BERGER PAINTS BANGLADESH

LTD.
Prepared For:
Mr. Mohammad Hannan Miah

Prepared By:
Group # 6

MGT314. 8
December 15th, 2014

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 Letter of transmittal

15th December 2014

Mr. Md. Hannan Miah

Senior Lecturer, School of Business
North South University

Subject: Submission of Project for the course MGT314.

Dear Sir,

It is our pleasure to present you the final project on ―Berger Paints Bangladesh Limited‖ which is
required for the completion of the course MGT314. We have tried to give our full effort to
include all the learning that we have received from the course under your guidance. We have
done this project all by ourselves despite any outside help and whatsoever.

We, therefore, pray and hope that, you would be kind enough to accept the final project and
oblige thereby.

Yours Sincerely,

Faiyaz Mahmud ID# 111 0191 030

Mayeesha Fairuz Rahman ID# 103 0493 530
Md. Imtiaz Hussain ID# 111 0891 030
Rafat Chowdhury ID# 112 0452 030
Ratul Rahman Foysal ID# 103 0344 530
Ziaul Islam ID# 113 0042 030
Section: 08

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 Executive Summary

This report has been conducted on Berger paints Bangladesh ltd. which is the largest paint

company in Bangladesh. The purpose of the study remains at the core of finding Berger to

uphold in the competitive industry and also to safeguard their business.

To satisfy the purpose we have conducted a systematic analysis externally as well as internally

on Berger and the paint industry in determining the competitive position it acquires compared to

its competitors. In finding the reason behind the success of Berger its core competency for

instance and the superior strategies came into the view in every aspect of the study.

Despite the fact of being the market leader with the strategies and operations coincide Berger has

been recommended with a proposed business model and some alterations in their strategies so

that the company can be even more successful in the long run.

Furthermore, due to a lack of time allowed to compute all the data a very deep tentative research

was not possible, but satisfactory analysis of the company within the time frame was constructed

with to find out their strategies, problems and recommend solutions.

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 Table of Contents

Introduction 1
About the company 1
Mission 3
Vision 3
Why we have chosen this company 4
Purpose 5
Industry BPBL Belongs to 6
Industry Analysis 7
Industry Structure 8
Industry Growth Analysis 9
Controlling Forces for the Profitability and Industry Profitability 10
PESTLE Analysis 11
Porter‘s Five Forces 16
Impact of Macro Environment on Porter‘s Five Forces 18
Competitor Analysis 19
Immediate 19
Impending 37
Invisible 39
SWOT Identification 43
Current Business Canvas 48
Current Business Model of BPBL 57
Core Competency 59
Corporate Strategy 60
Diversification 62
Relationship between Corporate Level and the Mission Statement 63
Business Level Strategy 63
Industry Life Cycle 67
Value Chain 71
Business level Strategy helping to achieve corporate level Strategy 73
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 Table of Contents
Functional Level Strategy 73
Divisions and Department of Berger 74
Market Division 75
8p‘s of Marketing 77
Finance Division 81
Human Resource Management 88
Merit Rating/Performance Appraisal 93
Linking Resources, Core Competency, Capabilities with Functional Level Strategies for Value
Creation 103
Company Structure 107
Corporate Governance 116
Executive Management Team 120
Corporate Social responsibility 121
Structure and Control System 123
Value Chain Analysis 125
4p‘s Strategy 133
SWOT Analysis 134
Proposed Business Model 141
Recommendation 142

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Introduction

Paint industry in Bangladesh is an industry which has very high potentials and is contributing
significantly in the economy. This industry has not only created opportunity for local and
multinational firms to invest but also created a great number of job opportunities in the country
and infrastructure development.

Currently, there are almost 38 paint companies in the country who are producing paints and
satisfying customer needs. But there are only a few large companies who are capable and are
producing at large scale and capturing most of the market share. Prominent of all these
companies is the Berger Paints Bangladesh Limited which alone is capturing almost 55 percent
of the market share. (Berger paints Annual Report, 2013, n.d.).

Although there are so many companies in the industry, Berger has been able to maintain the
monopoly in terms of market share but they never acted like one. They always provide customers
with new products and services making sure they have a delighted customer base. Unlike most of
the other paint companies in the country, they are always coming up with products and services
which sometimes goes beyond customers‟ expectation level‖.

Bangladesh, being a developing country of 160 million people, is heavily growing in terms of
infrastructure and so with that comes the opportunity for the paint industry to offer what they
have best to contribute. And Berger, the largest paint company in the country has been able to
satisfy its customer needs through its efficient supply chain management and production. The
company is also contributing to society in many ways, which eventually puts the company‘s
name in a much higher level. (Berger paints Annual Report, 2012, n,d.)

About the company

Berger Paints is one of the oldest names in the paint industry in Bangladesh and it is one
of the most technologically advanced companies in the country. The company is constantly
striving for innovating superior quality products and services. Berger manufactures world class

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paints for all kinds of substrates and also provides unparallel services. It has a rich heritage of
more than 250 years. (bergerbd.com, n.d.)

Berger‘s inception was laid out in 1760 by a German national named Louis Berger, who
started dye and pigment making business in England. Louis involved his family into the business
and eventually changed the status of the company to Louis Berger & Sons Limited. The
company grew and expanded rapidly with a strong reputation for excellence in innovation and
entrepreneurship. The company grew rapidly, by establishing branches all over the world and
through mergers and acquisitions with other leading paint and coating manufacturing companies.
(bergerbd.com, n.d.)

Berger Paints started its operation in Bangladesh since independence. Over the past few
decades, Berger has evolved and transformed itself in becoming the leading paint solution
provider in the country with a diversified product range that caters to all painting needs. In most
of the product categories, Berger is the pioneer. It continues to innovate new kinds of paintings
and offer those to its customers. (bergerbd.com, n.d.)

Berger has heavily invested in technology and Research & Development (R&D)
compared to any other manufacturers in paint industry. Investment in technology and plant
capacity is even more evident from the establishment of Powder Coating and Emulsion plants at
the Dhaka factory. The state-of-the-art Dhaka factory is an addition to Berger's capacity, making
it the paint giant in Bangladesh. It sources raw materials from some of the best known names in
the world. The superior quality of Berger's products has been possible because of its advanced
plants and strict quality controls that match international standards. (bergerbd.com, n.d.)

With its strong distribution network and supply chain management, Berger has reached
almost every corner of Bangladesh. Nationwide Dealer Network, supported by 8 Sales Depots
strategically located at Dhaka, Chittagong, Rajshahi, Khulna, Bogra, Sylhet ,Comilla and
Mymensingh has an unmatched capability to answer to paint needs at almost anywhere in
Bangladesh. (Berger paints Annual Report, 2011, n.d.)

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 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 colour schemes etc. To bolster customer satisfaction,
Berger offers Home Decor Service from where one can get an array of services pertaining to
painting.
Besides doing business in the country and also in all parts of the world, Berger carries out many
CSR activities which are heavily impacting the society, especially countries like Bangladesh.
This is not only creating a good image for the already well known company, it is helping the
society to be a better one and a more creative one. (Berger paints, Annual Report, 2011, n.d.)

Mission

―We shall increase our turnover by 100 percent in every five years. We shall remain
socially committed ethical company.‖ Key points:

• Increase turnover by 100 percent in every five years

• Remain socially committed ethical company (Berger paints, Annual Report, 2012)

So far as we have seen, the company is moving in the right direction as far as their
mission statement is concerned. They are trying hard to increase their sales to reach their desired
growth rate. Most importantly Berger is heavily committing itself in CSR activities which show
the company‘s commitment to the people and the society as a whole.

Vision

―To be the most preferred brand in the industry ensuring consumer delight.‖
(Berger paints, Annual Report, 2012)

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 Key points:
• To be most preferred brand
• Ensuring consumer delight

In fact, Berger today and till now is the most preferred brand in the paint industry. In
reality, the name has become synonymous to paint in Bangladesh. To most of the people, paint
means Berger. The company has successfully been able to maintain this reputation through
various R&D and offering customers they like and sometimes offering them something beyond
their expectation hence the company having a delighted customer base.

Why We have Chosen This Company

In progressively conscience-focused market places of the 21st century, Berger Paints

Bangladesh Ltd. drives its business in a high competitive environment by investing higher in
technology and Research & Development (R&D) compared to any other local and multi-national
organizations in this market. Low per capita consumption of paints, vast potential to upgrade the
market, limited product range and increasing urbanization have made Bangladesh paint industry
a promising area for investment. At present, the company holds 55% market shareswhereas the
rest of 45% market shares are held by the other multi-national and local businesses. Some 38
small and medium size companies are engaged in the paint industry of Bangladesh. The total
Bangladesh paint market is estimated to be over 50,000 tones. Per capita paint consumption is
around 250gm. The majors participants of the paint industry are: Asian Paints, Elite Paints,
Romana Paints, Roxy Paints, Aqua Paints, Pailac Paints, Al-karim Paints, Uzalla Paints, etc.
Among these companies only Asian Paints does business in several countries and others are all
local producers. (bergerbd.com, n.d.)

Berger Paints Bangladesh Ltd. chalked out CSR policies that ensure business operations
that follow ethical standards. They standardized their business introducing the 3 Ps in mind –
People, Planet and Profit. . (bergerbd.com, n.d.)

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 These exceptions have forwarded Berger Paints Bangladesh Ltd. to perform better each
year for the last consecutive five years (2008 – 2013). A figure has been shown in the following:

Performance in Last Five Years

Turnover Gross Profit
TK. in „000
3,500,000
10,000,000 3,000,000
8,000,000 2,500,000
6,000,000 2,000,000
4,000,000 1,500,000
2,000,000 1,000,000
500,00
-
-
Tk. in „000 2008 2009 2010 2011 2012 2013

2008 2009 2010 2011 2012 2013

Profit Before Tax Profit After Tax
TK. in„000
1,400,000
1,000,000
1,200,000
800,000
1,000,000
800,000 600,000

600,000 400,000
400,000
200,000
200,000
- -
2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013

The research is developed to identify the strategies that Berger Paints Bangladesh Ltd.
have used to establish themselves as the market leader of the paint industry of the country and
the report also seeks to recommend some suggestions for developing better strategies and
removing lacks for future.

Purpose

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. With
its strong distribution network, Berger has reached almost every corner of the country.

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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 aim of this research is to discover the
strategies that Berger Paints Bangladesh Ltd. follow to maximize the potential of their business,
the core competencies that they have, and form a research of the industry it belongs to.

Industry BPBL Belongs to

Berger Paints is one of the oldest names in the paint industry and one of the most
technologically advanced companies in the country. With more than 250 years of rich heritage,
Berger manufactures world class paints for all kinds of substrates.

Bangladesh‘s paint industry has been growing at a double-digit rate for the past several
years riding on the increasing demand from the construction sector. A recent study reveals its
market size based on demand is estimated at Tk 1,000 crore and domestic production capacity
Tk. 920 crore. Leading private commercial bank Prime Bank conducted the study. The demand-
supply gap, according to the study, is Tk 80 crore. The paint industry in Bangladesh is still
growing for which now RAK group a UAE based conglomerate is going to set up a paint factory
in Bangladesh. (Rahaman.S, 2010, January 24)

Only a few players Berger, Asian, Roxy, Pailac, Aqua and Elite etc. are operating in the
market with over 90 percent market share. The Prime Bank study shows Berger alone holds
almost half the market share, followed by

Companies Market Share (%)

Asian Paints 12 %
Roxy 10 %
Pailac 7%
Aqua 7%
Elite Paints 5%

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 Berger grew by 25 percent in 2008 and Asian Paints that entered the market in 2002,
grew by 50 percent.
Key products that hold the major market shares are: plastic emulsion, distemper, outer
coat (weather proof), synthetic enamel etc. Plastic emulsion and distemper are close substitute of
each other. Emulsion is basically used in high-end residence all over the country and distempers
are economy class products having a demand in semi-urban and rural markets. Weather coat is
growing very fast and presently hold 20 percent market share.

Industry Analysis

 Stages in the industry life cycle:

Paint industry right now in Bangladesh is experiencing a boom and is going through the
growth stage with only around 6 to 8 companies dominating the industry‘s market share. Back in
2010 the industry went through a double digit growth rate and is still continuing to become
bigger and bigger. From the past 10 years, a radical trend of urbanization has become a
significant issue in Bangladesh which is still increasing drastically. More and more people are
getting educated and are moving towards developed cities including the capital city, Dhaka,
which has the highest amount of immigrants coming in. By the year 2015 the expected

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population of the city is forecasted to be as high as 15.7 million. Upsurge in the demand of
shelter for living is giving the real estate companies the big opportunity now to seal their desired
profits these days. Single unit houses are being replaced by multi-storied apartments everywhere
due to the immense concentration of people living in towns nowadays. The real estate industry‘s
growth is in a word, exponential. Following all these factors, the colossal demand faced by the
paint and coating industries is very obvious to happen as painting and coating is a dire necessity
for the newly built constructions. As a result, the paint industry is not only growing in this region
of the developing economy but is also expanding world-wide.

Industry Structure

Figure: Approximate market share of paint industry companies in Bangladesh.

The paint and coating industry in this country is in a state right now where the major players
are few. Mostly, names like Berger Paints, Asian Paints, Elite Paints, Roxy Paints, Pailac Paints
and few others make up the paint industry of Bangladesh.

Amongst these, the gigantic share of market stays conquered by Berger Paints
Bangladesh Limited (BPBL) which is over 50%. Rest of the companies despite the overall
industry growth, still hold less than 10% of the market share each except Asian Paints which has
recently succeeded in capturing up to 20% of the market share.

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 So, it is quite apparent that the paint industry is being controlled by only a few numbers
of companies in Bangladesh where Berger Paints Bangladesh Limited is the major portion of the
industry. If 75% or more of the industry share was held by only one company, it would have
been monopoly. On the other hand, if at least two companies held most of the shares in the
industry, it could be labeled as oligopolistic. Therefore, with just somewhat more than 50% of
the market share owned by BPBL solely, the situation of the industry remains inconclusive and
can be described as somewhat between Monopoly and Oligopoly.

Industry Growth Analysis

Figure: Berger‟s five year profit growth till the end of the last annual year [Taka in 000].

The table above displays the profit earned by the biggest player in the paint industry,
Berger Paints Bangladesh Limited. Profit for the company in the past 5 years grew to BDT
281,258,000 which is an approximate increase of 49%. According to the semi-annual report so
far, the profit at the end of June 2014 amounted to BDT 599,303,000 which is approximately
70% of the previous year‘s annual income covered within only the half of this year. This

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indicates a towering growth of the industry as Berger comprises of more than 50% of the market
itself.

As per reports from sources like Dhaka tribune, the second biggest market share holder
right now, Asian Paints is already holding around 20% of the market share within 11 years of its
entrance in Bangladesh, and most importantly, this company‘s growth is challenging as well.
Overall it is clear that the paint industry in Bangladesh with its few components is facing a
growth that is significant as the major paint and coating companies are growing along with the
real estate industry.

Controlling Forces for the Profitability and Industry

Profitability

Industry profitability focuses on some of the following issues:

Development
of the Country

Buying Habit Consumer

of the Usage
consumers Behavior

Industry
Profitability

Ethical and
Consumer
Social
Demand
Responsibility

Advancement
of Technology

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Controlling forces for profitability for the paint Industry in Bangladesh are as follows:

Decorative
and
Protective
Consistent
Customer
Sales
Satisfaction
Growth

Controlling
Forces for
Profitability Adequate
Capacity
Logistics
and
Production

Quality of
Distribution Products
Network and
Services

PESTLE Analysis

Political:

The last year has been one of the most disturbing years for Bangladesh in the recent past
in terms of domestic political instability caused by strikes, blockades and hostility for months
which affected all sort of business including the paint industry as well. Products were transported
with much difficulty with greater risks and higher cost during political violence regarding the
election issue. Frequent changes of government and policymakers‟ lack of enthusiasm or failure
to implement development oriented policies is a huge problem for the paint industry, which is

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persistently changing in terms of technology. One thing which can be done is the market players
in this industry can maintain a good relation with the government so that the negative affect these
changes and fluctuations can be minimized which can be possible by having the government and
political parties by their side. Also, the tax system in Bangladesh is among the least effective tax
systems in the world, characterized by manual administration, low revenue and high levels of
corruption. Bangladesh has seen a rising trend in real GDP over more than past 15 years which
means that companies doing business in industries such as painting could do even better as with
rise in real GDP affordability and demand for normal products like paint is likely to increase.
However, the most obvious issue i.e. political instability such as changes in government, strikes,
civil commotion, extreme bureaucracy, corruption, etc. has always been a huge barrier which
affects such industries negatively.

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 Economic:

In the perspective of customers‟ buying power, in various ways Bangladesh is a poor

country. And with such low GDP per capita and a majority of the population under poverty level,
too much of the population, a more or less medium priced gallon of paint might seem to be
expensive for them. Also, due to political problems, The World Bank International Monetary
Fund, Bangladesh Bank (BB) and many experts have projected the gross domestic product
(GDP) to be lower than 6%, which is much below the target of 7.2% for FY2014. Reduced
growth will have negative consequences that might lower efforts for poverty reduction. Though
public investment has increased, private, domestic and foreign investments is yet disappointingly
low. However, this scenario might change as it is also true that Bangladesh is having an
increasing trend of GDP over several past years and income of people is also increasing slowly
which does opens up good opportunity for industries such as painting to do business here. The
composition of growth trend in Bangladesh suggests a positive shift towards a modern economy
with a little more drive hence it is likely to affect the paint industry positively.

Social:

The paint industry has definitely made an impact on the job market of the country,
different local and multinational paint brands taking in thousands of employees and creating new
career opportunities every day. Also, the demand for companies to act responsibly towards
society has increased day-by-day and several companies are acting in such ways, for example,
Berger paints has been organizing Young Painters; Art Competition for the last nine (9) years
and also introduced Young Architects‟ Award from 2003. The company regularly contributes to a
number of causes and social welfare institutions through donations and sponsorships. These
efforts results in a better image for BPBL, as minds of the general public, who are, after all,
consumers of their products. In this globalized era and deterritorialization of borders, people are
getting more exposed to various cultures, luxurious lifestyles, better products and services, etc,
this opens up opportunity of paint industry to flourish here with various kinds of paint products. .

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As Bangladesh is trying to uplift its economy, more job opportunities are opening up slowly and
hence desire to enjoy a better lifestyle and living conditions according to affordability is
increasing. So, by having products of various categories to satisfy people of various income level
consumers, good business can be done, and overall the move towards a global culture and other
social aspects including a deliberate growth in employment are likely to contribute positively to
the industry in the upcoming years.

