“A STUDY ON CUSTOMER SATISFACTION IN

NEROLAC PAINTS LTD., KADAPA”

Project Synopsis submitted in partial fulfillment of the requirement for the

Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
Of
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY,
ANANTHAPUR

By
Name: A.ANITHA

Reg. No. 17AK1E0007

Under the guidance of

Dr. VICENT RAJ KUMAR, M.B.A., M.Phil., Ph.D.,

Professor & Project Guide
Department of MBA

DEPARTMENT OF MANAGEMENT STUDIES

ANNAMACHARYA INSTITUTE OF TECHNOLOGY & SCIENCES
TIRUPATI-517520
MBA 2017-2019

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1.INTRODUCTION:

Customer satisfaction, a term frequently used in marketing, is a measure of how

products and services supplied by a company meet or surpass customer expectation.

Customer satisfaction is defined as “the number of customers, or percentage of total

customers, whose reported experience with a firm, its products, or its services (ratings)

exceeds specified satisfaction goals.” In a survey of nearly 200 senior marketing managers,

71 percent responded that they found a customer satisfaction metric very useful in managing

and monitoring their businesses.

It is seen as a key performance indicator within business and is often part of a

Balanced Scorecard. In a competitive marketplace where businesses compete for customers,

customer satisfaction is seen as a key differentiator and increasingly has become a key

element of business strategy.

Definition:

In marketing, customer lifetime value (CLV), lifetime customer value (LCV), or

lifetime value (LTV) is the net present value of the cash flows attributed to the relationship

with a customer. The use of customer lifetime value as a marketing metric tends to place

greater emphasis on customer service and long-term customer satisfaction, rather than on

maximizing short-term sales. One of the first accounts of it is in the 1988 book Database

Marketing, and includes detailed worked examples.

2. INDUSTRY PROFILE

Paint is a thick liquid substance used to decorate and protect concrete, wooden, cloth,

metallic surfaces and everything you can imagine. The colors make these objects look

beautiful while it basic ingredients project them from corrosion, rust and decay.

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 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 surfaced marks to help driving or it can be used as a preventing measure for

preventing corrosion or water damage.

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.

The Indian Paint Industry:

In India, Indian Paint Industry’s total market size is US$1400 million. The organized sector

of the industry is 55%. The 45% unorganized sector has about 2500 units. The big players

and their market share-value of the organized sector are.

 Asian Paints 37%

 Kansai Nerolac 15.9%

 Berger Paints 13.8%

 ICI 11%

 Jenson & Nicholson 5.7%

 Shalimar 4%

 Other 12%

3. COMPANY PROFILE

Introduction:

The Board of Directors of Kansai Nerolac Paints Limited has adopted the following

Code of Conduct for the Board of Directors and senior management of the company. For the

purpose of this code the term “Senior Management” shall mean personnel of the Company

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who are members of its core management team excluding Board of Directors. This would

comprise all members of management one level below the executive directors, including all

functional heads.

The code has been adopted, effective the 31st Day of December, 2005.

This code should be read in conjunction with the “Code of Conduct for managerial

and executive staff”, the “Code of conduct for prevention of insider trading and code of

corporate disclosure practices” and the “Policy on appropriate social conduct at workplace”

and such other policies / codes the company may from time to time formulate in pursuit of its

commitment to the core values of integrity and honesty.

The company shall always strive to maintain the highest standards of conduct in all its

endeavors. The company’s Directors and senior managers have a responsibility to lead by

example, acting with truth, sincerity and fairness in all decisions.

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-Point de Nemours

& Company Inc., USA and Oshima Kogyo 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 subsidiary of Kansai Nerolac Paints Ltd. 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.

