Marketing mix of fevicol company

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Marketing mix of fevicol company

  1. 1. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO A PROJECT REPORT ON MARKETING MIX OF PEDILITE & FEVICOL COMPANY SUBMITTED BY AFTAB SYED.Q.SYED T.Y.B.M.S SEMISTER V ACADEMIC YEAR 20010 -11 PROJECT GUIDE PROF.MAZHAR THAKUR SUBMITTED TO UNIVERSITY OF MUMBAI AKBAR PEERBHOY COLLEGE OF COMMERCE AND ECONOMICS MUMBAI – 400008
  2. 2. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO DECLARATION I AFTAB SYED.Q.SYED student of AKBAR PEERBHOY COLLEGE OF COMMERCE AND ECONOMICS, MUMBAI – 400008, T.Y.B.M.S SEM V, here by declared that I have completed Project ON MARKETING MIX OF PEDILITE & FEVICOL COMPANY in the academic year 20010-11 .The information submitted is true and original to the best of my knowledge. Place: Mumbai. Date: Signature of the students
  3. 3. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO CERTIFICATE This is to certify that the project entitled A PROJECT ON MARKETING MIX OF PEDILITE & FEVICOL COMPANY is the bonafide research work carried out by AFTAB SYED student of AKBAR PEERBHOY COLLEGE OF COMMERCE AND ECONOMICS MUMBAI – 400008, T.Y.B.M.S SEM V, during the year 2010-11, in partial fulfillment of degree of bachelor of management studies (B.M.S.) and that the dissertation has not formed on the basis for previous degree, diploma or any other similar title. Place: Date: Signature of the Guide
  4. 4. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO ACKNOWLEDGMENT I would like to thank Prof Mazhar Thakur, The university of Mumbai and Akbar Peerbhoy College of commerce and economics and the project guide and my big brother who cooperate me to make this project without their cooperation I could not make the project. Project Co-ordinator AFTAB SYED TYBMS, ROLL NO 45 SEM V
  5. 5. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO INDEX Sr.No Particular 1. Introduction • Pidilite  Fevicol 2. 4 P’s of Marketing  Product  Price  Place  (Distribution)  Promotion 3. Market Segmentation 4. Positioning 5. Conclusion 6. Annexure 7. Questionnaire 8. webliography
  6. 6. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO INTRODUCTIONINTRODUCTION
  7. 7. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO History Of Company 1969 - The Company was incorporated as a private limited company on 28th July under the name of Parekh Dychem Industries Pvt. Ltd., to acquire and take over on a going concern the business carried on by a partnership firm M/s. Parekh Dychem Industries established in 1961 and having a factory in Mumbai. The Company was promoted by Balvantray Kalyanji Parekh along with his brothers. The brand names, are being Fevicol, Fevibond, Fevigum, Pidifix, Pidivyl, Pidicryl, Acrolise, etc. - The Company undertook to set up synthetic resin project with a capacity resin project with a capacity of 3000 TPA at Mahad Industrial area in Raigad district, Maharashtra. Also undertook to set up a constructions chemicals project at Taloja industrial area, Taloja, Maharashtra. 1984 - Three other companies in the same group viz., Kodivita Pvt. Ltd., erstwhile Pidilite Industries Ltd., and Triveni Chemicals Ltd. were amalgamated with the Company effective 1st July, 1st April 1989 and 1st April 1992 respectively.
  8. 8. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO - Effective 1st July, Kondivita Pvt. Ltd. amalgamated with the Company after necessary approvals. The shareholders of erstwhile Kondivita Pvt. Ltd., were allotted 41,000-15% preference share of Rs 10 each and 19,500 shares of Rs 10 each. - 54,000 I and II Pref. - 4% shares allotted to promoters. 26,000 No. of equity shares allotted to promoters originally: 26,000 Rights shares issued in prop. 1:1 in 1980, 52,000 bonus shares issued in prop. 1:1 in 1981. 1985 - I & II Pref. 4% shares redeemed. 12% redeemable shares upgraded to 15%. 19,500 No. of equity shares and 41,000-15% Pref. shares allotted to Kondivita Pvt. Ltd. on amalgamation. 54,000-15% Pref. shares allotted to promoters & in lieu of 1st and 2nd 4% Pref. shares. 1986
  9. 9. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO - The Name of the Company was changed to PDI chemicals private limited on 1st July, and then to PDI chemicals limited, on 28th October, 1988. Name was once again changed to Pidilite Industries Ltd., on 21st February, 1990. 1989 - Effective 1st April, Pidilite Industries Ltd. was amalgamated with the Company. As per the scheme of amalgamation 1,93,500 No, of equity shares of Rs 10 each and 72,000-15% preference shares of Rs 10 each were allotted to the shareholders of erstwhile Pidilite Industrial Ltd. 1992 - As per the Scheme of Amalgamation approved by High Court of Mumbai, Triveni Chemicals Ltd., (TCL) was merged with the Company affected 1st April. Accordingly 90588 No. of equity shares of Rs 10 each and 40,000-15% preference shares of Rs 10 each were allotted to the erstwhile shareholders of TCL 38,49,034 shares allotted in prop. 72:10 to promoters on 29.1.93 1993 - 15,36,378 shares issued at a premium of Rs 100 per share in October. Of which 1,50,000 shares issued on preferential allotment basis to Viny
  10. 10. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Chemicals India Ltd. (only 1,35,000 shares taken up). Balance 13,86,378 shares along with 1,50,000 shares not taken up were issued to the public (all were taken up). 1994 - The projects for SBR Latices, AZO Pigments and Carbazole Dioxiene Violet Pigments were commissioned. - Apuraj Chemicals Ltd., was amalgamated with the Company. As per the scheme of amalgamation, 66,000 No. of equity shares of Rs 10 each were allotted to the shareholders of erstwhile Apuraj Chemicals Ltd. - Vapkon Finance & Industries Ltd., Fevicil Adhesives & Chemicals Ltd. and Pidifin Finance and Investment Ltd., are subsidiaries of the Company. - 60,000 No. of Equity shares of Rs. 10 each to be issued and allotted to equity shareholders of the erstwhile Apuraj Chemicals Ltd. pursuant to the scheme of amagalamtion. 1995 - Expansion project at Taloja was commissioned with an overall plant capacity of 2400 TPA of construction chemical.
  11. 11. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO - The Company's technical collaboration agreement with Schomburg & Co., KG. Germany for transfer of technical process know-how and specifications of the plant etc., was extended till 8th September. 1996 - The first phase of grass root plant for manufacture of synthetic resins of various types was commissioned in March at Mahad with a capacity of 7800 TPA. In the second phase, a loop process plant for continuous emulsion polymerisation was to be commissioned. - Introduction of several new products in technical collaboration with M/s. Crown Berger Ltd., U.K. - The Company allotted 61,17,200 No. of equity shares of Rs 10 each as bonus shares in the ratio of 1:1. 3,800 shares were kept in abyeance due to dispute relating to the title of the same.
  12. 12. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO 1997 - 600 bonus shares allotted from Bonus Share Issue Suspence Account. - The company has set up three windmills of 230 kv each at Village Pransla near Dhank In Gujarat. - The Pedilite Industries Limited, manufacturer of the popular Fevicol brand of adhesives, is actively scouting around for buyers for its chemical and specially resins business. The company has been in talks with several international players in a bid to either sell off the business or enter into a joint venture. 1998 - Triveni Chemicals, another group company was also merged with PIL in 1992. PIL's consumer products division was set up in 1984. - The Board of Directors gave their approvals for the amalgamation of PGP Engineering works Ltd and Pidilite Finance Ltd. with the company itself effective 1-4-99. Also, Nebula Chemicals Ltd. manufacturers of certain grades of
  13. 13. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO adhesives, was to be amalgamated with the company subject to necessary approvals. - 2,800 bonus shares kept in abeyance allotted. 1999 - Pidilite Industries is re-engineering itself into a pure brand-oriented marketing company and is hiving of its manufacturing facilities into a joint venture with a strategic partner. 2000 - The Company has acquired from Mahindra Engineering & Chemical Products Ltd (MECP), subsidiary of Mahindra & Mahindra Ltd, their adhesives and sealants business consisting of the brand M-Seal and Mr. Fixit along with goodwill of MECP's adhesives and sealants business.
  14. 14. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Pidilite IndustriesPidilite Industries Logo And Its Significance Pidilite Industries Ltd., has been associated with you through different products, Fevicol Furniture Books, Upholstery Books, etc. since long. “BOND” – has become synonymous with Pidilite Industries Limited – Makers of Fevicol brand of Adhesives. This philosophy is now beautifully expressed with our simple yet dynamic new corporate logo. The golden circle represents the Sun and the blue stroke suggests the surface of the Earth. Just like the sun maintains an eternal bond between the plants with its gravitational force, we seek to build strong bonds with all stakeholders through dedicated teamwork, innovative strategies and commitment to excellence.
  15. 15. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO This philosophy is expressed beautifully with this simple yet dynamic design for our new corporate logo. The golden circle represents the sun, and the blue brush stroke suggests the surface of the earth.
  16. 16. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO FevicolFevicol Fevicol And Its Logo The “Fevicol” logo with elephants symbol has been very popular for decades. The Fevicol logo has now been redesigned to give a fresh and contemporary look. The brand graphics have been redesigned and rising sun is added behind the elephants, reflecting the freshness and vitality of the brand.
