WINTER TRAINING REPORT

on

A BRIEF STUDY OF DISTRIBUTION CHANNEL

OF PAINTS WITH PARTICULAR REFERANCE TO KANSAI NEROLAC PAINTS LTD.

Submitted in partial fulfillment of the requirements of

Post Graduate Programme

by

ASHUTOSH DUBEY
Batch: 2017-19
Roll No.(STEP-17-009)
STEP – HBTI
 DECLARATION
I hereby declare that the Project work entitled "A BRIEF STUDY OF DISTRIBUTION CHANNEL OF

PAINTS WITH PARTICULAR REFERANCE TO KANSAI NEROLAC PAINTS LTD." submitted

by me for the Winter Internship during the Post Graduate Program to STEP HBTI KANPUR is my

own original work and has not been submitted earlier either to STEP HBTI or to any other Institution for

the fulfillment of the requirement for any course of study. I also declare that no chapter of this manuscript

in whole or in part is lifted and incorporated in this report from any earlier / other work done by me or

others.

Signature of Student: _____________

Name of Student: ASHUTOSH DUBEY

Date:

Place:
 CERTIFICATE

This is to certify that project report entitled “A BRIEF STUDY OF DISTRIBUTION

CHANNEL OF PAINTS WITH PARTICULAR REFERANCE TO KANSAI NEROLAC
PAINTS LTD." which is submitted by ASHUTOSH DUBEY (STEP-17-009) in partial
fulfillment of the requirement for the award of the Diploma of Post Diploma in
Management (PGDM) for “SCIENCE AND TECHNOLGY ENTERPRENUR’S PARK
HARCOURT BUTLER TECHNOLOGICAL INSTITUTE” is a record of candidate
own works carried out by them under our Supervision .To the best of my knowledge the
work has not been submitted in part or in full to any other University or Institute for the
award of any Degree or Diploma.

Dr. Prabhat K. Dwivedi

(Associate Professor)
 ACKNOWLEDGEMENT

The project of such magnitude cannot be accomplished without the assistance and co-operation of
several people. Exchange of idea generates a new object to work in a better way. So,whenever a
person is helped and co-operation by others. His heart is bound to pay gratitude and is not merely
formalities but an expression of deep sense of gratitude and cumulative appreciation.

First of all, I wish to express my deep sense of gratitude to my mentor Dr. Prabhat K Dwivedi.
Whose support and guidance along with timely advice has helped me to complete this project report.

I owe a special debt of gratitude to Mr. Shailendra Dubey (Branch Manager, Kanpur) who helped me
whenever necessary, in spite of his busy schedule.

I specially wish to thanks Mr. Shantnu shah (Sales Executive) and all KNP personnel for kind co-
operation.

At least, I cannot forget to express my great-fullness to my parents as well as my friends for providing
me technical support.

ASHUTOSH DUBEY
 ABSTRACT

In this competitive market where customer and dealer is the king, it is very important
important to analyze the customer as well as dealer perception about the Product .Companies
by conducting various market researches , try to improve their products and provide better and
more services.

As without putting customer on the top no company can get success .for achieving the target
the company should target to their customer because market is totally market oriented.

The report is prepared for the partial fulfillment of PGDM programme and it is the part of
curriculum.

The report is an attempt to find out the dealers perception with special reference to kansai
Nerolac Paints Ltd.

ths training is conducted by the survey on Kanpur People.

The survey was conducted through questionnaire and by Personally interviewing .each
respondent have no of query structured in questionnaire.

The respondent were taken from various sector viz small class, medium class, high class,
Delers customer, contractor, distributor as well as various customer.

It was found in the survey that still many people are not known of the modern
Nerolac Paints Product, Schemes and Benefit.
 TABLE OF CONTENT

TOPIC PAGE NO.

Acknowledgement 5

Objective Of Study 9

Significance of the Study 10

Introduction of the organization 13

Research Methodology 50

Data Interpretation & Analysis 52

Findings 79

Conclusion 82

Suggestions & Recommendations 84

Questionnaire 87

Bibliography 90
 CHAPTER – 1

Introduction to the organization

(a) Objective of the Study
(b) Scope of the Study
(c) Methodology of the Study
(d) Limitation of the study

INTRODUCTION
Objective of the Study
This study is based on the topic “A Brief Study of Distribution Channel of Paints with particular
reference to Kansai Nerolac paints Ltd. at Kanpur”.

It comprises the survey of 60 respondents at Kanpur Market. Against set a Questionnaire which
shows the fact related to the topic.

(i) Main Objective

To know the market position of Kansai Nerolac Paints in Kanpur Market.

(ii) Sub – Objective :-

(a) To know the channel of distribution of paints
(b) Understanding how sales and distribution fits into the big picture of marketing and how
these aspects can be combined to achieve organizational goals.
(c) To analyze decision alternatives and planning and implementation of Sales and
marketing program.
(d) To analyze selection, motivation of channel member and managing conflict.
(e) To determine awareness of Kansai Nerolac Paints product among customers.
(f) To know the competitive service provider by different paints companies.
(g) To give some suggestions for improvement of the market share of Kansai Nerolac Paints
FLimited.
Scope of the Study
The scope of the study for management student gets to apply all their theoretical knowledge in the
company’s summer training. During training they solve the particular problem given by the company
and come to know the various things practically.

The study gives the company a true and unbiased picture of its position and standing in the Zone
especially at Kanpur market and also its image in the society.
Methodology used for the Study
For the preparation of the project report especially in case of Marketing every steps should be
anticipated closely. In this anticipation of formulation there may arise some problems, since these are
two types of information.

(i) For Primary Information :

I have used Questionnaire method. This survey conducted on 60 respondents across Kanpur
area. I used to set a questionnaire containing some questions for respondents. These data are
expensive and time consuming but these data are most important and reliable.

(ii) The Secondary Information :

This secondary data were collected from the internal sources (Company Documents) of as well
as some external sources (paper, internet). This collection of these data is for easier and less time
consuming.
Limitation of the Study
Limitation are always accompanied with any work. I had complete my study within short span of 6
weeks and it was not possible to understand practically all aspect of the subjects. Each and every
factor has been carried out carefully as much as possible limitation to the study is beyond control.

As all the primary data has been collected by discussion and interviews, there is a choice of error as
people hesitate in granting correct data and sometime exaggerate the information. Although I tried to
convince the respondents that the study is only meant for academic purpose, some respondents were
not ready to furnish other information like properties of the paints, lack of awareness, their busy
schedule etc.
 CHAPTER - 2
Introduction of the Organization
(a) History of the Organization
(b) Organizational structure
(c) Market status of the Organization
(d) Competitors of the Organization
(e) Product Profile
Introduction of the Organization
Kansai Nerolac Paints was at first known as Goodlass Nerolac Paints. The Kansai Nerolac Paints Ltd
produces various kind of products that range from industrial sophisticated coating for the industries to
architectural coating for hospital, Homes and Office.

Kansai Nerolac Paints Company has manufacturing units situated in Vatva, Lote, Parshuram, Jainpur,
Bawal and Perungudi. The total production capacity of the pants of the company is around 161,100
TPA and all the plants are technologically advanced and comparable to most state-of-the-art plants in
the world. Kansai Nerolac Paints has a very wide network of more than 11,000 dealers spread all over
the country.

