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Demand Generation of NEROLAC Paints through Non-channel Customers.

By Miss Davinder Kaur


Reg. No. PGDM/11-13/75

This SIP report is submitted to ASBM in Partial Fulfillment for the degree of Post Graduate Diploma in Management-2011-2013

Under the Guidance of Prof. Bhakta Bandhu Dash Assistant Professor, Asian School of Business Management, Bhubaneswar (Faculty Guide) &

Mr. Kumar Rahul Area Sales Manager Kansai Nerolac Paints Ltd. Jamshedpur (Corporate Guide)

Asian School of Business Management, Bhubaneswar.


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CERTIFICATE FROM CORPORATE GUIDE

CERTIFICATE

Certified that the Project Report with the title Demand Generation of NEROLAC Paints through Non-channel Customers, undertaken by Miss Davinder Kaur, was conducted under my guidance and supervision. She has designed the research, collected the data, analysed the results, interpreted the findings and observations and prepared the report.

(Bhakta Bandhu Dash) Assistant Professor, Asian School of Business Management Faculty Guide

DECLARATION

I hereby declare that the project report with the title Demand Generation of NEROLAC Paints through Non-channel Customers, being submitted to Asian School of Business Management in partial fulfilment of the requirements for award of Post Graduate Diploma in Management, is an original piece of research work carried out by me. I have designed the research, collected the data, analysed the results, interpreted the findings and observations and prepared the report. I further declare that this report has not been published/awarded elsewhere, nor has it been submitted in full or part for any other degree or diploma.

(Davinder Kaur)

ACKNOWLEDGEMENT
I wish to express my appreciation to all those whom I worked and interacted with and whose thoughts and insights helped me in increasing my knowledge and understanding my project. At the outside, I would like to thank Kansai Nerolac Paints Ltd (Jamshedpur) for approving me to do an internship in this organization. I would take this opportunity to thank Mr.Kumar Rahul, Area Sales Manager-Kansai Nerolac Paints Ltd (Jamshedpur) (External Guide), for enlightening me with the product knowledge during my training, which has helped me immensely during my field work. I am greatly indebted to him for his support and suggestions for completing the project in a successful manner. My sincere thanks to Mr.Shaji Abraham, Administration Head (Jamshedpur), for teaching me some important aspects of life and helping me whenever I approached him. I would also like to thank Prof. Bhakta Bandhu Dash my Faculty Guide, for guiding me and providing every kind of help throughout my project. I am obliged to him for his valuable suggestions, encouragement and unceasing inspiration at every stage of this work which helped me in the successful completion of the project within the stipulated period of time. I convey my sincere thanks to Asian School of Business Management for giving me the opportunity to do my internship in Jamshedpur in this esteemed organization named Kansai Nerolac Paints Ltd . Finally, I wish to express my sincere gratitude to my family, friends for their cooperation and encouragement to complete this dissertation report.

Davinder Kaur Reg. No : PGDM/11-13/75 Asian School of Business Management Bhubaneswar

PREFACE
In order that the fresh Post graduate students do not develop into ivory towards professionals, some amount of practical exposure and experience is included in our course curriculum. It is done with a view to give the students the practical oriented along with the theoretical orientation. To reinforce this strong theoretical base by practical knowledge , the student of Asian School of Business Management are enrolled to various reputed business organization/firms to undergo two months of summer training and to get accustomed to the practical business life. I was assigned to do my project in the Kansai Nerolac Paints Ltd (Jamshedpur). I worked with the organization to study through, Demand Generation of Nerolac Paints Through NonChannel Customers. I tried to analyze the market position of Kansai Nerolac Paints Ltd and to bring customers from the market. I shall be satisfied if this study and finding prove beneficial to the organization in any way.

EXECUTIVE SUMMARY
In this competitive market where Customer is the king, it is very important to analyze the customer and their perception about the product. Generating sales constantly and Satisfying customers are the only way to stay competitive in todays market place. The balancing act between what customers want and what the company can provide must be optimized in order nto maximize companys long term profit. Companies, by conducting various market researches, try to improve their products and provide customers better and more services. As without putting customers on the top no company can get success. For achieving success every company should target customers because the market is totally customer oriented. The report is prepared for the partial fulfilment of PGDM programme and as a part of curriculum. The report is an attempt to generate demand for the Nerolac Paints through non-channel customers and also to analyze and understand the business, create awareness and promote Kansai Nerolac among the non-channel customers. This training is being conducted by survey on the non-channel customers of Jamshedpur. The survey was conducted through questionnaire s by personally interviewing each respondent on a number of queries structured in the questionnaire. The data thus collected through survey was organized in a database, which could be referred for future endorsements. The above mentioned survey was conducted on 40 respondents. The respondents were selected from different parts of the Jamshedpur city. Upon completion of the research analysis, it was for us to understand the level of satisfaction of our customers. Respondents views varied from question to question and from person to person. It was found in the survey that still many people are not known of the modern Nerolac Paints Product, Benefits and Features. It is found that still Kansai Nerolac Paint Ltd is the strongest competitor for the private Paints companies like: Asian Paints, Berger Paints & Akzonobel India, etc.

TABLE OF CONTENTS

TOPIC

PAGE

A. Certificate from corporate guide B. C. D. E. F. Certificate from faculty guide Declaration Acknowledgement Preface Executive Summary

02 03 04 05 06 07 10-11 12-27 13 14 14-16 16

Chapter-1(Introduction) Chapter-2(About the Paint Industry) 2.1What is Paint? 2.1.1History 2.1.2The makeup of Paint 2.1.3How to differentiate a good quality paint from cheap paint? 2.1.4Types of Paints 2.2The Indian Paint industry 2.2.1Sector trends 2.2.2Demand & Growth 2.2.3Latest developments Chapter-3(Company Profile) 3.1Vision 3.2Profile 3.3Management & Key People 3.4Origin & Evolution of Nerolac

17-20 21-23 24-26 26 27

29-53 30 30-31 32-33 34-35

3.5IT Pillar 3.6The HR Philosophy 3.7Cultural Ethos 3.8The Quality Policy 3.9Te Open Door Policy 3.10Social Responsibility 3.11Awards & Achievements 3.12 Product Profile of KNPL 3.13Competitors of KNPL Chapter-4(Project Body) 4.1Literature survey Chapter-5(Research methodology) 5.1Research Design 5.2Sample unit 5.3Sample size 5.4Field work 5.5Data Collection Method

36 36 37 37 38 38 39 40-50 51-53

54-75

76-80 77 78 78 78-79 80

Chapter-6(Data Analysis) 6.1Graphical Analysis Chapter-7 (Recommendations And Limitations) Chapter-8(Conclusion) Chapter-9(Bibliography) Chapter-10(Annexure )
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81-94

95-97

98-99 100-101 102-111

Chapter-1

INTRODUCTION

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INTRODUCTION
The project title Demand Generation of Nerolac Paints Through NonChannel Customers is related with generating demand from the customers and also it is related with consumer behavior, buying behavior, pull and push strategy for various products, consumer perception and last but not the least that is channel of distribution and various promotional activities.. The title shows an indication that to bring customers from the market in the company. To bring customers several KNPL paints characteristics, features & benefits had to be explained to the customers so that they take interest to invest in our products. The Project also gives a clear idea about the Indian Paint Industry. The title was given to me from the company because my work was related to Demand Generation Through Non-Channel Customers. I have visited several Hotels, Hospitals & Housing Societies and had approached them to buy products of our company. Our preachment and convincing should fulfill the requirement of the companies. I used to explain the various characteristics of our paint and the benefits that they can get by using our paint. I had generally visited the Small, Medium & Large Hotels, Hospitals and Housing Societies at Jamshedpur and outskirts of Jamshedpur to conduct this survey. This survey was done to find out whether the people where ready to buy our product or not. The study was done to find out what features do the people would like to have in their paint and also whether the people have interest in our paint. For that we have used our research methodology in two ways first of all Primary data like Questionnaire, Phone calls and Fixing appointments and next was Secondary data like Company database and from internet connection.

OBJECTIVE OF THE STUDY


This study was done to survey which brand of paint the peoples usually prefer and also specifically explore opportunities in terms of new contracts thereby increasing sales for the company. To create awareness about Kansai Nerolac Paints. To develop business for KNPL. To recognize the target groups. To find out which type of product is preferred by the target groups. To study different facilities given by different paint companies. To study the behavior, values and belief of the target group. To understand the behavior of customers towards the brand KNPL.

Summary
This chapter deals with the objective of the study and what have I learnt from the study. It also deals with little discussion of the project title that I have 11 given.

Chapter-2

ABOUT THE PAINT INDUSTRY

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What is Paint?

Paint:- We see it everywhere and on everything. In the home, painting is one of the most frequent and popular home repairs made by home owners and renters. As we look around the world we see many beautiful colors around us. Some colors are natural some are man-made. It is used to produce a beautiful work of art, in industrial coating or road surface marks to help driving or it can be used as a preventing measure for preventing corrosion or water damage.

It is a generic term for a range of chemical substances that help protect surface and keep them looking good. Paints are thin coatings applied to surfaces in a liquid form. They dry and become flexible solids. They have many uses, the protection of surface from sunlight, dampness, dust, abrasion, weathering and provides texture to objects. They provide easily cleanable surfaces that help keep the substrates clean and tidy.

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History
Paint has been used by mankind since its origin. The evidence can be found in the cave paintings. The Chinese are considered to be the pioneers of manufacturing paints thousands of years ago. In modern times paint is made artificially and is used in many different ways. There are four basic things required to make paint. You need a Pigment to get the exact color you want Binder to hold the paint together Thinner so that it can be applied easily. Additive for specific features.

The makeup of Paint


In general terms, all paints have four basic components which make up the paint. These components are:

1. PIGMENTS Pigments are granular solids incorporated in the paint to contribute color. The pigment is responsible for the color of the paint and ability to hide what is underneath it (opacity).. Pigments can be classified as either natural or synthetic types. Natural pigments include various clays, calcium carbonate, mica, silicas, and talcs. Synthetics would include engineered molecules, calcined clays, blanc fixe, precipitated calcium carbonate, and synthetic pyrogenic silicas. Hiding pigments, in making paint opaque, also protect the substrate from the harmful effects of ultraviolet light. Hiding pigments include titanium dioxide, phthalo blue, red iron oxide, and many others.

Some pigments are toxic, such as the lead pigments that are used in lead paint.

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2. BINDERS Binders are otherwise known as Resins or Glue. This is the substance that makes the pigment particles stick to each other and makes the paint stick to the surface.It is the main body of the paint, holds the paint together and carries the pigment. It is commonly called the vehicle, is the film-forming component of paint. The binder imparts adhesion and strongly influences such properties as gloss, durability, flexibility, and toughness. Binders include synthetic or natural resins such as alkyds, acrylics, vinylacrylics, vinyl acetate/ethylene (VAE), polyurethanes, polyesters, melamine resins, epoxy, or oils. Binders can be categorized according to the mechanisms for drying or curing. It may be made up of a single component, or a combination of several resins or polymers.

3. SOLVENT or DILUENT

The main purposes of the diluents/solvents are to dissolve the polymer and adjust the viscosity of the paint. It is volatile and does not become part of the paint film.

It thins the paint or varnish, allowing it to be brushed or sprayed. It is volatile and does not become part of the paint film. It can also control flow and application properties. Its main function is as the carrier for the non- volatile components. Water is the main vehicle for water based paints.

Solvent-borne, also called oil-based, paints can have various combinations of organic solvents as the diluent, including aliphatics, aromatics, alcohols, ketones and white spirit.

