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Project Report

“A STUDY OF DEALER’S BEHAVIOUR


IN MARKETING PAINTS”

Submitted to Punjab Technical University, Jalandhar


in partial fulfillment of the requirement of the degree of

Masters in Business Administration

By
Aman Walia
Student (MBA IV)
Roll No: 81001317006

GIAN JYOTI INSTITUTE OF MANAGEMENT AND


TECHNOLOGY, MOHALI.
2008-2010

Certificate

This is to certify that the research project report entitled, “A study of dealer,s behavior in
marketing paints” submitted in partial fulfillment of the requirement for the degree of
Master in Business Administration at GJIMT Mohali, (MBA IV) of the Punjab Technical
University, Jalandhar is a bonafide research work carried out by Aman Walia(MBA-1V,
Roll no. 81001317006) under my supervision and that no part of this research project has
been submitted for any other degree.
The assistance and help received during the course of this investigation has been
fully acknowledged.

Mr. Ashutosh Modi


GJIMT,Mohali
ACKNOWLEDGEMENT

At the very outset, I thank the Almighty for his kind blessings, which have made possible
this research work.

I would like to place on record my sincere and whole hearted sense of gratitude and in
debtness to my learned guide, Mr. Ashutosh modi, for his ever willing, competent and
generous help, continuous interest, valuable guidance and constant encouragement
throughout the period of my study.

No appropriate word could be traced to convey my profound gratitude to my affectionate


parents and my loving brother and sister for their selfless devotion, moral support,
inspiration and affection which always helped me to face all odds successfully.

Words are inadequate to acknowledge my esteemed friends for their ever encouraging
support, selfless love and care. They are valuable asset to me who have come to my help
countless times. I extend my sincere gratitude to them.

I hope that this study will prove to be beneficial in my near future.

Aman Walia
MBA IV
Roll No: 81001317006
GJIMT,Mohali
TABLE OF CONTENTS

CHAPTERS PAGE NO

CHAPTER 1 - INTRODUCTION 1-4

CHAPTER 2 - DESIGN OF THE STUDY 5-7

CHAPTER 3 – INDUSTRY AND COMAPY PROFILE 8-23

CHAPTER 4 - ANALYSIS AND INTERPRETATION OF DATA 24-46

CHAPTER 5 - SUMMARY OF FINDINGS AND SUGGESTION 47-49

BIBLIOGRAPHY

ANNEXURE
LIST OF TABLES
TABLE TITLE PAGE NO.

NO
1.1 TABLE SHOWING RESPONDENTS
EXPERIENCE IN PAINT BUSINESS
1.2 TABLE SHOWING REASON FOR STARTING
A HARDWARE SHOP
1.3 TABLE SHOWING RESPONDENTS
PRODUCT RANGE
1.4 TABLE SHOWING RESPONDENT’S MAIN
PRODUCT
1.5 TABLE SHOWING OPINION OF DEALERS
ABOUT THE PRICE OF PAINTS IN GENERAL
1.6 TABLE SHOWING THE OPINION OF
DEALERS ABOUT THE PRICE OF
DIFFERENT PAINTS
1.7 TABLE SHOWING EXPECTATION OF
DEALERS WHILE TAKING A DEALERSHIP
1.8 TABLE SHOWING DEALER’S
RECOMMENDATION TO CUSTOMERS IF
THEY WON’T ASKS FOR A PARTICULAR
BRAND.
1.9 TABLE SHOWING REASON FOR PUSHING A
PARTICULAR BRAND
1.10 TABLE SHOWING RESPONDENTS
DEALERSHIP WITH SURFA COATS
1.11 TABLE SHOWING PERIOD OF THEIR
DEALERSHIP WITH SURFA COATS
(BANGALORE) LIMITED
1.12 TABLE SHOWING DIFFICULTIES FACED BY
THE DEALERS FROM THE COMPANY
1.13 TABLE SHOWING RATING OF SURFA
COATS ON DIFFERENT PARAMETERS
1.14 TABLE SHOWING OPINION OF DEALERS
ABOUT THE QUALITY OF SURFA COATS
1.15 TABLE SHOWING THE OPINION OF
DEALERS ABOUT THE QUALITY OF
DIFFERENT PAINTS
1.16 TABLE SHOWING PERCENTAGE OF SURFA
COATS SALES FROM THE SHOPS TOTAL
TURNOVER
1.17 TABLE SHOWING TOTAL TURNOVER OF
THE SHOP
1.18 TABLE SHOWING COMPARISON OF TOTAL
TURN OVER OF THE SHOP AND SURFA
COATS SHARE OF SALES
1.19 TABLE SHOWING REASON FOR SELLING
PARTICULAR BRAND TO THE MAXIMUM
EXTENT
1.20 TABLE SHOWING REASON FOR
RECOMMENDING A PARTICULAR BRAND
TO THE CUSTOMER

LIST OF GRAPHS
GRAPH TITLE PAGE NO.

NO
2.1 PIE CHART SHOWING RESPONDENTS
EXPERIENCE IN PAINT BUSINESS
2.2 PIE CHART SHOWING REASON FOR
STARTING A HARDWARE SHOP
2.3 GRAPH SHOWING RESPONDENTS
PRODUCT RANGE
2.4 GRAPH SHOWING RESPONDENT’S MAIN
PRODUCT
2.5 GRAPH SHOWING OPINION OF DEALERS
ABOUT THE PRICE OF PAINTS IN GENERAL
2.6 GRAPH SHOWING THE OPINION OF
DEALERS ABOUT THE PRICE OF
DIFFERENT PAINTS
2.7 PIE CHART SHOWING EXPECTATION OF
DEALERS WHILE TAKING A DEALERSHIP
2.8 PIE CHART SHOWING DEALER’S
RECOMMENDATION TO CUSTOMERS IF
THEY WON’T ASKS FOR A PARTICULAR
BRAND.
2.9 PIE CHART SHOWING REASON FOR
PUSHING A PARTICULAR BRAND
2.10 PIE CHART SHOWING RESPONDENTS
DEALERSHIP WITH SURFA COATS
2.11 PIE CHART SHOWING PERIOD OF THEIR
DEALERSHIP WITH SURFA COATS
(BANGALORE) LIMITED
2.12 GRAPH SHOWING DIFFICULTIES FACED BY
THE DEALERS FROM THE COMPANY
2.13 GRAPH SHOWING RATING OF SURFA
COATS ON DIFFERENT PARAMETERS
2.14 PIE CHART SHOWING OPINION OF
DEALERS ABOUT THE QUALITY OF SURFA
COATS
2.15 GRAPH SHOWING THE OPINION OF
DEALERS ABOUT THE QUALITY OF
DIFFERENT PAINTS
2.16 PIE CHART SHOWING PERCENTAGE OF
SURFA COATS SALES FROM THE SHOPS
TOTAL TURNOVER
2.17 GRAPH SHOWING TOTAL TURNOVER OF
THE SHOP
2.18 GRAPH SHOWING COMPARISON OF TOTAL
TURN OVER OF THE SHOP AND SURFA
COATS SHARE OF SALES
2.19 PIE CHART SHOWING REASON FOR
SELLING PARTICULAR BRAND TO THE
MAXIMUM EXTENT
2.20 PIE CHART SHOWING REASON FOR
RECOMMENDING A PARTICULAR BRAND
TO THE CUSTOMER