Kansai Nerolac Paints is a market leader in the sector of automotive segment where it supplies more
than 90% of the required original equipment. Kansai Nerolac Paints is the second biggest company in
the coating sector in India where it has more than a 20% market share. The company has entered into
collaboration with Oshima Kogya Company , Japan and E.I. Du-pont de Nemours & Company Inc.
USA for the Manufacture of various innovative items and a brand new product line.

The total income of the Kansai Nerolac Paints Company amounted to Rs2,162.19 crore in 2011. The
net profit of the company amounted to Rs. Rs215.89 crore. Kansai Nerolac Paints Ltd. is planning an
investment of Rs 400 crore for capacity expansion by September this year, and is eyeing a double-
digit revenue growth in FY12.

Kansai Nerolac Paints prides itself on its organizational strength such as its value, vision, R&D,
experience, strategic alliances, marketing skill and its extensive distribution network. The various
plants of Kansai Nerolac Paints have been certified by agencies such as BVQI and Intertek, ISO
14000, ISO 9000 2000, OHSAS 18000 are just some of the certification that Kansai Nerolac Paints
has received for its efficiencies in work processes and standards.

Kansai Nerolac Paints has become on e of the top most companies in the companies in the coating
sector in India due to its quality of product which are the best market. The company has a presence in
several Indian states such as West Bengal, Assam, Gujarat, Haryana, U.P, M.P, and Maharashtra.
Kansai Nerolac Paints is headed by Mr.Jamshed J. Irani. Who is the chairman of the company. Mr.
Harishchandra Bharukha is the managing director of Kansai Nerolac Paints which employs more than
2000 people.
History of the Organization
KNP embarked our journey in 1920 as Gahagan Paints and Varnish Co. Ltd at Lower paler in
Bombay. In 1930 three British companies merged to formulate lead industries group ltd. In 1933, Lead
Industries Group Ltd. Acquired entire share capital of Gahagan paints in 1933 and thus, Kansai wall
(India) Ltd. Was born.

Subsequently, by 1946, Kansai Wall Ltd. was known as Kansai Wall Pvt. Ltd. In 1957, Kansai Wall
Pvt. Ltd. Grew popular as Kansai Nerolac Paints (Pvt.) Ltd. Also it went public in same year and
established itself as Kansai Nerolac Paints Ltd.

In 1976, Kansai Nerolac Paints Ltd. becomes a part of the Tata Forbes Group on acquisition of a
part of the foreign shareholder by Forbes Gokak.

In 1983, Kansai Nerolac Paints Ltd. strengthened itself by entering in technical collaboration
agreements with Kansai Paints Co. Ltd., Japan and Nihon Tokushu Toryo Co. Ltd. Japan.

In 1986, Kansai Nerolac Paints Ltd. turned into a joint venture of the Tata Forbes and the Kansai
Paints Co. Ltd., with the latter acquiring 36% of its share capital.

In 1999, Kansai Paints Company Ltd., Japan took over the entire stake of Tata Forbes Group and thus
KNP become a wholly owned subsidiary of Kansai Paint Company Ltd.

In 2006, On the 11th of July, Kansai Nerolac Paints Ltd. name has been changed to Kansai Nerolac
Paints Ltd.

During the journey of continuous performance excellence, we have entered into 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.

KNP’s incessant journey of successes will go on backed by our present human asset of over 2000
professional and sales turnover of Rs. 1484 Crores.

KNP are esteemed to be a subsidiary of Kansai Paints Company Limited, which is the largest paint
manufacturing company in Japan and among the top ten coating companies of the world.

KNP are the second largest coating company in India with a market share of over 20%.

KNP are the market leader in industrial/ automotive segment supplying over 90% of the OEM
requirements.

The Company is in the process of setting up a new manufacturing unit at Bawal ,Haryana at an
estimated cost of Rs.100 crores with an annual capacity of 20000 MT p.a .The above project is
being financed through internal accruals. During 2004-05 the company has setup a new
Greenfield plant, with a capacity of 20400 MT, at Bawal ,district Rewari of Haryana and this
 was commissioned on 19th March 2005. During 2003-04, the capacity at the Jainpur was
increased by 24% for water based paints, by setting a new facility. Consequent to the approval
of the High Court of Madras and Bombay the amalgamation of Chemguard Coatings Ltd with
the company was completed on 1st September 2005

During 2005-2006, the company made an investment in a Malaysian Company, a joint venture
company between the company and Kansai Paint Co Ltd., Japan (Kansai), Where the
company will hold 55% stake and 45% Stake by Kansai. Further the Malaysian company has
entered into an agreement to acquire the paint business of Sime Coatingsdn. Bhd., Malaysian
and this is subject to approval. During the same period the companies Production capacity of
Paints Varnishes and enamels has increased from138400 MT to 153900 MT. The capacity of
Synthetic Resins stood at 36250 MT and Capacity of Pretreatment Chemicals stood at 2400
MT

Most major companies posted higher revenues and earnings during 2004-2005 and continued
to post good growth rates in the first quarter of this fiscal. But this is true largely of the strong
which are getting stronger. The weak are getting weaker. In 1993-94, the top 10 companies
accounted for around 85 per cent of the total sales (in value terms) by the organized sector. Of
this, the top four companies -- Asian Paints, Good lass Nerolac, Berger Paints (including
Rajdoot Paints which was merged last year) and ICI India -- accounted for around 66.50 per
cent. But in 1998-99, the top 10companies accounted for around 90.50 per cent, and the top
four for a 76 per cent share. Surely, the industry is consolidating, in a different way though
because there have been few mergers or acquisitions

