my intern report final.doc

Introduction

Bangladesh’s paint industry has been growing at a double-digit rate for the past several

years riding on the increasing demand from the construction sector. Use of paint for both

interior and exterior decoration is rising, giving a boost to the paint industry A recent

study reveals its market size based on demand is estimated at Tk 1,000 crore and

domestic production capacity Tk 920 crore. Leading private commercial bank Prime

Bank conducted the study. The demand-supply gap, according to the study, is Tk 80

crores. Only a few players Berger, Asian, Roxy, Pailac, Aqua and Elite etc are operating

in the market with over 90 percent market share.

Shipbuilding and automobile industries also consumed a good amount of paints, market

operators said, without giving a specific percentage. Rupali Chowdhury, chief executive

of Berger Paints Bangladesh, however, believes the market is already crowded and there

is little business opportunity for the new entrants.She said Berger has 50-55 percent

market share in Bangladesh. She thinks maintaining quality has helped the company to

hold the market leadership and to satisfy the customers. So satisfied customers are like an

asset to a company. The importance of customer satisfaction is enormous. It is the key

factor in success of every company. When it comes to customer satisfaction, it all comes

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down to perception: How the customer sees and experiences the product and service

provided by a business. The customer has expectations and requirements; meeting and

exceeding them is the objective, and defining them and understanding them is the

challenge. The importance of customers has been highlighted by many researchers and

academicians. According to Hansemark and Albinsson (2004), “satisfaction is an overall

customer attitude towards a service provider, or an emotional reaction to the difference

between what customers anticipate and what they receive, regarding the fulfillment of

some need, goal or desire”. Kotler (2000) defined satisfaction as: “a person’s feelings of

pleasure or disappointment resulting from comparing a product’s perceived performance

(or outcome) in relation to his or her expectations”. In order to achieve customer

satisfaction, organizations must be able to satisfy their customers needs and wants (La

Barbera and Mazursky, 1983). Customers’ needs state the felt deprivation of a customer

(Kotler, 2000). According to Kotler (2000), wants refer to “the form taken by human

needs as they are shaped by culture and individual personality”.

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Growth Strategies International (GSI) performed a statistical analysis of Customer

Satisfaction data encompassing the findings of over 20,000 customer surveys conducted

in 40 countries by InfoQuest. The conclusion of the study was: a) A totally satisfied

customer contributes 2.6 times as much revenue to a company as a somewhat Satisfied

Customer. b) A totally satisfied cutomer contributes 17 times as much revenue as a

somewhat dissatisfied customer. c) A totally dissatisfied customer decreases revenue at a

rate equal to 1.8 times what a totally satisfied customer contributes to a business. There

are many factors that can determine customer satisfaction. It can start from product

quality to billing timeliness.

Organizational Overview

Berger is one of the oldest names in paint industry tracing back to 1760. Lewis Berger, a

German national, founded dye & pigment making business in England. Lewis Berger &

Sons Limited grew rapidly with a strong reputation for innovation and entrepreneurship

culminating in perfecting the process of making Prussian blue, a deep blue dye, a color

widely used for many European armies' uniform. Production of dyes & pigments evolved

into production of paints & coatings, which till today, remains the core business of

Berger. Berger grew rapidly by establishing branches the world over and through

merging with other leading paint & coating companies.

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Berger has been involved in paint business since 1950 in Bangladesh when paints were

first imported from Berger UK and then from Berger Pakistan. In 1970, Berger Paints

Bangladesh Limited (BPBL) erstwhile Jenson & Nicholson had set up its paint factory in

Chittagong at an estimated investment of TK.4 million. The shareholders were Jenson &

Nicholson (J& N), Duncan Macneil & Co Ltd and Dada Group. Duncan Macneil

subsequently sold their shares to majority shareholder J& N group. The Dada group's

share ultimately vested with the Government of Peoples' Republic of Bangladesh after

the independence. The name of the company was changed from J& N (Bangladesh)

Limited to Berger Paints Bangladesh Limited on 1st January 1980. In August 2000, J& N

investment (Asia) Ltd purchased Government shareholding. Now, Berger Paints

Bangladesh Limited is 100% owned by J& N Investment (Asia) Limited, UK. Over the

decades, Berger has evolved to becoming the leading paint solution provider in this

country and has diversified into every sphere of the industry - from Decorative Paints to

Industrial Coatings, from Marine Coatings to Powder Coating and what not. Berger has

invested more on technology and Research & Development (R & D) than any other

manufacturer in this market. With its strong distribution network, Berger has reached

almost every corner of Bangladesh. Nationwide Dealer Network, supported by 7 Sales

Depots strategically located at Dhaka, Chittagong, Rajshahi, Khulna, Bogra, Sylhet and

Comilla has an unmatched capability to answer to paint needs at almost anywhere in

Bangladesh.

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In Bangladesh the major milestones of Berger Paints are given below:

1950-Started operation in Bangladesh by importing Paint from Berger UK

1970-Establishment of Chittagong Factory

1980-Named as Berger Paints (BD) Ltd. from Jenson & Nicholson (J&N)

1991-BMRE in Chittagong Factory

1995 – Establishment of Double Tight Can Manufacturing Plant

1999 – Establishment of Most Modern Sate-of-the-Art Paint Production Plant in Dhaka

2002 - Construction of own building for the Corporate Office in Dhaka

2004 – Establishment of Powder Coating Plant

VISION

The company‟s vision is to remain as the benchmark in the Paint industry by: Being an

innovative and technology driven Company consistently delivering world-class products

ensuring best consumer satisfaction through continuous value added services provided by

highly professional and committed team.

MISSION:

The company‟s mission is to increase their turnover by 100% in the next five years. They

shall remain socially committed ethical Company.

CORPORATE OBJECTIVE:

Berger‟s mission is to add value to life, to out perform the peers in terms of longevity,

customer service, revenue growth, and earnings and cash generation. It will be the

employer of choice for all existing and future employer.

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Quality Policy

We at Berger Paints Bangladesh Limited are committed to achieving total consumer

satisfaction.

We commit to project ourselves as an ethical and socially responsible company.

We commit to continue as the market leader through consistent sales growth, increasing

productivity and developing new products befitting consumer needs.

We shall ensure continual improvement in our operations through utilization of our

highly professional and dedicated team, proper process management and participation of

our stakeholders.

We shall set measurable targets at appropriate stages and shall continuously monitor

them.

ORGANIZATION STRUCTURE Berger paint BD limited is one of the biggest

companies in paint industry. Its Organization structure becomes a little complicated than

before. It is organized on functional basis. It is consisted of more then 300 employees of

whom about 160 are general workers and the rest are white color employee. These

employees are working in different factories and depots of the company.

FUNCTIONAL DEPARTMENTS IN BERGER PAINTS

The functional departments in Berger Paints Bangladesh Ltd. are Sales and Marketing,

Finance, Supply chain, Human Resource, IT and R&D department.

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Marketing Department

Function of Sales and Marketing department include:

Preparation of marketing plan

Preparation of draft text for promotional materials.

Replying to quarries from the clients and as well as the friend forces

related to the brand.

Arrangement of tour and action plan.

Attending different conference with the client to promote the relevant

products.

Conduct pre-conference as assigned by marketing manager.

All responsibilities relevant to the launching of a new product.

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Sales forecast.

Preparation of yearly marketing plan that includes therapeutic class,

marketing size, and growth rate, direct and indirect competitive market

situation, strength and weakness of competitors, promotional

campaign, tools and budget.

Distribution the sales target fixed by company in the respect of market

size.

Pay regular visit to the prospective client show the benefits to new and

existing products with the help of promotional tools.

Monitoring and analysis of the competitor‟s activities and report to the

marketing manager.

Provide financial offer to the client.

Received work order from the client.

Provide the new lunching product inform action to the existing client.

Supply Chain Management

The SCM department of Berger is headed by a GM. The department has four sections led

by four line managers. These four sections are Demand & Supply Planning, Planning,

Commercial and Procurement & Logistics. The Demand & Supply Planning Section is

responsible for planning and distribution of finished goods. The other three departments

are responsible for procurement of goods and services. The processes under the planning

& distribution and procurement functions of the SCM department are identified below:

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1. Planning Function for Finished Goods

i. Demand planning & Forecasting of Finished Goods

ii. Depot Indenting

iii. Factory Indenting

iv. Production Requirement

v. Production Plan

vi. Delivery from Factory to Depot

2. Procurement Function for Raw Materials, Packaging, Services and Capital

Expenditure

i. Purchase Requisition

ii. Market Requirement Plan

iii.Vendor Selection Process

iv. Purchase Order

v. Letter of Credit

vi. Clearing & Forwarding

vii. Goods/Services Receiving Process

viii. Bill Payment

These processes are shown in a Process Flowchart:-

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SCM

Planning Procurement

Demand Planning & Forecasting

Distribution of Finished Goods from Factory to

Depot

Depot Indenting

Factory Indenting

Production Requirement

Production Plan

Market Requirement Plan

Purchase Requisition

Vendor Selection

Purchase Order

Letter of Credit

Clearing & Forwarding

Goods Receiving Process

Bill Payment

Supply Chain Management (SCM) Processes Under Planning & Procurement Functions

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Finance department Under finance there are 4 departments. They are Accounts

department, Cost & budget department, Vat & taxation department and Corporate affairs

department.

