Internship Report Final (Amna Farooqui)
Internship Report Final (Amna Farooqui)
Internship Report Final (Amna Farooqui)
University of Education
Township Campus, Lahore
Department of Economics and Business Administration
Internship Report
Submitted By:
15-BBA HONS 703 (M)
AMNA AMEEN FAROOQUI
2015-2019
19-09-2019
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Nippon Paint (Pvt) Ltd.
University of Education
Township Campus, Lahore
Department of Economics and Business Administration
LETTER OF UNDERTAKING
This internship report was submitted by AMNA AMEEN FAROOQUI D/o. AMEEN
UDDIN AHMED FAROOQUI Roll No. 15-BBA 703 (M) for the partial fulfilment of the
Principal ________________________
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Nippon Paint (Pvt) Ltd.
Dedication
I devote this endeavour to my beloved parents, teachers and friends for helping me with
wonderful support and assistance. I could never have completed this report without their
inspiration and encouragement.
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Nippon Paint (Pvt) Ltd.
Acknowledgement
The internship opportunity I had with Nippon Paint was a great chance for learning and
provided with an opportunity to be a part of it. I am also grateful for having a chance to meet
so many wonderful people and professionals who led me though this internship period.
First of all, I thank Allah Almighty who gave me this opportunity. Secondly, I want to
express my deepest thanks to Afaq Wajid, Trade marketing executive for taking part in
useful decision & giving necessary advices and guidance and arranged all facilities to make
life easier. I choose this moment to acknowledge his contribution gratefully. Lastly, I am very
grateful to entire Nippon Paints Marketing Personnel, who backed me in and guided me in
routine operations at every stage. I am also very thankful to my Supervisor, Amna Fayyaz
for her guidance and help in preparation of report about Nippon Paints.
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Nippon Paint (Pvt) Ltd.
Table of Contents
Dedication............................................................................................................................................3
Acknowledgement................................................................................................................................4
Executive Summary.............................................................................................................................7
Brief introduction to the Industry......................................................................................................8
Overview of the Organization.............................................................................................................9
History...............................................................................................................................................9
VISION...........................................................................................................................................10
Mission............................................................................................................................................10
Introduction of the Organization.....................................................................................................11
Corporate Objective.........................................................................................................................12
Market Standing..............................................................................................................................12
Policy of the Organization...............................................................................................................13
Competitors.....................................................................................................................................14
Business Volume.............................................................................................................................14
Product line.....................................................................................................................................15
Products and Colors.....................................................................................................................15
Organizational Structure..................................................................................................................19
Introduction to all the departments.................................................................................................21
Structure of Specialization Department of Marketing...................................................................25
Training Program..............................................................................................................................27
Marketing Functions.........................................................................................................................31
Product............................................................................................................................................31
Price.................................................................................................................................................31
Place................................................................................................................................................32
Promotion........................................................................................................................................32
Human Resource Management........................................................................................................32
Recruitment & Selection Policies....................................................................................................33
Recruiting Applicants..................................................................................................................33
Selection Process.........................................................................................................................34
Promotion Policies.......................................................................................................................35
Transfer Policies..........................................................................................................................35
Training and Development..............................................................................................................36
Job Evaluation and Analysis........................................................................................................36
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Nippon Paint (Pvt) Ltd.
Performance Management...............................................................................................................37
Merit Rating/ Performance Appraisal..........................................................................................37
Pay Scales....................................................................................................................................37
Disciplinary Program...................................................................................................................37
Compensation policy.......................................................................................................................38
Bonuses and Incentives................................................................................................................39
Allowances..................................................................................................................................39
Financial Analysis:............................................................................................................................41
Liquidity ratio..................................................................................................................................41
Assets management ratios................................................................................................................41
Debt Management Ratios................................................................................................................43
Profitability ratios............................................................................................................................44
Market value ratios......................................................................................................................45
Critical Analysis.................................................................................................................................46
Marketing Specialization..................................................................................................................46
Analysis of micro-environment.......................................................................................................46
Analysis of macro environment.......................................................................................................48
Industry analysis..............................................................................................................................49
Forecasting demand.........................................................................................................................51
Customer analysis:...........................................................................................................................52
Competitor analysis.........................................................................................................................56
STP Analysis...................................................................................................................................58
Segmentation...............................................................................................................................58
Targeting:....................................................................................................................................59
Positioning:..................................................................................................................................59
Marketing Strategies........................................................................................................................60
SWOT Analysis..................................................................................................................................63
Strengths..........................................................................................................................................63
Weakness.........................................................................................................................................64
Opportunities...................................................................................................................................64
Threats.............................................................................................................................................65
Conclusion..........................................................................................................................................65
Recommendation...............................................................................................................................66
References & Sources........................................................................................................................67
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Nippon Paint (Pvt) Ltd.
Executive Summary
This report represents the details of my Internship program at Nippon Paints Company
Pakistan which is Asia’s No 1 paints company in Pakistan. The basic purpose of this report is
to describe my experience and learning at Nippon Paints where I did my Internship for a
period of 6 weeks with the official working hours starting from 9am to 5:30pm. During the
internship, I straddled in the department of Marketing along with the field work associated
with the department, under Assistant Manager and Trade Executives. I have made it possible
to write each and every thing that I have learnt there. I have all my practical efforts in the
form of this document that’s the asset for my future career.
During my internship tenure, I gathered all the necessary information about Nippon Paints
with best practical experience. Efforts have been made to compile this report in such a way
that activates its salient features not only for students but also for the layman. The report is
started with the introduction of the Paint industry, followed by the profile, goals and
functions of Nippon Paints. Moving forward to the important section of the report, that is the
Department overview, Fiancial Analysis, SWOT Analysis of Nippon Paints. Then, I have
recommended the suggestions to the problems I have analysed during my stay at Nippon
Paints.
In a nut shell, this reprt is designed to explain all the details about management and
marketing practices of Nippon Paints Company of Pakistan and to raise reader’s
consciousness about the paints industry working in Pakistan.
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Definition of “Paint”
The general definition of paint is that, paint is a mixture of chemicals which creates color,
increases beauty and protects from fading away when it is implemented on a surface. The
functional definition of paint is that, paint can be described as any fluid material that can be
spread over a solid surface and dried or harden to an adherent, coherent, colored skin or film.
Types of paints:
Paint can be divided into various types by considering different aspects.
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Nippon Paint (Pvt) Ltd.
better position to compete in the local market. According to the latest findings of Federal
Bureau of Statistics, around 30,000,000 litres of paint was produced from 87 units. Pakistan
Paint Manufacturers Association (PPMA) represents the organized units in the paint sector. .
The paint industry uses about 300 different types of raw materials for producing various
kinds of paints. About 15 percent raw materials of the industry are petroleum-based. In 1971,
between 80 to 90 percent requirements of the raw materials were met through imports, which
currently have been reduced to about 40 percent due to increased production of indigenous
raw materials. The major raw materials produced locally include Mineral Turpentine, Resins,
Vegetable Resins and Gums, whereas raw materials such as Pigments, Zinc Oxide, Titanium
Oxide and Lithopone are imported. Paint is categorized in two broad classes; namely water
based paint and solvent based paint. The industries produce a wide range of finished and
intermediate products which include pigments, distempers, plastic emulsion, enamel,
undercoat, primers, rubber paint, aircraft paint, marine paint, anticorrosive paint, anti fouling
paint, etc.
Nippon Paint was first founded in Japan as Komyosha in 1881 by the two brothers Haruta
Jujiro Moteki. Together with their own chief engineer Heikichi Nakagawa, they began their
business with projects for the Japanese national navy and soon progressed to the production
of viscous paints. In 1896, it moved all its production activities to a newly build factory in the
Tokyo. Two years later, Nippon Paint was Japan's first true diversity paints developed
company. Nippon Paint's presence quickly spread crossways Japan. In 1914, having protected
the family bazaar , the company extended into China, India and the South Pacific asia.
