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INTRODUCTION:-

Pidilite Industries Limited is the largest adhesive manufacturer in India. It also has world

wide presence in adhesives, art material, construction chemicals and other industrial

chemicals. Pidilite's most famous product is the Fevicol range of adhesives. Its other famous

brands are " Fevikwik", Dr. Fixit, Cyclo, Ranipal,Hobby Ideas, M-seal and Acron.

The Fevicol brand, Pidilite's most recognized adhesive brand Pidilite's corporate office is

located in Andheri (East), Mumbai. The company has manufacturing facilities at various

locations in India, including Mahad (Maharastra), Vapi (Gujarat) Baddi (Himachal Pradesh)

and Kala Amb (Himachal Pradesh). It also makes Fevi KwikIndia's first ever One Drop

Instant Adhesive. This brand is the most popular Instant Adhesive In South Asian countries.

Pidilite Industries is the market leader in adhesives and sealants, construction chemicals,

hobby colours and polymer emulsions in India. Our brand name Fevicol has become

synonymous with adhesives to millions in India and is ranked amongst the most trusted

brands in India.

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Pidilite is also growing it's International presence through acquisitions and setting up

manufacturing facilities and sales offices in important regions around the world. Fevicol is

now the largest selling adhesives brand in Asia.

We have reached where we are today mainly due to the close team-work of our employees

and due to our shared value system which emphasizes commitment to excellence, closeness

to customers, and the spirit of innovation.

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Pidilite

Since its inception in 1959, Pidilite Industries Limited has been a pioneer in consumer and

specialities chemicals in India. Over two-third of the company’s sales come from products

and segments it has pioneered in India.

Their product range includes Adhesives and Sealants, Construction and Paint Chemicals,

Automotive Chemicals, Art Materials, Industrial Adhesives, Industrial and Textile Resins and

Organic Pigments and Preparations. Most of the products have been developed through

strong in-house R&D.

The Group's turnover is about 3614 Crores for the year 2012-13 to the 2013-2014 current

year figures.

Pidilite Industries is the market leader in adhesives and sealants, construction chemicals,

hobby colours and polymer emulsions in India. Their brand name Fevicol has become

synonymous with adhesives to millions in India and is ranked amongst the most trusted

brands in India.

Pidilite is also growing it's International presence through acquisitions and setting up

manufacturing facilities and sales offices in important regions around the world. Fevicol is

now the largest selling adhesives brand in Asia.

They have reached where they are today mainly due to the close team-work of their

employees and due to our shared value system which emphasizes commitment to excellence,

closeness to customers, and the spirit of innovation.

Fevicol is back with its new campaign, which retains the norm of simplicity accompanied

with cuteness and humour of the earlier ads.

The Brief:

Fevicol ads have always been worth remembering in a cute way. Right from Bollywood ‘bad

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man’ Bob Christo wrestling with a chair made of Fevicol, to a politician who is glued to his

chair, to the hen that laid unbreakable eggs, to the overflowing bus, and the joint family that

refuses to fall apart. The new campaign continues along the same lines.

The Execution:

The campaign has been conceptualised by Ogilvy & Mather, as in the case of the previous

campaigns for Fevicol. Anil Jayaraj, Chief Marketing Officer, Pidilite Industries, explained,

“Fevicol, which is synonymous with adhesives, has always had very memorable and

entertaining communication. Be it a politician glued to his chair, the hen that laid unbreakable

eggs, to the overflowing bus, or the ‘Moochwali’ advertisement – all the commercials have

been loved and appreciated by consumers. They often wait for the next Fevicol commercial

with great expectations, and with this new ad, we are taking this legacy forward. This one is

again a clutter breaking and very enjoyable commercial that will bring a smile to viewers’

face. The background score is catchy and the film will make people connect with the brand.

O&M has come out trumps again and has delivered yet another entertaining commercial.”

The Final Product:

The film opens on hilly road with a newly-wed couple travelling in the jeep, when a cyclist

following the jeep starts ringing the cycle bell. This irritates the husband, who tries his best to

shake off the cyclist. But to no avail, as the cyclist doggedly follows the jeep, ringing the bell.