EXECUTIVE SUMMARY

The intention of the study is to understand dealer’s behavior while marketing of


paints. Here a survey was conducted for the purpose of obtaining dealer’s view about
taking a dealership of different paints. This was done by administering questionnaires to
the sample of 100 dealers. The sample was randomly chosen on the basis of convenience.
In India first paint manufacturing factory was started in the year 1902. As a result
continuous efforts and improvements were made in the field of paint technology for
developing better decorative products. The marketing costs, environment, ecology and
pollution control are major issues that have an impact on the paint market. Raw material
constraints, High working capital requirements are major threats to the industry.
Surfa Coats (Bangalore) Limited had its modest beginning in the year 1979 as
small scale industry manufacturing cement paint and allied products. The company was
initially started with just two products and with one manufacturing unit but now they
added several more product lines along with setting up of two additional states of art
manufacturing units in Karnataka and one unit in Chennai. Today Surfa Coats
(Bangalore) Limited is one of the growing company. It was established to serve the
society by marketing the quality products at reasonable price. The success of company is
mainly depended on the dealers.
The survey found that dealers have been selling Surfa coat paints due to high
margin and role of sales representatives. 95% of respondents have a 1to 20 years
experience in this field. Most of the dealers are doing this business because of more
profitability. Most of the dealers selling Asian paint as well as Surfa coats but 71% of
them are selling Asian paint as their main product. 84% of dealers have a opinion that
price of Surfa coats is average when compared to other products. While taking a
dealership 36% of them expect a good margin. Most of the time dealers recommend
Surfa coats to their customer because good margin and better quality.33% of dealers push
a particular product because of the commission they get from the sale of a particular
product. 65% of the Surfa coats dealers took the dealership recently.55% of respondents
faced the problem of misrepresentation by the sales representatives of the company.
Dealers have a very good opinion about the terms of payment and delivery of the product.
70% of respondents said that quality of ICI paints is good. Most of Surfa dealers are big
business magnates. Asian paints stands first in the market.
The study found various shortcomings of the company. The company’s market
share was very low and the company had settled in unorganized sectors. Surfa Coats
(Bangalore) Limited has mainly targeted its sales to Bangalore city. To have an edge over
the competitor the company has been practicing push strategy because its brand
awareness was low. Good quality and high margin played major role in pushing a
particular product. All the paint companies must try to decrease the price of their
products.
CHAPTER -1

Introduction
 General Introduction
 Composition of paint
 Types of paint

INTRODUCTION

General Introduction
The Paints are extensively being used in our daily life as well as in
industries for decorative and protective coatings plays an important role.
Paint industries in India have widely been developed with the help of petro-
chemical industry and development of paint technology it is now possible to
manufacture large quantities of improved quality in less time and
investment.

‘Paint’ can be briefly described as a homogenous and complex


mixture consisting mainly pigments, binders (resins) and solvents. Added to
these, are a number of additives, to impart or enhance certain specific
properties. The mixture (paint), when applied as a thin coating of say 25 to
50 microns (one to two thousand) dries to a hard film due to the
evaporation of the solvents, polymerization chemical reaction or both. This
dry paint film has got the property to obliterate and protect the surface on
which it is applied. Evaporation of solvents and chemical reaction are very
much dependent on surrounding conditions such as temperature, humidity,
ventilation etc., and have an appreciable influence on the drying rate of a
paint film. The drying will be relatively slower at lower temperature and
higher humidity. According to Indian Standard Specifications Test Methods
the drying time is determined at 27c and relative humidity of 65%.

The term ‘Paint’ and ‘Surface coating’ are often used interchangeably.
Surface coating is a more general description of any material that may be
applied as a thin continuous layer to the surface. Paint was traditionally
used to distinguish pigmented materials from clear films, which are more
properly called ‘Lacquers’ or ‘Varnishes’.

Composition of Paint:
 Pigments:
Pigments render colors and opacity to the paint. Pigments
are solid materials in powder form, incorporated in paints to give
opacity, colors or chemical reinforcement to the film. In primers the
pigments are mainly incorporated to give rust inhibiting properties.
 Media or Binder or Vehicle:
Binders hold the paint together and also bind it to the
surface being painted, thus promoting durability. Paint as explained
earlier is essentially an intimate blend of pigments, medium and
solvent. Pigments have one property in common, i.e., they are all
powders and as such are of no use in either protection or decoration,
until they are blended with materials, which are capable of forming a
continuous film, and this former is known as the medium or binder or
vehicle.
 Solvents or Thinners:
Solvents give paint its flowing property, enabling
brushing/rolling on a surface. In a liquid paint, solvents or thinners
serve mainly to reduce the viscosity of the paint in order to make it
suitable for application as required and enable the paint to wet and
spread on the surface in a continuous manner. Depending on the
solvent used, paints can be categorized as water-based or oil-based.
 Additives:
Additives endow the paint with special properties such as
resistance to fungus, rust, etc.

Why Paints are used?


Normally paints are used in our homes on walls, metal and
wooden surfaces to protect from corrosion and enhance esthetic
value. Eventually these will necessarily need painting because with
time their beauty and strength decreases.
Wall surfaces chip and crack, metal rust and corrode, while
wooden furniture and doors get warped and scratched. Different
paints have specific properties that prevent or at least delay this. They
form a protective layer around the substrate, keeping it relatively safe
and protected from environmental abuses. Naturally, since walls are
different from metal, which in turn have properties dissimilar to wood,
each surface requires a different type of paint. Today, different paint
has been developed, specific to each category.

Types of Paint
Paints are generally classified into
1. Decorative Paints: Mainly household paints. These are generally
of air-drying quality.
2. Industrial Paints: These can be either of air-drying or stoving
quality. These are used on while goods, automobiles, marine
transport, coils etc.,
3. High Performance Coatings: These paints generally air dry, at
room temperature or with the help of a curing agent. These paints are
used for painting structures under marine conditions and in chemical
factories like fertilizer, petrochemical in highly corrosive atmospheres.
4. Varnishes or Lacquers: These can be generally considered as
unpigmented paints, i.e. paints without any obliterating properties.
5. Powder Coatings: These are coating materials in powder form
prepared from special solid resins, pigments and hardening agents.
They are applied by electrostatic spraying and cured by stoving.

CHAPTER 2
Design of the study
 Problem Statement
 Objective of the Study
 Scope of the Study
 Research Methodology
 Limitations of the study

DESIGN OF THE STUDY


Problem Statement:

The study is undertaken to know the dealer expectations while


selling a product and to understand how the company is different
in marketing its product.
It is vital for any organization in today’s competitive
environment to understand the perception of their dealers by which
the company can make the necessary changes according to the
dealer’s expectation and customers requirements. Hence it is named
as “A study of dealer’s behavior in marketing paints’’.
Objective of the Study:

• To find out the dealers attitude while pushing a product.


