Executive Summary: Background

“A STUDY ON CONSUMER BRAND PREFERENCE WITH RESPECT TO DIFFERENT
PAINTS IN HUBLI- DHARWARD”
Executive summary
Background:
India is second largest consumer of paints in Asia. Today India has more than 20,000
outlets in operation probably the highest for any country. Most of the revenue is from
manufacturing is from premium category. As there is huge income from the industry
so there is heavy competition. Size of the paint industry is around 2 billion. Indian
paint industry is broadly classified into two segments those are Decorative and
Industrial Paints.
Project Title:-
“A STUDY ON CONSUMER BRAND PREFERENCE WITH RESPECT TO
DIFFERENT PAINTS IN HUBLI- DHARWARD”
Statement of the problem

This Research is focus on changing preference of consumers because in today’s time
there are so many best option for consumer for every paint product. This Research also
studies that which is the main factors which influence the consumer to prefer a
particular brand.
Scope of the study
Scope of the study is restricted to the buyer’s opinion regarding different Paint
products in Hubli- Dharward only. Their opinion is collected according to their
willingness education and financial position in Hubli- Dharward.
Research methodology:
A sample size of one hundred customers was selected for the study. The research
design used in this study was descriptive research design. It involved designing a
questionnaire to capture data from the customers. Data was analyzed through the
SPSS.
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In the survey majority of the samples belongs to the group age of 18-25 years. Many of
the respondents were young age. Majority of the respondents were Male i.e. 73% and
Female 37%.
Major Findings
 35% of the respondents get attract to specific brand through the company
advertisement, 26% of them get attract from the suggestion of painters and
23% of them make decision by their personal knowledge.
 If price of the brand is increased than the action taken by the responders are
53% say if they are satisfied then they don’t change the brand, 28% of them
say they will search for other brand and 19% of them say no option of other
brand because there is no existence of other brand.
 After doing factor analysis we got three components those are lower
price, good promotion and better brand are three major components.
Major suggestions
 Painters and contractors play a vital role in selecting a brand for consumers, so
company should be in touch with them.
 The promotion should be done by building the awareness in the minds of the
customers as good promotion is one of the factors was customers look after it.
This could include:
Providing incentive and discounts to customers and dealers.
To foster good advertisement so that brand name is remembered by customers.
 Company must keep on innovating new products because now customers are
willing to try new things.
Page 2
Introduction
Page 3
INTRODUCTION:
Colour has fascinated culture throughout history, every age and every region
has produced dyes and pigment depending on the available resources. Colour has
been with us for more than 20,000 years. The evidence can be found in the cave
paintings. The tradition of painting in Indian subcontinent grew and developed
overtime, resulting in a hilly developed and finest style, incorporating the culture
and faith of the region and religion. The history of Indian Paint Industry is as old as
the history of the Indian people. Indian paints always embrace rich colours and
clear symbolism, using specific iconography to make religious figures clearly
recognizable.
The Indian paint industry has recently completed 100 years of manufacturing.
Manufacturing of Indian paints started around 1902. The Indian paint industry has
seen a gradual shift in the preferences of people from the traditional white wash to
higher quality paints like emulsions and enamel paints. Growing popularity of new
variants providing improved finishing and textures, increasing per capita income of
people and efforts on the part of manufacturers to introduce improved versions like
eco-friendly, odor free and dust and water resistant paints, have propelled the
growth of the paint market in India. Efforts on the part of the manufacturers to
introduce innovative technologies in the paint market have led to a growth in
demand for paints in India. Paint manufacturers are giving due attention to
consumer’s colour preferences. The market is witnessing introduction of
breakthrough technologies to improve the paint quality. Paint companies are also
increasingly investing in their R&D, to carve out a differentiated product in the
market. For instance, paints, which use water in place of solvent, have been
introduced in the market. They are better in performance and not harmful for health
as it emits little or no Volatile Organic Compounds (VOC). The industry has also
seen the introduction of solar reflective coating, which is a roof surface coating that
lowers the surface temperatures of the roof resulting into greater comfort inside the
building. New technologies in the paint market would lead to better performance,
Page 4
cost reduction and wider applications of paints in India.
The Indian Paint Industry is only segment of the Indian chemical industry that
has been sharing a consistent double digit growth rate in the last five years. The
growth rates recorded over the last few years have been extremely encountered
with upward trend in paint demand and consumption. The large scale sector is
dominated by four players, namely Asian Paints, Nerolac Paints, Berger Paint
and Deluxe India Paints. The small scale sector consists of over 5000 players.
This growth has been closely linked with the business and industrial development
of modem India. Performance is anchored today in a wide variety of decorative
and industrial paints. An ISO 9001 company has come a long way in the highly
competitive Indian paints industry and has its own R&D developing,
standardizing and ensuring quality assurance of its products. It is global company
in a real sense. Indian housing sectors are booming and also increasing
urbanization has made easy availability of housing loans. This has been resulted
into a shift from semi-permanent to permanent housing structures. Growth in the
decorative paints segment accounts for nearly 65-70% of the Indian paint
industry. Seasons are also involved in the demand for decorative paints, where
consumption peaks around festive time.
Over the past few years, the Indian Paint market has substantially grown and
caught the attention of many international players. The growth in the market is
driven by emergence of the middle class in India, growing infrastructure, increase
in the tendency to spend and growing young population inclined towards lavish
lifestyle. The country continues to enjoy a healthy growth rate compared to other
economics, backed by the increasing level of disposable income, and demand
from infrastructure, industrial and automotive sectors. Indian paint industry had
two types: Decorative & Industrial Paints. Decorative paint market has been
further segmented into emulsions, enamel, distemper and cement paints. Similarly,
Industrial paint market is also segmented into automotive coatings, high
performance coating, powder coating and coil coating. The major boost to the
growth in the Indian Paint market has been provided by the decorative paint
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segment, which is anticipated to grow at a Compounded Annual Growth Rate

