Description
PROJECT ON PIDILITE
Pidilite Industries Limited
Presented by Nidhi shrutika Rhythm Neha Nidhi ritika
Company Background
• Pidilite was established as a partnership firm with Parekh Dyechem Industries in 1961 • Name changed to PDI industries after merger with Kondivita Industries in 1989. • Pidilite has become the largest manufacturer of adhesive. • Pidilite’s mainstay of earnings is consumer and industrial adhesives and sealants. • Fevicol is company’s largest brand.
Cont….
• Expansion of product portfolio has lead it to be recognized as a leading FMCG player • Company has in total 40 brands spanning 400 industrial and consumer products. • Some leading brands fevicol, parcol, fevibond, fevikwik, pidifix, pidivyl, pidiseal. • It has launched several new products in last few years like fevistick, feviseal.
Competitors
• Regional brands • Small players in unorganized sector • Large companies like Jubilant Organosys
PIL Export Internationally To
• • • • • • • Europe Usa Middle east Africa Asia Australia japan
STRENGTHS
Pidilite's main strength is their strong marketing/ advertising skills. • Fevicol is an immensely strong brand. It is so strong that anything that has a prefix 'Fevi' to it sells without any effort by the shopkeeper. • Pidilite earns 50% plus revenues from adhesives segment (Fevicol, M-Seal etc) whose brands have excellent recall value.
•
WEAKNESSES
• The management seems to be a bit overconfident
about their advertising skills. • Pidilite seems to have strong R&D capabilities when it comes to adhesives and home construction/care. But for the rest, they seem to depend on acquisitions. • Pidilite has grown its net profit at only 18% CAGR in the past 10 years.
OPPORTUNITIES
• One can see signs of '3M of India' in Pidilite. And 3M is a $60 billion company. Pidilite can become a 'big' company if things go well. • Growth in the retail sector in India is a positive for Pidilite, especially the future growth of home specific stores like Home Town and Home Stop.
THREATS
• 50% of their revenues are from adhesives/sealants and the raw material for this is petrochemicals which in turn is dependant on crude oil prices. • There is obviously a threat from the asli 3M and small scale industries. Most of products made by Pidilite doesn't require a nuclear reactor.
Questionnaire
• Do you know about pidilite? • What comes to your mind, when asked about fevicol? • Are you aware about the others products of pidilite
Sample survey: 10
Do you know about pidilite
Column1
YES 30% NO 70%
What comes to your mind,when asked about fevicol
• • • • • Bonding a fevicol attribute Creative advertisment Consistent quality Easy availability Excellent customer relationships
Are you aware about the others products of pidilite
Column1
Column1 50%
20%
10% 5% wud fin 5% m-seal fevi kwik,fevi Hobby ideas stick and rangeela
Dr.fixit
Suggestions
• Advertise about the company and its products - it motivates individuals to purchase product • Try to sell the product which the consumer requires at that movement • Improve the efficiency in operations • Tap the rural market where there is large potential • Make products more straight forward - reduce complexities
Current Scenario
• The Company achieved 21.8% growth in net sales • Earnings before interest, taxes, exceptional items and foreign exchange differences, grew by 23.9% over the last year. • Profit after tax grew by 14.1% over the last year
Marketing – New Initiatives & Products
• Introduction of DDL XT Booster, an innovative formula to give exterior durability to distemper • Wudfin Ezeestain, a water based wood stainer. • Extending the range of offering in waterproofing, Enhanced version of Dr. Fixit LW, was re-launched as Dr. Fixit LW+ with better • corrosion resistance. • Fevicol Marine, a waterproof adhesive, was relaunched successfully this year with a new look and an integrated campaign including The radio, outdoor and below the line activation. • Company expanded its product range for HVAC(Heating, Ventilation and Air conditioning system) applications.
PIL’s product ranges
• Stationary range: fevicol MR, fevigum. • Acron range: rangeela, wax, crayons • Fevicry /Hobby Idea Range: acrylic colors, fevirat magazine • Maintenance Range: Fevikwik, All fix, Shoe fix • Fabricare Range: Ranipal stain, whitener • Kids Art Range: Safe finger paints, Safe bold crayons
How did Fevicol become ‘Fevicol- The Brand’?
