Summer Internship Project by Debaditya

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BERGER PAINTS INDIA LIMITED

“A Study on Customer
Satisfaction towards
Home Painting Service
with Specific Reference
to Berger Express
Painting”
Debaditya Dutta

BERGER HOUSE, 129 PARK STREET, KOLKATA 700017


“A Study on Customer Satisfaction towards Home Painting
Service with Specific Reference to Berger Express Painting”

Summer Internship Project Report submitted towards partial fulfilment of

Master of Business Administration


In

Marketing
(Approved By AICTE, Govt. of India)

Academic Session: 2015 - 17

Submitted by

Student Name: Debaditya Dutta

University Roll No.: 12900915018

University Registration No.: 151290710018 of 2015-16

Bharatiya Vidya Bhavan Institute of Management Science


FA Block, Sector III, Salt Lake City, Kolkata 700097

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Declaration

I hereby declare that the project work entitled “A Study on Customer Satisfaction towards
Home Painting Service with Specific Reference to Berger Express Painting” submitted to
Maulana Abul Kalam Azad University of Technology (formerly known as West Bengal
University of Technology) as a part of the MBA curriculum, is a record of an original work
done by me under the guidance of Prof. Sujit Mukherjee (Faculty Guide, Bharatiya Vidya
Bhavan Institute of Management Science) and Mr. Mainak Ghosh (Company Guide, Berger
Paints India Ltd.) And this project work is submitted in the partial fulfilment of requirement
for the award of the degree of Master of Business Administration. The results embodied in
this project have not been submitted to any other university or company for the award of any
degree or diploma.

Debaditya Dutta

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Certificate from Company

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Approval

This is to approve that the project work entitled “A Study on Customer Satisfaction towards
Home Painting Service with Specific Reference to Berger Express Painting” is a bona fide
work carried out by Debaditya Dutta (University Roll No.: 12900915018, University
Registration No.: 151290710018 of 2015-16) a candidate of MBA (Academic Session: 2015 -
17) of Bharatiya Vidya Bhavan Institute of Management Science.

_______________ _______________

Dr. Ramakanta Patra Prof. Sujit Mukherjee

Principal Associate Dean of Studies

BIMS BIMS

_______________

Prof. Indrajit Sinha

Assistant Professor

BIMS

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Acknowledgement

With immense pleasure, I would like to present this project report for Berger Paints
India Ltd. It has been an enriching experience for me to undergo my summer training at
Berger Paints India Ltd. which would not have been possible without the goodwill and
support of the people around. As a student of Bharatiya Vidya Bhavan Institute of
Management Science I would like to extend my sincere gratitude and thanks to Mr. Mainak
Ghosh (Senior Business Development Manager, Berger Paints India Ltd.), Dr. Ramakanta
Patra (Principal, Bharatiya Vidya Bhavan Institute of Management Science), Prof. Sujit
Mukherjee (Associate Dean of Studies, Bharatiya Vidya Bhavan Institute of Management
Science) & Prof. Indrajit Sinha (Assistant Professor, Bharatiya Vidya Bhavan Institute of
Management Science) to shape my understanding towards the project. It was because of their
immense help and support that this project has been duly completed.

However, I accept the sole responsibility for any possible error and would be extremely
grateful to the readers of this project report if they bring such mistakes to my notice.

_______________

Debaditya Dutta

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Executive Summary

The purpose of this project titled “A Study on Customer Satisfaction towards Home
Painting Service with Specific Reference to Berger Express Painting” is divided in three
parts.

Firstly, the study includes visiting customers of Berger Express Painting and taking their
feedback on how well their painting has progressed. These data which has been collected
through the interview has helped in deriving many conclusions regarding the customer
satisfaction.

The above one is totally a qualitative research based on a descriptive research design.

Secondly, Berger Paints has been conducting “Core Painters’ Training” for their
Master Painters in different locations across West Bengal required for using Berger Express
Painting tools.
Thirdly, Berger is engaging them in brand loyalty programs for their Master Painters
by offering tokens through coupons to them found in the paint containers which can be
redeemed for cash later. These schemes will definitely serve the company to achieve its goal.
As a part of the above scheme, Berger has recently introduced an offer called “Token
Jamao Bike Chalao” where the Master Painters stand a chance to win various prizes such
as Speaker System, Bike, TV, Dinner Set and Room Heater.

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Contents

Chapter 1: Overview of the Paint Industry in India 09

Chapter 2: Company Profile 21

Chapter 3: Research Problem and Background 41

Chapter 4: Objectives and Scope of Study 44

Chapter 5: Project Methodology 46

Chapter 6: Data Analysis and Interpretation 49

Chapter 7: Observations and Findings 52

Chapter 8: Recommendations 56

Chapter 9: Limitations and Scope of Study 58

Bibliography and References 60

Appendix 62

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Chapter 1

Overview of
the Paint
Industry in
India

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1.1 Brief Description

The Indian Paint industry, estimated to be a ₹ 40600 crore industry, has been growing at a
rate of above 15% for the past few years. The organized players of the industry cater to about
65% of the overall demand, whereas the unorganized players take care of the remaining
35%, in value terms. The unorganized players mainly dominate the distemper segment.

The industry consists of two segments, namely

 Decorative segment - caters to the housing sector and

 Industrial segment - consists of powder coatings, floor coatings and other protective
coatings catering to the automobile, marine and other industries.

In the domestic market, Decorative segment accounts for 72% of the total demand for paints
whereas the industrial segment accounts for the remaining 28%. Globally, the demand for
paints is almost equally distributed, where both the segments account for close to 50% of
demand.

The paint industry volume in India has been growing at 15% per annum for quite some years
now. As far as the future growth prospects are concerned, the industry is expected to grow at
12-13% annually over the next two years.

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1.2 Working of the Paint Industry

The working of the Paint industry has been explained pictorially below:

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1.3 Industry Structure

Indian Paint Industry is over 1000 years old. Its beginning can be traced back to the setting
up of a factory by Shalimar Paints in Calcutta back in 1902. Till the Second World War the
industry consisted of small producers and two foreign companies. After the war, the imports
stopped which led to the setting up of manufacturing facilities by local entrepreneurs. Still
the foreign companies continued to dominate the market, which in a way is the current
scenario as well. The initial decades saw the complete dominance of British Paint companies
such as Goodlass Wall (now Kansai Nerolac Paints), ICI (now Dulux Paints), British Paints
(now Berger Paints), Jenson & Nicholson and Blundell & Eomite.

