Chapter-1

INTRODUCTION
AND
RESEARCH
METHODOLOGY

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 In the project, the nature of research is exploratory research whereby the efforts have
been made by executing the research in the city of Ranchi, Jharkhand. A systematic as well as
well-designed approach has been adopted while conducting research about market
characteristics.

It is followed by the research methodology which is adopted has been defined with the
help of collected data, a detailed interpretation about the company has been given there, the
product profile is defined covering the types and different range of decorative paints of Kansai
Nerolac Paints Ltd. The next step was defining the sampling design where by the sample size of
35, which consists of the dealers, Painters, students, contractors, service holders and the target
area was the Ranchi Town to facilitate the research work and 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

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OBJECTIVE

PRIMARY OBJECTIVE:
To Study the “consumer behaviour and sales promotion of kansai nerolac paints ltd.” in the
town of Ranchi, Dealer Potential and that of major decorative paint companies vis-à-vis Kansai
Nerolac Paints Ltd. through comparative analysis. The study also aims to understand problem
faced by dealers & retailers.

SECONDARY OBJECTIVES:
• To find which Company’s paint is commonly used by customers.
• To find the reason for using preferred paint brand and various product varieties of
paint brand known to customer.
• To find source of getting the knowledge about it.
• To find ,What matters while purchasing the paint that is Quality, Quantity, Price,
Washable, Color retention, Anti-algal, Anti-peel.
• To determine the preference level of Kansai Nerolac in comparison to Asian, Berger, ICI.
• To trace the kind of offer that attracts customer more viz. Price-Discount, Extra
quantity offer, gifts.
• To know about the customer’s response about eco-friendly brands like Nerolac Excel
Total and Eco Clean.
• To find out the sales level of Kansai Nerolac in comparison to other major players.
• To find out the Dealer’s Perception about the Kansai Nerolac Product.
• To find out the reason of dealing with the paint company.
• To find number of colour machine of different paint company.
• To study highest selling exterior & interior paint brands.

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SIGNIFICANCE OF STUDY

Market research is concerned with the authentic and objective collection, analysis and evaluation
of information about specific and practical aspects of marketing problems in order to help the
management in making effective decisions. Market research is not an end in itself but it is a
means to an end.

My study on this project will help the company to know its strengths and weaknesses and its
share in the market and that of competitors and to make strategic future decision to improve its
market awareness and penetration and thus finally enhance its sales.

• Primarily this study will enable the company to evaluate its position among the
competitors in respect to all the important factors related.
• Secondarily this study will enable the company to develop a fruitful correspondence with
the leads generated during the tenure of the study conducted.
• Thirdly to chalk out marketing strategy to boost the sale.
• Fourth to plan promotional activities based on the observations of the report.
• Fifth to take steps to address problems of dealers & retailers.
• Lastly to bring company,dealers, retailers & painters more closer so that they work
together to increase the s

RESEARCH METHODOLOGY

Marketing research is the backbone of marketing. The main objective of my study was to
get information from the dealer regarding the sales and preference level of various decorative
paints, and to estimate the real potential of the paint market.

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

can also define research as a scientific research for pertinent knowledge or information on a

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specific topic. This is a systematic and objective identification, collection 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 present 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 researcher’s 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.

The research conducted by me on this product is one of the techniques of depth interview
called “symbolic analysis”. This technique attempts to analyze the symbolic meaning of the
product by comparing them with their opposite or competitors.

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.

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Fig no :1.1

Research Data

Secondary Data Primary Data

Qualitative Data Quantitative Data

Descriptive Casual

In order to achieve the above objective exploratory research was carried and different steps were
followed.
Define the problem & research objectives
Management must define the problem in broader way. It is said that by defining the problem it is
half solved. The objective of the research is as stated above.
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
Data sources
Primary data:

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It has been collected by forming a proper questionnaire. Questionnaire is a systematic and
structured 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 Kansai Nerolac Paints Ltd and information brochures
of the company at Jamshedpur branch office. I concern the books like – “Research
Methodology“- by C.R.Kothari and “Marketing Research” – 4TH editions by Naresh k. Malhotra
for the basic information about the project, product profile were also used for the secondary data.

Research instruments

Questionnair: The questionnaire contain 14 questions,11 open ended question and 3 close ended
question. It is designed to collect data relating topersonal details & company
performance.

Personal interview

Sampling design

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
For dealers
Painters
Scope of the study
The fieldwork included the process of getting the questionnaires filled up and also getting all the
relevant information regarding the visibility of Kansai Nerolac for future business decisions.
My fieldwork included extensive coverage of the following areas:-

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 • Kadru bypass- ashok nagar- harmu road
• Purulia road-Circular road
• Ranchi Main road

My data collection process included in-depth interviews with the dealers and retailers getting as
much as relevant information as possible.

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 Chapter-2

PAINT INDUSTRY &IT’S

OVERVIEW

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 INDUSTRY OVERVIEW

The Indian Paints industry has come a long way since its start in the year 1902, from
merely a decorative paints market, strongly influenced by the festivals, to a well diversified
market now. The paints market now constitutes decorative as well as industrial paints. The paints
market is also more technologically advanced. The industry is raw material intensive, as these
constitute a major portion of the total cost of the product. Low household consumption on paints
in India, compared to other developing regions, offers high growth potential of the market. The
industry is dominated by the organized sector, which constitutes more than two-thirds of the total
market. Asian Paints is the market leader in the organized sector. The other major players are
Kansai Nerolac Paints, Berger Paints and ICI Paints.
The market size of the Indian paints sector has been pegged between Rs 112 bn and Rs 115 bn in
value terms and is very fragmented. In volume terms, the sector posted a 16% YoY growth in
FY07. The current demand is estimated to be around 650,000 tonnes per annum and is seasonal
in nature. The per capita consumption of paints in India stands at 0.5 kg p.a. as compared to 1.6
kgs in China and 22 kgs in the developed economies. India's share in the world paint market is
just 0.6%.
The unorganized sector controls around 35% of the paint market, with the organised sector
accounting for the balance. In the unorganized segment, there are about 2,000 units having small
and medium sized paints manufacturing plants. Top organized players include Asian Paints (44%

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market share), Kansai Nerolac (20% market share), Berger Paints (17% market share) and ICI
(12% market share).
The Indian Paint Industry has witnessed remarkable growth over the last few years in terms of
volumes, quality and also technological development. Until now, it has been mainly dominated
by the decorative products; but steadily it is moving towards industrial and protective coatings,
which demonstrates its increasing sophistication.