Most major companies posted higher revenues and earnings during 2004-2005 and continued to
post good growth rates in the first quarter of this fiscal. But this is true largely of the strong which
are getting stronger. The weak are getting weaker. In 1993-94, the top 10 companies accounted
for around 85 per cent of the total sales (in value terms) by the organized sector. Of this, the top
four companies -- Asian Paints . Good lass Nerolac, Berger Paints (including Rajdoot Paints
which was merged last year)and ICI India -- accounted for around 66.50 per cent. But in 1998-99,
the top 10companies accounted for around 90.50 per cent, and the top four for a 76 per cent share.
Surely, the industry is consolidating, in a different way though because there have been few
mergers or acquisitions. Just as the paints market is shrinking, so too are the choices for the
investors. They had just four firms to pick from and to shuffle around in their portfolio. And even
this hasshrunk to just Asian Paints, Goodlass Nerolac and Berger Paints. As the market
maturesfurther and dominance increases, players would have to become more selective
reduction, followed by ICI India and Good lass Nerolac. For Asian Paints, this has come down
from 52 per cent in 1994-95 to 45 per cent in 1998-99.Asian Paints also has the advantage of
having its own phthalic anhydride plant whose capacity is to be raised from 22,000 tonnes to
24,000 tonnes this fiscal. As the company sells nearly 65-70 per cent of the total production in the
open market, the current firm trends in PAN prices could boost the operating profit margins. The
company also has captive pentaerythritol and resins plants. Though Good lass Nerolac also
expects lot of savings from its IT initiatives to compensate for the increase in raw material costs,
it could be some time before the company actually derives the benefits. For a business which is
increasingly becoming commoditized, it appears that the ad-spend would be one of the important
differentiating factors which would enhance `brand recall'. And in the paints industry `brand
recall' is more important than individual productrecall. Here again, Asian Paints again has done
the homework to enhance its `brand recall'. Its ad-spend has gone up from 11.25 per cent per unit
of sales in 1994-95 to 14.85 per cent in 1998-99. This is followed by ICI India and Good lass
Nerolac. Thus, overall, Asian Paints would come on top in the decorative business. There is,
however, close competition between Good lass Nerolac and Berger Paints. Berger Paints has
increased its market share after its merger with Rajdoot Paints last year. Though it has a better
reach through its manufacturing facilities in the four regions (Good lass Nerolac's four plants are
spread around in Maharashtra and UP), it capacities are far lower compared to that for Good lass
Nerolac. But with the recent refocus in decorative to take advantage on its brand value, Good lass
Nerolac's hold on the decorative market to take a leap in the future. The company's ad-spend is
slated to double this fiscal. With the recent increase in capacity from 57,500 tonnes to 1.01 lakh
tonnes (with the commissioning of the Lote factory), Good lass Nerolac would have no capacity
constraints. This was one of the important factors which had earlier forced the company to
concentrate less on decorative. The company has also introduced quite a few new
 products at both the ends of the value spectrum. With the support of Kansai Paints, which now
holds 64.52 per cent stake, Goodlass Nerolac plans to introduce new niche premium products.
With its increased concentration on water-based emulsions and distempers,where the demand
growth rates have been high, the company hopes to have a strong second place in the decorative
paints market and at the same time increase the gap between itself and Berger Paints. Though
industrial paints growth rate could get affected by the slowdown in the automobile industry, it still
would contribute significantly to the margins of all the companies. In this segment, Good lass
Nerolac has the leadership position with a 45 per cent share of the market. Apart from Kansai
Paints, the company also has tie-ups with DuPont, Nihon Parkerizing (for pre-treatment
chemicals), Nihon Tokushu Toryo (for sealants and underbody coatings), Valspar Corporation (for
powder coatings), AmeronCoatings (for high-performance coatings) and Drew Chemicals (for
water treatments chemicals).While Good lass Nerolac, Berger Paints and ICI India have industrial
paints as one of their divisions, Asian Paints has hived off its automotive coatings business into a
joint-venture (JV) with PPG, US, the fourth largest company in the world. The JV has helped
Asian Paints in many ways. While the main business would benefit from the revenue flows
(through dividends) from the JV, it would at the same time help the company to shield the main
business from the adverse effects of a fluctuating demand for automotive paints. Since a separate
JV offers PPG the necessary protection for its technology, it would be more comfortable in
introducing latest products. Moreover, PPG's global acquisition of ICI's refinish and industrial
coatings business would add further strength to the Asian Paints' JV with the company in India. It
could at the same time have an adverse impact on ICI India's growth prospects in industrial
paints. After the sale of its refinishes to PPG, ICI Plc has been a big loser, as it plunged from the
top spot to number five position at the global level.

Berger Paints has presence in all the segments of industrial paints through its tie-ups with
Herberts of Germany (which was taken over by DuPont last year) and Nippon Paints of Japan.
But it is strongly placed in powder coatings where it has a tie-up with Theodor NVof Holland.
Thus, while Good lass Nerolac has a leadership position in industrial paints, Asian Paints would
come next in the relative ranking before Berger Paints. ICI India could suffer from the lack of
access to the latest technology in industrial paints and so has to scout for technology partners.
While all the companies have trying to reduce costs, they have also been actively looking at the
acquisitions and globalization for improving growth. Asian Paints has the maximum global reach
through its 10 international subsidiaries. During the previous fiscal, the company established
subsidiaries in Oman and Mauritius, acquired controlling stake in the second largest paints
company in Sri Lanka. After its recent acquisition of Jenson & Nicholson (Nepal), Berger Paints
is looking at acquisitions in Sri Lanka. Again, both ICI India and Asian Paints are seriously
looking at Shalimar Paints.Overall, from the point of view of investments and future prospects,
Asian Paints appearsto a very safe bet followed by Goodlass Nerolac. However, the Asian Paints
stock currently ruling at Rs. 258 (post 3:5 bonus) and discounted at nearly 22 times appearsfully
priced. Investors can get into the stock at declines. On the other hand, there is lot of upside
potential left in the Good lass Nerolac stock which rules at Rs. 135 and discounted at just 9.90
times its recent annualized quarterly earnings. The Berger Paints stock has been quite steady at
Rs. 94 discounted at around 9.90 times its quarterly earnings. However, the potential for
a significant upside appears limited.

This could probably change in future. As of now, while decorative accounts for around70 per cent
of the total paints demand, industrial accounts for the balance. This trend has been changing and
is bound to change more, with industrial paints gaining an upper handover a period of time. Thus,
from the long-term point of view, the demand growth rate for industrial paints is expected to be
more than that for decorative paints. But in the medium term (two-three years), we do not expect
any big difference between the growth rates for decorative and industrial paints .Our future
growth strategy is, thus, based on fairly high growths coming from the decorative segment also.
Just because we are leaders in industrial paints, we cannot expect that the high growth rates in this
segment will take us where we want to go. Our long-term target is to achieve a turnover of Rs
7000 crores by 2007. This translates into aCAGR of 18-19 per cent, which we are confident of
achieving. On the impact of the recent hikes in raw material costs: It is clear that we cannot easily
pass on the price increases on to our customers. So, we have to find resources to absorb the
increase in raw material costs. The resources would have to come from the savings derived from
streamlining of internal operations. And there is lot of scope for such savings. Over the last five-
six years we were concerned more about the overall growth rates in revenues. In other words, our
intention was to manufacture to somehow meet customer needs and increase sales. Thus, till at
least our Lote factory was commissioned, it was acase of supply chasing demand. This obsession
with growth resulted in accumulation lotof inefficiencies also. So, there is considerable scope for
cost reduction. Towards this, we have been investing on two things in the recent past to reduce
costs. One, we have been upgrading our equipment to improve efficiency in manufacturing. Two,
we have been taking advantage of the developments in IT to improve overall efficiencies. We
have already spend Rs. 18 crores for an ERP system to be implemented

in November. We have also looked at supply-chain programme to improve the extent of services
offered to our dealers and for optimizing inventory. We are also looking at data-warehousing,
where we are able to make effective use of the data gathered over the years for improving the
quality of decision making. Thus, we are planning to use a combination of both manufacturing
and IT-related measures to derive cost savings. This should help us overcome the kind of
inflationary pressures we are facing on the raw materials front. On the recent change in strategy to
focus on decorative. Though we are leaders in industrial paints, we feel that we have grossly
underutilized our potential in decorative. Our overall market share in decorative might be just 13-
14 per cent. But this is not same across geographical regions or products. This means that we
have been able to capture higher market shares in certain regions and in certain product segments.
Whereas our good brand name is all pervasive. This again means that we are not utilizing the full
potential of our brand name. There are a number of reasons for our underperformance in
decoratives.For one, our capacities were not enough to cater to the growing demand. In other
words ,till at least the Lote factory was commissioned, our supply was lagging behind demand. In
such a situation, supply of industrial paints was our priority as we had to satisfy our long-term
contracts. Consequently, our supply was not adequate to cater to the decorative segment. Two, our
product range in decoratives was also not adequate. We were concentrating on enamels and not on
emulsions and other segments which were witnessing faster growth.So, our present strategy is to
rectify such defects. Towards this end, we have already increased our capacity. Apart from the
efforts to increase our product range, we are also installing colour dispensing machines across the
country. Our ad-spend is also slated to double this year. So, a number of steps have been taken to
give a boost to our decorative

