Perception of Paint Brands

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT
ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 7 Issue 1 (2016)
www.elkjournals.com
A STUDY ON PERCEPTION OF END-USERS TOWARDS VARIOUS PAINT BRANDS

IN AHMEDABAD AND NORTH GUJARAT
PRASHANT PAREEK
Assistant Professor
Shanti Business School
Ahmedabad, Gujarat
E-Mail: prashantsp51@gmail.com
MO: 9725333945
ABSTRACT
Urbanization is an Index of transformation from traditional rural economies to modern industrial one. Over the
last 4-5 years; the economic growth in India reported an average growth of ~8%, leading to explosion of
urbanization & development in rural India. Also rural spending has started to outpace urban consumption trend
fuelled by a strong increase in incomes, led by rising non-farm employment opportunities and the governments
focus on rural employment generation schemes. This has led to growth at a CAGR of 15% in last 5 years (FY0712) in the Indian Paint Industry which is estimated to be at `291 Bn in FY12. Even the paint volumes growth is
closely related with the GDP growth rate & has grown on an average 1.7 2.1x GDP. Thus, going forward with
economy revival, changing lifestyle & public aspirations, we believe the Indian Paint Industry is expected to
conservatively grow at a CAGR of 15% for next 3 years to be ~ `443billion industry by FY2015. The Paint Industry
is dominated by decorative paints (77%) & Industrial paints (23%). Emulsion, which constitutes the majority share
of decorative paints, is the fastest growing segment of the paint industry. Presently, the growth of the Indian paint
industry is being witnessed from new demand pockets, especially in Tier-II and Tier-III cities, thus, signaling the
growing acceptance of branded quality products among the masses. The growing popularity of branded quality
paints & increasing income levels of people residing in Tier-II and Tier-III cities has led to a shift in demand from
unorganized players to organized players & pushed the growth & shift towards premium paint segment i.e.
Emulsion category from Distemper & Primer Category. This research has been conducted on 400 households
of Ahmedabad, Kalol and Mehsana cities in Gujarat. Questionnaire survey method and observation method has
been used to conduct the research. The questionnaire was formed with the combination of close-ended, open-ended
and scale questions. The main objective of this study is to find out various factors that consumers consider while
purchasing paint.
Keywords: Consumption Patterns, Changing Dynamics, Indian Paint Industry, Macro level Analysis, Urbanization

1. Introduction
Till the Second World War the industry
consisted of small producers and two
foreign companies. After the war, the
The organized sector comprising of

large and medium size units
The unorganized or the small scale

sector.
imports stopped which led to the setting

up of manufacturing facilities by local
entrepreneurs.
Still
the
foreign
companies continued to dominate the

market, which in a way is the current
scenario as well. The initial decades saw
the complete dominance of British Paint
companies such as Goodlass Walls
(now Goodlass Nerolac), ICI, British
Paints (now Berger Paints), Jenson &
Nicholson and Blundell &Eomite. The
Indian Paints sector is valued at Rs
6,800 crores in value terms and is very
fragmented (Dhiraj Sinha, 2015). The
current demand is estimated to be
around 650,000 tons per annum and is
seasonal in nature. The per capita
consumption of paints in India stands at
1.0-kg p.a. as compared to 1.6 kg in
China and 22 kg in the developed
economies. India's share in the world
paint market is just 0.6%.
This is in contrast to the 55% share that the

sector commanded a few years back. Major
companies in this segment include Asian
Paints (44% market share), Berger Paints
(17% market share), ICI (12% market
share), Goodlass Nerolac (15% market
share), Jenson Nicholson (6% market
share), Shalimar Paints and Rajdoot Paints.
The organized sector has grown at a CAGR
of 11.5% in the last five years (A.C.Neilson
Report, 2015) the unorganized sector
comprising of over 2000 units has a
combined market share of around 30%. The
major players are Asian Paints, Goodlass
Nerolac,
Berger,
ICI
and
Shalimar.
Recently, world leaders like Akzo Noble,

PPG, DuPont and BASF have set up base in
India with product ranges such as auto
refinishes powders and industrial coatings.
Kansai Paints of Japan, which entered into
collaboration with Goodlass Nerolac in
1984, is now the holding company for
The Indian Paint industry can be

divided as:
Goodlass Nerolac with 64.52 % equity

holding.

