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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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