Group

MBA 24B

Muhammad Kamran Haider International Islamic University Islamabad Submitted To: Sir Naveed Altaf
2

Contact#03137192323

Contents
Sr No: 1. 2. 3 Description ICI COMPANY PROFILE HISTORY ICI PAINTS PRODUCT OF ICI PAINTS ICI PRODUCT LINE PLACEMENT OF ICI PRODUCTS PROMOTION OF ICI PRODUCTS PRICING OF ICI PRODUCT COMPETITORS COMPETITOR ANALYSIS Page No 4 4 5 6 7 9 10 11 12 12

4. 5. 6. 7. 8. 9. 10.

11.

CONDITIONS

13

ICI Pakistan Limited

COMPANY PROFILE
ICI Pakistan Limited (Imperial Chemical Industries) is located in Karachi, Pakistan. The Company was subsidiary of ICI Plc United Kingdom but with worldwide takeover of ICI PLC by AKZO NOBEL now AKZO NOBEL is 75.81% stake holder of ICI PAKISTAN. It was set up as a public limited company in Pakistan in 1952. The ICI Group is a renowned international business. It employs approximately60, 000 people in more than countries. The vision of ICI is to be the leader in formulation science. It has, and continues to develop, a portfolio of businesses that are major players within their respective industries, bringing together outstanding knowledge of customer needs with leading edge technology platforms to provide superior products to its customers. Through these attributes, it aims to create superior value for ICI customers and shareholders, without compromising its commitment to safety, health, environment and the communities in which it operates. ICI Pakistan Limited is involved in various businesses including: Polyester fibers Soda ash Paints Chemicals

pharmaceuticals

History
1944

The khewra soda ash Company, a predecessor of ICI Pakistan Limited, set up a soda ash manufacturing facility in Khewra with a capacity of 18,000 tones per annum. This facility was sited next to the salt range as rock salt and limestone, two key raw materials needed for manufacturing soda ash, were available here in abundance.

1953

The Khewra Soda Ash Company was incorporated as a public limited company.

1966
The Khewra Soda Ash Company changed its name to ICI Pakistan Manufacturers Limited. Over the next few decades, major changes took place in the company as our Specialty chemicals and Polyester plants were commissioned, and Imperial Chemical Industries (Pakistan) Private Limited and Paintex Limited both merged into ICI Pakistan Manufacturers Limited

1987

The company has changed their name to ICI Pakistan Limited The company launch the business as well as the Dulux range of coatings. The company has established ICI Pakistan Power Gen and set up the ICI Pakistan Foundation as a charitable trust The company has set up a USD 490 million PTA manufacturing facility at Port Qasim, near Karachi.

1995

1998 PTA manufacturing facility commissioned 2000

The business was de-merged to form Pakistan PTA Limited, which was at the time a subsidiary of ICI Plc UK. We completed 50 years of continuous listing on the Karachi Stock Exchange The company formally became part of the Akzo Nobel Group, bringing us under the banner of one of the Largest coatings and chemicals companies in the world
5

2007

2008

ICI Paints
"The ICI Paints team intends to remain market leaders in the Paints Business. The company has aim to be recognized for offering the best products and excellent customer service. The company is running a high quality, profitable and growth oriented business in an exciting and safe environment." [Mission Statement] The ICI Paint business can be divided into three categories Industrial Automotive Decorative All the three business have embarked on programs which focus on the consumer and customer needs. The focus is to understand the needs of the major stakeholders. Pursuing research, market understanding and delivering high quality product and services forms the nucleus of creating a competitive advantage in the market place for the paints business. The Industry & Automotives coatings business of ICI paints besides gaining strength in the local market also aspires to become a regional player. Self leveling epoxy floor coatings have been the new addition in the product portfolio and have been well received by major customers. After the initial success of the Turn-Key project management concept with one of the leading customers where a one shop solution in terms of design, fabrication and commissioning of automotive paints is done by ICI, the business is now offering it to other customers also.

Products of ICI paints

ICI paint is dealing in the following paint products.

Decorative. Refinish and Industrial. Automotive.

ICI Product line

Dulux super gloss enamel

Dulux metallic finish enamel

Dulux matt finish enamel

Dulux synthetic enamel fan finish white

Dulux pentalite special plastic emulsion (Acrlast ylic Based)

Dulux pentalite natural white special emulsion with added fragrance (Acrylic Based)

Dulux contractors plastic emulsion

Dulux weather shield (Acrylic Based)

Dulux prime-on

Dulux water repellent

Dulux synthetic clear varnish Paintex plus emulsion Maxilite Dulux red oxide anti corrosion metal primer Dulux aluminum paint dual pack .

