SWOT Analysis of Berger Paints, Its USP and Competitors

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SWOT Analysis of Berger Paints, Its USP and Competitors

Berger Paints is one of the most popular paint brands in India. This multinational paint company is based in Kolkata, Bengal, India. It is an international paint brand because of its presence in Russia, Nepal, and Poland. They have 19 manufacturing plants in different countries. That’s why Berger Paints is a reputable name in the chemical and industrial product sector. In this post, we will complete a SWOT analysis of Berger Paints. This strategic management framework mainly covers its strengths, weaknesses, opportunities, and threats.

The biggest advantage of SWOT analysis is that it analyzes the company by its core internal and external factors. It is imperative for such multinational companies to improve their business plan using this proven tool. The company can set itself apart from others by doing a wide-ranging SWOT analysis. Read on to learn everything about Berger Paints, including its unique selling proposition and competitors.

Company Name: Berger Paints

Founders: Lewis Berger

Founded: Dec 17, 1923

Headquarters: Kolkata, Bengal, India

Parent Company: UK Paints India Private Limited

CEO: Abhijit Roy (2012-)

Type: Paint Industry

Sector: Chemicals and Industrial Products

Tagline: Paint Your Imagination

Unique Selling Proposition: Valuing Customers, Innovation, Ethical Practice, and Performance

Customers: Upper and middle-class customers

Target Consumers: Industry users, homeowners, and professionals

Revenue: 1.1 billion USD (2022)

Net Income: 100 million USD (2022)

Strengths of Berger Paints | SWOT Analysis of Berger Paints

The real growth of a company lies in its strengths. Strengths are the key factors of Berger Paints that allow it to give tough competition to others by maintaining its market position. Many factors in strengths can help boost the company’s performance further. The company has achieved immense popularity across the globe due to the following strengths:

1. In India, Berger Paints is considered as the 2^nd largest paint company. They have successfully secured nearly 1/5^th market share of industrial products and chemicals.
2. The company has so many popular subsidiaries. This allows Berger Paints to stay up-to-date with the latest trends. That’s why it is highly unique in terms of its offerings and a variety of decorative paints. The company manufactures and promotes an array of industrial as well as decorative colors. This is one of the prominent strengths of the brand.
3. Currently, the company has 7 manufacturing facilities in different countries. It has a strong supply chain network and dealership relations. The company has employed 2500 employees and has strong relations with more than 15,000 dealers.
4. Berger Paints is also very conscious about climate change and the environment. They have taken the initiative named “Green Horizon,” which mainly focuses on reducing waste. This initiative also focuses on cutting the use of natural resources. In short, they are trying their best to become an eco-friendly brand.
5. The brand is really famous among customers. This is because of its excellent brand awareness and brand perception.
6. The company manufactures high-quality and durable products. This is the reason for its amazing sales and market visibility.
7. The company has 4 manufacturing plants outside of India. They have manufacturing facilities in Bangladesh, Nepal, Russia, and Poland.
8. Berger Paints also provides protective coatings to various nuclear power plants. This is one of the biggest strengths of the company.
9. Automotive companies like Mercedes also use the automotive coating of Berger Paints.

Weaknesses of Berger Paints | SWOT Analysis of Berger Paints

Being an international brand, the company has to manage a lot of things. This creates so many weaknesses for the brand. Weaknesses prevent the company from gaining maximum profit and market leadership. Competitors can take advantage of your weaknesses to grow their profit and market share. Here, we have listed some prominent weaknesses of Berger Paints:

1. Berger Paints also operates in the decorative product segment, which is highly competitive. They heavily rely on this segment. It is a major weakness of the brand.
2. Irrelevant marketing and publicity have damaged the company’s image at the global level. This can affect the public image of the brand.
3. The company has very limited liquidity options. It is another key weakness of Berger Paints.

Opportunities for Berger Paints | SWOT Analysis of Berger Paints

For any brand, opportunities are the only way to get a lead. They provide growth opportunities to companies like Berger Paints. The company can diversify its business and global operation by exploiting all its opportunities. Below, we have mentioned some crucial growth opportunities for Berger Paints:

1. The company needs to change its offerings with changing trends. They should bring innovation to their products. In this way, Berger Paints can easily target a huge base of customers.
2. They should utilize the urbanization trend in the country for strong growth.
3. The company should diversify its offerings in the decorative and industrial product segments.
4. They should focus on diversifying their business by targeting other locations of the world, such as Africa, Europe, and North America.

Threats for Berger Paints | SWOT Analysis of Berger Paints

Berger Paints is highly exposed to international rules and regulations because it is a multinational brand. Alternate products, competitors’ performance, and varying policies can negatively impact the company’s performance. The company should identify its threats in order to protect its business from trouble.

1. The presence of local paint companies and new startups can affect the profitability of the brand in the future.
2. The rising cost of raw materials and labor can also impact the business performance of Berger Paints.
3. The paint industry in India is very competitive. So, other paint companies can disturb the company’s revenue stream and global expansion.

Competitors of Berger Paints

• DuPont
• Asian Paints
• Kansai Nerolac Paints
• AkzoNobel
• Acro Paints Limited
• Shalimar Paints

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