Understand The Golden Relationship Bond Program

and Recommend Ways to Improve Its effectiveness

Anurag Mishra

Indian Institute of
Management Indore

OBJECTIVE ............................................................................................................................................................. 3
ACTION PLAN ......................................................................................................................................................... 3
METHODOLOGY ..................................................................................................................................................... 3
SECONDARY FINDINGS........................................................................................................................................... 5
STUDY OF MARKET RESEARCH FIRMS AND INSTITUTES............................................................................................................5
Findings from Companies: .....................................................................................................................................6
PRIMARY RESEARCH .............................................................................................................................................. 7
Key Insights ...........................................................................................................................................................7
Pain Points ............................................................................................................................................................7
MAIN SURVEY FINDINGS MUMBAI & PUNE (N=122) ........................................................................................... 8
Classifications: ......................................................................................................................................................8
Exclusivity: .............................................................................................................................................................8
Product Usage: ......................................................................................................................................................9
Tenure: ................................................................................................................................................................10
Sports/quiz Participation Willingness: .............................................................................................................10
Social Initiatives: .................................................................................................................................................10
Festive Occasion Expectation: ..........................................................................................................................11
Competitions Willingness: ................................................................................................................................11
Training & Certification Programs: .....................................................................................................................12
FCCR (Snapshot): .................................................................................................................................................12
Knowledge about any other Loyalty Programs: ..................................................................................................14
Net Promoter Score: ............................................................................................................................................14
DISCRIMINANT ANALYSIS (IN SPSS) ..................................................................................................................... 15
ANALYSIS OF CONSUMER EXPECTATION - MUMBAI ............................................................................................ 16
Simple Average rating Method: ..........................................................................................................................16
Conjoint Analysis- Mumbai .................................................................................................................................17
Conjoint Analysis- Pune .......................................................................................................................................20
COMPETITIVE ANALYSIS....................................................................................................................................... 24
GAPS IDENTIFIED ................................................................................................................................................. 25
RECOMMENDATIONS .......................................................................................................................................... 26
COST ANALYSIS .................................................................................................................................................... 28
ANNEXURE........................................................................................................................................................... 28

To design a loyalty program under the name Golden Relationship Bond Program for a focused target
group of contractors (Super A & Class - A) and check its effectiveness.

Target

Benchmarking
Loyalty

Assessent

Practices

Development
of Plan

Recommendations
Understand
their Needs
and Wants

Mapping of
the practices
with the TG

Testing of the
plan

Secondary Research
Primary Research (in 4 stages)

Who is my
target
group?

Secondary
Findings

Stage 2

Stage 1
Loyalty
Program
Development

Stage 3
Target
Group
Insights

Analysis
&
Recommendations

Stage 4

Stage - 1: Exploratory research (Primary Research PART - 1) to have an introduction of the

working of contractors and have a general outlook of their behavior. This involved informal
questioning approach, noting of observations and drawing of insights out of them for the
preparation of questionnaire. This stage also involved defining of the target group.

Stage 2: It has two parts:

Secondary research involving the study of various best loyalty practices in varied industries
Primary Research PART 2: involves much focused and directed questioning (based on a draft
questionnaire) regarding loyalty programs and their views on the current rewards program of
Pidilite (FCCR) are to be noted. The responses are to be recorded and insights to be drawn
accordingly.
Stage 3: Based on the Target group needs (insights drawn from stage -2) and the secondary
findings, a pilot testing (Primary Survey PART - 3) is done. Incorporating whether the data is ideal,
changes are made and the final questionnaire is prepared, regarding the loyalty program and
Primary research PART 4 is done.
Stage - 4: Consists of the analysis of the responses and development of a plan, followed by testing
and then narrowing on final recommendations. Analysis contains identification of Clusters
(Tenure-wise, Consumption-wise, Threat-Exclusive) and then a cluster analysis. A Discriminant
analysis gives us a picture of relationship between ratings of various independent parameters and
overall Loyalty. Further correlations and observations from the trends are showed and insights
are drawn.

