Vipul Sip Report-2

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CHAPTER - 1

INTRODUCTION

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1.1 PURPOSE OF THE PROJECT

The project is titled: To study the satisfaction of existing Dealers and identify potential Dealers for Kansai Nerolac paints Ltd. in PCMC region.

Purpose of the project:
The purpose of the project is to understand the satisfaction of Existing Dealers and also understand the current market position of the company in comparison to its competitors and also to know who the potential new Dealers are. The importance of the above can be explained with the help of the following information.

1.2 SCOPE AND OBJECTIVES OF THE PROJECT

Scope of the project:
 Study of products and services offered to Dealers of KANSAI NEROLAC PAINTS Ltd.  Collecting information on Dealers satisfaction of KANSAI NEROLAC PAINTS Ltd. in comparison to its competitors. The objective of the project is to know the satisfaction of existing Dealers and to identify potential Dealers.

1.3 Contribution of the Project Report
The Findings from the survey helped to understand the parameters to be focused for satisfying the dealers, also the preferences of the dealers to do business with the company.

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CHAPTER-2

INDUSTRY/COMPANY OVERVIEW

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2.1 INDUSTRY OVERVIEW
Indian Paint Industry is over 1000 years old. Its beginning can be traced back to the setting up of a factory by Shalimar paints in Calcutta back in 1902. Till the Second World War the industry consisted of small producers and two foreign companies. After the war, the imports stopped which led to the setting up of manufacturing facilities by local entrepreneurs. Still the foreign companies continued to dominate the market, which in a way is the current scenario as well. The initial decades saw the complete dominance of British Paint companies such as Goodlass Walls (now Goodlass Nerolac), ICI, British Paints (now Berger Paints), Jenson & Nicholson and Blundell & Eomite. The Indian Paints sector is valued at Rs 11000 crores in value terms and is very fragmented. The current demand is estimated to be around 650,000 tonnes per annum and is seasonal in nature. The per capita consumption of paints in India stands at 1.0-kg p.a. as compared to 1.6 kg in China and 22 kg in the developed economies. India's share in the world paint market is just 0.6%. The Indian Paint industry can be divided as:  the organized sector comprising of large and medium size units  The unorganized or the small scale sector. There are now twelve players in the organized sector with a market share of 70%. This is in contrast to the 55% share that the sector commanded a few years back. Major companies in this segment include Asian Paints (41% market share), Berger Paints (17% market share), ICI (12% market share), Kansai Nerolac (18% market share), Jenson Nicholson (6% market share), Shalimar Paints and Rajdoot Paints. The organized sector has grown at a CAGR of 11.5% in the last five years. The unorganized sector comprising of over 2000 units has a combined market share of around 30%. The major players are Asian Paints, Kansai Nerolac, Berger, ICI and Shalimar. Recently, world leaders like Akzo Noble, PPG, Dupont and BASF have set up base in India with product ranges such as auto refinishes, powders and industrial coatings. Kansai Paints of Japan, which entered into collaboration with Goodlass Nerolac in 1984, is now the holding company for Goodlass Nerolac with 64.52 % equity holding. PPG has a joint venture with Asian Paints to manufacture industrial coatings. Jenson & Nicholson and Snowcem India are no longer active players because of dwindling sales in recent years.

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In the 1990s, helped by a growing economy, the paint industry had recorded a healthy growth of 1213 % annually. This was mainly due to a drastic reduction in excise from a staggering 40% to 16%. However, the growth was restricted in 2000-03 to single digits. There was a revival in 2003-2004 with a robust growth of 13%.

