PAINT INDUSTRY IN INDIA

Foundation of paint industry in India was laid down in the year 1902 with the setting up of Shalimar Paints in Calcutta. It was during and after the World War II. That large number of paint manufacturing units was set up in India. Since then the Indian paint industry has made substantial progress.

The paint industry has come to the recognition as an important sector in the national economy in producing industrial coatings and decorative paints. Decorative paints available in wide range of combination account for 70% of the coatings total production. While industrial paints share the balance of 30%. This rate is diametrically opposite to the trend in the industrialized countries where industrial paints account for 70% and decorative paints for the balance of 30%.

The Indian paint industry is at the crossroads. Almost all major paint companies have expanded or are expanding its capacity substantially. With demand rising slowly competition is becoming increasingly intense.

The decreasing growth rate has made the paint companies to woo customers aggressively. The customer is being offered 10% rebate in most products, Unheard in the industry so far. Most companies have increased their discounts to their dealers to unimaginable level dealers are offered higher credit levels, flexibility in payment, foreign trips for selling even low value products. The increasing competition to offer solutions through technology has made all the paints make as offer a large number of shades through computerized color dispensing system.

India is the fastest growing paint market in Asia Pacific region. The estimated size of Indian paint industry is around € 3.5 Billion. The demand in the paint industry is seasonal to some extent. While the demand dips in the monsoon season and it is maximum in the festive season.

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CUSTOMER AWARENESS

Customers are informed and remaindered about the products and are requested and persuaded to purchase their products. Such communication may be made their along the product or well in advance of the introduction of the product into the market. Such communication becomes necessary when a new product or service is introduced in the market or an old product is improved or it is simply to increase the sales of the products.

“Awareness compasses all the tools in the marketing mix whose major role is persuasive communications.”

PHILLIP KOTLER

The main features of awareness are:

I. Customers are informed about the product or service of the company. Either at the time of introduction of a new product into the market or when any change is made in the existing product.

II. Customers are reminded of the products and services of the company.

III. Customers are requested or persuaded to purchase the product and services of the company.

IV. Awareness includes, advertising, personal selling and other sales promotional techniques.

Consumers must have awareness about the new products and their usage. Such activities are performed by the manufacturer. It is the responsibility of the producer to get information about the consumers and prospective consumers so that the necessary product may be served to meet their demands.

Subject matter companies must do more than make good products they must inform consumers about the product benefits and carefully position products in customers mind. To do this must skillfully use the mass promotion tools like advertising, sales promotion and public relations, personal selling, publicity.

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ADVERTISING:

Advertising is defined as any paid form of non personal presentation and promotion of an idea, goods or services by an identified sponsor.

“The best advertising is done by satisfied customers.” PHILLIP KOTLER

Advertising can be traced back to the beginning of the recorded history. Archeologists working in the countries around Mediterrian Sea have dug up signs announcing various events and offers. The roman painted walls to announce Gladiator fights, and the Phoenician painted pictures promoting their waves and large locks along parade routes.

In 1993 advertisers ran up of bill of more than $ 138 billion through advertising is used mostly by business firms it is also by a wide range of nonprofit organization professionals social agencies that advertiser target to various target publics.

Major Decision in Advertising:

Advertising has the impersonal contact and gives message to the receiver. The advertiser uses visual media like newspapers, magazines, radio, television, posters and pamphlets. There is no feedback to know the response from the people. Advertising is directed towards consumers. This leads to more expenses and so the things become a costly affair.

1. Advertising Objectives

a) To informb) To persuadec) To remind

2. Setting the advertising budget

After determining the advertising the objectives, the company next sets its adverting Budget for each product. The role of advertising is to effect demand for the product. However some specific factors are that should be considered when the setting the advertising budget.

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a) Stage in product life cycle.b) Market sharec) Competitiond) Advertising frequencye) Product differentiation.

3. Message Decision

A large advertiser can spent the same amount on advertising, yet have very different results studies show that creative advertising message can be more important to advertising success than the number of dollars spent.

4. Message Strategy

The purpose of advertising is to get consumers to think about or react to the product company in certain way. People will react only if they believe that they will benefit from doing Effective message consist of customers benefit, creativity, Meanings, distinctive in nature.

5. Major steps in media selection.

a) Deciding on reach, frequency, impact Reach is a measure of the percentage of the people in the target market who are exposed to the ad campaign during a given period of time. Frequency is a measure of how many times the average person in the target market exposed to the message. Impact – qualitative value of a message exposure through a given medium.

b) Choosing various media types: Newspapers Magazines Televisions Radios Outdoors Internet

c) Media timing

SALES PROMOTION

It includes activities other than advertising, personal selling, publicity and public relations which are used in promoting sales of the product or in persuading the customer to purchase the product.