  17. 17. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Just as the morning sun brings new energy, we constantly think of fresh ideas and develop new products of global standard under this trusted brand name. Fevicol – A Strong Brand If you really look at the way in which business is being conducted in India, we do not have a large market for ready-made furniture and carpenters are buyers of this product. Compared to wood and other materials that carpenters use in making furniture, the adhesive cost is very minimal. And Fevicol is so synonymous with the quality and the product that most of the direct consumers or carpenters cannot take risk with this kind of product. This gives them pricing power. Despite falling raw material
  18. 18. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO prices in recent past this company has been able to not only keep the market steady, but also increase the market price of their products and expand their margins. Pidilite - a pioneer and market leader in its line of business, the company boasts of a battery of strong brands like Fevicol. Fevicol brand ranks among the 25 most popular Indian brands. Thus, Fevicol is a cash cow for the company and is working wonders for it.
  19. 19. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO 4 P’S OF4 P’S OF MARKETINGMARKETING
  20. 20. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO PRODUCTPRODUCT THE PRODUCT LEVELS In planning its market offering, Fevicol needs to think through three levels of the product. Each level adds more customer value and it forms a part of the customer value hierarchy. Core product There is no identification as such where the core need is concerned. Previously, people used animal fat as glue for bonding. But getting glue from the animal fat was really difficult. What the customer actually wanted was the better product, which could be made available easily. Actually, Fevicol is not the actual pioneer in developing the white glue, as the concept has come from abroad. Fevicol has replicated the making of white glue in India from abroad. According to Fevicol, the core product is that it should give a bonding i.e., it should be provided with a good bonding. Actual Product
  21. 21. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO The actual product is designed as the bonding different and better than any other product available in the market. Basically, the core product is turned into a basic product; actual what the Fevicol is delivering. Augmented Product Here, Fevicol exceeds the customer expectation by giving an augmented product where everybody using the product can use it without any hassles, and no mistakes at all. Even a novice can use it properly and even expert can use it without any hassles as such. Moreover, as today’s competition takes place at the product-augmented level, the competition has shifted its preference from what the companies produce in their factories to what they add to their factory output in the form of packaging, services, advertising, and other things that people value. The latter part is more of a value to the company. Now even with the use of advertising, Fevicol has made itself into a super brand. Even if tomorrow someone tries to enter this market it is not possible to
  22. 22. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO compete with Fevicol, not even through effective advertising. That is the positioning they have achieved right now. Product Augmentation Strategy Firstly, each augmentation adds cost. Secondly, augmented benefits soon become expected benefits. This means competitors will have to search for still other features and benefits. However, Fevicol is not affected by the competition as it has drawn the line very cautiously such that it has made the competitors difficult to enter this market and endanger its position. So the question of cutting price does not occur much. Moreover, Fevicol wants to maintain its position as a brand in the premium segment. However, there are many small-scale competitors. Not to take a chance, it had introduced the products in the economy segment, also, inorder to deal with competitors in the lower segment market.
  23. 23. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Product Hierarchy Each product is related to certain other products. The product hierarchy stretches from basic needs to particular items that satisfy those needs. We can identify Fevicol as the following levels of the product hierarchy: 1. Product Line: Fevicol has a group of products within a product class, say, consumer-based products and industrial products. They are closely related because they perform a similar function i.e., bonding, are sold to the same customer groups, i.e., consumer-based and industrial products to the common customers and the industries respectively, are marketed through the same channels, or fall within given price ranges. 2. Product Type: A group of items, say, Fevicol SH, Fevicol MR, Fevicol 505, etc. within a product line, say, white glue, share one of the several possible forms, of the product. 3. Item: A distinct unit within a brand or product line distinguishable by, say, price, would be Parcol to Fevicol. Product Classifications
  24. 24. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Fevicol has been classified as Consumer and Bazaar Products and Speciality Industrial Products. There are about 500 industrial products under the brand name Fevicol catering to different needs of the industry. The industrial products are different from the consumer-based products totally. There is no link as such other than that they all fall under the umbrella brand – Fevicol. Product Line analysis Sales And Profits The sales and profits of each item in the product line is important as it helps to determine which items to build, maintain or divest. They also help in understanding each product line’s market profile. Fevicol has different margins for different products in the product portfolio. For each product, Fevicol undertake a profitability-analysis or a quarterly analysis. On a month-to-month basis, they keep reviewing the profitability of a particular brand. In terms of sales, they have a targeted year kind of sales plan. Based on this sales plan, they have the profitability plan. Now if there is a change in the profitability plan other than what they perceive, they take the call every month
  25. 25. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO or every three-month whether to change the pricing, or to cut the pricing in order to Increase the sales. It is the same case in the bottom line or the top line. Product-Line length The product line of Fevicol is neither short nor long. The product line is not short as if Fevicol finds the core need to introduce a product to add to its product line, it does so. Similarly, if it feels that the product is cannibalizing the other products, it does not hesitate to drop items. However, this is a rare thing to occur as all the brands under Fevicol are catered to different markets and areas. Another thing Fevicol believes in is to create a product line that protects against economic ups and downs. Thus, they have introduced Parcol and Bulbond to cover different
  26. 26. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Price points even here, if Parcol and Bulbond try cannibalizing any brand of Fevicol, restriction is put on the distribution network of Parcol and Bulbond. Fevicol follows the perception that if Companies seeking high market . How Fevicol came into being? Alcohol Poly-vinyl alcohol is one of the component of the adhesives. The whole process of manufacturing adhesives has come from outside India. Everybody outside India used to call from the name “ol” because of Poly-vinyl Alcohol. So the “col” has come from there. Earlier there were no adhesives in India. Later then, there was a brand called MOVICOL in India, who has set the trend of calling adhesives from the word “col”. The adhesive industry was in an unorganized sector. The Parekh family of the Pidilite Industries had a background of chemical engineering. As the suffix “col” had become a trend then, FEVICOL, When, it was changed to a brand, followed the same trend of having a “col” in the name.
  27. 27. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Line Extensions Over the years, Fevicol has many products under its brand. Each type of product can be further developed. It has felt the need to extend its existing brand name to new flavours in the existing product category. Line extensions consist of introducing additional items in the same product category. For example, Parcol and Bulbond. However, line extension involves risks. For example, Bulbond can eat the sales of Fevicol resulting in cannibalizing of Fevicol. On the downside, line extensions may lead to the brand name losing its specific meaning. It may be possible that by introducing Bulbond – a cheaper version of Fevicol, Fevicol may lose its name in providing product in the premium segment. However, line extensions also have a positive side. They have a much higher chance of survival than brand-new products. If Bulbond is promoted using the tagline from the promoters of Fevicol, then there is a possibility of it reaping more profits.
  28. 28. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Brand Extensions Pidilite has used its existing brand “Fevicol “ to launch other products in other categories. For example, Fevicol SH, Fevicol SR-998, Fevicol Foamfix, Fevicol Nailfree, etc Packing In Plastic Containers 125gms, 250gms, 500gms, 1kg, 2kg, 5kg and 10kg. In Carboys 30kg, 50kg FEVICOL SPEEDX FAST SETTING SYNTHETIC ADHESIVE
  29. 29. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO WITH ALIPHATIC RESIN SAVE TIME, GET MORE BUSINESS! For the first time in India, a revolutionary adhesive that can save time, increase productivity with superior water resistance. It is a fast setting water based synthetic resin adhesive for Furniture Industry. Fevicol SpeedX is milky white in colour. Category: Craftsmen Products Features: • Saves time – more productivity and faster completion of project. • Saves Labour – cost effective. • Superior water resistance – makes furniture more durable. Uses: • In time bound projects.
  30. 30. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO • Kitchen units, wall units, bathroom where exposure to water is high. • For bonding wood, plywood, laminates, veneers, particle board, block board/hard board, MDF to each other. Packing: • In Plastic Containers 5kg and 10kg. • In Carboys 20kg and 50kg.
  31. 31. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO SYNTHETIC RUBBER BASED ADHESIVE QUICK BONDING ADHESIVE Fevicol SR 998 is widely accepted for speed in furniture making and for the surfaces where it is difficult to apply pressure. Used specially for bonding vertical laminates. Fevicol SR 998 is dark brownish in appearance. Category: Craftsmen Product Features: • It is benzene free and thus, is non-hazardous to health. • To bond the surfaces where it is difficult to apply pressure. • Vertical lamination.
