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Fevicol - Krishnakant Sahu
Fevicol - Krishnakant Sahu
Preface
Acknowledgement
Certificate
Declaration by the Candidate
TOPIC NAME
PAGE NO.
CHAPTER 1 INTRODUCTION
(A) COMPANY PROFILE
(B) HISTORY
(C) KEY PERONS
CHAPTER 2 OBJECTIVE
CHAPTER 3 RESEARCH METHODOLOGY
(A) TYPE OF RESEARCH
(B) SOURCE OF RESEARCH
CHAPTER 4 PRODUCT DETAILS
CHAPTER
5
INTERPRETATION
DATA
ANALYSIS
AND
INTRODUCTION
In 2005, the Rs 400 crore- Pidilite Industries, maker of Fevicol, recorded a 23
% growth. The companys other major brands included Fevikwik, Fevigum,
Fevistick, Fevicryl and Fevibond. Fevicol stood 24th among top 150 Indian
brands.BK Parekh, Chairman, Pidilite Industries explained, The driving force
behind our success is the consistent team work of our over 2900 employees.
Together with our shared value system of commitment to excellence, closeness
to customers and the spirit of innovation we have been able to build bonds with
our customers, dealers and stake holders.
Over the years, Fevicol had commanded a consistent market share of over 60%
in the white glue market in India. Together with its brand extensions, it
accounted for over 70% of the total market.
A popular product in the industrial segment, Pidilites innovative marketing
strategies had enabled Fevicol to carve out its niche as a consumer brand. The
company had also made significant inroads in segments such as adhesive and
sealants, art materials, construction and paint chemicals and industrial specialty
chemicals. Pidilite also exported its products to more than 50 countries.
Background note
Pidilite Industries was established by the Parekh group in 1959 to make
specialty chemicals. Recognizing a demand for white glue in the Indian market,
the company launched Fevicol, a white glue, used as furniture adhesive.
Madhukar Parekh, Managing Director, Pidilite Industries recalled, The idea
was to offer something distinctly better than what customers are getting.
In its early days, Fevicol faced competition from small industries as well as
German and UK multinationals. The multinationals promoted their products
through hardware stores and timber marts. Pidilite decided to directly approach
the carpenters. The efforts paid off and by 1965, Fevicol had become a big hit
with the carpenters.
Pidilite established its manufacturing units at Mahad, Panvel and Taloja in
Maharashtra and Vapi in Gujarat. The Vapi plant manufactured adhesives and
resins, the Mahad plant manufactured resins while construction chemicals were
manufactured at the Taloja plant. A total of 7 manufacturing units were set up
by Pidilite in Gujarat and Maharashtra.
Banking on the success of Fevicol, Pidilite introduced a number of sub-brands
such as Fevikwik, Fevigum, Fevistick, Fevicryl, Fevibond and Fevitite under
the Fevicol brand name. To sharpen its focus on promoting Fevicol and its
related products as consumer brands, Pidilite established a consumer products
division in 1984. The company divided its products into two main categories,
namely, consumer and bazaar (branded) products and industrial & specialty
products. By the 1990s, Fevicol had become the market leader. The other sub brands continued to leverage the success of Fevicol. In 1997, Fevicol was
amongst the top 15 Indian brands.
Pidilite implemented Total Quality Management programs at all its
manufacturing units. The company also developed an internal quality assurance
system at its plants called Pidilite Quality System. In 1995, Pidilite obtained
ISO 9001 certification for the Mumbai and Vapi plant and ISO 9002
certification for the Mahad plant. All these measures went a long way in
improving product quality.
Pidilites humour based advertisements during the 1990s and a number of brand
acquisitions in early 2000 helped to increase revenues rapidly. According to a
survey conducted by The Economic Times in 2002, Fevicol stood 25th in the
list of top Indian brands, leaving behind popular brands such as Amul, Bajaj,
Dabur, Godrej and Cadbury. In 2003, another survey by the Economic Times
ranked Pidilite Industries as 138th in the list of 200 most valuable companies of
India.