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4. ADDITIVES Additives are used, in small amounts, to modify the film or paint. These are low- level ingredients that provide specific paint properties such as mildew resistance, defoaming and good flow and levelling. Besides the three main categories of ingredients, paint can have a wide variety of miscellaneous additives, which are usually added in small amounts. Examples are driers promoting the drying time of some coatings, flow control agents giving a smooth surface, defoamers preventing the formation of bubbles that could dry in the film, anti-skinning agents preventing the paint from skinning in the can. Other types of additives include catalysts, thickeners, stabilizers, emulsifiers, texturizers, adhesion promoters, UV stabilizers, flatteners (de-glossing agents), biocides to fight bacterial growth, and the like.

How to differentiate a Good quality paint from Cheap paints?


The amount of liquid determines the consistency of the paint i.e. how thick or thin it is and cheaper paints will tend to have more liquid and be thinner because this is the cheapest ingredient. Cheap paints have a higher percentage of solvents per volume, say a gallon. As a result there is less pigment and resins in the gallon of cheap paint than high quality paint which can have 50% more pigment and resins than the cheap stuff. What this means is that most of what you are applying with cheap paint is water or mineral spirits (solvents up to 70%) which evaporate and leave little pigment behind. This is why you have to re-coat and re-coat up to four times with low quality paint before enough pigment is left behind to cover the color underneath. So learn from the pros who value their time as you should. Buy the best paint you can afford and avoid having to paint more than twice. Look for high quality manufacturers such as Kansai Nerolac Paints ltd, Asian paints, Berger, Akzonobel India and look on the side of the can for about 45% pigment and resins per volume.

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Types of paint: Water Based and Mineral Spirit Based


There are different types of paints available today. Till the 19th century the word paint was used to describe oil- bound types only. But at the end of the day, all paints basically fall under two solvent categories which define their type; mineral spirit based (commonly known as paint thinner) or water based. In common convention these paints are referred to as oil based paint (alkyd resin base thinned with mineral spirits) or latex based paint (water thinned). Ironically neither latex based paint nor oil based paint contain latex or oil. The pigments in both oil based and latex paint determines the degree of coverage and the color and the finish. The more pigment, the better hiding properties of the paint. The most important pigment is titanium dioxide, while other important inorganic pigments include carbon black and iron oxide. Most paints do not use titanium dioxide because it is very costly but it provides a high quality paint. Most paint manufacturers substitute clay and silica as pigments because they are less costly but do not hold up as well. Manufacturers add fillers to their paint products to enhance the performance of the paints. This is why it is important to read the label of the paint cans and answers the vexing question of why some paints cost $12 per gallon and some cost $45 dollars per gallon. Both oil based and latex paints use binders to solidify the paint into a film.

1. Water Based Paint: Also Called Acrylic Latex Paint


The term Latex is used by some paint companies to refer to their water based paints. Latex paint was invented in the 1940's in Canada, using the resin from a rubber tree as a binder. The general name for this original binder is called "latex". Even though manufacturers don't use the rubber tree resins any more the name stuck. The binders are now made from synthetic (man-made) resins of polyvinyl acetate and styrene butadiene and other synthetic binders.

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Disadvantages of Latex Paints: The main disadvantages of latex paint:


Not suitable for painting over steel without first using a primer; If the surface is bare wood, latex paint will raise the grain of the wood unless that bare wood is first painted with a primer;

Does not adhere to dirty or chalky walls well; Shrinks more than oil based paint; More sensitive to temperatur changes; May stain when contaminated with a water-soluble mixture; Has a softer film (the outer coating of the paint); Takes longer to cure than olil based paint and can be damaged easily until thoroughly cured.

Advantages of Latex Paints:


Latex paints do not cause cracking and peeling as do oil based paints; The surface of the paint actually "breathes" -- meaning any moisture in the drywall can escape through the porous surface of the pain;t

Latex paint does not have the strong odor of an oil based paint -- that means less VOCs (volatile organic compounds) to harm the environment;

Latex paint can be easily washed with soap and water from brushes, rollers and drips; Latex paint is not flammable.

Water based latex paints have come a long way and are extremely high performing paints. You can use water based latex paint in almost any application in the home, from exterior paint and trim, to interior walls and woodwork.

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2. Alkyd Based Paint: Also Called Oil Based Paint


Oil paint was originally made with linseed oil as a binder. That is why the name "oil based" paint was originally coined and still in use today. To thin the paint you need mineral spirits or turpentine to dilute the paint. Many years ago, oil based paints were the choice of all painters but with the improvements in the latex paints, and the restrictions in several states against using oil based paints, latex is favored by most painters. These paints require a solvent such as mineral spirits for thinning and clean up. Oil or Alkyd based paints are almost exclusively considered enamels due to their hard durable gloss or semigloss finish and are typically used for coating windows, doors, and woodwork trim.

Alkyd paint is not commonly used in home painting applications. It used to be that these paints were the standard for bathrooms and other "wet" areas since they were easy to scrub, had a higher sheen and were more durable than the early latex paints.

That is no longer true and now many latex paints equal or even outperform alkyd based paints because of the other benefits of latex paint. Another benefit to alkyd is it has a longer drying time than latex paint so it does not show brush strokes as much, an advantage when painting trim, woodwork and cabinetry.

Disadvantages of Oil Based Paints:

Maintenance -- if you paint your interior trim with oil, you will hae to touch it up more often.

Yellowing -- If you are painting your walls or trim with a white colored oil based paint, the white has a tendency to turn yellow after a time

Mildew -- Oil based paint does not resist mildew that may form in a highmoisture room such as the bathroom.

Legal restrictions -- States are starting to pass laws against using oil-based paint. The reason is that the oil-based paint gives off gasses of volatile organic compounds (VOCs). Most paint that is on the wall prior to 2005 used solvents, oils and dryers that no longer comply with some new rules. As regulations become more strict, it might not be a good idea to continue using a paint that may be restricted in the future. 19

Odor -- Alkyd oil paint also has a long-lasting odor, so ventilation is mandatory when using them

Paint Bubbles - Oil based paint tends to bubble during the paint process whereas the latex paints do not bubble Because of this, it is imperative that each coat is allowed to "cure" for several daysa before applying a second coat.

Peeling -- Oil based paint does not breath as does latex paint. As a result, if the surface of the underlying wood or plaster has any moisture, the oil based paint will tend to peel. This happens because oil paints form a tigher, nonporous film which doesn't allow moisture vapor to pass through it and results

in a pressure build-up that breaks the paint bond and delaminates the paint causing peeling.

Drying Time -- Oil based paint needs at least 24 hours to dry between coats under best conditions and up tos everal days if there is any humidity in the air.

Advantages of Oil Based Paints:

Alkyd paint goes on smoother but has a much longer drying time as this paint needs to dry over a longer time period of up to 3 days.

The alkyd paint has a very hard surface that resists scuffs. Oil based enamels provide a smoother finish than latex paints. Oil enamels are easy to wash because the surface is much hard than latex paint. Oil paints are more chemically resistant to stand up to washing detergents than latex. Since oil based paints are thicker than latex, they tend to hide wall imperfections better than latex.

Oil based paint offers a less clear refractive index compared to latex paint because the linseed oil contains smaller molecules than latex paint does. Thus the paint film provides a feeling of more depth and warmth than latex paint.

When running your hand over an oil paint on a wall, the texture will feel smoother than a latex paint (which almost always has a rubbery feel).

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The Indian Paint Industry at a Glance


Size of the Industry Today India has more than 20,000 outlets in operation, probably the highest for any country. Mumbai, Ahmedabad, Coimbatore, New Delhi, Surat, Chennai, Delhi, Jaipur, Bangalore, Kolkata, Karur, Tirupur, Ludhiana, Bhilwara, Erode, Geographical distribution Jodhpur, Rajkot, Noida, Panipat, Amritsar, Vadodara, Kanpur, Madurai, Gurgaon, Hyderabad, Navi Mumbai, Tirupur ,Thane, Shanghai, Pune, Karachi, Faridabad, Indore, Ghaziabad, Varanasi, Faisalabad, Alappuzha. The high volumes of low cost distempers sold in India, which amounts Output per annum to approximately 200,000 tonnes per annum at an average cost of Rs35 per kg ($0.88) at the present rate. Market capitalization The market for paints in India is expected to grow at 1.5 times to 2 times GDP growth rate in the next five years

The history of Indian Paint Industry is as old as the history of the Indian people. The earliest examples of Indian painting are cave paintings going back to 10,000 B.C. The tradition of painting in Indian subcontinent grew and developed over time, resulting in a fully developed and finest style, incorporating the culture and faith of the region and religion. Indian paints always embrace rich color and clear symbolism, using specific iconography to make religious figures clearly recognizable. The success of Indian paint industry is over 100 years old. Its beginning can be traced back to the setting up of a factory by Shalimar Paints in Calcutta (now Kolkata) in 1902. Until World War II, the industry consisted of small producers and two foreign companies. After the war, the imports stopped, which led to the setting up of manufacturing facilities by local entrepreneurs. Still, the foreign companies continued to dominate the market. Initially British paint companies such as Goodlass Walls (now Kansai Nerolac Paints), ICI, British Paints (now Berger Paints), Jenson & Nicholson and Blundell & Eomite dominated the market. The Indian paint industry has come a long way from the days when paints were considered a luxury item. Today the awareness level on preventing corrosion through paints is relatively high, a development that should be a huge boost to the paint industry.

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Over the years, India's paint industry has indeed come a long way. However, consumption of paints in India is far below than what one sees in developed countries. The Indian Paint industry, estimated to be a Rs.21,000 Cr. industry, has been growing at a rate of above 15% for the past few years. The organized players of the industry cater to about 65% of the overall demand, whereas the unorganized players take care of the remaining 35%, in value terms. The unorganised players mainly dominate the distemper segment. There is a phenomenal growth on the housing sector front with rapid urbanization and availability of easy to secure housing loans which have become the prime drivers of growth in the decorative paint segment, which comprises 70% of the $2 billion Indian Paint industry. An average increase of growth of about 10% in the automobile sector contributes to 50% of the revenues in the industrial paints segment.

The big players and their market share-value of the organized sector are:

Asian Paints Goodlass Nerolac Berger Paints ICI Jenson & Nicholson Shalimar Others

37% 15.9% 13.8% 11% 5.7% 4% 12%

Paint Market of India


Kansai Nerolac Paint Akzonobel India Others 6% 4% 11% 12% 16% Aian Paints Jenson & Nicholson Berger Paints Shalimar

14%

37%

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Financial Year 11 FY11 was a mixed bag for the paint companies. While all the 3 players viz. Asian Paints, Kansai Nerolac and Berger Paints reported strong growth in sales, operating margins came under severe pressure due to raw material price inflation. Top-line growth was boosted by strong demand from the decorative paints segment. Nonetheless, the demand environment in the industrial segment continues to remain challenging due to rising interest rates. Performance on the margins front was a big disappointment. Rising prices of crude oil and titanium dioxide increased the overall expenditure thereby impacting profitability growth. However, companies are undertaking a gradual and calibrated price increase to shield margins. Nonetheless, as a complete pass on of raw material price increase is not possible in the industrial segment, the blended margins continue to suffer. All the key players are in an expansion phase. Asian Paints' plant in Khandala, Maharashtra is under construction and is expected to be commissioned by 4QFY13. Kansai Nerolac's capacity expansion plans at Jainpur and Hosur culminated during the year. Berger Paints has also undertaken capacity expansion for its plants located in Andhra Pradesh and Goa. Further, it is also contemplating to set up a manufacturing facility in Pune, Maharashtra.

