SALES AND DISTRIBUTION CHANNEL FOR

NEROLAC PAINTS
Submitted in partial fulfillment of the requirements for the degree of
Post Graduate Diploma in Management (Marketing)
By
AYUSH PARE
Roll No. (C2M-14)
Under the guidance of

Dr. YOGESH SIR

A Study Conducted for
KANSAI NEROLAC PAINTS

at
Indira School of Business Studies,
Tathawade, Pune 411033
(2018-2020)

1
2
 CERTIFICATE

This is to certify that Mr.Ayush Pare is a bonafide student of this Institute and has
successfully completed his project entitled SALES AND DISTRIBUTION CHANNEL
at Kansai Nerolac Paints for partial fulfillment of course Post Graduate Diploma in
Management (Marketing) from Indira School of Business Studies.

Dr. Renu Bhargava Dr. Yogesh Daudkhane

Director, ISBS Internal Guide

3
 DECLARATION

I hereby declare that the project report with the title“Sales and Distribution Channel for
Nerolac paints”being submitted to INDIRA SCHOOL OF BUSINESS STUDIESin
partial fulfilment of the requirements for award of the degree of Post Graduate Diploma
in Management is an original piece of research work carried out by me.

AYUSH PARE
Date- 3RD OCTOBER 2019

4
ACKNOWLEDGEMENT
The internship opportunity I had with Kansai Nerolac Paints Limited was a great chance
for learning and professional development. Therefore, I consider myself as a very lucky
individual as I was provided with an opportunity to be a part of it. I am also grateful for
having a chance to meet so many wonderful people and professionals who led me though
this internship period. I express my deepest thanks to Mr. Pawan Chhapre, Area Sales
Manager (Bhopal) for taking part in useful decision & giving necessary advices and
guidance and arranged all facilities to make life easier. I choose this moment to
acknowledge his/her contribution gratefully. It is my radiant sentiment to place on record
my best regards, deepest sense of gratitude to my colleagues for their careful and
precious guidance which were extremely valuable for my study both theoretically and

practically.

I perceive as this opportunity as a big milestone in my career development. I will strive to

use gained skills and knowledge in the best possible way, and I will continue to work on
their improvement, in order to attain desired career objectives.

AYUSH PARE

PGDM/18-20/C2M-14

5
CONTENTS

Chapter Page No.

1. ACKNOWLEDGEMENT 5

2. EXECUTIVE SUMMARY 7
3. COMPANY PROFILE 8-14

4. INTRODUCTION & REVIEW OF 15-20

LITERATURE

5. RESEARCH METHODOLOGY 21-25

6. RESEARCH &ANALYSIS OF WORK 26-42

7. CONCULSION & RECOMMENDATION 43-45

46
8. BIBLIOGRAPHY

6
EXECUTIVE SUMMARY
Marketing is the most vital part of operational and functional area of management and
strategies involved in carrying out marketing activities are of importance to all the areas
of marketing management. Marketing strategies are formulated to acquire customers,
who are referred to as the king in the market. The company has to understand constantly
to know the customers’ perception towards the company’s marketing strategies which
focus on around product, price, place and promotion. Therefore, success of any company
depends on the process of identification of sales influencers and strategy formulation to
satisfy them. Good implementation starts with good strategic input as the soup is only as
good as the ingredients.

With the above view, this report was prepared for the partial fulfillment of PGDM
programme as a part of curriculum. The research made is an attempt to analyze the role
of influencer segment in Bhopal market for Nerolac paints and impact of the loyalty
programme in sales of paints in paint industry.

The project started with collecting information regarding paint industry and about Kansai
Nerolac in particular from secondary sources like industry report, company report etc.
The researcher started gaining awareness about the company’s scheme and the painters
who are the key influencer in the distribution strategy of Nerolac paints. Then, the
researcher collected primary information from dealers and painters in Bhopal. A schedule
was prepared by framing a set of questions matching with the requirement of the study.
The schedule included open-ended questions and close-ended questions for allowing
considerable in answering. The researcher explained the questions wherever the
respondents faced any difficulty. The researcher collected information through personal
interview using survey method and telephonic conversation.

It was found that Kansai Nerolac Paint Ltd. was the strongest competitor to other paint
companies like Asian Paints, Berger Paints, Dulux,etc. Nerolac is engaging influencer
segments in customer satisfaction programs by offering many lucrative schemes to them.
Thus, the data collected through the survey was organized in a database, which would be
referred for future endorsements.

7
 COMPANY PROFILE
KANSAI NEROLAC PAINTS Ltd (formerly known as GoodlassNerolac Paints Ltd) is
the largest industrial paint and second largest decorative paint company of India based in
Mumbai. It is a subsidiary of Kansai Paint of Japan. 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, and material handling equipment, bus
bodies, containers and furniture industries.

HISTORY-

• 1920: It started as Gahagan Paints & Varnish Co. Ltd. at Lower Parel in Mumbai.

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

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

• 1983: GoodlassNerolac Paints Ltd. strengthened itself by entering in technical

collaboration agreement by Kansai Paint Co. Ltd., Japan and Nihon Tokushu Tokyo Co.
Ltd., Japan.

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

• 2006: On 11 July, Goodlass Paint Ltd. name has been changed to Kansai Nerolac Paints
Ltd.