The per capita consumption of paint in India is 700 grams against 19 kg in the U.S., and 2.7 kg and 5.8 kg in other developing countries like China and Brazil. As the consumption goes with affordability, the low Indian figure is not a surprise. High excise duties, low technology and low capital costs for production led to the incidence of a high number of units in the small scale sector. However, since 1992 the government has been consistently lowering duties from 40.5% in 1992 to around 16% currently. This has led to lowering of price differential between the organized and unorganized sector. Moreover the paints sector was also allowed to claim MODVAT credit on petro-based products, thus lowering the excise incidence further. Products The products of the paint industry can be classified into two major segments – decorative (architectural) paints and industrial paints. While the decorative paints are used in protecting valuable assets like buildings, the industrial paints are used for protection against corrosion and rust to steel structures, on vehicles, white goods and appliances. Decorative paints: The decorative paint segment can be classified into interior paints and exterior or cement paints. 80% of the decorative paint segment (about Rs. 3640 crores in the organized sector) accounts for interior paints, which consists of premium, medium and economy categories. The premium category consists of plastic emulsions, the medium-priced category consists of synthetic enamels and the economy category consists of distempers. The products under the decorative finishes can be limestone coatings, primers, distempers, cement paints, matt/lustre finishes, enamels, emulsions (first quality), and premium emulsions. Within the decorative segment, the exterior category, particularly exterior emulsions, is the fastest growing segment 20 % for the last three years.

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Consumption of paints is skewed towards decorative paints which account for 70% of paints sold in India. This is in a sharp contrast to the trend in developed countries, where the ratio is skewed towards the industrial segment. This segment is marked by the presence of a large number of players from the organized as well as unorganized sector. Competition is high and margins tend to be low in this segment. Products of this segment is relatively price sensitive. Asian Paints is the market leader in this segment. Demand for decorative paints is seasonal with bulk of sales taking place during the festival seasons from September to December. Besides, sales remain slack during the monsoon months from June to August. Entry barriers in terms of technological and funds requirements are relatively lower in the paints sector. It is estimated that a plant of 1 m tpa will cost around Rs 120 m. However decorative paints are marketing-savvy products and backed by large advertisement campaigns and dealership networks. These serve as high cost entry barriers for new companies in this business. The huge investments required in setting up a vast marketing and dealership network, to advertise and develop a brand over a period of time can only be afforded by companies in the organized sector. It is for this reason that smaller companies and small scale sector units are slowly losing market share to the organized sector. Industrial Paints: Industrial paints comprising 30% of the market include automotive paints, high performance coatings, coil coatings, powder coatings, marine paints and general industrial coatings. The automotive segment is further bifurcated into OEMs and auto refinishes. The automotive and general industrial coatings occupy top slot in terms of production. Goodlass Nerolac is the market leader in this segment.

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2.2 COMPANY OVERVIEW
Goodlass Nerolac Paints Ltd. (GNPL), the Indian subsidiary of Japan based Kansai Paint Co. Ltd, is the second largest paint company in India with presence in decorative paints as well as industrial paints & marine paints, enamels, varnishes, coatings, resins etc. It is the second largest coating company in India. The company markets its products under the brand names Nerolac, Glossolite, Goody, Allscapes, Excel, in decoratives. The Company was established in 1920 as Gahagan Paints and Varnish Co. Ltd. at Lower Parel in Bombay. In 1930, three British companies merged to formulate Lead Industries Group Ltd. In 1933, Lead Industries Group Ltd. acquired entire share capital of Gahagan Paints in 1933 and thus, Goodlass Wall (India) Ltd. was born. Subsequently, by 1946, Goodlass Wall (India) Ltd. was known as Goodlass Wall Pvt. Ltd. In 1957, Goodlass Wall Pvt. Ltd. grew popular as Goodlass Nerolac Paints (Pvt.) Ltd. Also, it went public in the same year and established itself as Goodlass Nerolac Paints Ltd.

It came into the fold of Tata Forbes Group in 1976, as its foreign holdings were acquired by Forbes Gokak. It turned into Joint Venture Company in 1986 as the foreign collaborator Japan based Kansai Paints picking 36% of equity capital of the company. With the acquisition of entire stake of Forbes Gokak and its associates by Kansai Paints it became the subsidiary of the latter in 1999. The stake of Kansai Paints in the company now stood at 64.52% of the total equity of the company. The company has five manufacturing facilities at kanpur, Ratnagiri, Ahmedabad, Perungudi, and Rewari spread across India. The Company serves its customers through 66 Sales locations and five strategically located factories. Technical Assistance Agreements of the company with renowned players in paint industry at international level puts the company in a strong position to offer products which meets stringent international specifications.