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Sector trends

The Indian paint industry is mainly segmented into two categories- Industrial and decorative paints. Industrial paints are used for protection against corrosion and rust on steel structures, vehicles, white goods and appliances. Kansai Nerolac is the market leader in this segment.

Industrial Composition
8% 8% 8% 14% 42% 6% 14%

Asian Paints ICI Others

Goodlass Nerolac Jenson & Nicholson

Berger Paints Shalimar

Decorative paints are used in protecting valuable assets like buildings. In most developed countries, the ratio of decorative paints vis-a-vis industrial paints is around 50:50. But in the domestic market, Decorative segment accounts for 70% of the total demand for paints whereas the industrial segment accounts for the remaining 30%. Asian Paints is the market leader in this segment.
Architectural Segment
19% 6% 6% 8% 11%
Asian Paints ICI Others

37% z 13%

Goodlass Nerolac Jenson & Nicholson

Berger Paints Shalimar

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Decorative Sector Composition: Within the decorative segment, the share of enamels is 50%, distemper is 19%, emulsions 17% , exterior coatings 12% and wood finishes 2%. and wood finishes two percent. The exterior category, particularly the exterior emulsions, is the fastest growing segment for the last three years. Enamels Distemper Emulsions Exterior Coatings Wood Finishes 50% 19% 17% 12% 2%

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Industrial Sector Composition: The industrial coating segment includes high performance coatings with 30% market share, powder coatings with ten percent, coil coatings with five percent, marine coatings five percent and automotive coatings 50%.

Automotive Paints High Performance Coating Powder Coating Coil Coating Marine Paints

50% 30% 10% 5% 5%

Demand and Growth The demand for decorative paint is highly price sensitive and also cyclical. Moonsoon is a slack season while the peak business period is Diwali festival time, when most people repaint their houses. The industrial paint segments, on the other hand, is a high volume-low margin business. Total paint and coatings demand in India in 2008 amounted to 1.64 million tons, of which decorative coatings represented 79% or 1.3million tons. The industrial coatings market in India still remain relatively small in comparison at about 340,000 tons, and this is dominated by structural and infrastructural applications associated with the protective coatings market. Despite having recorded a healthy growth of 13% annually in the 1990s, the per capita consumption of paints in India is very low at 0.5kg per annum as compared to 4kg in the South East Asian nations and 22kg in developed countries. And the global average per capita consumption is 15kg.

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Latest Developments:

New foreign equity is getting highly attracted in this sector. Kansai Paints acquired controlling interest in Kansai Nerolac - the second largest Indian paint company. There are talks about other companies also being taken over by foreign companies. Some foreign companies have actually opened shops in India

How Does the Industry Work?


The working of the Paint industry has been explained pictorially below:

Raw Materials: On an average, raw materials constitute ~56% of the total expenditure in

paint companies. Titanium dioxide is one of the major raw materials and price fluctuations in its cost have direct and substantial impact on the cost of production. Crude oil derivatives are the other major raw materials and have similar impact. Apart from these a large number of

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other raw materials are used for adding/giving specific properties to the wide product range offered by the industry.

End-User: The decorative paints segment products find use in households and construction

whereas the industrial segment products find use in automotive industry, consumer durables industry and other OEMs.

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Chapter-3

COMPANY PROFILE

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VISION STATEMENT: It is our vision to leverage global technology, for serving our customers with superior coating systems built on innovative and superior products and world class solutions, to strengthen our leadership in Industrial coatings and propel for leadership in Architectural coatings, all to the delight of our stakeholders. PROFILE: Kansai Nerolac Paints Limited (formerly Goodlass Nerolac Paints Ltd.), established on 2nd September 1920, is an 86 years old company.Kansai Nerolac Paints Ltd is a subsidiary of Japan based Kansai Paint Company Limited, which is one of the top ten coating companies in the world. Kansai Paints Co. Ltd., our parent company is the number one paint company in Japan. It is a global leader in innovation and is known best for its product innovation, R&D and sensitivity towards the environment, Kansai commands a leadership position in providing state-of-theart solutions in dcor and in industrial applications in South East Asia, also parts of Africa, Europe and America.

It is one of the top paint companies in the world. It has 39 Joint Ventures, subsidiaries and licensees around the world and has recorded a turnover of over 2 billion USD.

The biggest strength of Kansai of course is its unmistakable belief in innovation through R&D.

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Kansai Nerolac Paints Ltd (formerly known as Goodlass Nerolac Paints Ltd) is largest in industrial paint and second largest decorative paint company based in Mumbai. . It is engaged in the industrial, automotive and powder coating business. It develops and supplies paint systems used on the finishing lines of electrical components, cycle, material handling equipments, bus bodies, containers and furniture industries. Kansai Nerolac has been a cherished name in millions of households across the length and breadth of India. Nerolac paints as it is known popularly is an established brand in decorative paints.

KNPL has technical collaboration with a number of manufacturers that gives it a competitive edge over the competitors in the industrial paint segment.

Its collaboration with different companies to cater to different segment as follows.Kansai paint co ltd, Japan for all automotive coatings.Nihon Parkerizing co ltd, Japan- sealands and underbody compounds. Nihon tokushue toryo, Japan- for pretreatment chemicals, Valspar Corporation, USA-powder coating, Ameron coating Inc, USA- high performanance coating. The main strength of the organization lies in its employees and the technological superiority of the products manufactured, which has enabled the Company to maintain a steady growth over the years. One of the most important thing is that the attrition rate in KNPL is very low.

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Management & Key People


The people who make the company are its real assets. At Kansai Nerolac, we stand by this. The success of Kansai Nerolac has hinged on this philosophy since 1920, and being the second largest paint company in India is the rightful tribute to its people's commitment and dedication. With employee strength of around 2000 spread over the country and an efficient management, the company provides the conducive work atmosphere to develop and grow. Our team of Ph.D's, engineers and technicians visit collaborator's plants abroad to update themselves with the latest techniques. Board Of Directors Dr. Jamshed Jiji Irani Mr.Devendra Motilal Kothari Mr.Harishchandra Meghraj Bharuka Mr.Susim Mukul Datta Mr. Hiroshi Ishino Mr. Pradip Panalal Shah Mr. Noel Tata Mr. Pravin Digambar Chaudhari Mr. Yoshikazu Takahashi Mr. H. Nishibayashi Chairman Vice -Chairman Managing Director Director Director Director Director Wholetime Director Director Director

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Management Committee Members Name Of The Person Mr. H.M. Bharuka MR. Pravin Chaudhari Mr. Shrikant Dikhale Mr. Anuj Jain Mr. Mahesh Mehrotra Mr. Hitoashi Nishibayashi Mr. P.D. Pai Mr. Jason Gonsalves Mr. Sudhir Rane Designation Managing Director Director Vice President - HR Director - Decorative Sales-Marketing Vice President - Technical Director Supply Chain & Auto Marketing Vice President - Finance Vice President - Corporate Planning & IT Vice President Automotive Coatings

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Origin & Evolution of Nerolac


Year 1920, we began as Gahagan Paints and Varnish Co. Ltd. at Lower Parel in Mumbai. The journey is marked by moving from strength to strength in every sphere of business be it product introductions through innovation, value engineering and superior technology.

1920: We started our journey as Gahagan Paints and Varnish Co. Ltd at Lower Parel in
Mumbai.

1930: In 1930, three British companies merged to formulate Lead Industries Group Ltd.

1933: In 1933, Lead Industries Group Ltd. acquired entire share capital of Gahagan Paints in
1933 and thus, Goodlass Wall (India) Ltd. was born.

1946: Subsequently, by 1946, Goodlass Wall (India) Ltd. was known as Goodlass Wall Pvt.
Ltd.

1957: : Goodlass Wall Pvt. Ltd grew popular as Goodlass Nerolac Paints (Pvt) Ltd. Also, it
went public in the same year and established itself as Goodlass Nerolac Paints Ltd.

1976: Goodlass Nerolac Paints Ltd. became a part of the Tata Forbes Group on acquisition
of a part of the foreign shareholdings by Forbes Gokak.

1983: Goodlass Nerolac Paints Ltd. Strengthened itself by entering in technical collaboration
agreements with Kansai Paint Co. Ltd, Japan and Nihon Tokushu Toryo Co. Ltd, Japan.

1986: In 1986, Goodlass Nerolac Paints Ltd. turned into a joint venture of the Tata Forbes
and the Kansai Paint Co. Ltd., with the latter acquiring 36% of its share capital.

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1999: Kansai Paint Co. Ltd, Japan took over the entire stake of Tata Forbes group and thus
GNP became wholly owned subsidiary of Kansai Paint Company Ltd.

2006: On the 11th of July, Goodlass Paints Ltd. name has been changed to Kansai Nerolac
Paints Ltd.

During the journey of continuous performance excellence, we have entered in to many technical collaborations with other industry leaders such as E.I. Du-Pont de Nemours & Company Inc., USA and Oshima Kogya Company Ltd., Japan for our different products. Our incessant journey of successes will go on backed by our present human asset of over 2000 professionals and a sales turnover of Rs. 1484 crores. We are esteemed to be a subsidiary of Kansai Paint Company Limited, which is the largest paint manufacturing company in Japan and among the top ten coating companies of the world. We are the second largest coating company in India with a market share of over 20%. We are the market leader in industrial / automotive segment supplying over 90% of the OEM requirements.

It has 5 paint manufacturing plants and about 6-7 contract manufacturers. The Nerolac owned plants are at: 1. Jainpur (Uttarpradesh) 2. Bawal (Haryana) 3. Lote, Chiplun (Maharastra) 4. Chennai (Tamil Nadu) 5. Hosur (Tamil Nadu) 35

IT Pillar
Nerolac has always sought to harness the benefits of Information technology. It has envisioned using Information technology in all areas of business to build up unique competencies and efficiencies thus delivering maximum value to Nerolac's stakeholders. Starting in February 2000, It has transformed its functional based legacy systems into a process based organization wide systems culture by investing and implementing the SAP R/3 solution. The Company operates on SAP R-3 platform and uses Advanced Planning Optimizer for Demand Planning, Forecast and Demand Fulfillment. While Data Intelligence Warehousing supports day to day decisions within the Company, Knowledge Portal serves as repository of accumulated knowledge within the organization.

Information Technology (IT) is centralized with online connectivity and security framework.

The HR Philosophy
At Nerolac we recognize our human resources as extremely important and critical assets. We honor the dignity of each individual, irrespective of position and highly value the feelings and emotions of people. Our Human Resource Policy is, to facilitate creation of synergy, mutuality and interdependence between individual and corporate development and growth through total employee involvement and building an enabling work culture in the organization. Informality in interactions, transparency and openness in communications at all levels, and an enabling work environment supporting high autonomy of work, transparency and an objective subjectivity of Performance Management System, fair dealing, tremendous care and concern for people are a few of the softer aspects of permeable people management environment which represent the organizational climate and culture. Our faith is averred by the fact that people feel pride in being part of the Nerolac family. We care for people; people care for our business. 36

Cultural Ethos
Vision driven organization Employees feel pride in being part of the organization Recognition of human resources as extremely important and critical assets High level of human dignity Transparency and openness among employees at all hierarchical levels Performance-linked reward system Management and employee commitment to organization values is high Autonomy in work is high High commitment to quality products

The Quality Policy


It is the philosophy of Kansai Nerolac Paints Ltd., and its associates to achieve complete customer satisfaction by providing products and services that consistently meet or exceed the customer needs and expectations, pursuant to agreed specifications, delivery schedules and competitive prices. It is the philosophy of the company to systematically operate its manufacturing facilities by inculcating commitment to total quality management at all levels and on a continuous basis with a view to achieving First Time Right results in manufacture, services and other operations. It is the companys aim to constantly reduce waste of material and effort, increase efficiencies and ensure safety of plant and people and protection of the environment.