Technological:

Technology is one of the most prominent factors in the industry. The value of the global
production of paints and coatings was about 13% higher in 2012 than in 2010. Demand in Asia
continues to rise faster than elsewhere in the world, and that region now accounts for nearly 50%
of global consumption but still Bangladesh does not have an infrastructure that allows for
research and development of large scale even though paint industries changes persistently with
technologies. However, recent drives to automate day to day activities have been taken by a
majority of paint brand companies for example; Berger has always been the most technology
oriented paint company of the country. It has the most modern state-of-the-art production
facilities installed in its Dhaka factory. Its Research and Development (R&D) and Quality
Control (QC) departments are equipped with the best technologies in this country. As discussed
earlier, the potential market and opportunity to succeed in this industry is likely to increase in
Bangladesh, however, as still no proper support is given from the technological side and as
Bangladesh is still lagging behind from this perspective, this affect negatively to the paint
industry in the following years.

Legal:

According to the Construction laws, companies are not allowed to use any materials that
bring harm to human life or environment. – But in reality, certain companies are buying out non-
brand or low budget paints which are creating a lot of environmental effects. There are middle
man in many situation who take advantage of the big projects and suggest or sell paints which
are harmful in the long run. Hence, the company is losing a lot of money in re painting those

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structures or buildings. For e.g. Navanagroup‘s director, Mr. Shubro NGL experienced such
scenario during 2002-2003. The construction business was growing at that time, and they were
buying paints in bulk amounts from different 3rd party, to make maximum profit he used to buy
non brand paints, so in the long run he experienced that he had to repaint those buildings again
after 2-3 years. Which, in fact, cause him a loss. This has turned out to be a major problem, as
this trait is limiting the number of potential paint market in Bangladesh Paint Industry. Top class
companies who buy branded paints, has to sell apartments at a high price, but they are not
bothered until people are appreciating the color.

The companies and consumers who are using Berger paint currently had to look for the
availability of the paint. Mostly the companies get the paints directly from Berger Paints. But the
consumers who want to paint their individual apartments or house had to look for hardware
stores. So, at times the paint is not available. Sometimes due to trade restrictions paints are
unable to get into the country through the port, and hence there are works hampers and lots of
other problems which effects negatively to the paint industry.

Environmental:

With increase in competition and awareness, paint companies are also trying to act in a
more eco-friendly manner to protect the environment for example, Berger is committed to
maintain the harmonious balance of eco system and therefore constantly seeks ways to
manufacture and produce products in an eco friendly manner. From its inception, Berger has
played a pioneering role in introducing new paint and paint technologies to the Bangladeshi
market. Other companies like Asian Paints approaches the environment issue from the
perspective of waste minimization and conservation of resources. Determined to reuse, recycle
and eliminate waste, Asian Paints' material losses in manufacturing have reduced substantially
over the last few years. Traditional paintingmaterials and processes can have harmful effects on
the environment, including those from the use of leadand other additives. Bangladesh in
agreement of a global resolution is contemplating to ban paints containing lead by the end of this
year. The household enamel paints are widely blamed for causing harmful effects in biological
systems. It has also been seen that the rules and regulations regarding environment protection

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can easily be evaded as there is still no strong enforcement; however, some firms are getting
more concerned about environmental issues to achieve sustainable development, which yet might
prove to be a bit more expensive operations that might affect the industry in a moderately
positive manner.

Thus from PESTLE analysis as the six industry factors give mixed results, it can be said
that the external factor will have a moderately positive effect on the industry.

Porter‟s Five Forces

Threats of New Entrants

Threats of new entrants in the paint industry are low as there are many barriers the new
entrant will face in setting up a new business.
Those barriers consist of:

High capital requirement

Huge amount of capital is required to set up new factory with working set of paint
manufacturing plant. One such set of plant which can produce paints up to 100,000 tons
annually roughly costs $50,000 as per one suppliers of machineries from China. And
there are also other machines required after producing the basic product paintlike the
container, labeling, weighting etc.

Existing companies in the market

Berger Paints, Asian Paints, Elite Paints, RAK Paints and many more companies are
already competing in the market. Now suppose a new investor opens up a new company,
it will be very tough to grab market share, where the existing companies are fighting to
grab a decent amount of share from Berger.

Knowledge about the product/market/industry

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 A lot of knowledge is required for commitment in this industry. Starting from sourcing
cheap raw materials while maintaining good quality, technological knowhow about the
production process to efficiently produce the product, and also being able to produce the
products within the industry average production cost to maintain a standard retail price.

Bargaining Power of Suppliers:

In the era of globalization there are thousands suppliers available over the world. A
supplier simply cannot charge whatever he likes. The company will find alternatives as they also
tend to have different department dealing with supply chain management and procurement. So
the bargaining power of the supplier is low.

Bargaining Power of Buyers:

There are lots of paint brands in the market. Different brands offer different benefits. The
customer has the complete freedom to choose from the available brands in the market based on
his/her needs. If the customer thinks that the brand he has been using in the past was
unsatisfactory he can easily switch as there is no switching cost. The same applies for pricing as
well. If one brand is significantly cheaper than another while maintaining a good quality, the
customer is more likely to buy the cheaper. So the bargaining power of the customer is very high
in the paint industry.

Threat of Substitute Products:

As previously mentioned, there is no alternative of paint if the consumers want to fulfill

their coloring needs. So there is no substitute of paints. Thus, the threat of substitute products is
low for paint manufacturing industry.

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 Intensity of Rivalry among Competitors:

The intensity of rivalry among competitors is high in the paint manufacturing industry.
Different brand offers different features/benefits to the consumers. One company opts for huge
collection of colors, one offers superior durability and another company offer lower price. Every
company is fighting to grab market share from its competitor.

Factors State Attractiveness

Threats of New Entrants Low Unattractive

Bargaining Power of Suppliers Low Attractive

Bargaining Power of Buyers High Unattractive

Threat of Substitute Products Low Attractive

Intensity of Rivalry among Competitors High Unattractive

Based on the analysis of the five forces in paint manufacturing industry, we say that the
industry overall is unattractive in perspective of new entrant to set up a new company.

Impact of Macro Environment on Porter‟s Five Forces

Technological Changes:

With the evolving technology new things are invented every day. As of now there is no
substitution for paints, but in the future we never know there could be new type of product that
will satisfy coloring needs.

Economic Conditions:

Economic conditions affect the buying power of the end consumer and also the rivalry
among the major players in the market. So any major changes in a country‟s economic

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environment can impact on the bargaining power of the supplier and also the buyer and change
the competitive scenario among the companies in the industry.

Legal and Political Factors:

Legal and political factors always involve a business in its operation. Government rules
and regulations have a substantial impact on potential new entrants. In a country like Bangladesh
where corruption is at a very high level, some may find it easy to enter a industry with the help
of lobbing and bribery and some may not be able to enter due to incompliance with the political
leaders or the political system.

Immediate, Impending, Invisible Competitors of “Berger”

Immediate Competitors:

Immediate Competitors

Asian Elite RAK Navana Roxy Aqua

Paints Paints Paints Paints Paints Paints

Asian Paints:
Core Competency:

Services:
 Colourpro 360 degree Service:
It is a 360 degree service offering that understands, simplifies, and decodes the
oftencomplex world of paints and colour.

 Royale Play International Designer Collections:

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 An exclusive rang selected from the latest trends in international décor with finishes
available only to architects and designers.

Products:
 Decorative paints:
Interior wall paints, Exterior wall paints, Wood surface paints, Metals surface paints.
 Industrial coatings:
Protective coatings, Floor coatings, Road markings.
 Ancillaries:
Wall primer, Acrylic Wall Putty, Exterior Wall Putty, Wood Primer.

Resources Capabilities Core Competency

 Industrial  Strong  Services
and Financia  Products
decorative l
coatings Position
 Painting  Operation
services and Worldwid
solutions e
 Skilled
Designers &
Employees

Strengths
Nationwide Coverage; AP‘s Logo;
Country Wide Distribution; Strong Dealership;
Pricing Strategy; Production-Marketing;
High Caliber HR; Corporate Reputation
Widest Product Range;
Inventory Control;
In-house Production;

Capabilities:
Strong Financial Position:
Asian paints have a turnover of more than Tk. 200 billion in 70 years.
Operation worldwide in 23 different paint manufacturing facilities
Well skilled designers& employees

Page | 25
Resources:
Asian Paints manufactures and markets industrial and decorative coatings. Along with
that the company also provides home painting services and solutions. The company's key
products and brands include the following:

Decorative paints:
Interior wall paints, Exterior wall paints, Wood surface paints, Metals surface paints.
Industrial coatings:
Protective coatings, Floor coatings, Road markings.
Ancillaries:
Wall primer, Acrylic Wall Putty, Exterior Wall Putty, Wood Primer.

Asian paints made a foray in automotive paints in the year 1997 with a joint venture with
PPG Industries. The joint venture is called PPG Asian paints. The company manufactures body
coatings and plastic coatings.

Paint brands owned by the company are: Ace & Apex, Apcolite, Apex, Apex Ultima,
Asian Paints, Color Next, Premium Gloss Enamel, Royale, Royale Play, Touchwood, Tractor
Emulsion, Utsav.

Strengths:
1. Comprehensive nationwide coverage of the market - urban, semi-urban andrural areas.
They have quite a number of brands, covering all segments and fillingall gaps. For
example, they have brands in different price slots like Utsav for rural lower-end markets
and Apcolite for high end-markets;

2. AP‘s logoGattu, an impish boy with the paint tin and brush, is most popular and easily
recognized;

3. Widest product range in terms of products, shades, pack sizes - 40 differentdecorative,

some in 150 shades, 8 different pack sizes;

Page | 26
 4. Unlike its competitors who concentrate only in urban areas, AP is found everywhere. It
has a country wide distribution;

5. A network of 13,000 dealers spread all over the country. The nearestcompetitor has less
than 8,000. For this, they have large network of regionaloffices and company depots and
sales personnel to service the nationwide dealer network;

6. Strong in inventory control. APs average inventory level is 28 days salesagainst 51 days
for the industry. AP has 45% edge in inventory carrying costs;

7. The pricing strategy is oriented to middle/lower end consumers;

8. AP is quite strong in production-marketing coordination. Their policy of offering tailor-

made products to suit customer need has resulted in an ever growing product range;

9. In-house production, no outsourcing, high reliability in suppliers, superior in quality

assurance;

10. High caliber human resource, employs maximum number of MBAs, as a proportion to
total number of employees;

11. Corporate reputation has been a major strength for AP. The image is that of a successful
and well-managed company. They have won many accolades and awards.

Weaknesses:
1. In industrial paints, AP has only a 12% market share. It is far behind theleader BPBL.
Since this is going to be the major growth segment in the future, a lagin this segment will
end up as a major weakness;

Page | 27
 2. Widening product mix puts strain on production distribution, accounting
andadministration;

3. Innovation in developing new products is not adequate;

4. AP has a major weakness on the technology front in industrial paints. Most paint firms
have technology tie-ups with manufacturers abroad.

5. Ever expanding product mix throws some strain on inventory management;

6. Seasonal demand and hence in off seasons it can lead to cash flow problems;

7. No tie up with foreign manufactures. Through it has units in severalcountries.

Why Asian Paints is an Immediate Competitor?

Asian Paint consists the second largest market share in the Bangladeshi Paint Industry.
They are financially strong and operating in the same segment as BPBL is currently existing.
Asian Paints targeting broader market segment than BPBL and they are offering a large number
of products to the customers. They are cost efficient.

Elite Paints:

Core Competency:
High quality product:

Marine Paint:

Ships and offshore structures are sensitive to briny air and sea water corrosion.
This category of paint is a highly specialized ecological coatings i.e., eco-friendly which
performs as a protective layer for ship parts, boat bottom and other offshore structures. It

Page | 28
 has eventually revolutionized the market for salt and fresh water hull coatings. This paint
offer all the advantages of foul-release, low surface energy (friction reduction), non-stick
coatings and solves the durability problems. Marine Paint can be divided in two
segments, one is conventional and the other is high performance type. These products are
being offered mainly through direct marketing approach and it is mostly concentrated to a
niche market such as, Dhaka and Chittagong dock yards, Bangladesh Navy, and
Passenger Ships, etc.

Resources Capabilities Core Competency

 Suppliers of  Marketing Mix  High Quality
Equipment  High Quality Product
Service  Competitive pricing
 Optimal utilization
of available
resources at all
times.
 Optimal use of
information &
technology.

Strengths
Customer Loyalty; Individualizing the Experience;
Brand Image;

Color Fest:

The uniformity of color varies from person to person, while the base may remain
the same. The shades define the personality while the usage defines the vision. All of us
have a distinct personality. So, while choosing the colors that will set the environment,
eventually have distinct shades in mind. Therefore, to find the distinct color, Elite Paint
brings in Colorfest – the country‘s most advanced POS tinting solution.

Opening up world of colors, Elite Colorfest offers a wide spectrum of shades.

From the ordinary to the extraordinary, from the eye catching to the subtlest of shades,
Colorfest has it all. Under this Brand Elite Paint offers four decorative products. They
are, Acrylic Plastic Emulsion, Synthetic Paste Distemper, Master Coat and Silky Finish.

Page | 29
 All these four new products give the walls a touch of elegant ambiance. Made with the
finest quality raw materials, Elite Paint Color fest products put forward a colorful
sophisticated atmosphere while ensuring highest durability and better coverage ever
offered. Hence one can choose color that steals the heart from Elite Paint Colorfest and
celebrate ones the vibrant world with color beyond colors.

Competitive pricing
Optimal utilization of available resources at all times.
Optimal use of information & technology.

Capabilities:
Elite Trade Painting goals and objectives are essentially to guarantee satisfaction.
Specifically, they have four basic rules that they follow:

1. Everything that should be painted is painted

2. Anything that should not be painted will not have paint on it
3. All lines are straight and surfaces smooth
4. At the end of the job, we leave a clean site and a high quality paint job (source)

For Elite‘s marketing mix, our client wishes to provide the service through online
means for the North Vancouverarea. They already service here, but believe that a proper
online presence would ultimately be beneficial. Simply having a website that is generally
representative, and also located for eastern Canada is not enough. For promotions, there
don‘t seem to be much of it going for the eastern website. There are no places to connect
with social media. Visitors shouldn‘t have to Google to check for Twitter, Facebook, etc.
Accounts—they should be immediately accessible through the website.Price of the
services is case specific, thus the ‗estimates‘ menu option.

Resources:
Main collaborators with Elite would be their suppliers of equipment, namely for paint.
They would likely be wholesalers, while suppliers of equipment would likely be

Page | 30
 merchants and manufacturers, depending on the life of the equipment and the complexity
of the tool being used.

Strengths:
‗Request an Estimate‘ and ‗Contact Us‘ pages give visitors a chance to commit to
the company. First coming into the site, there is even a separation those who are
customers and those who are interested in joining the Elite Trade Painting team. This is
the third stage of the Four Key Stages of Customer Relationship.

Elite‘s separation of customers from those who wish to join the team is an effort
in individualizing the experience. This delivers a more unique message than if everything
was put into the same site.

The Elite brand is presented strongly while going through the company site. It is
always in the top left corner, is well-sized, bold and simple. It is important to have strong
branding, especially when marketing in the global digital world, because people come
across many advertisements and thus logos every day. It is important to have one that
stands out so recollection of the company is likely in the future.

Weaknesses:
Taking from the Four Key Stages of Customer Relationship, the website can use
work on the second stage—―Exploration/Expansion.‖ There are a several pages on the
customer site, which is fine, but once a visitor has gone through three of the six pages,
they will probably start to notice a common theme—each page is really rather bland, with
little to no visual element and unexciting textual arrangements and conventional serif font
use. To encourage visitors to explore each of the six tabs, the first two, ‗About Elite
Trade Painting‘ and ‗Message from the President‘ should be the best pages that will set
the precedent for exploring the rest of them.

Page | 31
Why Elite Paints is an Immediate Competitor?

Elite Paint is currently enrolled in the same industry, targeting the same market segment,
and offering products for various demands of the consumers. They are offering various category
of products to their customers and have been competing to capture more market share.
RAK Paints:

Core Competency:
Largest Paint factory:
RAK Paints have one of the largest paint manufacturing factory in the country.

Green building

Capabilities:
Strong Distribution System
RAK Paints have been maintaining strong relationship with their distributors and
they have an organized distribution system.

Resources:
R & D Department
They have a strong R&D department who are developing their products and
coming up with the new innovative colors.

Page | 32
 Resources Capabilities Core Competency
 R&D  Strong  Large Paint Factory
Departmen Distribution  Green Building
t System

Strengths
Befitting Distribution System; Persuasive Brand Image; Quality Products;
Good Production Facilities; Incomparable Merchandising Performance.

Strengths:
Befitting Distribution System
Incomparable Merchandising Performance
Persuasive Brand Image
Quality Products
Good Production Facilities

Weaknesses:
Fluctuating Price Level
Because of the high cost of production and imbalance implementation of the
resources, their price have been fluctuating often.

High Cost of Own Product

They have been suffering from reducing their own cost of production for the last
3 years.

Page | 33
Navana Paints:

Core Competency:
 Distributor‘s Relationship
Navana Paints have strong distributor‘s relationship as well as strong distribution
channel as the organization itself is under the Navana Group which is one of the largest
organization in the country.

Capabilities:
In the umbrella of one of the biggest company in Bangladesh
Number of assets

Navana Paints have a lot of assets as this is the part of Navana group who are
strongly known for their high number of assets.

Distribution Channel
Because of the Navana Group, Navana Paints is having the facility of the
distribution channel.

Resources:
Financial Support:
They have strong financial backup from their parent company.

Human Resource
Navana Paints have been hiring some of the excellent employees who are
competent and qualified. These employees are working to minimize their expenses.

Page | 34
 Resources Capabilities Core Competency
 Financia  Number of  Strong
l Support Assets Financial
 Human  In the Backup
Resourc umbrella of  Strong Distribution
e one of the Channel
largest
hospitality

Strengths
Strong Financial Backup; Strong Distribution Channel

Strengths:
Strong Financial Backup
Navana Paints belongs to Navana Group who are one of the largest organization
in the country and they generate a huge number of profit each year. Navana Paints are
being benefitted by the investment of the Navana Group.

Strong Distribution Channel

The Navana Paints have strong distribution channel and they maintain strong
relationship with the wholesalers to retailers by offering them compensation.

Weaknesses:
Low Brand Image
Navana Paints have a low brand image as they do not focus on their marketing
department much.

Low Technology Advancement

Why Navana Paint is an Immediate Competitor?

Page | 35
 Navana Paint has developed a strong retailer and distributor relationship in the market
where BPBL is currently operating. Navana Paint is targeting the same market segment and
making their products for the same consumers as BPBL.

Roxy Paints:

Core Competency:
Creative Strategy for Advertising:
Creative strategies of advertising depend on advertising budget. Two considerations
may influence the strategy selection.

i. Whether the campaign is intended to maintain or to change market condition.

ii. Whether the campaign will communicate information imagery or symbolism.
iii. Utilization of the 1000 shades for decorating Paints.

The creative strategy is guided by target market and desired positioning of the product.