8
OVERVIEW-

Kansai Nerolac Paints has 5 paint manufacturing plants and about 6–7 contract
manufacturers. The Nerolac owned plants are at 1. Jainpur (Uttar Pradesh), 2. Bawal
(Haryana), 3. Lote, Chiplun (Maharashtra), 4. Chennai (Tamil Nadu), 5. Hosur (Tamil
Nadu). Kansai Nerolac Paints Ltd. has entered into technical collaboration with other
industry leaders. The Mumbai-based company is the leader in the industrial paints
segment with a market share of over 40%. It is the third-largest player in the decorative
paints segment with a modest market share of 13%. Nearly 77% of the Indian paints
industry consists of the decorative segment.

PARENT COMPANY-

Kansai Paint was founded by Katsujiro Iwai in Amagasaki City, Japan on May 1918.
Kansai Paint is a comprehensive manufacturer of paints and coatings. The Products
include- Automotive Coatings, Industrial coatings, Decorative coatings, Protective
coatings and Marine Coatings. They are also present in U.K., Turkey, U.S.A, Canada,
Mexico, and UAE.

PRODUCTS AND SERVICES-

Technologically innovative products are the company's hallmark. Kansai Nerolac Paint
offers differentiated products with a focus on being eco-friendly and healthy. Kansai
Nerolac Paint’s key products and brands include the following:

a) Decorative Paints: Interior wall paints, Exterior wall paints, Wood surface paints
and Metals surface paints.
b) Automotive Coating: Pre-Treatment Chemicals, Electrodeposition. Intermediate
Coats/Primer Surf acres, Topcoats, Clear Coats, Touch up Paints, Auto
Refinishing Products, Heat Resistant Paints, and Underbody Paints & PVC
Sealants & Rap Grad Transit Protection Films.

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 c) Performance Coatings: Performance Coating are available for wide range of
products. For household appliances and metal fittings in factories, there is a
comprehensive range of general industrial coating systems like P.T. chemicals,
Primers and lacquers, Coil Coat, Heat Resistant Paints & Metal Decoration
Coatings. Powder Coating is now increasing in popularity because of its high
quality, resistance to corrosion, the apparent ease of application and the
environmental friendliness of the technology.

CORPORATE VALUES-

a) Responsive

b) Innovation

c) Team Orientation

d) Entrepreneurial

e) Simplicity

These are the values that form the foundation of its business and provide the blueprint
that sets them in the right direction, each time. In today's dynamic business environment,
no organization can afford to survive without a thoughtful vision, a dynamic set of
guidelines and the ability to leverage global technology, as and when needed. KNP have
been at the forefront of paint manufacturing over eight decades pioneering a wide
spectrum of quality products that change the face of economy and lifestyles of people at
large. It is their vision to leverage global technology, for serving their customers with
superior coating systems built on innovative and superior product and world class
solutions, to strengthen their leadership in industrial coatings and propel for leadership in
architectural coatings, all to the delight of their stakeholders. KNP firmly believe that it is
not only the vision of where they wish to go which will form a cornerstone of all their
further growth, but also their
10
conviction to the fact that the value based proposition has to be ultimate foundation of
their business. Hence, they make it a point to ensure that all their ventures consciously
internalize these values in every business transactions.

MARKET STATUS OF THE ORGANIZATION

Despite the demonetisation pressures, Kansai Nerolac Paints reported fabulous numbers
for the third quarter of 2016-17. The company’s revenue and net profit growth of 7% and
44% respectively on a year-on-year basis was well ahead of the Street expectations.

More importantly, Kansai Nerolac’s effort to push more products to dealers by

launching new trade schemes was also quite successful. It helped the company report a
9% volume growth during the quarter— around double that of the market leader Asian
Paints—and thereby increase its market share further.

Though, in the recent past, there was an increase in the prices of crude oil-based raw
material for paints, Kansai Nerolac was not impacted much because of its long-term
contracts with suppliers. Its operating margin, in fact, improved further because the raw
material costs during the quarter increased by 0.1% against its revenue growth of 7%—
so, raw material cost as a percentage of sales moved down from 58.5% against 62. 5%
for the same period last year.

Analysts are hopeful that Kansai Nerolac’s margins will continue to expand till 2018-19.
With close to 14% overall market share, Kansai Nerolac is the third-largest domestic
paints manufacturer. Currently, around 55% of its revenues come from the high-margin
decorative paints segment.

To compensate for the increase in raw material costs, market leaders have already
increased the prices of decorative paints by around 3%, effective March. This is can
either increase the margin further by increasing prices or gain further market share
by keeping the price intact.

With a 35% market share, Kansai Nerolac is the market leader in the industrial paints
segment. Automobile sector contributes 75% of its sales in the industrial segment and
Maruti Suzuki, its biggest client, contributes more than 30% of the company’s industrial
sales. Since passenger vehicle sales were not dented by demonetisation, it did not impact
Kansai Nerolac adversely.

11
Kansai Nerolac Paints is the second largest paints manufacturer in India, according for
20% of the total paints sales. In the industrial segment, it is the undisputed leader
accounting for 40% market share. It has excellent R&D facilities and innovating
products. The laboratories are well equipped with the latest sophisticated instruments.
Kansai Nerolac Paints have six manufacturing facilities backed by excellent R&D
facilities. It has 73 deposit/ distribution centers strategically located all over India and a
dealer and a dealer network of over 12,000.

Some of the biggest names in the Indian industry use Kansai Nerolac Paints for their
products. These include India’s most successful corporation like:

Maruti Udyog Ltd.

Bajaj Auto

Toyota

Honda

TVS Suzuki Ltd

Wheels India Ltd

Telco

Mahindra & Mahindra

Ford India Ltd

Hindustan Motors (For

Lacer) Hero Motocorp

Godrej & Boyce Mfg. Ltd

12
CULTURAL ETHOS-

 Vision driven organization

 Employees feel pride in being part of the organization
 Recognition 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.

