Vous êtes sur la page 1sur 57

Group 7 (Sec B) Raj Kumar,Ashish Priyadarshi

Mudit Singh,Prateek Singh,Siddharth Kumar


IIM ROHTAK

Use of marketing
communications in the evolution
of brand Fevicol in India
[Document subtitle]

TABLE OF CONTENTS
TOPICS
1. Introduction..
1.1 Impact of Effective Marketing communications on Consumer
Attitude
1.2 Need for Marketing communications
1.3 Essentials of Effective Marketing communications
1.4 Situations favoring advertisement..
1.5 An Ideal Consumer Feeling...
2. Effective Marketing communications and Consumer
Attitude
3. Statement of Problem...
4. Objective..
5. Research Methodology
5.1 Formulating the research problem.
5.2 Extensive literature survey.
5.3 Development of Working Hypothesis
5.4 Preparing the Research Design..
5.5 Determining the Sample Design
5.6 Period of Study..
5.7 Data Collection Method.
5.8 Tools for Analysis..
6. Scope of the study
7. Pidilite Industries: Fevicol Success Stories.
8. Company Profile..
8.1 Company Information
8.2 Values & Vision.
8.3 Quality
8.4 Future Prospects.
8.5 Research & Development..
8.6 Employees Training...
8.7 Welfare Schemes
8.8 Recruitment Policies..
8.9 Awards for Excellence...
8.10 PIL Environment...
8.11 Milestones @ PIL.
8.12 Pidilite's Awards Wardrobe..
8.13 Products Category.
9. Retrospect of Fevicol Advertising...
10. Data Collection...
1

11. Data Analysis..


12. Findings...
13. Recommendations...
14. SWOT Analysis..
15. References...
16. Questionnaire..
17. Basic Terminologies in Advertising Industry.
18. List of Abbreviations used..

1. Introduction
1.1 Impact of Effective marketing communications on Consumer Attitude
Marketing communications which is a crux of any market economy, plays a pivotal role in the
economic progress of a nation. Advertising is indeed the only direct method, which helps to
reach masses of potential buyers. Advertising, being dynamic, changes with changing methods of
distribution and consumption. Advertisements have become the part of life for everyone as a
listener through some media or other. In the present era of information explosion and media
influence, these advertisements play a major role in changing the settled perception or thinking,
which is otherwise called attitude, of the consumer and also the consumption pattern of the
society in general. Thus, the impact leads to cultural and social changes to a great extent. Under
this situation efficiency of the manufacturers, marketers and advertisers is tested in churning out
advertisements, matching the expectation of the consumers, which may gradually bring about
desired attitudinal changes in them.
1.2 Need for marketing communications
Marketing communications plays a major role in every walk of life. The divergent sections of the
society may need advertisement for a variety of reason from information sharing to consumer
persuasion to decision making. The paramount reason which may necessitate the use of
advertisements may be:

Marketing communications is a way of communicating information to the consumer,


which enables him or her to compare and choose from the products and services
available. Advertisement enables consumer to exercise their right of free choice.
Marketing communications is the most economical means by which a manufacturer or an
institutional body can communicate to an audience whether to sell a product or promote a
cause of social welfare such as a civic drive or an immunization programme.
Marketing communications, being a necessary means of communication is an inseparable
part of speech. Any restriction on the right to recommended legitimate goods, services or
ideas in public will diminish the fundamental right of the freedom of speech.
Marketing communications can help in improving the economies of developing
countries. Advertising stimulates increases in production and consequently generates
2

more employment. It can help stabilize prices and thus lead to wider distribution and
greater availability of goods and services.
Marketing communications is an essential and integral to the marketing system. It is
sometimes maintained that the marketing system is nothing but the consequent of a
countrys social and economic growth. The fact is that advertising is the main key tool
used to a countrys growth.

The basic concept based on Telling and Selling. One of the 5 Ms of an advertising programme
is Measurement. It denotes how the results should be evaluated. Measurement can at best be
done around an audience/ customers ability to recognize and recall the advertisement and the
total impact formed them by the overall image of the company that finally influence the purchase
behavior of the customer.
The present scenario of the FMCG has witnessed many a great advertisements in its field. The
major players hire top advertising agencies to create memorable advertisements for their brands
to enhance the sale.
Thus, the response of the customers, whether existing users or prospective, about the impact of
these advertisements is momentous to help the firms decide how the advertising is benefiting
their brand and in what proportions, and also about the future strategies.
1.3 Essentials of Effective Marketing communications
The measure of any Marketing communications is its effectiveness in reaching out to the
consumers; there are a few agreed principles, which govern the effectiveness of an
advertisement. Some of the principles, which are the ingredients of an effective advertisement,
have been dealt here.
Importance of claim:
The most important factor determining the effectiveness of an advertisement is the
importance of claim made in it. Many advertisements make important claims. But these claims
should be important for the consumer too. If a buyer gives importance for quality, there is no
point in speaking about cheap price, similarly if cheap price is important the advertisement
should highlight only that. Nowadays advertisement agencies concentrate on USP, i.e., unique
selling proposition. Each advertisement must make a strong factual claim to pull the consumer
into the store to buy.
Believable:
An advertisement must be believable. This can be incorporated in many ways.
One way is to quote facts and figures about tests proving your claim. However, negatively
speaking, the advertisement should not mention anything unbelievable. Sometimes
advertisement given in prestigious magazines is believed by the readers.
Uniqueness:
The advertisement itself must have something unique about it. Uniqueness draws
attention. According to the four-fold principle of AIDA (Attention, Interest, Desire and Actionbuying), any effective advertisement should draw the attention of the customer. It is a mistake to
3

depend entirely on uniqueness. It should be followed by proper claims, and believability.


Typically advertisements whose major objective is to gain brand recognition and acceptance
rather than gaining conviction or buying action rely on uniqueness.
Repetition:
Repetition is one of the key concepts of advertising. It is better to have a long
series of small advertisement than one extremely long advertisement. Repetition is a basic
principle of memory. Naturally, the more times an advertisement is run, the more likely it is that
any person has seen one of the most advertisements recently. Repetition and regency are usually
closely related. In fact, an advertisement is better read upon repeating, certain repetition lowers
advertisement cost.
1.4 Situations Favoring Marketing communications
It is imperative that the situation must be ripe for an advertisement to bear the fruits of optimum
return or reward. The advertiser must constantly assess the situation to choose the right
environment and ideal time for an advertisement to be launched. The conditions favouring an
advertisement are as follows:

When there is a favourable primary demand of particular product.


When there is a distinctive product differentiation from other competitive brands.
Availability of favourable hidden qualities in the advertised products not found in
competitive products.
When mass market is penetrated.
Possibility of powerful emotional buying motive is seen in the advertised product.
Favourable managerial personnel personal and company policies.
Non-Exaggeration of facts in product advertisement.
Effective or systematic research work conducted for a particular product to be advertised.

1.5 An Ideal Consumer Feeling - Response to an Marketing communications


In order to ensure that the advertisements reach the target consumers in a most effective way and
begets right response from, it has to be ensuring that such advertisements are presented in the
right way. The following steps on the part of consumer may ensure that the advertisements are on
the right track.

Getting attracted towards the advertisements.


Listening and observing the contents of the advertisements in full.
Continuous watching of the same over a period.
Comparing the advertisements of similar products.
Learning more about the product, the producer and the advertiser.
Making a trail purchase as follow up activity.
Using the product as per the instructions.
4

Assessing the level of utility of the product individually.


Assessing the level of utility derived with other similar consumers.
Comparing the level of utility of the product with similar products.
Decision-making regarding the continuous use of the product, and to recommend to
others, positively or negatively.
If not satisfied with the product discrepancy regarding the quality and the characteristics
of the product are to be taken to the knowledge of the producer and the advertiser.
If any damages suffered on account of the advertisement information, claiming remedy
through legal means against the advertisers, modeling persons and the media together,
with the help of MRTP Act, Consumer Right Protection Act in Criminal Procedure Code.

