Pidilite Industries Limited

Report #1:  Group Number: 3

Industry overview

Adhesives market in India is forecast to cross US$ 1.3 billion by 2025, on account of continuously growing building and construction sector, increasing demand for packaging materials in food & beverage industry and growing furniture industry. Growth in India adhesives market can also be attributed to macroeconomic factors such as increasing population base, rising per capital income and rapid industrialization. Moreover, rising technological advancements have led to development of advanced and hybrid adhesives that have excellent bonding strength and flexibility, under a wide range of temperatures. Rising awareness about different types of adhesives and their applications in various end user industries is projected to boost demand for adhesives in India during 2016-2025.

Company overview

A consumer and specialties chemical company Pidilite Industries Limited (Pidilite) was incorporated on 28th July 1969. Pidilite is the market leader in adhesives and sealants, construction chemicals, hobby colors and polymer emulsions in India. Its brand name Fevicol has become synonymous with adhesives to millions in India and is ranked amongst the most trusted brands in India. The Company's product range includes[pic 1]

a) Adhesives and Sealants – Fevicol, M-Seal

b) Construction and Paint Chemicals – Dr.Fixit

c) Automotive Chemicals- Motomax

d) Art Materials- Hobby ideas

e) Industrial Adhesives

f) Industrial and Textile Resins and Organic Pigments and Preparations.

Awards

The Company received the ‘Most Promising Company of the Year’ at the CNBC-TV18, 11th India Business Leader Awards (IBLA).

‘The Fevicol Room’ at Lalbaugcha Raja won the Silver at the Abby Awards 2016 in the Events and Experiential Public Relations category.

‘Kwik Fevikwik’, the digital boat race contest won the Bronze at the Abby Awards 2016 in the Online Games category.

Fevikwik ‘Pyaun’ radio campaign won a Bronze at the Golden Mikes 2016 in Best Use of Branded Content/ Sponsorship on Radio in Effectiveness category.

Activations & Events

The Fevicol Room at “Lalbaugh Cha Raja”, Mumbai was created with the objective of encouraging consumers to click creative poses in a room which made them look like hanging from the ceiling.

Fevicol Science Project Challenge -Television and digital campaign featuring Rob, of ‘Mad’ fame, drew more than 1500 online participants

Dr. Fixit Healthy Hum Healthy Home was a free professional health check-up camp for Contractors and construction workers

International Market Development Initiatives

Participation in exhibitions like Big 5 in Dubai, Myanbuild in Myanmar, Wood International Expo 2016 and Safecon 2016 in Bangladesh.

Mega carpenter and dealer meet in Dubai, Umbrella Campaign in Africa for Unitint and Mega Iftar meet in Oman.
New product launches in UAE, Africa, GCC, Nepal and Bangladesh.

Report#2

We are focusing on Fevicol (Fevicol SH) brand from Pidilite for our campaign plan. Fevicol is a 55 plus year old brand (Launched in 1949) and has been the largest selling adhesive brand in Asia and has it presence over 50 countries. Fevicol has become synonym with glue in India and has extensions such as Feviquik, Fevistick, Fevitite are being used in schools, offices, households and do-it-yourself segments which makes it a brand part of every Indian’s vocabulary. Fevicol is available in 60% of all towns with more than 10,000 population. Fevicol commands a 70% market share in white glue segment and 40% of Pidilite’s turnover is from fevicol brand. From the school-going kid who uses the Fevicol adhesive for his arts and crafts lessons to the neighborhood carpenter who considers Fevicol his best friend, the brand has come to forge an inseparable bond with people who influence the product – consultants, builders, architects and carpenters.  Fevicol’s strength lies in their strong supply and distribution network across India with more than 65,000 dealers and retailers. Falcofix, Bluecoat, Vamicol and Eraldite are their major competitors in the market. Competition for Fevicol arises from the unorganized local regional players such as unicol, jeevanjor, mahacol etc. Fevicol’s creatives and TV campaigns, handled by advertising house Ogilvy & Mather, have further helped to reinforce the big idea about Fevicol’s bonding strength. For instance, the TV campaign for Fevicol Marine reiterates its strong bond in water with the tagline ‘Wahi mazboot jod, paani mein bhi’. Even though fevicol is not a consumer product, thanks to their creative campaigns, it has reached almost every Indian. Fevicol has successfully managed to build this relationship with carpenters & end users through various programs. Fevicol Furniture Books, which showcases to the carpenters the current styles & trends in furniture market, helped the company build awareness for the brand. Fevicol’s brand identity is “The ultimate Adhesive”. While the consumer and end user for Fevicol are the Carpentry contractors the main influencers for purchasing the product are the carpentry contractors. The Decision power however lies with either the Home Owner, Architects & Interior Designers and most commonly with Carpentry Contractors itself.  While the Fevicol Adhesive is to be applied at the Home Owners Furniture or Office, they have no idea about the products being used at their respective locations and hence for Fevicol, the main target group of is carpentry contractors who have under them a team of carpenters who are employed at multiple sites.

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In order to build loyalty with their Target Group which is the carpentry contractor Fevicol has been way ahead of its competitors. Fevicol has been driving a very strong Loyalty Program called the Fevicol Champions Club (FCC). As soon as a contractor signs up and registers to the FCC , automatically at the back end an Account is created with his credentials.

In order to encourage the purchase of Fevicol Products as part of their sales promotion, each Fevicol Carton has a bar code stuck to it. Each bar code represents certain Points. (Eg: For a 50kg box, you would have 50 points attached with it and for a 1 kg SKU, you would have 1 point attached to it.) . Pidilite has provided the contractors with a point chart that represents Gifts that they can redeem against these points. All the contractor has to do is, collect all his coupons and on reaching a certain amount he can redeem the gift he wants against the points. (Eg: 500 Points gives One Shirt and Pant, 1500 Points gives a Feature Phone, 3500 gives a smart phone, 13000 – Fridge, 18000- Motor Bicycle). If the company wants to push a new product into the market, they may promote the product by giving 2 points/kg (Eg: Fevicol Hyper)