Post on 05-Apr-2018
7/31/2019 Brand Bigger Than the Company - Pidilite
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PIDILITEINDUSTRIESLTD.
BRANDBIGGERTHANTHE COMPANY?
Group 3
11P119 - Vignesh K
11P156 - Rahul Pinnamaneni
11P165 - Shafali Subramanian
11P240 - Vivek Mathew Abraham
7/31/2019 Brand Bigger Than the Company - Pidilite
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7/31/2019 Brand Bigger Than the Company - Pidilite
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PIL PRODUCTOFFERINGS
PIL consumer and bazaar products account for 65% of therevenues with PIL
Leading brands include Fevicol, Fevikwik, pidifix, fevicryl etc.
Later expanded into glues, tapes, M-Seal and Dr. Fixit
Fevicol contributes 50% of companys revenues Average growth rate over the last 10 years 13.13% for sales
and 19.35% for profits
7/31/2019 Brand Bigger Than the Company - Pidilite
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POSSIBLEISSUES / OPPORTUNITIES
Pidilite extending the brand Fevicol from a complete
carpenters product to an all-purpose glue
Pidilite also trying to diversify its product portfolio by
creation of strong brands and by reducing
dependence on Fevicol sales for profits (putting all
eggs in one basket??)
Company moving from single brand to multi-
branded establishment
7/31/2019 Brand Bigger Than the Company - Pidilite
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HOWSTRONGIS FEVICOL
Oldest Brand
High Brand recall
Propelled by imaginative ad campaigns
Fevicol Brand Extension
Launch of fevicraft a bi-monthly magazine
showcasing furniture designs
Company focusing on core marketing issues whichin turn build the brand
Constant advertising through print and TV media
7/31/2019 Brand Bigger Than the Company - Pidilite
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IMPLICATIONSOF BRANDEXTENSIONFEVI
1. Easy acceptance of new product,resulting in increased marketcoverage
2. Ideal launching pad for the newproduct thanks to good expectationsfrom users loyal to Fevi
3. Fevi brand extension avoids costof developing a new brand
1. Can lead to cannibalization, e.g.Fevicol is a competitor to many other
products like Fevikwik, fevigum2. If the new product fails, it can hurtthe brand image of the parent brandalso
3. Lack of brand identification with anyone category may weaken the brand
7/31/2019 Brand Bigger Than the Company - Pidilite
7/10
BRANDFEVI BIGGERTHANPIDILITE
Strengthening brand Fevi can lead to the brand
being more recognized than the company itself
It is also leading to cannibalization of sales because
Fevicol is competing with other brands of the
company
The company, therefore is now waking up and
trying to diversify its product portfolio by creation of
strong brands and reducing its high dependence on
Fevicol for profits
7/31/2019 Brand Bigger Than the Company - Pidilite
8/10
IN INDIANCONTEXT
Maruti 800
Ambassador
Dairy Milk
Kingfisher(Beer, airlines, swimsuit calendars)
7/31/2019 Brand Bigger Than the Company - Pidilite
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LEARNINGS
Building strong brands initially always aids in expansion
and extension in the future
Investing in strong brands helps organization survive in
the long run
Central Brands, around which companies build theirbusiness model and capabilities, have pros and cons
but definitely more pros
Extreme care should be taken while milking any brand
(over-dilution and extensions in unrelated areas/ areasnot perceived as related by loyal customers can lead to
repercussions. E.g. after the death of Steve Jobs, many
thought Apple would come with commemorative editions
but that wasnt what Apple was all about)
7/31/2019 Brand Bigger Than the Company - Pidilite
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