Professional Documents
Culture Documents
We are highly grateful to Almighty Allah who gave us power to complete this
project. The project was about the ICI Pakistan Ltd, Paints Business. The basic
focus was to know the marketing mix strategy of ICI Paints and SWOT analysis
We are very thankful to ICI Paints Business Sahiwal, for their cooperation and
guidance which they grant us for completion of the project. Moreover, their time-
to-time guidance in preparing project report was also been a great aid. And of
EXECUTIVE SUMMARY
INTRODUCTION
SUMMARY OF OPERATIONS
HYPOTHESIS
STATISTICAL TESTING
HYPOTHESIS TESTING
LITERATURE REVIEW
PROBLEM DEFINITION
CORN MARKET
FODDER MARKET
SCOPE OF STUDY
DATA COLLECTION
DEALERS RESPONSE
GROWERS RESPONSE
INTRODUCTION TO THE COMPANY
Polyester
Soda Ash
Paints
Life Sciences
Valuing People
«Our competitive edge.»
We shall value our people – ‘our competitive edge’, respect
the individual, value teamwork and, without discrimination,
recognise and reward performance.
Innovation
«Creativity for improvement.»
We shall seek new and better ways to improve products,
services and processes.
Business Excellence
«Better, faster and best value.»
We shall lead in quality, speed, and cost competitiveness.
We shall maximize returns for shareholders and deliver
sustainable growth.
Customer Obsession
«They pay our bills.»
We shall understand customer needs and deliver on our commitments and
show adaptability and agility in response to change.
Transparency
«Beyond reproach. »
All our systems are transparent and can stand the test of
Scrutiny.
Ethics
«Uncompromising integrity.»
We shall demonstrate uncompromising integrity in ourbusiness dealings; be
fair and honest; be free of bias; and auditable in all aspects of our business,
ensuring conformity with our code of conduct and regulatory standards.
• Further investment
in Soda Ash
capacity expansion
(65ktpa)
under evaluation.
• Manpower
productivity
increased by 10%.
Paints Business delivered an exceptional performance during the year 2006 with
all its segments posting double-digit improvement in sales volume on the back of
GDP growth and enhanced activities in downstream construction
And automobile sectors. In the Decorative segment, competitive brand strategy,
channel expansion and launch of new products assisted the Business in achieving
higher sales volume over last year. Similarly, the Industrial segment showed a
solid performance in 2006 on account of growth in Motor, Motorcycle and Tractor
sectors. The Refinish segment also delivered a strong growth in sales volume
compared to last year and entered the Middle East market with the
commencement of commercial exports.
ICI PAINTS BUISNESS
ICI Pakistan paint’s business vision is to further strengthen its position as the leading
paint company in Pakistan and drive its operations to world class standards with a
improvement in processes and systems to add value to its customers, employees and
working environment.
The business has integrated into its workplace the values and behaviors of ICI Pakistan
and these have been communicated and accepted in various interactive sessions with all
employees. These values and behaviors now form the way of life for all those who work
All the three business today have embarked on programs which focus on the consumer
and customer needs. The focus is to understand the needs of our major stakeholders.
Pursuing research and market understanding and delivering high quality product and
services form the nucleus of creating competitive advantage in the market place for the
paints business.
premium range of products with a wide color range under the Dulux brand that fulfill the
growing needs of the market. Pentalite Classis was the first launch in this category. A
super premium plastic emulsion with five properties of resisting hairline cracks, high
scrub resistance, better flow, anti fungal and luxurious finish was very well received by
After its initial success in the furniture market segment the Dulux Woodcare range is now
available in the retail segment also. In one stroke the consumer can now get the shade of
Expanding and improving service levels have been the major thrusts of the Decorative
business. After the great success of the first color studio in Karachi a second color studio
was opened in Islamabad. Now consumers in Islamabad also have the platform to
experiment with colors, come up with new contrasts and combinations that reflect their
persona and lifestyle projecting their color aspirations into their living environments. The
housing and the color consultancy team has been re structured with more feet on the
street and proper training to help consumers with new color trends and interior design
solutions.
