The Marketing Policy of Silver Paints Limited
Silver Paint Limited is a leading manufacturer of car and Iron Paints from Bangladesh to major Car and Iron Paints Marketer in our country. The company has revenues of around Tk. 50,00,00,000 in 2008. Silver Paints Limited is the pioneered on car paints sector of Bangladesh and is also involved in the Iron paints manufacturing in the country. Silver Paints Limited has an achieved success among its peer group a short span of time with its professionals and dedicated team of arrangement having long experience, commendable knowledge and expertise in convention with Car Paints Market. In this topic I try to focus on the Marketing mix of the Silver Paints Limited. This topic of the report is proposed to get an overview of Marketing Policy of Silver Paints Limited.
Car Paint manufacturer has an important role in the business sectors and in the industrialization of a country. Basically the organization manufacture product and marketed the product into the market of Bangladesh.
In the head Office of the company there are 20 employees working Under Mr. Sofiqur Rahman (MD). They follows on principal, narrow span of management as a result of which the management can put directly care on all the departments.
OBJECTIVE OF THE STUDY
- To know about the Products of Car Paints
- To recognize the pricing Policy of Silver Paints Limited
- To get informed about place (Distribution Channel) Policy of Silver Paints Limited
- To know about the Promotional strategy of Silver Paints Limited
- To know about the Marketing mix Policy of Silver Paints Limited
Scope of the Study
The study is likely to be conducted to grab the business opportunities for marketing policy of car paints and also to promote different businesses for data connectivity in the business arena. For the very purpose of the study is analysis, data will be collected from most important parties concerned.
However in my report I tried to cover elaborately all issues related to the Marketing Policy of Car Paints in Bangladesh from the event of Silver Paints Limited perspective . For the very purpose of the report, data have been gathered as follows:
- Understanding the need for Marketing Policy of car paints in Bangladesh.
- What are the benefits, problems, expectations and future requirements those existing and prospective customers look in the information centers.
- Analysis of all the above data from facts gathered & discussion with Silver Paints Limited management.
- Suggesting market development activities and innovation to trigger growth Silver Paints Limited.
The research design constitutes the blueprint for the collection, measurement and analysis of data. It aids the scientist in the allocation of his limited resources by posing crucial choices. Research design can be thought of as “glue” that holds all of the elements in a research project together.
A Descriptive research design was selected for this study because “a Descriptive study narrate the phenomena or characteristics associated with subject population (who, what, when, where and how of a topic). Estimate the proportions of a population that have these characteristics. Discover of associations among different variables. This study will investigate on Marketing Elements of car paints in our country.
- By face to face interviewing with the official’s of Silver Paints Limited.
- Collect information from the Retailer
- Studying various Text books, Journals, Magazines and report related to marketing Policy.
- Browsing various website of companies related to Marketing Policy.
The data have then been analyzed to derived required information.
Name of the Company: SILVER PAINTS LIMITED
Date of Commencement of Business as Silver Paints Limited: June 30, 1998
Type of Company: Sole Proprietorship Company
Silver Paints Limited is established on June 30, 1998. After 10 years now it became an important part of Bangladeshi car paint market. In 2009 Silver Paints Limited achieved their sales target 2 crore taka. Silver Paints Limited produces Car paints, Iron Paints, Special Polyester Putty, etc for Bangladeshi market. They also import Polish high gloss Shine from Formula Company in Germany, Hardener from E.Z Knsai Company, Auto semic Company, ARDX company, Indonesia. They also import A category Special Polyester Putty from Sumadajaya Company Jakarta, Indonesia.
Vision of Silver Paints Limited:
- “Quality First”
Mission of SPL:
- Sustainable Growth
- Vendor of Choice
VALUES of SPL:
- Respect for people
– Demonstrate respect by developing our people and helping them to achieve high performance standards.
– Treat all people with dignity.
- Sense of Urgency
– Strive for speed and simplicity in everything we do.
– Encourage and reward self-confidence and initiative.
– Require accountability.
