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INTRODUCTION
Fevicol, the flagship adhesive brand of Pidilite Industries Limited (Pidilite), enjoyed a dominant
position in the adhesive business in India with a market share of 70% as of 2015. Reportedly,
Fevicol was the largest selling adhesives brand in Asia with a presence in over 50 countries. In
2015, Pidilite reported a turnover of Rs 46.52 billion, of which 40% came from sales of Fevicol1.
According to some analysts, Fevicol’s dominance in the Indian adhesive market could be
attributed not only to the brand’s inherent strength and quality but also to a series of advertising
campaigns launched by the company over the years to promote the Fevicol brand. “Although
Fevicol is not a consumer product, but it has managed to reach out to every Indian thanks to the
brilliance and humour of the campaigns,”1 said Abhijit Avasthi (Avasthi), former National
Creative Director of Ogilvy & Mather India a (O&M).
Launched in 1959, Fevicol was promoted as easy to use glue for carpenters, as an alternative to fat
and collagen-based adhesive which had to be boiled before application. Over the years, the
brand had proved its mettle in terms of consistency, quality, and strong distribution method and
customer relationship. It had become a generic name in the adhesive category in India.
According to industry experts, Fevicol had strong brand equity and remained embedded in the
minds and hearts of the customers. Since adhesive was a low involvement category, Pidilite
adopted creative marketing strategies to increase the sales of the adhesive, they said. Over the
years, Fevicol’s simple, creative, and humorous advertisements clicked with customers and
contributed to the success of the brand, opined industry experts.
Despite the success of Fevicol, Pidilite faced competition from other adhesive brands such as
Vamicol, Henkel, and Sika India. According to industry experts, one of the biggest threats for the
company was the entry of new players who could enter the market very easily as entry barriers for
the adhesives sector were low. Whether the uniqueness of its advertising strategy would help
Fevicol beat the competition and maintain its lead in the Indian adhesives market remained to be
seen, said analysts.
BACKGROUND NOTE
The journey of Fevicol could be traced back to 1954 when Balvant Parekh, founder of Pidilite,
along with his brother, Sushil Parekh, started manufacturing pigment emulsions that were used for
textile printing. In 1959, the brothers spotted an opportunity to make synthetic glue to replace the
natural glue that carpenters were using during that time. The Parekh brothers figured they would
have a ready market if they could make a cheaper product locally. Thus, Fevicol was launched.
As the trade was used to glues based on natural products, selling synthetic glue was a difficult
proposition. In order to shift end-users from natural glues and other synthetic adhesives available
at the time, Fevicol embarked on a bold marketing game plan. Instead of selling through stores
Fevicol approached carpenters directly. This direct marketing initiative was one of the most
successful strategies employed by the company and helped the brand gain a strong foothold in the
white glue market.
With its signature white and blue packing, Fevicol was marketed directly to consumers, largely to
carpenters, unlike competitor products like Movicol, which were only available at hardware stores.
Initially, Fevicol was primarily meant to be used as glue for woodworking while its secondary
applications included uses in flooring, footwear, and upholstery. The company primarily targeted
interior decorators, carpenters, dealers, and architects as consumers for the brand. The
unique selling proposition of Fevicol was its ease of application as it was a synthetic resin
adhesive. To the carpenters, this meant they were free from the sticky animal fat-based glue
colloquially called Saresh. Saresh had to be boiled before being applied and the fumes had a
peculiar stench. As Fevicol could be applied easily, it became an instant hit with
carpenters. Reportedly, the company’s sales increased form Rs. 10 million in 1960 to Rs. 100
million in 1983.
Pidilite kept alive the freshness quotient of Fevicol brand by consistently innovating and
introducing new variants at regular intervals, keeping customer needs in mind. The introduction of
various formats of Fevicol transformed the brand from an industrial product to an all-purpose glue.
