Kartik Final

8/8/2019 Kartik Final

1/75

A

SUMMER TRANING PROJECT REPORT

ON

BRAND AWARENESS OF KANSAI NEROLAC PAINTSLTD.

A report submitted for the partial fulfillment of the requirement forMaster of Business Administration (2009-2010)

SUBMITTED BY

KARTIK TOPPO

Student ID- 0806260026

Under The Guidance Of

Prof. Ashutosh MishraProf. Ashutosh MishraFaculty, RIMS

Rourkela Institute of Management Studies, Rourkela


2/75

CERTIFICATE OF THE INSTITUTE GUIDE

This is to certify that the project report titled Brand Awareness of Kansai Nerolac Paints

limited is an original work of Mr. KUMAR ADITYA bearing University Registration Number

0806260026 a student of Rourkela Institute of Management Studies, Rourkela and is being

submitted in partial fulfillment of the requirement for the award of the degree of Master of

Business Administration of Biju Patnaik University of Technology, Rourkela. The summer

project report has not been submitted earlier to this University or to any other

University/Institution for the fulfillment of the requirement of a course of study.

Date: Prof. Ashutosh Mishra

(Faculty, RIMS)

ACKNOWLEDGEMENT

Rourkela Institute of Management Studies, Rourkela 2


3/75

I take this opportunity to express my deep sense of gratitude to Kansai Nerolac Paints

Limited for taking me as Summer Trainee and extending me full support and co-operation

towards the completion of this project.

I would like to express my deep sense of gratitude to Mr. Satya Prakash (Regional Manager)

and Mr. Tushar Bhattacharjee (Area Sales Manager) ofKansai Nerolac Paints Ltd., who

have provided me an opportunity to undergo the summer traning in their esteemed organization

and let me learn the basics of how to work professionally in an organization.

I would also like to take the opportunity to thank to Mr. Prem Kumar (Territory Sales

Supervisor, Daltonganj) and Mr. Manish Kumar Sinha (Territory Sales Supervisor,

Ranchi) who have been a continuous source of inspiration to me and always ready to give me

their valuable suggestions for the accomplishment of this project and for lending me the

valuable guidance & wholehearted co-operation which enhanced my practical & theoretical

skills.

I would also like to thank all the employees here in Nerolac office at Jamshedpur for all their

support and cooperation. Last but not the least I am very grateful to my parents who gave all the

required support and helped me accomplish the project.

KARTIK TOPPO

MBA

Rourkela Institute of Management Studies

DECLARATION



4/75

I KARTIK TOPPO, studying in Rourkela Institute of Management Studies, Rourkela

declare that this project titled Brand Awareness of Kansai Nerolac Paints Limited in

context to Ranchi Circle has been compiled by me in partial fulfillment for award of Masters

Degree in Business Management under Biju Patnaik University of Technology for year 2008-

2010.

I further declare that this project report has not been submitted to any university or institution for

award of any degree or diploma.

Place: - Rourkela KARTIK TOPPO

Date: - MBA (RIMS)

PREFACE



5/75

As a part of MBA programme in RIMS under the Biju Pattanaik University of

Technology (BPUT) and AICTE guidelines we have to undergo summer training for one and a

half month (6 weeks) in an Organization where we are to be exposed to the practical aspects of

business world. I did my summer project at Kansai Nerolac Paints Ltd. I had to study the way

of approach adopted and the Marketing and Promotional activities conducted by the company in

Ranchi City.

To get the realistic view about the subject I had under gone various jobs, which are done

by the company. I was given a complete access to all the work so as to get the practical

knowledge. Moreover, I was given a chance to share some new promotional ideas and concept,

which was newly applied by the company.

The primary and secondary data was collected from the various customers. And the

findings & suggestions were based on my own questionnaire. So I hope these were very helpful

for the company as Promotional activities plays a very vital role in Marketing.

EXECUTIVE SUMMARY



6/75

In the project the nature of research is exploratory research whereby the efforts have been

made by executing the research in Ranchi town. A systematic as well as well-designed approach

has been adopted while conducting research about market characteristics.

The problem is that the company seems to have less market share in comparison to its

competitors. So the project given to me was to find out the cause behind this and to find out the

probable techniques to be applied to overcome the problems. Moreover I had to study the

marketing and the promotional activities of the company in the various institutions and convey

the schemes and the benefits provided to them by the company.

First of all the objective of the study was defined clearly. It is followed by the research

methodology adopted which has been defined with the help of collected data. A detailed

interpretation of the Indian Paint Industry has been given. The companys history along with its

profile is described. The product profile is defined covering the different types of products the

company is having. The major players of the industry and their profile are described. The next

step was defining the sampling design where by the sample size of 164 was taken for the

different institutions viz. Nursing Homes/Hospitals, Hotels, Schools and the target area was

Ranchi. To facilitate the research work questionnaire method was adopted for the collection of

the data as a primary research whereas the secondary data was collected from different books,

company library and the other trade / business websites.

Questionnaire contains both open ended questions and close ended questions, on the basis of the

feedback the analysis was done with the help of the clear graphical representation by using pie

charts, bar graphs and other graphs. The next step was the most important step for looking at the

actual findings of the project and recommend to the company what can be incorporated for

further improvement.

CONTENTS



7/75

1. CHAPTER-1 :- INTRODUCTION AND REASEARCH

METHODOLOGY

2. CHAPTER-2 :- COMPANY PROFILE AND SWOT ANALYSIS

3. CHAPTER-3:- LITERATURE REVIEW

4. CHAPTER-4:- EMPERICAL ANALYSIS

5. CHAPTER-5:- FINDINGS, SUGGESTIONS AND CONCLUSION



8/75

CHAPTER-01

INTRODUCTION AND RESEARCH METHEDOLOGY



9/75

INTRODUCTION

Marketing deals with identifying and meeting human and social needs. One of the shortest definitionsof marketing is Meeting needs profitably. Marketing is an organizational function and a set of

processes for creating communicating and delivering value to customers and managing customer

relationships in ways that benefits the organizations and its stake holders.

Much of brands strength depends on developing a superior product and packaging, ensuring its

availability, and backing it with engaging communications and reliable service.

The Indian paint industry has come a long way from the days when paints were considered a luxury

item. Today the awareness level on preventing corrosion through paints is relatively high, a

development that should be a huge boost to the paint industry. The paint industry in India has

flourished into a full-fledged manufacturing and sale market catering to the international standards

being demanded for the painting jobs.

The Indian Paint Association is the apex body of the Indian Paint Industry, which represents both the

organized sector and the small scale sector in the paint industry. It is a voluntary non-political and

non-profit organization which promotes the interest of the paint industry and the society.

The IPA is a unique forum in which even the very small scale manufacturers are members besides all

the major paint producers in India. The representative character of the association is amply

demonstrated by the fact that more than 80% of the total paint production in the country is accounted

for by members of the IPA.

The types of paints available in the market and their utility are:

o Acoustic Paint: It is specially designed for acoustic tiles.

o Alkyd Resin Paint: Best suitable for trim, doors, faux finishes and other maximized use

areas.

o Dripless Paint: This paint is thicker and is most suitable for application on ceilings.

o Latex Paint: The applicability of this paint is easier than most other and it dries much

quickly. It is also easier to be washed.



10/75

o One-Coat Paint: It is the more expensive version of the latex and alkyd paints and is

mostly chosen for surfaces that require flawlessness in color.

o Primers: This paint is the initiation for all interior paint works.

o Rubber-Base Paint: This is best for concrete and bricks.

o Textured Paint: If need is to cover any flawed surface in your house get this paint. It

works well on ceilings.

Besides these home decorating and improvement paints and office paint we can also get industrial

paints, aircraft paint, airplane paint, aviation paint and many other paint products with the paint shops

in India. The paint companies in India house a wide range of paint products that cater to all your

needs. A whole spectrum of colors with our own textured options and application patterns are

available with the paint companies. Each company has its own specialized product and some also offer

home paint services. The cost of a painting job may vary with the paint chosen - acrylic, emulsion,

primer etc., the paint tools being used and the painting company hired.



