TABLE OF CONTENTS

CHAPTER Chapter 01 Chapter 02 Chapter 03 Chapter 04 Chapter 06 Chapter07 Chapter08 Chapter12 Chapter13 Chapter14 Chapter15 Chapter16 Chapter17 Chapter18 Chapter19 PREFACE EXECUTIVE SUMMARY

SUBJECT

PAGE NO.

OBJECTIVE OF THE STUDY METHODOLOGY OVERVIEW OF PAINT IDUSTRY IN INDIA COMPANY PROFILE PRODUCT PROFILE MARKET SURVEY OBSERVATIONS AND FINDINGS SWOT ANALYSIS RECOMMENDATIONS AND FINDINGS LIMITATIONS CONCLUSION BIBLIOGRAPHY APPENDIX

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

In the project the nature of research is exploratory research whereby the efforts have been made by executing the research in HUBLI town. A systematic as well as well-designed

approach has been adopted while conducting research about market characteristics. The problem is that the company seems to have less market share in comparison to its competitors. So the project given to me was to find out the cause behind this and to find out the probable techniques to be applied to overcome the problems. Moreover I had to study the marketing and the promotional activities of the company in the various institutions and convey the schemes and the benefits provided to them by the company. First of all the objective of the study was defined clearly. It is followed by the research methodology adopted which has been defined with the help of collected data. A detailed interpretation of the Indian Paint Industry has been given. The companys history along with its profile is described. The product profile is defined covering the different types of products the company is having. The major players of the industry and their profile are described. The next step was defining the sampling design where by the sample size of 50 was taken for the different institutions viz. Projects and Homes and the target area was HUBLI To facilitate the research work questionnaire method was adopted for the collection of the data as a primary research whereas the secondary data was collected from different books, company library and the other trade / business websites.

Questionnaire contains both open ended questions and close ended questions, on the basis of the feedback the analysis was done with the help of the clear graphical representation by using pie charts, bar graphs and other graphs. The next step was the most important step for looking at the actual findings of the project and recommend to the company what can be incorporated for further improvement.

INDUSTRY OVERVIEW

CHAPTER 1 OVERVIEW OF PAINT INDUSTRY

HISTORY OF PAINTS:Colour has fascinated culture throughout history, every age and every region has produced dyes and pigment depending on the available resources. Colour has been with us for more than 20,000 years. Evidence survives in early cave paintings and the ancient Chinese are considered to have brought its manufacture and use to a state of perfection tens of thousands of years ago. Colour was widely used by the ancient Egyptians and was considered to have magical and healing properties and around this time, 1500 BC, paint making as an art became quite widely established in Crete and Greece with the Egyptians passing their skills to the Romans. It was between 600 BC-AD 400 that the Greeks and Romans then introduced varnishes. For the Aztec Indians red dye was considered more valuable than gold and both the Indians and Chinese practiced Colour Healing. A 2000 year old, Chinese chronicle, The Nei/ching, records colour diagnoses. Yet for all this it was discovered that none of the worlds civilizations has named many col ours. In the 1960s two anthropologists conducted a worldwide study of colour naming. Many languages only contained two colour terms, equivalent to white (light) and black (dark). Of 98 languages studied, the highest number of basic colour terms was to be found in English - where we have eleven: black, white, red, orange, yellow, green, blue, purple, pink, grey and brown. The other millions of colours have 'borrowed' names, based on examples of them, such as avocado, grape, peach, tan, gold, etc. One of the earliest recorded colour discoveries was made by Plato who discovered that by mixing two colours, a third is produced, therefore changing the, 'manufacture', of colour forever. Prior to that the earliest cave paintings were made by using iron oxides, it was the ancient Egyptians who developed other paints from pigments in the soil (yellow, orange, and red). It was the Romans who gave us purple, a pound of royal purple dye, required the crushing of four million mollusks. Cochineal red, discovered by the Aztecs, was made using the female cochineal beetle. A pound of water-soluble extract required about a million insects and it was the Spaniards who introduced the crimson colour to Europe in the 1500's. Later genuine Indian Yellow was
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produced from concentrated cows urine which was mixed with mud and transported to London for purifying, Sap Green from the Blackthorn berry and Sepia Brown from the dried ink sac of squid. Paint is made up of a pigment, a binder to hold it together and appropriate thinners to make it easy to apply. 5000 years ago Blue Frit was the first synthetic pigment being produced by the Egyptians from ground down blue glass. Before the nineteenth century the word 'paint' was only applied to oil-bound types; those bound with glue were called 'distemper'. By 1000 B.C. development of paints and varnishes based on the gum of the acacia tree (better known today as gum arabic) had been developed. At this time umbers, ocher's and blacks were readily obtainable, new colours were also discovered - the first was 'Egyptian Blue'; 'Naples Yellow' dates from around 500 BC and 'red lead' was discovered by accident in about 2500. White lead occurred naturally

but demand encouraged production of manmade versions. Vitruvius describes production of white lead in the 2nd century AD. Before the 16th century, pigment colour was largely dependant on dyestuffs which could be grown in, or were indigenous to Europe and similar temperate regions. Between 1550 and 1850 only the so-called natural dyestuffs were available but the range was greatly extended with tropical dyestuffs from Central America and India and elsewhere. In the 17th century the Dutch greatly increased availability of white lead and lowered cost by invention of the Stack Process. All white lead paints included chalk in their undercoats, reserving purer white lead for finish coats. In1856 the first real synthetic dye, 'Mauveine', was discovered by Henry Perkins. It was then realized that a great many dyes could be made synthetically and cheaply. It was then that Linseed Oil began being mass produced. They also had pigment grade zinc oxide - we call it white paint. Using cast-iron paint mills and zinc-based pigments, industrialists produced the first washable paint marketed as 'Charlton White' in the 1870's (the first ready mixed paint was patented by one D.R. Averill of Ohio in 1867, but it never caught on).

The Sherwin-Williams company spent ten years trying to perfect the formula where fine paint particles would stay suspended in Linseed oil. In 1880 they succeeded in developing a formula that far exceeded the quality of all paints available at the time. It was then that emulsions based on similar formulae, were produced and marketed as 'oil bound distempers'. By 1880 the new paints were readily available in tins, in a wide range of colours, and came to be exported all over the World.

