Paint
Paint
Paint
Painting enhances the aesthetic beauty, ambience and provides protection to the
interior and exterior wall of a house. Over the last 10 years, painting was never
a priority during house construction but due to urbanization, industrialization
and consumer behavior people became aware about the importance of selecting
right quality paints.In the paint industry, there are four key players- Asian
Paints, Berger Paints, Dulux and Nerolac.Product differentiation is quite
important to sustain in the market. The firms have employed many innovative
techniques like color mixing equipments at the dealer shops, consultancy
service on colors, free information through brochures on mobile applications,
websites etc. They came up with new color combinations, new products like
easy clean, eco-friendly and lead free green paints etc.The study looks forward
to understanding the parameters considered by customers in selecting a painting
service and to identity the influence of various factors in buying decisions. The
study also covers the consumer awareness of advertising messages of paint
services.
1
CHAPTER 1
INTRODUCTION
The GST rates have been reduced to 18% from 28% which is a straight
cut of 10% as reported in the 28th GST council meeting. The rate reduction has
led to a higher projection in sales. The growth is about 10 to 15 percent in the
fiscal year of 2018-19. Clearly, a 10% reduction in tax rate comes as a major
relief for paint manufacturers. Paint used to appear as a luxury product, but now
it is considered as one of the essential one. Every human being loves to build his
or her own house whether small or big and requires paint it to increase its
beauty. They paint their houses for enhancement of beauty and
ambience.Depending on the type and properties paint performs these two main
functions:-
Protection against oxidation, corrosion and degradation of material.
Protection is one of the major functions of the paint. Once applied and dried, the
paint forms a insulating layer between the external environment and the
material is protected and prevented from external agents such as humidity, air,
UV rays, chemical pollutants (vehicle/factory emissions) etc.Decoration is
another major function of paint- to decorate and beautify. The pigment and
additives helps to get a wide range of colours and decorative effects like
chameleon effect, mercury effect etc.
a.ASIAN PAINTS:
The Indian multinational paint company headquartered in Mumbai,
Maharashtra. The company is engaged in the business of manufacturing, selling
and distribution of paint, coating, products related to home décor, bath fittings
and providing of related services.
Asian Paints is India’s largest and Asia’s third largest paint corporation.
Found: 1942
Founder: Champaklal & Chimanlal Choksi CEO: Mr. K.B.S Anand
Panting Service Name: Home Painting Solution
b.BERGER PAINTS:
It is a multinational company based in India. Berger Paints is 6 th largest
company in Asia and ranks 14 th in the world. The company headquartered at
Kolkata and has 13 manufacturing units in India - Goa, Jammu, Pondicherry,
Secunderabad etc. Howrah is their main manufacturing units. They have an
employee strength of over 4500+ and countrywide distribution network of
25000+ dealers
Founded: 1923
CEO: Mr. Abhijit Roy
Painting Service: Home Décor -Berger Express Painting
c. AzkoNobel (DULUX):
Dulux is an internationally available brand of architectural paint. The
brand name has been used by both Imperial Chemical Industries (ICI) and
DuPoint since 1931 and was one of the first alkyed based paints. It is produced
by AkzoNobel- a Dutch multinational company which crates paints and
performance coating for both industry and consumer worldwide. Headquartered
in Amsterdam, the company has activities in more than 80 countries and
employs approximately 46,000 people.
Founded: 1994
CEO: Mr. Patrick Haulihan & Mr. Rajiv Rajgopal (India) Painting
Service: Bring your Dream Colour to life
d. NEORLAC
Kansai Nerolac Paint Limited (formerly known as Goodlas Nerolac Paint
Ltd.) is a subsidiary of Kansai Paints of Japan. It is engaged in the industrial
automotive and powder coating business. It develops and supplies paint
systems used on the finishing line of electrical components cycle, material
handling equipments, bus bodies etc.