2. Effective Marketing communications and Consumer Attitude


The following model exemplifies the attitude or response of a consumer to an advertisement and
a glance through the following pictorial presentation would simplify our understanding of the
advertisements effects on thinking response and it also magnifies the peripheral and associative
effect of an advertisement.
A rather simple explanation of how a feeling response advertisement works is that people like
it or dislike it is an advertisement, and this attitude gets transformed to or associated with the
product in the advertisement. There is thus the potential for a direct causal link between the
attitude towards an advertisement and the attitude and behaviour towards a product. As noted in
the diagram, feelings engendered by an advertisement can create or influence an attitude towards
the advertisement directly, as well as indirectly, through assessment of the quality of the
advertisements exceptional characteristics. In fact, some researchers believe that attitude to the
advertisement really has two different components; an effective one, reflecting the direct effect
of the feelings evoked by the advertisement, and a second more cognitive one, reflecting how
well is the advertisement made and how useful is the advertisement.
It is important, in understanding how an advertisement ultimately affects consumer attitude; to
see what kind of attitude people develop toward the advertisement itself. If the feeling that the
advertisement creates is positive, and if the way the advertisement is made is evaluated
favourably, then the advertisement should elicit a favourable attitude towards itself and viceversa.

A Model of the Feeling Response to Marketing communications


Decreases amount of total thinking

Increases ratio of positive to negative thoughts


Raises product attribute valuation

Transform use experience

Advertising
-Evoked
Positive
Affective
Response

Increase positive product attribute attitude

Increases Attitude towards the Advertisement

Increase Evaluation of Advertisement characteristics

In respect of the viewers of the advertisement, the matter of concern is that, how far does it
influence them and how should it influence them in the right direction. Viewers of advertisement,
who are the mass, have got their own outlook and their own way of understanding. The
customers are to depend on the advertisements, only till he gets the product. After buying and
using the product for the first time, comes the response to the advertisement. This can be in three
different levels viz.

At the first level, when the consumers are fully satisfied, they will respond favorably to use the
product continuously, subject to the price and the availability of the product. Continuous
advertisement in various media further influences the listeners to build up a positive attitude
towards the product. This leads to the change in the consumption behavior of the society, which
leads to a great level of social and cultural change among the people in general.
The next level is the stage of getting dis-satisfaction by the consumers on the use of the product,
on persuasion by the advertisement. This will lead to consumer resistance to the product. The
dissatisfaction at this state means that the quality or the contents of the utility value of the
product might not have reached the height expectations created by the advertisement. If the
product or service at this stage is able to satisfy at least a section of the people, then it can service
higher and thus will serve as forbidding factor. As far as the attitude formation is concerned, this
stage can be considered as a formative stage. But if the product fails to reach, not even a section
of the society in total, it will lead to the product withering away from the market in course of
time.
The third situation leads to a stage, when the viewers understanding that the advertisement
misguides them or giving a wrong information deliberately. Under this situation the viewer loses
confidence on the advertiser, producer and the seller. This leads to a negative attitude on the
marketing of the products of the company in general. The defects are to be brought to the
knowledge of the producer to give a chance for him to correct the mistakes, if it is so. When
there is no proper response for this complaint, then it leads to earning discredit from the
customers.

3. Statement of Problem
Fevicol, a Pidilite Product, has captured a large space in both market and people mind-space.
Fevicol has covered both commercial and home consumers with peak share. Still far from the
fact that there is presence of several other local and known brands in adhesive segments but the
market share of Fevicol remains almost unaffected.
It is always in the mind of Advertising Manager that how much effective their advertising
campaign would be. And the task becomes more complex as it includes the Brand name with it
that comes under stake during campaign.
Fevicol as a brand is known to almost everyone either he may be a user or not. Several things are
in the mind such as,

Is the brand rightly positioned in the mindset of consumers?


What strategies have they used?
Does the current advertising strategy or the past strategy really have any deep impact
over consumer mind?

Several such queries have to be answered here.

4. Objective
To measure recall of advertisement and its contents.
Role of integrated marketing communications in brand positioning of Fevicol
Role of integrated marketing communications in customer acquisition by Fevicol
Role of integrated marketing communications in customer retention by Fevicol
Different marketing and advertising campaigns undertaken by Fevicol
To measure brand recognition.
To measure attitude change from previous purchase behavior to present purchase
behavior.
To test the brand loyalty.

To justify companys high advertising expenditures

5. Research Methodology
Research methodology is a way to systematically solve the problem. It may be understood as
the science of studying how research is done scientifically. In it we study the various steps
that are generally adopted by the researcher in studying his research problem along with logic
behind them. It is necessary for the researcher to know not only the research
methods/techniques but also the methodology.
Researchers not only need to know how to develop certain indices or tests, how to calculate
mean or median or mode, how to apply particular research techniques are relevant and what
would they mean and indicate and why.
Research process consists of series of actions or steps necessary to effectively carry out the
research.
I have undergone the following steps to carrying out my research work.
5.1 Formulating the research problem
Two steps are involved in formulating the research problem:
Understanding the problem.
Rephrasing the problem into meaningful terms from an analytical point of view.
These sessions are undergone in the beginning of dissertation in order to make clear the tasks
and objectives to cover under the whole research process.
5.2 Extensive literature survey
After formulating the problem, a brief summary of it should be written. For this an extensive
search is made through the journals, magazines, articles, books, websites, etc.
5.3 Development of Working Hypothesis
The role of hypothesis is to guide the researcher by delimiting the area of research and to
keep him on the right track.
The hypothesis development process undergoes following phases:
Discussions with colleagues and guide about the problem.
A hypothetical objective to achieve gets developed.
Data showing past trends and peculiarities are analyzed.
9

A preview of the market is taken from the concerned authorities in order to


develop the relative hypothesis in accord with.

5.4 Preparing the Research Design


The research design is developed to collect the relevant information with minimum of efforts,
time and money.
Marketing Research Objectives:
To undertake a prior market study before doing own research.
To make an analysis on the basis of the results.

Type of Study: Descriptive (Under the descriptive study technique the


statistical method has been used. Here the researcher must design their studies to give
as much evidence as possible for reflecting the cause and effect relationships from the
data collected through the survey technique. The designs of such studies should be
planned with the type of required analysis already in mind).

Research Area: Mumbai.

Source of Information: Primary Data, Secondary Data.

Primary Data Collection Instrument: Questionnaires & Personal Interview.

Research Approach: Survey Method.


5.5 Determining the Sample Design
Sample Design is a definite plan determined before any data are actually collected for
obtaining a sample for a given population. The sample design to be used must be decided by
the researcher taking into consideration the nature of inquiry and other related factors.
The sample design for my dissertation is as follows:
Target Population:
o Element: Home-base & Industrial-base (Carpenters, mostly) respondents in
selected areas of Mumbai.
o Extent: Selected areas of Mumbai.

Sampling Method: Stratified Random Sampling (This technique is a kind of


probability sampling. This technique uses the principle of stratification. In this
technique researcher begins by constructing the strata; even the compound strata
can be used. After that the sample sizes, called quotas, are established for each
stratum and the interviews are conducted. The data collected get categorized over the
basis of stratum formed. As a result the analysis can be easily made due to earlier
classification of the data collected. Here the stratum made is Home-base
respondents and Industrial respondents, on the basis of Product Usage Variable).
10

Sample Size: 100 (75 Home-Base + 25 Industrial-Base) respondents.

5.6 Period of Study


The study is covered under the period of Oct-Nov. 2015.

5.7 Data Collection Method


There are several ways of collecting appropriate data that differ considerably in the context
of money costs, time, and other resources at the disposal of the researcher. The tools used for
data collection are as:
Primary Data: Questionnaire A set of questionnaire is prepared for the cause of collecting different
information related to the pre-determined objectives. The questionnaire prepared is
targeted towards both home base consumers and industrial base consumers. The
format of questionnaire is structured and disguised.

Direct Personal Interview Under this method of collecting data there is face-to-face
context with the person from whom the information is obtained. The data collected
are from the respective respondents selected randomly. The pattern used is structured
and direct interview.

Secondary Data: The secondary data are collected from the different resources, which are same in context as with
the objective but still not exactly. The data is also obtained from various journals, magazines,
websites and newspaper articles. Also from the company provided manuals and information
broachers.
5.8 Tools for Analysis
Simple Mathematical calculation is used as a tool for analysis of data collected through Primary
Sources.

