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Presented By:
  Anubhav      Arshdeep Singh Puneet Mehrotra
2008B2A7538H   2009B3AA514H    2008B1A7598H
Branding Strategies
 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.
 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
 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.
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.
 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.
Product Line Strategies
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
 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.
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.
Marketing Channel Structure
The channel is 3
links long and acts
as a vertical
marketing system.
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)
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.
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
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
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.
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
“YE FEVICOL KA MAZBOOT JOD HAI TOOTEGA NAHI”
 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.
Questions?

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Fevicol marketing strategy

  • 1. Presented By: Anubhav Arshdeep Singh Puneet Mehrotra 2008B2A7538H 2009B3AA514H 2008B1A7598H
  • 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
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  • 22. “YE FEVICOL KA MAZBOOT JOD HAI TOOTEGA NAHI”
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  • 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.