Berger Paints India Ltd: Prospective Distributors Study

Categories: BusinessIndiaResearch

Brief Introduction of the topic

Prospective Dealers

Data Mapping through Alternative Distribution Channel is a project topic given by Berger Paints India Ltd.The purpose of this study is to collect the necessary information from the prospective distributors. The study includes interviewing the dealers and distributor who are into the business of building material and collecting information regarding their shop and contact details. It also includes necessary information like type of business organization so that accordingly they can be contacted in future.

They were asked that in what other products they deal at present and of which company like sanitary, cement, pumps, steel. These data which has been collected through the interview has helped in deriving many conclusions regarding the market share and awareness of their competitors and other building related products. If sales and distribution channel is expanded, then it would be beneficial for customer to buy Berger which can only be done by increasing its distributor and dealer in the market.

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So this study also helped the company to know how many dealers are ready to become the dealer of Berger. As India is entering into the scenario where the consumers want each and every product at one place. A shopping mall is a good example where consumer finds the goods of their use at one place. Same applies on construction related goods like cement, paint, sanitary, plywood. So in this study the alternate channels are targeted, with which the company as well as dealer will get benefit.Objectives of the studyBackgroundThis project is all about data mapping of all alternate distribution channels by getting necessary information.

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ADCs can be cement dealers, plywood dealers, sanitary shops, and as well as paint dealers.I) To expand their distribution channel, the company wants to create database of each and every alternate distribution channel who are into the business of building material. This is being held throughout the India. I was given samastipur,Bihar. There I have met the dealers like: SHIV SHAKTI STORES

Retailers Name Mobile No. - Location

  • Bharat machinery stores 8521929170 baghopur
  • Priti Hardware 8809938324 chawakhar
  • Asarfi chaudhary 8409493920 Thana road
  • Ram narayn singh 9931394469 illmasnagar
  • Satrughan ray 9631321389 kishanpuraTarni traders 7549270487 Gulab chawk
  • Thakur cement bhandar 9939049725 kishanpura
  • Shankar hardware 9709303672 Shivaji nagar
  • Bhagwati hardware 9661882316 Singhiaghatt chawk
  • Ambika traders 9135264650 Cinema chawk
  • Balram hardware 7903050230 mahesinghia
  • Ganga traders 9534469234 hasanpur
  • Ganga traders 7631245119 Rosera , main road
  • Jagdamba cement stores 9709723957 Block road
  • j.k steel 9431241160 Rosera, main road
  • Kundan enterprises 9955089265 mahesinghia

Accordingly, BERGER these places has enough potential dealers who can be interested in dealing with Berger paintsIn addition to these documents various other information like the per year consumption of each paint category, construction chemicals and wood finish were taken, These data formed the main basis of the study. Various analysis like brand preferences, contribution of each product in the total sales volume etc were analysed.

Company wants to explore all the opportunity in the market by making more dealers of berger paints and by expanding the distribution channel.Research Objectives: Identification of distributor on basis of market information. Meeting and Interviewing of Prospect Distributor. To collect the necessary information about the distributor and do the data mapping of all alternate distribution channels (ADCs) To increase the dealership of berger paints. To find how many ADCs are eligible for distributorship and to know how many ADC counters are willing to deal with Berger. To recommend a suggestion for the company. To create a awareness among the dealer about Berger paints. To contact the potential dealers in future. To know which type of dealers are more interested in berger paints.

To Study the Distributor Preference towards Parent Company through interpreting how Delivery on time, Account clarification, Customer demand , Profitability, Credit Period and Employee Behaviour are correlated with preference with Parent Company . To study the various parameters(Delivery on time, Emergency delivery, Good communication, Collection payment from shop, Discount Price, Credit Period, Price Fairness, Availability of stock) which would Influence a Dealer while prefer a Distributor.

Research problem

All the dealers of alternate distribution channels can be made paint dealers or not. Collect the necessary database of dealers, so that accordingly the dealer should be approached. Convince them to be a part of Berger paints and how it can be helpful to be with berger paints.Scope of the study:The main scopes of the study are listed below: It gives us information about the scope of opening a dealership account in different towns. It gives us information about the proportion of dedicated Berger Paints dealers. It shows the market share of Berger Paints with respect to its competitor. It gives the information regarding the preference and choices of the different distributor. The study also gives information regarding the expansion of distribution channel of Berger paints.

Research Methodology

Research Methodology is the process of systematic gathering, recording and analysis of data collected by various techniques to access the response and accordingly prepare a report based on which information presented can be analysed by the reader. The prime objective of this research to find the prospective dealers through alternative distribution channel who can be a dealer of Berger. The main objective to this research is to map the dealer of samastipur.The following methodology was used.

Research Design

Dealer analysis that are in manufacturing business:

Descriptive research design

Descriptive Research:Descriptive design provides a comprehensive and detailed explanation of the phenomenon under study.

However it lacks the precision and accuracy of experimental design. In the current project as the variables were known, Descriptive research design was used.Data Collection Method:The data source for this project was Primary Data. The primary data was collected using survey method. An interview schedule was used along with questionnaire for collecting the data and this questionnaire was administered personally to distributor and dealer for this study.And the secondary data which was collected from patna depot by depot manager.

