GL BAJAJ INSTITUTE OF MANAGEMENT AND RESEARCH

GREATER NOIDA

REPORT ON
“CUSTOMER SATISFACTION " IN REFERENCE TO THE
BERGER PAINTS LTD
PGDM (BATCH: 2019-21, TERM 3 )

Submitted By : Submitted To:

Aman siddiqui DR. Arpita Srivastava
ROLL NO: 19019
SECTION : C
GL BAJAJ INSTITUTE OF MANAGEMENT AND RESEARCH

GREATER NOIDA

CERTIFICATE
This is to certify that the work embodied in this minor project being submitted
by AMAN SIDDIQUI towards the fulfilment of the requirement for the
award of “Post Graduate Diploma in Management” during 2019-2021 is a
record of original piece of work, carried out by her under my supervision and
guidance in GL Bajaj Institute of Management and Research Greater Noida
(U.P).

Mentor Section In charge Faculty Incharge

Dr. Arpita Srivastava Dr. Harsh Partap Singh Dr. Dileep Singh
(Assistant Professor ) (Assistant Professor) ( Professor)
INDIAN PAINT INDUSTRY ANALYSIS
 The paint industry is expected to grow at 12%-13% annually over the next 5 years from Rs.
280 billion in FY13 to around Rs. 500 billion by FY18. FY14 was a challenging year for the
industry as a whole due to subdued demand across key sectors and rising inflation.
 The unorganized sector controls around 35% of the paint market, with the organized sector
accounting for the balance. In the unorganized segment, there are about 2000 units having
small and medium sized paint manufacturing plants. Top organized players include Asian
Paints, Kansai Nerolac, Berger Paints and ISI.
 Demand from paints come from two broad categories :-
a) Decoratives:- Major segments in decoratives include exterior wall paints, interior wall
paints, wood finishes and enamel and ancillary products such as primers, putties etc.
Decorative paints account for over 77% of the overall paint market in India.
b) Industrial:- Three main segments of the industrial sector include automotive coatings,
powder coatings and protective coatings.

 The market size of the paint industry in India is estimated at around Rs. 290 billion.
Industry players expect close to 12% growth in business volume and 10%-12% rise in sales
in FY15.
 The market for paints in India is expected to grow at 1.5 to 2 times GDP in the next 5 years.
With GDP growth expected to be between 5%-6% levels, the top three players are likely to
clock above industry growth rates in the future, considering that they have a strong brand and
good reach.

Top 15 Leading Paint Companies of India

1. Kansai Nerolac Paints Ltd

2. Asian Paints Ltd

3. Berger Paints India Ltd

4. AkzoNobel India Ltd (Dulux Paints)

5. Shalimar Paints Ltd

6. Jenson & Nicholson (India) Ltd

7. Snowcem Paints

8. Mysore Paints & Varnish Ltd

9. Jotun Paints

10. British Paints

11. Birla White

13. Apollo Paints Pvt. Ltd

14. Advance Paints Pvt. Ltd

15. Suraj Coats

CHAPTER 1
1. INTRODUCTION
Berger Paints has come a long way since its inception in 1923. Lewis Berger was the founder
of Berger Paints. He offered spectacular shades and chance to transform their homes through
the power of imagination. It’s the 2nd largest paint company in India with a turnover of Rs.
3,335 cr. Over the past few years, Berger’s success has been impeccable. One of the top 10
decorative paint company in Asia. Berger receives IPE Corporate Excellence Award in 2013,
Secured the 1st position as FASTEST GROWING COMPANY in the Indian Paint Industry
by Construction World 2012-13. The company provides an excellent service, prompt
response and a wider reach to the dealers and the customers. Perhaps it is this attitude that is
responsible for all its successful endeavours. Market through a distribution network of more
than 82 stock points and 12,000+ Paint retailers.
Berger Paints India Ltd is an Indian paint company based in India.[5][6] The company is
headquartered at Kolkata and has 14 manufacturing units in India, 2 in Nepal, 1 each in
Poland and Russia.[7] It has manufacturing units at Howrah and Rishra,[8] Arinso, Taloja,
Naltoli, Goa, Devla, Hindupur,[9] Jejuri,[10] Jammu,[11] Puducherry and Udyognagar. The
company has presence in 5 countries – India, Russia, Poland, Nepal and Bangladesh. They
have an employee strength of over 3,500 and a countrywide distribution network of 25,000+
dealers.[12]

