A PROJECT REPORT

ON

CORPORATE SELLING AND MARKETING OF INDUSTRIAL PAINTS AT SHINE PAINTS

Submitted by

Somvanshi Patil Pravin V

CMRIT Bangalore

MBA (Marketing), USN: 1CR09MBA88

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INDUSTRY PROFILE

The size of the paints market in India is estimated at Rs 110 bn., with the contribution of the organized and unorganized segments in the ratio of 65:35. Reduction of excise duties over the last few years, from 40% to the present level of 14%, has helped create a level playing field between the unorganized and the organized segments, as the former is not subject to excise duty. As the unorganized sector loses its competitive edge, it is also losing market share to the organized sector players.

In view of the low per capita annual consumption of paints in India (0.5 kg, compared to 22 kg in developed countries and a global average of 15 kg), the domestic paints industry has tremendous potential.

The paints industry is working-capital intensive, rather than fixed-asset intensive. As in consumer non-durables, distribution strengths and brand building are of paramount importance.

On product lines, paints can be differentiated into decorative or architectural paints and industrial paints. While the former caters to the housing sector, the automotive segment is a major consumer of the latter. Decorative paints can further be classified into premium, medium and distemper segments. Premium decorative paints are acrylic emulsions used mostly in the metros. The medium range consists of enamels, popular in smaller cities and towns. Distempers are economy products demanded in the suburban and rural markets. Nearly 20 per cent of all decorative paints sold in India are distempers and it is here that the unorganized sector has dominance. Industrial paints include powder coatings, high performance coating and automotive and marine paints. But two-thirds of the industrial paints produced in the country are automotive paints.

Decorative and industrial paints are the segments within the sector, in a 70:30 proportion. Brand equity, a wide range of shades, distribution strength and efficient working capital management are key success factors in the decorative paints segment. A strong distribution network acts as an entry barrier .Within the decorative segment, enamel is the largest sub-segment, accounting for over 50%, followed by wall finishes, primers and wood finishes. The season for decorative paints is from October to March, a period characterized by festivals like Diwali, and the summer, when painting is normally carried out.

The industrial segment pertains mainly to automobiles. In this segment, technological competence, product range and customized solutions are of utmost importance. Technological strength is another entry barrier. The slowdown in the automobile sector has affected the overall growth of the industrial segment, as the former contributes around 50% of the latter's revenues.

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Other sub-segments are marine paints, powder coatings for white goods like refrigerators and washing machines, and industrial coatings .Within the paints sector, the proportion of the industrial paints segment is likely to increase in the next few years and the ratio is likely to become 50:50..

The share of industrial paints in the total paint consumption of the nation is very low compared to global standards. It accounts for 30 per cent of the paint market with 70 per cent of paints sold in India for decorative purposes. In most developed countries, the ratio of decorative paints vis-a-vis industrial paints is around 50:50. But, with the decorative segment bottoming out, companies are increasingly focusing on industrial paints. The future for industrial paints is bright. In the next few years, its share would go up to 50 per cent, in line with the global trend.

Decorative Sector Composition

Enamels 50%

Distemper 19%

Emulsions 17%

Exterior Coatings 12%

Wood Finishes 2%

Decorative Sector Features

Enamels Steady growth. These are oil based paints which are widely used for painting on all surfaces including walls, wood and metals. They also find application in painting of hoardings and signboards and repainting of commercial vehicles.

Emulsions Shift from distemper and enamels to emulsions. High growth area. These are premium quality oil based wall paints.

Distempers High growth in low priced low quality distempers as consumers are upgrading from lime wash. These are water based wall paints priced at a much lower range than the above two.

Exteriors Exterior emulsion fastest growing segment in the Indian Paint market.

Industrial Sector Composition

Automotive Paints - 50%

High Performance Coating - 30%

Powder Coating - 10%

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Coil Coating - 5%

Marine Paints - 5%

Automotive Sector

High growth sector with a number of new entrants like Mercedes Benz, Mitsubishi, Daewoo, Hyundai, Honda, Fiat, General Motors, Ford. However, recently there is some slackness in Auto demands. Two wheeler market booming due to demand from large Indian middle class. Asian Paints is the leading OEM players and ICI is the leading player in the replacement market

Powder Coatings:

Increase growth due to increased sales of white goods and auto ancillaries. Berger and Good lass lead in this solid powder coating segment used for decoration and protection of white goods, electronic equipment and auto components.

High Performance Coatings

Steady growth due to increase investments in refinery segment and power sectors, particularly Thermal and Nuclear.

Coil There are approximately 1000-5000 employees or staffs. Out of this, 55 employees are

those who work in the corporate office at Bangalore. The coordination between the staff member is

good which make the organization effective. This also helps the company to work in a better way.

Every staff knows there work and they do all the work on time and systematically according to the

order of head of department.

Coatings:

Solvent based paints for sheets and coils. ICI and Asian Paints lead this segment.

Marine:

Shalimar and Bombay Paints are the major players in these anti-corrosive, underwater paints used for ships and containers.

Chemicals:

These high performance paints are used in fertilizers, petrochemicals etc. for prevention of corrosion.