NEROLAC PREMIUM PAINTER (NPP)

Nerolac Premium Painter or NPP is a point based reward program offered by

Kansai Nerolac Paints Ltd., the participation in program is by invitation only. By
registering in NPP the painters can get reward points on their every purchase of
Nerolac paints. On these points further they can get various gift items from the
company. This program is an annual program which began mid-April and continues
till June.

Objective-

 The objective of the NPP is to build an authenticated database of new painters.

 The target is to create a customized database of close to 10,000 new painters on
board with Nerolac, which is conducted in conjunction with the marketing
team, local sales team and the agency team working in close to create a
platform which meets the end objective.
 The painters invited are taken through the company vision, product portfolio
and benefits of association.

 The program is just the kind of campaign that Nerolac thrive on to showcase its
strengths, and partnering in these campaigns gives insights into the working of
a client and his internal and external customers.
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 Launching ‘Nerolac Premium Painters' club (NPP) loyalty program is part of
KNPL’s strategic move to connect with ourinfluencers. The Company believes
that it is important to reach out to the influencers as well. Painter Loyalty
program called Nerolac Preferred Painter (NPP) is strengthened and in addition
a dedicated call centre was set up for Influencers like painters.

PROCESS-

Dealer Selection-

 All Machine dealers above 10L turnover in FY 2014-15

 Every dealer must be active
 Each dealer must have at least 15 painters under them.

14
 INTRODUCTION AND

REVIEW OF

LITERATURE

INTRODUCTION

1.1 Introduction

15
The growth of India’s economy over the past couple of years has fuelled the growth of
paint industry. Because of this, India has become the fastest growing market for paint in
the Asia Pacific. 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. It is also seen the same phenomenal growth
in housing sector front with rapid urbanization and availability of easy to secure housing
loans. This growth in the housing sector leads to demand for the decorative paints among
home buyers.

Even with the quick economic growth India had, the per capita paint consumption hasn’t
gone up, rather remaining low at ~2kg/year. It is expected that the paint industry in India
will continue to grow, due to the demand for paints in decorative and industrial segments,
as well as the increased funding from the government for new infrastructure. About 65%
of the paint market is organized, which is highly concentrated and has an oligopoly,
making it difficult to enter into.

For any industry, the key factor affecting the competitive scenario in the market is the
end- users or the buyers, and the paints industry is no exception to that. Strategic analysis
therefore forms a view of the key influences on the present and future well-being of the
organization and assists in establishing a choice of strategy. It plays an important role in
the strategic planning process and company success.A wrong analysis can lead to major
errors in corporate strategy and consequently the business survival can be at risk. To be
able to effectively gain in the paint market, the company needs to have an in-depth
knowledge of competitors. The better the company understands the competition of their
industry, the more effective the strategies & implementation they can make to compete
with them.

The Indian paint market in many ways is different from other markets. It has been unique
market when compared to the other markets in the world. India has over than 50000 paint
shops or outlets. Indian Paint Company’s distribution policy directly caters to more than
25000 shops and is unlike other industries where companies operate through distributors.

16
Each paint company has a large sales force for this purpose. A large number of paint
outlet or shops have automated/manual dealer tinning systems. Today India has more
than 20000 outlets in operation, probably the highest for any country. There are only
approximately 7000 tinning systems in China for a market two & half times of India’s
size. 30% to the paint industry revenue in India is accumulated from Industrial paints.
The size of the paint Indian industry is around 940 million litres 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%. Total contribution to
economy/sales. 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. With GDP growth expected to be over and above
7% levels, the top three players are likely to clock above industry growth rates. There are
high volumes of low cost distempers sold in India, which amounts to approximately
200000 tons per annum at an average cost of Rs.35 per kg ($0.88) at the present rate.

Using these intermediaries, Kansai Nerolac has focus on painters who have a very high
influencing power on consumer buying process. In view of the market size and growth
potential, competitor analysis of influencer segment becomes an important area for
research. The present study tries to find out the role of influencers like painters on the
Indian decorative paint trade in Bhopal market as Kansai Nerolac coming up with new
scheme known as NEROLAC PREMIUM PAINTER or NPP which will try to add more
number of painters under them.

1.2Review of Literature

Sankritrai, A.K. (2010) stated in his study that dealers which were new to the business
still like to invest their money in Nerolac Paints although other better options were
available in
17
the Paints Industry market. These dealers thought that investing their money in Nerolac
Paints was the safest option available. A mindset is that no other option is safest or best
interms of investing their money.

Pandey, Devender Kumar (2013) studied the role of influencer and their impact on paint
trade. He found that after application no one can judge about the Brand of paint used.
Due to this reason consumers don’t insist too much for specific Brand. This situation
gives opportunity to Painters to recommend a particular brand so companies should give
proper attention for Painter’s skill enhancement, Painters’ safety training, offering Painter
safety gloves and Painter token/incentive schemes in order to get maximum advantage of
WOM (Word of Mouth) publicity through them.

Srinivasa Rao, M. V. K. (2014)studied thecustomer buying decisions of branded paints.

He found that there is no significant difference in the opinion of customers on the product
in respect of their age, education and Income; customers do not consider quality of the
branded paints and Company Image prior to its Price of the product before buying
decisions. At last, it infers there no significant difference found, in the opinion of
respondents on the product in respect of their demographic factors and price should not
be considered as the first factor while purchasing branded paints.

Garnaik, Bibhuti (2014) studied the role of influencer & dealers in promoting loyalty
program in paint industry. He found that in order to generate demand, the company
needed to meet customer expectation level. He also added that more awareness is to be
created regarding the products and benefits that come from loyalty programs for
influencers and dealers who builds company’s image and also help to create maximum
market share.