  32. 32. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO • Speed in furniture making. • Excellent spread ability and bond strength. Uses: • For bonding decorative laminates to wood and plywood. • Rubber, rexine, leather, foam, fibre, metal, glass, ceramic, canvas, etc. • Duct insulation (nitryl rubber to metal). • Under deck insulation. • Teak wood – mosaic/cement flooring. • Bonding inside roofing of cars and buses. Packing: In Tins 100ml, 200ml, 500ml, 1 litre, 2 litre and 5 litre In Drum 25 litre
  33. 33. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO FEVICOL SR X-PRES SYNTHETIC RUBBER ADHESIVE
  34. 34. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO THE TWO MINUTE BOND– THAT LASTS LONG. A Premium quality adhesive specially formulated to tough containers. It is a solvent borne synthetic rubber based adhesive (Benzene free). Fevicol SR X-Pres is a light lemon yellow liquid and it is highly inflammable material, to be stored away from direct, heat, sunlight and flame in sealed condition. Category: Craftsmen Product Features: • More resistant to heat and sunlight. • Faster Drying (3-5 minutes). • Saves time and labour. • Used for the surfaces where it is difficult and apply pressure. Uses:
  35. 35. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO • Automobile roofing applications. • For bonding decorative laminates to wood and plywood. • In vertical lamination. • Rubber, rexine, leather, foam, fibre, metal, glass, ceramic, canvas, etc. • Duct insulation (nityrl rubber to metal) • Under deck insulation. Packing: In Tins 200ml, 500ml, 1 litre and 5 litre
  36. 36. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO
  37. 37. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO FEVICOL SR 505 SYNTHETIC RUBBER ADHESIVE STRONG BONDING, LONG LASTING Introducing Fevicol SR 505, specially for PVC flooring, foam/rexine upholstery Fevicol SR 505 is a synthetic rubber adhesive (Solvent based) and benzene free. It is greenish yellow in colour. Category: Craftsmen Product Features: • Excellent spreadability. • Compared to other adhesive no residue left. Can be used to the last drop. • Economical in the long run. • Free from benzene – non hazardous to health.
  38. 38. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Uses: • PVC Flooring. • Foam/rubber foam to metal/wood. • Upholstery or rexine to metal. • A/c unit insulation. • Duct insulation. • Under deck insulation. In Glue Pen 30gm.
  39. 39. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO PRICINGPRICING Price is the amount of money charged for a product or service. More broadly, price is the sum of all the values that consumers exchange for the benefits of having or using the product or service. In case of Fevicol the prices are fixed according to the benefits that it offers like good quality, branded product, etc. Its price is thus a summation of all the values that its consumers exchange for the benefits of using Fevicol. Internal Factors Affecting Pricing Decision Internal factors affecting pricing include Fevicol's marketing objectives, mix, and organizational considerations. Marketing Objectives before setting price Fevicol has selected its target market and positioning carefully, and hence its marketing mix strategy, including price, are fairly straightforward.
  40. 40. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Marketing Mix Strategy of Fevicol Fevicol believes that "Price is only one of the marketing mix tools that a company uses to achieve its marketing objectives. Price decisions must be coordinated with product design, distribution, and promotion decisions to form a consistent and effective marketing program for other marketing mix variables may affect pricing decisions." Target costing Target costing reverses the usual process of first designing a new product, determining its cost, and then asking, Can we sell it for that?” Instead, it starts with an ideal selling price based on customer considerations, then targets costs that will ensure that the price is met.
  41. 41. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Fevicol does exactly this in case of its line extensions, where it comes out with a product having a certain price in mind and thus goes in a reverse by first setting an ideal selling price based on customer considerations, then targets costs that will ensure that the price is met. The best examples of this Target costing are the Brands Parcol and Bullbond, which are the line extensions of the brand Fevicol. External Factors Affecting Pricing Decisions of Fevicol External factors that affect pricing decisions of Fevicol include the nature of the market and environmental elements like the government policies, competition, etc.
  42. 42. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Consumer Perceptions of Price and Value Fevicol knows that in the end, the consumer will decide whether products' price is right. Pricing decisions, like other marketing mix decisions, must be buyer oriented. When consumers buy a product, they exchange something of value (the price) to get something of value (the benefits of having or product). Hence, Fevicol follows value - based - pricing. Demand curve A curve that shows the number of units the market will buy in given time period at different prices that might be charged. Fevicol prepares a demand curve as and when it feels that there has been a change in the external environment or in its internal way of conducting business. This helps them to determine the number of units the market will buy in a given time period at different prices.
  43. 43. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Price Elasticity of Demand Marketers also need to know price elasticity, how responsive demand will be to a change in price. Fevicol has negative price elasticity as with the increasing prices its demand falls. This is because of the heavy competition to it from the unorganized players of the market and other competitors whose products are priced below the prices of Fevicol. Hence, Fevicol is very selective as to when to rise the price because its price elasticity will surely hamper its demand if there is a price rise. Competitors’ Costs, Prices, and Offers Fevicol takes into consideration the external factor of competitors’ costs and prices. It also takes into consideration the possible competitor reactions to its own pricing moves affecting its pricing decisions.
  44. 44. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Other External Factors When setting prices, Fevicol also considers other factors in its external environment. Economic conditions can have a strong impact on the pricing strategies. Economic factors such as boom or recession, inflation, and interest rates affect pricing decisions because they affect both the costs of producing product and consumer perceptions of the product’s price and value. Fevicol follows - 'Value-Based Pricing' Value pricing is offering just the right combination of quality and good service at a fair price. An increasing number of companies are basing their prices on the products perceived value. Fevicol is no exception to it. Value-based pricing use buyers’ perceptions of value, not the seller’s cost, as the key to pricing. Value-based
  45. 45. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO pricing means that the marketer cannot design a product and marketing program and then set the price. Price is considered along with the other marketing mix variables before the marketing program is set. NEW-PRODUCT PRICING STRATEGIES Pricing strategies usually change as the product passes through its life cycle. The introductory stage is especially challenging. Companies bringing out a new product face the challenge offsetting prices for the first time. They can choose between two broad strategies: market-skimming pricing and market- penetration pricing. Fevicol uses these strategies when it comes out with a line extension. Market-Skimming Pricing
  46. 46. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fever but more profitable sales. As Fevicol is priced at a high price, all of its line extensions are priced lower than that of Fevicol and hence Fevicol rarely uses market skimming pricing as it might hamper its own sales. Market-Penetration Pricing: Setting a low price for a new product in order to attract a large number of buyers and a large market share Fevicol does this for its low priced products like Parcol and Bullbond.
  47. 47. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO PRODUCT MIX PRICING STRATEGIES The strategy for setting a product’s price often has to be changed when the product is part of a product mix. In this case, Fevicol looks for a set of prices that maximizes the profits on the total product mix. Pricing is PRICE-ADJUSTMENT STRATEGIES Companies usually adjust their basic prices to account for various customer differences and changing situations. Discount and Allowance Pricing Most companies adjust their basic price to reward customers for certain responses, much as early payment of bills volume purchases, and off-season buying. These price adjustments are called discounts and allowances - can take many forms. Fevicol uses the following price adjustment strategies:
  48. 48. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Cash discount: A price reduction to buyers who pay their bills promptly. Quantity discount: A price reduction to buyers who buy large volumes. A functional discount (also called a trade discount) is offered by the seller to trade channel members who perform certain functions, such as selling, storing, and record keeping. Allowances are another type of reduction from the list price. Uniform-delivered pricing A geographical pricing strategy in which the company charges the same price plus freight to all customers regardless of their location Zone pricing A geographical pricing strategy in which the company sets up two or more zones All customers within a zone pay the same total price; the more distant the zone, the higher the price.
  49. 49. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Basing-point pricing A geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer location, regardless of the city from that city to the customer location, regardless of the city from which the goods are actually shipped. Freight-absorption pricing A geographical pricing strategy in which the seller absorbs all or part of the actual freight charges in order to get the desired business. International Pricing Companies that market their products internationally must decide what prices to charge in the different countries in which they operate. In some cases, a company can set a uniform worldwide price. The price that a company should charge in a specific country depends on many factors, including economic conditions, competitive situations, laws and regulations, and development of the wholesaling and retailing system.
  50. 50. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Thus, Fevicol uses different geographical pricing strategies depending on the country to which it is exporting its products, as the environment in each country differ and it has to adjust its pricing strategy accordingly. Initiating Price Changes In some cases, Fevicol may find it desirable to initiate either a price cut or a price increase. In both cases, it anticipates possible buyer and competitor reactions. Buyer Reactions to Price Changes Whether the price is raised or lowered, the action will affect buyers, competitors, distributors, and suppliers and may interest government as well. Customers do not always interpret prices in a straightforward way. Hence, whenever there is a price change, Fevicol try and communicate to its buyers, distributors, suppliers etc. explaining the reason behind the price change.
  51. 51. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Pricing Within Channel Levels Federal legislation on price-fixing states that sellers must set prices without talking to competitors. Otherwise, price collusion is suspected. Price- fixing is illegal per se- that is; the government does not accept any excuses for price-fixing. Sellers are also prohibited from using predatory pricing selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business. Fevicol, sometimes use predatory pricing to cut competition. Pricing Across Channel Levels Fevicol does not use this as a tool for pricing, as it does not believe in pricing across the channel levels.
