Building Brand Equity Essay

http://www. sb. iub. edu. bd/internship/spring2006/0110234. pdf Internship Report Spring 2006 A research to explore customer satisfaction level of customer in context of Berger Paints Color Bank, Bangladesh. Submitted by, Md Assad Kibria (ID #0110234) Submitted to, Mr. Sohel Islam School of Business Independent University, Bangladesh April 30th, 2006. Dated: April 30th, 2006 Mr. Sohel Islam Internship Adviser School of Business, Independent University, Bangladesh. Baridhara, Dhaka. Subject: Submission of internship report Dear Mr.

Sohel, I, being advised to prepare the internship report on the level of customer satisfaction of Berger Color Bank customers for the successful completion of my Internship. As was advised, I have successfully completed my report on “Customers satisfaction level analysis of Berger Color Bank users” It gives me immense pleasure to tell you that working on this internship report has given me a wide range of exposure. To prepare this report, I have faced extensive one to one interviews with professionals, customers and dealer.

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It has taught me the value of patience, and has given me a higher insight on the level of communication in the practical world. This report basically gives an overview of the level of customer satisfaction of the Color Bank users and how different influencing parties can hamper the level of customer satisfaction. I also had to make recommendation as to how the existing level of satisfaction could be improved. As this was an actual company project, research was done on an extensive basis. It will be a great honor for me if you require me to explain any sort of queries. Yours Sincerely, Mr. Md. Assad Kibria ID # 0110234 ACKNOWLEDGEMENTS

Preparing this report was both exciting and hard work at the same time, it is for the first time that I had a real life experience working on an actual company project. I would like to express my gratitude to Mr. Sohel Islam, internship supervisor, School of Business, Independent University, Bangladesh for providing me with the proper guidance and support. I would also like to thank Mr. Tanvir Ahmad, Assistant Marketing Manager, Berger Paints Bangladesh Ltd. , for giving me time in his busy schedule, for providing me information that was needed to complete the report, and to properly guide me throughout my internship period.

EXECUTIVE SUMMARY Satisfying customers are the only way to stay competitive in today’s marketplace. The balancing act between what customers want and what the company can provide must be optimized in order to maximize company’s long-term profits. Berger Paints has done numerous researches to understand the level of customer satisfaction. They are already in a good position in the consumer’s mind but understanding the customer’s satisfaction level, will help the company to exceed the present level of customer satisfaction. However, no such research has been done to understand the level of customer satisfaction level of Color Bank user.

This study investigates the level of customer satisfaction of Color Bank users, and what are the different influencing parties (architects, developers, painters and dealers). On assessing the level of customer satisfaction, what marketing tools, like promotional efforts and other marketing efforts, are necessary to improve the customer satisfaction level will be given as recommendation by the researcher. This study is based on primary data, as no such previous research has been done to understand the level of customer satisfaction of Color Bank users.

The nature of this study was a qualitative explorative research, and information was gathered through extensive one-to-one interviews with respondents. The researcher covered the geographical base of Dhaka city, and samples were selected on a non-probabilistic quota sampling method. Upon completion of the research analysis, the researchers understood the level of customer satisfaction of the customers. The level of satisfaction varied from 60% to 100%. All respondents were highly satisfied with the product quality of Berger Color Bank. However, they did show concern with the services.

They feel that a hotline should be there to give 24 hours complete support for paint solutions. Also, they were unhappy with the unavailability of shade cards at the dealers’ outlets. The researcher also found that the dealers have tremendous effect on customers. If the dealers are happy, then they would give all positive efforts in making the customers more satisfied. The dealers were unhappy with the financial assistance provided by Berger Color Bank. Professionals like architects and developers also play a major role in influencing customers.

The research analysis suggests that the architects and developers would be happier if Berger could maintain proper liaison with them. At the moment, the liaison between Berger and the professionals are good, but their main requirement is to have access to soft copies of the shade card. Painters are happy with the product quality and coverage of Color Bank. However, they did show concern with the quality of Luxury Silk. They require no assistance from Berger, they are extremely satisfied. Table of Contents Page No. Acknowledgement i Executive Summary ii Chapter 1: Introduction 1. 1 Review of related literature 1 . 2 Background of the company 3 1. 2. 1 Berger Paints: An overview 3 1. 2. 2 Berger Paints: At a glance 4 1. 2. 3 Area of operation 5 1. 2. 4 Manpower structure 6 1. 2. 5 Paint Industry analysis 7 1. 2. 6 Distribution coverage analysis 16 1. 2. 7 Sales trend 17 1. 3 Color Bank at glance 23 1. 4 Competitor Analysis 24 1. 5 Problem Definition 28 1. 6 Research objective 29 1. 6. 1 Broad Objective 29 1. 6. 2 Specific Objective 29 1. 7 Scope of the report 30 1. 7. 1 Geographical scope 30 1. 7. 2 Technical scope 31 1. 8 Limitation 31 Chapter 2: Methodology 2. 1 Research design 32 2. 1. 1 Type of research 32 2. . 2 Nature of research 32 2. 2 Research structure 33 2. 2. 1 Type of data 33 2. 2. 2 Data collection procedure 33 2. 3 Sampling plan 34 2. 3. 1 Target population 34 2. 3. 2 Sampling frame 34 2. 3. 3 Sampling unit 34 2. 3. 4 Sampling technique 35 2. 3. 5 Sampling size 35 2. 4 Sample characteristics 39 2. 5 Pre-tests 39 Chapter 3: Analysis 3. 1 Dealers 40 3. 1. 1 Findings and analysis 41 3. 1. 2 Summary of findings 47 3. 2 Customers 49 3. 2. 1 Findings and analysis 49 3. 2. 2 Cross-tabulations 57 3. 2. 3 Summary of findings 62 3. 3 Architects 63 3. 3. 1 Findings and analysis 64 3. 3. 2 Cross-tabulations 71 . 3. 3 Summary of findings 73 3. 4 Developers 74 3. 4. 1 General Analysis 74 3. 5 Painters 80 Recommendation 81 Reference Appendix Research questions Calculation List of figures and tables Page No. Chapter 1 Table 1: Market growth trend analysis 8 Table 2: Category wise paint market size in 2004 9 Table 3: Projected Market Size 2005 10 Table 4: Category contribution by Volume & Value 11 Table 5: Market Share of Gloss Coatings 13 Table 6: Market Share of Interior Emulsion 14 Table 7: Market Share of Exterior Emulsion 14 Table 8: Market Share of Distemper 15 Table 9: Market Share of Cement Coatings 16

Table 10: Distribution Coverage of Major companies 16 Figure 1: Geographical Market Size 9 Figure 2: segments of Paint market 10 Figure 3: Market share of different companies 12 Figure 4: Sales Trend Analysis 17 Figure 5: Channel level 19 Figure 6: Michael Porter’s competitive forces analysis 24 Chapter 3 Table 1: Overall view of Dealers 40 Table 2: Cross tabulation table for Dealer’s satisfaction level on Color Bank product & service and Dealer’s inspiration about Color Bank. 43 Table 3: Cross tabulation table for Dealer’s satisfaction level on CB product & service and Dealer’s expectation on Color Bank shades 44