1.3 Objectives of the Study

Based on the literature view, the study was conducted with the following objectives.

18
a) Implementing sales & marketing activities that can create a positive experience
for clients and reaching out to new and unexplored segments for business growth.
b) The distribution network with reliable dealers appointing them in non-
performing areas
c) Developing infrastructure for new channels and optimizing their performance levels.
d) Marketing research and handling go-to-market activities with accountability
of introducing products to win mutually beneficial deal.
e) To identify the most commonly preferred paints among influencers in the market.
f) To examine the factors influencing the influencer to opt for a particular paint.

1.4Scope of the Study

The purpose of the study was to obtain a true and clear picture of influencing pattern of
painters as they influence the consumers’ buying decision process, especially in the
city.This report details in the field of marketing the company Nerolac paints which aims
at reaching out to new and unexplored segments for business growth.

The company also aims inbuilding distribution network with reliable dealers appointing
them in non-performing areas, developing infrastructure for new channels and optimizing

their performance levels.

The market for paints is enormous though many players have entered the industry.
Decorative and industrial paints are classified into two different types of paints in the
paint industry, but strict difference between two exists. Therefore, a comprehensive study
is required to analyze influencers segments in decorative and industrial paints.

This study would serve as the basis for understanding painters’ perception towards the
paint companies, give a picture of competitors exists in Bhopal market and effect of
loyalty programs on the painters.

It will be interesting to investigate dealers and paint contractors regarding their

recommendation to the consumers as painters work under their umbrella.

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1.5 Limitation of study

This study was mainly conducted with the aim of understanding influencer segment for
Nerolac Paints. Despite its contribution, the study had several limitations.

a) As only Bhopal area is dealt in survey, it may not represent the view of the total
Indian paint market.
b) Not all influencer segments were considered for the study. Therefore, a
comprehensive comparison was not possible.
c) The sample size of 75 was considered for the study where a larger sample size is
required for future studies.
d) Loyalty program of the company may change over time according to market trend.

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 RESEARCH

METHODOLOGY

2.1 Research Methodology

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Research methodology is a way to systematically solve the research problem. It may be
understood as science of studying how research is done systematically. Research
methodology is used to search answers of the research questions. An attempt has been
made to describe the behavior of painters of Bhopal city by the study of the samples.

2.1.1 Research Design

It is a framework for conducting the market research on given topic or project. It specifies
the details of procedures necessary for collecting the information needed to structure or
solve the problems. These are of three types:-

 Exploratory: -It is used when much is not known about the situation and one wants
to have some assessment and solve the problem without having any information
about the matter.
 Descriptive: - It is a pre-planned and design and focuses on data and characteristics
about the population being studied. It answers questions who,what,where,when and
how.
 Sampling: - It is an element or unit containing the element that is available for
selection at some stage of sampling process.

In this project, the model prepared for designing the research is the descriptive
method.This method describes market characteristics and functions; it is preplanned and
structured design.It mainly focuses on the data characteristics about the painters’
perception.Descriptive research answers the basic queries like who, what, where, when
and whom.

Since in this case the researcher has sufficient information available on what data need to
be collected and the purpose of the study, also we are clear about the source from where
we need to collect the information, so it is appropriate to go for descriptive study.

In review of various marketing literatures, it is found that buying behavior of consumers

are influenced by influencers like dealer, painter etc. In this study, the impact of
influencers on purchasing decision of the consumers is analyzed.

2.1.2 Data Collection

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Because of the uniqueness of the research, I have collected both secondary and primary
sources of data for the study.

Secondary data were collected from the sources such as periodicals, journals, Internet and
company websites. These sources were used in order to have a complete knowledge of
the concerned topic.

Primary sources of data are collected directly by the researcher for some specific purpose.
The primary information was collected through means of a survey and telephonic
conversation. The painters were interviewed and asked the questions to answer it as per
their preference & perception.

The main work of the project was to analyze the role of influencer of paint industry and
also analyses the effectiveness of loyalty programs initiated by Nerolac paint for
acquiring maximum market share in Bhopal city. It was an individual survey carried on in
the market. The painters were interviewed individually; also telephonic interviews and
personal interviews were done with painters or influencer to know the impact of loyalty
programs undertaken by Nerolac paints.The data was collected as per the purpose of
study and research objectives.A structured and standardized questionnaire was used to
collect data from the respondents as it is used everywhere to collect primary source of
information. The questionnaire method was used to record the information from the
respondents and was prepared in such way to motivate the respondents to answer even
difficult questions. I used questionnaire form for collecting information because of
maintaining respondents’ anonymity. Field work took around 5 week as sample
population was located in distance area across Bhopal.Data collection was done mainly
through questionnaires and interview. I haveonly collected data from 75 respondents due
to limitation of time.

The questionnaire was having two parts. Part A was having questions related to
demographic information. Part B was framed to collect how influencers were using
strategies to influence buyers of paints.

2.1.3 Sampling Unit

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A sampling unit is an element or a unit containing the element that is available for
selection at some stage of thesampling process.Before selection for survey a sampling
unit is taken. Here the sampling unit was the painters or influencers who are ought to be
involved in the loyalty program in Bhopal.

2.1.4 Sample Size

It is total size of the units that are used for analysis of data. The sample size determined
statistically represents thefinal or net sample size that must be achieved in order to ensure
that the parameters are estimated with the desired degree of freedom and given level of
confidence.In order to achieve the sample size, a much greater number of potential
respondents have to be contacted. The study covered 75 painters and collected necessary
data from them,however due to time constrains Icould cover maximum unit as possible in
Bhopal.