It started in 1993 when the company tied-up with Kansai Paints of Japan (for manufacture of Sophisticated architectural Coatings) and Nihon Tokushu Torya Co. Ltd also of Japan (for body seal and under seal coatings). And the latest being the technical assistance agreement with Dupont Performance Coatings GmbH & Co. KG, Germany for know-how of manufacture of Anodic Electro-deposition Coatings System during the year 2000-01. The company's other Technical Assistance agreements include E.I. Dupont De Nemours & Co. Inc. of USA for automotive coatings; 7

Oshima Kogyo Company Ltd., of Japan for heat resistant paints; Valspar Corporation of US for powder coatings; Drew Chemicals Corporation of US for water and fuel treatment chemicals and Ameron Inc. USA for high performance coatings.

The company has strong presence in automotive paints as it controls 45% of the organized Industrial paint segment. Its major clients include OEMs like Maruti Udyog, Bajaj Auto, TELCO and Mahindra & Mahindra. It was a pioneer in introducing electro-deposition (ED) technology for Maruti, capturing a sizeable share of the automotive paint market. The company has two wholly owned subsidiaries namely Saurashtra Paints and GNP (Madras). The above subsidiary companies were amalgamated with the company from April, 2002 with consent approval from both the states High courts.

It has the software package, computerized colour dispensing machine from Fluid Management Holland, Gyro shaker of 10-Litre capacity touch screen monitor, 136 column palette-share display units and a Kirloskar Champion UPS 1 KVA. The system has an ability to supply over 1305 shades accurately, consistently and instantly in several products covering a variety of application viz doors, windows, walls, exteriors, gates, grills etc. During 2001-02, the company has entered into a technical agreement with EFTEC Shroff (India) Ltd. for the manufacture and supply of Automotive Paint Shop Sealers and Underbody Compounds.

The Company is in the process of setting up a new manufacturing unit at Bawal, Haryana at an estimated cost of Rs.100 crores with an annual capacity of 20000 MT p.a. The above project is being financed through internal accruals. During 2004-05 the company has setup a new Greenfield plant, with a capacity of 20400 MT, at Bawal, district Rewari of Haryana and this was commissioned on 19th March 2005. During 2003-04, the capacity at the Jainpur was increased by 24% for water based paints, by setting a new facility. Consequent to the approval of the High Court of Madras and Bombay the amalagmation of Chemguard Coatings Ltd with the company was completed on 1st September 2005 During 2005-2006, the company made an investment in a Malaysian Company, a joint venture company between the company and Kansai Paint Co Ltd., Japan (Kansai), Where the company will hold 55% stake and 45% Stake by Kansai. Further the Malaysian company has entered into an agreement to acquire the paint business of Sime Coatings Sdn.Bhd., Malaysian and this is 8

subject to approval. During the same period the companies Production capacity of Paints Varnishes and enamels has increased from 138400 MT to 153900 MT. The capacity of Synthetic Resins stood at 36250 MT and Capacity of Pretreatment Chemicals stood at 2400 MT.

1.4 PRODUCT DETAILS
1. Water-based Paints a. Emulsions i. ii. iii. iv. v. vi. vii. Nerolac Impressions – 24 carat Nerolac Impressions - Metallic Nerolac Impressions – Disney Nerolac Impressions- Eco Clean Nerolac Beauty - Premium Nerolac Beauty – Silky Smooth Nerolac Beauty – Beauty Finish

b. Distemper i. ii. iii. Beauty Premium Acrylic Distemper Beauty Acrylic Distemper Beauty Oil Bound Distemper

2. Solvent-based Paints a. Lustre i. b. Enamel i. ii. iii. iv. c. Flat Oil Nerolac Synthetic Flat Oil Interior Paint Nerolac Synthetic Enamel Nerolac Satin Enamel Impressions Hi- Performance Goody Synthetic Enamel Nerolac Pearls Lustre Finish