HYPOTHESIS TESTING: The loyalty program findings by Market research firms, Benchmarking Loyalty
Practices prevalent in companies of various sectors, and our Target groups insights are studied. Based
on all these the following hypothesis are suggested:
NULL HYPOTHESIS: Either the loyalty program is not relevant to our target group (Super A & A
contractors) or the loyalty program is already in place in the company, then no changes are to be
made.
ALTERNATE HYPOTHESIS: If the above parameters are not satisfied, then the NULL HYPOTHESIS is
rejected.

Study of Market research firms and Institutes

SL.
NO.
1.

INSIGHTS

FEEDBACK

2.

Public/Private recognition from Top Management

People
Personalized Gifts

3.

Employee referrals

4.

Community Formation

NOT PRESENT
& RELEVANT
NOT PRESENT
& RELEVANT
NOT PRESENT
& RELEVANT
Already in FCC

5.

Gifts based on Tenure

6.

Achievements of family members are also

recognized, appreciated and rewarded publicly
within the organization
Extent of feedback and inputs sought from
supervisors, managers and employees on what
should be recognized and appreciated
Recognition by making them participate in some type
of Competitions

7.

8.

9.

Promotion of Vendors

10.

Loyalty points accumulation and redemption

11.

Product Discounts

NULL
HYPOTHESIS

WHETHER TO BE
CONSIDERED?
YES
YES
YES
NO

NOT PRESENT
& RELEVANT

YES

NOT PRESENT
& RELEVANT

YES

NOT PRESENT
& RELEVANT

YES

NOT PRESENT
& RELEVANT
NOT PRESENT
& RELEVANT
Already in FCCR

YES

NOT PRESENT
& RELEVANT

YES

YES
NO

So from the above table, it is clear that 9 out of 11 insights can be incorporated in the development
of the new loyalty program. The reason behind that being, other 2 practices (or a modified version of
these) are either already present in our company or these are not at all relevant in our case. Further
research on the loyalty programs of various companies across different sectors gives more insights
such as:

Findings from Companies:

INDUSTRY

COMPANY

LOYALTY
PRACTICE/PROGRAM

FEEDBACK

TRANSPORTATION INTERGLOBE
ENTERPRISES

MEDIA
RETAIL

IT

MANUFACTURING
& PRODUCTION
POWER

EDUCATION

IT
RETAIL
BEVARAGES
FINANCIAL
SERVICES
RETAIL
RETAIL
FINANCIAL
SERVICES
FINANCIAL
SERVICES &
INSURANCES

Experiential Gift (Rather than

consumables)
for
the
employees
with
high
achievement
RADIO CITY Recognition in front of all the
91.1 FM
employees
UNITED
Awards
based
on
COLORS OF experience/tenure
BENETTON
INTEL INDIA
Indulging
vendors/employees in social
initiatives and awarding the
winner (competitions)
MAHINDRA
Initiatives to reward the
achievements of employees
family
NTPC
Competitions for employees
children (quiz/sports)
Redeemable points with
gifts, customer care, and
other promotional services
NORTEL
Training & Certification
programs for vendors
PATAGONIA
Tying up with E-bay to serve
the loyal customers better
BARISTA
Earning of points and
equivalent cash-back system
STATE BANK Points accumulation and
OF INDIA
redemption
SHOPPERS
Points accumulation and
STOP
redemption
CROSSWORDS Points accumulation and
redemption
UJJIVAN
Stock options are awarded to
the loyal customers

NOT PRESENT
& RELEVANT

NOT PRESENT
& RELEVANT
NOT PRESENT
& RELEVANT
NOT PRESENT
& RELEVANT

NULL
HYPOTHESIS

WHETHER TO
BE
CONSIDERED?
YES

YES
YES

YES

NOT PRESENT
& RELEVANT

YES

NOT PRESENT
& RELEVANT

YES

NOT PRESENT
& RELEVANT
NOT PRESENT
& RELEVANT
NOT PRESENT
& RELEVANT
NOT
RELEVANT
PRESENT IN
FCCR
PRESENT IN
FCCR
PRESENT IN
FCCR
NOT
RELEVANT

YES

NOT
RELEVANT

NO

NIIT INDIA

AMERICAN
EXPRESS

Workplace initiatives
loyal employees

for

YES
YES
NO
NO
NO
NO
NO

In this case also, only 9 out of 15 insights are further considered in developing the loyalty program on the
basis of same criteria used for MR firms and institutes. On the other side, primary research was done to
understand the sentiment of the target group and following insights were found.