  52. 52. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO The following is an interview taken by Mr. UTPAL SHETH and Mr. CHETAN PARIKH of Mr. ASIT KOTICHA of the Pidilite Industries and it unleashes the various factors that go into pricing of its brands like Fevicol. It also includes the various investments Ideas of the Pidilite Industries as a whole. Investment Ideas from India's Money Masters (6 Jan 2000) Pidilite - Already a multi-bagger and still a lot of steam left Mr. UTPAL SHETH: Asit bhai, another multi-bagger pick of yours in the recent past has been Pidilite. This is possibly the only stock of its kind in terms of the kind of products that it has and the kind of restructuring that it is doing to unlock shareholder value. Amongst the many that are trying to achieve the same objective this company has succeeded in a very short time in achieving the objective. Could you please throw some light on this stock? Focus on increasing branded sales and shareholder value creation
  53. 53. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Mr. ASIT KOTICHA: As you have rightly mentioned the management has focused on two major changes – Focus on branded products as well as shareholder value creation. One is they are focusing more on branded products and they are focusing on shareholder value creation. They have become transparent in terms of disclosures to the investors, talking to the investors, making themselves more visible and approachable. They are also taking steps to make the business more attractive in terms of ROI, debt reduction, focusing on branded business by divesting commodity businesses. Fevicol is a strong brand with excellent pricing power If you really look at the way in which business is being conducted in India, we do not have a large market for ready-made furniture and carpenters are buyers of this product. Compared to wood and other materials that carpenters use in making furniture, the adhesive cost is very minimal. And Fevicol is so
  54. 54. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO synonymous with the quality and the product that most of the direct consumers or carpenters cannot take risk with this kind of product. This gives them pricing power. Despite falling raw material prices in recent past this company has been able to not only keep the market price steady, but increase the market price of their products and expand their margins. That is one example of the pricing power this brand is enjoying. Outstanding marketing strategy There are many pluses in this brand for which one needs to understand how this brand has been created, maintained and has increased in the power. First is the marketing strategy of the company and the product. They have resorted to direct marketing to various carpenters. They publish magazines and send it to almost three lakh carpenters every quarter. So they have direct dialogues with the carpenters. They conduct seminars and product awareness sessions with carpenters on a regular basis in various regions. And if you look at their ad campaigns, they are of excellent quality and there is very very cost effectively placement of their ads. These are two outstanding elements of the
  55. 55. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO company's marketing strategy. If you noticed, in the recent cricket matches they have selected replays instead of going in for any time slots. And it had become a very very successful and effective way of advertising. At a very low cost they could get their name registered more frequently than any other ad at very very low cost. Highly innovative product launches in a segments where no organised player This company has come out with various other products The company has very good product innovation plans. I would not say it is comparable to 3M but I think they have adopted a similar strategy in terms of identifying products. Basically they believe that they service the needs of artisans. The strategy is to come out with either new products or products which are already there in the market, without any credible brand. For example, Recently, Pidilite came out with a "putty" which is used in car Painting There is no credible brand name available and Pidilite has just come out with a product, which is a huge market, but right now there's no organized player in this. They have come out with products like Feviquick and various art & stationary products also..
  56. 56. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Summary of Pricing as followed by Fevicol: Pidilite places/positions Fevicol in the premium category. Fevicol takes Premium Pricing policy. It prices Fevicol 10% to 15% higher than the normal price as the quality is also higher. For example,Rs. 80/kg. On the economy ground, Pidilite has a brand - Bull Bond. Bull Bond, a line extension of Fevicol, has adopted penetrating pricing. Pidilite also has Parcol, another line extension of Fevicol, a cheaper version of Fevicol, which is a flanging brand. It protects Pidilite from all its competitors. Parcol is also a part of the premium segment. Fevicol follows value-based pricing. No skimming. It looks at the advertising pricing also. DISTRIBUTIONDISTRIBUTION Distribution Channel means the channel through which the product or service is being reached to the final customers. Distribution channel is linked with every other marketing decision. Mainly the company’s sales depends on how strong the distribution channel is and how well is it organized from the reach
  57. 57. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO of every customers. Also as distribution channel involves long term commitments to other companies its pricing, its product can easily changed but its distribution channels of franchises, independent dealers, its large retailers cannot be replaced with company owned stores if condition changes. Fevicol has drawn its distribution channel by taking into consideration its future as well as its present situations. We had seen that Fevicol has two types of product i.e. Consumers product and Industrial product. Pidilite has also invested a lot to build a strong distribution network. The Number Of Distribution Channels Fevicol has a huge distribution channel carrying the following of them: • Retailers • Distributors • Wholesalers • Franchises are a very small part of it • Also planning to start sales through e-commerce.
  58. 58. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO There will obviously be a clash but the Net will function as an alternate channel of selling. Possibly our retailers will end up functioning as stock points.'' Its foray into net selling is likely to function in the next 3-4 months. How wide is the Distribution Network Today, Fevicol is estimated to have a retail reach in 4,000 towns the translation of Fevicol’s brand equity into sales. They are focusing on exports also. Right now their export is less than Rs. 10 crores in branded products, which is targeted to reach Rs. 100 crores in next to five years. They are exporting to neighboring countries like Bangladesh, Sri Lanka, and Middle East, where already these products are very well known. The distribution channel of Fevicol is built in a very effective way. We see that Movicol of ColourChem is already there in the market for at least more than a year now. It doesn't expect them to give a very tough competition to Fevicol. They do not see major threat to Fevicol brand in
  59. 59. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO foreseeable future, as distribution channel is quite different from the channel for FMCG goods. They may be able to get some market share in industrial products but in consumer products, they won’t be able to have any major impact. It has a superb distribution network in place and just needs to keep increasing the throughput. Indeed, with a reach of four lakh retail outlets and 800 distributors, the company can compete with the best in the business. Despite very high ad expense in the first half their overall selling and distribution expenses will be less than 10 percent of sales in the full year. Networking mainly through carpenters all over the country, Pidilite has almost 30,000 dealers. Fevicol has a distribution channel that covers more than 400,000 sales outlets. This is comparable to the leading FMCG companies, and unmatched by their typical competitors, who think “commodity”. The Nature Of Distribution Channel The distribution channel followed by Fevicol is very effective in terms of its control on the distribution channel as well as it is also very cost effective. At the same time it is not very complex. As Fevicol deals in consumer products and industrial product both carries two different distribution channels.
  60. 60. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO The distribution channel for consumer product carries indirect marketing channel for its distribution. Indirect marketing channel is where the company deals with the retailer. Sometimes some small retailers take the product from the distributors. It is due to lack of reach directly to the retailers they had to take from distributors. But the distributors and the retailers are solely under the direct control of Fevicol. 1) Manufacturer Retailer Consumer 2) Manufacturer Distributor Retailer Consumer The distribution channel for industrial product carries direct marketing channel for its distribution. Direct marketing channel is where the producing company directly deals with the other industry. There is no intermediary level present in this marketing channel. The industry directly contacts to Fevicol for ordering the
  61. 61. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO product required by them as per their requirements. And Fevicol supplies them as per the order placed considering the usage and requirements without and intermediary between them. 1) Manufacturer Industrial Consumer Channel Behavior The whole distribution channel of both Consumer products and industrial product is strongly under the control of Fevicol. As its major distribution is direct distribution i.e. they are in direct relation to the retailer and then to the final consumer in case of consumer products whereas they are in direct relation to the final consumer in case of industrial products. Here we see that both Fevicol and retailers are highly dependent on each other for knowing the consumer needs as well as for providing with innovative products to fulfill the consumer needs with branded products respectively.
  62. 62. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Consumers Service Needs Fevicol has its distribution channel very widely dispersed all over for the easy reach of its customer. As it has mainly FMCG products that are being demanded more. So it has to supply its product to the nearby location of the people, where the customer doesn’t have to travel far for it. We see here that Fevicol is trying to fulfill all the needs of its customer by providing fastest delivery, greatest assortment and most services easily available to the customer. Where it also takes into consideration the price factor stability and makes profits at easy service fulfillment. Its Future plan for e-commerce is also being developed taking into consideration easy consumer service needs. Channel Members Selecting Channel Members The Channel members for Fevicol should be someone dealing in furniture appliances, as its main target customer is carpenter for consumer goods. So it has to keep its product in
  63. 63. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO • Hardware stores • Retailers of your competitor product as well as other retailers • Whole seller or Distributor who can make your product reach at faraway places in rural areas also • Stationary shops and General stores for household purposes, school going children’s, small craftsmen and artisians etc. At the same time the member should follow the same pricing policy followed by other retailers or distributors in their territory. And they should be cooperative.
  64. 64. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Distribution Channel of Fevicol in India
  65. 65. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO The city of Mumbai, which is one of the 8 metros alone, has 63 dealers who are visited 2 times a week. Distribution of City Mumbai
  66. 66. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO PROMOTIONPROMOTION Promotion means the activities that communicate the merits of the product and persuade target consumers to buy it. How good is Pidilite in doing promotion? How is Fevicol as a brand being promoted? All this boils down to the various promotional strategies used by Pidilite for its brand FEVICOL. The marketers of Fevicol see themselves as selling a product, where customers see themselves as buying value or a solution to their problem. Fevicol knows that its customers are interested in more than the price; they are interested in the total costs of obtaining, using and disposing of a product. The quality matters a lot to them. Customers want the product and services to be as conveniently available as possible. Finally, they want two-way White Spots – Various Dealers of Fevicol located in and around Mumbai.