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CHAPTER - 3

THEORITICAL BACKGROUND

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Customer Satisfaction
Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business. Businesses have learned to collect data on a number of dimensions to create external data or customer satisfaction information. Sales figures, and if the trend is up or down over time are important. Usually strong sales mean customer satisfaction. Sometimes it means that a business has a unique product with little or no competition but typically sales and customer satisfaction are correlated. Customer loyalty or repeat business is another important dimension of customer satisfaction. (Source: http://www.utexas.edu/research/cswr/survey/site/customer/cspaper.pdf)

Methodologies
The Kano model is a theory of product development and customer satisfaction developed in the 1980s by Professor Noriaki Kano that classifies customer preferences into five categories: Attractive, One-Dimensional, Must-Be, Indifferent, Reverse. The Kano model offers some insight into the product attributes which are perceived to be important to customers. Kano also produced a methodology for mapping consumer responses to questionnaires onto his model. SERVQUAL or RATER is a service quality framework. SERVQUAL was developed in the mid eighties by Zeithaml, Parasuraman & Berry. SERVQUAL was originally measured on 10 aspects of service quality: reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding or knowing the customer and tangibles. It measures the gap between customer expectations and experience. By the early nineties the authors had refined the model to the useful acronym RATER:
    

Reliability Assurance Tangibles Empathy, and Responsiveness 11

Channel Management
Nerolac’s strength of wide spread distribution network is its right arm in generating sales revenue from all parts of India. Nerolac has a wide distribution network of over 11,000 dealers We have eight Sales Divisions and each division has depots to take care of local needs. In all we have 66 depots All this ensures complete reach in India including rural and up country markets. Marketing channels “Marketing channels are sets of interdependent organization involved in the process of making a product or service available for use or consumption.” (Or)
• The Network of partners in the value chain that cooperate to bring products from producers

to ultimate consumers • Imagine Nike again • All those who help in bringing shoes to the consumer from the factories (or is it sweatshops?) in Indonesia are the channel members (except transporters) • These include wholesalers, retailers, agents, brokers etc • They are called intermediaries, middlemen, dealers, resellers or distributors

By channel distribution mean the intermediaries or the process through which the goods products are transferred from the producer to the ultimate users. (Source: http://nptel.iitm.ac.in/courses/IIT-MADRAS/Management_Science_II/Pdf.)

Now a day any of the producers possibly do not sell their goods directly to the final users. There are a lot of intermediaries between producers and consumer, bearing a variety of name performing various kinds of function. Some intermediaries like wholesalers and retailers buy and resale taking the bill. They are known as merchant middle men and other are brokers, representative sales agent who seeks or search for customers and negotiate on the behalf of the producer but do not take of goods. These are called as middlemen.
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The manufacturer and its distributive outlets share common objective to sell the manufactured products at a profit. No doubt its objective differs with the marketing circumstance. Even though many variation of specific objective fits into some categories. These are as follows: To built distribution network loyalty  To stimulate distribution  To develop managerial efficiency in distribution organization  To identify the source of supply for the product line at the final buyers level

The channel of distribution is a structure which organized and presents a choice among alternative channels of distribution of the different marketing situations faced by retailers, whole sellers and producers within the structure. It may be considered as a series of function which must be performed in order to make producers efficiency. To bearing maximum profits of all institutions concerned a channel of distribution should be treated as a unit of total system of action. The activities of the manufacturer need to be coordinated with these middlemen used in the distribution of given product. The important of middlemen in channel of distributional can be over emphasized. It is that who1. Collects concentrates the output of various producers, 2. Subdivides these into lot desired by the customers gathers various items together in the assortment wanted and 3. Disperses the assortment to consumer industrial buyers.