After creation inroads into Taiwan and North China, Nippon Paint established the Pan into
Malaysian Paint Industries in the year 1963 – today it is known as Nippon Paint Singapore. In
1967, four years later on, Nippon Paint Thailand and Malaysia were recognized. Ground-
breaking product breakthroughs have been a brand of Nippon Paint's growth through the
decades. In 1986, the superior "Photo ED" system for printed course boards was introduced.
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Nippon Paint (Pvt) Ltd.
Nippon Paint Pakistan marked its successful entry into the Pakistani market on November 5,
2007. Investing more than $25million since the establishment of its first manufacturing
facility, Nippon Paint Pakistan started off with a total manufacturing capacity of 20 million
liters per year with 325 people (single shift working employees). It was established in District
Kasur near Lahore in May 2010 and covered a total land area of 12.02 acres. Authorized
dealers are equipped with the Nippon Paint Colour Creations Tinting System, a state-of-the-
art computerized paint system catering to the desires of the most diverse clientele, offering
them to choose from a palette of thousands of colours. The distribution currently spreads
from the far South, Karachi and Gawadar, to the hilly areas of Mingora and ahead.
Nippon Paint Pakistan currently has more than 500 outlets nationwide and continues to grow.
VISION
“We aim to build upon the strength of current foundations to meet the demands of the
new millennium everywhere across the globe.”
We seek to live in harmony with nature and society, playing our part as responsible citizens
by enhancing and beautifying our surroundings, protecting nature and encouraging the
personal growth of our people.
We seek to develop innovative and technologically advanced paint products that will enhance
beauty and protect our surroundings.
We will create a workplace that maximizes the potential of each person, that creates mutual
interdependency and trust, and that installs collective pride and identity.
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Nippon Paint (Pvt) Ltd.
Mission
“To be the partner of first choice for customers and suppliers, ensuring sustained leadership
position in the markets where we compete, delivering long-term business value through a
high performance culture, innovation, ethics and responsible care.”
Nippon Paint (Pakistan Pvt) Limited distinct the winning entry into Pakistan with their first
sales being going out on the 5th of November 2007. Head Quartered in Japan, Nippon Paint
is the major paint producer in Asia. The company is going to invest $25 million in Pakistan
in next three to five years, which will include a manufacturing facility in the District of
Kasur, near Lahore. Currently, Nippon Paint Pakistan is doing business with more than 200
outlets on a national scale of which 1 15are equipped with the Nippon Paints latest Color
Creations Tinting Systems. We aim to have more than 250 Color Creations Outlets by the end
of the year 2012. The allocation network is at present spread from the far South, Karachi and
Gwadarss to the hilly areas of Mingora and continues to spread. All certified dealers are
prepared with Nippon Paint Color Creations™ which is an innovative computerized paint
system which allows the consumer to choose from thousands of colors and the selected color
is made available within minutes. With Nippon Paint Color Creations™, patrons no longer
are incomplete by the choices of colors as they can decide from our range of thousands of
colors, and the paint will be assorted exact before their eyes. Nippon Paint Color Creations™
is set to change the Pakistan paint marketplace. Nippon Paint has particularly formulated
products for the Pakistan market. The special formulation is the consequence of Nippon
Paint's R &D for products to suit the substrate surfaces uncharacteristic to Pakistan. At the
same time, at the bottom of products such as wall sealers, primers and wall putty are also
obtainable. Nippon Paint Pakistan's plant will be equipped throughout the last section of
2009, and will originally make use of about 300 people. Production from the stand will be for
local utilization and perhaps for export to adjoining countries. In the temporary epoch,
Nippon Paint Pakistan is importing from its Malaysian plant to meet the present local
marketplace order for its products.
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Nippon Paint (Pvt) Ltd.
Nippon Paint is the main paint maker in Asia and a most important name in paint
international. It is add up to one in Japan, China, and Indonesia, Singapore and Malaysia and
is a key player in Thailand, Vietnam, Taiwan, Korea, Hong Kong, Philippines and India. All
through these countries, Nippon Paint is known for its devotion to high class, pioneering
products and first-rate client service.
Corporate Objective
Market Standing
Paints in Pakistan can be broadly classified into three categories;
Decorative
Industrial
Automotive.
Pakistan’s paint industry is valued between Rs 33 and 38 billion. The industry is divided into
two segments; the organised one, accounting for 30 to 40% of the market, and the
unorganised segment that takes in the rest. In the organised sector, major players include the
multinationals (AkzoNobel Pakistan, Berger, Jotun, Kansai, Nippon) and local companies
(Brighto,Diamond, Happilac, Master and Nelson).
Most of the major multinational companies operate in the areas of decorative paints,
industrial paints, powder coating, automotive paints and construction chemicals and coatings
producers are Akzo Nobel, Kansai Paint, Nippon Paint, Berger, Gobis.
In the organised segment, the share of decorative paints is about 60 to 75%. Decorative paints
are either oil-based or water-based. They are further segmented into emulsions, enamels,
distempers and deco paints for surface preparation and
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Nippon Paint (Pvt) Ltd.
include wall putty, primers, special effect paints for interior and exterior use and wood
polishing systems.
environment-friendly products,
introducing new finishes and
textures along with an endless choice of shades.
In terms of marketing, there has been a shift in focus, from painters or dealers to the end-
consumer.
Value Creation
To create the best value proposition and competitive advantage, in order to instill
sustainability and corporate citizenship.
Partnership
To work with our partners towards mutual benefits and drive business ethics that create win-
win situations for both.
Innovation
To challenge the technological status quo by asking ‘what if?’, ‘why’, and ‘why not?’ while
developing out-of-the-box and kaleidoscopic thinking.
Teamwork
To work together in creating a safe, productive and peaceful workplace, we strongly believe
and instill that working in unison can propel us to limitless heights.
Entrepreneurship
To develop a strong sense of achievement in all that has been achieved and done. We
constantly seek out opportunities to improve the stature of our organization by daring to
change what we think is not right.
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Nippon Paint (Pvt) Ltd.
Integrity
To develop a work environment in which our employees are free to voice their opinions,
respect diversity and take ownership of their mistakes.
Customer-oriented
We shall meet customer expectations by providing them with the best solutions through the Group's
joint forces and all-out efforts.
Creativity
We shall create new values with wisdom, foresight and highly flexible ideas.
Challenge
We shall establish the highest possible goals and make every effort to achieve the highest levels of
standards in the world.
Collaboration
We shall cultivate a corporate culture of freedom and generosity through positive communication
and cooperation by acknowledging the diversity of human characteristics.
Competitors
Major Competitors
Others
Diamond
Dupont Akzonobel
Gobis
Begrger
Nippon’s paint Pakistan is facing strong competition in Pakistan. Their major competitors
Akzonobel, Berger , Gobis, DuPont, Diamond paint, Master paint and others. Because of
these competitors, Nippon’s paint Pakistan is facing a serious problem in order to attract new
customers and retain their existing customer. The multinational with their unlimited resources
and diversified strategies are giving Nippon paints a tough time. On the other hand the
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Nippon Paint (Pvt) Ltd.
substantial increase of small manufacturers of paints is also affecting the prosperity of the
company because the mushrooms are doing business under the fixed tax structure but their
level of operating activities is very high as a result they have to bear low cost of production
and consequently their prices are very low. In order to meet the competitors, Nippon’s paint
Pakistan has to spent more money on advertising, promotional activities and area coverage
for their customer satisfaction.