Company history
The name Berger or Lewis Berger is today synonymous with colour worldwide. But actually
the origin of the name dates back to over two & a half centuries in England in 1760, when a
young colour chemist named Lewis Berger, started manufacturing in Europe, 'Prussian blue'
using a secret process that every designer and householder coveted. Mr. Berger perfected this
process & art of the blue colour, which was the colour of most military uniforms of that time.
Enriched by the imagination of Lewis Berger, the unending quest for creation and innovation
in the world of colour & paints still continues.
The history of Berger Paints India Limited as a company started in 1923 as Hadfield's (India)
Limited which was a small colonial venture producing ready-mixed stiff paints, varnishes and
 distempers setup on 2 acres of land in one of India's first industrial towns close to Kolkata in
Howrah, Bengal. Subsequently in 1947, British Paints (Holdings) Limited, an international
consortium of paint manufacturing companies bought over Hadfield's (India) Limited and
thus the name changed to British Paints (India) Ltd. The gentleman who took over, as its first
managing director was Mr. Alexender Vernon Niblet, an Englishman who was later on
followed by Mr. Alfred Godwin in 1962.
Further in the year 1965, the share capital of British Paints (Holdings) Limited was acquired
by Celanese Corporation, USA and the controlling interest of British Paints (India) Ltd was
acquired by CELEURO NV, Holland, a Celanese subsidiary.
Subsequently in 1969, the Celanese Corporation sold its Indian interests to Berger, Jenson &
Nicholson, U.K. Then onwards the company British Paints (India) Ltd became a member of
the worldwide BERGER group having its operations across oceans in numerous geographies
and this marked the beginning of Lewis Berger's legacy in India – which the company would
later take forward to enviable heights. From 1973 the company entered into one of its
dynamic phases of business with introduction of new generation products in the industrial,
marine and decorative segments under the able leadership of its first Indian Managing
Director Mr. Dongargaokar Madhukar.
Year 1976 was another turning point in the history of the company when the foreign holding
in the company was diluted to below 40% by sale of a portion of the shares to the UB Group
controlled by Mr. Vittal Mallya. The reins of the company were taken over by Mr. Biji K
Kurien as its Chief Executive & Managing Director in the year 1980. Finally in the year
1983, the British Paints (India) Limited, changed its name to Berger Paints India Limited.
The entire 80's & 90's saw the launch of many new products from company's stable such as
premium emulsions and high quality acrylic distempers. The COLOUR BANK tinting system
was launched through which the consumer could select from a range of over 5000 shades.
Again the fortunes of the company changed hands in 1991 with UB Group's stake in the
company bought over by the Delhi based Dhingra brothers, Mr. [Link] & Mr.
[Link] and their associates of the UK Paints Group. Presently Dhingras' control a
majority stake of almost 73% in Berger Paints India Limited, a professionally managed
organization, headquartered in Kolkata, Mr. Subir Bose, a 10-year company veteran, took
over as Managing Director on 1 July, 1994. Completing a challenging 18 year stint at the
helm with immense success, Mr Bose retired on 30 June, 2012, handing over the reign of the
company to Mr. Abhijit Roy. Today the stewardship rests with the current Managing Director
Mr. Abhijit Roy

Products offered by BERGER PAINTS

 INTERIOR COLLECTION EXTERIOR COLLECTION
 Weather Coat All Guard
 Silk Luxury Emulsion  Weather Coat Smooth
 Breathe Easy Emulsion  Walmasta Kool and Seal
 Rangoli Total Care
 Bison Arcrylic Emulsion

ENAMELS WOOD FINISH

 Breathe Easy  Polyurethene Finish
 Luxol Satin  Melamine
 Luxol Lustre  WoodKeeper
 Luxol Hi-Gloss

Major competitors and market scenario

Asian Paints manufactures and distributes paints for residential and industrial sectors.

Asian Paints's headquarters is in Mumbai, Maharashtra. Asian Paints has a revenue of $2.1B,
and 7,500 employees. Asian Paints's main competitors are Nerolac, Berger Paints and
Shalimar Paints. As of August 2019, Asian Paints has 1.9M fans on Facebook and 98.1K
Shalimar Paints is engaged in manufacturing and marketing of decorative paints and
industrial coatings.

Shalimar Paints's headquarters is in Gurgaon, Haryana. Shalimar Paints has a revenue of

$50.5M, and 672 employees. Shalimar Paints's main competitors are Asian Paints, Nerolac
and Pidilite. As of August 2019, Shalimar Paints has 91.4K fans on Facebook and 767

Nerolac develops and supplies paint system for electrical components, cycle, material
handling equipment and buildings.

Nerolac is a Public company. H.M. Bharuka is the Managing Director of Nerolac and has an
approval rating of 71 from Owler members. Nerolac's top competitor is Asian Paints, led by
K.B.S. Anand, who is their CEO. Nerolac has 620 followers on Owler.

Pidilite manufactures and provides adhesives and industrial chemicals.

Pidilite is headquartered in Mumbai, Maharashtra. Bharat Puri is the Managing Director of

Pidilite. Pidilite's main competitors are Asian Paints, Berger Paints and Jubilant Industries.
Pidilite has 696 followers on Owler.
MARKET SHARE OF BERGER PAINTS

Analysis of Paint Industry in India

Market capitalization : Asian Paints has the biggest market capitalization
followed by Berger, Kansai Nerolac and Akzo Noble having the smallest. Asian Paints and
Berger Paints are larger cap companies. Berger Paints has come on the border line of large
cap and mid cap categorisation as its stock got corrected. Kansai Nerolac is a mid-cap
company Akzo Nobel India is a small cap company.

Share Prices : All the 4 stocks are 15%-20% corrected from their respective 52 week
highs. The biggest reason behind this could be crude oil because paint industry requires crude
oil and its derivates as raw materials. Thus, if the input cost increase then it can have an
impact on margins which ultimately has effect on the share prices.

