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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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

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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

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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

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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)

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