Functions are:

Maintaining the account like recording of transaction, preparations of final report,

costing & budgeting, booking, and providing fund to the project.

Maintaining receivable accounts, bank accounts of Berger Paints.

Preparation of the accounting report for the performance analysis of Berger Paints

BD Ltd.

Maintaining various cost like transportation cost, and other official cost.

Human Resource Department

Functions of HR- department include:

Recruitment of employees.

Promotion of employees

Transfer of employees.

Retirement of employees

Deals with remuneration, increments and other things benefits

Look after the facilities like lunch, Transport service etc.

Communication with Union

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System department System department is working with total information system (IT) of

Berger. They identify the problem for immediate solution and add the new. Without an

efficient system department an innovative and up growing Organization could not do.

Research and Development department

Berger has invested more on technology and Research & Development (R&D) than any

other manufacturer in this market to give a comprehensive and sustainable painting

solution to the need of native industry. It selects the raw materials from some of the best

known names around the world. The superior quality of Berger's products has been

possible because of support from its advanced plants and an international-standard of

strict quality. Investing in technology and plant capacity is even more evident from the

new factory of Berger paint Bangladesh Ltd at Saver, Dhaka.

PRODUCTS OF BERGER PAINTS LIMITED

Berger is committed to offer quality products that satisfy consumers’ ultimate desires

from paints with the help of state-of–art technology. Berger always believes in one step

ahead in offering new product to create more value for customers’ money. Berger

outsmarts other competitors of the market through its one step ahead policy and

innovative market offers. Berger is trying to fill up all holes of the market through

offering a wide range of products to meet the needs (Premium to Economy Paints) of

different types of users and to solve the different types of functional requirements

(Industrial, Decorative & Marine).

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Decorative Products: The objective is to beautify the surfaces with protection from

corrosion and erosion. This business category mainly targets household segment and

products are being offered to the consumers through a dealer network. Products fulfill the

aesthetic value of the consumers. This section constitutes the major revenue earning

business area of Berger Paints Bangladesh Ltd. Decorative products include luxury silk,

Robbialac Acrylic Plastic Emulsion, Robbialac Easy clean, Robbialac Super Gloss

Synthetic Enamel (RSE), Robbialac Acrylic Distemper (SPD), Weather Coat Smooth,

Robbialac Aluminium Paint, Berger illusions, Berger color bank products, Robbialac

Zinc Phosphate Primer, Robbialac Synthetic Undercoat, etc.

Industrial

These are tailor made products used to cater to the specific needs of customers. These

products give protection to the surfaces in extreme situations like severe hazardous

environment, high temperature, movement of heavy materials and machinery etc. Direct

marketing approach is being used to promote the Industrial Coatings. Main customer

groups are Garments Factories, Chemical Plants, Fertilizer Manufacturing Plants,

Consumer Durable Manufacturing Plants etc. Industrial protective coatings are 4

categorized into industrial finishes, high protective coatings, industrial primers and other

products.

Marine Products: Products are being offered mainly through direct marketing approach.

The main user groups of these products are Dock Yards, Bangladesh Navy, and

Passenger Ships. Market is mostly concentrated in Dhaka and Chittagong. Berger‟s

marine coatings include Seaborne High Gloss Enamel, Seaborne Aluminium Paint,

Seaborne Aluminum Hold Paint, Seaborne Topside, Seaborne Deck Paint, Berger Marine

Enamel, Seaborne High Performance Epoxy Coatings etc.

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SERVICES OF BERGER PAINTS

Berger Home Décor is a service wing of Berger Paints Bangladesh Ltd. Berger Home

Decor offers two-stage services which include free service and paid service. Berger

Home Décor is currently offering wide range of services to its prospects and existing

consumers. Technical advice on surface preparation and application guideline include

paint selection, dealer selection, painter/ contractor selection and color scheme. There is

defined Telephone number for queries. By ringing simply in the number one can make

query or seek available services from the company. According to the nature of query, the

company provides solutions.

Price

Generally Berger follows cost based pricing method. After calculation of the total

manufacturing cost (Direct & Indirect RM cost, Direct & Indirect Labor cost and

Manufacturing overhead cost) and adds 20% GP to get the price point of the product. But

this is not the rule of thumb in pricing the Berger products. Competitor based pricing

policy is also followed as well because of the increased competition in the paint market.

Place/Distribution

Berger follows the direct distribution policy to make the paints available in the market.

Berger distributes paints through its own sales force. Distribution activities of Berger in

all over Bangladesh are covered by 7 (Seven) strategic depots.

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The distribution channel covers:

Promotion

Product promotion is very much important for a company to introduce the product to the

target customer. Now a day most of the companies are using various promotional tools to

let the consumers know about their product. Like other organization Berger is also taking

up the help of various promotional tools. Berger has a variety of product. Though Berger

is a leading multinational company and it has a very good brand image, Berger is doing

their product campaign through different media, promotional tools. Right now Berger is

using Television ads to make the consumers about their products. Besides this Berger

uses billboards, product leaflets, brochures to reach their products to the consumers.

Moreover, Berger is also doing various trade promotional tools to promote their dealers.

Not only that, Berger takes part in different fair, maintaining sponsorship, arranging

different creativity competition to increase their public relation and publicity. Berger uses

a number of promotion mixes to promote its products to its customers.

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ADVERTISING

Some of the advertising tools it uses are described below:

Electronic media: Paints of Berger are promoted in the market through electronic media

mainly in BTV and Cable Channels. Through these ads not only the overall Berger

products are offered but also the individual brands are promoted.

Print Media: Berger has taken the initiatives to attract people‟s attention through print

media using brochures, magazines, shade cards and other paint related information in

printed form are delivered to the dealers, potential customers, painters and other targeted

potentials to make them interested /more interested toward Berger products.

Billboard: Advertisements of Berger Paints can also be seen on billboards. This is done to

catch consumers‟ attention when they are traveling or stuck in traffic jams.

SALES PROMOTION To enhance sales Berger uses some sales promotion tools as

well. Berger offers different types of incentives for consumers and traders of the paint

market. Incentives are given more to the dealers and painters than to consumers because

dealers are the main customers of Berger Paints. The painters who paint the house for the

consumers also play an important role in making a decision of the paint companies. So,

Berger offers incentive to create a favorable attitude towards the paints of Berger.

COMPETITION

There are a good number of local paint manufacturing companies (40 organized and at

least 50 more in the informal sector) operating the paint market. Berger Paints

Bangladesh Ltd. faces competition from local paint manufacturing companies in

Bangladesh like Elite, Romana, Roxy, Al Karim and Aqua Paints. Berger also faces

strong competition from Asian Paints, India's largest paint company. Berger also faces

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strong competition from Asian Paints, India's largest paint company. RV Ramanujam,

chief executive officer and director of Asian Paints (Bangladesh) Limited said they will

double their capacity and further increase the capacity from time to time as demand is

rising due to a booming construction sector in Bangladesh (The Daily Star, 2007). Berger

Paints also faces aggressive competition from Roxy Paints as Roxy Paints produces

economy paints which enabled it to penetrate the rural market. With rising demand local

players such as Elite, Romana, Roxy, Al Karim and Aqua Paints, are also devising their

marketing strategies to increase market share by introducing new products and

promotional offers.

BERGER’S SWOT ANALYSIS

A scan of the internal and external environment is an important part of the strategic

planning process. Environmental factors internal to the firm usually can be classified as

strengths (S) or weaknesses (W), and those external to the firm can be classified as

opportunities (O) or threats (T). Such an analysis of the strategic environment is referred

as SWOT analysis. The SWOT analysis provides information that is helpful in matching

the firm's resources and capabilities to the competitive environment in which it operates.

As such, it is instrumental in strategy formulation and selection.

Strengths

Berger Paints Bangladesh Ltd, one of the largest paint companies in the paint industry, is

the market leader in paint industry.