  67. 67. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO communications. Marketers of Fevicol understand this and hence they first think of the four C's and then build the four P's on that platform. Mr. Parekh says that the company's policy is to strike synergies with skilled craftsman. The company already enjoys extensive Brand Equity with carpenters and cobblers. In the 80's, Pidilite promoted the Pidilite brand through Direct Marketing with carpenters and by providing furniture booklets. In the last 20 years the relationship of Fevicol with its users has become very strong. Fevicol believes in building bonds with the consumers. Fevicol held meets with carpenters almost 300 times a year. Actually, the expense of these meets is higher than that of the advertisement. In December 1999, Fevicol had started an association called Fevicol Champions Club where there were about 400 carpenters present. There was music and difficulties of these carpenters were solved. New techniques were demonstrated. Fevicol freebies were given away which made the carpenters go home happily. Now this association is started in about 16 cities with 13,000 members. In these meets, value addition of the carpenters is done. In these
  68. 68. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO meets, interior decorators or tool companymen are called to show how to work better. Mr. Parekh has realized that "today the brand's message is bigger than the product. He understands that they have to convey a message that is more exciting and satisfying to the consumers." Pidilite is moving away from a commodity-driven market to build a brand. They have highlighted the range as being every reason for every season in our communication strategy. The company has been relying on humorous advertising to get brand recall. Getting more market-savvy by changing the look and feel of its brands has become the main focus of the company. Does Fevicol use Promotional allowances as a tool in their promotion kit?
  69. 69. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Promotional allowance is the money paid by manufacturers to retailers for an agreement to feature the manufacturer's products in some way. Marketers of Fevicol bank on this a lot. They have a distribution channel to obtain this objective of building relationships using Promotional Allowance as a tool. Does Fevicol use Promotional Pricing? Temporarily pricing products below the list price, and sometimes below cost, to increase short-run sales is what Promotional pricing is all about. Fevicol does use this tool to an extent as a means of promotion. Fevicol offers cash rebates to consumers who buy the product from dealers within a specified time and then sends the rebate directly to the customers. Sometimes they simply offer discount from normal prices to increase sales and reduce inventories if there is an overstock. Fevicol knows that promotional pricing however can have adverse effects. Used too frequently and copied by
  70. 70. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO competitors, price promotions can create "deal-prone" customers who wait until brands go on sale before buying them. Or, constantly reduced prices can erode a brand's value in the eyes of customers. Therefore, Fevicol marketers sometimes use price promotions as a quick fix instead of sweating through the different process of developing effective longer-term strategies for building their brands. Fevicol believes that price promotions can be downright addicting to both the company and the customer. Price promotions are the brand equivalent of heroin: easy to get into but hard to get out of. Once the brand and its customers are addicted to the short-term high of a price-cut it is hard to wean them away to real brand building. The point is that promotional pricing can be an effective means of generating sales in certain circumstances but can be damaging if taken as a steady diet.
  71. 71. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO The Marketing Communication Mix of Fevicol Companies need to communicate to present customers for brand loyalty and potential customers for brand switch. Company has to communicate to:  Middlemen  Channel members  Consumers A Company's total marketing communication mix - also called its promotion mix- consists of the specific blend of: Advertising: Any paid form of nonpersonal presentation and promotion of ideas, goods, and services by an identified sponsor. It is a model of impersonal contact.
  72. 72. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Personal Selling: Personal presentation by the firm's sales force for the purpose of making sales and building customer relationship. Sales Promotion: Short-term incentives to encourage the purchase or sale of a product or service. Public Relations: PR is very believable - the message gets to the buyer as "news" rather than as sales - directed communication. The program design increases the company's product image. Direct marketing: Direct connection with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships - the use of telephone, mail, fax, e - mail, the Internet, and the other tools to communicate directly with specific consumers. Although the promotion mix is the company's primary communication activity, the entire marketing mix – promotion and product, price, and place - must be coordinated for the greatest communication impact.
  73. 73. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Fevicol hence coordinates all these activities to achieve the best results. Outstanding marketing strategy of Fevicol! If you noticed, in the recent cricket matches they have selected replays instead of going in for any time slots. And it had become a very very successful and effective way of advertising. At a very low cost they could get their name registered more frequently than any other ad at very very low cost. Promotion Decision Fevicol use the normal promotional tools - advertising, personal selling, sales promotion, public relations, and direct marketing - to reach consumers. They advertise in newspapers, magazines, radio and television. Advertising is supported by newspaper inserts and direct-mail pieces.
  74. 74. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Fevicol also uses personal selling as a tool in their promotions. Personal selling requires careful training of salesperson in how to greet customers, meet their need, and handle their complaints. Fevicol hence makes sure that the people involved in personal selling are well trained. Sales promotion of Fevicol includes demonstrations to its consumers via carpenters meet etc., displays, contests, and visiting celebrities. PR activities, such as press conferences and speeches, special events, newsletters, magazines, and some sort of public service activities, are always on Fevicol's agenda of promotions. They also have their web site "www.fevicol.com", offering customers information and other features. Setting the Total promotion Budget and Mix
  75. 75. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO It is a big question as to how does Fevicol decide on the total promotion budget and its division among the major promotional tools to create integrated marketing communications? Fevicol uses "Objective - and - Task Method" to set its promotion budget: Fevicol every year sets its promotional budget based on what it wants to accomplish with promotion. Their budgeting method entails:  Defining specific promotional objective • Determining the tasks needed to achieve these objectives, and  Estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget of Fevicol. Pidilite have spent extraordinarily high amount, compared to what they have been doing in the recent past, on cricket matches where the major thrust was not only creating or re-launching most of their products like Fevicol, but export markets like Bangladesh, Sri Lanka, Kenya and most of these matches were played with these countries. They have created tremendous awareness for their products, which in the second half, of course, they will not be repeating,
  76. 76. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO and it is not a normal part of their ad expense. They do their ad campaign very very wisely in a very cost-effective way. One of the things that work in their favour is that they are not doing ad campaigns for sustaining but growing the market. Building bonds and brands! Pidilite is stepping up its sales promotion and advertising budget from Rs. 27 - 35 crore this year. "We will still continue to allocate a, major portion of our spends on ground activities such as dealer meets and the rest is for advertising." added Mr. Parekh. Historically the aggregate selling and distributing expenses have been in the vicinity of 8 percent of sales. Despite very high ad expense in the first half their overall selling and distribution expenses will be less than 10 percent of sales in the full year. Promotional expenditure and adspend is expected to increase by over 30% compounded annually over the next five years. Cost of sales (including adspend and distribution costs) is already creeping upwards.
  77. 77. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO How does Fevicol Set the Overall Promotion Mix? Like any other company, Pidilite also has to decide how to divide the total promotion budget among the major promotion tools:  Advertising • Personal Selling  Sales Promotion  Public Relations  Direct Marketing It uses the concept of integrated marketing communications where it blends the promotion tools carefully into a coordinated promotion mix. But this keeps on changing every year depending on the objectives set for that particular year.
  78. 78. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Fevicol's Promotion Mix strategies: Steps for Promotion Mix:  Identifying your target audience.  Increase the buyer's readiness to purchase. • Designing message. Fevicol mostly uses the Push strategy that calls for using the sales force and trade promotion to push the product hrough channels. They induce them to carry the product and to promote it to final consumers. Before Fevicol was introduced, carpenters worked with animal glue and natural glue, which were quite inconvenient to use. The chairman and founder Balwantray Parekh worked with carpenters, understood their requirements and tried to convert the carpenters to Fevicol. Innovative advertising has backed PIL's marketing efforts for its wide range of products. Cultivating success!
  79. 79. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO According to Parekh, much of the company's success stems from the fact that they have worked closely with the markets, thereby cultivating their customers. "We try to give our customers more than just a product," he says. For instance, carpenters - the small-time carpenters who you are most likely to call home to get some work done - are Pidilite's main customers. Over the past 20 years, the company has complied a mailing list of 100,000 carpenters nationwide, and mails them furniture designs. Carpenter meets are conducted by the company where they are given new product information and shown how to use them. Despite the distinct sub-branding, the awareness of the mother brand, Fevicol, is so high that even while sponsoring programmes, `Pidilite Industries' has been replaced with the line `Makers of Fevicol'. Fevicol itself, marketed mainly to carpenters/ plumbers who buy in bulk, is available in all kinds of sizes ranging from a bucket to a pen form for the end use consumer. Says B.O. Mehta, Vice President - Marketing, Pidilite Industries: ``We believe in working very closely with the **karigars, directly promoting our
  80. 80. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO product through demonstrations.'' Networking mainly through carpenters all over the country, Pidilite has almost 30,000 dealers. Mehta explains that the company also publishes a journal, Fevicraft, that highlights noteworthy work of carpenters. The brand is also promoted in schools through craft contests, in a bid to get closer to schoolchildren. "It is basically the awareness and emotional bond which has helped the product, more than sales escalating as a result of the commercials,'' says Mehta. And, says Pandey, "Brands develop their own personalities and if you find that your brand brings a smile on someone's face, then unless there is a very good reason, we would like to continue with the basic communication strategy in selling with a smile.'' Integrating the Promotion Mix Fevicol takes steps to see that all of the promotion mix elements are smoothly integrated.
  81. 81. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO As Fevicol, now is in its Maturity Stage uses the communication model of advertising to increase sales. The essence of Fevicol’s advertising! Predictably wacky. Yet so unpredictable in its wackiness. That’s the essence of Fevicol’s advertising. HUMOUR, used well in advertising, can make even an intermediary product look attractive. It's certainly working wonders for Fevicol. This mother brand, which comes from a typical speciality chemical company -- Pidilite Industries -- has expanded successfully into several variants, cashing in on the strong brand equity it has built over the years, and through its clever advertising.