6. Scope of the study:


Specific emphasis is being given on the tracking of the consumer attitude towards the
advertisement, which is growing at a tremendous rate. Advertising is a booming sector, but still
are they proving worthful to the Advertisers. This has to be evaluated. Another important feature
is the attempt to analyze the overall effect of the advertisement over the long term/short term
buying behavior of the consumer, whether it may be on the residence consumer or it may be over
the industrial segment.

11

In a volatile market huge expense is to make out, to be in-fight in market with the competitors.
These lead to the focused expenditure at large level over the advertisements. Are they really
proving to be effective and worthwhile to the powerful brand such as Fevicol, it is to be searched
out. Whether there still lies the need of more expenses over advertisement or not. Another factor
that is to be covered here is the brand loyalty of the consumers. Whether it as affected or
promoted by the advertisement or still the emphasis of the advertisement script need to get a
revolutionary change. The whole exercise is carried out for the city of Mumbai and done for the
May-June months of 2012.

7. Pidilite Industries: Fevicol Success Stories


Introduction
In 2005, the Rs 400 crore- Pidilite Industries, maker of Fevicol, recorded a 23 % growth. The
companys other major brands included Fevikwik, Fevigum, Fevistick, Fevicryl and Fevibond.
Fevicol stood 24th among top 150 Indian brands. BK Parekh, Chairman, Pidilite Industries
explained, The driving force behind our success is the consistent team work of our over 2900
employees. Together with our shared value system of commitment to excellence, closeness to
customers and the spirit of innovation we have been able to build bonds with our customers,
dealers and stake holders.
Over the years, Fevicol had commanded a consistent market share of over 60% in the white glue
market in India. Together with its brand extensions, it accounted for over 70% of the total
market.
A popular product in the industrial segment, Pidilites innovative marketing strategies had
enabled Fevicol to carve out its niche as a consumer brand. The company had also made
significant inroads in segments such as adhesive and sealants, art materials, construction and
paint chemicals and industrial specialty chemicals. Pidilite also exported its products to more
than 50 countries.
Background note
Pidilite Industries was established by the Parekh group in 1959 to make specialty chemicals.
Recognizing a demand for white glue in the Indian market, the company launched Fevicol, a
white glue, used as furniture adhesive. Madhukar Parekh, Managing Director, Pidilite Industries
recalled, The idea was to offer something distinctly better than what customers are getting.
In its early days, Fevicol faced competition from small industries as well as German and UK
multinationals. The multinationals promoted their products through hardware stores and timber
marts. Pidilite decided to directly approach the carpenters. The efforts paid off and by 1965,
Fevicol had become a big hit with the carpenters.
Pidilite established its manufacturing units at Mahad, Panvel and Taloja in Maharashtra and Vapi
in Gujarat. The Vapi plant manufactured adhesives and resins, the Mahad plant manufactured
12

resins while construction chemicals were manufactured at the Taloja plant. A total of 7
manufacturing units were set up by Pidilite in Gujarat and Maharashtra.
Banking on the success of Fevicol, Pidilite introduced a number of sub-brands such as Fevikwik,
Fevigum, Fevistick, Fevicryl, Fevibond and Fevitite under the Fevicol brand name. To sharpen
its focus on promoting Fevicol and its related products as consumer brands, Pidilite established a
consumer products division in 1984. The company divided its products into two main categories,
namely, consumer and bazaar (branded) products and industrial & specialty products. By the
1990s, Fevicol had become the market leader. The other sub - brands continued to leverage the
success of Fevicol. In 1997, Fevicol was amongst the top 15 Indian brands.
Pidilite implemented Total Quality Management programs at all its manufacturing units. The
company also developed an internal quality assurance system at its plants called Pidilite Quality
System. In 1995, Pidilite obtained ISO 9001 certification for the Mumbai and Vapi plant and ISO
9002 certification for the Mahad plant. All these measures went a long way in improving product
quality.
Pidilites humour based advertisements during the 1990s and a number of brand acquisitions in
early 2000 helped to increase revenues rapidly. According to a survey conducted by The
Economic Times in 2002, Fevicol stood 25th in the list of top Indian brands, leaving behind
popular brands such as Amul, Bajaj, Dabur, Godrej and Cadbury. In 2003, another survey by the
Economic Times ranked Pidilite Industries as 138th in the list of 200 most valuable companies of
India.
Pidilite also concentrated on exports. In 1999, the company was declared an Export House by the
Government of India. In 2005, Pidilite established a wholly owned subsidiary in Singapore
called Pidilite International Pte Ltd. The main objective was to grow in international markets
through acquisitions and joint ventures.
Building bonds with customers
In 1959, when Fevicol entered the Indian market, the product faced stiff competition from small
companies in the unorganized sector and multinationals. German-based MNC Hoechst Dyes and
Chemicals had launched its white glue called Movicol in 1961 in collaboration with the Mafatlal
group. Another UK-based MNC, Calico Chemicals had also launched its branded glue called
Calibond.
Pidilite adopted a direct marketing approach to promote Fevicol. The company sent its sales
force to various parts of India to directly approach the carpenters. The company also created a
database of carpenters. In 1975, Pidilite launched a magazine called Fevicraft. The magazine
provided an insight to the carpenters on furniture designs. By 1980, Fevicol had become the
favourite adhesive of carpenters.
In the mid-1980s, Pidilite decided to enter the art materials segment. Leveraging the Fevicol
brand, the company introduced fabric paints under the brand name Fevicryl. Pidilites sales
force directly approached schools, hobby classes and individual teachers to promote the product.
Housewives were offered fabric painting courses using Fevicryl.
13

Fevicols presence in the market continued to grow in the 1990s. In 2001, Pidilite established the
Fevicol Champion Club. The association met thrice a year and organized seminars, contests and
awareness programmes for the carpenters. To strength its presence in the art materials segment,
Pidilite sponsored contests for school children. The main objective of the whole exercise was to
create strong bonds with the customers.

Shifting focus to advertising


In the mid-1970s, furniture making shifted from carpenters premises to shops, homes and
offices. So, Pidilite decided to take the advertising route along with direct marketing to promote
Fevicol. In the mid-1980s, Pidilite increased its ad spending. The company introduced the dum
lagaake haisha commercial on television depicting an elephant trying to break the Fevicol bond.
The idea was to drive home the message that Fevicol created bonds that never broke.
During the 1990s, Pidilite introduced a series of commercials to re-inforce the message of
bonding. The company also used print media and outdoor advertising to support the television
commercials. Pidilite had hired Ogilvy and Mather (O&M) Advertising to handle its advertising
campaign. Piyush Pandey, National Creative Director, O&M mentioned, We have shown the
bonding power of the product in a non- literal way. The message is simple Fevicol is the
ultimate adhesive.
Pidilite often used comedy and humour in advertisements to create a high recall value. Bharat
Mehta, Senior Vice President, Marketing, Pidilite Industries clarified, For a product like
Fevicol, which is not a day-to-day product, the advertising needed to have vibrancy and spark in
it to make it memorable. We have used subtle humour with the story which is easily understood
by the target group. It stimulates you and makes you remember the brand Fevicol when you go
out to buy an adhesive. Moreover, humour has no boundaries and has a universal appeal.
In the late 1990s, Pidilites advertising campaign changed from bonding of furniture to bonding
with the consumers. In 2000, O&M won a silver in the Campaign of the Century category at the
Abby Awards for Fevicol television commercials. The Fevikwik commercial depicting a
fisherman catching fish using Fevikwik won a gold at the awards.
In 2002, O&M again won a silver at Cannes Awards for a Fevicol commercial. The commercial
depicted a bus travelling on a bumpy road. The bus was overcrowded with passengers seated all
over and an advertisement on its back saying, Fevicol ka jodh hai, tutega , chootega nahi
(meaning Fevicol created bonds that neither broke nor separated).
Again in 2002, Pidilite and O&M jointly telecasted the Fevicol ad festival on Zee TV. The
festival was called Jashn Manao Haisha (meaning celebrate). Fevicols award winning
commercials were shown and viewers were asked to take part in the Fevicol contest. The idea