Address: 20/13 Shahid Tajuddin Road, Tejgaon I/A, Dhaka- 1208
Operating Functions of SPL:
Operating Functions of SPL is more effective according to the vision of this company. Whole process of SPL operates a functional team on the demand of whole marketing process. These departments are shown as below;
- Human Resource Division
- Product Development
- Marketing and Sales Division
- Accounts and Finance Section
HUMAN RESOURCE DIVISION
This division always monitors the facilities of employees and to check problems. This HRD is very active in SPL. There are some activities that HR department also do for the employees of SPL like;
Human Resource Planning
- Recruitment and selection
- Compensation and Benefit
- Employee and worker relation
- Training and development
PRODUCT DEVELOPMENT AND MARKET CONSULTANT
- To standardize the component of product
- Try to decrease the price of product
- Market Trend Analysis
- Find out the competitors
- Short Time research
- To collect the best quality Paint component
- To check the quality of finished goods
MARKETING AND SALES Division:
This division also effective at their working activities. According to marketing concept, this department of SPL holds the key to achieve its organizational goal consists of the company being more effective than other competitors in skill, delivering, and communicating superior customer value to its chosen target market.
Marketing department evaluate the present car paint market condition. Marketing team also research how SILVER brand can be established through utilize 4Ps concept in the market.
SPL has a reputation in market place, so marketing and sales department should take some initial steps for the modification or more development of this present image. There are some works that marketing department always do;
Training and Development :
Training for Store manager
Training for Sales man
- Market expansion: The marketing department involve of direct market expansion procedure, here marketing mix concept is more applicable.
- Sales Promotion– Push Strategy
- Market Research-Marketing Department also works about the research of Car paint market. If there any scopes that can be applied for the development of product and market, this department also investigate that.
- Brand Development– A Brand is an art of corner store of marketing. It is a name, term, sign, symbol, or May combination of them intended to identify the goods or services of one seller and to differentiate them from those of competitors. “SILVER” brand is much established in market place. Marketing department and sales also work to enlarge this Brand.
Advertising– In order for publicity of any particular sales promotion, or any new seasonal offer, marketing department of SPL use some advertising media. These are as follows,
- Press Ad
Supply Chain Department:
Supply chain department process all the distribution activities of SPL. They distribute product in whole Market all over the country. After issuing the purchase order & manufacturing of product, supply chain work begins.
At the time of Bill submission, they attach supply invoice (chalan).
Supply Chain Department has some responsibilities also. They has to consider what kind of product will go which region. It depends on volume of sale, customer category & position of market & sales.
Sometimes they have to check the sale condition of market and also stock of paints. According to distribution of goods they apply transport facilities or rent car or quires service.
Findings and Analysis
Silver paints limited are total marketing oriented organization. In this report it I try to explain the marketing Mix or the 4ps of Silver Paints Limited.
Product of the car paints
A product is defined as:
“Anything that is capable of satisfying customer needs”
This definition includes both physical products (e.g. cars Paint, washing machines, DVD players) as well as services (e.g. insurance, banking, private health care).
The process by which companies distinguish their product offerings from the competition is called Branding.
For most companies, brands are not developed in isolation – they are part of a product group.
A product group (or product line) is a group of brands that are closely related in terms of their functions and the benefits they provide (e.g. Dell’s range of personal computers or Sony’s range of televisions).
There are two main types of product brand:
(1) Manufacturer Brands
(2) Own-label Brands
Manufacturer Brands are created by producers and use their chosen brand name. The producer has the responsibility for marketing the brand, by building distribution and gaining customer brand loyalty. Good examples include Silver paints, Microsoft, Panasonic and Mercedes.
Own-label Brands are created and owned by distributors. Good examples include Tesco and Sainsbury’s.
Silver Paints Limited is a manufacturer brand. They are very serious about product branding. They have several kind product brands. In the car paints industry the product is divided into four category .First two category putty and paint can produce through there own technology.
Bangladeshi company they can not acquired technology for manufacture the Hardener and Polish .Basically they produce paints and putty, other product they import from Indonesia ,china Japan ,Germany and so on .
Silver Paints Limited they are manufacturer of car paints .which is good quality in entire market .in the below silver Paints has some product are given below.
Putty: Putty used in preliminary stage in car painting. Painter used the product for the stability of the paint.