The Indian Paints sector is valued at ₹ 40600 crore in value terms and is very fragmented.
The current demand is estimated to be around 3723500 tons per annum and is seasonal in
nature. The per capita consumption of paints in India stands at about 4 kg p.a. as compared
to 22 kg in the developed economies. India's share in the world paint market is just 0.6%.

The Indian Paint industry can be divided as:

 The organized sector comprising of large and medium size units


 The unorganized or the small scale sector.

There are now twelve players in the organized sector with a market share of 65%. This is in
contrast to the 55% share that the sector commanded a few years back. Major companies in
this segment include Asian Paints (54% market share), Berger Paints (18% market share),
Dulux (11% market share), Kansai Nerolac Paints (15% market share) and Shalimar Paints
(2% market share). The organized sector has grown at a CAGR of 12% in the last five years.
The unorganized sector comprising of over 2000 units has a combined market share of
around 35%. The major players are Asian Paints, Kansai Nerolac Paints, Berger Paints,
Dulux Paints and Shalimar Paints. Recently, world leaders like Akzo Noble, PPG, DuPont
and BASF have set up base in India with product ranges such as auto refinishes powders and
industrial coatings. Kansai Paints of Japan, which entered into collaboration with Goodlass
Nerolac in 1984, is now the holding company for Kansai Nerolac with 65% equity holding.
PPG has a joint venture with Asian Paints to manufacture industrial coatings.

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Jenson & Nicholson and Snowcem India are no longer active players because of dwindling
sales in recent years. In the 1990s, helped by a growing economy, the paint industry had
recorded a healthy growth of 12-13% annually. This was mainly due to a drastic reduction in
excise from a staggering 40% to 16%. However, the growth was restricted in 2000-2003 to
single digits. There was a revival in 2003-2004 with a robust growth of 13%. The per capita
consumption of paints in India stands at about 4 kg p.a. as compared to 22 kg in the
developed economies. As the consumption goes with affordability, the low Indian figure is not
a surprise. High excise duties, low technology and low capital costs for production led to the
incidence of a high number of units in the small scale sector. However, since 1992 the
government has been consistently lowering duties from 40% in 1992 to around 16%
currently. This has led to lowering of price differential between the organized and
unorganized sector. Moreover the paints sector was also allowed to claim MODVAT credit
on petro-based products, thus lowering the excise incidence further.

1.4.1 Paints and their Market Share

1.4.2 Industrial Paints

Industrial paints comprising 30% of the market include automotive paints, high performance
coatings, coil coatings, powder coatings, marine paints and general industrial coatings. The
automotive segment is further bifurcated into OEMs and auto refinishes. The automotive and
general industrial coatings occupy top slot in terms of production. Kansai Nerolac is the
market leader in this segment.

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Demand for these paints is relatively price inelastic, but is prone to business cycles and
depends on industrial and economic growth. Major end user industries include shipping,
capital goods, white goods and heavy industries.

The industrial paints segment due to specialized technology and high capital expenditure
attracts fewer players. Most Indian companies have tied up with or are in the process of tying
up with international paint majors to have access to the latest technology. A tie-up with a
global paint manufacturer also enables the domestic company to supply to local customers of
its partner. For example, Kansai Nerolac is a major supplier to Maruti Suzuki because of
Kansai, its Japanese collaborator and Suzuki relations. It is for the same reason that Asian
Paints (tie-up with PPG Industries, USA) is a major supplier of paints to Opel Astra.

1.5 Drivers to the growth of the Paint Industry

1. Increasing level of income and education: The increasing proportion of young population
along with increasing disposable incomes is leading to a change in consumer habits. The
Indian economy is shifting from a savings economy to a spending economy. With more
income at their disposal, people are now ready to pay for better products and paint is no
exception.

Educated consumers are more brand-conscious and seek value in what they consume. Thus,
paint companies offering value-added features like non-toxicity, weather protection, texture,
eco-friendly production, etc. will attract more demand. These value-added products enable
the manufacturers to earn a better premium as compared to the regular paints, thus offering
higher margins.

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2. Increasing Urbanization: Urbanization is leading to a shift from temporary houses to
permanent houses. Urban houses are well-designed in its interior as well as exterior aspect.
This calls for more houses being painted using medium and premium paints. For urban
houses, interior design is becoming a fashion statement and a lot of paint is used to decorate
the interiors. This will lead to an increase in the per capita consumption of paint which will
increase the overall demand of paint. Urbanization also brings more nuclear families. More
nuclear families mean more number of houses even for the existing population thus further
driving the demand.

3. Increasing share of organized sector: Decrease in taxes on key raw materials will
improve the position of the organized players. The Organized sector is expanding its
distribution network and adopting the installation of tinting machines at retail outlets. These
tinting machines offer a wide variety of colour shade options to choose from. The
unorganized players are not in a position to offer such facility as it is comparatively capital
intensive. Shift in use, from distemper segment towards premier segment is also shifting
market share from the unorganized sector to the organized sector.

4. Development of the Realty, Automobile and Infrastructure sector: The growth of the
paint industry is largely dependent on the development of the realty and housing sector, as
decorative segment generates about 70% of the total paint demand from this sector. The
Automobile segment generates more than two-third of the demand for Industrial paints, and
hence is the growth driver for Industrial Paints. The Infrastructure segment creates direct
demand for paints as well as creates indirect demand through supporting the growth of the
realty, automobile, FMCG and other industries where paint is used.

The growth potential in the above 3 sectors is immense, the paint industry being dependent
on these 3 sectors is expected to grow along with them.

5. Availability of financing options: Easier housing finance and auto finance is expected to
favour more people to buy houses and travel in personal vehicles. This will drive the growth
of housing and automobile sector, of which the Paint industry will get its share.

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6. Increasing Penetration in the Rural Markets: Paint usage in rural areas is generally in
the distemper segment, hence dominated by the unorganized players. Demand in rural areas
is dependent on agriculture, which is dependent on the monsoons. With the development of
irrigation facility, the dependence of agricultural output on monsoons will be on a decreasing
trend. Also, with the modernization of agriculture and accompanying development of rural
India, consumer preferences are expected to improve. Paint companies are expanding their
distribution network in rural parts of India, which is a relatively untapped market for the
organized players. These factors supported by the increasing penetration of the paint
companies will help drive the demand for paints.

1.6 Main Concerns of the Paint Industry

• Cost of raw materials: The Cost of Raw materials is an important factor as the
industry is raw material intensive. Fluctuation in the prices of Titanium dioxide and
Petroleum directly affect the production cost. This is more of a concern for the Industrial
segment as compared to the Decorative Segment, as it is comparatively easier to pass on the
costs in case of decorative paints. Also, a large portion of raw materials are imported,
leaving the cost factor vulnerable to exchange rate fluctuation.