GNPL dominates the industrial paints segment with 41 per cent market share. It has a lion's share of 70 per cent in the OEM passenger car segment, 40 per cent share of two wheeler OEM market and 20 per cent of commercial vehicle OEM market. It supplies 70

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per cent of the paint requirement of Maruti, India's largest passenger car manufacturer, besides supplying to other customers like Telco, Toyota, Hindustan Motors, Hero Honda, TVS-Suzuki, Mahindra & Mahindra, Ashok Leyland, Ford India, PAL Peugeot and Bajaj Auto. GNPL also controls 20 per cent of the consumer durables segment with clients like Whirlpool and Godrej GE. The company is also venturing into new areas like painting of plastic, coil coatings and cans. APIL, the leader in decorative paints, ranks a poor second after Goodlass Nerolac in the industrial segment with a 15 per cent market share. But with its joint venture Asian-PPG Industries, the company is aggressively targeting the automobile sector. It has now emerged as a 100 per cent OEM supplier to Daewoo, Hyundai, Ford and General Motors and is all set to ride on the automobile boom. Berger and ICI are the other players in the sector with 10 per cent and 9 per cent shares respectively. Shalimar too, has an 8 per cent share.

Raw Material scenario:

The paint industry is raw material-intensive, in terms of value and quantity of raw materials used. Raw material costs account for around 70% of total production costs. Imports constitute around 30% of the raw material requirements. The most critical raw materials used are titanium dioxide (TD) , phthalic anhydride (PAN) and pentaerithrithol (PENTA). Some other raw materials like castor oil, soya bean oil, linseed oil and mineral turpentine are also used. Increasing prices of raw materials, on the one hand, and the inability to pass on the price increases from recession and competitive pressure, on the other, are major areas of concern. Of the 300 raw materials (30% petro-based derivatives), nearly half of them are imported petroleum products. Thus, any deficit in global oil reserves affects the bottom line of the players.

2) COMPANY PROFILE

a) Background and inception of the company

Shine Paints started its working as paint manufacturing company in 1997.The product range of company includes all types of industrial paints and other components required for industrial use which includes different kind of thinners and heat proof paints. This year company is taking intensive efforts for ISO certification and company is planning to open start new state of the art plant.

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Along with the production unit company has its own research and testing laboratory which is capable of testing new products and preparing products with specific combination as per requirement of the customers.

b) Vision, Mission, Quality Policy

The company has a long term vision to become the” Leading paint manufacturing company in India”. The primary underlying business philosophy of the organization is “do only that which you do best” as a result the entire business growth and future expansion plan are cantered

around “Core Competence” of customized products to cater the specific needs of the buyers at competitive price.

c) Nature of the business carried:

Shine paints is operating in production of industrial paints. Industrial paints are kind of paints which are mainly used by industry consumers. By producing extensive range of paints and related products the company is serving different customers. The various industries served by company can be enlisted as.

Automotive industry Home Appliance manufacturers Electrical Equipment / Components manufacturers General Industries Lighting Fixtures manufacturers Electrical / Electronic Enclosures manufacturers Construction industry

d) Product profile:

As Shine Paint pvt.Ltd is in business of different industrial paints it has wide range of product which are.

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All types of industrial Primers & Primer surfaces including ROZOC Primer, NSPS Grey & Etch Primers

All types of Synthetic & Stoving enamels including QD Enamels for touch up applications

Paints including Epoxy Based casting sealer, Grey Primer, Zinc Rich Primer & Inorganic zinc silicate coatings

Paints including PU clear coats and finish coats for Metal & Plastic surfaces. Polyurethane Based Primers

HR Paints to withstand temp up to 250 C to 650 C in Aluminium and Black.

These products are further classified as fallows.

Electrical Appliances Paint

Our products for electrical appliances are developed to protect home appliances and office equipment against rusting, food staining and household chemicals like detergents and scourers. Electrical items such as computer and telecommunication equipment benefit from the protective properties of coating systems such as the Polystylac and Superlac F/45.

Cathodic Electrodepositing Paint (CED)

Shine paints CED coat is trusted for its outstanding properties such as corrosion, humidity, chemical and abrasion resistance, and excellent adhesion. Currently, this product for HDD holds a dominant 90% share of the disk drive coating market worldwide because of its complete tin-free technology.

Road Marking Paints (thermoplasts)

Shine paints Roadline series of road markings and colored tarmac paints play a significant role in facilitating land traffic. These paints are important in creating a safer and more attractive environment in parks and commercial zones.

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Wood Finishes

These finishes are mainly used by both domestic and export market manufacturers for protecting furniture and fittings such as picture frames, decorative doors, cane work and wood panels. A variety of finished coat appearances are available, and these include clear and colured lacquers, solid and metallic, marble, stone, antique and other patterns.

Coil Coating

Coating products for metal coilings such as the Super Coat and the Steel Coat are developed to withstand rust, weathering and other corrosive elements. These paints provide excellent adherence and heavy-duty protection. This protective function is also extended to other solutions for pre-coated metal such as steel coils and sheet metal.