  82. 82. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Be it Fevikwik, Feviseal, Fevistik or Fevicryl, there is a sub brand for sticking just about anything. Apart from Fevicol, these are the brands that are advertised even though they make up only a small part of the turnover and do not really have large marketing budgets to support them. Thus clever, snappy advertising has helped enormously in reducing their marketing costs during these hard times. Explains Piyush Pandey, Executive Creative Director, O&M: ``All the Pidilite commercials are demonstration commercials without using the standard techniques of demonstration.'' The various campaigns have actually been developed in accordance with the life-cycle of the brand. Initially, when Fevicol was being established, the functional attributes of the product were highlighted (the `haiya ho' commercial). Once that task was accomplished, it was time to take the brand to a metaphysical level (with the `netaji' commercial), with adequate humour to bring a smile to one's face. Piyush Pandey - the man behind Fevicol's Advertisements!
  83. 83. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Piyush Pandey raised the Indian flag high at Cannes, by bagging a clutch of lions. He has dazzled and put a smile on the viewers of TV and readers through print, by his finely crafted ads. As he was to later state in the interview, 'people don't like to see ads, for them it's a nuisance. So, the question is, how do you make this nuisance entertaining?' This understanding of his has led to his making memorable and engaging ads, which have stuck on to the memory even years after they have been made. 'No Idea, No Product', is what he believes and, the strength of his ideas are amply proved by the work he has done for the brands like Fevicol, etc. Some of the stuff that Piyush Pandey thought had a very good chance of winning at Cannes was the old Fevicol ad with the egg. But they didn't win at Cannes. Doesn't mean they didn't win anywhere else, they won at other places. As Piyush Pandey says, "There is no standard approach or creative exercises. There are only two things that I approach it from; one, Ads are not made for us they are made for the people; second, people are not looking for ads, we have to make them look at them. Nobody is looking
  84. 84. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO for ads all the time; nobody puts on the TV, because there are ads at this time. Infact, ads are a nuisance. So, how to make that nuisance endearing, memorable, these are the issues on my mind when I start writing an ad. When you start working on it, observations come in very handy, experiences that you have had, other people's experiences that you have heard of. Little jokes here, little emotions somewhere else, little charming things about people and somewhere down the line it falls into place. There is no standard pattern of working on a brief, you absorb the brief and understand what role does this product play in the life of the person you want to sell it too. Then you let it role in the mind and somewhere down the line something pops up. There is no procedure. Created by Ogilvy & Mather Advertising, the advertising campaigns highlights the efficacy of the product in a humorous way. Says O&M national creative director Piyush Pandey: "Our main objective is to reinforce Fevicol's leadership position as the strongest brand in this category.'' The communication looks quite over-the-top, yet makes perfect sense to the viewer. “None of Fevicol’s communication has been over-the-top or bizarre,”
  85. 85. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO clarifies an O&M spokesperson. “In fact, Fevicol’s communication proves that involving communication based on understanding the consumer as a person – and not just as a professional, a housewife etc – always strikes a chord.” He also quite rightly points out that Fevicol advertising has “evolved over a period of time, each communication building on the preceding one”. In the early years of Fevicol advertising, the effort was to demonstrate physical bonding. Gradually the communication moved to establishing Fevicol as a bonding simile – “Fevicol jaise chipak gaya”. And what we see today is a reinforcement of the bonding message at a lateral plane. All this certainly didn’t happen overnight. For the Rs 192-crore brand (figures for 1998-99), becoming the market leader in the branded synthetic adhesives market didn’t happen overnight either. And despite the best efforts, Fevicol still has a long way to go before it can come anywhere close to market domination. Only because saresh – a traditional, unbranded adhesive made from animal fat –
  86. 86. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO is still the most widely used adhesive in India, constituting a whopping 70 per cent of the market! The target consumer of Fevicol is the carpenter “who has basic education and speaks only his mother tongue”. However, the spokesperson is quick to point out that Fevicol’s communication has a more broad-based appeal, which has helped increase salience in a low-involvement category. “Our learning's indicate that Fevicol advertising brings a smile to the face of the individual; be the individual a carpenter, or the end-user of the furniture.” True. Even the non-target viewer has come to associate Fevicol with bonding. The creative strategy that O&M has been pursuing is to build brand associations with bonding – “to make bonding a metaphor and invoke diverse associations and meanings in the consumer’s mind.” The objective is to appropriate bonding as a Fevicol attribute.
  87. 87. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Says Pidilite Industries managing director Madhukar Parikh: "Our market results and the creativity of our advertising go hand in hand, and they will continue to do so.'' To support the television campaign, the company also launches aggressive print campaign. Deviating from traditional print route, O&M has taken an unusual route to hammer the brand message - anything that comes in close proximity to Fevicol gets stuck. To illustrate the USP of Fevicol, the campaigns of Fevicol shows how a small ad of Fevicol can attract great attention by its bonding strength. Let us now have a gist of Fevicol's TV advertisements over the years:  Fevicol (Haisa with elephant) Remember the `haiya ho' commercial with elephants trying to pull apart a block of wood stuck with Fevicol? That mnemonic is, in fact, being used by the brand in the form of a trademark today.
  88. 88. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO  Fevicol (Netaji) Then came the `Netaji' campaign of a politician trying to stay stuck to his seat while the public wants to pull him down.  Fevicol (Panihari) Followed by the village belle who manages to carry all her matkas, stuck one on top of the other with Fevicol, despite the various obstacles she is made to encounter.  Fevicol (Egg) It may be recalled that O&M 's egg commercial for Fevicol walked away with a maximum number of awards for creative excellence last year. The latest TVC for Fevicol depicts bonding in a metaphorical form. An egg at a roadside dhaba cannot be broken because the hen's feed is in a Fevicol jar with remnants of the `white glue', which in turn has hardened the eggs.
  89. 89. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO  Fevicol (cliffhanger) Shot in Mumbai, the storyboard of this commercial entirely relies on drama and music. The action takes place at a TV showroom, where carpenters are busy watching a climax scene from a Hindi potboiler. Chhorna nahin, pakre rehna, repeatedly screams the village belle holding on to the hero, who is clinging on to dear life from a rope, high up in the mountains, in the movie. Just then a carpenter unknowingly picks up a Fevicol can that has been placed on top of a television set. The real drama unfolds. For the heroine suddenly stops' screaming as the hero falls down instantly-thus proving that it was the Fevicol power that was keeping the hero intact with the rope. Pandey elaborates on the ad strategy: ``We have shown the bonding power of the product in a non-literal way. The message is simple - Fevicol is the ultimate adhesive.''
  90. 90. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO It may be recalled that O&M 's egg commercial for Fevicol walked away with a maximum number of awards for creative excellence last year.  Fevicol (Shadow): Take the latest commercial for the brand. There’s this man walking down a deserted street. His ear is pressed to a transistor radio that is belting out some crummy Hindi ‘dance number’. As the man sways to the tune and walks, he notices his shadow slanting across the shop shutters that line the street. The man smiles to himself, starts dancing to the tune and proceeds on his way, all the time admiring his shadow. Enjoying himself thoroughly, he eventually reaches a shutter with a Fevicol ad painted on it. He stands in front of this shutter, does a jig, and starts walking again. However, he quickly notices something is amiss. He turns to find his shadow stuck to the shutter, convulsing grotesquely… Point taken. Effortlessly.
  91. 91. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO  Fevicol (Bus): At the 2002 Cannes awards, considered to be the Oscars of the advertising world, the Fevicol's Bus TV commercial won a silver. It also won a special award for the Best Soundtrack in TV Commercials. It shows how in a bus all the people are bonded in large numbers, thus showing that Fevicol is the best bonding agent. Fevicol's Advertisements continues to win recognition at local as well as international forums The company's advertising, created by its agency Ogilvy & Mather, continued to win recognition at local as well as international forums. At the 2002 Cannes Awards, considered to be the Oscars of the advertising world, the Fevicol 'Bus' TV commercial won a Silver in the category for Household Maintenance Products.
  92. 92. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO At the Asia Pacific Advertising Festival, the Fevicol 'Bus' TV commercial won a Bronze. Moreover, a special award for the Best Soundtrack in TV Commercials was also awarded to the Fevicol 'Bus' TV commercial. At the ABBY Awards, Fevicol advertising won a Gold for the Advertising Campaign of the Year and also a Silver for the Best Continuing Campaign over the years.
  93. 93. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO MARKETMARKET SEGMENTATIONSEGMENTATION
  94. 94. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Market SegmentationMarket Segmentation Market Segmentation is identifying market segments, selecting one or more of them and developing products and marketing programs according to it. Levels Of Market Segmentation followed by Fevicol over the Years. Firstly, Fevicol when it came into market they performed Niche Marketing where they targeted carpenter for buying their product. They found most of its concentration on this category customer at that time and even today it is being seen that its major sale is to the carpenters only. After some years Fevicol started to serve its customer throughout the market with same product i.e. is called as Mass Marketing where they used to serve only one product to the whole market. This took place for a very short period of time.
