Brief History of Pidilite

1959 – 1969 1970 – 1990 2000 – 2010

The Early Transitioning Growth path
Years brand image & Acquisitions

• First product line • Completed a series of

•1959 – Pidilite floated
extension introduced critical acquisitions to
Fevicol, white synthetic
for retail market - 30 establish strength in
resin adhesive
market
•Launched to gm collapsible tube
substitute to animal fat • 2005 – First
• Introduced series of
adhesive available then international
products for students
•1963 – First subsidiary in
and professionals Singapore, followed by
manufacturing plant • Transition in
set up in Kondivita subsidiaries in Middle
•1965 – Became product perception to East & Brazil
preferred product for all-purpose glue from •2006 – Established
target market i.e. industrial product R&D centre in
carpenters Singapore
 Acquisitions
2000 – M-Seal – Leading brand of epoxy compounds

2002 – Steel Grip – Leading brand of PVC insulation tape

2004 – Roff – Pioneer of construction chemicals in India

2006 – Sargent Arts Inc. – World-class art materials space in USA

2006 – Tristar Colman –Canvas and student art colours

2006 – Cyclo – Brand of automotive maintenance products

2008 – Holdtite – Sealant business of Hard Castle Ltd

2009 – Woodlok – Retail wood working brand of Henkel

2013 – Falcofix – adhesives business of Suparshva Adhesives

Pidilite Brands
 Pidilite - SWOT Analysis
Opportunitie
Strengths Weaknesses Threats
s

Differentiated Largely moving to

Products Uncertainty on low involvement
Elastomer category
Projects Premiumization
Strong Brand Process
Equity Entry of paint
players in water
Raw Material proofing space
Smart Advertising
dependent on
& Promotions
crude oil price
Weakness in INR
Educating
decision makers Ability to spot
Weak opportunities in
International commodity play Global
Relevant Business Process Geopolitical
Acquisitions uncertainties
 Pidilite - Porter’s 5 Forces Analysis
LOW – high barriers to entry
Threat of
• Very strong Brand Equity to compete with, achieved through differentiated
New advertising and promotions
Entrants • Robust Distribution Network, high focus on R&D required for success

Threat of LOW
• Low initial capital investment, and no substitute for adhesive as such
Substitutes • Pidilite nullified threat through acquisitions

LOW
Bargaining power
of Customers • Due to no substitutes, and because Pidilite is market leader, product
commands strong pricing power

MEDIUM
Bargaining Power
• 30-35% of its raw material is imported and thus has a bearing of INR
of Suppliers depreciation

LOW
Competition • Limited category from large multinationals
Rivalry • Small regional players and unorganized retail provides competition, combated through creative
advertising
 Pidilite – BCG Matrix

• Star • Questio
n Mark

Fevicol M-Seal

FeviStick MotoMax

• Cash-Cow • Dog
 Pidilite
Few Campaigns

Dr Fixit’s
Campaign branding of
against auto-
menace of Pidilite rickshaw
termites in campaigns flaps with
South the message
India ‘Paani
Roke‘
 Pidilite builds Fevicol the brand

Created a brand of a mundane product – adhesive

• Adhesive is a low-involvement product
• Brand expected to play very small role, while ease of use and availability
primary in purchase decision

Fevicol synonymous with adhesives/glue

• Creative advertisement campaigns, highlighting product strengths

through the use of witty humour

Rural backdrop in advertising/promotional campaigns

• Brings out native Indian rusticity, helps establish connect with rural
consumers which are key market
• Involves actual users of products directly in advertisements
• Does not use celebrities/public personalities for promotions
 The Fevicol
Brand Excellence Award in India‘s Top 50 Marketers Award,
Stationary 2010 – 5. Fevicol

Shram Dan Diwas

Silver in
Limca Book of Asia Book of India Book of Ambient
Records Media -
•Records
.
Records
Fevicol Free
Store