INTRODUCTION TO PAINTS INDUSTRY IN INDIA

The Indian paint industry is over 100 years old. Its beginning can be traced back to the setting up of a factory by Shalimar Paints in Calcutta (now Kolkata) in 1902. Until World War II, the industry consisted of small producers and two foreign companies. After the war, the imports stopped, which led to the setting up of manufacturing facilities by local entrepreneurs. Still, the foreign companies continued to dominate the market. Initially British paint companies such as Goodlass Walls (now Kansai Nerolac), ICI, British Paints (now Berger Paints), Jenson Nicholson and Blundell & Eomite dominated the market. Paint Companies in India bring to you a wide range of paints, varnishes, pigments and coatings for the perfect finishes for the home interior and exteriors dcor and beautification. The paints industry in India has flourished into a full-fledged manufacturing and sale market catering to the international standards being demanded for the painting jobs. Painting is a vital ingredient in any dcor. Different surfaces require different kinds of products. The surfaces may vary from walls - interior, exterior and textured to wood and glass surfaces, metals, faux finishes, doors and handles to cars and special decorative paints for bedrooms and kids rooms and many

such special requirements. The India paints companies have given many products to suit each individual need. You can get all varieties of plastic paint, acrylic paint, primers, emulsions, latex
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paints

etc.

in

wide

spectrum

of

colors

to

choose

from.

Selection of home and office paint goes far beyond just the matching or desired color. The texture and quality of the paint applied is what matters the most for the perfect finish you are looking for. Some of the common problems one might face with the painting jobs done on their surrounding surfaces are blistering, cracking or flaking, blocking, sagging, yellowing, fading or surfactant leaching. The Indian Paints industry is worth more than Rs. 110 billion. The demand for paints is priceelastic but it is linked to industrial and economic growth. In India the organized sector controls 70 percent of the total market with the remaining 30 percent being in the hands of nearly 2000 small-scale units. The industrial paint segment accounts for 30 percent of the paint market while the decorative paint segment accounts for 70 per cent of paints sold in India. In most developed countries, the ratio of decorative paints vis-a-vis industrial paints is around 50:50. Indian paints industry offers lucrative scope for stable revenue streams to manufacturers of both decorative and industrial paints.

The types of paints available in the market and their utility are: Acoustic Paint: It is specially designed for acoustic tiles Alkyd Resin Paint: Best suitable for trim, doors, faux finishes and other maximized use areas. Dripless Paint: This paint is thicker and is most suitable for application on ceilings Latex Paint: The applicability of this paint is easier than most other and it dries much quickly. It is also easier to be washed. One-Coat Paint: It is the more expensive version of the latex and alkyd paints and is mostly chosen for surfaces that require flawlessness in color. Primers: This paint is the initiation for all interior paint works. Rubber-Base Paint: This is best for concrete and bricks. Textured Paint: If need is to cover any flawed surface in your house get this paint. It works well on ceilings. Besides these home decorating and improvement paints and office paint you can also get industrial paints, aircraft paint, airplane paint, aviation paint and many other paint products with the paint shops in India.
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The paint companies in India house a wide range of paint products that cater to all your needs. A whole spectrum of colors with your own textured options and application patterns are available with the paint companies. Each company has its own specialized product and some also offer home paint services. The cost of a painting job may vary with the paint chosen - acrylic, emulsion, primer etc., the paint tools being used and the painting company hired. The industry has also witnessed increased activity in the industrial variety of paints with the entry of MNCs in auto, consumer durables etc, which has been gaining steadily over decorative paints in the last one decade. The typical characteristics of the Indian

paints industry have been discussed in depth covering the typical features of the Indian industry viz., raw material intensiveness, working capital intensiveness, seasonality of demand, price elasticity of demand and low entry barriers. The current global scenario with reference to the paint industry has been covered in the report with special focus on auto-coats market, which is a key growth area in the International market.

While talking about the post independent development of the Paint industry in India, mention must be made of Asian Paints, a completely Indian unit which started on a very small scale, grew so big and so beyond recognition over the years that it is today not only the largest unit in India but way ahead of the second largest, Kansai (Goodlass) Nerolac Paints Ltd., formerly a unit of Goodlass Wall (UK). Besides Asian Paints, numerous factories, wholly Indian in ownership and with rare exceptions in technology as well, were set up in Kolkata, Kanpur and Mumbai. The British units, though a few in number, were technically strong and financially sound and, with the active support and patronage of the Government, controlled a vastly higher share of the market. The post independence period witnessed a steady growth in the paint industry. From a mere Rs.200 million turnover in 1950, the paint industry crossed the Rs.14000 million mark in 1990-91. But even in this period, paints were considered a luxury item. Only people with high incomes were expected to decorate their houses with the use of paints. Paints, as a protective element,
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were totally unheard of. The industrial segment, which was traditionally a low user of paints, vis-vis its counterparts in the decorative segment, too contributed to this notion. In line with this misconceived notion, the government drastically increased duties on paints in the early nineties with an aim to bolster exchequer revenues. The result was obvious. This inevitably brought about a downturn in the fortunes of the industry. The products, which are highly price elastic, saw a negative growth rate of 20 % in 1991-92. The next year was also not good, registering a growth of only 2%, bringing it back to the 1990-91 level, thus corroborating the fact that the industry needed lower excise levels to grow. The industrial slowdown during that period also did not help matters. In line with the liberalized policies and the realization that paints are not necessarily a luxury item, duties were progressively reduced from 1993-94. This squared growth as most companies passed on duty reductions. Further, the entry of world majors in the automobile and white goods market in India since 1993 helped the market to expand. Demand for auto paints shot up suddenly. Form a modest 8% growth rate in 1993-94, paint demand touched 12% in 1995-96. Rapid industrialization and improvements in the infrastructure such as transport, energy and communication during the last decade gave a further fillip to the growth of the paint industry. Aided by Governments liberal policy of technology import, the automotive and consumer durable segments expanded phenomenally, with a flurry of foreign collaboration. Increased demand for decorative,

SWOT ANALYSIS OF INDUSTRY:Strengths

Imp of brand image as barriers to new entrants Good technology backup.

Weakness
Raw materials scarcity Requirement of high working capital Real estate in a depression phase.