The Industry & Automotives coatings business of ICI paints besides gaining strength in
Self leveling epoxy floor coatings have been the new addition in the product portfolio and
have been well received by major customers. After the initial success of the Turn-Key
project management concept with one of the leading customers where a one shop solution
The Refinish business continues to grow in the local market. It also set sights on
becoming a regional player. The top coat color range was launched under the Dulac Auto
paints umbrella along with all its ancillaries. To cap on the mid and low tier thinner
market an acrylic thinner was launched in mid tier and a GP thinner was launched in the
low tier. In pursuance of its channel strategy to increase its numeric coverage the business
expanded its network to 491 dealers while 12 additional SSS dealers were made in 2006
DEFINATION OF PAINT
“Coatings applied to a surface or substrate to hide, decorate, protect and perform other
specialized function”
PAINTS CLASSIFICATION
Paint
COMPONENTS OF PAINT
Pigments Binder
COMPONENTS
OF
PAINTS
Solvent Additives
PRODUCT RANGE
(Under Coats)
• Dulux
-Dulux Prime-on
-Dulux Wall Putty Water Based
-Dulux Red Oxide Primer
-Dulux Universal Primer Grey
DECORATIVE PRIMERS
(Under Coats)
• Glidden
• Dulux Range
-Glidden Hi Gloss
-Glidden Ultramatt
O DULUX RANGE
-Dulux Weathersheild
-Dulux Pentalite
-Dulux Supercoat
-Dulux KidZone
-Dulux Contract Emulsion
-Dulux Texture Finish
• GLIDDEN RANGE
o Glidden Duraguard
o Glidden Ultra hide
o Glidden Ultratex
Decorative Water borne Products
(Top Coats)
The four marketing mix elements are interrelated decisions in one area affect
actions in another. To illustrate design of marketing mix is certainly affected by
whether a firm chooses to compete on the basis of price or on one or more other
elements .When a firm relies on price on its primary competitive tool .the other
elements must be designed to support aggressive pricing. For example,
promotional campaign likely will be built around a theme of “low, low price,” In
non price competition how ever product, place and promotion strategies come to
fore front.
Like many areas of business marketers some times face seemingly contradictory
goals .The desires to satisfy customers , For example may seen to conflict with a
particulars revenues or profits objectives. When this occurs ethical predicaments
may arise .Thus ethics in marketing deserves our attentions.
ICI, S PAINTS MARKETING MIX STRATEGY
Like other companies ICI Paints, Decorative Division also focused on the
marketing mix strategies. It becomes obvious to design such a market mix
strategy which can helpful in achieving organizational objectives and first and
foremost objective of organization is to maximize its profits. We will now explain
how ICI Paints formulates its Market Mix Strategies.
1. Product
First and foremost priority of the company is to maintain the standard and
quality of the existing product which are already in the markets. Their
manufacturing, meeting demands of the market had become a great challenge
for the company. And the main thing which is taken in to account before getting
the product out of the gate of Factory is to maintain the quality of every single
pack of the product.
With time to time increasing demand, it had also become essential to maintain
the supply chain. Many of the raw materials are imported from several
countries. They are chemicals so their transportation through air services is not
feasible so they are usually mobilized through ships. So when there is such
expended inflow of raw materials and outflow of product, it becomes a
challenge to manage it.
• IDENTIFYING DEMAND
Secondly the step goes what is the current need of the market. Today is the
world of change, and only change is the continuous phenomena in this world.
Several needs were identified in the market through research and the products
were launched by keeping the demand of the customers.
Once again, for the first time in the world, oil paint was
launched by ICI Pakistan Limited with no smell. The paint
gives no smell like ordinary paints. This product was very
successful and collected a lot of appreciation of customers.
Recently a new range is launched with a ver y
demanding need of customer which is “ODOURLESS”. As
we often experience that when even 1 room of our home is
painted, a specific smell starts to come and it’s pinching.
Especially when Matt is applied in any room, it’s
impossible to sleep in that room before 4 or 5 days. And it
also causes irritation in eyes.So in the process of value
addition of ICI, a new range was launched with the
additional and separate feature of ODOURLESS. It is
available in Dulux Matt Enamel, Dulux Enamel and Dulux
Pentalite Classic.
Exterior paint which retains its shade for long time
2. Price
As far as the pricing is concerned it is the most difficult decision because keeping
all the things on one side price matters. ICI Paints is promoting different brands
on different prices according to the market segmentation. Dulux is the most
expensive brand in the market. The reason is that the best raw material and
components are used in the manufacturing of the Dulux. Second reason is that
Dulux target market is upper tier. And to some extend upper tier of middle tier.
But paying more for Dulux , customer feels value .