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Open Door Policy


Working together requires that we have a friendly atmosphere based on trust and respect amongst all of us.

At Nerolac we follow an Open Door policy. Any person is free and welcomed to share good idea, suggestion, doubt, problem about job or work place, or uncertainties about ones future in the organization. An open and transparent communication is appreciated.

Social Responsibility
The company continues to make its due contribution to community relief and development activities and has donated both in cash and kind for the beautification of some public places in Mumbai and elsewhere. The company continued its activities directly or indirectly through trusts/agencies in community Development and Social Welfare including contributions towards national defense, medical help, education, improvement of environment etc.

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Awards and Achievements:


While we look to the future, it is important to bask in past glory. Nerolac has won many accolades for its stupendous work in product development, environmental consciousness and in being a responsible corporate citizen.

'Golden Peacock Environment Management Award 2005' for environment management of Jainpur factory & DSIR National Award ACED for adaptation of technology to suit local needs.

Short listed for the Best Managed Company award from Business Today & A.T. Kearney 2005.

Best Vendor Award from customers like Toyota Kirloskar Motors (TKML) for Cost & from Maruti Udyog (MUL) on overall commendation.

Awards for Marketing initiatives like Cannes2007 Bronze for press Ad Emvies 2007 Gold & Silver for Best Media innovation, Best case study-Media innovation(Impression Rang Zamade), Best Integrated Campaign, Best Media strategy & Peoples Choice Award

Readers Digest Trusted Brands Gold Award for 2008 Frost & Sullivan Market Leadership Award in Indian Industrial Paints & Coating Market Hall of Fame from CTO Forum, PC Quest & Best Implementation-APO in IT Excellence in Corporate Governance from ICSI Greentech Environment Excellence Gold & Silver for Bawal & Chennai units Association of Business Communicators of India, Silver for Annual Environment Report. Environmental Excellence Gold Award by Greentech Foundation for the Lote Plant for the year 08-09.

Nerolac Beauty Flexi won Product of the year award (2008-09) in the paint category.

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Product Profile of Kansai Nerolac Paints Ltd.


Nerolac Interior Emulsion Portfolio

Super Premium

Nerolac Impressions Eco Clean Nerolac Impressions 24 Carat

Premium

Nerolac Beauty Flexi Nerolac Beauty Gold

Popular

Nerolac Beauty Silver

Economy

Nerolac Beauty Smooth

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Interior Paints:
1. Impression Eco-clean Features: a) Low VOC and lead free. b) Water based. c) Stain resistant. d) Coverage Capacity 220-240 sq-ft/lt/coat. Benefits: a) Odour less. b) Washable. c) Crack hiding property. d) Sheen.

2. Impression 24 carat Features: a) Water based. b) Smooth velvety finish. c) Sheen. d) Coverage Capacity 220-240 sq-ft/lt/coat. Benefits: a) Crack hiding property. b) Washable. c) Stain resistance.

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3. Lotus touch Features: a) Blister and moisture free. b) Low odour. c) Extra coverage. d) Coverage capacity 270-300 sq-ft/ltr/coat.

Benefits: a) 15% more smoother,80% better brushabilitity,64%lesser in price. b) Fungal resistant. c) Sheen.

4. Beauty Gold Features: a) Water based. b) Stain resistant. c) Coverage capacity 270-300 sq-ft/ltr/coat Benefits: a) Matt finish. b) Washable. c) Fast drying.

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5. Beauty Silver Features: a) Water based. b) Coverage capacity 200-220 sq-ft/ltr/coat. Benifits: a) Matt finish. b) Washable. c) Economical. d) Anti-fungal.

6. Beauty smooth Features: a) Water based. b) Coverage capacity 190-220 sq-ft/ltr/coat. Benefits: a) Matt finish. b) Better coverage and finish than distemper.

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7. Little master Features: a) Water based. b) Coverage capacity 190-230 sq-ft/ltr/coat. Benefits: a) Matt finish.
b) Ideal for those who are using distemper.

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Nerolac Exterior Emulsion Portfolio

Super Premium

Nerolac Excel Total

Premium

Nerolac Excel

Popular

Nerolac Suraksha Advanced

Economy

Nerolac Suraksha PLUS Nerolac Suraksha

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Exterior Paints:
1. Excel total emulsion. Features: a) Excellent Outdoor durability. b) Anti-Algal. c) Resists dust pick up. d) Coverage capacity 140-160sq-ft/ltr/coat Benefits: a) Water Repellant. b) Excellent adhesion.

2. Excel Anti-Peel. Features: a) Anti-algal. b) Water based. c) Coverage Area-130-150 sq-ft/ltr/coat. Benefits: a) Excellent adhesion. b) Resistant to tropical climate.

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3. Suraksha Advance Features: a) Anti Algal formula. b) Water based. c) Coverage capacity 115-135 sq-ft/ltr/coat. d) Anti-peel. Benefits: a) Prevents wall from greenish blackening. b) Suitable for dry and moderate humid climatic condition.

4. Suraksha Plus Features: a) Superior Color retention. b) Water based. c) Coverage capacity 100-120 sq-ft/ltr/coat. Benefits: a) Sheen. b) Excellent adhesion.

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5. Suraksha Features: a) Water based. b) Durable. c) Much superior to cement paints. d) Coverage capacity 85-105 sq-ft/ltr/coat. Benefits: a) Low dust pick up. b) Excellent adhesion.

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Distempers:
1. Premium Acrylic distemper. Features: a) Water based. b) Coverage capacity- 190-220sq-ft/kg/coat. Benefits: a) Washable. b) Matt finish.

2. Beauty Acrylic Distemper. Features: a) Water based. b) Coverage capacity 150-170 sq-ft/kg/coat. Benefits: a) Matt finish. b) Long lasting.

3. Beauty oil bound distemper. Features: a) Used on plaster work,brick work and asbestos. b) Coverage capacity 190-210 sq-ft/kg/coat.

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Benefits: a) Washable b) Matt finish.


c) For beautification of fully matured wall.

4. Goody synthetic distemper Features: a) Applicable on brick work and asbestos. b) Coverage capacity 140-160 sq-ft/kg/coat Benefits: a) Available at the rate of limstone. b) Available in pouch. c) Available in the form of paste.

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Competitors of Kansai Nerolac Paints

Asian paints is a household name in the domestic paints industry. Asian Paints is India's largest paint company and ranks among the top ten decorative coatings companies in the world today, with a turnover of Rs.30.2 billion (USD 680 million). Asian Paints Ltd. was incorporated in the year 1942. It was formed as a partnership firm by four friends in 1942. The company has an enviable reputation in the corporate world for professionalism, fast track growth, and building shareholder equity. It is an Indian chemicals company headquartered in Mumbai, India. It manufactures a wide range of paints for decorative and industrial use. Asian paints operates in 22 countries and has 29 paint manufacturing facilities in the world. Besides Asian Paints, the group operates around the world through its subsidiaries Berger International Limited, Apco Coatings, SCIB Paints and Taubmans.

ASIAN PAINTS PRODUCTS


Premium Emulsion Royale Apex Tractor Ace. Apcolite Premium Exterior Emulsion Washable Distemper Exterior Plastic Paint Synthetic Enamel -

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Berger Paints India Limited was the creation of Mr. Lewis Berger, who in 1760, through his shades had offered people a chance to transform their homes through the power of imagination. Berger Paints India Limited has been in India since 1923. It is an Indian paint company which operates chiefly in India headquartered in Kolkata, India. It has come a long way since its inception in the year 1923.

BERGER PAINTS PRODUCTS


Premium Emulsion Luxol Silk Weather coat. Bison Wall Masta Weather coat Texture Luxol Durocem Premium Exterior Emulsion Washable Distemper Exterior Plastic Paint Texturised Finish Exterior Synthetic Enamel Coment Base Paint -

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AkzoNobel India was previously known as ICI India. Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people. Sales in 2010 were EUR 14.6 billion.Following the acquisition of ICI, the company has restructured in 2 January 2008, and rebranded itself in 25 April of the same year.

AKZONOBEL INDIAS PRODUCTS


Premium Emulsion Velvet Touch Weather Shield Maxilite Dulux Supercoat Dulux Farcocem Premium Exterior Emulsion Washable Distemper Exterior Plastic Paint Texturised Finish Exterior Synthetic Enamel Coment Base Paint -

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Chapter-4

PROJECT BODY

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LITERATURE SURVEY
In a difficult business climate, careful consideration is crucial for all the companies. You need to do more of what works, and less of what doesn't. A Demand Generation strategy is the way you can do that. With globalization which is heightening competition, organizations must continue to develop tangible products and provide services which are based on strategies. With the increasing competition in the present decade demand generation is the major need of all the companies. The demand generation function in most businesses resides as part of the marketing organization. Demand Generation is a holistic approach to marketing and sales cohesiveness within the company. Building awareness is a vital component in the demand generation process. Building awareness often takes a continued effort and involves multiple facets of marketing.

So the study was conducted to generate demand for KNPL products in the market of Jamshedpur which can be a help to the company I am working for. As we know that this survey can reverse the sales of the company. So, this was a little step taken by me in this area in the Kansai Nerolac Paints Ltd.

This particular topic deals with gathering information about a particular topic and what others have thought about the topic and also to get viewpoints of various scholars. When it comes to demand generation through non-channel customers we have to consider some dimensions like consumer behavior, consumer buying behavior, pull and push strategy for various products, consumer perception and motivation and last but not the least that is channel of distribution and various promotional activities.

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DEMAND GENERATION
Demand Generation is a systematic process of creating awareness and interest for your company's products and services through targeted marketing. Demand generation is the lifeblood of your business. Commonly used in business to business, business to government, or longer business to consumer sales cycles, demand generation involves multiple areas of marketing and is really the marriage of marketing programs coupled with a structured sales process. Demand Generation is a holistic approach to marketing and sales cohesiveness within the company. 60% of marketing budget is allocated to demand generation by marketers. Building awareness is a vital component in the demand generation process.

THE basics techniques for marketing and sales in order to generate demand are: Advertising; Enthusiasm and Positive communication; Be alert to the market news; Survey; Sales; Promotion;
Marketing.

Who are the Non-Channel Customers?


Non- channel customers are the non-dealers, builders and architects and various institution who are liable of using the product.

How to generate demand through non-channel customers?


When it comes to demand generation through non-channel customers we have to consider some dimensions like consumer behavior, buying behavior, pull and push strategy for various products, consumer perception and last but not the least that is channel of distribution and various promotional activities. By keeping in mind these factors we can take a step towards generating demand because these factors helps us in understanding our customers, their behavior and their preferences & choices. 56

1. Consumer behavior
Consumer Behavior is a branch which deals with the various stages a consumer goes through before purchasing products or services for his end use. The study of consumer behaviour is the study of how individuals make decisions to spend their available resources (time, money, effort) on consumption related items. It include the study of what they buy, why they buy it when they buy where they buy it, how often they buy it and how often they use it.

Why do you think an individual buys a product ? Need Social Status Gifting Purpose

Why do you think an individual does not buy a product ? No requirement Income/Budget/Financial constraints Taste

When do you think consumers purchase products ? Festive season Birthday Anniversary Marriage or other special occasions

There are infact several factors which influence buying decision of a consumer ranging from psychological, social, economic and so on.