Resources Capabilities Core Competency

 Efficient  Decorative  Creative Strategy
Employee Product  Strong Distribution
s  Industria Channel for
l Product advertising

Strengths
Sales Force; Strong Distribution Channel

Page | 36
 Low Passive Strategy
Being a small manufacturer and products have lower cost feature than other
competitors Roxy paint is using this strategy. It indicates—
i. Low price
ii. Less risk
iii. Low expenditure
iv. Large volume of production
v. Large volume of sales
vi. Easy break-even point.

Capabilities:
Decorative Product
There are more than 1000 shades are already available.

Industrial Product
1. Epoxy Enamel
2. Coal Tar Epoxy
3. Epoxey Zinc Chromate Primer
4. Epoxy Red Oxide Primer
5. Roxy Aluminium Paint
6. Roxy Hammer Finish
7. Roxy Tennis Court Paint
8. Roxy Road marking Paint

Strong Marketing Department

Roxy Paints have direct marketing through email, official latter and phone to
persuade the target organization to give the order. Many construction and builder‘s
organization give order through mail or phone as well as their sales force.

Page | 37
Resources:
Efficient Employees:
Roxy Paints train their employees in a regular basis and provide them good incentives
on their performance.Roxy paint has a formal training program for sales people‘s
developments. The training program include:

 Type sales job.

 Size of firm
 Product complexity
 Experience of new sales people.
 Selling concept and technique.
 Product knowledge
 Territory management
 Company policies and operating procedures.

Above mention programs are helpful for sales people developments and then company
seek from trained people following output:

 Increase productivity.
 Improve morale
 Lower turnover
 Improve customer relation
 Enable better management in territory

Effective Marketing Channel

Their marketing channel is very high. They have good relations with the
wholesalers, dealers, and customers.

Page | 38
Strengths:

Sales Force:
Roxy paint used to the trade selling method to sales their products because of
product genre. This form of selling provides assistance and support to value chain
members rather obtaining sales. Marketing through wholesalers, Retailers, or other
intermediaries providing merchandising, logistical, promotional, and product information
assistance.

Distribution Channel:
Place is the very important fact of paint marketing. In case of paint market are
segmented by place such as city area, town area, semi town area and rural area. In city
and area customer seeks more synthetic paste distemper, plastic paint and weather coat
because of huge luxury building housing. In semi town and rural area customer more
purchase oil-based paint because of tin and wood based housing. Thus dealers also keeps
product according to their place. So distribution channel, sales team and overall
marketing department are working through place.

Weaknesses:
Lack of enough quality products
New products according to customer needs
Technology to fight with competitor.

Why Roxy Paint is an Immediate Competitor?

Roxy paint has a strong marketing department and sales force for which they are able to
capture the customer‘s attention. They are offering various categories of products for the same
customers of BPBL and operating in the same market.

Page | 39
Aqua Paints:

Core Competency:
Enamel Matte
Aqua Style Plus
Ice Today

Capabilities:
Online Facility
Industrial Coating

Resources:
Interior Products
Exterior Products
 Dealer‘s Information

Strengths:
Expert Advice
Superior technologies deployed to achieve maintain the competitive edge for eg. Supply
chain management system that integrates plants, regional distribution centers, outside
processing centers etc. hence they have strongest supply chain system with
They have maintained their brand name and increased awareness by unique ways of
advertising and roping in celebrities.

Page | 40
 Resources Capabilities Core Competency
 Interior Product  Decorative  Enamel Matte
 Exterior Product  Aqua Style Plus
Product  Industria  ICE Today
 Dealer‘s l Product
Informatio
n

Strengths
Expert Advice; Superior Technology; Brand Name

Weaknesses:
Limited market share in industrial paints segment
In decorative paints Industry Customer tastes and perceptions change very fast and
products may become obsolete with change in trends, hence production planning and
inventory problem.

Why Aqua Paint is an Immediate Competitor?

Aqua Paint is technologically advanced and they offer various sources of products to the
consumers that BPBL targets to. Their market segment is the same but they capture a very low
market share.

Page | 41
Impending Competitors:

Impending
Competitors

Pailac BD Adhesion Anchor Paints Fisco Bangladesh

Paints and Painters Products Industries Ltd (Paint Unit)
Chemical and Pvt. Ltd
Decorators

Pailac Paints and Chemical Co.

Core Competency:
 Quality
 Employee Efficiency

Why Pailac Paints and Chemical Co. is an Impending Competitor?

Pailace Paints and Chemical Co. offers good quality paint as well as glue, gums,
and other products. Their target market is not the same but they offer various categories
of products to all the markets related to paint industry and itself.

BD Painters and Decorators

Core Competency:
 Superior Service

Why BD Painters and Decorators is an Impending Competitor?

They provide superior service to the customer of paint industry as well as they
target the same industry with a very limited category of products.

Page | 42
Adhesion Products Pvt. Ltd

Core Competency:
 Number of Choices of Products for Customers

Why Adhesion Products Pvt. Ltd. is an Impending Competitor?

Adhesion Products Pvt. Ltd. offers the same market segment but different
products. Their main target is to provide adhesives to the paint industry as well as Berger.
Adhesion Products Pvt. Ltd. provides more products than Berger do in adhesive business
and Adhesion Products Pvt. Ltd. captured the more market in this adhesive industry
which is directly connected with the paint industry. They also offer low quality colors in
the market.

Anchor Paints Industries

Core Competency:
 Quality Product
 Superior Service
 Technology Advancement

Why Anchor Paints Industries is an Impending Competitor?

They provide superior quality and service to the customers of the paint industry.
But they have a very low market segment in the Bangladeshi Industry. Anchor Paints
have a strong financial backup from its parent company and they target the same
market as Berger.

Page | 43
Fisco Bangladesh Ltd (Paint Unit)

Core Competency:
 Cheaper Price
 Low Production Expenses

Why Fisco Bangladesh Ltd. (Paint Unit) is an Impending Competitor?

They provide product to the paint industry in a lower price targeting the lower
market segment. They have a very low investment in the business but operating in the
same industry as Berger.

Invisible Competitors

The invisible competitors of the paint industry are the few selective wallpaper companies.

Invisible
Competitors

Zero Inch Vaaz

Interiors Interiors

“Zero Inch Interiors”

Core Competency:
Keeping the Bangladeshi Flavor: Whatever they do they try to keep a Bangladeshi touch
to it

Page | 44
Services
Interior Design & Execution
Architecture
Furniture
Landscape
Graphics & Communication

Strength
Environmental preservation
Affordable dignified structures
Cutting edge designs expressed through the play of light upon the natural beauty of
materials
Sustainability is the key commitment of this firm of Architecture, Interior Architecture
and Graphic Designs.

Weakness
Less exposure in the market
Restricting itself only to the wallpaper product
Not much variety

Capabilities
Create distinctive designs and memorable interiors, producing highly satisfying results
for both the Firm and the Clientele
Follows the principle of function, beauty, economy and end results
Presenting design solutions that are both functional and aesthetical
Endeavor to create healthy, energy efficient spaces

Page | 45
 Why Zero Inch Interiors are our invisible competitors?

Firstly, they are doing great in the wall paper industry. Secondly, they have the
Bangladeshi flavor in their works which makes make them patriotic and differentiated. They
are very creative and also look out for the environmental issues.

“Vaaz Interiors”

Core Competency:

Consultation:
Vaaz Interior offers discussion for those clients not needing comprehensive
interior design services. They are ready to provide the best design solution backed with
sound design rationale to assist the consumers in creating that special environment they
have envisioned.

Services
Corporate Office Interior
Showroom and Office Interior
Apartment Interior
Kitchen Kabinet Interior
Imported Partition Installation
Glass Paper and Wall Paper Installation
All Type of Alluminum Works
Tiles and Electrical Works
Initial Design Consultation
Interior and Experior Painting Services
Space Planning and Furniture Planning
Color Consultations
Bathroom Remodel
Building Design

Page | 46
 Rajuk Approval Drawing

Strength
A breadth of products
Affordable custom design, inexpensive Training
Range of interior design and interior architectural services
20 years of designer work repertoire
High professionalism
High quality design

Weakness
Expensive
Only targets the prestigious market

Capabilities
Qualified designers
Quality products
Consultation with Clients
Many services

Why Vaaz Interiors are our second invisible competitors?

Vaaz are also doing well in the market, even better than Zero Inch Interiors. So, they
have a better chance of competing in the paint. They have a variety of services, a lot more than
other wall paper companies. If the good work is continued by the Vaaz interiors than they have a
pretty much a good chance of expanding/diversifying their business and come into paint
industry.

Page | 47
SWOT Identification:

Internal Environment

Core
Competencies
of Berger

Core
competencies
of competitors

Industry
profitability
factors

Strengths Weaknesses

Page | 48
 Figure: Matching Internal Analysis

Core competencies
of Berger:
 R&D
 Wide range of
products
 Quality
Strength:
 Greater Market Share
 Diversified Product
Industry profitability factors: Offerings
 Distribution Network  Excellence in Innovation
 Quality of Products and  R&D Department
Services  Technological
 Adequate Capacity Sophistication
and Production  The Brand Name
 Customer Satisfaction  Experience
 Decorative and Protective  Customer Service
 Cost Effective  Plant Capacity
 Consistent Sales Growth  Strong Financial Condition
 Consumer Demand  Efficient Supply Chain
 Advancement of Technology Management
 Ethical and Social  Ethical Practices / CSR
Responsibility Activities
 Consumer Usage Behavior  Good Profitability
 Development of the Country
 Buying Habit of
the Consumers

Weakness:
 High cost structure
Core competencies of  Lack of access to the
competitors: best natural resources
 Decorative Paints  High cost for importing
 Ancillaries raw materials
 Marine Paint
 Color Fest
 Largest Paint factory
 Green building
 One of the biggest company
in Bangladesh
 Over 1000 color shades
 Industrial Painting Page | 49
 Enamel Matte
 Aqua Style Plus
External Environment:

PESTLE
Analysis

Porter's Five
Forces

Opportnities Threats

Page | 50
 Figure: Matching External Analysis

Porter‟s 5 Forces
• Threats of New Entrants -
PESTLE: Low
• Political - Negative • Bargaining Power of Suppliers –
• Economical - Positive Low
• Social - Positive • Bargaining Power of Buyers –
• Technological - Negative High
• Legal - Negative • Threat of Substitute Products –
• Environmental - Moderate Low
• Intensity of Rivalry among
Competitors -High

Opportunities: Threats:
• Rapid rate of urbanization ▪ Political instability
• Rising Real Estate Business • Corruption
• Newly Emerging Festivals ▪ Low switching cost of Buyers
• Rise of New Consumer ▪ High competitive rivalry
Segments ▪ Emergence of invisible competitor
• Removal of international trade ▪ Possibility of new environmental
barriers regulations
• Loosening of regulations ▪ Slow Economic Development
• Arrival of new technology • Exposed to currency risk

Page | 51
 SWOT Identification at a Glance:

Strength:
 Greater Market Share
 Diversified Product
Offerings
 Excellence in Innovation
 R&D Department
 Technological
Sophistication
 The Brand Name
 Experience
 Customer Service
 Plant Capacity
 Strong Financial
Condition
 Efficient Supply Chain
Management
 Ethical Practices / CSR
Activities
Opportunities: Threats:
 Good Profitability
• Rapid rate of ▪ Political instability
urbanization • Corruption
• Rising Real I ▪ Low switching cost of
Estate Business N Buyers
• Newly Emerging T ▪ High competitive rivalry
Festivals E External
External ▪ Emergence of invisible
• Rise of New Consumer R competitor
Segments N ▪ Possibility of new
• Removal of A
environmental regulations
international trade L
▪ Slow Economic
barriers
Development
• Loosening of regulations Weakness: • Exposed to currency risk
• Arrival of new  High cost structure
technology  Lack of access to the
best natural resources
 High cost for importing
raw materials

Page | 52
Current Business Canvas

Key Partners

IT Partners:
Berger needs information technology support that consists of internet and hardware
which is provided by mainly three companies. Aamra Networks Limited provides the high
speed internet service as per Berger‘s requirements. Smart Technologies Limited provides
hardware support whereas SEP India provides them with both internet and hardware support.

Financial Partners:
Accounts of Berger Paints Bangladesh Ltd along with other core banking services and
letter of credits is maintained by Standard Chartered Bank (SCB). Third party accounts of
Berger are maintained by Citibank N.A. and Dutch Bangladesh Bank Ltd.

Marketing Partners:
Berger communicates its values and offerings on a massive level through creative and
mesmerizing advertisement campaigns. They use numerous mediums like television, radio,
billboards and all sort of print mediums for advertisements. The media and paper advertisements
are mainly created by Grey Advertising Ltd and Unitrend Advertising agency. Awareness
programs and social campaigns are carried out by a company named One Step as per Berger‘s
report. The advertising agencies come up with marketing ideas and submit the ideas to Berger‘s
marketing department. Then it is Berger‘s marketing department who chooses and approves the
advertisement ideas to be selected.

Page | 53
 Figure: Current Business Canvas of Berger Paints Bangladesh Limited.

Key Partners Key Activities Key Resources Customer Customer

- IT partners – - Manufacturing - Brand value and Relationships Segments
Aamra, SEP Paints. recognition - Launching - Decorative
India, Smart - Marketing and - Strong R&D campaigns Segments
Technologies Branding. sector - Organizing - Industrial
ltd. - Research and - Strong quality social events segments
- Financial Development of control programs and programs - Marine
Partners – SCB, paint categories. - Wide range of - Providing expert segments
City Bank N.A, - Maintaining products after sales - All other
DBBL relationship with - Financial services segments
- Marketing stakeholders resources - Incentives where paint
Partners – Grey - Striving overall to - Strong occasionally is needed
Advertising Ltd, attain greater distribution
Unitrend market share network
Advertising Channels
Agency - Eleven major
sales depots
across the
country in
eleven districts
- Sales done by
retailers and
dealers of paints

Page | 54
 Value Propositions
- Nation-wide
reach
- Diverse and
numerous target
segments
- R&D efforts to
provide safest
Paints
- After sales expert
services

Cost Structure Revenue Streams

- Agent Banks - Products
- Marketing and Advertising - Services
- Local and International suppliers and retailers - Events and Programs
- Fixed Costs
- Variable Costs
- Technological Support cost

Manufacturing Partner:
Becker Industrial Coatings Holding AB, makes up a joint venture with Berger to help
Berger manufacture coil coatings.

Key Activities

Manufacturing paints and vinyl for diverse purposes:

Page | 55
 Berger tries to cover all the areas that can be covered by their paint products. Their
product mix consists of decorative paints, industrial paints, marine paints, powders, coatings,
adhesives, textile products, auto refinish products, wood coating,pre treatment chemical, brush &
rollers. Thus throughout Bangladesh, Berger remains the number one company in terms of
coverage of segments and market share holding.

Marketing and Branding:

As mentioned earlier, Berger markets its offering through various mediums Television,
radio, billboards, magazines, print advertisements and marketing campaigns. They use all sort of
traditional and newly emerging technological or innovative means to communicate its message
to its numerous target segments. Whenever they find a region where their opportunity is
lucrative but demand is comparatively low, they put enormous amount of effort to create the
demand in those areas by marketing activities. The brand in the long run aspires to be the most
preferable customer delight and that‘s how they try to position the brand in customers‘ minds
through their marketing efforts.
Developing and Maintaining R&D platform:
The Research and development division of Berger is highly equipped with modern paint
testing equipment and analytical instruments. The activities performed by the department are
coming up with cutting edge researches, product and process development, providing technical
support to customers and manufacturing units. They also support the raw material procurement
teams by identifying alternate or new raw materials and by developing new vendors. Berger also
possesses technology tie ups with companies like Valspar (USA), Orica (Australia), DuPont
(France), and more.

Maintaining Relationship with Stakeholders:

Berger is very sensitive to complaints against their products or services as it positions
itself as the number one paint manufacturer provider of the country. This is why they respond
and communicate with their best efforts to hold onto their stakeholders. Dealers are provided
with incentives so that they distribute Berger‘s products in the way Berger wants. Customer
relationships are maintained by providing them superior services through their dealers and home
decors. If any complaints are received from the customers regarding the product they provided,

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immediately the R&D team rushes to the place where their product has been used and they
collect samples of the product to research and find out the cause of the quality mismatch.

Striving overall to achieve a greater market share:

Within the next 5 years Berger Paints Bangladesh limited wants to increase their revenue
with 100% and they are basically taking all sort of measures needed to achieve this goal.

Key Resources

Brand value and recognition:

Since its arrival in Bangladesh in 1980 Berger has successfully captured the top position
in the paint industry and is still the biggest paint manufacturer and provider of the country.
‗Berger – Color it!‘ motto is harmonizes with any painting or decorative project all across
Bangladesh for every place where paint is required.

Strong R&D sector:

As discussed earlier, Berger possesses high expertise through its qualified personnel and
high tech equipments in their research and development division. By this they develop their
products, come up with various product lines and mixes. Within the paint category they have
profuse number of paint categories which are manufactured for different weather conditions and
surfaces. These are all products of intense research and development expertise.

Strong Manufacturing and Quality control:

Berger Paints Bangladesh Limited manufactures its products in manufacturing plants
located in Dhaka and Chittagong. They import high quality raw materials and manufacture their
products using effective and efficient machineries which are high tech in nature. After
manufacturing the paints, heavy quality control test are undertaken with their advanced methods
to verify if there‘s any deficiency in quality of the produced material.

Wide range of products:

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The wide range of paint categories according to use of paints is a strong product line and
resource that they Berger possesses.

Financial resources:
Berger Paints Bangladesh Ltd. excels in capturing the biggest market share of every product
category they hold onto. Each year‘s revenue and profit is increasingly and they are aiming for
100% increase in revenue within the next five years. Thus their financial resources are very
strong and investments are high overall.

Strong Distribution Network and countrywide reach:

The distribution of products is done through numerous dealers and eleven main sales depots
owned by Berger in Multiple districts like Dhaka, Chittagong, Rajshahi, Borga and more.
Through this wide network, Berger successfully covers almost all the corners of the country.

Value Propositions

Nation-wide reach of product and services:

Eleven sales depots located in separate districts carry the products of Berger to almost every
edge of the country through huge number of retailers. This makes Berger‘s paints available and
easily accessible to its consumers.

Covering all possible range of segments:

The offerings of Berger diversify into every sphere of the industry, from decorative paints to
industrial, marine and powder coatings. For each segment of consumers depending on the
demographic, geographic or industrial factors, the demand comes as requirement of the target
segments. The response to all these demands are made by providing the target segments the
appropriate category of paints they require. For instance paint needed for a ship and the paint
needed for a school is not the same, as is manufactured per requirement.

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 R&D efforts to provide safest paints:
Chemicals that pose health hazards from paints are avoided best by Berger with the help of their
R&D efforts. They strive to create the best mix of paint and as well as paint that is safe for
human beings. Factors like harmful chemicals or unpleasant smell from paints are finely
eradicated through R&D efforts and quality control.