Table 4: Cross tabulation table for Dealer’s satisfaction level on CB product & service and Dealer’s satisfaction on Berger Paints employees behavior 45 Table 5: Cross tabulation table for Customers satisfaction level on product and services & Satisfaction on Color Bank products quality 57 Table 6: Cross tabulation table for Customer satisfaction level & satisfaction on Color Bank product and service 58 Table 7: Cross tabulation table for Customer satisfaction level & satisfaction on durability and coverage of Color Bank product compared to others 60 Table 8: Cross tabulation table for Customer satisfaction evel & satisfaction on durability and coverage of Color Bank product compared to others is high so it is cost effective. 60 Table 9: Cross tabulation table for Customer satisfaction level & satisfaction on the finishing of the painting job 61 Table 10: Overall view of Architects’ viewpoint of Color Bank 63 Table 11: Cross tabulation table for Architects satisfaction level & satisfaction on the Color Bank shades 71 Table 12: Cross tabulation table for Architects satisfaction level on CB product & service and their satisfaction about Berger PR if product quality is not up to the mark 72

Table 13: Developers satisfaction Regarding information 76 Table 14: Developers evaluation about Berger CB service 77 Table 15: Developers satisfaction regarding product 77 Table 16: Cross tabulation table for Developer’s satisfaction level on CB product & service and Developer’s Inspiration about Color Bank. 78 Table 17: Cross tabulation table for Developer’s satisfaction level on CB product & service and Developer’s satisfaction about Berger PR 79 Table 18: Cross tabulation table for Developer’s satisfaction level & satisfaction on the Color Bank shades 79 Figure 1: Dealers inspiration to Deal Color Bank 40

Figure 2: Dealer satisfaction on Color Bank 41 Figure 3: Commonly purchased brand 42 Figure 4: Dealers overall evaluation 46 Figure 5: Overall customer satisfaction level 50 Figure 6: Customers perception of Color Bank 51 Figure 7: Identifying frequency of use 52 Figure 8: Source of information for clients 53 Figure 9: Whether sources give desired information 54 Figure 10: Ways to sole customers queries 55 Figure 11: Satisfaction with Color Bank process 56 Figure 12: Berger and professionals relation 67 Figure 13: Color Bank gives desired shade 68 Figure 14: Durability of Color Bank products 69

Figure 15: Cost effectiveness of Color Bank 70 Chapter 1 Introduction 1. 1 REVIEW OF RELATED LITERATURE 1. 1. 1 Customer Satisfaction: “Everyone knows what satisfaction is, until asked to give a definition. Then, it seems, nobody knows. ” This quote from Richard L. Oliver (1977), respected expert and long time writer and researcher on the topic of customer satisfaction, expresses the challenge of defining this most basic of customer concept. Building from previous definitions, Oliver offers his own formal definition: Satisfaction is the consumer’s fulfillment response.

It is a judgment that a product or service feature, or the product or service itself, provides a pleasurable level of consumption-related fulfillment. The word satisfaction first appeared in English during the thirteenth century. The word satisfaction itself is derived from the Latin satis (meaning enough) and the Latin ending – faction (from the Latin facere – to do/make). Early usage centered on satisfaction being some sort of release from wrong doing. Later citing of the word emphasis satisfaction as a “release from uncertainty” (The Oxford Library of Words and Phrases, 1993).

Modern usage of the word has tended to be much broader, and satisfaction is clearly related to other words such as satisfactory (adequate), satisfy (make pleased or contented) and satiation (enough). The difficulty faced when trying to define any word is that the meaning often depends on the context in which the word is used. In a marketing context, satisfaction is used to have a more “specific” meaning. It appears that there are two basic approaches adopted in attempting to define the concept of customer satisfaction.

Satisfaction can be viewed as an outcome of a consumption activity or experience; however, it is also represented as a process. Currently, the most widely adopted description of customer satisfaction is that of a process; an evaluation between what was received and what was expected (Oliver, 1977, 1981; Olson and Dover, 1979; Tse and Wilton, 1988). By looking at satisfaction as a process, these definitions concentrate on the antecedents to satisfaction rather than satisfaction itself. Consequently, much research effort has been directed at understanding the cognitive processes involved in satisfaction evaluations.

This strand of theory appears to have origins in discrepancy theory (Porter, 1961) and a number of authors have, over the years, used some form of comparison to model satisfaction. Early contributions include Contrast Theory (Cardozo, 1965; Howard and Sheth, 1969), which supposed that consumers would exaggerate any contrasts between expectations and product evaluations. This was developed into assimilation-contrast theory (Anderson, 1973). Many studies support the occurrence of assimilation (Olshavsky and Miller, 1972; Olson and Dover, 1979).

A further point concerns expectations that are defined differently in the satisfaction and quality literature. In the satisfaction literature “expectations reflect anticipated performance” (Churchill and Suprenant, 1982, p. 492) made by the customer about the levels of performance during a transaction. On the other hand, in the service quality literature, expectations are conceptualized as a normative standard of future wants (Boulding, Kalra, Staelin & Zeithaml, 1993). These normative or ideal standards represent enduring wants and needs that remain unaffected by the full range of marketing and competitive factors.

Normative expectations are therefore more stable and can be thought of as representing the service the market oriented provider must constantly strive to offer (Zeithaml, Berry & Parasurama, 1993). Assuming that the customer is capable of evaluating the service performance, the result is compared to expectation prior to purchase or consumption (Oliver, 1980). In the past, corporation did not pay much attention to customer satisfaction but were focused more on attracting new customers to expand their market share.

Now, due to lower sales resulting from product maturity, corporations are turning around to stabilizing their existing customers to ensure their market share (Dhabolkar & Thorpe, 1994). Thus the concept of customer satisfaction is under further scrutiny. For the current study, the definition put forward by Oliver will be the construct, as it is the most appropriate for the selected study. 1. 2 BACKGROUND OF THE COMPANY 1. 2. 1 Berger Paints Bangladesh Ltd: An Overview Berger, the market leader in the Bangladesh paint market, is one of the oldest names in the global paint industry.

The company is operating in the paint industry for almost two centuries. It has its origin in the year of 1706 and from then on the company is operating with strong adherence to quality and social responsibility. Initially, Lewis Berger, a German national, founded dye & pigment making business in England. Lewis Berger & Sons Limited grew rapidly with a strong reputation for innovation and entrepreneurship culminating in perfecting the process of making Prussian Blue, a deep blue dye, a color widely used for many European armies’ uniform.

Production of dyes & pigments evolved into production of paints & coatings, which till today, remains the core business of Berger. Berger grew rapidly by establishing branches all over the world and through merging with other leading paint & coating companies. Today, • Berger is one of the leading companies in the global paint industry • Berger offers all kinds of painting solutions in decorative, industrial or marine segment for both decorative and protective purpose Berger Paints started its sailing into the sea of Bangladesh from pre-liberation era, to be precise in 1950.