• To know the dealers expectation while taking a dealership of a
particular brand
• To know the dealers opinion about the price of paints in general.
• To know the dealer perception towards “Surfa coats” in Bangalore.
• To know the position of Surfa coats against other leading paint
companies.
• To list out the factors that influences the dealers while taking
dealership.
• To give proper idea for improving the marketing of paints.
• To evaluate behavior of dealers while pushing a particular product.
Scope of the Study:
The study of this project is confined to Bangalore city only. This study was
conducted to know the behavior of dealers while selling a particular product.
The study was also intended to know the dealer perception towards the Surfa
coats.

RESEARCH METHODOLOGY

1. Type of research: Descriptive research by survey method

2. Data sources:
Primary data:
A Structured questionnaire was administered to obtain
data for analyzing the dealer’s perception towards various
brands of paint with reference to Surfa coats.
• Secondary data:
Secondary data was collected through Textbooks,
company profile, magazines, and from different website.

3. Sampling Plan

• Sampling Method: Non probability (Convenient).

• Sample Unit: Paint Dealers in Bangalore city

• Sample size: 100 dealers.

4. Research instrument: Structured Questionnaire

5. Methodology: Data was collected by giving questionnaire to


respondents (personal interview).
6. Plan of analysis: All the data which was collected are based on
variables which would explain the solution to
the problem.

Limitations of the study

• The study was limited compared to the total population of Bangalore


city.
• The does not claim cent percent of accuracy since the data used are
primary in nature. Further there arise the levels of accuracy in relation to
secondary data, but can not claim accuracy in relation to the primary
information collected through survey method, because of recall bias. Enough
efforts have been made to reduce the bias.
• The study was conducted with the basic assumption that the
information given by the respondent is factual and represents their true
feeling.
• The major limitation was data availability. The company did not
disclose some of the data. Hence the study has been managed with the
available and approximate data.
• The study was limited to small number of sample size i.e. 100 units.
• The time to complete the study was also one of the major limitations.

Operational Definition of the Study

• Convenience Sampling
Convenience sampling is used when the researcher is
interested in getting an inexpensive approximation of the truth. As the
name implies the sample is elected because they are convenient.
• Descriptive Research
Descriptive research is used to obtain information concerning
the current status of the phenomena to describe, “What exists” with
respect to variables or conditions in a situation.
• Marketing Research
Marketing research is the collective analysis and interpretation
of data for guiding marketing decisions.
CHAPTER 3

Industry & Company profile


 Growth and Development of the
Industry
 Future of the Industry
 Threats to the Industry
 Profile of the organization Product
profile

INDUSTRY PROFILE
Growth and Development of the Industry
Paint industry is high raw material intensive and reasonable level of
fixed capital requirement industry. Because of this nature of the industry,
there is mushroom growth of small and unorganized sector tiny paint
manufacturers in India. Some of the main raw materials used in the
manufacture of paints are Pthalic Anhydride, Titanium Dioxide, Penta
Paraxylene, Orthoxylene, Pigments and Additives.
The Indian paint industry has become strong and secure over the past
four years with the organized sector taking away shares from the
unorganized segment, making it worth Rs 7500 cr. The paint market is
expected to grow at 8 to 10 % p.a. over the next few years. The growth
could further rise, if industrial activity picks up as the industrial paint
segment is gaining more importance. Asian Paints offers the best exposure
being the market leader and an innovative marketing company.

Background

• The Indian paint market, estimated to be 400,000 TPA or Rs 30 bn


(value-wise), is fragmented. Paint producers comprise of large ‘organized’
producers and small scale ‘unorganized’ producers.
• Overall demand for paints grew 18% yoy (by value) in FY96, up from
12% in FY95, and 8% in FY94. Demand growth was 25% yoy in the industrial
paint segment, and 16% yoy in the decorative paint segment.
• Organized sector witnessed high volume growth as reduction in excise
duties (40% to 18% over last four years) and extension of MODVAT to petro-
based inputs led to a significant reduction in the price differential between the
organized and the unorganized sector.(DEMAND)
• The government consumes 40% of all paint production. Hence, any
reduction in official spending leads to a fall in demand.
• Since most of the raw materials used are petroleum based, paint
companies benefit when the petrochemical industry goes into its cyclical
downswing.

Structure

• The Indian paint industry is dominated by the organized sector (60%


market share). There are around 25 large and medium companies in the
organized sector having a capacity of 330,000 TPA. About 2,200 units in the
unorganized sector having a total capacity of 250,000 TPA share the balance
40%.
• The products of the paint industry can be classified as:

1. Decorative/Architectural finishes

2. Industrial finishes.

• Decorative paints form 70% of the market and include limestone


coatings, acrylic and oil-bound distempers, enamels, cement paints (Super
Snowcem), super acrylic and plastic emulsions (Apcolite). They are used in
household painting, architectural and other display purposes. This segment
is price sensitive. Sale of these paints is seasonal with over 50% of sales
taking place during the September-December festival seasons.
• Industrial paints comprising 30% of the paint market include
automotive paints, high performance coatings, coil coatings and powder
coatings. This segment is relatively price inelastic, but is susceptible to end
user business cycles. (DEMAND INDL PAINTS)
• The industrial paint business is technologically intensive; Most Indian
companies have tied up or are tying up with international majors to have
access to the latest technology as it is not available locally. A tie-up with
global paint manufacturers also enables the domestic company to supply to
local customers of its partners (e.g. Goodlass Nerolac is a major supplier to
Maruti Suzuki because of Kansai, its Japanese collaborator and Suzuki
relations). COLLABORATORS
• The paints industry is a raw material intensive, with over 300 inputs
(50% are petro based derivatives) going into the manufacturing process. Key
raw materials that go into paint manufacture are pigments (titanium dioxide),
solvents (Orthoxylene), binders, additives, and white cement/urea - all of
which together account for 55% of the total cost. .
• The paint industry is not capital intensive. However, it has large entry
barriers in the form of distribution networks, and product branding. Working
capital management is important due to large varieties of raw materials and
finished goods.