After sales services:

If there is ever any form of deficiency in the paints sold to the consumers, Berger‘s R&D team
immediately collects the sample of the product with defect and tests those to figure out the cause
of the problem. Customers are also provided with quality replacements afterwards.

Overall View of Value Proposition:

Berger Paints Bangladesh Limited, being the biggest painting company of the country, holds a
share of more than fifty percent in the market. It grew to such huge stature by capturing value
from customers and by providing value to them. Berger recognizes its diverse amount of
customer segments from all over the country and strives to fulfill their needs according to the
demands specified by each segment. Just with the name itself, Berger is recalled before any other
name in the country because of its strong brand value and image. The world class research and
development division of Berger experiments and guides the production of different categories of
paint needed for different purposes and segments. Demand itself is created by Berger‘s
marketing efforts through its dealers in regions they need to cover. High quality of product is
ensured by quality control tests after manufacturing and safe paints that are not hazardous or
irritating to human beings are marketed while quality remains superior. After sales services
regarding any defect, shortcoming or inefficiency of product is given to the customers
immediately. Berger also tries to communicate a superior value it provides, which is lead free
and environment friendly paints.

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Customer Relationships

Berger Paints Bangladesh has a huge consumer base as already mentioned in the
previous sections. They maintain strong ties with customers by providing expert services both
before purchasing and after purchasing their products. The services like the ones which Berger
Home Décor provides help maintain good relationship with customers by understanding and
responding to customer specific needs and serving according to the requirements. Sales
incentives are often given. Various campaigns like art competitions for handicapped children,
free coloring of street islands and many other events and programs are sponsored by Berger to
provide the customers both the emotional appeals and product category benefits. A lot of
industries need constant supply of paints. Incentives for high volume purchase is given to them
and through actions, the overall quality control and superiority of Berger paints is always
communicated over and over to their customers. Some major events and programs recently
carries out by Berger are:
 Regional Program for Berger‘s dealers and their families.
Contribution for Welfare of autistic children.
Berger Award for Excellence in Architecture.
Berger Diamond Jholok Scheme. (An attractive scheme titled for valued dealers)
 Berger Paints National ‗A‘ Chess Championship.

Channels

Berger Paints has their main manufacturing plants in Dhaka and Chittagong. For the distribution
of the products, an overall of eleven sales depots are there in the entire Bangladesh. The
locations of these depots are strategic locations which are Dhaka, Chittagong, Rajshahi, Khulna,
Bogra, Sylhet, Comilla, Mymensingh, Barisal, Rangpur and Feni. These depots help and in fact
enable them to cater to all the parts of the country. Various retailers and dealers are used to sell
their products and the coverage is almost as near strong as reaching all the corners of the
country. Home Decor service outlets are also located in some Urban areas which provide
customers with expert home decorating ideas and designs and also provides products needed for
decoration.

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Customer Segments

Berger serves numerous market segments to co-operate in the interest of the overall company
in a manner that is socially responsible. To make the segmentation simpler we can say that
the major segments consist of three parts, which are Decorative, Industrial and Marine.

Around more than 80% of the segment consists of the decorative segment whereas the
industrial and marine covers around 15% and 5%. So it is evident that the major focus of the
company is on the decorative segment which generates the biggest portion of revenue for
Berger and this segment consists of homes, offices, schools, malls, etc. As Berger market
share in the synthetic enamel category is increasing gradually, its continuing success will
result in significant growth of the overall market share of the company. This enables Berger
to fight its competitors with a strong ground to stand on

Cost Structure

Fixed Costs:
As a paint manufacturer, Berger has to incur a lot of fixed cost coming from land,
equipments, rent and all the costs associated with manufacturing and running the
company.

Agent banks:
Banks that control the accounts of Berger and all its affairs have to be paid for their
services.

Supplies from exporters from abroad:

To provide superior quality, Berger imports raw materials that make up the ingredients
for them to manufacture paints which are of international standard. MITSUI, MOBIL,

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 DUPONT, BASF are examples of companies which provide them with raw materials
from outside the country. So, these exporters forms a big part of the cost structure.

Supplies from within the country:

There are abundant suppliers of necessary materials within the country as well for Berger
for whom costs are incurred. Padma Oil for example, due to their massive reserve and
comparatively lower price, supplies Berger with oil.

Wages and Salaries:

Employee wages and salaries plus incentives are costs for Berger.

Advertising agencies:
Good amount of payment is required for the advertisements created by advertising
agencies.

Dealers/Retailers:
Costs incurred in capturing good relationship with dealers and creating channels through
them. Incentives are also given at times.

Technological Support Providers:

Berger has a wide variety of sectors where technology is more than vital. To support
these technologies, Berger also has to incur high costs.

Revenue Streams

Products:
Berger‘s major revenue streams come from their products. Selling of various categories
of paints makes up the biggest portion of the revenue. Along with these Berger also sells

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products like paint brushes and adhesives. The selling is carried out by the dealers in each
district and to all the consumers of the decorative, industrial and marine segments.

Services:
Berger‘s revenues also flow in from their Home Décor services where expert advice and
designs ideas are provided by the personnel.

Events and Programs:

As mentioned earlier, Berger organizes and sponsors a lot of events, competitions and
programs, most of which are to create awareness. But some of these, as aired in
televisions and purchased by audiences, do generate few revenues for the company.

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Current Business Model of BPBL

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Core Competency:

` Berger‘s core competency is made up of Research and Development, Wide Range of

Product and Quality.

Research and Wide Range Core

Quality Competenc
Development of Product

The reason Berger became this huge company which everyone recognizes and also
recalls whenever they are thinking about paint products is due to the core competency. Firstly
their Quality is just the very best available in the market. The competitors of Berger cannot
simply match the quality of their paint products. They use the most advanced equipment in their
production facility as well as top quality raw materials from abroad to ensure the quality is not
compromised at any cost.

The next component is Research and Development. With the bright minds working for
their R&D, Berger is able to innovate new products every now and then to satisfy a different
needs of the customer.

The range of products available from Berger, specially the paint products is very wide.
Starting from paints for interior surfaces to exterior surfaces to wood, metal and etc. This unique
benefit is only provided by Berger. No other competitor is able to provide customers with such
wide variety of products for each of their needs.

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Corporate Level Strategy:

Mission Statement:
―We shall increase our turnover by 100 percent in every five years. We shall remain
socially committed ethical company.‖

Berger

Vertical Horizontal Strategic Strategic

Diversification
Integration Integration Alliance Outsourcing

Marketing
IT Services
Services

Vertical Integration:
Berger Paints Bangladesh perused Backward Vertical Integration strategy. They acquired
the company Jenson & Nicholson Bangladesh Limited (JNBL). JNBL used to be a trader and
indenter of paint raw materials. JNBL also produced and marketed tin containers and painting of
tin sheets. So this subsidiary now helps to pack the paints produced by Berger into the tin
containers.

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Horizontal Integration:
Berger formed a joint venture in association with the company Becker Industrial
Coatings Holding AB from Sweden. The newly formed joint venture is called Berger Becker
Bangladesh Limited. Becker is a manufacturer of high quality coil coatings and Berger formed
this joint venture to endeavor excellence and better service for the company.

Strategic Alliance:
Berger formed strategic alliance with the American company PPG Industries. PPG
Industries is the market leader in its origin country. They operate using the leading edge
technology to develop their products. The strategic alliance gives Berger the exclusive right for
distributing PPG Industries‘ paint solutions for vehicles. The brands distributed in Bangladesh
include NexaAutocolor, Bilux, ACS and V-Fleet.

Strategic Outsourcing:
In order to maintain the best quality, Berger gives its full focus on the production of the
core product. Many of their other value adding activities are outsourced to different
organizations that are specialized in doing those specific job.
IT services:
Some of the technological specialties required by Berger are outsourced. Those services include
Internet based IT service, hardware support and etc.
i. Amra Networks Limited
Amra networks Limited is a company that specializes in giving Internet, IT and
hardware based services. Berger outsources many of their IT and hardware related
tasks from Amra Networks.

ii. Smart Technologies BD Limited

Smart technologies BD Limited is large company that sells computer hardware to
home users and corporate clients. They also offer specialized services for corporate
clients. Berger outsources some of their IT and hardware related services from Smart
Tech.

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 iii. SEP India
SEP is a company operating in India that serves corporate clients with IT based
activities. SEP fulfills some of Berger‘s IT and Internet based service requirements.

Marketing Services:
Berger outsources many of their marketing activities to 3rd party. These activities include making
of advertisement and public relations activities.
i. Grey
Grey is an independent advertising firm that specializes in making creative
advertisement for different organizations. Berger‘s marketers prepare the marketing
program/campaign and then Grey makes the advertisement based on Berger‘s
requirements.
ii. Unitrend Limited
Unitrend is an advertising firm. Just like Grey Berger produces many of their
advertisement from Unitrend Limited.
iii. One Step Limited
Many of Berger‘s public relation activities are organized by One Step Limited. Those
activities includes arrangement of art competition, making awareness of the brand etc.
iv. Uttara Colors
Berger outsources some of their marketing and public relation activities to Uttara
Colors. Uttara Colors makes novelty products like T-Shirts, Calendars etc.
incorporating Berger Brand name.

Diversification:

Berger is known for its top notch paint products for verity of surfaces and is also the
market leader in Bangladesh Market. While being successful in the paints industry, Berger
Bangladesh decided to expand their product range from paint to other new products. They
include:

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PowerBond:
In 2007 Berger introduced a new brand named PowerBond which consists adhesive products.
These adhesives are used primarily for furniture.

Feather:
Berger introduced painting brush in 2009 and painting rollers in 2011. These products are
marketed with the brand name Feather.

As Berger is now not only in the paints industry but also diversified into other products
like that are related to paints like brush and rollers and unrelated products like furniture
adhesives, we can say that Berger perused both Related and Unrelated Diversification.

Relationship between Corporate Level Strategy and the

Mission Statement:

As per Berger‘s mission statement, they want to increase their turnover by 100% every
five years. In order to accomplish that, Berger diversified their business into new industry to
generate more revenue. The introduction of painting tools and adhesive products definitely helps
them increase the revenue they used to get just from selling paint products.

Business level strategy

An organization uses its core competencies to satisfy customer needs and preferences to
achieve above average returns. This process is done by creating a value chain, which is done at
the business level and is a part of business level strategy. Business level strategy focuses on
actions to provide as much value as possible to its customers to gain competitive advantage by
exploiting the core competencies in specific product market.

Berger‘s core competency is made up of Research and Development, Wide Range of

Product and Quality.

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 People of Different
Who? Bangladesh needs

What? Painting and

Key colouring
issues
Diversified
How? products
Broad market Quality
Differentiation
Generic strategy Differentiated
product range Innovation
B.L.S.
High quality and
innovative products
Value Quality as
creation excellence Customer
responsiveness Huge
frontier
investments
Increase
Business Life- sales
level cycle Growth Grab market
strategy stage share
Huge
competition

Value Satisfied
Diversified chain
product customer
Several range
B.L.S.
All over
Market penetration
Bangladesh
strategy

Product development
ANSOFF matrix strategy
Market development
BCG strategy
matrix Diversification
Star strategy
High growth rate
High market share

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Key issues of business level strategy

There are key issues of business level strategy which are concerned about the customers
of an organization and satisfying customers is the foundation of successful business level
strategies. Therefore before discussing about the strategy of Berger (BD), key issues are
discussed below:

Who will be What needs will How those needs

served? be served? to be satisfied?
•People who needs •Needs of painting •Diversified product
painting solution and colouring surface line
•With different types •Quality
of needs •Innovation

1. Who will be served?

The ultimate objective of Berger is to ensure that it provides painting facilities of different needs
and requirements to entire Bangladesh – to its people. Berger has wide range of products (paint
being the core product and paint brush and roller and adhesive are in line) and services available
for all the people with different needs. In fact, today, when painting comes into consideration,
people first think of Berger. But it is the price of the paint which is comparatively higher than its
competitors and this creates a barrier for low income group to cross. This is comparative high

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price sometimes eliminates the low income people from being served. Otherwise the paint is
available for anyone who can afford it.

2. What needs to be satisfied?

Berger wants to fulfil the painting needs of people across the country utilising its resources,
R&D, innovation, customer service etc. Berger‘s theme is to paint Bangladesh – in other word to
supply all people with paint whenever painting a surface comes into consideration. It is also that,
unlike most of the paint manufacturer in Bangladesh, Berger has differentiated products and
services, which helps the company to serve the customers with even more options.

3. How those needs to be satisfied?

Berger has the best supply chain management as far as paint manufacturing industry is
concerned. Through its strong distribution channels and dealers, Berger is capable of reaching its
customers easily than any other paint manufacturers in the country. Availability is not the only
way to satisfy the needs for paint but the company‘s innovation, R&D, customer services help
the company to satisfy the customers and hence satisfy their needs.

Generic Business Level Strategy

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 Fig: Five Generic Business Level Strategy
Berger is serving a broad market, in fact, the entire Bangladesh – including consumers
and business consumers, using its capabilities to create value for customers on an industry-wide
basis. Among five generic business level strategies, Berger falls under differentiation strategy
as the company is well capable of differentiating its products in terms of quality and wide range
of products and customer service through Berger Décor and serving a broad market. Serving a
broad market with differentiated products and service is, of course, a competitive advantage for
Berger, which puts the company ahead of all the available competitors in the market.

The distinctive competencies include superior brand recognition and country wide supply
facilities and dealers all over the country. Berger is well known for its R&D and innovation
through which the company is capable of bringing in new products with time and improving
quality. The company also provides customized painting facilities through its customer center
Berger Décor and all these make Berger a differentiator in the market, capable of serving the
entire nation better than any other companies in the market. Since the price of Berger paints is
comparatively higher than the competitors‘, it cannot fall in the cost leadership strategy despite
being a large company in the industry. Broad market includes those people who prefer quality,
personal designing option and who can afford it. Berger was capable of capturing and serving the
broad market by means of intensive marketing both at consumer level and business level.
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Competitive position and value creation frontier

Fig: Value Creation Frontier

Berger being the differentiator in the generic business level strategy occupies the position
in the value creation frontier which is termed as quality as excellence. This is such a position in
the frontier where Berger falls as the company is capable of providing high quality paint and
services, respond to customer needs faster than any other firms in the market with their
innovative and diversified products and excellent production facilities. All these together are
helping to create a value which no other company in the country has capability to attain with
their current resources and strategy. So this position surely puts Berger in a much higher position
in the market.

Industry Life cycle

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 Fig: Stages in the industry life cycle

Paint industry right now in Bangladesh is experiencing a boom and is going through the
growth stage with only around 6 to 8 companies dominating the industry‘s market share. Back
in 2010 the industry went through a double digit growth rate and is still continuing to become
bigger and bigger. From the past 10 years, a radical trend of urbanization has become a
significant issue in Bangladesh which is still increasing drastically. More and more people are
getting educated and are moving towards developed cities including the capital city, Dhaka,
which has the highest amount of immigrants coming in. By the year 2015 the expected
population of the city is forecasted to be as high as 15.7 million. Upsurge in the demand of
shelter for living is giving the real estate companies the big opportunity now to seal their desired
profits these days. Single unit houses are being replaced by multi-storied apartments everywhere
due to the immense concentration of people living in towns nowadays. The real estate industry‘s
growth is in a word, exponential. Following all these factors, the colossal demand faced by the
paint and coating industries is very obvious to happen as painting and coating is a dire necessity
for the newly built constructions. As a result, the paint industry is not only growing in this region
of the developing economy but is also expanding world-wide.

As far as investment is concerned, Berger is making huge investments in R&D, product

development, quality, customer services and distribution channels to grab more market share and
increase sales.

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 Fig: ANSOFF Matrix

According to the ANSOFF Matrix, Berger follows all the strategies depending on the
market condition and products‘ stage in the life cycle.

When the products already exist in the existing market, Berger follows market
penetration strategy where mostly it tries to reduce the price of the products and give discounts if
needed both to the consumers and dealers and suppliers. Marketing plays an important part in
this strategy.

When the product is new and Berger wants the existing market to experience the new
product, it follows product development strategy. In this strategy, Berger goes for intensive
marketing both at consumer and business level. For Berger promoting a new product in the
existing market is not that hard job for it has a very good brand image in the country.
Berger follows the market development strategy when it tries to enter a new market segment
with its existing products. Developing a new market is always a tough job but for Berger with its
brand image and reputation, the task becomes comparatively easy.

Finally when entering a new market with a new product comes into consideration, Berger
follows diversification strategy. Highlighting or emphasizing on diversified or differentiated

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products becomes the only option not only for Berger but for any company when they try to
enter a new market with a new product.

Fig: BCG Matrix

The BCG Matrix is based on the product life-cycle theory. The product life cycle of
Berger is in the growth stage with huge potential for the company to increase its sales and
capture even a greater market share. Bangladesh is a developing country with a GDP growth of
above 6%. So there is always a good opportunity for Berger to grow even further and maximize
its potential. At present, Berger is having both high market shares (55%) and a high growth rate
– which is way more than its competitors. It is also that Berger is continuously innovating,
coming up with new products and services all the time which is helping the company to get
greater market share easily. So in the BCG Matrix, Berger is labeled as a star where it is using
high cash as investment and generating high return.

Considerations at the business level strategy

After analyzing the Porter‘s Five Forces, after doing the STEEP analysis and identifying
and then keeping in mind the strengths, weaknesses, opportunities and threats (SWOT) and of
course exploiting the core competencies and capabilities, Berger, like any other well established
businesses, formulate its business level strategies. One of the main stages of business level

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strategy is to formulate the value chain in such a way so that it is capable of creating a high
perceived value in the minds of its customers.
Porter‘s Five Forces, STEEP analysis, SWOT analysis were discussed earlier so are the core
competencies and capabilities. Value chain has also been discussed earlier.

Business
Level
Strategy

Porter’s Five Core

STEEP Analysis SWOT Analysis Capabilities
Forces Competencies

Value chain

Value Chain

As value chain is formulated, Berger gains some competitive advantage over its competitors.
This value chain is also capable of differentiating Berger in the intense competition that exists in
this market.

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 Sources of competitive advantage for Berger:
 R&D
 Continuous innovation
 Customer services
 Quality
 Distribution channels
 Environmental friendly paints
 Wide market coverage

Customer: their relationship to business level strategy

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 New and diversified
paints

High quality

Competitive Satisfied
Value Chain
Advantage customer
Innovative painting
solutions

Customer services

As a result of being good enough to exploit the core competencies, using the strengths and
capabilities and formulating a value chain, Berger is capable of creating a satisfied customer
base. Customers are satisfied as they are getting new, well diversified paints solution with high
quality and innovation. The R&D of Berger is always concerned about its customers‘ desires and
expectations. The customer service that Berger provides is also a major source that helps to
maintain satisfaction of the customers.
Using the strengths, capabilities and the core competencies, Berger has created a value chain for
which it has a satisfied customer base. But since it is never certain to keep this forever, Berger
needs to consistently monitor its strategy. The value chain is also created keeping the
weaknesses, opportunities and threats in mind. To gain from opportunities and remove the
weaknesses and overcome the threats few changes need to be made at the functional level
strategy.