• MNCs entering the Indian Paint Market: The entry of Established foreign players in the
Indian market may increase the competition among the players of the industry. This may lead
to price competition which may impact the profit margin of the companies. As a result, the
increase in volume growth may not equally reflect in the profit growth for the companies.

1.7 Paint Industry Prospects

 The market for paints in India is expected to grow at 1.5 times to 2 times GDP in the
next five years. With GDP growth expected to be over 6-7% levels, the top three
players are likely to clock above industry growth rates, especially given the fact that
protection that was available to unorganized players has come down significantly.
 Decorative paints segment is expected to witness higher growth going forward. The
fiscal incentives given by the government to the housing sector have benefited the
housing sector immensely. This will benefit key players in the long term.

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 Although the demand for industrial paints is lukewarm it is expected to increase going
forward. This is on account of increasing investments in infrastructure. Domestic and
global auto majors have long term plans for the Indian market, which augur well for
automotive paint manufacturers like Kansai Nerolac and Asian-PPG. Increased
industrial paint demand, especially powder coatings and high performance coatings
will also propel top line growth of paint majors in the medium term.

1.8 Top Paint Brands in India

Goodlass Nerolac: This company’s paint decors every third car in the country. It is the
market leader in the industrial paint segment supplying over 90% of the requirements and
has planned to increase its presence in the decorative segment through aggressive new
product development and brand building. They are the second largest company in India in
the decorative segment with a market share of around 15%. They are the leaders in powder
coatings. Goodlass Nerolac Paints Ltd is 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, with a human asset of over 2000 professionals and a sales turnover
of ₹ 4604 crores. This company started in 1920 as Gahagan Paints and Varnish Co. Ltd. at
Lower Parel in Bombay. In 1957, Goodlass Wall Pvt. Ltd. grew popular as Goodlass Nerolac
Paints Pvt. Ltd. Also, it went public in the same year and established itself as Goodlass
Nerolac Paints Ltd. 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 Paints Co. Ltd., Japan and Nihon Tokushu Toryo Co. Ltd., Japan. In
1999, Kansai Paints Company Ltd., Japan took over the entire stake of Tata Forbes group.
During this journey, Nerolac has entered into technical collaborations with other industry
leaders such as E.I. Du-Pont de Nemours & Company Inc., USA and Oshima Kogya
Company Ltd., Japan for different products.

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Berger Paints: This company started in 1947 as British Paints when it acquired Hadfield's
(India) Limited, a paint company that produced 150 tonnes of ready mixed stiff paints,
varnishes and distempers. Sales offices were opened in Delhi and Mumbai and in 1951 a
depot was started in Guwahati. Sales raised to ₹ 60 lacs in 1952. The Company declared its
first dividend and shifted the H.O. to 32, Chowringhee Road, Calcutta. By 1959,
modernization of the Howrah Factory was completed and the first Resin Plant commissioned.
With that, the Company entered the Synthetics Paints market. By 1965 British Paints
(Holdings) Limited, UK was acquired by Celanese Corporation, U. S.A. As a result, the
controlling interest of British Paints (India) Limited passed on to Cel. Euro N.V., Holland. In
1969 Celanese Corporation sold their interest in the Indian Company to Berger Jenson
Nicholson Limited, UK. In 1975, the foreign holding of the Company was reduced from 60%
to 45% through a Public issue. A year later the foreign holding was diluted to below 40% by
sale of a portion of the shares to the UB Group.

In 1983, the name of the Company was changed to Berger Paints India Limited (BPIL) and
by this time the Berger's operations were divisionalized into the Retail Business Line (RBL)
and the Industrial Business Line (IBL) in order to better cater to the needs of the customers.
During this period many new products were launched like “Luxol Silk” the first premium
emulsion in India, “Viton Refinish” for cars, “Bison Acrylic Distemper” and “Rangoli
Acrylic Emulsion”.

In 1990s, “Berger Pro Links”, a service aimed at providing paint and application related
information to professionals, was introduced marking one of the first steps into painting
related services. In 1991, the stake of the UB Group in the Company was purchased, by Mr.
K S Dhingra, Mr. G S Dhingra and their associates. The sales of the company touched ₹ 276
crores by 1995-96. The latter half of the nineties saw Berger attain the ISO 9000 certification
and establishment of Berger's Quality Management System. “Color Bank” tinting system was
also launched through which the consumer can select from a range of over 5000 colours and
which are then made available in minutes. As part of its expansion program, a new paint-
manufacturing unit at Pondicherry was commissioned in early 1997. Berger Paints Home
Decor a complete painting solution service was launched making painting a hassle free
activity for consumers. An illusion multichrome finishes was also introduced as "designer
finishes for walls" allowing consumers to transform their walls into fashion statements. This
is a first for the Indian paint industry.

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ICI: ICI India was the subsidiary of the $15 billion British multinational company ICI plc.
Brunner Mond & Co., one of the four Companies that combined to form ICI in UK in 1926,
opened a trading office to sell alkalis and dyes in Calcutta. During its 70 years in India, ICI
had created six subsidiary companies in businesses such as research, chlorine, caustic soda,
paints, rubber chemicals, explosives, polyester fibre, urea, agro-chemicals, seeds,
pharmaceuticals, specialty chemicals, polyurethane, nitrocellulose, and surfactants. In 1984,
all ICI companies consolidated in one of the largest mergers in Indian corporate history. By
1997, as a part of a restructuring exercise ICI had exited or was planning to exit from several
non-core businesses. The 1996 sales break up was as follows: Paints 43%, Explosives 28%,
Rubber chemicals 17%, Pharmaceuticals 8%, and Other Products 4%. ICI India ranked No.
4 in the paint business, after Asian Paints, Goodlass Nerolac Paints and Berger Paints.
Unlike the other paint companies ICI India was a diversified unit and paint constituted 43%
of its net sales. ICI India’s turnover in 1996-97 was $180 million and paint amounted to $77
million. ICI India identified paints as a thrust area and was aggressively moving to improve
their position.