PPG has a joint venture with Asian Paints
petro-based products, thus lowering the
to manufacture industrial coatings. Jenson
excise incidence further.
& Nicholson and Snowcem India are no
With the changing landscape of Indian Paint
longer active players because of dwindling
Industry from B2B to B2C, Organized
sales in recent years. In the 1990s, helped
players have aggressively taken marketing
by a growing economy, the paint industry
initiatives to involve customers in paint
had recorded a healthy growth of 12-13 %
selection process , creating awareness of
annually. This was mainly due to a drastic
product differentiating features like Zero
reduction in excise from a staggering 40%
VOC, Low VOC, lead free & eco-friendly
to 16%. However, the growth was restricted
products,
in 2000-03 to single digits. There was a
concept
revival in 2003-2004 with a robust growth
Impression
of 13%.The per capita consumption of paint
customers to touch & feel Textures,
in India is 700 grams against 19 kg in the
designs, Glow & Disney themes &
U.S., and 2.7 kg and 5.8 kg in other
providing unique professional services of
developing countries like China and Brazil.
product consultancy and colour consultancy
As the consumption goes with affordability,
through
the low Indian figure is not a surprise. High
Stylers,
excise duties, low technology and low
Simulation Software based websites ,
capital costs for production led to the
Social Media Campaigns on Face Book &
incidence of a high number of units in the
Twitter etc have assisted in creating &
small scale sector. However, since 1992 the
meeting the demand related to lifestyle
government has been consistently lowering
conscious people to upgrade & change
duties from 40.5% in 1992 to around 16%
customer preferences. We believe such
currently. This has led to lowering of price
marketing
differential between the organized and
advertising spends would go a long way in
unorganized sector. Moreover the paints
creating a strong brand image & customer
sector was also allowed to claim Modified
loyalty paving way for rapid penetration &
Value Added Tax (MODVAT) credit on
Shift in favour of Organized players vs.
opening
stores
customer
like
Stores,
Home
Colour
Kids
Solutions
Interactive
initiatives
friendly
Call
with
World,
World
&
for
Home
Centre
&
aggressive

Unorganized players in Tier II & Tier III

cities.
(2.3)
Research Design:
This study synthesizes both research

designs i.e. Exploratory and Descriptive
2. Research Methodology
(2.1)
(2.4)
Investigator Administered Questionnaire
Literature Review
It was a live industrial project where
in the review material was provided
questionnaire from 400 respondents
sources of secondary data analysis.
of Ahmedabad, Kalol and Mehsana

Secondary Data: It was collected
from websites of various paint
paints, Nerolac paints etc are
brands, news papers, Journals, trade
mentioned in the reference
magazines and general web sources
Research Objectives:
etc.
To check awareness level of various
by
different
paint
companies affect customers decision

To understand the preference and
of
customers
regarding
different paint brands

To understand how consumption
pattern
Sampling:
Probability
Technique:
Non
sampling
with
Convenience sampling technique

was being utilized for this study.
To know how various trade schemes
choice
(2.6)
Sampling
To know the importance of painter
provided
brands like Asian paints, Berger
making
Primary Data: It was collected
was not allowed to reveal the
and dealer role in customer decision
Method of Data Collection:
through investigator administered
Paint Brands among people
(2.5)
by the funding organization thus it
Some reports of leading paint
(2.2)
Research Tool:
of
customers
differ
Ahmedabad, Kalol, and Mehsana
Even
the
three
cities
i.e.
Ahmedabad, Kalol and Mehsana

were being selected on the basis
of Convenience
Sample size:
Ahmedabad
200
Kalol
100
Mehsana
100
in