PE Ratio : Asian Paints & Berger Paints are enjoying premium PE valuations. All the 4
companies are trading with PE values above their historical PE values. This means that the
paint industry has always traded with premium valuations. And in comparison with that, the
industry is trading with overvalued PE values currently.
D/E Ratio : Akzo Nobel and Kansai, which are also both foreign players, are running their
businesses on 0-debt policy. As Berger Paints has the highest D/E ratio is has the lowest
interest coverage ratio (ICR). Also, if you have 0-debt then the value of ICR holds no value.
Promoter Holding : Akzo Nobel India, Berger Paints and Kansai Nerolac all have almost
same promoter holding, which is high. Out of the total holding of 52.79% of Asian Paints,
11.98% promoter holding is pledged. The pledging has been done for some other business
activities which the promoters are interested in and not for the core paints business. Asian
Paints is in a high growth industry and has a consumption driven business. So, when
companies which are performing so well and are in their growth phases, do these kind of
activities then it can be an alarming sign.
Profit Growth : Akzo Nobel has a very good 5-years profit growth. Kansai Nerolac has a 5-
years sales growth of 10.45% which is very healthy.
Enterprise Value : It is a measure of a company’s total value. It not only include the equity
capital of the company but also the debt capital of the company. The market cap and the
enterprise value of these companies are almost same, which means there are n discrepancies
here.
Operating Profit Margin : Asian Paints has the highest Operating profit margin which is a
very positive sign for the company.

Summary
Automobile industry and other similar industries which are heavily dependent upon crude oil
come up with alternative energy resources, then demand for crude oil might go down.
The paints sector is raw material intensive, with over 300 raw materials (50% petro-based
derivatives) involved in the manufacturing process. Since most of the raw materials are
petroleum based, the industry benefits from softening crude prices.
And when the demand for crude oil goes down, that time paint industry will benefit from this
as the crude oil prices will go down and the input costs of the companies will also go down
and the margins will improve.
All the companies of Paint Industry in India have premium PE values which are well above
their historical PE values and will remain the same way for some more time in the future.

VISION AND MISSION OF BERGER PAINTS

Vision
We will become the leading paints and associated products manufacturing and marketing
company in Pakistan ensuring best returns to our investors & highest customer satisfaction.

Mission
We will lead by innovative ideas and technological development in the paints and associated
products in Pakistan ensuring efficient utilization of resources yielding high returns.
We will ensure highest level of commitment to achieve best quality products and services.
We will vigorously promote and safeguard the interests of employees, shareholders, business
associates & all other stakeholders.
We will act as a good corporate citizen ensuring service towards community and shall focus
on environment, health and safety.

SWOT ANALYSIS OF BERGER PAINTS

Berger paints is a strong company which is involved with Paints manufacturing and
distribution in India. The company originates from India and has headquarters based in
Kolkata. It is known to be an excellent manufacturer and distributor, though it is not as strong
in advertising as Asian Paints. Berger paints has major presence in 5 different countries like
India, Russia, Poland, Nepal and Bangladesh. Besides this, it is also trying to make inroads in
Africa.

Strengths in the SWOT Analysis of Berger Paints

 Basket of Products: Berger Paints offers a wide variety of products which includes
home to industrial paints. They also offer decorative paints option which is the latest
offering and in demand in the market. It acquired the decorative paints unit from the
Indian arm of US-based Sherwin Williams Paints.

 Brand Recognition:Being the second largest Paint manufacturer gives them a healthy
brand equity. Almost everybody recognises the brand and is familiar with its products
and offerings. Their rigorous campaigns have made them a household name.

 International Market: They have international operations in few countries that include
Nepal, Bangladesh, Russia, Poland, Cyprus and collaboration with Becker of Sweden
and Nippon paints of Japan.
 Competent Leadership:The chairman is Kuldip Singh Dhingra and vice chairman is
Gurbachan Singh Dhingra who own a combined stake of 75% stake in the company
and have taken it to new heights making it second largest paint maker trailing behind
Asian Paints. The future leadership of the company is also set. The reigns will be
passed on to Simran and Kanwardeep children of Kuldip and Gurbachan.

 Loyalty: Customers are loyal to Berger Paints when it comes for re-painting their
homes.

 Efficient Supply Chain:They have an efficient supply chain network throughout the
country. This includes seven manufacturing facilities, 85 depots, many regional
outlets. They house around 2500 employees and a massive network of 15000 dealers.

 Growth: They have had a steady growth in their retail values (RSP).

 SWOT Analysis of Berger Paints - 2

 Diverse Customer Base: Berger caters to a diverse customer base ranging from
households, industries from manufacturing to automobiles and nuclear power plants.

 Barriers to market entry: They have grown so big that they have created a barrier for
new competition to enter the market. Together with Asian Paints, they control most of
the market.

 Diversification: They have expanded into the Construction Chemicals segment and
thus have expanded their scope for revenues and profits.