It has a strong company and brand image.

Profitable operation

High growth of turnover

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Strong management team

Strong financial position

It provides excellent in service with widest coverage

Less fixed and administrative cost

Highest member of professional technicians

Congenial relationship with the clients

Effective corporate culture

Strong network coverage.

Weaknesses

Insufficient number of employees

Insufficient field forces comparing other new competitors and product line

High price sensitive target group

Non availability of products

Late supply after taking order from party / client.

Berger Paints is still mostly concentrated in the urban areas.

Opportunities

A developing market such as the Internet.

Mergers, joint ventures or strategic alliances.

Moving into new market segments that offer improved profits.

The growth of the industry is highly increasing creating more opportunities for the

company.

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Berger Paint has the opportunity to penetrate the semi urban and rural market

through the economy paints.

There is an opportunity for further growth in the industrial sector since clients are

importing paints in industrial sector.

Threats

Shifts in consumer tastes away from the firm's product

Emergence of substitute products

New regulations

Increased trade barriers

A new competitor in your home market.

Price wars with competitors.

A competitor has a new, innovative product or service

Competitors have superior access to channels of distribution.

Taxation is introduced on product or service.

Threats from substitutes arise as the prices of paints are increasing and hence

consumers might decide to use substitutes for paints such as wall paper, etc.

Expansion the product line by small and medium size competitor

Growing bargaining power of the customers

Huge amounts of Paint Company compare to the size of market.

Possibility of unfair means by the dealers.

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THE FIVE FORCES MODEL

The Porter’s model is analyzed from Painting Industry’s perspective on

Bangladesh- The Five Forces model of Porter is an outside-in business unit strategy tool

which helps an organization to make an analysis of the attractiveness (value) of an

industry structure. Porter‟s Five Forces form a useful starting point for undertaking a

competitive analysis, in particular because they encourage a very wide definition of

competition. Cometition is not just about established, direct competitors at end-product

level, but also about indirect and future competitors and about competition for suppliers

(Frances Brassington and Stephen Pettitt, 2000). Porter in his Five Forces model defined

competitive forces that operate in an industry. They are:

The bargaining power of suppliers

The bargaining power of suppliers explains how strong the position of sellers is and do

many potential suppliers exist or only few potential suppliers, monopoly. Suppliers are

also essential for the success of an organization. The paint industry is raw-material

intensive. Raw materials are needed to complete the finish product of the organization.

Most of the raw materials are imported, so the paint companies of our country are totally

dependent on the foreign suppliers for raw materials. So the foreign suppliers have

bargaining power over the paint companies. However the power is partly offset by the

oligopolistic nature of the supply industry. Furthermore, most of the raw materials in the

paint industry are relatively undifferentiated (e.g. white spirit) and the paint companies

may choose from the few suppliers. Some companies manufacturers the paint containers

in their own factories. As such the bargaining power of suppliers is reduced. On the other

hand some paint companies brings the containers from third part and hence suppliers

have bargaining power over the paint companies.

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The bargaining power of buyers

The bargaining power of buyers explains how strong is the position of buyers and

whether they can work together in ordering large volumes. Buyers or customers can exert

influence and control over an industry in certain circumstances. This happens when there

is little differentiation over the product and substitutes can be found easily, customers are

sensitive to price, or when switching to another product is not costly. The markets for

paint industry include dealers, retailers and industrial concerns. For decorative paints the

principal outlets are the retailers and distributors. Large paint companies have a large

proportion of their outputs going to these outlets. They face a downward pressure from

prices resulting from the high bargaining power of buyers. Industrial and marine paints

are supplied into fragmented market and these can maintain higher margin but these

products have lower volumes.

The threat of substitute products and services

The threat of substitute products and services explains how easy a product or service can

be substituted, especially made cheaper. The threat of substitute is high when price of that

substitute product falls, it is easy for consumers to switch from one substitute product to

another or when buyers are willing to substitute. There are a good number of local paint

manufacturing companies (40 organized and at least 50 more in the informal sector)

operating the paint market. All of them are producing similar products which mean that

there are many direct substitutes for most paint products. The non-essential nature of the

product means that there are a number of indirect substitutes like using wallpaper, tiling,

plastic coating, etc. Therefore we can say that threat is substitutes are prominent in a

paint industry.

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The threat of new entrants

The threat of new entrants explains how easy or difficult is it for new entrants to start

competing, which barriers do exist. The threat of a new organization entering the industry

is high when it is easy for an organization to enter the industry i.e. entry barriers are low.

An organization will look at how loyal customers are to existing products, how quickly

they can achieve economy of scales, would they have access to suppliers, would

government legislation prevent them or encourage them to enter the industry. The capital

cost of entering the paint industry is relatively low. A chemistry graduate with a few

years of experience in the industry would have sufficient know-how to operate a small

paint company so the intellectual resources requirement is not prohibitive. There is some

mandatory legislation that applies to this industry but those are not expensive for small

companies (J. Campbell, David and Tom Craig: 2005).

Rivalry among Existing competitors

Generally competitive rivalry will be high if there is little differentiation between the

products sold between customers, competitors are approximately the same size of each

other, if the competitors all have similar strategies, or if it is costly to leave the industry

hence they fight to just stay in (exit barriers)

There are a good number of local paint manufacturing companies (40 organized and at

least 50 more in the informal sector) operating the paint market. However among them

only few are playing significant role in the industry. At present Berger Paints Bangladesh

Ltd., Pailac, Elite, Asian Paints, Roxy Paints, Romana Paints are playing most dominant

role in the paint industry. Rivalries among existing competitors are present in this

industry but it is not that significant.

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Market Share Analysis

At present Bangladesh paints industry has 6 companies who have significant market

share. Berger Paints Bangladesh Ltd. is operating as the market leader and enjoying

almost 50% of national paint market share. The nearest competitors are Asian paint, Elite

and Pailac.

Figure: Market share of different companies

Berger Others Asian Roxy Paints

EliteSagar

ChemicalsMoonStar

Pailac

0%5%

10%15%20%25%30%35%40%45%50%

Market share

1 2 3 4 5 6 7 8Companies

Market Share

Berger 50%

Others 16%

Asian 12%

Roxy Paints 5%

Elite 6%

Sagar Chemicals 2%

Moon Star 3%

Pailac 6%

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From the chart we can see that Berger Paints Bangladesh Ltd. is the industry leader with

an overall market share of about 50 per cent in the organized paint market. It has the

largest distribution network among the players and its aggressive marketing has earned it

strong brand equity. Asian Paints enjoy a market share of about 12% and Roxy Paints

enjoys a market share of about 5%. Sagar Chemical and Paint Industry Ltd, who are

mostly known as Romana Paints manufacturer, have a market share of 2% and Elite

Paint‟s market share is 6%. All the other paint companies have a market share of about

16%.

Market based classification:

From internal sources we know that the paint industry of Bangladesh can be classified

into three segments:

Decorative Paints: It caters to the housing sector. The medium range consists of

enamels, popular in smaller cities and towns. Distempers are economy products

demanded in the suburban and rural markets.

Industrial Paints: Industrial paints are basically specially produced paints, which are

used in two ways. Industrial paint is being used in some industries as the raw materials

who are the regular consumer of such paints. The segment uses such paint for the

protective and maintenance purpose. It includes powder coating, high performance

coating and automotive paints. Automotive paints are being used in the automobile

sector. Two-thirds of the industrial paints produced in the country are automotive paints.

Marine Paints: Marine paints are produced specially for the river and sea going vessels.

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Marine, 5%

Industrial Paints, 10%

Decorative Paints, 85%

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Project Part

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1. Introduction

The secret of successful business is to give the customers what they want in a manner that

satisfies them. Companies now recognize that the new global economy has changed

things forever. Developing a satisfying customer experience has direct impact on firms’

revenue. That’s why it is very important to identify the factors related to product and

services that make the customers happy. The fact is equally true for the paint industry.

The rapid growth of urbanization and real estate business has opened a lucrative and

potential market for paint companies. It is very essential for them to understand consumer

mind to know what they want.

Bangladesh’s paint industry has been growing at a double-digit rate for the past several

years riding on the increasing demand from the construction sector. Use of paint for both

interior and exterior decoration is rising, giving a boost to the paint industry. The

customer of paint industry has expectations and requirements; meeting and exceeding

them is the objective, and defining them and understanding them is the challenge.

Measuring the customer satisfaction level and identifying related key factors can give a

scope to improvise and customize the product type, quality and service performance. The

subject of my report is “Customer satisfaction level of the customer of Berger Paints

Bangladesh Limited. The aim of the report is to investigate the satisfaction level of the

customers of Berger Paints Bangladesh Ltd.