The study of consumer behaviour explains as to: Why and why not a consumer buys a product ? When a consumer buys a product ? How a consumer buys a product ?

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2. Buying Behavior
Buying Behavior is the decision processes and acts of people involved in buying and using products. Need to understand: why consumers make the purchases that they make? what factors influence consumer purchases? the changing factors in our society.

Once a decision is taken to spend money the second problem is to decide what to buy because the resources are limited and needs are multiple. Therefore needs are to be marked in priority terms. During my study I found that how consumers make a decision for buying a product.

Categories that effect the Consumer Buying Decision Process:A consumer, making a purchase decision will be affected by the following three factors: 1. 2. 3. Personal Psychological Social

(1) Person
Unique to a particular person. Demographic Factors, Sex, Race, Age etc. Who in the family is responsible for the decision makin Young people purchase things for different reasons than older people.

(a) Age and Life cycle stage:People buy different goods and services over their lifetime. The eat baby food in the years, matured foods in the growing and mature years, and special diets in the latter years. People's taste in clothes furniture and recreation is also age related. Consumption is also shaped by the stage of the family life cycle. Marketers often choose life cycle groups as their target market.

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Some recent work has identified psychological life cycle stages. Adults experience certain "passages" or transformations as they go through life markers pay close attention to changing life circumstances divorce widowhood remarriage and their effect on consumption behaviour.

(b) Occupation:A person's occupation also influences his or her consumption pattern. A blue collar worker will buy work clothes work shoes, lunch box. A company's president will buy expensive suits, air travel, country club membership and a large sail boat. Marketers try to identify the occupational groups that above average interest in their product and services. A company can even sexualize their computers software companies will design different computers software for brand manager, engineers, lawyers and physicians.

(c) Economic Circumstances Product choice is greatly affected by ones economic circumstances. People's economic circumstances consists or their spendable income, its level stability and time pattern, saving and assets including the percentage that is liquid debts, borrowing power and attitudes towards spending versus saving.

(d) Lifestyle People coming from the same sub-culture, social class and occupation may lead quite different lifestyles. A person's life is the person's pattern of living in the world as expressed in the person's activities, interest and opinions. Lifestyle portrays the "whole person" interacting with his or her environment. Marketers will search for relationship between their product and lifestyle groups. A computer manufacturer may find that most computer buyers are achievement oriented. The marketer may then aim the brand more clearly at the achiever lifestyle.

(e) Personality and Self-concept Each person has a distinct personality that will influence his or her buying behavior. By personality we mean the person's distinguishing psychological characteristics that lead to relatively consistent and ending responses to his or her environment. Personality is usually described in terms of such facts as self confidence, dominance, autonomy difference, sociability, defensiveness and adaptability. 59

(2) Psychological
A person's buying choices are influenced by four major psychological factors

Motivation, Perception, Learning and Beliefs, Attitudes.

(a) Motivation A person has many needs at any given time some needs are biogenic they arise from psychological states of tension such as larger, thirst, discomfort. Other needs are psychogenic ; they arises from needs are psychogenic they arises from psychological states of tension such as the need for recognition, esteem, or belonging. A need becomes motive when it is aroused to a sufficient level of intensity. A motive is need that is sufficiently pressing to drive the person to act.

(b) Perception Perception is the process by which an individual organization select interprets information, inputs to create a meaningful picture of the world. Perception depends not only on the physical stumuli but also on the stimuli relation to the surrounding field and on condition within the individual.

The key word is the definition of perception of individual. One person might perceive a fast talking sales person as aggressive and in sincere, another as intelligent and helpful. People can emerged with different perception of the some object because of three perceptual process, selective attention, selective distortion and selective retention.

(c) Learning Learning involves changes in an individual's behavior arising from experience. Most human behavior learned learning theorists believe that learning is produced through the interplay of desirous, stimuli, cues responses and reinforcement.

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(d) Beliefs and Attitudes Through doing and learning people acquired beliefs and attitudes. These turns influence buying behavior. A belief is a descriptive thoughts that a person holds about something.

Believes may be based on knowledge, opinion or faith. They may or may not carry emotional charges, of course manufacturer are very interested in the beliefs. People carry in their heads about their products and services.

An attitude is a persons enduring favourable or unfavourale evaluation emotional feelings and action tendencies towards some object or ideas.

People have attitude towards almost everything politics clothes music, food. Attitudes put them into a frame of mind of disliking and object moving towards or away from it. Attitudes lead people to behave in fairly consistent way towards similar object. People do not have to interpret and every object in a fresh way, because attitudes economize on energy and thought, they are very difficult to change. A person attitude settle into a consistent pattern to change a single attitude may require major adjustment in other attitudes.

(3) Social
A consumer behavior is also influenced by such social factors as reference group, family, role & status.

(a) Reference Group Many groups influence a person's behavior. A person's behavior group that have a direct or indirect influence on the person's attitudes and behavior. Groups having a direct influence of a person are called membership groups. These are groups to which the person belongs and interacts. Some are primary groups such as family, friends neighbours with which the person interacts fairly continuously. Primary groups tend to be informal. A person also belongs to secondary groups such as religious, professional and trade union groups which tend to be more formal and require less continuous interaction.

People are also influenced by groups in which they are not members. Groups to which a person would like to belong are called inspirational groups. 61

(b) Family Most consumers belong to a family group. They influence the pattern of consumption. Buying habits creates by family influences. The members of the family play different roles as for deciding, purchaser and user. The housewife may act as a mediator of products that satisfy wants and desires of the children. Many question arise in the whole family but a marketer has to think that who is the main purchaser of family.

In the case of expensive products services, husband and wives engage in more joint decision making. The marketers need to determine which member normally has the greater influence in choosing various products often it is a matter of who has more power or expertise.

(c)Roles and Status A person participates in many groups :- family, clubs and organization. The person's position in each group can be defined in term's of roles and status. A role consists of the activities that a person is expected to perform. Each role carries a status. A supreme court justice has more status than a sales manager and a sales manager has more status than an office clerk. People choose products that communicate their role and status in society. Thus company drive Mercedes, wear expensive suits and drink chives regal scotch. Marketers are aware of the status symbol potential of products and brands.

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3. Customer perception
Consumer perception theory is any attempt to understand how a consumers perception of a product or service influences their behavior. Those who study consumer perception try to understand why consumers make the decisions they do, and how to influence these decisions. Usually, consumer perception theory is used by marketers when designing a campaign for a product or brand. However, some people study consumer perception in order to understand psychology in a much more general sense.

Perception In general psychological terms, perception is our ability to make some kind of sense

of reality from the external sensory stimuli to which we are exposed. Several factors can influence our perception, causing it to change in certain ways. For example, repeated exposure to one kind of stimuli can either make us oversensitive or desensitized to it. Additionally, the amount of attention we focus on something can cause a change in our perception of it.

Branding A brand, or a brand name, is the attempt to impose some kind of identifying feature

on a product or service so that it is easily recognized by the general public. A brand is oftentimes associated with an image, a set of expectations or recognizable logo. The goal of a brand is to set a product or service apart from others of its kind, and influence the consumers to choose the product over similar products simply because of its associations.

Positioning, Repositioning or Depositioning Positioning is the process whereby marketers attempt to build a brand. Marketers

actively try to create an image which is both recognizable and appeals to a certain group of people or target market. Repositioning is the process of altering this image, usually in order to influence a larger target market and thereby influence the behavior of a greater number of consumers. Depositioning is the practice of trying to devalue alternative, competing brands in the perceptions of a shared target market.

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Value and Quality Value refers to the perceptions a consumer has of a product's benefits when weighed

against its cost. Value can be measured both qualitatively--the emotional or psychological pleasure a consumer derives from a product or service--and quantitatively, in terms of the actual financial gain it wins them. Quality can be related to value, and may be taken into account when measuring the value of a product or service. More formally, it refers to the way in which a product or service relates to its competitors, or else conforms to a set of measurable standards.

4. Push and pull marketing strategies


Promotional strategies to get your product or service to market can be roughly divided into two separate camps:

1. Push strategy A push promotional strategy involves taking the product directly to the customer via whatever means to ensure the customer is aware of your brand at the point of purchase. "Taking the product to the customer" Examples of push tactics Trade show promotions to encourage retailer demand Direct selling to customers in showrooms or face to face Negotiation with retailers to stock your product Efficient supply chain allowing retailers an efficient supply Packaging design to encourage purchase Point of sale displays

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2. Pull strategy A pull strategy involves motivating customers to seek out your brand in an active process. "Getting the customer to come to you" Examples of pull tactics Advertising and mass media promotion Word of mouth referrals Customer relationship management Sales promotions and discounts

The origin of these two terms refers to the supply chain and how the demand for the product is generated.

Push strategy explained The term 'push strategy' describes the work a manufacturer of a product needs to perform to get the product to the customer. This may involve setting up distribution channels and persuading middle men and retailers to stock your product. The push technique can work particularly well for lower value items such as fast moving consumer goods (FMCGs), when customers are standing at the shelf ready to drop an item into their baskets and are ready to make their decision on the spot. This term now broadly encompasses most direct promotional techniques such as encouraging retailers to stock your product, designing point of sale materials or even selling face to face. New businesses often adopt a push strategy for their products in order to generate exposure and a retail channel. Once your brand has been established, this can be integrated with a pull strategy. Another meaning of the push strategy in marketing can be found in the communication between seller and buyer. Depending on the medium used, the communication can be either interactive or non-interactive. For example, if the seller makes his promotion by television or radio, it's not possible for the buyer to interact with. On the other hand, if the communication is made by phone or internet, the buyer has possibilities to interact with the seller. In the first case information is just "pushed" toward the buyer, while in the second case it is possible for the buyer to demand the needed information according to their requirements. Applied to that portion of the supply chain where demand uncertainty is relatively small Production and distribution decisions are based on long term forecasts Based on past orders received from retailer's warehouse (may lead to Bullwhip effect) Inability to meet changing demand patterns 65

Large and variable production batches Unacceptable service levels Excessive inventories due to the need for large safety stocks Less expenditure on advertising than pull strategy.

Pull strategy explained 'Pull strategy' refers to the customer actively seeking out your product and retailers placing orders for stock due to direct consumer demand. A pull strategy requires a highly visible brand which can be developed through mass media advertising or similar tactics. If customers want a product, the retailers will stock it - supply and demand in its purest form and this is the basis of a pull strategy. Create the demand, and the supply channels will almost look after themselves. In a marketing "pull" system, the consumer requests the product and "pulls" it through the delivery channel. An example of this is the car manufacturing company Ford Australia. Ford Australia only produces cars when they have been ordered by the customers. Applied to that portion of the supply chain where demand uncertainty is high Production and distribution are demand driven No inventory, response to specific orders Point of sale (POS) data comes in handy when shared with supply chain partners Decrease in lead time Difficult to implement

Final words A successful strategy will usually have elements of both the push and pull promotional methods. If you are starting a new business and intend to sell a product through retailers you'll almost certainly need to persuade outlets to purchase and stock your product. You'll also need to raise brand awareness and start building valuable word of mouth referrals. If you have designed a product around the customer and have considered all elements of the marketing mix, both of these aspects should be achievable. The prior push strategy would feature a marketing campaign in total control of the message being sent out. The newer pull strategy has been viewed as a shift in power from advertisers to consumers, and so is bad news for marketers. 66

With the increase of social networking platforms and users, social networking has become a major and focal part to music marketing adopting the pull marketing strategy. Pull marketing shifts the emphasis and attention onto the customer, trying to market in the correct places by knowing who the target audience is.