Pidilite also concentrated on exports. In 1999, the company was declared an
Export House by the Government of India. In 2005, Pidilite established a
wholly owned subsidiary in Singapore called Pidilite International Pte Ltd. The
main objective was to grow in international markets through acquisitions and
joint ventures.
Building bonds with customers
In 1959, when Fevicol entered the Indian market, the product faced stiff
competition from small
companies in the unorganized sector and multinationals. German-based MNC
Hoechst Dyes and
Chemicals had launched its white glue called Movicol in 1961 in collaboration
with the Mafatlal group. Another UK-based MNC, Calico Chemicals had also
launched its branded glue called Calibond.
Pidilite adopted a direct marketing approach to promote Fevicol. The company
sent its sales force to various parts of India to directly approach the carpenters.
The company also created a database of carpenters. In 1975, Pidilite launched a
magazine called Fevicraft. The magazine provided an insight to the carpenters
on furniture designs. By 1980, Fevicol had become the favourite adhesive of
carpenters.
feedback from users and a wide distribution coverage are our key strengths.
Acquiring brands to drive growth
To facilitate further growth and avoid excessive reliance on Fevicol, Pidilite
planned to add more brands to the existing portfolio. In 2000, Pidilite acquired
the Ranipal brand from Indian Dyestuff Industries, a Mafatlal group company,
for Rs 4 crores. A well-known fabric whitener in the household market, Ranipal
accounted for only 1% of the fabric care market with an annual turnover of Rs
2.5 crores. But Pidilite felt that the brand had a huge potential for growth.
During the same year, Pidilite acquired popular brands M-Seal and Mr Fixit
and the entire adhesive and sealant business of Mahindra Engineering and
Chemical products for Rs 32 crores.
M-Seal was a sealant used to seal cracks and joints. Mr Fixit was a chemical
used in construction materials. M-seal was the market leader in sealants ahead
of Pidiltes Fevi-Seal. M-Seal commanded 56% of the market share and had an
annual turnover of around Rs 17 crore in the Rs 30 crore sealant market. With
the acquisition of M-Seal, Pidilite hoped to completely dominate the sealant
market.
In 2002, Pidilite acquired another brand called Steelgrip, an electrical
insulation tape from Bhor Industries for Rs 8.73 crores. The brand was a leader
in the insulation tape segment and had a 25% market share. Madhukar Parekh
explained, We intend beefing up the brand to have a 50% market share.
In 2004, Pidilite acquired Roff, a popular chemical brand of Roff
Construction Chemicals. Roff had a wide product range and a strong
distribution network. Pidilite felt that the acquisition of the brand would help its
specialty chemicals business grow significantly.
Other acquisitions by Pidilite included brands such as Bulbond and Vitapon in
the industrial resinsegment for Rs 7.2 crores from Parekh Marketing Ltd.
Industrial resins were organic materials made of plant or animal secretions used
for bonding. The company also acquired smaller brands in the same category
such as Kalvyl, Tracol and Parvyl for Rs 1.85 crores from Kalva Chemicals
Ltd. Madhukar Parekh asserted that Pidilite would acquire only those brands
that were already market leaders in their segment or had the potential to
become a leader.
Achieving growth in international markets
After strengthening its position in the Indian market, Pidilite planned to focus
on exports. Since international markets offered nearly the same margins when
Company Profile
8.1 Company Information
Board of Directors
B K Parekh Chairman
S K Parekh Vice Chairman
M B Parekh Managing Director
N K Parekh Joint Managing Director
R M Gandhi Director
N J Jhaveri Director
Bansi S Mehta Director
Ranjan Kapur Director
Yash Mahajan Director
Bharat Puri Director
D Bhattacharya Director
Sanjeev Aga Director (wef 29.07.2011)
A B Parekh Wholetime Director
A N Parekh Wholetime Director
J L Shah Director (upto 08.11.2011)
R Sreeram Wholetime Director (wef 08.11.2011)
Corporate Office
Ramkrishna Mandir Road
Off Mathuradas Vasanji Road
Andheri (E), Mumbai 400 059
Registered Office
Regent Chambers, 7th Floor
Jamnalal Bajaj Marg
208, Nariman Point
Mumbai 400 021
Registrar & Transfer Agent
TSR Darashaw Limited
6-10, Haji Moosa Patrawala Ind.