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Distribution of samples, premium coupon, point of purchase display, offspring etc., are the examples of sales promotion techniques.

Samples - Offers to consumers of a trail amount of a product.

Coupons - Certificate that give buyer a saving when they purchase a specified product.

Rebates (cash refund offers) – It offers to refund part of the purchase price of the product to consumers who send a “proof of purchase” to the manufacture.

Principles - It reduce prices that are marked by the producer directly on the label or package.

Premiums – Goods offered either free or low cost and incentive to buy a product.

Advertising specialties – useful articles imprinted with an advertisers name given as gift to consumers.

Patronage reward – Cash or other rewards for the regular use of a certain company’s products or services.

Point of purchase (POP) – It displays and demonstration that takes place at the point of purchase of sale.

Discount – Straight discount on price on purchase during a period of time.

PUBLIC RELATIONS

An another major promotion tool ism public relations – building good relations with the companies various publics by obtaining favorable publicity, building up a good “Corporate image” and handling off unfavorable rumors, stores and events. The old name for marketing public relations was publicity, which was seen simply as activities to promote a company or its products by planting news about it in media not paid for by the sponsor. Public relations are much broader concept that includes publicity ass well as many other activities. Public relations department may perform following functions.

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a) Press relations – Creating and placing news worthy information in themedia to attack attention to a person, product or service.

b) Produce publicity – Publicizing specific products.

c) Public affairs – Building and maintaining national or local community relations.

d) Lobbying – Building and maintaining national or local community relations.

e) Investors relations – Maintaining relationship with shareholders and others in the financial community.

f) Development – Public relations with donors or members of non profit organization to gain financial or volunteer support.

PERSONAL SELLING Selling is one of the oldest professions in the world. The people who do selling go by many names. Sales people, sales representatives, Account executives, Sales consultants, Sales engineers, Agent District managers, and Marketing representatives to name just few Sales person, an individual acting for a company by performing one of more following activities like Prospecting, communicating, Servicing and information gathering.

PUBLICITY

Publicity is a non-personal not paid stimulation of demand of the products or services or business units by planting commercially significant news or editorial comment in the print media or by obtaining a favorable presentation of it upon radio, television or stage.

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COMPANY PROFILE

Akzonobel is the world’s largest paint manufacturer, but it does more than just paint a pretty picture. The company is also among the world’s largest chemical manufacturers and salt procedures. Akzonobel divides its business into three main lines i.e. Decorative Paints, which produces consumer and commercial paints and primarily serves Europe and North America; performance coatings, which manufactures marine and protective coatings, packaging coatings, automotive finishes, and Industrial coatings; specialty Chemicals, which makes pulp and Paper Chemicals, Functional Chemicals, Industrial Chemicals and Specialty Starches.

Akzonobel India introduces itself in a variety of ways i.e.

A coatings and chemicals powerhouse

Always innovative, Always ahead

A company dedicated to its people

Where values co-exist with the bottom line

Actually, Akzonobel India is all of the above and far more. It manufactures and markets a wide range of coatings and specialty chemicals. Around 1,780 people work in the six production facilities, two state-of-the-art research laboratories and 75 warehouses across India; its retailers are an impressive 8500 …and growing. It attracts some of the best talent in the country, with the ANI workforce comprising people who are dedicated, highly motivated and determined to succeed.

“A key enabler of our growth strategy is the merger of three Indian subsidiaries of Akzonobel N.V. with Akzonobel India. The assets and operations of Akzonobel Coatings India, Akzonobel Car Refinishes India and Akzonobel Chemicals (India) are now part of the company. Hence Akzonobel India has the platform and the portfolio to leverage the power of ‘One AkzoNobel’ and realize its vision for the future.

So where does the company see itself, in the future? The targets have been defined – projected revenues of 1 billion Euros. And in this passage to accelerated growth, the company sees itself upholding all

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relevant standards of corporate governance, ethics, sustainability and other pressing issues that dominate world space today.

The steps have been taken- a-state-of-the-art green plant that was set up in 2013. Plans for expanded capacity and more products across business units combine to highlight the fact that ANI is committed to innovate, create and complete.

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OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES:

To find out which factors has got influence on customer awareness in

Paints industry.