2.1.5 DataAnalysis

Data Analysis is a significant function of the study. After collection of data, I focused my
attention on analysis and interpretation. For analyzing data, it involves data processing
and statistical analysis.

After data collection, the information was processed with the help of computer. I
processed it with the help of MS-Excel spreadsheet. This helped in coding and entering
data for all the respondents.Coding was done for all the questions because to convert all
the data into numerical forms which can be easily counted for the categorization.

Results were summarized in the form of tables that consists of counting the number of
cases that fell into various categories. The study used only simple tabulation for
presenting information. Also graphs and suitable charts were used to present the data
graphically.

2.2 Plan of the Report

The entire report has been divided into four chapters and again each chapter is further
divided into various sections and sub-sections.

24
The First chapter deals with introduction and review of literature. This chapter presents a
review of the existing marketing literatures about influencers, highlights objectives of the
study, scope of the study and limitations of the study.

The Second chapter is research methodology. It narrates the framework for a study which
guides to collect and analyze information.

The Third chapter covers analysis of the questionnaire, which was administered to
respondents for collecting primary information. It states findings of the study after
carefully analyzing the questionnaire and presents interpretations prior giving
suggestions.

The Fourth chapter presents conclusions and recommendations. It discusses and assesses
the interpretations of the study and highlights conclusions regarding the topic.

25
 RESULT/ANALYSIS
OF THE
WORK

Result and Analysis of Work

The importance responsible for the market research and meeting with the dealers and
architects to promote and increase the marketability of the product in the market for
business growth.
The importance of influencers like painters in the purchase decision process arises from
positive impact they have when they support a company’s products or services. It is
important to note that the painters are not always members of a company’s distribution

26
channel. However, their influence over a purchase is the reason being the part of
distribution channel. Key influencers can impact the purchase decision of channel
members when considering a purchase from a supplier and can also influence end
customers when considering which channel member to buy from and the brand selected.

The data in the analysis were collected from 75 respondents who were painters. Vital
parameters of importance were studied to bring to characteristics of respondents.

Table 3.1: Respondents Age

Age in years Frequency Percent

<25 7 9.33
25-30 15 20
30-35 18 24
>35 35 46.66
Total 75 100

Fig 3.1: Respondents age

27
 46.66%
50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
24%
20.00%
20%
15.00%
10.00%
5.00%
9.33%
0.00%

<2525-3030-35>35

The above table and figure stated that 46.66% of respondents were more than 35 years of
age followed by 24% in the group of 30-35 years, 20% in the group of 25-30 years and
9.33% in the group of less than 25 years.

It can be interpreted that majority of the respondents were in the age group of more than
35 years

Table 3.2: Respondents by experience

Years of Experience Frequency Percent

< 6months 0 0
6months to 1year 0 0
1 year to 3 years 8 10.66
> 3years 67 89.33
Total 75 100

Fig. 3.2: Respondents experience in years.

28
 89.33%

90%

80%

70%

60%

50%

40%

30%
10.66%
20%
10% 0% 0%

0%
< 6months 6months to 1year 1 year to 3 years > 3years

The above table and figure showed that 89.33% of respondents were having more than 3
years of experience and 10.66% were having 1-3 years of experience.

It can be interpreted that majority of the respondents were experienced as painters for
more than 3 years of experience.

Table 3.3: Respondents Dealing with Paint Brands

Responses
Brands
N Percent Percent of Cases*
Nerolac Paints 75 38.7 100.0
Asian Paints 37 19.1 49.3
Berger Paints 32 16.5 42.7
Dulux 37 19.1 49.3
Shalimar Paints 7 3.6 9.3
Others 6 3.1 8.0

29
The above table stated that 38.7% of respondents were dealing with Nerolac Paints
followed Asian Paints and Dulux (19.1%), Berger Paints (16.5%), Shalimar Paints
(3.6%) and Others (3.1%).

It can be interpreted that most of the respondents were dealing with Nerolac Paints and
followed by Dulux and Asian Paints.

Table 3.4: Number of Years Respondents Dealing with Paint Brands

Number of Paint Brands
Years Working Nerolac Asian Berger Shalimar Total
as Painter Paints Paints Paints Dulux Paints Others
1 Year Count 8 4 5 4 0 1 8
to 3 % of
Years 10.7% 5.3% 6.7% 5.3% .0% 1.3% 10.7%
Total
Count 67 33 27 33 7 5 67
>3
% of
Years 89.3% 44.0% 36.0% 44.0% 9.3% 6.7% 89.3%
Total
Count 75 37 32 37 7 6 75
Total % of
100.0% 49.3% 42.7% 49.3% 9.3% 8.0% 100.0%
Total

The above table has tried to find the number of year’s painters dealing with paint brand.
It was found that respondents dealing with paint brands since 1-3 years, 10.7% were
dealing with Nerolac Paints, 6.7% were dealing with Berger paints, 5.3% were dealing
with Dulux and Asian Paints, 1.3% of them were dealing with others and no one was
dealing with Shalimar paints.

Respondents dealing with paint brands since more than 3 years, 89.3% were dealing with
Nerolac Paints, 36% were dealing with Berger paints, 44% of them were dealing with
Dulux and Asian Paints, 6.7% of them were dealing with others and 9.3% was dealing
with Shalimar paints.

It can be interpreted that majority of respondents dealing with the paint brands since
more than 3 years were mostly prefer Nerolac paints, than Asian and Berger paints.

