BERGER PAINTS INDIA LTD.
ADVERTISING
STRATEGIES OF PAINT
COMPANIES IN INDIA
A Study into the recent trends of advertising
strategies of Paint Companies in India
Sayan Chakraborty
Enrolment No- 030206027
Marketing Major
PGDM 2012-14
Unitedworld School of Business
Ahmedabad
ACKNOWLEDGEMENT
For achieving any destination, efforts are the path. On the path, we meet lots of people who
support us to make our journey memorable & few of them accompany us till we get the goal.
After getting the goal we must not forget the presence of such people who made our journey
easier. I express my sincere regard & my gratitude to all of them.
Sometimes words fall short to express your gratitude to people who have been instrumental in
providing you success in any juncture. The same happened to me during PGDM course at the
Unitedworld School of Business, Ahmedabad.
I express my indebtedness to my guide, Dr. Bhuvneshwar Gupta, Director, Unitedworld
School of Business, for providing me with the opportunity to undertake the dissertation
project of my own choice and also for carrying it out successfully. I have grasped a lot of
learning and working under his constant supervision and guidance was a great experience
throughout my course.
I would also like to present my sincere thanks to my faculty guide …………………….,
Faculty Guide, Unitedworld School of Business, Ahmedabad for being a constant source of
knowledge, information and motivation.
Last but not the least I am also thankful to my friends and family who have provided me with
their valuable help all throughout my course and also for their valued suggestion and
constructive criticism.
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APPROVAL OF THE FACULTY GUIDE
This is to certify that the project work titled “Advertising Strategies of the Paint
Companies in India” is a piece of work done by Mr. Sayan Chakraborty (PGDM, Batch
2012-14) under my guidance and supervision. To the best of my knowledge and belief this
report includes the work of the candidate himself and fulfills the requirement of the institute.
Faculty Guide
Unitedworld School of Business, Ahmedabad
.
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STUDENT DECLARATION
I hereby declare that the project titled “Advertising Strategies of Paint Companies in India”,
with special reference to Berger Paints India Ltd. submitted by me to Unitedworld School of
Business in partial fulfillments of requirements for the award of degree of Post Graduate
Diploma in Management, is my original work and interpretations drawn therein are based on
material collected by myself.
Place: Ahmedabad
Sayan Chakraborty
Date: 7 April, 2014
PGDM 2012-14
Unitedworld School of Business
Ahmedabad
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OBJECTIVES OF THE PROJECT
The basic objective of the project undertaken was to understand the various sets of
advertising or marketing communications strategies adopted by the major paint companies
operating in India
The objectives can be summarized as follows:

To understand the advertising strategies the major players in the paint industry use.

To study the evolution of the advertising trends in the industry

To analyze the effectiveness of each methods of advertising implemented by these
companies

To understand the recent trends in the advertising strategies

To find a scope of improvement, if any.
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EXECUTIVE SUMMARY
Advertising is the main tool used to sell products and services. Every company irrespective of
the industry in which it operates understands the importance of a successful advertisement
campaign. Great brands are those that effectively formulate their advertisement strategies as
per the consumer behaviour of their target group and then also implement the planned
strategy effectively.
This paper signifies the importance of advertising in the Indian Paints Industry which is
seeing constant and dramatic changes due to the rise in income level, urbanization, growth of
infrastructure and rural development. It highlights that the Paints Industry is one of the most
consistent industries in India that is growing faster than the overall Indian GDP. Thus, the
major players in this sector are constantly changing their marketing communications
strategies to gain competitive advantage.
The paper starts with a detailed description about the Indian Paints Industry- its history, its
way of operations, its market segmentation and size, its growth over the years, etc. The
second part of this report deals with the company analysis of Berger Paints, one of the biggest
paint companies in India. It shows its performances over the years through some valuable
financial figures. The third part of this report understands the concept of Advertising. This
portion explains why advertising is the most effective way of communication. It also explains
the various models of advertising that are commonly used, the types of advertising methods
and also the growth of the advertising industry in India.
The final portion deals with the various advertising strategies used by the five major players
of this industry- Asian Paints, Berger Paints, Kansai Nerolac, AkzoNobel and Jenson
Nicholson. It discusses about each type of advertising method that these companies use and
also the effectiveness of these methods and what can be the scope of improvement of these
companies in terms of their advertising strategies.
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TABLE OF CONTENTS
About The Industry- The Indian Paints Industry…………………………………..11

The Beginning………………………………………………………………….12

Overview……………………………………………………………………….13

Workings of the Industry………………………………………………………14

Competition…………………………………………………………………….15

Market Size and Segmentation…………………………………………………16

Porter’s Five Forces Analysis…………………………………………………..18

Growth Drivers of the Industry…………………………………………………18

Major Concerns…………………………………………………………………20

Future Outlook………………………………………………………………….20
About The Company- Berger Paints India Ltd……………………………………..22

Company Overview- 3CET…………………………………………………….23

SWOT Analysis…………………………………………………………………30

PESTEL Analysis……………………………………………………………….31

Corporate Social Responsibility………………………………………………..32

Product Portfolio……………………………………………………………….33

Acquisitions and Mergers………………………………………………………38

Financials………………………………………………………………………39

Awards & Certifications………………………………………………………43
Introduction of the Topic- Advertising in India and the Recent Trends………….45

Introduction of the Topic……………………………………………………..46

Advertising Models…………………………………………………………..54

Commonly Used Advertising Methods………………………………………58

Growth of Advertising in India……………………………………………….63

Creativity in Advertising………………………………………………………70
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Research Methodology……………………………………………………………..74

Introduction…………………………………………………………………75

Marketing Research…………………………………………………………75

Research Design……………………………………………………………76

Sources & Methods of Data Collection…………………………………….77
Advertising Strategies Adopted by Major Paint Companies in India………….79

Introduction…………………………………………………………………80

Branding Strategies of Five Major Players………………………………….83

Advertising Methods………………………………………………………..86
o Television Commercials
o Print Ads
o Online Advertising
o Celebrity Branding
Conclusion………………………………………………………………………….128
Bibliography……………………………………………………………………….129
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LIST OF TABLES
Table 1- Berger Paints’ Competitor Analysis…………………………………………27
Table 2- Financial Results & Appropriations…………………………………………39
Table 3- Balance Sheet……………………………………………………………….40
Table 4- Ad Revenues in India……………………………………………………….64
Table 5- Indian Advertising Industry- Market Size and Projections…………………65
Table 6- Advertising Revenue………………………………………………………..65
Table 7- Indian Print Industry Overview……………………………………………..66
Table 8- Top Advertisers in India……………………………………………………69
Table 9- Factors Influencing Consumer Behaviour………………………………….81
Table 10- Celebrity Endorsers……………………………………………………….126
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LIST OF FIGURES
Figure 1.1- Indian Paint Industry Segmentation…………………………………13
Figure 1.2- Workings of the Industry……………………………………………14
Figure 1.3- Market Share of Paint Companies…………………………………..16
Figure 1.4- Indian Paints Industry Market Size for FY 2006-2012………………16
Figure 1.5- Decorative Paints Segmentation According To Revenue…………...17
Figure 1.6- Industrial Paints Market Share……………………………………….17
Figure 1.7- Indian Paints Industry Projections for the Next Few Years………….21
Figure 1.8- Key Observations of the Industry……………………………………21
Figure 2.1- Berger Paints- Over the Years………………………………………23
Figure 2.2- Berger Paints- Product Portfolio……………………………………33
Figure 2.3- Important Financial Charts and Figures…………………………….41
Figure 2.4- Market Capitalization……………………………………………….42
Figure 2.5- Distribution of Income………………………………………………42
Figure 2.6- Quarterly Analysis…………………………………………………..43
Figure 3.1- Classification of Advertising……………………………………….50
Figure 3.2- IMC Planning Process………………………………………………51
Figure 3.3- Product Life Cycle…………………………………………………..57
Figure 3.4- Indian Advertising Industry- Market Share…………………………66
Figure 3.5- Indian Print Industry- Segmentation………………………………..67
Figure 3.6- Indian Digital Advertisement Market………………………………67
Figure 3.7- Online Advertising Revenue Mix…………………………………..68
Figure 3.8- Expected Internet Connections in India……………………………68
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Figure 3.9- Online Advertising Sectors…………………………………………69
Figure 3.10- Creative Appeals in Advertisement……………………………….72
Figure 4.1- Secondary Data Collection Sources………………………………...78
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ABOUT THE INDUSTRY- THE INDIAN PAINTS INDUSTRY
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THE BEGINNING
India is currently one of the biggest contributors in the global paint and coatings industry.
The domestic paint industry however has a long history which dates back to 110 years when
the first manufacturing plant was set up by Shalimar Paints in Calcutta (which is now called
Kolkata) in 1902. Until World War II, the industry consisted of only few local producers and
two foreign companies. Thus, the market then was controlled by foreign companies.
However, local entrepreneurs started to operate after World War II when the imports were
stopped. Many local manufacturing facilities were set up, but still the market was largely
dominated by the foreign companies. Many foreign companies also set up their
manufacturing facilities in the country after the war. The British companies that dominated
the market then were: Goodlass Walls (later became Goodlass Nerolac), ICI, British Paints
(now Berger Paints), Jenson & Nicholson and Blundell & Eomite.
However, after the Indian independence, the market has grown exponentially over the year
with the emergence of new entrants in the market and also the constant shift in the consumer
behaviour. Currently, the market is mostly dominated by the unorganized sector. There are 12
major players in the organized sector and over 2,000 in the unorganized sector. Thus, it can
be said that unorganized sector occupies a large space in this market. But this has also
changed over the years because the unorganized sector occupies a nearly 70% market share in
this booming Indian paints industry. In the 1990s, the paint industry achieved a staggering
growth of about 12-13 per cent annually due to the growing Indian economy and also the
drastic reduction of excise from 40% to 16%. However, the growth was in single digits
during 2002-03 but there was a revival in 2003-04 when the industry achieved a robust
growth rate of 13%.
FIRST MANUFACTURING PLANT IN INDIA
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OVERVIEW
The Indian Paints industry, being over 100 years old occupies 4.3% of the global market of
paints and coatings. It is currently an industry of worth more than Rs. 24,000 crores or USD 6
billion. The market size of the Indian paints industry is about 2.7 million tonnes. India has
also been a major export of paint products in the global market.
The Paint Industry is generally classified into two segments- Decorative Paints and
Industrial Paints. Decorative Paint segment includes interior and exterior wall finishes,
enamels, wood finishes and ancillary products whereas the Industrial Paint segment includes
automotive and industrial, protective, powder, coil and marine coatings. The decorative
paints segment occupies the largest segment in this industry with almost 70% of the
industry’s total sales while the industrial segment occupies the remaining 30%. The main
drivers of the decorative segment are the realty and housing sector which not only forms the
largest demand in this segment but also the entire industry. Hence, it can wisely said that
realty and housing sector drives the entire paint industry in India. As far as the industrial
paints is concerned, sectors like infrastructure, automobiles, construction, consumer durables
and other sectors that require paint form the largest demand.
FIGURE 1.1- INDIAN PAINT INDUSTRY SEGMENTATION
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In the financial year, the paint industry stood at Rs.26, 040 crore, out of which the decorative
segment contributed nearly 71 per cent at Rs 18,490 crore, while the remaining Rs.7, 550
crore was contributed by the industrial segment. In terms of volume, the industry stood at
3.11 million tonnes, of which decorative segment accounted for nearly 77 per cent share.
WORKINGS OF THE INDUSTRY
The industry operates in the following manner:
FIGURE 1.2- WORKINGS OF THE INDUSTRY
Raw Materials- Raw Materials constitute 56% of the entire expenditure of the paint industry.
Titanium Oxide is the major raw material for paint companies. The fluctuation in the prices
of titanium oxide also affects the cost of paint which in turn affects the overall demand and
supply of the products.
End-users- Household sectors are the prime end-users of decorative paints, which form the
major segment of this industry. Automotive, construction and consumer durables form the
user segment of the industrial paints.
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COMPETITION
The competition in the paint industry can be divided into two parts- Organized &
Unorganized. As mentioned earlier, there are around 12 major paint companies in India that
form 65% of the total revenue. On the other hand, there are over 2,000 in the unorganized
sector that constitutes the remaining 35% of the market share. It is often observed that the top
5 companies contribute to 80% of the organized market. As the paints sector is more
technologically oriented, the power of differentiation in terms of quality lies on the major
players’ technological expertise. Thus, the existing companies are fighting it hard to capture
the maximum share in the market through collaborations with foreign companies. Some of
the leading players in the paint industry are:

