Pidilite Industries Limited

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To make the process even easier, Fevicol now provides an application called FCC Udaan which can be used by the contractor to scan the bar code attached with each SKU and those points are then added to the contractors account directly.

Once in two months, contractors are called area wise for FCC meets to hotels where the Business Development Executives explain to them the correct way to use and apply the product, explain to them the do’s and dont’s and explain the new products following which they all sit together and eat at the hotel in order to build solidarity.

Fevicol has now gone a step ahead to build loyalty by now not just providing points to the contractors but by providing an entire service to them, called Fevicol Design Ideas. Through this they provide them:

- Design Ideas

- Contractor Branding

- Knowledge kits

- Business

As a service Fevicol Design Ideas is connecting Home owners who want to get their work done and contractors who want to do the work onto one common platform where each fulfils the need of the others. Hence through this service Fevicol is providing the contractors employment which ultimately leads to direct business.

Hence all these factors have been playing a major role in keeping the Contractors bound to Fevicol.

Report #3: Competitor Review

Slogan of Fevicol is “The Ultimate Adhesive” and it stands true to it. It is the largest selling white adhesive brand in India. Strenghts:

1. A very popular and famous brand, Fevicol has been a household name for generations and has become synonymous with anything that sticks or holds items together.

2. Viral advertising campaigns by O&M have been a trend of Fevicol’s marketing strategies, which have been greatly appreciated by viewers and applauded by advertising agencies & critics. E.g.:- “pakde rehna, chhodna nahi” ads involving, either people hanging from a rope or people clinging to the local trains or even the children who are born with a moustache because their parents used Fevicol to stick theirs.

3. They boast of a very strong supply and distribution network across India with more than 65,000 dealers and retailers.

4. Different SKUs and packages account for customer-friendly approach and ease of application.

5. Market reach is tremendous, with countries like Indonesia, Singapore, Thailand, South Africa, China and Japan also witnessing increase in sales of the brand.

6. Easily the market leader in India under the adhesives category with majority market share.

Weaknesses:

Its model is based on building relationships and with the change in guard of many of its clients, there’s an opportunity for others to jump in. 3M is concentrating on India, Asian paints has also ventured into adhesive segment and Loctite is also focusing on India. Pidilite seems to be over reliant on the relationships which is its strength but also a weakness.

Major Competitors:

1.Araldite (Huntsman)

2.Bondtite

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Fevicol is the market leader and the competition so far has not been able to dent or eat into its market share but after dominating the adhesives market, Fevicol maker Pidilite is facing a challenge from an unlikely contender. Asian Paints has entered the retail segment of the adhesives category through a distribution arrangement with Germany’s Henkel Adhesive Technologies. Under the arrangement, Henkel’s adhesive brand Loctite will be sold at the retail level through a co-branding initiative. Asian Paints has a distribution network spanning 36,000 hardware shops. Efforts have already begun to woo retail customers through an ad campaign. Last year Germany-based Henkel AG’s subsidiary Henkel Adhesive Technologies had said that it would invest Rs. 220 crore (€30 million) to set up the country’s largest adhesives plant, with 80,000 tonnes annual capacity, at Kurkumbh near Pune. Loctite has been present primarily in industrial adhesives since 2000, but now, the new retail products will get manufactured at our plants based in the western region. For Asian Paints, matching Pidilite’s distribution strengths will not be easy when it comes to reaching out to kirana outlets. While Asian Paints can tap into the existing distribution of paint dealers, a lot of adhesives are also sold through kiranas, which will be a key challenge for Asian Paints; Pidilite has a strong presence in such outlets with a 70 per cent share in adhesives.

Bluecoat adhesives, an Ahmedabad based company, which was known for its R&D and quality product was bought by Pidilite in September 2014 for Rs. 263 Crores before it could become a major threat.

ResinovaChemieLtd’sBondtite is also a competitor but no data was available on its market share currently.

Report #4 Segmentation, Targeting, Positioning

Segmentation, Targeting & Brand Positioning are marketing tools that can be used to divide a huge homogeneous target group into smaller subsets of consumer groups with similar needs and requirements, and thus designing and implementing strategies to garner desire of the said subset for a product. In other words, they are to align product benefits with consumer needs to create a unique value proposition for the product.

Segmentation

Segmentation can be of 4 types:

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1. Geographic Segmentation divides the market into geographical units based on similarities in surroundings or environment i.e, Such as Urban/Rural, Tier-1/Tier-2, Climatic, Terrain, SCR etc

Geographically Fevicol usage is universal. However our target for the promotion would be for Tier1 Cities. The reasons for this would be the following:

- FCC is currently very well established in Tier 1 cities and is still upcoming in the other cities.

- Tier 1 cities have regular FCC meets where multiple contractors meet the Pidilite Business Development Executives and this can be used as a great medium for communication

- Cities outside