BERGER PAINT

Effectiveness of Distribution Channel

Of

Berger paints Bangladesh limited

 

History of BERGER

 

Berger is one of the oldest names in paint industry detailing back more than 200 years 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 in Bangladesh

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!

Company profile

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 a devotion into R & D to make it the reputed center of Basic & Applied Research in paint and Resin Technology, proof the commitment that Berger has for this industry.

With its strong distribution network, Berger has reached almost every corner of Bangladesh. Nationwide Dealer Network, supported by 7 Sales Depots strategically located at Dhaka, Chittagong, Rajshahi ,Khulna, Bogra, Sylhet and Comilla has an unmatched capability to answer to paint needs at almost anywhere in Bangladesh.

The sheer innovation and development drive is reflected on the various products Berger has so far launched in this market. The product range includes, specialized outdoor paints protective of the worst weather conditions, Color Bank, superior Marine Paints, Textured Coatings, Heat Resistant Paints, Roofing Compound and Epoxies. In each of the product category, Berger has always been the pioneer and will continue to do so proudly.

Berger’s one of the prime objectives is to provide best customer support-connecting consumers to technology through specialized services like free technical advice on surface preparation, color consultancy, special color schemes etc. To bolster customer satisfaction, Berger has recently launched Home Decor Service from which once can get an array of services pertaining to painting.

With world class range and durability, Berger is always ready to answer to all weather conditions.

It was honored with “The top tax payer’s award 2003” in June 2004 by the income tax authorities of the government of Bangladesh.

Additionally the company received the “Channel I performance award 2004” for its effort in promoting the young painters and architects of the country through the burger young painter’s art promotion and young architects award. This award recognized the role of Berger paint Bangladesh limited (BPBL) as a responsible corporate citizen

Nature of business

The core business of Berger `is manufacturing and marketing of paints, varnishes and coatings. It produces a wide range of paints including architectural paints, industrial coatings, marine paints and powder coatings. With a view to improving consumer satisfaction, Berger has also introduced end-user oriented services such as color bank, home décor, pro link and tinting. Its wholly owned subsidiary, JENSON & NICHOLSON BANGLADESH LIMITED, is engaged in tin container production – most of which is supplied to their parent company

Major products of Berger paint Bangladesh limited

Production of paints and coatings is the core business of Berger. Berger produce a wide range of paints including decorative/architectural paints, industrial coatings, marine paints and powder coatings. The main products of the company are:

Major categories

 

Brand name
Decorative

 

 
Synthetic enamel Robbialac  synthetic enamel
Jhilic synthetic enamel
Interior emulsion Robbialac acrylic plastic emulsion
Exterior  emulsion

 

Weather coat
Distemper

 

Robbialac distemper SPD
Cement paint Durocem

 

Industrial

 

Jensolin
Epoxy
Berger industrial enamel
Marine Berger marine
Powder coatings Supracoat

 

SWOT analysis to

Formulate Strategies

To formulate the marketing & overall strategy of Berger paints Bangladesh limited,(BPBL) the management 1st analyze their mission and objective and then use the steps  of SWOT analysis to find out the strength, weakness, opportunities and threats and then find out the main strategies for the company.

Vision
Berger  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.

Mission
     Increase turnover by 100% in the next five years.

Socially committed ethical Company.

Strength

 

  • Strong brand image.
  • Experienced top management.
  • Global experienced of Berger.
  • Strong market share.
  • Good profitability.
  • Strong solvency.
  • Wide distribution of network.
  • Satisfactory MIS.

Weakness

  • Exposed of currency risk.
  • Semi automated plant needing.
  • Human intervention.
  • Concentrated ownership pattern.
  • Poor internal capital generation.

Opportunities

  • Increasing demand on paints.
  • Growing market.
  • Backward image for value addition.
  • Full automation scope.

Threats

  • Emergence of competitors.
  • Credit driven market.

After SWOT analysis the company makes its strategies for its product and service

Marketing strategies of Berger

Marketing strategies of Berger is built on STP – Segmentation, Targeting and Positioning. Berger discovers different needs and groups in the market place, target those needs and groups that it can satisfy in the superior way and then position its offerings,  so that the target market recognize the companies distinctive offerings and image.

Marketing strategies of Berger depends on

  • Segmentation of products.
  • Target market selection.
  • Positioning their product.

Segmentation strategies of Berger

Before segmentation their product Berger segments its business through the year. Generally the summer and winter is the peak season not only for Berger but also every paint producer. October to June is peak season and July to September is the lean season for the paint industry in Bangladesh, which is related to weather conditions.