• The Indian paint industry is a Rs 49 billion sector.

•

• The demand for paints is relatively price-elastic but is linked to the industrial and
economical growth.
• The per capita consumption of paints in India is very low at 0.5 kg per annum if
compared with 4 kg in the South East Asian nations and 22 kg in developed countries.
The global average per capita consumption is 15 kg.
• In India the organized sector controls 70 percent of the total market with the remaining
30 percent being in the hands of nearly 2000 small-scale units.
• In India the industrial paint segment accounts for 30 percent of the paint market while the
decorative paint segment accounts for 70 per cent of paints sold in India.
• In most developed countries, the ratio of decorative paints vis-a -vis industrial paints is
around 50:50.
• All the industry majors have a vast dealership network and are required to maintain high
inventory levels.

Most of the paint leaders have technical tie-ups with global paint leaders
Demand for paints comes from two broad categories:

Decoratives: Major segments in decoratives include exterior wall paints, interior wall paints,
wood finishes and enamel and ancillary products such as primers, putties etc. Decorative paints

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account for over 75% of the overall paint market in India. Asian Paints is the market leader in
this segment. Demand for decorative paints arises from household painting, architectural and
other display purposes. Demand in the festive season (September-December) is significant, as
compared to other periods. This segment is price sensitive and is a higher margin business as
compared to industrial segment.
Industrial: Three main segments of the industrial sector include automotive coatings, powder
coatings and protective coatings. Industrial paint's market size stands at around Rs 9.5 bn. Kansai
Nerolac is the market leader in this segment. User industrie for
industrial paints include automobiles engineering and consumer durables. The industrial paints
segment is far more technology intensive than the decorative segment.
The paints sector is raw material intensive, with over 300 raw materials (30% petro-based
derivatives) involved in the manufacturing process. Since most of the raw materials are
petroleum based (ex: Titanium Dioxide), the industry benefits from softening crude prices.
The paints sector is raw material intensive, with over 300 raw materials (30% petro-based
derivatives) involved in the manufacturing process. Since most of the raw materials are
petroleum based (ex: Titanium Dioxide), the industry benefits from softening crude prices.

FINANCIAL YEAR 08’

Since the paint sector tracks the overall GDP growth, the growth in topline for the top three
players was healthier, with Berger Paints lagging the other two companies viz., Asian Paints and
Kansai Nerolac. Asian Paints outpaced its peers with a 21.5% YoY rise in net sales led by strong
performances by both the industrial and decorative segments. With the GDP growing at 9.2% in
FY07 (8.1% in FY06), the topline growth was relatively much stronger in comparison to the
growth witnessed in FY06.
CRISIL EXPECTS industry to grow at CAGR 14% in value term(11% at constant price) from
around 98 billion in 2005-06 to 112 billion in2012-13.
During the year, prices of raw materials increased sharply and the major increases were in
Xylene, Phthalic Anhydride, Acrylates and other petroleum based products and vegetable oils.
This was expected to have a negative impact on operating margins and Berger Paints did record
a marginal drop in the same. However, Kansai Nerolac actually posted a marginal expansion in

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margins while Asian Paints maintained margins at the same level as FY06. We believe this is
commendable.
All the key players are in an expansion phase. While Asian Paints is enhancing capacity at its
manufacturing facility in Himachal Pradesh (for powder coatings) and Maharashtra (industrial
coatings), Berger’s facility in Jammu started contributing Sto its topline performance, albeit on
the lower side. After exterior paints, industrial paints seems to be the focus area for paint majors,
with Asian Paints growing its revenues from this segment by over 24% YoY.

Budget 2008-09: Paints

The Indian paints sector is valued at Rs 95 bn in value terms and is very fragmented. In volume
terms, the sector posted a 15% YoY growth in FY08. The current demand is estimated to be
around 750,000 tonnes per annum and is seasonal in nature

SECTOR OUTLOOK

The focus on urban and rural housing to increase demand for paint companies shall lead to
increase in demand for paint companies. Also, lower custom duty on chemicals is likely to ease
some pressure on profitability by paring the pressure on cost of inputs. We expect the paint
sector to grow at 2 times long-term GDP growth in the future. With GDP growth expected to
around 8% to 9% per annum, the top three players are likely to clock above industry growth
rates.

COMPANY IMPACT

• Market leaders like Asian Paints, Kansai Nerolac and Berger Paints to benefit from
increased spending on rural and urban hosing.
These companies will benefit in terms of lower custom duties on raw materials like
chemical

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INDUSTRY WISH LIST

• Increase in the rate of abatement from the MRP (minimum retail price) to 50% from 40%
at present.
• Reduction of duty on import of raw materials used in the paints industry to 8% from the
current 16%, while retaining the rate of import duty on finished products at 16%.
• Continued impetus to the housing industry as the revival of the same boosts the growth of
the general economy and thereby the paint industry.
• The government should give incentives to companies that invest money in R&D activities
by way of weighted deductions for revenue spends and accelerated depreciation rates for

• investment in R&D equipments. This will help the Indian paint industry to become
globally competitive.

PROSPECTS

• The market for paints in India is expected to grow at 1.5 times to 2 times GDP growth
rate in the next five years. With GDP growth expected to be over and above 7% levels,
the top three players are likely to clock above industry growth rates, especially given the
fact that protection that was available to unorganised players has come down
significantly.
• Decorative paints are expected to witness higher growth going forward. The fiscal
incentives given by the government to the housing sector have benefited the housing
sector immensely. This will benefit key players in the long term.
• This apart, above normal monsoons in the current year would lead to higher agricultural
output thereby increasing demand for paint from rural areas. We expect paint demand to
grow by 12% to 15% in the next two to three years, largely led by post festive season
demand

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 • Demand in case of industrial segment is also expected to increase going forward. This is
on account of increase in demand in the automobile segment and increasing investments
• in infrastructure. Domestic and global auto majors have long term plans for the Indian
market, which augur well for automotive paint manufacturers like Kansai Nerolac and
Asian-PPG. Increased industrial paint demand, especially powder coating and high
performance coatings will also propel topline growth of paint majors in the medium term.
• As part of the budget proposal, peak customs duty was reduced from 12.5% to 7.5%,
which will lower the import cost of key raw materials. With more residual income with
the population, home loan disbursals are expected to grow at 25% CAGR in the next
three years, which is a positive for paint companies.