2. Objective The main objectives of the report are as follows:

To fulfill academic requirement and to assess and find out whether the customers are satisfied (to what extent) with the product or services of Berger Paints.

What are the factors determining customer satisfaction.

To measure and prioritize areas where improvement will most affect customer satisfaction.

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To find out the customer satisfaction level in consideration to the product quality. To find out the customer satisfaction level in consideration to the service of

Berger. To identify what are the factors affect customer satisfaction of the customers of

Berger Paints Bangladesh Limited. To recommend ways and means to solve problems regarding customer

satisfaction.

3. Significance of the studyMany companies depend on out-of-date and unreliable measures of customer

satisfaction. They watch sales volume to understand their customers' preferences. They

track and count the frequency of complaints to have idea about satisfaction level. While

these approaches are not completely without value, they are no substitute for a valid,

well-designed customer satisfaction surveying program. The significance of the study is

to identify the level of satisfaction of the customers of Berger Paints Bangladesh

Limited and also point out the causes of dissatisfaction about the brand by analyzing

data and conducting research. This study will help to find out relationships between

customers and Berger paints products and its services to identify satisfaction level. It

will help to adopt any future change for better performance and success of the

company.

4. Expected findings or hypothesisSatisfying customers are the only way to stay competitive in today's marketplace.

The balancing act between what customers want and what the company can provide must

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be optimized in order to maximize company’s long-term profits. The company is already

in a good position in the consumer’s mind but understanding the customer’s satisfaction

level, will help the company to exceed the present level of customer satisfaction.

By completing the research with survey and data analysis, I expect to find some

significant relationships among customer satisfaction and related factors. I have also

come up with the following hypothesis for my research: (The hypothesis are based on the

statements of the questionnaire)

Hypothesis1: “The most influential factor for selecting Berger” and “You are dissatisfied with which factor(s) of Berger products” are independent

Hypothesis2: “The most influential factor for selecting Berger” and “I am satisfied with the quality of Berger products” are independent

Hypothesis3: “The most influential factor for selecting Berger” and “I am satisfied with

the price of Berger products” are independent

Hypothesis4: “The most influential factor for selecting Berger” and “The quality of Berger product is better than other competitors” are independent

Hypothesis5: “The most influential factor for selecting Berger” and “The price of Berger product is higher than other competitors” are independent

Hypothesis6: “The sales centers of Berger paints are convenient to you” and “There should be more outlets of Berger” are independent

Hypothesis 7:“Satisfaction level with Berger home Décor service” and “I am satisfied with the Service fee for Berger home Décor” are independent

Hypothesis8: The means of the groups of male and female who answered for there

should be more outlets of Berger are not significantly different.

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5. MethodologyTo accomplish the research both qualitative and quantitative methods were followed. For

secondary data I went through the available company documents regarding present

management structure and procedures. I also looked on journals, magazines and

newspapers to collect information. I took interviews of some officials of Berger Paints

Bangladesh Limited to assess their view and knowledge about customer satisfaction.

After that I concentrated on collecting primary data with questionnaires for customers to

identify satisfaction level. I developed a questionnaire that contained 23 questions. Data

collection was done on a random basis. There were 10 specific questions based on 5-

ordinal scale. The sample size was 80, approved by our faculty.

In the organization part, I provided the information in a descriptive manner. In the project

part I used the software called SPSS to analyze data. I conducted frequency distribution,

crosstabulation, chi-square test, T-Test, correlation, regression analysis and ANOVA to

test the hypothesis. I presented the results with necessary tables, explanation, graphs and

diagrams.

6. Results

30

Frequency Distribution Analysis:In the following section I have given the frequency analysis with graph and analysis of

each of them:

Gender

Frequency Percent Valid Percent

Cumulative

Percent

Valid male 58 72.5 72.5 72.5

female 22 27.5 27.5 100.0

Total 80 100.0 100.0

The sample size was 80. Gender-wise I found 58 males and 22 female respondents.

31

Age


Cumulative

Percent

Valid 20 to 35 30 37.5 37.5 37.5

36 to 50 40 50.0 50.0 87.5

above 50 10 12.5 12.5 100.0

Total 80 100.0 100.0

Among the 80 respondents 30 were in age range of 20 to 35, 40 were in age range of 36

to 50 and 10 were age of above 50.

32

Occupation


Cumulative

Percent

Valid Business 34 42.5 42.5 42.5

Govt. service holder 10 12.5 12.5 55.0

Private service 28 35.0 35.0 90.0

Teaching 8 10.0 10.0 100.0

Total 80 100.0 100.0

Occupation

Among the respondents most of them were business people, total amount 34. Others were

from Govt. service, private service and teaching.

33

0

5

10

15

20

25

30

35

40

Series1

Series1 34 10 28 8

Business Govt. service holder

Private service Teaching

Income


Cumulative

Percent

Valid Less than 30000 34 42.5 42.5 42.5

30000 to 50000 22 27.5 27.5 70.0

50000 to 70000 14 17.5 17.5 87.5

Above 70000 10 12.5 12.5 100.0

Total 80 100.0 100.0

42.5% respondents earn less than 30,000tk, 27.5% earns between 30000 to 50000tk and

17.5% earns more than 50000tk but less than 70000tk, 12.5% have earning more than

that.

34

Product category


Cumulative

Percent

Valid Decorative 58 72.5 72.5 72.5

Industrial 14 17.5 17.5 90.0

Marine 8 10.0 10.0 100.0

Total 80 100.0 100.0

72.5% consumers are decorative product based, 17.5% are industrial consumers and rest is Marine product based. The statistics also match with product based market research.

35

Who influenced you to buy Berger product


Cumulative

Percent

Valid Nobody 26 32.5 32.5 32.5

Friend 12 15.0 15.0 47.5

Painter 18 22.5 22.5 70.0

Architechture 2 2.5 2.5 72.5

Others 22 27.5 27.5 100.0

Total 80 100.0 100.0

32.5% respondents believe they are not influenced by anyone, 22.5% thinks they are

influenced by painters and rests are influenced by architectures (2.5%), friend (15%) and

others. So most are self-influenced probably because of media or word of mouth from

others they can’t recall.

36

26

1218

2

22

Nobody

Friend

Painter

Architechture

Others

The most influential factor for selecting Berger


Cumulative

Percent

Valid Price 6 7.5 7.5 7.5

Quality 26 32.5 32.5 40.0

Both Price & Quality 22 27.5 27.5 67.5

Reputation 18 22.5 22.5 90.0

Availability 8 10.0 10.0 100.0

Total 80 100.0 100.0

32.5% respondents believes the most influential factor for selecting Berger is quality,

27.5% thinks its both price and quality, other thinks it is reputation and availability. So

quality is the differentiating factor for the brand.

37

Did you take service from Berger home Décor?


Cumulative

Percent

Valid yes 22 27.5 27.5 27.5

No 58 72.5 72.5 100.0

Total 80 100.0 100.0

27.5% took Berger Home Décor service and rest didn’t.

38

22

58

yes

No

If Yes, Satisfaction level with the service


Cumulative

Percent

Valid Highly Satisfied 4 5.0 5.0 5.0

Satisfied 10 12.5 12.5 17.5

Moderate 4 5.0 5.0 22.5

Dissatisfied 4 5.0 5.0 27.5

N/A 58 72.5 72.5 100.0

Total 80 100.0 100.0

5% respondents were highly satisfied with the service, 12.5% were only satisfied, 5%

were neutral 5% were dissatisfied and 29% were not answered as it was not applicable

for them. So most are satisfied.

39

The sales centers of Berger paints are convenient to you


Cumulative

Percent

Valid yes 48 60.0 60.0 60.0

no 32 40.0 40.0 100.0

Total 80 100.0 100.0

60% answered yes for the statement and rest answered No. So sales centers are most

likely available for most of the consumers.

40

48

32yes

no

You are dissatisfied with which factor of Berger products?


Cumulative

Percent

Valid quality 18 22.5 22.5 22.5

price 24 30.0 30.0 52.5

availability 22 27.5 27.5 80.0

packaging 10 12.5 12.5 92.5

quantity 6 7.5 7.5 100.0

Total 80 100.0 100.0

9

1211

53

quality

price

availability

packaging

quantity

22.5% respondents believes the most dissatisfying factor for Berger is quality, 30%

thinks its price. Other thinks it is availability(11%), quantity(3%) and packaging(5%).

So price is the key factor here.