Business Volume
Sponsor of Nippon paint is itself Nippon paint Japan which is parent company .Nippon paint
Japan invest $25 Million to start Nippon paint operation in Pakistan and has planned to invest
more in the Pakistani market .Nippon paint Japan is operating in approximately 57 countries
and it is in the top ten paint companies in Asia and have enough resources to start its
operation in any country like Pakistan and don’t need any external financing as yet.
Product line
Interior Wall Coatings
Wood Paints
Protective Coatings
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Nippon Paint (Pvt) Ltd.
Undercoats
Special
Products
Shades)
Shades)
Nippon Weatherbond
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Nippon EasyWash
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Nippon Paint (Pvt) Ltd.
Nippon Q-Lac Gloss Enamel
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Nippon Paint (Pvt) Ltd.
Nippon Coloured Undercoat
Nippon Tilelac
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Nippon Bituminous Solution
Organizational Structure
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Nippon Paint (Pvt) Ltd.
Number of Employees
The Nippon Paint Pakistan family comprises over 1500 skilled individuals and many others
who are indirectly connected with the head office in Lahore and branches across the nation.
All dedicated to excellence and are keen to provide our clients with sustainable alternatives.
The distribution currently spreads from the far South, Karachi and Gawadar, to the hilly areas
of Mingora and ahead. Nippon Paint Pakistan currently has more than 500 outlets nationwide
and continues to grow.
Main offices
Nippon Paints main Head office is located in Lahore.Regional offices are located in Karachi,
Islamabad, Multan, Faislabad, Sialkot and Sargodha and other cities of the country.
The most dominant and big department in Nippon Paints Limited is accounts and finance
department. The main function of accounts and finance department is to have a check and
balance over the financial records and business activities. Other staff members include in the
accounting and finance department.
I.T. Department:
The information technology department is the most important and the best working
department of the Nippon Paint Limited, which is the more organized and systematic
department.
The department is basically adjacent with the accounts department and helps the higher
management in generating different reports and documents.
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Nippon Paint (Pvt) Ltd.
The key department for any organization is its sales & marketing department and it serves as
the ears and eyes of the organization. They perform the key role to the growth of company
market share.
The products of Nippon Paint Limited are of high quality and it is the first consideration of
the organization. Quality is the key to success for Nippon Paint Limited; this thing is kept in
mind during all the production processes. I have observed that it is tried that the product,
which is under manufacturing process, should be complete in all aspects when it will reach in
customer’s hands. For this reason checking and testing is done at all levels.
First raw material is tested. If it is good enough then it is put into the process and during
process all the things like viscosity, weight per litter, thickness, glossiness, and other
specifications are checked to match with old retained samples. If any discrepancies are found,
technically chemists and research laboratories resolve these.
Documentation Procedures:
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Nippon Paint (Pvt) Ltd.
The production process in Nippon Paint Limited is initiated whenever the production
department receives an order from Sales Department or Commercial Department. If the
required raw material for the production of specific paint is available in the factory store then
the production is started and the production manager in which the name & specifications of
products manufactured, type & quantity of raw material used prepares job card sheet. Dates
of starting & completion, packing standards, weight per liter of paint and loss percentage is
described.
If the raw material is not available in the store then the production manager make an indent
note and send to Accounts department for the procurement of raw material. Here the problem
occurs because of the fact that the procurement of raw material takes time and during that
time all the labor sits idle and it results in wastage of time and resources. As no formal
forecasting of sales is done and the procurement of raw material is based on personal
judgment so these types of problems are the matter of routine. If raw material is present in
bonded warehouse or bank go down, the production manager fills in ‘raw material
requisition’ form and sends it to accounts department, which arranges for the clearance of
material and then is issued to the production. In order to keep the record of incoming raw
material, a material movement Challan is prepared in which the entry of raw material is made
in terms of name of raw material, packing, and quantity.
After the completion of paint production and its packaging a daily packaging report is always
prepared by the production managers. Production department is semi-computerized and get
the information and reports by computer and also the store people prepare reports by their
own.
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Nippon Paint (Pvt) Ltd.
According to Nippon people, in Pakistan there are only five companies in Pakistan which are
paint manufacturers and the others are just blenders. They blend the ingredients together and
make paint but do not know what is happening inside it. Here it is not the aim to discuss the
technicalities of paint but to have a look on steps in the process of paint manufacturing. The
general manufacturing & operation process of paint can be divided into following categories
of functions.
Mixing
Stirring
Gumping
Thinning
Quality Assurance
Packing
Dispatch & Delivery
1- Pigment
2- Additives
3- Thinner
4- Extender
5- Color Solutions
The raw material of paint factory has a wide range of above mentioned products. There are
about 190 items of raw material. Some important raw material used in Nippon Paint Limited
is as follows
· Titanium Dioxide
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Nippon Paint (Pvt) Ltd.
· Yellow oxide
· Chrome Pigment
· Chalk
· Soap Stone
· Mica
The hierarchy goes with the head of the department Ma’am Mariam Naeem. She is a highly
cooperative boss and has a direct interaction and communication with the employees of the
department. There are two assistant brand managers Ma’am Amna Fayyaz and Ma’am Sofia
Competition analysis
Complaints
media buying
Monthly reports
Price list
Product analysis
Point system.
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Nippon Paint (Pvt) Ltd.
Whereas there is a trade marketing team with two trade marketing executives Sir Afaq
Architects
Moisture meter.
Spotless
Perfect Emulsion
SatinGlo
Easy wash.
Easy coat
Palteon
Qlac
Hydrogloss.
Momento
Wood range
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Nippon Paint (Pvt) Ltd.
Another main pillar of the marketing team is senior marketing executive Mr. Awais Arshad.
He looks forward
Promotional materials
Marketing budget
Shop boards
Taxes
Store management
Painters gathering
Painter schedule
Stall activities.
Lastly, another main member the graphic designer Mr. Nabeel, who does all the graphical
representation, the website and social media is also upon his responsibility.
Training Program
Nippon Paint Pakistan is a symbol of quality paints. ISO is something that is minimum
quality level for the business to maintain. There are some quality personnel working in
Nippon Paint Pakistan and I learned a lot for them. I am really thankful to Nippon Paint
Pakistan’s Staff for their kind support and guidance. During my time of internship at Nippon
Paints I performed many activities that were assigned to me. I was supposed to understand
the rules, culture, values and norms of the company and the whole procedure by which the
Paints are manufactured and distributed in different regions of Pakistan. That experience that
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Nippon Paint (Pvt) Ltd.
I got from here will help me throughout career. I had a very good experience working with
the multinational corporation and learnt a lot of things about the ongoing market situations.
The marketing team is doing a great job. I have learnt many things but the main thing I have
learnt about is the importance of customer feedback and the way to handle complaints. I had
a visit to the factory and saw how labor class helps a corporation to perform in a good way. I
also had a discussion with the technical team about handling the complaints about the
products. Logistic team also performs a very major role because without their help delivery is
not possible. Overall, I learnt a lot that will help me in making my future even brighter.
In short, the training program at NIPPON Paints was a wonderful and lifetime experience.
Everyone dealt with us politely, solved all the ambiguities and guided very clearly and
efficiently. I learnt a lot from this about the corporate sector and how the business activities
Date wise detail of work done at Nippon Paint Pakistan during my internship is as follows:
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Nippon Paint (Pvt) Ltd.