Prospects

• India has one of the lowest per capita consumption of paints in the
world at 0.34 kgs as compared to the world average of 22 kgs indicating a
huge demand potential. The industry is also in sharp contrast to the world
where the demand for industrial paints is much higher than decorative. Indian
industry is however witnessing a shift towards the more lucrative industrial
paint segment.
• In the decorative segment, rural markets hold the key. Successful
monsoons are thus vital for growth in this segment. Moreover, increase in the
number of housing units will see a secular demand growth of 10 to 12% per
annum for decorative paints (It is estimated that India will add 40 m housing
units in the next 7-8 years to bridge the massive shortfall in supply).
• In the industrial segment, more than 50% of demand comes from
automobile sector followed by 15-20% from consumer durables. With the
entry of MNCs in both these segments, the emphasis on paint quality has
increased. However a slowdown in the economy can lead to poor off take of
these paints.
• With economic liberalization the market for lucrative industrial paints is
expected to grow at 18% pa in tune with the growth in the user industries like
automobiles and consumer durable. The other users of industrial paints -
chemical units, power units, and refineries - are all increasing capacities
leading to increased demand.
• Increasing competition will reduce the pricing power of all companies.
This coupled with high selling costs is likely to squeeze margins. The
organized sector will see their market share increase because the protection
offered to the small-scale sector has been reduced.
Future of the Industry
India is one of the lowest per capita consumption of paint in the
world, thereby, indicating a huge demand potential in the years to
come. The paint market is expected to grow at 8-10% p.a. over the
next few years. In the decorative paints segment, rural markets hold
good potential and increasing number of housing units will see a good
growth in this sector.
Central and state governments are committed to provide
shelter for each citizen, which will boost the demand for decorative
paints in the years to come. Apart from the commitment of central and
state governments to provide houses for “low income” group of
population, Housing Development Corporation, commercial banks
have been liberally financing the housing sector - both group Housing
and individual housing. Such activities will result in creating increased
demand for architectural paints.
Overall, the outlook for the paint industry appears very bright
and with the rising incomes and living standards, the secondary
market (repainting of buildings) should also grow fast. In the light of
foregoing facts, the growth potential for the company looks extremely
bright, in the years to come.

Major Issues That Have an Impact on the Paint Market


• Marketing costs
The electronic media have made tremendous strides with
liberalization, in consequence of which media costs have increased.
Retailing practices have meant that companies have to establish
elaborate distribution networks and build effective service
organization.
• Environment and ecology
The issues related to the protection of environment and ecology
hardly needs to be emphasized while considering the subject of
“Protection with paints”. At present, paint technology heavily depends
on petroleum-based materials, which are expensive, diminishing in
supply and polluting in nature. The R&D efforts will have to be directed
by the paint industry as well as the research institutes towards
developing high solid or solvent free coating based on renewable
resources.
• Pollution Control
Pollution is one of the major ill effects of paint application. The
recent international trends are towards development and usage of
paints which are less polluting such as:
o Water based coatings
o High solid coatings
o Power coatings

Threats to the Industry

 Raw material Constraints


Titanium dioxide, anhydride, Paraxylene, turpentine,
white spirit, glycerin, and butanol and cobalt pigment is the major raw
material components. Being raw material intensive; its supply position
impacts profitability to a large extent. Due to local shortages domestic
players are forced to import raw materials requirements in bulk it
increased holding cost.

 High working capital requirements


Working capital intensity is reflected by the fact that this forms
14 to 16 percent of sales each year. Usually, it is the small players
who are badly hit for funds because they are not in a position to
demand credit from suppliers and cutthroat competition; they have to
supply products on credit.
Paints are produced in batches and companies need to
maintain a wide range of shades throughout the year even though
sales are concentrated in the second half of the year due to
seasonality of demand, this naturally translates into holding large
inventory levels.

PROFILE OF THE ORGANISATION


Origin of the Organization
SURFA COATS began its journey in the year 1979 as small-
scale industry manufacturing. Initially they began with cement paints
and allied products. Today, the company has emerged as a leader in
the entire south zone and is a multi-product, multi-crore paint
organization headquartered in Bangalore with manufacturing units in
Karnataka and Tamil Nadu and sales offices in major cities. A leading
name in the paint industry, Surfa Coats has been driven by a single-
minded focus to create only the very best.
Growth and Development of the Organization
SURFA COATS has dedicated in preserving nature by
manufacturing only eco-friendly products and has placed maximum
emphasis on this policy by adapting water base technology as against
solvent base technology, which is harmful to the environment. Water-
based products contain no harmful toxic materials, cause no irritation
and are not hazardous to health. Moreover, they emit no polluting
fumes and are totally environment friendly. Constant research and
development have also opened the way for new and better products
that are eco-friendly.
SURFA COATS optimum size ensures a great deal of attention
being given to customer relations, values and benefits. Constantly
matching customer expectations by catering to specific customer
requirements sets Surfa Coats apart from the rest. Paints, textures,
designer shades, custom color or even delivery, the company’s
service level is in a class of its own. In addition, Surfa Coats has
interlinked its network of dealers throughout South India to ensure
total customer convenience and easy availability of products. At Surfa
Coats, the guiding philosophy revolves around the customer and the
environment.

Quality Assurance Programme


Surfa Coats watchword has been quality right from the
beginning and has earned the prestigious ISI mark of quality. In fact,
Surfa Coats is the first paint manufacturer in the states of Karnataka,
Andhra Pradesh, Tamil Nadu and Pondicherry to get this certification.
At Surfa Coats production is based on world class manufacturing
facilities backed by sophisticated technologies that are in use the
world over by globally renowned paint companies. The company has
made optimum use of IT and has computerized all operations
especially in administration, marketing and accounting departments.
Top professionals aided by computers are at work to help Surfa Coats
rise way above the competition.

Personnel and the People in the Forefront:


In the initial days Surfa Coats was run by a handful of
employees, but the past two decades have seen the company’s staff
strength grow to approximately 250. Today the company is backed by
excellent infrastructure facilities on the production line and technical
guidance levels. With professionals at the administration, marketing,
accounting front and aided by the computer, the company has grown
to the competition prevailing in the highly competitive field of paints.
Surfa Coats in association with the Indian Institute of Architects
have instituted the SURFA COATS PILOO MODY AWARD in the year
1985. This award is given to the best student from the schools of
architecture. The award is judged by a panel of eminent architects like
Ms Charles Correa, Achut Kanvinande, Rusi Khambatta, Karekar,
Bhalla to name a few. The award carries a cash prize and a certificate.

Re-Affirming Values and Customer Satisfaction


The Surfa Coats (Bangalore) Limited’s optimum size ensures a
great deal of attention being given to customer relations, values and
benefits. Constantly matching customer expectation by catering to
specific customer requirements sets Surfa Coats (Bangalore) Limited
apart from the rest. Paints, texture, designer shades, custom colors or
even delivery, the company’s service is in a class of its own.
At Surfa Coats (Bangalore) Limited, the guiding philosophy
revolve around the customer and the environment. Every order,
regardless of size gets undivided attention. So, customers come back
to Surfa Coats, for all their painting needs repeatedly. Excellent
personal contact or rapport with the dealers and customers is the main
strength of the company. Almost all the dealers and customers have
personal bondage with the company and its products.