41

Berger provides you the relevant information regarding their services

through advertisements or Home décor?


Cumulative

Percent

Valid yes 36 45.0 45.0 45.0

no 44 55.0 55.0 100.0

Total 80 100.0 100.0

45% answered yes for the question and rest answered No. So most people don’t think

they get proper information.

42

Will you recommend Berger to others?


Cumulative

Percent

Valid Definately 26 32.5 32.5 32.5

probably 26 32.5 32.5 65.0

Not sure 22 27.5 27.5 92.5

probably not 4 5.0 5.0 97.5

Definately not 2 2.5 2.5 100.0

Total 80 100.0 100.0

32.5% respondents answered both definitely and probably for the question. That means

most of them will most likely recommend others to choose Berger.

43

I am satisfied with the quality of Berger products


Cumulative

Percent

Valid strongly disagree 6 7.5 7.5 7.5

disagree 16 20.0 20.0 27.5

neutral 20 25.0 25.0 52.5

agree 22 27.5 27.5 80.0

strongly agree 16 20.0 20.0 100.0

Total 80 100.0 100.0

27.5% respondents agreed with the statement, 20% strongly agreed, 25% were in neutral

position. 20% disagreed and 20% strongly disagreed. So most of them agreed with the

statement

44

I am satisfied with the price of Berger products


Cumulative

Percent


disagree 22 27.5 27.5 45.0

neutral 14 17.5 17.5 62.5

agree 16 20.0 20.0 82.5

strongly agree 14 17.5 17.5 100.0

Total 80 100.0 100.0

20% respondents agreed with the statement, 17.5% strongly agreed, 17.5% were in

neutral position. 27.5% disagreed and 17.5% strongly disagreed. So most of them are

dissatisfied with price.

45

I am satisfied with the Service fee for Berger home Décor


Cumulative

Percent


disagree 18 22.5 22.5 42.5

neutral 20 25.0 25.0 67.5

agree 16 20.0 20.0 87.5

strongly agree 10 12.5 12.5 100.0

Total 80 100.0 100.0

20% respondents agreed with the statement, 12.5% strongly agreed, 25% were in neutral

position. 22.5% disagreed and 20% strongly disagreed. So most of them are dissatisfied

with service fee.

46

There should be more outlets of Berger


Cumulative

Percent

Valid Disagree 6 7.5 7.5 7.5

Neutral 22 27.5 27.5 35.0

Agree 32 40.0 40.0 75.0

strongly agree 20 25.0 25.0 100.0

Total 80 100.0 100.0

40% respondents agreed with the statement, 10% strongly agreed, 27.5% were in neutral

position. 7.5% disagreed and nobody strongly disagreed. So most of the respondents

agreed there should be more outlets.

47

Salespersons in the Berger Paints outlets are friendly and helpful


Cumulative

Percent


disagree 18 22.5 22.5 45.0

neutral 20 25.0 25.0 70.0

agree 14 17.5 17.5 87.5

strongly agree 10 12.5 12.5 100.0

Total 80 100.0 100.0

17.5% respondents agreed with the statement, 12.5% strongly agreed, 25% were in

neutral position. 22.5% disagreed and 22.5% strongly disagreed. So most of the

respondents think sales people are not friendly and helpful.

48

The quality of Berger product is better than other competitors?


Cumulative

Percent


disagree 22 27.5 27.5 35.0

neutral 14 17.5 17.5 52.5

agree 26 32.5 32.5 85.0

strongly agree 12 15.0 15.0 100.0

Total 80 100.0 100.0

16% respondents agreed with the statement, 5% strongly agreed, 25% were in neutral

position. 20% disagreed and 10% strongly disagreed. So most of the respondents think

quality is better than other brands.

49

The price of Berger product is higher than other competitors?


Cumulative

Percent


disagree 16 20.0 20.0 37.5

neutral 20 25.0 25.0 62.5

agree 22 27.5 27.5 90.0

strongly agree 8 10.0 10.0 100.0

Total 80 100.0 100.0

27.5% respondents agreed with the statement, 10% strongly agreed, 25% were in neutral

position. 20% disagreed and 17.5% strongly disagreed. So the respondents are equal in

opinion about the price.

50

The process of Berger Color Bank is very helpful


Cumulative

Percent


Disagree 12 15.0 15.0 30.0

Neutral 18 22.5 22.5 52.5

agree 28 35.0 35.0 87.5

strongly agree 10 12.5 12.5 100.0

Total 80 100.0 100.0

35% respondents agreed with the statement, 12.5% strongly agreed, 22% were in neutral

position. 15% disagreed and 15.5% strongly disagreed. So most of the respondents think

the process is helpful.

51

I will definitely purchase Berger product again


Cumulative

Percent


Disagree 14 17.5 17.5 32.5

Neutral 18 22.5 22.5 55.0

Agree 22 27.5 27.5 82.5

strongly agree 14 17.5 17.5 100.0

Total 80 100.0 100.0

27.5% respondents agreed with the statement, 17.5% strongly agreed, 22.5% were in

neutral position. 17.5% disagreed and 15% strongly disagreed. So most of the

respondents think the will buy Berger again.

52

12

14

18

22

14strongly disagree

disagree

neutral

agree

strongly agree

Overall I am satisfied with Berger product and Services


Cumulative

Percent


disagree 20 25.0 25.0 37.5

neutral 18 22.5 22.5 60.0

agree 16 20.0 20.0 80.0

strongly agree 16 20.0 20.0 100.0

Total 80 100.0 100.0

20% respondents agreed with the statement, 20% strongly agreed, 22.5% were in neutral

position. 25% disagreed and 12.5% strongly disagreed. So most of the respondents are

overall satisfied with Berger products and services.

53

Mean: The mean of a data set is simply the arithmetic average of the values in the set, obtained by summing the values and dividing by the number of values. The mean is a measure of the center of the distribution.

Variance and Standard Deviation: The variance of a data set is the arithmetic average of the squared differences between the values and the mean. The standard deviation is the square root of the variance. The variance and the standard deviation are both measures of the spread of the distribution about the mean.

(Mean, Variance and Standard Deviation of question no 14-23)

54

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation Variance

I am satisfied with the quality

of Berger products

80 1 5 3.33 1.220 1.488

I am satisfied with the price of

Berger products

80 1 5 2.93 1.376 1.893

I am satisfied with the Service

fee for Berger home Décor

80 1 5 2.83 1.310 1.716

There should be more outlets

of Berger

80 2 5 3.83 .897 .804

Salespersons in the Berger

Paints outlets are friendly and

helpful

80 1 5 2.75 1.326 1.759

The quality of Berger product

is better than other

competitors

80 1 5 3.20 1.216 1.478

The price of Berger product is

higher than other competitors

80 1 5 2.93 1.261 1.589

The process of Berger Color

Bank is very helpful

80 1 5 3.15 1.264 1.597

I will definitely purchase

Berger product again

80 1 5 3.15 1.323 1.749

Overall I am satisfied with

Berger products and services

80 1 5 3.10 1.327 1.762

Valid N (listwise) 80

55

Cross Tabulation:To analyze the relationship between the variables and the categories I have used Chi-

Square Tests of crosstabs. By using Chi-Square Tests of crosstabs I have tried to find out

whether the variables have a relationship or not. Here the condition is if the P value is

less than the α where the α = 0.05 then the variables have a relationship. Here the P

value is the Asymp. Sig. (2-sided) value of Pearson Chi-Square under Chi-Square Tests.

In the following I am giving the crosstabs test results and analysis of each of them:

1. Null Hypothesis: “The most influential factor for selecting Berger” and “You are

dissatisfied with which factor(s) of Berger products” are independent

Alternative: ““The most influential factor for selecting Berger” and “You are

dissatisfied with which factor(s) of Berger products” are related.

Crosstabulation

Count

You are dissatisfied with which factor of Berger products

Totalquality price availability packaging quantity

The most

influential

factor

for

selecting

Berger

Price 6 0 0 0 0 6

Quality 2 14 6 2 2 26

Both Price & Quality 0 6 8 4 4 22

Reputation 4 4 6 4 0 18

Availability 6 0 2 0 0 8

Total 18 24 22 10 6 80

56

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 55.459a 16 .000

Likelihood Ratio 57.926 16 .000

Linear-by-Linear Association .031 1 .860

N of Valid Cases 80

a. 19 cells (76.0%) have expected count less than 5. The minimum

expected count is .45.

Interpretation

Here, p-value (.000) < α (.05), hence we reject the null hypothesis and accept the

alternative. Therefore we can say that, The most influential factor for selecting

Berger” and “You are dissatisfied with which factor(s) of Berger products” are

related.