Marine Paints

Shine Paints offers coating systems that can withstand the ravages ocean-faring vessels are exposed to. Marine coats for all types of ships including super tankers, container ships and ferries, and help contribute to more efficient sailing and corrosion protection

Above mentioned all the products can be classified in following categories

Synthetic finish paints Stoving finishing paints Chlorinated rubber coatings Epoxy based paints and finishes Polyurethanes Speciality coating Heat resistant paints

All the products produced by company can be tabulated as follows along with their available shades and recommended uses as follows

Synthetic finish paints

Product Shade Substrate Recommended use

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Redoxide Primer Redoxide Metal General Purpose Primer for Structural steel

Redoxide Zinc Chromate Primer(IS2074)

Redoxide Metal Excellent anticorrosive primer for antibodies,pumps, valves & other fabricated parts

Red oxide Zinc phosphate Primer

Red oxide Metal Excellent anticorrosive for Exterior Structures

Zinc Chromate Primer (IS 104)

Yellow Metal Excellent anticorrosive primer for both ferrous& nonferrous metal surfaces.

Zinc Phosphate Primer

White/Grey Metal Excellent Anticorrosive primer for humid &coastal environment

HB MIO Primer Grey/ReddishBrown

Metal A high build coating with micaceous iron oxideimparts resistance to moisture & water vapour.

Quick Drying Primer Surfacer

White/Grey/Black

Metal Excellent intermediate coat for auto bodies.pumps, valves & other fabricated parts tocover surface irregularities.

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Air Drying Synthetic Enamels

White / Black / IS& RAL Shades

Metal Finish coat for machinery parts, furniture &fixtures. It gives glossy smooth & hard film.

Quick Drying Enamels

White / Black / IS& RAL Shades

Metal Quick drying finish coat. It dries very fast &gives glossy, smooth & hard finish.

Stoving finishing paints

Product Shade Substrate Recommended use

Stoving Primer Grey Metal Alkyd-amino based primer having excellentcorrosion resistance & Adhesion

Epoxy based stoving primer

Grey Metal Epoxy-amino based baking primer havingexcellent chemical & corrosion resistance

Unibake primer Grey Metal Unibake primer for wet on applicationof top coats

Stoving Paints IS/ RAL Metal Finish coat for domestic appliances, controlpanels auto bodies where baking of theproduct is possible

Epoxy base stoving Paint

Black/IS Metal Excellent adhesion, corrosion resistance &Chemical resistance.

Thermosetting Acrylic RAL/White/Black Metal Excellent adhesion,

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base

TSA clear lacquers IS/RALMetal

chemical resistance& exterior durabilityExcellent clarity, hardness, gloss & durability

Chlorinated rubber coatings

Product Shade Substrate Recommended use

Primers Redoxide/ Grey Metal Anticorrosive primer for water impermeability,Resistance to salt spray & fumes of most acids

Paints White / Black/IS & RAL Shades

Metal Finish Coat for resistance to salt spray, fumesof acid & corrosive gases.

Epoxy based paints and finishes

Product Shade Substrate Recommended use

Epoxy Primer Redoxide Redoxide Metal Excellent anticorrosive primer for acid, alkali& solvent resistance. To be used on blastcleaned surface

Epoxy Primer Redoxide Zinc Chromate

Redoxide Metal Better anticorrosive properties because ofcombination of Zinc Chromate with redoxidebetter alkali & solvent resistance

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Epoxy Primer Redoxide Zinc Phosphate

Redoxide Metal Better acid resistance because of additionof Zinc Phosphate with Redoxide.

Epoxy Primer Zinc Chromate

Yellow Metal Excellent resistance to high Humidity &saline atmosphere

Epoxy Primer Zinc Phosphate

White / Grey Metal/Concrete Excellent resistance in highly corrosive,chemical & coastal environment.

Epoxy HB Primer Grey Metal Ideal for application where higher filmthickness is recommended

Epoxy HB MIO Brown Metal MIO provides high abrasion resistance &excellent water impermeability

Epoxy HB Zinc Rich Primer

Grey Metal Zinc dust provides cathodic protection protectionto the base metal on blast cleaned surface.

One pack Epoxy Zinc Rich Primer

Grey Metal Excellent weldable primer.

Epoxy Finish Paints White/BlackIS & RAL Shades

Metal /CementFibre glass

Excellent top coat having good flexibility,adhesion, chemical oil resistance.

One Pack Epoxy Ester Based Paint

White / Shades Metal Advantages of epoxy in one pack system.

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Solventless Epoxy Paint White / BlackIS & RAL Shades

Metal / Cement Solventless epoxy provides high filmthickness in single coat

Coal Tar Epoxy Paint Black Metal / Cement Excellent anticorrosive paint for structural steel

Epoxy-Ester based casting sealer

Red Oxide Metal Excellent anticorrosive primer for castings

Speciality coating

Product Shade Substrate Recommended use

Each Primer/Wash Primer

Yellow /Black Aluminium,Galvanised Iron,Stainless steel

Two pack etch primer for use on non ferrousmetal such as galvanised iron, aluminium,light alloys etc.

Road Marking Paints

QD Hammer tone Paints

Yellow/White

Any Shade

Road

Metal

Two pack self curing solvent based coating.Provides excellent abrasion resistance.

Quick Drying hammer finishes with excellentadhesion to metal substrate.