(CAGR) of more than 16% during the period 2013-14 to 2015-16. Under the
decorative segment, the emulsion paint market has witnessed a massive demand
over the past few years and is expected to drive the market in the coming years
too. 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.
Page 6
Size of the Industry Today India has more than 20,000

outlets in operation, probably the highest
for any country.
Geographical Distribution Mumbai, Ahmadabad, Coimbatore,

New Delhi, Surat, Chennai, Delhi,
Jaipur, Bangalore, Kolkata, Karur,
Triupur, Ludhiana, Bhilwara, Erode,
Jodhpur, Rajkot, Noida, Panipat,
Amritsar, Vadodara, Kanpur, Madurai,
Gurgaon, Hyderabad, Navi Mumbai,
Thane, Shanghai, Pune, Karachi,
Faridabad, Indore, Ghaziabad, Varanasi,
Faisalabad, Alappuzha.
The high volumes of low cost distempers

Output per annum sold in India, which amounts to
approximately 200,000 tones per annum at
an average cost of Rs.35 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.
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Today manufacturers in India hardly face any threat from the foreign players.
Most of them have deals with global players in terms of latest technology and
market accessibility. A large number of Paint outlet or shops have
automated/manual dealer tinting systems. Today India has more than 20,000
outlets in operation, probably the highest for any country. There are only
approximately 7,000 tinting systems in China for a market two and half times of
India’s size. 30% to the paint industry revenue in India is accumulated from
Industrial Paints. The size of the Indian Paint Industry is around 940 million
liters and is valued at approximately $2 billion. The organized sector comprises
54% of the total volume and 65% of the value. In the last ten years, the Indian
Paint Industry has grown at a compounded annual growth rate (CAGR) of 12-
13%.
Today India is booming in the field of infrastructure and industrial