A Good Push-Pull Marketing Strategy A good marketing strategy that incorporates both push marketing and pull marketing typically includes the following 10 strategies: 1. Your website. The number one pull marketing tool that you have is your website. This is where you have the ability to really show off what youre all about. You can highlight certain products to create a demand for them among your customers. 2. Your blog. The blog should extend the purpose of the website. It should provide useful information in a way that encourages readers to build loyalty for your business. 3. The use of social media. Proper social media development isnt about aggressively advertising your product or business. Its about creating a buzz around your product and getting others talking about. Targeted social media use as well as general use of social media is a great combination push pull strategy. 4. Establish active forums. Having forums on your site is a terrific way to get people talking about your products, your service and your brand. You can use third party forums to start this conversation as well but launching and growing your own forums is more effective for marketing. 5. Email newsletters. This is a direct way to advertise what youre doing and what your business is proud of to customers that have already shown an interest in your work.

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6. Press releases. This is another great way to directly advertise your business. Use online press releases (also known as social media press releases) to include useful links to your products in your press releases. 7. Sales announcements. However you choose to present them, sales announcements are always an enticing marketing option that goes direct to the customer to create a demand for your product. 8. Paid advertising. Many online businesses use some form of paid advertising to raise awareness of their brand. Paid advertising is a smart push marketing strategy. 9. Collaborate with others in your industry. If you can get quoted as an expert in your industry by credible bloggers and journalists then you can raise awareness of your online business. If you guest post on other sites and syndicate your content in your field then you grow your own credibility in the field. Collaborating with others in the field that way is a great marketing tool that can be used to pull others towards your brand. 10. Surveys and polls. Pull marketing is all about learning what your customers want and delivering what they want to them. The use of surveys is a great way to get that information. This is a tool you can use to enhance your online marketing strategy.

5. Channels of distribution The Importance of Distribution:


Most producers use intermediaries to bring their products to market. They try to develop a distribution channel (marketing channel) to do this. A distribution channel is a set of interdependent organizations that help make a product available for use or consumption by the consumer or business user. Channel intermediaries are firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user. A companys channel decisions directly affect every other marketing decision. Place decisions, for example, affect pricing. Marketers that distribute products through mass merchandisers such as Wal-Mart will have different pricing objectives and strategies than will those that sell to specialty stores. Distribution decisions can sometimes give a product a distinct position in the market. The choice of retailers and other intermediaries is strongly tied 68

to the product itself. Manufacturers select mass merchandisers to sell mid-price-range products while they distribute top-of-the-line products through high-end department and specialty stores. The firms sales force and communications decisions depend on how much persuasion, training, motivation, and support its channel partners need.

Types of Distribution Channels: The first step in selecting a marketing channel is determining which type of channel will best meet both the sellers objectives and the distribution needs of customers. Channel Length Distribution channels can be described as being either short or long. A short channel involves few intermediaries. A long channel, on the other hand, involves many intermediaries working in succession to move goods from producers to consumers. In general, business products tend to move through shorter channels than consumer products due to geographical concentrations and comparatively few business purchases. Service firms market primarily through short channels because they sell intangible products and need to maintain personal relationships within their channels. Not-for-profit institutions also tend to work with short, simple, and direct channels. Consumer Channels The simplest and shortest distribution channel is a direct channel. A direct channel carries goods directly from a producer to the business purchaser or consumer. One of the newest means of selling in a direct channel is the Internet. A direct channel may allow the producer to serve its customers better and at a lower price than is possible using a retailer. Sometimes a direct channel is the only way to sell the product because using channel intermediaries may increase the price above what consumers are willing to pay. Another reason to use a direct channel is control. Many producers, however, choose to use indirect channels to reach consumers. Customers are familiar with certain retailers or other intermediaries and habitually turn to them when looking for what they need. Intermediaries also help producers fulfill the channel functions previously cited. By creating utility and transaction efficiencies, channel members make producers lives easier and enhance their ability to reach customers.

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Business-to-Business Channels B2B distribution channels facilitate the flow of goods from a producer to an organizational customer. Generally, B2B channels parallel consumer channels in that they may be direct or indirect. The simplest indirect channel in industrial markets occurs when the single intermediarya merchant wholesaler referred to as an industrial distributor rather than a retailerbuys products from a manufacturer and sells them to business customers. Direct channels are more common to business-to-business markets because B2B marketing often means selling high-dollar, high-profit items to a market made up of only a few customers. In such markets, it pays for a company to develop its own sales force and sell directly to customers at a lower cost than if it used intermediaries. Channels for Services Because services are intangible, there is no need to worry about storage, transportation, and the other functions of physical distribution. In most cases, the service travels directly from the producer to the customer. Some services, however, do need an intermediary, often called an agent, who helps the parties complete the transaction. Examples include insurance agents, stockbrokers, and travel agents. To create a good distribution program, focus on the needs of your end-users. If users need personalized service, you can utilize a local dealer network or reseller program to provide that service. If your users prefer to buy online, you can create an e-commerce website and fulfillment system and sell direct; you can also sell to another online retailer or distributor that can offer your product on their own sites. You can build your own specialized sales team to prospect and close deals directly with customers.

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Functions of Distribution Channels


Distribution channels perform a number of functions that make possible the flow of goods from the producer to the customer. These functions must be handled by someone in the channel. Though the type of organization that performs the different functions can vary from channel to channel, the functions themselves cannot be eliminated. Channels provide time, place, and ownership utility. They make products available when, where, and in the sizes and quantities that customers want. Distribution channels provide a number of logistics or physical distribution functions that increase the efficiency of the flow of goods from producer to customer. Distribution channels create efficiencies by reducing the number of transactions necessary for goods to flow from many different manufacturers to large numbers of customers. This occurs in two ways. The first is called breaking bulk. Wholesalers and retailers purchase large quantities of goods from manufacturers but sell only one or a few at a time to many different customers. Second, channel intermediaries reduce the number of transactions by creating assortmentsproviding a variety of products in one locationso that customers can conveniently buy many different items from one seller at one time. Channels are efficient. The transportation and storage of goods is another type of physical distribution function. Retailers and other channel members move the goods from the production site to other locations where they are held until they are wanted by customers. Channel intermediaries also perform a number of facilitating functions, functions that make the purchase process easier for customers and manufacturers. Intermediaries often provide customer services such as offering credit to buyers and accepting customer returns. Customer services are oftentimes more important in B2B markets in which customers purchase larger quantities of higher-priced products.

Some wholesalers and retailers assist the manufacturer by providing repair and maintenance service for products they handle. Channel members also perform a risk-taking function. If a retailer buys a product from a manufacturer and it doesnt sell, it is stuck with the item and will lose money. Last, channel members perform a variety of communication and transaction functions. Wholesalers buy products to make them available for retailers and sell products to other channel members. Retailers handle transactions with final consumers. Channel members can provide two-way communication for manufacturers. They may supply the sales force, advertising, and other marketing communications necessary to inform consumers and persuade them to buy. And the channel members can be invaluable sources of information on consumer complaints, changing tastes, and new competitors in the market. 71

The Internet in the Distribution Channel


By using the Internet, even small firms with limited resources can enjoy some of the same competitive advantages as their largest competitors in making their products available to customers internationally at low cost. E-commerce can result in radical changes in distribution strategies. Today most goods are mass-produced, and in most cases end users do not obtain products directly from manufacturers. With the Internet, however, the need for intermediaries and much of what has been assumed about the need and benefits of channels will change. In the future, channel intermediaries that physically handle the product may become largely obsolete. Many traditional intermediaries are already being eliminated as companies question the value added by layers in the distribution channel. This removal of intermediaries is termed disintermediation, the elimination of some layers of the distribution channel in order to cut costs and improve the efficiency of the channel.

6.Promotion Strategies
A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organisations promotional mix strategy can consist of: Types of promotion Explanation

Advertising: Any non personal paid form of communication using any form of mass media. Public relations Involves developing positive relationships with the organisation media public. The art of good public relations is not only to obtain favorable publicity within the media, but it is also involves being able to handle successfully negative attention. Commonly used to obtain an increase in sales short term. Could involve using money off coupons or special offers.

Sales promotion:

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Personal selling:

Selling a product service one to one Is the sending of publicity material to a named person within an organisation Direct mail allows an organisation to use their resources more effectively by

Direct Mail allowing them to send publicity material to a named person within their target segment. By personalising advertising, response rates increase thus increasing the chance of improving sales. Listed below are links to organisation who's business involves direct mail. Internet Marketing Promoting and selling your services online using various forms of online marketing techniques such as banner advertisments, videos or social media. Where you pay an organisation to use your brand or logo. This organisation usually has a high profile so that you know that your brand will be seen by a large Sponsorship audience. Most common use of sponsorship is with sporting events. The 2012 Olympics being held in London is being sponsored by a number of organisations such as Mcdonalds and Coca-Cola as the event will attract a worldwide audience that will run into hundreds of millions.

Promotional Marketing is a business marketing strategy designed to stimulate a customer to take action towards a buying decision. Promotional marketing is a technique that includes various incentives to buy such as: Coupons: Coupons still work and provide an affordable marketing strategy for small business Sampling: Do free samples work. Contests: We all enjoy winning something for free. Contests offer an attractive marketing vehicle for small business to acquire new clients and create awareness. Promotional Marketing can also be defined as- An activity designed to boost the sales of a product or service. It may include an advertising campaign, increased PR activity, a freesample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, doorto-door calling, telemarketing, personal letters on other methods.

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Types of promotional activities


Product and service promotion is the most common form of marketing. Promotional activities can include: Advertising - you can advertise your product, service or brand in newspapers, radio, television, magazines, outdoor signage and website. Personal selling or telemarketing - effective personal selling relies on good interpersonal and communication skills, excellent product and service knowledge and the ability to sell product benefits to prospective customers.

Publicity - created by sending media releases to print and broadcasting media, giving interviews to the media and from word-of-mouth. Short-term sales promotions - market your product or service using coupons, competitions and contests. Direct marketing - involves sending letters, emails, pamphlets and brochures to individual target clients, often followed by personal selling or telemarketing.

You can use any combination of these methods to target your customers. The right marketing mix will help you satisfy your customers' needs, increase sales, improve your results and increase your ability to reach multiple customers within your target market.

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Five Strategies That Work


Here are five strategies that have been shown to keep brands at the very top level of a consumers mind:

1. Connect on an emotional level- People make decisions about products the same way they make decisions about other peoplefirst emotionally, then logically. In most cases, their initial attachment is based largely on emotion. It is only at a later stage that their decision is rationalized. So how can companies capitalize on this instinct? Easy. Create a strong emotional bond between their brand and their consumer. There are many ways to do this. One of the most common is to infuse the brand with a healthy dose of comfort and familiarity. 2. Keep the brand visible- The most direct way to make something stick in peoples minds is to keep them looking at it. This can be done in all sorts of ways. A relatively expensive way is a large-scale advertising campaign. A much more cost-conscious way is to conduct a smart program of corporate giveaways. Branding giveaway items with the companys name, logo, or slogan not only brings instant visibility but it also becomes the gift that keeps on giving.

3. Distinguish yourself- Everyone aspires to be cool, to be first, to be a trend-setter. Smart marketers know this and play to peoples aspirations. Products that can maintain a trend setting image will always have a leg up on the competition. Brands that are able to distinguish themselves in a similar fashion will always have customers because there is never a scarcity of people who want to be the coolest guy on their block.

