PILLAI’S INSTITUTE OF MANAGEMENT STUDIES & RESEARCHSector 16, New Panvel East, Navi Mumbai - 410206

MEASURING EFFECTIVENESS OF FEVICOL ADVERTISEMENTS

(Submitted in Partial Fulfillment of the Award of the Degree ofMaster in Management Studies of University of Mumbai)

Submitted by

SAYED IMRAN ALAMGIR

Roll No. 171

UNDER THE GUIDANCE OF

PROF. ANJALI TAIDE

MMS 2011-13

DECLARATION

I, Mr. Sayed Imran Alamgir of Pillai’s Institute of Management Studies and Research hereby declare that the Project Work titled “Measuring Effectiveness of Fevicol Advertisements” submitted as part of my curriculum of MMS degree is the original work done by me the project has not formed the basis for an award of any degree, associate ship, fellowship or any similar titles.

Signature of the student

Sayed Imran Alamgir

Place:

Date:

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(Submitted in Partial Fulfillment of the Award of the Degree ofMaster in Management Studies of University of Mumbai)

Submitted by

SAYED IMRAN ALAMGIR

Roll No. 171

UNDER THE GUIDANCE OF

PROF. ANJALI TAIDE

MMS 2011-13

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CERTIFICATE

This is to certify that the Project Work titled “Measuring Effectiveness of Fevicol Advertisements” is a bonafide work of Mr. Sayed Imran Alamgir carried out in partial fulfillment for the award of degree of MMS under my guidance. This project work is original and not submitted earlier for the award of any degree/ diploma of this or any other University/ Institution.

Prof. Anjali Taide Director(Project Guide)

Place:

Date:

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ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them.

First of all, I wish to express my indebtedness to Prof. Anjali Taide, Pillai’s Institute of Management Studies & Research, for her valuable suggestions and guidance throughout the project.

I would also wish to express my warmest thankfulness to Mr. Jatin Bhatt, Marketing Manager, Consumer Products Division (Fevicol), Pidilite, who had been my project guide for the two months’ internship period at Pidilite. I would also like to thank Mr. Sushil Luniya, President, Construction Chemicals Division, Pidilite, for his guidance, support and some very special advices. I also thank Dr. P.K.Shukla, Head – HR & Systems, Pidilite and Ms. Gargy Kapoor, Sr. Human Resource Executive, Pidilite, for giving me an opportunity to set foot in the Pidilite premises once again after a gap of more than seven years.

I would like to express my gratitude towards my family & members of Pidilite for their kind co-operation and encouragement which help me in completion of this project.

I would like to express my special gratitude and thanks to industry persons for giving me such attention and time.

My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me.

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"The creative strategy of the brand has always been to rise above the physical bonding of tables and chairs and bond with the consumers by taking a strategy that is metaphorical"

Piyush Pandey, Group President and National Creative Director, O&M

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DIRECTOR’S DESK

I am pleased to introduce to you Pidilite Industries and its products.

Since its inception in 1959, Pidilite has been a pioneer and market leader in Craftsmen Products, DIY (Do-it-Yourself) Products and Industrial Specialty Chemicals in India.

Pidilite is amongst the leading companies of India and its brand "Fevicol, Steelgrip, Acron, Dr. Fixit, Fevitite and M-seal" are amongst the most

trusted brands of India.

Product range of Pidilite includes Adhesives and Sealants, Construction and Paint Chemicals, Art Materials, Industrial and Textile resins and Organic Pigments and Preparations. Pidilite products conform to global quality standards and are exported to developing and developed countries all over the world.

The driving force behind our success is the consistent teamwork 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 stakeholders.

I hope your association with Pidilite & Parekh Group of Companies is fruitful and satisfying.

B.K. Parekh

(Chairman)

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TABLE OF CONTENTS

TOPICS PAGE NO.1. Introduction…………………………………………………………………..

1.1 Impact of Effective Advertisement on Consumer Attitude…………

1.2 Need for Advertisement…………………………………………….1.3 Essentials of Effective Advertisement……………………………...1.4 Situations favoring advertisement…………………………………..1.5 An Ideal Consumer Feeling………………………………………...