The peak and lean months of the year, on the basis of the seasonality of the paint market, is as follows:

Month/ period Conditions
January Peak
February Peak
March Peak
April Peak
May Peak
June Peak
July Lean
August Lean
September Lean
October Peak
November Peak
December Peak

Berger paint Bangladesh limited mainly segments their product mainly on three categories. These are

Berger Decorative

Premium emulsions, regular acrylic emulsions, distempers, first quality enamels, exterior finishes, textured finishes, automotive refinishes- you would expect a company like BERGER, the premier paint company in Bangladesh, to have leading brands in all these categories. Yes, BERGER does. BERGER also leads in a vast range of other formulations. Stoving paints, chloro-rubber based enamels, epoxies, silicone heat resistant paints, flooring compounds, Polyurethanes…………

1, top coat finishes

2 color bank

3 premier/ undercoat /thinner

Top coat finishes

Product Name Product Description
Luxury Silk A marvel of international emulsion technology, Luxury Silk combines the best of aesthetic appeal with the best of functional properties like..
Robbialac Acrylic Plastic Emulsion (APE) A standard emulsion paint formulated with acrylic..
Robbialac Super Gloss Synthetic Enamel (RSE) Robbialac Super Gloss Synthetic Enamel is hardworking, premium quality synthetic enamel formulated to retain its gloss and film integrity in the face of extreme climatic variations…
Robbialac Acrylic Distemper (SPD) A specially formulated acrylic co-polymer emulsion based washable distemper for elegant, smooth, durable, matt finish for interiors…
Weather Coat Smooth Weather coat is smooth water based super exterior wall finish formulated to give exceptional durability in adverse climatic conditions…
Jhilik Synthetic Enamel Jhilik Synthetic Enamel is an economy synthetic enamel formulated for interior and exterior application to give a glossy durable surface…
Durocem Cement Coating Durocem is an exceptional formulation based on selected raw materials and specially treated white cement that makes it ideal for both indoor and outdoor applications…
Wood Keeper  
Robbialac Aluminium Paint Robbialac Aluminium Paint is a superior 2- pack aluminium paint with a brilliant silver-like luster. It is ideal for application on the exteriors of storage tanks for water, petrol, oil…
Tartaruga Textured Coating This is one of the most famous BERGER formulations in the world. The product is paste like having special aggregate to facilitate drawing desired textured patterns on the surface…
illusion Berger illusions is not just a paint… it’s a whole new lifestyle for your walls. A range of designer wear for your walls with thousands of color options….

 

Color bank

Robbialac Plastic Emulsion Classic  
Robbialac Synthetic Enamel Gold
Luxury Silk Splendour
Robbialac Pearl Lustre Finish
Weathercoat Smooth Classic
Robbialac SPD Super
Wood Keeper Finesse

 

 

Premier/ Undercoat /Thinner

 

Product Name Product Description
Robbialac Red Lead Primer  
Robbialac Zinc Phosphate Primer  
Robbialac Plastron Primer Sealer This is an excellent primer, specially for plastered walls which seals and stops penetration of moisture from inside the wall and thus keeps the topcoat finish unharmed…
Robbialac Synthetic Undercoat  
Robbialac Anticorrosive Red Oxide Primer Robbialac Red Oxide Primer provides an excellent, quick-drying protective coating on various types of ferrous metal surfaces…
Robbialac Water Sealer  
Robbialac T-6 for Air-Drying Primers & Enamels  
Bison All Purpose Primer Bison All Purpose Primer is applicable on concrete, wooden and metal surfaces. It can be applied on both new and old surfaces…
Auto Coat Primer Surfacer/Undercoat  
 

 

BERGER INDUSTRIAL
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.

Very soon an Industrial manual will be available in this site which is a guidebook to the exhaustive range of products offered from Berger Paints. Soon you’ll find, as you start using this book, that Berger has an answer to almost each of your need when it comes to painting.

1 industrial finishes

2 high productive coatings

3 Industrial premiers

4 Others.

Industrial finishes

Product Name Product Description
Berger Suprakoat Powder Coating  
Jensolin Industrial Enamel A top quality glossy paint based on high quality selected resins and pigments. It has versatile applications…
Jensolin Aluminium Paint  
Jensolin Stoving Primer This primer is based on Alkyd / Amino resin combination as well as anti-corrosive pigment and is most suitable under stoving finishes…
Jensolin Chlororubber Lacquers A chlorinated rubber based finish with exceptional properties like water impermeability, resistance to salt spray, spillage and fumes of most acids…
Jensolin Stoving Enamel This is high performance enamel based on a blend of high grade thermo¬setting Alkyd-Amino resin together with high quality pigments…