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Dealer Appointment
In the interior decorative paint segment all consumer level purchases are made from dealers. Therefore, they play a critical role in determining the success of a particular brand of paint. From a company viewpoint the objective of appointing dealers is as follows: 1. Increase market penetration 2. Market Development & Education of the customer 3. Increase availability/visibility of the brand 4. Leverage dealer skill set and personal contacts 5. Secure payments

Distribution Network

Factory (5)

Regional Warehouses (8)

Regional Warehouses (8)

Local Depots

Dealers

Customers Fig: 3.1 14

Channel Satisfaction
The Channel Satisfaction increases the prominence, popularity, market size, and the total customer satisfaction. In order to survive and grow in the competitive markets, companies must keep care of the channel satisfaction as it is closely connected with the satisfaction of external customers, customer base, and market size and market image of the companies. These things are in turn connected with the better survival and growth of any companies, especially in the highly competitive foreign markets.

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CHAPTER – 4

OBJECTIVES

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Objectives of the Project

Primary Objectives  To know the satisfaction level of the Existing Dealers of Nerolac Paints.  To identify the Potential Dealer and Development of these dealers.

Secondary Objective  To know about the dealership network of Kansai Nerolac Paints Ltd.  To appoint new Dealers for Kansai Nerolac Paints Ltd.

 To know about dealers preferences of doing business with any company.

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CHAPTER - 5

RESEARCH METHODOLOGY

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5.1 Introduction

Definition of Research The word research is derived from the Latin word meaning to know. It is a systematic and a replicable process, which identifies and defines problems, within specified boundaries. It employs well-designed method to collect the data and analyses the results. It disseminates the findings to contribute to generalize able knowledge. The characteristics of research presented below will be examined in greater details later are:  Systematic problem solving which identifies variables and tests relationships between them,  Collecting, organizing and evaluating data.  Logical, so procedures can be duplicated or understood by others  Empirical, so decisions are based on data collected  Reductive, so it investigates a small sample which can be generalized to a larger population  Replicable, so others may test the findings by repeating it.  Discovering new facts or verify and test old facts.  Developing new scientific tools, concepts and theories, this would facilitate to take decision. For the proper analysis of data simple statistical techniques such as percentage were use. It helps in making more generalization from the data available. The data which was collected from a sample of population was assumed to be representing entire population was interest. Demographic factors like age, income and educational background was used for the classification purpose.

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Research Process
The purpose of the methodology section is to describe the research procedure. This includes the overall research design, data collection, data interpretation and research report preparation

Problem Identification

Research Design

Data collection

Data Interpretation

Research Report Preparation

5.2 Research Methodology

Research type: Descriptive and analytical Research. The quality of research project depends, among the other things, upon the suitability of the method selected for it. Hence care should be taken in selecting the appropriate method of research for any project. There are basically 5 types of research of which the researcher felt that Descriptive & analytical `Research was appropriate for this research.

Reason of Selecting Descriptive Research:  Descriptive study is a fact-findings investigation with adequate interpretation.  It is the simplest type of research.  It is more specific than an exploratory study, as it has focus on particular aspects or dimensions of the problem studied. 20

 A descriptive study aims at identifying the various characteristics of a community or institution or problem under study, but it does not deal with the testing of hypothesis.  The major purpose of descriptive research is description of the state of affairs as it exists at present. Descriptive studies helps to understand the agents’ profile.

Data Type:There are two types of data type are as follows 1. Primary Source of DataPrimary data: Interviewing and Questionnaire method Primary data had been collected through survey method which had done at starting of project and by filling the questionnaire of agents. 2. Secondary Source of DataSecondary database had been collected through a. Company Database of agents. b. Surfing through internet. c. Just Dial

Sampling Plan:
It includes all the information about 1. Sample population 2. Sample type 3. Sampling frame 4. Sample Area

1. Sample population : All the Hardware Retailers in PCMC region.

2. Sampling type: The research has been carried out by non probability random sampling.

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3. Sampling frame:Sampling unit may be a geographical one such as state, district, village etc. It may be a social unit such as family, school etc. For the research, the investigator has considered all the existing Dealers of Kansai Nerolac who gave regular business to the company.