Major Clientele
Company’s clientele includes leading architects, builders, civil
contractors, developers and painting contractors. Below are the lists of
leading clientele (Bangalore);
• ISRO
• ELECTRICITY BOARDS
• INFOSYS
• ORACLE TECHNOLOGIES
• TAJ GROUP OF HOTELS
• HOUSING BOARDS
• MILITARY ENGINEERING SERVICES
• RAHEJA GROUP (Raheja Park, Raheja Residency, Raheja Harbour,
Raheja Chambers)
• INDIAN INSTITUTE OF PLANTATION MANAGEMENT
• NATIONAL CONSTRUCTION CORPAORATION
• IBM
• WIPRO C2 PROJECT (Electronic City)
• BISHOP COTTON BOYS HIGH SCHOOL
• ST. JOSEPH’S COLLEGE
• MALLYA HOSPITAL
• TRINITYN HEART FOUNDATION
• BHEL TOWNSHIP
• ST. MARY’S CHURCH
• ST. ANDREW’S CHURCH and many more

Product Profile
BRAND NAME PRODUCT CATEGORY
Surfa Cem Decorative Water-Proof
Cement Paint
Surfa Tex Matt Textured Matt Finish for
Exteriors
Surfex Premium Pure Acrylic Exterior
Emulsion Paint
Surface Smooth Budget Exterior
Emulsion
Surfa Nova Designer Textured Coatings
for Interiors
Celeste Premium Luxury Wall Finish
for Interiors
Surfalac Acrylic Emulsion Acrylic Emulsion Paint for
Interiors
Surfa Acrylic Acrylic Distemper For
Distemper Interiors
Surfa Antiche Premium Italian Marble
Finish for Interiors
Surfa Multicolor Multi Color Coating System
Surfalac Primers Range of Primers for
Cement, Wood and Metal
Surfaces
Emerald MPS Enamel Premium High Gloss
Synthetic Enamel
Coral MPS Enamel Multi Purpose Synthetic
Enamel
Surfa Satin Finishes Enamel with Egg Shell
Finish
Surfa Floor Coat Floor Paint with Glossy
Finish
Surfa Wall Putty Acrylic Wall Putty for
Interiors
Surfa Unicoat KPF Knifing Paste Filler (Grey
and White)
Surfa Hammer tone Hammer tone Finish
Finish
Surfa Synthetic Clear Synthetic Clear Varnish for
Woodwork Like Doors
Windows and Furniture
Surfa Hi-Tint Strainers Universal Strainers for
Tinting Interior Paints

Paint Systems
A typical architectural paint system might consist of a ‘primer’,
an ‘undercoat’ and a’topcoat’. The primer is designed largely to seal
the substrate and provide a means of achieving good adhesion
between the substrate and undercoat. It also provides protection to
the substrate against corrosion or rotting. The undercoat may
contribute to opacity, but its main purpose is to contribute significantly
to the obliteration of the surface and to provide a smooth surface upon
which to apply the topcoat. The smooth surface is obtained by
abrading the dried undercoat with fine Tungsten Carbide Paper or by
other suitable means. The topcoat is applied to complete the process
of obliteration and to provide an appropriate aesthetic and protective
effect. The system as a whole will finally determine both these
properties.

Paint/Coating System Preparation is as Follows

1. Surface Preparation: This is done to eliminate contaminants


like oil and grease and foreign particles from the surface before painting. This
is also required to make the surface receptive to the paint in order to have
good adhesion. Correct surface preparation is essential to achieve optimum
performance from any protective or decorative painting system. The methods
of surface preparation vary according to the type and condition of the
substrate to be coated.
2. Priming the Surface: A primer is the first coat of paint to be
applied to a substrate and is often designed to perform both as a primer and
sealer coat. Primers are formulated according to the type of substrate to be
coated, to ensure good anchorage and to provide a suitable base for
applying the next coat.
3. Undercoats, Fillers and Stoppers: These are applied after the
primer coat. The main purpose of the undercoat is to provide additional
leveling and also to provide a suitable base color for the finishing coat.
Compositions known as fillers, stoppers and putty are
heavily pigmented materials used for filling dents, pits etc., in
order to eliminate the various undulation present on the surface.
4. Second Primer Coat: In case of architectural painting of interior
walls the second coat of primer is applied to sandwich between two
primer coats since painting directly on putty leads to a patchy appearance.
5. Top Coats: These are applied as a final coat to provide the
required color, finish and protection. Topcoats can be matt, eggshell or full-
gloss in appearance. Generally two coats must be applied to the desired
finish and color.

Methods of Application
There are four main methods of applying paint
1. By spreading e.g. with brush or roller.
2. By spraying e.g. air-fed spray, airless spray, hot spray and
electrostatic spray.
3. By flow coating e.g. dipping, curtain coating, roller coating.
4. By electro deposition.

A specific method is adopted for the market in which the paint is


used. Each type of paint is formulated to meet the needs of the
application method. Spreading by brush or by hand-held roller is
generally the main method for applying decorative/architectural paints
in the maintenance of structural steel works and buildings.
Application by spraying is the most widely used method. It is used
for painting motorcars, steel furniture, domestic appliances, etc. The
various forms of spray painting make it a particularly versatile method
of application.
Electrodepositing as a method of painting has become a growth
area during the last two decades. It has become established as an
important method of priming the steel body shell of motorcars. The
entire process involves degreasing, phosphate treatment, electro
deposition of primer, spray application of surfacer and finishing coats.
This has raised the standards of corrosion resistance and general-
appearance, considerably. Electro deposition may take place with the
car body acting as either the anode or the cathode.

Storage Life of Paint


Paints/surface coatings whether they are of drying or stoving
type, are not inert materials and have reactive chemical groups
present in them. The presence of these reactive groups provide the
paint the ability to dry when applied as a thin film or coating. The
presence of reactive groups also put certain limitations on the storage
life of the paint. Some ageing process due to the reactive nature of the
paint is bound to occur, generally resulting in increased viscosity that
ultimately leads to solidification by cooling of the product.

Guide for Painting


Painting is exciting colour selection is a very conscious
process. The effects on the surroundings can be used to enhance the
uniqueness of the painted premises – may be office, industry,
community or home space. Due care is to be taken before starting on
painting, while painting and post painting.
1. Care to be taken before and while painting
• Identify areas to be painted.
• Check for areas that require repairs before starting
painting, check for cracks in the walls, seepage, loose plaster etc. Complete
all repairs before taking up painting.
• Finalise colour/shade scheme.
• Measure the area to be painted.
• Check out the range of products to see the options
available to meet one’s needs.
• Work out approximate budget for the painting process.
• Ensure that painting area is well-ventilated and free from
dust
• Ensure that all furniture and valuables are covered with
damp clothes to guard against any possible damage due to spillage of paint.
• Keep children away from paints and solvents, as they
are highly inflammable.
• Tell the painter to prepare the surface for painting.
• Stir and strain paints thoroughly before application. The
paint should also be thinned properly to ensure adequate application
viscosity.

2. Post painting care


• To remove stains and dust from a painted surface, use a
clean white cloth or sponge, dipped in mild detergent solution. After cleaning
wash away all traces of detergent and wipe dry.
• Never use water for spot cleaning unless the wall is totally
free from extraneous dust.
• Never use water to clean wooden surface.
• For distempered walls, minimum pressure should be
applied while cleaning.
• Enamel surfaces should be cleaned with a detergent
solution and immediately wiped dry. Never use thinners to clean enamel
painted surfaces.