Sample Unit: Sample Unit is

households from Ahmedabad,
Kalol
and
Mehsana
(Refer Figure 1 Here)
(North
Gujarat)
(2.7)
3.2 Which companys paint you have

used at your home most recently?
From the above chart it can be inferred that
Scope of the study
in Ahmedabad city the consumption of
This study covers three cities of Gujarat
Berger paint is highest followed by Asian
state
paints, In Kalol and Mehsana Asian paints
i.e.
Ahmedabad,
Kalol,
and
Mehsana. In these cities 400 respondents
is
topping
were being sampled for this study.
consumption.
the
chart
in
terms
of
Conceptually this study aims to present a
(2.8)
macro level understanding of Indian Paint
3.3 Time Interval of re-painting the
Industry with focus on how consumption
House?
patterns differ within these three cities.
Limitation of the Study

Survey area was confined only to three
cities of Gujarat State which were
selected on the basis of convenience of
the investigator. Thus the limitation of
convenience
sampling
technique
3.4 How you Purchase paint brands?
is
evident in this study.

3. Data Analysis and Interpretation
(3.1)
In all three territories where in this study

had been undertaken it was found that
generally people paint their places at the
time interval of 4 to 5 years.

From the above chart it can be inferred that
Frequency of respondents
painters recommendation plays a major
(Refer Table 1 Here)
role in decision on which paint brand to be
From above table, we can see that there
used.
were total 400 respondents 200, 100, 100

from Ahmedabad, Kalol and Mehsana
respectively.
3.5 Which company's paint you have

used at your home? * Do you consider
Painter's
recommendation
purchase a paint?
while

From the above table it can be inferred that

people
take
into
account
painters
recommendation while deciding on the

paint brand to be used. Out of total 400
respondents we found that 212 had used
Asian paints to colour their homes and out
of these 212 respondents 172 respondents
decided to use Asian paints based on the
recommendations from the painter.
used at your home? * Which company's
paint would you like to use the most?

used at your home? * Had you
considered
advertisement
while
purchasing a paint brand?

considered
relatives/neighbour
recommendations while purchasing a
paint brand?
From the above cross tabulation it can be
inferred that recommendation of relatives.
Friends and neighbours also play a pivotal
role when it comes to purchase of a paint
brand. Out of our 400 respondents 354 were
of the view that they had considered the
recommendations
of
relatives
and
neighbours in purchase of paint brand.

considered various Sales Promotion
schemes while purchasing a paint brand?
From the above table it can be inferred
that sales promotion schemes attract

customers towards a paint brand. Since
in our sample size of 400 we found 212
Advertisement (i.e. T.V, Print, OOH, Radio
respondents had used Asian paint and
etc) influence people when it comes to
out of these 212 respondents 202 had
purchase of a paint brand. In our study 117
used it because of it sales promotion
respondents had used Berger paints and out
schemes.
of these 102 had purchased it because of its

Advertisement.
3.10 In future which company's paint will

you prefer to use?

paints. Dealers and painters are the

whatever paint brand people had used
during their last purchase but in future out
of 400 respondents 190 will prefer to use
Asian paints. 154 will prefer to use Berger
paints. It can also be understood as how the
dynamics will change in near future because
the
current
scenario
says
that
212
respondents had used Asian paint but only

190 will return to the brand again. On the
other hand 117 respondents had used Berger
paints and 154 will prefer to use the brand
in near future.
biggest opinion leaders for the end

users their recommendations are being
adhered by the people while deciding
on the paint brand. Awareness and
actual usage for a paint brand may
differ i.e. in the survey 397 respondents
were aware of Asian paints but 212
have actually used it in their house. The
biggest reason why Asian paints is a
market
leader
is
its
distribution
channel, Asian has managed to develop

a well penetrated network even in tier
II and III cities of Gujarat. Other
3.11 Peoples satisfaction level for paint
brands such as Berger paints and
brand they have used?
Nerolac are slowly strengthening their
network in small cities. Advertisement
From the above table it can be inferred
and sales promotion schemes play a
that whatever brand our respondents
key role in influencing the people to
had used, out of 400 respondents 108
purchase a paint brand.
are satisfied with their brand of paint. 99