The main business flourished in the post liberation phase. In Bangladesh the major milestones of Berger Paints are given below: 1950 – Started operation in Bangladesh by importing Paint from Berger UK 1970 – Establishment of Chittagong Factory 1980 – Named as Berger Paints (BD) Ltd. from Jenson & Nicholson (J&N) 1991 – BMRE in Chittagong Factory 1995 – Establishment of Double Tight Can Manufacturing Plant 1999 – Establishment of Most Modern Sate-of-the-Art Paint Production Plant in Dhaka 2002 – Construction of own building for the Corporate Office in Dhaka 2004 – Establishment of Powder Coating Plant . 2. 2 Berger Paints Bangladesh Ltd: At a Glance • Own Corporate Office located in Dhaka • 2 Factories at Dhaka and Chittagong • 7 strategically located Sales Offices throughout the whole country. The locations of the Sales Offices are shown in a map attached in the annexure • A wide distribution channel reaches the whole country with a network of almost 1000 dealers Vision and Mission of the company The vision and mission of Berger Paints Bangladesh Ltd. (BPBL) is very transparent and tangible. Berger emphasize highly on the ethical commitment to produce benchmark quality product.

The vision and mission statement of the company is: Vision “We shall remain as the benchmark in the Paint industry by: being an innovative and technology driven Company consistently delivering world-class products ensuring best consumer satisfaction through continuous value added services provided by highly professional and committed team. ” Mission “We shall increase our turnover by 100% in the next five years. We shall remain socially committed ethical Company. ” 1. 2. 3 Area of Operation Berger Paints operates in three broad segments of the paint industry.

Decorative Paint • The objective is to beautify the surfaces with protection from corrosion and erosion • This business category mainly targets household segment • Products are being offered to the consumers through a dealer network • Products fulfill the aesthetic value of the consumers • Major revenue earning business area of BPBL Industrial • Tailor made products to cater to the specific needs of customers • Products give protection to the surfaces in extreme situations like severe hazardous environment, high temperature, movement of heavy materials and machinery etc. Direct marketing approach is being used to promote the Industrial Coatings • Main customer groups: Garments Factories, Chemical Plants, Fertilizer Manufacturing Plants, Consumer Durable Manufacturing Plants etc. Marine • Products are being offered mainly through Direct marketing approach. • Dock Yards, Bangladesh Navy, Passenger Ships are the main user groups. • Market is mostly concentrated in Dhaka and Chittagong. 1. 2. 4 Manpower Structure It is consisted of more than 300 employees of whom about 160 are general workers and the rest are White Collar employees.

These employees are working in different factories and depots of the company. The positional hierarchy of the company is as follows: 1. Managing Director 2. Director 3. General Manager (Executive -1) 4. Executive -2 5. Senior Manager 6. Manager 7. Assistant Manager 8. Officer (i, ii, iii, iv) / Management Trainee 1. 2. 5 Paint Industry Analysis National Paint Market Bangladesh paint market had been experiencing a good growth of 8-10% per annum consistently in the late 90s mainly because of a boom in real estate development which now seems to have reached a saturation point.

Since 1995, the growth in our paint market has been declining to an estimated rate of 3-4% p. a. and the trend reveals a point of no growth-foreseen for 2003, there should have a precautionary signal for further newer investment in this sector. According to the cement manufacturers of Bangladesh, the cement market is also growing at around 4% p. a. , which correlates quite well with our paint market growth data. A market growth trend analysis for Bangladesh during 1995-2001 is furnished below: Year 1995 1996 1997 1998 1999 2000 2001 Volume in ‘000 ltrs 17940 19374 21311 22590 24850 27086 28170 Growth % 11% 8% 10% 6% 10% 9% 4%

Table 1: Market growth trend analysis The limited growth up to now in industrialization and per capita income in Bangladesh has restricted the size of the paint market, which is currently at around Tk. 350-400 crores. However a good number of local paint manufacturing companies (40 organized and at least 50 more in the informal sector) have been operating in this small market. Quite a few of these companies are producing paints of internationally acceptable quality and very importantly, the installed single shift production capacity of the local paint companies is double the present local market demand.

The paint market is still mostly concentrated in the urban areas naturally because the number of constructions and surface areas are in huge number in the urban side. Urban side contributes almost 80% of the national paint market. But companies are trying to penetrate the semi urban and rural market through the economy paints. Contribution of Urban, Semi-Urban and Rural Market in 2004 is shown in the following figure: Figure 1 : Geographical Market Size The paint industry can be broadly categorized into four segments: Decorative, Industrial, Marine and Automotive paints.

Industrial paints are basically specially produced paints, which are used in two ways. Industrial paint is being used in some industries as the raw material who are the regular consumer of such paints. The segment uses such paint for the protective and maintenance purpose. Marine paints are produced specially for the river and sea going vessels and the automotive paints are being used in the automobile sector. All the rest fall in the decorative category. It covers all the paints for the exterior and the interior surfaces of plaster, metal and wood.

This is the biggest segment of the paint industry. The category wise existing market condition is given in the following table: Category Value in Crore (BDT) Value in Million (US $) Volume in Million Glns Decorative 325-335 54. 20-55. 80 8. 0-8. 5 Industrial 38-40 6. 33-6. 70 0. 94-1. 0 Marine 19-20 3. 20-3. 33 0. 47-0. 50 Total 382-395 63. 70-65. 80 9. 40-10. 00 Table 2: Category wise paint market size in 2004 0% 10% 20% 30% 40% 50% 60% 70% 80% Urban Semi urban Rural The Table shows that decorative paint segment is enjoying almost 81% of the market.

The rest is being divided among all the others. It means that still decorative is the main segment for the paint companies to operate successfully. The second significant segment is the Industrial segment. But the marine segment is having growth now a days. The following figure shows the segmentations of total paint market on the basis of the value in Bangladesh. Figure 2: Segments of Paint market The projected broad category wise market size for 2005 is as follows: Table 3: Projected Market Size 2005 The Table shows that Decorative segment is projected to enjoy the highest growth of 8. 5% from 2004. The Marine segment is also projected as a significant segment from the growth perspective. In this sector the projected growth is almost 8. 51%. The Segments Contribution Decorative 0. 82 Industrial 0. 10 Marine 0. 05 Automotive 0. 03 82% 10% 5% 3% Decorative Industrial Marine Automotive Category Value in Crore (Tk) Value in Million US $ Volume in Million Glns Volume in Metric Tons Decorative 354-365 58. 03-59. 82 8. 7-9. 3 39,900-42,500 Industrial 41-44 6. 79-7. 14 1. 0-1. 15 4,586-5,050 Marine 21-22 3. 39-3. 57 0. 51-0. 55 2,340-2,450 Total 416-430 68. 21-70. 53 10. 2-11. 46,781-50,000 Industrial segment’s projected growth is around 6. 38%. The total growth of the paint market from 2004 to 2005 is 8. 51%. The decorative paint market can be categorized into three segments based on the ingredients used in the production process: solvent based paints, water based paints and cement paints. The solvent based category includes gloss coatings, varnishes, primers and others and the water based paint category includes distemper, interior as well as exterior emulsions. The detail category wise contribution of the major decorative paints in 2004 is given below:

Table 4: Category contribution by Volume & Value The Table shows that Gloss Coatings contribute almost half of the decorative paint contribution. The Distemper, Cement Coatings and interior emulsions are also contributing significantly. Category Category Contribution (Volume wise) Category Contribution (Value wise) Exterior Emulsion 1. 98% 3. 22% Interior Emulsion 13. 00% 16. 92% Distemper 19. 28% 13. 00% Gloss Coatings 42. 21% 52. 40% Cement Coating 14. 76% 7. 30% Aluminium Paint 1. 32% 1. 53% Gloss Primers 1. 49% 1. 55% Wall Primers 1. 76% 2. 26% Thinner 3. 7% 1. 67% Others 0. 23% 0. 15% Total 100. 00% 100. 00% Market Share Analysis At present Bangladesh paint industry has 6 companies who have significant market share. Berger Paints Bangladesh Ltd. is operating as the market leader and enjoying almost 45% of national paint market share. The nearest competitor is Sagar Chemical and Paint Industry Ltd. who resides far below the market leader in aspect of market share. The following Table shows the present market share of different companies in paint industry of Bangladesh: Figure 3: Market share of different companies

The Table shows that Sagar Chemical and Paint Industry Ltd, who are mostly known a Romana Paints manufacturer, enjoying a market share of 13. 6% and Elite Paint’s market share is 6. 8%. A very mentionable point about the national market share of different companies is, recently the market share of the local companies are declining Companies Market share BPBL 44. 7% Sagar Chemical & Paint Ind. Ltd. 13. 6% Elite 6. 8% Asian 4. 2% Pailac 5. 9% Roxy 4. 8% Moon Star Paint Chemical Ind. 3. 7% Others 16. 3% Total 100% Moon Star Paint Chemical Ind. BPBL Sagar Chemical & Paint Ind. Ltd. Elite Asian

Pailac Roxy Others whereas the market share of Berger Paints Bangladesh Ltd. is increasing. Added here, very recently a giant India based multinational paint company ‘ Asian Paints’ has entered into this market under joint venture investment with Confidence cement Inc Ltd. Another local company ‘Aqua’ has launched recently. Asian Paints’ market share in 2004 is 4. 2%. though the share is not very high but being new entrant their growth is significant. The market share of the major paint category are given below: Gloss Coatings Market share Gloss coating category paints are solvent based paints.

This is the major segment of the total paint industry. It contributes almost 42% of the total decorative paint. Here also the major player is the market leader of the paint industry Berger Paints Bangladesh Ltd. The market scenario of the gloss coatings is: Table 5: Market Share of Gloss Coatings The Table shows that BPBL is holding almost 25% gloss coating market share. The nearest contributor of BPBL is Sagar Chemical and Paint Industry Ltd. Their market 2003 (Jan-Dec) 2004 (Jan-Dec) Berger Paints Bangladesh Limited 23. 9 25. 0 1. 1 Sagar Chemical & Paint Industries Ltd 15. 4 14. 8 -0. 6 Elite Paint & Chemical Ind.

Limited 6. 2 7. 0 0. 8 Asian Paints 0. 8 2. 7 1. 9 Company Market Share Variance % share is 14. 8%. But their market share has declined from 2003. All other major player are enjoying higher market share than 2003. Interior Emulsion Market share The market scenario of the Interior Emulsion in 2004 is very contrasting. The market leader Berger Paints Bangladesh Ltd. is holding almost 60% of the total interior emulsion market. But BPBL lost 1. 2% market share in comparison to 2003. The following Table shows the share of the interior emulsion by major companies: Table 6: Market Share of Interior Emulsion

The nearest market share holder of the BPBL is Sagar Chemical & Paint Industry Ltd. Their brand Romana is enjoying higher market share than 2003. In 2004 their market share is 12. 1% and the growth is 3. 2%. Exterior Emulsion Market share The exterior emulsion market is similar to the interior emulsion market. In this segment of Paint the market leader BPBL is occupying almost 82% of the total market share. The following table shows the market share of 2004. 2003 (Jan-Dec) 2004 (Jan-Dc) Berger Paints Bangladesh Limited 61. 5 60. 3 -1. 2 Sagar Chemical & Paint Industries Ltd 8. 9 12. 1 3. 2

Elite Paint & Chemical Ind. Limited 8. 9 7. 9 -1. 0 Asian Paints 1. 6 6. 0 4. 4 Company Market Share Variance % 2003 (Jan-Dec) 2004 (Jan-Dec) Berger Paints Bangladesh Limited 75. 1 82. 2 7. 1 Sagar Chemical & Paint Industries Ltd 1. 1 1. 2 0. 1 Elite Paint & Chemical Ind. Limited 17. 0 6. 3 -10. 7 Asian Paints 1. 3 7. 4 6. 1 Company Market Share Variance % Table 7: Market Share of Exterior Emulsion The Table shows that BPBL is enjoying 7. 1% positive growth from 2003 to 2004 whereas Elite Paint lost 10. 7% of their market share. The domination of BPBL in this segment is very obvious. Distemper Market share

The Distemper market is reasonably more settled than other. Here no particular company is enjoying half of the market share. The market leader BPBL is enjoying almost 43% market share. Table 8: Market Share of Distemper The Table shows that the multi national companies are enjoying growth of the market share. The local companies are rather loosing their existing market share. Both Berger and Asian are enjoying almost 3. 5%growth than the previous year. 2003 (Jan-Dec) 2004 (Jan-Dec) Berger Paints Bangladesh Limited 39. 3 42. 9 3. 6 Sagar Chemical & Paint Industries Ltd 14. 2 12. 0 -2. 2 Elite Paint & Chemical Ind. Limited 7. 7. 8 0. 0 Asian Paints 2. 1 5. 6 3. 5 Company Market Share Variance % Cement Coatings Market share The market share of the cement coating is also dominated by the market leader. Berger is enjoying 63% of the total cement coating market share. The nearest market share holder is Snowcem Bangladesh Ltd. Their present market share is 16. 1%. The following Table is portraying the scenario of the cement coatings of Bangladesh: Table 9: Market Share of Cement Coatings The Table shows that the domination of the market leader has increased from year 2003 to 2004 whereas the local companies have lost their little market share. . 2. 6 Distribution Coverage Analysis – Major Companies The distribution reach of the company is set basically on the three broad categories: Urban, Semi Urban and Rural. The distribution reach is determined without considering In all the three categories Berger the market leader still maintaining more than 50% distribution coverage. The standing of the major companies on the basis of the distribution reach is given below: 2003 (Jan-Dec) 2004 (Jan-Dec) Berger Paints Bangladesh Limited 61. 9 63. 0 1. 1 Snow cem Bangladesh Ltd. 16. 5 16. 1 -0. 4 Sagar Chemical & Paint Industries Ltd 13. 2 12. 3 -0. Pailac Paint & Chemical Company (PVT) Ltd. 3. 2 3. 1 -0. 1 Asian Paints 1. 2 1. 4 0. 2 Company Market Share Variance % Urban Semi Urban Rural National Berger Paints Bangladesh Limited 65. 9 62. 4 54. 9 63. 2 Sagar Chemical & Paint Industries Ltd 56. 3 61. 8 56. 0 57. 2 Roxy Paints Limited 39. 6 40. 0 32. 1 38. 3 Pailac Paint & Chemical Company (PVT) Ltd. 33. 2 35. 2 37. 0 34. 2 Elite Paint & Chemical Ind Limited 37. 4 28. 5 15. 2 31. 6 Distribution Reach % Company Table 10: Distribution Coverage of Major companies The Table shows that Berger’s strength is in the urban and the semi urban areas.