To know the awareness level of “Dulux Paints” in customers.

SECONDARY OBJECTIVES:

To identify the customer’s requirements.

To analyze the customer’s perception regarding the preference of Dulux

Paints product.

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NEED OF THE STUDY

The main objective of the study is to know the Customer

Awareness with respect to Dulux Paints.

The need for this can be explained if one knows the importance

of understanding the customer awareness. So in the following paragraph

the customer awareness and its role in the success of an organization have

been explained.

Customer awareness is taken up to boost the sales of a product

by the company. Companies having production capabilities may produce a

product and price is according and sell through the dealers and retailers by

its distribution network.

Considering the fact that consumer according to the time need,

want and purchasing power, it depends on the product; therefore, the

marketers rely on the marketing mix to cater the customers efficiently and

effectively.

So the companies producing the product, pricing and planning

them have to carefully look into the minds of the customers and place the

products favorably in the minds of the consumers.

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RESEARCH METHODOLOGY

In order to realize the study the objectives a considerably

volume of both primary and secondary data is needed. It has been

therefore found necessary to conduct an Interview schedule for gathering

relevant data from the users.

Primary data has been collected from the industrial buyer

during the internship period with the help of a structured Questionnaire

with stratified sample of 200 respondents have been taken for carrying out

the study.

Secondary data, the information regarding the Indian paint

industry has been drawn from various published sources. They include

professional business Journals and Magazines, besides the newspapers. The

data relating to Dulux Paints has been collected from company records.

This study is necessarily based on the limited knowledge and

little practical exposure the constraints of resources and time have further

imposed limits to the study boundaries.

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DATA ANALYSIS AND INTERPRETATION

Q1. Have you been involved in the purchase of paint?

Yes …………………………………………..168 No ……………………………………………32

84%

16%

NO. OF RESPONDENTS

YESNO

INTERPRETATION

In this pie chart we show how many customers are involved in the purchase of paint. We found that 84% customers are involved in the purchase of paint and 16% customers were not involved. These 16% customers are living in a rented house that’s why they are not involved in the purchase of paint.

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Q2. When is the last time that you had your house painted?

Less than 6 months ago ……………………………………00 6 months – 2 Years ago …………………………………….36 2 Years – 4 Years ago ………………………………………..48 4 Years – 6 Years ago ………………………………………..66 More than 6 years ago ………………………………………50

18%

24%

33%

25%

NO. OF RESPONDENTS

LESS THAN 6 MONTHS6 MONTHS - 2 YEARS2 YEARS - 4 YEARS4 YEARS - 6 YEARSMORE THAN 6 YEARS

INTERPRETATION

When we ask this question, 18% customers said that they had painted their house 6 months to 2 years ago. 24% customers said 2 years to 4 years ago. 25% of customers said they had painted their house 4 years to 6 years ago and 33% customers said more than 6 years ago.

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Q3. Which brand of paint did you use?

Berger …………………………………….28 Asian ………………………………………67 Dulux ……………………………………...65 Nerolac …………………………………...22 Other ………………………………………18

14%

34%

33%

11%9%

NO. OF RESPONDENTS

BERGERASIANDULUXNEROLACOTHER

INTERPRETATION

In this pie chart we show the different brands of paints used by the

customers. 14% customers said they always used Berger paints. 33%

customers go with the Asian paints. 33% of customers said they always

used Dulux paints. 11% customers said Nerolac and 9% said other brands

like Shalimar, Kamdhenu etc.

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Q4. What is your approximate budget towards painting?

Below 50,000 …………………………………………..146 50,000 – 75,000 ……………………………………….28 75,000 – 1,00,000 …………………………………….20 Above 1,00,000 ………………………………………..06

73%

14%

10% 3%

NO. OF RESPONDENTS

BELOW 50,00050,000 - 75,00075,000 - 1,00,000ABOVE 1,00,000

INTERPRETATION

As per the pie chart mostly customers said that there approximate budget

for the painting is below Rs. 50,000. 14% of customers said their budget is

between Rs. 50,000 to 75,000. 10% customers said in between Rs. 75,000

to 1,00,000 And only 3% said above Rs. 1,00,000 because they have a new

construction or a bigger house to paint.

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Q5. How important do you consider the following factors while selecting a particular brand of paints?