6/08/2019 Tuesday Discussion with assistant brand manager
7/08/2019 Wednesday Reviewing Shades Cards of all the products range
Arranged in order the top selling shades from shade
8/08/2019 Thursday
card
9/08/2019 Friday Updating daily Scanning report of the painters work
10/08/2019 Saturday -
11/08/2019 Sunday Holiday
12/08/2019 Monday Eid Ul Azha Holiday
13/08/2019 Tuesday Eid Ul Azha Holiday
14/08/2019 Wednesday Eid Ul Azha Holiday
15/08/2019 Thursday Eid Ul Azha Holiday
16/08/2019 Friday UQ Exams preparations
17/08/2019 Saturday UQ Exams preparations
18/08/2019 Sunday UQ Exams preparations
19/08/2019 Monday UQ Exams preparations
20/08/2019 Tuesday UQ Exams preparations
21/08/2019 Wednesday UQ Exams
22/08/2019 Thursday UQ Exams
23/08/2019 Friday UQ Exams
24/08/2019 Saturday -
25/08/2019 Sunday Holiday
26/08/2019 Monday Updating daily Scanning report of the painters work
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Marketing Functions
Marketing activities comes in many forms. One traditional depiction of marketing activities is
in terms of the marketing mix, which has been defined as the set of tools the firm uses to pursue its
marketing objectives. Mc Carthy classified these tools into four broad groups, which he called the
four Ps of marketing.
Product
“A product is anything that can be offered to a market to satisfy a want or need of a
customer at profit”.
Any product can be classified into either a consumer product or a business product.
Consumer product is the one that is bought and consumed by a final consumer. While a
business product is the one that is bought for the purposes of reselling or for business use.
Nippon’s product comes under the definition of consumer product as an individual buys the
product and he/she uses it. . Nippon’s product is the paint that it sells in the market. Nippon
Paint Pakistan is committed to provide high quality broad range of product at reasonable
price as compared to competitors for their prestigious customer. In this regard Nippon’s paint
is using the strategy of pricing is more for less meaning that it is providing quality product at
low price, comparatively to the competitors in the market.
Price
“Amount of money needed to purchase something”.
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Nippon Paint (Pvt) Ltd.
Nippon’s paint Pakistan is committed to provide high quality and broad range of product at
reasonable and affordable price for their prestigious customer In this regard Nippon’s paint is
using the strategy of pricing is more for less. Its mean its providing quality product at low
price comparatively to their competitors in the market.
Place
Nippon’s paint is also using vertical marketing system in the placement if its products. Here
comes the old concept of dealership. That means, giving right to a third party to sell the
product on their behalf.
Promotion
“Promotion means an activity that communicates the merits of the product and
persuades target customers to buy it”. Good Promotion always plays an important role in the
success of any product. A good product can be fail if not properly promoted. Nippon is taking
big steps to promote its product by maintaining good relationship with the community of
Pakistan. The basic aim at the behind of these steps is to promote their own product through a
moral way.
Currently Nippon’s paint is using only a few tools of promotions to deliver the message to
general public and their potential customer. Advertise their product through news papers TV
channels and through holding board in major areas of the country.
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Nippon Paint (Pvt) Ltd.
Human Resource Management
Acquiring new employees can be a costly and difficult undertaking. It involves the following
four steps:
Recruitment and Selection process begin in Nippon Paints only after the HR Planning has
been made. These plans include both a consideration of the organization‘s needs for people
and the supply of possible people to hire. At Nippon, in order to initiate the procedure of
Hiring, there are 3 requirements, which must be met:
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Nippon Paint (Pvt) Ltd.
Employee Requisition by the Authority or Concern Department:
Whenever there is a vacant position in a department or unit, the departmental head raises an
employee requisition to the Human Resources Division.
Standard of the Quality of the Personnel (Job Description & Job Specification):
The second step is to generate a Man Profile based on the Job Profile provided by the
relevant department. It includes the type of the job, the involved functions, and most
importantly the required qualifications (both educational & professional) to perform the job.
When the above mentioned steps are completed the HR department takes initiative to arrange
for the proper recruitment procedure.
Recruiting Applicants
To be able to hire good people, an organization must have a large number of job applicants
because there are many available people who are easily attracted. For jobs in which there is
an undersupply of people, an organization must expend considerable effort to attract the right
people to fill its job vacancies. Several methods can be used to recruit applicants for a vacant
position. For Recruitment and Selection both sources are examined:
Internal Source:
This includes current employees (promote able/ transferable), Employee Referral etc.
External Source:
This comprises of the whole labor market outside the organization. After selecting the source,
HRD decides on the appropriate media like, Newspaper, Internet, Notice Board, Agents for
publishing the advertisement for Recruitment. In Nippon Paints recently almost all the career
opportunities are exposed through web site/internet. Very few ads are published in the
leading newspapers. And some specific job opportunities (mostly contractual) are circulated
in related educational / professional institutes.
Selection Process
Screening:
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Nippon Paint (Pvt) Ltd.
Initial Screening of resumes is conducted to match the requirements of the job with the
applicant profiles. Sometimes there are preliminary interviews according to the nature of job.
Employment Interview:
In most of the cases Written Tests are carried out for entry-level jobs.
VIVA:
A Viva is conducted after passing the Written Test, if any. 1 / 2 Interviewers from the related
departments along with HR personnel usually conduct the interview session.
Depending on the performance of the final interview, few applicants are offered the
respective job.
Physical Examination:
If the individual(s) accept(s) the offer, they are sent for a medical examination. This is
mandatory for all.
Appointment:
If they are found medically fit and eligible, Appointment /Employment Letter are handed
over.
Induction/Orientation:
The Induction to the new employee takes place after joining. The duration of orientation
program can be for minimum 1 (one) day to maximum 30 (thirty) days depending on the
nature of Job.
Promotion Policies
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Nippon Paint (Pvt) Ltd.
Human Resources Department (HRD) of Berger Paints Bangladesh Ltd. always cares about
the motivational tool-Promotion for its personnel. Promotion Policies of the Company are as
follows:
2. Bases on the selected criteria for the respective personnel, HRD proposes to the Top
Management for approval for Promotion, if any.
3. Nippon Paints believes in ―Ability and Seniority‖ both for giving Promotion to the
employees.
Transfer Policies
The company may transfer any employee to other Department or to other Offices, Factories
or Depots located in different places in the country at its full discretion according to the
situational demand of the Company.
The Human Resources Training section begin its function of providing whatever Training
and Orientation the employees might need in order to make certain that they are well
equipped to perform their duties as per desired level of the Company. After conducting
Training Needs Assessment (TNA) or getting the summary of needs from Annual Appraisal
(PPAD), HRD arrange Training for the respective employees. Training may be different
types according to the needs:
1. On-the-Job
2. Off-the-Job
It may be Tailor made Training or Local or International Training according to the needs and
demand of the situation. Nippon Paints Pakistan believes in investment of people.
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Nippon Paint (Pvt) Ltd.
Job Evaluation and Analysis
The Company conducts Job Evaluation & Job Analysis Program as a means of controlling
Wage & Salaries, Equity of Pay, Hiring Decisions, and Appraisal Functions; to have better
Knowledge and control of the employees and to ensure competitiveness in Wage & Salaries.
For Appraising and Grading the Job, Berger Paints Bangladesh Ltd. practices the
following procedures:
a. Observe Survey Result, Company Chart, Questionnaire (if used), Compiled Job
Descriptions (to account for each job being performed in the company), and chosen
Wage & Salary Plan- the Company determine the value or weight on each Job
Descriptions.
b. When Jobs are Evaluated, Written, Scored & Approved, they must then be
maintained on a periodic basis.
Performance Management
Pay Scales
Nippon Paints is a Private Limited Company. As there is no Government prescribed Pay
Scale for the Private Company, Nippon paints has its own Pay Scale. There are 16 Grades
found on that Pay Scales from Worker to The Managing Director But according to the
Management of Nippon Paints Pakistan Ltd. it is completely restricted and prohibited to
express their Pay Scale to others in any form. So, it is not possible to attach the Pay Scale of
Nippon Paints Pakistan Ltd. with this report. But the Management informed that their Pay
Scale is Competitive, Consistent and Commensurate with other similar companies of the
country.