Dulux Super Gloss Enamel

Dulux Super Gloss Enamel is a high quality solvent-based super gloss finish, suitable for use on all types of interior and exterior wood and metal surfaces. Dulux Super Gloss Enamel gives a smooth mirror like finish and has excellent durability. Generally resistant to heat up to 90 C, but some discoloration of light colors may occur at temperatures above 80 C. Resistant to the levels of atmospheric humidity present in normal interior and exterior environments and will withstand repeated washing. Not suitable for use on immersed surfaces. It can be applied through Brush, Roller or Conventional Spray and it is highly flammable.

Dulux Metallic Finish Enamel

Dulux Metallic Finish is a high quality solvent based super gloss finish, suitable for use on all types of interior and exterior wood and metal surfaces. Dulux metallic Finish gives a smooth finish and excellent durability. Generally resistant to heat up to 90 C, but some discoloration of light colors may occur at temperatures above 80C Resistant to the levels of atmospheric humidity present in normal interior and exterior environments and will withstand repeated washing. Not suitable for use on immersed surfaces. Spray is the only way to apply and it is highly flammable.

Dulux Matt Finish Enamel

Dulux Matt Finish Enamel is a high quality solvent-based matt finish, suitable for use on all types of interior wood, metal and masonry surfaces. Dulux Matt Finish Enamel has excellent resistance to steam and moisture, which makes it ideal for use in Kitchens and Bathrooms. Generally resistant to heat up to 90 C, but some discoloration of light colors may occur at temperatures above80 C .Resistant to the levels of atmospheric humidity present in normal interior and exterior environments and will withstand repeated washing. Not suitable for use on immersed surfaces. It can be applied through Brush, Roller or Conventional Spray and it is highly flammable.

Placement of ICI Paints

Place includes company activities that make the product available to target consumers. Placement is the process in which the final good or service is made available to the end Customer .The channels used for this purpose are known as Marketing Channels. Marketing channels are defined as set of independent organization involved in the process of making a product or service available for the use or consumption by the consumer or business user. The overall ICI Paints products are manufactured in ICI Paints Lahore. For all Pakistan stocks Dispatch is carried out from factory warehouse.

There are further 5 warehouses in the country. LAHORE ISLAMBAD MULTAN KARACHI QUETTA The distribution channel includes Distributors and Dealers/ retailers. The Pakistan is divided into 3 regions. Upper PUNJAB MIDDLE PUNJAB LOWER PUNJAB Every region is headed with Regional Sales Manager and in every Region there are further Area/ Territories. The supply activities are carried out with keeping the region and areas. One region cannot carry out supply in others region same in the case with areas/ territories. The product is only delivered to the company approved dealer or distributor. Distributor can sale to the customer which is not approved dealers of the company. Main consumption of paint is on dealer/retailers counter. The delivery is made through 2 modes Distribution Vehicles Freight On Road ( goods transportation service) By these 2 means ICI manage the distribution and placement of their products to be available for Their customers and consumers

Promotion of ICI Paints

ICI Paints is using following promotional tools: Customer satisfaction is itself a promotion tool for ICI Paints and it help to develop C2C relationship.

10

ICI Paints arranges painter parties at different places and at this event gift are given to those painters which have used a reasonable quantity of ICI paint for the period. ICI Paints has given a target to every dealer according to its capacity and market analysis. If that dealer meets that target, ICI Paint will take that dealer to some other country for recreational purpose e.g. last time ICI Paints chartered special plane for its dealers and took them Dubai. For present year ICI Paints has promised to take its dealers to Malaysia.

Just like other paints ICI has offered a token in every Bucket or Gallon of Maxilite and Paintex which are worth Rs. 220 per Bucket and Rs. 60 per Gallon. The company is promoting its product through the following modes Advertisement Public Relations Sales Promotion External Communication Events And Exhibitions T.V Advertisement on different channels

Radio Advertisement , F.M 100

Bill boards almost in every big city

Posters / Banners

Small gifts for dealers/distributors to push new product sale

11

Small gifts for painters / contractors who are labor force who apply paint

Painters party to introduce them new product

T Shirts printed with product logo on them

Caps

Key chains

The company many warehouses in different places like LAHORE ISLAMABAD KARACHI QU ETTA.

PRICING OF ICI PAINTS

As far as the pricing is concerned it is the most difficult decision because keeping all the things on one side price matters. ICI Paints is promoting different brands on different prices according to the market segmentation. Dulux is the most expensive brand in the market. The reason is that the best raw material and components are used in the manufacturing of the Dulux. Second reason is that Dulux target market is upper tier. And to some extend upper tier of middle tier. But paying more for Dulux, customer feels value.

12

If we compare the price of Dulux with other local brands, its the fact that price difference is not more than 20-100 rupees. As far as quality is concerned, by paying more customers is not worried about the quality. For the market which is middle tier, ICIs brands Paintex Emulsion and Glidden are the brands with low price and optimum quality within the tier. If we go into the comparison of Paintex and Glidden their price is lower than the other paint brands selling in the market. Glidden is purely priced to cover the buying power of middle tier. The price of the products in which ICI is having technological edge over competitors is comparatively high. The reason is that ICI is enjoying state of monopoly for that product. There is no product in the market to encounter them.