11/75

RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY

To study the way of approach adapted by Kansai Nerolac Paints Ltd. to various dealers.

To determine the preference level of Nerolac Paints in comparison to the other

companies paints in the different institutions.

To promote the companys products in the institutions.

To find out the customers buying behavior towards particular brand.

Listing and implementation of different promotional ideas.

Meeting concern people for the success of promotional ideas.



12/75

METHODOLOGY

Marketing research is the backbone of marketing. The main objective of my study was to get

information from the customers regarding their preference of the products of Kansai NerolacPaints Ltd. in comparison to other paint companies and to suggest some feasible measures to

improve the institutional sales of the company products.

Meaning of Research: Research in common refers to a search of knowledge. One can also

define research as a scientific research for pertinent knowledge or information on a specific

topic. This is a systematic and objective identification, collection of data, analysis, dissemination

and use of information for the purpose of assisting management in decision making related the

identification and solution of problem in the market.

According to Kedman and Mary, Research is a systematic effort to gain

knowledge.

A set of five steps, which includes type of research, approach of research, data

collection and analysis, interpretation of conclusion, limitation of study and on the basis of

these five steps I had presented my final presentation.

Type of Research: As far as this project is concern, it is a descriptive type of research work

because according to C.R. Kothari (the author of Research Methodology) descriptive research is

a method of obtaining qualitative data and other fact finding activities and require special effort

from researchers side.

I present this research as a depth interview. This is an unstructured, direct, personal

interview in which a single respondent is probed by a highly skilled interviewer to uncover

underlying motivation, beliefs, attitudes, and feeling on the topic.



13/75

Approach of Research: According to Kothari there are two approaches in research

methodology. First one is qualitative and second one is quantitative.

This project works on quantitative approach, which is reliable and beneficial in this type of

project. In quantitative data collection or research we seek to quantify the data and typically

apply some form of statistical research or analysis. Quantitative research applies to quantify the

data and generalized the result from the sample to the population of interest. In this research a

large number of samples of representative cases are taken, the method of data collection is

structured, data analysis is statistical and outcome is recommended a final course of action.

In order to achieve the above objective exploratory research was carried and different steps werefollowed.

1. Define the problem & research objectives


Research Data

Secondary Data Primary Data

Qualitative Data Quantitative Data

Descriptive Casual

13


14/75

Management must define the problem in broader way. It is said that by defining the problem it is

half solved. The objective is the same as stated above.

2. Develop the research plan

The second stage of marketing research calls for developing the most efficient plan for gathering

the information needed to achieve the objective of the project successfully. There are number of

steps involved in this:

a) Data sources

Primary data:

It has been collected by forming a proper questionnaire. Questionnaire is a systematic andstructured manner of collecting data for conducting experiment. The nature of the questionnaire

is very inductive and fundamental. It has been kept in a proper framework to make it clear to the

dealers .A sample questionnaire has been attached in the report.

Secondary data:

It has been collected from the websites of Nerolac Paints Ltd.and library of Jamshedpur Depot.

For secondary data I concern the books like Research Methodology- by C.R.Kothari andMarketing Research 4TH editions by Naresh k. Malhotra for the basic information about the

project, product profile were also used for the secondary data.

Research instrument

Questionnaire: The questionnaire was developed in consultation with the project guide Mr.

Tushar Bhattacharjee (ASM of Jamshedpur) of Kansai Nerolac Paints Ltd... Ranchi, it comprises

of 09 open ended questions.

Sampling design



15/75

Sampling design is a conductive approach, which gives the research work a factual as well as

conclusive framework. It contains sample size, which is basically a true representation of the

target population

Sample size

69 for dealers and retailers

Commencement of Fieldwork:-

The fieldwork included the process of getting the questionnaires filled up and also getting all the

relevant information regarding the visibility ofKANSAI NEROLAC PAINTS LTD. for future

business decisions.



16/75

LIMITATIONS

Every project has some limitation. This project is no longer exception. I had faced a number of

problems during the project work. Following are the limitations of the study:

1. Duration of study is limited for intensive study i.e. one and a half months time is not

sufficient to cover the various aspects in the study.

2. Mostly stress was given on primary data as it was difficult to collect secondary data from

organization and dealers.

3. During survey I found some people refused to answer the questions because they had no

interest in such sort of work. Some people got annoyed when I asked them their date of

birth and marriage anniversary.

4. During the visit to the Dealer it sometimes happens that the concerned person is not

available so the clear information does not come out.

5. The finding of the survey will be strictly based on the response of the consumers, retailers

and distributors since it is difficult to ascertain the authenticity of their statement.



17/75

MARKETING STRATEGY

Marketing is the management process that identifies, anticipates and satisfies customerrequirements profitably. Philip Kotler

At Nerolac, the marketing function has been one of the pillars behind building a successful

organization. They believe their key strength lies in understanding the consumer and

communicating with him in a language they understand and relate to best. Nerolac commercialshave been well -loved over the years and its jingle - 'Jab ghar ki raunaq badhaani ho...' is now

a familiar tune in every Indian household.

Promotional activities play a greater and important role in the entire marketing effort beingcarried out by Kansai Nerolac Paints Ltd., are to generate more sales as well as the create and

maintain an image of its product.

Thus Kansai Nerolac Paints Ltd. carried out its promotional activities as a controlled andintegrated program of communication and material design to present its products to the

prospective customer. It also helps in communication the need satisfying qualities of paints, tofacilitate the sales and eventually to contribute towards the profit in long range.

The tools used by Kansai Nerolac Paints Ltd. for fulfilling the various purposes of itspromotional activities are the following:-

Point of sale display

Dealers sales contest

Advertising

Sales promotion through special event market.

Sales promotion through salesman i.e. personal selling.

Incentives.

Painters Meet.

Tokens.

Discounting Strategy



18/75

Over the years, Nerolac has undertaken several initiatives, which have met with unprecedented

success and really made people really sit up and take notice of the brand. Beginning with theintroduction of the new Brush stroke logo, which stands for the process of painting. It depicts

motion, dynamism and progress through change. The signal red color, which is the color of

Nerolac, is symbolic of eternal joy and hope. It has now become an integral part of our brand

identity and now appears as a sign-off on any kind of communication.

Another one of the marketing initiative was the unveiling of the new corporate campaign with

Mr. Amitabh Bachchan as their brand ambassador. In this campaign, Amitabh Bachchan

embodied Nerolac and showed how it touches the lives and dreams of people...no matter who

they are and where they come from. The essence of this thought was captured in thenewbaseline Yeh Rang hain jo har kisi ko chhoota hain.

Apart from the corporate campaign, they also released a new commercial for Nerolac Suraksha

with Mr.Bachchan. Focusing on the fast growing exterior category, this commercial playfully

demonstrates Suraksha's proposition of protection.

Another one of the initiatives launched, during the festival season of Diwali was Har Din

Diwali a promotional campaign aimed at the customer. The unique feature of this campaign

was the opportunity to win daily prizes through out the entire duration of 55 days of the

campaign. In addition to the daily prizes there was also a grand bumper prize to be won. For surethis was one campaign that was a runaway success.

Complimenting their core business of paints last year also saw the launch of Nerolac AssuredPaint Service. Designed to bring the Nerolac experience right to the consumers' doorstep, it

met with an excellent response. Currently available in Mumbai, consumers can now relax whilethe Nerolac team takes over the entire paint job right from sourcing to execution.

In their effort to becoming consumer friendly, this year they also undertook the exercise of

redesigning their shade cards. The new look shade cards are not only eye catching and consistentin appearance but also try to make the process of shade selection for the consumer lot more

interesting and convenient.