ABBY Award
2013:
Fevikwik
wins Best
Brand
Website -
Bronze
 Competitor Analysis
Huntsman’s Araldite
• Launched in 2006
• Araldite Karpentar Ka Kamaal, Furniture Ki Mazbooti
Bemisaal
• First create mass awareness then increase market share
• Stopped operations in 2008

Henkel’s Loctite
• Used in electronics, automotive, manufacturing
aerospace to biomedical industries.
• Not flexible
• Created confusion in the minds
 Fevicol – Consumer Behaviour
Consumer Profile
Consumer Profile Buying Behaviour

Major • Carpenters
Users - • Other Industries -
Industrial footwear,electrical

Minor • Students
Users - • Office stationery
Retail

Others • Casual Users

 Fevicol – Consumer Behaviour
Consumer Buying Behaviour
Need Recognition • Applications of Fevicol are
– Wood working
Information Search
– Upholstery and flooring
– Footwear
Evaluation of – Household material
Alternatives
– Ceramic, Plastics, Glass work
– Paper Bonding
Purchase Decisions
– Art work

Post Purchase
Evaluation
 Fevicol – Consumer Behaviour
Consumer Buying Behaviour
Need Recognition
• Information Search
– Nominal Decision Making: Brand recall
– Limited Decision Making: Asking advice
Information Search
• Sources include
– Personal: Word of Mouth Publicity
Evaluation of
Alternatives – Commercial: Viral Advertising
campaigns
Purchase Decisions
– Public: Direct Marketing through
Fevicol Champions’ Club, magazine etc.
Post Purchase
Evaluation
 Fevicol – Consumer Behaviour
Consumer Buying Behaviour
Need Recognition • Evaluation of Alternatives
– Weak competition from Araldite,
Locktite
Information Search
– High score on metrics of price,
availability, quality, packaging,
Evaluation of
Alternatives brand recognition and customer
relationship
Purchase Decisions – Different SKUs for various consumer
classes
Post Purchase
Evaluation
 Fevicol – Consumer Behaviour
Consumer Buying Behaviour
Need Recognition • Purchase Decision
– Major users i.e. carpenters
• High-involvement product
Information Search • Quality & cost high priority relative to
retail outlet location
Evaluation of – Minor Users i.e. retail and casual
Alternatives • Low-involvement product
• Availability, cost and quality high priority
Purchase Decisions – Fevicol scores high on
relationships with consumers and
Post Purchase
Evaluation
has strong brand equity
 Fevicol – Consumer Behaviour
Consumer Buying Behaviour
Need Recognition • Post Purchase Evaluation
– Major Users
• High likelihood of post purchase
Information Search dissonance since it is high involvement
product
Evaluation of • High quality of product and ease of use
Alternatives cause positive post purchase evaluation
– Minor Users
Purchase Decisions • Low involvement product, leading to
routine response behaviour
• Benefits Fevicol due to high brand recall
Post Purchase
Evaluation
and strong distribution network
 Fevicol – Consumer Behaviour
Primary Research Survey Findings
• Total Sample Size-58 Gender profile Professional profile

• 77.58% users are loyal to Male Female Student

Working Professional
Fevicol, balance 22.42% state
price as a deterrent (Logical, given 35%
that Fevicol charges premium) 65% 53% 47%

• Despite phenomenal
advertising campaign, product
Consumer age profile
innovation & quality and 45
availability are prime purchase 40

decision drivers 35
30
• 20 respondents recalled 25

advertisements, top three 20

15
recalled were: 10

– Overcrowded bus 5
0
– Unbreakable eggs 15-25 26-40 41-55

– Smart fisherman
 Fevicol – Consumer Behaviour
Primary Research Survey Findings
Consumer buying reasons
Advertising 11
Quality 33
Value for Money 15 Frequency
Ease of use 24
Availability 39
Brand 25
0 5 10 15 20 25 30 35 40 45

Brand subsititutes recall

Quick Fix 3
Camel 1
Gum 1
Bondite 1
Pidelite 1
Araldite 1
Joker Gum 5
Fevicol 45
0 5 10 15 20 25 30 35 40 45 50
 Fevicol – Line Extensions
Fevicol