2. Effective Advertisement 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……………………………………………………………...11. Data Analysis………………………………………………………………..12. Findings……………………………………………………………………...13. Recommendations…………………………………………………………...14. SWOT Analysis……………………………………………………………..15. References…………………………………………………………………...16. Questionnaire………………………………………………………………..17. Basic Terminologies in Advertising Industry……………………………….

888910101114141515151516161617171718232324242525252627272829303438404453545557586061

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18. List of Abbreviations used…………………………………………………..

1. Introduction

1.1 Impact of Effective Advertisement on Consumer Attitude

Advertisement, 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 Advertisement

Advertisement 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:

Advertising 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.

Advertising 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.

Advertising, 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.

Advertising can help in improving the economies of developing countries. Advertising stimulates increases in production and consequently generates more employment. It can help stabilize prices and thus lead to wider distribution and greater availability of goods and services.

Advertising is an essential and integral to the marketing system. It is sometimes maintained that the marketing system is nothing but the consequent of a country’s social and economic growth. The fact is that advertising is the main key tool used to a country’s growth.

The basic concept based on ‘Telling and Selling’. One of the 5 M’s of an advertising programme is Measurement. It denotes how the results should be evaluated. Measurement can at best be

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done around an audience/ customer’s 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 Advertisement

The measure of any advertisement 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 Action-buying), any effective advertisement should draw the attention of the customer. It is a mistake to 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

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closely related. In fact, an advertisement is better read upon repeating, certain repetition lowers advertisement cost.

1.4 Situations Favoring Advertisement

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 Effective Advertisement

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. 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.

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2. Effective Advertisement 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 advertisement’s 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 advertisement’s 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 vice-versa.

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A Model of the Feeling – Response to Advertisement

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.

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Increases ratio of positive to negative thoughts

Raises product attribute valuation

Decreases amount of total thinking

Increase Evaluation of Advertisement characteristics

Increases Attitude towards the Advertisement

Advertising -EvokedPositiveAffectiveResponse

Transform use experienceIncrease positive product attribute attitude

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 viewer’s 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.

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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.

To measure brand recognition.

To measure attitude change from previous purchase behavior to present purchase behavior.

To test the brand loyalty.

To justify company’s high advertising expenditures

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

develop the relative hypothesis in accord with.

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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).

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

5.6 Period of Study

The study is covered under the period of May-June 2012.

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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.

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.

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7. Pidilite Industries: Fevicol Success Stories

Introduction

In 2005, the Rs 400 crore- Pidilite Industries, maker of Fevicol, recorded a 23 % growth. The company’s 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, Pidilite’s 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 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.

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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.

Pidilite’s 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 ofIndia.

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 smallcompanies in the unorganized sector and multinationals. German-based MNC Hoechst Dyes andChemicals 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’. Pidilite’s sales force directly approached schools, hobby classes and individual teachers to promote the product. Housewives were offered fabric painting courses using Fevicryl.

Fevicol’s 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.

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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, Pidilite’s advertising campaign changed from bonding of furniture to bondingwith 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). Fevicol’s award winning commercials were shown and viewers were asked to take part in the Fevicol contest. The idea was to increase Fevicol’s brand recall. In 2004, O&M again won the Abby Award for Fevicol’s 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 Organics’s Vamicol, Kitply’s Kitkol, Century Plywood’s Centurycol and Ciba Speciality’s Araldite.

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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 continuousfeedback 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 Pidilte’s 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.

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

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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 company’s 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 Pidilite’s 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.

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8. Company Profile

8.1 Company Information

Board of DirectorsB K Parekh ChairmanS K Parekh Vice ChairmanM B Parekh Managing DirectorN K Parekh Joint Managing DirectorR M Gandhi DirectorN J Jhaveri DirectorBansi S Mehta DirectorRanjan Kapur DirectorYash Mahajan DirectorBharat Puri DirectorD Bhattacharya DirectorSanjeev Aga Director (wef 29.07.2011)A B Parekh Wholetime DirectorA N Parekh Wholetime DirectorJ L Shah Director (upto 08.11.2011)R Sreeram Wholetime Director (wef 08.11.2011)

Corporate OfficeRamkrishna Mandir RoadOff Mathuradas Vasanji RoadAndheri (E), Mumbai 400 059

Registered OfficeRegent Chambers, 7th FloorJamnalal Bajaj Marg208, Nariman PointMumbai 400 021

Registrar & Transfer AgentTSR Darashaw Limited6-10, Haji Moosa Patrawala Ind. Estate20, Dr. E Moses Road, MahalaxmiMumbai 400 011

Company SecretarySavithri Parekh

Solicitors & AdvocatesWadia Ghandy & Co

AuditorsHaribhakti & Co

Internal AuditorsMahajan & Aibara

BankersIndian Overseas BankCorporation BankICICI BankThe Royal Bank of Scotland N.V.