 CSR: They have initiated green Horizon initiative that caters towards eco-friendly
paints by reducing wastage and conserving natural resources.
Weaknesses in the SWOT Analysis of Berger Paints

 High dependence on one segment: Berger Paints depends on one segment heavily for
its maximum revenue and that is the decorative segment. This is not a long term
strategy and high growth rate cannot be sustained for long.
 Bad brand image: Berger faced a lot of negative publicity due to lead found in its
paints. This kind of publicity taints the brand image of the company.
 Limited Pricing Power: Due to a duopoly in the market they do not have the pricing
power in their hands. They need to keep their prices in check with the market going
paint prices.
 Weaker distribution – Berger paints is known to have a weaker distribution network
as compared to Nerolac or Asian paints which is a major problem for the company. It
needs to ramp up its distribution network far and wide and if needed, increase its
manufacturing potential to match demand.
 No premium alternative – Asian paints has conveniently targeted a unique segment
which gives high margin through their Asian paints Royale initiative. Berger paints
needs such initiative to get in touch with their customers and have better sales and
brand equity.
 Opportunities in the SWOT Analysis of Berger Paints :
 Marketing – Berger paints needs to up its game where Marketing communications is
concerned. Where Nerolac and Asian paints are advertising left and right, Berger
paints is left far behind and the frequency of advertisement is lesser. With marketing,
it will bolster its brand values and create a demand from consumer end.
 Market potential is untapped : Usage of paints in Indian households is very low. There
is a high scope of growth in this segment. Also due to urbanization there is a growth
in demand for paint.
 New Launches : They can innovate and invest in their R&D to come up with superior
technology for the paint industry. They can also launch more eco-friendly paints and
make it health friendly.
 Emerging markets – Berger paints is currently present in 4 countries only but because
of its manufacturing base, it can expand to other emerging markets too.
 Diversification : Huge scope for business and product diversification is available for
Berger Paints.
 Government Policies : Government is focusing on urbanisation, industrialisation,
increase in house and developing more tier 2 and tier 3 cities. This means there will
be a huge demand for paints in the recent future.

Threats in the SWOT Analysis of Berger Paints :

 Raw material Prices: There are high fluctuations in the prices of the raw materials of
paint.
 Changing government laws: Changing government laws may lead to new companies
in this sector. That means an increase in competition.
  Competition eroding the margins – There is stiff competition amongst the top three –
Asian paints, Nerolac and Berger paints. Amongst these, Berger paints seems to be
left behind resulting in penetrative pricing and lesser margins. This is a threat to
Berger paints.

Organizational structure of berger paints

Like all other manufacturing organizations, BPBL has a conventional organization structure.
Generally six board meeting are called in BPBL during a year where chairman of the board of
Directors presided over the meeting .In BPBL several committees like the Audit committee,
Risk committee, Remuneration committee, Executive committee and the Purchase committee
are formed along with Managing Director (MD) and other Executive & non-Executive
Directors. These committees sit at least once a month to approve various proposals brought
by the management prior to implementation. All the proposals are initiated by the mid level
managers and then forwarded to the Managing Director (MD) through the head of the
divisions or departments. The company has also a legal problems faced by the company and
external auditors to conduct audit activities of BPBL.

There are four Non-Executive Directors, two Executives Director and ten Managers work
under the Managing Director (MD) of the company. Among the ten managers three directly
report to the Executive directors and other report to the Managing Director. The Managers of
each department monitor the work activities of subordinates, convey top management
decisions and provide necessary feed back to reach organizational goals and objectives. In
response the bottom level managers perform their responsibilities sincerely and report
regularly to their immediate superiors.

CONCLUSION
This report is an attempt to make a clear picture of paints industries .The paints market is
very much competitive although Berger paints holds the major market share. But the growth
rate of the competitors is great challenges for Berger. Its true that Berger paints is very
prominent in the market because of its high quality products, competitive price rate etc .The
first choice of consumers is Berger because they can relay on it and its long lasting
capabilities .Its also able to provide the consumers option of choosing variety of colors; 5000
shades with in 5 minutes through its color bank.

Berger paints is very much restricts in credit policy. It provides credit only some selected
dealers where as other competitors are very much liberal in credit. Paints traders, wholesalers
or retailers, are naturally very much found of huge credit. Thus they key competitors
gradually grow up in the market through their vast credit policy.

With world class range and durability, Berger is always ready to answer to all weather
condition And try to satisfy every corner of the country.

CHAPTER – 2 PROBLEM STATEMENT

Bangladesh paint market is experiencing a good growth of 8-10% per annum consistently in
the late 90s and early years of this century mainly because of a boom in real estate
development. Besides, this trend in growth of demand is likely to persist or may even witness
an upswing in the future as the country moves from rural base to urban base project (Real
estate). There is a huge possibility that paint industry will further thrive because only 39% of
the target market are currently using paint and others are progressing to get into the trend of
using paint instead of the traditional way of whitening their dear houses. According to the
cement manufacturers of Bangladesh, the cement market is also growing at around 4%,
which correlates quite well with ANTECEDENTS OF CUSTOMER SATISFACTION AND
LOYALTY INBERGER PAINTS BANGLADESH LTD 3 our paint market growth data.
The limited growth up to now in industrialization and per capita income in Bangladesh has
restricted the size of the paint market. However a good number of local paint manufacturing
companies (40 organized and at least 50 more in the informal sector) have been operating in
this small market. Quite a few of these companies are producing paints of internationally
acceptable quality and very importantly, the installed single shift production capacity of the
local paint companies is double the present local market demand. Berger, the market leader in
the Bangladesh paint market, is one of the oldest names in the global paint industry. It has its
origin in the year of 1706 and from then on the company is operating with strong adherence
to quality and social responsibility. Initially, Lewis Berger, a German national, founded dye
and pigment making business in England. Lewis Berger and Sons Limited grew rapidly. With
a strong reputation for innovation and entrepreneurship culminating in perfecting the process
of making Prussian blue, a deep blue dye, a color widely used for many European armies'
uniform. Production of dyes and pigments evolved into production of paints and coatings,
which till today, remains the core business of Berger. Today, Berger offers all kinds of
painting solutions in decorative, industrial or marine segment for both decorative and
protective purpose. The two main competitors currently facing Berger Pains are Asian Paints
and Elite Paints. At the moment, the advantage Berger is experiencing is the generic nature of
Color Bank. Through survey, the most common finding was that when people generally visit
outlet, most of them prefer Berger Pains for their good product quality and higher brand
image in spite of Elite Paints has similar color variety, and it‟s providing numerous shades.
Because they can not maintain proper delivery.