• 65 percent of furniture production in India is out of wood . • The carpenters play a vital role in deciding which adhesive to use. • INITIAL STRATEGY – • Help carpenters realize the importance of using quality products. • FOLLOW-UP – • Maintaining close contact with its primary target audience
Fevicol As A Brand
• Fevicol ads have played a crucial role in the phenomenal success of the brand. • Has become the largest selling adhesive in Asia and is present in over 50 countries. • The earthy humor in Fevicol ads brings a smile to everyone's face. • Fevicol has also kept itself relevant through repackaging of variants. • Strong advertising and distribution has made fevicol a household name.
Question no#1
• Does fevicol qualify as a brand bigger than company? What might be the implications of this? What are the possible solutions?
Analysis
• Oldest brand • Higher recall • Popular among consumers and carpenters alike • Enjoys higher confidence as a brand • Propelled by imaginative ads and campaigns
Implications
• Marketing strategy for other brands become centric to the successful brands. • Customer loyalty towards the brand. • Benefits the company in long run. • Company shares a positive equity.
Solutions
• Promotional activities for other brands for strong positioning • Creating awareness among the mind of customer by associating it with fevicol.
Question no#2
• Comment: should the brand fevicol be extended? If yes, then when, where, how should this be done?
Analysis
• "Fevicol" as a name itself is commonly used as a metaphor for strong bonding or stubborn stickiness.
• Extension due to already being a successful brand. • Fevicol’s popularity due to creative marketing strategy including successful marketing campaigns.
• Awareness of Extension could be created through other channels like fevicol furniture books, fevicol champions club which are already launched in market.
• Successful brand and line extention like fevistick, feviquick, fevicol MR. • It could also be launched as a product that could be used multi-purposely using the prefix “Fevi.” • Capturing high market share by promoting globally.
When it should be extended?
• Jan – march, From the month of jan to march, there is a
demand for paint related products due to festivals like Id and holi , when people paint their houses. • April – june , With the start of financial year , many new schemes are introduced . Products like fevicol SH and fevicol SR 900,sell well during these months. • July approaches, sales takes a dip. Due to monsoon, there is no painting of houses. • August – December, demand rises again due to festive and matrimonial season, where people paint their houses , goes for new furniture & other renovations.
doc_819519044.pptx
PROJECT ON PIDILITE
Pidilite Industries Limited
Presented by Nidhi shrutika Rhythm Neha Nidhi ritika
Company Background
• Pidilite was established as a partnership firm with Parekh Dyechem Industries in 1961 • Name changed to PDI industries after merger with Kondivita Industries in 1989. • Pidilite has become the largest manufacturer of adhesive. • Pidilite’s mainstay of earnings is consumer and industrial adhesives and sealants. • Fevicol is company’s largest brand.
Cont….
• Expansion of product portfolio has lead it to be recognized as a leading FMCG player • Company has in total 40 brands spanning 400 industrial and consumer products. • Some leading brands fevicol, parcol, fevibond, fevikwik, pidifix, pidivyl, pidiseal. • It has launched several new products in last few years like fevistick, feviseal.
Competitors
• Regional brands • Small players in unorganized sector • Large companies like Jubilant Organosys
PIL Export Internationally To
• • • • • • • Europe Usa Middle east Africa Asia Australia japan
STRENGTHS
Pidilite's main strength is their strong marketing/ advertising skills. • Fevicol is an immensely strong brand. It is so strong that anything that has a prefix 'Fevi' to it sells without any effort by the shopkeeper. • Pidilite earns 50% plus revenues from adhesives segment (Fevicol, M-Seal etc) whose brands have excellent recall value.
•
WEAKNESSES
• The management seems to be a bit overconfident
about their advertising skills. • Pidilite seems to have strong R&D capabilities when it comes to adhesives and home construction/care. But for the rest, they seem to depend on acquisitions. • Pidilite has grown its net profit at only 18% CAGR in the past 10 years.
OPPORTUNITIES
• One can see signs of '3M of India' in Pidilite. And 3M is a $60 billion company. Pidilite can become a 'big' company if things go well. • Growth in the retail sector in India is a positive for Pidilite, especially the future growth of home specific stores like Home Town and Home Stop.
THREATS
• 50% of their revenues are from adhesives/sealants and the raw material for this is petrochemicals which in turn is dependant on crude oil prices. • There is obviously a threat from the asli 3M and small scale industries. Most of products made by Pidilite doesn't require a nuclear reactor.
