSIONICI Pakistan Limited is one of the leading companies.
ICI Pakistan's Paints Business is one of the largest in the
country, which started with the acquisition of Fuller Paints
(Pakistan) Limited. The business manufactures paint for the
Decorative, Refinish and Industrial segments. In Pakistan they are
enjoying a state of monopoly but there is always an opportunity
some where. ICI has consistently developed new and innovative areas
of businesses. ICIs paints brands are some of the most successful
in the world. ICI Should focus to encounter the new off shore paint
companies which are entering in the market of paints. No doubt,
some of the brands of ICI are exclusive in the market and still
have no competition, but along with this the low price and high
quality products should also be in the market. The fact that
Research and Development of ICI had brought today to the current
position and set milestones for other companies to follow.