The ad ends with the shot of the back of the jeep loaded with cans of Fevicol, thus revealing

the reason how the cyclist could keep up with following the jeep.

Xpert Comment:

Rahul Jauhari, who is taking over as NCD of Everest Brand Solutions next month, put forth

his views on the campaign and said, “I quite liked it. Infact, enjoyed watching it a lot. One

little moment between the recently married couple. The story is so simple. And the

storytelling so apt. Thumbs up to the Fevicol team.”

Our Take:

The campaign looks appealing just like earlier Fevicol campaigns. It is lighthearted and fun

to watch and doesn’t deviate from the brand salience.

Client: Pidilite

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Brand: Fevicol

Agency: Ogilvy & Mather

Medium: Television

Creative: Piyush Pandey, Abhijit Avasthi

Director: Prasoon Pandey (Corcoise Films)

Servicing: Vivek Verma, Ramanathan Sridhar

Films: Porus Khareghat

Music Composer: Ehsaan Noorani

Singer: Divya Kumar

Lyrics: Piyush Pandey

Pidilite Industries is an Indian company that enjoys noteworthy success in craftsmen products

and industrial speciality chemicals. The company’s most successful brand Fevicol and its

sub-brands such as Fevikwik, Fevibond, Fevigum, Fevistick and Fevicryl have consistently

commanded over 70% of the total market share. In 2005, Fevicol stood 24th among top 150

Indian brands. The company has also been able to stay head of its competitors in the

organized and un-organised sector. The case discusses innovative marketing strategies

adopted by Pidilite to enable an industrial product like Fevicol carve out its niche as a

consumer brand. It also discusses the future outlook of the company to retain its dominating

position in the Indian market in light of increasing competition from multinatio nals and the

unorganised sector.

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DISTRIBUTION STRUCTURE OF PIDILITE INDUSTRIES

FORMAL -----------------

INFORMAL --- - ---- - ----

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Process

The 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. Then the goods are sent to the various mother godowns spread across the

country for further distribution. Once the goods reach the mother godowns, they are

transferred under the name of the marketing concern of Pidilite Industries Ltd. ( PIL) called

Parek Marketing Ltd.(PML). This is done for some financial implication which have two fold

benefits. They not only account for certain percentage of tax saving but also enable the

company to show double th profits. Of course, the PML rates are higher than those of PIL

due to central sales tax and other taxes levy on the goods during transport to godowns.

This is sent to the C & F agents and the Company owned Depots. From here the goods are

invoiced under PML and sent to the WSS who inturn bill the goods under the name of their

respective concerns and sell the goods to the retailers. The retailers also sell the goods to the

end consumers under their dealership.

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MANUFACTURING UNIT

MOTHER GODOWN

C & F CO. 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

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TRANSPORTATION SYSTEM

THE TRANSPORTATION SYSTEM

The transportation system from the factory to the respective distribution stages are covered

solely by road.

FACTORY (MAHARASTRA)

MOTHER GODOWN

TRUCKS

KANPUR(COMPANY

DEPOT)

GHAZIABAD(C&F AGENT)

TRUCKSTRUCKS

WSS(42)WSS(46)

TRUCKS TRUCKS

RETAILER RETAILER RETAILER RETAILER RETAILER

3 WHEELERS/VANS

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From the factory, the goods are transferred to the mother godowns in respective zones

via trucks.

From the mother godown ( in Delhi ) , trucks are used to transfer the goods to

company depots and C&F agents.

From the company depot or C& F agents , the goods are sent via trucks to different

WSS in their assigned regions.

From the WSS , the goods are sent to wholesalers or retail outlets, via three wheelers

or vans.

Sometimes the goods are sent to their company depots and C&F agents directly from

the manufacturing unit, instead of going via . company godown depending on route

compatibility.

DESCRIPTION OF CHANNEL PARTNERS

I. C&F Agent

These agents have infrastructural and transportational facilities and are the responsible for the

transfer of goods.No sale takes place at this level.These C&F agents get monthly

emolumentsn from the company for their service.