PRODUCT PROFILE : PAINTS

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Fig no: 2.1

Products
The products of the paint industry can be classified into two major segments decorative
(architectural) paints and industrial paints.
Decorative paints: The decorative paint segment can be classified into interior paints and
exterior or cement paints. 80% of the decorative paints account for interior paints, which consists
of premium, medium and economy categories. The premium category consists of plastic
emulsions, the medium-priced category consists of synthetic enamels and the economy category
consists of distempers.
Fig no:2.2

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The products under the decorative finishes can be limestone coatings, primers, distempers,
cement paints, matt/lustre finishes, enamels, emulsions (first quality), and premium emulsions.
Consumption of paints is skewed towards decorative paints which account for 70% of paints sold
in India. This is in a sharp contrast to the trend in developed countries, where the ratio is skewed
towards the industrial segment.
This segment is marked by the presence of a large number of players from the organized as well
as unorganized sector. Competition is high and margins tend to be low in this segment. Products
of this segment are relatively price sensitive.
Demand for decorative paints is seasonal with bulk of sales taking place during the festival
seasons from September to December. Besides sales remain slack during the monsoon months
from June to August.
Entry barriers in term of technological and funds requirements are relatively lower in the paints
sector. It is estimated that a plant of 1 m tpa will cost around Rs 120 m. However decorative
paints are marketing-savvy products and backed by large advertisement campaigns and
dealership networks. These serve as high cost entry barriers for new companies in this business.
The huge investments required in setting up a vast marketing and dealership network, to
advertise and develop a brand over a period of time can only be afforded by companies in the

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organized sector. It is for this reason that smaller companies and small scale sector units are
slowly losing market share to the organized sector
Industrial Paints:
Industrial paints comprising 30% of the market include automotive paints, high performance
coatings, coil coatings, powder coatings, marine paints and general industrial coatings. The
automotive segment is further bifurcated into OEMs and auto refinishes. The automotive and
general industrial coatings occupy top slot in terms of production

Fig no:2.3

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

The industrial paints segment due to specialized technology and high capital expenditure attracts
fewer players. Most Indian companies have tied up with or are in the process of tying up with
international paint majors to have access to the latest technology. A tie-up with a global paint
manufacturer also enables the domestic company to supply to local customers of its partner. For
example, Good lass Nerolac is a major supplier to Maruti Suzuki because of Kansai, its Japanese

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collaborator and Suzuki relations. It is for the same reason that Asian Paints (tie-up with PPG
Industries, USA) is a major supplier of paints to Opel Astra.

EMULSIONS: Emulsions are plastic paints which are used for the decorative purpose in the
exterior and interior walls. There are two types of emulsions namely:
• EXTERIOR EMULSION: These are mainly used in the exterior walls. Exterior
emulsions are some time can be used in interior walls also. There are two categories of
exterior emulsions:
a) Premium quality exterior emulsions
b) Regular exterior emulsions
c) Low quality exterior emulsions
Example: Excel everlast, Excel total, Excel, Suraksha Advanced, Suraksha Plastic.etc.
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 emulsion
b) Washable interior emulsion
c) Regular interior emulsion
d) Low interior emulsion

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 Example: Impressions 24 carat premium luxury emulsion, Nerolac Beauty Flexicoat,
Nerolac Acrylic Emulsion, Nerolac Premium Emulsion, Nerolac Beauty emulsion etc.

DISTEMPER: These are the paints which are considered to be cheaper as compared to the
emulsions 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 Based
Example: 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.
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 by
the enamels. There are three categories of enamels:
a) Hi-Gloss enamel
b) Satin enamel
c) Smooth finish enamel

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

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.

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 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.
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.

PAINTS COMPANY EVERYWHERE,NO CORNER UNTOUCHED

Fig no:2.4

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 Chapter-3

COMPANY &COMPANY
VIS-À-VIS
IT’S COMPETITORS

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 COMPANY PROFILE

Kansai Nerolac Paints Limited, a subsidiary of Kansai Paints, Japan, has been at the frontline of
paint manufacturing, pioneering a wide spectrum of quality paints through constant innovation
and superior, new products. The company is the leader in Industrial paints sector in India and has
set distinguishing benchmarks as a customer centric paint service provider.

Vision, Values, and Culture

In today’s dynamic business environment, no organization can afford to survive without a well-
articulated and carefully thought vision stating the overall strategic direction and long-term
future of its business.. To quote the vision of the organization:

“It is our vision to leverage global technology, for serving our customers with superior
coating systems built on innovative and superior products and world class solutions, to

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 strengthen our leadership in Industrial coatings and propel for leadership in
Architectural coatings, all to the delight of our stakeholders”.

“We firmly believe that it is not only the vision of where we wish to go which will form a
cornerstone of all our further growth, but also our conviction to the fact that the values based
proposition has to be ultimate foundation of our business”.To this end the company consciously
have internalized and been practicing these values in all its business transactions though human
beings.

 Innovation
Entrepreneurial
Responsive

 Simplicity
Team Orientation

Cultural Ethos

• Vision driven organization.

• Employees feel pride in being part of the organization.
• Recognition of human resources as extremely important and critical assets.
• Transparency and openness among employees at all hierarchical levels.
• Performance-linked reward system.
• Management and employee commitment to organization values is high.
• Autonomy in work is high.
• High commitment to quality products .

ORIGIN AND EVOLUTION OF NEROLAC PAINTS:

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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,
Goodlass Wall (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 (Pvt.) Ltd. Also, it went public in
the same year and established itself as Goodlass Nerolac Paints Ltd.
In 1976, Goodlass Nerolac Paints Ltd. became a part of the Tata Forbes Group on acquisition of a
part of the foreign shareholdings by Forbes Gokak.