Estate
20, Dr. E Moses Road, Mahalaxmi
Mumbai 400 011
Company Secretary
Savithri Parekh
Solicitors & Advocates
Wadia Ghandy & Co
Auditors
Haribhakti & Co
Internal Auditors
Mahajan & Aibara
Bankers
Indian Overseas Bank
Corporation Bank
ICICI Bank
The Royal Bank of Scotland N.V.
`
8.2 Values & Vision
'Delight customers by offering quality products and services.'
'Be a business leader by promoting innovation and achieving global
standards.'
These are the values and vision of Shri M. B. Parekh Managing Director, on
which Pidilite Industries Ltd. performs and delivers quality products to its
millions of consumers.
8.3 Quality
The products that are designed to satisfy the needs and expectations of
customers are developed by dedicated Research & Development (R & D)
professionals and tested with end users before launching.
Pidilite spends fairly large resources on R & D of its products and processes.
Pidilites team of scientists at its six R & D laboratories has developed the
entire range of the Companys products.
The quality of products is assured and supported by well-defined, structured
and focused quality assurance system that is continuously audited and upgraded
in line with in-house Quality Policy.
The state-of-the-art manufacturing facilities are located at Mahad, Panvel and
Taloja in Maharashtra and Vapi in Gujarat. The manufacturing processes are
precisely controlled and monitored. Its Industrial products segment and four
manufacturing units at Mahad A/22, Vapi 78, Vapi 23 and Andheri are ISO9001 certified by RWTUV.
Even branded products in the consumer and bazaar products category strictly
follow quality parameters defined under the Companys internally designed
Pidilite Quality System (PQS).
KEY PERSONS
B. K. Parekh,Chairman.
(1)
(2)
RESEARCH METHODOLOGY
According to Green and Tall A research design is the specification of the
methods and procedures for acquiring the information needed. It is the overall
FEVICOL PRODUCTS
FEVICOL MR
Used for Art & Craft activities.
Used in activities like collage making, bread crafting, papier-mch & other
craft techniques.
Bonding/sticking paper, cardboard, thermocole, fabrics, wood, plywood, etc.
Features & Benefits
Strong bonding.
Packing
10g Cone Pack.
10g Aangular Tip.
100g Squezee Bottle.
500g Flip Top.
1Kg Flip Top.
15g Tub Pack.
25g Tub Pack.
10g Angular Tip Tube.
30g Angular Tip Tube.
30g glue Pen.
25g Tub Pack.
50g Plastic Container.
FEVI STIK
Used for bonding most plastics, rubber, ceramic, metal and porous materials
like wood, leather.
Used for repairing broken plastic parts, joining footwear, leather articles,
making O` rings.
Bonding/sticking paper, cardboard, thermocole, fabrics, wood, plywood, etc.
Features & Benefits
Bonds in an instant.
Withstands temperature from -40c to 90c.
Packing
500mg, 1g, 2g, 3g, 5g, 20g.
Fevicol SH
Synthetic Resin Adhesive used for bonding wood, plywood, laminates, veneers,
particle boards, block board/hard board & MDF to each other. Ideal for
woodworking.
Features & Benefits
Packing
Fevicol Marine
Fevicol Speedx
Synthetic Resin Adhesive with faster drying time, Fevicol Speedx could be
used for bonding wood, plywood, laminates, veneers, particle boards, block
board/hard board & MDF to each other.
Features & Benefits
Packing
Fevicol WRA
Fevicol WRA is India`s 1st Wood Reiforced adhesive. It could be used for
bonding wood, plywood, laminates, veneers, particle boards, block board/hard
board & MDF to each other.
Features & Benefits
Packing
1 kg, 2 kg, 5 kg, 10 kg, 20 kg, 50 kg.
Inference:
Advertising Promotes:
Product
Knowledge
Quality
Knowled
ge
18%
12%
38%
10%
2%
20%
Knowledge
of use or
Extended
use
Inference:
18% of the people reply that by seeing commercial they get Quality
knowledge.