are highly satisfied with their brand of
Asian paints, Berger paints, Nerolac,
paint and 69 respondents were highly
deluxe paints, Shalimar etc are the
dissatisfied with their brand of paint.
paint brands with high awareness

among people and among these brands
4. Key Finding
Asian paints and Berger are top two
From the data analysis it can be
brands in terms of awareness and
inferred that Asian paints is market
usage.
leader in terms of awareness, usage and

recommendations followed by Berger

Indian housing sectors boom, increasing
5. Conclusion
During this study it was observed that there
are various players in Indian market in
decorative paint segment. But there is a lot
of scope for its improvement in the level of
customer
service
provided
by
the
companies.
housing loans and a shift from semipermanent to permanent housing structures

have been driving growth in the decorative
paints segment accounting for nearly 6570% of the Indian paint industry. Seasons
are also involved in the demand for
It is recommended that various

paint brands should increase their
awareness level in Kalol town
through increase in Advertisement
urbanization had made easy availability of
It is also recommended that paint

brands should increase their dealer
decorative paints,
where consumption
peaks around festive time.

References
1. Credit Suisse, Paint and Coatings: A
Brief Industry Summary, December 4,
2014
network in Kalol and Mehsana
on influencing Painters and Dealers
2. Product Care Association, website:

http://www.productcare.org/index.html
, April 4, 2015
because in paint industry Painters
3. About
Various paint brands should focus
Philosophy
(n.d.).
and Dealer are very important to
Retrieved 2015, from Berger Paints India
recommend product to customer
Limited.
Paint
www.bergerpaints.com:
brands
should
conduct
(n.d.).
Retrieved
from
meetings and training programme
http://www.bergerpaints.com/id/90/Com
for painters and dealers on regular
pany-Profile
interval
Berger
Advertisement, sales promotion,

positive word of mouth from
relatives and neighbours are the
major
influencing
factors
purchase of a paint brand
in
4. Booklets of Asian Paints, Berger, Deluxe,

Nerolac, Accessed from the Dealers
5. Indian
Mirror,
website
http://www.indianmirror.com/indianindustries/paint.html, accessed on 1st
January 2015

Analysis-Report.asp, accessed on 1st

January 2015
6. Equity
Master,
website
https://www.equitymaster.com/researchit/sector-info/paint/Paints-Sector-
List of Tables:
Table 1: Frequency of respondents
Frequency
Valid
Percent
Valid Percent
Cumulative Percent
Ahmedabad
200
50.0
50.0
50.0
Kalol
100
25.0
25.0
75.0
Mehsana
100
25.0
25.0
100.0
Total
400
100.0
100.0
Table 2: Which company's paint you have used at your home? * Do you consider Painter's
recommendation while purchase a paint?
Do you consider Painter's

recommendation while
purchase a paint?
Yes
Which company's paint
you have used at your
No
Total
Berger Paints
78
39
117
Asian Paints
172
40
212
Nerolac Paints
29
11
40
Delux Paints
17
23
Sherwin William Paints
Other
303
97
400
home?
Total

Table 3: Which company's paint you have used at your home? * Had you considered
advertisement while purchasing a paint brand?
Would you consider advertisement

while purchasing a paint brand?
Yes
Which company's paint you
have used at your home?
No
Total
Berger Paints
102
15
117
Asian Paints
158
54
212
Nerolac Paints
31
40
Delux Paints
19
23
Other
314
86
400
Total
relatives/neighbour recommendations while purchasing a paint brand?
Would you consider

relatives/neighbor recommendations
while purchasing a paint brand?
Yes
Total
No
Total
Berger Paints
111
117
Asian Paints
182
30
212
Nerolac Paints
37
40
Delux Paints
19
23
Other
354
46
400

various Sales Promotion schemes while purchasing a paint brand?
Would you consider various

promo/non-promo schemes while
purchasing a paint brand?
Yes
No
Total
Berger Paints
113
117
Asian Paints
202
10
212
Nerolac Paints
38
40
Delux Paints
23
23
Other
384
16
400
Total
Table 6: In future which company's paint will you prefer to use?
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Berger Paints
154
38.5
38.5
38.5
Asian Paints
190
47.5
47.5
86.0
Nerolac Paints
35
8.8
8.8
94.8
Delux Paints
21
5.2
5.2
100.0
400
100.0
100.0
Total