CHAPTER 4

Data Analysis
ANALYSIS OF DATA
Respondents Business Period
1.1 Table showing the respondents experience in this field
Sl. No. Years No of Percentage
Respondents
1 0-10 45 45
2 11-20 50 50
3 21-30 03 03
4 Above 30 years 02 02
Source: Primary Data
Analysis and Interpretation
From the above table it is clear that 50 % of respondents are
doing this business from past 11to 20 years 95% of respondents are
falling in between 0 to 20 years. Only two percent of respondents are
experience above 30 years.
2.1 Pie chart showing the respondents experience in this field

3 4
3% 2%

1
45%

2
50%

Reason for Starting Hardware Shop


1.2 Table showing the reason for starting a hardware shop
Sl. No. Reason No of Respondents Percentage
1 High profit 45 26
2 Family 30 17
business
3 High demand 80 46
4 Others 20 11
Source: Primary Data
Analysis and Interpretation
From the above table it is clear that most of the respondents
doing this business because of high demand for the product in the
market. 26% of the respondents are doing this business because of
more profitability and 17% of them are doing this because family
orientation.
2.2 Pie chart showing the reason for starting hardware shop

4
1
11%
26%

3 2
46% 17%

Respondents Product Range


1.3 Table showing the respondents product range
Sl. No. Products No of Respondents Percentage
1 Asian paints 90 33
2 Goodlass 05 02
Nerolac
3 Berger Paints 30 11
4 Surfa coats 100 36
5 ICI paints 50 18
Source: Primary Data

2.3 Graph showing the respondents product range


120

100
100
90

80
Respondents

60
50

40
30

20
5
0
1 2 3 4 5
Products

Respondents Main Product


1.4 Table showing the respondent’s main product
Sl. Paints No of Respondents Percentage
No.
1 Asian paints 71 71
2 Good lass Nerolac 01 01
3 Berger Paints 01 01
4 Surfa coats 15 15
5 ICI paints 12 12
Source: Primary Data
Analysis and Interpretation
From the above table it is clear that 71% of the respondent’s
main product is Asian paint and 15% of them are selling Surfa Coats
as their main product. Only 12% of the respondents are selling ICI
paints as main product.
2.4 Graph showing the respondent’s main product

80
71
70

60
Respondents
50

40

30

20 15
12
10
1 1
0
1 2 3 4 5

Paints

Dealer’s Opinion about Price of Paints


1.5 Table showing the opinion of dealers about the price of paints in
general.
Sl. Opinion No of Respondents Percentage
No.
1 Low 01 01
2 Average 84 84
3 High 14 14
4 Very High 01 01
Source: Primary Data
Analysis and Interpretation
From the table it is clear that 84% of the dealer have a opinion
that price of paint is average only 14% of the respondents have a
opinion that price the paint is high. So it is clear that price of the paint
is affordable to customers.
2.5 Graph showing the opinion of dealers about the price of paints in
general.
90 84
80
70

Respondents
60
50
40
30
20 14
10 1 1
0
1 2 3 4
Opinion

Dealer’s Opinion about Price of different brands


1.6 Table showing the opinion of dealers about the price of
different paints
Parameter Low Average High
Paint
Asian Paints 45 60 05
Good lass Nerolac 45 60 05
Berger Paints 70 30 0
Surfa Coats 80 20 0
ICI Paints 20 40 40
Source: Primary Data

Analysis and Interpretation


From the table it is clear that price of the Surfa coats is low when
compared to other brand. 80% of the respondents said that price of the
Surfa coats is low. Most of them have a opinion that price of ICI paints is
high
2.6 Graph showing the opinion of dealers about the price of different paints

90 80
80 70
70 60 60
Parameter

60
50 45 45
40 40
40 30
30 20 20
20
10 5 5
0 0
0
Asian Paints Good lass Berger Paints Surfa Coats ICI Paints
Nerolac

paint

Low Average High

Dealer’s Expectation
1.7 Table showing the expectation of dealers while taking a dealership
Sl. Expectation No of Respondents Percentage
No.
1 Good Margin 100 36
2 High Demand 60 21
3 Good Supply 90 32
4 Long credit period 05 02
5 Quality 25 09
Source: Primary Data
Analysis and Interpretation
From the above table it is clear that 36%of the respondents are
expecting good margin while taking a dealership and 32 % of them are
expecting proper supply of product that is timely delivery of product.
Only 09% of them are expecting good quality while taking a
dealership. So it is clear that most of respondents taking dealership of
particular company only because of good margin without giving due
importance to the quality of product.
2.7 Pie chart showing the expectation of dealers while taking a
dealership

5
4
9%
2%
1
36%

3
32%

2
21%

Dealer’s Recommendation to Customer


1.8 Table showing dealer’s recommendation to customers if they won’t
asks for a particular brand.
Sl. Paints No of Percentage
No. Respondents
1 Asian paints 04 04
2 Good lass Nerolac 01 01
3 Berger Paints 05 05
4 Surfa coats 80 80
5 ICI paints 10 10
Source: Primary Data
Analysis and Interpretation
From the above table it is clear that 80% of dealers recommend
Surfa coats because high margin and more profitability from this it is
clear that usually dealers recommend high margin products in most
of the cases they are the new products by this they will push the new
product they will create market for new products.
2.8 Pie chart showing dealer’s recommendation to customers if
they won’t asks for a particular brand.

5 1 2 3
10% 4% 1% 5%

4
80%

Reason for Pushing a Particular Brand


1.9 Table showing the reason for pushing a particular brand
Sl. No. Reason No of Respondents Percentage
1 High Commission 95 33
2 High Demand 11 04
3 Engineer’s 09 03
Preference
4 Availability 85 29
5 Quality 90 31
Source: Primary Data
Analysis and Interpretation
From the above table it is clear that 33% of respondents are
pushing a particular brand because of the commission they get from
the sale of particular product and 31% of dealers are selling particular
product because of its quality. Only 3% of the respondents are selling
a particular brand because of customer demand. It clearly shows that
most of the sales takes place according to dealers will and wish.
2.9 Pie chart showing the reason for pushing a particular brand

5 1
31% 33%

2
3 4%
4
3%
29%

Dealership
1.10 Table showing respondent’s dealership with Surfa coats
Sl. No. Response No of Percentage
respondents
1 Yes 100 100
2 No 0 0
Source: Primary Data
Analysis and Interpretation
Form the table it is clear that all the respondents who had given
their opinion are dealers of Surfa coats because we contacted
respondents through the companies database and according to our
convenience.