4. Make people feel they are already using your product-We are all creatures of habit. If advertisers are somehow able to plant a mental image of their product being used by the customer, then they are already halfway to making the sale.

5. Never neglect the core criteria- The smartest advertising campaigns in the world become useless when companies take their eyes off the ball and neglect the thing that is most important: core competence.

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Chapter-5

RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. The section includes the overall research design, the sampling procedure, the data collection method, the field work and analysis and procedure.

Research design : For this research project descriptive method is used. Data collection method : Data collected for the research can be classified as primary data and secondary data.

RESEARCH DESIGN-

A framework for conducting the marketing research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve marketing research problems.

The project is mainly Descriptive.

Descriptive It describes market characteristics or functions. It is pre-planned and structured design. It mainly focuses on the data and characteristics about the population or phenomenon being studied. Descriptive research is marked by the prior formulation of specific hypotheses. The several methods are secondary data, surveys, panels and observational. Descriptive research answers the questions who, what, where, when and how.

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SAMPLING UNITA Sampling Unit is an element, or a unit containing the element, that is available for selection at some stage of the sampling process. Before selection for survey a sampling unit was taken. The sampling unit was the Hospitality sector( hotels & hospitals) and Housing Societies which we had visited. The informations about these Sectors were not given from the company database so we had selected randomly.

SAMPLE SIZEIt is the total size of the units that are used for the analysis of data. The sample size determined statistically represents the final or net sample size that must be achieved in order to ensure that the parameters are estimated with the desired degree of precision and the given level of confidence. In surveys, that represents the number of interviews that must be completed. In order to achieve this final sample size, a much greater number of potential respondents have to be contacted. The initial sample size has to be much larger because typically the incidence rates and completion rates are less than 100%. We were to cover 90 units in 20 days, but due to time constraints we could only visit 40 units and collected necessary datas from them. So my sample size is 40.

FIELD WORK

Marketing research data are rarely collected by the persons who design the research. Researchers have two major options for collecting their data. They can develop their own organization or they can contract with a field work agency. In either case, data collection involves the use of some kind of field force. The field force operates in Personal Interviews, observations, office telephones and internet surveys. The field workers who collect the data typically have little research background or training. The main work of the project was to generate demand for the Nerolac products from the hotels, hospitals and housing society members by explaining them the features, characteristics and benefits that Nerolac products was providing. It was an individual application (survey) carried on in the market. 78

The hotels, hospitals and housing societies representatives were interviewed individually. Date and time was allotted to make appointment with them. We had visited these sectors directly to make these appointments. The universe from where samples are taken comprises of Hospitality sector and Housing Societies. The survey was done in the Jamshedpur region covering the Hotels, Hospitals and Housing Societies in areas such as: DIMNA ROAD OLD PURULIA ROAD MANGO SAKCHI BARADWARI BARIDIH BISTUPUR ADITYAPUR TAMULIA NH-33 HIGHWAY etc

The problem that arises during the survey with the samples was that many of the hotels, hospital and housing societies cannot be visited and therefore the result is only on the visited samples.

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DATA COLLECTION METHOD-

The task of data collection begins after a research problem has been defined and research design/plan chalked out. While deciding about the method of data collection to be used for the study, the researcher should keep in mind two types of data i.e. Primary and Secondary data.

Primary Data The primary data are those which are collected afresh and for the first time, and thus happen to be original in character. There are several types of primary data such as Questionnaire, individual survey, interview method, phone calls, panel group, focus group, electronic media, observations etc. From these several primary data we have used individual survey, interview method and phone calls as these were required for my collection of data. To study the market position individual survey is the appropriate method to collect the primary data. Information from the hotels, hospitals and housing societys representatives were collected only by meeting them and asking the questions through the help of questionnaires. Secondary Data Secondary data means data that are already available i.e., they refer to the data which have already been collected and analyzed by someone else. When the researcher utilizes secondary data, then he has to look into various sources from where he can obtain them. There are several types of secondary data available such as newspapers, leaflets, several books, company database, several websites etc. From this secondary data we have taken help of company database and some websites to get informations. Summary: To make this survey several hotels, hospitals and housing societies were visited and necessary datas were collected through the help of data instrument. Also the places where these sectors are visited and the limitations faced were discussed.

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Chapter-6

DATA ANALYSIS

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Graphical Representation and Analysis:


The selection of the analysis of the data is based on the research objectives. The datas are collected with the help of Personal Interviews and by filling the Questionnaire. Data analysis is not an end in itself. Its purpose is to produce information that will help address the problem in hand.

ON CONSUMER BEHAVIOR 1. You are using which Paint?


BRAND KNPL Asian paints Berger Akzonobel India (ICI) Others % of RESPONDANTS 15% 42% 15% 20% 8%

Paint in use
Kansai Nerolac Paints Asian Paints Berger Paints Akzonobel India (ICI) Others

8% 20%

15%

15%

42%

Chart No. 1.1 Sample Size: 40 Interpretation: In the Pie-chart it shows that majority of the non-channel customers use Asian Paints (42%) because it is easily available in every counter and its quality is also very good and the rest brands are KNPL (15%), Berger (15%), Akzonobel (20%), & Others (8%). 82

2. How do you rate these Paints?


BRAND RANK 1st rank- Asian Paints 2nd rank- KNPL 3rd rank- Akzonobel India 4th rank- Berger Paints % of RESPONDANTS 22 16 14 19

25

20

15

RANK 1 RANK 2

10

RANK 3 RANK 4

0 KNPL Asian Paints Akzonobel India (ICI) Berger Paints

Chart No. 1.2 Sample Size: 40

Interpretation: Out of 40- 22 people have given Asian Paints 1st rank , 16 people have given KNPL 2nd rank, 14 people have given Akzonobel India 3rd rank, 19 people have given Berger Paints 4th rank.

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3. While selecting Interior Paint what do you look for?


PROPERTY Gloss Durability Cost Coverage Warranty Finish Smoothness Safety % of RESPONDANTS 22% 45% 10% 5% 2% 8% 5% 1%

Property of Interior Paint


Finish Warranty 8% 2% Coverage 5% Cost 10% Durability 45% Smoothness Safety 3% 5% Gloss 22%

Chart No. 1.3 Sample Size: 40 Interpretation: From the above pie chart it is clear that majority of the population believes that the interior paint should be Durable (45%) and have Glossy finish (22%) in it and the rest parameters takes the back seat with Cost (10%); Finish (8%); Smoothness (5%); Safety (3%) & Warranty(2%). 84

4. While selecting Exterior Paint what do you look for?


PROPERTY Gloss Durability Cost Coverage Warranty Finish Smoothness Safety % of RESPONDANTS 5% 45% 15% 0% 15% 7% 5% 8%

Property of Exterior Paint


Smoothness Finish 5% 7% Gloss 5% Safety 8%

Warranty 15% Cost 15% Coverage 0%

Durability 45%

Chart No. 1.4 Sample Size: 40 Interpretation: Durability (45%) is the most important property which people look for in exterior paint. Cost (15%) and Warranty (15%) is the second thing which they take into consideration before buying an exterior paint. 85

5. How is the Quality of your Paint?

QUALITY of PAINT Excellent Good Satisfactory Poor

% of RESPONDANTS 25% 67% 8% 0%

Quality of the Paint


Satisfactory 8% Poor 0% Excellent 25%

Good 67%

Chart No. 1.5 Sample Size: 40 Interpretation: 67% of the respondents said that the paint they are using is of Good quality; 25% of the respondents said the quality of their paint is Excellent; 8% of the respondents paint quality is Satisfactory & none of the respondents paint quality is poor.

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6. How often you Upgrade your Paint?

UPGRADE of PAINT Yearly 1-2 years 2-3 years 3-4 years Others

% of RESPONDANTS 12% 17% 43% 23% 5%

Upgradation of Paint
Others 5% Yearly 12% 3-4 yrs 23%

1-2 yrs 17%

2-3 yrs 43%

Chart No. 1.6 Sample Size: 40 Interpretation: Up-gradation of paint is very necessary thing to do when the paint becomes old and it starts peeling off. So 43% of the respondents upgrade their paint in 2-3 years; 23% upgrade their paint in 3-4 years17% upgrade their paint in 1-2 years. Only 12% upgrade their paint Yearly.

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7. Who is the Decision maker for you while selecting Paint?

DECISION MAKER Manager Painter Contractor Dealers Others

RESPONDANTS 23 6 5 5 2

Decision Maker
25 20 15 10 5 0 Manager Painter Contractor Decision Maker

Dealers

Others

Chart No. 1.7 Sample Size: 40 Interpretation: Out of 40 respondents 23 have said that their Manager is the one who decides which paint is to be used and which is better.

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8. Through what Mass media do you get knowledge of Paints?

MASS-MEDIA TV Magazine Newspaper Hoarding Dealers Others

% of RESPONDANTS 70% 7% 15% 2% 3% 3%

Mass Media
TV Magazine Newspaper 3% 2% 3% Hoarding Dealers Others

15%

7% 70%

Chart No. 1.8 Sample Size: 40 Interpretation: As TV is the most important and every source of information so if a company wants to increase its sales and wants to earn profit then it should give more and more advertisements on TV channels because 70% of the respondents get knowledge about the paint through TV.

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9. If given chance would you Switch over to other brand?

CHANCE of SWTCHING OVER Yes No

% of RESPONDANTS

65% 35%

Chance of Switching over Other brand


No 35%

Yes 65%

Chart No. 1.9 Sample Size: 40 Interpretation: If given chance 65% of the respondents will switch over to other brands but 35% of the respondents are satisfied with their paint so they dont want to switch over to other brand.

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10. Are you aware that KNPL products are Lead free and environment friendly?

AWARENESS that KNPL products are Lead free & Environment friendly Yes No

% of RESPONDANTS

67% 35%

Awareness that KNPL products are Lead free and Environment friendly

No 33%

Yes 67%

Chart No. 1.10 Sample Size: 40 Interpretation: In the pie chart we can see that most of the peoples are aware that the Nerolac products are Lead free and Environment friendly and they know that if they will use KNPL products then it will not cause any harm to them and also to the environment but still 33% of the people are unaware of this fact, so little awareness should be spread between the people regarding this.

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11. Which brand offers maximum advertisements/sales promotional support?

BRAND KNPL Asian paints Berger Akzonobel India (ICI) Others

% of RESPONDANTS 30% 62% 5% 3% 0%

Akzonobel India (ICI) 3%

Maximum Advertisements
Others 0%

Berger Paints 5%

KNPL 30%

Asian Paints 62%

Chart No. 1.11 Sample Size: 40

Interpretation: From the above pie chart maximum of the respondents i.e., 62%bhave said that Asian Paints offers maximum advertisements. So in the advertisement sector Asian Paints is the market leader.

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12. Your interest (in brand which you have heard but never used).

BRAND KNPL Asian paints Berger Akzonobel India (ICI)

% of RESPONDANTS

In future want to use


KNPL Asian Paints Berger Paints Akzonobel India (ICI)

19%

3%

14% 64%

Chart No. 1.12 Sample Size: 40

Interpretation: In the Pie-chart it shows that 64% of the people want to use Nerolac paint in future. But rest of the 14% want to use Asian paints; 19% wants to use Berger paints and 3% wants to use Akzonobel India. The reasons for this may be the products of Nerolac donot contain any harmful chemical and they are environment friendly, etc.

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13. Does celebrity endorsement affect your buying behavior?