INPORTANCE OF THE STUDY

The purpose of this study is to find out the customer satisfaction level and loyalty among the
Berger paint users. In this competing market what variety of product Berger paints are
providing to their customer is a very important issue. Research has find out how strong
relationship Berger maintain with their customer and how they are satisfying their customer
by providing value. Therefore the researcher purpose is to find out, is there any significant
relationship between Berger paints and customers perception towards using Berger products.
ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER
PAINTS BANGLADESH LTD 4 This report is mainly based on the answers of the
questionnaire survey and some in depth interview.

Objectives of Research:
The primary objective of the my research is :

 To know the significance of customer satisfaction and to search an optimum design

for an effective customer satisfaction survey.
 To track and measure the customer satisfaction in relation to berger Paints as a
product.
 To know the requirements of the customer satisfaction.
 To know the level of awareness of the berger Paints as product.

 The secondary objectives of my research is to :

 To find what the customers want from Berger paints company
 Whether there preferences for Asian Paints as a product is above the other
competitors eg. Nerolac paints ltd.
 Reasons for brand shifting in case of negative feedback.
 Are the customers satisfied by the services provided by berger Paints.

CHAPTER – 3
Literature review for the research problem
Product cost:
 Berger makes it possible to bring the best painting solutions at affordable prices. They have
different category of product with different price. Product costing is defined as a process of
estimating the cost of a final product at design stage (Sheldon et al, 1991). Ulaga and Eggert
(2006) point out that manager identify direct product costs, i.e. the price charged by a
supplier, as the key relationship cost-driver. With regard to the effect of price on customer
satisfaction in the context of manufacturing firms, Fynes and Voss (2001) found both
constructs to be inversely related. On the other hand, we found no studies with a direct
influence of price on customer loyalty. Whitney (1987) pointed out the predominant
percentage of manufacturing cost of a product is determined at product design stage.
Therefore, estimating cost at design stage, i.e. product costing, is one of the vital enablers for
accurate pricing in customer negotiation. Moreover, product costing is able to discover the
linkages between design specifications and cost factors and then find the method to reduce
cost at early stage. Product costing aims at estimating the cost of a product without complete
information of process plan or other production data. There are a number of research
perspectives in industry and academia. Alexander et al, (2002) narrowed these methods down
to three categories: analogous method, statistical method and analytical method. Analogous
methods suggest that similar products have similar costs. These methods describe similarity
as the level of correspondence of relevant characteristics (Alexander et al, 2002). The degree
of similarity in function or geometry is computed as the distance between two similar items.
One of the drawbacks of analogous methods is the limitation of the number of characteristics.
In addition, the information provided to search for a similar product at early design stage is
insufficient and the values of some characteristics may be missing. Moreover, part of
overhead cost (like inventory cost) is not related with the specifications of product.
Therefore, analogous methods are only suitable to estimate the costs related with product
features.
Product quality:
Berger Paints Produces decorative, industrial, marine, coatings along with binders/different
polymers (for paints and textile industry). The factories employ modern technologies for the
purpose that includes automatic and semi-automatic production and filling lines. Production
and quality testing machine from famous makers in Asia, Europe and America ensures
precision of operations and enviable quality of the product. Raw materials of consistent
quality from renowned brands are being used and the best of the professionals in the industry
oversee the production and quality assurance operations. People, mostly engineers and
chemists, who are considered as the most valuable resources at Berger. Berger thus ensures
manufacture of the best quality products at most competitive cost employing green
manufacturing techniques. There are some studies that found a positive effect of product
quality on customer satisfaction (Selnes, 1993; Janda et al, 2002; Chumpitaz and
Paparoidamis, 2004), whereas the effect on customer loyalty clearly lacks empirical support
in the business-to-business context. In consumer-based studies the positive link between
product quality and loyalty has mostly been confirmed for behavioural loyalty (Devarajet al,
2001; Espejelet al, 2007). The transcendent definition of quality is derived from philosophy
and borrows heavily from Plato‟s discussion of beauty. From this viewpoint, quality is both
absolute and universally recognizable. According to Pirsing (1992, p.73), defining quality as
excellence means that it is understood “ahead of dimension as a direct experience
independent of and prior to intellectual abstractions. The product based approach has its roots
in economics. Differences in the quantity of someone ingredient or attribute possessed by the
product are considered to reflect difference in quality (Garvin, 1984). For example, better
quality lines have a higher thread count. This view of quality, based on a measurable
characteristic of the product rather than on preferences, enables a more objective assessment
of quality. The manufacturing based approach has its roots in operations and production
management. Here quality is defined as conformance to specious (Crosby, 1979). Quality of
conformance relates to the degree to which a product meets certain design standards. This
definition has an internal focus, in contrast to the external focus of the user based approach,
and quality is considered as outcome of engineering and manufacturing practices. It is the
