3. The consumer goods business is characterised
by brand equity and distribution reach.
Adhesives market enjoys high brand loyalty
and is relatively price insensitive as
adhesives account for only a small portion of
total cost of end product.
The adhesives and sealant market in India is
estimated at Rs. 5 billion
Pidilite is the leading player in this field, with
a market share of 60%
Fevicol contributes to 50% of its total
revenue.
4. Fevicol scores highly on almost all indicators of
Brand Equity:
High brand awareness,
High brand loyalty of the target audience
Quality perception.
The market segment for fevicol includes:
Carpenters,
Interior Designers,
Architects,
Dealers,
Household owners who influence choice of
adhesive
5. Pidilite decided to market their adhesive line
branded as “fevicol”.
The brand is controlled directly by pidilite and
hence it is a Manufacturers Brand.
Now Pidilite markets a whole gamut of adhesive
products with this separate family name ex:
Fevicol WRA, Fevicol SR X-pres, Fevicol Marine,
etc.
The fevicol brand has been extended several
times these past years, through both Line
Extension and Brand Extension.
6. Existing Product New Product Category
Category (others- Polyester
(Synthetic Adhesive Resin based Adhesives
Resin) etc)
Existing Brand - Fevicol Speedex Fevicol WRA
Fevicol Marine Fevicol SR X-Pres
Fevicol Fevicol VC 31 Fevicol Marble Glue
(Line Extension) (Brand Extension)
New Brand Mr. Bond-Hit Fevitite SS
(Multi Branding) (New Brands)
The products developed as part of line extension for the basic product were just
minor changes from the “Synthetic Resin Adhesive” design of fevicol. Ex: speedex
is a fast setting adhesive.
Brand Extension products are products which are different from the basic ones,
but serve similar purposes and share the family name. Ex: Marble Glue is
Polyester resin based and is used as a quick drying adhesive.
7. Pidilite has gone for Market Specialization in its
targeting strategy for Fevicol and its associated
product categories.
Products belonging to different categories exist as
choices for the Market Segment they focus on –
carpenters etc.
Positioning: Fevicol has successfully positioned itself
as a provider of high quality adhesives at an
affordable price.
Though slightly expensive, it does not pinch the
customer much as the overall cost of glue is a
miniscule part of the cost of furniture.
9. Product Hierarchy for Fevicol:
Need Family – Consumers and Craftsmen use
Product Family – Adhesives and Sealants
Product Class – Home, School and Office
Product Line – Synthetic Resin Adhesive
Product Type – White glue
Brand – Fevicol
Item – Fevicol MR
10. There are several product categories (width)
however, these categories are very closely
related ( consistency).
Also for fevicol there exist many variants
(depth).
Fevicol adopts Line Filling and Line Stretching
as its PL strategies:
Filling: many variants exist for different
specialized applications of the product.
Stretching: selling fevicol in small tubes to
target students and office-goers.
11. Pricing Strategy
Fevicol enjoys a monopoly in the adhesives market. Its
quality sets it apart from the competition.
Has a loyal customer base who don’t mind paying a
little higher than local products because adhesive is
such an important yet economically insignificant
investment for them.
So, they dont go for competitor based pricing or value
based or demand based pricing. Pricing method
therefore adopted by them is Cost based strategy –
Variable cost based markup pricing.
13. The channel is 3
links long and acts
as a vertical
marketing system.
14. Ownership Flow
Goods are first manufactured in the company owned
manufacturing units situated at Vapi, Bhiwandi and
Malhaar
Here the goods are posted in the challan under Pidilite
Industries Ltd.
Goods are then sent to the various Mother Go-downs
spread across the country for further distribution
Goods from mother Godowns are then transferred
under the name of the marketing concern of Pidilite
Industries Ltd. (PIL) called Parek Marketing
Ltd.(PML)
15. MANUFACTURING
UNIT
CHALLAN UNDER PIL
Goods are then sent to the
C & F (Carry and TRANSFER OF
MOTHER GODOWN
Forward) agents and the OWNERSHIP FROM
PIL TO PML
Company owned Depots
CHALLAN UNDER
PML
From here the goods are
invoiced under PML and CO.
sent to the WSS who in C&F DEPO
turn bill the goods under T
the name of their
respective concerns and
sell the goods to the PRIMARY SALES INVOICE UNDER PML
retailers
WSS
Retailers also sell the SECONDARY SALES BILLING IN THE
BOOKS OF WSS
goods to the end
RETAILER
consumers under their BILLING IN THE
BOOKS OF RETAILER
dealership.
16. Channel Partners
1. C&F Agents: infrastructural and transport
facility ;responsible for the transfer of goods. No
sale occurs here.
2. Wholesale Stockist: Primary sale takes place at
the Wholesale stockist. Their
selection, motivation and evaluation becomes
very important to the company
3. Retailer: The WSS sell the goods to the retailers
who in turn sell it to the end consumer
17. Selection Of Wholesale Stockist
Capital Investment
This is dependent on the
• Present required turnovers
• The estimated future capital investments that will be required by the distributor
based on company’s growth plans in the area
Relevant Experience
It is imperative that the distributor has had :
• Prior experience as a channel member in the FMCG sector
• The distributor should not be dealing in competitor’s products
• Should be able to function as a dedicated channel for Pidilite.
• The business should not be driven by his staff rather has complete self involvement
Infrastructure
The basic infrastructural requirements for a WSS are :
• Two rooms measuring at least (10*10) sq. feet each.
• Delivery vehicles preferably 3 wheelers
• Sales executives called Interim Sales Representatives or ISRs.
• Storage godown
18. Evaluation
Once a distributor is appointed, the company generally
does not take away business from him, except when
the underperformance has been observed over long
periods.
While evaluating his performance, his targets
performance is studied relative to that of other
distributors in the nearby area (because growth
patterns may vary by regions).
A retailer is discontinued from the channel if he fails
to pay his credit for prolonged periods of time.
19. Market Communication Strategies
Target Audience:
Carpenters, Interior Designers, Architects, Dealers,
Household owners who influence choice of adhesive
Designing Communication:
Message strategy: Transformational strategy that
Fevicol can join things so strongly that no one can break
them.
Message Source: Mostly shows carpenters working in
the advertisements but the application is for complete
set of people.
Messages given are viral and humorous in nature
24. Global Adaptation: on entering the market in Egypt-
Communication Channel :
TV Commercials
print media
Marketing Communication Mix :
TVC and Print media
Brings out magazine called as Fevicol Furniture book to
directly connect with carpenters
Innovative and Humorous TV Commercials
Communication Results :
Has created a very high Brand Equity
For common people Fevicol is the other name for super
glue.