Key Insights

Most of the people in the TG are not concerned with Financial value, rather in emotional value
Referral Policy can be a huge success : 100% of the contractors recommend Pidilite to their
fellow contractors (Friends and Relatives)
There should be some incentive policy based on tenure, apart from just consumption
Public and private recognition may lead to an emotional connect
Contractors want product trials and demonstrations of new Pidilite products as a sign of
confidence
Very interested in the company financed trips (based on specific responses)
Instead of consumables and gifts, they suggest some professional help (training/skill
development/business leads) from Pidilite
The difference between Pidilite and its competitor brands is Price and Quality difference

Pain Points

Contractors are facing problems with the passbook system of FCCR points. They have multiple
carpenters working under them in various sites and the carpenters directly keep the pass book
with themselves. Plus the dealers doesnt bother to differentiate between carpenters and
contractors (or does not have the incentive)
The FCCR scheme is meant for contractors but what was observed that dealers accumulating
points and pasting it in the pass book of one of his contractors and redeeming the gifts

Then incorporating the secondary and primary findings in the questionnaire, the main survey was
conducted and the following findings were found out.

Classifications:

Mumbai 8
Pune - 3

Classification of the respondents on the basis of their

monthly intake:
Less than 50 Kg Class D
50-100 kg Class C
100-200 kg Class B
200-400 kg Class A
Greater than 400 kg Super A

Mumbai 25
Pune - 26

Mumbai 35
Pune - 25

Exclusivity:

Exclusivity Wise (Overall)

70
60
14

50
40

15

30
20

46
36

10

5
6

0
Super - A

Class A

Class B
YES

0
Class C

NO

70% of Super-A Contractors,

76% of Class A, and 54% of Class
B are Exclusive to Pidilite products.

0
Class D

Split-up of Threat Brands

11%
73%

27%

1%

1%
2%
1%

Exclusive to Pidilite
Karpenter
Furnicol
Falcofix
Bullbond

3%
3% 3%

Jivanjor
Bluecoat
Yugcol
Kushal
Woodgrip

Product Usage:

MARINE

is the most used PWG

product, followed by

X and Heat-X

2%

SH, Speed-

Out of the Threat buying contractors,

major
Threat
Products
are

FALCOFIX, JIVANJOR
KARPENTER

&

Tenure:

Average Tenure
= 17 Years

Tenure Wise
classification of Super A,
Class A and Class B
Contractors

Sports/quiz Participation Willingness:

48% of Super-A Contractors,

57% of Class A, and 47% of Class
B are willing to push their children to
participate in competitions.

Social Initiatives:

Awareness of Social Initiatives

37% of Super-A Contractors,

49% of Class A, and 81% of Class
B are aware of Social Initiatives
(Shram-Daan Divas) by the company.

Class D 0
Class C 0
Class B

Class A

2
24

Super - A

36

19
0

10

32
20

30
YES

40
NO

50

60

70

Willingness of Social Initiatives

Class D 0

88% of Super-A Contractors,

87% of Class A, and 100% of

Class C 0
Class B

Class B are willing to take part in

Social Initiatives by the company.

11

Class A

52

Super - A

44
0

10

20

30

40

YES

50

60

70

NO

Festive Occasion Expectation:

Apart from the overall picture,

5-star Treat
most

preferred

Mumbai,

Gift

and

is the

option

Special

is the most preferred

option in Pune.

Competitions Willingness:

Interest to Participate in Competitions

70
60

93% of Super-A Contractors,

57% of Class A, and 46% of
Class B are willing to take part in
competitions.