business. Our renewed concentration in decorative is also aimed at evening-out the adverse
impact of the cyclical nature of demand growth in industrial paints. On some specific strategies to
improve decorative business. First is product focus. We are already strong in enamels. So, we are
now concentrating on strengthening our presence in water-based emulsions and distempers. In
other words, our focus is on interior paints. At the same time there is no specific focus in terms of
value.High-value products are as important as low-value products. As the market expands fromthe
urban to the rural areas, value products would drive volume growth. At the same time, we are also
segmenting the top end of the customer profile in terms of distinctive tastes and requirements.
This would be possible through support from Kansai Paints. Second is in terms of distribution
focus, where we are in the process of strengthening the dealer network. On e-commerce
possibilities: Right now it is only B2B in terms of improving the dealer connectivity for better
service and supply-chain management. B2C is still a gleam in the eye. But any B2C initiative
cannot totally ignore the dealer network. We are still exploring on a B2C model which would
include dealer participation. On the extent of consolidation in the industry. Consolidation need not
come only through mergers and acquisitions. There is indeed consolidation in the sense that
the strong is getting stronger and the weak weaker.

KNP are the leader in power coatings.

Vision Value and Culture

In today’s dynamic business environment, no organization can afford to survive without a well-
articulated and carefully thought vision stating the overall strategic direction and long-term future of
its business.
KNP have been at the forefront of paint manufacturing over eight decades pioneering a wide spectrum
of quality products that change the face of economy and lifestyles of people at large.

It is our vision to leverage global technology, for serving our customers with superior coating systems
built on innovative and superior product 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.

KNP 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 value based proposition has to be
ultimate foundation of our business.

To this end we consciously have internalized and been practicing these value in all our business
transactions though human beings:

 Innovation
 Entrepreneurial
 Responsive
 Simplicity
 Team Orientation

Cultural Ethos
 Vision driven organization
 Employees feel pride in being part of the organization
 Recognition of human dignity
 Transparency and openness among employees at all hierarchical levels
 Performance- linked reward system
 Management and employee commitment to organization values is high
 Autonomy in work is high
 High commitment to quality products

The Quality Policy

It is the philosophy of Kansai Nerolac Paints 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 company’s 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 one’s future in the
organization. An open and transparent communication is appreciated.

Social Responsibility
The company continues to make its due contribution to community relief and development activities
and has donated both cash and kind for the beautification of some public place in Mumbai and
elsewhere. The company continued its activities directly through trusts/agencies in community
Development and social Welfare including contribution towards national defense, medical help,
education, improvement of environment etc.

Organizational Strengths
An organization is not set on pillers 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
Neralac is a company with vary 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 Managing Director

A sale organization is both an orienting point for co-operative endeavor and a structure of human
relationships. It is a group of individual striving jointly to reach qualitative and bearing formal and
informal relations to one another. Vice- President, Sales

Existence of a sales organization implies the existence of patterns of relationship among subgroup 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.
Zonal Manager Zonal Manager Zonal Manager Zonal Manager
The concept of
(East) organizational structure
(West) is somewhat abstract
(North) and illusive. However
(South) it is real and
effects everyone in the organization.

According to March and Siman, “Organizational structure consists of those aspects of pattern of
behavior in the organization that are relatively stable and change only slowly”.
R.S.M R.S.M R.S.M R.S.M
It facilitates the growth of the organization. It stimulate creative thinking and initiative by proving
well defined are of work with provisions for development of new and improved ways of working

Organizational Structure

Unit Head, Unit Head Unit Head

Bihar & Nepal Jharkhand Orissa

Territory Sales Territory Sales Territory Sales

Incharge Incharge Incharge
onal Manager
(East)
Management Structure and Key People in Kansai Nerolac Paints Ltd

"The people who make the company are its real assets."At Goodlass Nerolac we stand by this. The
success of Goodlass Nerolac has hinged on this philosophy since 1920, and being the second
largest paint company in India is the rightful tribute toits people's commitment and
dedication.With employee strength of around 2000 spread over thecountry and an efficient
management, the company provides the conducive work atmosphere to develop and grow. Our
team of Ph.D's,engineers and technicians visit collaborator's plants abroad to update themselves
with thelatest techniques.

BOARD OF DIRECTORS

DR JAMSHED JIJI IRANI CHAIRMAN

MR DEVENDRA MOTI LAL VICE CHAIRMAN
KOTHARI
MR HIROSHI OSHINO DIRECTOR
MR YUZO KAWAMOORI DIRECTOR
MR KISHAN CHANDRA MEHRA DIRECTOR
MR HARISCHNDRA MEGHRAJ MANAGING DIRECTOR
MR SUSIMUKUL DUTTA DIRECTOR
MR YUZU TEZARI DIRECTOR
MD
MR HM BAKURA
MR PRVEEN CHAUDHARI DIRECTOR – SUPPLY CHAIN
SHRIKANT DIKHLE VICE PRESIDENT-HR
ARIN JAIN VICE PRESIDENT- MARKETING
ASHOK SAINI VICEPRESIDENT- SPECIAL
PROJECT
MURALI SUNDARAM VICE PRESIDENT- FINANCE

Market Status of the Organization

Kansai Nerolac Paints is the second largest paints manufacturer in India, according for 20% of the
total paints sales. In the industrial segment, it is the undisputed leader accounting for 40% market
share. It has excellent R&D facilities and innovating products. The laboratories are well equipped with
the latest sophisticated instruments.

Kansai Nerolac Paints have six manufacturing facilities backed by excellent R&D facilities. It
has 73 deposit/ distribution centers strategically located all over India and a dealer and a dealer
network of over 12,000.

Some of the biggest names in the Indian industry use Kansai Nerolac Paints for their products.
These include India’s most successful corporation like:
 Maruti Udyog Ltd.
 Bajaj Auto
 Toyto Kirlosker
 Honda Siel
 TVS Suzuki Ltd
 Wheels India Ltd
 Telco
 Mahindra & Mahindra
 Ford India Ltd
 Hindustan Motors (For Lacer)
 Hero Honda Motor Company
 Godrej & Boyce Mfg. Ltd

Object 3 Total
Sales for 5 Years
 Object 5 Total
Profit for 5 Years
Object 7
Object 9
Object 11
Object 13
Object 15
Object 17
Object 20
 Object 23

Competitors of the Organization

Goodlass Nerolac Paints Ltd, is a Company of 1320 crore turnover. Company is giving its service
from more than eight decades. In the market company is prevailing with great impact in the market
because there is a large no. of competitors. In both the segment Decorative and Industrial, its
competitor are as follows:-

Decorative Industrial
Asian Paint Asian
Berger Paint Berger
ICI Paint ICI
Now, here are some of the competitors products and its brand name.