In 1983, Goodlass Nerolac Paints Ltd. strengthened itself by entering in technical collaboration
agreements with Kansai Paint Co. Ltd., Japan and Nihon Tokushu Toryo Co. Ltd., Japan.

SSS 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 of Kansai Paint Company Ltd.

In 2006, on the 11th of July, Good lass Nerolac Paints Ltd. name has been changed to Kansai Nerolac
Paints Ltd.

Business Description

Kansai Paint Co Ltd. The Group's principal activity is the manufacture and sale of paint and
other products. The operations of the Group are carried out through the following divisions:
Painting operations and Other operations. Painting operation includes automotive coating,
decorative coating, industrial coating, construction coating and marine and protective coating.
Other operations include optical fiber communications and environmental preservation.
Associate company

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Nipa Chemicles 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. We provide
the technical and the marketing support for Nipa Chemicals
Technical collaborations
During the journey of continuous performance excellence, Kansai Nerolac Paints Ltd. has
entered in to many technical collaborations with other industry leaders such as E.I. Du-products
and Kansai Paints Co. Ltd.
The Quality Policy
It is the philosophy of Kansai Nerolac Paints Ltd., and its associates to achieve complete
customer satisfaction by providing products and services that consistently meet or exceed the
customer needs and expectations, pursuant to agreed specifications, delivery schedules and
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 company’s aim to constantly reduce waste of material and
effort, increase efficiencies and ensure safety of plant and people and protection of 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 they 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 one’s future in the organization. An open and transparent communication is
appreciated.

ENVIRONMENTAL POLICY:
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

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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 shall encourage
continual and targeted improvements to:

- Prevent waste generation at source

- Reduce, recover and recycle wastes

- Reduce and prevent pollution of air, water and land.

THE HR PHILOSOPHY:

Our Human Resource Policy is, to facilitate creation of synergy, mutuality and interdependence
between individual and corporate development and growth through total employee involvement
and building an enabling work culture in the organization.

Social Responsibility

The company continues to make its due contribution to community relief and development
activities 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.

People at Kansai Nerolac Paints Ltd.

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At Nerolac, it is an exciting work environment charged with ever increasing enthusiasm to reach
stretched goals, met challenges effectively and deal with problems proactively. A well-balanced
system of compensation with rewards linked to performance has created an effective
performance orientation all through the organization. It is sustained perpetually with conscious,
proactive systems such as ‘Balanced Scorecard’, ‘Performance commission dependent upon
key Result Areas’, ‘Corporate Commission for corporate performance’ ‘Annual awards to
technical personnel’ for excellence etc. Well, there is hierarchy and organization structure
based on functional responsibilities. But there is an excellent amount of informality, cordiality
and flexibility all through the organization. There are instances of people having joined as
management trainees or at other junior level and reached top position in early/ mid thirties. The
head of decorative marketing, the head of supply chain, the head of IT, the head of industrial
marketing are some such instances. However, whether a Nerolite has ran such fast track of
career or not, Nerolac is undoubtedly one of the best employers in India.

Nerolac has a complement of young and vibrant managers and executives all with contemporary
professional qualifications. The average age is about 37 years.

MANAGEMENT AND KEY PEOPLE

“The people who make the company are its real assets.”
At Kansai Nerolac, the company stands by this. The success of Kansai Nerolac has hinged on this
philosophy since 1920, and being the second largest paint company in India is the rightful tribute to its
people's commitment and dedication. The team of PhD’s, engineers and technicians visit
collaborator's plants abroad to update themselves with the latest technique
Table no:3.1

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BOARD OF DIRECTORS

Name of the Person Designation

Dr. JAMSHED JIJI IRANI CHAIRMAN
MR. DEVENDRA MOTILAL KOTHARI VICE –CHAIRMAN
MR. HIROSHI ISHINO DIRECTOR
MR. YUZO KAWAMORI DIRECTOR
MR. PRADIP SHAH DIRECTOR
MR. HARISHCHANDRA MEGHRAJ BHARUKA MANAGING DIRECTOR
MR. SUSIM MUKUL DATTA DIRECTOR
MR. NOEL TATA DIRECTOR
MR. YASO TAJIRI DIRECTOR
MR. PRAVIN CHAUDHARI DIRECTOR

Table no:3.2

Management Committee Members

Name of the Person Designation
Mr. H.M. Bharuka Managing Director
MR. Pravin Chaudhari Director
Mr. Shrikant Dikhale Vice President – HR
Mr. Anuj Jain Vice President - Marketing (Decorative)
Mr. Mahesh Mehrotra Vice President – Technical

Mr. Hitoashi Nishibayashi Director Supply Chain & Auto Marketing

Mr. P.D. Pai Vice President - Finance

Mr. Jason Gonsalves Vice President - Corporate Planning & IT

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Training & Development at Kansai Nerolac Paints Ltd.

Be that a plant worker or a top-ranking manager – when it comes to training & development,
everybody is important in Nerolac . Besides, well designed training and development
programmes, They have brief interactive sessions regularly with an outside expert or a senior
professional from industry from any discipline. ‘Saunvad’ is what they call these interactive
sessions. The session could be on any subject – be that health related, spirituality or a typical
business related theme. they encourage employees to participate in external seminars and
training programmes as faculty and disseminate knowledge.

While they regularly induct talent from outside, they believe in growing their own timber. they
look at their people, evaluate their strengths, assess their development needs, develop them and
give them career opportunities within the organization. Towards this intent they conduct
Development Centers. It is an initiative with a clear focus on people available in the
organization.. the Development Centers are aimed at helping people build on their strengths and

improve in the areas of inadequacies. Besides Development Centers, they also provide
multidimensional feedback to senior managers on their individual profiles by periodically
conducting 360-degree appraisals.