development. Rapid industrialization and improvements in the infrastructure
such as transport, energy and communication during the last decade gave a
further fillip to the growth of the paint industry. So the demand of paint industry
is relatively more. Aided by Government’s liberal policy of technology import,
the automotive and consumer durable segments expanded phenomenally, with a
flurry of foreign collaboration. Increased demand for decorative, protective and
functional coatings was a natural fall out, which brought, in its stride, a host of
indigenous development as well as the injection of new technology. Indian Paint
Industry makes great changes in the rapid industrial development as well as
country development. Therefore paint industry is of crucial importance to India.
DEFINITION OF PAINT:
“The paint is defined as a coating material in liquid or solid which when spread
on a surface adheres and hardens forming a film that protect, decorated or add a
specific feature to the surface on which it is deposited”. It is most commonly
used to protect, preserve, decorate or add functionality to an object or surface by
covering it with a pigmented coating.
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FUNCTIONS OF PAINT:
Paint is a fluid that dries to form a continuous solid film when spread over a surface or
substrate. Depending on its type and properties, paint can perform mainly two types of
functions. They are as follow:
 Protection against oxidation, corrosion and degradation of materials.
 Decoration and embellishment of materials and surfaces.
Protection
One major function of the paint is to protect the material or the substrate on
which has been applied, due that once dried and cured, the paint forms an
insulating layer between the external environmental and the material that wants
to protect, preventing the action of external agents such as humidity, salty air,
ultraviolet radiation, chemicals agents, etc. that can induce and cause into the
material phenomena such as oxidation, corrosion or degradation.
Depending on the type of protection that it will use a specific type of paint or
other, protective paints are made with the corrosion inhibiting additives, paints
that protect against sunlight are made with a few amounts of additives that
absorb ultraviolet light, etc.
Decoration
Another major function of paint is to decorate and beautify the material, thanks
to the pigments and additives that include paintings; it is now possible to get a
wide range of colours and decorative effects (chameleon effect, mercury effect)
which are enhanced and do more beautiful the surfaces. Besides these two main
functions, the paint can be designed to have specific functions, such as non-stick
paint to facilitate cleaning of the surfaces, antibacterial paints to prevent the
growth of bacteria, anti-de-fluxgates paints to extinguish and prevent the action
of fire, soundproof paint to absorb noise, dirt repellent paints, luminescent paint
for night signaling, anti-fouling paints for ships, etc.
In short, the main functions of paint are as follows:
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 To protect the surface from weathering effects of the atmosphere and actions by other
liquids, fumes, moisture, temperature, bacteria, fungi, gases etc.
 To provide pleasing, colorful and decorative appearance to the surfaces.
 To prevent decay of wooden members.
 To prevent corrosion of metallic surfaces.
 To provide a smooth surface for easy cleaning.
 Aesthetic appearance provided by the paint colour and sheen (eggshell, satin or gloss).
 Providing a desired ability of reflection-absorption of heat and light.
 Changing the surface properties: ant-friction, hardness, electrical conductivity.
 Identification of products according to the colour of the paint.
Thus, Classification of painting products by their functions
 Paint - colored non-transparent protective coating.

 Varnish - transparent or semi-transparent protective coating. A varnish
is made of binder, solvent and additives. Some varnishes contain small
amounts of pigment.
 Enamel - hard protective coating with glossy finish.
 Primer - the first coating applied to the surface in order to enhance the
adhesion of the final paint (topcoat) and to seal the substrate surface.
Primer may be formulated to impart additional protection to the substrate
(e.g. anti• rust primer for steel substrates).
PA INT SYSTEMS AND COMPONENTS:

A paint system is basically composed of primer/sealer, undercoat and topcoat as
shown in Figure. Depending on the design requirement, texture coating may be
provided. Due to volume constraint, this guidebook will focus on paints that are
commonly used in the local market. The components of system are illustrated
below.
Page 10
The 4 Components of Paints & Coatings
Pigment
Two different types of pigment go into a can of paint. First are “prime” pigments.
These provide color and hide. Second are low-cost “extender” pigments. By
comparison, they add bulk to the product, but have little value as it relates to color.
Higher-quality paints have more of the all-important, yet more expensive prime
pigments – all the things that in the end give you easier application as well as better
durability and color retention.
Pigments are defined as any insoluble solid in coating materials. They are typically
the colorant portion of a coating material, but can also perform other functions.
Some pigments provide corrosion protection, stability in ultraviolet (UV) light, or