In these parts of the markets Berger reaches almost 35% of the outlets whereas in rural part of the market they can improve their reach in great extent. In rural part Berger is yet to explore the 45% of the outlet. Other than Sagar Chemical & Paint Industry all the local paint companies are relatively strong in the semi urban and rural areas. 1. 2. 7 Sales Trend The sales trend of six years till 2004 is given in the following graph: Figure 4: Sales Trend Analysis Sales Trend (In Value, Million US$) 0. 00 5. 00 10. 00 15. 00 20. 00 25. 00 30. 00 Value 15. 85 18. 96 21. 46 22. 7 24. 86 28. 15 Growth % 19. 58% 13. 19% 3. 33% 12. 12% 13. 25% 1999 2000 2001 2002 2003 2004 The graph shows that the sale is always in the positive growth. The growth is accelerated from 2004 and in last two years it achieves more than 12%growth. By value the sales in 2004 is almost double of the sales of year 1999. Preparing Marketing Mix Market Segmentation For segmenting total paint market, Berger uses more than one basis. Initially, total business of the Co. is segmented on the basis of customer types. Berger segments total market as Decorative, Industrial & Marine.

Then, Decorative group is further segmented on the basis of surface types- wooden, metal & concrete. Again, sub-class of the total paint market is sliced on the basis of Internal & External surface category. At the last step, price segmentation is used to create a number of small niches– Premium, Regular & Economy- in the market. Product Berger is committed to offer quality products that satisfy consumers’ ultimate desires from paints with the help of state-of–art technology. Berger always believes in one step ahead in offering new product to create more value for customers’ money.

Berger outsmarts other competitors of the market through its one step ahead policy and innovative market offers. Berger is trying to fill up all holes of the market through offering a wide range of products to meet the needs (Premium to Economy Paints) of different types of users and to solve the different types of functional requirements (Industrial, Decorative & Marine). Berger Bangladesh offers approximately 600 SKU including variations within basic product groups. Due to shift in market growth trends Berger is trying to establish itself in the economy segment of the paint market. Price

Generally Berger follows cost based pricing method. After calculation of the total manufacturing cost (Direct & Indirect RM cost, Direct & Indirect Labor cost and Manufacturing overhead cost) and adds 20% GP to get the price point of the product. But this is not the rule of thumb in pricing the Berger products. Competitor based pricing policy is also followed as well because of the increased competition in the paint market. Place/Distribution Berger follows the direct distribution policy to make the paints available in the market. Berger distributes paints through its own sales force.

Distribution activities of Berger in all over Bangladesh are covered by 7 (Seven) strategic depots. *One level, mainly, and *two level-channel, to some cases, are used by the Berger Paints for Decorative products. Zero level channel, personal selling, is also used for grasping the project offers. SALES DEPOT OF BERGER DEALERS DEALERS CUSTOMERS Figure 5: Channel level In one level channel, Berger’s sales force delivers paints to the dealers from where ultimate users purchase paints. In the two-level channel, some major dealers dominate the paint market in the region where they are located.

Small dealers collect paints from the large-scale dealers. Ultimate users buy paints from these small dealers. Promotion/Communication Mix Advertising Electronic media: Paints of Berger are promoted in the market through electronic media mainly in BTV and Cable Channels. Through these ads not only the overall Berger products are offered but also the individual brands are promoted. Through radio Berger is trying to reach those potential targets that are not easily reachable by the BTV or Satellite. Print Media: During daytime mostly in the office market potentials have little opportunity to go through the electronic media.

Rather, they are used to go through the newspapers, magazines and other periodical publications. So Berger has taken the initiatives to attract people’s attention through print media to some extent. Moreover, brochures, shade cards and other paint related information in printed form are delivered to the dealers, potential customers, painters and other targeted potentials to make them interested /more interested toward Berger products. Billboard: Berger efforts also move to grasp the potentials’ attention and to increase the frequency of exposure toward Berger products while they are on the way to their destinations.

Sales Promotion Berger offers different types of incentives for consumers and traders of the paint market. Trade promotion occurs more frequently than consumer promotion. Because, success in this market highly depends on the traders involved channeling the paints from producers to consumers. Traders are highly influential in the market because of long purchase cycle time (app. 3 years) of paints, technical aspects of the paints & etc. Shop boys are also included within the discursion of traders. Moreover, painters, end user of paint, play important roles in purchase decision of the paint.

So, Berger offers incentive to create a favorable attitude towards the paints of Berger. Incentives offered to different groups that have impact on paint purchase decision by Berger to stimulate sales are discussed below: With a view to boost up sales various gift items are offered to consumers for buying Berger paints. Sometimes, gifts are offered for buying more volume. In the decorative business category paints are offered to the dealers at 5% discount on MRP of the all products. Dealers of all over the country except Dhaka & Chittagong are entitled to enjoy 30 days credit facility provided that these dealers are registered.

Dealers of these two areas enjoy the credit facility of 37 days for all products of the Co. For creating a loyal, motivated dealer group Berger arranges dealers meet in which some exclusive dealers are invited for 3 / 4 days to visit an exclusive location. And the total program is sponsored by Berger paints. For selling more Berger products a turnover incentive is offered to them. If dealers buy more than a specified volume in one invoice they are rewarded with exemption of certain percentage on total monetary value of invoice. The amount exempted is deducted during the cash payment of amount due to him or at the time next time purchase.

Each registered dealers of Berger has to achieve a yearly sales target set by Berger to enjoy TOC (Turnover Commission), a percentage on total yearly sales. Berger facilitates the dealers with a signboard displaying the identity of the outlet. To create a shop boys’ favorable attitude towards Berger products, cash incentives are offered to them. To increase the sales of the company’s paints attempt is taken by Berger to create a loyal painter group who will favor the Berger paints through offering cash coin within the containers of paint. To collect the orders from projects sales force visits different newly constructed projects.

Publicity: • Young Painters Art competition • Young Architects’ Award • Sponsoring Delta Break Housing Fair Public Relations: • Sales personnel’s visit to dealer • Communicate with the initiators of different projects. • Prolink division of Marketing Department communicates with various groups (engineers, architect and etc. ) related with paint business. Generating consumer pools for sales. 1. 3 COLOR BANK AT A GLANCE Berger Color Bank introduces the global way to paint with an unlimited choice of shades to match customers’ taste-instantly.

Color Bank is a new venture of Berger Paints started by Mr. R. R. Khan, Decor manager of Berger Paints Home Decor, in 1997. The basic concept behind launching Color Bank was to reduce SKU’s and provide a variety of shades. Berger Color Bank can provide any shade, from a dark color to light colors in just 5 minutes. Berger Color Bank uses superior imported colorants and the world renowned tinting technology of Italtinto, Italy. Berger Color Bank has an unique Tintovision software which allows customers to see infinite color combinations on the screen of the computer.

Products of Color Bank includes: Robbialac Plastic Emulsion Classic Robbialac SPD Super Weather Coat Smooth Classic Robbialac Synthetic Enamel Gold Luxury Silk Splendour Robbialac Easy Clean Robbialac Pearl Lustre Finish Woodkeeper Finesse 1. 4 COMPETITOR ANALYSIS OF COLOR BANK The only competitor facing Berger Color Bank is Asian Paints Color World. At the moment, the advantage Berger is experiencing is the generic nature of Color Bank, similar to what Honda has been able to, as in being successful in making Honda a generic name for all motor cycles.