Table 7: Peoples satisfaction level for paint brand they have used?
Cumulative
Frequency
Valid
Highly
Percent
Valid Percent
Percent
69
17.2
17.2
17.2
Dissatisfied
78
19.5
19.5
36.8
Moderate
46
11.5
11.5
48.2
Satisfied
108
27.0
27.0
75.2
99
24.8
24.8
100.0
400
100.0
100.0
Dissatisfied
Highly
satisfied
Total
List of Figures
Figure 1 : Which companys paint you have used at your home most recently?

Figure 2: Time Interval of re-painting the House?
Figure 3: How you Purchase paint brands?

Figure 4: Which company's paint you have used at your home? * Which company's paint
would you like to use the most?
Figure 5: Structural Representation of Indian Paint Industry

Figure 6: Functioning of Paint Companies through a Pictorial Diagram
MAJOR INPUTS
RAW
MATERIAL
(56%)
SELLING
AND
ADMINISTR
ATION
EXPENSES
(22%)
EMPLOYEE
COST
(22%)
MAJOR PRODUCTS
DECORATIVE
PRODUCTS:
PAINTS,
EMULSIONS,
VARNISHES,
DISTEMPER, WOOD
FINISH,
METAL
FINISH,
SPECIALIZED
PAINTS (WEATHER
INDUSTRIAL
PRODUCTS:
POWDER
COATING,
SURFACE
COATING, FLOOR
COATING, HIGH
PERFORMANCE
COATINGS,
SPECIALIZED
COATINGS
END USERS
HOUSEHOLDS,
CONSTRUCTION
FIRMS
(70%)
AUTOMOBILE
OEMs,
CONSUMER
GOODS,
MANUFACTURE
RSM MARINE
INDUSTRIES

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ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 7 Issue 1 (2016)

A STUDY ON PERCEPTION OF END-USERS TOWARDS VARIOUS PAINT BRANDS

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

The organized sector comprising of

The unorganized or the small scale

imports stopped which led to the setting

companies continued to dominate the

This is in contrast to the 55% share that the

Recently, world leaders like Akzo Noble,

The Indian Paint industry can be

Goodlass Nerolac with 64.52 % equity

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

PPG has a joint venture with Asian Paints

petro-based products, thus lowering the

to manufacture industrial coatings. Jenson

excise incidence further.

& Nicholson and Snowcem India are no

With the changing landscape of Indian Paint

longer active players because of dwindling

Industry from B2B to B2C, Organized

sales in recent years. In the 1990s, helped

players have aggressively taken marketing

by a growing economy, the paint industry

initiatives to involve customers in paint

had recorded a healthy growth of 12-13 %

selection process , creating awareness of

annually. This was mainly due to a drastic

product differentiating features like Zero

reduction in excise from a staggering 40%

VOC, Low VOC, lead free & eco-friendly

to 16%. However, the growth was restricted

in 2000-03 to single digits. There was a

revival in 2003-2004 with a robust growth

of 13%.The per capita consumption of paint

customers to touch & feel Textures,

in India is 700 grams against 19 kg in the

designs, Glow & Disney themes &

U.S., and 2.7 kg and 5.8 kg in other

providing unique professional services of

developing countries like China and Brazil.

product consultancy and colour consultancy

As the consumption goes with affordability,

the low Indian figure is not a surprise. High

excise duties, low technology and low

Simulation Software based websites ,

capital costs for production led to the

Social Media Campaigns on Face Book &

incidence of a high number of units in the

Twitter etc have assisted in creating &

small scale sector. However, since 1992 the

meeting the demand related to lifestyle

government has been consistently lowering

conscious people to upgrade & change

duties from 40.5% in 1992 to around 16%

customer preferences. We believe such

currently. This has led to lowering of price

differential between the organized and

advertising spends would go a long way in

unorganized sector. Moreover the paints

creating a strong brand image & customer

sector was also allowed to claim Modified