Berger Paints is the second-largest paints company in India offering the best quality products to its customers. The company was founded in 1760 by Lewis Berger and was integrated into India in the year 1923. In India, the company has its headquarters in Kolkata and also has an international presence in Nepal, Russia, Poland, and Bangladesh. The company is a fast-growing company and owes this growth to its business model that focuses on performance, ethical practices, valuing people, and customer priority.
Business Model
Berger Paints focuses on a marketing strategy and marketing mix to succeed in the competitive environment. This strategy also provides the basis for the business model of the company. The marketing strategy of the company focuses on 4Ps, namely, product, price, place, and promotion.
The product strategy of Berger Paints is focused on delivering high-quality products to customers. The company deals in decorative and industrial paints, thereby catering to a wide range of customers who own homes and businesses. In the decorative paints category, the company provides paints for interior walls, exterior walls, paints for metal and wood, and undercoats. In the industrial category, Berger Paints offers automotive coating, powder coating as well as protective coatings. Further, the company also has different brands that offer decorative paints. These brands include Easy Clean, Berger Silk, Bison, Weathercoat All Guard, and Weathercoat Floor Protector. To further excel at its products, Berger Paints also offers paintable wallpapers as well as Express Painting Solutions.
The pricing strategy of Berger Paints is varied because of the wide range of products it offers. As compared to its competitors like Asian Paints and Dulux, Berger Paints offers its products at lower prices. However, even at low prices, the company does not compromise on quality.
Berger Paints also adopts a very efficient place and distribution strategy. The company has a wide distribution network with more than 160 stock points. The company also has a professional and dedicated sales team to offer consultation to its customers. Berger Paints also has a website that helps customers to customize paints and also calculate the budget of the paint they choose.
The promotion strategy of Berger Paints is an aggressive one. The company runs a lot of ad campaigns on different media to reach its customers. In addition, the company takes its CSR initiatives seriously to show its presence to the customers.
Further, the company operates on three business models as discussed below
- Direct dealership: In this, the dealer of the paints deals directly with Berger Paints for the supplies of materials and products. The company may offer various deals and offers to the dealer.
- Sub-dealership: This is the model wherein the dealer needs to purchase a paint mixing machine from the company. The paints are purchased from any dealer of Berger Paints in the region where the sub-dealer operates.
- Distribution: In this model, Berger Paints offers distribution rights to an individual or a local business that purchases the products from the company in bulk. However, this model works the best in the regions where the company itself cannot supply its products.
Growth of Berger Paints
Performance Graph of Berger Paints
Berger Paints is a company that earns revenue of more than 4000 crores and is a leader in industrial paints today. The company has undertaken the task of improving its product portfolio with enough research and development and an innovative approach. The company being customer-focused has been able to feature in Forbes “Super 50 Companies in India” in the year 2015 as well as Brandz “Top 50 Most Valuable Indian Brands.”
