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Assignment

On
Marketing Strategy & Marketing Mix

BERGER: Robbialac SPD

Marketing Strategy and Marketing Mix

Of Berger : Robbialac

PREPARED FOR: Dr. Kamal Uddin Associate Professor and Course Instructor Principles of Marketing IB-205

PREPARED BY: Borhan Uddin (21) Md. Muslim Reza (50) Class: BBA, Batch-2nd Year: 2nd, Semester: 1st

Date of Submission: 30-May-2010

Department

of

International

Business

University

of

Dhaka.

Table of Contents
Company Profile... 1 Mission... 2 Vission ................................................................................................................... 2 Main Competitors... 2 Products.. 2 Highlighted Products............................................................................................ 2 Market Share.. 3 Market Segmentation... 3 Income Based Segmentation.. 3 Usage Rate based Segmentation. 4 Brand Loyalty Based Segmentation 4 Psychographic Segmentation.. 4 Market Targeting..5 Differentiation 5 Market Positioning 5 Marketing Mix.................................................................................................. 5 Product............................................................................................ 5 Price............................................. .............................................................. 6 Promotion............................................. ...................................................... 6 Place............................................. ............................................. ................ 6 BCG Growth Share Matrix of Berger. 7

Recommendation..
7

Acknowledgement............................................................................................... 8 Reference 8

Company Profile:
Berger Pints name that stands for imagining in colors. Founded by Lewis Berger in 1760. Berger Paints began its painting in Bangladesh since independence. And this has been a footstep to bring more than 230 years of global paint industry experience into Bangladesh. Annual sales volume in Bangladesh is about Tk. 2 billion. Over the decades, Berger has evolved to becoming the leading paint solution provider in this country and has diversified into every sphere of the industry - from Decorative Paints to Industrial Coatings, from Marine Coatings to Powder Coating and what not. To give a comprehensive and sustainable painting solution to the need of the industry, Berger has invested more on technology and Research & Development (R & D) than any other manufacturer in this market. It selects the raw materials from some of the best known names in the world: MITSUI, MOBIL, DUPONT, HOECHST and BASF are a few to name. The superior quality of Berger's products has been possible because of support from its advanced plants and an international standard of strict quality. Investment in technology and plant capacity is even more evident from the new factory of Berger Paints Bangladesh Limited at Savar. The state-of-the-art factory is an addition to Berger's capacity to make it the paint-giant in Bangladesh. Not to forget about the first Double Tight Can manufacturing unit in its Chittagong factory. All, together with a devotion into R & D to make it the reputed center of Basic & Applied Research in paint and Resin Technology, proof the commitment that Berger has for this industry. With its strong distribution network, Berger has reached almost every corner of Bangladesh. Nationwide Dealer Network, supported by 7 Sales Depots strategically located at Dhaka, Chittagong, Rajshahi, Khulna, Bogra, Sylhet and Comilla has an unmatched capability to answer to paint needs at almost anywhere in Bangladesh. The sheer innovation and development drive is reflected on the various products Berger has so far launched in this market. The product range includes, Specialized outdoor paints protective of the worst weather conditions, Color Bank, superior Marine Paints, Textured Coatings, Heat Resistant Paints, Roofing Compound and Epoxies. In each of the product category, Berger has always been the pioneer and will continue to do so proudly.

Berger's one of the prime objectives is to provide best customer support-connecting consumers to technology through specialized services like free technical advice on surface preparation, color consultancy, special color schemes etc. To bolster customer satisfaction, Berger has recently launched Home Decor Service from which once can get an array of services pertaining to painting. With world class range and durability, Berger is always ready to answer to all weather conditions.

Mission:
We shall increase our turnover by 100% in the next five years. We shall remain socially committed ethical Company.

Vision:
We shall remain as the benchmark in the Paint industry by: Being an innovative and technology driven company consistently delivering worldclass products ensuring best consumer satisfaction through continuous value added services provided by highly professional and committed team.

Main Competitors:
1. Asian Paints 2. Romana Paints 3. Elite Paints

Products:
1. 2. 3. 4. 5. 6. 7. Robbialac Illusions Luxury Silk Emulsion Zhilik Weather Coat Durocem Wood keeper

Highlighted Products:
1. Robbialac SPD 2. Luxury Silk Emulsion 3. Illusions SPD:

For medium to high income people who have little or no aspirations. People who are more accustomed to middle class life and who do not do a lot of differentiation among colors. Luxury Silk Emulsion: For people of high income and high aspiration. They are frequents corporate & social parties who want class to be reflected in the colors of the walls. Illusions: For successful entrepreneurs & top management executives who achieved their goals & dreams who want their thoughts patterned on the walls.

