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BY: Arsalan
Shuaib
Zeeshan Ahmed
ICI Pakistan:
ICI Pakistan has consistently developed new and innovative areas of business since
it’s formation in December 1926, by the merger of four of the largest chemical
companies in the UK. ICI today is a collection of world-class businesses, many of
them leaders in their sectors. They are strongly led, technologically sophisticated with
healthy and sustainable long-term growth prospects.
ICI Pakistan Limited was set up as a public limited company in Pakistan in 1952.
ICI’s presence in the public limited company and indeed, Pakistan itself. The Khewra
Soda Ash Company, a predecessor of ICI Pakistan itself. The Soda ash manufacturing
facility in Khwera in 1944 with a capacity of 18,000 tones per annum. This facility
was sited next to the salt range as rock salt and limestone; two key raw materials for
manufacturing soda as were available here in abundance.
ICI Pakistan operates a diverse portfolio of business, which along with the other
company in the group, Pakistan PTA Limited, has combined sales of over 50 billion
Pak-rupees, equivalent to 1 percent of the country’s GDP. With this diverse portfolio,
ICI is proud to improve the quality of life of millions of people by providing services
to a number of diverse industries in the Country-to name a few, they are Textiles,
Glass, Pharmaceuticals, Agriculture Livestock, Construction, Automobiles,
Chemicals, Cement, Fertilizer, Rubber, Detergents, Footwear, Food & Beverages and
Leather, with back-end relationships in twenty three countries. As an investment
drive, ICI Pakistan is developing export opportunities in the regional markets
especially in the Middle East, Iran and Central Asian states. Currently, products are
being exported to six countries (Bahrain, Uzbekistan, Iran, Afghanistan, UAE, and
Oman).
In 1995 ICI Pakistan Limited set up a USD 490 million PTA manufacturing facility at
Port Qasim, near Karachi, which was commissioned in 1998. In 2000, the business
was de-merged to form Pakistan PTA limited, which was at the time subsidiary of ICI
Plc UK.
The turnover of ICI Pakistan limited in 2007 was 25.97 billion Pak-rupees and the
profit tax crossed 2.77 billion Pak-rupees. It is one of the largest quoted companies on
the Karachi, Lahore and Islamabad Stock Exchanges with a paid up share capital of
1.39 billion Pak-rupees. The company has around 1300 permanent employees.
ICI Vision:
The company vision is to compete in the industry by emphasizing on customer needs
and to build and promote a culture of continuous improvement.
Mission Statement:
“The ICI paints team intends to remain market leader in the paints business. We wish
to be recognized for offering the best products and excellent customer service. We
will run a high quality, profitability and growth oriented business in an exciting safe
environment.
Goals:
1. Total adherence to HER.
2. Dedicated involvement of every employee at all levels of the organization to
the total quality management concepts.
3. A complete focus or prevention of non-conformance through cohesive team
work.
4. Constant emphasis on “doing it right the first time and every time”
5. Improving the quality of everything we do, to the complete satisfaction of
internal and customers.
Objectives:
1. To be No.1 in all its 6 Pakistani businesses
2. To achieve turnover of 20% in 2002 from overall business portfolio.
3. To reduce its industrial wastes by 50% till 2004.
4. To contribute at least 25% in overall ICI Pakistan profits.
BUSINESS PORTFOLIO:
Today ICI Pakistan’s five businesses, Polyester, Soda Ash, Paints, Chemicals and
Life Sciences
ICI Pakistan
Paint Business:
The paints business in Pakistan operates in the Decorative, industry and the refinish
segments. It is the clear market leader in all the three segments. Quality of products
and services, innovation and a legacy of branding have been the foundations of this
enterprise.
With opportunities arising within the country and contiguous markets, the business
has articulated a grow aggressively strategy. The endeavor is to further strengthens
ICI;s position locally while expanding into near markets. The Decorative Business,
with its dominant position, aspires to restructure the market creating a super premium
category with innovative products and services, leveraging the Dulux brand and
capitalizing on the growing mid tier with a comprehensive channel strategy.
In OEM and Refinish segments the focus on services and technical competence will
drive differentiation supported by strategic Japanese partnerships.