30
 Table 3.5: Respondent preference
Company Name Frequency Percent
Nerolac Paints 66 88
Asian Paints 8 10.66
Berger Paints 1 1.33
Dulux 0 0
Shalimar 0 0
Others 0 0
Total 75 100

Fig. 3.5: Respondent preference.

100% 88%

80%

60%

40%
10.66%
20% 1.33% 0% 0% 0%
0%
Nerolac Asian Berger Dulux Shalimar Others
Paints Paints Paints

The above table and figure states that majority of the respondents prefer Nerolac Paint
i.e. 88% followed by Asian paints (10.66%) and Berger Paints (1.33%).

It can be interpreted that Nerolac Paint was mostly preferred by the respondents.

31
 Table 3.6: Factors affecting respondents to prefer Nerolac Paints
Factors Frequency Percent
Company Brand Name 2 2.66
Better Supply of Goods 3 4
Customer Satisfaction 16 21.33
Schemes & Rewards 5 6.66
Quality of the Products 23 30.66
Price 7 9.33
Durability 14 18.66
Availability 5 6.66
Total 75 100

Fig. 3.6: Factors affecting respondents to prefer Nerolac Paints

30.66
35
30
21.33
25 18.66
20
15 9.33
6.66 6.66
10 2.66 4
5
0

The above table and figure states that respondents were attracted more due to the quality
of product i.e. 30.66% followed by customer satisfaction (21.33%), Durability (18.66%),
Price (9.33%), availability and schemes and rewards (6.66%), better supply of goods
(4%) and company brand name (2.66%).

It can be interpreted that most of the respondents were generally attracted due to quality
of the product and customer satisfaction.

32
 Table 3.7: Respondents agreement to the statements regarding Nerolac Paints
Statements Highly Agree No Disagree Highly WAS
Agree Idea Disagree
Price is less compared to better 41 28 4 2 0 4.4
quality of paint.
Product is of good quality 32 23 14 6 0 4.1

Products last longer 31 25 17 2 0 4.1

when applied

The company gives training 28 24 14 9 0 3.9

and information regarding the
usage of paint

For the purpose of analysing the perception of the respondents towards Nerolac Paints,
the sample respondents were asked to express the importance of attributes in relation to 4
attributes. The responses were measured on a scale of 1 to 5, 1 being the ‘highly agree’
and 5 being the ‘highly disagree’. The results are presented below.

Various categories of painters were surveyed about the influence of attributes in making
choice for Nerolac Paints. The results are summarized in the table 3.7. As per the
responses of respondents, all the respondents were agreed to the statements. The
weighted average score for fewer prices compared to better quality of paints is high
followed by good quality product and longevity. Respondents were had no idea whether
the company had given training and information regarding the usage of paint.

It can be found that price, product and longevity acted as the integral factors influencing
to choose Nerolac Paints.

33
Table 3.8: Respondents opinion regarding Nerolac coming up with new offers and
schemes
Opinion Frequency Percent
Yes 47 62.66
No 28 37.33
Total 75 100

Fig. 3.8: Respondents opinion regarding Nerolac coming up with new offers and
schemes

62.66%
70.00%

60.00%

50.00%
37.33%

40.00%

30.00%

20.00%

10.00%

0.00%
Yes No

The above table and figure states that majority of the respondents think that Nerolac
comes up with new offers and schemes i.e. 62.66% followed by 37.33% who thinks
Nerolac doesn’t always comes up with new offer and schemes.

It can be interpreted that Nerolac always came up with new offers and schemes.

34
Table 3.9: Respondents agreement regarding Nerolac providing better rewards on
achieving the target

Opinion Frequency Percent

Strongly Agree 6 8
Agree 28 37.33
No Idea 16 21.33
Disagree 23 30.66
Strongly Disagree 2 2.66
Total 75 100

Fig 3.9: Respondents agreement regarding Nerolac providing better rewards on

achieving the target

37.33%
40%

35% 30.66%

30%

25% 21.33%

20%

15%
8%
10%
2.66%
5%

0%
Strongly Agree Agree No Idea Disagree Strongly Disagree

35
The above table and figure stated that maximum respondents agree that Nerolac provides
better rewards on achieving the target i.e. 37.33% followed by 30.66% who disagree,
21.33% who have no idea, 8% who strongly agree and 2.66% who strongly disagree.

It can be interpreted that majority of respondents agreed that Nerolac provided better
rewards on achieving the target.

Painters’ differences are one of the aspects towards new offers and schemes offered by
the paint companies. The influencer (painter) role is transferred when the paint companies
offer new schemes and rewards upon achieving the target. There are perceptional and
behavioral differences exist that the painters will earn more money through these offers
and in turn influence consumers to buy paints.

Based on the discussion, the following hypothesis is tested to find out whether there is
difference of opinion regarding formation of new offers and schemes by Nerolac and
giving rewards for achieving target.

Table 3.10: Respondents opinion towards offers and schemes of Nerolac paints in
achieving target

Agreement
Opinion Total
Highly Highly
Agree No idea Disagree
Agree Disagree
Yes 5 20 10 12 0 47
(10.6%) (42.6) (21.3) (25.5) (100%)
No 1 8 6 11 2 28
(3.6) (28.6) (21.4) (39.3) (7.1) (100%)
Total 6 28 16 23 2 75

In the above tabulation, it was to find the association between new offers and schemes
offered by Nerolac and agreement of respondents towards achieving target. 42.6% of
respondents agreed that the paint company give better reward upon achieving target when
they offer new schemes and rewards.