`

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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. Pidilite’s team of scientists at its six R & D laboratories has developed the entire range of the Company’s 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 Company’s 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.

8.4 Future Prospects

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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.

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.

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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.

Other Facilities:

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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

ObjectiveIn 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.

8.10 P.I.L. Environment

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CultureThe dictionary defines culture as “the act of developing intellectual and moral faculties, especially through education”. Every organisation has its own unique culture. Most organisations don’t 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".

AttitudeIt 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.

InteractionOne 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.

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8.11 Milestones @ P.I.L.

Year Achievements

1959 Plants commissioned for Acron brand of pigment emulsion

1965 FEVICOL, established as carpenter’s 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

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8.12 Pidilite’s Awards Wardrobe

2004Brand: FevicolAward: ABBYCreative: TVC – The Pretender.Category: Best continuing campaign of the year – Gold.

2003Brand: FevicolAward: ABBYCreative: TrainCategory: Continuing campaign – Silver

Campaign – Silver Film campaign – Silver

Brand: FevicolAward: Young GunsCreative: Well of DeathCategory: Silver

2002Brand: FevicolAward: CannesCreative: BusCategory: Silver

Brand: FevicolAward: ABBYCreative: BusCategory: Best continuing campaign – Silver

Campaign – GoldBrand: FevicolAward: Asia Pacific Ad FestCreative: BusCategory: Bronze

Best Sound TrackBrand: FevicolAward: One ShowCreative: Press campaign-Seaface, dog, train - InsideCategory: Finalist

Brand: M-SealAward: ABBYCreative: Will

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Category: Single Ad Gold

Brand: M-SealAward: Asia Pacific Ad FestCreative: WillCategory: Bronze

Brand: M-SealAward: London International Advertising AwardsCreative: WillCategory: Finalist

2001Brand: FevicolAward: ABBYCreative: ShadowCategory: TV Single Gold

Campaign Silver Press Single Gold

Brand: FevicolAward: Asia Pacific Ad FestCreative: Press - TrainCategory: Bronze

Brand: FevicolAward: Asia Pacific Ad FestCreative: VanCategory: Gold

2000Brand: FevikwikAward: ABBYCreative: All Creative upto 2000Category: TVC of the Century

Brand: FevicolAward: Big Bang, Clio, Cannes.Creative: Press campaign – Tyson, Bill Gates, George MichaelCategory: Silver

Brand: FevicolAward: Big BangCreative: Cliff HangerCategory: Gold

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Brand: FevicolAward: CannesCreative: Cliff HangerCategory: Bronze

Brand: FevicolAward: CAGCreative: Cliff HangerCategory: Big idea of the Year – Gold

Brand: FevicolAward: ABBYCreative: Cliff HangerCategory: Best continuing campaign – Silver

Brand: FevicolAward: Ad Club CalcuttaCreative: Cliff HangerCategory: Best continuing campaign – Gold

Brand: FevicolAward: ABBYCreative: All creative upto 2000.Category: Campaign of the century – Silver

Brand: FevicolAward: Media – the Asian Advertising AwardsCreative: Press- BirdsCategory: Gold

Brand: FevicolAward: Media – the Asian Advtg Awards, London Intl Advtg Awards, Young Guns.Creative: Press – Train, Birds & VanCategory: Finalist

Brand: FevicolAward: Media – the Asian Advertising Awards.Creative: Press – TrainCategory: Best of show finalist

1999Brand: FevikwikAward: Showcase Indian AdvertisingCreative: Fish

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Category: Best Script

Brand: FevikwikAward: ABBYCreative: FishCategory: Gold

Brand: FevikwikAward: CAGCreative: FishCategory: Silver

Brand: FevikwikAward: RAPACreative: FishCategory: Best TVC Best Script

Brand: FevikwikAward: Big BangCreative: FishCategory: Gold

Brand: FevikwikAward: Ad Club CalcuttaCreative: FishCategory: Best TVC

Brand: FevikwikAward: AAAICreative: FishCategory: Gold

1998Brand: FevicolAward: First Asia Pacific Ad Fest, ABBY, Ad Club Calcutta.Creative: Egg TVCCategory: Silver

Brand: FevicolAward: Seventh A&MCreative: Egg TVCCategory: Campaign Gold Single Ad Silver Campaign Advertising Best.