Innovation in Research & Development

“Complete through Innovation”

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 and
continuously innovating on its product

MANUFACTURING STRENGTH:

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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 fifth
factory 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 March
2005, with a capacity of 20400 TPA with an investment of around Rs.100 crore- all through
internal accruals.
ISO CERTIFICATION OF THE MANUFACTURING UNITS:
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 their
commitment to Quality, our manufacturing facilities are ISO 9000 / certified. Not only that their
major mfg. units are ISO 14000 (Environmental std) certified.
The current status of certificates with respect to Quality System and Environment Management
System for various manufacturing units is detailed below –

GEOGRAPHICAL PRESENCE:
Kansai Nerolac has been operating and rendering its services in 22 states of India.
Table no:3.3
NAME OF THE STATE CITIES
Andhra Pradesh Hyderabad,Vijaywada,Vishakapatnam
Assam Guwahati

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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 Delhi
Orissa 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

Nerolac Disney solutions

The New Year 2006 began with an announcement from one of the biggest paint companies in
the country, Goodlass Nerolac Paints Limited who declared the launch of their latest range of
products for kids, ‘Nerolac Disney’ today at a Press Conference in Mumbai.

WALLS THAT TELL A STORY

Nerolac Disney is being positioned as a paint that helps you ‘Bring Your Kids Dreams Alive’
through wall designs that tells a story of their own. Initially only to be launched in 8 markets viz;
Mumbai, Delhi, Kolkata, Chennai, Ahmedabad, Pune, Hyderabad and Bangalore, the product
pack will contain Wall designs which consists of a ‘Paint for the wall’ and ‘Custom made
Stencils’ to capture the designs on the wall. In spite of being a premium product, the product has

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been economically priced for the Indian Household. For painting of wall with Nerolac Disney
designs it will cost Rs 25 per sq ft onward

Vaastu Building a New Home

If you are about to build a new home, make sure you make it keeping in mind the principles

of vastu shastra. This is how you can get bliss to your life, It aims at providing guidelines for

proper construction. It’s a study of planetary influences on buildings and the people who
live in them
.
Quality Safety and Environment
Quality-- In continuation of our efforts to achieve highest Quality standards we the Kansai

Nerolac Paints Ltd have successfully implemented various Quality Managements Systems in our

organization. All manufacturing locations of KNPL have been certified for ISO 9001-2000

Being major Industrial paint manufacturer & supplier to OEM customers KNPL has also

implemented QMS as specified by ISO/TS 16949 standard .Our industrial paint manufacturing
locations are certified for ISO/TS 16949 -2002

The Japanese 5-S and TPM (total productive maintenance) concepts have been implemented in
organization.

Safety The Company takes the greatest possible care to ensure the safety, health and welfare of

its staff and the communities living around its facilities. All manufacturing locations are

OHSAS-18001 certified. Safety is given paramount importance across the organization. Safety

and occupational health programme are in place to ensure the wellbeing of employees and

facilities at all locations. The safety management system is in line with guidelines set by the
British Safety Council.

Environment KNPL aims to promote sustainable environment management which contributes to

environmental conservation. Protecting the environment is a crucial component. All

manufacturing locations are ISO-14001 certified which helps the organization to achieve sound

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environmental performance. All plants strive to conserve natural resources and eliminate all

wastes and losses through optimal use of resources & refining processes. KNPL makes

environmental information available to all stakeholders through its annual environmental report

MARKETING ACTIVITIES AT KANSAI NEROLAC PAINTS LTD.

“Marketing is the management process that identifies, anticipates and satisfies customer
requirements profitably.” – Philip KotlerThe tools used by Kansai Nerolac Paints Ltd. for
fulfilling the various purposes of its promotional activities are the following:-

 Point of sale display

 Dealer’s sales contest

 Advertising

 Sales promotion through special

event market.

 Sales promotion through salesman

i.e. personal selling.

 Incentives.

 Painter’s Meet.

 Tokens.

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COMMUNICATION

At Kansai Nerolac, the marketing function has been one of the pillars behind building a
successful organization. We believe our key strength lies in understanding the consumer and
communicating with him in a language they understand and relate to best. Nerolac
commercials have been well -loved over the years and its jingle - 'Jab ghar ki raunaq
badhaani ho...' is now a familiar tune in every Indian household.
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 the introduction 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 our 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
the new baseline ‘Yeh Rang hain jo har kisi ko chhoota hain’.

Apart from the corporate campaign, we 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
sure this was one campaign that was a runaway success.now with the campaign”tere raang
raang tere saanga”

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 Complimenting our core business of paints last year also
saw the launch of “Nerolac Assured Paint 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
while the Nerolac team takes over the entire paint job right from sourcing to execution.

.On the award front, we made a great start to the year by winning two Emvies, or media
awards for innovative executions. So, it has been another successful year for Nerolac.

Recently, Sahrukh khan has been roped as the brand ambassador of KNPL.

Machine of Kansai Nerolac Paints Ltd.

Nerolac Color Scapes
Nerolac ColorScapes is an integrated colour matching system,employing state-of-the-art
technology that revolutionises the business of paint selling. Not to be mistaken for just a
colour dispensing machine, the system is simply the global method of buying and selling
paint, that the modern customer prefers. In India, as time has moved on, you our valued
customers have become more discerning and concerned.. Under the circumstances, it is
absolutely vital that we are equipped to deliver what the modern customer needs. With
Nerolac ColorScapes, a virtual paint factory at your finger tips, be rest assured that
once you enter a ColorScapes shop, you will be guaranteed of being a satisfied
customer. In fact, with Nerolac ColorScapes paint buying becomes an all-new, exciting and
highly rewarding experience.

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BENEFITS to the customer:
- One has a wide choice of over 1305 hues to choose from, that will be delivered accurately,
consistently and instantly in several products.
- One can see how your rooms/home will exactly look like before you have actually painted
your homes using the visualiser system.
- An interactive software package enables you to see on the computer screen an interior or a
room/exterior of a home and change the shades of the walls, the doors, the windows and the
exteriors instantly.
- One is provided with tips on which paint to use on which surface and how much will it cost
through the product profile software.
- One can also glance through designer's scheme (combinations) shown on the translites as
well as the Slide Show module in the software.
- The Colour palette in-shop shade display unit along with the ready-to-use combinations
helps one to ensure that he choose the exact shade as per your requirements.
- One can also get take-away shade strips with recommended combinations of matching and
complementary shades, to help him in shade selection.
9.3 Nerolac Spring Summer Collection 2008Kansai Nerolac Paints Ltd, India's leading
paint manufacturing company, has announced the launch of their new tool "Nerolac Spring
Summer Collection '08" in association with leading fashion designer Manish Malhotra.