ASIAN
Premium Emulsion - Royale

Premium Exterior Emulsion - Apex

Washable Distemper - Tractor

Exterior Plastic Paint - Ace

Synthetic Enamel - Apcolite

BEREGER PAINTS
Premium Emulsion - Luxol Silk

Premium Exterior Emulsion - Weather coat

Washable Distemper - Bison

Exterior Plastic Paint - Wall Masta

Synthetic Enamel - Luxol

Texturised Finish Exterior - Weather coat Texture

Coment Base Paint - Durocem

ICI
Premium Emulsion - Velvet Touch

Premium Exterior Emulsion - Weather Shield

Washable Distemper - Maxilite

Exterior Plastic Paint - Dulux

Synthetic Enamel - Supercoat

Texturised Finish Exterior - Dulux

 Coment Base Paint - Farcocem

Product Profile of Kansai Nerolac Paints Ltd.

Decorative Paints

Walls

Interior

Emulsion

Water Based Paints

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 micronized pigments so as to impart smooth velvet finish, with
excellent wash ability.

Performance Features & Benefits

 Smooth velvet Finish with sheen

 Excellent wash ability & Stain Resistance
 Very good Antifungal Resistance
 Ease of application
 Low odour

Distemper
Nerolac Beauty premium Acrylic Distemper

Premium Description

Nerolac Beauty Premium Acrylic Distemper is supplied in paste form and

it can be used for the decorative 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 washable
 Eye soothing matt finish
Nerolac Little Master Acrylic Emulsion

Product Description

Nerolac Little Master Acrylic Emulsion, is a specially developed economical

product with a smooth Finish with good whiteness, opacity and coverage . It
is formulated by using ideal combination of pigments and extenders,
dispersed in a copolymer emulsion for smooth and pleasant matt finish.
Performance Features & Benefits

 Smooth and pleasing matt finish.

 Ease of application.

 Economical product with optimum performance.

Exterior
Nerolac Excel Total

Product Description

Nerolac Excel Total All In One Acrylic Exterior Emulsion is a 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 Silicon modified pure Acrylic
polymer and hence it forms a tough and flexible protective film, with an
excellent bonding to the substrate, which gives Excellent Dirt Pick-up resistance
and Excellent Sheen. All n One Acrylic Exterior Emulsion contain a unique
combination of surface protestants, 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 out-door durability.

 Very good colour retention.
 Smooth with Sheen finish.
 Easy to apply and maintain.
 Very wide range of beautiful colours.
 Very good coverage thus good value for money.
 Warranty applicable only on a minimum purchase of 100 liters. For warranty details, Refer to the
warranty booklet available with the dealer.

Nerolac Excel Anti-Peel Acrylic Exterior Emulsion

Product Description

Nerolac Excel Anti-Peel Acrylic Exterior Emulsion is a premium water based, high
performance, long lasting exterior paint, 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. Nerolac Excel Anti-Peek
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.

Performance Features & Benefits

 Excellent resistance to fungal and algae growth.

 Very good color retention.

 Excellent out-door durability.

 Faster drying.

 Smooth & Matt to slight Sheen finish.

 Easy to apply and maintain.

 Superior wash ability & scrub resistance.

 Very wide range of beautiful colors.

 Very good coverage thus good value for money.

Nerolac Suraksha Plastic Exterior Emulsion

Product Description

Nerolac Suraksha Plastic Exterior Emulsion is an economical water thinable

coating, specially designed for application on exterior walls in dry or moderately
humid climatic conditions. It is much superior to normal cement paint coating in
respect to exterior durability, finish, washability and resistance to fungus / algae.

Performance Features & Benefits

 Economical water thinnable coating.

 Excellent adhesion.

 Low dust pick-up.

 Better outdoor durability.

 Smooth and pleasing finish

 Performance much superior to cement paint.

 Continuous protection.

Nerolac Suraksha PLUS Acrylic Exterior Emulsion

Product Description

Nerolac Suraksha PLUS Acrylic Exterior Emulsion is an economical water

thinnable coating, specially designed for application on exterior walls in dry
or moderately humid climatic conditions. It has an unique ‘Colour Lock+ ’
technology, which locks in the colours ensuring that colours on exteriors
keeping looking like new for long. It is an ideal choice for consumers wishing
to upgrade from cement paint since it is much superior to normal cement paint
in respect to durability finish and resistance to algae.

Performance Features & Benefits

 Superior colour retention.

 Better outdoor durability.

 Resistance to cracking and peeling.

 Resistance to algae.
 Smooth and pleasing finish with sheen.

 Performance superior to cement paint.

 No need of curing.

Enamel
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 wash ability
 Very good flow brush ability
 Hard durable film

Nerolac Synthetic Enamel

Product Description

Nerolac Synthetic Enamel is a time tested and proven, high quality alkyd based enamel.

Performance Features & Benefits

 Excellent Water Repellency

 Good Stain Resistance
 Excellent flow characteristics to form smooth and uniform finish
 Excellent Hardness and Durability
 Excellent Gloss.
Woods
1) 1K PU
Variants - gloss, matt
Type of coat - Top Coat
Feature - Good Gloss, Easy to use, good value for money
Usage - Wood, Veneer

2) 2K PU
Variants - Gloss, Matt, Sealer, Thinner
Type of Coat - Top Coat

3) NC Thinner
Variant - NA
Type of Coat - Thinner
Feature - Compatible with NC & Melamine based products
Industrial Paints
Automotive Coating

Kansai Nerolac Paints is the market Leader in the automotive coating segment in India with a market
share of over 60% with global technology acquired from Kansai Paints Co. Ltd, Japan. Kansai
Nerolac offers the latest technology in automotive painting systems to the Indian automotive industry.

Automotive coating of Kansai Nerolac have been tested and certified by global automotive
manufacturers who have set up base in India like:-

Through its various strategic collaborations, Kansai Nerolac offers a total painting system to auto
maker in India with a range of products, starting from Pretreatment Chemical, Electro Deposition
Primers, Intermediate Coats/primer surface, Solid & Metallic top coats, Clear Touch- up Paints.

The product range is backed up by a strong technical service network of experts placed at customer
end, Training programs, VA/VE activities in co-ordination with customer resulting in ultimate delivery
of optimized painting solutions. Kansai Nerolac provide very specific product range these are as
follow:-

Product Range

Pre-Treatment Chemicals

 High & Low Temperature Degreasing Chemicals

 De-rusting Chemicals

 Di-cationic and Tri-cationic Phosphate Chemicals

 Activation & Passivation Chemicals

 Surface Conditioners

 Pre-Treatment Chemicals for Plastics.

Electro Deposition (ED) Primers

 Polybutadine-Based Anodic Electro-Deposition Primer (AED)

 Epoxy Resin-Based Cathodic Electro-Deposition Primer (CED)

 Acrylic Resin-Based Cathodic Electro-Deposition Primer (ACED)

Intermediate Coats / Primer Surface

The Intermediate Coats are available in white, light grey, dark grey, red, blue and other specific colours as
required by OE manufacturers.

Top Coats

New technologies in top coats such as 3 Wet Coating Systems are available which are being adopted by various
automotive customers to improve productivity, reduction in costs and meeting the environmental norms.
Various types of Metallic & Mica finishes are available.

Clear coats

 scratch resistance

 acid & alkali resistance

 UV resistance

 mar resistance
Heat resistant paints

Hea t resistant paints, both for interior & exterior surfaces of motorcycle mufflers. These are made to withstand
high temperature conditions up to 600 degree C.