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Business level strategy helping to achieve corporate level
strategy

The vision of Berger is ―To be the most preferred brand in the industry ensuring consumer
delight.‖ To fulfil this vision, strategies are formulated in the corporate level. And business level
strategies are formulated to help achieve corporate level strategies and hence achieve the vision.
At the corporate level, both unrelated and related diversifications have been made. As a result at
the business level, the managers have to concentrate on the related (painting accessories and
tool) and unrelated products (adhesives) besides concentrating on its core product which is paint.
Although selling the other two types of products other than the core product is not that easy, the
business level strategy is formulated in such a way to make them competitive products in the
market beside its well established paint. At the business level, Berger has to concentrate on its
backward integrated firm as well, which again a decision is made at the corporate level. A good
relation is needed to be maintained for the backward vertical integration made. Berger is also a
sole agent of automotive paints so Berger is also responsible for selling this and creates
competition for this product as well. Different business level strategies are needed to be
formulated for each of the products and hence comply with the corporate level strategies.

Functional Level Strategy

To provide varieties with an affordable price it‘s what the customers look for when they want to
purchase and also when they want to purchase again. Berger is a company that provides many
color variations and designs beyond imagination, and this makes them stand out in the market.
Berger is the heart of the color company, they produce all kinds of paints and it is known that
Berger has been the pioneer company in producing them. The paints include ―Color Bank‖,
―Superior Marine Paints‖, ―Textured Coatings‖, ―Heat Resistant Paints‖, ―Roofing Compounds‖,
―Epoxies‖, and ―Powder Coatings‖. Berger mainly has eleven (11) depots around Bangladesh.
They are located in Dhaka, Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Comilla, Mymensingh,

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Barisal, Rangpur, and Feni. These selected areas have enabled Berger in providing their product
all over Bangladesh through various dealers/retailers.

The question may arise why Berger has been doing so well in the market and keeps on
doing the good work. The answer is simple, they study the market. Berger studies every area and
looks what kind of product each area is looking for, what is highest amount of price they are
willing to pay. Berger has made it easy for the consumers by making the things available for
them. The availability of Berger product is inevitable.

Berger products can be found in areas which are posh and also in areas which are
mediocre. The distribution system of Berger is very good. This allows Berger to capture their
market, and maintain reliability. Another strategy they can implement is economies of scale.
This helps them achieve lower cost of production and can restrict any new entrant.

Berger mainly makes transaction with the Dutch Bangla Bank. Berger main account is in
the Standard Chartered Bank.

Berger maintains a certain standard, that their products are similar across the globe. This
ensures quality everywhere.

Divisions and Departments of Berger

Management Division:

Management division of Berger is comprised of 5 units:

Corporate Strategy and Decision Making wing

The corporate people take the decision what needs to be done and what is needed to be
done. They take all the necessary decisions.
Corporate Affairs

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 Berger needs to keep in touch with higher officials to keep their operation running
smoothly. The corporate affairs deals with the necessary communications needed to operate the
company.

Market
This division deals with all the brand management and promotion activities of the
company. How the Berger is performing in both outdoor media and indoor media.

Service development and Management

This unit concentrates on how they can develop themselves on their facilities which they
are providing.

Corporate Sales
How much sales Berger is making are in hands of the corporate sales department. This
department also helps in making assumptions for future sales that Berger can anticipate.

Marketing Division:

The marketing division consists of mainly three divisions

 Product Development teams:

Berger has invested in R&D more than any other manufacturers belonging to the
same industry in the county. It selects the raw materials from some of the best known
names in the world: MITSUI, MOBIL, DUPONT, HOECHST and BASF etc. The
superior quality of Berger‘s products has been possible because of support from its
advanced plants and an international-standard of strict quality which has been maintained
by their product development teams. The teams continuously carries on R&D for:

 Development of new products and up-gradation of existing products

 Cost reduction without affecting quality
 Development of environment-friendly products
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  Adaptation and reproduction of collaborator‘s technology
 OEM specific products.

For the continuous effort of the product development team, the company was
benefited in various ways such as, Introduction of several new products in the area of
Automotive, Powder Coating, Protective Coating and Architectural Coating. (Annual
Report 2013-2014)

 Media and Creative Teams:

Berger has built up its image through advertising (TVCs, RDCs, billboards, print
medias, etc), sponsoring different social and cultural activities. They themselves do not
have any significant media teams; after developing a new product when they find it
necessary to communicate to audience and promote it in Bangladesh, they take help from
some of the firms for media s such as, Grey, Unitrend, who designs and creates
advertisements for promoting Berger and their products and then Berger selects the
desired advertisement. Also, for handling certain PR activities such as creating social
campaigns or awareness programs Berger takes help of One-step.

Marketing Strategies:

They make strategies on depends STP (Segmentation, Target market selection

& positioning) so first it segments its market on the year basis (October to June is peak
season and July to September is the lean season for the paint industry in Bangladesh,
which is related to weather conditions) and then product basis. Decorative is the main
product of Berger, it contributes most to their total revenue. Then they select their target
market. After selecting market they position its product by product differentiation,
service differentiation and image differentiation. Their basic Segmentation, Target
Group and Positioning are as follows:

Segment Anyone who can afford their product

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 Home owners, Professionals, Industry Users, any group who might
Target Group require paint and their related product

Positioning Fulfill your imagination of colors

 Berger also does Product differentiation on the basis of size, shape, color shade,
convenient size of their paint container, plastic container and so on.
 They also differentiate their service by ease of ordering and customer consulting and
delivery :
o With a view to bolstering consumer satisfaction, Berger Paints Bangladesh
Limited has introduced ―Berger Home Décor‖ on June 15, 2002 through which
one can get an array of services pertaining to painting. (Report on Marketing
Strategies of Berger Paints Bangladesh Limited)

8ps in Marketing

Product:

The product range of Berger includes: Decorative, Industrial, Marine, Powder

Coating, Adhesive, Textile Products, Auto Refinish, Wood Coating, Pre Treatment
Chemical, Brush & Rollers, Mr. Expert Construction Chemical, Breathe Easy.

Berger markets both water based and solvent based paints in our country. Beside this
Berger also market Cement paint which can be used for exterior wall coating. In addition to
that Berger also markets small quantity of powder coating paint. Paint can be divided into
various types by considering different aspects.
 Painting is mainly of three categories: Decorative (exterior/interior), Industrial, Marine
 From the application sequence, paints can be categorized as: Primer, under coat, finish
coat
 Paints can be divided into two categories according to thinner/ solvent usage: water-
based, solvent-based

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 The famous brands of Berger are given below: it is to be noted that all these are market
leader in their respective category:

Berger Paints Produces decorative, industrial, marine, coatings along with

binders/different polymers (for paints and textile industry) and adhesive in its two factories
located in Dhaka and Chittagong. The factories employ modern technologies for the purpose
that includes automatic and semi-automatic production and filling lines. Production and quality
testing machine from famous makers in Asia, Europe and America ensures precision of
operations and enviable quality of the product. Raw materials of consistent quality from
renowned brands are being used and the best of theprofessionals in the industry oversee the
production and quality assurance operations. Berger thus ensures manufacture of the best
quality products at a competitive cost employing green manufacturing techniques.

Price:
Price strategy of Berger can be spelled out in following manner. ―Provide high quality
product at highly affordable price‖. At some places Berger had to change higher price than that
of their competitor due to strict Compliance of quality and government financial law. Beside
this Berger also consider Commissions / Discount to Dealers and Retailers while preparing the
pricing strategy. Berger supplies their product to Dealers through some establishes discount
basis. They also offer some special commission and discount rate for their premium Dealers,
who can cross the benchmark, set by Berger.

Place:

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 With its strong distribution network, Berger has reached almost every corner of
Bangladesh. The nationwide dealer network, supported by eleven sales depots strategically
located at Dhaka, Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Comilla, Mymensingh, Barisal,
Rangpur and Feni has enabled them to strategically cater to all parts of the country. (Annual
Report, 2013)

Promotion:
Berger generates different slogans with different massages to promote their various
products. In their promotional activities they also promote different messages for their
different products, so that become familiar to their customer. Various promotional tools are
integrated by Berger (360 degree branding) to promote themselves all over the world and also
Bangladesh.
Advertising: Berger undertakes advertising through TV, radio, billboards and print media. For
this, they take the help of firms such as Unitrend and Grey. Berger does different
advertisements tailoring to the needs of different countries including Bangladesh
Public Relations: They also undertake several public relations activities such as, the painted
footpaths in Uttara, Dhaka to create public relations. They also engage themselves in various
CSR activities such as arranging art competitions. For creating social awareness and managing
PR activities in Bangladesh, Berger takes the help of One-step. They also take help of one firm
to make novelty items. i.e gift items for customers.

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Sales Promotion: Provides discounts to its dealers and various customers. They also provide
dealers with several incentives to maintain close ties.

People:
Berger paints Bangladesh Ltd, believe that ‗Our People‘ are ‗Our Strength‘. These
people with their hard work, dynamism and creative minds have made the business
successful. They are well trained and have the in-depth knowledge of the business. High
priority is placed in developing human resources. Importance is given on relevant on-the-job,
in-house and external training programs, so that employees are well equipped with necessary
skills. According to the company, Berger Bangladesh‘s culture encourages professionalism,
stimulates teamwork and promotes innovation reinforced with high ethical standard. (Report
on 4ps, Berger)

Processes:
This is related to services offered by Berger paints. They make their own products in
Dhaka Supply Chain Management spans all movement and storage of raw materials, work-in-
process inventory, and finished goods from point-of-origin to point-of-consumption. The
company‘s aim is to optimize and consolidate resources and processes for a low-cost but
efficient, develop and manage simplified and effective supply network to achieve a high level
of service, create a continuous improvement culture driven by performance measures and
reward. Supply Chain management isconsidered as the Company's "Growth Enabler" and
"Cost Optimizer" for which BERGER has restructured the Supply Chain of Berger Paints
Bangladesh Limited to enhance the overall effectiveness as well as efficiency at both
functional and operational level. (bergerbd.com)

Physical Evidence:
In today‘s world physical layout also plays an important role unlike in the past where
factory appearance would not matter at all. Companies need to appeal to its customers by
making changes to their physical layouts according to their changing environments. For Berger
in Bangladesh, they have 11 sales depot through which they supply to the dealers who in turn
sell to the final consumer. However they also have their website which is quite informative and

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 benefits the consumers as they can see their offered products, and contact Berger for assistance.
In June 2012, they opened ‗Berger Home Décor‘ to provide direct assistance to customers.

Productivity and Quality:

Berger never compromises with their product quality or productivity. Almost most of
their raw materials are imported from abroad. Then, they produce their product in their own
factories in Dhaka, Chittagong. After that, they do not just release the product, rather they do
quality testing and only after proper inspection, they release their product in the market. Even
after purchase, if their customers complain about their products, their R&D team directly goes
to the customer‘s place and try to solve the problem immediately, thus ensuring good quality.
They also try to ensure same good quality as the parent company across
all the countries.

Finance Division

Central Accounts

Central account is an important unit of the finance division dealing with the budget and
fixed assets. The annual budget of various departments is prepared under the close observation
of this unit. They are responsible for keeping the record of accounts payable and receivables
and reporting.

BPBL has their central account in Standard Chartered Bank Limited and Commercial
Bank of Seylonin Bangladesh. For LC, BPBL use both the Citibank N.A. and Standard
Chartered Bank Limited. Dutch-Bangla Bank Limited is used as their third party or agent for
any kind of loan or related issues.

Costing and Factoring

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 This unit forecasts the costing of different departments and resorts them regarding the
expected expenditure of any alternation.
Analysis of materials consumed:
Figures ‗000
2013 2012
Qty - KG Taka Qty – KG Taka
Raw Materials
Resin 864 201,695 733 178,930
Pigments 4,545 1,062,663 4,156 1,125,414
Extenders & White Cements 26,299 474,357 23,239 412,371
Solvents & Oils 9,686 886,569 9,484 838,273
Additives & Chemicals 8,363 1,418,655 7,666 1,337,455
49,757 4,043,939 45,278 3,892,443
Packing Materials 878,208 786,189
4,922,147 4,678,632

Consumption of imported and indigenous materials and stores & spares and the percentage of
each to the total consumption:

Figures ‗000
2013 2012
Taka % Taka %
Imports 3,106,278 63 3,024,270 65
Indigenous 1,815,869 37 1,654,362 35
4,922,147 100 4,678,632 100
Check Consumption
Raw Materials 4,043,939 82 3,892,443 83
Packing Materials 878,208 18 786,189 17
4,922,147 100 4,678,632 100
Stores & Spares 8,764 5,845
4,930,911 4,684,477

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Other Costs:
2013 2012
Selling, Distribution and warehousing expenses 1,842,940 1,282,451
Administrative & General Expenses 321,653 276,422
Other Operating Expenses 68,598 62,069

 Short Term Investment:

BPBL sometime has surplus fund or idle cash; it does not provide any return for the firm, if
it is invested it can generate some return for the shareholders, so treasury management has
to take short-term investment decision. Short-term investment process has following steps:
Check or forecast surplus fund or idle cash fund
Request and recommend investment
Approve investment request
Receive and compare offer letter which was obtained from investment firms or
financial
institutions
Analyze and evaluate the investment proposal
Select investment firms and accept the proposal
Approve the investment
Sign the agreement with selected financial institutions and archive the documents.

Revenue Assurance

This unit consists of the revenue assurance and fraud management. Revenue assurance
monitors the transactions and assures all protection of the finances. On the other hand, fraud
management protects the fraudulences take place in the daily transactions

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Monthly sales in different product of BPBL is given below:

Division Daily sales Monthly sales

Colorant 64,390 3,075,379.20

Decorative 14,412,758.05 226,623,218.50

Durocem 1,107,778.60 22,637,121.55

Industrial 472,934.05 19,094,378.84

Marine 985,926.95 19,375,401.79

Suprakoat 69,368.00 5,975,928.00

Total 17,113,153.65 296,781,425.39

Performances over the last five years and value added statement of Berger Paints Bangladesh
Limited have shown below with table.

Particulars 2013 2012 2011 2010 2009

Turnover 3,480.2 3,065.65 2,410.1 2,121.12 1,737.64

Value Added
370,540 331,210 285,903 274,084 216,730
Tax (VAT)
Turnover (Net
2,645,210 2,347,650 2,154,652 1,847,032 1,520,907
off VAT)
Gross Profit 810,549 779,689 754,210 729,092 693,710

Profit Before
492,212 440,587 399,045 360,521 316,020
Tax
Profit After Tax 271,121 259,450 240,540 227,120 216,448

Taxation
Taxation unit takes care of the tax, VAT and tariffs of the company.

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Product Basis Market Share (2013)
 Enamel

Almost every company has two category of enamel – premium and economy. Berger
paint‘s premium enamel is Robbialac Superglues Synthetic Enamel and Economy is
Jhilik. Asian paints premium enamel is Apcolite Synthetic Enamel and Economy
isDecora. Generally the sales of Enamel are comparatively high in comparison to the
other category of product irrespective of areas.

The following table shows the market share of Enamel-

Companies Value Sales (%)
Berger 44.60
Asian 19.20
Roxy 15.23
Pailac 9.80
Elite 3.20
Romana 3.54
Uzala .90
Others 3.53
Total 100

 Plastic Emulsion

Plastic Emulsion is comparatively higher priced interior emulsion.Generally the areas

where constructions are raising and, plastic Emulsion are highly demanded in these
areas. It is also more demanded in higher class societies. Different companies try to
different product by making it luxury, washable, and vast range of color.

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 The following table shows the market share of Plastic emulsion-

Companies Value Sales (%)

Berger 40.5
Asian 20.30
Roxy 15.21
Pailac 9.80
Elite 5.65
Romana 3.54
Uzala 1.15
Others 3.85
Total 100
 Distemper

Distemper is lower price but higher volume sales product. Generally upper lower class
and middle class societies highly require distemper. All most all companies have
distemper. Distemper is highly demanded whole Dhaka city.

The following table shows the market share of Distemper-

Companies Value Sales (%)

Berger 59.60
Asian 12.32
Roxy 8.3
Pailac 6.30
Elite 4.56
Romana 2.2
Uzala 1.15
Others 5.56
Total 99.96

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  Exterior Liquid

Exterior liquid is higher quality exterior emulsion. Exterior liquid are introduced in the
market in different brand names. Berger paints exterior liquid are Weather Coat Classic
and weather Coat Long Life. It is highly demanded on VIP area in Dhaka city.

The following table shows the market share of Exterior liquid-

Companies Value Sales (%)

Berger 45.6
Asian 30.2
Roxy 8.30
Pailac 2.32
Elite 4
Romana 2.2
Uzala 1.15
Others 6.2
Total 99.95

 Cement Paint

Cement paint affords a hard, durable and waterproof surface. Cement paints are
introduced in the market in different brand names. Berger‘s paints Cement paint is
Durocem, Asian paint cement osDecora, Elite paint‘s Cement paint is Elitecem, Bengle
agency‘s cement paint is Snowcem etc. It almost all areas in Dhaka city, this product
are highly required.

The following table shows the market share of Cement-

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 Companies Value Sales (%)
Berger 55.5
Asian 24.20
Roxy 6.32
Pailac 2.32
Elite 2.2
Romana 1.8
Uzala 1.45
Others 6.20
Total 100

Human Resource Management

Recruitment & Training Training &

Selection Policies Policies Development

Recruiting Job Evaluation & Compensation

Applicants Analysis

Selection Performance Bonuses &

Process Appraisal Incentives

Promotion Pay
Allowances
Policies Scales

Transfer Disciplinary
Policies Program

Recruitment & Selection Policies

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 Two of the most important functions of any organization are the recruitment and selection of
employees. The health and wellbeing of an organization depend in large part on a steady flow of
new people. Employees must be hired to fill newly created positions and to replace people who
have left. Acquiring new employees can be a costly and difficult undertaking. It involves the
following four steps:

1. Planning the need for employees

2. Getting appropriate people to apply for positions (recruitment)
3. Deciding whom to hire (selection)
4. Getting the selected people to take the jobs.

Recruitment and Selection process begin in Berger only after the HR Planning has been
made. These plans include both a consideration of the organization‘s needs for people and the
supply of possible people to hire. At BPBL, in order to initiate the procedure of Hiring, there are
3 requirements, which must be met:

Employee Requisition by the Authority or Concern Department:

Whenever there is a vacant position in a department or unit, the departmental head raises
an employee requisition to the Human Resources Division.

Standard of the Quality of the Personnel (Job Description & Job Specification):
The second step is to generate a Man Profile based on the Job Profile provided by the
relevant department. It includes the type of the job, the involved functions, and most importantly
the required qualifications (both educational & professional) to perform the job.