Asian Paints

Berger Paints

Kansai Nerolac

Akzo Nobel ICI

Shalimar Paints

Jenson Nicholson
The Indian Paint Industry is currently estimated at Rs. 26,000 crores, which is expected to
touch Rs. 50,000 crores during the FY2016. Asian Paints is and has been over the years the
clear cut market leader in this industry. However, it has been facing stiff competition from
companies Kansai Nerolac and Berger Paints very recently. The paint industry is generally
divided into two segments- Decorative & Industrial. Kansai Nerolac is the market leader in
the industrial segment while Asian Paints is the market leader in the decorative segment.
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MARKET SHARE OF PAINT COMPANIES (FY2012)
3% 0%
13%
16%
Asian Paints
51%
Berger Paints
Kansai Nerolac
Akzo Nobel ICI
17%
Shalimar Paints
Jenson Nicholson
FIGURE 1.3- MARKET SHARE OF PAINT COMPANIES
MARKET SIZE AND SEGMENTATION
Market Size:
The financial year 2012-13 has been challenging for the paint industry due to various reasons
such as higher interest rates, increase in raw materials and inflation. In spite of this, the
industry is growing at a rate higher than the country‘s GDP. For the FY2012, the industry
stood at Rs. 28,500 crores growing at 12.5% from previous year. The decorative segment
accounted for 79% and stood at Rs. 20,000 crores while the industrial segment accounted for
the remaining Rs. 8,500 crores.
The market size of the paint industry over the years can be highlighted in the following
figure:
FIGURE 1.4- INDIAN PAINTS INDUSTRY MARKET SIZE FROM FY 2006-2012
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Segmentation:
The Paint industry is generally segmented into two parts- Decorative & Industrial. The
decorative segment accounts for 79% of the total industry and stands at Rs. 20,000 crores
while the industrial segment accounts for the remaining Rs. 8,500 crores.
Decorative Paints- Even the decorative paints segment can be further segmented in the form
of enamel, interior emulsion, exterior emulsion, distemper and wood finishes. Distempers are
generally low cost products. Enamels form the largest portion of the total sales from
decorative paints, which can be highlighted in the figure below. Asian Paints is the market
leader in this segment with a market share of around 53% while Berger Paints is second with
a market share of around 18%.
FIGURE 1.5-DECORATIVE PAINTS SEGMENTATION ACCORDING TO
REVENUE (FY2012)
Industrial Paints- This is one segment of the paint industry that is more technologically
driven than the others as it deals with industries. The industries that form the major end-users
of this segment are automobiles, consumer durables, and construction. Kansai Nerolac is the
market leader in this segment.
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PORTER’S FIVE FORCES ANALYSIS
ENTRY BARRIERSMedium
BARGAINING
POWER OF
SUPPLIERSMedium
BARGAINING
POWER OF
BUYERS- Medium
PORTER'S
FIVE FORCES
AVAILABILITY OF
SUBSTITUTESLow to Medium
COMPETITIONLow to Medium
GROWTH DRIVERS OF THE INDUSTRY

Rise in the level of income and education- India is a country which has a large
chunk of youth in its population. Along with the increase in the young population,
there is also an increase in the disposable income which in turn is leading to a change
in consumer habits. India has now quickly turned from a saving economy to a
spending economy. Thus, more money at the hands of people are enabling them to
buy quality products.
Education is also influencing consumer choices as educated consumers are becoming
more brand conscious and thus prefer companies that offer value-added services like
non-toxicity, weather protection, eco-friendly, etc.
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
Increasing Urbanization- Urbanization is leading to a shift from temporary to
permanent houses. Urban houses are well designed both in the interior as well as
exterior aspect. Interior decoration has become a fashion statement nowadays and
more and more premium and medium paint is used for this decoration. Thus, it
increases the per-capita consumption of paints, thereby increasing the overall demand
of paints. Urbanization is also leading to more nuclear families. Thus, more nuclear
families mean more houses are built and more paints required.

Increasing share of the organized sector- As mentioned earlier, the organized sector
comprises of 70% of the total paints market and decrease in taxes for key raw
materials will further improve their market position. The organized sector is also
constantly expanding its distribution network and is using tinting machines at retail
outlets. These tinting machines offer a wide variety of colour shade options to choose
from. Thus, the organized sector is offering more value-added services than the
unorganized sector as the latter is more capital intensive.

Growth of the Realty, Infrastructure and Automobile sector- The demand for
paints is highly depended on the growth of the realty, infrastructure and automobile
sector as these sectors form 70% of the entire demand for the paints sector.
Development of the realty and infrastructure sector would lead to an increase in the
demand for decorative paints. On the other hand, automobile sector forms two-third of
the entire revenue of the industrial paint. The infrastructure segment creates direct
demand as well indirect demand. The growth of these three sectors is immense, thus it
also proves to be a major growth driver for paints industry.

Increasing penetration in the rural market- Rural market is a relatively untapped
market for the organized players. The usage of paint in those parts is mainly in the
distemper segment which is dominated by the unorganized sector. And also the
demand for paints in that area depends on agriculture, which in turn depends on
monsoon. With the advancement in irrigation facilities, dependence of agricultural
output on monsoons is expected to decrease and also modernization of agriculture and
overall development of rural India, the consumer preference is likely to improve, thus
providing the organized sector a good opportunity to tap that market.
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MAJOR CONCERNS

Cost of Raw Materials- The cost of raw materials is the major cause of concern
for the paints industry as it is a raw material intensive industry. Fluctuation in the
prices of titanium dioxide and petroleum will directly impact the pricing of the
paints industry. The industrial sector is more vulnerable to these fluctuations than
the decorative sector. Also, a larger portion of raw materials is imported, thereby
leaving the cost factor vulnerable to exchange rates.

Entry of MNCs in the market- Many foreign companies are entering into this
market seeing the growth opportunity in this sector. Entry of these foreign companies
will increase the competition and also decrease the profit margin of the existing
companies.
FUTURE OUTLOOK OF THE INDUSTRY
Indian Paints industry has witnessed remarkable growth over the years. With all the major
players in this segment coming up with innovative marketing and promoting strategies and
also by widening their distribution networks, it can be said that the paint industry is set to
grow in the future. In the FY2012, the paint industry grew at 12% and earning a revenue of
Rs. 26000 crores. According to many exports, the market enjoys one of the highest growth
rates. The industry is expected to grow at a CAGR of 14% in the next five years and is also
expected to touch Rs. 50,000 crores by the year 2017. One of the major issue of the industry
is the low per-capita consumption of paints which is very low at 1.25 kg as compared to 38kg
in Singapore or 25kg in U.S or 2.5kg in China. Thus, the rise in the per-capita income of the
Indian consumers will in turn help in increasing the per-capita consumption of paints. The
growing middle class with higher disposable incomes are also now shifting to branded paints,
thereby opening a big scope to the organized players. Also the automotive sector, which
forms the largest part of industrial paints is expected to grow at a CAGR of 15%, thereby
enhancing the opportunities of the industrial segment. The expected projections of the paint
industry can be highlighted in the figure below.
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FIGURE 1.7- INDIAN PAINTS INDUSTRY PROJECTIONS FOR THE NEXT FEW
YEARS
FIGURE 1.8- KEY OBSERVATIONS OF THE INDUSTRY
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ABOUT THE COMPANY- BERGER PAINTS INDIA LTD.
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COMPANY OVERVIEW
Company
Berger Paints India Ltd. is an Indian paint company that is headquartered in Kolkata, the
capital city of West Bengal. Since its inception in the year 1923, it has come a long way to
become the second largest decorative paint company in India after Asian Paints. The
company has the second largest distribution network among all the paint companies in India
with around 82 stock points, 15000 dealers and 12,00 tinting machines. Berger Paints has a
strong presence in East and North India, which accounts for 60% of their distribution
network. The Western and Southern part of India accounts for 40% of their distribution
network.
The Company derives almost 80% of revenue from decorative paints and the rest from
industrial paints of which automotive accounts for 8%, powder coating accounts for 2% and
other industries accounts for 10%. Berger Paints product portfolio includes interior and
exterior wall coatings as well as metal and wood paints. They have strong brands like Berger
Silk, Berger Rangoli, Berger Illusions, Berger Weather Coat, Jadoo Enamel, etc. Berger
Paints has four direct subsidiaries, four step-down subsidiaries and two JVs located across
geographies including Cyprus, Russia, Poland and Nepal.
FIGURE 2.1- BERGER PAINTS- OVER THE YEARS
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Company Philosophy

Continuous Innovation and Change

Achievement of goals are perform at high levels

Performance, Customer first, Ethical Practices and Valuing People

Managing and meshing stakeholders’ expectations and providing integration of
efforts.
GREEN HORIZON- An eco-friendly initiative by Berger Paints
Vision- “To endure an environmentally safe and secure future with a commitment from the
company and its employee to practice and implement methods that help reduce the harmful
effects on our environment.”
Mission

To conserve natural resources and ensure that protection of the environment remains
the top priority.

To take up the challenge and develop more advanced products which consistently
help to reduce the harmful effects on our environment and conserve natural resources.

We not only take the responsibility of environment protection but also make our
employees aware and committed to the cause.