2. Null Hypothesis: “The most influential factor for selecting Berger” and “I am

satisfied with the quality of Berger products” are independent

Alternative: “The most influential factor for selecting Berger” and “I am satisfied

with the quality of Berger products” are related.

57

The most influential factor for selecting Berger * I am satisfied with the quality of Berger products Crosstabulation

Count

I am satisfied with the quality of Berger products

Totalstrongly disagree disagree neutral agree strongly agree

The most

influential factor

for selecting

Berger

Price 2 4 0 0 0 6

Quality 0 0 6 10 10 26




Total 6 16 20 22 16 80

Chi-Square Tests

Value Df

Asymp. Sig. (2-

sided)



Linear-by-Linear Association 6.347 1 .012

N of Valid Cases 80

a. 19 cells (76.0%) have expected count less than 5. The minimum expected

count is .45.

Interpretation



Berger” and “I am satisfied with the quality of Berger products” are related.

58

3. Null Hypothesis: “The most influential factor for selecting Berger” and “I am

satisfied with the price of Berger products” are independent

Alternative: “The most influential factor for selecting Berger” and “I am satisfied

with the price of Berger products” are related.

The most influential factor for selecting Berger * I am satisfied with the price of Berger products Crosstabulation

Count

I am satisfied with the price of Berger products

Totalstrongly disagree disagree neutral agree

strongly

agree

The most

influential factor

for selecting

Berger

Price 0 0 0 4 2 6

Quality 8 12 2 2 2 26




Total 14 22 14 16 14 80

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)




N of Valid Cases 80


count is 1.05.

59

Interpretation


alternative. Therefore we can say that, “The most influential factor for selecting

Berger” and “I am satisfied with the price of Berger products” are related.

4. Null Hypothesis: “The most influential factor for selecting Berger” and “The

quality of Berger product is better than other competitors” are independent

Alternative: “The most influential factor for selecting Berger” and “The quality of

Berger product is better than other competitors” are related.

The most influential factor for selecting Berger * The quality of Berger product is better than other

competitors Crosstabulation

Count

The quality of Berger product is better than other competitors

Totalstrongly disagree disagree neutral Agree strongly agree

The most

influential

factor for

selecting

Berger

Price 2 2 2 0 0 6

Quality 2 2 4 10 8 26

Both Price

& Quality

0 0 2 16 4 22



Total 6 22 14 26 12 80

60

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)




N of Valid Cases 80


count is .45.

Interpretation



Berger” and “The quality of Berger product is better than other competitors” are

related.

5. Null Hypothesis: “The most influential factor for selecting Berger” and “The price

of Berger product is higher than other competitors” are independent

Alternative: “The most influential factor for selecting Berger” and “The price of

Berger product is higher than other competitors” are related

61

The most influential factor for selecting Berger * The price of Berger product is higher than other competitors

Crosstabulation

Count

The price of Berger product is higher than other competitors


The most

influential

factor for

selecting

Berger

Price 2 4 0 0 0 6

Quality 8 6 10 2 0 26




Total 14 16 20 22 8 80

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)




N of Valid Cases 80


count is .60.

Interpretation


alternative. Therefore we can say that, “The most influential factor for selecting

Berger” and “The price of Berger product is higher than other competitors” are

related.

62

6. Null Hypothesis: “The sales centers of Berger paints are convenient to you” and

“There should be more outlets of Berger” are independent

Alternative: “The sales centers of Berger paints are convenient to you” and “There

should be more outlets of Berger” are related

Sale_center * There should be more outlets of Berger Crosstabulation

Count

There should be more outlets of Berger

Totaldisagree neutral agree strongly agree

Sale_center yes 6 14 20 8 48

no 0 8 12 12 32

Total 6 22 32 20 80

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)




N of Valid Cases 80


expected count is 2.40.

63

Interpretation

Here, p-value (.057) > α (.05), hence we accept the null hypothesis and reject the

alternative. Therefore we can say that, “The sales centers of Berger paints are

convenient to you” and “There should be more outlets of Berger” are independent.

7. Null Hypothesis: “Satisfaction level with Berger home Décor service” and “I am

satisfied with the Service fee for Berger home Décor” are independent

Alternative: “Satisfaction level with Berger home Décor service” and “I am satisfied

with the Service fee for Berger home Décor” are related.

Satisfaction * I am satisfied with the Service fee for Berger home Décor Crosstabulation

Count

I am satisfied with the Service fee for Berger home Décor


Satisfaction Highly Satisfied 0 0 0 2 2 4

Satisfied 0 0 4 2 4 10

Moderate 0 0 2 2 0 4

Dissatisfied 0 4 0 0 0 4

N/A 16 14 14 10 4 58

Total 16 18 20 16 10 80

64

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)




N of Valid Cases 80


expected count is .50.

Interpretation


alternative. Therefore we can say that, “Satisfaction level with Berger home Décor

service” and “I am satisfied with the Service fee for Berger home Décor” are related.

One Sample T-Test:One sample t-test is a statistical procedure that is used to know the mean difference

between the sample and the known value of the population mean. In one sample t-test, we

know the population mean. We draw a random sample from the population and then

compare the sample mean with the population mean and make a statistical decision as to

whether or not the sample mean is different from the population.

I want to know whether the mean of the variables differ from a hypothesized mean. Here,

I have taken hypothesized mean = 4. From the responses of my sample, I can see that, 4

denote agreeing with the positive statements.(For question no: 14,15,16,18,19,21,22,23)

Null Hypothesis: µ = 4

Alternative Hypothesis: µ ≠ 4We can calculate the value of the one sample t-test, by using this formula:

65

Where, t = one sample t-test

= population meanS = Standard deviation for one sample t-test

= Sample meann = number of observations in sample

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean


of Berger products

80 3.33 1.220 .136

I am satisfied with the price of

Berger products

80 2.93 1.376 .154

I am satisfied with the Service

fee for Berger home Décor

80 2.83 1.310 .146



helpful

80 2.75 1.326 .148



competitors

80 3.20 1.216 .136



80 3.15 1.264 .141



80 3.15 1.323 .148



80 3.10 1.327 .148

66

One-Sample Test

Test Value = 4

95% Confidence Interval of the

Difference

t df Sig. (2-tailed) Mean Difference Lower Upper


of Berger products

-4.949 79 .000 -.675 -.95 -.40

I am satisfied with the price

of Berger products

-6.988 79 .000 -1.075 -1.38 -.77

I am satisfied with the

Service fee for Berger home

Décor

-8.023 79 .000 -1.175 -1.47 -.88


Paints outlets are friendly

and helpful

-8.429 79 .000 -1.250 -1.55 -.95



competitors

-5.885 79 .000 -.800 -1.07 -.53



-6.015 79 .000 -.850 -1.13 -.57



-5.748 79 .000 -.850 -1.14 -.56



-6.064 79 .000 -.900 -1.20 -.60

Analysis:

From the above table we can see that, all the variables have p-value less than 0.05. So, we

reject the null hypothesis and can conclude that, the mean is not as hypothesized

(4=”Agree”). 95% Confidence Interval of the Difference for each variable is also given in

the upper and lower columns. A confidence interval for the difference between two

means specifies a range of values within which the difference between the means of the

67

two populations may lie. The width of the confidence interval gives us some idea about

how uncertain we are about the unknown population parameter, in this case the mean. A

very wide interval may indicate that more data should be collected before anything very

definite can be said about the parameter.

Independent Sample T testThe Independent Samples T Test compares the mean scores of two groups on a given

variable.

Hypotheses-Null: The means of the groups of male and female who answered for there should be

more outlets of Berger are not significantly different.

Alternate: The means of the groups of male and female who answered for there should

be more outlets of Berger are significantly different.

Group Statistics

Gender N Mean Std. Deviation Std. Error Mean

There should be more outlets

of Berger

Male 58 4.00 .838 .110

Female 22 3.36 .902 .192

Independent Samples Test

Levene's Test for Equality of

Variances t-test for Equality of Means

F Sig. T df Sig. (2-tailed) Mean Difference

There

should be

more

outlets of

Berger

Equal variances assumed 1.101 .297 2.971 78 .004

Equal variances not

assumed

2.872 35.581 .007

68

Analysis:

We see the Levene's Test for Equality of Variances tells us if we have met our second assumption (the two groups have approximately equal variance on the dependent variable). Here, we see that the significance is .297, which is greater than .05. We can assume that the variances are approximately equal.

Finally, we see the results of the Independent Samples T Test. Based on the results of our Levene's test, we know that we have approximately equal variance, so we will read the top line.