Most Important Very Important Important Unimportant

Brand Reliability 92 45 49 14

Price 134 34 32 00

Own Experience 86 96 18 00

Advice of Friends 35 46 78 41

Advice of Painters 147 34 12 07

Advice of Retailer 57 43 23 77

BRAND RELIABILIT

YPRICE

OWN EX

PERIEN

CE

ADVICE OF F

RIENDS

ADVICE OF P

AINTE

RS

ADVICE OF R

ETAILE

R0

20406080

100120140160

MOST IMPORTANT

VERY IMPORTANT

IMPORTANT

UNIMPORTANT

FACTORS INFLUENCING SELECTION OF PAINTS

NO

. OF

RESP

ON

DEN

TS

INTERPRETATION

As per the bar chart most of customers said they consider some factors like

Brand Reliability, Price, Own Experience, Advice of Friends, Painters and

Retailer etc. The number and the percentage are shown in the bar chart.

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Q6. How would you rate the following paint manufacturers in terms of quality and reliability?

Very Good Good Poor Very Poor

Berger 37 93 59 11

Asian 156 39 05 00

Dulux 134 66 00 00

Nerolac 28 102 44 26

BERGER ASIAN DULUX NEROLAC

0

20

40

60

80

100

120

140

160

VERY GOODGOODPOORVERY POOR

PAINT COMPANIES

NO

. OF

RESP

ON

DEN

TS

INTERPRETATION

In above Bar chart, customers rate the different paint manufacturers

companies. With the help of this we are able to know what customers

actually think about the quality and reliability of different paint companies.

The percentage is given in the bar chart.

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Q7. What is the expected life for interior paints by you?

6 Months ………………………………………………00

1 Year …………………………………………………...04

2 Years ………………………………………………….24

5 years …………………………………………………172

2%

12%

86%

NO. OF RESPONDENTS

6 MONTHS1 YEAR2 YEARS5 YEARS

INTERPRETATION

In this pie chart we show about customer’s expected life of interior paints.

The minimum expected life of interior paints is 1 year which is chosen by

only 2% customers. 12% customers expected minimum 2 years and 86%

customers said that they expected minimum 5 years.

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Q8. What is the expected life for exterior paints by you?

6 Months …………………………………………………00 1 Year ……………………………………………………...09 2 Years …………………………………………………….33 5 years ……………………………………………………158

5%

17%79%

NO. OF RESPONDENTS

6 MONTHS1 YEAR2 YEARS5 YEARS

INTERPRETATION

In this pie chart we show about customer’s expected life of exterior paints.

The minimum expected life of interior paints is 1 year which is chosen by

only 4% customers. 17% customers expected minimum 2 years and 79%

customers said that they expected minimum 5 years.

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Q9. Are you aware about Dulux paints products?

Yes …………………………………………………….187 No ………………………………………………………13

94%

7%

NO. OF RESPONDENTS

YESNO

INTERPRETATION

When we ask from the customers regarding awareness of all Dulux products, 93% of customers said yes and 7% customers said no.

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Q10. Are you aware about the Colour Palette concept of the Dulux Paints?

Yes ……………………………………………………………….158 No ………………………………………………………………….42

79%

21%

NO. OF RESPONDENTS

YESNO

INTERPRETATION

When we ask from the customers regarding the colour palette concept of Dulux paints, 79% of customers said yes and 21% customers said no.

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Q11. Which kind of guidance you are expected from the company?

Provide details on recent development and products ……….19 Educate on product features ……………………………………………53 Appraise on product suitability ………………………………………..35 Knowledge of sales discounts …………………………………………..42 Budgeting while painting …………………………………………………51

10%27%

18%

21%

26%

NO. OF RESPONDENTS

PROVIDE DETAILS OF DE-VELOPMENTEDUCATE ON PRODUCT FEATURESAPPRAISE ON PRODUCT SUITABILITYKNOWLEDGE OF SALES DISCOUNTBUDGETING WHILE PAINTING

INTERPRETATION

When we ask from customers what kind of guidance they required from the

company. 9% customers said they required details of recent development

in the product. 26% customers expected to educate on product features.

18% customers required appraise on product suitability. 21% customers

wanted to know sales discount and 26% customers also required help in

budgeting while painting.

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SWOT Analysis of Akzonobel (Dulux)

SWOT analysis is a method of analyzing a brand’s competitiveness

is through the assessment of internal strengths (S) and weaknesses (W), as

well as environmental opportunities (O) and threats (T). This analysis will

explain about the strengths, weaknesses, opportunities and threats of

Akzonobel (Dulux).

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STRENGTHS

Brand Name.

More than 80 years of experience in the paint industry.

Multinational Company.

World renowned chemicals and paints manufacturer.