Asian Paints: Asian Paints Limited was established in 1942 as a partnership firm by four
friends Champaklal H. Choksey, Chimanlal N. Choksi, Suryakant C. Dani and Arvind
R.Vakil to manufacture paints in a garage in Mumbai (Bombay). From its humble
beginnings, the company has moved on to become the largest paints company in India with a
market share of 54%. The company with a turnover of ₹ 14179 crores is one of the top ten
decorative paints companies in the world. Its reach and dominance in the Indian market can
be gauged from the fact that it is more than twice the size of its nearest competitor in India
and it has been the market leader in paints industry in India since 1968. The company
operates in 19 countries and has 26 paint manufacturing plants in the world which service
consumers in over 65 countries. The company operates around the world on its own and also
through its three subsidiaries Berger International Limited, Apco Coatings and SCIB
Chemicals. The company aims to become one of the top five decorative paint companies in
the world and has embarked on an aggressive strategy of expanding its global operations.
The promoters hold the majority stake in the company (47% of the equity stake).The next
largest shareholders are the foreign institutional investors (20% stake), followed by Indian
public (17% stake). Domestic banks, financial Institutions, mutual funds and insurance
companies hold 13% stake. Corporate bodies and non-resident Indians hold the remaining
stake.

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Chapter 2

Company
Profile

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2.1 Company Philosophy

Purpose of Corporate Philosophy

An effective corporate philosophy helps a company develop a certain corporate culture,


ethical practices and strengthens the relationship between employers and employees. It also
positions the values of the company in the minds of others both within and outside of the
organization. Your corporate philosophy should give employees a starting point for the
decision-making process, so they are all operating on the same page. Developing a corporate
philosophy gives you something against which you can compare candidates for new
positions, thereby helping you make hiring decisions based on whether an individual will fit
within your corporate culture.

Creating a Corporate Philosophy

One of the first things to consider when creating a corporate philosophy is the purpose of
your business. A company’s philosophy can contain similar verbiage as a company’s mission
statement, but in more detail. For example, the mission statement of a major search engine
company is, “To organize the world's information and make it universally accessible and
useful." A portion of that company’s corporate philosophy includes the statement, “We do
search. With one of the world‘s largest research groups focused exclusively on solving search
problems, we know what we do well, and how we could do it better.” By reading these and
other similar statements in its corporate philosophy, you can ascertain its mission.

Corporate Philosophy Benefits

Small businesses benefit greatly from developing a corporate philosophy. A primary benefit
of a corporate philosophy is that it helps to build long-lasting, trusting relationships between
your business and clients. You should implement your corporate philosophy within every
level of your company, which allows customers to trust that they will receive the same
professional treatment throughout the organization. A corporate philosophy also builds
consistency between your employees. When employees are familiar with the company’s
philosophy, it makes the integration of new hires easier and helps current employees embrace
changes within the company that follow the corporate philosophy. Another benefit of a
corporate philosophy is that it can possibly give your company a competitive advantage
because you possess a clear vision of how you want customers and competitors to perceive
your business.

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2.2 Company History and Milestone

The name Berger or Lewis Berger is today synonymous with colour worldwide. But actually
the origin of the name dates back to over two & a half centuries in England in 1760, when a
young colour chemist named Lewis Berger, started manufacturing in Europe, 'Prussian blue'
using a secret process that every designer and householder coveted. Mr. Berger perfected
this process & art of the blue colour, which was the colour of most military uniform of that
time. Enriched by the imagination of Lewis Berger, the unending quest for creation and
innovation in the world of colour & paints still continues.

The history of Berger Paints India Limited as a company started in 1923 as Hadfield's
(India) Limited which was a small colonial venture producing ready- mixed stiff paints,
varnishes and distempers setup on a 2 acres of land in one of India's first industrial towns
close to Kolkata in Howrah, Bengal. Subsequently in 1947, British Paints (Holdings)
Limited, an international consortium of paint manufacturing companies bought over
Hadfield's (India) Limited and thus the name changed to British Paints (India) Ltd. The
gentleman who took over, as its first managing director was Mr. Alexender Vernon Niblet, an
Englishman who was later on followed by Mr. Alfred Godwin in 1962.

Further in the year 1965, the share capital of British Paints (Holdings) Limited was acquired
by Celanese Corporation, USA and the controlling interest of British Paints (India) Ltd was
acquired by CELEURO NV, Holland, a Celanese subsidiary. Subsequently in 1969, the
Celanese Corporation sold its Indian interests to Berger, Jenson & Nicholson, U.K. Then
onwards the company British Paints (India) Ltd became a member of the worldwide
BERGER group having its operations across oceans in numerous geographies and this
marked the beginning of Lewis Berger's legacy in India – which the company would later
take forward to enviable heights.

From 1973 the company entered into one of its dynamic phases of business with introduction
of new generation products in the industrial, marine and decorative segments under the able
leadership of it first Indian Managing Director Mr. Dongargaokar Madhukar.

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Year 1976 was another turning point in the history of the company when the foreign holding
in the company was diluted to below 40% by sale of a portion of the shares to the UB Group
controlled by Mr. Vittal Mallya. The reins of the company were taken over by Mr. Biji K
Kurien as its Chief Executive and Managing Director in the year 1980. Finally in the year
1983, the British Paints (India) Limited, changed its name to Berger Paints India Limited.

The entire 80s & 90s saw the lunch of many new products from company's stable such as
premium emulsions and high quality acrylic distempers. The COLOUR BANK tinting system
was launched through which the consumer could select from a range of over 5000 shades.

Again the fortunes of the company changed hands in 1991 with UB Group's stake in the
company bought over by the Delhi based Dhingra brothers, Mr. K.S. Dhingra & Mr. G.S.
Dhingra and their associates of the UK Paints Group. Presently Dhingras' control a majority
stake of almost 73% in Berger Paints India Limited, which is a professionally managed
organization, headquartered in Kolkata, with the stewardship resting since 1994 until 2012
with the Managing Director Mr. Subir Bose. The current Managing Director of Berger
Paints India Ltd is Mr. Abhijit Roy.

2.3 Company Background

Established in 17th December, 1923, the company then known as Hadfiled's (India) Limited;
was a small paint company based in Kolkata having its only manufacturing facility at
Howrah, West Bengal to produce ready mixed stiff paints, varnishes and distempers. Post
independence, towards the end of 1947, British Paints (Holdings) Limited, U.K acquired
Hadfield's (India) Limited and thus British Paints (India) Limited was incorporated.

From a production capacity of 150 tonnes and sales turnover of around ₹ 25 lacs in 1947, the
company has come a long way to become at one point of time; a part of the worldwide Berger
group in 1983 and thereby acquiring its present name Berger Paints India Limited to having
subsequently gone through further ups & downs as well as ownership changes to gain its
present status wherein the majority stake is with Delhi based Dhingra brothers and
business revenue more than ₹ 2400 crores.