If we compare the price of Dulux with other local brands , it’s the fact that price
difference is not more than 20-100 rupees. As far as quality is concerned , by
paying more customer is not worried about the quality .
For the market which is middle tier, ICI’s brands Paintex Emulsion and Glidden
are the brands with low price and optimum quality within the tier. If we go into
the comparison of Paintex and Glidden their price is low then the other paint
brands selling in the market. Glidden is purely priced to cover the buying power
of middle tier.
The price of the products in which ICI is having technological edge over
competitors is comparatively high. The reason is that ICI is enjoying state of
monopoly for that product. There is no product in the market to encounter them.
The price of Dulux Weathersheild Fresh is Rs. 1050/-, others companies brands
offered in the market are 300-400 Rs less than Weathersheild Fresh.
Same is the case with Dulux Gloss Finish and Dulux Matt Enamel Odourless
Range. The price is Rs. 300-400 more as compared to other brands.
3. Placement / Distribution
The overall ICI Paints products are manufactured in ICI Paints Lahore. For all
Pakistan stocks dispatch is carried out from factory warehouse.
There are further 5 warehouses in the country.
• Lahore
• Islamabad
• Multan
• Karachi
• Quetta
The distribution channel includes Distributors and Dealers/ retailers. The Pakistan
is divided into 4 Regions.
• Upper
• Lower Punjab
• Center Punjab
• Lower
Every region is headed with Regional Sales Manager and in every Region there
are further Area/ Territories. The supply activities are carried out with keeping the
region and areas. One region cannot carry out supply in others region same in the
case with areas/ territories.
4. Promotion
Before getting a product into the market, ICI’s culture is to invite its business
partners (dealers/distributors) to give them orientation regarding new product
what ICI is going to launch, with what features and how it will work.
After this first step when product is introduced to the business partner’s second
step is its promotion how the promotion is done.
• T.V Advertisement on different channels
• Radio Advertisement , F.M 100
• Bill boards almost in every big city
• Posters / Banners
• Small gifts for dealers/distributors to push new product sale
• Small gifts for painters / contractors who are labor force who apply paint
• Painters party to introduce them new product
• T – Shirts printed with product logo on them
• Caps
• Key chains
The sales team is assigned a target the placement of the new product on every
counter. With the help of direct marketing, ICI employees gives orientation to the
customers and Painters that what the new product is and what features it has.
Currently T.V commercial of ICI Dulux Odourless, in on air on different T.V
channels.
SWOT ANALYSIS
A method of analyzing an organizations competitive situation that involves
assessing organizational Strength (S) and Weaknesses (W) as well as
environmental opportunities (O) and Threats (T).
Before we go through the SWOT analysis, first of all let’s identify the competitors
of ICI Paints. ICI is still enjoying a reasonable percentage of market shares. Still
ICI do not consider any company its competitors but the company which is
chasing ICI is Berger Paints. Berger is the only company which has some how
reasonable market share, as main share of the paints market goes to the local paint
manufacturers.
Now we will made assessment through SWOT analysis of both ICI Paints and
Berger Paints.
STRENGTH
ICI Paints Berger Paints
• More than 80 yeas of • Gained reasonable market
experience in the paints share in very short time
industry. period.
• Multinational Company • Comparatively fast supply of
PLc U.K the products.
• World renowned chemicals • Having 2 manufacturing
and paints manufacturers. plants as ICI had only 1
• Having production setup in which helped in improving
more then 55 countries. the delivery of goods.
• Popularity of ICI is much • Good discounts and
more due to its thousands incentives for business
of other products rather partners as compared to ICI
then paints. Paints.
• Having product which has
no competitors.
• Laid new histories in the
paint industries.
• Business volume is very
high as compared to the
competitors.
• Focuses Safety, Security,
Health and Environment as
a corporate social
responsibility.
WEAKNESS
THREATS
Business is one of the largest in the country, which started with the acquisition of
Fuller Paints (Pakistan) Limited. The business manufactures paint for the
Decorative, Refinish and Industrial segments. In Pakistan they are enjoying a state
of monopoly but there is always an opportunity some where. ICI has consistently
developed new and innovative areas of businesses. ICI’s paints brands are some
ICI Should focus to encounter the new off shore paint companies which are
No doubt, some of the brands of ICI are exclusive in the market and still have no
competition, but along with this the low price and high quality products should
The fact that Research and Development of ICI had brought today to the current