basis for statistical quality control. Deviation from design specifications results in inferior
quality, and consequently increased cost due to scrap, rework or product failure. This
definition allows for the precise and objective measurement of quality, although it has limited
applicability for service.
Delivery performance:
Berger always maintains proper delivery performance to meet customer demand. Because
the consumers don't care if a supplier or distributor had a problem. "If something goes wrong
in the supply chain, it ruins things for the consumer/end user". Their product delivery is
always accurate. Berger has a strong distribution channel and logistic support all over the
country to maintain proper delivery. Delivery performance, encompasses suppliers‟ ability to
“meet delivery schedules (on-time delivery), adjust to changes in delivery schedules
(flexibility) and consistently deliver the right parts (accuracy)” (Ulaga, 2003, p. 684).
Compared to product quality, empirical support for delivery performance as an antecedent of
satisfaction and loyalty is even more modest. The order-to-delivery (OTD) process is one of
the most important processes to manage. It can be defined as consisting of four sub-
processes; customer‟s ordering, supplier‟s delivery, logistics service provider‟s (LSP‟s)
transportation, and customer‟s goods receipt sub-process (Mattsson, 2004). The performance
of an OTD process concerns traditionally lead time and on-time delivery. In a logistics
context, lead time is typically defined as the elapsed time between recognition of the need to
order and the receipt of goods (Blackstone and Cox, 2005). On-time delivery is the extent to
which the lead time, and as a consequence the delivery date and the delivered quantity
corresponds to what has been confirmed (e.g. Forslundand Jonsson, 2007; Kallio et al, 2000).
There are, however, other performance dimensions that in order-by-order environments also
may be important: lead time variability, lead time adaptability and lead time flexibility. The
external view considers that the internal perspective is insufficient to develop all the
company‟s capabilities since some of them are created and strengthened by inter
organizational relationships with other firms in the same network. This analysis perspective
suggests that a company‟s critical resources can be expanded or constructed beyond the
confines of the firm, and be integrated in inter-business routines and processes (Dyer and
Singh, 1998), by being jointly directed at greater customer satisfaction (Zhao and Stank,
2003). In this context, outsourcing finds new theoretical support by being developed from a
strategic perspective, that is, with the aim of obtaining a sustained competitive advantage.
That requires relationships to be maintained within a framework of long-term cooperation,
with suppliers considered to be partners (Pfohl and Buse, 2000).
Supplier:
 A consumer products company remains profitable only if it has the right product at the right
price in the right place at the right time. However, getting these stars to line up only happens
when "the entire supply chain works as one. When BERGER places its logo on a product, the
logo represents "a seal of quality." Protecting that quality makes BERGER responsible for its
entire supply chain. Ulaga and Eggert (2006) identify supplier know-how and its capacity to
improve the timeto-market as two benefit dimensions in the area of “customer operations”.
Supplier performance has been positively linked to manufacturing firm performance (Shin et
al, 2000). If performance is affected by the quality of the relationship, then in order to sustain
performance, the relationship must be sustained. Fundamentally, the on-going relationship
between manufacturer and supplier is not important for its own sake. Rather, a healthy
relationship is important because it encourages more information sharing, better
communication, and more trust, each of which can improve planning, coordination, problem
solving, and adaptation (Fynes et al, 2005), and thus manufacturing firm performance. It is
important to understand how manufacturers react to supply failures and recoveries because
these reactions may be the antecedents to significant costs. A supply failure may induce the
manufacturing firm to invest in improving supplier capability up to required levels because
supply failures increase transaction costs (Forker, 1997; Krause, 1999). Lacking trust in
supplier reliability the manufacturing firm may expend resources and monies to identify
back-up suppliers, or add slack (e.g. inventory, longer lead times) to the system. A critical
supply failure, or a series of failures, can lead to potential relationship disintegration (Ellram,
1991; Bowersox and Closs, 1996).
5Time-to-market:
Maintaining liaison with nationwide dealers and also ensuring that Berger products are available
everywhere in the country. Marketing Department communicates internally on how to bring new
product and innovative painting solutions to meet the needs of various wants. Linking consumers'
needs with the capacity of fulfilling them, the marketing department supervises Home Decor centers
throughout the country. So Berger‟s products are available in the market. Time-to-market is the
strategy of focusing on reducing the time to introduce new products to market. According to Whitney,
(1990), the process is self-contained with little if no outside interference. The absence of
manufacturing involvement, even in writing the manufacturing process plan, increases the
possibilities for redundant activities and reduces the chances for getting the optimal design in shorter
time. It has been found that 80-90 per cent of the time-tomarket equation is absorbed in the design
phase. Reducing this time is central to getting products earlier to market. Further, 80per cent of a
product‟s cost is committed during the design phase, whereas design only absorbs 8 per cent of
incurred costs. The benefits of bringing products to market quicker than competitions are extra sales
revenue and earlier breakeven, extended sales life, premium price giving bonus profits from being
first, early introduction means “hooking” customers before competition and thus developing their
loyalty, and leading to increased market share