Our T value is 2.971

We have 78 degrees of freedom.

There is a significant difference between the two groups (the significance is less than .05).

Therefore, we can say that the means of the groups of male and female who answered for there should be more outlets of Berger are significantly different.

Correlation

Pearson correlationA Pearson correlation measures the strength of the linear relationship between two continuous variables. A linear relationship is one that can be captured by drawing a straight line on a scatterplot between the two variables of interest. The value of the correlation provides information both about the nature and the strength of the relationship.

Correlations range between -1.0 and 1.0. The sign of the correlation describes the direction of the relationship. A positive

sign indicates that as one variable gets larger the other also tends to get larger, while a negative sign indicates that as one variable gets larger the other tends to get smaller.

The magnitude of the correlation describes the strength of the relationship. The further that a correlation is from zero, the stronger the relationship is between the two variables.

A zero correlation would indicate that the two variables aren’t related to each

other at all.

69

To perform a Pearson correlation in SPSS I used Bivariate test in this section.

I selected three variables for the test. The variables are “The quality of Berger product is better than other competitors” (Q19), “I will definitely purchase Berger product again” (Q22), and “Overall I am satisfied with Berger products and services” (23)


Mean Std. Deviation N



competitors

3.20 1.216 80



3.15 1.323 80



3.10 1.327 80

70

Correlations

The quality of

Berger product is

better than other

competitors

I will definitely

purchase Berger

product again

Overall I am

satisfied with

Berger products

and services



competitors

Pearson Correlation 1 .343** .427**

Sig. (2-tailed) .002 .000

N 80 80 80



Pearson Correlation .343** 1 .727**

Sig. (2-tailed) .002 .000

N 80 80 80



Pearson Correlation .427** .727** 1

Sig. (2-tailed) .000 .000

N 80 80 80

**. Correlation is significant at the 0.01 level (2-tailed).

Analysis:We can see, Sig. (2-tailed) level is less than .05 in each case. That means correlation is

significant. The Pearson Correlation figure indicates the strength and direction of the

relation. For example, “Overall I am satisfied with Berger products and services” has

very strong and positive correlation with “I will definitely purchase Berger product

again”.

ANALYSIS OF VARIANCE (ANOVA)

A one-way between-subjects ANOVA determines if there is a relationship between a

categorical independent variable (IV) and one or more continuous dependent variable

(DV), where each subject is only in one level of the IV. To determine whether there is a

relationship between the IV and the DV, a one-way between-subjects ANOVA tests

71

whether the means of all of the groups are the same. If there are any differences among

the means, it means the value of the DV depends on the value of the IV.

I selected four dependent variables and one independent variable (The quality of Berger

product is better than other competitors)

The answers of the questions I selected as dependent variables:

o Which Berger product category you usually buy?

o The most influential factor for selecting Berger

o You are dissatisfied with which factor(s) of Berger products?

o Will you recommend Berger to others?

Test result and analysis is shown in the next page-

72

ANOVA

Sum of Squares df Mean Square F Sig.

The most influential factor

for selecting Berger

Between Groups 30.114 4 7.528 8.102 .000

Within Groups 69.686 75 .929

Total 99.800 79

You are dissatisfied with

which factor of Berger

products

Between Groups 28.697 4 7.174 6.463 .000

Within Groups 83.253 75 1.110

Total 111.950 79

Will you recommend

Berger to others

Between Groups 5.676 4 1.419 1.418 .236

Within Groups 75.074 75 1.001

Total 80.750 79

Which Berger product

category you usually buy

Between Groups 7.983 4 1.996 5.592 .001

Within Groups 26.767 75 .357

Total 34.750 79

From ANOVA it was found that the level of being agreed with the statement “The

quality of Berger product is better than other competitors” significantly differed

among different groups who answered for most influential factors (0.000<0.05)

dissatisfying factors (0.000<0.05), and product category-wise customers (0.001<0.05). In

terms of the consumers who will or will not recommend Berger to others, the result is not

significantly (0.236>.05) differed.

73

Regression analysis:

Regression is a statistical tool that allows us to predict the value of one continuous

variable from one or more other variables. When we perform a regression analysis, we

create a regression equation that predicts the values of our Dependent Variable using the

values of our Independent Variable(s). Each Independent Variable is associated with

specific coefficients in the equation that summarizes the relationship between that

Independent Variable and the Dependent variable.

Simple Linear Regression

Simple Linear regression is used to specify the nature of the relation between two

variables. I tested if the value for variable “I will definitely purchase Berger product

again” can predict the dependent variable “Overall I am satisfied with Berger

products and services” with linear regression.

Test Results:


Mean Std. Deviation N



3.10 1.327 80



3.15 1.323 80

The Descriptive Statistics part of the output gives the mean, standard deviation, and

observation count (N) for each of the dependent and independent variables. For example,

the "Overall I am satisfied with Berger products and services” variable has a mean value of 3.10

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Correlations

Overall I am

satisfied with

Berger products

and services

I will definitely

purchase Berger

product again

Pearson Correlation Overall I am satisfied with


1.000 .727



.727 1.000

Sig. (1-tailed) Overall I am satisfied with


. .000



.000 .

N Overall I am satisfied with


80 80



80 80

The Correlations part of the output shows the correlation coefficients. This output is organized differently than the output from the correlation procedure. The first row gives the correlations between the independent and dependent variables. The correlation between "Overall I am satisfied with Berger products and services " and I will definitely purchase Berger product again is .727 which is positive and very strong.

The next row gives the significance of the correlation coefficients. Here its .000<.05. It means relation is very significant.

The last row gives the number of observations for each of the variables, and the number of observations that have values for all the independent and dependent variables which is 80.

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Variables Entered/Removedb

Model

Variables

Entered

Variables

Removed Method

1 I will definitely

purchase Berger

product againa

. Enter

a. All requested variables entered.

b. Dependent Variable: Overall I am satisfied with Berger

products and services

The Variables Entered/Removed part of the output simply states which independent

variables are part of the equation and what the dependent variable is.

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .727a .528 .522 .918

a. Predictors: (Constant), I will definitely purchase Berger product again

The Model Summary part of the output is most useful during multiple regression.

Capital R is the multiple correlation coefficient that tells us how strongly the multiple

independent variables are related to the dependent variable. In the simple bivariate case,

R = | r | (multiple correlation equals the absolute value of the bivariate correlation.)

R square =.528 means 52.8% variability in dependent variable (Overall I am satisfied

with Berger products and services) is explained by the independent variable (I will

definitely purchase Berger product again).

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ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 73.521 1 73.521 87.314 .000a

Residual 65.679 78 .842

Total 139.200 79

a. Predictors: (Constant), I will definitely purchase Berger product again

b. Dependent Variable: Overall I am satisfied with Berger products and services

ANOVA table basically tells us whether the regression equation is explaining a

statistically significant portion of the variability in the dependent variable from variability

in the independent variables.

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) .802 .266 3.012 .003



.729 .078 .727 9.344 .000

a. Dependent Variable: Overall I am satisfied with Berger products and services

The Coefficients part of the output gives us the values that we need in order to write the

regression equation. The regression equation will take the form:

Predicted variable (dependent variable) = slope * independent variable + interceptFrom the table: Slope= 0.729, Intercept= 0.802

Putting it all together, the regression equation is:

Predicted variable (Overall I am satisfied with Berger products and services) = 0.729 * Value of

independent variable (I will definitely purchase Berger product again) + 0.802

Multiple Regression 1.

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To analyze multiple regression, I assumed that customer satisfaction with the products

and services of Berger Paints Bangladesh Ltd. depends on four variables- satisfaction

level with the quality, attitude towards the behavior of sales persons, towards the process

of Berger Color Bank and intension towards re-purchase. The questions regarding the

variables are:

1. I am satisfied with the quality of Berger products (P)

2. Salespersons in the Berger Paints outlets are friendly and helpful (S)

3. The process of Berger Color Bank is very helpful (C)

4. I will definitely purchase Berger product again (R)

So for the analysis, I came up with the following model:CS = 01 Pi+ 2Si+ 3Ci+ 4Ri+ €i

Here, CS= Customer satisfaction level, = Constant, €i =The error in prediction for case i.

Test Result

Coefficientsa

Model


Standardized

Coefficients


1 (Constant) .001 .370 .002 .999


of Berger products

.120 .084 .110 1.425 .158



helpful

.006 .072 .006 .080 .936



.342 .091 .326 3.761 .000



.510 .088 .508 5.781 .000


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Analysis:

So I found that customer satisfaction level has significant positive relation (P<.05) with two variables- Attitude towards the process of Berger Color Bank(C) and intension towards re-purchase(R). Other two variables (P and S) do not have significant relation with the variable customer satisfaction.

