FEVICOL THE ICONIC

BOND CASE STUDY

Team 13 – Fevicol
The Iconic Bond
•Darshan B 08
•Gadilinga 10
•Farheen 43
 Step 1 - Identification of facts

Founding and Development:

• Fevicol was founded in 1954 by B. K. Parekh, the Founder Chairman of Pidilite Industries.
• It originated as a synthetic adhesive for carpenters, aiming to replace traditional glues made of animal fat or starch.

Brand Recognition:
• The brand put considerable effort into conducting trials and convincing carpenters to adopt Fevicol, challenging established practices.
• The iconic Fevicol logo features two elephants facing opposite directions, symbolizing strength and adhesion.

Marketing Strategies:
• To promote the interests of carpenters, Fevicol launched initiatives like Fevicraft, a design book, and later the Fevicol Furniture Book.
• The company established the Fevicol Champions’ Club (FCC) to create a community among carpenters, fostering personal and
professional growth.

Market Overview:
• Pidilite Industries, the company behind Fevicol, was founded by B. K. Parekh in 1959.
• Fevicol falls under the adhesives and sealants division of Pidilite Industries, contributing significantly to the company's revenue.

Adhesive Market in India:

• The Indian adhesive market is estimated to be around Rs. 70 billion per annum.
• Pidilite, Henkel Technologies, and Jubilant Agri and Consumer Products Limited are major players in the adhesive market.
Competition - New Entrants:
• Asian Paints entered the adhesive market with TruGrip Ultra, directly competing with Fevicol.
• Henkel Adhesive Technologies partnered with Asian Paints to distribute their adhesive products in the retail market.

Product Offerings and Innovation:

• Fevicol extended its product line with offerings like Fevicol Marine, Fevicol Speedx, and Fevicol SH Xtra to cater to different
needs.
• Fevicol Marine, launched in 2010, provided superior bonding strength and waterproofing.

Packaging Redesign:
• In 2002, Fevicol underwent a significant packaging redesign to enhance vibrancy and functionality.
• The new design included a smarter and sleeker container with a stronger handle.

Market Challenges:
• Fevicol faced challenges from unbranded synthetic adhesives, particularly from price-sensitive customers.
• Some customers claimed to use Fevicol for credibility even when they did not, emphasizing the brand's strong association
with quality.

Global Presence:
• Pidilite Industries has a global presence in 14 countries, with manufacturing facilities in Bangladesh and Egypt.
• The company has established offices/subsidiaries in various countries, facilitating product development and brand extensions.
Integrated Marketing Communications:
• Fevicol's advertising campaigns, including the famous "Dum lagake haisha," have been humorous and
engaging.
• The brand utilized various media channels, including film, print, and innovative campaigns, to emphasize the
strength and reliability of its adhesives.

Pricing and Distribution:

• Fevicol adopts premium pricing to align with its product image.
• The distribution network is robust, reaching plywood retailers across India, and a specialized "Rurban" division
focuses on semi-urban and rural areas.

Customer Education and Relationship Building:

• Fevicol prioritizes customer education through demonstrations and direct interactions with carpenters.
• The Fevicol Champions’ Club (FCC) serves as a platform for carpenters to network, learn, and contribute to
social causes.

Recent Developments and Challenges:

• Mr. Thakkar, part of Fevicol's marketing team, is preparing for the next year's marketing plans amid rumors of
a big paint company entering the adhesives market.
 Step 2 - List of problems or challenges
Addressing
Increasing Rural and Carpenter
Competition: Price Semi-Urban Engagement:
• Fevicol faces Sensitivity of Markets: • Engaging with
stiff competition Customers: Coping with • While Fevicol the carpenter
from new • Fevicol faces Price Wars: has a strong community
regional brands challenges from • Intense presence in through
in the adhesive price-sensitive competition can urban areas, initiatives like
segment. customers who lead to price addressing the the Fevicol
• Competitors are may choose wars, and needs and Champions’
offering flexible unbranded Fevicol needs to preferences of Club requires
credit terms and synthetic navigate these customers in ongoing effort
promotions, adhesives over challenges while rural and semi- to ensure
potentially Fevicol's maintaining its urban markets sustained
leading to a loss premium-priced premium presents a support and
of market share. products. positioning. challenge. loyalty.

Credit Retaining Balancing Evolving Global Market

Extension by Customer Tradition and Marketing Dynamics:
Competitors: Loyalty: Innovation: Strategies: • Pidilite
• The Vice • Maintaining • Fevicol has a • With changes in Industries
President of customer loyalty long history and consumer operates in a
Marketing, Mr. in the face of a traditional behavior and global market,
Dinesh Thakkar, increasing image. the advent of and global
is concerned competition is a Balancing this digital media, economic
about challenge for tradition with Fevicol needs to fluctuations or
competitors Fevicol. the need for continually geopolitical
extending credit • The brand needs innovation and evolve its events may
to distributors. to ensure that staying relevant marketing impact its
• This strategy by its value in a dynamic strategies to international
competitors proposition and market is a reach and business.
poses a quality continue challenge. engage with its
challenge to to resonate with target audience.
Fevicol's market customers.
position.
 Step 3 - Connect to management concepts ( problems )

Increasing Competition: Credit Extension by Competitors:

• Management Concept: Strategic Management • Management Concept: Financial Management
• Connection: Fevicol needs to employ strategic management • Connection: The finance team needs to assess the impact of
practices to analyze the competitive landscape, identify competitors' credit extension on Fevicol's cash flow and financial
opportunities, and formulate strategies to maintain a competitive health. Effective financial management practices are crucial to
advantage. This may involve market research, product navigating credit-related challenges and maintaining a stable
differentiation, and exploring new markets. financial position.