4. Sampling Area:The same areas for the project were:  PCMC i.e. (Pimpri Chichwad Municipal Corporation)

Sampling Method:Sampling method used here is Random Sampling Method. For the research, the researcher has used non-probability sampling. It is also called as purposive sampling. Under non-probability sampling the organizers of the inquiry purposively choose the particular unit of the universe. There is always the danger of bias entering into this type of sampling technique. Following are the advantages of this type of sampling.

1. This sampling scheme is very easy and convenience to operate 2. Low cost of selection and low cost of field work 3. It is useful for testing a questionnaire 4. Time required is very less as there is no set of rules for selection.

Processing and Analysis of data:
Analysis means the computation of certain indices or measures along with searching for patterns of relationship that exist among the data group. For analyzing the data the researcher used various tools from MS Excel.

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CHAPTER - 6

DATA ANALYSIS/ INTERPRETATION

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6.1 NUMBER OF DEALERSHIP
When asked about the composition of multi-brand and sole dealers, the interviewee responded saying that in this segment only those dealers who lack capital resources tend to become sole dealers. With larger financial resources at their disposal they would have opted to become multibrand dealers. Another aspect which dampens the success prospects of Sole Nerolac Dealer would be the fact that they do not have the strongest foothold in the market. While, Asian Paints has cornered almost half the market it is noticeably easier to find an Asian Paints exclusive dealer than a Nerolac one. The only real advantage that an exclusive dealer has over a multi-brand dealer is that of a higher margin at its disposal as the company offers products at a marginally lower rate to exclusive dealers. Multi-brand dealers have the advantage of offering a variety of brands and therefore are a one-stop shop for customers who will be able to choose the best product in a segment from a number of principal manufacturers.

Fig: 6.1
More Then Three 7% Three 13%

Dealerships

One 7%

Two 73%

INTERPRETITION The above chart signifies that majority i.e. 79% of existing dealers have Dealership with at least two Paint Companies, so it can be interpret from here that most of the dealers’ priorities Multiple Dealership as they believe can attract more customer with Broad Product Range. 24

6.2 CATEGORY OF DEALERSHIP

CORE DEALERS – The Dealers whose annual turnover is more than 2 crores A CATEGORY – The Dealer whose annual turnover is more than 50 lakhs of kansai Nerolac Products. B CATEGORY – The Dealer whose annual turnover is less than 50 lakhs.

Fig: 6.2

INTERPRETITION From above of the Chart the majority no. of Kansai Nerolac Dealers is B Category 25

6.3 MARKETING
6.3.1 MARKETING ASSISTANCE

Adequate marketing assistance is provided to Dealers by the company 1 2 3 4 5
Strongly Disagree Disagree Average Agree Strongly Agree

Fig: 6.3.1

3%

No. of respondants 10%
32% 45% 1 2 3 4

10%
Table: 6.3.1 Rank 1 2 3 4 5 No. of respondents Weighted Mean 3 2.833333333 14 3 10 1

INTERPRETITION This reflects that the dealers are not very satisfied in the kind of marketing assistance they receive from the company. The dealers said they only receive shade cards and a company board from Nerolac and nothing else.

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6.3.2 REGULAR SCHEMES The regular Schemes introduced by the Company are Favorable? 1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

Fig: 6.3.2

No. of respondants
7% 13% 17% 7% 56% 1 2 3 4 5

Table: 6.3.2 Rank 1 2 3 4 5 INTERPRETITION The above Scale shows that Regular Schemes launched by Kansai Nerolac Paints are Beneficial and Effective. No. of respondents 2 5 2 17 4 Weighted Mean

3.533333333

6.3.3 COMMUNICATION OF SCHEMES 27

The Schemes are communicated on time and clearly by the respective sales executive 1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

Fig: 6.3.3

No. of respondants
7% 17% 36% 7% 33% 1 2 3 4 5

Table: 6.3.3 Rank 1 2 3 4 5 INTERPRETITION The Satisfaction level of the Dealers if we take about the communication of schemes tends to be Average at scale 3, Some part of dissatisfaction was found in Dealers wherein Dealers are not communicated schemes on time or effectively. No. of respondents 5 10 2 11 2 Weighted Mean 2.5