50

26

40
30
20

46
34

10

6
5

0
Super - A

Class A

Class B
YES

NO

in

0
Class C

0
Class D

Training & Certification Programs:

Knowledge about Training Programs

2%
2%
2%
88%

1%

12%

1%
2%

NO IDEA

Godrej

Century

Marine Laminates

Green

2%

Falcofix

Bajaj

3M

3.5

Months

Average Training
Frequency

Training Programs on a

Monthly basis

is the most preferred option

FCCR (Snapshot):

58%

Overall
aware of
program.

of the public is
the current FCCR

3.6/5
Average rating
of FCCR Program

On splitting the respondents

75% of
Super A and 73% of Class-A
into groups, only

contractors are aware of FCCR.

In class-B, awareness is more i.e.

90%

34% in Super A,
40% in Class A, and 45% in Class
Low Satisfaction -

B with regard to Passbook System

FCCR.

33% of the respondents want to

continue with the current Passbook

58% want an automated

SMS system, and 9% want a TollSystem,

free system

Knowledge about any other Loyalty Programs:

The main loyalty programs, gift

schemes that the respondents
have knowledge about are
mentioned here.

Net Promoter Score:

Defined as the extent Pidilite brand is recommended by contractors (SA and A) to fellow contractors

3%

4%

93%

=
Its observed that the NPS of Pidilite is 90% which is very strong in any product category.

90%

The purpose of this analysis is to establish a relation between the OVERALL LOYALTY and independent parameters like
INTAKE, EXCLUSIVE/THREAT and TENURE WITH PIDILITE and to grade the respondents on the basis of this loyalty
function.
A full-fledged Analysis was done taking the sample collected. The tenure, exclusive/threat and consumption was taken
from the responses directly. These are the independent variables. The dependent variable is the Loyalty Number.
Firstly, the loyalty was assigned defined as a categorical variable i.e. divided into three categories Most Loyal,
Loyal, and Least Loyal and the various respondents were divided into these three categories. These are given
respective weights and fed into SPSS along with the independent variables. The following results snapshots are taken.

This value p < 0.05 shows that the

data collected is statistically fit for
Discriminant Analysis.

Thus, the Discriminant Function for Loyalty =

0.788*Tenure + 0.807*Exclusivity + 1.020*Intake

The 87.7% figure shows that a fairly correct execution of data analysis with 83.3% sensitivity and
95.7% specificity.

Two procedures
1) Simple Average rating Method

2) Conjoint Analysis

Simple Average rating Method:

The purpose of this method is to do a preliminary analysis of the customer expectation options, and to take
selected factors into consideration for final recommendation.
These are the options given in the questionnaire in the surveys as to what the Target Group (Super A and Class-A
Contractors) expect from Pidilite as a customer.
1. Product Discounts
2. Gifts (like FCCR)
3. Training & Skill development programs for carpenters,
4. Free trial/Demonstration of new products
5. Family trips
6. Recognition in events (Awards, trophies from high management people)
7. Children scholarship & Shopping coupons
8. Personalized Gifts
9. Rewards on basis of tenure
10. Helpline Portal meant for Contractors
11. Gifts for carpenters specifically
Adjustments done:
1. For ease of analysis, these 11 options are clubbed into 5 broad categories of expectations i.e.
Categories
1
2
3
4
5

Headings
Gifts & Discounts
Knowledge Differentiation
Family Incentives
Rewards & Recognitions
Business Lead Generation

Sub-Options (From Above)

Product Discounts + Gifts (FCCR) + Gifts for Carpenters
Training for Carpenters + Free Product trials & Demonstrations
Family trips + Children scholarship & Shopping coupons
Recognition in events + Tenure gifts
Personalized Gifts(catalogues) + Helpline portal meant for Contractors

The rating of these categories are calculated by taking the average of all the sub options under it.
For Example; for any respondent, Gift & Discounts rating is the average of ratings of Option 1 (Product
Discount), Option 2 (Gifts-FCCR) and Option 11 (Gifts for carpenters specifically)

Mumbai (N=68)
1. Average rating for a small sample of N=68, for the above 5 categories was constructed in tabular format
2. Depending upon the average rating of these 68 observations, the following bar-graph is constructed.