Silver paints recently they started manufacture putty which is good news for Bangladeshi consumer. In the below the name of the product shortly given the brand name of putty;
- Sun Polac Putty: Sun Polac Putty is imported product of the Silver Paints .It’s imported from SAMUDAJA COMPANY , Indonesia .
- Morolac putty: Moralac Putty is produce by the Silver Paints Limited. For that’s reasons putty price is now sensible in Bangladesh.
Paint: Paint is the key element of the car painting .the user it is used in the second stage for color the car.
- Toya paints.
- Solax paints.
- Sunflower paints.
- Master paints.
In above paints the most popular paints is Toya Paints .which is most quality product in silver Paints. Belgium Paints, Master paints and Solax Paints also popular paint in the current market.
Hardener: Hardener used for car glassing and lucrative and save from sun shine. They import several brands hardener from Germany, Malaysia.
EZ Group: Kansai brand Hardener is most popular brand in the world. This product produces EZ Group, Germany.
Auto chamic company: Chamic brand is most popular branded Hardener from Germany.
Polish: It is the high gloss shiner for the car . Basically it used for shining the car.
- Formula polis.
- Kit polis
This is shiner of the car.
There are many types of pricing policy in the market such as, Cost-Plus Pricing, Break-Even Analysis and Target Profit Pricing, Pre-emptive pricing
Extinction pricing , Penetration pricing etc. But in the current Market in our country the car paint companies follows Penetration Pricing Policy.
Penetration pricing: involves the setting of lower, rather than higher prices in order to achieve a large, if not dominant market share.
This strategy is most often used businesses wishing to enter a new market or build on a relatively small market share.
This will only be possible where demand for the product is believed to be highly elastic, i.e. demand is price-sensitive and either new buyer will be attracted, or existing buyers will buy more of the product as a result of a low price.
A successful penetration pricing strategy may lead to large sales volumes/market shares and therefore lower costs per unit. The effects of economies of both scale and experience lead to lower production costs, which justify the use of penetration pricing strategies to gain market share.
Penetration strategies are often used by businesses that need to use up spare resources (e.g. factory capacity).
A penetration pricing strategy may also promote complimentary and captive products. The main product may be priced with a low mark-up to attract sales (it may even be a loss-leader). Customers are then sold accessories (which often only fit the manufacturer’s main product) which are sold at higher mark-ups.
Price of the products varies due to types of product, components of the product. In the case of silver paints it is different because it is the brand company in Bangladesh they do not consider on about their quality.
For maintain the quality, Thayer production cost going high that why Thayer pricing rate of product is high then other competitor. Normally retail price range of the paints is, Toya paints 250-280 taka ,Belgium paints 220-250 taka , Solax paints 220 taka ,and other paints normal retail price is 200 Taka .
Silver paints selling Thayer product into the whole sale market as well as .In this market they giving 2-5 percent commission to whole sealer.
Silver paints limited is market leader of the car paints market they have 62% market in the current market . That’s why SPL frequently change Thayer pricing strategy into the market for beating competitor product.
PLACE (Distribution Policy)
Place (or “distribution”) is the fourth traditional element of the marketing mix. The other three are Product, Price and Promotion.
The Nature of Distribution Channels
Most businesses use third parties or intermediaries to bring their products to market. They try to forge a “distribution channel” which can be defined as
“All the organizations through which a product must pass between its point of production and consumption”
First distribution channel policy: silver paints limited at the first stage are of distribution policy is simple as our traditional distribution policy .Where contains two intermediary levels – a wholesaler and a retailer. A wholesaler typically buys and stores large quantities of several producers’ goods and then breaks into the bulk deliveries to supply retailers with smaller quantities. For small retailers with limited order quantities, the use of wholesalers makes economic sense. Basically SPL use this policy in the out side of Dhaka .They deliver Thayer product through the cargo travels to the wholesaler or distributor. And the traveling cost of the product bear the wholesaler.
Second distribution policy: silver paints limited as well as use modern distribution policy, it contains one intermediary. In consumer markets, this is typically a retailer. SPL basically used this channel in the Dhaka city .but interesting matter is that in this market they sale their total sealing seventy percent .Here SPL bear traveling cost.