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Today Berger Paints India Limited, having solely used and developed the name and
trademark Berger and all its variants in India, is a household name in paint. With Head
Office in Kolkata the company manufactures and markets a range of decorative & industrial
paint products under various product brands and has it operations spread throughout the
length & breath of the country; with seven manufacturing facilities in India and more than 85
depots, several regional & area offices, besides four facilities overseas. It has a workforce of
over 2500 employees and a countrywide distribution network of 15000+ dealers.

Berger Paints has clearly demonstrated its commitment to Indian consumers for over 88
years, by offering its varied range of high performing quality products backed by highest
level of customer service. Company's high ethical standards in business dealings and its on-
going efforts in community welfare make Berger Paints India Limited a responsible
corporate citizen. While the company's decorative and Industrial paints continue to gain an
increasing market share, Berger as an organization has managed to achieve sustainable
competitive advantage through innovations in all spear of business, desire to excel and by
creating a winning culture & abiding faith in its values & philosophy among all its
stakeholders.

2.4 Board of Directors

 Mr. Kuldip Singh Dhingra (Chairman)


 Mr. Gurbachan Singh Dhingra (Vice-Chairman)
 Mr. Abhijit Roy (Managing Director and CEO)
 Mr. Kamal Ranjan Das
 Mr. Pulak Chandan Prasad
 Mr. Naresh Gujral
 Mr. Gopal Krishna Pillai
 Mr. Dhirendra Swarup
 Mr. Kanwardip Singh Dhingra
 Mrs. Rishma Kaur

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2.5 Landmark Projects

The Mumbai Skywalk Project is a series of


skyways for pedestrian use in the Mumbai
Metropolitan Region. The skywalks connect
Mumbai Suburban Railway stations or other
high-concentration commercial areas with
various heavily targeted destinations.

Le Méridien New Delhi is situated two


kilometers from Rashtrapati Bhawan – the
home of the President of India, the
Presidential Palace, Parliament House, and
Connaught Place.

The T A Pai Management Institute


(TAPMI) located in the international
university town of Manipal (Karnataka), is
among the leading management institutes in
India, and is reputed for its academic rigor
and faculty-student interaction. Founded by
the visionary, Late Shri. T. A. Pai, TAPMI’s
mission is to provide much needed impetus to
the task of building professional management
capability in the country. In the process, it
has also played a role in strengthening the
existing educational and health
infrastructure of Manipal.

Page | 26
Shangri-La's Eros Hotel, New Delhi - one
of the city's eminent five-star hotels.

The land on which Mantri Greens is built


was once Royal property belonging to none
other than The Maharajah of Mysore. Not
only that, the title document bears the
signature of world renowned engineer and
Statesman - The Dewan of Mysore, Sir M.
Visvesvaraya. The authenticity of this title
has stood intact for more than 110 years. You
could say it is rock solid and built to last.
Something we're sure Sir M. Visvesvaraya
could be proud of. This is just one aspect of
the legacy surrounding Mantri Greens. A
place where nobles used to live and wander
around its beautiful scenery, a picture
straight from the heart of an artist. Now, it is
a place where you and your families can
enjoy the rich and scenic nature for a
lifetime. A constant companion in our
journey forwards a calming salubrious life
lending direction to blissful peace.

Page | 27
Swaminarayan Akshardham in New Delhi
epitomizes 10000 years of Indian culture in
all its breathtaking grandeur, beauty, wisdom
and bliss. It brilliantly showcases the essence
of India’s ancient architecture, traditions and
timeless spiritual messages. The Akshardham
experience is an enlightening journey
through India’s glorious art, values and
contributions for the progress, happiness and
harmony of mankind.
The Calcutta Club was set up in 1907 in
response to the discriminatory practices of
the Bengal Club which admitted only white
members. Today, it is not just popular but
also one of the most prestigious clubs in the
city. A membership to the club is so coveted
and the list of prospective members believed
to be so large, that it takes over a year before
the screening committee finds time to
consider the suitability of an applicant.

Bengaluru International Airport is an


international airport serving the city of
Bangalore. The airport is located 4
kilometers south of Devanahalli and is 40
kilometers from the central business district
of Bangalore, and covers 5130 acres.

Page | 28
What was founded in 1994 as a development
and maintenance services arm of The Dun &
Bradstreet Corporation and Satyam
Computers and Services Ltd., blossomed into
an independent organization called
Cognizant in a matter of two years.

One of the first IT services companies with


key industry verticals as well as technology
horizontals, it has significant practices in
banking and financial services, insurance,
health care and life sciences, retail,
manufacturing, logistics, travel and
hospitality, communications, and
information, media and entertainment
industries, besides others. In 2009 it
appeared in Fortunes 100 Fastest-Growing
Companies List for the seventh consecutive
year.
A cricket ground in Kolkata, India that is the
home of the Bengal cricket team and the
Indian Premier League's Kolkata Knight
Riders, as well as being a venue for Test,
One Day International and Twenty20
International matches. The largest cricket
stadium in India and second-largest in the
world by seating capacity, it is widely
acknowledged to be the most iconic cricket
stadium in India. Eden Gardens has been
called "cricket's answer to the Colosseum".

Page | 29
Modernization and redevelopment of CSIA is
a reflection of India’s rapid growth. Being in
the financial capital and a key gateway of the
country, redevelopment of CSIA holds great
significance in aiding the city to retain its
fast paced growth.

Gold Souk Grande is a large format multi-


specialty mall in Chennai. The ₹ 250 crore
project is spread across 8 lac sq. ft. The mall
which has started operating since March
2011 has a hypermarket, food court, anchor
stores and a multiplex. Like all malls it
houses stores offering lifestyle products,
accessories, electronics, footwear, cosmetics
and more.
₹ 275 crore were poured into making the
mall and the five-star hotel of City Centre II
– a multi-utility urban infrastructure project.

The project, which took three years to get


completed, is built on five acres of land. City
Centre II, at Rajarhat is just 3 km from the
Netaji Subhash Chandra Bose International
Airport. It has been designed to give a boost
to the hotel business while the mall caters to
the people of north Kolkata largely.

Page | 30
All-India Institute of Medical Sciences was
established as an institution of national
importance by an Act of Parliament with the
objects to develop patterns of teaching in
Undergraduate and Post-graduate Medical
Education in all its branches so as to
demonstrate a high standard of Medical
Education in India.

A new landmark in the heart of Delhi. A


prime location just minutes away from the
central business district - Connaught Place,
the Commonwealth Games Village is Delhi's
only purpose-built, self-contained premium
residential community.

The Indian Institute of Technology


Kharagpur is a public engineering,
management and law institution established
by the Government of India in 1951.