Found: 1920
CEO: Mr. HM Bhoruka
Painting Service: Brighten Up your Home
Over the past years, the Indian paints and coatings industry has substantially
grown and caught the attention of many international players. The country is
expected to witness a higher economic growth in the future leading to a larger
market size for paint and coating industry. Other emerging countries in Asia-
Pacific region are also witnessing this growth as these places are backed by
higher disposable income, exponentially growing population, improving
Infrastructure and huge investments in infrastructure. Indian paints and coatings
market is mainly driven by demand of two types of paints, decorative paints that
constitute 75per cent of the market and industrial paint which constitute the
remaining 25per cent. The major players in Indian paints & coatings market are
Asian Paint, Kansai Nerolac, BergerPaints,AkzoNobel and Shalimar Paints. The
Indian paints & coatings market is highly organized with about 70per cent of
market domination by organized player.The market tends to have a
monopolistic competition, led by Asian paints.With improvements in standard
of living and growth in awareness about paints and coating, the Indian
consumers have become more conscious about how the house interior and
exterior looks. They have shifted the focus from regular paints and distempers
to enamel and premium paints. This change has driven demand for premium
paints in the market. The Indian market recorded a tremendous growth of 45per
cent in last five years. The rural sector is still an untapped market of India.
Companies show focus on coming up with paints and coatings which are
consumer specific to the villagers and small towns of India. The global Paint
and Coating industry has witnessed a healthy growth in past few years. Its
market size is about US$99Billion. The market is expected to witness a
tremendous growth in the emerging nations of the world.
1.6 OBJECTIVES:
Research is a detailed and careful study of something to find out more
information about it. It is a systematic investigation into and study of materials
and sources in order to establish facts and reach new conclusions.
The objectives of the study are:
To identify the primary parameters considered by customers
in selecting a painting service and to measure those parameters in satisfaction
measurement.
To identify the influence of various people in buying
decisions (Family, contractor etc).
Customer Awareness of advertising messages of paint
services.
To Determine the Market leader in the Paint Industry and then to
identify its key Success factors.
To Evaluate the performances of the Paint companies on the basis of
Quality Management and Competitiveness.
Primary Data
Research Design
Secondary Data
a) Primary Data:
Questionnaire
b) Secondary Data:
c) Area of Study:
COIMBATORE
d) Sample Size:
150 Samples
e) Method:
Survey analysis
A case study of Sansuan Company was under taken by Sadeghi and Farokhian
(2011) to identify and understand the concept of customer satisfaction through
inclusion of customers' requirements and needs in the design of products
manufactured. The study investigated the relationship of product performance
on customer satisfaction and loyalty. Product performance is measured by
satisfaction of basic needs, performance needs and excitement needs of
customer and the value provided whether expected or unexpected. This paper
concluded with the finding of significant and direct relationship between the
design of a product and the expected value, the unexpected value and customer
satisfaction and, the expected value and customer loyalty.
Rowley (1997) in his research work had commented that consumer buying
process offers two useful perspectives: the decision-making process associated
with consumer buying and the factors which affect the buying process. The
author further stated that the consumers buying process can be divided into
personal, psychological and social and cultural factors. The ‘social factors’,
such as consumer’s small groups, family, reference group, social roles and
status can affect consumer responses and influence their buying
behavior.‘Personal factors’ such as age, lifecycle stage, occupation, education
and economic situation, and ‘Psychological factors’ such as, motivation,
perception,learning, beliefs and attitudes and personality, also play major roles
in consumer decision-making process.
Hawkins et. al., (1998) says that for many products, consumers frequently have
numerous choices as to where they are going to actually obtain the product. In
the old days, most consumers had access only to "general" stores for most
products. Gradually, in urban environments, specialty and discount stores
evolved. Today, a consumer may generally choose to buy most products either
at a relatively high price, frequently with a significant amount of service, in a
specialty store, or with lower service in a discount store.
Peter & Olson (1999) says that consumer behavioral intentions reflection of
their plan of action or the proposition associating one’s self with a future action
or behavior.
Sundaram Rajagopalan (2013) in his report pin point that in coming years’
urban middle class will always dwarf. Urban affluent consumers in spending
power because of their sheer size. Product will proliferate, consumer will
complain of excess choice although would love the excess choices. Consumers
will enjoy income levels unmatched by that of previous generations. (esp in
Metros and large towns) Widening income levels, migration (rural to urban)
will create new opportunities. Most consumers will continue to embrace
traditional and modern values and will be eager for modern products with
Indian tastes.
According to Homer and Kahle, (1988) personal values have been found to be
the underlying determinants of various aspects of consumer attitude and
behaviour.
Weiner (2000) observe that “Consumer attributions play their role in post-initial
outcome decision making; that is, attributions intervene and exert their influence
after a product-related outcome and prior to the next choice. Attributions arise
when one evaluates the extent to which the initial product performance
corresponds to one’s level of aspiration vis-a`-vises that product, and one then
questions the cause of the outcome. It has been definitively documented that
attribution search is more likely following failure(dissatisfaction, in this case)
rather than after success (or satisfaction). After all, we typically do not ask why
we did well on an exam, or why a submitted paper was accepted, but rather why
we failed and why our manuscript was rejected. And we do not ask why a
product ‘worked,’ but why it did not function”.