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Opportunities
Fiscal incentives provided by Government. Commodity to FMCG. Rise in disposable income

Threats
Foreign companies entering as sole players

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COMPANY OVERVIEW

CHAPTER 2
INTRODUCTION OF COMPANY
HISTORY OF THE ORGANIZATION We embarked our journey in 1920 as Gahagan Paints and Varnish Co. Ltd. At Lower Parel in Bombay. In 1930, three British companies merged to formulate Lead Industries Group Ltd. In

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1933, Lead Industries Group Ltd. acquired entire share capital of Gahagan Paints in 1933 and thus, Goodlass Wall (India) Ltd. Was born. Subsequently, by 1946, Goodlass Wall (India) Ltd. was known as Goodlass Wall Pvt. Ltd. In 1957, Goodlass Wall Pvt. Ltd. grew popular as Goodlass Nerolac Paints (Pvt.) Ltd. Also, it went public in the same year and established itself as Goodlass Nerolac Paints Ltd. In 1976, Goodlass Nerolac Paints Ltd. became a part of the Tata Forbes Group on acquisition of a part of the foreign shareholdings by Forbes Gokak. In 1983, Goodlass Nerolac Paints Ltd. strengthened itself by entering in technical collaboration agreements with Kansai Paint Co. Ltd., Japan and Nihon Tokushu Toryo Co. Ltd., Japan. In 1986, Goodlass Nerolac Paints Ltd. turned into a joint venture of the Tata Forbes and the Kansai Paint Co. Ltd., with the latter acquiring 36% of its share capital. In 1999, Kansai Paint Company Ltd., Japan took over the entire stake of Tata Forbes group and thus KNP became a wholly owned subsidiary of Kansai Paint Company Ltd. In 2006, on the 11th of July, Goodlass Nerolac Paints Ltd. name has been changed toKansai Nerolac Paintss Ltd. During the journey of continuous performance excellence, we have entered in to many technical collaborations with other industry leaders such as E.I. Du-Pont de Nemours & Company Inc., USA and Oshima Kogya Company Ltd., Japan for our different products. Our incessant journey of successes will go on backed by our present human asset of over 2000 professionals and a sales turnover of Rs. 1484 crores. We are esteemed to be a subsidiary of Kansai Paint Company Limited, which is the largest paint manufacturing company in Japan and among the top ten coating companies of the world. We are the second largest coating company in India with a market share of over 20%. We are the market leader in industrial / automotive segment supplying over 90% of the OEM requirements. We are the leader in powder coatings.

VISION VALUES AND CULTURE In todays dynamic business environment, no organization can afford to survive without a wellarticulated and carefully thought vision stating the overall strategic direction and long-term future of its business.
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We 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 our vision to leverage global technology, for serving our customers with superior coating systems built on innovative and superior products and world class solutions, to strengthen our leadership in Industrial coatings and propel for leadership in Architectural coatings, all to the delight of our stakeholders. We firmly believe that it is not only the vision of where we wish to go which will form a cornerstone of all our further growth, but also our conviction to the fact that the values based proposition has to be ultimate foundation of our business. To this end we consciously have internalized and been practicing these values in all our business transactions though human beings: Innovation Entrepreneurial Responsive Simplicity Team Orientation

OBJECTIVE OF COMPANY:

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The management of kansai nerolac decided some objectives to become topper in the market. And the objectives are: o o o o o o Better quality then other company. Fair returns to share holders. A higher productivity to cover maximum market. Maximum customer satisfaction. Clean & healthy Environment for employees growth. Try to lower pollution to fulfillment of social responsibilities

THE QUALITY POLICY It is the philosophy of Kansai Nerolac Paintss Ltd., and its associates to achieve complete customer satisfaction by providing products and services that consistently meet or exceed the customer needs and expectations, pursuant to agreed specifications, delivery schedules and competitive prices. It is the philosophy of the company to systematically operate its manufacturing facilities by inculcating commitment to total quality management at all levels and on a continuous basis with a view to achieving First Time Right results in manufacture, services and other operations. It is the companys aim to constantly reduce waste of material and effort, increase efficiencies and ensure safety of plant and people and protection of the environment

OPEN DOOR POLICY Working together requires that we have a friendly atmosphere based on trust and respect amongst all of us. At Nerolac we follow an Open Door policy. Any person is free and welcomed to share good idea, suggestion, doubt, problem about job or work place, or uncertainties about ones future in the organization. An open and transparent communication is appreciated.

SOCIAL RESPONSIBILITY
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The company continues to make its due contribution to community relief and development activities and has donated both in cash and kind for the beautification of some public places in Mumbai and elsewhere. The company continued its activities directly or indirectly through trusts/agencies in community Development and Social Welfare including contributions towards national defense, medical help, education, improvement of environment etc. ORGANIZATIONAL STRENGTHS An organization is not set on pillars of brick and concrete but is set on strong inherent characteristics that make it strong for years! Nerolac is carrying on strong since 1920. Following are its strengths that have kept this company in good faith. STRONG VISION AND VALUES Nerolac is a company with very clear and well-defined vision and very strong values. Clarity of vision and strong foundation of cultural values have always kept this company in good stead. Its ethical conduct has always guarded it against any possible traps and pit falls. We have made sure that the distribution hurdles and the climatic vagrancies do not affect the quality of our services. This same commitment will ensure that Kansai Nerolac will march towards its centennial year, fully dedicated and invigorated, in step with the exciting wave of industrialization and modernization pervading through the new India

ORGANIZATIONAL STRUCTURE A sale organization is both an orienting point for co-operative endeavor and a structure of human relationships. It is a group of individuals striving jointly to reach qualitative and bearing formal and informal relations to one another. Existence of a sales organization implies the existence of patterns of relationships among subgroups and individuals established for purposes of facilitating accomplishment of the group's aims. A good and efficient sales organization is the foundation for execution of sales policy and sales program me. The concept of organizational structure is somewhat abstract and illusive. However it is real and effects everyone in the organization.
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According to March and Siman, "Organizational structure consists of those aspects of pattern of behaviour in the organization that are relatively stable and change only slowly."

It facilitates the growth of the organization. It stimulates creative thinking and initiative by proving well defined are of work with provisions for development of new and improved ways of working.

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Organizational Structure:MD

VP Marketing & Sales

VP Finance

VP Operation

GM Sales

GM Marketing

DSM

ASM

ASE

TSE

TSO 18 TSS

PRODUCT PROFILE OF KANSAI NEROLAC PAINTS LTD.

