Professional Documents
Culture Documents
By
Aman Walia
Student (MBA IV)
Roll No: 81001317006
Certificate
This is to certify that the research project report entitled, “A study of dealer,s behavior in
marketing paints” submitted in partial fulfillment of the requirement for the degree of
Master in Business Administration at GJIMT Mohali, (MBA IV) of the Punjab Technical
University, Jalandhar is a bonafide research work carried out by Aman Walia(MBA-1V,
Roll no. 81001317006) under my supervision and that no part of this research project has
been submitted for any other degree.
The assistance and help received during the course of this investigation has been
fully acknowledged.
At the very outset, I thank the Almighty for his kind blessings, which have made possible
this research work.
I would like to place on record my sincere and whole hearted sense of gratitude and in
debtness to my learned guide, Mr. Ashutosh modi, for his ever willing, competent and
generous help, continuous interest, valuable guidance and constant encouragement
throughout the period of my study.
Words are inadequate to acknowledge my esteemed friends for their ever encouraging
support, selfless love and care. They are valuable asset to me who have come to my help
countless times. I extend my sincere gratitude to them.
Aman Walia
MBA IV
Roll No: 81001317006
GJIMT,Mohali
TABLE OF CONTENTS
CHAPTERS PAGE NO
BIBLIOGRAPHY
ANNEXURE
LIST OF TABLES
TABLE TITLE PAGE NO.
NO
1.1 TABLE SHOWING RESPONDENTS
EXPERIENCE IN PAINT BUSINESS
1.2 TABLE SHOWING REASON FOR STARTING
A HARDWARE SHOP
1.3 TABLE SHOWING RESPONDENTS
PRODUCT RANGE
1.4 TABLE SHOWING RESPONDENT’S MAIN
PRODUCT
1.5 TABLE SHOWING OPINION OF DEALERS
ABOUT THE PRICE OF PAINTS IN GENERAL
1.6 TABLE SHOWING THE OPINION OF
DEALERS ABOUT THE PRICE OF
DIFFERENT PAINTS
1.7 TABLE SHOWING EXPECTATION OF
DEALERS WHILE TAKING A DEALERSHIP
1.8 TABLE SHOWING DEALER’S
RECOMMENDATION TO CUSTOMERS IF
THEY WON’T ASKS FOR A PARTICULAR
BRAND.
1.9 TABLE SHOWING REASON FOR PUSHING A
PARTICULAR BRAND
1.10 TABLE SHOWING RESPONDENTS
DEALERSHIP WITH SURFA COATS
1.11 TABLE SHOWING PERIOD OF THEIR
DEALERSHIP WITH SURFA COATS
(BANGALORE) LIMITED
1.12 TABLE SHOWING DIFFICULTIES FACED BY
THE DEALERS FROM THE COMPANY
1.13 TABLE SHOWING RATING OF SURFA
COATS ON DIFFERENT PARAMETERS
1.14 TABLE SHOWING OPINION OF DEALERS
ABOUT THE QUALITY OF SURFA COATS
1.15 TABLE SHOWING THE OPINION OF
DEALERS ABOUT THE QUALITY OF
DIFFERENT PAINTS
1.16 TABLE SHOWING PERCENTAGE OF SURFA
COATS SALES FROM THE SHOPS TOTAL
TURNOVER
1.17 TABLE SHOWING TOTAL TURNOVER OF
THE SHOP
1.18 TABLE SHOWING COMPARISON OF TOTAL
TURN OVER OF THE SHOP AND SURFA
COATS SHARE OF SALES
1.19 TABLE SHOWING REASON FOR SELLING
PARTICULAR BRAND TO THE MAXIMUM
EXTENT
1.20 TABLE SHOWING REASON FOR
RECOMMENDING A PARTICULAR BRAND
TO THE CUSTOMER
LIST OF GRAPHS
GRAPH TITLE PAGE NO.