GP Aluminium Paint Silver Metal Two pack high lustre paint for excellent

Marking Inks Shades Metal / glass /Wood

outdoor conditions

Recommended for the marking on thestructures & jobs

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Floor Coatings Shades Provides excellent hard, abrasion resistancedurable coating on floors.

Thermoplastic Acrylic Paints

Shades Metal/Plastics,ABS, HIPS, PC

Finish coats specially for plastic Surface,touch up paint for metals

Heat resistant paints

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e) Area of operation:

The company is into the business of various kinds of industrial paints and products related to coating and painting. The company operates in western region of India, and specifically in Pune region and it also has its business in the states of Maharashtra and Goa.

Its major customers in and around Pune city are.

Kirloskar Oil Engines Ltd.

B. G. Shirke Construction Technology.

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Product Shade Substrate Recommended use

HR Aluminium Paint towithstand 250 deg C.

Silver Metal Two pack high lustre aluminium paint & canwithstand a constant working temp of 250 deg.C

HR Paint to withstand 300 deg C.

Silver Metal Single pack silicon free paint which canwithstand the temp upto 300 deg.C.

HR Aluminium Paint towithstand 400 deg C.

Silver Metal Single pack silicon based paint which canwithstand the temp up to 400 deg.C.

HR Paint Black to withstand550 deg C

Silver Metal Single pack silicon based paint which canwithstand the temp upto 550 deg.C.

HR Aluminium Paint towithstand 650 deg C.

Black Metal Single pack silicon based paint which canwithstand the temp upto 650 deg.C.

Force Motors Ltd.

Electronica Machine Tools Ltd.

Maya Engineering.

Premier Automobiles Ltd.

Universal Constructions Ltd.

Flitguard Filtration Pvt. Ltd .

f) Ownership Pattern:

Shine Paints Pvt. Ltd. is a company limited by shares. It is owned and managed by a board of directors. The board of directors employ a number of employees to run their organisation, but the ownership remains with the shareholders of the company. The Shine Paints Pvt. Ltd. in particular is headed by Mr. Vitthal Chavan.

g) Competitors Information:

The company is into the business of various kinds of industrial paints and products related to coating and painting. The competition in this market is very high; also with various reforms in govt. policies is resulted in to entry of organized foreign companies in Indian market leading in cutthroat competition. The company operates in western region of India, and specifically in Pune region there are many competitors in this area. Following are some the players in industrial paint.

1) Asian Paints (India) Ltd. It is one of the largest paint companies in India and is known nationwide for an extensive array of decorative paints, automobile OEMs and refinishes, wood finishes, marine and industrial coatings.

Phone: +91-22-5695 8000Fax : +91 22 5695 8888 Email: tom.thomas@asianpaints.comWebsite: www.asianpaints.com

Protective Coatings from Asian paints offer a choice of high-performance, heavy-duty coatings, designed to protect assets against the specific corrosive environment they are exposed to. Asian Paints Protective Coatings are tested under extreme conditions to ensure that they are durable and can withstand the vagaries of the different climatic conditions. Today the range of coatings find use across diverse industries such as nuclear, thermal or hydel power plants, chemical, petrochemical or fertilizer plants, refineries, sugar, pulp and paper industry, offshore structures, pharmaceuticals etc.

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2) Berger Paints India Limited:,

It is the largest paint manufacturer in India with a strong distribution network and a spectrum of decorative paint products.

Address:Berger House129 Park Street, Kolkata - 700017Phone: +913322299724 / 22296005 / 06 / 16Fax: +913322499009 / 9729Email: consumerfeedback@bergerindia.comWebsite: http://www.bergerpaints.com

3) Nerolac:

It has been a cherished name in millions of households across the length and breadth of India. The company manufactures a diversified range of products for every surface. It is the second largest coating company in India and the market leader in automotive and powder coating. Nerolac paints as it is known popularly are an established brand in decorative paints.

4) Dulux:

Is a major paint manufacture with products and ingredients developed for a wide range of market.ICI is present in Asia Pacific, Europe and America. It manufactures and markets paints, specialty chemicals, adhesives and starch. With employee strength of about 900, ICI India’s manufacturing sites, business and sales offices and distribution network span the length and breadth of the country.

5) Shalimar:

For more than a century Shalimar Paints has been helping the Indian industries combating their most significant threat - "Corrosion".

The range of coatings has been assiduously developed over the years, to meet the specific needs of corrosion protection, both at the project stage as well as at the maintenance stage. Across the country, these have met the stringent requirements of performance in almost all industries, ranging from general engineering to oil exploration and even nuclear power

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projects. The name Shalimar symbolizes more than 100 years of experience and expertise in providing painting solutions to the Indian industries.

Some of the local brands in and around Pune are

1) Pragati Paints:

Manufacturers of epoxy paint, epoxy primer, synthetic primer, synthetic enamel, stoving primer, stoving paint, polyurethane, chlorinated rubber coatings, specialty coatings, heat resistant paint, decorative paints, industrial paint, paint additives, epoxy paints, polyurethane paints, metallic oil, distemper, oil paint, paints, primer etc.

Address: Get No. 77, Jyotiba Nagar, Chikhali Road, Talawade, Pune, Maharashtra India

Website: http://www.pragatipaints.com

2) Puksgaraj Enterprises:

Manufacturers of industrial paints, thinner, hydrated lime, industrial chemicals, varnishes, powder coating, and quick lime and calcined lime.