PRODUCTS

DECORATIVE PAINTS Decorative Paints

(1) Walls

INDUSTRIAL PAINTS

Interior Water Based Paints EMULSION NEROLAC IMPRESSION 24 CARAT PREMIUM LUXURY EMULSION Product Description Nerolac Impression 24 Carat Premium Luxury Emulsion is a premium quality Architectural coating specially formulated by using pure acrylic latex, and high opacity micronised pigments so as to impart smooth velvet finish, with excellent wash ability. Performance Features & Benefits Smooth Velvety Finish with Sheen Excellent Flow & Brushability Excellent Washability & Stain Resistance
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Very good Antifungal Resistance Ease of application Low odour.

NEROLAC IMPRESSION METALLIC Product Description Nerolac Impression Metallic is a premium quality water base special effect designer series range that creats a variety of special effects and textures on interior walls and is based on pure acrylic emulsion Performance Features & Benefits Smooth Velvety Finish with Sheen Excellent Flow & Brushability Excellent Washability & Stain Resistance Very good Antifungal Resistance Ease of application Low odour. Good aesthetic look Can make various designs with different application tools

NEROLAC DISNEY EMULSION Description: Nerolac Disney Emulsion is a water-based, premium super luxury interior wall finish. It provides a distinctly rich, velvety smooth with exquisite satin finish. Ideal base coat for Disney stencil application and for superior results. Properties: It offers excellent washability and superior stain resistance. No added lead, mercury or chromium compounds. Designs: Nerolac Disney Emulsion has beautiful designs of Micky & family, Pooh and Princess.
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Packaging: Nerolac Disney Emulsion is available in 1lt attractive pack. Along with this one set each of stencil kit and tool kit is required for one complete design.

DISTEMPER

NEROLAC BEAUTY PREMIUM ACRYLIC DISTEMPER Product Description Nerolac Beauty Premium Acrylic Distemper is supplied in paste form, and it can be used for the decoration of fully matured plasterwork, concrete, brickwork and asbestos surfaces. The paste is bound with a stable acrylic medium. Performance Features & Benefits Premium Acrylic Distemper Ease of application Good washability Eye soothing matt finish.

NEROLAC BEAUTY ACRYLIC DISTEMPER Product Description Nerolac Beauty Acrylic Distemper is supplied in paste form, and it can be used for the decoration of fully matured plasterwork, concrete, brickwork and asbestos surfaces. The paste is bound with a stable acrylic medium. Performance Features & Benefits Economical Distemper Ease of application
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Good washability Eye soothing matt finish.

NEROLAC BEAUTY OIL BOUND DISTEMPER Product Description Nerolac Beauty Oil Bound Distemper is supplied in paste form and it can be used for the protection and decoration of fully matured plasterwork, concrete, rickwork and asbestos surfaces. The paste is bound with a stable oil emulsion medium. Performance Features & Benefits Ease of application. Good wash ability Eye soothing matt finish.

Solvent Based Paints

(I) Nerolac Pearls Lustre Finish

NEROLAC PEARLS LUSTRE FINISH Brand Name Nerolac Pearls Lustre finish is a Special Interior Wall paint that captures the magic glow of pearls and the intrinsic resilience of the shell. Thus, this paint very rightly stands for "Ornamentation for walls". This is a special product for interior use, developed by incorporating selected pacifying pigments dispersed in a specially formulated medium. Performance Features & Benefits Silky finish with pearly sheen Excellent stain resistance Very good washability
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Good applicability Tough and hard film.

ENAMEL

NEROLAC SYNTHETIC ENAMEL Product Description Nerolac Synthetic Enamel is a time tested and proven, high quality alkyd based enamel incorporated with best quality opacifying and light fast pigments. Performance Features & Benefits Excellent Water Repellency Good Stain Resistance Excellent flow characteristics to form smooth and uniform finish Excellent Hardness and Durability Excellent Gloss.

NEROLAC SATIN ENAMEL Product Description Nerolac Satin Enamel is specially formulated to give an excellent smooth finish resembling the smoothness of satin to masonry, wood and metal surfaces. It can be easily cleaned to give new look to the surface. Performance Features & Benefits
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Very smooth satin like appearance Good wash ability Very good flow and brush ability Hard durable film.

NEROLAC IMPRESSION HI-PERFORMANCE ENAMEL Product Description Nerolac Impression Hi-Performance Enamel is a specially designed coating having a judicious blend of high quality resin & light fast pigments. It is recommended for suitably primed interior & exterior wooden, masonry and metal surfaces. Performance Features & Benefits Super sleek and shiny finish with special anti-fungal formula to Provide protection from fungus. Excellent gloss and gloss retention. Excellent colour and colour retention Excellent flow characteristics to form smooth and uniform finish Excellent durability Up to 30% more coverage than popular enamels.

NEROLAC IMPRESSIONS EXCEL TOTAL ALL IN ONE ACRYLIC EXTERIOR EMULSION Product Description Nerolac Impressions Excel Total All In One Acrylic Exterior Emulsion is high performance premium water based, long lasting exterior paint, with UPF (Ultimate Paint Formula). It is formulated to suit the extreme tropical conditions of high rainfall, humidity and heat. The product is based on 100% Acrylic resin and hence it forms a tough and flexible protective film, with an excellent bonding to the substrate, which prevents peeling off or cracking for years together. It contains special type of emulsion which gives Excellent Dirtpickup Resistance and
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Excellent Sheen. 1`All In One Acrylic Exterior Emulsion contains a unique combination of surface protectants, which are released slowly over a long period of time. This actively helps not only to prevent the fungal and algae growth, but also, ensures constant surface activity against these irritants for a long period. It also offers a 7 year warranty*

Performance Features & Benefits Excellent Dirt Pick up Resistance Excellent resistance to fungal and algae growth 7 year warranty* Excellent out-door durability Very good colour retention Smooth & High Sheen finish Easy to apply and maintain

NEROLAC SURAKSHA ADVANCED PLASTIC EXTERIOR PAINT Product Description Nerolac Suraksha Advanced Plastic Exterior Paint is an economical water thinnable coatings, specially designed for application on exterior walls in dry or moderatey humid climatic conditons. It has good Washability, Anti-Algal & Anti Fungal properties. Performance Features & Benefits Economical water thinnable coating Better outdoor durability Smooth and pleasing finish with Sheen Performance much superior to cement paint
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No need of curing.