2.10 Pie chart showing respondents dealership with Surfa coats


2
0%

1
100%

Period of Dealership
1.11 Table showing the period of their dealership with Surfa coats
(Bangalore) Limited

Sl. No. Years No of respondents Percentage


1 0-10 65 65
2 11-20 30 30
3 Above20 05 05
Source: Primary Data
Analysis and Interpretation
From the table it is clear that 65% of the respondents took the
dealership of Surfa coats recently i.e. in between 0 to 10 years and
30% of them had took the dealership in between 11 to 20 years. Only
5% of respondents had taken the dealership 20 years back from this it
is clear that most of Surfa coats dealers took the dealership recently.
2.11 Pie chart showing the period of their dealership with Surfa
coats (Bangalore) Limited
3
5%
2
30%

1
65%

Difficulties they Face From the Company


1.12 Table showing the difficulties faced by the dealers from the
company
Sl. No. Difficulties No Of Respondents Percentage
1 Representation 50 55
2 Delay In Supply 20 22
3 High Cost 05 06
4 Difference In Quality 10 11
5 Other 05 06
Source: Primary Data
Analysis and Interpretation
From the table it is clear that 55% of the respondents faced the
problem of misrepresentation by the sales representatives of the
company and only 22% of respondents faced the problem of delay in
supplying the ordered products. 11% of the respondents faced the
problem of difference in quality from batch to batch. From this we can
conclude that most of the dealers facing the problem of
misrepresentation from the company sales people.
2.12 Graph showing the difficulties faced by the dealers from the
company

60
50
50
Respondents

40

30
20
20
10
10 5 5

0
1 2 3 4 5
Difficulties

Rating of Surfa Coats


1.13 Table showing the rating of Surfa coats on different parameters
Parameter Good Average Poor
Particulars
Creativity 55 25 20
Customization 85 15 0
Timely Delivery 90 10 0
Payment Terms 95 05 0
After sales service 65 25 10
Source: Primary Data
Analysis and Interpretation
From the above table it is clear that dealers are more satisfied
with the payment terms and delivery of demanded product from the
company. No person has any complaint about the delivery and
payment terms as well as customization of the company.
2.13 Graph showing the rating of Surfa coats on different
parameters

100 95
90
90 85
80
65
Parameters

70
60 55
50
40
30 25 25
20
20 15
10 10
10 5
0 0 0
0
1 2 3 4 5

Particulars

Good Average poor

Quality of Surfa Coats


1.14 Table showing the opinion of dealers about the quality of Surfa
coats
Sl. No. Quality No of respondents Percentage
1 Poor 15 15
2 Average 50 50
3 Good 25 25
4 Excellent 05 05
Source: Primary Data
Analysis and Interpretation
From the above table it is clear that 50% of the respondents
said that quality of Surfa coats is averaged and 25% of them said that
it is good. From this it is clear that quality of Surfa coats is not up to
the expectation of dealers.
2.14 Pie chart showing the opinion of dealers about the quality of
Surfa coats

4 1
5% 16%
3
26%

2
53%

Quality of Different paints


1.15 Table showing the opinion of dealers about the quality of different
paints
Parameter Good Average Poor
Paint
Asian Paints 65 35 0
Good lass Nerolac 55 40 05
Berger Paints 35 60 05
Surfa Coats 30 60 10
ICI Paints 70 30 00
Source: Primary Data
Analysis and Interpretation
Form the table it is clear that 70% of the respondents said that quality of
ICI paints is good and 30% of the respondents said that it is average. It is
also clear that most of the respondents are not satisfied with the quality of
Surfa Coats.
2.15 Graph showing the opinion of dealers about the quality of
different paints
80
70
70 65
60 60
60 55

50

Parameter
40
40 35 35
30 30
30
20
10
10 5 5
0 0
0
Asian Paints Good lass Berger Paints Surfa Coats ICI Paints
Nerolac
Paint

Good Average Poor

Surfa Coats Sales Percentage from the Total Turnover of the Shop
1.16 Table showing percentage of Surfa coats sales from the shops
total turnover
Sl. No. Percentage No of
respondents
1 0-05 05
2 06-10 05
3 11-15 10
4 16-20 20
5 Above21 60
Source: Primary Data
Analysis and Interpretation
From the above table it is clear that 60% of the respondents
have above 21% sales of Surfa coats from their total sales. So we
can say that those who have the dealership of Surfa coats are selling
more and more of Surfa products only.
2.16 Pie chart showing percentage of Surfa coats sales from the
shops total turnover
1 2
5% 5% 3
10%

5 4
60% 20%

Total Turn Over of the Shop


1.17 Table showing the total turnover of the shop
Sl. Rupees (lakhes) No of respondents Percentage
No.
1 01-20 03 03
2 21-40 07 07
3 41-60 10 10
4 61-80 50 50
5 81-100 10 10
6 Above 100 20 20
Source: Primary Data
Analysis and Interpretation
From the above table it is clear that 80% of the respondents have a
total turnover above 65 lakhes. 50% of them fall in between 61 to 80
lakhes and 20% of respondents have a total turnover of more than
one crore. So we can say that most of the Surfa dealers big business
units.
2.17 Graph showing the total turnover of the shop

60
50
50

Respondents
40

30
20
20
10 10
10 7
3
0
1 2 3 4 5 6

Rs

Comparison of Total Turnover and Surfa Coats Share of Sales


1.18 Table showing comparison of total turn over of the shop and
Surfa coats share of sales
Surfa coats 0-5 6 - 10 11 - 15 16 - 20 Above21
share

Rupees (lakhes)
1-20 0 0 0 0 0
21-40 0 0 0 0 0
41-60 0 0 0 06 20
61-80 01 05 02 10 26
81-100 0 0 0 0 10
Above 100 04 0 08 04 04
Source: Primary Data
Analysis and Interpretation
From the above table it is clear that those who have above 21%
Surfa coats share of sales have total turnover of 61 to 80 lakhes per
annum. More than 60% of Surfa dealers total turn over is above 61
lakhes from this it is clear that most of Surfa dealers are big business
magnets.
2.18 Graph showing comparison of total turn over of the shop
and Surfa coats share of sales

30
26
25
Surfacoats share

20
20

15
10 10
10 8
6
5
4 44
5
2
1
0 0000 00000 000 0 000 0
0
1 2 3 4 5 6

Rs

0-5% 6-10% 11-15% 16-20% >20%


Reason for Selling Particular Brand
1.19 Table showing the reason for selling particular brand to the
maximum extent
Sl. No. Reason No of respondents Percentage
1 Availability 10 10
2 High Profit 15 15
3 High Demand 40 40
4 Good Margin 25 25
5 Quality 10 10
Source: Primary Data
Analysis and Interpretation
From the table it is clear that most of the time sale of a
particular product takes place because of high demand in the market.
Only 25 % of sales take place because of good margin to dealers
because of dealers influence. Only 10% of the respondents are selling
a particular product because of its quality from the above data it is
clear that demand and rate of margin plays a vital role in selling a
particular brand.
2.19 Pie chart showing the reason for selling particular brand to
the maximum extent
5 1
10% 10%
2
4 15%
25%

3
40%

Reason for Recommending a Particular Brand


1.20 Table showing a reason for recommending a particular brand to
the customer
Sl. No. Reason No of respondents Percentage
1 Quality 15 15
2 Profitability 20 20
3 Supply 15 15
4 Good Margin 35 35
5 Service 15 15
Source: Primary Data
Analysis and Interpretation
From the table it is clear that 35% of respondents recommend a
particular product because of good margin only 15% of them
recommend a quality product to the customer. From this we can say
that most of time dealers recommend those products that give more
profit to them.
2.20 Pie chart showing a reason for recommending a particular
brand to the customer
5 1
15% 15%