This collection follows the worldwide trend of deriving colour from fashion. This collection
brings a close symbiosis of fashion and colour. Various industries like apparels, leather,
accessories, jewellery, automobiles, etc adopt this trend and paint Industry is one of them.

"RENEWAL" is the Central Theme of this collection. This collection aims to break the
mundane chores of a common man by portraying how fashion can be used to accentuate &
beautify his house. Colors in homes reflect a lot about the individualistic style & personality
of a person. This collection showcases the striking resemblance between fashion elements
and walls and how the optimum use of all these elements could beautify & enhance the
overall décor of your home. In short it is all about “HOME FASHION”.

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Sales Promotions:
Schemes:
In order to increase the sales volume the company also provide various schemes for the
dealers and also for the painters. One of such schemes was “Rishta Rangon Ke Sang” which
was specially for the painters. These schemes are point based which varies from product to
product. The dealers and the painters are provided with various gift items depending upon the
point they earn.
Web facilities:
Updated informations are also provided through company website www.nerolacpaints .com .
Apart from the various company facts provided on the internet there are also some facilities
for the customer like:
• Cost calculator.
• Nearest Kansai Nerolac Paint Dealers.
• Shade card and various color combinations.
• Facility to view imagery painted walls on the customer’s choice.
• Colour helpline
• vastu
Talent hunt events:
Kansai Nerolac Style Icon Awards 07’ Kansai Nerolac, India’s premier paint company has
instituted the Kansai Nerolac Style Icon Awards 07 for excellence in the Architecture and
Interior Design. This award is to log the development and modern accomplishments in
Architecture and Interior design and to celebrate excellence in completed work of design and
infrastructure. An annual celebration, Kansai Nerolac Style Icon Awards 07 is recognized
platform for architects and interior designers, within the industry.There are two categories;
one being the amateurs from Architectural and Interior Design Colleges and the other group
being professionals with some work to showcase. The Awards was presented at a Grand
finale event on the 13th October, 2007 in Mumbai and the event was later telecasted on
CNBC.

“Nerolac Assured Paint Service”

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The Nerolac Assured Paint Service is 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 while the Nerolac team takes over the entire paint job right from
sourcing to execution.

DISTRIBUTION CHANNEL

Nerolac’s 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 more than over
11,000 dealers. Kansai Nerolac have eight Sales Divisions and each division has depots to
take care of local needs. In all it has 66 depotsand many more being added each year.

All this ensures complete reach in India including rural and up country markets.

SWOT ANALYSIS

STRENGTHS OF THE ORGANIZATION

1. Most of the counters of Kansai Nerolac Paints in Ranchi are Machine equipped, hence,
are high on technology compared to that of the competitors and also they more trained &
knowledgeable.
2. Sophisticated testing and analytical instruments, colour Computers and accelerated
weathering equipment are used for developing and standardizing products to maintain
optimum quality.
3. Building upon its foundation of experience and expertise, Kansai Nerolac constantly
upgrades the knowledge and skills of its people, to stay abreast of the latest technological
development and management practices.
4. Kansai Nerolac Paints provide quality products and better services for the Consumers
compare to other company’s products.
5. Company staffs at Ranchi are very friendly and are good enough to build mutual
understanding and a relation of faith with the dealers of the company. This helps them in
convincing the dealers.
6. The schemes of the company for the dealers and also the margin provided by the company
is liked by the paint dealers compared to that of other company.

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7. 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 more
satisfaction to the customers than any other product. Moreover the exterior emulsion namely
Excel total is doing very well in the mark8. 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.
9. 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.

WEAKNESSES:
1. The advertisement portion of Kansai Nerolac Paints Ltd. is not so much strong as it is
expected in the Paint industry to stay in the competitive market.
2. Company does not often call painter’s meet and hence unable to convince the painters on
whom the end user relies the most.
3. There is absence of dealer’s meet also.
4. There are many dealers of Kansai Nerolac near each other in the same place but the far
away places of the town are ignored.
5. Accounting problems are predominantly present.
6. Schemes usually runs late, even the winners haven’t got the prize yet.
7.Some dealers complain about the irregular visit of company’s representative.
8. The paint industry is not capital intensive.
9. It has a high entry barrier in the form of distribution network and product branding.
10. Fresh capacity is likely to come from existing players only.

11. 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.

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

13.Offering of less institutional discount as compared to other companies

OPPORTUNITIES:

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1. As Ranchi is the capital of Jharkhand, there are ample of opportunities for the company.
Many constructions works are going on and many more yet to come..
2. There are many institutions like hospitals, schools, hotels where the company can
approach to get the business.
3. India has one of the lowest per capita consumption of paints in the world. There is
therefore a great growth potential.
4. In the recent past, the growth in the paint industry has tended to be higher than the
growth rate of the overall economy.
5. 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.
6. The industry is likely to remain intensely competitive with corresponding pressures on
margin of profit.
7. 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.
8. The Government thrust on encouraging housing activity, the centers of housing activity
are likely 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:
1. 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 petroleum products, principal ingredients in paints, are
determined by world demand and supply for the materials.
2. Absence of depot of Kansai Nerolac in Ranchi, where depot of all other paint companies
are present may lead to decrease in order volume and the dealers may prefer other brands.
3 .The local players also make there huge presence in the market and provide product at
relatively low price and with high margin.

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 MAJOR COMPETITORS

1 Asian Paints Ltd.

Asian Paints is India's largest and Asia's third largest paint company today, with a turnover of
Rs 44.04 billion (around USD 1.1 billion). The company has an enviable reputation in the
corporate world for professionalism, fast track growth and building shareholder equity. Asian
Paints operates in 20 countries and has 28 paint manufacturing facilities in the world
servicing consumers in over 65 countries. Besides Asian Paints, the group operates around
the world through its subsidiaries, Berger International Limited, Apco Coatings, SCIB Paints
and Taubmans.
Corporate Information

Asian Paints is a fully integrated paints company that employs the most advanced and
prudent principles for its working.