NEROLAC SURAKSHA PLASTIC EXTERIOR PAINT Product Description Nerolac Suraksha Plastic Exterior Paint is an economical water thinnable coatings, specially designed for application on exterior walls in dry or moderately humid climatic conditons. Nerolac 'Suraksha' is much superior to normal cement paint coatings in respect to exterior durability, finish, washability and resistance to fungus / algae. Performance Features & Benefits . Economical water thinnable coating Better outdoor durability Smooth and pleasing finish

NEROLAC SATIN ENAMEL Product Description Nerolac Satin Enamel is specially formulated to give an excellent smooth finish resembling the smoothness of satin to masonry, wood and metal surfaces. It can be easily cleaned to give new look to the surface. Performance Features & Benefits Very smooth satin like appearance Good washability Very good flow and brushability Hard durable film.

NEROLAC SYNTHETIC ENAMEL Product Description Nerolac Synthetic Enamel is a time tested and proven, high quality alkyd based enamel incorporated with best quality opacifying and light fast pigments.

Performance Features & Benefits Excellent Water Repellency

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Good Stain Resistance Excellent flow characteristics to form smooth and uniform finish Excellent Hardness and Durability Excellent Gloss.

DISTRIBUTION NETWORK
Kansai Naerloc paint in 24 State in India and 68 sales Depots.The distribution system is taken care by area sales managers and executives. The executives keep canvassing the market and meeting the dealers to get the orders. Asian paints has around 12000 dealers who are catered to by the sales xecutives. The orders are collected by the sales executives and passed on to the nearest depot. The depots are fed by regional warehouses. These depots maintain a minimum order quantity which is arrived at from the monthly demand forecast. The material is dispatched from the depot in the name of the dealer. Generally some orders of the same region are clubbed together and dispatched in trucks. Finally the truck is unloaded and the small orders of the dealers are dispatched to them. The The sales executives are also responsible for the collection of outstandings. Generally paint companies allow a maximum outstanding of 2-3 lakhs for 45 days. Other jobs of the sales team consist of grievance redressal and customer feedback.

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SWOT ANALYSIS
STRENGTH:
Well Establish Brand: Nerolac Paints is 90 year old brand. Kansai Nerolac is at third Position in the world. Quality driven: While its competitors concentrate more on variety and mass production and a lot of other different strategies, the company is essentially a quality centric company. This has helped the company grow and sustain its brands First Mover Advantage

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Nerolac was started in 1920. So company has first mover advantage. Company was started LEAD free products. Innovation in Research and Develpoment "Compete through Innovation" The keystone of kansai Nerolac's success has been its investment in technology and the importance given to Research and Development. The company has, over the years, set up excellent facilities for developmental research, improving its manufacturing processes and continuously innovating on its products.

People:Nerolac is a company, which considers its people as one of its strengths. Nerolac has always valued its employees. Recruitment thus becomes very important activity at Nerolac. Employees that add value to the organization are suitably awarded & rewarded to keep the fire live & going.

WEAKNESS:
Weak Distribution Company has less dealer network in compare to competitor . Company has around 12000 dealer in India.

Products Awareness Kansai Nerolac products Brand awareness is very less.

OPPORTUNITY:
Greater Penetration One of the biggest opportunities KNP has in India is to become the positioned leader in all parts of the country. At present, there is very less penetration of KNP brands in the rural market. KNP could reap great profits coming from the rural areas as well. Real Estate Boom

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The real estate boom which is gaining momentum by the day, is a great boon to the entire paint industry. This would actually be a good opportunity for all of the industry to cash in on their profits.

THREAT:
Loss Of Loyal Customers Because KNP is one of the oldest and one of the most bankable brands in the market today, it has a lot of demand as well as appeal among consumers. With a lot of innovations and a lot of movement in the market, the loyal consumer might just get inquisitive and opt or a competitor brand. A study shows that most loyal brand users opt for new brands because boredom sets in and change seems to be a great option.

INFLUENCER PERCEPTION
Today, customer is the King of the market. He is the one, who is to decide what should be served to him, whether it may be a product or service. To survive in todays competitive market, one has to improve its service quality and also specialize its services according to the changing needs of the customer. Thats why many companies, nowadays, are setting up grievance cells,feedback mechanism. Problem resolutiondepartments, customer care services and againsome are also hiring agencies for conducting market survey to know Consumers
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perceptionabout the company, companys products and services. One has to devise its products and/or services according to the costumers needs and desires.

Today, marketing sector is crowded with too many big player. They are consistently working on improving their service quality and also observing the market & consumer behavior to specialize their service accordingly. It is said that when a company knows the customers varying needs & desires and having a mechanism to study the changes, half a work is done. Then it can very well formulate his strategy to spread into the market. Again, when he is up to date, he is obviously in an advantageous position than his competitors.

keep pace with the change, one has to work consistently and continuously

Advantages are that it is free of classification error, and it requires minimum advance knowledge of the population. best suits situations where not much information is available about the population and data collection can be efficientl conducted on randomly distributeditems. If these conditions are neither false nortrue, stratified sampling may be a better choi sampling or cluster

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RESEARCH METHODOLOGY

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CHAPTER-4 RESEARCH METHODOLOGY

Research methodology is used to search answers of the research questions. An attempt has been made to describe the nature of the builders of Hubli city by the study of the samples. SAMPLE PLAN To know the position & perception of NEROLAC PAINTS in the Hubli region regarding sales and brand equity in comparison with the other brands on the basis of attributes of paint has been done. For this purpose, opinion of contractors and builders has been taken. This might be helpful to draw the right picture about the market scenario. This was convenient in nature because I would have to account only those people who actually require or purchase paint. The survey is conducted with the help of questionnaire method and survey is conducted in the Hubli region. Survey of BUILDERS and Painters and Archeticts. has been done for the analysis. Sample size: 50 Data Collection Every type of research requires two types of data to be collected to reach up to any conclusion. Primary Data are those data, which are directly obtained from people by approaching them individually; primary data are generated when the researcher employing mail questionnaire, telephone surveys, personal interviews, observations and investigates a particular problem at hand. For this project primary data was collected from contractors and builders and Painter by using survey method. Data collection from respondents was carried out with the help of a structured interview schedule. In this method data was collected from respondents through questionnaires. I made a survey based on the questionnaire. The mode of survey was directly contacting the people and recording their response based on well-defined questions and also through telephone. Secondary Data, on the other hand, includes those data, which are collected in the past for other research work and are being used in current project work. Secondary Data, such as procedures of marketing for paint, marketing conditions, brief details of NEROLAC paint and other competitors, price, quality, and other strategy and planning, specification in relation to other paint companies, all other information which can be useful to complete this project, was collected from different resources.