Besides all these promotional activities the most important was the promotional campaign

Rishta Rangon ke Sang. This was first launched in the year 2006.This was a grand success inthat year. Following the success of the Rishta Rangon ke Sang 2006 the company relaunched

this again in the year 2007.Again it proved to be a grand success. This program was to strengthen

the cherished relationship between the company and its customers. This year also Kansai Nerolac

Paints Ltd. has launched this program once again. Lets see how well this program performs thisyear.

http://www.nerolac.com/commercial.mpghttp://www.nerolac.com/commercial.mpghttp://www.nerolac.com/commercial.mpg


19/75

What is all about the program Rishta Rangon ke Sang?

It is an exciting new program that aims to reward the contractors, painters and the customers forevery litre of Nerolac paint they purchase from any Nerolac CCD outlet in some selected

towns.From gift vouchers to an exotic international trip to gold- there a number of gift options.

The rules are simple too-the more Nerolac paint one purchase the more he can gain as each litrepurchased takes him closer to his dream trip to Singapore.



20/75

CHAPTER-02COMPANY PROFILE AND SWOT ANALYSIS



21/75

COMPANY PROFILE

HISTORY OF NEROLAC PAINTS:

Nerolac Paints embarked its journey in 1920 as Gahagan Paints and Varnish Co. Ltd. at Lower Parel in

Bombay. In 1930, three British companies merged to formulate Lead Industries Group Ltd. In 1933,

Lead Industries Group Ltd. acquired entire share capital of Gahagan Paints in 1933 and thus, GoodlassWall (India) Ltd. was born. Subsequently, by 1946, Goodlass Wall (India) Ltd. was known as

Goodlass Wall Pvt. Ltd. In 1957, Goodlass Wall Pvt. Ltd. grew popular as Goodlass Nerolac Paints



22/75

(Pvt.) Ltd. Also, it went public in the same year and established itself as Goodlass Nerolac PaintsLtd.

In 1976, Goodlass Nerolac Paints Ltd. became a part of the Tata Forbes Group on acquisition of apart of the foreign shareholdings by Forbes Gokak.

In 1983, Goodlass Nerolac Paints Ltd. strengthened itself by entering in technical collaboration

agreements with Kansai Paint Co. Ltd., Japan and Nihon Tokushu Toryo Co. Ltd., Japan.

In 1986, Goodlass Nerolac Paints Ltd. turned into a joint venture of the Tata Forbes and the Kansai

Paint Co. Ltd., with the latter acquiring 36% of its share capital.

In 1999, Kansai Paint Company Ltd., Japan took over the entire stake of Tata Forbes group and thus

GNP became a wholly owned subsidiary ofKansai Paint Company Ltd.

In 2006, on the 11th of July, Goodlass Nerolac Paints Ltd. name has been changed to KansaiNerolac

Paints Ltd.

During the journey of continuous performance excellence, Kansai Nerolac Paints Ltd. has entered in tomany technical collaborations with other industry leaders such as E.I. Du-products. Its incessant

journey of successes will go on backed by its present human asset of over 2000 professionals and a

sales turnover of Rs. 1484 crores Kansai Paint Company Limited, which is the largest paintmanufacturing company in Japan and among the top ten coating companies of the world. Kansai

Nerolac Paints Ltd. is the second largest coating company in India with a market share of over 20%.

It is the market leader in industrial / automotive segment supplying over 90% of the OEM

requirements and the leader in powder coatings.

CODE OF CONDUCT FOR THE BOARD OF DIRECTORS AND SENIOR MANAGEMENT

OF KANSAI NEROLAC PAINTS LTD.

INTRODUCTION:

The Board of Directors of Kansai Nerolac Paints Limited has adopted the following Code of

Conduct for the Board of Directors and senior management of the Company. For the purpose of



23/75


24/75

Family can be considered to consist of the Director, his spouse, dependent children and

dependent parents.

If a Director/senior manager believes that he has an actual or potential conflict of interest withthe Company, the Director/senior manager shall notify the Company / Board of Directors as

promptly as practicable and shall in any event not participate in any decision by the Board ofDirectors that in any way relates to the matter that gives rise to the conflict of interest.

Directors, senior managers and their families shall abstain from offering or accepting gifts frompersons or firms who deal with the Company where such gift is being made in order to influence

the actions of the director/senior manager, or where acceptance of the gift could create the

appearance of a conflict of interest.

CORPORATE OPPORTUNITIES:

Directors and the senior managers owe a duty to the Company to advance its legitimate interests.

Directors and senior managers are prohibited from taking for themselves opportunities or

personal gain through unauthorized use of corporate property, information and position orcompeting with the Company for business opportunities.

CONFIDENTIALITY:

Directors and senior managers must, during their term of office and after leaving the Board/

services of the Company, maintain the confidentiality of information entrusted to them by the

Company and any other confidential information about the Company that comes to them fromwhatever source, in their capacity as Directors/ senior managers, except to those people who

have an appropriate reason to have access to the information. For purposes of this Code,

"confidential information" includes all non-public information that might be of use to

competitors, or harmful to the Company or its customers, if disclosed.

COMPLIANCE WITH LAWS, RULES AND REGULATIONS:

Directors and senior managers shall comply with laws, rules and regulations applicable to them

as Directors and senior managers of the Company, including laws on prevention of insidertrading.

PROTECTION AND PROPER USE OF COMPANYS ASSETS:

Directors shall protect the Companys assets and ensure their efficient use for legitimate business

purposes.

FAIR DEALING AND ETHICAL BUSINESS CONDUCT:

Directors and senior managers must observe the highest ethical standards and act with integrity

and honesty to promote an environment that encourages the employees of the Company to

sustain and enhance the reputation of the Company and treat each other as well as customers,



25/75

suppliers, and competitors with fairness and respect. Directors and senior managers shall not take

unfair advantage of anyone through manipulation, concealment, abuse of privileged information,

misrepresentation of material facts, or any other unfair dealing practice. Conduct that raisesquestions about the integrity, character or impartiality of the organization, which can damage the

reputation of the Company, or creates an appearance of illegal, unethical or improper conduct, is

prohibited.

ENCOURAGING THE REPORTING OF ANY ILLEGAL OR UNETHICAL BEHAVIOUR:

Directors and senior managers of the Company shall endeavor to promote ethical behavior and to

provide an opportunity to employees to report violations of laws, rules, regulations or codes of

conduct and policy directives adopted by the Company to the appropriate personnel without fearof retaliation of any kind for reports made by the employee in good faith.

HANDLING NEWS ABOUT THE COMPANY:

Confidential information about the Company, including information that can be expected to have

an impact on the market for the Companys shares may be released only in accordance with theCompany guidelines and the relevant regulations of the Stock Exchanges and the Securities

Exchange Board of India.

COMPLIANCE PROCEDURES:

Senior managers and Executive Director(s) shall communicate any suspected violations of thisCode, including any violation of law or governmental rule or regulation, promptly to the

Managing Director. Directors, other than the Executive Director(s) shall communicate any

suspected violations of this Code, including any violation of law or governmental rule orregulation, promptly to the Board of Directors. Alleged violations shall be investigated by the

Board or by a person or persons designated by the Board and appropriate action shall be taken inthe event of any violations of the Code.

ANNUAL CERTIFICATION:

All Board members and senior management personnel have to confirm compliance with the

Code on an annual basis. The Annual report of the Company shall contain a declaration to thiseffect signed by the Managing Director who is the Chief Executive Officer.

HR ANGLE:



26/75

VISION VALUES AND CULTURE:

In todays dynamic business environment, no organization can afford to survive without a well-

articulated and carefully thought vision stating the overall strategic direction and long-termfuture of its business.

Kansai Nerolac Paints have been at the forefront of paint manufacturing over eight decadespioneering a wide spectrum of quality products that change the face of economy and lifestyles of

people at large.

Nerolacs vision is to leverage global technology, for serving their customers with superior

coating systems built on innovative and superior products and world class solutions, to

strengthen their leadership in Industrial coatings and propel for leadership in

Architectural coatings, all to the delight of their stakeholders.