Market Location: Silver paints limited selling their product into the Dhaka and out side of the Dhaka .basically car paint market in the Dhaka city near the car workshop, it is Eskaton ,Mogbazar ,sydabad ,Mohammadpur etc. And it distribute by the wholesaler out side the Dhaka such as Chattagong ,khulna ,sylhet,some other division.
It is not enough for a business to have good products sold at attractive prices. To generate sales and profits, the benefits of products have to be communicated to customers. In marketing, this is commonly known as “promotion”.
Promotion is all about companies communicating with customers.
A business’ total marketing communications programmed is called the “promotional mix” and consists of a blend of advertising, personal selling, sales promotion and public relations tools. In this revision note, we describe the four key elements of the promotional mix in more detail.
It is helpful to define the four main elements of the promotional mix before considering their strengths and limitations.
Any paid form of non-personal communication of ideas or products in the “prime media”: i.e. television, newspapers, magazines, billboard posters, radio, cinema etc.
In the case Silver paints limited advertised Thayer product through billboard ,posters and sticker which is paste near the auto car workshop and car paint shop.
(2) Personal Selling
Oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but it will always ultimately end with an attempt to “close the sale”.
At this end Silver paints does not go with personal selling.
(3) Sales Promotion
Providing incentives to customers or to the distribution channel to stimulate demand for a product. Sales promotion is commonly referred to as “Below the Line” promotion.
Sales promotion can be directed at:
- The ultimate consumer (a “pull strategy” encouraging purchase)
- The distribution channel (a “push strategy” encouraging the channels to stock the product). This is usually known as “selling into the trade”
The silver paints limited in generally follow the PUSH STRATEGY .beside this they also giving price promotion to the distribution channel. These offer either a discount to the normal selling price of a product, or more of the product at the normal price.
The communication of a product ,brand or business by placing information about it in the media without paying for the time or media space directly. It is known as “public relations” or PR.
Silver paints limited maintain “public relations” through product using feedback
Although it is premature to say definite conclusion, we can identify some factors contributing to the success in developmental impact and financial sustainability of Silver paints limited. A number of key issues tie into and have an impact on sustainability. Some recommendations to make the Silver paints limited for a successful industry as well as to help it to sustain for a longer period are furnished here. There is no order of importance to the factors discussed below.
Build research & development division
Silver paints limited has to create new research and development division .because recent year the competition car paint market increase for huge demand. Beside that customer has choosing power increased and they are now more conscious about quality.
Training to the marketar
An immediate plan for training to the marketer is badly needed. Most of the marketer thinks that they will be able to attract more than double customers if they are provided with proper training. And it also that they should consider about their marketing policy where need efficient and skill marketer into the market.
Linkage between the supply and demand-side sectors
Linkage between the supply and demand-side sectors is sensitive for Silver paints limited .because it is related to the full filled of customer demand sometime it looking unstable where it is very essential to buildup linkage between supplier and marketer. They have to develop Thayer Supply chain management system as well as connectivity with the local customer.
Willing to take on appropriate financial risk
Silver paints limited should be willing to take on appropriate financial risk for new product development. The risk is lessened if they have clear goals, comprehensive business plans, a broad range of services, and a strong client base (both public and private sector).
Combination of local ownership and management and external investment
A combination of local ownership and management and external investment is critical. In this regard, a franchised-based system represents a viable model for sustainability. In that case silver paints limited should build investment policy for local share investor with registering in Dhaka stock exchange.
In the car paint sector Government do not give any support to expand this business. But this sector saves billion taka for Bangladesh. Government and Banks should give allocate loan for expand this sector
There are a great scope for exploring new market for car paints ownership and financing, and interest in doing that will obviously be growing among private-sector car paint & accessories technology players once they find it as a successful one. Though some of the market are not generating enough income to sustain in the long run, this is not the time to say that those are not going to work on those places ever. May be the significant demand for car paint related Product at that local level. Some product of Silver paints are struggling with issues of self-sustainability, are pioneering in this field and will continue to play an important role in testing new Product and applications, creating awareness, and incubating ideas for generating new product .
In conclusion I can say that the future of the Silver paints appears is bright if they conscious about their product Branding and its quality. They also have guaranteed funding for extension to several sites in the next year, and further technology upgrades, and a project fund to foster new initiatives.