Page | 31
A high rise condominium spread over five
acres, Teen Kanya overlooks Lake Nucifera.
The three towers, 16 storied each, arranged
in a semi circle overlook the 100 acre water
body. Plenty of natural light, perfect cross
ventilation and a whole host of state-of-the-
art amenities make the flats of Teen Kanya,
in Action Area II of Rajarhat, perfect for
living. Living here is like living in the heart
of nature with all the modern facilities you
can dream of.

The National Library of India at Belvedere,


Kolkata, is the largest library in India by
volume and India's library of public record.
It is under the Department of Culture,
Ministry of Tourism & Culture, Government
of India.

Page | 32
2.6 Berger’s Presence in India

Berger's presence in India consists of factories in 7 locations spread over all four major
regions of the country. Besides this, Berger has its presence in over 80 locations all over the
nation, and a dedicated sales team in all locations with an empowered support staff to cater
to the customer's every need.

Page | 33
2.7 Berger’s Presence all over the World

Apart from operations in Russia, with a production facility at the Berger manufacturing unit
at Krasnodar, Berger has also expanded its footprint in Nepal by setting up a second unit.
Today, Berger's sister company in Bangladesh is the dominant leader, with over 65% market
share. In keeping with the Company's dynamic growth plan, Berger has also acquired Bolix
SA of Poland, a leading provider of External Insulation Finishing Systems (EIFS) in Eastern
Europe. As Berger continues to grow internationally, it also continues to be the second
largest paint company in India. Berger is the lone supplier to Nuclear Power Plants with its
protective coatings. The automotive sector, be it cars or bikes, is primarily ruled by Berger's
automotive coatings. Luxury cars, including Mercedes, make use of Berger's products.
Companies like Nokia use Berger's services as well. Berger has also tied up with Becker of
Sweden to manufacture coil coatings for steel surfaces.

Page | 34
2.8 Marketing Mix in relation to Berger Paints

Marketing decisions fall into four main controllable categories namely

 Product
 Place
 Price
 Promotion

Relating these factors with respect to Berger Paints

Product: Berger is committed to offer quality products that satisfy consumers’ ultimate
desires from paints with the help of state-of–art technology. Berger always believes in one
step ahead in offering new product to create more value for customers’ money. Berger
outsmarts other competitors of the market through its one step in advance policy and
innovative market offers. Berger is trying to fill up all holes of the market through offering a
wide range of products to meet the needs (Premium to Economy Paints) of different types of
users and to solve the different types of functional requirements (Industrial, Decorative &
Marine). Due to shift in market growth trends Berger is trying to establish itself in the
economy segment of the paint market.

Place: Another major component of marketing mix is place. During our visit at Berger I was
able to include inventory, transportation, coverage, channel, logistics and market and market
segments etc. under these marketing mix components.

Differentiated market segment

Berger’s market segments are differentiated. They use different types of marketing mix for
different segments. Their product quality, advertisement, promotional techniques, price are
high for upper class customers. Again for the people of middle class on the basis of their
income, occupation, taste, lifestyle different marketing policies are applied. We can observe
this deviation in TV advertisement.

Page | 35
Inventory

Berger has divided their products in A, B, C category. For inventorying their products
Berger is following some storing norms. Depending on this storing norms company decides
how long their product will stay in the market in accordance with the existing sales trend of
that particular product. This is how the firm can determine when to order and how much to
order.

Transportation

To ensure customer satisfaction Berger uses modern and fastest going covered van as
transportation carrier while moving goods from depots to dealers. But when they move goods
from factory to depots they use public transportation carriers such as truck and railway as
rental basis.

Distribution network

With Head Office in Kolkata the company manufactures and markets a range of decorative &
industrial paint products under various product brands and has it operations spread
throughout the length & breath of the country; with seven manufacturing facilities in India
and more than 85 depots, several regional & area offices, besides four facilities overseas. It
has a workforce of over 2500 employees and a countrywide distribution network of 15000+
dealers. The orders are collected by the sales executives and passed on to the nearest depot.
The depots are fed by regional warehouses. These depots maintain a minimum order quantity
which is arrived at from the monthly demand forecast. The material is dispatched from the
depot in the name of the dealer. Generally some orders of the same region are clubbed
together and dispatched in trucks. Finally the truck is unloaded and the small orders of the
dealers are dispatched to them.

Page | 36
Price: In the paints industry price is the used only as a differentiator between the various
segments in the same product line. The prices of different brands in the same segment remain
more or less similar, with just a difference of 30 to 40 paise per square feet. Some of the
specialty products, which are not produced by all brands, may be priced at a higher price.
Pricing decisions in the paint industry largely depend on the price of the inputs like petro
products, other raw materials, excise duties and taxes and the general operating profits.
Generally increase or decrease of prices is affected across all brands in the market. Most of
the paint companies offer a 5% margin to the dealer. Due to internal competition, the dealers
pass on this advantage to the customers by reducing their own margins to 2-3%. This is a
cause of concern for the paint companies because they have to keep a constant check on the
prices offered in the market. The dealers offer more of discounts and the companies are not
able to firm up the prices. Paint companies offer a lot of discounts like cash discounts,
volume discounts, seasonal discounts and allowances. The dealers take advantage of these
discounts to gather more business.

Promotion: The paint industry until 1999 was concentrated mostly on increasing sales by
intensive trade promotion wherein the dealers, contractors and other components of the
supply chain. There was little emphasis on theme advertising directed towards the customer.
A recent trend that is emerging in the Indian paint market is that the major brands have all
identified the importance of reaching out to the common man instead of just limiting
themselves to the intermediaries.

Advertising strategy: Berger follows different strategy for developing its strategy. It depends
on some characteristics that is product life time, brand etc. Media: Berger used different
media for advertising like: on-air advertisement, television, newspaper, magazines.
The dealers are educated with the company background, products and service etc.
The
time to time selling incentive is given by company according to performance of
dealer and market demand.

In-Store Displays: Point-of-Purchase, Berger paints Banners, Demonstrations of colour on


wall, etc are provided by the company.

Page | 37
Temporary Price Reduction (TPR): They get margins plus some incentives promotion scheme to
maintain the dealer. Contests: Dealer to dealer contest is kept to promote push strategy and
best dealer gets the reward. Berger paints likes to do the same within same geographic areas.

Sampling: Allowing the dealer to experience the product or service by providing free samples so as he can
promote word of mouth. Berger’s sales promotion consists of short-term incentives to encourage
the purchase of sale of a product or services. Berger Paint’s advertising has created brand
awareness highlighted what the brand has to offer and has consistently brought all of it top-
of-the-mind for the customer. But the outreach effort does not end there. Berger Paints has
recognized the importance of communicating to and involving key players who influence the
final brand choice. These include channel partners, contractors and painters, on whom
Berger Paints focuses by initiating and developing innovative activities and promotions. This
helps build the Berger Paints family so that customers get a high degree of personalized
service and professional guidance to facilitate their final decision.

