Berger Paints Bangladesh ltd Essay
Berger Paints Bangladesh ltd
There are a large number of multi-national companies operating their businesses in Bangladesh. Berger Paints Bangladesh Limited is one of them. In fact, it is one of the leading multi-national companies in our country. Almost since the early inception of Bangladesh, it has been here with a view to produce high quality standard paints. In the year 1973 it became the first ever multi- national company in Bangladesh to start its operations in the painting industry.
With the passage of time over the last 30 years, Berger Paints Bangladesh Limited has expanded with rapid growth and became Bangladesh’s leading painting company. Berger is already the number one company in the world in the painting industry. Now it is a great achievement on its part to become the leader of the painting industry in Bangladesh. It has also played a significant role in terms of contribution to the economy in the form of tax revenue.
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.
Background of study:
We selected ´´Berger paints Bangladesh Limited“ because today’s world is fashion world and peoples are more interest in new technology, fashionable color and also new scientific methods. Increase industries and buildings and peoples less knowledge to differentiate paints and painting system are the main reason for us to choose this topic.
We have done this report after we set out some of our objectives. Those objectives are stated bellow- To know the present situation of Berger paint Bangladesh Limited. To reduce the knowledge gap of ours.
To know the evolution of Berger paint.
Economic impact on Berger paint in Bangladesh
To know social and other development impact of Berger paint in Bangladesh. To know distribution channel of Berger paint in Bangladesh.
To know the real business environment
To know how the theory is apply in Business
Scope of survey:
We have collected our information’s about “BERGER PAINTS BANGLADESH LIMITED” by physically visiting the office of the BERGER PAINTS BANGLADESH LIMITED at Uttara. Which is our selected company for the project and also we have collected information’s by browsing the net.
This Methodology covered two types of data, which are:
Primary Data: Face to face conversation with the respective persons of Berger Paints Bangladesh Ltd. is the source of primary Data. Secondary Data: Going through different documents and papers developed by the company personnel or others and published materials in the online are the sources of secondary data.
Limitation of this report is the organization is relevant to disclose certain data and information for obvious reasons, which could be very much useful. 20-25 days is a short time for us to analyst this exactly without creating problem our others schedule. lack of practical experience
We tried heart & soul to make this report a successful one. Despite our valiant try their may be some information which are missing. But we believe despite all these facts this report will satisfy the readers.
Overview of Berger:
Berger is one of the oldest names in paint industry tracing back to 1760. Lewis Berger, a German national, founded dye & pigment making business in England. Lewis Berger & Sons Limited grew rapidly with a strong reputation for innovation and entrepreneurship culminating in perfecting the process of making Prussian Blue, a deep blue dye, a color widely used for many European armies’ uniform. Production of dyes & pigments evolved into production of paints & coatings, which till today, remains the core business of Berger.
Berger grew rapidly by establishing branches the world over and through merging with other leading paint & coating companies. Berger has been involved in paint business since 1950 in Bangladesh when paints were first imported from Berger UK and then from Berger Pakistan. In 1970, Berger Paints Bangladesh Limited (BPBL) erstwhile Jenson & Nicholson had set up its paint factory in Chittagong at an estimated investment of TK.4 million.
The shareholders were Jenson & Nicholson (J& N), Duncan Macneil & Co Ltd and Dada Group. Duncan Macneil subsequently sold their shares to majority shareholder J& N group. The Dada group’s share ultimately vested with the Government of Peoples’ Republic of Bangladesh after the independence. The name of the company was changed from J& N (Bangladesh) Limited to Berger Paints Bangladesh Limited on 1st January 1980. In August 2000, J& N investment (Asia) Ltd purchased Government shareholding. Now, Berger Paints Bangladesh Limited is 100% owned by J& N Investment (Asia) Limited, UK. With the passage of time Berger has unfolded its kaleidoscopic wings into all kinds of paint solution be it Architectural paints or Industrial coatings, Marine paints or Powder coatings. Berger has it all. MISSION & VISION
The mission of Berger in Bangladesh is the following:
To increase the turnover by 100% in the next five years
To remain socially committed ethical company
The vision of Berger is the following-
We shall remain as the benchmark in the paint industry by:
Being an innovative and technology driven company
Consistently delivering world class products
Ensuring best consumer satisfaction through continuous value added services provided by highly professional and committed team.