NO
2.1 PIE CHART SHOWING RESPONDENTS
EXPERIENCE IN PAINT BUSINESS
2.2 PIE CHART SHOWING REASON FOR
STARTING A HARDWARE SHOP
2.3 GRAPH SHOWING RESPONDENTS
PRODUCT RANGE
2.4 GRAPH SHOWING RESPONDENT’S MAIN
PRODUCT
2.5 GRAPH SHOWING OPINION OF DEALERS
ABOUT THE PRICE OF PAINTS IN GENERAL
2.6 GRAPH SHOWING THE OPINION OF
DEALERS ABOUT THE PRICE OF
DIFFERENT PAINTS
2.7 PIE CHART SHOWING EXPECTATION OF
DEALERS WHILE TAKING A DEALERSHIP
2.8 PIE CHART SHOWING DEALER’S
RECOMMENDATION TO CUSTOMERS IF
THEY WON’T ASKS FOR A PARTICULAR
BRAND.
2.9 PIE CHART SHOWING REASON FOR
PUSHING A PARTICULAR BRAND
2.10 PIE CHART SHOWING RESPONDENTS
DEALERSHIP WITH SURFA COATS
2.11 PIE CHART SHOWING PERIOD OF THEIR
DEALERSHIP WITH SURFA COATS
(BANGALORE) LIMITED
2.12 GRAPH SHOWING DIFFICULTIES FACED BY
THE DEALERS FROM THE COMPANY
2.13 GRAPH SHOWING RATING OF SURFA
COATS ON DIFFERENT PARAMETERS
2.14 PIE CHART SHOWING OPINION OF
DEALERS ABOUT THE QUALITY OF SURFA
COATS
2.15 GRAPH SHOWING THE OPINION OF
DEALERS ABOUT THE QUALITY OF
DIFFERENT PAINTS
2.16 PIE CHART SHOWING PERCENTAGE OF
SURFA COATS SALES FROM THE SHOPS
TOTAL TURNOVER
2.17 GRAPH SHOWING TOTAL TURNOVER OF
THE SHOP
2.18 GRAPH SHOWING COMPARISON OF TOTAL
TURN OVER OF THE SHOP AND SURFA
COATS SHARE OF SALES
2.19 PIE CHART SHOWING REASON FOR
SELLING PARTICULAR BRAND TO THE
MAXIMUM EXTENT
2.20 PIE CHART SHOWING REASON FOR
RECOMMENDING A PARTICULAR BRAND
TO THE CUSTOMER
EXECUTIVE SUMMARY
Introduction
General Introduction
Composition of paint
Types of paint
INTRODUCTION
General Introduction
The Paints are extensively being used in our daily life as well as in
industries for decorative and protective coatings plays an important role.
Paint industries in India have widely been developed with the help of petro-
chemical industry and development of paint technology it is now possible to
manufacture large quantities of improved quality in less time and
investment.
The term ‘Paint’ and ‘Surface coating’ are often used interchangeably.
Surface coating is a more general description of any material that may be
applied as a thin continuous layer to the surface. Paint was traditionally
used to distinguish pigmented materials from clear films, which are more
properly called ‘Lacquers’ or ‘Varnishes’.
Composition of Paint:
Pigments:
Pigments render colors and opacity to the paint. Pigments
are solid materials in powder form, incorporated in paints to give
opacity, colors or chemical reinforcement to the film. In primers the
pigments are mainly incorporated to give rust inhibiting properties.
Media or Binder or Vehicle:
Binders hold the paint together and also bind it to the
surface being painted, thus promoting durability. Paint as explained
earlier is essentially an intimate blend of pigments, medium and
solvent. Pigments have one property in common, i.e., they are all
powders and as such are of no use in either protection or decoration,
until they are blended with materials, which are capable of forming a
continuous film, and this former is known as the medium or binder or
vehicle.
Solvents or Thinners:
Solvents give paint its flowing property, enabling
brushing/rolling on a surface. In a liquid paint, solvents or thinners
serve mainly to reduce the viscosity of the paint in order to make it
suitable for application as required and enable the paint to wet and
spread on the surface in a continuous manner. Depending on the
solvent used, paints can be categorized as water-based or oil-based.
Additives:
Additives endow the paint with special properties such as
resistance to fungus, rust, etc.
Types of Paint
Paints are generally classified into
1. Decorative Paints: Mainly household paints. These are generally
of air-drying quality.
2. Industrial Paints: These can be either of air-drying or stoving
quality. These are used on while goods, automobiles, marine
transport, coils etc.,
3. High Performance Coatings: These paints generally air dry, at
room temperature or with the help of a curing agent. These paints are
used for painting structures under marine conditions and in chemical
factories like fertilizer, petrochemical in highly corrosive atmospheres.