We respect the needs and social implications of all communities and cultures where
our business operates.
Customers
As Berger Paints is a company that operates in both decorative and industrial paints
segments, its customer base can be divided into three main categories- Home Users,
Professional Users and Industrial Users. The detailed description of the three is given
below:

Home Users- This segment of customer base includes the normal households. As
it has been mentioned earlier in the report that people are becoming more brand
conscious and shifting from distempers to interior decoration, this user segment
forms a large of Berger’s customer base. This segment is spread over the entire
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country. Berger provides value added services to satisfy this segment, some of
which are highlighted in the figures below:
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
Professional Users- This segment is also a major customer base in the decorative
paints sector. These types of users generally are involved in bulk purchasing.
Berger Paints has been involved in various landmark projects involving the
professional users, such as:
o The Bandra Skywalk Project
o Hotel Le Meridian Delhi
o TAPMI, Manipal
o Hotel Shangri La, Delhi
o Mantri Greens, Bangalore
o Akshardham Temple, Delhi
o Calcutta Club, Kolkata
o Bengaluru International Airport
o Cognizant, Chennai
o Eden Gardens, Kolkata
o CSI Airport, Mumbai
o AIIMS, Delhi
o Commonwealth Games Village
o National Library, Kolkata

Industrial Users- Berger Paints, being a major player in the industrial paints
sector, also has a large industrial user base. Berger Paints has a tie-up with major
companies like Mercedes India, which is one of the top automobile companies in
India. Its industrial user base can be categorized into following:
o GI & Automotive Coatings- Berger has established its presence in regards
to GI & Automotive Coatings. With sound knowledge of technology and
experience of catering to renowned brands, Berger has proven its expertise
in this segment.
o Powder Coatings- Berger Powder Coatings are used for goods ranging
from furniture to hospital items, power generators to garden tools and
much more. Leading brands have availed services from Berger, because of
the dependable quality of its products.
o Protective Coatings- Protective Coatings are meant to act as a protective
measure against emission of volatile organic compounds. This kind of
coating works as a protection against corrosion for a long duration.
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Competition
The competition in the paint industry can be divided into two parts- Organized &
Unorganized. As mentioned earlier, there are around 12 major paint companies in India that
form 65% of the total revenue. On the other hand, there are over 2,000 in the unorganized
sector that constitutes the remaining 35% of the market share. It is often observed that the top
5 companies contribute to 80% of the organized market. As the paints sector is more
technologically oriented, the power of differentiation in terms of quality lies on the major
players’ technological expertise. Thus, the existing companies are fighting it hard to capture
the maximum share in the market through collaborations with foreign companies.
Over the last 5 years (FY 07-08 to 11-12), the Company’s revenues, net of excise duty, have
grown at CAGR of 17.5%. Berger Paints stands second in the decorative sector following
Asian Paints as the market leader in this sector. It also stands second in the industrial sector
trailing behind Kansai Nerolac as the market leader in this sector. Overall, Berger Paints is
the second largest paint company in the country following Asian Paints and Kansai Nerolac,
details of which is given in the “Competition” section of “Indian Paints Industry” in this
report.
The detailed comparison of Berger Paints with its peers can be described in the table below.
TABLE 1- BERGER PAINTS COMPETITOR ANALYSIS
[Source- www.moneycontrol.com]
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Environment
Quality Policy
Berger Paints is committed to provide full satisfaction to our customers with respect to
Quality, Reliability and Delivery and attain Quality Leadership for all products that are
offered by us. We shall achieve this goal by:

Establishing a Quality Management System conforming to International
Standards.

Institutionalizing a culture of "Getting it Right, First Time."

Upgrading our Technology continuously to meet expectations of customers.

Planned and structured Training and Development Programmes for all employees.

Creating an environment which encourages team effort and where each
individual's contribution is recognised and valued.
[Source- www.bergerpaints.com]
Green Horizon
Green Horizon is Berger Paints’ endeavour to create a greener future and to make sure that
they remain true to their commitment towards their responsibility and accountability towards
the environment. This project aims at the following:

Shades of green in all colours.

Reducing waste and conserving natural resources

Installing energy efficient systems in all its manufacturing facilities

Eco safe products

Exterior Insulation & Finishing Systems

Aqua green Coatings
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Technology
Technology has become an integral part of any organization in today’s world. Organizations
tend to maintain the perfect balance between manual work and technology. As this era is
credited to be an era of technological advancement, companies are implementing various
software and hardware to maintain an effective relationship with its suppliers, customers and
shareholders.
Berger Paints, being one of India’s foremost paint companies, also realizes the importance of
deploying an effective ERP system. It uses Oracle’s effective ERP software in its day-to-day
operations. Apart from the regular ERP system, Berger Paints has also identified the need to
use an effective Customer Relationship Management (CRM) system to enhance
communication, feedback and service levels to the company’s customers and also to bring
down lead time, inventory and the overall working capital. Berger Paints has deployed
Microsoft Dynamics CRM Solution to boost business productivity. The company claims that
the implementation will lead to enhanced customer satisfaction, improved dealer engagement
and higher return on investment.[Source: www.informationweek.in] The company believes
that using this CRM software will bring down the time spent by the sales team on
administration activities and will enable them to focus more on business development. This
further helps to improve dealer service levels, process efficiency, integration and information
traceability and transparency in various business operations. Ease-of-use, low-cost
maintenance and functional excellence are some of the other key advantages offered by this
solution.
In keeping with the Company’s customer orientation, Berger Paints also provides a Preview
facility, available both online and offline, bringing value and convenience to today’s busy but
quality conscious consumers. Using the latest simulation software, consumers can check out
different colour schemes on photographs of their homes to help them choose just the right
combination prior to actual painting.
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SWOT ANALYSIS
Strengths

With almost Rs. 3500 crores as its revenue, it is the second largest paint company in
India.

Decorative segment, the biggest sector of the industry, is the major contributor of its
revenue.

Produces and markets a wide range of products under various brands names for both
decorative as well as industrial paints.

Well established distribution network all over the country with 7 manufacturing
plants, 15,000 dealers and 85 depots.

Excellent brand perception and brand awareness among its potential customers, with
Katrina Kaif as its brand ambassador.

Has high market space, both in terms of visibility and sales.

Has presence internationally. For example, Russia, Poland, Bangladesh and Nepal.

Has a strong presence in automobile coatings, which is used by top brands like
Mercedes.

Lone supplier of protective coatings to nuclear power plants.
Weakness

Over dependence on decorative sector where competition is intense

High level of lead found in products lead to negative publicity

Pricing power limited only to industrial sector

Trailing to the market leader by a big margin
Opportunities

Changing consumer trends leading to new product launches and innovation.

Increasing level of disposable income among the consumers.

Rising urbanization

Low per-capita consumption for paints

Revival in Infrastructure and Automobile Sectors.

Modernization of Tier II and Tier III cities and also Rural India
30 | P a g e
Threats

Large presence of unorganized players

Stiff competition

Fluctuation in the prices of raw materials

Forex risk due to the import of certain raw materials
PESTEL ANALYSIS
Political Factors

Export-oriented economy

Political situation more or less stable

Reduction in excise duty and taxes on raw materials

Largest democracy in the world
Economic Factors

Market based economy

Introduction of FDI

More or less stable GDP growth

Inflation rate – 8.10 per cent

Increasing disposable income of middle class Indians

Increasing urbanization and rural development
Social Factors

Second largest populated country in the world

Different segments of people- upper, middle, etc.

Interior decoration becoming a fashion statement

Consumers becoming more brand conscious in regard to paints
Technological Factors

Modernization of paints

Implementation of CRM by major players to enhance customer service
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
Emergence of lead free paints

Use of tinting machines

Emergence of IT sector
Environmental Factors

Impact of Volatile Organic Compounds (VOC)

Less usage of lead in products

Dependence on seasons and climate

Inclination towards eco-friendly products
Legal Factors

Pollution Control Law

Consumer Law

Health and Safety Law

Environment Law
CORPORATE SOCIAL RESPONSIBILITY
[Source- Berger Paints Annual Report 2012-13]
The Company is a multi-locational and multi-cultural company having plants and branches
all over India. The Company is committed to discharging its obligations to its stakeholders.
The Company believes that operating with accountability and transparency all over India and
elsewhere in the globe, respecting the customs, practices and laws, providing honest means of
livelihood to people and adding to wealth of nations, are by themselves self-fulfilling.
As part of the Company’s social responsibilities, following are few of the activities carried
out during the year:
•
Child sponsorship programmes
•
Education materials for schools
•
Renovation and painting of schools in the vicinity of our presence
•
Supporting children with special needs
•
Organizing Health Camps
•
Assistance to the aged
•
Developing areas around the manufacturing sites/offices in the form of upkeep
of roads, parks, water pumps, tube wells, etc.
32 | P a g e
•
Celebration of Environment Day
•
Plantation of saplings and gifting plants to local communities
•
Spreading awareness of a greener environment through schools and
educational institutions
•
Organization and participation of awareness programmes at the adjacent
areas/vicinity of the manufacturing locations
•
Supporting seminars, research work in regard to environment.
PRODUCT PORTFOLIO
Berger Paints is one of the major players in the paint industry, both in decorative and
industrial sector. It is currently the second largest paint company in India. Thus, it offers a
wide range of products under various brand names. The product categories of Berger Paints
can be classified as follows:
INTERIOR WALL
COATINGS
EXTERIOR WALL
COATINGS
BERGER PAINTS
BERGER METAL &
WOOD PAINTS
PROTECTIVE
COATING
UNDERCOATS
CONSTRUCTION
CHEMICALS
FIGURE 2.2- BERGER PAINTS PRODUCT PORTFOLIO
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Interior Wall Coatings
INTERIOR
EMULSIONS
DESIGNER FINISHES
• Silk Illusions Non
Metallic
• Silk Illusions
Metallica
• Lewis Berger Design
Stories
• Silk Illusions Marble
•
•
•
•
•
INTERIOR WALL
DISTEMPERS
Breathe Easy
Silk Luxury Emulsion
Easy Clean
Rangoli Total Care
Bison Acrylic
Emulsion
• Jadoo Acrylic
Distemper
• Bison Distemper
Exterior Wall Coatings
EXTERIOR EMULSIONS
•
•
•
•
•
•
WeatherCoat Tile Protektor
WeatherCoat All Guard
WeatherCoat Smooth
WeatherCoat Kool & Seal
WeatherCoat Longlife
Walmasta
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TEXTURE FINISHES
• WeatherCoat Texture
• Tartaruga Hi – Build
• Tartaruga
Berger Wood & Metal Paints
ENAMELS
•
•
•
•
•
•
CLEAR WOOD
Breathe Easy Enamel
Luxol Lustre
Luxol Satin Enamel
Luxol High Gloss Enamel
Jadoo Enamel
Berger Butterfly GP Enamel
• Woodkeeper
• Melamine Finish
Protective Coatings
EPILUX
LUMEROS
ZINC ANODE
BERGERTHANE
AQUAGREEN COATINGS
ANTICARB RANGE
REBAR COATINGS
SIGMARK
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Undercoats
Construction Chemicals
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PICTORIAL REPRESENTATION OF BERGER PAINTS’ PRODUCTS
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ACQUISITIONS & MERGERS
Acquisition of Sherwin Williams Paints India Pvt. Ltd
Berger Paints India Ltd. Acquired the architectural operations of Sherwin Williams Paints
India Pvt. Ltd. with effect from 31st March, 2013. The acquisition was carried out by Berger’s
wholly-owned subsidiary Brushworks India Ltd. and was funded through internal accruals.
The acquisition is said to further strengthen the position of Berger Paints in the decorative
business. The main aim behind the acquisition of Sherwin is to gain prominence in the
Southern India market as Sherwin was a major player in that part of the country. This
transaction significantly increases the Company’s presence in key markets and builds on the
Company’s strategy to grow its architectural paint business throughout India. It brings a high
quality, committed team of employees to the Berger Paints family, a 24,000 MTPA paints
plant at Taloja in Maharashtra and relevant brands. The integration process with the erstwhile
architectural paints business of Sherwin Williams Paints India Private Limited was carried
out at a fast pace and Mr. Jairaj Hegde, who was in charge of that company earlier, continues
to be the CEO of Brushworks Paints Limited.
Subsidiary and Joint Ventures
Berger Paints has four wholly-owned subsidiaries- Beepee Coating Private Ltd. in Gujarat,
Berger Jenson & Nicholson (Nepal) Private Ltd. in Nepal, Berger Paints (Cyprus) Ltd. in
Cyprus and Lusako Trading Ltd. in Cyprus.
The above mentioned companies also have their respective wholly-owned subsidiaries,
details of which are given below:
•
Brushworks India Ltd. - Wholly-owned subsidiary of Beepee Coatings
•
Bolix S.A., Poland- Wholly-owned subsidiary of Lusako
•
Berger Paints Overseas Ltd., Russia- Wholly-owned subsidiary of Berger Cyprus
•
Bolix Ukraine Limited Liability, Ukraine- Subsidiary of Bolix S.A.
38 | P a g e
FINANCIALS
For the Financial Year 2012-13
For the financial year 2012-13, Berger Paints India Ltd. achieved net consolidated revenue of
Rs. 3,346 crores as against Rs. 2,948 crores in the previous financial year of 2011-12. The
profit before depreciation, interest and taxes amounted to Rs. 403 crores as compared to Rs.
334 crores in the previous financial year. The profit before tax has also seen a significant
growth from Rs. 254 crores in 2011-12 to Rs. 308 crores in 2012-13. There has also been a
21% increase in profit after tax, from Rs. 180 crores to Rs. 218 crores. Over the past few
years, the company’s revenue has grown at a CAGR of 17%. The above mentioned points are
highlighted in the figures below:
TABLE 2- FINANCIAL RESULTS & APPROPRIATIONS
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TABLE 3- BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH, 2013
40 | P a g e
FIGURE 2.3- Some Important Charts and Figures
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FIGURE 2.4- MARKET CAPITALISATION
FIGURE 2.5- DISTRIBUTION OF INCOME
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Quarterly Reports
QUARTERLY REPORT (FY 2013-14)
1000
900
AMOUNT IN CRORES (Rs.)
800
700
600
500
400
300
200
100
0
NET SALES
EXPENSES
NET PROFIT
Q1 2013-14
816.16
740.71
55.16
Q2 2013-14
827.29
753.28
55.53
Q3 2013-14
879.24
791.34
65.65
FIGURE 2.6- QUARTERLY ANALYSIS
AWARDS & CERTIFICATIONS
Awards