14

was to increase Fevicols brand recall. In 2004, O&M again won the Abby Award for Fevicols
best continuing ad campaign on television.
Fighting competition
In the white glue market, Fevicol faced competition from both the unorganized and the organized
sector. In the un-organized sector there were regional brands from local players. In the organized
sector, major players were Vam Organicss Vamicol, Kitplys Kitkol, Century Plywoods
Centurycol and Ciba Specialitys Araldite.
To fortify the Fevicol brand, Pidilite introduced two new white glue brands, Parcol and Bulbond,
priced attractively to fight competition. Pidilite also realized that Fevicol had the limitation of
being sold only through timber merchants and hardware stores. So the company launched
Fevicol in small tubes in order to promote it in the household segment. By being available in
stationery stores, Fevicol entered households and increased its reach in the market.
Pidilite also introduced extensions of the Fevicol tube as Fevicol MR and Fevikwik to
strengthen the mother brand. The distribution network was also strengthened to reach small
towns and rural areas. The acquisition of the Ranipal brand in 1999 helped to increase the
distribution network of Fevicol by another 50,000 outlets.
By 2002, Pidilite had a strong distribution network of around 40,000 dealers and 4 lakh retail
outlets all over India. Madhukar Parekh explained, We have 30 years of established presence in
the business. Over 60% of our sales come from products and segments we have pioneered in
India. We 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 our key strengths.
Acquiring brands to drive growth
To facilitate further growth and avoid excessive reliance on Fevicol, Pidilite planned to add more
brands to the existing portfolio. In 2000, Pidilite acquired the Ranipal brand from Indian
Dyestuff Industries, a Mafatlal group company, for Rs 4 crores. A well-known fabric whitener in
the household market, Ranipal accounted for only 1% of the fabric care market with an annual
turnover of Rs 2.5 crores. But Pidilite felt that the brand had a huge potential for growth.
During the same year, Pidilite acquired popular brands M-Seal and Mr Fixit and the entire
adhesive and sealant business of Mahindra Engineering and Chemical products for Rs 32 crores.
M-Seal was a sealant used to seal cracks and joints. Mr Fixit was a chemical used in construction
materials. M-seal was the market leader in sealants ahead of Pidiltes Fevi-Seal. M-Seal
commanded 56% of the market share and had an annual turnover of around Rs 17 crore in the Rs
30 crore sealant market. With the acquisition of M-Seal, Pidilite hoped to completely dominate
the sealant market.

15

In 2002, Pidilite acquired another brand called Steelgrip, an electrical insulation tape from Bhor
Industries for Rs 8.73 crores. The brand was a leader in the insulation tape segment and had a
25% market share. Madhukar Parekh explained, We intend beefing up the brand to have a 50%
market share.
In 2004, Pidilite acquired Roff, a popular chemical brand of Roff Construction Chemicals. Roff
had a wide product range and a strong distribution network. Pidilite felt that the acquisition of
the brand would help its specialty chemicals business grow significantly.
Other acquisitions by Pidilite included brands such as Bulbond and Vitapon in the industrial resin
segment for Rs 7.2 crores from Parekh Marketing Ltd. Industrial resins were organic materials
made of plant or animal secretions used for bonding. The company also acquired smaller brands
in the same category such as Kalvyl, Tracol and Parvyl for Rs 1.85 crores from Kalva Chemicals
Ltd. Madhukar Parekh asserted that Pidilite would acquire only those brands that were already
market leaders in their segment or had the potential to become a leader.
Achieving growth in international markets
After strengthening its position in the Indian market, Pidilite planned to focus on exports. Since
international markets offered nearly the same margins when compared with domestic markets,
the company viewed exports as a major opportunity for growth. Pidilite ventured into the
markets of South Africa, Asia, Europe, US, Sri Lanka and Middle East. Main product categories
included adhesives, art materials and industrial chemicals.
Pidilite achieved an export turnover of Rs 11.3 crore in 1994 -95, which increased to Rs 30.82
crore in 1998-99. In 2002, the companys turnover increased to Rs 35 crores. Apurva Parekh,
Senior Vice President, Pidilite Industries mentioned, We want to continuously grow and
strengthen our business in India as well as abroad. We want to grow internationally, we want our
new brands to create new markets and in the existing products where we already have high
market shares, the goal would be to maintain and grow market share.
Pidilite had developed a strong in-house R&D base to cater to the requirements of international
customers. The company also met international quality norms for its products and obtained
necessary certifications from International Testing Agencies. Pidilite hoped to become a major
player in the international market in future.
Future outlook
Market analysts pointed out that the main reasons for Pidilites success were its ability to launch
new brands supported by innovative marketing and a strong distribution network. The success of
Fevicol and its brand extensions prompted Pidilite to introduce extensions of brands such as
Ranipal, M-Seal, Steelgrip and Mr Fixit (re-named to Dr Fixit). The company considered
branding a major driver for sales over the years.

16

8. Company Profile
8.1 Company Information
Board of Directors
B K Parekh Chairman
S K Parekh Vice Chairman
M B Parekh Managing Director
N K Parekh Joint Managing Director
R M Gandhi Director
N J Jhaveri Director
Bansi S Mehta Director
Ranjan Kapur Director
Yash Mahajan Director
Bharat Puri Director
D Bhattacharya Director
Sanjeev Aga Director (wef 29.07.2011)
A B Parekh Wholetime Director
A N Parekh Wholetime Director
J L Shah Director (upto 08.11.2011)
R Sreeram Wholetime Director (wef 08.11.2011)
Corporate Office
Ramkrishna Mandir Road
Off Mathuradas Vasanji Road
Andheri (E), Mumbai 400 059
Registered Office
Regent Chambers, 7th Floor
Jamnalal Bajaj Marg
208, Nariman Point
Mumbai 400 021
Registrar & Transfer Agent
TSR Darashaw Limited
6-10, Haji Moosa Patrawala Ind. Estate
20, Dr. E Moses Road, Mahalaxmi
Mumbai 400 011

Company Secretary
Savithri Parekh
Solicitors & Advocates
Wadia Ghandy & Co
Auditors
Haribhakti & Co
Internal Auditors
Mahajan & Aibara
Bankers
Indian Overseas Bank
Corporation Bank
ICICI Bank
The Royal Bank of Scotland N.V.

17

8.2 Values & Vision

'Delight customers by offering quality products and services.'


'Be a business leader by promoting innovation and achieving global standards.'

These are the values and vision of Shri M. B. Parekh Managing Director, on which Pidilite
Industries Ltd. performs and delivers quality products to its millions of consumers.
8.3 Quality
The products that are designed to satisfy the needs and expectations of customers are developed
by dedicated Research & Development (R & D) professionals and tested with end users before
launching.
Pidilite spends fairly large resources on R & D of its products and processes. Pidilites team of
scientists at its six R & D laboratories has developed the entire range of the Companys products.
The quality of products is assured and supported by well-defined, structured and focused quality
assurance system that is continuously audited and upgraded in line with in-house Quality Policy.
The state-of-the-art manufacturing facilities are located at Mahad, Panvel and Taloja in
Maharashtra and Vapi in Gujarat. The manufacturing processes are precisely controlled and
monitored. Its Industrial products segment and four manufacturing units at Mahad A/22, Vapi 78,
Vapi 23 and Andheri are ISO-9001 certified by RWTUV.
Even branded products in the consumer and bazaar products category strictly follow quality
parameters defined under the Companys internally designed Pidilite Quality System (PQS).
Pidilite has implemented `Small Group Activities (Quality Circles), Pragati (Kaizan) and
`Sadachar under its Total Quality Management (TQM) programme.
Divisional Functional Committee (DFC) and Profit Improvement Plan meetings (PIP) at senior
management level review the performance of various core activities at Pidilite to further upgrade
quality of its products.
Our dedication towards quality in all our products has made Fevicol a household name and a fact
well acknowledged. The Economic Times (Brand Equity) ranked our brand `Fevicol at 25th
among the top brands in India.