4. Varnishes or Lacquers: These can be generally considered as
unpigmented paints, i.e. paints without any obliterating properties.
5. Powder Coatings: These are coating materials in powder form
prepared from special solid resins, pigments and hardening agents.
They are applied by electrostatic spraying and cured by stoving.
CHAPTER 2
Design of the study
Problem Statement
Objective of the Study
Scope of the Study
Research Methodology
Limitations of the study
RESEARCH METHODOLOGY
2. Data sources:
Primary data:
A Structured questionnaire was administered to obtain
data for analyzing the dealer’s perception towards various
brands of paint with reference to Surfa coats.
• Secondary data:
Secondary data was collected through Textbooks,
company profile, magazines, and from different website.
3. Sampling Plan
• Convenience Sampling
Convenience sampling is used when the researcher is
interested in getting an inexpensive approximation of the truth. As the
name implies the sample is elected because they are convenient.
• Descriptive Research
Descriptive research is used to obtain information concerning
the current status of the phenomena to describe, “What exists” with
respect to variables or conditions in a situation.
• Marketing Research
Marketing research is the collective analysis and interpretation
of data for guiding marketing decisions.
CHAPTER 3
INDUSTRY PROFILE
Growth and Development of the Industry
Paint industry is high raw material intensive and reasonable level of
fixed capital requirement industry. Because of this nature of the industry,
there is mushroom growth of small and unorganized sector tiny paint
manufacturers in India. Some of the main raw materials used in the
manufacture of paints are Pthalic Anhydride, Titanium Dioxide, Penta
Paraxylene, Orthoxylene, Pigments and Additives.
The Indian paint industry has become strong and secure over the past
four years with the organized sector taking away shares from the
unorganized segment, making it worth Rs 7500 cr. The paint market is
expected to grow at 8 to 10 % p.a. over the next few years. The growth
could further rise, if industrial activity picks up as the industrial paint
segment is gaining more importance. Asian Paints offers the best exposure
being the market leader and an innovative marketing company.
Background
Structure
1. Decorative/Architectural finishes
2. Industrial finishes.
Prospects
• India has one of the lowest per capita consumption of paints in the
world at 0.34 kgs as compared to the world average of 22 kgs indicating a
huge demand potential. The industry is also in sharp contrast to the world
where the demand for industrial paints is much higher than decorative. Indian
industry is however witnessing a shift towards the more lucrative industrial
paint segment.
• In the decorative segment, rural markets hold the key. Successful
monsoons are thus vital for growth in this segment. Moreover, increase in the
number of housing units will see a secular demand growth of 10 to 12% per
annum for decorative paints (It is estimated that India will add 40 m housing
units in the next 7-8 years to bridge the massive shortfall in supply).
• In the industrial segment, more than 50% of demand comes from
automobile sector followed by 15-20% from consumer durables. With the
entry of MNCs in both these segments, the emphasis on paint quality has
increased. However a slowdown in the economy can lead to poor off take of
these paints.
• With economic liberalization the market for lucrative industrial paints is
expected to grow at 18% pa in tune with the growth in the user industries like
automobiles and consumer durable. The other users of industrial paints -
chemical units, power units, and refineries - are all increasing capacities
leading to increased demand.
• Increasing competition will reduce the pricing power of all companies.
This coupled with high selling costs is likely to squeeze margins. The
organized sector will see their market share increase because the protection
offered to the small-scale sector has been reduced.
Future of the Industry
India is one of the lowest per capita consumption of paint in the
world, thereby, indicating a huge demand potential in the years to
come. The paint market is expected to grow at 8-10% p.a. over the
next few years. In the decorative paints segment, rural markets hold
good potential and increasing number of housing units will see a good
growth in this sector.
Central and state governments are committed to provide
shelter for each citizen, which will boost the demand for decorative
paints in the years to come. Apart from the commitment of central and
state governments to provide houses for “low income” group of
population, Housing Development Corporation, commercial banks
have been liberally financing the housing sector - both group Housing
and individual housing. Such activities will result in creating increased
demand for architectural paints.
