Pidilite Industries Limited


                      Presented by
                              Nidhi
                           shrutika
                           Rhythm
                              Neha
                              Nidhi
                              ritika
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
PIL Export Internationally To
•   Europe
•   Usa
•   Middle east
•   Africa
•   Asia
•   Australia
•   japan
STRENGTHS
•  Pidilite's 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 doesn't 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
  pidilite

Sample 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.
PIL’s product ranges
• Stationary range: fevicol MR, fevigum.
• Acron range: rangeela, wax, crayons
• Fevicry /Hobby Idea Range: acrylic
  colors, fevirat magazine
• Maintenance Range: Fevikwik, All fix, Shoe fix
• Fabricare Range: Ranipal stain, whitener
• Kids Art Range: Safe finger paints, Safe bold
  crayons
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
  everyone's 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.
Pidilite

Pidilite

  • 1.
    Pidilite Industries Limited Presented by Nidhi shrutika Rhythm Neha Nidhi ritika
  • 2.
    Company Background • Pidilitewas 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.
  • 3.
    Cont…. • Expansion ofproduct 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.
  • 4.
    Competitors • Regional brands •Small players in unorganized sector • Large companies like Jubilant Organosys
  • 5.
    PIL Export InternationallyTo • Europe • Usa • Middle east • Africa • Asia • Australia • japan
  • 7.
    STRENGTHS • Pidilite'smain 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.
  • 8.
    WEAKNESSES • The managementseems 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.
  • 9.
    OPPORTUNITIES • One cansee 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.
  • 10.
    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 doesn't require a nuclear reactor.
  • 11.
    Questionnaire • Do youknow about pidilite? • What comes to your mind, when asked about fevicol? • Are you aware about the others products of pidilite Sample survey: 10
  • 12.
    Do you knowabout pidilite Column1 YES 30% NO 70%
  • 13.
    What comes toyour mind,when asked about fevicol • Bonding a fevicol attribute • Creative advertisment • Consistent quality • Easy availability • Excellent customer relationships
  • 14.
    Are you awareabout 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
  • 15.
    Suggestions • Advertise aboutthe 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
  • 16.
    Current Scenario • TheCompany 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
  • 17.
    Marketing – NewInitiatives & 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.
  • 18.
    PIL’s product ranges •Stationary range: fevicol MR, fevigum. • Acron range: rangeela, wax, crayons • Fevicry /Hobby Idea Range: acrylic colors, fevirat magazine • Maintenance Range: Fevikwik, All fix, Shoe fix • Fabricare Range: Ranipal stain, whitener • Kids Art Range: Safe finger paints, Safe bold crayons
  • 19.
    How did Fevicolbecome ‘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
  • 20.
    Fevicol As ABrand • 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 everyone's face. • Fevicol has also kept itself relevant through repackaging of variants. • Strong advertising and distribution has made fevicol a household name.
  • 21.
    Question no#1 • Doesfevicol qualify as a brand bigger than company? What might be the implications of this? What are the possible solutions?
  • 22.
    Analysis • Oldest brand •Higher recall • Popular among consumers and carpenters alike • Enjoys higher confidence as a brand • Propelled by imaginative ads and campaigns
  • 23.
    Implications • Marketing strategyfor other brands become centric to the successful brands. • Customer loyalty towards the brand. • Benefits the company in long run. • Company shares a positive equity.
  • 24.
    Solutions • Promotional activitiesfor other brands for strong positioning • Creating awareness among the mind of customer by associating it with fevicol.
  • 25.
    Question no#2 • Comment:should the brand fevicol be extended? If yes, then when, where, how should this be done?
  • 26.
    Analysis • "Fevicol" asa 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.
  • 27.
    • Successful brandand 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.
  • 28.
    When it shouldbe 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.