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Brand: FevicolAward: AAAICreative: Egg TVCCategory: Gold

Brand: FevicolAward: CAGCreative: Egg TVCCategory: Silver

Brand: FevicolAward: Cresta International Advtg Festival, London Intl. Advtg Awards, Creativity 28Creative: Egg TVCCategory: Finalist

Brand: FevicolAward: Showcase Indian AdvertisingCreative: Egg TVCCategory: 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

Current Advertising Strategy of ‘ Fevicol ’

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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 truck’s 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

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TV Ads:

2004

2002

1997

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Magazine/Print Ads:

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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

38

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.

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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.

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Table No. 1: Brand Awareness Level

Unaided Recall: 68% (asked through _ _ _ _ COL)

Aided Recall: 100% (asked through clues).

Recall Level at %age Cumulative %

Clue 1 (Shadow) 8 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 of Script of Ad

Rating FactorNo. of people agrees for Rating (in %)

Excellent 56

Good 30

Cant’ Say 10

Not Good 4

No Effect --

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Table No. 5: Advertising Promotes

Factors promoted%age

Product Knowledge

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 responsibleIn %

Price 18

Quality 54

Brand Name 18

Availability 10

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Table No. 9: Cue for first purchase

Factors responsibleIn %

Ad over TV 64

Heard from Others 20

Shopkeeper recommended 10

Others_ _ _ _ _ _ _ _ 6

Table No. 10: Loyalty Graph

Regular Purchaser: 52% Second Time Purchase: 2% First Purchase: 4% Not Fix: 42%

Table No. 11: Effect of Advertisement on Repurchase Decision

Promoted through Ad: 56% Unaware: 28% No Effect: 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

Araldite Vamicol Kitcol Arpit Prakash

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11.Data Analysis

Brand Awareness Level:

Unaided Recall:

68%

32%

Chunk Aware

Chunk Unaware

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:

100%

Chunk Aware

Chunk Unaware

During Aided Recall:

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

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Rating of Script of Ad:

Excellent Good Can't Say Not Good Not have any effect

0%

10%

20%

30%

40%

50%

60%

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 doesn’t have any effect.

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Advertising Promotes:

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.

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Knowledge of use or Extended use

Quality Knowledge

Product Knowledge

2%

10%

20%

12% 38%18%

Advertisement effect over purchase decision:

Having Effect

No Effect Can't Say0%

10%

20%

30%

40%

50%

60%

Effect of Ad on Purchase Decision

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.

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Product Purchase Factor:

Price18%

Quality54%

Brand Name18%

Availability10%

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.

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Cue for first purchase of Fevicol:

Ad over TV Heard from others Shopkeeper Rec-ommendation

Other Factors0%

10%

20%

30%

40%

50%

60%

70%

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.

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Loyalty Graph for Fevicol:

Regular Purchaser

Second Purchase

First Purchase Not Fix0%

10%

20%

30%

40%

50%

60%

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.

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Effect of Advertisement on Repurchase Decision:

Positively Promoted

Seems no Effect Can't Judge0%

10%

20%

30%

40%

50%

60%

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 didn’t see any effect of Ad over their repurchase decision of brand, they say it’s purely their own intuition to re-buy a product.

Rests of the respondents are unable to analyze the cue that held responsible for repurchase.

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Factors Preferred during Fevicol purchase:

Quality Product Brand Name Non-Availability of Other Product

0%

10%

20%

30%

40%

50%

60%

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.

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12.Findings

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.

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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.

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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.

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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.

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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.comwww.agencyfaqs.comwww.tvadsindx.comwww.indiainfoline.comwww.businesstoday.comwww.coursework.infowww.thehindubusinessline.comwww.domain-b.comwww.brand-reporter.com

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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. Can’t 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( ) Can’t say( )

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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 Positivelyo Can’t sayo 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: _________________________________

Contact No.: ______________________________.

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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 agency’s 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.

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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

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