18

8.4 Future Prospects


Products of Pidilite Industries Limited have found good acceptance in international markets with
exports to more than 50 countries. Adhesives and Art Materials are sought by consumers and
OEM customers. The export range of Pidilite meets stringent quality standards and have
necessary approval from International Testing Agencies like ACMI, ITS and SGS.
The Industrial Specialty Chemical range including organic pigments of Pidilite Industries
Limited is exported to leading paint, ink and paper manufacturers around the world.
The strong R&D department of over fifty research personnel is able to develop as per the specific
requirements of customers. All the products are manufactured under ISO 9000 certification.
8.5 Research & Development
Our R&D team working closely with the marketing and technical service teams strive to upgrade
existing products and develop new products to meet the continuously changing requirements of
the customers. Among the products introduced by us for the first time in India are carbazole
dioxazine violet pigment, acrylic polyols, fabric colors with built-in medium, rapid setting epoxy
adhesives, tempera colors, etc.
8.6 Employees Training
Learning is a continuous process at Pidilite. Right from the time a person joins the Pidilite
family, he is inducted into the culture of learning through various initiatives. The objective is to
build functional and general management competencies so that he performs his job more
effectively or prepares himself to handle higher responsibilities, thereby adding value both to
himself and the organization.
Every employee, after joining, undergoes an orientation programme whereby he learns about the
core values and vision, culture and performance / improvement management initiatives
undertaken by the Company.
Improvement Management initiatives focus on institutionalizing continuous improvement
programmes in all processes, products and services through proper methodology of solving
problems. Internal trainers and champions are regularly developed by the organization to carry
forward these initiatives on a continuous basis. Repeat index of successful initiatives undertaken
is also tracked so that successfully implemented initiatives at one location are replicated at other
locations as well.
Apart from the above, training needs are identified at organizational, departmental and individual
levels. Training is arranged internally by internal/external trainers and externally by
deputing/sponsoring employees to programmes, seminars, conferences and workshops arranged
by leading training institutes.
19

An e-learning module has also been installed on our internal website (intranet) which mainly
focuses on technical knowledge of our wide range of products.
The aim is to provide on an average three man-days of training per employee per year so as to
enhance Pidilite's learning excellence.
8.7 Welfare Schemes
At Pidilite, we are concerned about the all-round well-being of our employees.
Medical check-up:
We undertake medical check-up of all employees over 40 years of age. Those found to have
Blood Pressure and blood sugar above acceptable levels are sent for regular medical check-ups
and progress is tracked.
Hobby awareness classes:
We undertake hobby and awareness classes for employees and their families wherein they are
introduced to new hobbies as well as personality development concepts.
Sports:
Pidilite also has a cricket club and employees are encouraged to participate in cricket
tournaments through the same.
Celebrations:
At Pidilite the feeling goes beyond an employer-employee relationship. We work as a team and
treat each other like family. All festivals are celebrated together. We play garbha, light lamps,
burst crackers, decorate the Christmas tree and party at New Years.
FORUMS - Aap Ka Mitra:
A forum unique to Pidilite is Aap Ka Mitra. Employees within the Company are nominated as
Aap Ka Mitras and trained in counseling. Other employees may approach Aap Ka Mitras for help
in solving various work related or personal problems. In the case of work related problems, Aap
Ka Mitras refer the issue to concerned authorities.
Annual picnic:
The picnic is an annual affair organized by all our locations. The employees get an opportunity to
spend time with each other and the management in a completely relaxed atmosphere. This helps
in furthering relationships even at the work place. For the picnic we go to a resort where
everyone enthusiastically participates in games and competitions.
Get together:
Each department organizes a dinner or snacks for all its members every year. This creates a
platform for all the members of the department to interact informally.

20

Other Facilities:
The recently developed Pidilite canteen can cater upto 250 employees at a time. We have also
opened a state-of-art gymnasium at our Kondivita premises.
8.8 Recruitment Policies
Objective
In order to support the aggressive growth plans & restructuring initiatives, a large number of
professionals have been added to Pidilite talent pool in the last few years.
Our Approach
The sourcing is planned at entry level as well as through lateral placements & internal
promotions / transfers.
The post-graduates in management from reputed management institutes specializing in
various disciplines are inducted through a comprehensive campus recruitment
programme which is structured induction and training.
Other than recruiting marketing and sales personnel, various professionals with diverse
background like engineers, chartered accountants, R&D/IT professionals have been
inducted into the Company from time to time in a planned manner.
8.9 Awards for Excellence
In an initiative to recognize and encourage young architects and interior designers Pidilite has
instituted awards for the students from this year onwards, these awards will be for:
Architecture students (PIDILITE AWARD FOR EXCELLENCE IN ARCHITECTURAL
STUDIES)
Interior designing students (PIDILITE AWARD FOR EXCELLENCE IN INTERIOR
DESIGNING STUDIES)
The college could nominate the best architecture and interior-designing students (one nomination
from one college for each course), keeping the eligibility into consideration.
The nominated student from each college will receive as an award:

A cash award for Rs. 1500.


A special certificate of Pidilite Award for Excellence.

The awards will be sent to the college, which can be given to the students during their
convocation ceremony or at an appropriate moment as decided by the college.

21

8.10 P.I.L. Environment


Culture
The dictionary defines culture as the act of developing intellectual and moral faculties,
especially through education. Every organisation has its own unique culture. Most organisations
dont consciously create a certain culture, instead it is typically created unconsciously, based on
the values of the top management or the founders of the organisation. Our vision is the outcome
of a 'large scale interactive process'. Under this all employees got together and after rigorous
discussions formulated our "shared vision".
Attitude
It all starts with having the right kind of people. We look for a particular kind of people,
regardless of the job category. We seek attitudes that are positive and want people who enjoy
working in a team and have a good sense of humour. An appetite for learning at every step and
from every person is another trait essential for anyone working at Pidilite.
Interaction
One of the best things about Pidilite is easy interaction with your superiors who are always ready
to guide you through. The environment is quite friendly and enthusiastic. It gives you an
opportunity to experiment with new ideas and learn in the process. The whole concept is to make
you comfortable.
Our Core Values
Be a business leader by promoting innovation and achieving global standard.
Delight customers by offering quality products and services.
Instill a can do attitude, nurture team spirit, learn continuously and achieve a high level of
employee satisfaction.
Adopt ethical, safe and environmental friendly practices.

22

8.11 Milestones @ P.I.L.


Year Achievements
1959

Plants commissioned for Acron brand of pigment emulsion

1965

FEVICOL, established as carpenters preferred choice of synthetic adhesives

1973

First company in India to start production of violet pigment

1984

Consumer Product Division is born. Plans to set up a nation-wide distribution chain.

1989

Fevicryl acrylic colours transform fabric and multi-surface painting market

1993

Pidilite makes a maiden public offering of equity shares

1995

Plants in Mumbai & Vapi acquire ISO 9001; plant at Mahad acquires ISO 9002

certification
1997

Fevicol ranked among the Top 15 Indian brands (by FE Brandwagon Year Book, 1997)

1999

"Ranipal", leading brand of optical whitener, acquired

2000

"M-Seal", leading brand of epoxy compounds, acquired

2000

Fevikwik fish commercial wins Golden ABBY for the best TV Commercial of the

Century in India
2000

Fevicol campaign wins Silver ABBY for the Campaign of the Century in India

2001

Dr. Fixit range of Construction Chemicals launched

2002

"Steelgrip", leading brand of PVC insulation tape in India, acquired

2002

At the 2002 Cannes Awards, considered to be the Oscar of the advertising world, Fevicol

'Bus' TV commercial wins a Silver in the category for Household Maintenance Products
2004

Acquires Roff

2006

Tristar Colman, Sargent Arts, Inc., Cyclo acquisition. Establishes R&D centre in

Singapore
2007

Acquires Pulvitec

2008

Acquires Holdtite

2009

Acquires Woodlok

23

8.12 Pidilites Awards Wardrobe


2004
Brand: Fevicol
Award: ABBY
Creative: TVC The Pretender.
Category: Best continuing campaign of the year Gold.
2003
Brand: Fevicol
Award: ABBY
Creative: Train
Category: Continuing campaign Silver
Campaign Silver
Film campaign Silver
Brand: Fevicol
Award: Young Guns
Creative: Well of Death
Category: Silver
2002
Brand: Fevicol
Award: Cannes
Creative: Bus
Category: Silver
Brand: Fevicol
Award: ABBY
Creative: Bus
Category: Best continuing campaign Silver
Campaign Gold
Brand: Fevicol
Award: Asia Pacific Ad Fest
Creative: Bus
Category: Bronze
Best Sound Track
Brand: Fevicol
Award: One Show
Creative: Press campaign-Seaface, dog, train - Inside
Category: Finalist
Brand: M-Seal
Award: ABBY
Creative: Will
24