36
Table 3.11: Painters satisfaction level towards offers & schemes and rewards of the
paint companies
Options Nerolac Asian Berger Dulux Shalimar Others
Paints Paints
Highly 61 17 2 0 0 0
Satisfactory (81.4%) (22.7%) (2.7%) (0%) (0%) (0%)
Satisfactory 13 27 18 10 9 7
(17.3%) (36%) (24%) (13.3%) (12%) (9.3%)
Averagely 0 22 26 23 12 8
Satisfactory (0%) (29.3%) (34.7%) (30.7%) (16%) (10.7%)
Dissatisfactory 0 3 19 20 24 34
(0%) (4%) (25.3%) (26.7%) (32%) (45.3%)
Highly 1 6 10 22 30 26
Dissatisfactory (1.3%) (8%) (13.3%) (29.3%) (40%) (34.7%)
Total 75 75 75 75 75 75
(100%) (100%) (100%) (100%) (100%) (100%)

Fig. 3.10: Painters satisfaction level towards offers & schemes and rewards of
the paint companies

70
60
50
40
30
Highly Satisfactory
Satisfactory
Averagely Satisfactory Dissatisfactory
Highly Dissatisfactory
20
10

The above table and figure have tried to find the painters opinion towards offers &
schemes and rewards given by the paint companies. It was found that 81.4% respondents
dealing with Nerolac Paints had an opinion of highly satisfactory followed by satisfactory
(17.3%) and highly dissatisfactory (1.3%). 36% respondents had an opinion of
satisfactory towards
37
offers & schemes and rewards given by Asian Paints followed by average satisfactory
level of 29.3%, highly satisfactory level of 22.7%, highly dissatisfactory level of 8% and
dissatisfactory level of 4%. 34.7% respondents were averagely satisfied with offers &
schemes and rewards given by Berger Paints followed by dissatisfactory level of 25.3%,
satisfactory level of 24%, highly dissatisfactory level of 13.3% and highly satisfactory
level of 2.7%. 30.7% respondents were averagely satisfied with offers & schemes and
rewards given by Dulux followed by highly dissatisfactory level of 29.3%, dissatisfactory
level of 26.7% and satisfactory level of 13.3%. 40% respondents were highly satisfied
with offers & schemes and rewards given by Shalimar Paints followed by dissatisfactory
level of 32%, averagely satisfactory level of 16% and satisfactory level of 12%. 45.3%
respondents were dissatisfied with offers & schemes and rewards given by Other Paint
companies followed by highly dissatisfactory level of 34.7%, averagely satisfactory level
of 10.7% and satisfactory level of 7%.

It can be interpreted that majority of respondents are highly satisfied with offers &
schemes and rewards given by Nerolac Paints followed by Asian Paints.

Table 3.12: Respondents opinion regarding Nerolac providing rewards as soon as

the achievement of target

Opinion Frequency Percent

Strongly Agree 7 9.33
Agree 15 20
No Idea 21 28
Disagree 19 25.33
Strongly Disagree 13 17.33
Total 75 100

Fig. 3.11: Respondents opinion regarding Nerolac providing rewards as soon as the
achievement of target

38
 28%
30.00% 25.33%

25.00% 20%
17.33%
20.00%

15.00%
9.33%
10.00%

5.00%

0.00%
Strongly AgreeAgree No Idea Disagree Strongly
Disagree

The above table and figure stated that 28% respondents had no idea about the company
providing rewards as soon as the target was achieved. However, 25.33% respondents had
expressed their disagreement, 20% were agreed, 7.33% were strongly disagreed and only
9.33% respondents were strongly agreed that the company provided rewards as soon as
the target was achieved.

It can be interpreted that Nerolac’s rewards offered to respondents were taking time to
realize even after achieving the target.

Table 3.13: Respondents opinion regarding successful delivery of products at

reasonable price
Opinion Frequency Percent
Highly Successful 20 26.66
Successful 55 73.33
No Idea 0 0
Unsuccessful 0 0
Highly Unsuccessful 0 0
Total 75 100

39
Fig. 3.12: Respondents opinion regarding successful delivery of products at
reasonable price

80.00% 73.33%

70.00%

60.00%

50.00%

40.00%
26.66%
30.00%

20.00%

10.00% 0% 0% 0%

0.00%
Highly SuccessfulSuccessful No Idea Unsuccessful Highly
Unsuccessful

The above table and figure stated that maximum respondents agreed that Nerolac was
successful in delivering reasonable priced products and satisfying customers i.e. 73.33%
followed by 26.66% strongly agreed.

It can be interpreted that Nerolac was successful in delivering reasonable priced products
and satisfying customers.

Table 3.14: Respondents view regarding customer preference of brands

Brand Frequency Percent
Nerolac paints 51 68
Asian paints 10 13.33
Berger paints 4 5.33
Dulux 8 10.66
Shalimar 1 1.33
Others 1 1.33
Total 75 100

40
Fig. 3.13: Respondents view regarding customer preference of brands

68%
70%

60%

50%

40%

30%

20%

13.33%
10.66%

10% 5.33%
1.33% 1.33%

0%
Nerolac paintsAsian paintsBerger paints Dulux Shalimar Others

The above table and figure stated that 68% respondents said Nerolac Paints being
preferred by consumers followed by Asian Paints (13.33%), Dulux (10.66%), prefer
Berger Paints (5.33%) and Shalimar Paints (1.33%).

It can be interpreted that customers mostly preferred Nerolac Paints and Asian Paints.