6.4 SALES SERVICNG
The service by the sales team of company is impressive 28

1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

Fig: 6.4.1

No. of respondants
0% 18% 6% 15% 1 2 3 61% 4 5

Table: 6.4.1
Rank 1 2 3 4 5 INTERPRETITION From the above interpretation we can conclude that majority of the Dealers are satisfied with the service by the sales team of the company. No. of respondents 0 2 5 20 6 Weighted Mean

4.3

6.4.2 SALES EXECUTIVE VISIT

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The Sales Executive visit periodically

1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

Fig: 6.4.2

No. of respondants
17% 7% 17% 0% 1 2 3 59% 4 5

Table: 6.4.2 Rank 1 2 3 4 5 No. of respondents 2 5 0 17 5 3.5 Weighted Mean

INTERPRETETION The above analysis states that majority of Dealers were satisfied but few dealers was not satisfied with the number of times the sales executive visits.

6.4.3 ORDERS AVAILABILITY The Order is supplied on time as it is required 30

1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

Fig: 6.4.3

No. of respondants
0% 7% 36% 40% 17% 1 2 3 4 5

Table: 6.4.3 Rank 1 2 3 4 5 No. of respondents 0 11 5 12 2 Weighted Mean 3.1

INTERPRETITION From the above observation it can be interpreted that Dealers are not satisfied with the availability of specific Order they place, many of the times some products are not available in the depot of the company.

6.4.4 CREDIT POLICY SYSTEM 31

The Creditability system of the company is good and flexible

1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

Fig: 6.4.4

No. of respondants
0% 28% 1 61% 11% 2 3 4

Table: 6.4.4 Rank No. of Weighted Mean respondents 1 0 4 2 5 3 2 4 11 5 12

INTERPRETITION The above analysis shows that Dealers are satisfied with the credibility system adopted by the company. And only few dealers complain about the same.

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6.4.5 SERVICE AND MAINTNENCE Service and maintenance of the Colour Machine is effectively done on time as informed by you 1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

Fig: 6.4.5

No. of respondants
30% 30% 1 2 17% 23% 3 4

Table: 6.4.5 Rank 1 2 3 4 5 INTERPRETITION The above analysis and from observation the service and maintenance was one of the major issue Dealers were not satisfied. No. of respondents 9 7 5 9 0 Weighted Mean 2.466666667

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6.4.6 CLAIM SETTLEMENT SYSTEM

The Claim settlement system of company is efficient

1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

Fig: 6.4.6

No. of respondants
1 2 3 4 5

Table: 6.4.6 Rank 1 2 3 4 5 INTERPRETITION The claim settlement system was dissatisfactory which can be easily observed from the analysis. No. of respondents Weighted Mean 2.466666667 9 7 5 9 0

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6.5 OVERALL

6.5.1 MARKET PROFITABILITY Market Profitability in Kansai Nerolac Products is one of the major factor draws Dealers Interest 1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

Table: 6.5.1

Table: 6.5.1 Rank 1 2 3 4 5 No. of respondents 0 2 0 13 15 Weighted Mean 4.366666667

INTERPRETITON From the above analysis it s clear that majority of the dealers strongly agrees that market profitability is the major factor which attracts them towards companies product.

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6.5.2 COMMISSION Completion of Targets are appreciated by the Company in various ways

1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

Fig: 6.5.2

No. of respondants
0% 18% 6% 15% 1 2 3 61% 4 5

Table: 6.5.2 Rank 1 2 3 4 5 INTERPRETITION Majority of Dealers are satisfied with the commission and other benefits they receive from the company on completion of Targets. No. of respondents 0 2 5 20 6 4.3 Weighted Mean

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6.5.3 FEEDBACK AND GRIEVANCES

Company has an efficient mechanism to handle the feedback and grievances

1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

Fig: 6.5.3

Table: 6.5.3 Rank No. of Weighted Mean respondents 1 6 2.566666667 2 12 3 5 4 8 5 0

INTERPRETETION Dealers are not satisfied with mechanism to handle feedback and grievances as the company does not respond to their grievances properly.

