PRESENTATION ON PIDILITE INUSTRIES

PRESENTED BY: - ABHAY SHARMA

ROLL NO.: - 0101521
SUBJECT: - STRATEGIC MANAGEMENT
SEMESTER: - THIRD
PRESENTED TO: - Dr. SALIL SETH
DEPARTMENT: - M.B.A. MARKETING
1. PIDILITE IS ONE OF THE MOST ICONIC COMPANIES IN THE INDIAN BUSINESS HISTORY.

2. THE MANAGEMENT’S STELLAR CAPITAL ALLOCATION, HAS CREATED SUCH AN ENORMOUS WEALTH FOR IT
SHAREHOLDERS THAT 10,000 INVESTED IN THE COMPANY IN JANUARY 2000, IT WOULD BE MORE THAN 13 LAKH TODAY
AND THAT TOO EXCLUDING DIVIDENDS.

3. IN THE PAST 10 YEARS THE STOCK PRICE OF THE COMPANY SHOT UP BY A C.A.G.R. OF 26%. AND MOST IMPORTANT
WITHIN 6 DECADES IN THE MARKET, PIDILITES’S FEVICOL BECAME A MARKET LEADER WITH A SHARE OF 70%.
 NOW, THE QUESTION IS WHAT KIND OF BUSINESS STRATEGIES ARE USED BY PIDILITE TO BECOME A GOLDMINE FOR
IT’S INVESTORS?

THE ANSWER TO PIDILITE’S CRAZY GROWTH LIES IN THIS DIAGRAM CALLED THE ANSOFF’S MATRIX.

THIS MATRIX HAS FOUR PARTS BASED ON TWO VARIABLES WHICH ARE: -

1. PRODUCT
2. MARKET
MARKET PENETRATION
1. THE FIRST STEP A COMPANY TAKES TO ESTABLISH ITSELF, IS MARKET PENETRATION AND THEY
DO THAT BY ENTERING IN A EXISTING MARKET BY SELLING THE EXISTING PRODUCT WHICH IS
FAR MORE BETTER THAN THE COMPETITORS.
2. IN OUR CASE THE STORY OF PIDILITE DATES BACK TO THE YEAR 1954, WHEN A YOUNG MAN
NAMED BALVANT PAREKH WAS OPERATING A SMALL SCALE INDUSTRY IN MUMBAI. WHEREIN
THEY MADE PIGMENT EMULSION FOR TEXTILE INDUSTRY.
3. NOW DURING THIS TIME BALVANT MADE AN IMPORTANT OBSERVATION: -
(A) BACK THEN ANIMAL FAT GLUE WAS USED AS AN ADHESIV. AND THE PROBLEM WITH IT WAS
THAT IT NEEDED TO BE HEATED THEN IMMEDIATELY NEEDED TO BE COOLED, BEFORE IT COULD
BE APPLIED ON FURNITURE. THIS TOOK A LOT OF TIME AND WAS A TEDIOUS OF A PROCESS.
4. THIS IS WHERE THROUGH A LOT OF TRIAL AND ERROR, PIDILITE LAUNCHED THEIR ICONIC
PRODUCT AND WE ALL KNOW THAT PRODUCT AS FEVICOL.
PRODUCT DEVELOPMENT
1. THE SECOND PHASE OF ANSOFF’S MATRIX IS PRODUCT DEVELOPMENT STRATEGY. THIS IS
WHERE THE BUSINESS STARTS SELLING NEW PRODUCTS TO AN EXISTING MARKET.
2. IN THIS CASE PIDILITE REALIZED THEIR INTERACTION WITH CARPENTERS HAS ALWAYS GIVEN
THEM IMPORTANT MARKET INSIGHTS.
3. SO, TO TAKE THIS ONE STEP FURTHER. THEY EVEN FORMED SOMETHING THE FEVICOL
CHAMPION’S CLUB IN 2002. IN THIS CLUB THEY INVITE CARPENTERS FROM ALL OVER THE
COUNTRY TO THEIR OFFICE AND DEMONSTRATE THEIR PRODUCTS TO THEM.
4. THE MEMBERS OF THE FEVICOL CHAMPION’S CLUB WERE RECEIVED AT THE RAILWAY STATIONS
WITH BANDS LIKE A BAARAT. THEY WERE TAKEN TO PILGRIMAGES AND KITE FESTIVALS ETC..
1. BECAUSE FEVICOL STARTED THESE EVENTS AND ENGAGED WITH CARPENTERS. THEY STARTED GIVING CRITICAL
FEEDBACK AND STARTED POINTING OUT IMPORTANT MARKET DEMAND AND GAPS ON RISE.
FOR EXAMPLE:-
A.) ONE SET OF CARPENTERS SAID THAT THE FURNITURE WHICH IS EXPOSED TO WATER GETS DAMAGED EASILY AND
DO NOT LAST LONG AS THE NORMAL FURNITURE.
B.) ANOTHER GROUP SAID THAT WHEN THEY HANDLE LARGE PROJECTS. CLASSIC FEVICOL TAKES A LOT OF TIME FOR
CURING, BECAUSE OF WHICH THEIR HIGH VALUE PROJECTS OFTEN GETS DELAYED.
C.) SOME EVEN SAID THAT THE LAMINATION THAT HAVE EXPOSURE TO HEAT NEED A BETTER ADHESIVE.