A Planned Recruitment Program:

When the above mentioned steps are completed the HR department takes initiative to
arrange for the proper recruitment procedure.

Recruiting Applicants:

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 To be able to hire good people, an organization must have a large number of job
applicants because there are many available people who are easily attracted. For jobs in which
there is an undersupply of people, an organization must expend considerable effort to attract the
right people to fill its job vacancies. Several methods can be used to recruit applicants for a
vacant position. For Recruitment and Selection both sources are examined:

Internal Source:
This includes current employees (promote able/ transferable), Employee Referral etc.

External Source:
This comprises of the whole labor market outside the organization.
After selecting the source, HRD decides on the appropriate media like, Newspaper,
Internet, Notice Board, Agents for publishing the advertisement for Recruitment. In Berger
Paints Bd. Ltd. recently almost all the career opportunities are exposed through web site/
internet. Very few ads are published in the leading newspapers. And some specific job
opportunities (mostly contractual) are circulated in related educational / professional institutes.

Selection Process:

Screening:
Initial Screening of resumes is conducted to match the requirements of the job with the
applicant profiles. Sometimes there are preliminary interviews according to the nature of job.

Employment Interview:
In most of the cases Written Tests are carried out for entry-level jobs.

Applicant Appraisal Form:

A prescribed Application Form has to be filled in before the Interview.

VIVA:

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 A Viva is conducted after passing the Written Test, if any. 1 / 2 Interviewers from the
related departments along with HR personnel usually conduct the interview session.

Conditional Job Offer:

Depending on the performance of the final interview, few applicants are offered the
respective job.

Physical Examination:
If the individual(s) accept(s) the offer, they are sent for a medical examination. This is
mandatory for all.

Appointment:
If they are found medically fit and eligible, Appointment /Employment Letter are handed
over.
Induction/ Orientation:
The Induction to the new employee takes place after joining. The duration of orientation
program can be for minimum 1 (one) day to maximum 30 (thirty) days depending on the nature
of Job.

This is the actual end of the Selection process.

Promotion Policies
Human Resources Department (HRD) of Berger Paints Bangladesh Ltd. always cares about
the motivational tool-Promotion for its personnel. Promotion Policies of the Company are as
follows:

1. In every year, after conducting the Annual Performance Appraisal (PPAD-Performance

Planning Appraisal & Development), HRD get recommendations for Promotion from the
various Departmental Head‘s.
2. Bases on the selected criteria for the respective personnel, HRD proposes to the Top
Management for approval for Promotion, if any.

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 3. Berger Paints Bangladesh Ltd. believes in ―Ability and Seniority‖ both for giving
Promotion to the employees.

Transfer Policies

The company may transfer any employee to other Department or to other Offices,
Factories or Depots located in different places in the country at its full discretion according to the
situational demand of the Company.

The Company has 2 Factories, 2 Sales Offices, and 7 Depots in different parts of the
country including its Head Office at Dhaka. Transfer is a normal practice in the Company and
most of them are found horizontal Transfer.

Training Policies

The Human Resources Training section begin its function of providing whatever
Training and Orientation the employees might need in order to make certain that they are well
equipped to perform their duties as per desired level of the Company

After conducting Training Needs Assessment (TNA) or getting the summary of needs
from Annual Appraisal (PPAD), HRD arrange Training for the respective employees. Training
may be different types according to the needs:
1. On-the-Job
2. Off-the-Job

It may be Tailor made Training or Local or International Training according to the needs and
demand of the situation. Berger Paints Bangladesh Ltd. believes in investment of people.

Job Evaluation and Analysis

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 The Company conducts Job Evaluation & Job Analysis Program as a means of
controlling Wage & Salaries, Equity of Pay, Hiring Decisions, and Appraisal Functions; to have
better Knowledge and control of the employees and to ensure competitiveness in Wage &
Salaries.

For Appraising and Grading the Job, Berger Paints Bangladesh Ltd. practices the
following procedures:

1. Wage & Salary Survey with the similar companies.

2. Made a Guideline or Plan of Salary Range.
3. Analysis, Evaluation, Weighing & Scoring of the information.
a. Observe Survey Result, Company Chart, Questionnaire (if used), Compiled Job
Descriptions (to account for each job being performed in the company), and
chosen Wage & Salary Plan- the Company determine the value or weight on each
Job Descriptions.
b. When Jobs are Evaluated, Written, Scored & Approved, they must then be
maintained on a periodic basis.

Merit Rating/ Performance Appraisal

Berger has a Systematic, and Periodic Appraisal Process to assess its employee‘s
performance. As this is the focus of the recent study, it will be covered in details later on.

Pay Scales

Berger Paints Bangladesh Ltd. is a Private Limited Company. As there is no Government

prescribed Pay Scale for the Private Company, Berger has its own Pay Scale.

There are 16 Grades found on that Pay Scales from Worker to The Managing Director.
But according to the Management of Berger Paints Bangladesh Ltd. it is completely restricted

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and prohibited to express their Pay Scale to others in any form. So, it is not possible to attach the
Pay Scale of Berger Paints Bangladesh Ltd. with this report.

But the Management informed that their Pay Scale is Competitive, Consistent and
Commensurate with other similar companies of the country.

Disciplinary Program

The objective of the Disciplinary Program is to make conscious and to motivate the
employee to the extent possible to improve performance and not to indulge in any activity
detrimental to the Company.

Whenever Disciplinary action is required, it is important that the penalty fit the offence
(after assuring that there was in fact an offence) and that the Labour Code be followed with
regard to all Disciplinary actions.

The ―People‖ has been the key success factor that has allowed Berger Paints of
Bangladesh Limited to achieve so much in a short span of time. Thus Management of BPBL
strives to hire, engage and retain talented employees. Human Resources Strategy of BPBL
constantly grows and renews its commitment to meet the career aspiration and priorities of the
employees. Berger Paints of Bangladesh Limited views their employees‘ as mostvaluable capital
of the organization and is endowed with unique qualities and if thoughtfully andinspiringly led
the workforce can bring superior result with creativity. The management of BPBL carefully
identifies potentialfuture leaders amongst its employees and takes extra ordinary effort to build
them.

As a successful and growing company, BPBL provides a lot of facilities to their

employees to motivate them to work. BPBL have two three types of employee:

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 Permanent

Employee
Type

Third
Contractual
Party

The facilities that these employees receive are described as follows:

 Training and Development

 To help the employees perform more effectively in their jobs
 To prepare the employees for future growth and advancement by providing
supervisory and other management programs.
 To building effective work teams through developing staff communications and
interpersonal skills.

 Compensation
Cost Effectiveness:
In cost effectiveness the BPBL tries to minimize the costs behind the employees.
It means the employees will be paid in a good margin, but it will also be cost effective for
the organization. Otherwise, if the salaries are paid without any sorts of judgment or
study, then it will be expensive for the organization. Such sort of careful decisions about

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pay levels are made for those positions where the employees will get same or lesser
salaries in other job places if they switch their jobs.

Skill-Based Compensation:
In skill based compensation the organization pays for the level of skill of the
employees. These positions are very important for the BPBL. There are shortages of
skillful people in our country. So the BPBL tries to hire skillful employees to serve for
them and help to achieve growth. Skillful people are like diamonds for the BPBL. In this
company these people are paid in a higher range compared to the other positions of the
organization. Top level managers, production officers, technical persons are mainly
labeled as skillful people. Because the technical people help the company with their
production skills, top level managers are counted as the resource persons with vast
knowledge of the production and business sectors. Then the managers are also skilful
persons who have a lot of experiences with other companies and have good
communication skills with well managerial skills to handle all kind of employees of the
company.

In skill based compensation, the skills of the people are emphasized. Their experiences,
knowledge, and other useful skills are paid.

Economic environment:
In today‘s world the economic environment plays a vital role for any
organizations. Whenever the economic conditions affect the whole market, then it is a
huge matter for the BPBL. For example, we are seeing the time of recession, BPBL is
also thinking to cut or minimize the salary levels. But they cannot do this easily as the
pressures will be higher. But they are trying to cope up with the current situation.

Pay for Performance:

BPBL also has plans for pay for performance. Whenever any employees show the
best level of performances, then the bank tries to increase the salaries or give extra

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incentives. This enables the good performers to do well in future, and also motivates in a
great deal.

Retention payment:
In retention payment, BPBL tries to hold those employees who are very much
precious for the organization and the other banks or the competitors tend to take them
away with higher lucrative salaries and bonuses. In this sort of payment BPBL tries to
give more payment to this type of employees who are very well performers and have a
huge network of link in the business world to benefit the organization. The aim of this
payment is to make the employees stick with BPBL. The Managers, Assistant Senior
Vice Presidents (ASVP), Assistant Vice Presidents (AVP), Vice Presidents (VP), and
some other position holders are the employees who are paid with this sort of payments.

Motivating payment:
Berger Paints Bangladesh Ltd (BPBL) tries to pay the employees in such a way
that motivates them to work well and makes motivated. In the industrial company, the
work pressures are very high. So the employees are less relaxed with leisure. The BPBL
tries to pay the employees in such a way that never drives the employees to a frustrated
situation. The payments, the bonuses and the incentives are designed in such a manner
that keeps the employees motivated.

Job analysis payment:

In this sort of payment the compensation is designed after conducting the job
analysis. The jobs are analyzed with the KSOs needed, the works included to the
positions, the skills required for the positions. Then the fixtures of the payments are
decided. These are the main ways how the Berger Paints Bangladesh Ltd (BPBL) designs
their compensation packages.

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 Bonuses and Incentives:

High Salary:
Berger Paints Bangladesh Ltd (BPBL) as a paint industry provides high salary to their
employee. Their salary pay scale in different position is more than any other paint
industry.

More Facility:
Berger Paints Bangladesh Ltd (BPBL) providing the highest facilities to their employees.
Their facilities includes-
• Discount
• BPBL Share
• Foreign training

Discount:
As a BPBL employee he or she always gets some discount in some particular
product. Suppose for the Singer Products the BPBL employees gets 5% discount from the
tagged price. For the Transcom international (electronic products) they get 10% discount.

Berger Paints Bangladesh Ltd (BPBL) Share:

BPBL allows their employees to buy the share through them at a lower price. The
benefit is that if there any loss incurred then the loss will be beard by the BPBL but
forprofit there are no bindings. The employees will get the full percentage of their profit
from the share.

Foreign Training:
Employees always need some training to keep them competitive enough for the
outer world. BPBL sometime provides training for their employees in the foreign
countries.
The training cost fully bear by the company.

Page | 106
 Allowances:
In addition to the basic salary there are a number of allowances. Every employee
receives each month as follows:

Housing Rent Allowance:

This is a monthly allowance which is added to their basic salary according to the
respective grade of employee.

Transport Allowance:
This may in the form of a cash payment or the company provides a car for
officers. Executives have the option to cash out the car benefit.

Leave Allowance:
For the leave allowance employees have to apply 2 weeks before and request for
this allowance to be paid. This will be paid according to the respective grade and once in
a year.

Medical Allowance:
Employees are allowed for medical expenses for their spouse/partner and
children. The company will pay up to allowance for medical consultations and
examinations, cost of drugs, medicines, injections, and other appropriate medical
treatment.

Late Shift Allowance:

Certain jobs such as when more production is needed may require working hours
or also may require for starting production shift such as evening or night shift. Staff
working such hours will receive an allowance.

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Daily Allowance:
Staff visiting cities outside their home office on official business will be entitled
to a daily allowance to cover incidental expenses such as meals and transport. The
amount will be reduced by 20% if the staff has a lunch provided by the company or
another party and by 40% for dinner. If they arrive late or departing before 3.00 pm, the
allowance will be reduced by 50%.

Leave:
The BPBL employees enjoyed a greater number of leave benefits in a year. Most
of them are paid benefit. Apart from this in a year (365 days) they enjoyed one third (165
days) of it‘s as a leave. The different types of leave include.

Leave fair assistance:

If any employee, suppose takes leave from the organization for one month then he
will get the full month‘s salary with some extra allowances.

Sick Leave:
If someone is absent due to sickness for the period of 3 days or more than they are
required to provide a medical certificate from a registered doctor. In case of absence due
to sickness they must inform your head of department or human resourcedepartment
regarding their inability to attend office.

If they are absent for an extended period due to illness and hospitalized, they are
required to inform human resource department with details so that they can process
employee‘s hospitalize insurance claim.

Maternity Leave:
Female staffs are eligible for maternity leave up to a maximum of 90 days during
their pregnancy. You may take this leave before or after the completion of six weeks
from the day of your delivery.

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 Any leave of absence on account of maternity which is greater than the maternity
leave entitlements can be adjusted from your annual leave.

Privileged Leave:
As confirmed staff you will be entitled to 7 days leave including weekend and
national holidays at the time of marriage.

Paints:
All permanent employees are entitled to purchase certain quality of paint at 25%
discount on MRP every year and executive are entitled for free paint for painting their
house every three years.

Profit Bonus:
All performance employees of the company are entitled for profit bonus, which is
declared in the AGM.

Target Bonus:
All the employees of the company are entitled for target bonus, which is
determined by the company‘s executive.

Festival Bonus:
All the employees of the company are entitled for different kind of festival bonus.
Like: Eid-ul-fitre, Eid-ul-azha. Durga puja etc. Apart from these facilities they also
provide some end benefit to their employees these include

Provident fund
Gratuity fund
Super vision fund
Other important facilities
Long service award
Promotion

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 Job evaluation

 Long service award:

Long service awards have been instituted as a token of appreciation for an employee‘s
long term of service with the bank. Those who complete 25 years of service with the
bank will receive awards from the CEO at a function that will be organized to felicitate
the long service award recipients.

 Promotion:
Employees are rewarded according to their performance. Every employee has a desired
target and their work is designed and forwarded to obtain those desired target. When
employees fulfill their target their level is increased. They are promoted to one grade to
another grade.

 Employees‟ performance evaluation:

BPBL strictly follows their rules and regulations to make the performance evaluation.
They evaluate their employees based on their performance. If they found the positive
result from the performance evaluation then they just increase the level or grade of that
employee. And employees get internally motivated to do give the better performance
because they know that their career development depends on the performance evaluation.
And this performance evaluation is fair and clear so they feel motivated. As they follow
their rules strictly so, there is no chance of making mistake about any one‘s evaluation.

 Safety Health and Environment (SHE):

Safety Health and Environment (SHE) is an independent department in Berger Paints.
SHE has very significance role in such a big industry where hundreds of machineries are
in motion day and night. Enormous electric power is being used every corner of the
factory. Hazardous and non-hazardous chemical are the main raw materials for the
production. There are ample chances for accidents and injuries or damage of the
equipment if one works unsafely or without taking pre-caution. That‘s why SHE has a
vital role for the safety of the employees, equipment and environment as well.

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Linking Resources, Core Competency, Capabilities with
Functional Level Strategies for Value Creation

For a company to gain competitive advantage, it must do so by making efficient and innovative
use of both its resources and capabilities, to build core-competencies, which through the
implementation of effective strategies can be transformed into the company‘s comparative
advantage.

The resources of BPBL include:

 BPBL has very high skilled, energetic, hardworking and motivated human resources.
 Strong Customer Base
 Brand Value and recognition
 Financial resources
 Accessibility
 Wide range of products

The capabilities of BPBL include:

 Marketing and Branding
 Maintaining customer relationship
 Convenient and accessible to customers
 Availability of cash
 Exclusive access to high grade natural resources
 Favorable access to distribution networks
 Continuously fulfill demands of customers
 Country wide coverage
 Strong network of agents

The above capabilities and resources have enabled BPBL to develop core competencies of
Research and Development, Wide Range of Product and Quality.

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 The Quality is so best that the competitors of Berger cannot simply match the quality of
their paint products. Berger use the most advanced equipment in their production facility as well
as top quality raw materials from abroad to ensure the quality is not compromised at any cost.
The R&D of Berger is able to innovate new products every now and then to satisfy a different
needs of the customer.

The range of products available from Berger, specially the paint products is very wide.
Starting from paints for interior surfaces to exterior surfaces to wood, metal and etc. This unique
benefit is only provided by Berger. No other competitor is able to provide customers with such
wide variety of products for each of their needs.

Now BPBL has been able to maintain and sustain their competitive advantage through
the following means:

Superior efficiency:

BPBL have superior efficiency of fulfilling the demand of each of their customer
segment by developing new products. Whenever and wherever they find out demand they use all
forces to efficiently capture the market. If they are required, they hire more agents, train their
agents, and compensate them to supply their products to the customers.

Superior Quality:

BPBL maintains superior quality by their Quality Control Department which evaluates
their products and ensure their unique benefit in their products. The quality of their product is
solely managed by Berger.

Innovation:

BPBL is well-known for their innovation of their different categories of products which
satisfies the demand of their customer segments. The R&D team of Berger brings out the idea of

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new products whenever a demand rises among the customers so that Berger can capture the
market segment. This is how, Berger has developed so many product verities.

Superior Customer Responsiveness:

Berger has tried to provide superior customer responsiveness with the help of their
massive network of their agents, their home decors, and their color banks across Bangladesh. On
top of that their customers can easily communicate with them through online.
Berger also conduct many awareness campaigns as well as art competitions and concerts. To
build strong customer relationship Berger have their third party to support them for conducting
these campaigns. Berger also recover any loss occurred by them to their customers and take the
customers complaint seriously.

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 Fig: Functional Level Strategy

Resources:
 Strong Customer Base
 Brand Value and Differentiation Strategy
recognition for
 Financial resources Broad Market
 Accessibility
 Wide range of products
 Motivated Human
Resources  Superior
Profitability
 More Segments to
Core Competencies: fulfill demands
 Superior Quality
 Wide Range of Product
 Strong Research and
Development Strategies for
Innovation
Capabilities: Efficiency
 Marketing and Branding Quality
 Customer relationship
 Convenient and accessible
to customers
 Availability of cash
 Exclusive access to
high grade natural To be the Benchmark in
resources the Paint Industry by
 Favorable access to creating Target
distribution networks
 Continuously fulfill
demands of customers
 Country wide coverage
 Strong network of agents
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Company Structure

Marketing Sales Finance R&D P&M Production

Department Department Department Department Department Department

3 Major 2 Major Director

Heads: Heads:
- Cost
- Decorative - GSM - Accountant
- Industrial Decorative Manager
- Marine Sales Dept.
- Financial
- Manager - Controller
Industrial and
Marine Sales - Accounts
Dept. Manager

Marketing Department:
Until 1990, business practice of the Berger Paints Bangladesh Ltd. was very much
conservative in terms of market presence. In 1993, marketing department started. Thereafter
Berger has been growing very rapidly in terms of market share and sales growth. In 1994, just
after the year of launching marketing department, sales growth was 34%. Berger is enjoying
48% share of the total paint market and established itself as the champion of the market through
its commitment, offering the most quality paint and providing the maximum value for
customers‘ money, to the customers.