Business Type: Paint Manufacturer

Address: P-58, Near Hotel Suvidha, Midc, Ahmednagar, Maharashtra India

Website: http://www.pushkrajenterprises.com.

3) Glodline Enterprises:

Manufacturers of bituminous paints, industrials paints, red oxide, and allied products.

Business Type: Manufacturer

Address: Dombivali East, thane, Maharashtra India

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h) Infrastructural Facilities:

Shine Paints Ltd. is one of the leading paint manufacturing industries in Maharashtra. It has the following infrastructural facilities.

It has its own R&D department with modern equipments.

Attractive feature of Shine Paints Pvt. Ltd. is that it is located near Pune city which has lots of industries around hence it is convenient for most customers.

Shine Paints Pvt. Ltd. is well established since from a long time and is equipped with the entire modern infrastructure.

Shine Paints Pvt. Ltd. has all modern State of Art equipments in order to provide better service to customers and reduce the work load to the employees.

It has good parking and canteen facilities and the industry is located on high way and hence it is convenient for transportation

i) Work flow model: (End to End )

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C E O C E O

Manager Sales and marketing

Manager Quality Control

Manager R & DManager Finance Manager

Operations Manager H.R

President President

J) Future growth and prospective:

Shine Paints Pvt. Ltd. is now focusing on expanding its knowledge and service based business in order to provide integrated customer satisfaction. The top line growth is expected to come from a focus on a research and development of service business expert product in transmission and distribution and finally from a deeper penetration in the domestic market. Its plan is to expand its operation in other states as they have costumers round the nation.

The other aspects of Shine Paint Pvt. Ltd. is now, it is focusing & improving on:

There is always room to improve the organization by means of improving the product quality by including high technological equipments which will help to position the product in this competitive world.

There is effort from the management in order to improve the staff’s technical knowledge and also there is a circle that is helping build empathy among the employee’s.

All experienced personnel are hired for the purpose of best product.

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Asst. Mgr Asst. Mgr Asst. Mgr Asst. Mgr Asst. Mgr Asst. Mgr

Also there are add on services that propel the customer satisfaction limits such by taking orders on call, referral programmes etc.

As it has its major business in automobile, construction and consumer durable sector and as these sectors highly depend on good quality paints for coating and other purposes hence it has wide rage for improving its quality to gain better market share and sustain its growth.

3. McKenzie’s 7s Frame Work:

The McKinsey 7S model was named after a consulting company, McKinsey and Company,

which has conducted applied research in business and industry.

The Seven Elements

The McKinsey 7S model involves seven interdependent factors which are categorized as

either “hard” or “soft” elements.

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Hard Elements Soft Elements

Strategy

Structure

Systems

Shared Values

Skills

Style

Staff

Strategy

Skills

Staff

Style

System

Structure

Shared Value

“Hard “elements which are shown in green shade in figure below are easier to define or identify and management can directly influence them. These are strategy statements; Structure describes the framework in which the activities of the organization’s members are coordinated; and System is the formal and the informal procedures, including, compensation systems, management information system, performance management system, and capital allocation system that govern everyday activity.

“Soft” elements, in blue shade on the other hand, can be more difficult to describe, and are

less tangible and more influenced by culture. However, these soft elements are as important

as the hard elements if the organization is going to be successful. The way the model is

presented in Figure below depicts the interdependency of the elements and indicates how a

change in one affects all the others.

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Fig: The McKinsey 7S model

STRATEGY:

A strategy is a plan of action designed to achieve a particular goal. Strategy refers to

the systematic action and allocation of resources to achieve the company’s aim, the

integrated vision and direction of the company as well as the manner, in which it drives,

articulate, communicates and implements that vision and direction. It can also be defined as

the choice of direction and action that the company adopts to achieve its objectives in a

competitive situation.

Shine Paints adopts following strategies.

Steady expansion plan- increase its quality and service which benefits its industrial customers.

Low debt volumes- Low debt gives an advantage to the company to raise funds for its expansion plans.

Sound Business- adopting multiple marketing strategies in a focused manner to achieve the desired revenues.

Financial Performance- To grab maximum sales opportunity and increase the

revenue

STRUCTURE:

Business needs to be organized in a specific form of shape that is generally referred to

as organizational structure. Organizations are structured in a variety of ways, dependent on

their objectives and culture. The structure of the company often dictates the way it operates

and performs. Traditionally, the businesses have been structured in a hierarchical way with

several divisions and departments, each responsible for a specific task such as human

resources management, production or marketing. Many layers of management controlled the

operations, with each answerable to the upper layer of management.

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C E O C E O

Manager Sales and marketing

Manager Quality Control

Manager R & DManager Finance Manager

Operations Manager H.R

President President

The following is the Organization and Support team chart. The Company is headed by

president Mr. Vitthal Chavan The organization is mainly divided into: Production

department, quality control department, H R department, sales and marketing department,

finance department, operation and R&D deparment.The structure at Shine Paints is very

clearly defined and organized.