Group Subsidiaries

Currently, South Asia, South East Asia, South Pacific, Middle East & Caribbean region are
covered through five corporate brands viz. Asian Paints, Berger International, SCIB Paints,
APCO Coatings & Taubmans respective

2 BERGER PAINTS LTD.

Berger Paint is the culmination of over seven-decade process of evolution and growth that
began in 1923. Its growth has been closely linked with the business and industrial
development of modern India. BERGER'S performance is anchored today in a wide variety
of Decorative and Industrial paints which continue to gain an increasing share of the highly
competitive Indian

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paint market. 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 market.
The Country's third largest paint manufacturer and the second largest decorative paint player,
Berger is headquartered in Calcutta and services the market through a distribution network
comprising of 75 stock points and 12,000+ paint retailers.
Berger Paints continues to be inspired by the creation and innovation of Mr. Lewis Berger,
who through his marvelous shades, had offered people a chance to transform their homes
through the power of imagination. At Berger we believe in taking paints to the level of fine
art. Enriched by the imagination of Lewis Berger since 1760.

3 ICI Paint Ltd.

ICI India manufactures and markets paints, speciality chemicals, adhesives & starch.
With an employee strength of about 900, ICI India's manufacturing sites, business and sales
offices and distribution network span the length and breadth of the country.ICI's Paints
business in India owes its success to innovative technology and strong brands such as Dulux
and Duco.
In the decoratives business, ICI's exterior paints portfolio exhibited a strong performance.
Commendable growth was registered by its exterior emulsion brands - Weathershield and
Supercote. ICI’s retail tinting package 'Colour Solutions' 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 Glos

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Table no:3.4
Comparison of different paint brands on the basis of Quality
Type/Grading KNPL AP BP ICI
INTERIOR
EMULSION
GRADE-1 Impression 24 Royal Luxol silk Velvet touch
carat
GRADE-2 Beauty Rangoli easy Dulux 3in 1
flexicoat clean
GRADE-3 Nerolac Asian Rangoli Dulux acrylic
Acrylic premium fashion finish emulsion
emulsion acrylic
emulsion
GRADE-4 N Beauty Gold
GRADE-5 N Beauty Silky Tractor Bison super Supercoat
smooth emulsion emulsion
EXTERIOR
EMULSION
GRADE-1 Excel everlast
GRADE-2 Excel total Altima Weathercoat Weathershield
longlife Max
GRADE-3 Excel Apex Weathercoat Weathershield
allgaurd
GRADE-4 Suraksha
advance
GRADE-5 Suraksha Ace Supercoat Wall masta
plastic
DISTEMPER
GRADE-1 Beauty Tractor Bison Maxilite acrylic
premium acrylic distemper
acrylic distemper
distemper
GRADE-2 Goody Utsav acrylic Jadoo ICI Acrylic
synthetic distemper distemper
distemper
ENAMELS
GRADE-1 Impression hi Ultra luxury Onecoat 5 IN1
performance enamel
enamel
GRADE-2 Synthetic Apcolite Luxol Dulux gloss
enamel synthetic enamel
enamel
GRADE-3 Goody Utsav Jadoo Maxilite
synthetic

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 enamel

Chapter-4

AN EMPIRICAL STUDY
ON MARKET ANALYSIS
OF PAINT INDUSTRY VIS-
À-VIS KANSAI
NEROLAC PAINTS

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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 company’s 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 paint dealers and retailers of
various paint company in the city of Ranchi about the true potential of the market. Here I
had to collect data regarding the potential of the dealer, contribution of major companies such
as Asian paints, Berger Paints, ICI Paints and others in it, satisfaction level of the consumers,
complain (if any), promotional scheme are known or not, availability of products at dealers
etc. I had also visited retailers for the same and also noted the supplier of their inventory.
Moreover in the second stage of my training I was assigned the task to visit painters and
collect name, address and phone number for painter meet.

The main objective of the survey was to find out the present status and potential of
Ranchi market and also the position of Kansai Nerolac among the competitors. One more
thing we need to collect was the information about what kind of problems customers and
dealers are facing in procuring the products.

This information was really helpful for us to have an idea about the market share of the
company at Ranchi.

Field work Details:

Field work was done during the period of 1st Aug 2010 to 30th Aug 2010, which includes
visiting the dealers, retailers, etc and collecting the data.

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 Data Analysis
Plan:

The data
collected
through
questionnaires
were entered
into Microsoft
Excel and
analysis was
made in
Microsoft
Excel only.In
this survey I have gone to different shops like paint dealers of all the companies, paint
retailers, sanitary shops, ply centers and collected data from them. I visited 35 paint dealers &
retailers . It was a good sample size for a survey. The data collected from them has been
given below according to which I had analyzed the different possibilities and done
predictions about the future

Q. Which influences the most in taking the purchase decision about the paint brand?

SHOPKEEPER(DEALER) 11
PAINTER 11
SELF CHOICE 7

Interpretation: The painters recommendation regarding the paint brand constitute the
major role in purchase decisions so company should target them inorder to boost the sales
figure. Awareness about the product features and benefits should be carried on war scale.
The dealers and the shopkeepers the next target, through discounts and offers they should be
motivated to sell the particular brand.

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Q. Rank the following brands with respect to your preference?

N.IMPRESSION 12
N.EXCEL 11
N.ENAMEL 8
N.SURAKSHA 4
N-BEAUTY 4
N-B.GOLD 6
AP-ACE 19
AP-APEX 20
AP-ENAMEL 16
AP-ROYALE 2
AP-UTSAV 6
BP-EC 3
ICI-WS 6
ICI-DUCO 2

Interpretation: Apex and the Ace are the brands of Asian paints which rules the paint
market. The Impression from Nerolac stands at the third position. The gap between the first
and the position can be narrowed down by proper promotion tools and incentive plans.