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SOURCES OF DATA

Primary Data

Secondary Data

Questionnaire Observation Interviews

Newsletter Journals Magazines Newspapers Books

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SCOPE OF THE STUDY The research had been conducted in Hubli in the month june_Augest 2013 . We contacted builders and contractors in different areas of Hubli city for fieldwork. The research not only partially fulfilled the requirement of MBA degree program but also learned a lot in the field of marketing research. This project gives an opportunity of implementing his theoretical knowledge of management curriculum in practical life and will learn a lot from practical experiences during this research. Type of Research exploratory Type of Data Primary Method of Data collection Survey Research Instrument - Structured Schedule Sampling Method non parametric Sample Size 50 Sampling Unit Builders and contractors

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LIMITATIONS OF THE STUDY: The successes of any research work depend on the response of the respondent. But sometime the response is not sufficient due to these following reasons Respondents generally have less time to respond. Sometimes they are confusing in their response due to lack of knowledge. Some persons are not willing to disclose the truth. Their attitude towards people representing a company. The time constraint faced in the project might have affected the comprehensiveness of its

findings.

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OBJECTIVE OF STUDY

1) To determine the preference level of Nerolac paints in comparison to the

other companies paint in the different in projects

2) To know the awarenes level of Nerolac paint in a construction stream

3) To Identify the requirements of builder and arechites and painter in the paints 4 ) To analysis perception regarding the preference of Nerolac Paints 5) To promote the Nerolac company products into the projects

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OBSERVATION & ANALYSIS

How long have you been in this profession ? Cumulative Percent 16.0 100.0

Valid

2- 5 Year s Above 5 Year s Total

Frequency 8 42 50

Percent 16.0 84.0 100.0

Valid Percent 16.0 84.0 100.0

How long have you been in this profession ?

2- 5 Year s Above 5 Year s

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INFERENCE:
In the study Area It is found that only 16% of builers and archetict have entred the business in the business in the last 5 year and 84% people are entered more than 5 yeareOn

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Among various constructioin needs where do you serve ? Valid Percent 72.0 28.0 100.0 Cumulative Percent 72.0 100.0

Valid

Residential commercial Total

Frequency 36 14 50

Percent 72.0 28.0 100.0

Among various constructioin needs where do you serve ?

40

30

Frequency

20
36

10
14

0 Residential commercial

Among various constructioin needs where do you serve ?

INFERENCE:
In the study Area it is found that 72% respondents are in stream of Residential and in the commercial 28% respondents are serving in stream of commercial

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Kindly priortize the below mentioned parameters which you will consider while buying any materials for your project ? Cumulative Percent 28.0 60.0 100.0

Valid

Quality Brand name Product performance Total

Frequency 14 16 20 50

Percent 28.0 32.0 40.0 100.0

Valid Percent 28.0 32.0 40.0 100.0

Kindly priortize the below mentioned parameters which you will consider while buying any materials for your project ?

Quality Brand name Product performance

14

20

16

INFERENCE:
In the study area it is found that only 28% respondents are more constrate on quality and 32% are respondents are brand Name and 40% respondents are constrate on more Product Performance

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Do advertisements influence you to make buying decisions ? Cumulative Percent 92.0 100.0

Valid

Yes No Total

Frequency 46 4 50

Percent 92.0 8.0 100.0

Valid Percent 92.0 8.0 100.0

Do advertisements influence you to make buying decisions ?

Yes No

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__ INFERENCE: In the study Area it is found that 98% resondens are advertisement is the most effective media To aware of product and 2% respondents are not agree to the advertisement is effective

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Which media of advertisement do you consider are more effective ? Cumulativ e Percent 8.0 86.0 100.0

Frequency Vali d News paper/ magazine Television Other sources Total 4 39 7 50

Percent 8.0 78.0 14.0 100.0

Valid Percent 8.0 78.0 14.0 100.0

Which media of advertisement do you consider are more effective ?

80

60

Percent

40

78.00%

20

14.00% 8.00%

0 News paper/ magazine Television Other sources

Which media of advertisement do you consider are more effective ?

__

INFERENCE: In the study area it is found that78% respondents are give Television is more efficative and 14% respondents give other source is efficative and News paper is it takes 8 % is efficative in the advervtisement

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Which paint brand are you useing in your projects ? Frequenc y 11 24 1 14 50 Valid Percent 22.0 48.0 2.0 28.0 100.0 Cumulative Percent 22.0 70.0 72.0 100.0

Vali d

Nerolac Asain Paints Berger Ici Total

Percent 22.0 48.0 2.0 28.0 100.0

Which paint brand are you useing in your projects ?

50

40

30

Percent

48.00%

20

28.00% 22.00%

10

2.00%

0 Nerolac Asain Paints Berger Ici

Which paint brand are you useing in your projects ?

__

INFERENCE: In the study area it is found that the 48% respondents are using Asain paints and 28% respondents are using Ici and 22% respondents Nerolac and 2% respondents are using berger paints

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Are you aware of Kansai Nerolac Paints Ltd ? Cumulative Percent 98.0 100.0

Frequency Valid Yes NO Total 49 1 50

Percent 98.0 2.0 100.0

Valid Percent 98.0 2.0 100.0

Are you aware of Kansai Nerolac Paints Ltd ?

Yes NO
2. 00 %

INTERPRETATION:
In the study area it is found that 98% respondents are aware of Nerolac company and they have good feedback about nerolac and rest of 2% respondents are not aware of Nerolac

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Did you know KNP is the 2nd largest paint company of India ? Cumulative Percent 36.0 100.0

Valid

Yes No Total

Frequency 18 32 50

Percent 36.0 64.0 100.0

Valid Percent 36.0 64.0 100.0

Did you know KNP is the 2nd largest paint company of India ?