Through survey, the most common finding was that when people generally visit Asian paints store, they refer to the Color World option as Color Bank. Store owners in the Color World outlets are in constant challenge in attempting to fix such a generic word of the market. This competitive analysis identifies: • The primary competitor (Asian Color World) • Their objectives and reaction patterns • The market leader strategies to be followed. Threat of new entrants Low (except for Asian Color World, no other competitor) The above table describes the Porter’s five forces competitive model.

Each of the five factors is explained below in details. • Threat of new entrants – The threat of new entrants is relatively low, as Asian Color World is the only competitor for Berger Color Bank. • Threat of rivalry – Asian Color World is an aggressive competitor. It already has six outlets all over the city, and has already captured the Uttara market with 2 outlets, whereas Berger Color Bank has only one outlet in Uttara. However, they do not have as many outlets as Berger Color Bank. Berger Color Bank has 17 outlets in Dhaka, and numerous outlets outside the city. Thus the threat of rivalry is low. Threat of substitutes- It is low as Asian Color World is the only substitute and they are new in the market. However, during surveying the architects, there has been word in the market that Elite Paints have similar color variety, and is providing numerous shades. They have not started dealing in retails outlets yet. • Threat of supplier power- It is low as Berger Color Bank has their own Research and Development unit, and raw materials are flown in from abroad. Rivalry Aggressive Not numerous Color Bank – 17 outlets Color World – 6 outlets Threat of supplier power Low Has their own

R&D Threat of buyer power Low Threat of substitutes Low Color World is new Figure 6: Michael Porter’s competitive forces analysis for Berger Color Bank • Threat of buyer power- It is low as switching cost is moderate in terms of company reputation, quality, and 3000 more shade availability. Objectives of the competitor Asian Color World is a division of a larger company, Asian Paints. Although one useful assumption is that competitors strive to maximize profit, the parent company is running it for growth. Reaction patterns Different companies react differently to competitive assaults.

Some are slow to respond, others respond only to certain types of attacks. According to Henderson, much depends on the industry’s “competitive equilibrium”. He says that: • If competitors are nearly identical and their living in the same way, then their competition equilibrium is unstable. If Asian Color World addresses a price cut, then equilibrium will be upset. • If a single major factor is the critical factor, then the competitive equilibrium is unstable. Berger Color Bank is a relatively old concern and has been in the market for the last eight years dated 1998.

The nature of existence of Berger in the paint industry for over a decade has achieved a cost breakthrough through economies of scale, and experience. In such a scenario, Berger Color World can cut price and win market share experience at the expense of Asian Color World. This would create competitive equilibrium instability and prove an advantage for Berger. Market-leader strategies Many industries contain one firm that is acknowledged market leader. Berger Color Bank has the largest market share in the relevant product market. Remaining number one calls for actions on three fronts.

First, Berger must find ways to expand total market demand. Second, they need to protect its current market share through good defensive and offensive actions. Third, Berger can try to increase its market share, even if market size remains constant. Expanding the total market share New users- Every product has the potential to attract buyers who are unaware of the product or who are resisting it because of price. Berger can search for new user among three groups: those who might use it but do not (market-penetration), those who have never used it (new-market segment strategy), or those who live elsewhere (geographical-expansion strategy)

More usage- A third marketing strategy is to convince people to use more product per use occasion. Defending market share At the moment, Berger Color Bank is not facing as much competition from Asian Color World. But in the near future, if it does so, Berger can adopt the position defense and flank defense strategies. Position defense strategy would mean that Berger build a superior brand power and make the brand almost impregnable. Berger Color Bank already has an advantage of Color World with the availability of shades. Color Bank is providing almost 3000 shades more than Color World.

Introducing color recognition software would increase the availability to much more. In a flank defense strategy, Berger should erect outpost to protect a weak front or possibly serve as an invasion base for counterattack. Berger can increase price by Tk. 1 on one of its most purchased brand, like Weathercoat exterior. They could then use the increased revenue from the regular product and use it for advertising Color World products. Expanding the market share The actual market share of Color Bank product is yet to be estimated.

The percentage of market share by Asian Color World is unknown to the researcher. A study by the Strategic planning institute (called Profit Impact of Market Strategy, or PIMS) found that a company’s profitability, measured by pretax return on investment (ROI), rises with its relative market share of its served market. 1. 5 PROBLEM DEFINITION Management Problem: Satisfying customers are the only way to stay competitive in today’s marketplace. The balancing act between what customers want and what company can provide must be optimized in order to maximize company’s long-term profits.

Berger Paints Bangladesh Ltd already is in a good position in the consumer mind but by understanding the customer satisfaction level, it will help the company to exceed the present level of customer satisfaction. The management currently has a lack of knowledge of the customer satisfaction level of Color Bank users, and how to improve the level of customer satisfaction. Research problem: This research would investigate the level of customer satisfaction level of Color Bank users and what are the different influencing parties (architects, developers, painters and dealers).

On assessing the level of customer satisfaction, what marketing tools, like promotional efforts and other marketing efforts, are necessary to improve the customer satisfaction level. 1. 6 RESEARCH OBJECTIVES 1. 6. 1 Broad objective: To assess and find out whether the customers are satisfied (to what extent) with the product or services of Color Bank. 1. 6. 2 Specific objective: • Whether the customer are loyal to buy Berger Color Bank product. • Whether Color Bank can build the relationship with the target customer and the dealer through their products. Whether Color Bank can build the relationship with the target customer and the specifiers through their products. • Whether Color Bank can build the relationship with the target customer and the painters through their products. • Find out the source of information. • Find out the customer satisfaction level in consideration to the product quality. • Find out the customer satisfaction level in consideration to the service of Berger Color Bank. • Whether Berger can create awareness in the consumer mind. • Whether the dealer can penetrate in the market for Berger Color Bank products. Whether the dealer are capable of maintaining the relationship with the target customer. • Whether specifiers (architects, developers, painters) can create awareness for Berger Color Bank product in the consumer mind. 1. 7 SCOPE OF THE REPORT 1. 7. 1 Geographic Scope: The researcher will be focusing on the customer satisfaction level for Berger Color Bank products (to what extent they are satisfied) concentrating Dhaka city. To make this survey more extensive, the researcher divides Dhaka city into some group (based on locality). Population Area of a Dhaka City Consumer Banani,Gulshan,Baridhara,Uttara,Fakirapul,