10th Annual Construction Global Awards 2012

Builder Information Bureau (BIB) 2012 Leadership in the paint category

Reader's Digest Gold Award - 2008 Most Trusted Brand

Best Supplier Award Outstanding contribution in Product Development OEM
customer M/S Whirlpool - 2005, Faridabad

Fastest Growing Paint Company Construction World NICMAR Award
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Certifications
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INTRODUCTION OF THE TOPIC- ADVERTISING IN INDIA AND THE
RECENT TRENDS
45 | P a g e
INTRODUCTION TO THE TOPIC
Advertising- an effective way of communication
Nearly everyone in today’s world of modernization is impacted strongly with advertising and
promotion. This can be seen in the huge costs incurred in the marketing purposes of
organizations both in the private as well as private sectors. Companies are fighting it hard to
achieve competitive advantage with the efficient and effective use of their advertisement
campaigns and promotional strategies. The concept of marketing has also evolved from the
Production Concept to Product Concept to Selling Concept to Holistic Marketing Concept.
The marketing strategies of all organizations around the globe are more customer-oriented
and this is also enabling some organizations to adapt to customization. Thus, as the business
scenario is more inclined towards the customer satisfaction, companies have identified the
need to effectively communicate their offerings to their target customers. It has been found
out that the companies that effectively communicate their products and services and position
themselves in front of the consumers are the ones that are the market leaders and achievers.
The impact of advertising has expanded to such an extent that it is used not only to sell
products and services, but also to promote causes, market political parties and candidates, and
deal with social issues like addiction to drugs and alcohol. Marketers are constantly
innovating in their advertising strategies by constantly finding new ways to communicate
with its customers. Thus, consumers are finding it difficult to avoid the marketing campaigns
of such companies.
Marketers often feel that there is no other field to study that is more dynamic and fascinating
that advertising and promotion. However, they also acknowledge the fact that the field of
advertising is constantly changing due to the following reasons:

Changing consumer needs and preferences

Clients wanting better results

Creativity becoming an integral part in advertisement campaigns

Emergence of rural segment as an important customer base

Economic growth

Increasing expenditure on advertising and sales promotion
46 | P a g e
Not only advertising as a concept has evolved over these years, but the modes of advertising
have also seen dramatic changes in these past few years. For decades, advertising for a
national brand involved one or two commercials for television, few print ads for national
magazines, and sales promotion techniques like coupons and offers. But in the present world,
there are various fields where an advertising campaign can be put into effect, such as:

Print

Radio

Cable and Satellite TV

Internet

Tie-ups and Associations

Events
Thus, it can be seen that advertisers are using the above mentioned outlets to capture the
attention of its consumers. In addition to redefining the role and nature of their advertising
agencies, marketers are changing the way they communicate with consumers. They know
they are operating in an environment where advertising messages are everywhere, consumer
channel-surf past most commercials, and brands promoted in traditional ways often fail.
New-age advertisers are redefining the notion of what an ad is and where it runs. Stealth
messages are being woven into the culture and embedded into movies and TV shows or made
into their own form of entertainment. Many experts argue that “branded content” is the wave
of the future, and there is a growing movement to reinvent advertising and other forms of
marketing communication to be more akin to entertainment. Companies such as BMW, Levi
Straus & Co., Nike, and Skyy Spirits are among the marketers using “advertainment” as a
way of reaching consumers: They create short films or commercials that are shown on their
websites.
Therefore, companies are focusing more on advertisement as an effective mode of
communication as it can reach its geographically-diverse customers. The increasing use of
TV and Internet has further enlightened the effective use of advertising. The rivalry amongst
companies can also be seen in their advertisements where they directly or indirectly target
their competitors. Thus, it can be said that advertisement is one field that is set to grow and
will see many more dramatic changes in the coming future with the advancement of
technology.
47 | P a g e
Advertising- Promotional Mix Tool of IMC
For many years, the promotional functions in many companies were dominated by massmedia advertising. Companies normally took guidance from their advertising agencies in all
areas of marketing communication. Some marketers often used additional marketing
channels, but these were termed as auxiliary services and were not properly looked upon.
Public Relations agencies were used to maintain the organization’s image and brand building.
Many marketers built strong barriers around the various marketing and promotional functions
and planned and managed them as separate practices, with different budgets, different views
of the market, and different goals and objectives. These companies failed to recognize that
the wide range of marketing and promotional tools must be coordinated to communicate
effectively and present a consistent image to target markets.
It was in the 1980s that the companies identified the need to develop a strategic integration of
their promotional tools. Thus, the concept of Integrated Marketing Communications came
into the picture, that co-ordinated all the promotional tools and marketing activities of a
company. The basic tools used by an organization to accomplish its marketing
communication objectives are known as Promotional Mix. There were four basic elements in
the traditional promotional mix- Advertising, Sales Promotion, Publicity/Public Relations
and Personal Selling. However, with the dramatic change in the communication process,
internet as well as direct marketing were also identified as an important promotional for
modern day marketers.
ADVERTISING
DIRECT
MARKETING
THE PROMOTIONAL MIX
INTERNET
MARKETING
SALES
PROMOTION
PUBLICITY/PUBL
IC RELATIONS
PERSONAL
SELLING
48 | P a g e
Advertising is generally defined as the paid form of non-personal communication about an
organization, product or service, or idea by an identified sponsor. There are two important
aspects of this definition- paid and non-personal. The paid aspect of this definition reflects
the fact that the space or time for an advertising message is bought, except for a public
service announcement. The non-personal aspect of this definition indicates the involvement
of mass media (T.V., radio, magazines, newspapers, etc.) in transmitting a common message
to a large number of people at the same time. The nonpersonal nature of advertising means
that there is generally no opportunity for immediate feedback from the message recipient
(except in direct-response advertising). Therefore, before the message is sent, the advertiser
must consider how the audience will interpret and respond to it. [ Source- “Advertising &
Promotion- An Integrated Marketing Communications Perspective”, George E. Belch &
Michael E. Belch]
Advertising is the best-known and widely-used tool of promotion due to its pervasiveness. It
is a very essential tool especially for those companies whose products and services are
targeted at mass consumer levels. Advertising is important for various reasons, some of
which are as follows:

Cost-effective method for communicating with large audiences

Creates brand images and symbolic appeals for a company or a brand

Specifically tailored for different channels

Creativity at its best

Ability to strike an instant chord among the target customers

Acts as a differentiator from the competitors
There are various forms of advertisements, which are classified in the figure below:
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FIGURE 3.1- CLASSIFICATION OF ADVERTISING
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The Marketing Communications Planning Process
The Marketing Communication program of an organization is developed with a specific
purpose in mind and is generally the end product of a detailed marketing and promotional
planning process. Planning plays an integral part in every business function. Without proper
planning one cannot reap the benefits of a marketing campaign. Thus, an effective marketing
communications program also has a detailed process, which is described in the figure below:
FIGURE 3.2- IMC Planning Process
Review of Marketing Plan
Analysis of Promotional Program Situation
Analysis of Communications Process
Budget Determination
Develop Integrated Marketing Communication Program
Integrate and implement marketing communications strategies
Monitor, evaluate, and control integrated marketing communications program
The detailed descriptions of the above steps are as follows:
Review of Marketing Plan
•
Examine overall marketing plan and objectives
•
Role of advertising and promotion
•
Competitive analysis
•
Assess environmental influences
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Analysis of Promotional Program Situation
•
Internal Analysis- Review of previous program, ability to implement, agency
evaluation
•
External Analysis- Consumer Behavior Analysis, Market Segmentation and Target
Marketing, Market Positioning
Analysis of Communications Process

Analyze receiver’s response processes

Analyze source, message, channel factors

Establish communications goals and objectives
Budget Determination

Set tentative marketing communications budget

Allocate tentative budget
Develop Integrated Marketing Communications Program

Advertising

Direct Marketing

Internet Marketing

Publicity/ Public Relations

Sales Promotion

Personal Selling
Integrate and Implement Marketing Communications Strategies

Integrate promotional-mix strategies

Create and produce ads

Purchase media time, space, etc.