Questionnaire Formulation

The first important step is to convert the research objectives into clear questions which will help in gathering of data from the respondents. The respondents were distributor and dealer to fill the questionnaire themselves so I administered the questionnaire personally. After administering the questionnaire to these respondents, there were various changes made and also some unwanted questions eliminated and only suitable were kept. Most of the questions were kept close ended as to avoid difficulty during interpretation of data. Research ToolMany statistical tools like, Bar Charts Pie Charts Cross tabulationHave been used in this research to derive the conclusion. Research plan

  1. Interviewing the prospective dealers
  2. Collecting information and filling it up in questionnaire.
  3. Shorlisting the dealers according to the information collected.
  4. Contacting the dealers through sales representative.

Telling them about the company and persuading them to take the dealership.Sampling Design:Sample Design is deriving a convenient number out of total research. The method of sampling that is used in research was Convenience sampling. The requirement was to collect as many samples as possible and non probability sampling method was used. This method has been chosen because the respondents are distributor and dealer and they should be willing to spend some time to collect data. Labelling of the products due to the change in the GST rates Data Analysis and InterpretationMarket share Study To get the clear picture of market, market share study is carried out. The market share is represented to know the market share of each paint company out of total paints company in Bihar. Market Share Of Paint Industry in BiharName of the Paint Company Market ShareAsian Paints 46.2%Berger Paints 25.67%Kansai Nerolac Paints 21.10%Shalimar Paints 1.05%Akzo Paints 5.28% Product Dealing with Distributor and Dealer

INTERPRETATION

From the above data it is clear that, 28% percentage of distributors and dealers dealing with hardware , 20% dealing with pipes, 16%dealing with paints , 15% dealing with plywood, 12% dealing with sanitary, 4% dealing with machinery , 3% dealing with tiles, 1% dealing with cement, 1% dealing with agriculture item. When you hear about Paint which company comes into your mind first INTERPRETATION:From the above data it is clear that, 52% of respondent when they hear about paint Asian Paint is the company comes into their mind first, 21% respondents have Berger is the company comes into their mind first, 19% respondents have Kansai Nerolac is the company comes into their mind first, 8% respondents have ICI Paint is the company comes into their mind first.

Findings

DEALERS AVAILABILITY

From the study it can be observed that most of the dealers are present at the main road of the town. Outskirts dealers are very less. Berger paints awareness is more in urban market as compared to rural markets Asian paints is the biggest competitor in the market. Berger paints is performing well in interior and exterior paints Out of the sample surveyed, it is found that company has great opportunities in the market. Some of the previous dealers of berger thinks that scheme should be available for all seasons. Some of the dealers thinks that there is less profit margin Dealers present in the outskirts of the city thinks that there is less sale of Berger as compare to main market. Most of the contractors are satisfied with the paint quality of Berger, mostly the primer. Customer demand, Profitability and Employee Behaviour is the most important factor for the distributors while prefer company. No other business company provide rebate but Berger provide rebate to their client and for distributor this rebate is slightly higher than dealer. So Price Fairness among their sub dealer will be issue free. Low Inventory Required compare to existing business(like cement, hardware, etc...). Price stability is more than other business (like cement, hardware, etc...) Frequency of use of paint is higher than their existing business.

SWOT Analysis of Berger Paints

STRENGTHS

Wide range of product and service offering Sales Force High on quality and preferred by customers Comparatively less price with respect to its competitors.

WEAKNESS

  • Dependence on paint segment only.
  • Less awareness in rural markets.
  • Less concentration in decorative segment.

OPPORTUNITIES

  • Many new products has been launched New segment of customers targeted
  • Growing business of real estate.
  • Rural customers can be targeted

THREATS

  • Fluctuation in raw material prices intense competition from pioneer brands.
  • Price competition.

Conclusion

According to distributors and dealers, Asian paint is the best company followed by Nerolac paints and Berger paints. There is a cut throat competition among the paint companies. The maximum number of dealers deal in Asian Paints and Berger paints followed by Nerolac Paints, ICI paints and Shalimar paints respectively and Asian paint holds the strongest perception in the minds of distributors and dealers. Customer Demand, Profitability and Employee Behaviour are the most influencing factors for the distributor while choosing Parent Company and Credit Period, Price Fairness and Discount Price are the most influencing factors for the dealer while choosing distributor.

Recommendation

The company should ensure that distributors who are appointed are financially strong so that if required they may be able to extend credit to the sub dealers. Credit worthiness can always be cross checked with his bank and market intelligence. The company should have a good spread of distributors so that the market can be covered effectively and a journey plan should be made for visits to retailers in order to promote sales effectively. In order to enhance sales it is important to promote the brand with architects and interior designers. For that a separate sales team should be created who are technically professional. Shade cards should be made easily available to the contractors. As far as the interior and exterior texture paints are concerned the versatility of the designs should be increased and designs should be more attractive.

Booklets consisting of various wall designs as well as different shades should be made available to the householders from where they can chose which category or quality or design will best suit their personality. Stalls should be given in front of the construction sites, so that when people come to see the flats they have bought, they can be demonstrated with different kinds of wall paints and texture designs. These prospects can be easily converted into successful sale.Limitations It was difficult to cover overall Bihar market in just two months.The time span was limited to two months. Many Dealer and Distributor were not ready to talk and share information. Time span was limited to 2 months.Bibliography Kotler, P; Marketing Management (New Delhi, Prentice Hall of India).

Updated: Feb 22, 2021
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Berger Paints India Ltd: Prospective Distributors Study. (2019, Aug 20). Retrieved from https://studymoose.com/berger-paints-india-ltd-prospective-distributors-study-essay

Berger Paints India Ltd: Prospective Distributors Study essay
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