Model Summaryb

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .789a .622 .602 .837

a. Predictors: (Constant), I will definitely purchase Berger product

again, Salespersons in the Berger Paints outlets are friendly and

helpful, I am satisfied with the quality of Berger products, The process

of Berger Color Bank is very helpful

b. Dependent Variable: Overall I am satisfied with Berger products and

services

R squared was found 62.2% which is highly acceptable and shows a good fitness of the model.

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The graph is the normal probability plot of the regression model I came up with SPSS.

From the graph, it is clearer that the model fits nicely along the straight line. This means

that the data set is normally distributed and that the model fulfills the normality

assumption.

To compare the model more accurately I dropped the insignificant variables and started

the regression process again with only two variables(C and R) that were found with

significant relationship with customer satisfaction level.

Test Result (With significant variables)

Model Summaryb

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .782a .612 .602 .837

a. Predictors: (Constant), I will definitely purchase Berger product

again, The process of Berger Color Bank is very helpful


services

ANOVAb


1 Regression 85.195 2 42.598 60.736 .000a

Residual 54.005 77 .701

Total 139.200 79

a. Predictors: (Constant), I will definitely purchase Berger product again, The process of Berger

Color Bank is very helpful


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Coefficientsa

Model


Standardized

Coefficients


1 (Constant) .256 .278 .922 .359



.363 .089 .346 4.080 .000



.540 .085 .538 6.342 .000


The modified regression model shows expected relation with dependent variable but the

fitness of the model is not better the previous model. Here, the R squared is found 61.2%

which is less than previous one. So the first regression model is more precise.

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Multiple Regression 2.To analyze the impact of more independent variables on the dependent variable customer

satisfaction level I used Multiple Regression again. By using it I have tried to find out the

percentage of impact of independent variables on the dependent variable.

For the test I have chosen three independent categories and tried to find out the impact on

the dependent variable. The three independent categories are:

1. Gender

2. Age

3. Monthly income

Dependent variable: Overall I am satisfied with Berger products and services

Test Result

Variables Entered/Removed

Model

Variables

Entered

Variables

Removed Method

1 Income, Gender,

Agea

. Enter

a. All requested variables entered.

Model Summaryb

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .326a .106 .071 1.279

a. Predictors: (Constant), Income, Gender, Age


services

82

R square =.106 means only 10.6% variability in dependent variable (Overall I am

satisfied with Berger products and services) is explained by the independent variables

(Income, Gender and Age).

ANOVAb


1 Regression 14.804 3 4.935 3.015 .035a

Residual 124.396 76 1.637

Total 139.200 79

a. Predictors: (Constant), Income, Gender, Age


F=3.015, Sig=.035< 0.05 suggests result is significant.

Coefficientsa

Model


Standardized

Coefficients


1 (Constant) 2.796 .622 4.494 .000

Gender -.433 .321 -.147 -1.350 .181

Age .066 .217 .033 .303 .763

Income .370 .137 .295 2.705 .008


The "Sig." column on the "Coefficients" table presents the statistical significance of that

variable given all the other variables have been entered into the model. Income is the only

statistically significant variable in this table.

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Dropping the insignificant variables the test results:

Model Summaryb

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .289a .084 .072 1.279

a. Predictors: (Constant), Income


services

R Square is lower than the previous one. So the previous model is more

significant.

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Discussion: From regression we found that age, gender or income does not influence customer

satisfaction level. Rather it’s the attitude towards the re-purchase of Berger products and

the color bank service of the company. So Berger should pay more attention to the

process and make it available more in different parts of the country. Income has also a

role in customer satisfaction level.

From ANOVA we found that, there are significant difference exists between the groups

of product category and respondents who answered for satisfying and dissatisfying

factors in terms of product quality compare to other competitors.

From crosstabulation, we found that most dissatisfying factor and most influential factors

are related. So Berger should work with the dissatisfying factor which is price. Most of

the respondents think its high. But they are satisfied with the quality. So Berger should

maintain the price with its quality. It was also found that people compare Berger with

competitors. So to be the leader of market Berger should always be aware of the fact that

there are other competitors who might attack Berger’s market share.

Moreover, frequency analysis also suggests respondents are dissatisfied with the

behaviors of salespersons of Berger. They think they are not as helpful and friendly as

they should be. They are a very important part of the service. So it must be in

consideration of Berger.

Frequency analysis and correlation also suggest that Berger Home décor service fee and

product price are not satisfactory enough for respondents. The service fee is very much

related to the satisfaction level with Berger Home Décor service.

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Recommendations:

Based on the research and the discussion part I have come up with some

recommendations for Berger Paints Bangladesh Limited. Since Color Bank is a

competitive advantage for Berger till now, they must focus more on Berger Color Bank

process and try to expand the facility more around the country. Satisfying customers are

the only way to stay competitive in today's marketplace. The balancing act between what

customers want and what the company can provide must be optimized in order to

maximize company’s long-term profits. Customer satisfaction depends both on the

product attributes and service attributes. It has been identified in the research that

customers are satisfied with the quality, but price is still high for them. So for the sake of

customer satisfaction and rapid market growth Berger need to set more reasonable and

customer focused price. Same goes for the service fee. As the satisfaction level of service

is related with the fee, they should consider a lower fee for Berger Home décor service.

Along with price reduction, Berger needs to train its sales people and select employees

more carefully for the job. Product category wise strategy should also be applied to gain

more customer satisfaction.

Apart from my survey results, I also found some suggestions and recommendations from

the respondents during face to face conversation. They suggested for home delivery

service and free consulting service about the decoration of home. Customers are quite

satisfied with the product quality, but they want some value additions like warranty and

money back guarantee. They also expect some price discount and gift coupon options.

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Limitations:

The main problem faced in preparing the report was the inadequacy and lack of

availability of required data. I faced the following limitations while doing the project:

Difficulty in accessing latest data of internal operations.

To continue study in such a vast are requires a big deal in time. Report making

after the job period was tough to furnish the big report.

The findings of the survey were based on customers’ responses of Dhaka City.

The result may not reflect the same for the other cities located outside of the

Dhaka City.

Inadequate access to company information.

The sample size may not represent the total population.

Conclusion:

Berger Paints Bangladesh Limited has always been trying to fulfill customers’

expectations. I hope the recommendations I came up with the research will be helpful for

the company and the industry to meet and understand customers need more accurately.

Berger Color Bank created a competitive position for the company. So they must focus

on the process more. Since customer satisfaction depends both on the product attributes

and service attributes Berger can never deny either of these two attributes. Quality is the

key factor that makes Berger the best in the market. But price is also important for the

customers. So Berger need to set more reasonable and customer focused price and service

fees. Moreover, with more and more innovation in the paint industry, Berger needs to

invest more in R & D department as it can locate so many factors related to customer

satisfaction.

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REFERENCES

Boulding, W, Kalra, A.,, Staelin, R., Zeithaml, V.A., 1993, "A dynamic process model ofservice quality: from expectations to behavioural intentions", Journal of Marketing Research, 30, 7-27.

Cardozo, R.N, 1965, "An experimental study of consumer effort, expectation andsatisfaction", Journal of Marketing Research, 2, 244-9.

Churchill, G.A, Surprenant, C, 1982, "An investigation into the determinants of customersatisfaction", Journal of Marketing Research, XIX, 491-504.

Brassington, Frances and Stephen Pettitt. Principles of Marketing. 2nd ed. Prentice Hall (2000), pp. 858

Campbell, David and Tom Craig. Organisations and the Business Environment. Butterworth-Heinemann (2005), pp 447-449

Dabholkar, P. A., & Thorpe, D. 1. (1994), Does customer satisfaction predict shopperintentions, Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, 7(291), 161-71.

Howard, J.A, Sheth, J.N, 1969, The Theory of Buyer Behavior, John Wiley & Sons, NewYork, NY.

Oliver, R.L, 1977, "Effects of expectation and disconfirmation on post-exposure productevaluations: an alternative interpretation", Journal of Applied Psychology, 62, 4,480-86.

Marketing Management, 11th Edition, by Philip Kotler

Business Research Methods, 8th Edition, by Donald R. Cooper & Pamela S. Schindler

Business Research Methods, 7th Edition, by William G. Zikmund.

http://www.bergerbd.com

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my intern report final.doc

Documents

customer kotler

customer surveys

satisfied customers

overall customer attitude

market operators

market size

market leadership

importance of customers