Dick and Basu (1994) say that loyalty can be examined from the relationship
between customer’s attitude toward a product, brand, service, supermarket or
store, seller and the customer’s patronage behaviour.
Mowen(2000) had identifying the vital attributes that influence consumer
decision making and shopping behavior, marketers can refer to important
attributes that are relevant to each of the market segments. Attribution theory
can also be applied in explaining consumer shopping behavior as future
patronage intentions is often influenced by both store and consumer variables.
To the similar concept Etzel, Walker and Stanton (2001) says that “A
consumer’s opinions and personal relevance that is felt toward presented
references to one’s selfconcept or self-identity via a non-personal, sponsor-
identified, paid message.
Kim et al (2002) says that as more resources become available, consumers may
desire more emotional image attributes in products or brand.
Ling, Choo, and Pysarchik (2004) note that Indian customers’ attitude towards
new products are changing significantly and this can increase their intention to
shop in new retail outlets such as supermarkets. Thus, product attributes such as
quality, price and availability of new products are important constructs within
the Indian context.
Miranda, Konya and Havrila (2005) research suggests that quality, price,
availability of new products and product value are the product attributes that
influence consumer attitude.
Sheth, Newman and Gross (1991) opine that in general, the Indian consumers
were indifferent in choosing the brand, since a lot of close substitutes were
available in the market. Due to technological and knowledge up-gradation,
today’s customers prefer to opt for branded product. This is because of an urge
for getting proper value against payments made.
According to Mishra (2007) the Indian market has seen vast changes in
political, economic and social environment which has a great impact on
consumption.
Singh (2007) is of the view that production oriented market has been shifting
towards consumer oriented market. Traditional consumption pattern has also
been facing large-scale changes.
Priya Soni (2010) study aimed to evaluate the customer’s perception towards
the purchase of branded products. She says that there is prevailing high
competition among various brands in India. In every product
category,customers have more choices and higher expectations. The success of
the strategy depends heavily on the marketer’s understanding of the preference
building and bonding process. Since brands seeks reflecting consumer
preferences and wants.
Johnson et al., (2000) says that businesses need to attract and establish a
customer market and would need to retain it through satisfaction. That is the key
to its business performance.
As per J.D. Power and Associates report (2012) it has been found an additional
contributor to increased satisfaction is customers' experience with paint
retailers. More than one-half of customers who purchased paint received
guidance on their painting project from the retailer and more than one-third
received color selection advice. Interestingly, satisfaction is higher among
customers who purchased their paint directly from a manufacturer's specialty
store (e.g., Sherwin-Williams, Dunn Edwards) than among those customers who
purchased from a home improvement retailer.
According to Mishra (2002) Indian customers look for the fresh solutions to
their problems and in addition with better value for their money.This persuades
the paint industries to introduce products of some value with the lower cost.
Some new types of paints launched by the companies to attract more customers
are; washable odorless interior paints, water based enamels, and antibacterial
paints. Apart from these, companies have even launched paints with long life
guarantee.
Raghavan (2006) has confirmed that the Indian paint industry has lately
completed its 100 years of manufacturing. The history of modern paint
manufacture of India starts from 1902, “when the first paint factory, shalimar
Paints came into horizon”. The Indian paint industry is projected to be worth of
approximately USD 1.8 billion. The total production of the paint is in the area of
900,000 metric tons. Apparently the Indian paint industry is the only sector of
the Indian chemical industry that has been on the rise for the last three years. It
has been recorded that the growth of the industry has been in double-figures.
The per capita consumption of paint in the Indian market is noticed to be 0.8 kg
or 800 grams. This consumption rate is much smaller to that of South-East Asia
where the consumption is about4.3 kg which is the total of the world average of
22kg. However as recorded by the Indian paint industry, the growth rate has
been exceptionally promising. The demand and the consumption of the paint in
the last 8 years have shown an increasing trend and the “last 3 years have shown
growth rates in excess of 10per cent.
Preeti Khicha (2008) in her report have mentioned that over the years, the
seasonal aspect of painting a home in India changed and homemakers gradually
came to associate painting with home décor and interiors. Choosing a paint
brand became a high-involvement category, particularly in the decorative
segment with the focus of the brand shifting from the builder to the homeowner.