Overall, the outlook for the paint industry appears very bright
and with the rising incomes and living standards, the secondary
market (repainting of buildings) should also grow fast. In the light of
foregoing facts, the growth potential for the company looks extremely
bright, in the years to come.
Major Clientele
Company’s clientele includes leading architects, builders, civil
contractors, developers and painting contractors. Below are the lists of
leading clientele (Bangalore);
• ISRO
• ELECTRICITY BOARDS
• INFOSYS
• ORACLE TECHNOLOGIES
• TAJ GROUP OF HOTELS
• HOUSING BOARDS
• MILITARY ENGINEERING SERVICES
• RAHEJA GROUP (Raheja Park, Raheja Residency, Raheja Harbour,
Raheja Chambers)
• INDIAN INSTITUTE OF PLANTATION MANAGEMENT
• NATIONAL CONSTRUCTION CORPAORATION
• IBM
• WIPRO C2 PROJECT (Electronic City)
• BISHOP COTTON BOYS HIGH SCHOOL
• ST. JOSEPH’S COLLEGE
• MALLYA HOSPITAL
• TRINITYN HEART FOUNDATION
• BHEL TOWNSHIP
• ST. MARY’S CHURCH
• ST. ANDREW’S CHURCH and many more
Product Profile
BRAND NAME PRODUCT CATEGORY
Surfa Cem Decorative Water-Proof
Cement Paint
Surfa Tex Matt Textured Matt Finish for
Exteriors
Surfex Premium Pure Acrylic Exterior
Emulsion Paint
Surface Smooth Budget Exterior
Emulsion
Surfa Nova Designer Textured Coatings
for Interiors
Celeste Premium Luxury Wall Finish
for Interiors
Surfalac Acrylic Emulsion Acrylic Emulsion Paint for
Interiors
Surfa Acrylic Acrylic Distemper For
Distemper Interiors
Surfa Antiche Premium Italian Marble
Finish for Interiors
Surfa Multicolor Multi Color Coating System
Surfalac Primers Range of Primers for
Cement, Wood and Metal
Surfaces
Emerald MPS Enamel Premium High Gloss
Synthetic Enamel
Coral MPS Enamel Multi Purpose Synthetic
Enamel
Surfa Satin Finishes Enamel with Egg Shell
Finish
Surfa Floor Coat Floor Paint with Glossy
Finish
Surfa Wall Putty Acrylic Wall Putty for
Interiors
Surfa Unicoat KPF Knifing Paste Filler (Grey
and White)
Surfa Hammer tone Hammer tone Finish
Finish
Surfa Synthetic Clear Synthetic Clear Varnish for
Woodwork Like Doors
Windows and Furniture
Surfa Hi-Tint Strainers Universal Strainers for
Tinting Interior Paints
Paint Systems
A typical architectural paint system might consist of a ‘primer’,
an ‘undercoat’ and a’topcoat’. The primer is designed largely to seal
the substrate and provide a means of achieving good adhesion
between the substrate and undercoat. It also provides protection to
the substrate against corrosion or rotting. The undercoat may
contribute to opacity, but its main purpose is to contribute significantly
to the obliteration of the surface and to provide a smooth surface upon
which to apply the topcoat. The smooth surface is obtained by
abrading the dried undercoat with fine Tungsten Carbide Paper or by
other suitable means. The topcoat is applied to complete the process
of obliteration and to provide an appropriate aesthetic and protective
effect. The system as a whole will finally determine both these
properties.
Methods of Application
There are four main methods of applying paint
1. By spreading e.g. with brush or roller.
2. By spraying e.g. air-fed spray, airless spray, hot spray and
electrostatic spray.
3. By flow coating e.g. dipping, curtain coating, roller coating.
4. By electro deposition.
CHAPTER 4
Data Analysis
ANALYSIS OF DATA
Respondents Business Period
1.1 Table showing the respondents experience in this field
Sl. No. Years No of Percentage
Respondents
1 0-10 45 45
2 11-20 50 50
3 21-30 03 03
4 Above 30 years 02 02
Source: Primary Data
Analysis and Interpretation
From the above table it is clear that 50 % of respondents are
doing this business from past 11to 20 years 95% of respondents are
falling in between 0 to 20 years. Only two percent of respondents are
experience above 30 years.