They firmly believe that it is not only the vision of where they wish to go which will form acornerstone of all their further growth, but also their conviction to the fact that the values based

proposition has to be ultimate foundation of their business.

To this end they consciously have internalized and been practicing these values in all their

business transactions though human beings:

Innovation

Entrepreneurial

ResponsiveSimplicity

Team Orientation

CULTURAL ETHOS:

Vision driven organizationEmployees feel pride in being part of the organizationRecognition of human resources as extremely important and critical assets

High level of human dignity

Transparency and openness among employees at all hierarchical levels

Performance-linked reward systemManagement and employee commitment to organization values is high



27/75

Autonomy in work is high

High commitment to quality products

THE HR PHILOSOPHY:

Nerolac recognizes its human resources as extremely important and critical assets. They honorthe dignity of each individual, irrespective of position and highly value the feelings.

Their Human Resource Policy is, to facilitate creation of synergy, mutuality and interdependencebetween individual and corporate development and growth through total employee involvement

and building an enabling work culture in the organization.

Informality in interactions, transparency and openness in communications at all levels, and an

enabling work environment supporting high autonomy of work, transparency and an objective

subjectivity of Performance Management System, fair dealing, tremendous care and concern forpeople are a few of the softer aspects of permeable people management environment which

represent the organizational climate and culture. Their faith is averred by the fact that people feel

pride in being part of the Nerolac family. They care for people; people care for our business.

THE QUALITY POLICY

It is the philosophy of Kansai Nerolac Paints Ltd., and its associates to achieve completecustomer satisfaction by providing products and services that consistently meet or exceed the

customer needs and expectations, pursuant to agreed specifications, delivery schedules and



28/75

competitive prices. It is the philosophy of the company to systematically operate its

manufacturing facilities by inculcating commitment to total quality management at all levels and

on a continuous basis with a view to achieving First Time Right results in manufacture,services and other operations.

It is the companys aim to constantly reduce waste of material andeffort, increase efficiencies and ensure safety of plant and people and

protection the environment.

OPEN DOOR POLICY:

Working together requires that we have a friendly atmosphere based on trust and respect

amongst all of us.

At Nerolac we follow an Open Door policy. Any person is free and welcomed to share good

idea, suggestion, doubt, problem about job or work place, or uncertainties about ones future in

the organization. An open and transparent communication is appreciated.

SOCIAL REAPONSIBILITY:

The company continues to make its due contribution to community relief and developmentactivities and has donated both in cash and kind for the beautification of some public places in

Mumbai and elsewhere. The company continued its activities directly or indirectly through

trusts/agencies in community Development and Social Welfare including contributions towards

national defense, medical help, education, improvement of environment etc.

IT PILLAR:

Nerolac has always sought to harness the benefits of Information technology. It has envisionedusing Information technology in all areas of business to build up unique competencies and

efficiencies thus delivering maximum value to Nerolac's stakeholders.



29/75

Starting in February 2000, it has transformed its functional based legacy systems into a process

based organization wide systems culture by investing and implementing the SAP R/3 solution. Ithas also sought to leverage its vast repository of data and work towards building a knowledge

based organization. In line with this vision it has invested in a world class data warehousing

solution and in Knowledge sharing portal. The power of IT has been further leveraged toenhance the operational capabilities with the help of Supply Chain solutions from SAP.

As part of these implementations Nerolac today has a state of the art data center and

communication infrastructure based on VSATs / Leased lines/ ISDN/ VPN connecting all itssales offices and factories around the country allowing online transaction processing and

response backed by a state of the art Storage (SAN) device. Nerolac plans to now open its

organization to its suppliers and customers so as to reap the benefits of modern communicationtechnology and E-commerce. A part of this process it is now pursuing means for establishing

secure connectivity to the extended enterprises.

Nerolac will continue to invest in applications that make it more open and transparent to all its

stakeholders.

ORGANIZATIONAL SRENGTHS:

An organization is not set on pillars of brick and concrete but is set on strong inherentcharacteristics that make it strong for years!

Nerolac is carrying on strong since 1920. Following are its strengths that have kept this companyin good faith.

STRONG VISION AND VALUES:

Nerolac is a company with very clear and well-defined vision and very strong values. Clarity ofvision and strong foundation of cultural values have always kept this company

in good stead. Its ethical conduct has always guarded it against any possible traps and pit falls.

We have made sure that the distribution hurdles and the climatic vagrancies do not affect the

quality of our services. This same commitment will ensure that Kansai Nerolac will march

towards its centennial year, fully dedicated and invigorated, in step with the exciting wave of

industrialization and modernization pervading through the new India.



30/75

INNOVATION IN RESEARCH & DEVELOPMENT COMPETES THROUGH

INNOVATON:

The keystone of Kansai Nerolac's success has been its investment in technology and the

importance given to Research and Development. The company has, over the years, set up

excellent facilities for developmental research, improving its manufacturing processes andcontinuously innovating on its products.

Kansai Nerolac's R&D laboratory has the distinction of being one of the first to be officially

recognized by the Department of Science and Technology (DTI), Government of India. At

Nerolac, quality control starts from the first stage of raw materials, through intermediates, rightup to the finished products.

WIDE EXPERIENCE

The rich cumulative experience of the organization gathered over 80 years of experience

provides a strong backbone to all kinds of decisions taken in this company. 80 years of learningin trade and market has given enough expertise to innovate and develop products and services

according to the changing needs and desires of customers. Nerolac paint technology cuts across

all barriers; without discriminating between uses or users. The past decades have seen a meteoric

rise in the fortunes ofKansai Nerolac. Today, we are the second largest paint company and arecognized leader in our chosen fields. The company was adjudged the fastest growing paint

company in the organized sector, not once but thrice-in consecutive years.

PEOPLE:

Nerolac is a company, which considers its people as one of its strengths. Nerolac has always

valued its employees. Recruitment thus becomes very important activity at Nerolac. Employeesthat add value to the organization are suitably awarded & rewarded to keep the fire live & going.

STRATEGIC ALLIANCES:



31/75

The coatings industry globally, like several other industries, is in the process of consolidation.

The process of consolidation is intended to help companies meet increasingly challenging

customer requirements by constantly updating technology, striving for greater efficiency inoperations and ensuring worldwide servicing capabilities.

World over, units are moving with associates/affiliates/parent bodies with core competence astheir prime objective. The acquisition by Kansai of the shareholding of Forbes Gokak Ltd. and

their associates in your Company is in furtherance thereof. Our technical collaborators and

associates are strategically placed to make most of the market opportunities and create morevalue to the company.

MANUFACTURING STRENGTH:

Manufacturing is a very important function for the paint industry. Nerolac has made sure that its

manufacturing facilities are world class. Nerolac has four manufacturing units located at

Perungudi (T.N.), Jainpur (U.P.), Lote Parshuram (Maharashtra) & Bawal (Haryana). The fifthfactory is planned at Hosur in T.N. The total installed capacity of all the existing units put

together is 173900 MT/Annum. Its latest unit is at Bawal, which was commissioned in March2005, with a capacity of 20400 TPA with an investment of around Rs.100 crore- all throughinternal accruals.

ISO CERTIFICATE:

Kansai Nerolac Paints Ltd. has embarked on a TQM (Total Quality Management) mission.

As a first step towards this objective and assuring our valued customers with respect to ourcommitment to Quality, our manufacturing facilities are ISO 9000 / certified. Not only that our

major mfg. units are ISO 14000 (Environmental std.) certified.

ENVIRONMENTAL POLICY



32/75

Kansai Nerolac Paints Limited manufacture paints for beautification of assets. They are

committed themselves towards environmental protection and conservation of natural resources.They shall evaluate the environmental impacts of their activities during the development of

manufacturing processes and endeavor to minimize the impact on the environment due to their

activities. Their objective is to utilize our natural resources in an efficient manner. They shallencourage continual and targeted improvements to:

- Prevent waste generation at source

- Reduce, recover and recycle wastes

- Reduce and prevent pollution of air, water and land

They shall objectively accept suggestions towards improvement in their environmental

performance from customers, employees and suppliers. As a responsible care company they are

committed to comply customer requirements and shall provide necessary resources foraccomplishment of objectives and targets.