2
20%
4
35%
3
15%

Ranking of brands
1.21 Table showing the ranking of different brands
Sl. No. Brands No of respondents Rank
1 Asian Paints 30 1
2 Berger Paints 24 2
3 ICI Paints 18 3
4 Good lass Nerolac 16 4
paints
5 Surfa Coats Paints 12 5
Source: Primary data
Analysis and Interpretation
From the table it is clear that Asia paints is ranked as
number one it is due to brand awareness in the market and product
quality. Surfa Coats stands in fifth place it may be because of low
awareness in the market.
SUMMARY OF FINDINGS
This study has been conducted in order to study the behavior of
dealers towards selling paints with reference to Surfa Coats
(Bangalore) Limited. The study also found various shortcomings of the
system through dealer survey with the help of structured questionnaire
and interview with the paint dealers and company employees. The
following is the summary of some important findings of this study:
• Surfa Coats (Bangalore) comes under the unorganized sector.
• The company has been practicing push strategies because it has
low brand awareness.
• From the data collected it is clear that no one changed their
dealership so far.
• Most of the dealers selling Asian paints and Surfa coats
simultaneously but their main products are Asian paints.
• 36% percent of the respondents expect good margin, 32% of them
are expecting proper supply while taking a dealership of particular product.
• If customer doesn’t asks for a particular brand then dealers usually
recommend Surfa coats because of good margin and long credit period.
• 55% of the respondents faced the problem of misrepresentation
from the sales representatives of the company.
• Dealers have a very good opinion about the quality of ICI
paints.70% of respondents had an opinion that quality of ICI paints is good
and 30% of respondents had an opinion that quality of Surfa coats is good.
So it is clear that dealers are more satisfied with the quality of ICI paints than
other paints..
• More than 20% of total turnover of many dealers comes from the
Surfa coats. It clearly shows that those who have a dealership with Surfa
coats (Bangalore) limited are making more sales of Surfa coats than other
products so as to earn more profit.
• From survey we can say that most of the big hardware shops have
dealership of Surfa coats.
• According to the dealers price of the Surfa coats is comparatively
high.
• From the survey it was clear that good quality and rate of
commission were important factors, which were considered for pushing a
particular brand by dealers.
• 65% of dealer had taken dealership of Surfa coats recently but
they are selling it as their main product.
• Dealers of Surfa coats have a very good opinion about the
payment terms and credit period of the company.
• From the survey it is clear that most of the dealers are satisfied
with the quality of ICI paints but not with price.
SUGGESTIONS
From the study of Dealers behavior while selling paint and the
survey conducted to obtain the opinions of dealers about Sales
Strategies, certain shortcomings in the system were found and based
on this suggestions have been given in order to improve the system.
They are as follows: -
• Surfa Coats (Bangalore) Limited should organize the dealers and
motivate them to increase the number of retailers.
• The company should make tie up with some organization to see
that Surfa Coats is used in Painting their advertisements like billboards.
• The company should concentrate on increasing the sales of paints
through Pull Strategy rather than Push Strategy of Marketing. It has to invest
on bringing brand awareness.
• The company has to practice more transparency in its
administration for example through website.
• ICI Paints should take measures to decrease the price with same
quality.
• Surfa Coats should take steps to increase the quality of the
product with out increasing the price.
Attracting a customer is more expensive than retaining the
customer So it would be advisable for the company to create an
effective customer relationship management through which it
can grow to greater extent.
BIBLOGRAPHY

Sl. No Name of Book /institution Author


1. Company Profile -------

2. Small Scale Paints, Plastics and R. S. Gupta and S. C. Dubey


Rubber Goods Industries
3. UP-TO-DATE Paints, Pigments R. K. Mallik and V. K.
and Varnish Industries Aggarwal
4. Marketing Management Philip Kotler
M
5. www.domain-b.com ---

6. www.ASK.com ----
Annexure
QUESTIONNAIRE

Dear respondent,
I am Kavitha K. C. student of final semester MBA, Alliance Business
Academy, Bangalore .I am doing a survey on Dealers behavior while pushing
a product, so I would be grateful if you could spend some of your time in filling
up this Questionnaire.

Name

Phone No

1. For how long have you been doing this business?

a) 0 – 10 years b) 11 – 20 years c) 21 – 30 years d) Above 30


years

2. What are the reasons for starting up a hardware shop?

a) High profit b) Family business c) High demand

d) Any other (specify)__________

3. Which of the following paints do you sell?

a) Asian paints b) Good lass nerolac c) Berger


paints

d) Jenson and Nicholson e) Shalimar paints f) Surfa coats


g) ICI Paints h) Any other (specify)__________

4. Which company’s product do you sell more?


a) Asian paints b) Good lass nerolac c) Berger paints

d) Jenson and Nicholson e) Shalimar paints f) Surfa coats

g) ICI Paints h) Any other (specify)__________

What is the REASON? ______________________________________

_____________________________________
5. What is your opinion about price of paints in general?

a) Low b) Average c) High d) Very High

6. What do you expect while taking a dealership?

a) Good margin b) High demand c) Good supply

d) Long credit period e) Any other (specify)________________

7. If customer doesn’t asks for a particular brand which product do you


recommend them and why?
a) Asian paints b) Good lass nerolac c) Berger paints

d) Jenson and Nicholson e) Shalimar paints f) Surfa coats

g) ICI Paints h) Any other (specify

What is the REASON? ______________________________________


_____________________________________

8. What motivates you to push a particular brand?

a) High commission b) High demand c) Engineers preference

d) availability e) Quality f) Any others____________


9. Have you ever changed the dealership?

a) Yes b) No

If yes specify the REASON?


_______________________________________

and brand_________________________________________

10. Are you a dealer of Surfa coats?

a) Yes b) No

If No what is the REASON?


______________________________________
__________________________________
___

If yes for how long have you been the dealer of Surefa coats ?
________________________________________________

11. Specify the difficulties you face from company?

a) Representation b) Delay in supply c) High cost

d) Difference in Quality e) Any others (specify)_____________

12. How do you rate Surfa coats on each of the subjects?

Cod Scale Very Good Averag Poor


e good e
A Creativity (new product, new
ideas, new policies)
B Customer Based Products
C Timely delivery
D Payment terms
E After sales service

13. How do you rate Surfa coats in terms of quality?


a) Poor b) Average c) Good d) Excellent

14. What percentage of your total turnover comes from Surfa coats?

a) 0 - 5 b) 6 - 10 c) 11 - 15 d) 16 - 20 e) Above 21

15. What is your total turn over? (In lakhs)

a) 1 – 20 b) 21 – 40 c) 41 – 60 d) 61 – 80

e) 81 – 100 f) above 100

16. Suggestions _____________________________________________


____________________________________________
________________________________.