protection from mold, mildew or bacteria. Others can be used for conductive ability,
texture, or metallic or pearlescent appearance.
Binders or Resins
Binders primarily function as an adhesive to the substrate. They are polymer resin
systems with varying molecular weights. The molecules in the binder crosslink
during the curing stage to improve strength and create the thin film. The type of
binder usually gives the paint formulation its name. Common binders are acrylics,
epoxies, polyesters, and urethanes.
A variety of binders are used in today’s paints. These are latex and oil paints. Latex
paints contain either 100 percent acrylic, styrene-acrylic, or vinyl acrylic binders. Oil
Page 11
paints typically contain linseed oil, soya oil, or modified oils called alkyds.
The viscosity of the paint is often attributed to the binders contained in the coating
formulation. Coating viscosity must be considered when choosing certain application
techniques.
Additives
Additives are the ingredients that give paint a specific benefit that it might not
otherwise have. Common additives in higher-end paints include:
* Rheology modifiers – provide better hide and durability

* Mildewcides – keep mildew in check
* Dispersing agents – keep pigment evenly distributed
* Preservatives – prevent spoilage
Additives are usually low molecular weight chemicals in coating formulations that
allow coatings to perform specific functions but do not contribute to color. Non-
pigment additives include stabilizers to block attacks of ultraviolet light or heat, curing
additives to speed up the cross linking reaction, co-solvents to increase viscosity, or
plasticizers to improve uniform coating.
Solvents or Liquids
Providing if no added performance benefits, liquids are simply the “carrier” that
allows you to get the paint from the can to the surface. As you might guess, top
quality paints have a greater ratio of solids (pigment and binders) to liquids, while
cheaper paints are more “watered down” with liquid.
Four common types of coating materials are;
* Solvent-based coatings
* High-solids coatings
* Waterborne coatings
* Powder coatings
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* The names are descriptive of the main type of carrier fluid present in the coating.
The carrier fluid is typically a liquid such as an organic solvent or water. The
carrier fluid allows the coating material to flow and be applied by methods such as
spraying and dipping.
*
* This component may be in the coating formulation before application, but
evaporates afterwards to allow the solid materials to immobilize and form the thin
protective film.
*
* Despite its temporary presence in the coating material, the solvent plays a major
role in how well the film will perform. Powder coatings have no carrier fluid and
consist only of the other three components.
*
* While the solids portion adheres to the work piece, the solvent component of
coating materials evaporates and causes the most environmental concern. The
solvent materials are mostly volatile organic compounds (VOCS) that contribute
to the creation of ozone (smog) in the lower atmosphere and are toxic to human
health. Some solvents may also be classified as hazardous air pollutants
(HAPS).
*
* US Federal environmental statutes now regulate these VOCs and HAPS. One way
organic finishing facilities have responded to these regulations is by creating
coatings with lower solvent content.
*
* Coating Formulations
*
* Coating formulations vary widely, with different types and amounts of pigments,
binders, additives, and carrier fluids.
*
* The differences in coating formulations provide film characteristics specifically
set for the part and its end-use.
*
* Often, one type of coating cannot be formulated to provide all of the
desired properties. Several layers of different coating material may be applied to a
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surface to form a coating film that will thoroughly protect the part. The first coat
is typically called the primer, or undercoat, and the final layers are called
topcoats.
Coating Success
Regardless of the coating formulation or number of layers applied, proper surface
preparation, application techniques, and curing processes are necessary for the
desired coating characteristics to be achieved.
Classification of paints by physical type