Total business of the Berger Paints Bangladesh Ltd. is categorized into three major heads.
These are:
a. Decorative
b. Industrial
c. Marine

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 Although three categories comprise the total business of Berger, contribution of the
Decorative sector is 85% (app.) of the total turnover. Because of its contribution, Decorative is
considered the main business of the organization and is getting more priority.

Three categories of paints are promoted to the market under three brand names. Decorative is
offered to the market under the brand name of ―Robbialac‖ and Industrial & Marine are of
―Jensolin‖ & ―Seaborne‖ respectively. Marketing department handles mainly decorative paints.

Major Activities:
a) Estimation of Sales Growth
b) Preparing Marketing Mix
c) Promotion/Communication Mix

Sales Department:
This department is broadly categorized into two parts: Decorative and Industrial & Marine.
These are respectively discussed in brief below

Decorative Sales Department:

This department is headed by Director Operations who is assisted by GSM (Decorative).
7 strategic depots manage sales activities all over the country. Activities of all seven strategic
depots are monitored and controlled by the Sales (Decorative) Office situated in Corporate
Office.

Major Activities of Decorative Sales Department:

 To Prepare National Sales Budget detailing sales value, volume & growth and translates
it into monthly and half-yearly budget.
 To express the national sales budget in terms of Sales Area, Zone, Product& Shades of
Color.
 To develop sales strategies to achieve sales budget.

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  To respond to complaints of customers efficiently and take necessary action(s) for
arriving a favorable solution to the problem.
 To maintain relationship with existing dealers of the Co. and develop new dealers.
 To suggest marketing department to introduce incentive programs to enhance sales
volume.
 To scan current market condition including competitors‘ current and probable future
action pattern, customers‘ preference, dealers‘ business situation and etc.
 To monitor sales position of the company and initiate necessary actions if any deviation
exists.
 To arrange sales review meeting timely basis.
 To ensure smooth distribution of paints.
 To train the sales personnel to handle customers efficiently.

Sales (Industrial and Marine):

This department is headed by Director Operations who is assisted by the Manager –
Industrial & Marine for all the activities & performances of the department. These business
groups contribute 15% (app.) of the total turnover of the BPBL. All paints of these groups are
offered to the customers under two categories: premium products are under two different Brand
names that is, Jensolin and Seaborne for Industrial and Marine paints respectively and the other
category is Economy products. Economy products are represented by another two different
Brand names Berger Industrial and Berger Marine.

Special Features of the Business Groups in BPBL

 All customers are institutional
 Direct marketing (Personal Selling) is the only mean to promote the brand.
 More resistance power than decorative products.
 These two categories include high performance coating paints and other protective
coatings.

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  Lower discount rate than decorative paints. 2% discount on MRP for Industrial paints and
3% for Marine paints are offered, whereas discount rate is 5% for decorative paints.
 Number of customer is limited. But consumption per customer is much higher in this area
than decorative area.
 Incentives are rarely offered to the customers. Sometimes, volume incentives are offered
to the regular customers during the buying of bulk quantities.
 Institutional customers, if they buy decorative paints, buy decorative paints through
Industrial and Marine sales personnel.

Industrial Sector:
Only in Dhaka and Chittagong sales area, individual sales personnel promote the paints
to the current and potential customers directly. In other areas, sales people of Decorative
communicate with prospects and collect order & place it to the concerned department of
industrial paints. Sales people engaged in Dhaka and Ctg. with Industrial Paint perform the
duties as same as the sales people of decorative. Some dealers in Dhaka and Ctg. are involved
with the trade of industrial paints with smaller quantities.

Types of Customers:
Industrial Customers are of two types:
 OEM customers: This is the Original Equipment Manufacturer who uses the paint as the raw
material and eventually buys frequently.
 Protective Coating (PC): This group is the infrequent buyers of the industrial brands. Most of
their consumption is for the maintenance purpose.

Marine Sector:
Like Industrial Paints, individual sales personnel are engaged in Dhaka and Ctg. to
communicate with the customers. All products are promoted in the market under ―Seaborne‖ and
―Berger Marine‖ brand name. Most of the transactions (large volume) take place through
personal selling although 12 dealers in Dhaka & 6/7 dealers in Ctg. offer Marine Paints to the
customers.

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Finance Department:
Director – Finance who is assisted by Financial Controller (FC), Accounts Manager and Cost
Accountant Manager, heads finance department. Three sections – finance, personal accounts and
costing, perform all activities of the department.

Activities of Finance Section:

Financial Controller is responsible for all the activities of this section. This section handles
absolute debtors (customer related) related all activities.
Bill Payment System:
Bills are considered as external & internal. Payment of internal bill is made as early as possible.
But external bills are paid twice, 10th and 25th day of the month, in a month. All bills are
approved by DFM provided that there is no provision for VAT and amount of bill is not more
than Tk. 5000. If the amount of bill is more than Tk. 5000 to Tk. 10,000, then, GM decides on
the bill. Thereafter, only authorized person to approve the billing amount is MD.
Private Accounts Section:
An Accounts Manager who deals with Salary Payment, Group Insurance, Foreign Affairs and
issues related with corporate heads this section.
Costing Section:
A Cost Accountant Manager who is assisted by four Officers heads this section. Main function
of this section is to find out per liter Production Cost of a paint category. This section finds out
Gross Profit (GP=MRP– Dealers‘ Commission – Total Production Cost) of a specific category of
paints and shows more than one price points by considering different GM percentage on total
production cost of that paint. In addition, this section calculates the total costing and GP of PTC
(Pre Treatment Chemical) and other finished goods imported from abroad. Moreover, this
section performs inventory valuation activities including factories and depots. Costing section
prepares profitability analysis report for most of the paints. If profitability of any paint is not
satisfactory they inform relevant authority.

Other Sections in Finance Department:

VAT and Audit activities are also included in Finance Department. Activities of these two
sections are briefly described below:

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Audit:
An internal auditor performs audit-related activities in Berger. The person who is responsible for
auditing, reports to Director- Finance directly. External auditors are also employed for time-to-
time basis. Internal auditor audits sales depots twice in a year, generally in June & November.
And yearly audit of total organization takes place once in a year.

VAT:
This section assesses VAT amount that has to be deposited to Govt. exchequer on the bill
payable to the external parties. Moreover, some external parties deposit VAT amount in favor of
Berger Paints and that amount need to be adjusted with financial activities of Berger. An
Assistant Manager, reporting directly to the Director-Finance. and an Officer manage the
activities of the section.

Planning and Materials Department:

Main responsibility of this department is to collect raw materials at right time from right vendors
at right price and at right quantity. Moreover, this department also purchases required machinery
and other stationery necessary for the organization.
Functions of P & M Department:
 To find out material and machinery sources: This department continuously scans the
Internet, Literatures and other related publications to identify new sources from where
raw materials & machinery can be collected.
 To communicate with the sources: They communicate with the sources and collect
information regarding price, quality, terms and conditions of payment & other relevant
matters about raw materials and machinery.
 To buy raw materials, machinery & other necessary items from internal (domestic) and
external sources.
 To develop new vendors: When raw materials source is very much limited, sometimes
buyers have to accept unfavorable terms and conditions because of not having sufficient

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 bargaining power. To gain adequate bargaining power this department tries to develop
new vendors in areas where they are in disadvantageous position.
 To reduce the cost of raw materials: If access power to different vendors is high, this
department collects raw materials from the substitute vendors to get some types of
advantages (such as lower price) provided that this source meets all other criteria.
 To find out substitute raw materials.
 To send the sample to R&D for assuring the quality of the raw materials.
 To provide support to the Marketing Department in developing container.
 To provide new ideas regarding raw materials, packaging, and machinery help to reduce
cost.
 To support R&D to make new formulations.
 To suggest maintenance department for doing their jobs efficiently.
 To buy gift items for marketing department.
 To buy shade cards for Marketing Department from India & Singapore.
 To collect color bank materials from Italy.
 To buy raw materials for Jenson & Nicholson.

Research and Development Department:

R & D is playing very vital role in the operations of Berger Paints Bangladesh Ltd. Their
continuous dedicated efforts help the organization to offer different types of products ranging
from economy paint such as JSE & JSD to premium brand of paint such as Weather Coat (WC)
& LSE to solve different motives of different users

Major Functions:
Product Development: Two type of product development activities are performed by R&D.
Product development activities of R&D are depicted below:
 New Product Development
 Improvement of Existing Product
 Cost Reduction Exercise
 Substituting Raw Materials with New Source and New Grade
 Complains Handling

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  Providing Customer Service
 To Train the Personnel of Different Departments

Production Department
The production process consists of the following departments:

Raw Materials Department:

There are various raw materials that are required for producing different paints. These raw
materials are gathered both from local and international sources. At the beginning of the year,
the total projected raw materials requirement is submitted to the department and the department
sources out the raw materials and ensures the availability of the materials at the right time. They
are also responsible for storing and dispatching of the raw materials.

Water-based Plant:
All types of Water-based products are produced in this plant. The major products produced here
are SPD, PSD, APE, LSE, Weather Coat, Tartaruga, Water Sealer and Roofing Compound.
There are 5 types of machine here – TSD1, TSD2, Master Mixture, HSD4 and HSD7.

Solvent-based Plant:
All the solvent-based paints are produced here. The major products are RSE, PSE, Wood
Keeper, Hammer Finish, Epoxy paints, Plastron Sealer, Stoving Paint, Various Primers and all
other solvent-based paints.

Durocem Plant:
As Durocem is a different type of product (offered in powdered shape), a separate plant has been
established for the production of Durocem. As Durocem is basically cement paint, the main raw
material used for producing Durocem is White Cement. The machines that are used for the
production process are basically Ball Mills. There are three Ball Mills in the plant – One with ½
M. Ton capacity and Two with 1 M. Ton capacity.

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Resin Plant:
Resin works as the binder for the solvent-based paints. Resins are of various types and different
types of resins are required for different type of paints. Most of these resins are produced in this
resin plant. But the resin for the Epoxy paints is imported from foreign countries. In this resin
plant twelve types of resins are produced.

Distribution:
Distribution is the way of dispatching the produced items as per the requirement of different
depots. First, the distribution department hands over the container wise requirements of various
products to the plants. Then the distribution department plans the truck loading for different
depots. In this purpose they give the first priority to the Project Requirements, second priority to
the critical requirements of the depots and third priority to other requirements that are not termed
as critical by the depots. During this process, the Dhaka depot is given the most priority, as there
lies a huge volume of business.

Administration:
Administration handles the labors of the factory. The Administration department looks after the
welfare of the labors as well as officers of the factory.

Role of R&D in Production:

R&D is not directly related with the production process. Its main duty is to check the new
options of raw materials, search for better ways of production, developing the guideline for
production of paints and developing new products. But, sometimes R&D gets involved in the
production process as per requirement and solves the problem if any.

FG Planning Department (Distribution):

The organization‘s business philosophy has turned into ―Marketing Concept‖ from the previous
―Sales Concept‖. For every year a target of sales is established by considering current market
size, market growth rate, consumers‘ preference trends, govt.‘s plan to develop infrastructure,
foreign aid available for Socio-economic development of the country, trade policy of the govt.

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 and some other issues related with the business of the organization. Then, total yearly target is
broken down into monthly target.

Decorative paints are basically sold through Company‘s registered Dealers, whereas Industrial &
Marine paints are basically sold through personal selling.

Major functions:
 To monitor current stock position in the depots
 To place indent to the factory
 To know the previous month‘s sales and sales month to date
 To place additional/minus indent if necessary
 To inform the expected delivery date of paints from factory

Corporate Governance

Board of Directors:

Mr. Gerald K Adams

Chairman
Since 2004

Ms. Rupali Chowdhury

Managing Director
Since 2008

Mr. Anil Bhalla Mr. Jean-Claude Mr. AbulKhalek Mr. K R Das Mr. Subir Bose
Director Loutreuil Director Director Director
Since 1994 Director Since 2004 Since 1992 Since 1995

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Background of the Board of Directors:

Mr. Gerald K Adams (Chairman): Adams is a professional company director and also
the founder and MD of a consulting company specializing in strategy and business
development. His directorships include: Berger Paints Bangladesh Ltd., as Chairman;
Berger Paints India Ltd.; Bolix SA (Chairman) and ZORK Pty Ltd. His previous
directorships include Axiom Energy Ltd. and the Joint State of South Australia and
Carnegie Mellon University Advisory Board. Prior executive roles include: Managing
Director of Orica Consumer Products, the leading paint and handyman products company
in Australia and New Zealand; President and CEO of Box USA; Chief Executive of the
Australian corrugated box business of Amcor Fibre Packaging, a part of Amcor Limited;
Vice President and Director, Business Development, of Kraft Foods, Asia-Pacific; and
consultant, the Boston Consulting Group. He was educated at the Harvard Business
School (Cambridge, Mass.) from 1977-79, and the University of Washington (Seattle,
Washington) from 1971-75. Mr. Adams was born in 1953 in the US and now resides in
Australia.

Ms. Rupali Chowdhury (Managing Director): Rupali Chowdhury was born in 1960.
She is an MBA from IBA, University of Dhaka, and completed her Graduation with
Honors in Chemistry from the University of Chittagong. She started her career with the
multinational pharmaceutical & chemical Company, ‗Ciba Geigy (Bangladesh) Limited‘,
in 1984 as Senior Officer- Planning Information and Control and worked there for about
six and a half years. She was Brand Manager while leaving Ciba Geigy (Bangladesh)
Limited in 1990. Ms. Rupali Chowdhury joined Berger Paints Bangladesh Limited in
1990 as Planning Manager and during her tenure she worked for various departments
such as Marketing, Sales, Distribution, Planning and Systems under different supervisory
capacities. Ms. Chowdhury was promoted to the position of Managing Director of the

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Company on 1 January 2008. She is also Chairman & Managing Director of Jenson &
Nicholson (Bangladesh) Limited, a 100% subsidiary of Berger Paints Bangladesh
Limited. She is involved with different trade bodies including Foreign Investors‘
Chamber of Commerce & Industries of Bangladesh (FICCI) wherein she is a member of
the Executive Committee.

Mr. K. R. Das (Director): K.R. Das was born in India in 1931. On completion of his
graduation in science with honors, he started his career with Gillanders Arbuthnot & Co
limited in 1951. He was Head of Pigments Division when he left Gillanders in 1965. Mr.
Das joined Jenson & Nicholson Limited in 1965 and left the company in 1975 as General
Sales Manager after a long 10 years of service. Mr. Das joined Berger Paints India
Limited in 1975 and after 20 years of service retired in 1994 as Executive Director. Mr.
Das has been working as Management Consultant since 1994. He is a director of Berger
Paints India Limited, and Chairman of King & Company Homeo Chemist (Pvt.) Limited,
India and RDG Systems (Pvt.) Ltd, India. Mr. Das is also the Regional Supervisory
Director of Berger Paints Bangladesh Limited.

Mr. Anil Bhalla (Director): Anil Bhalla was born in India in 1946. He graduated in
Economics (Hons) from the University of Delhi and is a Fellow Chartered Accountant.
He is the managing partner of JC Bhalla& Co., a reputed Chartered Accountants firm of
India. He has four decades of experience in professional services in both India and
abroad. Mr. Bhalla has a wide range of experience in auditing, joint venture consultancy,
tax consultancy, strategic business consultancy, business valuations, and mergers &
acquisitions. He was a Member of the Northern India Regional Council of the Institute of
Chartered Accountants of India (ICAI) from 1976 to 1979 and it‘s Chairman from 1978
to 1979. He has served ICAI as member of different Committees namely Company law,
Expert advisory and Auditing and Assurance Standards Board. He was an Executive
Committee member of the Income Tax Appellate Tribunal Bar Association of Delhi. He
was President of the Institute of Internal Auditors, Florida, USA Delhi Chapter. He is
also a Director of Berger Paints India Limited.

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Mr. Subir Bose (Director): Subir Bose was born in India in 1949. He is a Chemical
Engineer from the Indian Institute of Technology, Kanpur and completed his post
graduation in Business Administration from the Indian Institute of Management,
Ahmedabad. He started his career with Asian Paints India Limited in 1974. He was the
Industrial Sales Manager while leaving Asian Paints India Limited in 1982. Mr. Bose
joined Abucon Nigeria Limited, Lagos, Nigeria in 1982 and worked there till June 1984.
Mr. Bose returned to India in 1984 and joined Berger Paints India Limited. He was
elevated to the position of Managing Director in July 1994 and has been holding the
position till date.

Mr. Jean-Claude Loutreuil (Director): Mr. Jean-Claude Loutreuil was born in 1945 at
Saint Laurant Sur Mer in France. He is an MBA and has been working for the last 40
years mostly in pharmaceutical and chemical sectors as manager and consultant.

Mr. AbulKhalek (Director): Khalek was born in 1959. He is a Fellow Chartered

Accountant, and has his Masters of Commerce in Accounting from the University of
Dhaka. He joined ‗ProshikaManobikUnnayan Kendra‘, a leading national NGO in 1985
as an Auditor. He was Chief Internal Auditor while leaving Proshika in June 1993. Mr.
Khalek joined Berger Paints Bangladesh Limited in 1993 as Management Accountant.
Over the period, he served the company under different capacities and is presently
holding the position of Director- Finance & Company Secretary. Mr. Khalek is also a
member of the Board of Directors of Jenson & Nicholson (Bangladesh) Limited, a 100%
subsidiary of Berger Paints Bangladesh Limited. Mr. Khalek has been a member of the
Taxation & Corporate Laws Committee of the Institute of Chartered Accountants of
Bangladesh for the last 15 years. He is also serving the Foreign Investors‘ Chamber of
Commerce & Industries of Bangladesh as a member of Import, Tariff & Taxation Sub-
committee for the last 12 years and has served as the convener of its Finance Sub-
committee during the year 2006-2007. He is also serving the Metropolitan Chamber of
Commerce and Industries as member of Taxation and corporate law committee for the
last 2 years. Apart from his service, he has been one of the faculty members of The
Institute of Chartered Accountants of Bangladesh for the last 16 years and has authored a

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 good number of articles on trade and commerce. He is also a member of the Institute of
Internal Auditors of Bangladesh.

The Board of Directors are committed to transparency and accountability,

consistent with good corporate governance and practices. They play a pivotal role in
ensuring this across the Group, towards the protection of all their stakeholders including
minority shareholders and partners.

Executive Management Team:

Ms. Rupali Chowdhury

Managing Director
Since 2004

Mr. Abdul Khalek

Director, Finance &
Company Secretary

Md. Mohsin Habib Mr. Mohammad

Mr. NazimuddinHelali
Chowdhury AhsunUllah
GM - Manufacturing
GM – Sales & GM – Treasury &

Mr. Mushfequr Mr. H. M. RakibUllah Mr. RashedulHaque

Rahman GM – Human Bashar GM – Supply Chain
Resource & GM – Financial

Dr. A. S. M. Obaidullah
Md. Abu Nader Al
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Mahmud
Mokaddes
GM – Research &
GM – Information
 Mr. Sabbir Ahmed
GM – Business
Process, Risk &

Mr. Syed Salahuddin Mr. Anupam Paul Mr. A. K. M.