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Nippon Paint (Pvt) Ltd.
Disciplinary Program
The objective of the Disciplinary Program is to make conscious and to motivate the employee
to the extent possible to improve performance and not to indulge in any activity detrimental
to the Company. Whenever Disciplinary action is required, it is important that the penalty fit
the offence (after assuring that there was in fact an offence) and that the Labour Code be
followed with regard to all Disciplinary actions.
The People has been the key success factor that has allowed Nippon Paints of Pakistan
Limited to achieve so much in a short span of time. Thus Management of Nippon Paints
strives to hire, engage and retain talented employees. Human Resources Strategy of Nippon
Paints constantly grows and renews its commitment to meet the career aspiration and
priorities of the employees. Nippon Paints Limited views their employees‘ as most valuable
capital of the organization and is endowed with unique qualities and if thoughtfully and
inspiringly led the workforce can bring superior result with creativity. The management of
Nippon Paints carefully identifies potential future leaders amongst its employees and takes
extra ordinary effort to build them.
As a successful and growing company, Nippon Paints provides a lot of facilities to their
employees to motivate them to work.
Compensation policy
Cost Effectiveness:
In cost effectiveness the Nippon Paints tries to minimize the costs behind the employees. It
means the employees will be paid in a good margin, but it will also be cost effective for the
organization. Otherwise, if the salaries are paid without any sorts of judgment or study, then
it will be expensive for the organization. Such sort of careful decisions about pay levels are
made for those positions where the employees will get same or lesser salaries in other job
places if they switch their jobs.
Skill-Based Compensation:
In skill based compensation the organization pays for the level of skill of the employees.
These positions are very important for the Nippon Paints. There are shortages of skillful
37
Nippon Paint (Pvt) Ltd.
people in our country. So the Nippon Paints tries to hire skillful employees to serve for them
and help to achieve growth. Skillful people are like diamonds for the Nippon Paints. In this
company these people are paid in a higher range compared to the other positions of the
organization. Top level managers, production officers, technical persons are mainly labeled
as skillful people. Because the technical people help the company with their production skills,
top level managers are counted as the resource persons with vast knowledge of the production
and business sectors. Then the managers are also skilful persons who have a lot of
experiences with other companies and have good communication skills with well managerial
skills to handle all kind of employees of the company. In skill based compensation, the skills
of the people are emphasized. Their experiences, knowledge, and other useful skills are paid.
Retention payment:
In retention payment, Nippon Paints tries to hold those employees who are very much
precious for the organization and the other banks or the competitors tend to take them away
with higher lucrative salaries and bonuses. In this sort of payment Nippon Paints tries to give
more payment to this type of employees who are very well performers and have a huge
network of link in the business world to benefit the organization. The aim of this payment is
to make the employees stick with Nippon Paints. The Managers, Assistant Senior Vice
Presidents (ASVP), Assistant Vice Presidents (AVP), Vice Presidents (VP), and some other
position holders are the employees who are paid with this sort of payments.
High Salary:
Nippon Paints as a paint industry provides high salary to their employee. Their salary pay
scale in different position is more than any other paint industry.
More Facility:
Nippon paints Company is providing the highest facilities to their employees. Their facilities
includes:
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Nippon Paint (Pvt) Ltd.
Discount:
As a Nippon Paints employee he or she always gets some discount in some particular
product.
Foreign Training:
Employees always need some training to keep them competitive enough for the outer world.
Nippon Paints sometime provides training for their employees in the foreign countries. The
training cost fully bear by the company.
Allowances
In addition to the basic salary there are a number of allowances.
This is a monthly allowance which is added to their basic salary according to the respective
grade of employee.
Transport Allowance:
This may in the form of a cash payment or the company provides a car for officers.
Executives have the option to cash out the car benefit.
Leave Allowance:
For the leave allowance employees have to apply 1 week before and request for this
allowance to be paid. This will be paid according to the respective grade and once in a year.
Medical Allowance:
Employees are allowed for medical expenses for their spouse/partner and children. The
company will pay up to allowance for medical consultations and examinations, cost of drugs,
medicines, injections, and other appropriate medical treatment.
Leave structure
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Nippon Paint (Pvt) Ltd.
The Nippon Paints employees enjoyed a greater number of leave benefits in a year. Most of
them are paid benefit.
If any employee, suppose takes leave from the organization for one month then he will get
the full month‘s salary with some extra allowances.
Sick Leave:
If someone is absent due to sickness for the period of 3 days or more than they are required to
provide a medical certificate from a registered doctor. In case of absence due to sickness they
must inform your head of department or human resource department regarding their inability
to attend office. If they are absent for an extended period due to illness and hospitalized, they
are required to inform human resource department with details so that they can process
employee‘s hospitalize insurance claim.
Maternity Leave:
Female staffs are eligible for maternity leave up to a maximum of 90 days during their
pregnancy. You may take this leave before or after the completion of six weeks from the day
of your delivery.
Financial Analysis:
Nippon Paints (Pvt) Ltd.
Ratio Analysis
Below we have ratio analysis of Nippon Paints Pakistan for the years 2017-2018:
Liquidity ratio
Current Ratio:
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Nippon Paint (Pvt) Ltd.
(2018) Current liabilities 215774
Analysis:
The current ratio of the company has increased in 2018 as compared to 2017. The current
ratio of the company shows that liquidity position of the company is now better because it has
improved capacity to generate cash required for paying short term obligations. The Company
has increased its current assets.
Quick Ratio:
Analysis:
The Quick ratio of the company has increased a little in 2018 compared to 2017 which is
a good indicator that the company is experiencing constant revenue growth, collecting its
accounts receivable and turning them into cash quickly and likely turning over its inventories
quickly.
Analysis:
The Inventory Turnover Ratio of the company is increasing as compared to 2017 so
now company is more quickly converting its inventory into sales. As a result now less
inventory has to be stored and its maintenance cost is to be check by the company.
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Nippon Paint (Pvt) Ltd.
(2017) annual sales/365 610178/365
Analysis:
The days sales outstanding ratio of the company has decreased slightly in 2018 compared to
2017 meaning that now the company is selling slightly less products to its customers on
credit and taking a shorter time to collect the money compared to 2017.
Analysis:
The fixed asset turnover ratio of the company has increased compared to 2017 which indicates
efficient or greater utilization of its fixed assets in 2018.
Analysis:
The total asset turnover ratio of the company is decreasing slightly from 2018 that indicates
that the company is not efficiently using its assets to generate sales. For improvement in the
ratio the company needs to increase its sales or limit the purchase of inventory.
Debt Ratio:
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Nippon Paint (Pvt) Ltd.
Debt Ratio = Total Debt = 306365 = 0.32
(2018) Total assets 953983
Analysis:
The total debt ratio of the company has increased slightly in 2018 compared to
2017 and that shows the company is in good position. It is less relying on others in
comparison and facing low pressures of creditors.
Analysis:
The time interest earned ratio of the company has decreased slightly in 2018 compared to
2017 meaning slightly few earnings are now available to meet the interest payments and low
debt capacity.
Profitability ratios
Analysis:
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Nippon Paint (Pvt) Ltd.
The operating margin ratio of the company has decreased in 2018 compared to 2017 because
of the low sales and revenue generated in 2017.
Analysis:
The profit margin ratio of the company has a very small decrease of 0.1 points in 2018
compared to 2017. The company is still getting profit on slight low scale meaning the
company is working efficiently.