 Solvent-borne paints contain up to 80% of solid constituents (binders,
pigments and additives) dispersed in the organic solvent. Solvent-borne
paints dry fast and may contain a wide range of binders. The main
disadvantages of the solvent-borne paints are their toxicity and
combustibility.
 Water-borne paints contain water as the paint solvent. Waterborne paints
are non- toxic and non-combustible but they are characterized by long
drying time due to slow evaporation rate of water.
 Water-borne paints based on water-soluble binders contain low
molecular weight polymeric binders dispersed in water in form of true
solutions. Water-soluble binders contain up to 15% of organic oxygen
containing solvents soluble in water (alcohols, glycol ethers, etc.).
 Water-borne paints based on polymer dispersions (Emulsion paints)
contain 50- 60% of high molecular weight polymeric binders dispersed in
water in form of Colloids. Emulsion paint contain up to 5% of organic
oxygen containing solvents soluble in water (alcohols, glycol ethers, etc.).
 High-solids paints (Low VOC paints) contain more than 80% of solid
constituents (binders, pigments) dispersed in an organic solvent. VOC –
volatile organic compounds.
 Powder coatings are obtained from powdered resin, particles of which are
attracted by the electrostatic force to the substrate surface (electrode
Page 14
position). No solvent is involved in the process therefore powder coatings

produce no/low toxic waste. The main disadvantage of powder coatings is
high cost of equipment.
 Radiation curable coatings are formed from a mixture of pre polymers,
monomers and additives, which is cured under ultra-violet radiation.
Radiation curable coatings harden fast and contain no solvents. The main
disadvantage is relatively high cost.
CHALLENGESFACEDBYTHEINDIAN PAINTSINDUSTRY:
Today Indian Paints Industry is facing various
challenges. They are as follow:
1) Exterior paint is the fastest growing segment in the Indian paint market.
Advertising, sales promotions, brand equity, a wide range of shades, distribution
strength and efficient working capital management are key success factors in the
exterior paints segment It is a raw material- intensive business with cost of
material accounting for 69 per cent of total expenses and 54 per cent of net sales.
Demand for exterior paints is not price-sensitive and unlike other segments it is
not cyclical. Growth is more than proportionate to the economical growth of
India. The estimate is that an eight to nine per cent growth in India on a long-
term basis will result in a 15- 20 per cent growth in the exterior paintssegment.
2) In the past, a critical challenge in the paints industry was the competition
from the unorganized players; who were not liable for excise as well as other
taxes. Reduction of excise duties over the last few years, from 40 per cent to the
present level of 12 per cent, has helped create a level playing field between the
unorganized and organized segments. As the unorganized sector loses its
competitive edge, it is also losing market share to the organized sector players.
The customers too are demanding quality products from well established brands.
3) The increased purchasing power in India is leading to an increase in
Page 15
repainting activity. The Indian consumer has shifted from lower quality to
premium quality paints. This segment is not too seasonal and 60 per cent of the
demand for exterior paints stems from repainting. Rising aspirations,
redevelopment and refurbishment of homes leads this market to grow
consistently. It is a shift in the perception of paints, having protective qualities
that in addition to decorative one have diminished the impact of seasonality.
Paint units have always been a household name for premium quality paints so
low-cost or project quality paints are no longer a challenge.
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“A STUDY ON CONSUMER BRAND PREFERENCE WITH RESPECT TO DIFFERENT

PAINTS IN HUBLI- DHARWARD”

Statement of the problem

Scope of the study

cost reduction and wider applications of paints in India.

segment, which is anticipated to grow at a Compounded Annual Growth Rate

Size of the Industry Today India has more than 20,000

Geographical Distribution Mumbai, Ahmadabad, Coimbatore,

The high volumes of low cost distempers

Market Capitalization The market for paints in India is expected

Today India is booming in the field of infrastructure and industrial

 Protection against oxidation, corrosion and degradation of materials.

 Decoration and embellishment of materials and surfaces.

Thus, Classification of painting products by their functions

 Paint - colored non-transparent protective coating.

PA INT SYSTEMS AND COMPONENTS:

The 4 Components of Paints & Coatings

Some pigments provide corrosion protection, stability in ultraviolet (UV) light, or

* Rheology modifiers – provide better hide and durability

Four common types of coating materials are;

Classification of paints by physical type

position). No solvent is involved in the process therefore powder coatings

challenges. They are as follow:

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