They shall strive to minimise impact on environment by effectively employing emergency

handling procedures. They shall install and operate facilities to comply with relevantenvironmental legislation and requirements.

They shall make employees aware of importance of environmental protection and conservation

of natural resources. They are committed towards continual improvement in all their activities toachieve environmental excellence.

They shall communicate this Policy to all employees and make it available to public on demand.

ASSOCIATE COMPANIES

NIPA CHEMICALS LTD.

This Company specializes in the manufacture of Pre-Treated Chemicals. Nipa Chemicals Ltd. is

a joint venture of Nihon Parkerizing Co. Ltd., Tokyo, Japan, and Kansai Nerolac. Nerolacprovides technical and the marketing support for Nipa Chemicals

GEOGRAPHICAL PRESENCE



33/75

Kansai Nerolac has been operating and rendering its services in 22 states of India.

NAME OF THE STATE CITIES

Andhra Pradesh Hyderabad,Vijaywada,Vishakapatnam

Assam Guwahati

Bihar Patna

Chattisgarh Raipur

Goa Panaji

Gujarat Ahmedabad,Aslali,Rajkot,Surat.Vadodara

Haryana Ambala,Faridabad

Himachal Pradesh Solan

Jammu& Kashmir Jammu

Jharkhand Jamshedpur

Karnataka Bangalore,Hubli,Gulbarga,Mangalore

Kerala Cochin,Calicut.Thiruvala,Trivandrum

Madhya Pradesh Indore,Jabalpur.Bhopal,Gwalior

Maharashtra Mumbai.Bhiwandi,Pune,Kolhapur, Nagpur

New Delhi New DelhiOrissa Cuttack

Punjab Jalandhar,Bhatinda,Patiala,Chandigarh,Ludhiana

Rajasthan Jaipur,Jodhpur,Udaipur

Tamil Nadu Chennai,Coimbatore, Madurai,Trichi

Uttar Pradesh Gaziabad, Agra,Kanpur,Bareilly,Lucknow,Varanasi

Uttaranchal Dehradun

West Bengal Kolkata,Siliguri

PRODUCT PROFILE



34/75

EMULSIONS: Emulsions are plastic paints which are used for the decorative purpose in theexterior and interior walls. There are two types of emulsions namely:

EXTERIOR EMULSION: These are mainly used in the exterior walls. Exterioremulsions are some time can be used in interior walls also. There are two categories of

exterior emulsions:



35/75

a) Premium quality exterior emulsions

b) Regular exterior emulsions

c) Low quality exterior emulsionsExample: Excel everlast, Excel total, Excel, Suraksha Advanced, Suraksha

Plastic.etc.

Home > Products > Walls > Exterior > Emulsions

Emulsions

Impression Excel Anti Peel Impression Excel Total

Suraksha Advanced Nerolac Suraksha

http://popupwindow%28%27products/deco/ext_emulsions/1.html',%20600,%20600);http://popupwindow%28%27products/deco/ext_emulsions/2.html',%20600,%20600);http://popupwindow%28%27products/deco/ext_emulsions/3.html',%20600,%20600);http://popupwindow%28%27products/deco/ext_emulsions/4.html',%20600,%20600);http://popupwindow%28%27products/deco/ext_emulsions/1.html',%20600,%20600);http://popupwindow%28%27products/deco/ext_emulsions/2.html',%20600,%20600);http://popupwindow%28%27products/deco/ext_emulsions/2.html',%20600,%20600);http://popupwindow%28%27products/deco/ext_emulsions/3.html',%20600,%20600);http://popupwindow%28%27products/deco/ext_emulsions/4.html',%20600,%20600);


36/75

INTERIOR EMULSION: These are mainly used in the interior walls. They are washable.

Interior emulsions cannot be used in exterior surfaces. There are four types of interior

emulsions :

a) Premium quality interior emulsionb) Washable interior emulsion

c) Regular interior emulsion

d) Low interior emulsion

Example: Impressions 24 carat premium luxury emulsion, Nerolac BeautyFlexicoat, Nerolac Acrylic Emulsion, Nerolac Premium Emulsion, Nerolac Beauty

emulsion etc.



37/75

Home > Products > Walls > Interior > Emulsions

Emulsions

Nerolac Impressions 24 carat Nerolac Impressions Metallic Nerolac Impressions Disney

Nerolac Beauty Premium Acrylicemulsion

Nerolac Beauty Silky Smooth Nerolac Beauty Smooth finish

Nerolac Beauty Flexi Coat

http://popupwindow%28%27products/deco/int_emulsions/1.html',%20600,%20600);http://popupwindow%28%27products/deco/int_emulsions/2.html',%20600,%20600);http://popupwindow%28%27products/deco/int_emulsions/4.html',%20600,%20600);http://popupwindow%28%27products/deco/int_emulsions/5.html',%20600,%20600);http://popupwindow%28%27products/deco/int_emulsions/5.html',%20600,%20600);http://popupwindow%28%27products/deco/int_emulsions/6.html',%20600,%20600);http://popupwindow%28%27products/deco/int_emulsions/7.html',%20600,%20600);http://popupwindow%28%27products/deco/int_emulsions/8.html',%20600,%20600);http://popupwindow%28%27products/deco/int_emulsions/1.html',%20600,%20600);http://popupwindow%28%27products/deco/int_emulsions/2.html',%20600,%20600);http://popupwindow%28%27products/deco/int_emulsions/4.html',%20600,%20600);http://popupwindow%28%27products/deco/int_emulsions/5.html',%20600,%20600);http://popupwindow%28%27products/deco/int_emulsions/5.html',%20600,%20600);http://popupwindow%28%27products/deco/int_emulsions/6.html',%20600,%20600);http://popupwindow%28%27products/deco/int_emulsions/7.html',%20600,%20600);http://popupwindow%28%27products/deco/int_emulsions/8.html',%20600,%20600);


38/75

DISTEMPER: These are the paints which are considered to be cheaper as compared to theemulsions to make the walls beautiful. These are the modified form of limestone which are now

available in different colours and different forms. These can make ones room, or any dwelling

place beautiful, colorful, and entertaining. There are three kinds of distemper:a) Matt finish

b) Washable

c) Water BasedExample: Nerolac Beauty Premium Acrylic Distemper(NBPAD), Nerolac Beauty

Acrylic Distemper(NBAD), Nerolac Oil bound Distemper(NBOBD), Nerolac Beauty

Platinum, Nerolac Beauty Gold, Nerolac Beauty Silver, Nerolac Beauty Regular and

Goody Synthetic Distemper.

Home > Products > Walls > Interior > Distemper

Distemper

Beauty Premium Acrylic Distemper Beauty Acrylic Distemper Beauty Oil Bound Distemper

ENAMELS: Enamels are oil based paints which are used to paint the surfaces of the wood and

metals. These give the surfaces of the wood and the metals a surprising colour and finish. Iron

grills and wooden items like the doors, windows etc look very beautiful after being painted bythe enamels. There are three categories of enamels:

a) Hi-Gloss enamel

b) Satin enamelc) Smooth finish enamel

Example: Nerolac Synthetic Enamel, Nerolac Impressions Hi-Performance Enamel,Nerolac Satin Enamel and Goody Synthetic Enamel.

http://popupwindow%28%27products/deco/int_distemper/3.html',%20600,%20600);http://popupwindow%28%27products/deco/int_distemper/1.html',%20600,%20600);http://popupwindow%28%27products/deco/int_distemper/2.html',%20600,%20600);http://popupwindow%28%27products/deco/int_distemper/3.html',%20600,%20600);http://popupwindow%28%27products/deco/int_distemper/1.html',%20600,%20600);http://popupwindow%28%27products/deco/int_distemper/2.html',%20600,%20600);


39/75

SWOT ANALYSIS

STRENGTHS:-

Nerolac has an excellent brand name, awareness & high quality image.