Category: Single Ad Gold


Brand: M-Seal
Award: Asia Pacific Ad Fest
Creative: Will
Category: Bronze
Brand: M-Seal
Award: London International Advertising Awards
Creative: Will
Category: Finalist
2001
Brand: Fevicol
Award: ABBY
Creative: Shadow
Category: TV Single Gold
Campaign Silver
Press Single Gold
Brand: Fevicol
Award: Asia Pacific Ad Fest
Creative: Press - Train
Category: Bronze
Brand: Fevicol
Award: Asia Pacific Ad Fest
Creative: Van
Category: Gold
2000
Brand: Fevikwik
Award: ABBY
Creative: All Creative upto 2000
Category: TVC of the Century
Brand: Fevicol
Award: Big Bang, Clio, Cannes.
Creative: Press campaign Tyson, Bill Gates, George Michael
Category: Silver
Brand: Fevicol
Award: Big Bang
Creative: Cliff Hanger
Category: Gold
25

Brand: Fevicol
Award: Cannes
Creative: Cliff Hanger
Category: Bronze
Brand: Fevicol
Award: CAG
Creative: Cliff Hanger
Category: Big idea of the Year Gold
Brand: Fevicol
Award: ABBY
Creative: Cliff Hanger
Category: Best continuing campaign Silver
Brand: Fevicol
Award: Ad Club Calcutta
Creative: Cliff Hanger
Category: Best continuing campaign Gold
Brand: Fevicol
Award: ABBY
Creative: All creative upto 2000.
Category: Campaign of the century Silver
Brand: Fevicol
Award: Media the Asian Advertising Awards
Creative: Press- Birds
Category: Gold
Brand: Fevicol
Award: Media the Asian Advtg Awards, London Intl Advtg Awards, Young Guns.
Creative: Press Train, Birds & Van
Category: Finalist
Brand: Fevicol
Award: Media the Asian Advertising Awards.
Creative: Press Train
Category: Best of show finalist
1999
Brand: Fevikwik
Award: Showcase Indian Advertising
Creative: Fish
26

Category: Best Script


Brand: Fevikwik
Award: ABBY
Creative: Fish
Category: Gold
Brand: Fevikwik
Award: CAG
Creative: Fish
Category: Silver
Brand: Fevikwik
Award: RAPA
Creative: Fish
Category: Best TVC
Best Script
Brand: Fevikwik
Award: Big Bang
Creative: Fish
Category: Gold
Brand: Fevikwik
Award: Ad Club Calcutta
Creative: Fish
Category: Best TVC
Brand: Fevikwik
Award: AAAI
Creative: Fish
Category: Gold
1998
Brand: Fevicol
Award: First Asia Pacific Ad Fest, ABBY, Ad Club Calcutta.
Creative: Egg TVC
Category: Silver
Brand: Fevicol
Award: Seventh A&M
Creative: Egg TVC
Category: Campaign Gold
Single Ad Silver
Campaign Advertising Best.

27

Brand: Fevicol
Award: AAAI
Creative: Egg TVC
Category: Gold
Brand: Fevicol
Award: CAG
Creative: Egg TVC
Category: Silver
Brand: Fevicol
Award: Cresta International Advtg Festival, London Intl. Advtg Awards, Creativity 28
Creative: Egg TVC
Category: Finalist
Brand: Fevicol
Award: Showcase Indian Advertising
Creative: Egg TVC
Category: Best Script
8.13 Products Category
Consumer Products:
Art Material
Publications
Construction and Paint Chemicals
Adhesives and Sealants
Fabric Care
Car Care
Maintenance Products
Specialty industrial:
Industrial Adhesives
Industrial pigments
Industrial & Textile Resins
Lather Chemicals

28

Current Advertising Strategy of Fevicol

A man walks into a dairy with a bucket.

The buffalos are brought into position.

Meanwhile, a truck comes and parks itself outside the


dairy.

The milkmen get down to business of milking the buffalos.

But just as the trucks carrier is opened the animals stop


their milk.

In the midst of the panic and confusion the men look at the
truck.

They find the truck loaded with huge containers of


Fevicol.

The animals and their masters continuing staring at the


Fevicol drums.

AD Gallery of Fevicol
29

TV Ads:

2004

2003

2003

2002

2001

1998

1997

1996

Magazine/Print Ads:
30

31

9. Retrospect of Fevicol Advertising: A view over Advertising Strategies:


Ever since the luckless elephant was involved in a futile tug-of-war with that Fevicol-bonded
piece of wood, Fevicol advertising has revolved around the brand's core property of physical
strength and stickiness. However, over the past five years or so, brand communication has moved
away from pure end-user benefit - which, in the case of Fevicol, is a superior adhesive for
wooden furniture - and taken a more lateral approach to physical strength. So the last five
commercials for the brand (hen', cliffhanger', shadow', bus' and train journey') have been less
about wood and furniture, and more about the rub-off that Fevicol's stickiness has on people and
objects in its close proximity.
With the new television commercial, the wood and furniture is back in Fevicol advertising.
Dished out in patented Fevicol style humor, of course.
The ad opens on a bathing ghaat in Benares, where an assortment of pious souls are performing
their ablutions. The tranquility of the ghaat is shattered when a small boy runs down the steps,
sounding some sort of an alarm. His frenzied shouting results in a commotion, with the entire
waterfront stampeding towards a shuttered house in the middle of a busy market. People throng
the house, pushing and shoving to get a better view of the goings on.
Cut to the inside of the house where a young man is standing on a chair, tightening a noose. The
townsfolk holler at him through the barred windows, begging him not to do the unthinkable.
Their entreaties appear to fall on deaf ears. Clearly enjoying all the attention he is being lavished
with, the man calmly goes about giving the final touches to his dramatic exit.
He tightens the noose one last time. He then leans forward, cranes his neck and pulls the noose
around his head. He looks in the direction of the crowd, searching their faces for reactions.
Suddenly, he teeters. Cut to the chair that is supporting him. Unable to bear his weight, the chair
twists slowly then gives in. As the chair smashes, the man comes crashing down and falls amidst
the wreckage - stunned by the fall, but otherwise unhurt. Cut to an old man at one of the
windows. Fevicol nahi lagaayo toh saale ka kaam nahi hoyo,' he grunts, unable to hide the
disgust in his voice. Nahi hoyo,' the crowd commiserates, almost heartbroken with the way the
suicide bid came undone.
Just then, the rafter that the man had used to tie the noose to creaks then gives way. It plunges
down and crashes into the man lying beside the wrecked chair. Wide-eyed, he stares for a second,
then passes out. Fevicol nahi lagaayo toh saale ka kaam ho gayo,' the old man now remarks,
eyes twinkling. Ho gayo,' the onlookers agree and start filing away, having had their fill of the
day's quota of entertainment.
"For the last four or five years, we have done a lot of lateral advertising around Fevicol's
strength, but none of it focused on wood and furniture," agrees Abhijit Avasthi, creative director,
O&M. "Sometime this year, the client and agency team agreed that the physical strength of
Fevicol and its effect on furniture should be the strategic direction that we should explore for

32

Fevicol this time. The basic thought was to make the advertising more product centric, with a
direct reference of the brand's usage on wood and furniture."
According to the agency, the reason for bringing a reference to wood and furniture back into
brand communication is "keeping new consumers in mind". The rationale is that new consumers
are coming into the market, and for the brand to stay relevant to them, keeping the end benefit
and the product story alive is critical. However, the agency insists that while the objective was to
go back to the brand's basic properties, "we had to do it without losing the edge and the creative
values that the brand has acquired over time".
Which is why, Avasthi informs, the agency came out with many scripts for the commercial. The
focus was on physical strength, and the communication had to be built around wood and
furniture. Some of the scripts were strong on physical strength but didn't build a convincing story
around wood, so we had to drop them." Finally, this script (written by Piyush Pandey, group
president & national creative director, O&M) happened, and Avasthi says it went down well with
everyone, "as it was true to the communication objective, plus it had the typical Fevicol flavour".
An interesting aspect of the commercial is the manner in which Fevicol has been pitched. While
all previous communication for the brand showcased situations where things occurred because
Fevicol happened to be around, the situation in this one unfolds and reaches a climax only due to
the absence of Fevicol. It must be added that the background score - by Ehsaan and Zubin,
supported excellently with vocals by Chetan Shashital - is integral to the buildup in the ad.
Returning to the Fevicol suicide' ad, in the final analysis, it is the intrigue and irony in the ad captured wonderfully on film by Prasoon Pandey - that makes it watchable. The intrigue stems
from the reaction that the townspeople display, first when the suicide bid is foiled, then when the
man is knocked cold by the falling rafter. Despite appearing to implore the man not to commit
suicide, their disappointment at his failure, and subsequently, their matter-of-fact acceptance of
his (implied) death makes engaging viewing. "It's almost as if the man has been crying wolf all
the time, and the people have come to look at it only as a tamasha," says Avasthi.
And the irony? Ah, it lies in the way the man is first saved by no Fevicol'. Then gets done in by
it.