Analysis:
The return on total assets ratio has increased in 2018 as compared to 2017 which is more
favourable for the investors because it shows that the company is more effectively working
on its assets to produce greater amount of net income.
Analysis:
The BEP ratio is decreased in 2017 compared to 2018 that shows the poor ability of the
company to generate enough net income compared to 2017.
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Nippon Paint (Pvt) Ltd.
Analysis:
The Return on Assets of the company has increased in 2018 as compared to 2017
that shows that in 2017 the company generated more profits from its shareholders investment
in the company.
Analysis:
The market /book ratio had remained almost constant during 2017-2018 So it shows company
has a competitive stability in the market.
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Nippon Paint (Pvt) Ltd.
Critical Analysis
Marketing Specialization
Analysis of micro-environment
The micro environment in marketing includes all those micro factors that affect business
strategy, decision making and performance. It is vital for business success to conduct macro
environment and micro environment analysis before decision-making process. Macro
environment factors include political, economic, social, technological, and legal factors. On
the other hand, company micro environment factors include customers, suppliers, competitors
and market intermediaries.
Customers:
Every company’s customers can affect their organization, the organizations that do not
care their customers, they suffer. A large number of Sales team personal and a wide range
of distributors and dealers serve customers in all large cities across the country. Nippon
paints offer a wide range of solution through different paint categories in order to meet
the demands of its customers. Nippon Paint has separate department by the name of
Customer Services Department in order to satisfy its customers’ complaints, as it is one of
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Nippon Paint (Pvt) Ltd.
their most important stated objective to maximize the customer satisfaction. The
company has highly qualified and experienced personal that offers professional services
to its industrial customers through Technical services team.
Competitors:
Competitors are important factors that affect business environment. A firms competitors
include other firms which market same or similar kinds of products. They compete for each
& every share in the market. They seek opportunities to take over the market. They compete
in terms of price, quality, quantity etc.
Suppliers:
The suppliers play an important role while considering the workings of the organization. Raw
material like different chemical and other raw material required by the
company has to be supplied by the selected suppliers as the company mainly requires
specialized equipment. Furthermore, timely replacements and warranty claims require
efficient and effective suppliers, as a delay could adversely affect the workings of the
organization. Nippon paint is importing as well as purchasing raw material from well known
and reputed supplier which are the symbol of quality.
Market Intermediaries:
Market Intermediaries plays a vital role the success of any organization and its brand .So
Nippon’s paint Pakistan also using this mode business conduct in order to make it product s
easily available to final consumer . However, in Business to Business (B2B) Nippon Paints
supply itself to the customers because buying it from market, it will be more expensive for
them as compare to dealing directly.
Authorized Dealers
Nippon’s paint Pakistan using the way to reach final consumer to buy it broad range of
product in different variety .Initially it has more than 250 dealers throughout the country and
want increase it in near future because dealers role is much important in this industry.
Political Factors:
In Pakistan there is not much political stability, as Nippon’s Paint is recently launched in
country, so that it is much difficult time for them to organize them and fully operative .The
current political situation in our part of world is not favorable for foreign investment but
anyhow Nippon’s Paint has to survive in the current situation
Economic Factors:
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Nippon Paint (Pvt) Ltd.
The economic condition of Pakistan has also strong impact on Nippon’s Paint . As Pakistan
inflation rate is entering in galloping inflation rate, so the company has to revise its strategies
accordingly. As the People income is not increasing according to increase in Prices of
different commodities. So Nippon’s Paint should offer low prices as compare to other
competitors but with high quality products to the market .
As far as paint industry is concerned, there is much competition especially price competition.
So that Nippon’s Paint has to strictly look through their cost and Prices also. They reduce
their profit margin in order to survive in the market.
Social Factors:
Social environment is changing rapidly in our of world so Nippon’s Paint has to keep abreast
of these rapid change. Nippon’s Paint is a market oriented Company, so it has to keep in
mind the customers which are the basic key factors of any Company. So Nippon’s Paint has
to focus on different events, festivals and different types of music concerts in order to mix
with the culture of the country and People living in it. Nippon’s Paint has to be socialized in
order to get attention of our people.
Legal Factors:
The Nippon Paint Company is efficiently meeting the legal rules and conditions of the
country, so that is it not effecting by the legal factor
Industry analysis
Demand in Asia continues specially in Pakistan to rise faster than elsewhere in the world,
and the region now accounts for 50–55% of global consumption on a volume basis. In 2016,
the housing sector’s share in GDP was 6.71% and it has maintained a growth of 3.99% over
the past three years. (Pakistan Economic Survey 2016).This growth is evident in the fact that
the two paint giants, AkzoNobel Pakistan (previously ICI paints) posted a turnover of Rs 7.2
billion in 2015, compared to Rs 6.9 billion in the previous year (ANPL Annual Report 2015),
and Berger, a turnover of Rs 5.08 billion in 2016, compared to Rs 4.3 billion in the previous
year (Berger Annual Report 2016).
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Nippon Paint (Pvt) Ltd.
The industry is divided into two segments; the organized one, accounting for 30 to 40% of
the market, and the unorganized segment that takes in the rest. According to an estimate, over
350 units of paints and varnishes are operating in unorganized sector. Their products are of
various standards and their cost of production is comparatively low.In the organised sector,
major players include the multinationals (AkzoNobel Pakistan, Berger, Jotun, Kansai,
Nippon) and local companies (Happilac, Brighto, Diamond, Master and Nelson). The number
of paint and coatings producers in Pakistan is large, but most are regional producers, with
only 10 or so large multinationals. Among the local producers Happilac & Brighto contribute
market share of more than 50%.
Most of the major multinational companies operate in the areas of decorative paints,
industrial paints, powder coating, automotive paints and construction chemicals and coatings
producers are Akzo Nobel, Kansai Paint, Nippon Paint, Berger, Gobis, BASF, Axalta
(formerly DuPont’s automotive coatings) have production in Pakistan.
Classification
Pakistan's Paint Industry classifies its paints generally into six types as under:
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Nippon Paint (Pvt) Ltd.
In recent years after the China-Pakistan Economic Corridor (CPEC) project, there has been
impressive growth in construction in Pakistan, which has given opportunities to all players in
the paint and coatings industry. Commercial and residential building construction, which
utilizes decorative paints, has seen growth. With the steady progress in country's economy
coupled with rising construction activities after China-Pakistan Economic Corridor (CPEC)
project, demand for paints and coatings has been picking up. This has enabled the companies
to expand their product ranges to cater to the rising demand for paints and coatings.
Pakistan’s unique geostrategic location enables it to capture Central Asia and Middle Eastern
paint and coat markets.
Afghanistan is considered as one of the massive reconstruction place and has turned out to be
the perfect market for Pakistani exports – around 90 percent of Afghanistan’s paint
requirements are being met from Pakistan. At the same time, new construction is increasing
which is incremental business; about two-thirds of decorative paint goes into existing houses
that are being renovated or repainted and a third goes into brand new construction. Overall
with the economy and housing market growing, the demand for consumer paints and coating
materials has also grown.
Many Pakistani companies have technical collaboration arrangements with some of the
leading international manufacturers including the largest paint company in China, Japan,
Germany, UK, Turkey, etc… which provides assistance in developing paint and coating raw
materials, decorative paints, automotive paints, general industrial finishes, powder coatings,
protective coatings, vehicle refinishes business, road safety, government and marine,
construction and marine, construction chemicals, printing inks, auxiliary products,
construction chemicals, adhesives, vehicle refinishes, industrial paints, etc.