41
 CONCLUSION &
RECOMMENDATION

42
 CONCLUSION & RECOMMENDATION

The influencers (painters) play a major role in consumer decision making processes.
Because they are the important part of distribution channel. Now days every company
formulates strategies to attract and retain these segments. In this study, I found that
majority of respondents were very much experienced in their field and most of them
preferredNerolac paints followed by Asian paints and Berger Paints.As they are quite
experienced, thecompany would take necessary steps to train them regarding product use
and its features. This would create interest among the influencer segments to influence
the customers to buy paints of the company because it has been seen that they are
exclusive painters of Nerolac Paints.

Nerolac Paints was mostly preferred by respondents compared to other paint companies
like Asian Paints, Berger Paints, etc. It was understood that the company was very much
popular among the respondents. Therefore, the paint company may try to add more
numbers from influencer segments under the banner in order to enjoy a big network in
Bhopal market.

Most of the respondents are generally attracted towards choosing paints because of
product quality followed by customer satisfaction and other factors.Nerolac can add more
value to its products by increasing durability and quality which will automatically
influence respondents to increase the sales when they will find that customers are fully
satisfied.

Nerolac always comes up with new offer and schemes for painters and provides better
rewards on achieving the target. The majority of respondents are highly satisfied with
offers & schemes and rewards given by Nerolac Paints followed by Asian Paints. The
company can keep an eye on competitors’ schemes and rewards in order to get a
competitive advantage.

The company must design a system that can track the painters’ purchase volume time to
time and remind the company as soon as they achieve the target. This will make it easy
for quick disbursal of rewards in terms of gifts or gifts coupons.

43
The study also found that Nerolacwas successful in delivering reasonable priced products
and satisfying customers. Customers mostly prefer NerolacPaints followed by Asian
Paints and other companies.

I also observed that there was a need of frequent dealers and influencers meeting where
the company representatives could educate those influencers regarding new benefits and
schemes on a particular area and specific day targeting a specific location. Payment credit
would have given to customers to attract new customers in the area of Bhopal.

With regard to loyalty program, I observed that the company gives only coupons or gifts.
It may consider giving financial incentives to the influencers so as to make the loyalty
schemes effective and also to capture maximum market share without undermining
customer satisfaction level. The company may consider establishing a better customer
care center which would quickly respond to the influencers so that painters won’t have to
worry about the point updating process of the loyalty program.

It is also recommended to the company to provide thorough knowledge of products,

loyalty programs, rewards and new schemes to keep the influencer segment (painters)
encouraging.

44
 BIBLIOGRAPHY
BOOKS

 Marketing Management: 14th Edition, Philip Kotler, Kevin Lane Keller,

Prentice Hall Publication
 Marketing Strategy: 5th Edition by O. C. Ferrell, Michael Hartline.BD

WEBSITES

 www.wikipedia.org
 www.nerolac.com
 www.scribid.com

45
 QUESTIONNAIRE FOR PAINTERS

PART A

A word about yourself

1) Name:
2) Address:

3) Phone no:
4) Registration Done Under The Dealer:
5) Card no:
6) Age (Years) : (a) < 25 (b) 25-30 (c) 30-35 (d) >35
7) How long have you been working as painter of any paint company in Bhopal?
(a) < 6months (b) 6months to 1year

(c) 1 year to 3 years (d) > 3years

PART B

8) Are you an exclusive dealer to any paint company?

(a) Yes (b) No

If yes, mention the name of company:

9) Which brands of paints do you deal with? (TICK as many as possible)

(a) Nerolac Paints (b) Asian Paints (c) Berger Paints
(d) Dulux (e) Shalimar (f) Others:

46
10) Which brands of paints do you prefer? (Rank them in order of preference)
BRANDS Rank
Nerolac Paints
Asian Paints
Berger Paints
Dulux
Shalimar
Others
11) Do you prefer to use Nerolac Paints?
a) Yes b) NO
12) What attracts your decision to be a dealer of Nerolac paint?
(a) Company Brand Name (b) Better Supply of Goods
(c) Customer Satisfaction (d) Schemes & Rewards
(e) Quality of the Products (f) Price
(g) Durability (h) Availability
13) Please provide agreement to the statements regarding Nerolac paints as 1 being
highly agree and 5 being highly disagree.
Statements 1 2 3 4 5
Price is less compared to better quality of paint.
Product is of good quality
Products last longer when applied
The company gives training and information regarding
the usage of paint
14) Do Nerolac always come up with new offers and schemes?
(a) Yes b) No
15) Do you agree that Nerolac provides better rewards on achieving the target?
(a) Strongly Agree (b) Agree (c) No Idea
(d) Disagree (e) Strongly Disagree

47
 16) How do you rate the offers & schemes and rewards of the paint companies?
Options Nerolac Asian Berger Dulux Shalimar Others
Paints Paints
Highly Satisfactory [ ] [ ] [ ] [ ] [ ] [ ]
Satisfactory [ ] [ ] [ ] [ ] [ ] [ ]
Averagely Satisfactory [ ] [ ] [ ] [ ] [ ] [ ]
Dissatisfactory [ ] [ ] [ ] [ ] [ ] [ ]
Highly Dissatisfactory [ ] [ ] [ ] [ ] [ ] [ ]

17) Do you agree that Nerolac provides the rewards as soon as target is achieved?
(a) Strongly Agree (b) Agree (c) No Idea
(d) Disagree (e) Strongly Disagree
18) Do Nerolac successful in delivering reasonable priced products and satisfying
customers?
(a) Highly successful (b) Successful (c) No Idea
(d) Unsuccessful (e) Highly unsuccessful
19) Can you recall which brand is mostly preferred by
customers?
(a) Nerolac Paints (b) Asian Paints (c) Berger Paints
(d) Dulux (e) Shalimar (f) Others
20) If you get a chance to switch the company then which company will you prefer?
And why?

48
49