II. WSS

The company appoints various wholese stockist who are a very important link between the

C&f Agents and the retailers. The number of these stockist is not fixed and varies according to

the sales potential and geographic size of the region.

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Primary sale takes place at the Wholesale stockist. Hence their selection, motivation and

evaluation becomes very important to the company.

TYPES OF WSS

The company has divided the WSS on the basis of their sales value and sales potential.The

various categories of WSS are

1. CLASS A : These stockists are the ones who have a sales potential above

Rs 10,00000 Per month.

2. CLASS B: These stockist have the sales potential between Rs 5,00000 and

Rs10,00000 Per month.

3 . CLASS C: These stockist have a sales potential of less than Rs

III. RETAILER

The WSS sell the goods to the retailers who in turn sell it to the end consumers. The retailers

are classified in terms of their dales potential in the following manner:-

Class A- Greater than Rs 3,000,00 pm

Class B- Between Rs 3,000,00-1,000,00 pm

Class C –Less than 1,000,00 pm

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Why distribution channel is important ?

Without distribution even the best product or service fails. According to Jean-Jacques Lambin

a marketer has two roles: (1) to organise exchange through distribution and (2) to organise

communication.

Physical distribution, or Place is most important 'P's in the marketing mix.

What pidilite do to its position as a leading brand in India? The answer: strong brands, wide

distribution network and excellent reputation amongst those who use its products. As one

investment analyst put it, "Fevicol is so synonymous with the quality and the product that most

of the direct consumers or carpenters cannot take risk with this kind of product. This gives

Pidilite serious pricing power."

Decisions about physical distribution are key strategic decisions. They are not short term.

Increasingly it involves strategic alliances and partnerships which are founded on trust and

mutual benefits. We are seeing the birth of strategic distribution alliances. You can see

Southwestern Bell in the Hall Of Fame explain how marketing marriages provide new ways of

getting products and services in front of customers.

Channels change throughout a product's life cycle. Changing lifestyles, aspirations and

expectations along with the IT explosion offer new opportunities of using distribution to create

a competitive edge.

Controlling the flow of products and services from producer to customer requires careful

consideration. It can determine success or failure in the market place. The choice of channel

includes choosing among and between distributors, agents, retailers, franchisees, direct

marketing and a sales force.

They has entered new markets such as South Asia, Africa and Europe with products such as

adhesives, art materials and industrial chemicals. They have decided to tap the overseas

markets more aggressively and expect to double their export revenues within the next two

years.'' Currently, Pidilite has export revenues of Rs 350 mn. management style.

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DISTRIBUTION IS IMPORTANT BECAUSE:

Firstly, it affects sales - if it's not available it can't be sold. Most customers won't wait.

Secondly, distribution affects profits and competitiveness since it can contribute up to

50 percent of the final selling price of some goods. This affects cost competitiveness as

well as profits since margins are squeezed by distribution costs.

Thirdly, delivery is seen as part of the product influencing customer satisfact ion.

Distribution and its associated customer service play a big part in relationship

marketing.

Distribution Strategy :

Distribution strategy is influenced by the market structure, the firm's objectives, its resources

and of course its overall marketing strategy. All these factors are addressed in the section on

selecting Distribution Channels.

The first strategic decision is whether the distribution is to be: Intensive (with mass

distribution into all outlets as in the case of confectionery); Selective (with carefully

chosen distributors e.g. speciality goods such as car repair kits); or Exclusive (with

distribution restricted to upmarket outlets, as in the case of Gucci clothes).

The next strategic decision clarifies the number of levels within a channel such as

agents, distributors, wholesalers, retailers. In some Japanese markets there are many,

many intermediaries involved.

Next comes a sensitive strategic decision whether to go single channel or multi-channe l.

Some product of pidilite, use multi-channels - they use many different routes, direct

and indirect, to bring their products to their customers. Multi-channel Systems like this

are common where intensive distribution is required. So direct marketing is combined

with indirect marketing through intermediaries.

Then comes the next level of strategic decisions concerning strategic relationships and

partnerships. Two common strategies are Vertical Marketing Systems and Horizonta l

Marketing Systems.