Sales Promotion

Sales Promotion is an important component of marketing communications mix. It adds an


extra value to the product and hence prompts the dealer or consumer to buy the product. In a
specific sense, sales promotion includes those sales activities that supplement both personal
selling and advertising, and coordinate them and make them effective, such as displays,
shows, demonstrations and other non-recurrent selling efforts not in the ordinary routine.

Sales promotion can be used:

 For facilitating introduction of new products


 For overcoming unique competitive situation
 For unloading accumulated inventory
 For overcoming seasonal slumps
 For getting new accounts
 For retrieving lost accounts
 As a support and supplement to the advertising effort
 As a support and supplement to the salesmen’s effort
 For persuading salesmen to sell the full line of product
 For persuading the dealer to buy more or increase the size of order

Page | 38
Commonly Used Tools and Techniques of Sales Promotion:
 Demonstrations
 Trade Fairs and Exhibition
 Coupons, Premiums, Free offers, Price-offs, etc
 Free samples
 Joint promotion
 Contests (consumer contests, dealer contests)
 Merchandising or Display
 Sales promotion on the internet

The company has been concentrating more on sales promotion than on advertising. On
analyzing the customer survey data it becomes evident that since the customer is returning to
the store after an average of about three years it is better to concentrate more on the dealers
who are in the business throughout the year. Keeping this in mind the company’s decision of
doing more sales promotion than advertising stands justified. Sales promotion can broadly be
divided into two categories:
Customer promotion: This section includes all the sales promotion activities directed
towards the customers. Scratch cards that are provided with specific size of packages are
examples. The company comes out with many different sales promotion schemes during the
festival season, especially the Durga Puja festival in Orissa and West Bengal. There are a
number of gifts and schemes on the larger packs. Coupons and free gifts are offered on packs
of more than 10 kgs. The company also offers a large number of services to the customers to
assist them in their buying decisions. These services are offered on the company’s website to
make it accessible to a very wide range of customers.
Trade promotion: As part of the company’s policy, huge emphasis is given on trade
promotion. The dealers and contractors who are a part of the distribution chain are given
special attention. The company comes up with several incentive schemes for the dealers. The
most popular schemes include cash discounts, foreign trips and gifts such as refrigerators etc
for dealers who succeed in meeting or exceeding pre-determined sales targets. The company
also organizes regional dealer meets regularly. Here the dealers are briefed about the
company’s new products and the technical details and application procedures of these
products. The company also aims at building and retaining dealer loyalty through these
meetings.

Page | 39
2.9 Financial Summary of Berger Paints India Limited (Standalone) - Five Years at a
glance

in ₹ crores

FY 2015-16 FY 2014-15 FY 2013-14 FY 2012-13 FY 2011-12


Gross Sales 4580.72 4212.94 3735.35 3330.61 2901.22
EBITDA 642.16 509.59 420.23 367.08 253.30
PAT 354.87 396.25 327.70 293.13 211.10

Gross Sales (in ₹ crores)


5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
2011-12 2012-13 2013-14 2014-15 2015-16

Gross Sales

An upward trend line shows that the sales volume have risen over the past years, it gives an
impression that the company has been continuously progressing.

Page | 40
Chapter 3

Research
Problem &
Background

Page | 41
3.1 Background

The purpose of this project titled “A Study on Customer Satisfaction towards Home
Painting Service with Specific Reference to Berger Express Painting” is divided in three
parts.

I. The study includes visiting customers of Berger Express Painting and taking their
feedback on how well their painting has progressed. These data which has been
collected through the interview has helped in deriving many conclusions regarding the
customer satisfaction.

The above one is totally a qualitative research based on a descriptive research design.

Berger Express Painting was developed to change the process of painting by offering a
“Faster, Cleaner, Better” way to paint homes using automated tools that give walls a
fantastic finish in 40% lesser time It further beats conventional manual painting by cutting
down on time and providing a dust free environment and that too at no extra cost. A true
customer-centric innovation from the house of Berger Paints.

Customer satisfaction is a marketing term that measures how products or services supplied
by a company meet or surpass a customer’s expectation.

Customer satisfaction is important because it provides marketers and business owners with a
metric that they can use to manage and improve their businesses.

Here are the top six reasons why customer satisfaction is so important:

 It’s a leading indicator of consumer repurchase intentions and loyalty

 It’s a point of differentiation

 It reduces customer churn

 It increases customer lifetime value

 It reduces negative word of mouth

 It’s cheaper to retain customers than acquire new ones

Page | 42
II. Berger Paints has been conducting “Core Painters’ Training” for their Master Painters
in different locations across West Bengal required for using Berger Express Painting
tools.
Berger Paints provide vocational training to both new and experienced paint applicators.
These courses enable the trainees to build expertise and become specialist paint
applicators for using Berger Express Painting tools.

III. Berger is engaging them in brand loyalty programs for their Master Painters by offering
tokens through coupons to them found in the paint containers which can be redeemed for
cash later. These schemes will definitely serve the company to achieve its goal.
As a part of the above scheme, Berger has recently introduced an offer called “Token Jamao
Bike Chalao” where the Master Painters stand a chance to win various prizes such as
Speaker System, Bike, TV, Dinner Set and Room Heater.

Here, the Master Painters need to register coupons during the scheme period i.e., 18th
August-31st October, 2016 and be a part of the lucky draw. More the coupons, more are the
chances of winning multiple prizes.

3.2 Research Problem

I. Analysis of the data collected through structured interview of the customers of Berger
Express Painting to derive conclusions regarding the customer satisfaction.

II. Updating the status of attendance in Core Painters’ Training by the Master Painters.

III. Informing the Master Painters about the scheme “Token Jamao Bike Chalao”.

Page | 43
Chapter 4

Objectives &
Scope of Study

Page | 44
4.1 Objectives

The main objectives of the study are listed below:

 To analyze data and derive conclusions on customer satisfaction of Berger Express


Painting customers
 To collect information regarding the attendance in Core Painters’ Training by the
Master Painters
 To inform the Master Painters about the scheme “Token Jamao Bike Chalao”

4.2 Scope of Study

The main scopes of the study are listed below:

 It gives us information on how the customers are satisfied by using Berger Express
Painting and what are their expectations from the company in future
 It gives us information on whether the Master Painters have attended the Core
Painters’ Training or not
 It gives us information on whether the Master Painters are interested about the
scheme “Token Jamao Bike Chalao” or not

Page | 45
Chapter 5

Project
Methodology

Page | 46
5.1 Research Objective

The prime objective of this study was to analyze data and derive conclusions on customer
satisfaction of Berger Express Painting customers.