Market Share:
Approximate market shares are: Berger 67%, Asian 12%, Romana 8%, Elite 7.5%, Others 5.5%.

Berger Paints Asian Pints Romana Paints Elite Pints Others

Market Segmentation:
Berger segmented its market as follow: Primarily: Decorative Finishes for Interior and Exterior Finishes. Industrial Coatings for road, structural steel, sheets etc. Marine Coatings for ship, dock etc. Secondly: Segmentation Bases Income Usage Rate Brand Loyalty Psychograph Segmentation based on Income

Segmentation based on Usage Rate

Segmentation based on Brand Loyalty

Psychographic Segmentation: Robbialac SPD Economy product with quality. Luxury Silk Premium product at a premium price. Illusions Paint that reflects dream and achievements.

Market Targeting:
Berger independently evaluates its each market segments attractiveness and tries to enter all segments because it wants to expand its market more and more.

Differentiation:
Berger is the only company which has differentiated its product with over 200 product variations. Seven sales office and thousands of dealers throughout Bangladesh. Home services are also there for the customer.

Positioning:
Product Positioning: SPD

Robbialac SPD has almost same quality comparing to competing products but still has a high price than competitors.

Marketing Mix:
Product:

Variety: Berger has a lot of variety of Robbialac. Such as For interior finishes For exterior finishes For industrial coatings For marine coatings etc.

Quality: Less qualitative comparing to its other products like Luxury Silk Emulsion, Illusions but better than the competitors. Design: It includes lots of design variety too. Brand Name: It has different brand name for different finishes like - Robbialac Acrylic Distemper (SPD), Robbialac SPD Super ,Robbialac Plastic Emulsion Classic, Robbialac Synthetic Enamel Gold, Robbialac Pearl Lustre Finish, Robbialac Acrylic Plastic Emulsion (APE), Robbialac Super Gloss Synthetic Enamel (RSE), Robbialac Aluminium Paint, Robbialac Red Lead Primer, Robbialac Zinc Phosphate Primer, Robbialac Plastron Primer Sealer, Robbialac Synthetic Undercoat, Robbialac Anticorrosive, Robbialac Water Sealer, Robbialac T-6 for Air-Drying Primers & Enamels, Robbialac Wall Putty etc. Packaging: Its packaging is better than the competitors. Services: It has two types of services- free services, paid services. It provides an useful Blue Book for how to use the paint.

Price:
Unit Price: 1 liter Robbialac SPD is Tk. 170 for home finishes. Discounts: It has a good reputation market demand as a result it does not provide any discounts. Credit Terms: It also sales its products on credit sometimes with some conditions.

Promotion:
Advertising: TV, Newspaper, Bill Board etc. Personal Selling: Personal selling through showrooms, e.g. Colorbank. Sales Promotion: Taking part in Trade Fairs. Public Relation: Tries to maintain good public relations.

Place:
Channels: 7 Sales offices, Over thousands Dealers and Retailers throughout the country. Uses selective and complementary distribution.

Company Sales office & Dealers Whole sellers & Retailers Consumers

Coverage and Location: Whole country coverage. Transportation: Its own truck and pick up transport its product across the country.

BCG growth-share matrix of Berger:

High Market Growth Rate Low

Star (Luxury Silk Emulsion)

Question Mark (Illusion)

Cash Cow (Robbialac)

Dog (Zhilik)

High Relative Market Share

Low

Star: Luxury Silk Emulsion is now being considered as Star because of its high growth rate and market share. Cash Cow: Robbialac is considered as Cash Cow as it generates huge cash besides its market growth relatively low. Because once it was the Star of Berger.

Question Mark: Illusions is considered as Question Mark as it has a high price, its market share is low though growth is comparatively high. There is low chance for Illusions to grow as Star. Dog: Zhilik is considered as the Dog because it generates enough cash to maintain itself.

Recommendation:
Berger should cope with the market environment specially for Robbialac as Robbialac may lose its market share due to cheap product of competitors. Berger has lots of variations of product. Sometimes Robbialac competes with Bergers other products. So management should concern for this. Overall scenario is satisfactory.

Acknowledgement:
Dr. Kamal Uddin
Associate Professor & Honorable Course Instructor Principles of Marketing Department of International Business University of Dhaka. Mr. Abul Hasnat Dealer Berger Paints Bangladesh Ltd. Mirpur-1, Dhaka-1216.

Reference:
www.bergerbd.com

Berger Robbialac SPD

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