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o Vertical Marketing Systems involve suppliers and intermediaries working closely

together instead of against each other. They plan production and delivery schedules,

quality levels,promotions and sometimes prices. Resources, like information,

equipment and expertise, are shared. The system is usually managed by a dominant

member, or 'channel captain'. VMS is more flexible than vertical integration where the

manufacturer actually owns the distribution channel.

o Horizontal Marketing Systems occur where organisations operating on the same

channel level (e.g. two suppliers or two retailers) co-operate. They then share their

distribution expertise and distribution channels. This can speed up the time taken to

penetrate the market. There is room for creative alliances here.

Pidilite's biggest advantage is that his products meet his customers' expectations. They have 30

years of established presence in the business. Over 60% of their sales come from products and

segments they have pioneered in India. They have built a strong image of durability and quality

for our products. A strong brand equity, ability to meet consumers' needs by a process of direct

and close contact and continuous feedback from users and a wide distribution coverage are

their key strengths.

Pidilite wants products that have brand potential but whose owners lack distribution

capabilities. The brand should either have a leadership position or be in a position to become a

leader. So far, the acquisitions have been in related segments, and paid for in cash. Pidilite is

also increasing his existing distribution network in smaller towns, not just to push the acquired

brands, but also because they expects the furniture market there to mushroom as the benefits

of economic growth percolate downwards, and this will drive Fevicol's sales.

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Selecting members within a channel :

Having decided to go through intermediaries the next question is whether to use agents or

distributors and also how many. Unlike distributors, agents don't hold stocks - they only act as

sales agents finding customers, collecting orders and passing them on to the supplier in return

for a percentage commission.

Pidilite's distribution network with 30,000 dealers/distributors and 300,000 retail outlets spread

throughout India is better than many FMCG companies. Pidilite interacts with his dealers

regularly. they still continue to allocate a major portion of their spends on ground activit ies

such as dealer meets and the rest is for advertising.

How would you select a distributor or an agent? Here are some criteria:

1. Market Coverage, 2. Sales Forecast, 3. Cost, 4. Other Resources, 5. Profitability, 6. Control,

7. Motivation, 8. Reputation, 9. Competition, 10. Contracts

1. Market Coverage: - does the profile of existing customers match your target market profile?

- is the number of customers big enough to meet the required distribution penetration? - is the

existing sales force big enough to cover the territory? - are they dependant on a single

individual? - are the existing delivery fleet and warehouse facilities adequate?

2. Sales Forecast: How many can they sell? What are their forecasts based upon? Do they give

a 'best, worst and average' forecast? Will they invest in large stock commitment? Do they have

budgets to run promotions? Some suppliers even ask their distributors for a marketing plan

showing how they intend to market the supplier's products.

3. Cost: What will it cost in terms of discounts, commissions, stock investment and marketing

support?

4. Other Resources: Does the target market require anything special such as technical advice,

installation, quick deliveries, instant availability? If so can the distributor provide it?

5. Profitability: How much profit will the distributor generate for the supplier?

6. Control: Do they have a reporting system in place? How do they deal with problems? How

often are review meetings scheduled? Can you influence the way they present your products?

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7. Motivation: Does the agent or distributor convey a sense of excitement and enthusiasm about

the product? What about its sales force - what's their reaction?

8. Reputation: Has it got a good track record? This includes the number of years in business,

growth and profit record, solvency, general stability and overall reliability. Is it dependant on

one key player?

9. Competition: Do they distribute any competitor's products?

10. Contracts: Some distributors demand exclusivity. Some agreements tie the supplier in for

certain periods of time. Check for flexibility in case things go wrong.

The bottom line is: Can the agent or distributor be motivated, controlled and trusted? Motivated

to sell your product among a range of others. Controlled to feed back results or change strategy

if requested. And trusted to act as a reliable ambassador of your product?

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Sales Force Management at Pidilite

In pidilite the sales force management is the important role and it plays a wide role in the

Furniture industry. The sales force management is successful if implemented and directed

well.

Types of Sales Representatives

In Pidilite they design a sales force step wise and it is the main role of the pidilite that it

is the most important factors to study the steps of sales force which is included in

Pidilite.