AS SOON AS FEVICOL GOT THIS FEEDBACK, THEY INVESTED HEAVILY IN R&D AND INTRODUCED 3 NEW PRODUCTS IN
THE MARKET FOR EACH ONE OF THESE PROBLEMS.
MARKET DEVELOPMENT
1. THIS BRING US TO THE THIRD PART OF THE MATRIX WHICH IS MARKET DEVELOPMENT
STRATEGY. WHEREIN A BUSINESS SELLS EXISTING PRODUCTS TO THE NEW MARKETS.

2. THIS IS WHERE FEVICOL ICONIC MARKETING CAMPAIGNS COME IN. THE BEAUTY OF THESE
COMMERCIALS WAS THAT IT COULD APPEALS TO EVERY PERSON REGARDLESS OF WHAT THEIR
BACKGROUND WAS.

3. AT THE SAME TIME IT BEAUTIFULLY COMMUNICATED THE MESSAGE OF IT’S PRODUCTS VERY
CLEARLY. IT IS ONLY POSSIBLE DUE TO THESE MARKETS DEVELOPMENT STRATEGIES THAT
FEVICOL BECOME A HIT PRODUCT IN TIER 2, 3 AND 4 CITIES AND EVENTUALLY BECAME A MARKET
LEADER.
DIVERSIFICATION
1. AND LASTLY WE COME TO THE 4TH PART OF THE MATRIX, WHEREIN A BUSINESS INTRODUCES
NEW PRODUCTS IN NEW MARKETS.
2. IN THIS CASE WE HAVE STRATEGIC ACQUISITIONS MADE BY PIDILITE OVER THE TIME WHICH
MADE THEM A MARKET LEADER IN OTHER CATEGORIES AS WELL.

FOR EXAMPLE: -
A.) M-SEAL IN SEALANTS
B.) DR. FIXIT IN WATERPROOFING SEGMENTS
C.) STEEL GRIP IN INSULATION TAPES
D.) ROFF IN TILING & FLOORING ADHESIVES
WHEN THE PRODUCT IS PROMOTED, WITHOUT BEING USED ANY KIND OF
PROMOTION. FEVICOL BAS NAAM HI KAAFI HAI…
LESSON FROM THE CASE STUDY THAT I LEARNED
• THE PRACTICE OF EMPATHY IF A BILLION DOLLAR
INVESTMENT.
• IN THIS CASE IT WAS EMPATHY THAT PIDILITE PRACTISED
WITH CARPENTERS TO CAPITALIZE CRUCIAL GAPS IN THE
MARKET.