CHAPTER – 3
 Distribution channel – A Theoretical Concept

The Distribution Channel

Frequently there may be a chain of intermediaries each passing the product down the chain to the next
organization, before it finally reaches the consumer or end user. This process is known as the
‘distribution chain’ or the ‘channel’. Each of the elements in these chain will have their own specific
needs, which the producer must take into account, along with those of the all – important end – user.

Channels

A number of alternate ‘channels’ of distribution may be available:

 Selling direct, such as with an outbound sales force or via mail order, internet and telephone
sales

 Agent, who typically sells direct on behalf of the producer

 Distribution (also called wholesaler), who sells to retailers

 Retailer (also called dealer or reseller), who sells to end customers

 Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They may be just as important
for moving a service from producer to consumer in certain sectors, since both direct and indirect
channel may be used. Hostels, for example, may sell their services (typically rooms) directly or
through travel agents, tour operators, airlines, tourist boards, centralized reservation systems etc.

There have also been some innovations in the distribution of services. For example, there has been an
increase in franchising and in rental services- the latter offering anything from televisions through
tools, there has also been some evidence of service integration, with services linking together,
particularly in the travel and tourism sectors, for example, like now exit between airlines, hotels and
car rental services. In addition, there has been a significant increase in retail outlets for the service
sector. Outlets such as estate agencies and building society offices are crowding out traditional grocers
from major shopping area.

Channel Members

Distribution channels can thus have a number of levels. Kotler defined the simplest level, that a of
direct contact with no intermediaries involved, as the ‘zero-level’ channel.

The next level, that ‘one- level’ channel, features just one intermediary; in consumer goods a retailer,
for industrial goods a distributor. In small markets (such as small countries) it is practical to reach the
whole market using just one and zero-level channels.

In large markets (such as larger countries) a second level, a wholesaler for example, is now mainly
used to extend distribution to the larger number of small, neighborhood retailers or dealers.

In Japan the chain of distribution is often complex and further levels are used, even for simplest of
consumer goods.

In IT and Telecom industry level are named “tiers”. A one tier channel means that vendor IT product
manufacturers (or software publishers) work directly with dealers and with distributor who sell to
dealers. But the most important is the distributor.

The Internal Market

Many of the market principles and techniques which are applied to the external customers of an
organization can be just as effectively applied to each subsidiary’s, or each department’s, ‘internal’
customers.

In some parts of certain organization this may in fact be formalized, as goods are transferred between
separate parts of the organization at a transfer price. To all intents and purposes, with the possible
exception of the pricing mechanism itself, this process can and should be viewed as a normal buyer-
seller relationship. The fact that is a captive market, resulting in a monopoly price. Should not
discourage the participants from employing marketing techniques.
Less obvious, but just as practical, is the use of marketing by service and administrative departments
to optimize their contribution to their customers (the rest of the organization in general, and those
parts of it which deal directly with them I particular). In all of this the lessons of the non-profit
organizations, in dealing with their clients, offer a very useful parallel.

Channel Decisions

 Channel Strategy

 Product <> Cost<> Consumer Location

Managerial Concerns

The channel decision is very important. In theory at least is a form of trade off: the cost of using
intermediaries to achieve wider distribution is supposedly lower. Indeed, most consumer goods
manufacturers could never justify the cost of selling direct to their consumers, except by mail order.
Many supplier seem to assume that once their product has been sold into the channel, into the
beginning of the distribution chain, their job is finished. Yet that distribution chain is merely assuming
a part of the supplier’s responsibility and , if they have any aspirations to be market- oriented, their job
should really be extended to managing all the process involve in that chain, until the product or
service arrives with the end user. This may involve a number of decision on the part of the supplier:

 Channel Membership

 Channel Motivation

 Monitoring and managing channels

Channel Membership

1. Intensive distribution- where the majority of resellers stock the product (with convenience
products, for example and particularly the brand leaders in consumer goods markets) price
competition may be evident.

2. Selective distribution – this is the normal pattern (in both consumer and industrial markets) where
suitable resellers stock the product.

3. Exclusive distribution – Only specially selected resellers or authorized dealers ( typically only
one per geographical area) are allowed to sell the product.

Channel Motivation

It is difficult enough to motivate direct employees to provide the necessary sales and service support.
Motivating the owner and employees of the independent organizations in a distribution chain requires
even greater effort. There are many devices for achieving such motivation. Perhaps the most usual is
incentive: the supplier offers a better margin, to tempt the owners in the channel to push the product
rather than its competitor is offered to the distributors sales personnel, so that they are tempted to push
the product. Dent defines this incentive as a channel member on the commercial merits of doing
business together. He describes this as selling business model not products.

Monitoring and Managing Channels

In much the same way that the organization’s own sales and distribution activities need to be
monitored and managed, so will those of the distribution chain.

In practice, many organizations use a mix of different channels in particular they may complement a
direct sales force, calling on the larger accounts, with agents covering the smaller customer and
prospects.
 CHAPTER - 4
Distribution Channel of Paints in Kanpur – Practical Aspect

Distribution Channel in Kanpur Market

In the good old days. A wholesaler procures an order, acquires good and stores them in a warehouse,
supplies order based stock for a calculated amount of profits. He played a number of roles- he was an
intermediary who took care of logistics and move stock around a consolidated sales agent for
suppliers, a local customer service point and a demand buffer for manufactures.

Yes, multitasking existed even then but within a limited scope. But there were limitations of physical
kind- all these roles could be played out only within a certain geographical terrain.

A Distribution Network Today

 For a dealership distribution we have done a survey. In survey we have seen the market potentiality,
customer potentiality, demand, area, location, etc. If customer is willing to take a dealership we will
provide the dealership to the customer, but first of all we need some document like VAT No. Tin no.
and bank a/c in any bank. If document are ok then we open the customer account in the company. We
are providing goods to the dealer when he needed. We make a good contact with the dealer. we meet
with the dealer in a regular basis. We gave a reward and schemes in a regular basis. If dealer perform
well we gave colour world machine. By the help of this dealer can increase his profit. For a ordering
system we go to the shop and take the order. Dealer can give order o n a phone call. For billing we
gave a time of 7 days to the dealer.

A distributor plays a virtual role an almost invisible part of a smooth supply chain. Third- party
logistics providers help goods from one part to another in a day. While a more customer- centric
distribution chain enable direct ordering and tracking of orders over phone and regular visit.
Manufacture
To make these necessary shift the distributor needs to have more information about all customers,

Unit
learn to manage inventory from other distributors and have a workflow; based information system.

Effective supply chain management is an intricate loop, one that being with the customer and ends
with the customer.

Depot/ Distribution Center

Channel of Distribution in KNP Kanpur

Dealer

User Sub-dealers / Retailers

User
CHAPTER- 5
 Research methodology

RESEARCH METHODOLOGY
Research methodology is used to search answers of the research questions. An
attempt has been made to describe the nature of the people of Bhagalpur city by
the study of the samples

The research was carried out in Kanpur. The research includes the meeting with dealers
and coustomers of nerolac paint. It included the designing of questionnaire and registering
the responses by customers and shop owners .