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BOARD OF DIRECTORS:

Name of the Person Designation

Dr.JAMSHED JIJIRANI CHAIRMAN
MR.DEVENDRA MOTILAL KOTHARI VICE – CHAIRMAN
MR.HIROSHI ISHINO DIRECTOR
MR.YUZOKAWAMORI DIRECTOR
MR.PRADIP SHAH DIRECTOR
MR.HARISHCHANDRA MEGHARAJ BHARUKA MANAGING DIRECTOR
MR.SUSIM MUKUL DATTA DIRECTOR
MR.NOEL TATA DIRECTOR
MR.YASO TAJIRI DIRECTOR
MR.PRAVIN CHAUDHARI DIRECTOR

4.PRODUCT PROFILE

These Products are Two Types:

1. Decorative Paints

2. Industrial Paints

1. Decorative Paints:

Walls

 Interior

 Exterior

 Woods

 Metals

Industrial Paints:

 Automotive Coatings

 General Industrial Coatings

 High Performance Coatings

 Power Coating

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5.Objectives of study:

 To know the level of awareness about Nerolac Paints.

 To know which factor influences the purchase of Nerolac Paints.

 To know the satisfaction of with the quality of Nerolac Paints.

 To know the opinion which type of media is suitable for increasing the sales of

Nerolac Paints.

 To know the opinion about overall performance of Nerolac Paints.

6.Research methodology:

Research Design:

A research design is purely and simply the frame work of plan for a study that guides

the collection and analysis of the data. It is blue print that is followed in completing a study.

The research design specifies the methods, data collection and data analysis.

Sources of Data:

There are two types of data primary and secondary.

The primary data is gathered when the researcher employing questionnaire surveys,

personal interview and observation investigation a particular problem at hand.

Sampling Plan:

It is difficult to collect information on each of the population units. The method where

only a few units of population under study are considered for the analysis is called sampling

method.

Sample Size:

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 This refers to the number of items to be selected from the universe to constitute a

sample. Non-probability sampling method is used in selecting size for the study.

The sample size taken for the current study is 100 customers in Kadapa Market.

Sampling Techniques:

Non-probability: In non-probability sampling the chance of any particular unit in the

population being selected is unknown. The selection of the samples was according to the

random sampling.

7. SCOPE OF THE STUDY

The sample under study is limited to the consumers in Kadapa region. The collection

of data is limited to only Nerolac Paints users at present and does not include Non-users or

pre-users. The study had been carried out in various parts of the Kadapa region.

8.Limitations of study:

 Time factor was the main limitation for the study on the project was restricted

to small period.

 The research was limited only to the kadapa city so the result cannot be

generalized to the whole market.

 The sample taken for research was concerned only for 100 customers rather

than millions of customers scattered around the world.

9. Findings, suggestions, conclusion:

 54% of the respondents have revealed that level of awareness about Nerolac Paints is

high.

 62% of the respondents know about the Nerolac Paints through Advertisements.

 90% of the respondents are using Nerolac Paints for interior and exterior.

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  51.25% of the respondents revealed that quality is the main factor which influenced to

buy Nerolac Paints.

 66.25% of the respondents are agreed with the quality of Nerolac Paints.

 68.75% of the respondents feel that the price of Nerolac Paints is medium.

B. SUGGESTIONS:

 Customers are totally satisfied with quality and durability of Nerolac paints but

increase price of Nerolac paints is high. So it is better to reduce the price sacrificing

the quality of paints.

 Present generations of rural people are using Nerolac Paints . so it will be good, if the

company plans training programs and awareness campaigns in rural areas.

 More advertisement should be given in given in electronic and outdoor media.

C. CONCLUSION:

Nerolac Paints is well known for high performance paints for decades. It’s

position in the market is strong. Customers are delighted with quality, durability and

performance of Nerolac Paints. This study revealed the same thing again. But company has to

improve its marketing strategies for further strengthening of its position. Outdoor

advertisement like wall paints etc., may be given in rural areas where Nerolac paints are used

for decorative purpose. Same measures may be taken to reduce the price of Nerolac paints.

Promotional measures may be taken to improve its market share.

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