Design and implement direct-marketing programs

Design and distribute sales promotion materials

Design and implement public relations/publicity programs

Design and implement interactive/Internet marketing programs
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Monitor, Evaluate, and Control Integrated Marketing Communications Program

Evaluate promotional program results/effectiveness

Take measures to control and adjust promotional strategies
Marketing and Promotions Process Model
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ADVERTISING MODELS
AIDA Model
ATTENTION
INTEREST
DESIRE
ACTION
Attention- This stage of the AIDA Model occurs at the beginning and is designed to give the
prospective customers a reason to take notice of the offerings of the organization. The
purpose of this stage is to give them a reason to know more about the product.
Interest- After the interest of the prospects is garnered, the next level is to maintain the
interest of the prospects towards the products and services to keep them engaged. This can be
done by explaining the prospects how the problem identified in the earlier stage can affect
their lives.
Desire- After explaining the problem to the prospects, the next stage is to show them how the
products and services offered by the company can solve the problem mentioned earlier. This
can be done by highlighting the features and attributes of the offerings.
Action- After creating a desire to purchase, the final step of this model is to persuade the
prospects to take action in terms of purchase. This can be done by offering limited discounts
for a limited period of time, which will induce them to take immediate action.
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DAGMAR Approach
DAGMAR Approach is a famous marketing approach to measure the results of an advertising
campaign. DAGMAR stands for- Defining Advertising Goals for Measured Advertising
Results. The approach involves setting specific, measurable objectives for a campaign to
determine if specific objectives were met. Specifically, DAGMAR seeks to communicate a
specific message through four steps:

Awareness - making the consumer aware that the product or company exists

Comprehension - letting the consumer know what the product is used for

Conviction - convincing the consumer to purchase the product

Action - getting the consumer to actually make the purchase
DRIP Model
DIFFERENTIATE
REINFORCE
INFORM
PERSUADE
Differentiate- This process deals with differentiating the products or services of a particular
company from others in the same company.
Reinforce- Here the aim can be as a reminder to consumers of the benefits of a product, or
persuading them to start a new transaction.
Inform - Inform about your offering or make the target group aware about it.
Communicate and educate about our offering to your prospects. This can include new
55 | P a g e
features, benefits, availability, offers, value etc. This will educate the consumer about our
product.
Persuade- It means induce your prospect to behave in a certain way. Persuade your audience
to behave in a particular way, evoke certain attitude within customers. Here we’re building a
relationship with our customers, getting into emotional connect with them.
VIPS Model
The VIPS Model is an advertising model designed by David Bernstein which implies that for
an advertisement to be effective, the message should be checked to have the following
qualities:

Visibility

Identity

Promise

Single-mindedness
Decision Making Process Model
The Decision Making Process is one of the most widely used tools for analysing consumer
behaviour. As advertising campaigns are designed keeping in mind the consumers, it can be
quite effective in formulating a proper advertising strategy.
The key components of the DMP Model are:
PROBLEM
RECOGNITION
INFORMATION
SEARCH
EVALUATION OF
ALTERNATIVES
PURCHASE
POST-PURCHASE
EVALUATION
56 | P a g e
The marketers can use this model in their advertisement campaign in the following ways:

Problem Recognition- Remind or create perception for need

Search for Information – Find out what we have to offer

Evaluation of Alternatives- Inducing customers that the products or services are
better than that of the competitors.

Purchase- Easy to buy

Post-Purchase Evaluation- Reminding customers that they made the right choice

Repurchase- Making the customers feel that they are the valued customers.
Product Life Cycle Model
The PLC Model is an effective marketing tool that analyses at which stage a particular
product is in the market. It attempts to identify a set of common stages in the life of
commercial products.
It normally comprises of four stages:
FIGURE 3.3- PRODUCT LIFE CYCLE
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The PLC Model can be used by the advertisers in the following way:

Pre-Launch- Teaser Campaign

Introduction- Launch Campaign

Growth- Maximise sales

Maturity- Tactical Campaigns
COMMONLY USED ADVERTISING METHODS
Television Advertising
A commercial advertisement on television is a span of television programming produced and
paid for by an organization, which conveys a message, typically to market a product or
service. Advertising revenue provides a significant portion of the funding for most privately
owned television networks. The vast majority of television advertisements today consist of
brief advertising spots, ranging in length from a few seconds to several minutes (as well as
program-length infomercials). Advertisements of this sort have been used to promote a wide
variety of goods, services and ideas since the dawn of television.
It can be done on cable TV, national TV or the local stations. The concept behind it is to
bring advertising commercials, production and campaigns to TV viewers in between their
favourite programs as this is set to get their attention. Successful TV advertising is witty,
thoughtful short and straight to the point.
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Infomercials
[Source: Investopedia]
Infomercials are a form of television advertisement that acts as a stand-alone program, and
typically lasts longer than five minutes. Because an infomercial lasts longer than a regular
commercial, it is able to present more details about a product or service and gives a company
more time to present a persuasive call to action. Most infomercials will prompt the viewer to
call a toll free number or visit a website to make a purchase several times during its run.
Radio Advertising
Radio Advertising is one of the oldest forms of advertising which is done through the
medium of radio. Radio advertisements are broadcast as radio waves to the air from a
transmitter to an antenna and a thus to a receiving device. Airtime is purchased from a station
or network in exchange for airing the commercials. While radio has the limitation of being
restricted to sound, proponents of radio advertising often cite this as an advantage. Radio is
an expanding medium that can be found not only on air, but also online.
Online Advertising
Online Advertising is the most popular form of advertising nowadays that uses the internet
and the World Wide Web to communicate marketing messages to its target customers to
attract them. This form of advertising is seeing dramatic changes every day and is expected to
create more opportunities for every organization irrespective of the industry it operates. The
increasing presence of people in the Internet all over the world is inducing companies to
formulate effective online advertising strategies. Examples of online advertising can besocial networking, e-mail marketing, banner ads, contextual ads in search engine pages, etc.
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Covert Advertising
Covert Advertising or Guerrilla Advertising is a form of advertising where the product or
service of an organization is embedded in entertainment and media. This type of advertising
is done by the manufacturing companies partnering with film producers in order to show their
product on screen and also highlight their brand name, as part of the flick. This is a very new
concept of advertising that is emerging very fast and which can be seen in major films all
over the world.
Press Advertising
Press advertising describes advertising in a printed medium such as a newspaper, magazine,
or trade journal. This encompasses everything from media with a very broad readership base,
such as a major national newspaper or magazine, to more narrowly targeted media such as
local newspapers and trade journals on very specialized topics. A form of press advertising
is classified advertising, which allows private individuals or companies to purchase a small,
60 | P a g e
narrowly targeted ad for a low fee advertising a product or service. Another form of press
advertising is the Display Ad, which is a larger ad (can include art) that typically run in an
article section of a newspaper.
Billboard Advertising
Billboards are large structures located in public places which display advertisements to
passing pedestrians and motorists. Most often, they are located on main roads with a large
amount of passing motor and pedestrian traffic; however, they can be placed in any location
with large amounts of viewers, such as on mass transit vehicles and in stations, in shopping
malls or office buildings, and in stadiums.
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In-Store Advertising
In-Store Advertising is advertising at a retail store. It involves placing of products in visible
locations in a store, such as at eye level, at the end of aisles and near checkout counters. This
type of display is commonly known as POP- Point of Purchase display.
Celebrity Endorsement
This type of advertising is the most cost bearing one for an organization as it involves a wellknown celebrity to endorse the product or service of the organization. Advertisers often
advertise their products, for example, when celebrities share their favourite products or wear
clothes by specific brands or designers. Celebrities are often involved in advertising
campaigns such as television or print adverts to advertise specific or general products. The
use of celebrities to endorse a brand can have its downsides, however. One mistake by a
celebrity can be detrimental to the public relations of a brand.
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GROWTH OF ADVERTISING IN INDIA
Advertising is one field in India which has seen dramatic changes in the past few years. The
emergence of various new modes of advertising has really opened up the doors for many
organizations to capture the attention of a large chunk of people at different places. The
Indian context also offers unique opportunities to the marketers. Even big multi-national
brands are finding it tough to implement an effective advertising plan that can cater to the
diverse culture of India.
Cultural and economic diversity, a blend of Western lifestyle, strong cultural anchoring, and
the rural/urban divide are some of the critical factors that marketers take into consideration
while formulating their advertisement campaigns. In India, the advertising industry is
growing at 30% to 35% annually. Currently, the Indian advertising industry is worth more
than Rs. 36,000 crores and it is expected to double in the next five years according to the
Federation of Indian Chamber of Commerce and Industry.
In the year 2005, advertising industry in the U.S.A was merely a $300 billion industry that
was mainly focused on the traditional methods of advertising- radio stations; TV broadcast
stations, media and print and new websites that were just gaining prominence. It also
included direct mail, which had a share of about $21 billion in the total advertising industry,
and also outdoor advertising, which had a mere $6 billion share. In addition, there was also a
significant increase in specialty and alternate advertising, from ball point pens printed with a
message to T-shirts to small planes towering advertising banners.
Advertisers are constantly faced with daunting realities regarding the various media they can
use to implement their advertising campaigns to reach a wider audience. It has come to their
notice that traditional advertising is not connecting with the consumers the way it did few
years back. In other words, it can be said that traditional media is losing control over its target
audience. The advertisers no longer feel that their ads in TV, radio and print media can gain
mindshare and really induce the consumers to make the ultimate decision to buy. Consumers,
especially in the younger demographics, now demand more and more control over what they
watch, read or listen to and thus more control over the advertising they are exposed to. Issues
related to control include: pricing for content (including free, illegal download versus
authorized, paid downloads or pay-per-views); portability (the ability for a consumer to
download once, and then use a file on multiple platforms and devices).
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Over the past few decades, not only advertising but also the context in which it operates has
also changed dramatically. As the communications universe expanded and society became
more fragmented, advertising lost its traditional place within the communications system. It
has been faced with lot of challenges that it is finding hard to meet. Advertising and
marketing are undergoing a seismic shift, as new technology endangers social change and
transforms the way consumers view commercial interaction. ‘Brand’ advertising is not
something which consumers find always adequate. Thus, marketers are trying to the utmost
to cope up with the challenges posed at them. Advertising and Advertising research are also
forcing marketers to focus on individual advertising rather than mass advertising.
India is becoming a market that is slowly but steadily being dominated by technology, thus
the scope of advertising is also evolving hand in hand. Due to this growing dependence on
technology, individuals are getting more interconnected and at the same time isolated with
the whole world virtually via computers. New technology offers a computer-mediated
environment for advertisers to communicate their messages.
The use of Internet and social networking sites have increased to such an extent that many
large companies have also identified that they can capture the largest attention from these
sites as people are normally found to spend most of their time on these sites. Also with the
growing popularity of e-commerce business in India, advertisers are finding it easy to educate
the consumers about online advertising.
Experts foresee an exciting future for advertising as it is adapting to multicultural strategies,
finding new uses for new media and exploring e-commerce and online information
technologies. Some of the statistics relating to the growth of advertising in India can be seen
in the figures below:
TABLE 4- AD REVENUES IN INDIA
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TABLE 5- INDIAN ADVERTISING INDUSTRY- MARKET SIZE & PROJECTIONS
TABLE 6- ADVERTISING REVENUE
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FIGURE 3.4- INDIAN ADVERTISING INDUSTRY- MARKET SHARE
TABLE 7- INDIAN PRINT INDUSTRY- OVERVIEW
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FIGURE 3.5- INDIAN PRINT INDUSTRY- SEGMENTATION
FIGURE 3.6- INDIAN DIGITAL ADVERTISEMENT MARKET
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FIGURE 3.7- ONLINE ADVERTISING REVENUE MIX
FIGURE 3.8- EXPECTED INTERNET CONNECTIONS- INDIA
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FIGURE 3.9- ONLINE ADVERTISING SECTORS
TABLE 8- TOP ADVERTISERS- INDIA
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CREATIVITY IN ADVERTISING
[Source: Online Journal of Communication and Media Technologies, Volume: 2 – Issue: 3 –
July – 2012]
In today’s world where it is very difficult to shape consumer attitudes and behaviours and
move them to the next level of buying process, advertisers find it difficult and challenging to
break through the clutters of competitive advertising. Consumers are no longer impacted with
the traditional advertising that mainly focused on the features and characteristics of the
products or services in offer. The preferences of the consumers have identified the use of
creativity in advertising as the one factor that keeps them interested. The importance of
creativity factor in advertising has got wide recognition by many researchers, practitioner, but
there is a miss of true & systematic research to define advertising creativity and how it relates
to ad effectiveness.
It is a known and accepted fact that there should be an element of creativity in advertisement
campaigns. This creativity is to create something new, unique, extremely attractive and
appealing to the consumers. In fact, advertising itself is a creative process. It is the outcome
of long term planning and hard work on the part of the copy writer & creative director who
prepares & shapes the final copy of advertisement. Advertising allows you to communicate a
salient message to a large group of consumers faster than any other form of communication.
It allows you to truly connect with your consumer; it gives you an opportunity to develop an
ongoing relationship between the consumer and a brand. At its best, advertising will create a
sense of urgency for the consumer, honest awareness and accurate that there are products,
places, styles or sensibilities that cry out for attention or action. To do that there are various
styles of advertising, a soft sell or a hard sell, a subtle approach or a blatant approach, an
informative style, humour or a modern and edgy one. Style will always change: with the
product or service you are selling; with the timing of the message and with the medium you
are using. But important aspect is how you can engage your consumers to watch that Creative
challenge you took with the blend of style.
But most challenging part of creativity in advertising is finding the right balance between
defining a good creative message and executing it. No matter how creative your message, it
will not strike a chord with customers if it is not properly executed. There are many examples
of companies spending millions on their advertisement campaign but fail to properly execute
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them. The true craft is in identifying ways to interest consumers in what is being offered at
the same time justifiable creativity. A creative strategy can put you on the right course, but in
a world filled with distractions and clutter you must develop communications that capture
consumer attention and interest. The key of delivering effecting creative message is the
selling point in an interesting, non-contrived manner. Great advertising builds the brands and
some advertising sells brands. Creativity makes advertisement popular among the consumers
and motivates them to purchase advertisement specific product. The advertising message is
received well by the target audience for follow-up action.
How Creativity Works
The field of advertising has altered in many ways. Advertising now has become more
creative and more real. Creativity increases the brand value. There is enough evidence that
value for a brand will be formed through creativity. With Pointing on India’s phenomenal
growth, it has become even more important for ad agencies and their clients to gear up
together to meet challenges that come with such expansion. Creative ideas have no
boundaries, Ideas can strike anytime. A successful & great creative idea can give brands the
required thrust to explore new heights. It is very important that with creativity involved in
advertising it should not forget its basic agenda –of informing, convincing, and selling.
Creative advertising needs to intelligent, sharp, imaginative to the point and extremely
catchy. It must motive people to purchase advertisement product. The message and appeal
made should be able to make positive impact on the consumers. The creativity develops new
useful ideas which further fulfill the desired requirement. Creativity should focus the
attention of the customer on the product and he must feel the urge to have that product for
same benefit. This suggests that creative advertising should be able to create demand for the
product when it is introduced for the first time. Some of the distinct creative ads impacted
hard. The advertising strategies are changing but should not leave question mark on the
sustainability of creativity and also not to overlook consumer’s intelligence.
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FIGURE 3.10- CREATIVE APPEALS IN ADVERTISEMENT
Requisites of a Good Ad
A good advertisement is one that captures the attention of its target customers. Success
factors of all good ads in the Indian market are considered to have the following elements:

Children

Celebrities

Humour

Music

Emotions
Creative Advertising: Is There A Strong Need In The Market?
[Source: Online Journal of Communication and Media Technologies, Volume: 2 – Issue: 3 –
July – 2012]
Most brands in the same category deliver more or less the same functional benefits and
answer the same needs of the consumers. With so many products on the market having the
same function, the only way to position a product, service, or company differently from
anything else in the same category is through creative development in advertising.
Today traditional advertising is losing its sheen. The biggest problem with traditional media
is that consumers today have lots of choice for ad avoidance. The fragmentation is very high
and there is very less scope of customized message for all. The Indian consumer has changed
if we focus on this issue there is a lot more on the menu to choose from. Now the message
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unlike the past is no longer a one way process. But public opinion is far more mobilized, they
have immediate platform for expression.
The expert believes that the creativity in advertising could never exist in isolation without a
context. The success of final product completely depends on empathy and the relevance of
message it intends to deliver. The trigger for ideas and insights must necessarily come from
the environment.
The new millennium is decade old now, advertising, which is about creating demand, has
undergone a complete transformation. Many things have changed and many things have
stayed exactly the same in this industry. The media agencies have witnessed the tremendous
growth in skills set. If one critically analyse, “advertising reflects the mood of the times. The
simplistic inform-persuade-sell mode worked beautifully for a long time but once
communication became sophisticated, technology entered, there was a paradigm shift. Multitasking became the order the day. It is not uncommon to see today’s kids on the mobile while
hitting the net, right? So in this age of YouTube, Twitter and Facebook, advertising content
has to keep pace. It can’t be as direct, naïve and simplistic as it once was. The new-age
consumer would dismiss it, straightaway.” For hard-core information and details about
products and services that are in the hi-ticket category, the internet provides it all; one doesn’t
have to completely depend on advertising. So the job of advertising today is to primarily push
the brand in an endearing fashion that triggers the recall factor, and examples discussed
indicates that ‘creativity’ stored better recall value
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.
RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem, it not only
takes the research methods but also consider the logic behind the methods. The study of
Research Methodology for developing the project gives us the necessary training in gathering
materials and arranging them, participation in the field work when required, and also
provides training in techniques for the collection of data appropriate to particular problems.
Main Objectives:

To understand the advertising strategies the major players in the paint industry use.

To analyze the effectiveness of each methods of advertising implemented by these
companies

To understand the recent trends in the advertising strategies

To find a scope of improvement
MARKETING RESEARCH
Marketing research is the systematic design collection, analysis and reporting of data findings
relevant to the specific marketing situation faced by the company. Marketing research
process, the research findings and inferences based on the data interpretations along with the
concept, methodology and limitations of the research are of much use to the management
while making strategic decisions about the company. In marketing research investigation the
first three steps namely formulation of the problem, specification of a research design and
collection of desired information tend to be closely interrelated. In Research Methodology,
we consider about the Research Design, Methods of Collection of Data, etc.
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RESEARCH DESIGN
A research design is a framework or blueprint for conducting the marketing research project.
It deals with the procedures necessary for obtaining the information needed to structure or
solve marketing research problems.
Research Design Used in this Project
The research design adopted in this report is Descriptive Research. The Descriptive Studies is
used in this project due to the fact that the descriptive studies attempt to obtain a complete
and accurate description of a situation, that is it covers the all phases required and provides
the ways to collect the data from various sources of information (sample design), ensure
minimum bias in the collection of data, hold costs to a minimum, and reduces the errors in
interpreting the data collected. In this report, we already have stated the problem, i.e. the
Advertising Strategies of the Paint Companies in India. Thus, this report basically deals with
describing the problem as to how, why, what affects this problem. Here, descriptive research
is used for the following purposes:

To understand the various advertising methods adopted by the paint companies

To analyse the recent trends in their advertising strategies

To analyse the effectiveness of each methods of advertising implemented by these
companies