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Typical Training topic of Pidilite

Sources of Information When evaluating the sales force at Pidilite

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BUILDING LEADERS FOR TOMORROW

Young Talent Management or (YTM) is a flagship program of Pidilite. The program draws

students from the fields of business, technology and research to work on high-impact projects

involving strategy and cutting -edge technology. So, whether you’re looking for an internship

or post graduate opportunities to progress your professional career we at Pidilite, provide a

platform to expand professional and academic horizon. This helps the young talented

individuals to prepare for a successful career ahead.

Find a role that you are passionate about and can be rewarding as you work with the brands

and people that drive our business growth.

MANAGEMENT TRAINEE PROGRAM

Management Trainee program is focussed on building the career of trainees through a robust

program run over duration of 3 years where a trainee goes through multiple functional and

cross-functional stints. We visit select MBA and Engineering Institutes across India to hire

Management Trainees for this programme.

We are proud of our ability to nurture individuals and provide them the space and

empowerment they need to hone their talents. Our size gives us the unique ability to provide

fast growth and high responsibility early in one's career as well as multiple avenues to reach

the top.

INTERNSHIPS AT PIDILITE INDUSTRIES LTD

We offer the most challenging 2 month summer internship to students. We also offer winter

internship projects to students. Live projects related to sales, market development supply

chain etc are given where students stand to gain hands-on experience of working in one of the

world’s leading consumer goods company. Once the students are a part of it, they work

towards creating better future every day.

OPTIONS OF INTERNSHIP:

Sales

Finance

Marketing

Research and Development

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SALES PROMOTION

Profit Management Promotions is a Sales Promotion, Liquidation and Consulting firm

comprised of experienced professionals offering customized services to meet the needs of

independent furniture retailers. Profit Management Promotions specializes in high-impact

sales promotions designed to raise money for furniture retailers or liquidate stores that have

decided to close.

Marketing furniture to the public can be a challenging venture for a small business owner.

Furniture pieces are items that consumers purchase only on occasion. Most furniture items have

a higher price point than other retail goods and convincing the consumer to make an investment

is crucial to an effective advertising campaign. There are several furniture promotion ideas that

can be used to help you reach your target market.

Salespeople are an effective link between the company and its customers to produce customer

value and company profit by:

• Representing the company to customers

• Representing customers to the company

• Working closely with marketing

Setting sales promotion objectives includes using:

• Consumer promotions

• Trade promotions

• Sales force promotions

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Major Sales Promotion Tools

Samples offer a trial amount of a product

Coupons are certificates that give buyers a saving when they purchase specified products

Cash refunds are similar to coupons except that the price reduction occurs after the purchase

Price packs offer consumers savings off the regular price of a product

Samples offer a trial amount of a product

Coupons are certificates that give buyers a saving when they purchase specified products

Cash refunds are similar to coupons except that the price reduction occurs after the purchase

Price packs offer consumers savings off the regular price of a product

• Contests, sweepstakes, and games give consumers the chance to win something—such

as cash, trips, or goods—by luck or through extra effort

• Contests require an entry by a consumer

• Sweepstakes require consumers to submit their names for a drawing

Samples Coupons Cash refunds Price packs

PremiumsAdvertising specialties

Patronage rewards

Point-of-purchase displays

Demonstrations Contests Sweepstakes Games

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• Games present consumers with something that may or may not help them win a prize

• Event Marketing

Major Sales Promotion Tools

Trade Promotion Tools

Conventions and trade shows are effective to reach many customers not reached with the

regular sales force

Sales contests are effective in motivating salespeople or dealers to increase performance over

a given period

• Size of the incentive

• Conditions for participation

• Promote and distribute the program

• Length of the program

• Evaluation of the program

Discount Allowance

Free goodsSpecialty

advertising

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Conclusion

From the above we can conclude how pidilite uses it sales force management by including all

steps and getting well implemented. The distribution channel of Pidilite industry is well

developed and serving the market at its best.

As pidilite industry is leader in its segment and performing well in the market and we can also

conclude that it is providing innovative and extra feature products with an aesthetic look

packaging and advertising.