5.2 Research Design

The study on customer satisfaction towards Berger Express Painting is a qualitative research
based on a descriptive research design.

5.3 Data

 Primary data: Primary data collected by interviewing the customers of Berger


Express Painting
 Secondary data: Secondary data collected is mostly web-based in nature

5.4 Research Instrument

A questionnaire for the customers was used. All the questions were closed-ended with 3
choices each being given whereas remarks or conclusions were open-ended.

5.5 Research Tool

Statistical tools like

 Bar chart
 Pie chart

have been used in this research to derive the conclusion.

Page | 47
5.6 Research Plan

Step 1: Customers were being called over phone.

Step 2: If they were found interested or available, appointment for the interview was fixed to
take their feedback on how well their painting has progressed.

Step 3: Questionnaires were filled up for the customers in such manner. Various responses
regarding remarks or conclusions were recorded such as:

 Contacted and feedback given previously


 Contacted and painting is cancelled/substituted
 Could not be contacted as phone number does not exist
 Could not be contacted over phone
 Denied giving feedback on arrival
 Dissatisfied
 Dissatisfied with Customer Executive
 Dissatisfied with Customer Executive & Team Leader
 Dissatisfied with Customer Executive, Contractor and labor
 Dissatisfied with substituted labor performance
 Feedback incomplete as work has just started
 Feedback could not be taken due to other reasons
 Satisfied
 Satisfied and suggested Check payment over cash
 Satisfied but Customer Executive communication is less as per customer
 Satisfied but explanation regarding one particular charge system was improper

5.7 Sample Size

Sample size: 41

Successful surveys: 27

Failures: 14

Page | 48
Chapter 6

Data Analysis
&
Interpretation

Page | 49
6.1 Customer Feedback

Customer responses have been categorized into 4 different types namely:

 Satisfied
 Completely satisfied
 Dissatisfied
 Completely dissatisfied

Customer Responses No. of Customers


Satisfied 4
Completely satisfied 18
Dissatisfied 4
Completely dissatisfied 1
NB: No. of Respondents was 27

No. of Customers

Completely dissatisfied

Dissatisfied

No. of Customers
Completely Satisfied

Satisfied

0 5 10 15 20

Page | 50
No. of Customers
Satisfied Completely satisfied Dissatisfied Completely dissatisfied

4%
15%
15%

66%

Interpretation

 Approximately 70% customers are “satisfied” using Berger Express Painting service
 Customer satisfaction is maximum for 4 customers while 4 other are “dissatisfied”

Page | 51
Chapter 7

Observations
& Findings

Page | 52
7.1 Customer Satisfaction

 Based on the survey it was observed that customers residing in urban area were more
satisfied than their semi-urban counterpart
 It was also observed that the sub-contracted Contractor and Master Painters were not
been able to perform up to the customers’ expectation
 The Master Painters used conventional tools instead of Berger Express tools which
seem to make no difference to the painting service
 The Master Painters failed to use the Berger Express Painting tools several times
which indicate that they were not trained properly
 The representatives of Berger Express Painting such as the Customer Executives and
Team Leaders also failed on several occasions communicating with the customers
during the follow-up process

Page | 53
7.2 SWOT Analysis of Berger Paints

 With nearly one-fifth market share and is ranked one of the top 2 in
India

 Manufactures and markets wide range of decorative and industrial


paint products under various product brands and has a substantial
market share

 It has well established operations & supply chain network spanning


throughout the country with 7 manufacturing facilities, 85 depots,
several regional & area offices with 2500 employees and over 15000
dealers

 Green Horizon an initiative taken towards reducing waste and


conserving natural resources; launching eco-friendly and energy
efficient products
Strengths
 Berger Paints has excellent brand perception and brand awareness
amongst its potential customers

 It provides with high quality products and has very high market
space both in terms of visibility and sales

 The Company has international presence: it has 4 manufacturing


facilities abroad; operations in Russia, Nepal, Europe and
Bangladesh

 Berger Paints is a lone supplier of protective coatings to Nuclear


Power Plants

 Its industrial and automotive coating is used by the best automobile


companies like Mercedes

 Dependence on decorative segment where competition is intense


Weaknesses  High levels of lead found leading to negative publicity
 Limited liquidity options

Opportunities  New Product launches and innovation with changing trends

Page | 54
 Strong growth Potential in India owing to urbanization

 Business diversification

 Product diversification

 New entrants in the industry and local companies


Threats  Fluctuations in raw material prices
 Stiff competition

Page | 55
Chapter 8

Recommendations

Page | 56
 Semi-urban customer experience is a matter of concern which Berger needs to focus
in
 Sub-contracted Contractor and Master Painters of more efficient nature need to be
contracted for better painting results
 Contractor and Master Painters should be encouraged to use Berger Express
Painting tools otherwise the service would generate negative publicity. Discounts
should be introduced for the benefit of Contractor and Labor
 Proper and regular vocational training need to be conducted for the purpose of better
paint application by the Master Painters
 Customer Executives and Team Leaders must address their customers regularly and
accordingly. The follow-up process is a vital element in the sales process which helps
in the retention of the customers and increase brand loyalty

Page | 57
Chapter 9

Limitations &
Scope of Study

Page | 58
9.1 Limitations

 Only 27 customers have been interviewed which comprises a very small sample
 Survey area was confined to South Kolkata and parts of South 24 Parganas
 Time span was limited to 2 months
 Questions were mostly open-ended

9.2 Future Scopes

 This study can be used by the company to improve customer experience and thus
increase customer satisfaction
 Involve better Contractor and Painters for better performance
 Sales Promotion of Berger Express Painting tools encouraging Contractor and
Painters to purchase
 Analyze the requirement of effective vocational training for their Master Painters
 Better control over the Customer Executives and Team Leaders

Page | 59
Bibliography
& Reference

Page | 60
Bibliography

I. Marketing Management by Philip Kotler & Kevin Lane Keller


II. Marketing Research: An Applied Orientation by Naresh K. Malhotra
III. Advertising and Promotion: An Integrated Marketing Communications Perspective by
George E Belch & Michael A Belch

Reference

I. https://www.bergerpaints.com
II. https://en.wikipedia.org/wiki/Berger_Paints_India
III. http://www.slideshare.net
IV. http://www.ipaindia.org
V. http://cmrindia.com

Page | 61
Appendix

Page | 62
Page | 63
Page | 64

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