Nerolac has got goodwill in the market with regard to the brand name.

It has a very strong distribution network and well-built market and currently holds almost

all the parts of the state.

Nerolac R & D has brought Consumers

a) A continuing stream of new technology and

b) Impeccable quality products

by putting every product through a series of strict quality controls and tests at each stage

from raw material to final production.

Sophisticated testing and analytical instruments, colour Computers and accelerated

weathering equipment are used for developing and standardizing products to maintainoptimum quality.

Each member of Nerolac family is imbued with the conviction that, while growth and

profitability are key indices of Corporate performance, technological advancement and

the pursuit of excellence are the motive forces.

Building upon its foundation of experience and expertise, Nerolac constantly upgrades

the knowledge and skills of its people, to stay abreast of the latest technological

development and management practices.

Nerolac Paints provide quality products and better services for the consumers compare toother companys products.

The products of Nerolac Paints are much more durable than the products of other

companies for example the interior emulsion namely Impressions 24 carat is providing



40/75

more satisfaction to the customers than any other product. Moreover the exterior

emulsion namely Excel total is doing very well in the market.

Market share of Nerolac is consistently increasing.

WEAKNESSES: -

Promotional activities in the institutions like nursing homes/hospitals, hotels and schools

are not up to the mark. The approach in these areas is weak.

The advertisement portion of Nerolac Paints is not so much as it is expected in the Paint

industry to stay in the competitive market.

More emphasis is given to the large institutions and the small institutions are neglected.

Inability to provide the samples which the large hotels and nursing homes asked for.

The dealers are not willing to support the company as the revenue from the institutions

comes after the work has been completed.

Offering of less institutional discount as compared to other companies.

The paint industry is not capital intensive.

It has a high entry barrier in the form of distribution network and product branding.

Fresh capacity is likely to come from existing players only.

There is lacking of a depot at Ranchi.

OPPORTUNITIES:-

India has one of the lowest per capita consumption of paints in the world. There istherefore a great growth potential.



41/75

In the recent past, the growth in the paint industry has tended to be higher than the growthrate of the overall economy.

The Company enjoys a wide geographical spread in terms of manufacturing facilities as

well as dealer network and is well poised to fulfill growth potential.

The industry is likely to remain intensely competitive with corresponding pressures on

margin of profit.

The demand pattern of paints is dependent on economic growth of the country and

Government spending on infrastructure development.

With signs of economic recovery and the Government's policy to spend more on

infrastructure development, the future of the paint industry looks bright.

The Government thrust on encouraging housing activity, the centers of housing activity islikely to shift more towards rural areas.

The industrial segment will grow due to lower grace and fast growth in major user

industries like Consumer durables and automobiles.

THREATS:-

Strong supply chain of competitors.

Strong dealer network of competitors.

Paint is highly raw material intensive, both indigenous and imported raw materials, which

are subject to frequent price fluctuations.

Prices of a number of raw materials, for example, Titanium Dioxide and petroleumproducts, principal ingredients in paints, are determined by world demand and supply for

the materials.

Emergence of many local players in the industry.



42/75



43/75

CHAPTER-03

LITERATURE REVIEW

Brand Awareness

DEFINITION:

Extent to which a brand is recognized by potential customers, and is correctly associated with a

particular product. Expressed usually as a percentage of target market, brand awareness is the

primary goal of advertising in the early months or years of a product's introduction.

having knowledge of the existence of a brand. Because brand awareness is considered the first stepin the sale, the primary goal of some advertisingcampaigns is simply to make thetarget marketaware that a particular brand exists. Often, this effort alone will sell the product

A company may be armed with all the statistics and facts as to why their product or service issuperior - but if it doesnt have an image, a personality for the audience to connect with - their

message falls flat. What you are selling is always more than the product/service. It's a personality,a face with which your target customers want to do business. Thus, the success of branding lies intruly understanding who you are and who your target audience is.

http://www.allbusiness.com/glossaries/brand/4962642-1.htmlhttp://www.allbusiness.com/glossaries/brand/4962642-1.htmlhttp://www.allbusiness.com/glossaries/campaign/4965563-1.htmlhttp://www.allbusiness.com/glossaries/campaign/4965563-1.htmlhttp://www.allbusiness.com/glossaries/target-market/4944782-1.htmlhttp://www.allbusiness.com/glossaries/target-market/4944782-1.htmlhttp://www.allbusiness.com/glossaries/brand/4962642-1.htmlhttp://www.allbusiness.com/glossaries/campaign/4965563-1.htmlhttp://www.allbusiness.com/glossaries/target-market/4944782-1.html


44/75

Brands create a perception in the mind of the customer that there is no other product or service on

the market that is quite like yours. A brand promises to deliver value upon which consumers and

prospective purchasers can rely to be consistent over long periods of time.

Measurement driven conceptualization

Brand awareness can be measured by showing a consumer the brand and asking whether or not

they knew of it beforehand. However, in commonmarket research practice a variety ofrecognition and recall measures of brand awareness are employed all of which test the brand

name's association to a product category cue, this came about because most market research in

the 20th Century was conducted by post or telephone, actually showing the brand to consumers

usually required more expensive face-to-face interviews (until web-based interviews becamepossible). This has led many textbooks to conceptualise brand awareness simply as its measures,

that is, knowledge that the brand is a member of a particular product category, e.g. soft-drinks.

Examples of such measures include:

Brand recognition - Either the brand name or both the brand name and category name are

presented to respondents.

Brand recall - the product category name is given to respondents who are asked to recall

as many brands as possible that are members of the category. Top of mind brand awareness - as above, but only the first brand recalled is recorded

(also known as spontaneous brand rec

A company may be armed with all the statistics and facts as to why their product or service is

superior - but if it doesnt have an image, a personality for the audience to connect with - theirmessage falls flat. What you are selling is always more than the product/service. It's a personality,

http://en.wikipedia.org/wiki/Market_researchhttp://en.wikipedia.org/wiki/Market_researchhttp://en.wikipedia.org/wiki/Market_research


45/75

a face with which your target customers want to do business. Thus, the success of branding lies in

truly understanding who you are and who your target audience is.

Brands create a perception in the mind of the customer that there is no other product or service onthe market that is quite like yours. A brand promises to deliver value upon which consumers and

prospective purchasers can rely to be consistent over long periods of time.

Measuring Brand Awareness

From time to time I come across polls and surveys revealing the brands that have captured the

highest levels of awareness. The results usually generate several sensationalist articles with onebrand driving another to obscurity. This has prompted me to pause and consider the utility of

measures of brand awareness. Frankly, becoming a best-remembered brand is an inconsequential

achievement.

To purchase most products and services requires more than simple brand awareness. We alsoneed to have positive evaluations and emotions about the brand. Indeed, brands can increase their

levels of brand awareness by performing poorly. This may explain why brands with enormous

strategic problems and flagging sales, register strong in brand awareness.

Brand awareness is important for low-involvement purchases, because consumers will oftendecide from a list of recalled brands brought directly from memory. It is no surprise, therefore,

that when brands are measured by awareness most of the top ten brands in the survey are in low-

involvement categories, such as breakfast cereal and detergent. Brands in these categories arepurchased and used frequently.

When prompted to name random brands, most consumers will retrieve these kinds of brands

from memory. But brands from other categories where brand awareness is less crucial are

unlikely to feature in the top ten, even though consumers may have stronger relationships with

them.

Brands that exist in higher-involvement categories, such as cars, are less likely to be recalled in

this way. Brand awareness polls also contradict the target market philosophy most brands adhere

to. Luxury brands such as Prada pride themselves on being known by an exclusive minority.



46/75

Many marketers make the mistake of only measuring brand awareness under the impression that

this provides an accurate indication of brand health.