Price Sensitivity of Customers: Retaining Customer Loyalty:

• Management Concept: Marketing Management • Management Concept: Customer Relationship Management
• Connection: Marketing strategies, including pricing strategies and (CRM)
communication, play a vital role in addressing price sensitivity. • Connection: CRM practices are essential for building and
Marketing management involves understanding customer behavior, maintaining strong relationships with customers. This includes
market segmentation, and developing strategies to create value that personalized communication, addressing customer concerns, and
justifies the premium pricing of Fevicol products. ensuring that the overall customer experience with Fevicol is
positive, fostering loyalty.

Adapting to Changing Customer Preferences:

• Management Concept: Innovation Management
• Connection: Adapting to changing customer preferences requires
an innovative approach to product development and marketing.
Innovation management involves fostering a culture of innovation
within the organization and systematically introducing new and
improved products based on customer insights.
 Step 4 - Defining the Main Problem for Fevicol:

• Diversified Product Portfolio: JACPL offers a wide range of products, including

adhesives, wood finishes, wood preservatives, synthetic latex, and agri products.
• Established Market Presence: As a wholly-owned subsidiary of Jubilant Industries
Limited, JACPL has an established market presence with over 600 distributors and
15,000 retailers in India.
• Market Share: JACPL commands a 10% market share, indicating a significant
portion of the adhesive market.
Competition from Existing • Competition from New Entrants (Asian Paints):
Players (JACPL - Jubilant • Innovative Product: Asian Paints introduces TruGrip Ultra, a water-based synthetic
Agri and Consumer resin adhesive designed for bonding various wood-based substrates.
Products Limited): • Strategic Distribution Network: Asian Paints has a distribution network of 36,000
hardware shops. The distribution agreement with Henkel Adhesive Technologies
enhances their retail presence.
• Main Problem for Fevicol:
• Intense Competition: Fevicol faces intense competition from both existing players
with diversified product portfolios and established market presence (JACPL) and
new entrants with innovative products and strategic distribution networks (Asian
Paints).
• Implications:
• Fevicol needs a robust strategy to differentiate its products, expand its market
reach, and compete effectively with both existing and new players.
 Step 5 Analyzing The Problem Using Step 3

Changing Customer
Intense Competition: Price Wars:
Preferences:
• Management Concept: • Management Concept: • Management Concept:
Competitive Analysis Pricing Strategy Market Research and
• Analysis: Fevicol needs • Analysis: Effective Innovation
to conduct a thorough pricing strategies, such • Analysis: Continuous
analysis of the as value-based pricing market research is
competitive landscape, or differentiation, need essential to understand
understanding the to be employed. The shifting customer
strengths and management should preferences. The
weaknesses of focus on delivering management should
competitors. Strategic unique value to invest in research and
planning and customers that justifies development to innovate
differentiation are the price and minimizes and introduce products
crucial to staying ahead. the impact of price wars. that align with changing
trends.
 Step - 6 Alternatives Or Solutions

Intense Competition:
• Solution 1: Differentiation Strategy
• Develop unique features or formulations for Fevicol products that distinguish them from competitors. Emphasize these differentiators in marketing
campaigns to create a strong brand identity.
• Solution 2: Collaborative Partnerships
• Explore partnerships with other companies for joint ventures or collaborations. This can lead to synergies that enhance Fevicol's competitive position in the
market.

Price Wars:
• Solution 1: Value-Based Pricing
• Instead of engaging in price wars, focus on providing additional value to customers. Highlight the quality, durability, or other unique aspects of Fevicol
products that justify a premium price.
• Solution 2: Bundling Strategy
• Create product bundles or packages that offer better value for money. This can help maintain revenue while providing customers with a perceived benefit.

Changing Customer Preferences:

• Solution 1: Continuous Market Research
• Invest in ongoing market research to stay attuned to evolving customer preferences. Use this information to adapt existing products or introduce new ones
that align with market trends.
• Solution 2: Customer Engagement Programs
• Establish programs to engage directly with customers, gathering feedback and insights. This can help Fevicol anticipate changes in preferences and adjust its
product offerings accordingly.
 Step -7 Recommendations based on step 6

Customer
Continuous Market Localized Product Comprehensive
Bundling Strategy: Engagement Strategic Alliances:
Research: Adaptation: Market Research:
Programs:
• Recommendation: • Recommendation: • Recommendation: • Recommendation: • Recommendation: • Recommendation:
• Introduce product • Establish a • Implement • Tailor products to • Forge strategic • Prioritize
bundles that offer dedicated market customer meet the specific alliances with local comprehensive
added value to research team to engagement requirements and distributors or market research
customers. These continuously programs, preferences of manufacturers in before entering
bundles should be monitor and including surveys, different regional target markets. global markets.
carefully curated analyze industry feedback sessions, markets. Conduct Leverage their Understand the
to meet specific trends, customer and loyalty thorough market expertise to cultural, economic,
customer needs preferences, and programs. Actively research in each navigate regulatory and legal factors
and preferences. competitor listen to customer region to identify complexities and that may impact
This approach can activities. Use this insights to unique needs and cultural nuances. business
help maintain information to understand their adjust product Establish strong operations. Tailor
revenue while adapt existing evolving needs and formulations relationships to marketing
providing a products and expectations. This accordingly. facilitate seamless strategies to
positive customer develop new ones direct engagement market entry and resonate with
experience. that align with can guide product expansion. diverse
evolving market development and international
demands. marketing efforts. audiences.
 Step – 8 conclusion

In conclusion, Fevicol faces significant challenges in the highly

competitive adhesive industry, marked by changing consumer
preferences, global market dynamics, and technological
advancements. The identified problems, such as the need for
innovation, global expansion, and adaptation to diverse market
demands, require strategic management and creative solutions.