Having production setup in more than 55 countries.

Wider range of products.

Wider dealer network as compared to its competitors.

Business volume is very high as compared to competitors.

Focuses on safety, security, health and environment as a corporate

social responsibility.

Technological advantage.

WEAKNESSES

Very low discounts for business partners.

Complex supply chain configuration.

Comparatively less convenient delivery of the products as business

partners are in 1000’s.

Meeting demand becomes a challenge in the demand season.

OPPORTUNITIES

India is a developing country and there is a lot of business growth in this

country. So seeking new markets in this area is great opportunity.

Finding problems to the painting problems can also help to grow. Such

products are still absent in the market which can gain the attention of

customers. So to work on those problems lead to a great opportunity.

Higher standard of living and awareness developing in India.

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THREATS

Threat of new entrants in the market.

Fake Paints.

Political instability in India.

Economic instability.

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LIMITATIONS OF THE STUDY

The respondents of the questionnaire are very busy and could not afford

more time to answer. The average time to response was 5-6 minutes

only.

A limited sample size of 200 customers was considered because of time

constraint. An assumption is made that the sample represents the whole

population. It will not carry the total reflection of the copier market.

Total sample size is comparatively less to represent the entire

population.

A time period of only 8 weeks was allowed for the completion of this

product. So considering all the consumers for the study was not

possible.

The data was of primary nature. So the degree biases were relatively

high as the sample was randomly selected.

Study restricted to geographical territory of Parwanoo and Mandi cities

only.

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CONCLUSION

Paint industry has shown a rapid growth in the last year 2013-14 and since then there has been a decreasing growth in the industry. Dulux Paints – one of the largest paint companies in India, which has shown a tremendous since its establishment, liberalization. This is an achievement, achieved by careful planning a following firm procedures set by the company management.

Each Dulux Paint production centre has a distinguished packing so that by looking at the drum or cartons the plant identification become easy to the godown in-charge. The company has a excellent distribution network which is the prime reason for its success followed by marketing plans.

The company has a full fledge research of development function, whose aim is develop and present new products every year. The price and selection of target is also done to protection. Dulux Paints has developed many brands and which have well penetrated in the minds of customers. For example: Velvet Touch, Super Clean, Super Smooth, Weathershield and Weathershield Max etc.

Dulux Paints (Akzonobel) was the first to enter with manual and computerized color dispensing concept which took off with the advent of computers, Dulux is not lacking behind in this they have developed “Colour Palette” for the consumers with over 2000 shades to be selected from.

The study of my topic is “Customer Awareness” with reference to AkzoNobel India Limited (Dulux Paints). Advertising, Sales Promotion, Personal Selling, Public Relations and Publicity are the customer’s awareness programs to be conducted by the company.

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Q1. Have you been involved in the purchase of paint?

Yes No

Q2. When is the last time that you had your house painted?

Less than 6 months ago 6 months – 2 Years ago 2 Years – 4 Years ago 4 Years – 6 Years ago More than 6 years ago

Q3. Which brand of paint did you use?

Berger Asian Dulux Nerolac Other (Specify) ___________

Q4. What is your approximate budget towards painting?

Below 50,000 50,000 – 75,000 75,000 – 1,00,000 Above 1,00,000

Q5. How important do you consider the following factors while selecting a particular brand of paints?

Most Important Very Important Important Unimportant

Brand Reliability

Price

Own Experience

Advice of Friends

Advice of Painters

Advice of Retailer

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Q6. How would you rate the following paint manufacturers in terms of quality and reliability?

Very Good Good Poor Very Poor

Berger

Asian

Dulux

Nerolac

Other

Q7. What is the expected life for interior paints by you?

6 Months 1 Year 2 Years 5 years

Q8. What is the expected life for exterior paints by you?

6 Months 1 Year 2 Years 5 years

Q9. Are you aware about Dulux paints products?

Yes No

Q10. Are you aware about the Colour Palette concept of the Dulux Paints?

Yes No

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Q11. Which kind of guidance you are expected from the company?

Provide details on recent development and products Educate on product features Appraise on product suitability Knowledge of sales discounts Budgeting while painting

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BIBLIOGRAPHY

1. BOOKS

“Essentials of Management Concepts”- KOONTZ O’ DONNELL

“Marketing Management”- PHILIP KOTLER

“Research Methodology”- C.R. KOTHARI

2. WEBSITES

www.akzonobel.in www.managementparadise.com

3. REFERENCE

Akzonobel Outlet in Parwanoo.

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