Chemical Business:
ICI Pakistan chemicals business consists of a unique and diversified portfolio
encompassing general chemicals and specialty chemicals (formerly Uniqema). The
General chemicals segments include trading and polyurethanes and are involved in
the import, manufacturing, sale and distribution of industrial chemicals. The trading
segment comprises and extremely diversified portfolio of fourteen major product
groupings with over extremely diversified portfolio of fourteen major product
groupings with over 250 product/variants, including sixteen well-reputed trading
partners such as National Starch & Chemicals, Huntsman polyurethanes, Ineos Choir,
Nalco, Huntsman toxide, supplemented by imports of complimentary product lines
from companies in the USA, Europe and the Far East. This segment markets a
diversified product range used for various applications by nearly every industry in
Pakistan, prominent amongst which are power, cement, textiles, paints,
pharmaceuticals, personal care, food & beverage, solvents, detergents, footwear and
household appliances.
Life Science Business:
The Life Sciences business consist of three division; Pharmaceuticals, Animal Health
and seeds. Each division has a strong portfolio of leading brands and impeccably
researched products which promise to improve life. In line with its aggressive strategy
to bring in rapid growth and expand, the Business is entering newer and larger
segments by introducing n novel and innovative products and is also actively
exploring export markets for some of its brands. The Pharmaceutical division having
attained leadership positions in the Cardiovascular & Oncology market has entered
into the lucrative Anti-infective segment. Animal health division being dominant in
the livestock segment with established brand equity has aggressive plans in place to
enter and become a major player in the Poultry segment.
Strengths:
1. The major strength of ICI paint Pakistan is affiliation with Akzonobel network
and its latest technology
2. Large amount of latest color scheme.
3. Quality of products is also a major strength because ICI paint is providing
high range of products.
4. ICI paints cover almost all major markets of Pakistan.
Weaknesses:
1. Promotion is most important tool in order to attract customer to your product
by this factor significant part of ICI cost.
2. Price factor is another weakness of ICI paint because its competitors are
offering fewer price and other attractive incentives to their customers. So, it
has to give weight to this factor.
Opportunities:
ICI can capture more market share by increasing promotions, by exploring new
markets.
Threats:
1. Increase in Competition.
2. Political instability in Pakistan
DELUX
Dulux is a renowned brand the world over, and here in Pakistan it’s no
exception.
Wherever you travel in the country, you are likely to see premium paint brand of ICI
at work beautifying and protecting people’s homes and workplaces.
As a brand Dulux has been known and trusted for generations. ICI is proud of that,
and work hard to ensure not only that it gives consumers the same top quality
products they have grown to rely on, but also that ICI keep innovating to create new
products for the ever-evolving paint market.
Whatever your paint needs, ICI sure you will find something in Dulux range to give
you the results you want.
There are 6134 color shades available in DULUX brand. The range of DULUX
consists of;
Plastic Emulsion
Wall putty
Matt Enamel
Weather Shield Enamel
Dulux is the world's leading brand of premium quality paint. It offers the DIY user or
professional help and inspiration to achieve lasting good looks. Whilst Dulux product
ranges vary from country to country, as they are tailored to meet local needs, Dulux's
ambition is constant around the world - to help people create a beautiful environment
with confidence.
Here is a selection of the types of finishes and products available in a wide range of
Dulux colors.
Matt / Flat
Flat paint is non-reflective, so it conceals surface imperfections better than paints with
higher sheen levels. It gives a warm, elegant feel to the room. Well suited to living
rooms, dining rooms and bedrooms.
Silk / Velvet
A finish which gives a delicate shine to interior walls.
Eggshell
Compared with flat wall paints, these paints have a slightly more lustrous appearance.
Eggshell is a good choice for rooms where some luster is desired and good cleaning
properties are necessary.
Gloss
This is the most highly reflective paint and also the toughest, most durable and stain-
resistant. Often used on kitchen and bathroom walls, cabinets and trim.
Satin / Semi-Gloss
Semi-gloss paints provide a durable finish with a slightly glossy, medium-luster
appearance. Excellent for kitchens, bedrooms, and children rooms and trim.
Metallic
Gives a modern metallic look, ideal for trim and accessories.
Wood Stain
A subtle translucent finish that colors and enhances the beauty of wood.
Wood Varnish
A transparent hard wearing finish, colored or colorless, which gives a glossy finish to
wood.
PAINTEX
We all want the best quality but we also want it at a reasonable price.
Paintex, is a mid-tier paint brand of ICI paints, provides you with an opportunity to
enjoy the finer things in life while still spending your money sensibly. Paintex gives
you a complete range of exciting color and high quality finishes for all your
requirements, at an affordable price that lets you enjoy color without worrying
about costs. There are 29 color shades available in Paintex range.