The price of Dulux Weather shield Fresh is Rs. 1050/-, others companies brands offered in the market are 300-400 Rs less than Weathersheild Fresh. Same is the case with Dulux Gloss Finish and Dulux Matt Enamel Odorless Range. The price is Rs. 300-400 more as compared to other brands. So pricing factor vary from brands to brands and target market.

COMPETITORS OF ICI PAINTS

ICI paint is the largest paint industry in Pakistan. The company is holding a position of market leader in the market. The company has highest share in oil and paint market in Pakistan. ICI paints have got the latest technology with them as compared to their competitors. Their production process is highly automated. They can offer any color as demanded by the customer. Customers can ask for any of 6134 colors. For every shade of color there is a specific formula that states about composition of constituents and their proposition. High level of automation is one of the critical success factors of ICI that differentiates then from their competitors and serves as a source of competitive advantage.

Competitor analysis
ICI is the largest paint manufacturing company in Pakistan. The company has hundreds of competitors in open market, but they have little share in total market. Mainly there are two main competitors of ICI paints i.e. Burger paints and Master Paints. Other competitors include the following:

13

Nippon paints Diamond paints Silky paints Bright paints

COMPANY ICI PAINTS BERGERS PAINTS MASTER PAINTS SILKY PAINTS

MARKET SHARE 25% 12% 3% 1%

All other companies have fewer shares as compared to the main competitors.

COMPANY ICI PAINTS BERGERS PAINTS MASTER PAINTS SILKY PAINTS

MARKET SHARE DULUX BURGER ROBBIALAC MASTER SILKY

14

CONDITIONS
1: YOUR LARGEST COMPETITORS HAS REDUCED ALL ITS PRICES BY 15% ICI has two main competitors i.e. burger paints & master paints. Suppose that those two main rivals have reduced their prices by 15% on their paint products. There is need to analyze & judge this step taken by the ICI competitors. There may be an intention to create new customers or to target new segments in rural & urban areas in order to increase their sales, profit and to boost up their market share to capture the paint industry in Pakistan. This is a major threat to the market leader ICI paints. There is need to take corrective decisions in order to keep the company position in the market. The company can take the following steps:

The company may also decrease their prices to make tuff competition with its rivals The company may offer some products like paint brushes and other products necessarily required to paint the houses, shops e.t.c The can increase the promotion of their products by giving some incentives to its distributors, wholesalers and retailers. The company can launch new product which is not currently launched by its competitors.

15

The company can introduced new technology, it helps the company to reduce their production cost and the company is able to sell it at lower prices for better quality. The company can increase its advertisement of newly coming products, this will help them to set a great image in consumer mind in order to retain their customers. The company can introduced their products in the segments or areas, in which the company products are not launched before. The company can improve their customer services or environment and customers relation relations for the delivery of quality product.

2: THERE IS A GENERAL ELECTION IMMINENT. POLITICAL PUNDITS ARE FORESEEING A NEW GOVERNMENT IN POWER WHICH HAS PROMISED PROTECTION FOR LOCAL BUSINESS IN ITS ELECTION MANIFESO. 3: INTERNATIONAL OIL PRICES ARE EXPECTED TO RISE AGAIN THIS YEAR IN THE WAKE OF RENEWED POLITICAL CRISES IN A MAJOR OPEC COUNTRY. The ICI paint company is paint manufacturing company. The company production is directly linked with oil. The change in the prices of oil will affect the paint industry as a whole. There are different chemicals used in the manufacturing of paints. The high prices of raw material in inflationary conditions will affect the production of paint industry and increase the prices of paints.

4: HEAVY RAINS AND FLOODING HAS INUNDATED A LARGE MASS OF THE COUNTRYS AGRICULTURAL HEARTLAND. ICI Paint Company is paint manufacturing company. The company has no direct relation with agricultural land. Thats why heavy rains and floods can not affect the working of company. But it can create problems in transportation of raw materials, and final products to the manufacturing units and sales stores. But this situation can create an opportunity for the paint manufacturing companies to target new segments and to maximize profits. This will also help them to promote their paint products through welfare of people in flood affecting areas. This will create a positive image for the company in people mind. Their will create another situation due to flood and heavy rains. Suppose heavy rains and floods have destroyed thousands of houses, hotels and shops. This ultimately affects the economy of the country which is also facing inflationary conditions due to high prices and political instability. The flood victims need food, shelter for a short period until their new homes and reconstruction process is not start. The company can help and take part in the welfare and rehabilitation of people. The next stage is rebuilding of homes, hotels and shops. This will increase the demand for paint products. The company can use the first mover strategy to introduce their products in

16

the new segments or areas. The company can distribute free samples of paints to market their products. This will help them to increase their customers and market share in future. The company can also decrease the prices of paint products in flood victim areas.

****************************

17