SYSTEM:

A system is defined as a process, or set of processes, that links and orders activities to enable work to be done and goals to be achieved. System in simple words is the formal and the informal procedures, including, compensation systems, management information system, performance management system, and capital allocation system that govern everyday activity. Some of the systems that are used in Shine paints are

Performance Management System:

The company has a well implemented Performance management System.

According to the current PMS of the company the objective of the appraisal is to:

1. Identify achievement, strength and skills.

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Asst. Mgr Asst. Mgr Asst. Mgr Asst. Mgr Asst. Mgr Asst. Mgr

2. Carry out of one’s job to the best of their ability.

3. Identify and agree any support (including Training and development) which

employee need.

4. Identify any long-term development and career aspiration the employees have.

Recruitment System:

The recruitment process followed in Shine Paints is as follows:

Recruitment Executives first collect data from management about the number of

openings for a particular job.

Get the job description for that job.

Understand the job description carefully.

The company is authorized to access two sites: Naukri & Monster for searching the

applicants.

Trace the applicant and fix date for the interview (telephonic/face to face).

Follow up the candidates till the date of their joining.

STYLE:

Style of leadership or relationship refers to the manner in which an individual

uses his or her talent, values, knowledge, judgment, and attitudes to lead and relate to

others. Style is the leadership approaches of top management and the organization’s

overall operating approach; also the way in which the organization’s employees present

themselves to the outside world, to suppliers and customers.

The Style of leadership followed in Shine Paints is partially participative and

partially authoritative. The decision making style is bottom up but any decisions related

to the budget should have approval from the CEO and the president.

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STAFF:

Organizations are made up of people and it’s the people who make the real difference

to the success of the organization in the increasingly knowledge-based society. The

importance of human resources has thus got the central position in the strategy of the

organization, away from the traditional model of capital and land.

As the economy is challenging, operators have control over who they hire and how they

train. Shine Paints hire natural sales people onto the team and training on a variety of selling

techniques, it has made them possible to win more sales and provide solid customer service

to industrial market.

There are approximately 60 to 70 employees or staffs. The coordination between the staff

member is good which make the organization effective. This also helps the company to work

in a better way. Every staff knows there work and they do all the work on time and

systematically according to the order of head of their respective departments department.

SKILLS:

Skills deal with the strongest skills, actual skills and competencies of the employees

working for the company and how they are monitored. A skill is the ability, knowledge,

undertaking, & judgment to accomplish a task. Skills may be defined as what the company

does best; the distinctive capabilities & competencies that reside in the organization.

Shine Paint focuses on following skills for effective production and to withstand itself

in corporate selling.

Provide support function to busy sales department. Focus on pricing of stock, budgets, annual reports.

It recruits candidate having sound knowledge in R&D / Production, raw materials used in paints and be able to resolve basic problems encountered in paints formulations.

It concentrates on its sales to promote products to paint requiring Industries.

It motivates and trains its employees to increase productivity.

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SHARED VALUES:

Shared Values are the core values of the company that are evidenced in the corporate

culture and the general work ethic. The following are the shared values of Shine Paints 

Energy

We value and nurture the energy and dynamism needed to achieve the very best in business.

We look forward to future challenges and opportunities.

 

Openness

As a company, we are welcoming, sociable and friendly to customers, suppliers and

employees. We deal with people in a clear, direct way and are always honest and fair in

business dealings.

 

Enablement

Our aim is to open up opportunities and to actively help people reach their goals. We always

deliver what we say we will.

4. Swot Analysis of the Organization:

SWOT Analysis is the process of analyzing and evaluating the Strengths, Weakness, Opportunities and Threats to the organization.

Here is a SWOT Analysis of Shine Paints Pvt.Ltd:

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STRENGTHS:

As Shine Paints is located in the city of Pune and as the city has lots of industries around, it can easily identified and convenient for customers.

Every Year, Shine Paints invests in research and development to support its customers with ongoing customized technical solutions with the help of well equipped laboratories and skilled technologists.

A Shine Paints has good operational excellence it has a proven track-record of delivering consistent, quality controlled and on time delivery.

Shine Coat’s considers its customers to be the most important asset and it is available to respond to the orders that are placed.

Shine Paints has economical and skilled labour.

It also has effective Marketing and Sales Promotion

WEAKNESS:

Every organization has its own weakness too. The problem is to remove its weakness or minimize it.

As Shine Paints is operating in production of Industrial paints it requires high technical support and hence has high investment.

Matching up to the customer expectation and Keeping up with the increasing

competition.

As share of industrial paints in the total paint consumption of the nation it very low

compared to global standards it requires high promotional activities.

OPPORTUNITY:

There may be unutilized opportunities in an organization. These opportunities should be discovered and harnessed in a proper way.

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Availability of highly qualified employees in India is one of the best opportunities

to the Company. This will help the Company in taking up new projects.

The Company’s location in Pune which as has lots of industries around is also one

of the opportunities to capture its customers.

As most of the automobile, construction, home appliance, electrical and electronic

enclosures manufacturers relay on paints for coating it has verry good chance of

growth.

Good quality of Goods Provide competition to foreign companies.

THREATS:

Every business has threats. It may be the competitors, new products or technology. The problem is how to tackle and eliminate these threats. It may be done by offering competitive prices, introducing new products and product lines.