Berger Paints Bangladesh Limited is committed to achieving total consumer satisfaction. Commit to project ourselves as an ethical and socially responsible company. Commit to continue as the market leader through consistent sales growth, increasing productivity and developing new products befitting consumer needs. Ensure continual improvement in our operations through utilization of our highly professional and dedicated team, proper process management and participation of our stakeholders. Set measurable targets at appropriate stages and shall continuously monitor them.
Berger Paints Bangladesh Limited is committed to provide quality product and service.
BERGER PAINTS BANGLADESH LTD.
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. Over the decades, Berger has evolved to becoming the leading paint solution provider in this country and has diversified into every sphere of the industry – from Decorative Paints to Industrial Coatings, from Marine Coatings to Powder Coating and what not. To give a comprehensive and sustainable painting solution to the need of the industry, Berger has invested more on technology and Research & Development (R & D) than any other manufacturer in this market. It selects the raw materials from some of the best-known names in the world: MITSUI, MOBIL, DUPONT, HOECHST and BASF are a few to name.
The superior quality of Berger’s products has been possible because of support from its advanced plants and an international-standard of strict quality. Investment in technology and plant capacity is even more evident from the new factory of Berger Paints Bangladesh Limited at Savar. The state-of-the-art factory is an addition to Berger’s capacity to make it the paint-giant in Bangladesh.
Not to forget about the first Double Tight Can manufacturing unit in its Chittagong factory. All, together with devotion into R & D to make it the reputed center of Basic & Applied Research in paint and Resin Technology, proof the commitment that Berger has for this industry. With its strong distribution network, Berger has reached almost every corner of Bangladesh. Nationwide Dealer Network, supported by 7 Sales Depots strategically located at Dhaka, Chittagong, Rajshahi, Khulna, Bogra, Sylhet and Comilla has an unmatched capability to answer to paint needs at almost anywhere in Bangladesh.
The sheer innovation and development drive is reflected on the various products Berger has so far launched in this market. The product range includes, Specialized outdoor paints protective of the worst weather conditions, Color Bank, superior Marine Paints, Textured Coatings, Heat Resistant Paints, Roofing Compound and Epoxies.
In each of the product category, Berger has always been the pioneer and will continue to do so proudly. Berger’s one of the prime objectives is to provide best customer support-connecting consumers to technology through specialized services like free technical advice on surface preparation, color consultancy, special color schemes etc. To bolster customer satisfaction, Berger has recently launched Home Decor Service from which once can get an array of services pertaining to painting. With world class range and durability, Berger is always ready to answer to all weather conditions.
Berger Paints Bangladesh Ltd. at a Glance
Own Corporate Office located in Dhaka
2 Factories at Dhaka and Chittagong
7 strategically located Sales Offices throughout the whole country. The locations of the Sales Offices are shown in a map attached in the annexure A wide distribution channel reaches the whole country with a network of almost 1000 dealers In Bangladesh, the major milestones of Berger Paints are given below: 1950 – Started operation in Bangladesh by importing Paint from Berger UK 1970 – Establishment of Chittagong Factory
1980 – Named as Berger Paints (BD) Ltd. from Jenson & Nicholson (J&N) 1991 – BMRE in Chittagong Factory
1995 – Establishment of Double Tight Can Manufacturing Plant 1999 – Establishment of Most Modern Sate-of-the-Art Paint Production Plant in Dhaka 2002 – Construction of own building for the Corporate Office in Dhaka 2004 – Establishment of Powder Coating Plant
MANPOWER OF BERGER PAINTS BANGLADESH LTD.
Berger Bangladesh, believe that ‘Our People’ are ‘Our Strength’. People who with their sheer hard work, dynamism and creative minds have made the business succeed. Their professionalism, excellent teamwork and strong commitment to their service, customers, associates and finally to the communities they live in, have enabled to remain as the market leader in the Paint industry. Berger is proud of the dedication and loyalty of employees who have been with Berger for years. They have the in-depth knowledge of business that only experience can bring.