High productive coatings

Product Name Product Description
Jensolin Epoxies A two pack anticorrosive epoxy primer for use on steel surfaces. This primer is ideally designed for offering superior performance in highly corrosive chemical and coastal environments…
Jensolin Polyurethanes  

Industrial premiers

Product Name Product Description
 

Jensolin Red Oxide Primer

 
Jensolin Red Lead Primer This is a quick drying Red Lead Primer to use on structural steel. Provides a hard drying, anticorrosive coating, suitable for over coating with conventional finishes and chlorinated rubber coatings…
Jensolin Zinc Phosphate Primer Jensolin Zinc Phosphate Primer is based on a special synthetic resin in which zinc phosphate is used as a rust-inhibiting pigment…
Jensolin Zinc Chromate Primer Jensolin Zinc Chromate Primer is based on a special synthetic resin in which zinc chromate is used as a rust-inhibiting pigment…
Jensolin Wash Primer A two pack etch primer for use on C.I. sheets, G. I. Sheets or pipe…

 

BERGER MARINE

 

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. Bay of Bengal is well known for its fish reserves. Our fishing trawlers & boats are engaged in fishing in Bay of Bengal.

We have two sea-ports and a good no. of river ports. A good no. of ships are coming to and going out from these seaports. Large no. of sea-coasters, launches, trawlers, barges, country – boats (powered and unpowered) are plying everyday through sea-coasts and rivers.

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.

The maring products of Berger are devided in

1 Thinners

2 Premiers

3 top coat finishes

4 Special coatings

Thinners

Product Name Product Description
Seaborne Thinner T-1  
Seaborne Thinner T-6  
Seaborne Thinner T-7  
Jensolin Thinner T-1 For Stoving paints, cycle paints..
Jensolin Thinner T-2 For Chlororubber paints, Swimming pool paints, Tennis court paints..
Jensolin Thinner T-3 For N.C paints..
Jensolin Thinner T-4 For Road / Runway marking paints..
Jensolin Thinner T-7 For all epoxy paints..
Jensolin Thinner T-8 For polyurethanes..

Premiers

Product Name
Seaborne Red Lead Primer
Seaborne Zinc Chromate Primer
Seaborne Zinc Phosphate Primer
Seaborne Metallic Protective Coatings
Berger Marine Red Lead Primer
Berger Marine Anticorrosive Primer
 

Top coat finishes

Product Name
Seaborne High Gloss Enamel
Seaborne Aluminium Paint
Seaborne Aluminium Hold Paint
Seaborne Boot Topping
Seaborne Topside
Seaborne Deck Paint
Seaborne Funnel Heat Resisting Chimney Black
Seaborne Bituminus Black
Berger Marine Enamel

Special coatings

Product Name
Seaborne High Performance Epoxy Coatings
Seaborne Chlororubber Antifouling

Target market selection

Strategies

 Berger has chosen target markets to co-operate in the interest of overall company in a socially responsible manner. The total size of the paint industry in Bangladesh is estimated at taka 4.29-4.44billion in 2005. The paint industry can be divided into three segments. These are

  1. a) Decorative.
  2. b) Industrial.
  3. c) marine.

The decorative segments of the market accounts for a whopping 83.42% of the total industry, whereas industrial, marine segments contribute 12.17%, and 4.41%, respectively.

The major focus of the companies, operating in the industry, is towards decorative segment. Only a few of the companies have their product offerings in industrial and marine segment. All the competitors are concentrating their best efforts for carving out their share of the pie in the decorative segment of the industry. The enamel segment accounts for around 50% of the decorative paint market, by value, and approximately 40% by volume.

Berger market share in the synthetic enamel category increasing gradually. As this product is accountable for the major share of the paint market, its continued success will result in significant growth of the overall market share of the company. This will also enable Berger to battle its competitors by weakening then in such a strategically important segment.

 Positioning strategies

 Berger designs the company’s offerings and image to occupy distinctive place in the mind of the target market.

For positioning in the mind of the target market Berger has differentiated its variables.

Product differentiation

Product differentiation on the basis of size, shape, color shade, convenient size of their paint container, plastic container and so on. It’s also maintain its better quality product, finest color shade, durable & long lasting paint, and they are also responsible to the customer wants and satisfaction.

Service differentiation

Every company in the service market differentiate their service to be the best service company and capturing most of the market share. Berger differentiates its service comparing to the other competitors. These are

  • Ordering ease
  • Customer consulting & delivery Service

Ordering ease

Ordering ease of Berger refers to how easy it is for the customer to place an order to the company. So they introduce the online service in case of order. So the customer can order and receive its product without going to market.