Kodomtoli,Purana paltan,Dhanmondi, Mohammadpur,Shantinagar,Shamoli,Kakrail,Niketon, Dealer Moghbazar,Gulshan-2,Malibagh,,Chowdhurypara, Mirpur-10,Uttara,Mirpur road opposite side of Dhaka college,Banani, Architects Dilkusha,Malibagh Chowdhury ,Uttara Mohakhali,Gulshan,Banani,Mohammadpur Lalmatia,Eastern Plaza, Sonargaon Road Dhanmondi,Indira Road. Developer Gulshan,Dhanmondi,Panthapath. Painters 1. 7. 2 Technical Scope: The researcher will consider the knowledgeable respondents, basically who make the purchase decision within Dhaka city. For that reason we divided the total population in to some group. The knowledgeable respondents. • Dealer’s • Painters. • Expertise (Arechitechs,Engineers) 1. 8 LIMITATIONS This present study is limited by a number of factors. • The sample population is limited in terms of its range and composition. • Non response error – this type of error occurs when the researcher cannot locate the pre-designated sample element to be studied. Two sample element were out of reach and inaccessible. Their address could not be found in the customer database, and also they did not receive phone calls. Sample substitution could not be possible as the sampling frame was limited. The research was limited by time and cost. Chapter 2 Methodology 2. 1 RESEARCH DESIGN 2. 1. 1 Type of research The task of business research is to generate accurate information for use in decision making. Business research is defined as the systematic and objective process of gathering, recording, and analyzing data for aid in making business decisions. There are two types of research. Basic research is intended to expand the boundaries of knowledge itself or verify the acceptability of a given theory. Applied research is conducted when a decision must be made about a specific reallife problem.

Applied research encompasses those studies undertaken to answer questions about specific problems or to make decisions about a particular course of action or policy. This research type is basic research as we are trying to expand our boundaries of knowledge of the level of customer satisfaction of Color Bank users. 2. 1. 2 Nature of research When a researcher has a limited amount of experience with or knowledge about a research issue, exploratory research is a useful preliminary step that helps ensure that a more rigorous, more conclusive future study will not begin with an inadequate understanding of the nature of the management problem.

The purpose of an exploratory research is intertwined with the need for a clear and precise statement of the recognized problem. Exploratory research has two interrelated purposes, to diagnose a situation and discover new ideas. Much, but certainly not all, exploratory research provides qualitative data. This research is a qualitative exploratory research, as it is an initial research conducted to clarify and define the nature of a problem. It is qualitative as the results of this research focuses on words and observations, instead of numbers and mathematical analysis. 2. 2 RESEARCH STRUCTURE 2. 2. 1 Type of data

This research will not be focusing on any secondary data, as no such preview research has been conducted in context of Berger Paint Color Bank. This research will work with only primary data. 2. 2. 2 Data collection procedure There are three types of method, survey, observation and experiment. Data is collected through survey method. For the survey method, the researcher will use unstructured personal interview. A questionnaire is kept in hand of the interviewer to aid the interview process. A personal interview is a form of direct communication in which an interviewer asks respondents questions in a face-to-face situation.

There are several advantages of personal interviews. • Probing complex answers. • The opportunity for feedback. • High participation. • Item non-response – the technical term for an unanswered question on an otherwise complete questionnaire. 2. 3 SAMPLING PLAN The sampling technique is a cross-sectional study as the data is collected at a single point in time. 2. 3. 1 Target population The user of Color Bank in the geographical base of Dhaka city 2. 3. 2 Sampling Frame • List of household (Customers who have used Color Bank) of Dhaka city. This will be provided from Berger Paint Home Decor. List of architects, dealers and developers of Dhaka city, which will be provided by Berger Paints. • There is no such sampling frame for painters. 2. 3. 3 Sample unit Sampling unit consist of the respondents. For that reason we divided the total population in to some group. • The knowledgeable respondents. Higher Upper class. Upper Class. Upper Middle Class • Dealer’s • Painters. • Expertise (Architects, Engineers). 2. 3. 4 Sampling technique The sampling will be non-probability quota sampling. In quota sampling, the researcher tries to classify population by pertinent properties, determining desired proportion of sample from each class. . 3. 5 Sample size We are considering the knowledgeable respondents basically who make the purchase decision for (Berger Color Bank) within Dhaka city. For that reason we have divided the total population in to some group. • The knowledgeable respondents. Higher Upper class. Upper Class. Upper Middle Class. • Dealer’s • Painters. • Expertise (Architects, Engineers) Dealers The total number of Berger paints Color Bank dealer is 17. As advised by Berger Paints, 60% of the sampling frame will be sufficient to fully cover the dealers of Dhaka city. The detail of the area wise distribution of dealers is given below.

We have selected the 10 dealers based on judgment. Sl no. Area Number 1 Moghbazar 1 2 Gulshan-2 1 3 Uttara 1 4 Mirpur 3 5 Banani 2 6 Narayanganj 1 7 Sonargong 1 Total 10 Sample Size for the Dealers: 10 The detail addresses and other required information regarding dealers is provide by Berger Paints Bangladesh limited. It is expected and assumed that 4 interviews can be done in one day. So within 3 days we can cover all the dealers. Architects The list of architect was given to the researcher by Berger Paints. Out of the 33 architects, 60% of the sampling frame was considered, ie 20. The detail of the area wise distribution is given below.

The 20 architects were selected based on judgment. Area Name Number Dhanmondi Ar. Nahas Ahmed Khalil , Ar. Shaila Joarder Ar. Nishat Afrose Ar. Enamul Karim Nirjhar Ar. Dewan Shamsul Arif 5 Banani Ar. Riad Rouf, Ar. Tarique Hasan Ar. Arifur Rahman Ar. Rizwana 4 Gulshan Ar. Md. Arefeen Ibrahim Ar. Nusrat Jahan 2 Uttara Ar. Samia Latif,Uttara Ar. Sayeda Sultana ,Uttara Ar. Syed Safiullah,Uttara Ar. Karuzzaman Khan Apu,Uttara 4 Moghbazar, Malibagh,Dilkusha Ar. Mainul Quader Tito Ar. Mahbuba Haque Shikha Ar. Farzana Rahman (Rita) 3 PWD Ar. Farukul Islam Ar. Golam Nasir 2 Total 20 Sample Size for the Architects: 20 Developers

As we are considering only Dhaka city, five developers were selected for data collection based on judgment. Sl No. Name & Area Number Dhanmondi Panthapath Alien Properties Assurance Development Urban Design & Development Sheltech LTD 4 Gulshan Asset Development Holdings LTD 1 Total 5 Sample Size for the Developers: 5 Customers The list of customers was given to the researcher by Berger Paints. Out of the 43 customers list of Color Bank users, 60% of the sampling frame is 26. However, 26 of the respondents in the list were previously interviewed. The remaining 17 respondents is considered the sample size for customers.