Customer Expectations - Average Rating Analysis

Business Lead generation

Attributes

Rewards & recognition

Family Incentives
Knowledge Differentiation
Gifts and Discounts
0

10

Ratings

Conjoint Analysis- Mumbai

The purpose of the Conjoint Analysis is to statistically show which factors are of high priority and which
are of low priority. This is done to cross check/validate the results of the Simple Average rating method.
This takes into consideration the frequency of responses for each categories.

Adjustments done:
To reduce the number of combinations, the ratings 1-10 are divided into three groups (Ratings 1-3, 4-7
and 8-10). This reduces the number of combinations from 105 (i.e. 10 lakh) to 35 (i.e. 243)
Number of Combinations = No. of rating combination Number of Categories
= 35 = 243 combinations
On performing, the conjoint analysis (Dummy variable method), and the following summary Output
follows:

SUMMARY OUTPUT
Regression Statistics
Multiple R
R Square
Adjusted R Square
Standard Error
Observations

0.43208054
0.18669359
0.13008555
1.29850205
243

ANOVA
df
Regression
Residual
Total

Intercept
Gift (45)
Gift (67)
Gift (810)
Knowledge (45)
Knowledge (67)
Knowledge (810)
Family(45)
Family(67)
Family(810)
Rewards(45)
Rewards(67)
Rewards(810)
Business Lead(45)
Business Lead(67)
Business Lead(810)

15
232
247

SS
89.79423868
391.1769547
480.9711934

MS
5.986283
1.686108

F
5.325534

Significance F
3.88052E-09

Coefficients
0.33744856
0.12345679
0.49382716
0.0012
-0.7037037
-0.5679012
0.4588
-0.3950617
-0.0987654
0.334
-0.1728395
0
0.49382716
-0.0617284
0
0.71604938

Standard Error
0.276271346
0.204039912
0.204039912
0
0.204039912
0.204039912
0
0.204039912
0.204039912
0
0.204039912
0
0.204039912
0.204039912
0
0.204039912

t Stat
1.221439
0.605062
2.420248
65535
-3.44885
-2.78329
65535
-1.9362
-0.48405
65535
-0.84709
65535
2.420248
-0.30253
65535
3.509359

P-value
0.22316
0.545729
0.016279
#NUM!
#NUM!
0.005825
#NUM!
#NUM!
0.628807
#NUM!
#NUM!
#NUM!
#NUM!
0.762518
#NUM!
#NUM!

Lower 95%
-0.206872833
-0.2785512
0.09181917
0
-1.105711694
-0.969909225
0
-0.797069719
-0.500773423
0
-0.574847497
0
0.09181917
-0.463736386
0
0.314041392

Upper 95%
0.88177
0.5254648
0.8958352
0
-0.301696
-0.165893
0
0.0069463
0.3032426
0
0.2291685
0
0.8958352
0.3402796
0
1.1180574

This summary output table above, shows the regression table result, for the 243 observations.

The highlighted coefficients shows the weights of the respective components and their contribution in the responses. This
takes into account the ratings given to these parameters on the Likert Scale, as well as the frequency of these responses.
The color coding followed Green to Red means Maximum to Minimum. A more meaningful deduction from this
summary output is as follows:

Attributes
Business Lead(810)
Gift (47)
Rewards(810)
Knowledge (810)
Family(810)
Gift (13)
Gift (810)
Rewards(13)
Business Lead(13)
Business Lead(47)
Family(13)
Rewards(47)
Family(47)
Knowledge (13)
Knowledge (47)
Sum

Coefficients
0.7160494
0.4938272
0.4938272
0.4588
0.334
0.1234568
0.0012
0
0
-0.0617284
-0.0987654
-0.1728395
-0.3950617
-0.5679012
-0.7037037

Absolute Value
0.716049383
0.49382716
0.49382716
0.4588
0.334
0.12345679
0.0012
0
0
0.061728395
0.098765432
0.172839506
0.395061728
0.567901235
0.703703704

Percentage
15.50%
10.69%
10.69%
9.93%
7.23%
2.67%
0.03%
0.00%
0.00%
1.34%
2.14%
3.74%
8.55%
12.29%
15.23%
100.00%

Explanation: This means that, for example: Number of people giving (RATING 8-10) to Business Lead category
have the highest proportion of 15.50% and similar results have been calculated for other categories.
The graphical representation of the conjoint analysis for Mumbai region is as follows:

Attributes

Consumer Expectation - Conjoint Analysis (Mumbai)

Business Lead(810)
Business Lead(47)
Business Lead(13)
Rewards(810)
Rewards(47)
Rewards(13)
Family(810)
Family(47)
Family(13)
Knowledge (810)
Knowledge (47)
Knowledge (13)
Gift (810)
Gift (47)
Gift (13)
0.00%

2.00%

4.00%

6.00%

8.00%

10.00% 12.00% 14.00% 16.00%

Percentages

Pune (N=54)
1. Average rating for a small sample of N=68, for the above 5 categories was constructed in tabular format
2. Depending upon the average rating of these 68 observations, the following bar-graph is constructed.

Customer Expectations - Average Rating Analysis

Attributes

Business Lead generation

Rewards & recognition
Family Incentives
Knowledge Differentiation
Gifts and Discounts
0

10

Ratings

Conjoint Analysis- Pune

The purpose of the Conjoint Analysis is the same here as that done in the Mumbai region i.e. to statistically
show which factors are of high priority and which are of low priority. This is done to cross check/validate
the results of the Simple Average rating method. This takes into consideration the frequency of
responses for each categories.

Adjustments done:
To reduce the number of combinations, the ratings 1-10 are divided into three groups (Ratings 1-3, 4-7
and 8-10). This reduces the number of combinations from 105 (i.e. 10 lakh) to 35 (i.e. 243)
Number of Combinations = No. of rating combination Number of Categories
= 35 = 243 combinations
On performing, the conjoint analysis (Dummy variable method), and the following summary Output
follows:

SUMMARY OUTPUT
Regression Statistics
Multiple R
R Square
Adjusted R Square
Standard Error
Observations

0.41382972
0.17125503
0.11398154
1.15585208
243

ANOVA
df
Regression
Residual
Total

Intercept
Gifts(13)
Gifts(47)
Gifts(810)
Knowledge(13)
Knowledge(47)
Knowledge(810)
Family Incentives(13)
Family Incentives(47)
Family Incentives(810)
Rewards(13)
Rewards(47)
Rewards(810)
Business Lead(13)
Business Lead(47)
Business Lead(810)

15
232
247

SS
64.04938272
309.9506173
374

MS
4.269959
1.335994

F
4.794137

Significance F
4.70302E-08

Coefficients
0.09876543
-0.2222222
0.11132009
0.44454944
-0.5925926
-0.5185185
0.5644485
-0.1481481
-0.1111111
0.33856744
-0.0246914
-0.022234
0.61728395
-0.0493827
0.1223009
0.5308642

Standard Error
0.245920915
0.181624633
0.181624633
0
0.181624633
0.181624633
0
0.181624633
0.181624633
0
0.181624633
0
0.181624633
0.181624633
0
0.181624633

t Stat
0.401615
1.223525
2.447049
65535
-3.26273
-2.85489
65535
-0.81568
-0.61176
65535
-0.13595
65535
3.39868
-0.27189
65535
2.922865

P-value
0.688337
0.222373
0.015146
#NUM!
#NUM!
0.004695
#NUM!
#NUM!
0.541294
#NUM!
#NUM!
#NUM!
#NUM!
0.785945
#NUM!
#NUM!

Lower 95%
-0.385758268
-0.135622246
0.086599977
0
-0.95043706
-0.876362986
0
-0.505992616
-0.468955579
0
-0.382535826
0
0.259439483
-0.407227184
0
0.17301973

Upper
95%
0.5832891
0.5800667
0.8022889
0
-0.234748
-0.160674
0
0.2096963
0.2467334
0
0.3331531
0
0.9751284
0.3084618
0
0.8887087

This summary output table above, shows the regression table result, for the 243 observations.