33

10. Data Collection


The data collection process is the predefined task that I have to undergo. The data collection
process starts right from the first day till the final day on the field. During the whole period the
respondents are interviewed and their behavior gets scanned. The main task is to analyze the
brand awareness and loyalty level of consumer towards the Fevicol Brand, which proportionally
reveals the effectiveness of brand in generating sales through advertising strategies adopted.
The survey process is done by measuring the consumer attitude by analyzing the post purchase
decision and the effect of advertising over to that. The response made by both industrial
consumer and home base consumer is given due importance in the research. The data collection
mode is the questionnaire and direct personal interview.
The data collected from the various efforts and sources are presented in tabular form and are
shown distinctively from the next page.

The elements considered are:


Respondents surveyed: 100.
Source of data: Primary.

34

Table No. 1:

Brand Awareness Level

Unaided Recall:

68% (asked through _ _ _ _ COL)

Aided Recall: 100% (asked through clues).

Recall Level at

%age

Clue 1 (Shadow)

Cumulative %
8

Clue 2 (Egg)

38

46

Clue 3 (Cliffhanger)

54

100

Table No. 2:

Brand Familiarity

Ad seen even once: 100%.


Table No. 3:

Most remembered Ad

Pakde Rehna Chhodna Nahi (Cliffhanger)


Moochwali
Fevicol ka majboot jodd hai tootta hi nahi (Tug-of-war).
Fevicol nahi lagaayo saale ko kaam na hoyo.
An unbreakable egg.
Buffaloes and milkman.
Netaji ki kursi.
Bus Ad (people gummed over that).

Table No. 4:

Rating Factor
Excellent

Rating of Script of Ad

No. of people agrees for Rating (in %)


56

Good

30

Cant Say

10
35

Not Good

No Effect

--

Table No. 5:

Advertising Promotes

Factors promoted
Product Knowledge

%age
62

Quality Knowledge

40

Extended Use

32

Table No. 6:

Trial Rate

Ever tried for a single time: 100%.

Table No. 7:

Advertisement effect over purchase decision

Effects
Agrees for having effect

54

Says no effect

24

Indecisive

22

Table No. 8:

Product Purchase Factor

Factors responsible
Price

In %
18

Quality

54

Brand Name

18
36

Availability

Table No. 9:

10

Cue for first purchase

In %

Factors responsible
Ad over TV

64

Heard from Others

20

Shopkeeper recommended

10

Others_ _ _ _ _ _ _ _

Table No. 10: Loyalty Graph

Regular Purchaser:
Second Time Purchase:
First Purchase:
Not Fix:

52%
2%
4%
42%

Table No. 11: Effect of Advertisement on Repurchase Decision

Promoted through Ad:


Unaware:
No Effect:

56%
28%
16%

Table No. 12: Factors Preferred during Fevicol purchase


Quality Offerings:
56%
Brand Name:
32%
Non-availability of other brand: 12%
Table No. 13: Competiting brands known
37

Araldite
Vamicol
Kitcol
Arpit
Prakash

11. Data Analysis


Brand Awareness Level:
Unaided Recall:

32%

Chunk Aware

Chunk Unaware
68%

During Unaided Recall:

68% of respondents are found to be aware of the brand.


Rest of the respondents is found to be unaware about the brand, unaided.

Aided Recall:

38

Chunk Aware

Chunk Unaware

100%

During Aided Recall:

100% of respondents are found to be aware of the brand.

Rating of Script of Ad:

60%
50%
40%
30%
20%
10%
0%
Excellent

Good

Can't Say

Not Good
Not have any effect

39

Inference:

The concept of Ad rated to be Excellent by 56% of respondents.


30% of respondents are agreeing that the Ad is Good.
10% of respondents remain indecisive.
Amazingly, not even a single respondent says that it doesnt have any effect.

Advertising Promotes:

Product Knowledge
Quality Knowledge

18%

12%

38%

10%
2%

20%

Knowledge of use or Extended use

40

Inference:

18% of the people reply that by seeing commercial they get Quality knowledge.
38% states that they get awareness about the product through ad.
20% says that they get to know about the Extended use of the product.
12% of the respondents say that through the ad they get the knowledge of about both Product
and Quality.
Only 2% of the respondents are agreeing that the commercial provide them knowledge of
both Product and Extended use of product.
There are 10% such respondents who reply that they get all of the above factors while
viewing ad.

Advertisement effect over purchase decision:

60%
50%
40%
30%

Effect of Ad on Purchase Decision

20%
10%
0%
Having Effect

No Effect

Can't Say

41

Inference:

54% of respondents admitted that their purchase decision got effected through advertisement.
While 24% feels that their decision is not derived through ad exposure.
22% of respondents are indecisive in this concern.

Product Purchase Factor:

Availability; 10%

Price; 18%

Brand Name; 18%

Quality; 54%

42

Inference:

Quality polls out to be the most affluent factor that drives prospects to purchase.
Price and Band Name both are ranked as second most influential factor that people generally
considered while purchasing a product
Availability of the brand also plays a crucial role as it has 10% respondents in its favor.

Cue for first purchase of Fevicol:

70%
60%
50%
40%
30%
20%
10%
0%
Ad over TV

Heard from others


Shopkeeper Recomm endationOther Factors

43

Inference:

The very first purchase factor is due to Ad seen over TV, 64% of respondents are agreeing on
this statement.
20% of respondents made first purchase due to effectiveness of Mouth publicity, i.e. they
have heard from others.
Brand promotional measures also play role in first purchase as 10% of the respondents made
first purchase by the influence of shopkeeper.
6% of the respondents have different opinions that make them to purchase it for the first time.

Loyalty Graph for Fevicol:

44

60%
50%
40%
30%
20%
10%
0%
Regular PurchaserSecond Purchase First Purchase

Not Fix

Inference:

52% of the respondents are regular purchaser of Fevicol, i.e., the market share of Fevicol is
nearly half of the total market.
Around 6% are the people who are at primary stage as they are either using it for the first
time or as second purchase.
The market consists of nearly 42% of such respondents who like to switch on different
brands they are not brand loyal.

Effect of Advertisement on Repurchase Decision:

45

60%
50%
40%
30%
20%
10%
0%
Positively Promoted

Seems no Effect

Can't Judge

Inference:

56% of respondents feel that Ad helps them to conform their decision and also promote to
repurchase the same brand.
While 16% of the respondents didnt see any effect of Ad over their repurchase decision of
brand, they say its purely their own intuition to re-buy a product.
Rests of the respondents are unable to analyze the cue that held responsible for repurchase.

Factors Preferred during Fevicol purchase:

46

60%
50%
40%
30%
20%
10%
0%
Quality Product

Brand Name

Non-Availability of Other Product

Inference:
Respondents like to purchase Fevicol due to:

56% of the respondents prefer to purchase due to its quality offering.


While 32% of the respondents looks it as a brand name purchase.
And the rest 12% looks for it only if other product cheaper than it is not available.

12. Findings
47

High recall value of Fevicol reflects that the advertising expense made by organization
has well covered human mind space.

Excellent Advertising strategies of Agency (O & M, for Fevicol) have made the brand as
most recognizable brand while measuring unaidedly.

In Research we have found that there exist a cause-and-effect relationship between sales
and advertisement, as 54% respondents make their purchase decisions on the basis of
advertisements.

Apart from advertising heavily, quality remains the key concern for an organization to
focus primarily.

Whatever the brand may be the Quality is the prime factor for most purchases.

Advertising helps at large extent in influencing the prospect for generating first purchase
of product.