List of the ideas are:

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 • 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)

Planning of Promotional activities

Rickshaw Rally in different regions

Route Decided for rally:

• Kadru bypass- ashok nagar- harmu road

• Purulia road-Circular road
• Ranchi Main road
• Chutia
• Church road- Lower bazaar
• Upper bazaar
• Kutchery –jail road -lalpur-dangratoli- kantatoli – bahubazar- sujata chowk
• HB road

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SITE FOR PUTTING BOARDS/HOARDINGS

IMPORTANT SITES
A. HINOO:- a. Near linkage
b.Hinoo bridge
B. DORANDA:- a. form center ,bus stop
b.near Mecon gate,
c.opp hotel Yuvraj
C.RAJENDRA CHOWK(overbridge):-a. bus stop near fire brigade headquarter i.e on
both sides
D.OVER BRIDGE:-a. Shannu beauty parlour(near )
b. near Uppal complex
E SERAM TOLI CHOWK:-
F.JAIL CHOWK
H.NEAR WOMEN’S COLLEGE ART’S BLOCK
I. OPPOSITE GOSSNER COLLEGE (Bus stop)

BEAUTIFICATION OF BUS STAND i.e putting gates ,boards,hoardings

a. Government bus stand ,station road ,ranchi station
b. Khadgaraha bus stand

I.BIRSA CHOWK -KHUTI ROAD:- a. near hanuman temple

b. above maa hotel
J.HINOO CHOWK:-opp to Kamala sweet
K.BAHU BAZAR CHOWK:-
L.KANTA TOLI CHOWK:-near Hindustan store
M. OPP TO HARIOM TOWER:-
N.PANCHAVATI PLAZA:-
O.GOPAL COMPLEX :-
sP.SARJANA CHOWK:-
Q.MAIN ROAD :-near Hanuman temple
R.SAINIK MARKET:-
S. AT ARGORA CHOWK

AT SOME CINEMA HALLS

1.SUJATA
2.PLAZA
3.MEENAKASHI
4.EYELEX

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DEVELOPING AND BEAUTIFYING PAINTER NAKKAS i.e painters assemble in
morning for work at this place:-
West market road,bazaar tand i e near churuwala upper bazaar RANCHIs

Chapter-5

SUMMARY OF FINDINGS,
SUGGESTIONS &CONCLUSION

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OBSERVATIONS AND FINDINGS
The Indian Paint industry can be divided as:

• The organized sector comprising of large and medium size units

• The unorganized or the small scale sector
The organized sector has a market share of 60%, valued at 23.4 bn. This is in contrast to the
55% share that the sector commanded a few years back. There are around 25 units in this
segment. The unorganized sector comprises of around 2,000 units with a combined market
share of around 40%. Major companies in this segment include Asian Paints, Goodlass
Nerolac, Berger Paints, Shalimar Paints, and Rajdoot Paints. High excise duties, low
technology and low capital costs for production led to the incidence of a high number of units
in the small scale sector. However, since 1992 the government has been consistently lowering
duties from 40.5% in 1992 to around 16% currently. This has led to lowering of price
differential between the organized and unorganized sector. Moreover the paints sector was
also allowed to claim MODVAT credit on petro-based products, thus lowering the excise
incidence further.
Performance of various paint companies in the Indian subcontinent
Table no:5.1
Name of the Company Market
Share (%)
Berger
17
Asian 33
J&N 6
ICI 17
Shalimar 4
KNPL 15

Others
8

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The Pie graph fig no:5.1 shows the market share of Paint companies in the organized market
segment.

Market Share(%)

Shalimar
Others
4%
8% Asian Paints
Asian Paints
J&N KNPL
33%
6%
Berger
ICI
ICI
J& N
17%
Shalimar
Berger KNPL
Others
17% 15%

Demand of paint products in India may be presented as:

Fig no :5.2

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 Facts & statistics

 Ace and Apex are the highest selling paint brand

 Maximum dealer keep according to customer’s demand

 36% colour machines belong to ASIAN PAINT.

 Asian paint is sold at 67% of counters in Ranchi.

 61% dealers are fully satisfied with their respective paint company

 More than 50% dealer quotes non availability of nerolac paint as a reason for

not dealing with KNPL

 More amount of interior paints are sold from counters than exterior .

 Every dealer deals in both interior as well as exterior paints i.e premium &

economy

 80% dealers are having painter /contractors.

 58% dealers are having colour machines.

 Asian paints dealer holds maximum number of AP machines.

 Maximum dealer expects hign margin & rebate from the company.

 Most of the sign & glow painter works with apcolite(AP).

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 SUGGESTATIONS

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 dealer’s 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.

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• 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.
• 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.

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 CONCLUSION

From the data analysis and survey conducted by me I found that Ranchi, as the capital of
Jharkhand, is a centre of development, construction and industries, and thus provides ample
opportunities for the paint sector to grow. Though Kansai Nerolac Paints Ltd.is the 2 nd leader
in paint industry in the Indian subcontinent, but here in Ranchi it needs improvement. In
Ranchi town it is at 3rd position. Its chief competitors are Asian paints, Berger paints and ICI
paints. Also the constructions are shifting towards the outskirts of the town, so it become
necessary to have dealers in the far flung areas.
So far as dealers are concerned, they are all profit driven and they claim that they can sell
any brand,as customers depend on their consent we should beware of such people. Most of
them carry two or more brands, and push to customer the one having better schemes and easy
availability. Some of customers stick on their own choice of the brand but majority of them
relies on the painters and the paint sellers because paint is not a product of daily use, and
according to them these people must have better knowledge regarding paints.
Kansai Nerolac Paints Limited has a good number of dealers in the town and are in almost
each area but their order quantity for KNPL’s product lack behind that of other brands. Most
of them says that this is happening due to absence of company godown in the region and due
to less demand. As far as the institutional and project business is concerned Nerolac has to
work a lot to increase its share in the institutions. As per our observation we came to the
conclusion that there should be continuous approach and backup by the company executives
so as to increase the institutional sale.
What we have observed that the demand of a particular brand in the paint segment is directly
proportional to its availability and display at the dealer’s counter, and also its presence at the
dealer’s, painter’s and customer’s word of mouth.

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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
 Household who paint their house once in every two years
 Commercial buildings who paint their shops and buildings once in every five year.
 Hotels who paint their room with interior paints twice in every year.
 Upcoming shopping complexes, malls and residential apartments
Company should try to make the Consumers loyal so that they should not switch to other
Company’s brand by giving special offers time to time as the rate of brand switch is more in
this part of the country.

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