  95. 95. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Then they started to understand customers’ wants and behavior as well as they started feeling threats from other competitors offering to the market. So Fevicol came out with line extension as well as with brand extension for it Brand Fevicol. This shows that they started to follow Segment Marketing where the company tries to matches the needs of the market basically its for fulfilling the needs of different customers. For e.g. They came with Bull bond, Parcol as line extension and Fevicol DDL, Fevicol Foamfree as brand extension. Basis for Segmentation followed by Fevicol Fevicol started serving its customer according to the usage. By packaging it in smaller as well as bigger containers. For e.g. Small tubes for school children’s, medium sized containers of 50gms to 500gms for household purpose, office works, small artisians, etc. This shows that they had already carried out
  96. 96. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Demographic Segmentation to cover all segments from small age group to the professions of people. They also segmented their product in Psychographics Segmentation in social class where they considered the lower class carpenters. They came with cheaper version of Fevicol named Bull Bond and Parcol in the market, which is an economically priced product. It’s for those carpenters who consider price factor the most. Behavioral Segmentation is carried out on the basis of uses and benefits. There are some industries, which need Fevicol as a raw material in their product. So they came with the industrial products, which are being produced as per the uses and needs of the industry. They are also in consumer products newly coming with many number of innovative products on the basis of the uses and benefits of the product. For e.g. In industrial product Fevicol is being used by cigarette manufacturing industry. Whereas in consumer products there are varieties of products like Fevicol
  97. 97. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Foamfix, Fevicol Nail Free, etc., which is being used for different, purposes i.e. it depends on the uses and benefits we get from the product. Market Targeting Evaluating Market Segments 1. Segments Size and Growth The sales and profits of each item in the product line is important as it helps to determine which items to build, maintain or divest. The sales of Fevicol contribute 60% of the total sales of Pidilite Industries Limited. The actual sale, which contributes, is Rs. 310.68 Crores. The growth of the company is 9.3 per cent. The expected profit from the brand Fevicol is Rs. 42.85 Crores. 2. Segment Structure Attractiveness
  98. 98. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO The competitors in the market segment are small in size i.e. they are not very strong enough as Fevicol is. Fevicol has built its image over a long period of quality product and also as the premium priced product. Whereas the competitors are acquiring small part of the market share. There is also competition from unbranded product to Fevicol, but still they do not affect much to Fevicol as such. Due to lot of brand positioning being done in the market and acquired lots of sales, Fevicol has achieved its position as a market leader in this segment. This will make the segment attractive, as it doesn’t have many strong and aggressive competitors. In this segment there is not really any substitutes for the product in this segment but as it’s a branded formula based product, you can substitute it with animal glue and natural glue which is quiet inconvenient to use. So there is no limit to prices and profits that can be earned in this segment. Finally the power of the buyer of Fevicol in this segment is not present since it’s a quality product and sticks to its quality and proper pricing strategy. For e.g. I think raw material prices are not very relevant because Fevicol or any other products, which are branded products, can pass on any cost increases. In fact, they are benefited because the company has been able to exercise their pricing power in the recent past. Despite the raw
  99. 99. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO material prices going down they have retained or increased their end product prices and they have been able to increase their margins. This shows that the segment is less attractive since it has much powerful supplier to control the prices or reduce the quality or quantity of ordered goods. 3. Company’s Objective and Resources Even if the segment is not attractive due to powerful suppliers and still the segment fits the company’s objectives in Fevicol’s’ case. It should look after the strengths needed to compete successfully in the segment. They are constant innovative products, proper pricing strategies, etc. And it should also have to employee skill and resources more available to attract the segment. Fevicol should enter the segment only with superior values and gains advantages over competitors.
  100. 100. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Fevicol has to emphasis more on its competitive advantage that is quality product. So that it can fight against the competitors and tell the reason why is Fevicol better than other competitor’s products? i.e. why should people buy its product than others. Choosing a Market Coverage Strategy • Company’s Resources: For Fevicol the firm’s resources are abundant. Such as financial resources, own research and development, its brand image in the market, loyalty of customer toward its product, etc. • Product Variability: It has its own research and development with lots of money, which will help them in constant innovation in their product portfolio. • Products’ stage in the Product Life Cycle: The product is at the maturity stage in the product life cycle. So it requires constant innovation to carry its sales. Therefore differentiated marketing will make a more sense in it. • Market Variability: The requirements for different customer is different, the quantity required is different, etc. so differentiated strategy is more preferable over here.
  101. 101. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO • Competitors Marketing Strategy: The competitors for Fevicol are most of them are followers rather than competitors who try to acquire a small part of market share. So according to the above parameters differentiated strategy is more preferable to Fevicol. Differentiated Coverage Strategy Using differentiated coverage strategy Fevicol decides to target several market segments or niches and separate offers for each. Fevicol has come up with lots of products in its brand extension and line extension, which are being targeted towards different type of customers and also on the different types of uses. For e.g. Fevicol PA 3 – Cigarettes Fevicol SpeedX – To stick fast. Fevicol Nail Free – It doesn’t require to apply nails its sticks very fast and strong bonding. Fevicol DDL – Its distemper added in colures to paint the wall Parcol & Bull Bond – Its cheaper version of Fevicol, etc… Price Product Promotion Place
  102. 102. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO POSITIONINGPOSITIONING Marketing Mix (II) Fevicol Price Product Promotion Place Marketing Mix (I) Carpenter Cigarettes Ind. Households Paints, etc.
  103. 103. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO
  104. 104. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO POSITIONINGPOSITIONING Positioning means “the way the company designs its offerings and image in the mind of the people and the distinct competency why people should buy your product”. Every company tries to position itself in the market with one or the other distinct competency. It tries to position its brand through emphasizing more on that distinct competency with the help of different communication channels. Basically, selecting the target customer’s, it decides what positions it wants to occupy to increase or carry the sales smoothly in that market segments. It tells the customer about why should he buy your product and in what manner can it benefit him more than the competitors product. How Does Fevicol Position Itself? Fevicol entered the market as branded white glue used majorly by the carpenters. It was a very niche market. Their main target customer was carpenter whom they wanted to sell their product. Fevicol positions over the
  105. 105. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO years through their television campaigns, based on the proposition of bonding through various analogies, have graduated from showing the product as a symbol of purely physical bonding, to a metaphysical and now, a metaphorical form. Its campaigns • The `haiya ho' commercial with elephants trying to pull apart a block of wood stuck with Fevicol? That mnemonic is, in fact, being used by the brand in the form of a trademark today. • Then came the `Netaji' campaign of a politician trying to stay stuck to his seat while the public wants to pull him down. • Followed by the village belle who manages to carry all her matkas, stuck one on top of the other with Fevicol, despite the various obstacles she is made to encounter. • The latest TVC for Fevicol depicts bonding in a metaphorical form. An egg at a roadside dhaba cannot be broken because the hen's feed is in a Fevicol jar with remnants of the `white glue', which in turn has hardened the eggs.
  106. 106. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO The various campaigns have actually been developed in accordance with the life cycle of the brand. Initially, when Fevicol was being established, the functional attributes of the product were highlighted (the ‘haiya ho' commercial). Once that task was accomplished, it was time to take the brand to a metaphysical level (with the `netaji' commercial), with adequate humour to bring a smile to one's face. Targeting Its Non-targeted Customers The target consumer of Fevicol is the carpenter “who has basic education and speaks only his mother tongue”. However, the spokesperson is quick to point out that Fevicol’s communication has a more broad-based appeal, which has helped increase salience in a low-involvement category. “The learning’s indicate that Fevicol advertising brings a smile to the face of the individual; be the individual a carpenter, or the end-user of the furniture”. Even the non- target viewer has come to associate Fevicol with bonding. The good thing is that its advertising campaigns have consciously eschewed talking to the carpenter as a professional. This would have alienated the non-targeted customers and could have proved restricting in the long-term.
  107. 107. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO The main objective is to reinforce the position of Fevicol's leadership position as the strongest brand in this category through its television commercial. The storyboard of the new commercial entirely relies on drama and music. The action takes place at a TV showroom, where carpenters are busy watching a climax scene from a Hindi potboiler. “Chhodna nahin, pakde rehna”, repeatedly screams the village belle holding on to the hero, who is clinging on to dear life from a rope, high up in the mountains, in the movie. Just then a carpenter unknowingly picks up a Fevicol can that has been placed on top of a television set. The real drama unfolds. For the heroine suddenly stops screaming as the hero fall down instantly – thus proving that it was the Fevicol power that was keeping the hero intact with the rope. “Here it is has shown the bonding power of the product in a non-literal way. The message is simple - Fevicol is the ultimate adhesive’’. “The market results and the creativity of the advertising goes hand in hand, and it will continue to do so.” The Overall Message of Fevicol Brand to all the Customers
  108. 108. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Deviating from traditional print route, Fevicol has taken an unusual route to hammer the brand message - anything that comes in close proximity to Fevicol gets stuck. To illustrate the USP of Fevicol, the campaign shows how a small advertisement of Fevicol can attract great attention by its bonding strength. Marketing Strategies For Competitive Advantages Marketing Strategy For Positioning Against Competitor Over the years Fevicol has positioned itself as the ultimate bonding adhesive. It is also quite rightly points out that Fevicol advertising has “evolved over a period of time, each communication building on the preceding one”. In the early years of Fevicol advertising, the effort was to demonstrate physical bonding. Gradually, the communication moved to establishing Fevicol as a bonding simile – “Fevicol jaise chipak gaya”. And what we see today is a reinforcement of the bonding message at a lateral plane. All this certainly didn’t happen overnight.