Abu Naser Plant Manager – SadequeNewaz
General Sales Manager Dhaka Factory Head of Marketing
Mr. A. M. M. Sajjad

Mr. Syed Mizanur Md. Kawsar Hasan Manager – Admin

Rahman Plant Manager – &Labour Relations

Manager – Human Chittagong

Factory

Berger has strong corporate governance. They follow a three step activity to support its corporate
governance:

1. Enhance good practices in financial reporting and risk management

2. Ensure establishment of adequate internal control and compliance with laws and
regulations
3. Ensure that the preparation, presentation and submission of financial statements have been
made in accordance with the prevailing laws, standards and regulations

Corporate Social Responsibility:

Berger has been very environment friendly and very supportive as well. They have been a
constant provider of the society. Berger continued to provide financial and other material aids to
organizations working for the development of autistic and differently challenged children in
Bangladesh.

Some of the activities Berger did are:

 Contributed paint for Nishpap School, a school for specially challenged Children in
Chittagong.

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  Distributed blankets for severely cold affected people.
 Organized the 18th round of Berger Young Painters‘ Art Competition (BYPAC) in
2013 to encourage young talents, also organized a painting competition for autistic
children.

Berger has extended its support in the field of sports also. The company was the title
sponsors of ―Berger Paints 39th national ―A‖ Chess Championship‖ in 2013. Berger Paints also co-
sponsored expeditions to Mount Everest and Kanchonjangha by pioneering mountaineers of
Bangladesh in recent years. The Company also facilitates interns of different academic
backgrounds to let them gain firsthand knowledge and experience of the corporate world, and
thus groom the potential leaders of the society.

Berger is trying to diversify itself in the corporate social responsibility and make an
impact on all aspects in societal needs.

Investors:

Report on activities are carried out by the Audit Committee, including any report made to
the Board of Directors to maximize company‘s long run profitability and profit growth.

Auditors:

Auditors Responsibility

Berger has a very fair audit system. They involve performing procedures to obtain audit
evidence about the amounts and disclosures in the financial statements. The procedures selected
depend on the auditors‘ judgment, including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error. In making those risk assessments, the
auditors consider internal control relevant to the entity‘s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances,

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but not for the purpose of expressing an opinion on the effectiveness of the entity‘s internal
control.

An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.

Internal Auditor:

BPBL has an internal audit function that acts as an independent appraisal function by
examining and evaluating the adequacy and efficiency of the company‘s system of internal
control. Internal audit resides administratively within the top management‘s organization and
report to the audit committee of the board of directors. This department has all time direct access
to the audit committee without any involvement of the management.

External Auditor:

The external auditor of BPBL are elected annually by their shareholders at the AGM of
the company. The audit committee of the board of directors makes a proposal to the shareholders
in respect of the appointment of the auditor based upon its evaluation of the qualifications and
independence of the auditor proposed for election on an annual basis.

Structure and Control System

Berger focuses well on keeping the activities and behaviors of employees in control to make the
overall organizational activities very efficient. From the corporate level to the sales level
employees, everywhere, Berger tries to empower people in order to stay motivated, deliver

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superior customer service, communicate with the Berger‘s stakeholder s and improve
relationships with them.

Personal Control:
Capabilities of employees are crucial to an organization‘s success. To improve the skills and
understanding of an employee‘s own tasks and responsibilities, managers look at their problems
and direct them with solutions. This occurs by face to face interactions. Employees at Berger
gain more ability to work towards the goals and objectives of the company by getting trained at
work.

Output Control:
Berger Paints Bangladesh Ltd. has got objectives that are very ambitious. For instance, in the
next 5 years, they want to increase their revenue to 100% above of what it is right now. To
achieve these objectives Berger continuously sets short term goals to be accomplished within a
fixed period of time. After this, the output is measured to see whether it matches with the
standards set by the organization. If any mismatch occurs, the causes of problems are analyzed
and activities of employees are controlled in such a way that reduces deficiency in the desired
level of outcome.

Behavior Control:
Berger tries to keep their employees motivated and focused towards the goals and objectives of
the organization. Set of guidelines are there to educate employees about their code of conduct
and the type of behavior expected from them in the organization at various functional levels. To
achieve the goals and objectives set by the company, team work and harmony is encouraged and
emphasized. Continuous innovation and R&D excellence is expected from the employees at all
levels. For this employees are also rewarded with incentives for performance up to the mark.
Berger also takes care of the fact that employees do not get too much stressed out due to work.
For this, they‘re allowed 14 days break from the workplace along than the 16 government
holidays throughout the year.

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Value Chain Analysis:

Primary Activities:

Demand Identification:
 Communicate with the Customers:
BPBL follows the demand in the market. They try to find the demand on the
market through their selling points, where customers visit and learn the customers
want and demand.

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  Communicate with the Retailers:
BPBL make strong communication with the retailers for serving the demand.
They try to know the market condition and the type of product the customers want
from the retailers through their Sales Force.

 Identifying Activities of the Indirect Competitors:

BPBL keep a close look to its indirect competitors move and how these
competitors create value to the customers mind. BPBL have a very strong
marketing and sales department who are responsible for these work. And they
come up with innovative products which attracts the customers.

 Evaluating Performance Frequently:

BPBL continuously evaluate their performance by looking into their sales in
every quarterly basis. For this, BPBL have a strong Finance Department who are
responsible for this work.

 Searching for Needs in Diverse Corporate Customers:

BPBL try to learn the needs of different market segments and try to relate those
segments with their brands. If it needs, they offer innovative new products.
Research and Development Department are responsible for this crucial work
which can create value in the consumers mind.

R & D Department:
 Provide Safest Paints:
BPBL provides quality protective paints which do not affect the customer‘s
environment. R&D Department continuously check it through the support of
Quality Assurance Department.

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  Value Creation:
BPBL creates value in the minds of the customers through introducing new
quality products which are creative in design.

 Innovative Design:
BPBL introduces products which are innovative and completely new for the
market segment.

 Less Smell:
The quality assurance department focus on the products which smell less for the
consumer‘s attraction.

 Cost Reduction:
BPBL try lowering the cost with the comparison of their product quality through
continuous development.

 Long-lasting:
The main focus of R&D department is to produce product colors which are there
for long-term.

Inbound Logistics:
 Factory Size:
They have a very big manufacturing factory size.

 Strong Warehousing System:

BPBL has a strong warehousing system where it stores their final products for
supply and their warehouse is strongly protected and maintained.

 Technological Advancement:
BPBL has an advanced technological machineries for which they can produce
more and quality products.

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  High Quality Raw Materials
BPBL uses the high quality raw materials for its products and they have their
quality assurance department for it.

 Importing Raw Materials:

BPBL imports some of the raw materials from abroad as not much of the quality
raw materials are not available in the country for its quality product.

Operations:
 Enhancing Customer Segments:
BPBL enhance customer segments by looking into the demands of the customers
from its distributors, retailers, and employees. They develop products in the wants
of customers from the different market segments.

 Customer Visit to their Home Décor:

BPBL has their home décor who are responsible for providing strong customer
service and attract customers.

 Designing through Customers Want:

They have the R&D Department who develops products focusing on the designs
that the customer wants.

Outbound Logistics:
 Diverse and Numerous Market Segments:
BPBL does business in numerous and diverse market segments from paint
industry to glue, gums, and adhesives. They have the marketing channels for this
value creation.

 Nation-wide Reach:
BPBL have their distributors and retailers all around the country.

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  Diverse Retail Formats:
They have different retail formats to serve different customer segments. They
have online store, home décor, color bank, local retailers, etc.

 Strong Distribution Network:

BPBL has a strong distribution network for which they are able to distribute the
product continuously to their consumers.

Marketing & Sales:

 Strong Marketing Partners:
They have strong marketing partners who are responsible for marketing in
different ways. Grey and Unitrend are responsible for their TV advertisement.
One step is responsible for making social events.

 Social Events:
They have strong association with their marketing and sales partners for which
they continuously support on social events.

 Art Competitions:
One Step advertising is responsible for their art competitions and it is held to
create innovation among the children.

 Contribution in Development of Residential Areas:

BPBL invests in different residential areas where they can reach out to their target
customers. In Baridhara, Gulshan, Banani, Dhanmondi, etc. they have set up gates
and invested in road ways.

 Color Banks, Home Décor, & Outlets:

They have all type of retail segments by which they can contact their customers
and provide service to them.

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  Strong Influence on Retailers:
BPBL has a strong influence on retailers for which they can make an impact on
the customers mind.

 Incentives to Retailers:
BPBL provides high compensation to their retailers to reach out the customers.

 Strong Event Partners:

BPBL has strong event partners who are well-renowned and make creative
advertisements and events.

Services:
 After Sales Services:
BPBL provides after sales services through their home décor, color bank, retailrs,
etc.

 Providing Experience to the Customers:

They provide direct experience to their customers by showing demo walls, online
support etc.

 Call Center:
BPBL has their call center services for which customers can receive the services
and information.

Support Activities:

Firm Infrastructure:
 Mitigating Risk:
BPBL tries to mitigate their risk by continuously keeping information about the
market and change.

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  Wide Array of Management Expertise Available:
Berger has a strong management expertise who can connect with their sales force
to reach to the customers.

 Strong Supplier Network:

They have strong supplier network worldwide and most of their key raw material
are imported from abroad.

 Strong Financial Stand:

BPBL has a strong financial stand and receives a huge amount of turnover each
year.

 Major Market Share:

BPBL has the largest market share in the country.

Human Resources:
 Trained Employees:
BPBL has trained employees who understands the customers demand and act
accordingly. They also are trained very frequently to learn about the change in the
market.

 Expert Painters:
BPBL has skilled and expert designers and painters of their own who knows the
customers need.

 Training to External Painters:

They provide trainings to some of the external local painters so that they can use
them when they require.

 Strong Expertise of Salesperson:

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 BPBL has some of the strong salesperson in the paint industry who can make
their product visible to the customers.

Technology Development:
 Advanced Machineries:
They have advanced technology and machineries to product high quality
products.

 Online Support:
BPBL provide online support to their customers.

Procurement:
 All Segments Where Paint can be Used:
BPBL focus on all the segments where paint can be used. They have been
providing all types of colors for this.

 Strong held of Marketing Channels

BPBL has a strong held on the marketing channels and most of their marketing
activities are done by the 3rd party.

 Strong held of Retailer Channels

They have a strong held of retailer channels by whom they reach to the customers

 Strong Supplier Network

BPBL has a very good supplier network who can continuously supply the
products to the customers.

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 4P‟s of Strategy:

Position:
 Mission: “We shall increase our turnover by 100 percent in every five years. We shall
remain socially committed ethical company.‖
 Vision: “To be the most preferred brand in the industry ensuring consumer delight.‖
 Values: Berger wants to maximize business through enhanced quality of product,
service, creative marketing and cost efficiency.

Priorities:
 Provide excellent quality through inspection and adequate investment.
 To maintain its position as the leading paint solutions provider in the country
 To provide best customer assistance through specialized services e.g. Berger Home
Décor.
 Capture greater share of customer value

Payments:
 Continue heavy investment in R&D and technologies for innovating products yet
maintain their standard quality.

 Invest in CSR such as protecting the environment, promoting young and creative talents,
contributing to the well being of autistic children, etc.

Performances:
 High quality control and efficient R&D teams
 Higher customer satisfaction through quality product and service
 Higher market share through diversification into every sphere of the industry. ( more than
50% market share in Bangladesh)
 Increase in turnover and gross profit margin.
 Maintain strong ties with dealers.

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SWOT Analysis:

Strengths:
One of Berger‘s core competency is their Research and Development capability. By utilizing
their R&D capability along with the help from sophisticated technology and strong financial
resource, they were able to innovate various type of products that meet wide varieties of
customer needs. By doing so, they actually have turned the wide range products into one of their
core competencies, as no competitors have such variety of product offerings in the paints
industry.
Another core competency of Berger is their product quality. With superior product quality and
their efficient distribution channel, Berger was able to capture greater share of the market.
Linking to their superior product quality and the availability of their product all over the country,
they have developed a very strong brand image. Actually their brand is so well positioned in the
customer‘s mind that whenever they think of paint, they instantly picture Berger in their mind.
Some of Berger‘s competitors share common strengths, but the fact is Berger has more or less all
of their competitors strength combined. This gives Berger a competitive edge. And using this
edge Berger should be able to avail the opportunities and tackle their threats.

Weakness:
In order to maintain the very best quality of their products, Berger needs a certain quality of raw
materials which is not available in Bangladesh. So they have to source these materials from
abroad, which leads to a longer time in delivery of goods and also incurs more cost. Thus Berger
needs to charge a bit higher than what their competitor are charging. So even though Berger has
superior quality product, many of the customers are choosing competitor‘s products in order to
save money. And this case is true especially for the rural area customers.

Opportunities
As far as the opportunities are concerned, from the industry, Berger has quite a number of
opportunities which were identified earlier in the SWOT identification section. Opportunities are
needed to be utilised by using the strengths, capabilities and core competencies, trying to

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eliminate the weaknesses and protect the company from potential threats. The opportunities are
explained below, keeping in mind all the factors mentioned above.

Rapid rate of urbanization, rising real estate business, rise of new customer segment and newly
emerging festivals are the opportunities that Berger can avail. Rapid rate of urbanization, rising
real estate business, rise of new customer segment and newly emerging festivals in Bangladesh
mean that the demand for paints is and will be in increase, especially for constructions purposes,
in new markets and in new segments. With Berger‘s current production plant, which is quite big
and capable of producing a huge amount of diversified product range, Berger can easily take this
opportunity in its favour by utilising its strengths, core competencies and capabilities and of
course if needed by overcoming the weaknesses and keeping the potential threats in mind to be
handled. Berger has an excellent R&D team which is capable of continuous innovation and the
production team is capable of producing quality paints. With its experience in business, customer
services, plant capacity, strong financial condition, efficient supply chain management,
technological sophistication, Berger can well avail these opportunities, be in a better position
than now and grab a greater market share. Currently most of Berger‘s competitors do not have so
many attributes as Berger has, that can help them grab these opportunities offered by the industry
and turn those into their favour. So Berger can now easily play the leader‘s role in the future
even in a better way than they are doing today. But high cost structure, which is a major
weakness of Berger, may appear to be a problem in the future. So this weakness needs to be
addressed immediately and corrective measures need to be taken.

Of course in the process of availing these opportunities, Berger will be able to increase their
strengths even more. There is another opportunity that many new weaknesses will come up
while doing so, which will open a window for Berger to correct the weaknesses and learn new
methods of dealing with the threats that eventually appear while doing businesses.

Threats
Threats are external factors which come for a business as they perform their activities and they
have little or no control over it. Since threats are negative for any business, all businesses need to
learn to tackle the threats and learn methods of handling these.

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Being a part of paint manufacturing industry, Berger is exposed to many threats, which include
political instability, corruption, low switching cost of buyers, high competitive rivalry,
emergence of invisible competitors, possibility of new environmental regulations, slow
economic development and exposure to foreign currency risk. Again, using their experience,
which is Berger‘s one of the strengths, Berger can find ways to face these threats just like a true
market leader. For the case of foreign currency risk, which is not in the company‘s hand, Berger
can take hedging policies, for example, to deal with the threats. New environmental regulations
can well challenge Berger‘s products and production system. With its R&D, it can find new
methods of productions. For the case of low switching cost of buyers, high competitive rivalry,
emergence of invisible competitors, possibility of new environmental regulations, Berger can of
course and in fact will have to find new competitive edges to overcome these threats. Here again,
the experience, strong financial condition and the R&D can play important role. Political
instability, corruption and slow economic growth are facts where Berger can hardly do anything
but use experience to deal with such major threats. These threats will definitely challenge
Berger‘s profitability and others activities which are the pillars of the business.
In the process of dealing with the threats, it is likely that Berger will come up with new methods,
which can eventually turn out to be its strengths. Since no other company has so many strengths
as Berger- most importantly experience, it is likely that Berger will be able to tackle these threats
better than any other competitors in the industry.

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Proposed Business Model:

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Recommendation:

Corporate Level:

 Problem
Mission Statement: ―We shall increase our turnover by 100 percent in every five years.
We shall remain socially committed ethical company.‖

Recommendation:
Formulate a proper mission statement

 Problem:
Exposure to currency risk

Solution:
Hedging Strategy

 Improve PR activities
 Involve in more joint ventures

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Conclusion
Berger Paint Bangladesh Limited is undoubtedly the market leader in the paint industry of
Bangladesh. They have achieved that position by providing superior quality product along with
their strong distribution channel. Continuous innovation from their R&D team has paid off
Berger by producing a huge portfolio of products. Berger is able to provide paint for almost
every possible surface available out there.
From the detailed analysis of Berger Paints Bangladesh Limited we found that the industry
growth rate is high. The rise of constructions of building and house has resulted in high demand
for paint. This growth of industry and the customer demand has contributed towards the growth
of Berger as a company.
The high growth rate of industry has attracted many other paint manufacturers. Though Berger
has the additive advantage of being the most experienced paint manufacturer in Bangladesh,
competitors are catching up. One area where Berger has the absolute advantage is their brand
position. People think of Berger whenever they think of paint. But their high quality offering
means higher production cost and that leads to a higher retail price. Competitors takes this
situation into their advantage and sell at a lower price, hence slowly taking Berger‘s market
share.
Berger also engaged in diversification, where they introduced new products like painting brush,
rollers and adhesive. This products are not widely popular like their paint. Thus Berger has the
scope of improving these products and marketing them widely.

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 REFERENCES

 Berger Paints. (n.d.). (Berger) Retrieved December 2014, from

http://www.bergerbd.com/

 Annual Report 2012. (n.d.). (Berger) Retrieved December 2014, from Bergerbd:

http://www.bergerbd.com/images/corporate_info/BAR2012.PDF

 Annual Report 2011. (n.d.). (Berger) Retrieved December 2014, from Bergerbd:

http://www.bergerbd.com/images/corporate_info/BAR2011.PDF

 Annual Report 2013. (n.d.). (Berger) Retrieved December 2014, from Bergerbd:

http://www.bergerbd.com/images/corporate_info/BAR2013.PDF

 Mukherjee, P. P. (2014, April). Marketing Strategies of Berger Piants limited. Retrieved

December 2014, from bracu:

http://dspace.bracu.ac.bd/bitstream/handle/10361/3214/11164055.pdf?sequence=

 Report on 4'ps of Berger. Retrieved December 2014, from Assignment point:

http://www.assignmentpoint.com/business/marketing-business/report-4-ps-berger

paints-bangladesh-limited.htm

 Sobhan. (2014, November). (Z. I. Faiyaz Mahmud, Interviewer) Dhaka, Bangladesh

 Rahim, M. A. (n.d.). Paint industry thrives on real estate boom. 5(158). Retrieved from

http://archive.thedailystar.net/2004/10/30/d41030050147.htm

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