In fact it is the nature, strength and importance of the brand associations in the minds ofconsumers that provides marketers with the true empirical vision of their brand equity. Any

undergraduate with a calculator and a free afternoon can happily produce a valid league table ofbrand awareness scores. But no agency has yet produced an effective tool for measuring their

clients' brand associations. Now that would be worth a few column inches

CHAPTER-04EMPERICAL ANALYSIS



47/75

MARKET SURVEY

Market survey is one of the most widely used marketing research techniques. Its purpose is

collecting specific data concerning the market that cannot be from the companys internal record

or from external published source of data market survey may be of various types like census

survey etc.

This survey was all about collecting data from the different dealers present in outer

Ranchi region about the preference of paints by the customer. Here I had to collect data

regarding the number of dealers selling Paints, nature of the dealers, satisfaction level of the



48/75

consumers complain (if any), promotional scheme are known or not, availability of products at

dealers etc. In my survey I did a rigorous study of paint industry acting in this city. I visited

70(approx.) dealers and tried to find out their perception about different paints in Ranchi, What

are the key reasons for the success of particular brand in the city?, Why a customer opt a

particular brand? Also I tried to find out how to increase the sale of KNPL?

Moreover in the second stage of my training I was assigned the task to make a list of ideas which

could be suitable for the promotion of KNPL at local level.

List of the ideas are:

Rickshaw Rally in different regions

Drawing Competitions at Schools

Blood Group test at different locations

Pamphlet Distribution in different news papers

Pollution free Ranchi rally

Nerolac pedh lagao abhiyan .

Organizing football championship at local level.

Vinyl Flex on Auto

Mohalla event(Har Ghar main Rang Nerolac ke Sang)



49/75

Planning of Promotional activities

Rickshaw Rally in different regions

Route Decided for rally:

Route1:

Route2:

Route3:


Firayalal

Chowk

Church

Complex

Sujata

Chowk

KacheriChowk

KantatoliChowk

LalpurChowk

Ratu Road

Chowk Piska More


50/75

Route4:

Route5:

Blood Group test at different locations

Firayalal chowk

Church complex

Kantatoli chowk

Duranda cowk

Argora chowk


Kadru

Chowk

ArgoraChowk

DorandaChowk

Birsa

Chowk


51/75

Birsa chowk

Mohalla event(Har Ghar main Rang Nerolac ke Sang)

Location:

Harmu Housing Colony

Bariyatu Housing Colony

P.P Compound

A.G Colony

Ashok Nagar

After listing the ideas, I acted for the implementation of those ideas. To accomplish this task I

visited different Rickshaw depot, Pathologists, School Principles, news paper hawkers in Ranchi.

I then made a list of all the expenses going to incur for these promotional activities and events.

The main objective of the survey was to find out the present status of the Kansai

Nerolacs products in the Ranchi Market. One more thing I need to collect was the information

about what kind of problems customers are facing in procuring the products.



52/75

This information was really helpful for me to have an idea about the market share of the

company at Ranchi.

COMPETITORS

Kansai Nerolac Paints Ltd. is the second largest paint company in India with a market share of

20% and sales turn over of Rs.1226 crores. It is the market leader in industrial / automotive

segment supplying over 90% of the OEM requirements. It is the leader in powder coatings.

Kansai Nerolac Paints Ltd. [KNPL] with its two wholly owned subsidiaries Saurashtra PaintsLtd., Ahmedabad and GNP Madras Ltd., ranks second in the industry. It is recognised as the

leader in the industrial paints segment with a market share of 41 per cent. The company has a tie

up with Kansai Paint Company of Japan, a world leader in paints, which holds 65 per cent stakein GNPL. Having derived maximum income in industrial paints from Maruti Udyog Ltd. (MUL)

until recently, the company has now widened its client base to include many other automobile

manufacturers like Mitsubishi Lancer, Hyundai Motors and Telco. Significantly, the company



53/75

continued to fare well despite the slowdown in the automobile segment and with the industrial

paints segment likely to witness good growth in the medium term, KNPL appears to be in a fairly

advantageous position and should be able to reap rich benefits in the future.

Talking of the competitors, there are three major competitors of Kansai Nerolac Paints Ltd.

1. Asian Paints Ltd.2. Berger Paints (India) Ltd.

3. ICI Paints Ltd.Besides all the above three companies there are few more companies which have been operating

in the market viz. Shalimar Paints, Rajdoot Paints, Jenson & Nicholson etc.

ASIAN PAINTS LTD.

Asian Paints is the Indias largest and the Asias third largest paint company today with a turn

over of 44.04 billion. Asian Paints operate in 20 countries and 28 paint manufacturing facilities

in the world servicing consumers in over 65 countries. Besides Asian paints the group operatesaround the world through its subsidiaries, Berger International Ltd. Apco coatings, SCIB Paintsand Taubmans. Asian Paints India Ltd. (APIL) has the distinction of being the market leader in

the paints industry and commands a market share of 37 per cent. It commands 38% in the

decorative paints segment and 15% share in the industrial paints segment. The company'sdominance is on account of its presence in almost all types of paints segments such as primers,

wood finishes and metal paints besides wall paints while other players cater to niche markets,

APIL sources its raw material requirements of pthalic anhydride and pentaerythritol from its ownin-house plants, which provides it an edge over its competitors by reducing its raw material

costs. The company has a strong presence abroad with joint ventures in Fiji,

Tongo, Solomon Islands, Nepal, Mauritius and Australia. What keeps it ahead of its

contemporaries is product innovation; for instance it was the first in the industry to tap theexterior paints segment. The major products of Asian Paints are Altima, Apex, Royale, Apcolite,

Ace etc.

BERGER PAINTS (INDIA) LTD.

Berger Paints is the countrys third largest paint manufacturer and the second largest decorative

paint player.Berger is headquartered in Calcutta and services the market through a distributionnetwork comprising of 75 stock points and 12,000+ paint retailers.

Being an ISO 9001 company its quality products have attained instant recognition, worldwide,

and continues to meet quality requirements that are demanded today even in the domestic



54/75

market. A leading player in the industry, Berger Paints boasts of a market share of 15 per cent. It

is predominantly engaged in the decorative paints segment, which is responsible for two-thirds of

its sales, remaining earnings come from the industrial paints segment. Berger has two plantslocated at Howrah and Pondicherry for producing synthetic resins and paints respectively;

besides these it also owns wholly owned subsidiary Beepee coatings, a manufacturing unit in

Gujarat. The company enjoys the benefits of technical tie-ups with Valspar Coatings, USA andHerberts, Germany for heavy-duty coatings and automotive coatings respectively. Berger

Paints is a company with fairly sound fundamentals and a steady financial track record.

ICI PAINTS LTD.

ICI India Ltd. (ICIIL) is a part of the Imperial Chemicals Industries (ICI), UK which is a world

leader in paints. The company has diversified interests and is not purely a paints company.

ICI Paints is the countrys fourth largest paint company.ICI Paints, headquartered in UK and

manufacturing in 24 countries, has some of the worlds top paints and decorative product brands.

ICI India manufactures and markets paints, specialty chemicals, adhesives and starch. Withemployee strength of about 900, ICI Indias manufacturing sites, business and sales offices anddistribution network span the length and breadth of the country. In the decoratives business, ICI's

exterior paints portfolio exhibited a strong performance. Commendable growth was registered by

our exterior emulsion brands Weather shield and Super cote. Our retail tinting package 'ColourSolutions' is emerging as the preferred choice for top quality paint retailers in the country, backed

by strong retail brands like Dulux Velvet Touch, Acrylic Emulsion and Gloss. The company,

which was a leader in the premium emulsion paint market, has now lost out to Asian Paints in thesame category.

DISTRIBUTION NETWORK:

Nerolacs strength of wide spread distribution network is its right arm in generating sales

revenue from all parts of India. Nerolac has a wide distribution network of over 11,000 dealers.

They have eight Sales Divisions and each division has depots to take care of local needs. In all

we have 66 depots. All this ensures complete reach in India including rural and up countrymarkets.



