market analysis on berger pints

7/30/2019 market analysis on berger pints

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Mission statement of the company We will stay in the forefront of innovation and technological development in the

paint industry.

We will achieve corporate success through an unwavering commitment to provide

our customers high quality products to their ultimate satisfaction.( market share) We will vigorously promote and safeguard the interests of our employees, our

shareholders, our suppliers and all our others business associates.( employees

benefit, dividend)


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To promote and protect the paint industry

To foster unity and co-operation among paint and allied manufacturers, for

their common progress and prosperity.

To represent and seek redress from Government for the difficulties experienced by

its Members, by written submission to Government, interaction and representationon relevant Government bodies.

To disseminate among its Members updates in technology and management

practices.

Identify problems that may arise, affecting the paint industry and take pre-emptive

measures.

Employees motivation to maintain a position of market dominance.


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The strategy for the coming years is to continuously improve operations in all

spheres of activity. Berger is investing heavily in staff development and

infrastructure. To support its ambitious marketing and sales thrust, it has invested

in the new state-of-the-art manufacturing facility providing Berger an additionaledge over competition, and an enhanced ability to service its valued customers.

Responsibilities and authorities of marketing strategy are assigned chief marketing

manager which is followed and carried by the assistant marketing manager and

marketing officers at regional levels.


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To find that whether the company marketing strategy is working fine is

based upon the calculation of the marketing return on investment or

percentage increase in sale volume. But Berger is focusing more on staff

development and plant innovation or production capabilities instead of

marketing investments which clearly shows lack of consistency and

performance in marketing activities and it resulted in huge losses in its

recent years.


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Long term strategic marketing plan

Market share

Producing differentiated products Attaining by:

Color bank (more than 5,000 shades)

Innovative high quality product


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Segments the market according to: Income level

Life style Taste of the people

Upper tier (Premium)Middle tier (Regular)

Low tier (Economy)


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Berger segments total market as Decorative, Industrial & Marine. Then, Decorative

group is further segmented on the basis of surface types ; wooden, metal &

concrete.

Price segmentation is used to create a number of small niches , Premium, Regular

& Economy in the market.


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Berger targets people on the bases of three segments premium,

regular and economy. The company provides different kind of

products on the bases of segmented target market.

Strong position

Primers

Distempers

Enamels


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Offering different types of products

Offering the premium, regular and economy products

Berger should prefer mass media and mass promotion to reduce the gap

between desired performance and actual performance.


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Among the customers regarding:

The uniqueness of the product

Features and benefits

Giving creativity

Fix budget for the marketing and advertisement

The effectiveness of the marketing programs appraised on the quarterly

and half yearly basis which can be seen by the increase in the sales and

the number of customers which the company attained within the year in

B2C market.


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Product strategy

Decorative

Industry

Marine Use unique branding strategy

Uniqueness is based upon high quality, technology and environmentally

friendly usage.


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Product differentiation

Size

Shape

Color shade

Berger differentiates its service comparing to the other competitors.

These are :

Ordering ease (online services for color combination)

Customer consulting & delivery service


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Make a survey

Make decisions

Produced according to preferences of the customers

Adding some unique features and benefits Modification and additions

Products based upon:

Technology

Unique ideas

Adding some extra and innovative features and benefit


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Provides various kinds of services:

Color bank

Delivery free of cost

Performance based on:

Quarterly

Semi annually

Annual basis


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Vertical coordinated method for its distribution strategy

Company make sure that each successive stage in the production,

processing, and marketing of a product is appropriately managed andinterrelated to the next, so that decisions about what to produce, and how

much, are communicated as efficiently as possible from the consumer to

the producer


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Selective distribution approach for each of its product

Limited number of outlets in a geographical area

Producer can choose the best-performing outlets and focus effort (e.g.

Training) on them.


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Operating in the ten cities of Pakistan

Karachi, Islamabad, Lahore, Rawalpindi, Faisalabad, Peshawar, Quetta, Gujranwala,

Multan, and Hyderabad

Industrial and economy level Get new customers

Build long term profitable relationship


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Activities and campaigns for the promotion and selling in cities like

Karachi, Lahore and Islamabad

Color bank

The channels of distribution are being managed in very proper and

effective way

Try to open more and more new outlets in different cities so that it is easy

in reach of the new customers


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Cost based pricing method

Competitor based pricing policy is also followed as well

Pricing decisions made hastily without sufficient research, analysis,

and strategic evaluation can lead to the marketing organization

losing revenue

Prices set too high can also impact revenue as it prevents

interested customers from purchasing the product.