Celebrity endorsement affects % of RESPONDANTS buying behavior Yes No 30% 70%

Celebrity endorsemant affects buying behavior


Yes 30%

No 70%

Chart No. 1.13 Sample Size: 40 Interpretation: In the Pie-chart it shows that majority of the people i.e., 70% have said that celebrity endorsement doesnt affect their buying behavior but rest 30% have said that yes celebrity endorsement affects their buying behavior.

Summary: From the above Bar-graphs and pie-charts we can find out several informations like how many people prefer to use Nerolac paints in future, what the people feel about their paint quality, whether they want to switch over to other brands or not & which paint company offers the maximum advertisements, etc. We can draw a clear picture of the market condition and situation exists for Paint Industry. 94

Chapter-7

RECOMMENDATIONS AND LIMITATIONS

95

RECOMMENDATIONS

Every study should have some recommendations. Without this the study cannot be fulfilled. So, like every study our studies also have some recommendation like.

1. First and foremost the brand awareness should be improved so as to reach large pool of non-channel customers as there are still a large no. of customers who are unaware of the benefits provided y KANSAI NEROLAC PAINTS.

2. The facilities and benefits provided in Kansai Nerolac should be increased to attract more non-channel customers.

3. Since Brand cast media found out to be the most important source of information therefore Nerolac should concentrate its promotional activities towards television advertisement.

4. Company needs to create a channel so that the non-channel customers can contact the company and visa versa for feedback of the non-channel customers. For this the company needs to contact their non-channel customers very often to know whether they are satisfied with the facilities provided or not.

5. Most of the non-channel customers are not aware of the premium quality product like Impression Eco clean, economic product like Little Master and high end products like Metallic finishes. These products needs a good promotion because when told about these products they were interested.

6. Few below the line activities can be done such as: Painting Competition. Gift Coupons. Bulk Sms or Mails. Organising painting competition at schools and colleges, and providing colors for free. 7. Company should enter into ruler areas.

8. Lastly, the company should promote the advertisements. 96

LIMITATIONS
In the research conducted all the due efforts are made with full effort and diligence but still there might be some error due to the following reasons:

Human behaviour is too complex to determine. So the information disclosed by them may not be very accurate.

This research is conducted is on a very small sample size (40), so it might be possible that the information given by such respondents may not match with the reply of the whole non-channel customers of Jamshedpur.

There was a time constraint while conducting the report.

On few occasion the hotels & hospitals were closed or the concerned persons were not present or they do not want to answer the questions.

It might be possible that the answers given by the respondents are full of biasness.

As the questionnaire is in English language, some respondents found it difficult to understand it, even many refused.

The data collected was collected by personal visits to the hotels, hospital and housing societies and direct interaction with their concerned representatives and the authenticity of the data collected depends on the information provided by them.

All the information given in this project is based on the survey which we conducted in the geographical area within the time period of two months.

97

Chapter-8

CONCLUSION

98

CONCLUSION
As it has been discussed, Today Paint Industry has a very high growth potential in .market. Postliberalization, the industry has been growing at a rapid pace in terms of its assests under management. This is a market, which shows such a boom. Before introducing a new product, there is a need to know the growing market opportunities, competitor's performance on that product and market demand. All this information is needed to formulate market strategies and procure raw materials. Consumer is the basic foundation of every business. When consumer see, thinks, prefers and buys is of great importance to marketers to fine tune their marketing offers and achieve high level of consumer acceptance and satisfaction. Customer satisfaction tracking will help to minimize the weakness and take corrective steps to achieve the desired performance. It is the pillar of corporate success. It is the gospel of today's business. So, to generate demand i.e., to make more and more no. of people use our product the first thing to do is to meet their expectation level. More awareness is to be created regarding the products and the company should promote advertisements. The project analysis of the Jamshedpurs non-channel customers is shown very clear picture that today Asian Paint is the market leader of the Jamshedpur area for better market credibility in comparision to other paint company. So, if Nerolac Paints wants to show their strong presence in Jamshedpur. They should have better supply of goods, strong supply chain, should promote advertisements, and it should make new dealer openings. These are some of the factors which will help Nerolac Paints in becoming the leader of the Jamshedpur paint market.

To conclude we must say that, we have learned a lot about the paint market & the market condition existing.

We have got a good experience visiting several hotels, hospitals and housing societies and speaking with the concerned representatives, present in there. It was a very bright and good learning process which would be helpful for me in my future.

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Chapter-9

BIBLIOGRAPHY

100

BIBLIOGRAPHY

Book
1. Marketing Management - PHILIP KOTLER-(13th Eddition) 2. Business Research Methods William G. Zikmund

Website
1. www.google.com 2. www.nerolac com 3. www.wikipedia.com

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Chapter-10

ANNEXURE

102

ANNEXURE
QUESTIONNAIRE:-

Nerolac Paints Demand Generation Questionnaire


Developed By Prof. Bhakta Bandhu Dash Asian School of Business Management, Bhubaneswar & Miss Davinder Kaur 1st Year Student Asian School of Business Management, Bhubaneswar. Dear Respondent,
Please take a few minutes to complete this survey. Your specific answers will be completely anonymous, but your views, in combination with those of others, are extremely important.

PART - A
1. Name 2. Address :.. .... .. 3.Mobile no 4.Category: Educational institution Hotels Hospitals Financial Institution Builders Architect Religious institution Society 103

PART - B
Please fill out the following information in an honest, accurate way.

(1.)What does paint means to you? ________________________________________________________________ _________

(2.) You are using which paint and why? (a) KNP (b) AP (c) BERGER (d) ICI (Akzonobel) (e) OTHERS .. (3.) How do you rate these paints?(1-4) (a)KNP (b)AP (c)ICI (d)BERGER (4.) While selecting interior paint what do you look for? (1-8) (a) Gloss (f) Finish (b) Durability (g) Smoothness (c) Cost (h) Safety (d) Coverage (e)Warranty

(5.) While selecting exterior paint what do you look for? (1-8) (a) Gloss (b) Durability (e) Warranty (f) Finish (c) Cost (d) Coverage (g) Smoothness (h) Safety

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(6.) How is the quality of your paint? (a)Excellent (b) Good (c) Satisfactory (d) Poor

(7.) How often do you upgrade your paint? (a) YEARLY (b) 1-2 (c) 2-3 (d) 3-4 (e) OTHERS

(8.) Who is the decision maker for you while selecting paint? (a) Manager (b) Painter (c) Contractor (d) Dealers (e) Others (9.) Through what mass media do you get knowledge of paints? (a) T.V (b) MAGAZINE (c) NEWSPAPER (d) HOARDING (e) DEALERS (f)OTHERS (10.) If given a chance would you switch over to other brand? (a)YES
105

(b) NO

(11.) Are you aware that KNP products are LEAD free and environment friendly? (a)YES (b) NO

(12.) Which brand offers maximum advertisement/sales promotional support? (a) Asain paints ____ (d) Akzonobel India ____ (b) Nerolac ____ (e) Others ___ (c) Berger ____

(13.) Your interest (in brand which you have heard but never used).
(a) (b) (c) (d)

(i.) What do you want in your paint?


....................................................................................................................................... .......................................................................................................................................

(ii.) When you make purchase what factors you take into consideration?
............................................................................................................................................. .............................................................................................................................................

(iii.) What type of marketing support you want from the particular brand?
.............................................................................................................................................. ................................................................................................................................................

(14.) Does celebrity endorsement affect your buying behavior? Yes No


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PART - C

1. Please read the statement carefully and put tick mark in the appropriate box for the respective statement. Be honest in responding to each of the statement. The statements will be kept confidential and will be used for research purposes. Your valuable time and effort in filling this questionnaire are highly appreciated.

Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13

Statements

1 Strongly Disagree

2 Disagree Somewhat

3 In between

4 Agree

5 Strongly Agree

I found Nerolac Paints is innovative in terms of its technology and usage. Nerolac Paints become a useful product for all direct and indirect customers. Using Nerolac Paints enables the customers to accomplish their requirements more quickly. Nerolac Paints increases the productivity of all painters. My interaction with the customers with regard to Nerolac Paints is clear and understandable. It would be easy for the Painters to become skillful at using Nerolac Paints. The product is somewhat intimidating to me. The colour of the Nerolac Paints is appropriate. The material selection is appropriate. The general looking of the Nerolac Paints is appealing. I would like to use the Nerolac Paints in the next few months. Customers enquire about paints benefit and features before making purchase. The price of the Nerolac Paint is Customer friendly. The profit margin of Nerolac paint is distributor friendly.

107

14 15 16 17

Usually Distributors face problem in companys distributing channel Out of all available paints, Nerolac Paints is not easily available in the market. The product availability is easy at par to the Customers choice The product is available at par to the choice colour of the Customers.

108

STUDENTS FILE SUBMISSION REPORT (DAVINDER KAUR)


SERIAL NO. 1 NAME NAME OF THE ORGANIZATION SECTOR

ARUP BISWAS

Hill View Hotel & Resorts, NH-33 Guru Nanak Hospital & Research Centre, Mango Life Line Nursing Home, Sakchi The Citi Inn, Pardih B.N.H Hospital, Tamulia Yellow Tree, Bistupur Akash India, Mango Time Out Resturant, Mango Hotel Siddharth, Bistupur Nataraj Hotel, Bistupur Ginger, Bistupur

Hotel

RAJPAL SINGH

Hospital

SK SINGH

Hospital

4 5

SANJAY VERMA NEYAZ AHMAD KHAN PRASHANT SINGH PRAVEER KUMAR SWARISH GUPTA

Hotel Hospital

6 7 8

Hotel Hotel Hotel

R. GUPTA

Hotel

10 11

S.MUKHERJEE SANJEEV KUMAR

Hotel Hotel

13 14

BINAY KUMAR P.D.M GUPTA

Ganga Regency, Baradwari Yashwee International, Sakchi


109

Hotel Hotel

15

MANZUR

Dayal International, Sakchi Icon Hotel, Adityapur Brubeck, Bistupur Dawat, Sakchi B.R.Seva Sadan, Burmamines Sanjeevani Nursing Home, Mango J.K.S Society, Mango

Hotel

16 17

VIVEK LAMBA RYAN B.GOSH R.P.THAKUR

Hotel Hotel Hotel Hospital

18 19

20 21

SINHA J.J.SINGH

Hospital Housing Society Housing Society Housing Society Housing Society

22

MITHELESH Ku. JHA Gopala Flats, Mango

23

RAVI KUMAR

Virdi Apartments, Mango Kirtan Vihar, Mango

24

SUSHAM KUMAR

25 26

GAURAV KUMAR DEVASHISH

Nilankar Tower, Mango Housing Society Apna Basera, Dimna road Shiv Sahara Niwas Sahara City, Mango Housing Society Housing Society Housing Society

27 28

BINOD KUMAR VINOD KUMAR

110

29

AAYUSHA SAWA

Akash Ganga Complex, Housing Mango Society Neel Kanth Tower, Baridih Nandanvan, Sonari Housing Society Housing Society Housing Society Housing Society Housing Society Housing Society Housing Society Housing Society Housing Society Housing Society Housing Society

30

RANU MUKHERJEE

31

VIVEK

32

A.P. SINGH

A.K Associates, Adityapur Marine City,Mango

33

RAJU

34

TANVEER

Ashra Apartments, Old purulia road Arjun Enclave, Mango

35

RAJPAL SINGH

36

RANU MUKHERJEE ROUNAK

Bhuban Complex Natkhat Apartments, Mango Aadarsh Complex, Sakchi K.K Awas, Sakchi

37

38

SEKHAR DAS

39

J.P NARAYAN

40

VICKY

Gauri Gautam Complex, Kadma

111

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