THREAT OF INDUSTRY RIVALRY

The company is into the business of various kinds of industrial paints and products related to coating and painting. The competition in this market is very high; also with various reforms in govt. policies is resulted in to entry of organized foreign companies in Indian market leading in cutthroat competition. The company operates in western region of India, and specifically in Pune region there are many competitors in this area.

THREAT FROM NEW ENTRANTS

As a mentioned competition is cut throat because the market has lot of player’s it is very difficult for a new entrant to position itself, although initial investment for this business is not very high. So with some financial backing and fair amount of knowledge and expertise in paint manufacturing techniques any company can venture into the market.

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THREAT OF SUBSTITUTE PRODUCTS

There is a limited scope of substitute in this sector because to comply with specific standards company has to use prescribed products with predetermined contents so there is very little scope for substitution of the products but same products offered at lower price can severely damage the margins of the company

Shine coats basically indulge itself in manufacturing of products like primer, enamels, thermo plasts etc. which are general products used as base for any coating so has very limited substitutes

6. LEARNING EXPERIENCE:

It was a very good experience to work in a Company for a period for first 4weeks.

During this period I got a chance to know how the theoretical concepts are applied in real

time. Right from getting permission till the completion of the project every phase was

interesting with a new experience associated with it. Getting permission to do a project in a

company is the most difficult task as most of the companies do not allow students to do

projects in their companies. After getting permission both from the organization and

college, the second most important phase begins i.e., collecting the information related to

the project and studying the existing systems present in the organization.

Apart from this, corporate learning was a nice experience to face the world outside the

college and it helped me to find the current need of the market and also how to face the

people in the world. Corporate culture is very different it took me some time to get adjusted

with the employees. Employees of Shine Paints where very friendly and they never treated

me as a student. During the training process, I came to know about all the functional

departments, how processes are controlled and overall functioning of the company. I got a

clear picture of the working of the organization. I came to know a lot about what the

employees feel about the organization. I came to know how Shine Paint started, how the

business is carried out, services delivered and the organization culture. It helped me a lot to

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know about the problems, challenges and practical implication of strategy and techniques in

real situations. I even got an opportunity to interact with the employees of Shine Paints

which was one of the most interesting parts of the project.

INDEX

CHAPTER NO.

CONTENTS PAGE NO

1. Executive Summary 1

2. Objectives of the Project 2

3. Industry overview 3

4. Company Profile 6

5. About the product 9

6. Company analysis 20

7. Corporate sales and marketing 22

8 . On the field

9. Findings and suggestions 30

10. Conclusion 42

11. Bibliography 44

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EXECUTIVE SUMMARY

SECTOR : Manufacturing Sector

COMPANY : SHINE PAINTS Pvt. Ltd.

TITLE : Corporate selling and marketing of industrial paints

PROJECT DURATION: 2 Months (20/12/2010 to 28/12/2011 )

SYNOPSIS:

The project basically includes corporate selling and marketing of industrial paints to industry customers. The project covers study of the products, searching the prospects, qualifying the most potential customers, pre-approaching and approaching the prospects, presenting & demonstrating the products to the prospects, overcoming the prospects objections and convincing them to buy the products.

In the initial phase I spent considerable time in understanding production process by paying attention to every aspect and process of production right from procurement of raw material to production of final product

After this I started to study the products (i.e. industrial paints, enamels, etc.) which I was going to sell and after being familiar with the products I started assisting in customer acquisition by visiting the prospective customers and giving demonstration and presentation to them

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Scope and objective of project

OBJECTIVE OF THE PROJECT

The objectives of the project could be stated as follows

To know the market potential for the industrial colours in General Industry

To gain firsthand experience of actual selling of industrial paints Visiting the prospects and analyzing their problems or the need. Introduction of the SHINE PAINTS to the prospect and explaining the

attributes of the product and its benefits to the customers’ application.

Thus marketing the colours and seeking the new business for the company

SCOPE OF THE PROJECT

The scope of the project was limited to the industrial areas of Maharashtra and some parts of Goa

The project includes selling of the Industrial Paints to the General Industry companies at industrial areas around Pune and other parts of Maharashtra and Goa. For this I had to collect data consisting of the list of the companies in above mentioned areas possibly requiring the product. The prospect companies were mainly those which were having some type of painting and coating in their applications

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Corporate sales and marketing

CORPORATE MARKETING AND SALES

Corporate Marketing & Selling is perspective of both buyer and seller. It is totally different than individual marketing. It is not just a lengthy process but also involves the decisions coming from the concerned people at different hierarchies in the organization. Demand in this process is large.

STEPS INVOLVED IN CORPORATE MARKETING AND SALES

1. PRSPECTING & QUALIFYING

2. PREPARATION

3. APPROACH

4. PRESENTATION & DEMONSTRATION

5. OVERCOMING OBJECTIONS

6. CLOSING

7. FOLLOW UP

As stated above corporate marketing and selling involves different steps. Each step has got its own importance. Without any one of the above steps the total cycle may not get completed or may not give the desired results. Without a solid plan organizing these activities together is quiet difficult.

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On the field

The project was about 2 months of duration from 20 th 2010 to 28th 2011. It was a very good learning experience working with the company during this period. During initial 10 days period I had studied various products of the company. I had also been given a brief idea about the technical parameters of the product. After studying the company products I was given a brief idea about the sales process of the company, target market of the product etc.

