Friday, January 10, 2020
Berger Paints Bangladesh
The company has been successfully maintaining Its position by developing the quality of the products, adding new features to the products and also by launching new products in the different segments of the paint and Its peripherals. In this pursuit sales management of Berger wants to know evaluate marketing strategy whether there Is scope of improvement. For this they firstly wanted to explore their sales volume/revenue with comparison to marketing effort.They also wanted to know consumer Insight about the marketing communication run by the marketing team. The successful completion of MBA also requires an internship project to be conducted in the attachment of a company. In response to the request of IBA authority Berger management assigned me the Job to study marketing strategy and also to know consumer insight about Berger. 1. 2 Scope of the Report This is a descriptive study. The study will focus on the following things: Functions of Marketing Department of Berger Paints Banglades h Functions of Sales TeamPromotional activities of Berger Paints Bangladesh Analysis of sales growth of Berger Paints Bangladesh Consumer insight about marketing activities of Berger Paints Bangladesh 1. 3 Objective Broad Objective To analyze the marketing strategies of Berger Paints Bangladesh Ltd. Specific Objectives To obtain an overall view of Berger Paints Bangladesh Limited. To explore information about the market position To evaluate the marketing strategy of Berger Paints Bangladesh Limited To analyze sales growth of Berger Paints Bangladesh Ltd In financial terms To recommend mprovement of marketing strategy if required.This is an analytical report endeavoring to explore the marketing strategy of Berger Paints Bangladesh Ltd. The information used is mostly primary and a little part is secondary information. Primary information has been collected through semi structured interviews mostly with probing questions to explore the real and required scenario. The Judgment sampling is used because there was no scope to travel throughout Bangladesh and the work had to be done within the area of Dhaka city. As a result Judgment is used to get the best possible picture of the market.So the primary and secondary sources of information are: The primary sources are: Face to face conversations with the officers of marketing department and sales team. Relevant file study as provided by the concerned officers. Survey on the customers of Berger Paints Bangladesh Limited. Dealers of Berger Paints Bangladesh Limited The secondary sources are: Annual Reports of Berger Paints Bangladesh Ltd. Different circulars issued by the management of Berger Paints Bangladesh Ltd Berger Paints Bangladesh Ltd's website.Brochures and web sites of different paint companies. 1. 5 Literature Review Marketing strategy is a process that can allow an organization to concentrate its (always limited) resources on the greatest opportunities to increase sales and achieve a sustainable competitive a dvantage. Marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will engage customers, prospects and the competition in the market arena for success. A marketing strategy also serves as the foundation of a marketing plan.A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: Ã¢â¬Å"Use of a low cost product to attract consumers. Once an organization, via its low cost product, has established a relationship with consumers, the organization will sell additional, higher-margin products and services that enhance the consumer's interaction with the low-cost product or service. Ã¢â¬ A strategy consists of well thought out series of tactics. Without a sound marketing strategy, a marketing plan has no foundation.Marketing strategies serve as the fundamental underpinning of marketing plans designed to reach marketing objectives. It is important that these objectives have measurable results. olicies, and action sequences (tactics) into a cohesive whole. Many companies cascade a strategy throughout an organization, by creating strategy tactics that then become strategy goals for the next level or group. Each group is expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is important to make each strategy goal measurable.So to evaluate the marketing strategy a simple tool is to relate the sales volume of the organization under study. The measurement also includes the long term impact of marketing strategy on consumers in their buying habits. http://en. wikipedia. org/wiki/ Marketing_strategy) 1. 6 Report Preview Introduction to the report, objective, methodology has been given in the first chapter. The information on the paint industry and the company Berger Paints Bangladesh Limited is given in the second and third chapter. The findings and analysis part of the study is in the fourth cha pter.The conclusion is given in the fifth chapter and recommendation in the sixth chapter. 1. 7 Limitation The study faces some limitations in the process of collecting information and also in representing the scenario. These are: Due to the resource constraint the research has been done by Judgmental sampling and is limited within the Dhaka city. Though it covers the main and major dealers, still the market of semi urban and rural part may not be reflected properly. Because of organizational restriction, no name and details of the status of classified information could be revealed.However a good number of local paint manufacturing companies (40 organized and at least 50 more in the informal sector) have been operating in this small market. Quite a few of these companies are producing paints of internationally of the local paint companies is double the present local market demand. The paint market is still mostly concentrated in the urban areas naturally because the number of constr uctions and surface areas are in huge number in the urban side. Urban side contributes almost 80% of the national paint market. But companies are trying to penetrate the semi urban and rural market through the economy paints.Contribution of Urban, Semi-urban and Rural Market in 2006 is shown in the following fgure: Figure 1 : Geographical Market Size (Source: Berger Sales and Marketing Team) The paint industry can be broadly categorized into four segments: Decorative, Industrial, Marine and Automotive paints. Industrial paints are basically specially produced paints, which are used in two ways. Industrial paint is being used in some industries as the raw materials which are the regular consumer of such paints. The segment uses such paint for the protective and maintenance purpose.Marine paints are produced specially for the river and sea going vessels and the automotive paints are being used in the automobile sector. All the rest fall in the decorative category. It covers all the pa ints for the exterior and the interior surfaces of plaster, metal and wood. This is the biggest segment of the paint industry. The category wise existing market condition is given in the following table: Table 2: Category wise paint market size in 2006 (Source: Berger Sales and Marketing Team) The Table shows that decorative paint segment is enjoying almost 81% of the market.The rest is being divided among all the others. It means that still decorative is the main segment for the paint companies to operate successfully. The second significant segment is the Industrial segment. But the marine segment is having growth now a days. The following figure shows the segmentations of total paint market on the basis of the value in Bangladesh. Figure 2: Segments of Paint market (Source: Berger Sales and Marketing Team) The projected broad category wise market size for 2007 is as follows: Category Value in crore (Tk) Decorative 550 12. Industrial 55 1. 03 Marine 32 0. 71 Total 630-650 14. 04 T able 3: Projected Market Size 2007 (Source: Berger Sales and Marketing Team) The Table shows that Decorative segment is projected to enjoy the highest growth of 8. 75% from 2006. The Marine segment is also projected as a significant segment from the growth perspective. In this sector the projected growth is almost 8. 51%. The Industrial segment's projected growth is around 6. 8%. The total growth of the paint market from 2006 to 2007 8. 51%.The decorative paint market can be categorized into three segments based on the ingredients used in the production process: solvent based paints, water based paints and cement paints. The solvent based category includes gloss coatings, varnishes, primers and others and the water based paint category includes distemper, interior as well as exterior emulsions. The detail category wise contribution of the major decorative paints in 2006 is given below.