Berger place high priority in developing human resources. Importance is given on relevant on-the-job, in-house and external training programs, so that Berger people are well equipped with necessary skills. We augment those skills through appropriate use of information technology in order to maintain productivity and competitive edge. Berger Bangladesh’s culture encourages professionalism, stimulates teamwork and promotes innovation reinforced with highest ethical standard.
Work force Structure
It is consisted of more than 300 employees of whom about 160 are general workers and the rest are White Collar employees. These employees are working in different factories and depots of the company. The positional hierarchy of the company is as follows:
For segmenting total paint market, Berger uses more than one basis. Initially, total business is segmented based on customer types. Berger segments total market as Decorative, Industrial & Marine. Then, Decorative group is further segmented on the basis of surface types- wooden, metal & concrete. Again, sub-class of the total paint market is sliced on the basis of Internal & External surface category. At the last step, price segmentation is used to create a number of small niches– Premium, Regular & Economy- in the market.
Berger is committed to offer quality products that satisfy consumers’ ultimate desires from paints with the help of state-of–art technology. Berger always believes in one step ahead in offering new product to create more value for customers’ money. Berger outsmarts other competitors of the market through its one step ahead policy and innovative market offers. Berger is trying to fill up all holes of the market through offering a wide range of products to meet the needs (Premium to Economy Paints) of different types of users and to solve the different types of functional requirements (Industrial, Decorative & Marine). Berger Bangladesh offers approximately 600 SKU including variations within basic product groups. Due to shift in market growth trends Berger is trying to establish itself in the economy segment of the paint market.
Premium emulsions, regular acrylic emulsions, distempers, first quality enamels, exterior finishes, textured finishes, automotive refinishes Berger also leads in a vast range of other formulations. Stoving paints, chloro-rubber based enamels, epoxies, silicone heat resistant paints, flooring compounds, distemper, Robbialac Exterior Wall putty, power Bond, Synthetic Resin Adhesive-SH.
This is a different segment of Berger’s wide range of paints mostly used for the industries both as raw materials and as protective paints for the equipments and buildings. Berger industrial paint is the economy brand of industrial paints.
Bangladesh is a riverside country with a large no. of big & small rivers and their tributaries. Moreover, it has a large sea coastal area with Bay of Bengal. Because of this facility a good proportion of transportation is being done by sea & river. So huge activity could be seen in sea-ports, river- ports, dockyards & dry-docks. Besides there are shore and off-shore constructions, Pontoons, Buoys, oil/gas rigs, underground or underwater pipelines. To cater to the need of maintaining these vessels & other constructions Berger has introduced a wide range of Marine paints suitable to withstand rigorous marine weather both at sea & sea-coasts and also at river & river-ports. Berger is here to help you choose the kind of
protection you need for your belongings.
For the first time in Bangladesh, Berger Paints brings Berger illusions, a range of designer wear for your walls. Berger illusions are not just paint. It’s a whole new lifestyle for your walls. Myriad unique designs with thousands of color options from Berger Color Bank giving one an unlimited variety of unique designs to choose from.
Berger Color Bank introduces people to the global way to paint with a unlimited choice of shades to match your taste-instantly. The shade cards in Berger Color Bank stores are merely indicative of the amazing choice Berger Color Bank can give.. Every Berger Color Bank store has a computerized color tinting machine to help you choose and take home your own shades from our world class range of paints. Availability of your chosen shades is always ensured as the paint is created and dispensed by the machine before your very own eyes. Access to World Class Quality
Generally, Berger follows cost based pricing method. After calculation of the total manufacturing cost (Direct & Indirect RM cost, Direct & Indirect Labor cost and Manufacturing overhead cost) and adds 20% GP to get the price point of the product. But this is not the rule of thumb in pricing the Berger products. Competitor based pricing policy is also followed as well because of the increased competition in the paint market.
Berger follows the direct distribution policy to make the paints available in the market. Berger distributes paints through its own sales force. Distribution activities of Berger in all over Bangladesh are covered by 7 (Seven) strategic depots. One level, mainly, and two level-channel, to some cases, are used by the Berger Paints for Decorative products. Zero level channels, personal selling, are also used for grasping the project offers.