1. Research approach:
The questionnaire was filled by the Dealer who deal with Paints. The research was conducted by
us as the representatives of Nerolac Paint Ltd and sometimes as representative of other brands in
order to get unbiased answers. An unbiased response was very much needed in order to complete
the report.

2.Research instruments:
The research instrument used in this research was structured questionnaire designed by us
for the respondents. The questionnaire was designed keeping in mind that the answers or
response will help in covering the objectives.
 2. Type of questions:
The other important thing in designing the questionnaire was types of questions. There
were different types of questions involved in questionnaire. The types are listed below

 Multiple choice
 Open ended

3. Phrasing of questions:

The questions were phrased keeping in mind that it should include personal
information, awareness data and usage data
4. Sampling:
Total no. of samples: 60 Dealers survey

Location: Kanpur
Sampling technique: Simple random convenience sampling

5. Methods:
The whole Kanpur Nagar was divided into zones and the response was collected from
different-different areas as per the easiness so that the data can be collected
properly.
 CHAPTER NO 6
DATA INTERPRETATION AND ANALYSIS
 Data Analysis & Interpretation
In order to study the market strategy of a product we must get the feedback from the market
concerned. For academic purpose I choose 60 sample of the urban area about Kanpur south and the
town itself.

Questionnaire was prepared to study fourteen basic facts about marketing field. They were meant for
the sub-dealer concerned with the paint industry and particularly selling Nerolac Product. Questions
are listed below:

1) Which company paints do you like most ?

Reason Frequency Percentage

Nerolac 28 47
Berger 5 8
Asian 27 48

Object 25

It is the evident from the above pie chart, maximum sub-dealers are selling Kansai Nerolac Products
in Kanpur market,
 2. What is the reason for selling a particular paint companies product ?

REASON FREQUENCY PERCENTAGE

Advertisement 11 15

Quality 19 30

Name of brand 18 25

Cost-effective 12 20

Others 6 10

Object 27
 It is evident from the above pie chart, the maximum sub-dealer like to sell paint products having good
quality, Name of brand, low cost and advertisement in Kanpur market.

3.Which brand is highest selling in your counter ?

REASON FREQUENCY PERCENTAGE

INTERIOR 40 60

EXTERIOR 20 40
 Object 30

Is shown the above pie chart that 60% of the sub-dealer said Interior paint and 40% said exterior paint
is highest selling.
4.What is your source of purchasing product ?

REASON FREQUENCY PERCENTAGE

DEALER 42 70

COMPANY 15 25

BOTH 3 5

Object 32
 In the above pie chart most sub-dealer i.e. 70% purchasing paint product from Dealers, 25%
purchasing direct from company and 5% purchasing both dealer and company.

5. Which type of advertising is most effective?

Reason Frequency Percentage

Online 40 67

Offline 15 25

other 5 9
 Object 34

67 % respondents in the favour of online advertising , 25% respondents in the favour of offline
advertising and rest 5 % in other .

6.What is your expectation for taking the dealership of any company ?

REASON FREQUENCY PERCENTAGE

EASY TO DELIVERY 12 20

% OF MARGIN 20 34

BOTH 21 36

OTHER 6 10
 Object 36

In the above pie chart 36% sub-dealer tell Easy delivery and %of margin both the expectation of
taking dealership in Muzaffarpur market.
7. Are you interested for taking dealership of Nerolac Paints ?

REASON FREQUENCY PERCENTAGE

YES 36 60

NO 24 40

Object 38
In the above pie chart 60% sub-dealer wants to take dealership in Kanpur market.

8. Are you dealer or sub-dealer of a NEROLAC Paint Company?

Reason Frequency Percentage

Yes 45 76

No 15 24
 Object 40

In the above pie chart 76% respondents are dealer and 24 % are non dealer.

8. If no then which paint company do you have dealership?

Reason Frequency Percentage

Asian paints 26 43

ICI 2 1

Berger 24 38

other 8 19
 Object 42

43 % Respondents are Dealing with Asian Paints 38% Respondents are Dealing with Berger and only
1% respondents are dealing with ICI at Kanpur

9. Which facility of Nerolac Paint attracts you?

Reason Frequency Percentage

BRAND NAME 12 19

SUPPLY SYSTEM 10 16

SCHEME AND REWARD 39 64

 Object 44

69 % respondents attract with Schemes & Rewards and 19% Respondents attract with brand name of
nerolac.

10. Which BRAND of paint company is most preferred by the customers?

Reason Frequency Percentage

Nerolac 32 53

Asian Paints 24 40

Berger 4 7
 Object 46

53% customers preferred nerolac , 40 % Customer Preferred Asian paints , 7% respondents preferred
Berger paints.

11. Is your company provide better scheme and reward on completion of targets?

Reason Frequency Percentage

Yes 43 72

No 17 28
 Object 48

72 % Respondents agree with this Statement, 28% Respondents are Disagree with this statement

13. Are you satisfied with the supply chain system of Nerolac paint company?

REASON FREQUENCY PERCENTAGE

YES 55 92
 NO 5 8

Object 50

92%respondents are satisfied with the supply chain system of Nerolac and 8 %
respondents are not satisfied with nerolac supply system.

14. Is your company provide all the categories of paint to the customer?

Reason Frequency Percentage

Yes 58 97
No 2 3

Object 52

97% respondents agree with the nerolac provide all type of product and 3 % respondents are not agree
with it.

15. Does the financial transaction and delivery of goods provide better satisfaction
level or not?

Reason Frequency Percentage

Yes 51 85
No 9 15

Object 54

85% Respondents are satisfied with the transaction system of Nerolac paint and 15 %
are not satisfied with it.

16. If you have a chance to change the dealership of Nerolac company then which
paints will you prefer?

Reason Frequency Percentage

Asian Paints 36 60
Berger 4 7

Other 20 33

Object 56

60% respondents moves towards Asian paints if they get a chance and 20% moves
towards any other country.

17. Do you know that Nerolac Paints is the Second Largest market share company
in India?

Reason Frequency Percentage

Yes 38 63
 No 22 37

Object 58

63 % respondents are aware with it but 37 % respondents still not aware

18. If you are going to start a dealership with Nerolac which facility you want from
the company?

Reason Frequency Percentage

Supply of goods 22 37
Regular Schemes 23 38

Other 15 25

Object 60

37 % respondents wants good supply , 38% wants Regular scheme & Rewards.

19. Do you know that Nerolac offer less price against the better quality of paints?

Reason frequency Percentage

Yes 36 60
No 24 40

Other 0 0

Object 62

60 % respondents know that nerolac offer less price against the quality and 40 still
not aware with it.

20. Do you know that most of the company customer prefer Nerolac Paints due to
the Big Brand Name?

Reason Frequency Percentage

Yes 45 75
No 15 25

Object 64

75% people Prefer Nerolac due to brand name but 25 still not prefer due to brand
name.

21. Do you know that Goodwill and Fame of Nerolac is very much higher than the
other paints company?

Reason Frequency Percentage

Yes 50 83
No 10 17

Object 66

83 % respondents are aware with it but 17 % respondents still not aware with it.

22. Is Customer feedback or dealer feedback option available in NEROLAC Ltd. ?

Reason frequency Percentage

Yes 25 42

No 35 58

Object 68

42 % respondants respond that there is feed back option available in nerolac but 58 % respondants are
not with it.