60

Percent

40

64.00%

20
36.00%

0 Yes No

Did you know KNP is the 2nd largest paint company of India ?

INTERPRETATION: In the study Area it is found that 64% respondents are not aware of Nerolac is 2 largest company

In the paint line of production 36% respondents are aware Nerolac is 2 largest company

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If answer for above question is yes then how did you come to know about Nerolac Paints ? Cumulative Percent 90.0 100.0

Valid

Advertisement Others Total

Frequency 45 5 50

Percent 90.0 10.0 100.0

Valid Percent 90.0 10.0 100.0

If answer for above question is yes then how did you come to know about Nerolac Paints ?

Advertisement Others

10.00%

90.00%

INTERPRETATION:: In the study Area it is found that 95% respondents are aware through advertisement and Rest 2% of other respondents are aware through Other source Company has to strong in the media line then it shows the impact of products__

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According to you compared to other paints Nerolac Paint is ? Cumulative Percent 36.0 92.0 100.0

Valid

Excellent Good Average Total

Frequency 18 28 4 50

Percent 36.0 56.0 8.0 100.0

Valid Percent 36.0 56.0 8.0 100.0

According to you compared to other paints Nerolac Paint is ?

60

50

40

Percent

30
56.00%

20
36.00%

10

8.00%

0 Excellent Good Average

According to you compared to other paints Nerolac Paint is ?

INTERPRETATION:
From the above table we can conclude that the major numbers of 56% respondents felt the paint from Kansai Nerolac are good when compared to others and 36% respondents are have excellent opinion and 8% respondents are opnion is Average

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What is the source of Procurement ? Cumulative Percent 98.0 100.0

Valid

Dealers other Total

Frequency 49 1 50

Percent 98.0 2.0 100.0

Valid Percent 98.0 2.0 100.0

What is the source of Procurement ?

Dealers 3
2. 00 %

INTERPRETATION: In the study area it is found that 98% respondents procurement is Dealer and Other are 2% respondents are procured other source

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What kind of Paints do you prefer for your Projet ? Cumulative Percent 56.0 60.0 100.0

Valid

Premium Medium Economy Total

Frequency 28 2 20 50

Percent 56.0 4.0 40.0 100.0

Valid Percent 56.0 4.0 40.0 100.0

What kind of Paints do you prefer for your Projet ?

60

50

40

Percent

30
56.00%

20

40.00%

10

4.00%

0 Premium Medium Economy

What kind of Paints do you prefer for your Projet ?

INTERPRETATION: From the study it is observed that 56% of respondents are prefer premium paints, 04% of respondents are prefer for medium paints,40%of respondents are economy paints. from the above table it is clear that premium is 56% it is a first preference is the first and another medium paints is a second preference. Economy is a not better than to premium and medium.

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Quality ? Cumulative Percent 68.0 100.0

Frequency Valid High satisfied Satified Total 34 16 50

Percent 68.0 32.0 100.0

Valid Percent 68.0 32.0 100.0

Quality ?

High satisfied Satified

32.00%

68.00%

INFERENCE: In the study area it is found 68% respondents high satisdied with Nerolac products and 32% respondents satisfied with quality of paint

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__

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Price ? Cumulative Percent 34.0 90.0 100.0

Valid

High Satisfied Satisfied Dissatisfied Total

Frequency 17 28 5 50

Percent 34.0 56.0 10.0 100.0

Valid Percent 34.0 56.0 10.0 100.0

Price ?

60

50

40

Percent

30
56.00%

20
34.00%

10

10.00%

0 High Satisfied Satisfied Dissatisfied

Price ?

INTERPRETATION: In the study area it is found that 56% respondents satisfied with price and 34% respondents are high
satisfied with price and 10 % respondents dissatisfied with price .

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Availability ? Frequen cy 6 22 21 1 50 Valid Percent 12.0 44.0 42.0 2.0 100.0 Cumulativ e Percent 12.0 56.0 98.0 100.0

Vali d

High satisfied Satisfied Highly dissatisfied 5 Total

Percent 12.0 44.0 42.0 2.0 100.0

Availability ?

50

40

30

Percent

44.00% 42.00%

20

10
12.00%

2.00%

0 High satisfied Satisfied Highly dissatisfied 5

Availability ?

INTERPRETATION:
From the above table we can conclude that the major numbers of respondents are satisfied with the availability of the company paints, 44% and 42% highly dissatisfied with availability and 12 % respondents are highly satisfied with availability

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Company Response ? Frequenc y 3 3 33 11 50 Valid Percent 6.0 6.0 66.0 22.0 100.0 Cumulative Percent 6.0 12.0 78.0 100.0

Vali d

High satisfied Satisfied Dissatisfied Highly Dissatisfied Total

Percent 6.0 6.0 66.0 22.0 100.0

Company Response ?

60

Percent

40

66.00%

20

22.00%

6.00%

6.00%

0 High satisfied Satisfied Dissatisfied Highly Dissatisfied

Company Response ?

INTERPRETATION: In the study area it is found 6 % respondens are high satisfied with company response And 6% respondents are satisfied the response 66% respondents are dissatisfied with company response 22% respondents are highly dissatisfied

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Range of Products ? Cumulative Percent 64.0 98.0 100.0

Valid

High satisfied Satisfied Dissatisfied Total

Frequency 32 17 1 50

Percent 64.0 34.0 2.0 100.0

Valid Percent 64.0 34.0 2.0 100.0

Range of Products ?

60

Percent

40

64.00%

20
34.00%

0 High satisfied Satisfied

2.00%

Dissatisfied

Range of Products ?

INTERPRETATION: In the study Area it is found that 64% are High satisfied with range of products and 34% respondents are satisfied with products and only 2% respondents are dissatisfied with range of product

__

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Rank of following companies on the basics of brand name of their products ? Cumulative Percent 52.0 68.0 100.0

Valid

Asain Paints Nerolac Ici Total

Frequency 26 8 16 50

Percent 52.0 16.0 32.0 100.0

Valid Percent 52.0 16.0 32.0 100.0

Rank of following companies on the basics of brand name of their products ?

60

50

40

Percent

30
52.00%

20
32.00%

10
16.00%

0 Asain Paints Nerolac Ici

Rank of following companies on the basics of brand name of their products ?