  109. 109. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO For the Rs. 192-crore brand (figures for 1998-99), becoming the market leader in the branded synthetic adhesives market didn’t happen overnight either. And despite the best efforts, Fevicol still has a long way to go before it can come anywhere close to market domination. Only because saresh – a traditional, unbranded adhesive made from animal fat – is still the most widely used adhesive in India, constituting a whopping 70 per cent of the market! It started moving from targeting the niche marketing to the whole market. It is seen that, the learning’s indicate that Fevicol advertising brings a smile to the face of the individual; be the individual a carpenter, or the end-user of the furniture”. Even the non-target viewer has come to associate Fevicol with bonding. The good thing is their advertising campaign has consciously eschewed talking to the carpenter as a professional. For that would have alienated the non-target. And could have proved restricting in the long-term. The creative strategy that has been pursuing is to build brand associations with bonding – “to make bonding a metaphor and invoke diverse
  110. 110. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO associations and meanings in the consumer’s mind.” The objective is to appropriate bonding as a Fevicol attribute. So the egg that just won’t crack because the hen that laid the egg fed from a Fevicol tub. So the shadow that sticks to a shutter… All the above shows how the brand has been build over the years for becoming the market leader. Fevicol being the market leader in the branded synthetic adhesives its is facing competition from many small players acquiring a small part of the market share. It has to carry a market leader strategy to fight against the constant increasing competition from the competitors. So first we will see what are the advantages of Fevicol. Fevicols’ Advantages • A pioneer and market leader in its line of business. Well-entrenched distribution network. Its sounds financials and growth strategy help it bond with the market.
  111. 111. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO • This company has successfully done it and proved over last 25 - years the brand power of Fevicol. Lot of adhesives have come and gone and Fevicol has been able to sustain and increase its market share. • Also, the market has strong brand loyalties as adhesives account for a minuscule proportion of total woodworking cost. Thus, Fevicol not only commands a premium in the market, but also is also largely immune to pricing wars. It is due to its power in branded adhesives for serving quality products. • For one, branding tends to work well in these markets because the products are not very sensitive to price fluctuations. "Adhesives and sealants account for a smaller portion of the total cost of the end-use product’s. So most of the end users would prefer branded products.” • A very well known brand for the people, as if any one wants an adhesive you will see that they would prefer Fevicol rather than any other. It is being more known as a quality product in this market segment. Market Leader Strategy Of Fevicol
  112. 112. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO The market leader has to be constantly alert to face any situation and give the right response to competitor’s action. He has to be innovative on its product and also has the power to expand the market or hold the market share. Expanding the Total Market. Fevicol target customers with the entry were carpenters in FMCG product. Then they targeted the footwear industry, cigarettes industries, etc. They also came with small packaging targeted towards the school going children and also for some household purposes. This expanded their total market. Protecting Market Share For protecting the market share Fevicol is coming up with constant innovation in the product as line extension as well as brand extension. This fulfills the customer’s needs and makes the customer stick to the product, which in turn protects the market share.
  113. 113. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO For e.g. most of its brands are concentrated in the high-priced segment of the market. Now the company is trying to expand into niche and lower-end markets and increase it's rural and small-town penetration. For instance, it has launched Parcol, a cheaper version of Fevicol. Developing The Marketing Mix Marketing mix as the set of Controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market. It is the mix of what you can do to influence the demand of its product. And the main possibility is collected into four groups of variables known as the four P’s: Product, Price, Place and Promotion.
  114. 114. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Product Fevicol is a synthetic adhesive in the branded products, which is also the main contributor, is normally perceived as a mature product. It has become a cash cow for its company. Fevicol offers the customer with variety of products. From premium segment to economical segment and with proper pricing strategies the products are being offered to the final customer. For e.g. • Recent one is Fevicol SpeedX. This is to upgrade. The main feature of this product is that it sticks faster i.e., in 4-5 hrs. • Latest one is Fevicol Nailfree, which is the fast setting adhesive; even faster than Fevicol SpeedX. It is available in only 250gm. bottle. It is applicable in a smaller area i.e., for vinear or edges, etc.
  115. 115. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO • So far, most of its brands are concentrated in the high-priced segment of the market. Now the company is trying to expand into niche and lower- end markets and increase it's rural and small-town penetration. For instance, it has launched Parcol, a cheaper version of Fevicol. Price Pricing for Fevicol is wholly depends on the quality of the product. Pidilite has positioned Fevicol in the premium segment category. So it has a good quality and also higher prices. It has also came with the cheaper version of Fevicol named as Bull Bond and Parcol. Fevicol takes Premium Pricing policy. It prices Fevicol 10% to 15% higher than the normal price of Pidilite Industry as the quality is also higher. For example, Rs. 80/kg. On the economy ground, Pidilite has Bull Bond. Bull Bond has adopted penetrated pricing where the perceived
  116. 116. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO value add the actual value. This is targeted majorly to the readymade making furniture’s. Pidilite also has Parcol, a cheaper version of Fevicol, which is a flanging brand, protecting Pidilite from all its competitors. For e.g. I think raw material prices are not very relevant because Fevicol or any other products, which are branded products, can pass on any cost increases. In fact, they are benefited because the company has been able to exercise their pricing power in the recent past. Despite the raw material prices going down they have retained or increased their end product prices and they have been able to increase their margins. Place Fevicol’s distribution channel has been made very strong by investing in lots of money on distribution. It distribution channel is spread all over India in eight states. It distribution channel is widely dispersed to make it available at the easy reach of the final customer. It is also being exported to few of the neighboring countries like Bangladesh, Sri Lanka and Middle East Countries.
  117. 117. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO Whereas the company is planning to establishing distribution networks in several countries including a strategic tie-up with Sadolin Paints, UAE, to market Fevicol in the Gulf countries. It has also gone into franchising where you can get all the Fevicol brands. It is also planning to sell its product through websites. PIDILITE has already floated its Web site _ pidilite.com _ and intends using it for e-commerce in future. Considering it takes a long time for any model to succeed, Pidilite does not expect to alienate its existing retailers. There will obviously be a clash but the Net will function as an alternate channel of selling. Possibly our retailers will end up functioning as stock points.'' Its foray into Net selling is likely to fructify in the next 3-4 months. Promotion Promotions are the one, which has got Fevicol to its market leader position. Promotions are being carried out in each and every target customers segment to know the benefits of the product. We had seen that there are two types of product being sold by Fevicol; they are industrial products and consumer
  118. 118. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO products. Promotions are being carried for the consumer products targeting that group of segments. Promotions are being carried majorly through ad campaigns on television, radio ads, printed ads etc. Its campaigns The `haiya ho' commercial with elephants trying to pull apart a block of wood stuck with Fevicol? That mnemonic is, in fact, being used by the brand in the form of a trademark today. Then came the `Netaji' campaign of a politician trying to stay stuck to his seat while the public wants to pull him down. Followed by the village belle who manages to carry all her matkas, stuck one on top of the other with Fevicol, despite the various obstacles she is made to encounter. The latest TVC for Fevicol depicts bonding in a metaphorical form. An egg at a roadside dhaba cannot be broken because the hen's feed is in a Fevicol jar with remnants of the `white glue', which in turn has hardened the eggs.
  119. 119. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO sInitially, when Fevicol was being established, the functional attributes of the product were highlighted (the `haiya ho' commercial). Once that task was accomplished, it was time to take the brand to a metaphysical level (with the `netaji' commercial), with adequate humour to bring a smile to one's face. These ads are being targeted to the whole market removing its barriers from niche marketing. The market results and the creativity of the advertising goes hand in hand, and it will continue to do so.'' Carpenters are the main target segment of Fevicol; they carry many different types of promotion activities for them. It believes in working very closely with the “Kari gars, directly promoting our product through demonstrations.'' Networking mainly through carpenters all over the country, Fevicol has almost 30,000 dealers. The company also publishes a journal, Fevicraft that highlights noteworthy work of carpenters. For school going children’s the brand is also promoted in schools through craft contests, in a bid to get closer to school children
  120. 120. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO CONCLUTION
  121. 121. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO annexture
  122. 122. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO QUESTIONNAIRE 1} HOW WOULD YOU DEFINE THE CONCEPT OF MARKETING MIX OF PEDILITE & FEVICOL COMPANY ? 2} WHAT ARE THE CRITERIA ADOPTED FOR SELECTING AN AGENCY TO HANDLE THE BRAND ? 3} WHO ARE THE TARGET AUDIENCES FOR THE VARIOUS CONSUMERS ? 4} EFFECTS OF 4PS ON THE CONSUMER PSYCHE, IF ANY? 5} WHAT ARE THE PROMOTION STRETEGY OF PEDILITE & FEVICOL .CO ?
  123. 123. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO 6}
  124. 124. 122 MARKETING MIX OF PEDILITE &FEVICOL.CO WEBLIOGRAPHY Websites www.pidilite.com www.fevicol.com • www.google.com • http://about.com O&M Agency’s Website Other search engines
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