Paintex Emulsion
Paintex Hi-Gloss
Paintex Putty
FINANCIAL POSITION OF ICI
Balance Sheet:
Pakistan
Above diagram shows the complete distribution strategy followed by the ICI paints.
The ICI paints divide whole Pakistan into three parts; i. North Pakistan ii. Centre
Pakistan iii. South Pakistan. These all areas have warehouses in the hubs like
Islamabad, Lahore and Karachi. Chishti Logistic Company supplies the Dulux and
Paintex to all dealers in all three areas. Then these dealers sell Dulux and Paintex to
the final customer.
PRICE STRATEGY:
One of the four major elements of the marketing mix is price. Pricing is an important
strategic issue because it is related to product positioning. Further more pricing effect
the other marketing mix elements such as product features, channel decision and
promotion.
The dulux currently having the “price premium strategy, The dulux is providing the
high quality image in the mind of consumer .This strategy is really working that now
it is in the mind of the consumers that dulux is providing best quality paint in the
market as compared to their competitors.
Dulux is the most expensive brand in the market. The reason is that the best raw
material and components are used in the manufacturing of the Dulux. Second reason
is that Dulux target market is upper tier. And to some extend upper tier of middle tier.
But paying more for Dulux , customer feels value .
If we compare the price of Dulux with other local brands, it’s the fact that
price difference is not more than 20-100 rupees. As far as quality is concerned,
by paying more customers is not worried about the quality.
For the market which is middle tier, ICI’s brands Paintex Emulsion and
Glidden are the brands with low price and optimum quality within the tier. If
we go into the comparison of Paintex and Glidden their price is low then the
other paint brands selling in the market. Glidden is purely priced to cover the
buying power of middle tier.
The price of the products in which ICI is having technological edge over
competitors is comparatively high. The reason is that ICI is enjoying state of
monopoly for that product. There is no product in the market to encounter
them.
The price of Dulux Weathershield Fresh is Rs. 1050/-, others companies
brands offered in the market are 300-400 Rs less than Weathersheild Fresh.
In Pakistan most of the people cannot afford the expensive paint. Therefore,
ICI develop its new product with the name of ICI Paintex in which company
follow the reducing price strategy as compare to Dulux, As we can see that the
price of Dulux is 1050 but the price of Paintex is only 550 which shows that
the ICI follows the reduced its new product price.
PERSONAL SELLING STRATEGY OF DULUX AND PAINTEX:
Different companies follow different methods in order to get more and more customer
satisfaction. One of the method through which the companies gets the sympathy of
their customer is “Personal Selling Strategy”.
ICI Pakistan has a unique personal selling strategy. The company has around 3500
customer service staff who are only engage in personal selling of company’s products.
The personal selling staff of ICI consists of young, energetic and experienced people.
These customer service representatives;
ICI Pakistan also gives the free services of interior decoration to their customers.
Beside this the company also provides free home delivery service to its customers
which are one of the main reasons of its huge sale. The personal selling team of ICI
also consists of a team of technical expertise. This expertise educates customers that
how they can get rid of different problems like color fading, seepage of water from
washrooms and kitchens which destroy the panted walls.
Due to all above personal selling strategies and customer care efforts the ICI Pakistan
is one of the most popular paint providers in Pakistan with largest market share.
ADVERTISING STRATEGY:
Advertisement plays vital role in sales of the company. There are many tools that
different companies use for sales promotion e.g. Television, Radio, Billboards,
pamphlets, broachers, newspapers, and magazines etc.
ICI paints not too much focused on the use of all advertisement tools because the ICI
brands have very good market reputation as well as one of the old companies in the
field of paint in Pakistan. For the purpose of advertisement ICI makes the signboards
of their dealers and sometime ICI advertise their brands commercials on television.
PROMOTIONAL STRATEGY:
ICI has taken many steps to promote its paint products. ICI uses multiple techniques
under the promotional strategy.
PRODUCT STRATEGY:
Product strategy perhaps one of the most important strategy. ICI paints focused on
all level of the product under its product strategy.
Potential Product:
The potential product encompasses all the possible argumentations and transformation
the product or offering might undergo in future, the potential product “fragrance base
paint”. The will be give fragrance of different flowers and roses. The next
augmentation can be launch product in plastic jar. Those will easy to use and less
harm to the hands, while environment protection can be increased by the product,
because customer may use the plastic jar after using the product.
ICI Dulux is a brand of quality and its all products are quality products which are
manufactured to compete with international paint products. But the Paintex products
manufactured in order to compete with local low quality and low price products
At this time ICI also working on the new products developments.