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CHAPTER – 7

CONCLUSION

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7.1 PRIMARY



Due to lack of substantial benefits being offered to exclusive dealers most of them chose to be multi-brand dealers.



The company-Dealers communication channel is almost non-existent as the company is spending vast amounts of money on R&D and surveys to identify emerging trends and accordingly release new Schemes.



The company employs a double-standard policy in granting commission to some of its dealers depending on variables such as sales and location. This has in a way leaded to de motivation of dealers.



Inadequate marketing assistance resulting in dissatisfaction of dealers.

7.2 SECONDARY



Networking capabilities of the company is poor which is why they have not been able to target a large number of contractors, painters and architects to involve them in local meets and educate them about benefits of Nerolac and seek their feedback. This has lead to the company moving slower than its competitors in making changes.

• Some Stockiest of Kansai Nerolac troubling other dealers & company by selling
product at low prices.

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CHAPTER - 8

LIMITATIONS

40

LIMITATIONS
The project suffers from certain limitations. This may affect the analysis, so mentioning them becomes crucial.



This research was limited to the Area of PCMC only.



There were difficulties in getting accurate responses from the respondents. As all of them were not cooperative.



Communication Problem.

41

CHAPTER - 9

RECOMMENDATIONS

42

RECOMMENDATIONS
1. The long term schemes are not Communicated properly to all the Dealers Company’s Communication System Through Mailers & Through Sales Executive

Recommendation 1. The mailers should also be in regional or Hindi language. 2. Confirmation from dealers whether the scheme is communicated.

Reason 1. Most of the Dealers are not conversant with English. 2. Depending only with Communication through sales Executive is not efficient.

2. Should also Target Average Potential Dealers.

Company’s Strategy

Recommendation

Reason Increase the market penetration & establish formidable presence.

Targeting only High Potential The main targets should be the Dealers new Retail & Average potential Dealers with no Colour tinting machines

43

BIBLIOGRAPHY

44

Bibliography

Book Reference:
1. Philip Kotler, “Marketing Management”, Eleventh Edition Pearson Education Asia 2003. 2. Kothari C. R. “Research Methodology”, Second Edition, New Age International Publishers 2008. 3. Lamb and Hair “Basics of Marketing” International Publisher 2009. 4. Marketing Research by G. C Berry.

Websites
1. www.kansainerolac.com 2. www.wikipedia.com 3. www.scribd.com

4. www.bnet.com

45

APPENDIX

46

QUESTIONNAIRE

DEALER SATISFACTION Dealers Name: Counter No/ Name: Date: Area:

A. MARKETING
1. Currently you are a Dealer of how many Paint Companies?  One  Two  Three  More Than Three 2. What Category of Dealership you are in with Kansai Nerolac?  Core Club  Exclusive  General 3. Adequate marketing assistance is provided to Dealers by the company 1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

4. The regular Schemes introduced by the Company are Favorable? 1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

5. The Schemes are communicated on time and clearly by the respective sales executive 1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

47

B. SALES SERVICING 6. The service by the Sales team of the company is impressive 1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

7. The Sales Executive visits periodically 1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

8. The Order is mostly available and supplied on time 1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

9. The credit policy of the company is good and flexible 1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

10. Service and maintenance of the Colour Machine is effectively done on time as informed by you 1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

11. The Claim settlement system of company is efficient 1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

48

C. OVERALL
12. Market Profitability in Kansai Nerolac Products is one of the major factor draws Dealers Interest 1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

13. Completion of Targets are appreciated by the Company in various ways 1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

14. Company has a efficient mechanism to handle the feedback and grievances 1
Strongly Disagree

2
Disagree

3
Average

4
Agree

5
Strongly Agree

15. What do you think can improve Retail Share of Kansai Nerolac as compare to its Competitors?

49

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