55/75



56/75

CHAPTER-05

FINDINGS, SUGGESTIONS AND CONCLUSION



57/75

OBSERVATION AND FINDINGS

With the help of the market survey I analyzed the whole paint industry and derived some data as

follows:

The table shows the market share of each of the company in the organized paint market.

Name of the Company Market Share (%)

Berger 17

Asian 33

J & N 6

ICI 17

Shalimar 4

KNPL 15



58/75

Others 8

The Pie graph shows the market share of Paint companies in the organized market segment.

Market Share(%)

Asian Paints

33%

KNPL

15%Berger

17%

ICI

17%

J & N

6%

Shalimar

4%Others

8% Asian Pai

KNPL

Berger

ICI

J & N

ShalimarOthers

Market share of different paint companies in the outer Ranchi.

The table shows the share of different companies:

Name of the Company Market Share (in %)

Asian 49

Berger 28

ICI 2

KNPL 4

Others 2



59/75

The above pie chart shows that the Asian Paints has dominated over the other brands in theinstitutional sale. After that comes the Berger Paints then the ICI paints then comes the Nerolac

Paints. It shows that the Kansai Nerolac Paints Limited have to work hard to achieve a good

share of the market. The other companies like the J & N and Shalimar occupies a percentage ofnearly 5% of the whole market

The market is further divided into decorative paints and industrial paints.

Decorative paints:

Caters to housing sector.

Premium decorative paints are acrylic emulsions used in the metros. The medium

range consists of enamels popular in small cities and towns. Distempers are

economy products demanded in the semi urban and rural areas.

Distribution network is the key.

Nearly 20% of the decorative paints sold in India are distempers. Industrial Paints:

Includes powder coatings, high performance coatings and automotive andmarine paints.

\Two thirds of the industrial paints produced in the country are automotive

paints.



60/75

Market Segment Market Share (%)

Decorative 70

Industrial 30

The pie chart given below shows the percentage of market share for the two section of the

market.

Market Share (%)

70%

30%

Decora

Industri

Following is the table for the dealer sells different paint brands in outer Ranchi

Name of the company DEALER

Asian 54

Berger 35

ICI 7

KNPL 12



61/75

Others 15

The table given below gives detail about reasons for demand of particular brand:



62/75


Reasons Number

Advertisement 21

Quality 45

Choice of Customer 10

Service 11

Brand Name 9

81


63/75

Following table shows the number of dealers keeps their Stock according to the motive of:

Reasons Number

Customer Demand 61

Profit Margin 6



64/75

Following table shows weather the customers are loyal towards particular brand or not:

Yes/No Number

Yes 44

No 22



65/75

Following table shows whether Architects, Contractors and painters are aware of newly launchedproducts or not?



66/75

Yes/No Number

Yes 53

No 13

RECOMMENDATION & SUGGESTIONS



67/75

FOR DISTRIBUTION CHANNEL:-

Depot in Ranchi is very much essential for the growth of KNP in this city.

Company must explore the interior areas and try to make new dealers over there.

Company must keep regular monitoring on the dealers and supply, which may retain the

availability and continuity.

Company must provide a gift or bonus to the dealers, painters and the contractors.

Company must distribute a gift and schemes through a proper channel.

Company must organize dealers and painters meet from time to time so that they can be

made aware of the new products (if any) which is going to be launched in the market.

Sales Supervisor should have good interaction with the dealers which results in increase

in sales.

Company executive should visit the counter on weekly basis.

Executive should take the feedback from the dealers about the service of the Sales

Supervisor and the dealers.

FOR SALES TREND:-

Company must provide better services and try to attend the suggestions and complaints

by the retailers, dealers, painters etc.

Company must provide general information about product and price in the market.

Company must provide a service for the expired products.

Company must improve its packaging and storing process.

Company must provide or make avail products according to the demand.



68/75

Company must provide support materials through a proper channel.

Company is required to keep an eye on dealers and going through to their problems.

Company must encourage the high selling counters by providing incentives and other

extra benefits.

The sales supervisor must visit the institutions on a regular basis especially in the

seasonal time.

The company must promote its products through continuous advertisement by the means

of different media. The advertisement should come not only in the seasons but also

during the off-season.

CONCLUSION



69/75

According to the survey made by me, I came to the conclusion that inspite of Nerolac being the

3nd largest player in the Decorative paint; it is not so good in the decorative segment compared to

the industrial segment. It is the market leader in industrial segment with 41% of the market

share. As far as the business is concerned Nerolac has to work a lot to increase its share in the

city Ranchi. As we know that the dealership network, advertisement and Supply chain

management are the main parts of sale. So if the company concentrates more on these areas,

then definitely it would be beneficial.

There is a regular demand of paint in the hotels and nursing homes/hospitals throughout the

year. The paint having better finishing and shining is in more demand in the hotels for the

interiors. In the nursing homes, people are price conscious; they dont bother much about the

quality. In the schools I observed that the school buildings are being painted after an average

period of 5 to 6 years. I observed that people paint their houses externally after more than three

to 4 years and internally nearly every year. So whenever there is a requirement of paint in the

house, the people opt for a good quality and long lasting paints, also I observed that

advertisement plays great role in influencing people for opting paint.

In the decorative segment Asian Paints rules the market. I also concluded that Asian Paints is

dominating over the other brands so far as supply is concerned. As per my observation I came to

the conclusion that there should be continuous approach and backup by the company executives

so as to get more market share.

Most of the Consumers are in need of a Paint which will hide the cracks on the wall.

To increase the Market share the Company should give rebate to the Dealers. Also during the

survey one of the dealers gave the information that the companys price is better than other

companys product, so there is no need of price change.

There is a need of strong advertisement to increase more selling. For that sources have suggested

that the company may spend some money on the hoardings and banners.

The company has to make all well informed about the newly launched product of the Company.

Try to make the Consumers loyal so that they should not switch to other Companys brand by

giving special offers time to time as the rate of brand switch is more in this part of the country.

Company can introduce niche marketing and target those specific consumer in different levels as

the consumer market can be divided into 3 category such as



70/75


71/75

BIBLIOGRAPHY



72/75

BIBLIOGRAPHY

Sites Visited:

www.nerolac.com

www.indiahousing.com

www.virtusglobal.com

www.asianpaints.com

www.paintindia.com

Books:

1. Kotler, Philip. Marketing Management, Prentice-Hall of India Pvt. Ltd., 10th Edition,

New Delhi: 2003.

2. Kothari, C.R. Research Methodology, Methods and Techniques, New age InternationalPublishers, New Delhi: 2004

http://www.nerolac.com/http://www.indiahousing.com/http://www.nerolac.com/http://www.indiahousing.com/


73/75

APPENDIX

QUESTIONNAIRE

Dear Sir/Madam:

I KUMAR ADITYA and KUMAR ADITYA, student of a 3rd trimester M.B.A. ofRourkela

Institute Of Management Studies Which is Under Biju Patanik University of Technology Is

under taking a Dissertation on the Topic Study of Paint industry in the city of Ranchi. I



74/75

would be grateful to you if you could spare sometime from your busy schedule and fill up the

questionnaire. I assure you that whatever information you provide will be kept confidential and

will be used for academic purpose.

Personal detail:

Dealer name: ___________________________________________

Place : ________________________________________

Phone/mobile no. : ___________________________________________

Q1.Which Companys Paint you sell?

1.Asian 2.Nerolac 3. Berger 4.Others

Q2. Which Paint is more in demand?


Q3.Why?

Q4.You mainly keep your stock according to demand of customer or making more

profit is the motive?

1. Customer Demand 2.Profit

Q5. Customers are more loyal towards particular brand?

1. Yes 2.No

Q6.Customers is influenced by?

Q7.Architects/Contractors are not aware of newly launched products?



75/75

1.Yes 2.No

Q8.Supply of which paint is more frequent?


Q9.Expectation from company?

Documents

Kartik Final