__

INFERENCE: The interpretation drawn from the above Bar chart states that 52% of the customers preferred Asian Paints when they choose paints according to brand name. While 32% of the customers preferred Ici Paints. And 16% of the customers choose nerolac Paints for painting. 10% of the customers preferred

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Findings AND SUGGESTIONS

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Findings
1) This Company has a Wide range of Product line In the Study Area Nerolac company having wide range products line example 8 Interior product and 5 exterior product are available in the market

2) Good Feed back In the Quality of Product In the 50 respondents most of all are happy with quality of product and they dont have Less complaint about Nerolac Product

3) It is very difficult to mention loyal customer In the field of paint mention loyal customer very difficult because customer are Using all kind of company products . 4) Promoters hardly Prefer Nerolac paints In study area the respondts are I found that are hardly using nerolac paints they are using Competative brands 5) Promoter dont have knowledge about Nerolac product futures The respondents are aware about Nerolac company products but they not aware product line

6) Nerolac doesnt give demo advertisement to promoters In the study area respondents want demo to the big projects but company couldt give this facility

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7) In the study Area less Distribution Network of Nerolac Product In the study area Hubli less dis titribution network in Area of study only 30 counter are there 8) Less Promotion in the local market In the local studyof area less promotion in the market like there is no Nerolac company Hoardings

9) Nerolac least tried to meet the Promoters In the study area the company least tried attract the promoters

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CONCLUSION AND SUGGESTIONS Conclusions followed by recommendations form the basis of the report more solid. The conclusion proves the analysis that is carried out in the report and on the basis of these conclusions, recommendations are given. In the report under study, it was found through the survey that Kansai Nerolac Paints, is lacking popularity due to the less cons traction on the advertising policy.. In the survey and analysis it was found that the Buying Behavior of the customers depends on variety of factors like Cost, Quality, Durability, Color Varity and some other factors.

Company has start in awards to the Promoters like good Painter and good engineer like in the teritary level

Motivate to Union In the study area there is no support to the Promoters company has to support and motivate Promoters

Human Resource The Company Has to appoiont human Resources. For particular Projects and they need to meet the Promoters .

Realationship

In the teritary level company has to mention good relationship the union And company has to offer something and wish them while festivals time

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Motivation

Company has to set points to promoters it will be impact of sales In the study Area Ici company give points to the painter but ici fail to attract the painter So Nerolac has to comeup with innovative tool to attract

The company has to conduct workshop to Promoters

Company has to conduct workshop to the Painter it will help to promote the products and mainly they also suggest to other to buy

Advertisements The company has to give Demo advertisement to give to big Projects Then only the promoters will suggest and purchase the Paint

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Kansai Nerolac has less dealer network in comparison to Asian Paints. So increasing the dealer network or market presence increase the availability of the product in the market that will increase market share also.

Product Company should focus on their product company has to set brand image to promoters like Asain

Price Company should focus on their Price. Because company need to think about Price

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Questionnaire
I Parvatagouda Patil the student of Chetan Business School Hubli, I am undertaking a project on consumer perception about KANSAI NEROLAC PAINTS LIMITED. It is a part of MBA Curriculum. I request you to spare your valuable time and provide the information. I ensure that information furnished by you is used for academic purpose only.

NAME NAME OF PROJECT CONTACT NO. LOCATION PROFESSION

1. How long have you been in this profession a. 0-1 year b. 1-2 years c. 2-5 years d. above 5 years

2. Among various construction needs where do you serve

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a)

Commercial, b) Indsturial c) New construction

d) family Resedinal

3. How Many Project have you undertaken this year? ....

4. Do you prefer Local Brands or International Brands? .

5.Do Ranking of following parameters for your choice of paint (1 to 5). (a) 1) 2) 3) 4) Quality (b)Brand Name (c) Competitive Rates (d)Product Performance (e) coverage

6. Do advertisements influence you to make buying decisions? a) Yes b) No

7. Which media of advertisement do you consider are more effective? a) c) News paper/magazine Hoarding b) d) Television Other sources

8. Which paint brand are you using in your projects? (a) Nerolac (b) Asian paints (c) Berger (d) ICI (e) Other(Please specify)..

9. Are you aware of Nerolac Paints a) yes b) No

10.Do you know KNP is the 2nd largest paint company of India? a) Yes b) No
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11..How did you come to know about Nerolac Paints a. Advertisement b. News Papers c. Hoardings d. Others

12. According to you, compared to other paints, Neorolac Paints is a. Excellent b. Good c. Average d. Poor

13. What is the source of Procurement? a. Dealers b. Others

14. Which kind of paints do you prefer? a. Premium b. Medium c. Economy

15. What is your opinion on the NEROLAC PAINTS? A) Quality 1. High Satisfied 2. Satisfied 3. Neither Satisfied nor dissatisfied
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4. Dissatisfied 5. Highly Dissatisfied

B) Price 1. High Satisfied 2. Satisfied 3. Neither Satisfied nor dissatisfied 4. Dissatisfied 5. Highly Dissatisfied

C) Availability 1. High Satisfied 2. Satisfied 3. Neither Satisfied nor dissatisfied 4. Dissatisfied 5. Highly Dissatisfied

D) Company Response 1. High Satisfied 2. Satisfied 3. Neither Satisfied nor dissatisfied 4. Dissatisfied 5. Highly Dissatisfied

E) Range of Products 1. High Satisfied 2. Satisfied

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3. Neither Satisfied nor dissatisfied 4. Dissatisfied 5. Highly Dissatisfied

16. What is your Satisfaction level before you purchase NEROLAC PAINTS? 1. Highly Satisfied 2. Satisfied 3. Neither Satisfied nor dissatisfied 4. Dissatisfied 5. Highly Dissatisfied

16. Ranking of following companies on the basis of Brand Name of their products? (a) 1) 2) 3) 4) 5) Asian paint (b) Nerolac (c) Berger (d) ICI (e) other

17.Do you have any complaints about Nerolac Products? Mention the top two. .......................................................................................................................... .........................................................................................................................

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18. Any suggestions for Nerolac Paint products so that they are more customer friendly?

Thank you for your kind cooperation, valuable inputs and time. `

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BIBLIOGRAPHY:

www.nerolacpaints.com

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