After studying the company products and the sales process I visited few client companies so as to get a clear idea of actual field work. This was continued about 15 days.

After 15 days my actual work started. My responsibility was to sale the paints and related materials like thinners, metallic paints to the general industry customers. I was been assigned a industrial area in Chakan, Bhosari, Pimpri, Chinchwad, Talegaon road, Pune-Ahmednagar road, Ranjangaon. I also visited some industrial areas at GOA

I collected database consisting of the list of the companies in above mentioned industrial areas which would probably require the industrial paints. I obtained the data from various sources like yellow pages, industrial directory, internet and BSNL directory. Also company sales people suggested me some companies to visit. After that I classified the list of the companies according to their territory. During first 20 days of the actual field work I tried to cover the companies in the industrial area of Chakan, Talegaon road, Bhaosari, Pimpri & Chainchwad. In next 15 days I did cover the companies from rest of maharshtra and goa region. I used to call production manager, maintenance manager to take an appointment to introduce them the our products.

At the meeting I would first introduce the company that I was representing. Then used to tell the concerned person about the domain expertise in which the company operates & industrial paints that are being offered by the company. Along with this conversation I would ask the concerned person some questions about the currently used paints and job done at their plants. After understanding their applications I used to tell him the effectiveness of our product and how these paints will be more beneficial in their applications. . Wherever needed I used to give a samples of the paints

I also used to tell the customer about the delivery time and after sales service of the company. This routine lasted throughout my project. After generating a requirement to the customer, final negotiation of pricing and other objectives was handled by my senior people as it was too sensitive issue to tackle. On few occasions I would go for cold walk-ins in some companies which were not in my list. Response during cold walk-ins was not so good as

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people prefer appointments for presentations. So I used to fix up the appointments. While giving a call one has to be very accurate. Communication must be so effective to convince the other person with no time delay. Within a short time of period I got familiar with the important areas and locations which were desired to be known. I was successful in generating some sales on my own in last few days.

The companies visited during my tenure can be enlisted as follows

A G CONVEYING SYSTEMSP.LTD ALPHA CORPORATION ANAND IMPEX AJINKYA SURFACE COATING ASPA ENGINEERING AKURTHA ENTERPRISES B G SHIRKE POLYNORM DIV B G SHIRKE PROJECT BADRIKEDAR ENTERPRIESE BALAJI ENTERPRISES BHABHA ENGINEERING P. Ltd CHINIWALAS PVT.LTD CHIRAG DEVELOPERS CANABERA INDUSTRIES P. Ltd D.B.SYSTEMS DHIRAJ HEAVY EQUIPMENT FLEETGUARD FILTERS P. Ltd JOHNTON AUTOCOAT KAILASH VAHAN UDYOG KLASSIC WHEEL PVT.LTD MARK COATING IND MILAN POWDERCOATING MANUGRAPH INDIA LTD POOJA FIBERS POONA CONST MACHINARY PVT LTD RAJ ENGINEERING WORKS SHREE ENGINEERING SUBAK ENGINEERS P. Ltd TEJAS CHEMICALS UNIVERSAL CONST.MACHINARY&EQUIPMENT ltd WELMADE LOCKING PVT. ltd

Findings &suggestion

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FINDINGS

During the stint of this project few facts I observed particularly and which are of important nature in regard of Corporate Marketing are consolidated as the findings of the project. These facts are mentioned as following,

1. The market for industrial paints has huge potential and many industries coming up in pune region brings many opportunities for company

2. some companies are using very general products for their requirement because they are unaware about the options available

3. Some industries are not ready to use our products because they don’t know about us

4. The main USP of the product is scope for customization of the product so company should cash on this competence to acquire more market share

5. response from the corporate was mixed sort of. Few of those who actually evaluated product found it useful for their operations. Also few organizations approved the utility but did not have any immediate requirement. And there were few those totally disagreed with product as they were not interested in changing their suppliers.

6. During selling and marketing of the paints I realized that industrial selling is way different from personal selling and has to be dealt in different way

SUGGESTIONS

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After completing the project following are some of the suggestion to the companies

1. Company should target the general industry consumers who are vary price conscious by providing them products at competitive rates

2. Company should target on the industries which have very specific needs and serve them with customized products to suit their needs

3. Company should improve its delivery system to speed up the process.

4. As company is new company should work on promotion and marketing to establish itself as a brand

5. Company should concentrate on promotion of their products and try to enhance the target market

Conclusion

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At the end of my study, I came to the conclusion that there is a lot of market potential for Industrial Paints. Many companies are ready to try new products only after becoming fully assured about the quality and standard of the product.

There is very wide gap in demand and supply of these paints because of various reasons like delay in supply of raw materials, lack of continuous power supply, etc. and it is very essential for our company to undertake extensive marketing and promotion campaign to establish itself as a brand

At the end shine coats can capitalize on its ability to provide customized products at cheaper rates.

Every company getting conscious about quality standards so by maintaining high quality standards company can reap benefits in long run.

Bibliography

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Books and websites

Marketing Management – Philip Kotler

Marketing White book

Shinecoats.com

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