To find a scope for improvement, if any.
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SOURCES & METHODS OF DATA COLLECTION
For the research purpose, the researcher does data collection. For successful efficient
marketing research investigation, the researcher must be familiar with the nature of the data
as well as the data collection method.
Sources of Data Collection
Sources of data collection state the various sources of data from where we collect the
information’s for the comparative analysis.
Primary Data
Primary data is a type of information that is obtained directly from first-hand sources by
means of surveys, observation or experimentation. It is data that has not been previously
published and is derived from a new or original research study and collected at the source
such as in marketing. Primary data is data that is original and has never been published
before. It is obtained through means of surveys, observation or experimentation and research.
Primary data is the raw information before the processing is done. It mainly consists of
numerical collections of raw information to be analysed and evaluated. The term primary data
may sometimes be used to refer to first-hand information.
Secondary Data
Secondary data is all the information collected for purposes other than the completion of a
research project and it’s used to gain initial insight into the research problem. It is classified
in terms of its source – either internal or external. Secondary data is any information that has
been collected or researched recently. Sources of secondary data include the internet,
libraries, museums, company reports, newspaper etc. The data collected is useful as it allows
the researcher to see the prevailing thoughts about his/her area of study. Secondary data is
any information collected by someone else other than it's user. It is data that has already been
collected and is readily available for use. Secondary data saves on time as compared to
primary data which has to be collected and analysed before use.
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Methods of Data Collection
Methods of data collection are the way through which the data is collected for the research
purposes. While deciding about the method of data collection to be used for the study, the
researcher should keep in mind two types of data viz., primary and secondary. The researcher
would have to decide sort of data he would to select for his study and accordingly he will
have to select one or the other method of data collection. The methods of collecting primary
and secondary data differ since primary data are to be originally collected, while in case of
secondary data the nature of data collection work is merely that of compilation.
The data collection method used in this report is Secondary Data.
The Secondary Data sources used in this report are mentioned in the diagram below:
SECONDARY
DATA
INTERNAL SOURCES
QUARTERLY SALES
REPORTS
WEBSITE VISIT
ANNUAL REPORTS
EXTERNAL SOURCES
MARKETING AND TRADE
JOURNALS
ACADEMIC PUBLICATIONS
COMPUTERISED DATABASES
FIGURE 4.1- SECONDARY DATA COLLECTION SOURCES
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ADVERTISING STRATEGIES ADOPTED BY MAJOR PAINT COMPANIES IN
INDIA
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INTRODUCTION
As mentioned in the earlier sections of this report, the Indian Paint Industry is an industry that
is experiencing continuous change and also shifts in terms of the consumer preferences and
tastes. Factors such as rising urbanization, increasing level of disposable income,
modernization of urban houses, development of the rural part of this country and growth of
the assisting sectors such as infrastructure, real estate and automobile is opening up the paint
industry and is giving them enough scope for expansion. Also the consumers are nowadays
becoming more brand conscious which is making them shift towards the quality products
available in the market, thereby increasing the market of the organized players in the sector.
These above mentioned factors have also increased the competition prevalent within the
sector. Thus, major companies like Asian Paints, Berger Paints, Kansai Nerolac and ICI are
spending more and more on their marketing programs and advertisement campaigns to gain
the competitive advantage. The companies are trying to position themselves differently than
its competitors in the minds of its target customers. The use of celebrity endorsing their
products has also been one of the highlights of the recent trends in the advertising strategies
of these companies. Companies like Asian Paints, Berger Paints, Dulux and Kansai Nerolac
are also fighting for appointing top notch celebrities as their brand ambassadors so as to
increase their brand recall and also to increase their mind share among the consumers. The
Indian market, which is under transition, is also getting more and more competitive both in
terms of consumption and quality consciousness. A booming paints and varnish industry has
resulted innovate marketing techniques come into play. All major players like Asian Paints,
Nerolac Paints, Berger Paints and few other players are trying to strengthen their retailing
operations with different marketing strategies/techniques because the paints and varnish
industries come under the impulse category where factor like supply change management.
The width of distribution, advertisement, packing & communication make all the differences.
But before we go into details of the marketing strategies used by each of these companies, let
us focus at the consumer behaviour pattern of this industry.
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Consumer Buying Behaviour
The consumer buying behaviour of paints is shifting from unorganized to organize as people
prefer more branded products now than ever before. Thus, companies are formulating their
marketing strategies as per the changing consumer patterns. However, there are few major
factors that influence the buying behaviour of consumers, which is highlighted in the figure
below:
Cultural
Culture
Social
Reference
Personal
groups
Age
and
life Psychological
Cycle stage
Occupation
Subculture
Family
Motivation
Perception
Buyer
Learning belief &
attitude
Social class
Roles and status
TABLE 9- FACTORS INFLUENCING CONSUMER BEHAVIOR
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As far as the Paint Industry is concerned, cultural factors hardly play any role in the buying
behaviour of the consumers. However, the social factors such as reference groups, family,
social status plays a very significant role in this process. As paint is a product that is more
technical in nature, people seek suggestions from their reference groups which mostly consist
of the builders, agents and the painters who have a vast knowledge of the structure of paints.
Thus, they are termed as the influencers of this sector and they have a big role to play and
companies also implement effective sales promotion strategies to lure them towards their
products. Families also play a big role in the buying pattern as they are the ultimate users of
this product. It is normally found that the women in the household are the ultimate decider of
the colour to be used and the kind of paint to be used. Occupation and lifestyle also plays a
major role in the consumer behaviour as the purchase of costly paints depends on the income
and the lifestyle of the customers. And the increasing disposable income is also considered to
be one of the growth drivers of this sector. So, these factors indeed play a deterrent role in the
consumer buying behaviour.
According to a research conducted by many, it has been found out that almost half of the
respondents surveyed are not even aware of the names of all the paint companies, which
includes top companies like Asian Paints and Berger Paints. Thus, this opens the scope of
these companies to re-formulate their marketing strategies and create awareness among the
people about their respective brands. Companies in this sector are now focusing more on
advertising because it has been found out that almost 70% of the purchase is initiated from
the advertisement in T.V. or magazines. The increasing use of Internet has also enabled
consumers to know more about the companies and also about the type of products they offer.
As it is the case for other industries too, the consumers are also choosing companies that offer
them value-added services like a Paint Handbook by the Asian Paints or the 7th Sense of
Colours by Berger Paints. Thus, offering value-added services along with quality products is
the core demand of the consumers in the paint sector.
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BRANDING STRATEGIES OF THE TOP FIVE PLAYERS
Asian Paints
Tagline/ Slogan
Merawala Blue; Har Ghar Kuch Kehta Hai
Ki ;Ask Aparna
Celebrity Endorser
Saif Ali Khan & Soha Ali Khan
USP
India’s biggest brand with widest reach.
Segment
Caters to all segments with brand Royale
aimed at premium segment and rest at mass
market.
Target Group
Home-owners, industries-hotels, education,
healthcare, agro & manufacturing equipment
and automobile etc. infrastructure, govt.
buildings
Positioning
A complete array of products to cater to
everyone.
Berger Paints
Tagline/ Slogan
Paint Your Imagination
Celebrity Endorser
Katrina Kaif
USP
Innovation, Performance, Customer First,
Ethical Practice And Valuing People.
Segment
Middle Class And Upper Class Segment
Target Group
Home Owners, Professionals And Industry
Users
Positioning
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Fulfill Your Imagination Of Colours
Kansai Nerolac
Tagline/ Slogan
Low VOC And Lead Free Healthy Home
Paints ; Painting A Greener Tomorrow; Kuch
Change Kare Chalo Paint Kare
Celebrity Endorser
Amitabh Bachchan, Shah Rukh Khan
USP
One Stop Solution For Most Eco-Friendly
And Innovative Decorative Paints And
Industrial Coatings
Segment
Middle And Upper Class Home-Owners;
Automotive Industry; General Purpose
Target Group
Automobile Brands (2 & 4-Wheelers
Segment), Home-Owners, Engineering
Industries;
Positioning
Low VOC And Lead Free Healthy Home
Paints And Market Leaders In Industrial
Coatings
AkzoNobel
Tagline/ Slogan
Tomorrow’s Answers Today
Celebrity Endorser
Farhan Akhtar, Shahid Kapoor, Boman Irani
USP
An International Brand That Caters To Wide
Range Of Industries Ranging From
Infrastructure To Personal Care.
Segment
Upper And Middle Class Strata Who Want
Good Quality Products With International
Brand.
Target Group
Paint Category-Infrastructure (Homes And
Commercial Buildings) Industry, Industrial
Chemicals-Process Industries; Surface
Chemistry-Personal Care Industry.
Positioning
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A Global Brand Serving World Over In
Paints & Protective Coatings, Industrial
Chemicals And Organic Formulations.
Jenson and Nicholson
Tagline/ Slogan
When You See Colour Think Of Us
Celebrity Endorser
USP
The Most Trusted Name In Paints, Leading
Technology; Benchmarking To Exceed
Industry Standards; Innovators In Paint
Industry
Segment
Decorative Segment- Premium And UltraPremium; Industrial Coatings
Target Group
Architects, End-Consumers Mainly In
Premium Segment And Industries, Dealers,
Painters.
Positioning
World-Class Technology; Innovators In
Paints Industry
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ADVERTISING METHODS
Television Commercials
Television Commercials form the largest part of the advertising campaign of any sector.
Television is now not a rarity as it was few decades back and almost every household has a
television. Thus, it gives enough opportunity to the companies to showcase their television
ads in front of a wide audience and at the same time. The major paint companies like Asian
Paints, Berger Paints and Kansai Nerolac have always taken due advantage of the television
medium. The increasing dominance of these three strong brands have somehow pushed
brands like Dulux, Jenson Nicholson out of the competition as far as the TVC branding is
concerned. However, very recently AkzoNobel’s Indian product Dulux has implemented an
effective branding strategy by appointing Shahid Kapoor and then Farhan Akhtar as its brand
ambassador.
The biggest drawback of television commercials is that it is very easy to be ignored.
Nowadays, with the advent of so many channels, it is very easy to surf channels and avoid the
ad campaigns which they find uninteresting. Another big drawback of this method of
advertising is that the company has to incur huge costs for displaying their ads and at a prime
slot. In spite of these disadvantages, companies are fighting hard to convey their messages
and offerings to their target group through television commercials.
If observed carefully, the television commercials of almost all the major paint companies
have a somewhat similar pattern. The television commercials focus on the following factors:

Humour

Children

Emotions

Environmental Friendliness

Cleanliness

Celebrity Involvement
The above mentioned factors are prevalent in the television commercials of every brand.
From Asian Paints to Nerolac to Berger, every company play around with these themes in
their commercials.
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Humour- Indian audiences have always been inclined towards advertisements that are
humorous or have a certain sense of humour. This can be seen in the television commercials
of almost every company operating in India irrespective of the industry it operates. The same
also goes with paint companies in India. From Berger Paints “Easy Clean” commercial to
Asian Paints’ “Free Happy Painting Guide” commercial to Jenson Nicholson’s first ad
involving Boman Irani, every company has touched the humorous element in its ads. Some of
the ads that carried humour as its main theme are shown in the images below:
BERGER EASY CLEAN COMMERCIAL
ASIAN PAINTS FREE HAPPY PAINTING GUIDE COMMERCIAL
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DULUX- APNE RANG CHALAKNE DO COMMERCIAL
JENSON NICHOLSON INSTACOLOR COMMERCIAL
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Children- Children have become an integral part of every ad campaign of every company. It
is often seen that the Indian audiences have always appreciated ads that had children as its
main protagonist. Children are often considered as God’s own creation in India. Thus,
involvements of children in the advertisement campaigns have always proved to be fruitful.
Every paint company operating in India has used children in their ad campaigns. Children
have generally formed the largest part of their ad campaigns. Some of the examples are given
in the images below:
BERGER PAINTS WEATHERCOAT COMMERCIAL
DULUX WEATHERSHIELD COMMERCIAL
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Emotions- Indians are considered to be people with high emotions and a country which gives
importance to the various relationships they are in. This is the reason why advertising
agencies of different companies take advantage of this fact and introduce an emotional theme
which can struck an instant chord among the consumers. Products of the upper-middle
segment are generally found to have an emotional angle to their ads. Examples of this can be
found in the images below:
BERGER PAINTS’ SILK COMMERCIAL
NEROLAC IMPRESSION ECO CLEAN COMMERCIAL
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Environmental Friendliness- Environment naturally becomes the most obvious factor in case
of the advertisement campaigns of the paint companies. Constant criticism of paint
companies regarding the excessive use of lead and other harmful elements in its products
have forced these companies to showcase eco-friendly products in their ad campaigns.
Almost all major companies are coming up with eco clean as their main theme. Berger Paints
has “Breathe Easy” as its eco-friendly product and also undergoes an initiative called Green
Horizon. The ad campaigns where environment has been the key focus are depicted in the
image below:
BERGER PAINTS “WEATHERCOAT ALL GUARD” COMMERCIAL
NEROLAC “NO VOC, NO GADBAD” COMMERCIAL
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Common Pattern in TVCs
As mentioned earlier, the television commercials of the major paint companies in India have
a similar pattern regarding the endorsement of their products. Celebrities are a major part of
their advertisement expenditure. Companies generally allow celebrities to endorse their
products which are meant for their premium segment. Emotions play a role in their interior
decorative segment, whereas children play a major role in their exterior decorative segment.
This is the same for all companies like Berger Paints, Asian Paints, Kansai Nerolac and
Dulux.
Premium Segment Products

Asian Paints’ Royale- Saif Ali Khan and Soha Ali Khan

Dulux Velvet Touch- Farhan Akhtar

Berger Paints’ Silk- Katrina Kaif

Kansai Nerolac Impressions- Shah Rukh Khan
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Print Ads
Print Ads have always been a significant method of advertisement. At a time when television
was not available to every household and was limited only to a few households, print ads
were the most effective method of advertising. The biggest advantage of print ads is that
through them, messages can be delivered to even the rural places of the country where
television is rare. The print industry have picked up after facing a downturn in the past
decade and is currently worth more that Rs. 240 billion and is growing at a CAGR of more
than 7%. In spite of the advancement of technology which is bringing new methods and
channels of advertising, companies have not sacrificed the use of print ads in their campaign.
It is the same in case of paint companies. In fact, it would be wise to say that the paint
companies have emphasised more on print ads than most of the other industries. The offering
of value-added services like providing the consumers with painting guide and colour guide
has allowed these companies to focus more on print ads. Berger Paints is one company
among all that has always focused on print ads. Print ads of Berger Paints are not only
available in English and Hindi, but are also available in local languages. This act of Berger
Paints is also now being followed by other companies like Kansai Nerolac and Asian Paints.
It is a known fact that the consumers all over the country are avoiding the traditional methods
of advertising and are accepting new and innovative methods of advertisement, but
companies believe that developing new and alternate channels of advertising does not
necessarily have to come up by sacrificing the traditional channels of advertising. New
channels have to be brought forward along the lines of the traditional ones. Many cities and
small towns of India are still affected by the traditional methods of print ads and television
when it comes to going to the next level of buying process.
The print ads can be in the form of the following:

Newspapers

Leaflets

Circulars

Handbook
The various print ads of different companies are highlighted in the images below.
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Berger Paints’ Print Ads
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Kansai Nerolac Print Ads
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Asian Paints’ Print Ads
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Dulux Print Ads
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Online Advertising
When it comes to the recent trends in the advertising methods, the most highlighting and
remarkable aspect is the tremendous growth of internet as a medium to advertise. Every
organization, big or small, is focusing now the most on the online marketing or the internet
marketing. Companies are tying up with online advertisement agencies not only to develop
their social media marketing strategies but also to develop their own official websites where
the target customers can gather useful information. Nowadays, the biggest factor that comes
in the process of purchasing any product or service is time. People normally find it useless to
travel to distant places and gather information about a particular product or service or an
organization. This is enabling the companies to implement effective online strategies so that
people can gather information and details sitting at their own homes. This also reduces the
time and also clears the confusion in the minds of the customers to a large extent.
In case of the paint companies in India, every company is developing their Facebook pages
and their own websites to stay in constant touch with their customers. They are also tying up
with agencies to do it for them. The paint handbook earlier mentioned in this report is also
available for download at their official website. Companies like Berger Paints, Asian Paints,
Jenson Nicholson have identified a new strategy to increase their brand recall by organizing
contests and awarding the winners and mentioning their names on their wall.
The online marketing in this report is divided into two sections- Social Media and Website
Social Media
Social Media is the future of marketing all over the world and the paint companies are
utilizing it to the fullest. The implementation of Berger Paints’ online marketing is itself a
case study. Berger Paints earlier had no source of online marketing except their Facebook
page which was not attractive enough. However, very recently they tied up with HGS
Interactive Solutions to redefine their social media strategy and create a brand experience for
online users through various campaigns that connect the users with the Berger Paints' brand
image. They came up with an overall digital media campaign idea of 'SEVENTH SENSE'
that connected well with the brand's tagline 'Paint Your Imagination'. This also included an
overall social media strategy for Berger Paints, with a focus on creating engagement, cross
marketing, reputation management, promotion of events, building brand connect and unifying
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the brand presence. They also created an interactive website for the brand in sync with the
overall thought.
BERGER PAINTS SOCIAL MEDIA MARKETING
SMO Creation

Berger Paints had no major social media presence, other than Facebook, so HGS
Interactive formulated a detailed social media strategy.

Facebook is the most relevant social network for Berger Paints. Being India's second
largest paints' company, Facebook makes it easier to target the desired mass audience
with our customized campaigns.
Engagement

Contests around festivals have been the key driver in engaging the audience. Over the
months we have had contests like Priyo Pujo, Berger Paints' SILK CAN Contest, etc.
Many more such contests are lined up in the coming days as a part of the 7th Sense
campaign.

Over 250 Years of Berger Paints' rich heritage has been established through the
Facebook timeline effectively.
Brand Monitoring

Relevant social media platforms were monitored. News, blogs, forums are
strategically key-worded in order identify people who are talking about the brand.

Negative comments are identified & are subsequently shared with the client along
with our recommendations to successfully maintain a positive brand image.
Good Numbers- Since August 2013, Berger Paints has increased its Facebook fans by nearly
10% through engaging posts & interactive campaigns.
Updates And Interactions- Berger Paints' Facebook page is updated daily with image posts
about colours, interior décor and festivals. It also focuses on personalized interactions.
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Promotions- Several successful campaigns and promotions held. For Durga Puja, two
Facebook contests were carried out inviting fans to participate. While one contest required
the fans to vote for their favourite Pandal, the other invited them to share their images along
with Berger Paints' product display to win exciting prizes.
Let us move further and do an independent study of Berger Paints activities on Facebook
through some images of their official Facebook page
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Asian Paints being the market leader is also not far behind in the social media marketing.
Asian Paints over the years have become an iconic advertising brand, especially after their
campaign “Har Ghar Kuch Kehta Hai”.
The following are the social media activities of Asian Paints
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It is clear that Asian Paints social presence is at best average. It lacks innovative thinking
even though its segment is colours which are a very broad opportunity. Asian paints seem to
be doing the basics but nothing that will engage their consumers in a more interactive and
brand centric manner. Paints also don’t only mean colour. They also mean décor. The page
hardly has any elements that touch upon the larger context of décor. One of the things a
consumer would look for was how he or she can use interesting colours to change the mood
and feel of their homes. In short a lot of gaps in the social media strategy for Asian paints and
a need to rethink.
Social Media Activities of Other Companies
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Website Marketing
The companies are also involved in developing their websites to provide the customers with a
better view and detailed information regarding their offerings.
The strategy of Berger Paints regarding its websites can be summed up as follows
WEBSITE
An interactive website was created around the central idea of '7th Sense' and the various
social media apps were also carried forward onto the website to maintain consistency.
REPUTATION MANAGEMENT- They reply to every query, comment and/or message
received, request feedback and solve customer queries/inconveniences across social media
channels, blogs and other online portals.
POSITIVE BRAND IMAGE- Through monitoring, brand's core values are reinstated on a
regular basis, resulting in a positive perception about the brand.
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Websites of Other Companies
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Celebrity Branding
Celebrity Branding is the most costly form of advertising as it requires appointing a wellknown celebrity as the brand ambassador of the company. Thus, it comes at a hefty price. But
this is also one of the most effective methods of communicating with the target customers,
especially in India. This is so because these celebrities are seen as demigod in India. People
aspire to be like them and probably take notice of whatever they speak or do. In this modern
age, people tend to ignore all commercials and advertisements while flipping through the
magazines and newspapers or viewing TV. But even then, the glamour of a celebrity seldom
goes unnoticed. Thus, celebrity endorsement in advertisement and its impact on the overall
brand is of great significance. In this process, the companies hire celebrities from a particular
field to feature in its advertisement campaigns. The promotional features and images of the
product are matched with the celebrity image, which tends to persuade a consumer to fix up
his choice from a variety of brands. Although this sounds pretty simple, but the design of
such campaigns and the subsequent success in achieving the desired result calls for an indepth understanding of the product, the brand objective, choice of a celebrity, associating the
celebrity with the brand, and a framework for measuring the effectiveness.
A brand should be cautious when employing celebrities to ensure promise, believability and
delivery of the intended effect. As the celebrities traverse from a mere commercial presence
to public welfare message endorsements, a whole new dimension is added to this process and
helps us in achieving a holistic view of the impact which celebrities generate in every sphere
and segment through their well-versed endorsements. Celebrities have also been in demand
having succeeded in being effective by rising above the clutter & grabbing the attention and
focus of the consumer. They also succeed in creating an aspiration in the minds of the
consumer to acquire what their favourite celebrity endorses.
The advantages of using a celebrity in endorsing your products can be summed up in the
following four “Qs”:

Quick Saliency

Quick Connect

Quick Shorthand for Brand Values

Quick Means of Brand Differentiation
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The companies in the Indian Paints sector have also identified this factor and are very
recently competing on the basis of celebrity endorsements. As mentioned earlier in this
report, celebrities in these companies are used to endorse their premium segment of products.
But they are very much helpful in increasing the brand value of their organization. Matching
the persona of the celebrity with the characteristics of the product is the most interesting and
challenging part of celebrity endorsements. This is the reason why Berger Paints appointed
Katrina Kaif as their brand ambassador for their premium product “Silk” as Silk is a product
that has been positioned in terms of elegance and Katrina Kaif is the perfect choice for that.
The same goes with Farhan Akhtar being appointed to endorse Dulux’s “Velvet Touch”. In
the commercials, the brand Velvet Touch is positioned as challenging and out of the box,
which goes in sync with Farhan Akhtar. However, the best example can be that of Asian
Paints choosing Saif Ali Khan and Soha Ali Khan to endorse their premium segment product
“Royale”. Royale Brand of Asian Paints signifies the royal look and this goes perfectly with
the likes of Saif and Soha, who are in fact from a royal family. Nerolac is a brand which
never hesitated to invest in promotions and brand building. The brand has a really
commendable awareness which was created through heavy brand promotions. The jingle "
Jab Khar Ki Raunak Badhana ho, Deewaroan ko jab sajana ho , Nerolac , Nerolac " still
lingers in the memory of the public. Such catchy jingles and campaigns lifted the brand to
double digits market share levels but could not bridge the gap with the market leader. It was
in 2003 , that the brand made a huge plunge in celebrity driven promotion by roping in
Amitabh Bachchan. The endorsement from Big B was a big news at that point in time. One of
the major positioning moves for Nerolac also happened at that time. Nerolac was originally
positioned on a beauty-enhancing proposition. The brand talked about decoration and in a
plain speaking style successfully associated itself with that proposition otherwise that jingle
could not have survived this long. However, the brand very recently has repositioned itself. In
tune with the global positioning of its parent Kansai Paints, Nerolac also adopted the
positioning based on environment -friendly attribute. The new campaign positions Nerolac as
a healthy paint with no lead content and Eco-clean property. Shah Rukh sells this idea
through the TVCs.
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CELEBRITY ENDORSERS
TABLE 10
Asian Paints
Saif Ali Khan & Soha Ali Khan
Berger Paints
Katrina Kaif
Kansai Nerolac
Shah Rukh Khan
Dulux
Farhan Akhtar
Pictorial Representation
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CONCLUSION
Advertising is the most effective and the most sought-after way of communication for any
company operating in any industry. The whole purpose of advertising is to sell products or
ideas. Without a proper advertising campaign, a company cannot succeed. It has been
highlighted in the report that organizations are constantly finding out new methods of
advertising. As the world is changing, people are also adapting well to the new channels of
communication.
The Paint Industry is one such industry that is seeing dramatic changes in its operations,
demand and supply and also its advertising strategies. The marketing communications
strategies of the major players in the industry are the reason why the consumers have decided
to shift from low-quality paint to the branded ones. And this has led to a tough competition
among the major players. The company in this sector mainly focus on four methods of
advertising- Television Commercials, Print Advertisement, Online Marketing & Celebrity
Branding. As evident from the report, television commercial is one aspect of advertising
which is at its developed stage in this sector. But it is seen that companies are somehow
losing their sheen over print advertisements. But the advent of developing new methods of
advertising has also struck the paint companies as their main focus is Online Marketing,
which the companies are desperately trying to capture. Companies are ambitiously
developing their social media strategies as evident from the report. Same is the case with
Celebrity Endorsements, which is letting them incur huge costs to create a brand recall
among the customers.
As far as companies are concerned, Jenson Nicholson is lagging behind in every aspect than
its competitors. Asian Paints being the market leader is probably the strongest in terms of
their advertising strategy. But Berger Paints is slowly but steadily catching up with both
Asian Paints and Kansai Nerolac in terms of marketing strategy as they have recently come
up with some great innovative strategies that is going to provide them with the optimum
results.
Thus, to conclude, it can be said that companies should focus on every method of advertising,
more on print ads. However, it can be said without a doubt that online advertising is the
future for this industry.
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BIBLIOGRAPHY
1. Belch, George E. & Belch, Michael A.(2011), “Advertising and Promotion- An
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4. Brierley, S. (1995), “The Advertising Handbook. London: Routledge”
5. Jain, Kokil (2010), “Celebrity Endorsements and Brand Building”.
6. Witt Austin, Gary (2011), “How You Create Advertising that Sells”, Halsteade
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