Figure 3: Channel level
In one level channel, Berger’s sales force delivers paints to the dealers from where ultimate users purchase paints. In the two-level channel, some major dealers dominate the paint market in the region where they are located. Small dealers collect paints from the large-scale dealers. Ultimate users buy paints from these small dealers. Head of Sales Offices are given in map
Electronic media: Paints of Berger are promoted in the market through electronic media mainly in BTV and Cable Channels. Through these ads, not only the overall Berger products are offered but also the individual brands are promoted. Through radio, Berger is trying to reach those potential targets that are not easily reachable by the BTV or Satellite.
Print Media: During daytime mostly in the office market potentials have little opportunity to go through the electronic media. Rather, they are used to go through the newspapers, magazines and other periodical publications. So Berger has taken the initiatives to attract people’s attention through print media to some extent. Moreover, brochures, shade cards and other paint related information in printed form are delivered to the dealers, potential customers, painters and other targeted potentials to make them interested /more interested toward Berger products.
Billboard: Berger efforts also move to grasp the potentials’ attention and to increase the frequency of exposure toward Berger products while they are on the way to their destinations.
Young Painters Art competition
Young Architects’ Award
Sponsoring Delta Break Housing Fair
Sales personnel’s visit to dealer and meet to customer
Communicate with the initiators of different projects.
Pro link division of Marketing Department communicates with various groups (engineers, architect and etc.) Related with paint business. Generating consumer pools for sales.
Berger not only provide quality product but also increase customer satisfaction level by adding value.
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.
Berger Home Decor offers two-stage services:
1. Free Service
2. Paid Service
Berger Home Décor is currently offering wide range of services to its prospects and existing consumers embracing:
Technical advice on surface preparation and application guideline.
• Paint selection.
• Dealer selection.
• Painter/ Contractor selection and
• Color scheme.
There is defined Telephone number, 02-9872428 for queries. By ringing simply
in the number one can make query or seek available services from the company. According to the nature of query, the company provides solutions. Location
Berger Home Décor is located at 1st Floor, House-24, Road-11, Block-F, Banani Model Town, Dhaka – 1213, Bangladesh Phone Number – 88-02-9872428
E-mail Address of the wing is [email protected]
The SWOT Analysis of Berger Paints presented below:
Corporate image as pioneer in paint industry and one of the leading paint companies of the world Wide distribution network.
Rich experience on Bangladesh Paint Market.
Presence in all major segments of the market.
Strong financial base and market share.
Total dividend paid by the company for the year 2008 stands at Tk 12 per share.
Insignificant presence in the international satellite channels Perceived as premium priced company at semi-urban and rural market Higher dependence on large dealers Consumers’ knowledge gap about paints & painting system
Dependency on imported raw materials
Utilization of positive corporate image for corporate diversification To popularize economy products at remote market
Fierce competition in the Bangladesh market Strong command of few dealers in the market through sub-dealer network Unethical and corrupt practices by the local companies
Berger, the market leader in the Bangladesh paint market, is one of the oldest names in the global paint industry. The company is operating in the paint industry for almost two centuries. It has its origin in the year of 1706 and from then on, the company is operating with strong adherence to quality and social responsibility.
Berger grew rapidly by establishing branches all over the world and through merging with other leading paint & coating companies. Today, Berger is one of the leading companies in the global paint industry Berger offers all kinds of painting solutions in decorative, industrial or marine segment for both decorative and protective purpose
Berger-The giant non-government, on profit organization in Bangladesh is carrying out a tremendous job within and outside the country. For quality, performance has employed lots of enthusiast and devoted workers in each every spheres of its activity level. The best and uninterrupted quality service is delivered by this organization when they segmented their market in a systematic way. They offer quality product that satisfy consumer. They follow cost based pricing method. They used direct distribution policy to make their product available in the market. To introduce their product they also use electronic media, print media and billboard. The collective effort of all the employees and their segmentation processes is their key factor of becoming as the successful organization in the Bangladesh.