Out of judgment, the researcher has included 4 more customers of Color Bank in increase the sample size. The detail of the area wise distribution is given below. Sl. No Area Number 1 Uttara 1 2 Gulshan, Banani, Niketon Baridhara, Mohakhali DOHS 9 3 Pura Paltan, SHantinagar, Kakrail, Fakirapul, Siddeshwari 7 4 Shymoli 1 5 Dhanmondi, Mohammadpur, Lalmatia 5 Total 23 Sample Size for the Customers: 23 Painters The sample size of the painters is 5. The painters were selected on a judgment basis, by understanding the experience level of painters. 2. 4 SAMPLE CHARACTERISTICS 2. 5 PRE-TESTS

Pre-tests are trial runs with a group of respondents for the purpose of detecting problems in questionnaire instruction or design. Pre-testing was done with 2 customers and 2 architects, and the questionnaire re-modified. The re-modified questionnaire was asked for approval from Berger Paints. Berger Paints approved the re-modified questionnaires. Demographic Age 30-40, 41-50 Occupation Businessman, Managers, homemakers, Architects, Engineers, Painters, Officials Social Class Upper class, upper middle class Behavioral User status Regular user, first time users Loyalty status Medium, strong Readiness stage Aware, informed, interested,

Chapter 3 Results 3. 1 DEALERS Dealers inspiration to deal with Color Bank others ABCD Variety of Color-A Figure 1: Dealers inspiration to Deal Color Bank Berger Paints Bangladesh has introduced a new era in the painting world. As the market is dynamic and very much unique in nature, consumers are very much attracted by Color Bank option as they can get any desired color within 5 minute. Here we try to find out the factors that inspire the dealers to deal with Color Bank. From the above chart we can see that: • 40% of the total respondents are attracted by Variety of Color, Demand, Quality, and Goodwill. 40% are attracted by the profitability, uniqueness of Color Bank option. Satisfied Partially satisfied Dissatisfied Satisfaction with Color Bank v Satisfaction with product v Satisfaction with service v Overall satisfaction v Level of interaction with client Should be better Table 1: Overall view of Dealers ABCD = Variety of Color, Demand, Quality, Goodwill Others = profitability, uniqueness. The above table clearly shows a summary of the satisfaction level of dealers with Berger Color Bank. The detailed analysis below will be sorted in the above mentioned category. 3. 1. 1 Findings and analysis Satisfaction with Color Bank system

Dealer’s satisfaction on CB system Frequency Percent Valid Percent Valid Yes 9 90 100 No 1 10 Total 10 100 Dealers satisfaction on Color Bank no yes Figure 2: Dealer satisfaction on Color Bank This table determines how many dealers are satisfied with the Color Bank manufacturing process and their frequency of satisfaction regarding the Color Bank process. From the above table we find that about 90% of the total population is very much satisfied with the Color Bank manufacturing process. Satisfaction with product Figure 3: Commonly purchased brand This table shows us which product has more demand in the market.

Here we find that Robbialac Plastic Emulsion Classic and Weathercoat Smooth Classic have high demand in the market. Here RPEC = Robbialac Plastic Emulsion Classic. WKE = Weathercoat Smooth Classic. Table 2: Cross tabulation table for Dealer’s satisfaction level on Color Bank product & service and Dealer’s Inspiration about Color Bank. Dealer’s Inspiration about CB Variety of Color ABCD others Total Count 1 1 2 Hi Satisfy % of Total 10. 0% 10. 0% 20. 0% Count 1 4 2 7 Satisfy % of Total 10. 0% 40. 0% 20. 0% 70. 0% Count 1 1 Dealer’s satisfaction level on CB products & services Dissatisfy % of Total 10. 0% 10. 0%

Count 2 4 4 10 Total % of Total 20. 0% 40. 0% 40. 0% 100. 0% In the case of Dealer’s inspiration and Dealer’s satisfaction: 20% of the dealer’s are highly satisfied with variety of color and availability of Color Bank base. 40 % of the dealers are satisfied with variety of color, Demand, Quality, Goodwill of Color Bank Product and service. On the other hand we observe that 10 % of the dealers are dissatisfied with the unavailability of Color Bank bases, shade card, high price of Color Bank product. • They keep this Color Bank option in their outlet as it is profitable for them. • It has huge demand in the consumer mind. More over through Color Bank consumer can get their desire color so they have to keep the Color Bank option in their store. Satisfaction with service Table 3: Cross tabulation table for Dealer’s satisfaction level on CB product & service and Dealer’s expectation on Color Bank shades Color Bank give desired color yes others Total Count 2 0 2 Hi Satisfy % of Total 20. 00% 0. 00% 20. 00% Count 6 1 7 Satisfy % of Total 60. 00% 10. 00% 70. 00% Count 0 1 1 Your expectation about Color Bank product and service is satisfactory Dissatisfy % of Total 0. 00% 10. 00% 10. 00% Count 8 2 10 Total % of Total 80. 0% 20. 00% 100. 00% In the case of Dealer’s Satisfaction and Dealer’s expectation on Color Bank shades 20 % of the dealers said yes and they are highly satisfied with the Color Bank shades and 60% of the Dealers told that they are satisfied but sometimes the base and shade cards are not available. The table below shows the following about the satisfaction as a product of expectation about Color Bank product and service and the dealer’s satisfaction on Berger Paints employee’s behavior if color quality is not up to the mark: • Highly Satisfied – 20% of the dealers • Satisfied – 70% are satisfied Others – 10% of the dealers. They are unhappy as they do not receive timely response from Color Bank when they request for Color Bank base, Shade Card Table 4: Cross tabulation table for Dealer’s satisfaction level on CB product & service and Dealer’s satisfaction on Berger Paints employees behavior Dealer’s satisfaction on Berger Paints employee’s behavior if color quality is not up to the mark Yes others Total Count 2 0 2 Hi Satisfy % of Total 20. 00% 0. 00% 20. 00% Count 7 0 7 Satisfy % of Total 70. 00% 0. 00% 70. 00% Count 0 1 1 Your expectation about Color Bank product and service is satisfactory Dissatisfy of Total 0. 00% 10. 00% 10. 00% Count 9 1 10 Total % of Total 90. 00% 10. 00% 100. 00% Overall Satisfaction Customer satisfaction level according to Dealers 70. 0% 30. 0% Satisfy Hi Satisfy Dealers overall satisfaction 10. 0% 70. 0% 20. 0% Dissatisfy Satisfy Hi Satisfy Figure 4: Dealers overall evaluation The above two pie charts clearly explains to overall satisfaction level of dealers and the customer satisfaction level from the dealers point of view. We can see that 20% of the dealers are highly satisfied, and 70% of the dealers are satisfied with the overall product and service of Color Bank.

Only 10% of the dealers are not satisfied with the service of Color Bank, as they believe that they are not receiving proper financial assistance. The other pie chart shows the level of customer satisfaction from the dealers’ point of view. Dealers feel that 30% of the customers are highly satisfied and 70% of the customers are satisfied with Color Bank. The three reason that dealers put forward are: • The get the desired shades in less than 5 minutes. • Huge variety of shades. • A new concept and it is unique in nature. 3. 1. 2 Summary of findings

From our survey we find that Dealers are important customers of Berger Paints Color Bank option, as they are an important buffer between the customers and Berger Paint. From our analysis, we realized that the dealers are not proactive in making the customers knowledgeable, as they fail to convince customers to buy Color Bank option from their outlet. During our visit to Asma traders, one customer was asking for Color Bank option and its features. The interviewer realized that the customer was looking for a product which is easily washable, and Color Bank Easy Clean product was the perfect choice.

But the dealer’s approach was not enthusiastic in nature to motivate the customer to purchase Easy Clean. They keep this Color Bank option in their outlet as it is profitable for them. At the same time, there is a huge demand for Color Bank products in customers’ minds. This are the two reasons the dealers are inspired to deal with Color Bank. According to the dealers, customers are not that much aware of the product variety, product feature and functionality of Color Bank. Dealer’s are not that much happy with the financial support. Financial support refers to extend due date, give credit facility, discounts.

They want more shade card

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