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

audienceQuality 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 Category

(Synthetic Adhesive Resin)

New Product Category

(others- Polyester Resin based

Adhesives etc)

Existing Brand - Fevicol

Fevicol Speedex Fevicol Marine Fevicol VC 31

(Line Extension)

Fevicol WRAFevicol SR X-Pres

Fevicol Marble Glue(Brand Extension)

New Brand Mr. Bond-Hit(Multi Branding)

Fevitite SS(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 SealantsProduct Class – Home, School and OfficeProduct Line – Synthetic Resin AdhesiveProduct Type – White glue Brand – FevicolItem – 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 StrategyFevicol 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 FlowGoods 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)

Goods are then sent to the C & F (Carry and Forward) agents and the Company owned Depots

From here the goods are invoiced under PML and sent to the WSS who in turn bill the goods under the name of their respective concerns and sell the goods to the retailers

Retailers also sell the goods to the end consumers under their dealership.

MANUFACTURING UNIT

MOTHER GODOWN

C & FCO. DEPOT

WSS

RETAILER

PRIMARY SALES

SECONDARY SALES

CHALLAN UNDER PIL

TRANSFER OF OWNERSHIP FROM PIL TO PML

CHALLAN UNDER PML

INVOICE UNDER PML

BILLING IN THE BOOKS OF WSS

BILLING IN THE BOOKS OF RETAILER

Channel Partners1. 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

Capital InvestmentThis 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

Selection Of Wholesale Stockist

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 StrategiesTarget 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 mediaBrings out magazine called as Fevicol Furniture

book to directly connect with carpentersInnovative and Humorous TV Commercials

Communication Results :Has created a very high Brand EquityFor common people Fevicol is the other name for

super glue.

Questions?