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Many times price adjustments are part of sales promotions that lower price for a

short term to stimulate interest in the product

Product and distribution decisions some forms of promotion which can be time

consuming to alter (e.g. Television advertisement) price can be changed veryrapidly

Prices should play active role while position the product and should be flexible

enough to catch up with the competitors.


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In Pakistan paints industry major competitors are competing on the basis of price

Berger lacks most of the promotional activities and the competition is high in the

industry

It is hard for Berger to reduce their prices and offer discount

But by offering regular and economy class products with quality Berger can

compete in the industry.


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Bergers prices in Pakistan are based on their product quality and their segmentation.

Prices of paints for economy class and regular class are different from premium class

products. Pricing is based on production costs plus profit margin.

By focusing more on promotional campaigns nationwide Berger can take some

advantage over its competitors but prices should also be flexible enough.


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Berger promotional strategy is to convince target customers that the goods

and services offered provide a differential advantage over the competition

Objectives

To increase sales or market share

To give the products an image, or to establish a brand identity

To establish a corporate image

To enable long-term planning to take place


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Bergers current promotional campaigns on electronic media are not frequent as

compare to its competitors similarly in the print media they lack presence

Presence of Berger in electronic media only, hardly helps Berger in increasing its

market share. But their current position can also be credited to their promotionalcampaign in electronic media especially on TV channels in past.

Berger needs to invest heavily in exploring other promotion channels including

print media and other electronic means


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The sales organization of the Berger paints Company also provides the list or

details of the job description to its sales employees so that they get complete

awareness of the nature of the job.

The Berger Company hires employees with related qualification to the job andfocus on lowest employee turnover.


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Because of sales force In 2006 the company inventory turnover was Rs.

2,761,711,000 which rises up to Rs. 3,571,510,000

Companys sales force is in the progress mode because during the last five years

the sales force of the company has increase its sale up to 30%.

Companys sale has increases during last five years but in last two years the

company has to face huge losses


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Generated from the industrial and government sector.

The household is very low in generating the revenue as compare to the other two

sectors.

On the basis of performance the company also provide the incentives, benefits

and increments to sales force which are:


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In the decorative business category paints are offered to the dealers at 5%

discount on MRP of the all products.

Dealers of across the country are entitled to enjoy 30 days credit facility provided

that these dealers are registered

For creating a loyal, motivated dealer group Berger arranges dealers meet up in

which some exclusive dealers are invited for 3 / 4 days to visit an exclusive locationand the total program is sponsored by Berger paints.

For selling more Berger products a turnover incentive is offered to them.

If dealers buy more than a specified volume in one invoice they are rewarded with

exemption of certain percentage on total monetary value of invoice.

Each registered dealers of Berger has to achieve a yearly sales target set by Bergerto enjoy TOC (Turnover Commission), a percentage of total yearly sales.


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The company also offers shares to their

employees so that not only they work for the

company but also take part in the company

decision making process and give theiropinion regarding the company future

objectives and goals.


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Bergers actual performance can be measured through their market share

and their desired market share. Berger desired to reach large target

market but they have not been able to achieve their desired thrust of sales

and cause for these could be lack of marketing activities.

Berger is currently in need to increase its marketing or promotional

campaigns


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Bergers marketing audit clearly reveals that there are a lot to study before

a new development and action taken by the company the areas of study

before action must be areas of operations whether its being as productive

as desired and their marketing budget allocated is properly or effectivelyutilized or not.


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Total budget allocated = 100, 00,000

Reserve = 10% of the total amount = 10, 00,000

Budget available for use = 90, 00,000

Total promotional budget Used = 8493600


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Size Rent for 1 month No. of Billboards in Major 3 Major Cities Total Cost

2700 Sq. ft Rs. 700,000 Karachi, Lahore, Islamabad, 21,00,000

Billboards

channels Timing Pricing/minDays to

run

Time to

run per

Day

Total Cost

per day

Total Cost in

campaign

Geo TV10.00pm-

11.00pm90000 7 3 270000 1890000

Dunya TV9.00pm-

10.00pm70000 7 4 280000 1260000

ARY TV08:00pm-

10:00pm150000 5 3 450000 2250000

Total 5,400,000

TV ads


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News paper Size Rate/cm Cost No. of days Total cost

Jang 108cm 1300 /Cm 140400 4 days a

month

561600

Nawa - e -

waqt

108cm 1000 /cm 108000 4 days a

month

432000

993600

Print ads


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market analysis on berger pints

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