Forecasting demand
The main consumers of paints and varnishes are Government and semi-government
organizations such as Defence Service, Shipyard, Railways. WAPDA, Dams; Government
Road Transport Agencies etc. The private housing sector is estimated to account for 20 per
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Nippon Paint (Pvt) Ltd.
cent of total paint consumption in the country. The demand for paints and varnished is
derived from expansion in construction, building, manufacturing, transport and other sectors.
The country has yet to go a long way in its development efforts, for the pursuit of which a
five year plans have been formulated.
Moreover, a favourable turn in the investment outlook in the private sector, brought about by
a desired change in the industrial and economic policies of the Government, is expected to
contribute to a pick-up in the private industrial sector. In view of this, there appears to exist a
sizeable potential for further strides in the country's paints industry. The demand for paints in
conservatively estimated to increase by 20 per cent annually during the next five years.
Moreover, the development of chemical industry is also taking place in collaboration with
Chinese enterprises. In the view of this, most of the raw materials used by the paints industry,
are expected to be produced and manufactured locally during the next five years.
Pakistan's export performance in regard to paint and varnishes is not very encouraging. Major
exports of paints and varnishes include colours prepared, enamels, paints oil, paints prepared,
pigments and varnishes. Pakistan exports paints and varnishes to a number of countries,
prominent amongst them being Saudi Arabia, Japan, UAE, Dubai, Bangladesh, Singapore,
Sri Lanka and Oman. Pakistan exports mainly conventional type of paints mainly to Middle
Eastern countries.
In recent years after the China-Pakistan Economic Corridor (CPEC) project, there has been
impressive growth in construction in Pakistan, which has given opportunities to all players in
the paint and coatings industry. Commercial and residential building construction, which
utilizes decorative paints, has seen growth. Demand in Pakistan to rise faster than elsewhere
in the world, and the region now accounts for 50–55% of global consumption on a volume
basis. With the increase of demand of paint and coating products, need of raw materials. As
the economy and housing market growing, the demand for consumer paints and coating
materials has also grown. In view of this, there is a great potential for further strides in the
country's paints industry. Because of the flexible government policy and the rising demands,
foreign investors in this industry are welcomed and join hands with Pakistani local
companies.
The demand for paints is derived from expansion in construction, building, manufacturing,
transport and other sectors. The country has yet to go a long way in its development efforts.
There appears to be a sizable potential for further strides in the country’s paint industry.
Moreover, the development of chemical industry is also taking place and therefore, most of
the raw materials used by the paint industry are expected to be produced and manufactured
locally during the next five years. The paint industry would thus find cheaper raw material for
further expansion and growth. Demand for decorative paints depends on housing sector and
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Nippon Paint (Pvt) Ltd.
good monsoon. Industrial paint demand is linked to users industries like auto, engineering
and consumer durables.
The paint industry today is a multi-million dollar industry. Beyond attractive colours, the
industry now covers a large number of disciplines including polymer chemistry, theology and
pigment technology. Much investment has been channelled into dedicated research to
develop paints and coats that not only look good, but also offer increasingly improved
functionalities such as anti-corrosion and heat-resistant properties.
Present day research is focused on developing products that preserve the ecological balance
and protect life. The challenge today is to create eco-friendly products such as water-borne
coatings and lead-free paints, amongst other products.
There are huge opportunities for the growth of paint industry in Pakistan. But due to
Economical recessions and unstable Political conditions this industry has declined. Pakistan
is currently experiencing a GDP growth rate of 3.5-4.5%. Meanwhile the paint industry is
witnessing a 6-8% growth rate. This high growth can be attributed to the current boom in
both the automotive as well as the construction industry.
Customer analysis:
To analyse market trends as well as to know the demands and perceptions of Target Market
regarding Nippon Paints and its products, a survey was carried out with 263 respondents
chosen through random probability sampling. A questionnaire was developed and
respondents were asked to fill it. Some questionnaires were self-administered and others were
filled in by interviewers according to the responses of the respondents.
Survey Report
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Nippon Paint (Pvt) Ltd.
Yes
31%
No
69%
Others
10%
Broadcast
Media
Word of 34%
mouth
30%
Print media
Outdoor 14%
media
12%
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Nippon Paint (Pvt) Ltd.
No
41%
Yes
59%
Positive
32%
No Impact
64%
Negative
4%
Promotion
13%
Place
11% Product
40%
Price
36%
Q6: Household decisions such as deciding wall paints are made by:
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Nippon Paint (Pvt) Ltd.
Joint Male
36% 36%
Female
17%
Children
11%
Very effective
5%
Ineffective
22% Good
27%
Average
46%
Strongly
Agree Strongly
4% disagree
15%
Agree
31%
Disagree
31%
Neutral
19%
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Nippon Paint (Pvt) Ltd.
Q10: Have you ever heard about ALL COLOR schemes of Nippon Paints?
Yes, know it
very well.
12%
Have a vague
No, never idea
heard about it. 27%
61%
Competitor analysis
ICI Paints
Core Competency
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Nippon Paint (Pvt) Ltd.
Services:
It is a 360 degree service offering that understands, simplifies, and decodes the often complex
world of paints and colour.
An exclusive rang selected from the latest trends in international décor with finishes available
only to architects and designers.
Products:
Decorative paints:
Capabilities:
Berger Paints
Core Competency:
Capabilities:
Berger Paints have been maintaining strong relationship with their distributors and
Strengths:
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Nippon Paint (Pvt) Ltd.
DuLux Paints:
Core Competency:
Distributor‘s Relationship
Dulux Paints have strong distributor‘s relationship as well as strong distribution channel as
the organization itself is under the Akzonobel group which is one of the largest organization
in the countr
Capabilities:
Strengths:
STP Analysis
Segmentation
Paint can be broadly be classified as decorative and industrial on the basis of end use.
INDUSTRIAL PAINTS:
This material can be further divided into following four sub-segments depending on end
user profile.
Automotive paints
High performance coating
Other general industrial finishes
Coil coating
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Nippon Paint (Pvt) Ltd.
Targeting:
Nippon Paints independently evaluates its each market segments’ attractiveness and tries to enter all
segments because it wants to expand its market more and more.
Positioning:
In order to better understand how to increase the market share of Nippon Paints, we have to
position the brand with its direct competitors. That is best demonstrated with the help of the
BCG matrix.
BCG Matrix
The BCG matrix categorizes brands according to two parameters, the rate of market growth
and the relative market share. There are four categories under which brands may fall:
Star: High market growth & high relative market share.
Cash cow: Low market growth & high relative market share.
Question mark: High market growth & low relative market share.
M
A STAR QUESTION MARK
R ICI PAINTS NIPPON PAINTS
K
E HIGH
T
G
LOW CASH COW DOG
R
BERGER AND MASTER PAINTS ROYAL PAINTS
O
W
T
H
HIGH LOW
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Nippon Paint (Pvt) Ltd.
Differentiation Strategy:
Differentiation strategy is that the company makes its products or services differ to the other
companies. Nippon’s Paint has to provide more values to its consumers, so that it will be
beneficial to become the market leader. Nippon’s Paint is using differentiation in order to
differentiate its product and services from other key player in paint industry of Pakistan.
Nippon’s Paint has to consider its cost to improve its profitability ratio. As the profitability
ratio will increase, Nippon’s Paint become stronger to invest more. There are number of
costs that the company has to consider, That’s not the right stage to adopt this strategy
because Nippon’s Paint is recently enter Pakistan market and has to spend more to cover the
entire market through strong promotion of their product and services but Nippon’s Paint will
use this strategy in near future to compete the market and cover it.Nippon’s Paint has to be
careful all type of costs.
