3. ADHESIVE INDUSTRY
EVOLUTION
Indian chemical industry is the backbone of the industrial sector of the country. The
sector, which is comprised of both small scale as well as large scale units, provides
building blocks for wide range of industries like automotive, textiles, pharmaceuticals,
personal care, consumer durables, construction & engineering, food production and
processing.
The chemical industry in India is one of the
earliest domestic industries
With around 70000 commercial products.
Contributes around 7 % of Indian GDP
today.
The chemical has witnessed growth of 13 -
14% in last 5 years.
INTRODUCTION
The India adhesives and sealants market is
expected to record a CAGR of 11.17%
during the forecast period of 2019–2024.
30.20%
2.60%
34.50%
17.90%
7.40%
3.70% 3.70%
GLOBAL CONTRIBUTION
North America South America Asia Pacific Western Europe
Eastern Europe Africa Middle East
ADHESIVE
4. 1st
2nd
3rd
4th
30 - 35% of its raw material is imported and thus has
a bearing of INR depreciation.
BARGAINING POWER OF SUPPLIER
Limited category from large multinationals.
Small regional players and unorganized retail
provides competition, combated through creative
advertising.
COMPETITIVE RIVALRY
Due to no substitutes, and because Pidilite is the
market leader, product commands strong pricing
power.
BARGAINING POWER OF BUYER
Very strong Brand Equity to compete with, achieved
through differentiated advertising and promotions.
Robust Distribution network and high focus on R&D
required for success.
THREAT OF NEW ENTRANT
5th
THREAT OF SUBSTITUTE
Low initial capital investment, and no substitute for
adhesive as such.
Pidilite nullified threat through acquisitions.
5. COMPANY
INFORMATION
FOUNDER: late Shri. Balvant Kalyanji Parekh
(1954).
The Company is engaged in the manufacture of
adhesives and glues, including rubber based glues and
adhesives.
These products are used by carpenters, painters,
plumbers, mechanics, households, students and
offices, among others.
COMPANY’S SHARE
62.00%
8.00%
6.00%
24.00%
PIDILITE
HENKEL
SIKA
OTHERS
6. S W
O T
• Dependence on
some products.
• Global targeting.
• Customer engagement
activities.
• Crude oil and petroleum
prices.
• Competitors are equally
hard pressed.
• Viral hit-Fevicol.
• More than 50%
revenue is from
4 products.
7. 4 P’s
• Extension of fevicol
• First glue stick
• Scented stick
Product
• High pricing power
• Price varies from Rs
10 and so on.
PRICE
• Adopts various
distribution channels.
• Penetration in tier1 as
well as in tier 2 and 3
cities.
PLACE
• Targeting student as
well as office segment.
• Major medium
includes television,
cinema, magazines
etc.
PROMOTION
11. VALUE FOR MONEY USER FRIENDLY
Retailers Stationers Household Students
Office-
users
Age 25above 22above (8-50) (7-24) 24above
sex m m f m/f m/f
income low-high low-high low-high low-high low-high
price
sensitivity
low low low low low
purchase
size
small/med/
large
small/med/
large
low/mediu
m
low/medi
um
medium/
large
influencer
self/custom
er/ads
self/
customer/
ads
self/ads/pee
r
self/ads/
friends
self/peer
/ads
purchase
quantity
large large small small large
SEGMENTATION
12. TARGETTING
• Retailers
• Stationers
• Households
• Students
• Office-users etc.
POSITIONING
• The brand pidilite targets all
the above segments
through various
advertisements by showing
the use of fevistik as it is
more handy and convenient
to use.
• “No Chip, No JhikJhik”
13. RELIABILITYSTATISTICS
Cronbach's Alpha Cronbach's Alpha
Based on
Standardized Items
N of Items
.878 .877 12
KMOANDBARTLETT'STEST
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
.792
Bartlett's Test of
Sphericity
Approx. Chi-Square
345.342
df
66
Sig.
.000
TOTALVARIANCEEXPLAINED
Compon
ent
Initial Eigenvalues Extraction Sums of Squared
Loadings
Rotation Sums of Squared Loadings
Total % of
Variance
Cumulati
ve %
Total % of
Variance
Cumulati
ve %
Total % of
Variance
Cumulative
%
1 5.205 43.375 43.375 5.205 43.375 43.375 3.770 31.420 31.420
2 1.681 14.007 57.382 1.681 14.007 57.382 3.115 25.962 57.382
3 .947 7.890 65.273
4 .860 7.168 72.440
5 .819 6.824 79.264
6 .615 5.125 84.389
7 .501 4.177 88.566
8 .448 3.736 92.302
9 .354 2.953 95.255
10 .253 2.111 97.366
11 .196 1.635 99.001
12 .120 .999 100.000
Extraction Method: Principal Component Analysis.
MARKET
RESEARCH