Customer consulting & delivery Service

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:

  • Free Service
  • 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, 02-9354067 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.

Personnel differentiation

Berger always gain a strong competitive advantage through having better trained people. To recruit personnel Berger follows some strategies that are

  • Skill & knowledge.
  • Courtesy, friendly.
  • Communicating ability.

Channel distribution

Berger achieve competitive advantage through the way they design their distribution channels coverage, expertise and performance

Distribution of product

With its strong distribution network, Berger has reached almost every corner of Bangladesh. Their nationwide dealer network, supported by seven sales depots strategically located in Dhaka, Chittagong, Rajshahi, khulna, Bogra, Sylhet and Comilla has an unmatched capability of cater to the needs of the consumers of paints products, almost everywhere in Bangladesh

Special shade & products

Image differentiation 

Berger has taken many powerful marketing strategies to build a high image in the market. It has strong slogan and symbols to identify image powerfully.

Media & sponsorship

Media is the mainstream to built and develop image not in our country but also allover the world. Burger built up its image through advertising, sponsoring different social and cultural activities.

Social responsibility

 Berger paints has been organizing Young Painters; Art Competition for the last nine (9) years and also introduced Young Architects’ Award from 2003. The company regularly contributes to a number of causes and social welfare institutions through donations and sponsorships. These efforts results in a better image for BPBL, as minds of the general public, who are, after all, consumers of their products.

Quality policy of the company

Burgers objective is to achieve business excellences through quality by understanding, accepting, meeting and exceeding customer expectations. Berger follows international standard on quality management system to ensure consistent quality of product and services to achieve customer satisfaction.

ISO Quality Policy

Berger Paints Bangladesh Limited is Committed to achieving total consumer satisfaction.

They commit to project themselves as an ethical and socially responsible company.

Berger commits to continue as the market leader through consistent sales growth, increasing productivity and developing new products befitting consumer needs.

It shall ensure continual improvement in their operations through utilization of highly professional and dedicated team, proper process management and participation of stakeholders.

Berger will set measurable targets at appropriate stages and shall continuously monitor them.

Environment strategies of Berger for marketing 

Berger is committed to main etingtain the harmonious balance of our eco system and therefore constantly seeks ways to manufacture and produce products in an eco friendly manner. From its inception, Berger has played a pioneering role in introducing new paint and paint technologies to the Bangladeshi market; Berger’s efforts have established it as the most esteemed paint company of the country and have contributed significantly in its growth. Berger intends to continue its ceaseless endeavors in the future years, and it is expected that such efforts will contribute immensely to the sustained and growing success of the company’s business.

Technology orientation Berger has always been the most technology oriented paint company of the country. It has the most modern state-of-the-art production facilities installed in its Dhaka factory. Its Research and Development (R&D) and Quality Control (QC) departments are equipped with the best technologies in this country. Such technolo0gy driven strategy will definitely assist the future business growth of the company. 

Market responsiveness: Berger has always tried to respond promptly to market feedback. AS a result, Berger enjoys competitive advantage over its competitors. It is expected that Berger will enjoy more growth in the future, if it continues to be so be market responsive.

Pricing strategies 

The fierce competition has also made the industry highly price competitive. Most of the competitors consider pricing as one of the major marketing tools.

The price strategy of Berger is to offer a high quality product at a competitive price. They set its price in relation to the value delivered and perceive by the customer. Because it believes that if the price is higher than the value perceived, the company will miss potential profits and if the price is lower than the value received the company will fail to harvest potential profits.

Conclusion

Berger Prints Bangladesh ltd is the market leader of paint industry having about 40% shares. The company has strong distribution network all over the country. It has more than 1000 direct dealers. In addition, numerous secondary dealers operating in the outskirts of the major markets are engaged in selling the products of the company. BPBL introduced many new products into the market like exterior emulsion, silk emulsion, readymade wall putty etc. it first introduced Color Bank back in 1998, which enabled the customers to choose his desired shades from an exclusive array of over 5,000 shades. It also introduces home décor service. It has good brand image. Berger has been trying to increase its brand image further through more media presence, arranging programmers like Berger Young Painters are competition, Berger Young architects award, scholarship program for architecture students of BUET. It is constantly working to improve its products quality through comparative study and customer feedback in order to maintain competitive edge.

Recommendation

 By reviewing report it can be recommended that

  • The company should find out new sector.
  • Reduce dependence on special brand as decorative.
  • They should expand their sales depot countrywide.
  • They should deal with construction firm.