As consumers became more involved in the decision making process, the
company realized that an online presence would perhaps serve as an important
tool to engage this new audience.
From the review of literature, it’s found that customer satisfaction forms an
important variable for the market development and growth in sales of
companies. It directly affects the loyalty, repeat purchase and positive word of
mouth for the firms manufacturing or supplying products and services. Firms
formulate policies and strategies at different levels to deliver maximum
satisfaction to their customers as large numbers of satisfied customers make the
business successful.
CHAPTER 3
RESEARCH METHODOLOGY
Dulux 22 10
Nerolac 17 14.2
The figure 3.3 represents paint brand which was last used by the consumers.
The figure clearly shows that majority of the respondents used Asian Paints
when they last painted their house followed by Berger Paints 32.5%, Nerolac
14.2% and Dulux 10%.
Fig 3.4: Floor Area (sq. ft.) of Respondent
Figure 3.4 shows the floor area of the respondent’s house. 1.7% and 18.3% of
the people live in a house having floor area less than 700 square feet and 700-
1000 sq.ft. respectively. Majority of the respondents 33.3% live in the floor
area of 1001-1500 sq.ft. followed by the floor area1500-300 sq. ft. (31.7%.)
Urban Clap 48 40
Respondents are very well aware of the Asian Paint Home Solution (85%).
Despite Berger’s Paints second position in terms of market share, it is giving a
tough competition to other brands. The sample size lack awareness about 123
Home Paints Pvt. Ltd.(6.7%).
Fig. 3.6: Factors Considered while Buying Paints
Durability of the paint is considered as the main factor while purchasing paints
(81.7%), followed by the brand name of the paint (75%). Respondents gave
more or less same weight age to color combination and price. 22% people think
influence of a retailer to pushing brand is not showing up from this consumer
response survey.
Fig. 3.7: Preference of the Paint Brand
I analyse that majority of the sample size prefer Asian Paints (43.3%) over
Berger Paints. A small size of the respondents prefers Dulux and Nerolac.
Consumers prefer Asian paints because of their service quality, brand image,
color combination, shine, customer service, trust, market presence etc.
Respondents are highly aware of Asian Paints’ painting services (76.7%). Only
64.2% of the people know about Berger Paints’ painting services. People do not
have much idea about Dulux and Nerolac painting services.
Fig. 3.10: Use of Mechanized tools and Trained Painters in the Painting
Service
Table 3.10 Use of Mechanized tools and Trained Painters in the Painting
Service
Quite Quite
ImportantImportantNeutral Unimportan unimportan
t t
Use of Mechanised 52 51 15 1 1
tools
Trained Painters 77 35 5 1 2
Color Schemes 51 48 16 2 3
Furniture Moving &
Covering 49 51 15 3 2
Post Painting Clean 57 44 14 0 5
up
Low Rates 20 47 41 7 5
Customer Service 57 47 13 0 3
Table 3.11 Imporatance of Facilities while selecting Paint
78.3% of the respondents are aware of the Asian Paints Celebrity Endorsement
advertisement followed by Berger Paints which is 50.8%, Nerolac 49.2% and
Dulux having 28.3%.
Celebrities play an important role in advertisements. They help the company in
building brand image. Brand recalling and brand recognition play their role in
this field.
Fig. 3.13: Awareness of Painting Services Advertisement
75 76 72 78
67 69
65 65 63
61 57 59
49 46 44
41 39
34
29 29 29
18 20 19
14 14 12
Brand Name Durability Color range Better Price Technical Ease of clean Eco friend
support
Berger
Qualities Asian Paints Paints Nerolac Dulux
Brand Name 91 67 49 29
Durability 75 65 29 18
Color Range 76 72 41 14
Better Price 61 57 39 20
Technical Support 78 65 29 14
Ease of Cleaning 69 59 34 19
Eco Friendliness 63 46 44 12
Table 3.14 Qualities Fulfilled by Painting Services
(*Respondents were allowed to choose more than one option)
According to the survey, Asian Paints were preferred by the customer due to the
qualities they proposed like brand name, durability, color range and technical
support but all these qualities are provided with a high price
RECOMMENDATIONS
The paint in the market are used in the house to give the imagination, beauty
and creativity to design the life for living with peace and progress.
Paints have always attracted human life and from time immemorial it has
always found a place- be it the cave painting to the latest wall arts or murals for
decorations.Paints, colour and gloss have a serious impact in every household as
it has called for attention from child to adults when decision is taken to choose
the colour or the shade to suit one’s ambience and comfort of their living space.