2.1 Pie chart showing the respondents experience in this field
3 4
3% 2%
1
45%
2
50%
4
1
11%
26%
3 2
46% 17%
100
100
90
80
Respondents
60
50
40
30
20
5
0
1 2 3 4 5
Products
80
71
70
60
Respondents
50
40
30
20 15
12
10
1 1
0
1 2 3 4 5
Paints
Respondents
60
50
40
30
20 14
10 1 1
0
1 2 3 4
Opinion
90 80
80 70
70 60 60
Parameter
60
50 45 45
40 40
40 30
30 20 20
20
10 5 5
0 0
0
Asian Paints Good lass Berger Paints Surfa Coats ICI Paints
Nerolac
paint
Dealer’s Expectation
1.7 Table showing the expectation of dealers while taking a dealership
Sl. Expectation No of Respondents Percentage
No.
1 Good Margin 100 36
2 High Demand 60 21
3 Good Supply 90 32
4 Long credit period 05 02
5 Quality 25 09
Source: Primary Data
Analysis and Interpretation
From the above table it is clear that 36%of the respondents are
expecting good margin while taking a dealership and 32 % of them are
expecting proper supply of product that is timely delivery of product.
Only 09% of them are expecting good quality while taking a
dealership. So it is clear that most of respondents taking dealership of
particular company only because of good margin without giving due
importance to the quality of product.
2.7 Pie chart showing the expectation of dealers while taking a
dealership
5
4
9%
2%
1
36%
3
32%
2
21%
5 1 2 3
10% 4% 1% 5%
4
80%
5 1
31% 33%
2
3 4%
4
3%
29%
Dealership
1.10 Table showing respondent’s dealership with Surfa coats
Sl. No. Response No of Percentage
respondents
1 Yes 100 100
2 No 0 0
Source: Primary Data
Analysis and Interpretation
Form the table it is clear that all the respondents who had given
their opinion are dealers of Surfa coats because we contacted
respondents through the companies database and according to our
convenience.
1
100%
Period of Dealership
1.11 Table showing the period of their dealership with Surfa coats
(Bangalore) Limited
1
65%
60
50
50
Respondents
40
30
20
20
10
10 5 5
0
1 2 3 4 5
Difficulties
100 95
90
90 85
80
65
Parameters
70
60 55
50
40
30 25 25
20
20 15
10 10
10 5
0 0 0
0
1 2 3 4 5
Particulars
4 1
5% 16%
3
26%
2
53%
50
Parameter
40
40 35 35
30 30
30
20
10
10 5 5
0 0
0
Asian Paints Good lass Berger Paints Surfa Coats ICI Paints
Nerolac
Paint
Surfa Coats Sales Percentage from the Total Turnover of the Shop
1.16 Table showing percentage of Surfa coats sales from the shops
total turnover
Sl. No. Percentage No of
respondents
1 0-05 05
2 06-10 05
3 11-15 10
4 16-20 20
5 Above21 60
Source: Primary Data
Analysis and Interpretation
From the above table it is clear that 60% of the respondents
have above 21% sales of Surfa coats from their total sales. So we
can say that those who have the dealership of Surfa coats are selling
more and more of Surfa products only.
2.16 Pie chart showing percentage of Surfa coats sales from the
shops total turnover
1 2
5% 5% 3
10%
5 4
60% 20%
60
50
50
Respondents
40
30
20
20
10 10
10 7
3
0
1 2 3 4 5 6
Rs
Rupees (lakhes)
1-20 0 0 0 0 0
21-40 0 0 0 0 0
41-60 0 0 0 06 20
61-80 01 05 02 10 26
81-100 0 0 0 0 10
Above 100 04 0 08 04 04
Source: Primary Data
Analysis and Interpretation
From the above table it is clear that those who have above 21%
Surfa coats share of sales have total turnover of 61 to 80 lakhes per
annum. More than 60% of Surfa dealers total turn over is above 61
lakhes from this it is clear that most of Surfa dealers are big business
magnets.