Questionnaire
• Do you know about pidilite? • What comes to your mind, when asked about fevicol? • Are you aware about the others products of pidilite
Sample survey: 10
Do you know about pidilite
Column1
YES 30% NO 70%
What comes to your mind,when asked about fevicol
• • • • • Bonding a fevicol attribute Creative advertisment Consistent quality Easy availability Excellent customer relationships
Are you aware about the others products of pidilite
Column1
Column1 50%
20%
10% 5% wud fin 5% m-seal fevi kwik,fevi Hobby ideas stick and rangeela
Dr.fixit
Suggestions
• Advertise about the company and its products - it motivates individuals to purchase product • Try to sell the product which the consumer requires at that movement • Improve the efficiency in operations • Tap the rural market where there is large potential • Make products more straight forward - reduce complexities
Current Scenario
• The Company achieved 21.8% growth in net sales • Earnings before interest, taxes, exceptional items and foreign exchange differences, grew by 23.9% over the last year. • Profit after tax grew by 14.1% over the last year
Marketing – New Initiatives & Products
• Introduction of DDL XT Booster, an innovative formula to give exterior durability to distemper • Wudfin Ezeestain, a water based wood stainer. • Extending the range of offering in waterproofing, Enhanced version of Dr. Fixit LW, was re-launched as Dr. Fixit LW+ with better • corrosion resistance. • Fevicol Marine, a waterproof adhesive, was relaunched successfully this year with a new look and an integrated campaign including The radio, outdoor and below the line activation. • Company expanded its product range for HVAC(Heating, Ventilation and Air conditioning system) applications.
PIL’s product ranges
• Stationary range: fevicol MR, fevigum. • Acron range: rangeela, wax, crayons • Fevicry /Hobby Idea Range: acrylic colors, fevirat magazine • Maintenance Range: Fevikwik, All fix, Shoe fix • Fabricare Range: Ranipal stain, whitener • Kids Art Range: Safe finger paints, Safe bold crayons
How did Fevicol become ‘Fevicol- The Brand’?
• 65 percent of furniture production in India is out of wood . • The carpenters play a vital role in deciding which adhesive to use. • INITIAL STRATEGY – • Help carpenters realize the importance of using quality products. • FOLLOW-UP – • Maintaining close contact with its primary target audience
Fevicol As A Brand
• Fevicol ads have played a crucial role in the phenomenal success of the brand. • Has become the largest selling adhesive in Asia and is present in over 50 countries. • The earthy humor in Fevicol ads brings a smile to everyone's face. • Fevicol has also kept itself relevant through repackaging of variants. • Strong advertising and distribution has made fevicol a household name.
Question no#1
• Does fevicol qualify as a brand bigger than company? What might be the implications of this? What are the possible solutions?
Analysis
• Oldest brand • Higher recall • Popular among consumers and carpenters alike • Enjoys higher confidence as a brand • Propelled by imaginative ads and campaigns
Implications
• Marketing strategy for other brands become centric to the successful brands. • Customer loyalty towards the brand. • Benefits the company in long run. • Company shares a positive equity.
Solutions
• Promotional activities for other brands for strong positioning • Creating awareness among the mind of customer by associating it with fevicol.
Question no#2
• Comment: should the brand fevicol be extended? If yes, then when, where, how should this be done?
Analysis
• "Fevicol" as a name itself is commonly used as a metaphor for strong bonding or stubborn stickiness.
• Extension due to already being a successful brand. • Fevicol’s popularity due to creative marketing strategy including successful marketing campaigns.
• Awareness of Extension could be created through other channels like fevicol furniture books, fevicol champions club which are already launched in market.
• Successful brand and line extention like fevistick, feviquick, fevicol MR. • It could also be launched as a product that could be used multi-purposely using the prefix “Fevi.” • Capturing high market share by promoting globally.
When it should be extended?
• Jan – march, From the month of jan to march, there is a
demand for paint related products due to festivals like Id and holi , when people paint their houses. • April – june , With the start of financial year , many new schemes are introduced . Products like fevicol SH and fevicol SR 900,sell well during these months. • July approaches, sales takes a dip. Due to monsoon, there is no painting of houses. • August – December, demand rises again due to festive and matrimonial season, where people paint their houses , goes for new furniture & other renovations.
doc_819519044.pptx