From this research I conclude that
Asian Paints and Bergers Paints are preferred over other brands.
This is mainly due to quality, use of mechanized tool and professional painters.
The respondents are not much aware of the Dulux and Nerolac
painting services.
Brand Name, durability and quality of the product and service are
considered as the main factors while buying paints.
Painters and Family members are most helpful in giving
suggestions for the paint purchase. In the other way we can say that they have
good command in influencing people.
Consumers consider trained professional painters and post
painting clean-up as the most important quality fulfilled by the painting
services. They also feel that the use of mechanized tools is also crucial for of
quality of service.
Consumers are more aware of Berger’s and Asian Paints’
advertisements due to famous celebrities like Ranbir Kapoor and Deepika
Padukone in Asian Paints and Katrina Kaif in Berger Paints. Dulux’s
advertisements are not well known to them.
Asian Paints and Berger Paints are superior in delivering quality
painting services. They mainly fulfill all the major criteria of the painting
services like brand name, durability, technical support, ease of cleaning etc.
Dulux and Nerolac do not have a proper command in painting ser
WEB REFERENCES
https://www.bergerpaints.com/
https://www.asianpaints.com/
https://www.dulux.in/
https://www.nerolac.com/
https://www.bergerpaints.com/express-painting/
https://www.asianpaints.com/services/home-painting-
services.html#
https://ori.hhs.gov/education/products/n_illinois_u/datamanagem
ent/datopic.html
https://study.com/academy/lesson/what-is-consumer-behavior-in-
marketing-factors- model-definition.html
https://www.tutorialspoint.com/marketing_management/marketing_
management_c onsumer_behavior.htm
https://ori.hhs.gov/education/products/n_illinois_u/datamanagem
ent/datopic.html
https://www.gsthelplineindia.com/blog/2019/01/07/gst-impact-
on-paint-industry/
Yogendra Singh, (2018). Paint India 2018- Show Report,
India/Asia Pacific Reports. Retrieved May 5,2019 from
https://www.coatingsworld.com/issues/2018-06-01/view_features/paint-india-
2018-
--show-report
RESEARCH PAPERS
52) http://www.ficci.com/spdocument/20215/Gujarat-Specilty-Chemicals-
Conclave-2013- Background-Paper-Final.pdf
53) Athanassopoulos, A., Gounaris, S. and Stathakopoulos, V. 2001.
Behavioural Responses to Customer Satisfaction: An Empirical Study.
European Journal of Marketing, 35(5/6): 687-707.
54) Claire Selltiz and others, Research Methods in Social Sciences,
1962, p. 50.
55) Fornell, C. 1992. A National Customer Satisfaction Barometer:
The Swedish Experience. The Journal of Marketing,
56) Homburga, C. and Rudolph, B. 2001.Customer Satisfaction in
Industrial Markets: Dimensional and Multiple Role Issues. Journal of
Business Research, 52: 15- 33.
57) Johnson, M. D. and Fornell, C. 1991. A Framework for Comparing
Customer Satisfaction across Individuals and Product Categories. Journal
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58) Sadeghi, T. and Farokhian, S. 2011. The Role of Customer
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Research. Oxford University Press.
ANNEXURE
QUESTIONNAIRE
3. Annual Income?
Upto 10 Lakhs
11 Lakhs – 30 Lakhs
31 Lakhs- 60 Lakhs
61Lakhs – 100 Lakhs
More than 100 Lakhs
4. Name the Paint Brand that was last used for your house?
Asian Paints
Berger Paints
Dulux
Nerolac
Brand Name
Durability of Paint
Colour Combinations offered by the brand
Price
Retailer
Berger Paints
Asian Paints
Dulux
Nerolac
10. Who among the following are helpful in giving suggestions for your
paint purchase decisions?
Painter
Construction Contractor
Paint Hardware Shop
Family/ Friends
Architect
Advertisemen
Quite Quite
Important Important Neutral Unimportant unimportant
Use of Mechanised
tools
Trained Painters
Color Schemes
Furniture Moving
& Covering
Post Painting Clean
up
Low Rates
Customer Service
14. Tick the celebrity endorsement that you are aware of?
Nerolac- Ranveer Kapoor
Berger – Katrina Kaif
Asian Panits- Ranbir Kapoor and Deepika Padukone
Dulux- Farhaan Akhtar