23. Are you satisfied with Nerolac Service?

Yes 70%
 No 30%

Object 70

In the above pie chart, most of the sub-dealers i.e. 70% are satisfied with Nerolac service.
24. What is the response of Nerolac Paint amongst consumers?
Good 10
Satisfactory 65
Excellent 25

Object 73
In the above pie chart,65% consumer are said its satisfactory & 25% said excellent

25. Does your shop gets visited by companies sales personnel?

Yes 40%

No 60%
 Object 75

In the above pie chart, most of the sub-dealers i.e, 60% are the companies personnel does not visit for
sub-dealers counter.
26. Do you know that Nerolac Paint is the Subsidiary Company of Kansai Paint Japan which
is one of the top ten Paint Companies in the world?

Reason Frequency Percentage

Yes 35 59

no 25 41

Object 77
59 % respondents knows that Kansai is japani company but 41 % Respondents still don’t know about
about it

CHAPTER 6
( FINDINGS)
 FINDINGS

1) Nerolac paints ltd is the second largest paint company in India

2) More than 70% Paints dealer dealing with nerolac paint

3) Fresher dealer still like to invest their money in nerolac paints although
other better options are available in the paints industry market .

4) Dealers think that investing their money in nerolac paints is the safest
option available .a mind set is their in the mind of dealers that no other
option is best in terms of investing.

5) Almost everybody knows about kansai nerolac paints ltd

6) Rewards and market creditability a still popular among the masses

although the other plans available in the market
7) Most of the dealers are concern about dealership agreements while taking
any leadership

8) Most of the fresher dealers wants market credibility and better

advertisement of nerolac paint

9) Very high no of dealers have invested in nerolac paint

10) Very les no of dealers has shown willingness to invest in kansai nerolac
paints ltd.

11) Although nerolac paints have the strong brands amongst the high class
and medium class dealers some people of Kanpur city still do not know
about the company and its working

12) Asian paints is the strongest competitor of nerolac paint company it is

because it gives maximum market creditability and low price product.
 CHAPTER- 7
Conclusion & Suggestions

Conclusion & Suggestions

 Conclusion
To conduct the survey of Kanpur Market is for knowing the prospect of paints in this
area. In this markets the immediate competitors of KNP is Asian, Berger and ICI. The
research first prepared a questionnaire containing questions for collecting information
from different paint outlets. The researcher collected the information from a sample of
70 different outlets. In urban Market, Nerolac paints is the largest selling brand due to
the brand name and good marketing strategy. Asian paints products are the second
largest selling paints in urban areas ,Berger is the third largest selling paints in this area
due to lack of good advertisement appropriate distribution channel . In Kanpur market
when the researcher asked the name of highest selling brand from the sub- dealers 35%
respondents said Nerolac , 30% Asian, 15% respondent said Berger, 10% respondent
said other paints .When the researcher asked about the reason of highest selling brand,
30% said good quality, 30% said cost effectiveness, 15% said due to advertisement and
25% due to brand name. When the researcher asked why they purchase paint from these
dealers, they said due to good behavior, good service and availability of various range
of products. When the researcher asked are you interested in dealing directly with the
company , most of them said No due to large investment of sale of paints. When the
researcher asked what is your expectation for taking the dealership, approx 36%
respondent told that they want easy delivery and percentage of margin .

According to my finding most of sub-dealer i.e. 70% are satisfied with Nerolac
Services

Suggestions
 I would like to offer the following suggestion which I feel that will certainly enhance
company sale and dealers, sub-dealers management.

1) Price mechanism should be controlled by allowing uniform special discount among

the dealers.

2) There should be the regular visit to the company for getting in the mind of sub-
dealers.
3) Company should not be the big- dealer oriented only, it causes discontent among
dealers as well as sub-dealers.

4) Company should look after its supply chain management.

5) Company should try to create harmonious relation between dealers, sub- dealers.

6) Company should use banner, hoarding at the public place mentioning the slogan
quality price of the product.

7) Apart from business activities there is something, which increase the public relation
that is behavior and it should be very cordial and affectionate

8) Nerolac should try to persuade the retailers to give more space to Nerolac product at
their counters.

9) The dealer’s price must be competitive with the product of the other companies.

10) The facilities given at the time of festivals should be made more flexible, if so then
sellers get encouraged & sale will certainly go up.

11) Dealers development programme should be conducted by the company.

12) Proper grievances handling system should be there and company should always try
to participate actively in grievance Portal.

Questionnaire
1) Name of the Dealer :
2) Address :
3) Phone No

4) Are you dealer or sub dealer of any paints Company.

Yes No

5) If yes then which paints Company you have dealership?

Nerolac Paints Asian Paints ICI Paints Others

6) Which Facility of this paints Company attracts you for Dealership?

Company Brand Name Company Market profitability Sales Team Service Better
Supply of Goods Financial Transaction Schemes & Rewards
Others

7) Which Brand of paints Company most of the customer preferred?

Nerolac paints Asian paints ICI paints Others

8) Is your Companies provide better Scheme & Reward on completions of Target?

Yes No

9) Is your Company provides all types of categories of paints to the customer?

Distemper Exterior & Interior Emulsion Putty Plastic paints
Others

10) Are you satisfied from the dealership of this paints Company?
Yes No

11) Is the Financial Transaction & delivery of goods of this paints Company are given full satisfaction
to you?
Yes No

12) If you have a chance to change the dealership of this company then which paints company you
prefer and why?

Asian paints berger paint ICI paints other

13) Do you know about the Kansai Nerolac paints?

Yes No

14) Do you know that Nerolac Paints is the seconds largest market share Company in India?
Yes No
15) Do you know that Nerolac Paints give their dealer better scheme & rewards in comparison to their
paint company in the form of Foreign and India tour.
Yes No

16) Do you know that Nerolac Paint deal all categories of Interior & exterior paints, Emulsion,
Distemper, putty, paints?

Yes No

17) Do you know that today most of the Customer prefer Nerolac Paints due to big Brand name & big
Brand Ambassador?
Yes No

18) Do you know that Nerolac offer less price against the better quality of paints to the Customer?

Yes No

19) Do you know that goodwill and fame of Nerolac Paints is very much high then other Paints
Company?

Yes No

20) If you are going to start the dealership with Nerolac Paints which types of facility you want from
the Company?

Market Profitability Supply of Goods Better Sales team service

Regular Scheme & Reward Others

21) Is there any feedback option available in nerolac ltd?

Yes No

22) . Is Customer feedback or dealer feedback option available in NEROLAC Ltd. ?

Yes No

23) Are you satisfied with Nerolac Service?

Yes No
24) What is the response of Nerolac Paint amongst consumers?

Good Better Excelent

25) Does your shop gets visited by companies sales personnel?

Yes No
 26) Do you know that Nerolac Paint is the Subsidiary Company of Kansai Paint Japan which is one of the top ten
Paint Companies in the world?

Yes No

Date:
Dealer Signature:

BIBLIOGRAPHY

Marketing Management : Analysis, Planning

Implementation and Control

Prentic Hall Inc., Ninth

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Marketing Research : Seventh Edition, Prentice Hall

Inc., By Luck, David J. and Rubin

Ronald S.

Sales Management : Eighteenth Indian Reprint,

Prentic Inc., by Still,

Edward W, Sand Govoni,

Magazine : Business India, ET