38% states that they get awareness about the product through ad.
20% says that they get to know about the Extended use of the product.
12% of the respondents say that through the ad they get the knowledge of
about both Product and Quality.
Only 2% of the respondents are agreeing that the commercial provide them
knowledge of both Product and Extended use of product.
There are 10% such respondents who reply that they get all of the above
factors while viewing ad.
Inference:
54% of respondents admitted that their purchase decision got effected
through advertisement.
While 24% feels that their decision is not derived through ad exposure.
22% of respondents are indecisive in this concern.
Inference:
Quality polls out to be the most affluent factor that drives prospects to
purchase.
Price and Band Name both are ranked as second most influential factor that
people generally considered while purchasing a product
Availability of the brand also plays a crucial role as it has 10% respondents
in its favor.
Inference:
The very first purchase factor is due to Ad seen over TV, 64% of
respondents are agreeing on this statement.
20% of respondents made first purchase due to effectiveness of Mouth
publicity, i.e. they have heard from others.
Brand promotional measures also play role in first purchase as 10% of the
respondents made first purchase by the influence of shopkeeper.
6% of the respondents have different opinions that make them to purchase it
for the first time.
Inference:
52% of the respondents are regular purchaser of Fevicol, i.e., the market
share of Fevicol is nearly half of the total market.
Around 6% are the people who are at primary stage as they are either using
it for the first time or as second purchase.
The market consists of nearly 42% of such respondents who like to switch
on different brands they are not brand loyal.
Inference:
56% of respondents feel that Ad helps them to conform their decision and
also promote to repurchase the same brand.
While 16% of the respondents didnt see any effect of Ad over their
repurchase decision of brand, they say its purely their own intuition to rebuy a product.
Rests of the respondents are unable to analyze the cue that held responsible
for repurchase.
Inference:
Respondents like to purchase Fevicol due to:
56% of the respondents prefer to purchase due to its quality offering.
While 32% of the respondents looks it as a brand name purchase.
And the rest 12% looks for it only if other product cheaper than it is not
available.
1. SWOT ANALYSIS
Strengths:
Wide range of products.
Brand recognition.
Brand Standardized products.
Capable of surviving in Long run.
Products are familiar to consumer.
Good efforts for Research & Development facilities.
Employees beneficiary plans that attract potential employees.
Result oriented products.
Financially sound.
Good Diversified Management.
Background of successful mergers and acquisitions.
Goodwill of last 45+ years.
Nation-wide presence.
Good advertising and promotional strategies.
Weakness:
Presence of lower priced products makes market weaker in some areas.
Nationwide same strategy.
No endorser of brand.
Pidilite as a whole depended a lot over Fevicol, while in all it has 40
brands.
Advertisements are now in remembering phase, which means it has to be
now emphasized over new product developments.
Opportunities:
LIMITATIONS OF STUDY:
1. The scope of the study is limited only towards the Sagar city from where
the data is collected.
2. It was very time consuming.
3. Responses of the respondents may be biased and not reliable.
4. The findings are based on survey conducted in the month December2011 to February 2012 the result may vary in other month.
5. The study covers the effectiveness of promotion mix of Fevicol and
cannot be applied to other products.
CONCLUSION
While doing the market survey and meeting the people, the general opinion
found was that some of the Respondents were unfriendly and some of them
appreciated our work and the questionnaire prepared by us because it was also
useful for them to know the various offers provided by Fevicol
which
indirectly helped them in their buying decision. More preference was given to
Quality of Fevicol .
After meeting so many respondents/sample units and talking to them about
their suggestions for Fevicol
company should provide more attractive offers as many people are influence by
offers provided by Fevicol .
While some respondents recommended that Fevicol should be deliver at door
step. Some other recommendations that Fevicol
2. Questionnaire
Q. Could you complete this brand name: _ _ _ _ COL
Q. Have you ever seen the above band name in advertisement?
Yes( )
No( )
No( )
No( )
Cant say( )
Thank you for your cooperation and providing useful information to us.
Name: ___________________________________.
Age: ____________________________________.
Occupation: ______________________________.
Address: _________________________________
Contact No.: ______________________________.