Focus Strategy:
Focus strategy refers to the focus on the customer, focus on that target market, identify it and
serve them better. Nippon’s Paint is currently following this strategy in order to meet the
organizational objective. The initial Nippon’s Paint is targeting the high and middleclass
people the country having ability to purchase quality product by paying it cost but in future
company is also planning to meet the whole need of the nation by providing necessary
product line to the people of Pakistan
Marketing Strategies
As far as the marketing strategies of Nippon Paint Pakistan are concerned, the company has been very
much active in the both Above the Line (ATL) and Below the Line (BTL) advertising but especially
in the Above the Line advertising.
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Nippon Paint (Pvt) Ltd.
The whole purpose of the marketing campaign was to raise the brand awareness and promote
company’s latest product called Momento among its target market with the help of variety of
marketing tools. The marketing and advertising strategies of Nippon Paint Pakistan are described as
below:
Out-of-Home Advertising
TVC
Facebook
Website
Out-of-Home Advertising
Nippon has carried out extensive out of home advertising for its latest product Momento. The
marketing campaign was carried all across the country, from Karachi to to Quett, from Lahore to
Multan and up to Nathia Gali in Murree.
The whole purpose was to position Momento into the minds of its target market as a superior product
to its competitors. The out of home marketing campaign that started few months ago is still in place
and Momento billboards and Tsigns can still be seen in various parts of Lahore.
TVC
TVC is one of the traditional and most effective ways to advertise the product to the larger audience.
TVC are more suited when the company is in need for mass marketing and it is because of this mass
marketing that TVCs can be really cheap when you divide the total cost to the estimated population it
reaches.
Advertising On Facebook
With Momento campaign running everywhere from TVC to Billboards, Social Media was no
exception. All the marketing efforts were put to increase an awareness regarding the new product. The
Facebook advertising was divided into two parts:
Customer satisfaction is itself a promotion tool for Nippon Paints and it help to
develop C2C relationship.
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Nippon Paint (Pvt) Ltd.
Nippon Paints arranges painter parties at different places and at this event gift are
given to those painters which have used a reasonable quantity of Nippon Paints for the
period.
Nippon Paints has given a target to every dealer according to its capacity and market
analysis. If that dealer meets that target, Nippon Paints offers special allowances and
bonuses.
Nippon paints also held a stall at the occasion of the Job Fair at Superior University
Lahore in 2012. The company offered attractive jobs in the field of finance and
marketing to the fresh graduates.
Nippon Paints also arranges cricket and hockey tournaments for the entertainment and
promotional tool for the company.
Islamabad
Sialkot
Faisalabad
Multan
Sargodha
The regions send their report and have their own targets in a specific time periods and they also
monitor the activities of sales force and demand of the customers for the paints. The paint market of
Nippon Paints Limited is very wide but due to lack and deficiencies it is lagging behind to the other
companies.
Market of paints has been a challenging job in one country because people consider that paint is a
decorative item. Even today it is considered as a luxury and not valued as a protective element. The
greater portion of our population lives in villages, where people are illiterate and consequently lacking
the knowledge of paints. Even in cities people rely upon painters and painters have their own
technology and preferences. In spite of all these drawbacks in the market many companies in the field
of paints striving, with the help of their marketing activities, to gain high business. They have realized
that the market is growing with substantial potential as a consequence of increasing literacy rate,
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Nippon Paint (Pvt) Ltd.
standard of living, infrastructure development, industrial growth and more and more emphasis on
defense strength.
SWOT Analysis
In this analysis, the whole organization is being squeezed into few words which can help it to
SO (strengths-opportunities) Strategies
WO (weaknesses-opportunities) Strategies
ST (strengths-threats) Strategies
WT (weaknesses-threats) Strategies
Strengths
Strengths are those specialties that by availing them we can capitalize and have a result in the
form of profitability. Strengths are internal capabilities.
The strengths of Nippon Paints are:
They like any other Japanese Company spend and focus on R&D
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Nippon Paint (Pvt) Ltd.
The company has extremely vibrant new logo showing values like: professional,
Weakness
Low market share
High competition in the presence of foreign companies
Low and waiting production processes
Nippon Paint w.r.t India has a very small range of products which include few interior
Opportunities
Nippon Paints has the vast range of opportunities to restructure itself as a competitive
firm given as:
To use their technology of paint research and develop new high-class paints used in
local industries
To have the good management in the organization having good benefits and rewards
They have a greater opportunity to expand its products all over the country because
the organized sector is producing only 20% of paint and remaining is being prepared
by mushroom sector.
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Nippon Paint (Pvt) Ltd.
Its ability to innovate and do R&D provides them an opportunity in developing eco-
friendly products which are seen as products for the future with environmental
Nippon Paints can increase its sales by accelerating its marketing efforts.
Threats
Global economy is sluggish
The new emerging companies are prevailing the opportunities from those areas where
Nippon has lose control.
The competitors are using the better promotion skills, which help them to defend
against Nippon.
Huge job burden on the employees is de-motivating them and they just maintain their
existence in the factory.
Nippon Paint w.r.t India faces stiff competition from other prominent and well
The biggest threat to Nippon Paints is the political and economic instability of
Pakistan.
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Nippon Paint (Pvt) Ltd.
Conclusion
Nippon Paints Limited is the largest manufacturer of a wide variety of decorative and
industries paint in Pakistan. Nippon paints aims to delight and inspire customers to transform
their surroundings at home and work with performance products and colors. With some of the
Pakistan’s top paint and decorative product brands, serving both the professional and DIY
markets, Nippon Paints has products to prepare and care for all building materials.
At Nippon they believe that their job does not stop at merely supplying the paints. This is
important to them as it is to the user that good results should be obtained from their products.
We set great value to their technical Service Department, which is staffed by individuals of
wide practical experience in the use of paint under all conditions. This experience is readily
available to paint users requiring advice and assistance in the choice of paint to the
preparation of painting specifications. Their products are based on continuous research and
product development carried out by their R&D Department. ICI is employing and putting into
use best available technology in the world for their users.
Nippon paints has a very bright future in spite of the fact that it has a large number of local
and foreign competitors. It can improve its operations and increase its sales in the coming
time as people are becoming more conscious about the brand and quality of the products and
better performance of the paint.
Nippon Paints has a very friendly environment that enriches the mind and soul at the job and
urges the employees to work honestly. The owners of the company are not greedy of profit
and money. Nippon paints is a proud product manufactured in Pakistan which is total quality
based and it has very good options to expand and progress in the future.
of internship. I learnt about the marketing strategies that are used on the practical basis. ABM
helped in understanding that how to create a better brand image in front of the customers that
is a basic need for a corporation. I mainly learnt about brand marketing and trade marketing.
Majorly I learnt about the trade marketing that how a trade executive helps in earning a high
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Nippon Paint (Pvt) Ltd.
Recommendation
In the end, I would like to recommend some suggestions for the betterment, growth and
improved business activities of Nippon paints.
Nippon paints, without any doubt, is a high quality brand in the paints industry of
Pakistan, it must have some long term growth plans and strategies to achieve them.
The employees should be given to time for the entertainment activities for they could
be relaxed and perform their job with open heart as there is very conservative
environment.
Nippon should focus on its marketing department and the distribution system should
be improved.
It must start an attractive promotion and advertisement campaign in order to better
familiarize the product among mass.
It must also improve its website and online sales & services system must be
established.
It should improve its production procedure and reduce the wastage of resources and
raw material.
Keeping in hand the competitive advantage, it should improve those qualities for
which it is best among other paints companies.
It must keep an eye on its competitors and devise the plans to tackle them effectively
and efficiently.
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https://nipponpaint.com.pk/corporate/about-us/background
https://www.scribd.com
https://www.echemi.com/cms/9533.html
https://en.wikipedia.org/wiki/Nippon_Paint
https://nipponpaint.com.pk/
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