Continuously reminding of the brand through Ad helps the promoter to induce the
repurchase, and also it leads to conform by consumer.

In Ads of Fevicol the natural activities are linked with unnatural sequences, that lead to
have word-of-mouth-marketing of product and a remarkable amount of sales is generated
through this.

48

13. Recommendations

The market share is reducing due to the existence of large number of local or regional
players; efforts are to be made in developing low cost product.

More emphasis should be done on consumer interactive programs so as the reach of


product could be extended.

Major thrust should be made to enforce the Product-Quality Awareness programs at the
rural areas where mainly local players are operating.

Having mastered advertising as evidenced by Fevicol, Pidilite Industries Ltd. should


create a power-communication programme inclusive of the following elements:
o Advertisement on local cable channels, to begin with, is a cost-effective medium
to hit the towns if not the Metro.
o In-shop Demonstrations to influence, apart from making aware, the customers at
the point of purchase.
o Wall Painting in interior areas and Signboards at dealer outlets shall serve dual
purpose: create awareness and increase dealer satisfaction.

The product mix of Pidilite Industries Ltd. is a mammoth in all respects - width, length
and depth - but the same cannot be said of the Paints & Food Division under PIL.
Expansion of the product portfolio on all counts has emerged as a common refrain across
categories.

The basic problem ahead is that people are not aware of the large portfolio of Pidilite.
Hence provisions are to be made to make public communicated about the portfolio.

49

14. SWOT ANALYSIS


Strengths:

Wide range of products.


Brand recognition.
Brand Standardized products.
Capable of surviving in Long run.
Products are familiar to consumer.
Good efforts for Research & Development facilities.
Employees beneficiary plans that attract potential employees.
Result oriented products.
Financially sound.
Good Diversified Management.
Background of successful mergers and acquisitions.
Goodwill of last 45+ years.
Nation-wide presence.
Good advertising and promotional strategies.

Weakness:

Presence of lower priced products makes market weaker in some areas.


Nationwide same strategy.
No endorser of brand.
Pidilite as a whole depended a lot over Fevicol, while in all it has 40 brands.
Advertisements are now in remembering phase, which means it has to be now emphasized
over new product developments.

50

Opportunities:

The markets of rural areas are somewhat remains potentially untouched.


Now the diversified strategies should be adopted, as it has been long in adhesives.
No established competitor is the potential advantage.
The niche of the market is the rural area and the plenty of opportunities are lying there.
Forming of Free-Trade Area with China can led to Export opportunities and thus the
market diversification could be adopted. This will also help as the product now is in
maturity stage.

Threats:

Due to Industrial policies and easy avail of finance the competition can become tougher
in coming years.
Due to the presence of the low priced firms the competition is proving to be tougher.
Aggressive advertising and promotional efforts of competitors are making a shift in the
market share of the company.
Being the economy opened by govt. of India their lies the continuous threat from the
foreign players.
Free Trade Area with China, could open up the fight with a major technology intensive
country and hence to compete with that more efforts to be make over R & D.

51

15. References
In this dissertation, while finalizing and for analyzing quality problem in details the following
Books, Magazines/Journals and Web Sites have been referred. The all material detailed below
provides effective help and a guiding layout while designing this text report.
Books:
Kotler and Gary Armstrong (2011),
Marketing: An Introduction(New Delhi: Prentice Hall of India)
Boyd, Harper W. and Ralph Westfall (1996),
Marketing Research (U.S.A.: Richard D. Irwin, Inc.)
Kothari, C. R. (2008),
Research Methodology (Delhi: Global Business Press)
Batra, Rajeev and John G. Myers (2002),
Advertising Management (India: Thomson Press (I) Ltd.)
Gupta, S. L. and V. V. Ratna (2004)
Advertising and Sales Promotion Management (Delhi: Sultan Chand & Sons)
Gupta, S. P. (1996),
Statistical Method (New Delhi: Sultan Chand & Sons.)
Websites:
www.pidilite.com
www.agencyfaqs.com
www.tvadsindx.com
www.indiainfoline.com
www.businesstoday.com
www.coursework.info
www.thehindubusinessline.com
www.domain-b.com
www.brand-reporter.com

52

16. Questionnaire
Q. Could you complete this brand name: _ _ _ _ COL
Q. Have you ever seen the above band name in advertisement?
Yes( )

No( )

Q. What plot do you remember associated with this brand name?


_______________________________________________________________
_______________________________________________________________
_______________________________________________________________.
Q. Could you name the brand advertisement showing:
Clue 1. A shadow affixed to shutter of a shop and the person moves ahead without shadow. Over
that shutter the brand name was written.
Clue 2. An unbreakable egg at restaurant.
Clue 3. A movie in a TV set: a person hanging through a bridge, a girl having his hand in her
hand and suddenly after an event he fells down. But not in same movie running over to other TV
sets. {Words from the same movie Pakde Rehna Choddna Nahi.}
______________________________________________.
Q. How would you rate the commercial on the factor of Script of Ad?
Excellent.
Good.
Cant say.
Not good.
Not have any effect.
Q. While seeing the commercial you get
Product Knowledge.
Quality Knowledge.
Knowledge of use or extended use.
Q. Have you ever tested or tried this product?
Yes( )

No( )

Q. Does Advertisement made any effect on your purchasing decision of brand?


Yes( )

No( )

Cant say( )

53

Q. Your preference for product purchase is usually at


Price of the product
Quality of the product
Brand name of the product
Availability of any brand / any product
Other reason ____________________.
Q. You have made first bought of brand due to
Its Ad shown over TV
Heard from others
Recommended by shopkeeper
Other factor ______________.
Q. For how long time you are using this brand?
First Purchase.
Second Purchase.
Regular Purchaser.
Not Fix.
Q. Does Advertisement promote your repurchase decision of brand?
o Positively
o Cant say
o No Effect
Q. You prefer to go with this brand due to
Quality Offering
Brand Name
Non Availability of other brand
Other reason ________________.
Q. Could you name any competitive brand, whose commercial you have seen or purchased
product from?
________________________________________________.

Thank you for your cooperation and providing useful information to us.
Name: ___________________________________.
Age: ____________________________________.
Occupation: ______________________________.
Address: _________________________________
54

Contact No.: ______________________________.

17. Basic Terminologies in Advertising Industry


Unless expressly stated otherwise, the following terms shall have the following meanings:

"Advertising Contract" means the contract formed between client and agency on the
Commencement Date, the terms and conditions of which are set out herein and in the
Application Form.
"Application Form" means the form submitted by client to agency to place an order for the
Advertising Services to be provided.
"Advertising Charge" means the charge specified in the Application Form for the provision
of the Advertising Services for one Service Period.
"Commencement Date" means the date of receipt of payment of the Advertising Charge.
"Contact Center" means the facility operated by agency for receiving communications from
clients requiring services in country of origin.
"Content" means clients business logo and/or picture and sales message to be advertised on
the Websites, and other means of commercial operations as Radio, TV etc.
"Design" means the design created by agency as a result of her provision of the Design
Services.
"Design Charge" means the charge specified in the Application Form for agencys provisions
of the Design Services.
"Design Information" means all information which an agency require relating to clients
business and desired advertising message in order to perform the Design Services, as such
information is specified in the Application Form.
"Design Services" means the optional design services offered by agency, as described in the
Application Form.
"Intellectual Property Rights" means all existing and future copyright, design rights (whether
registered or unregistered), database rights, patents, trademarks (whether registered or
unregistered), semi-conductor topography rights, plant varieties rights, internet
rights/domains names, know how, confidential information and any and all applications for
any of the foregoing.
"Service Period" means renewable periods of 30 days, commencing either on the
Commencement Date or, where Design Services are to be provided, on the date on which the
Design Services are completed by agency and renewable at intervals of 30 days thereafter.

55

18. List of Abbreviations used

Ad/Ads:

Advertisement/Advertisements

PIL:

Pidilite Industries Limited

FMCG:

Fast Moving Consumer Goods

No.:

Number

mn / bn:

million / billion

pa:

per annum

FY:

Fiscal Year

org.:

organization

wef:

with effect from

R&D:

Research & Development

ISO:

International Standard Organization

IT:

Information Technology

TVC:

Television Commercial

O&M:

Ogilvy & Mather

%age:

Percentage

govt.:

government

56