Customer satisfaction:
Berger's one of the prime objectives is to provide best customer support-connecting
consumers to technology through specialized services like free technical advice on surface
preparation, color consultancy, special color schemes etc. To bolster customer satisfaction,
Berger offers Home Decor Service from where one can get an array of services pertaining to
painting. Satisfaction is a “positive affective state resulting from the appraisal of all aspects
of a firm‟s working relationship with another firm” (Anderson and Narus, 1984, p. 66).
Consistent with this view, satisfaction encompasses economic and noneconomic components.
Economic satisfaction is defined as a “Positive affective response to the economic rewards
that flow from the relationship with its partner, such as sales volume and margins”, while
non-economic satisfaction is a “positive affective response to the non-economic,
psychosocial aspects of its relationship, in that interactions with the exchange partner are
fulfilling, gratifying, and easy” (Geyskens et al, 1999). The relationship between economic
and noneconomic components of scales for measuring satisfaction differs considerably
among studies (Geyskens et al, 1999). Several researchers point out that customer satisfaction
either directly (Yi, 1990; Szymanski and Henard, 2001; Spiteri and Dion, 2004; Woo and
Ennew, 2004; Russell-Bennett et al., 2007) or indirectly through commitment (Wetzels et al.,
1998; Abdul-Muhmin, 2002, 2005; Hennig-Thurau et al., 2002; Caceres and Paparoidamis,
2007) affects customer loyalty, which is one of the main marketing goals of firms (Berry and
Parasuraman, 1991). In addition, the research on satisfaction has mostly been carried out in
consumer markets, while not so much is known about satisfaction and its antecedents in
business-to-business markets (Patterson et al, 1997; Abdul-Muhmin, 2002, 2005; Spiteri and
Dion, 2004; Russell-Bennett et al, 2007). That there is a shortfall of research in this area has
also been pointed out by Sheth and Sharma (2006) in their overview of the surpluses and
shortages in business-to-business marketing theory and research. The authors identify
organizational satisfaction as one of the areas that may generate theory-based empirical
research, and point out that the understanding of satisfaction in business-to-business
marketing is still limited. One way of addressing the link between customer value and
satisfaction is therefore to study value as a formative construct. On the other hand, however,
Devaraj et al. (2001) and Spiteri and Dion (2004) raised the question of whether we really
need customer value as a construct. In their discussion they rely on Iacobucci et al. (1994),
who were the first to observe that all that satisfaction research needs is the inclusion of price
(besides the relationship benefits) as another determinant of satisfaction.

CHAPTER -4 RESEARCH METHODS

Sources of Data Collection

 Primary source :

 The primary source of my data collection is carried through questionnaire method.

 Secondary source :

 As a secondary source the data is collected through various websites and books
mentioned in bibliography.
 Customer preference reports carried by previous investigators on Asian Paints
company ltd were observed and studied.

 Sample description
 Method of Sample selection:

 The method of sample selection is carried through ,the Survey Method.

(Questionnaire By Mail ). In this method the sample of the respondents are prepared.
the questionnaire are then sent by post together with a covering letter explaining the
purpose of the study and requesting the respondents to extend his cooperation.

 Size of the Sample:

 The sampling units are the elements of research ,hence the sampling units in my
research are the individuals. The sample size is the total number of units in the
sample. Hence the total sample size is 10 units.
 Sample Analysis:
 Itemised rating scale is used with four categories for more reliable ratings of
satisfaction on various elements. Ratio scale is used for those elements , where the
 answers are more of specific in nature. Example Yes or No.
 The data is summarized and compressed into tabulation form
 Bar - graphs and pie charts are used to interpret the tabulated data and the inferences
are drawn.

CHAPTER-5
Data Analysis and Findings
This above mentioned data and table shows the overall satisfaction rating with berger paints ,
Where 43.5% of the Respondents are very satisfied and 8.7% of the Respondents are very
dissatisfied.
This above mentioned data and table shows the online facilities provide by berger paints ,
Where 42.2% of the Respondents are some what satisfied and 6.7% of the Respondents are
very dissatisfied.
This above mentioned data and table shows theprice level fixed by berger paints , Where
52.2% of the Respondents are some what satisfied and 8.7% of the Respondents are very
dissatisfied where as 19.6% of people are very satisfied and 19.6% of people are somewhat
satisfied
This above mentioned data and table shows the quality of berger paints in term of smile text
and textures
Where 52.2% of the Respondents are very satisfied and 8.7% of the Respondents are very
dissatisfied where as 22.1% of people are somewhat satisfied and 13% of people are
somewhat dissatisfied
This above mentioned data and table shows the satisfaction of the smooth wall surface you
get after using berger paints
Where 41.3% of the Respondents are somewhat satisfied and 8.7% of the Respondents are
very dissatisfied where as 34.8% of people are very satisfied and 15.2% of people are
somewhat dissatisfied
This above mentioned data and table shows the experience of paint peeling or poor
adhesion?
Where 56.5% of the Respondents says no and 43.5% says yes
This above mentioned data and table shows the problem facing regarding blistering?
Where 54.3% of the Respondents says no and 45.7% says yes
This above mentioned data and table shows the problem facing sags and runs?
Where 76.1% of the Respondents says no and 23.9% says yes
This above mentioned data and table shows the people who have used berger paints primer ?
Where 78.3% of the Respondents says yes and 21.7% says no
This above mentioned data and table shows the people who have used berger paints
(decorative paints , interior walls, metal surface) ?
Where 75.5% of the Respondents says yes and 43.5% says no
This above mentioned data and table shows the berger paints provide expert help in
makeover and decorative ideas ?
Where 84.8% of the Respondents says yes and 15.2 % says no
This above mentioned data and table shows the T.V commercials of berger paints company
misleading?
Where 47.8% of the Respondents says no and 52.2 % says no
This above mentioned data and table shows berger paints ltd provide a seprate section for
complaints?
Where 46.7% of the Respondents says no and 53.3 % says no
FINDINGS:

 The findings from this research shows that the company is working hard
to maintain the quality of its paints as the least number of the
customers have some problems regarding blistering , adhesion or
yellowing of the wall. Almost 70% of the respondents have agreed that
after using Asian Paints they get a smooth wall surface. But the certain
dissatisfaction still prevails regarding the texture and smell of the
primers. One out of the ten respondents is totally disinclined towards
Asian Paints the reason found out was the fumes of the primers
affecting the health. Another have experienced cracks in the wall paints
and have complained against the durability of the paints. Such
dissatisfied customers have shown positive inclinition towards other
brands such as Nerolac paints.

 Regarding the service department of the Asian Paints. This include, the
services provided by sales representative of which the total satisfaction
prevailing is just 30% and the level of the dissatisfaction is 40%, more as
the respondents have reported, the local dealers and team leaders are
care free and do not respond to their complains.

 And in the fields of feedback to the complains, 20% more of

dissatisfaction is prevailing than satisfaction. The After Sales
Services shows equal levels total satisfaction and total
dissatisfaction but 20% of then show that they are very
dissatisfied.

 Incase of Online Facilities the respondents have provided with positive

feedback. 40% rate of satisfaction level is more than the dissatisfaction
level. This shows that the online facilities have upward moving scale.

 Regarding the promotional activities, 6:10 is the ratio for dissatisfaction .

That means out of ten respondents undertaken six respondents feel that
the commercials are misleading because according to them they have
not got the same effects as shown in the t.v. commercials. And the other
activities such as innovative ideas and makeovers its satisfactory ratio is
7:10 which shows effective efforts are being taken.
  Regarding the price level, 60% of the respondents feel that the prices of
the Asian Paints are high. Out of which 20% are very dissatisfied as they
are reluctant after comparing the prices with end results.

 Regarding the inclination towards the berger paints brands , 6:10

respondents prefer berger Paints over other paints. But still there are
four other respondents who are preferring other paint brands.

 The overall satisfaction of the berger Paints ltd in general judged by the
respondents and brought down in this report is, 20% more than the
overall dissatisfaction.

CHAPTER 6
Recommendations and Conclusion
• Berger Paints must improve its service sector. If there are any
complaints regarding the product of the Asian paints, the line
officers must follow up with calls or emails , if required they
must send their workers to repair the damaged caused due to
the company's product.

• There are complaints by the customers regarding the care- free

behavior of the team leaders, resulting in poor customer
satisfaction. To avoid this the management must try to change
the behavior of the officers as well as team leaders. This can be
done by bringing Change Management.

• Berger Paints Co. must re-treat its primers, in its research

laboratories to avoid the inhalation of the harmful fumes and
make the products eco-friendly.
• Berger Paints is one of the best paints , but certain weaknesses
still persist, regarding its colour fadedness, adhesion &
smoothness. Therefore to avoid this the company must have a
regular check on its production department and quality
department and every activity related to the development of the
product. They can do this on regular intervals by adopting
techniques like Kaizen technique and Total Quality
Management.

• The customers feel that the advertisements are misleading and

fraud. Therefore to remove this negative attitude of the
customers the company can demonstrate how to use a particular
product and how to utilize and maintain it at its maximum
level. At last how to obtain an advertisement look.
CHAPTER 7
References

1) Dr. P.C. Pardeshi, ‗ Marketing Management‘, Marketing Research, Nirali

Prakashan, Pune , June , 1999, Page no. 6.1

2) Dr. Shaila Bootwala , D.J. Penkar, V.K. Behere, ‗Modern Marketing

Management‘, Customer Relationship Management, Nirali Prakashan,
Pune, June 2006 , Page no.
5.1

3) Sharps, ‗Research Methodology‘, Choice of Research Method, Sharp

Publisher, Pune , 2008, Page no. 39

Websites:

1) Best Techniques to create Customer Satisfaction

By, Berlin Asong and Glenn Magas

Additional Information on this article can found at

[Link]
customersatisfaction

2) Business Strategies to Increase Customer Satisfaction

By,Doc Pratt

More info at: [Link]

strategies-thatimprove-customer-satisfaction by Leigh Goessi
More info at:
[Link] CRM

3) Measuring and Tracking Customer satisfaction Detail info. can be found

at:
[Link] -Tracking-Customer-
Satisfaction/

4) [Link]

5) [Link]
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