2.18 Graph showing comparison of total turn over of the shop
and Surfa coats share of sales
30
26
25
Surfacoats share
20
20
15
10 10
10 8
6
5
4 44
5
2
1
0 0000 00000 000 0 000 0
0
1 2 3 4 5 6
Rs
3
40%
2
20%
4
35%
3
15%
Ranking of brands
1.21 Table showing the ranking of different brands
Sl. No. Brands No of respondents Rank
1 Asian Paints 30 1
2 Berger Paints 24 2
3 ICI Paints 18 3
4 Good lass Nerolac 16 4
paints
5 Surfa Coats Paints 12 5
Source: Primary data
Analysis and Interpretation
From the table it is clear that Asia paints is ranked as
number one it is due to brand awareness in the market and product
quality. Surfa Coats stands in fifth place it may be because of low
awareness in the market.
SUMMARY OF FINDINGS
This study has been conducted in order to study the behavior of
dealers towards selling paints with reference to Surfa Coats
(Bangalore) Limited. The study also found various shortcomings of the
system through dealer survey with the help of structured questionnaire
and interview with the paint dealers and company employees. The
following is the summary of some important findings of this study:
• Surfa Coats (Bangalore) comes under the unorganized sector.
• The company has been practicing push strategies because it has
low brand awareness.
• From the data collected it is clear that no one changed their
dealership so far.
• Most of the dealers selling Asian paints and Surfa coats
simultaneously but their main products are Asian paints.
• 36% percent of the respondents expect good margin, 32% of them
are expecting proper supply while taking a dealership of particular product.
• If customer doesn’t asks for a particular brand then dealers usually
recommend Surfa coats because of good margin and long credit period.
• 55% of the respondents faced the problem of misrepresentation
from the sales representatives of the company.
• Dealers have a very good opinion about the quality of ICI
paints.70% of respondents had an opinion that quality of ICI paints is good
and 30% of respondents had an opinion that quality of Surfa coats is good.
So it is clear that dealers are more satisfied with the quality of ICI paints than
other paints..
• More than 20% of total turnover of many dealers comes from the
Surfa coats. It clearly shows that those who have a dealership with Surfa
coats (Bangalore) limited are making more sales of Surfa coats than other
products so as to earn more profit.
• From survey we can say that most of the big hardware shops have
dealership of Surfa coats.
• According to the dealers price of the Surfa coats is comparatively
high.
• From the survey it was clear that good quality and rate of
commission were important factors, which were considered for pushing a
particular brand by dealers.
• 65% of dealer had taken dealership of Surfa coats recently but
they are selling it as their main product.
• Dealers of Surfa coats have a very good opinion about the
payment terms and credit period of the company.
• From the survey it is clear that most of the dealers are satisfied
with the quality of ICI paints but not with price.
SUGGESTIONS
From the study of Dealers behavior while selling paint and the
survey conducted to obtain the opinions of dealers about Sales
Strategies, certain shortcomings in the system were found and based
on this suggestions have been given in order to improve the system.
They are as follows: -
• Surfa Coats (Bangalore) Limited should organize the dealers and
motivate them to increase the number of retailers.
• The company should make tie up with some organization to see
that Surfa Coats is used in Painting their advertisements like billboards.
• The company should concentrate on increasing the sales of paints
through Pull Strategy rather than Push Strategy of Marketing. It has to invest
on bringing brand awareness.
• The company has to practice more transparency in its
administration for example through website.
• ICI Paints should take measures to decrease the price with same
quality.
• Surfa Coats should take steps to increase the quality of the
product with out increasing the price.
Attracting a customer is more expensive than retaining the
customer So it would be advisable for the company to create an
effective customer relationship management through which it
can grow to greater extent.
BIBLOGRAPHY
6. www.ASK.com ----
Annexure
QUESTIONNAIRE
Dear respondent,
I am Kavitha K. C. student of final semester MBA, Alliance Business
Academy, Bangalore .I am doing a survey on Dealers behavior while pushing
a product, so I would be grateful if you could spend some of your time in filling
up this Questionnaire.
Name
Phone No
_____________________________________
5. What is your opinion about price of paints in general?
a) Yes b) No
and brand_________________________________________
a) Yes b) No
If yes for how long have you been the dealer of Surefa coats ?
________________________________________________
14. What percentage of your total turnover comes from Surfa coats?
a) 0 - 5 b) 6 - 10 c) 11 - 15 d) 16 - 20 e) Above 21
a) 1 – 20 b) 21 – 40 c) 41 – 60 d) 61 – 80