The highlighted coefficients shows the weights of the respective components and their contribution in the responses. This
takes into account the ratings given to these parameters on the Likert Scale, as well as the frequency of these responses.
The color coding followed Green to Red means Maximum to Minimum. A more meaningful deduction from this
summary output is as follows:

Attributes
Rewards(810)
Knowledge(810)
Business Lead(810)
Gifts(810)
Family
Incentives(810)
Business Lead(47)
Gifts(47)
Rewards(47)
Rewards(13)
Business Lead(13)
Family Incentives(47)
Family Incentives(13)
Gifts(13)
Knowledge(13)
Knowledge(47)
SUM =

Coefficients
0.61728395
0.5644485
0.5308642
0.44454944
0.33856744
0.1223009
0.11132009
-0.022234
-0.02469136
-0.04938272
-0.11111111
-0.14814815
-0.22222222
-0.29259259
-0.51851852

Absolute Value Percentage

0.617283951
14.99%
0.5644485
13.71%
0.530864198
12.89%
0.444549444
10.79%
0.33856744
0.122300904
0.111320093
0.022234
0.024691358
0.049382716
0.111111111
0.148148148
0.222222222
0.292592593
0.518518519
4.118235196

8.22%
2.97%
2.70%
0.54%
0.60%
1.20%
2.70%
3.60%
5.40%
7.10%
12.59%
100.00%

Explanation: This means that, for example: Number of people giving (RATING 8-10) to Rewards &
Recognition category have the highest proportion of 14.99% and then so on & so forth for other categories.
The graphical representation of the conjoint analysis for Pune region is as follows:

Consumer Expectation - Conjoint Analysis (Pune)

Business Lead(810)
Business Lead(47)
Business Lead(13)
Rewards(810)
Rewards(47)

Attributes

Rewards(13)
FamilyIncentives(810)
FamilyIncentives(47)
FamilyIncentives(13)
Knowledge(810)
Knowledge(47)
Knowledge(13)
Gifts(810)
Gifts(47)
Gifts(13)
0.00%

2.00%

4.00%

6.00%

8.00%

10.00% 12.00% 14.00% 16.00%

Preference Percentage

1. FCCR (Fevicol Champions Club Rewards) Program stand alone is not sufficient to cater to the needs of Super A
And A contractors

Specially in Mumbai, substantial percentage of contractors (28%) of contractors are unaware of and (10%)
are uninterested in FCCR

2.
3.

Good Loyalty Programs in other companies attract contractors i.e. certain contractors specifically
mentioned other companies loyalty initiatives
A Total-Stitched Loyalty program that encompasses the following aspects will attract contractors

4.

Contractors in different markets have different expectations:

In Mumbai, inclination was more towards Experiential Gifts (Treats, Trips) than towards
consumable gifts
In Pune, inclination was more towards Special Gifts than towards Experiential Gifts (Treats,
Trips)

5.

Contractors appreciate rewards on the basis of tenure

Rewards & Recognition on completion of 2,5, 10,15 years in front of fellow people keeps the
spirit of Pidilite Family alive

6.

Contractors expect assured gifts or involvement from the company on special occasions like
Vishwakarma Jayanti
Holi
Diwali
Ganesh Chaturthi

Engagement Initiatives (Family/Individual):

1. Top Contractors Dinner a quarterly target set by the company and those who participate and
successfully complete the target are invited to this pool side dinner in an expensive hotel
2. Housie, Musical chair etc. games and sports for kids and families in a 2/3-star restaurant(followed by dinner)
3. Essel world, fantasy Parks tickets for families
4. Complete hall booked for contractors families = Special screening of movies and promotion of company in
between breaks
5. 1-day event for contractors families full of games (outdoor games like cricket, football and also indoor
games; Talent hunt , Shayari events, couple events) much like a cultural festival
6. Free VIP passes for Cricket matches (IPL tickets), Fashion Shows
Training and Certification Initiatives:
Should be divided into 3 categories:
1. For Contractors alone
Inviting contractors to 2/3 star restaurants where there is - Product training workshops, new product trials
and demonstrations, discussion, query addressal, cross questioning, followed by dinner ( Frequency every 3
months)
Guest lectures for contractors On simple yet critical topics Jugaad/Innovation ( 1-day workshop
followed by Dinner)
Concept of Pidilite Certified Contractor Certification to be given to contractors extending its brand
name to those who satisfy the following criteria (1) Should be Super A or A (2) Must have attended 5
SGAs (3) Must have attended 2 guest lectures in 2 years (some more criteria)
2. For Contractors wives
Hobby ideas for them promoting stitching, glass painting and all other types of art work to generate more
engagement
3. For contractors and carpenters
Company representatives can go to contractors workshops and perform live demonstrations and distribute
free trial packs of new products (followed by snacks)
Special Occasions: (Trying to cover the entire year)
1. Holi March Distribute Colors, sweets, gift packets (Containing colorful and personalized Mugs, Wall
clocks)
2. Diwali October (distribute Diwali Crackers, Sweets, Goddess Lakshmi silver idols)
3. Vishwakarma Jayanti September ( Arrange gatherings for families in temples along with religious meals)
4. Ganesh Chathurthi September ( Ganesh Idols, Shawls/Sarees for ladies)
5. Raksha Bandhan August (Food vouchers, Shopping vouchers- Big bazaar, beauty treatment vouchersJawed Habib Facial, Merchandise T-shirts/Caps)
6. Children Batch start June (Notebooks, Compass set, Water bottles)
7. New year Gift (January) Diary, Calendar
8. family trips to South India (Tirupati)/Hill stations (Lonavla Resorts) every two years

