Company Background• Pidilite was established as a partnership firm with Parekh Dyechem Industries in 1961• Name changed to PDI industries after merger with Kondivita Industries in 1989.• Pidilite has become the largest manufacturer of adhesive.• Pidilite’s mainstay of earnings is consumer and industrial adhesives and sealants.• Fevicol is company’s largest brand.
Cont….• Expansion of product portfolio has lead it to be recognized as a leading FMCG player• Company has in total 40 brands spanning 400 industrial and consumer products.• Some leading brands fevicol, parcol, fevibond, fevikwik, pidifix, pidivyl, pidiseal.• It has launched several new products in last few years like fevistick, feviseal.
Competitors• Regional brands• Small players in unorganized sector• Large companies like Jubilant Organosys
STRENGTHS• Pidilites main strength is their strong marketing/ advertising skills.• Fevicol is an immensely strong brand. It is so strong that anything that has a prefix Fevi to it sells without any effort by the shopkeeper.• Pidilite earns 50% plus revenues from adhesives segment (Fevicol, M-Seal etc) whose brands have excellent recall value.
WEAKNESSES• The management seems to be a bit overconfident about their advertising skills.• Pidilite seems to have strong R&D capabilities when it comes to adhesives and home construction/care. But for the rest, they seem to depend on acquisitions.• Pidilite has grown its net profit at only 18% CAGR in the past 10 years.
OPPORTUNITIES• One can see signs of 3M of India in Pidilite. And 3M is a $60 billion company. Pidilite can become a big company if things go well.• Growth in the retail sector in India is a positive for Pidilite, especially the future growth of home specific stores like Home Town and Home Stop.
THREATS• 50% of their revenues are from adhesives/sealants and the raw material for this is petrochemicals which in turn is dependant on crude oil prices.• There is obviously a threat from the asli 3M and small scale industries. Most of products made by Pidilite doesnt require a nuclear reactor.
Questionnaire• Do you know about pidilite?• What comes to your mind, when asked about fevicol?• Are you aware about the others products of pidiliteSample survey: 10
Do you know about pidilite Column1 YES 30% NO 70%
What comes to your mind,when asked about fevicol• Bonding a fevicol attribute• Creative advertisment• Consistent quality• Easy availability• Excellent customer relationships
Are you aware about the others products of pidilite Column1 Column1 50% 20% 10% 5% 5% Dr.fixit wud fin m-seal fevi kwik,fevi Hobby ideas stick and rangeela
Suggestions• Advertise about the company and its products - it motivates individuals to purchase product• Try to sell the product which the consumer requires at that movement• Improve the efficiency in operations• Tap the rural market where there is large potential• Make products more straight forward - reduce complexities
Current Scenario• The Company achieved 21.8% growth in net sales• Earnings before interest, taxes, exceptional items and foreign exchange differences, grew by 23.9% over the last year.• Profit after tax grew by 14.1% over the last year
Marketing – New Initiatives & Products• Introduction of DDL XT Booster, an innovative formula to give exterior durability to distemper• Wudfin Ezeestain, a water based wood stainer.• Extending the range of offering in waterproofing, Enhanced version of Dr. Fixit LW, was re-launched as Dr. Fixit LW+ with better• corrosion resistance.• Fevicol Marine, a waterproof adhesive, was relaunched successfully this year with a new look and an integrated campaign including The radio, outdoor and below the line activation.• Company expanded its product range for HVAC(Heating, Ventilation and Air conditioning system) applications.
How did Fevicol become ‘Fevicol- The Brand’?• 65 percent of furniture production in India is out of wood .• The carpenters play a vital role in deciding which adhesive to use.• INITIAL STRATEGY –• Help carpenters realize the importance of using quality products.• FOLLOW-UP –• Maintaining close contact with its primary target audience
Fevicol As A Brand• Fevicol ads have played a crucial role in the phenomenal success of the brand.• Has become the largest selling adhesive in Asia and is present in over 50 countries.• The earthy humor in Fevicol ads brings a smile to everyones face.• Fevicol has also kept itself relevant through repackaging of variants.• Strong advertising and distribution has made fevicol a household name.
Question no#1• Does fevicol qualify as a brand bigger than company? What might be the implications of this? What are the possible solutions?
Analysis• Oldest brand• Higher recall• Popular among consumers and carpenters alike• Enjoys higher confidence as a brand• Propelled by imaginative ads and campaigns
Implications• Marketing strategy for other brands become centric to the successful brands.• Customer loyalty towards the brand.• Benefits the company in long run.• Company shares a positive equity.
Solutions• Promotional activities for other brands for strong positioning• Creating awareness among the mind of customer by associating it with fevicol.
Question no#2• Comment: should the brand fevicol be extended? If yes, then when, where, how should this be done?
Analysis• "Fevicol" as a name itself is commonly used as a metaphor for strong bonding or stubborn stickiness.• Extension due to already being a successful brand.• Fevicol’s popularity due to creative marketing strategy including successful marketing campaigns.• Awareness of Extension could be created through other channels like fevicol furniture books, fevicol champions club which are already launched in market.
• Successful brand and line extention like fevistick, feviquick, fevicol MR.• It could also be launched as a product that could be used multi-purposely using the prefix “Fevi.”• Capturing high market share by promoting globally.
When it should be extended?• Jan – march, From the month of jan to march, there is a demand for paint related products due to festivals like Id and holi , when people paint their houses.• April – june , With the start of financial year , many new schemes are introduced . Products like fevicol SH and fevicol SR 900,sell well during these months.• July approaches, sales takes a dip. Due to monsoon, there is no painting of houses.• August – December, demand rises again due to festive and matrimonial season, where people paint their houses , goes for new furniture & other renovations.