Fevicol Fevikwik Fevistik Fevicryl Fevibond Fevitite Fevigum

Used
primarily Used
by Used primarily Used
carpenters primarily Used Used for flexible primarily Used
for for plastic, primarily primarily and rigid for plastic, primarily
household rubber for pasting for art substrates, ceramic, for paper
products and of paper materials works on rubber bonding
and crockery hard sealant
marine materials
products
 Fevicol - STP

Segmentation Targeting

Geographic:
SKUs at economic price Undifferentiated for
points for rural Indian other segments:
market Carpenter Focused: 1. Humorous
1. Advertisements &memorable
aimed at reinforcing advertisement, built
Demographic: use of Fevicol in around its core value
1. Students carpentry proposition of
2. Carpenters 2. In Below the Line offering the best
3. Working activities, several quality adhesive
Professionals campaigns conducted 2. Help retain top of
to engage them mind recall
Psychographic: 3. Help in umbrella
1. Purchase influencer branding
for industrial and
household use
2. Ease of use
 Fevicol - STP
Positioning

Carpenter Focused:
1. Positioned as a high-
quality adhesive brand
at affordable price
2. Positioning conveyed
through memorable tag
lines
-Jor laga ke haishya
-Fevicol ka jod hai,
tutega nahi
 The Four P’s
Product
• Core Product: Something that bonds two things
• Actual Product: Something that bonds two things better than other available alternatives
• Augmented Product: Various SKUs - Bulk packs for carpenters, smaller SKUs for price sensitive
consumers/ use and throw tendency, tubes for neat use of adhesive

Price
• Demand relatively inelastic – small proportion of income (for retail) and cost of production (for
carpenters)
• Pidilite enjoys unchallenged market leader position, charges a premium for high quality products

Place
• Can be low and high involvement product
• Intensive distribution of smaller SKUs widely used by retail consumers
• Distribution of bulk containers to customers (Carpenters)

Promotion
• Incentives to identified dealers for greater brand visibility
• Uses promotional pricing.
• Above the line activities: Advertisement campaigns
• Below the line activities: Promotional campaigns
Fevicol – Advertisements (1)
 Fevicol – Advertisements (2)

• Fevicol listed as the brand that benefited most from its

association with Dabangg 2 for the song ‘Fevicol se’
• Fevicol's core proposition of bonding and ‘sticking’ (owing
to literal use of word in lyrics) highlighted in the song
• Brand uses the song to stick its image in viewer’s heart
• News headines use the phrase more often after song to
indicate close bond and stickiness
 Fevicol - Promotional Strategies
Carpenters
Fevicraft
• Bi-monthly magazine showcasing furniture designs launched in 1975

Fevicol Champions’ Club (FCC)

• Carpenters’ club meeting regularly, for information dissemination
sessions and awards for best design

Shram Daan Diwas

• Annual one-day event organized by FCC, inviting carpenters to unite to
mend and repair for the underprivileged
• Event in 2013, uniting 15,000 contractors across 199 cities entered Lime
Book of Records

Vishwakarma books and cassettes

• Media containing fables of Vishwakarma, the artisan God
 Fevicol - Promotional Strategies
Industry & Retail
Fevicol Science Project Challenge
• Nationwide school-level project challenge encouraging creative
solutions to real problems

Pidilite Award for Excellence (PAFE)

• Annual awards to celebrate excellence in conceptualization and
pioneering of innovative concepts by architecture and interior
design students 

Pidilite Knowledge Series (PKS)

• Creative platform for professionals from architecture and interior
design to exchange ideas and experiences

Pidilite Golden Bonds

• Golden Bond Mobile application providing solutions to commonly
faced problems faced by interior designers and architects
 Suggestions for the road ahead
New Uses of the product – Brand Extension
• Glitter adhesives for decoration
• Art materials used in recreational activities
• Use of spray adhesives in households
• Innovation Competitions

New users of the product

• Overseas market

Increase frequency of use

• Increasing social media presence