Social Initiatives: (Certification + merchandise to be given to each participant for each event)
1. Afforestation
2. Visits to blind schools and orphanages (twice in an year) Pairing with an NGO
3. Blood donation
4. Visit to old age homes
5. Certification with the tag Sabse Zimmedar Nagarik to make him feel good socially
6. Ganesh Chaturthi beach cleaning activity
7. MORE
Empowerment (takes care of personal, geographic preferences):
1. Offer choice of Vaishno Devi trip/ 5 star treat/ consumable gifts like refrigerator to the contractors for their
family every 2 years
2. A colorful form asking to family members of all existing and new contractors in an interesting way to decide
their gifts (every Quarter)
3. Inviting suggestions on designing loyalty programs and rewarding the person whose suggestion gets
implemented (every Quarter) include his name in the banner, gift him the same prize
Business leads:
1. Develop a helpline portal for the builders and clients, where they browse for the contractors of their
choice/ priority ratings given by Pidilite company
2. Gift them folders with their names and specifics on it- encourage them to use the folder to keep the
pictures of their sites
Communication:
1. Send letters/credible documents to contractors every quarter to communicate about development in
loyalty programs, new schemes, incoming offers and events
Referral Policy: To incentivize the contractors to recommend other contractors
1. Ensure the new candidate is not registered on FCCR portal
2. Add a field in FCCR form as Reference ID where referrers contact number is to be entered
3. So the referrers membership number is noted
4. After the referred candidate redeems at least 100 kilos, the referrer starts 10% of the points henceforth
5. Joining bonus (5%) to referred candidate till an year
Focused Approach:
1. Using the ranking from the Discriminant Analysis, a more focused approach can be done i.e. top 20 or top
50 contractors of an area and treat them specifically (MORE)
Passbook replacement:
1. Barcode scanner installed at dealers counter and he can scan the barcode of the items against the
contractor name
Some incentives (Family trips) on completion of 5/10 tons of Pidilite PWG
2. Ownership transfer suggestion To make the FCCR passbook in the name of the contractor, along with
that of supervisor who would give the purchase updates

Costing:
For all the recommendations that are proposed above, the detailed costing has been included in the Excel File.

Costing

Grand total Annual cost summing up the costs for all the initiatives = INR 38,000
For a SUPER-A contractor, monthly Intake is greater than 400 Kgs.
Let us assume Intake = 500 Kgs
Annual Intake = 500 x 12 = 6000 Kgs
Therefore investment required/kg = 38000/6000 =

INR 6.33/Kg

Taking Fevicol SH, MRP = INR 175; Investment required/MRP = 6.33/175 =

Overall Data.xlsx

Draft_Questionnaire.d
ocx

3.5% of MRP

Data_Mumbai.xlsx

Overall_Pune.xlsx

Conjoint Analysis.xlsx

FinalQuestionnaire.do
cx

Pune-BlindSchools.do
cx

Mumbai-Blind
Schools.docx