The company targeted both B2B and B2C segments that included wholesalers, retailers, stationery
stores, carpenters, housewives, and students. Riding high on the success of Fevicol, the company
launched other customized Fevicol products packaged for educational and professional purposes
such as Dr.Fixit, Fevikwik, MotoMax, M-Seal, and Fevi Stick. (See Exhibit I). To capture the
mass market, Fevicol was launched in collapsible tubes at an affordable price of Rs 5. In 2008,
Pidilite introduced Fevicol craft adhesive at Rs 2 and Fevigum at Re 1. This made high quality
adhesives available to consumers at very affordable prices. In 2010, Pidilte launched coloured glue
sticks such as Fevistik Blue and Fevistik Purple. Over a period of time, Fevicol became
synonymous with glue in India, making the brand a generic name in the Indian adhesives market2.
As of 2013, Fevicol was the largest selling adhesive in Asia. The product was available in nearly 54
countries including Japan, China, South Africa, Thailand, Singapore, and Indonesia. Fevicol was
ranked number one in the Household Care segment of the Most Trusted Brands in India for 2007-08
by Brand Equity (The Economic Times) and overall was ranked the 20th Most Trusted Brand.
RESULTS
As of 2011, Fevicol had a market share of over 75% in the adhesives category with a presence
across 80% of India. Because of the new initiatives by Fevicol, its year on year CAGR showed an
incremental growth. Net sales of branded Adhesives and Sealants grew by 14.1 % and contributed
50% of the total sales of the Pidilite in 2014-155.
Fevicol was the single largest contributor to Pidilite’s total revenue. According to analysts,
Fevicol’s sustainable brand success was due to continuous innovation and the introduction of new
and effective products across segments. With the introduction of new small-sized SKUs (Stock
Keeping Units), deepening of the distribution network, and a series of brilliant advertisements, the
company was able to create a pull for its brand that led to a strong increase in its sales from Rs.
100 million in 1983 to Rs. 10 billion in 2006, 100 times sales in 23 years.6 In fiscal 2015-16, the
company’s profits were Rs 7.47 billion (See Exhibit III).
According to analysts, every piece of communication developed by Fevicol broke clutter,
increased sales, and entertained the viewer. The Fevicol campaigns over the years had resulted in
making it the 'numero-uno' brand in a segment dominated by unbranded, unorganized, low
involvement, and low-cost products, they added. According to some industry observers, it was the
consistent and innovative approach to 'bonding' and the retention of the Indian flavor in the ads
laced with a touch of humor that had made Fevicol a power brand. Fevicol was ranked 2nd in the
Buzziest Brand 2014, an annual poll conducted by India’s largest marketing and advertising portal
afaqs.com. Fevicol was also ranked the 45th Most Trusted Brand in 2012 in Brand Equity’s Most
Trusted Brand survey. Experts attributed the success of Fevicol to its ads. “The earthy humour in
Fevicol ads brings a smile to everyone's face. The ads have even made our other clients think of
life beyond selling products and ending up connecting with the audience better,”d said Piyush
Pandey, executive chairman of O&M (India and South Asia).
According to industry observers, Fevicol’s consistent quality, efficient distribution network, and
commendable customer relationship management practices, helped in establishing the brand firmly
in the minds of consumers. Fevicol’s overriding dominance in the glue market looked unshakable,
they said. “Fevicol is now a 53-year-old brand. The first 30 years, in fact, was all about winning
the trust of consumers. Thanks to the quality of the product, Fevicol has successfully established
itself as the first choice in the adhesive market. This phase, of building trust, continued from 1959
to the mid- 1980s, or till the late ’80s. The next 20 years were all about building the brand
proposition, which lasted from the 1990s to 2009/2010. That describes the journey Fevicol had for
first 30 years and for the next 20. Thereafter, we have adopted the approach of strengthening the
brand and at the same time offering more specialised variants to consumers. But the mother brand
remains most critical to our business and you will get to see a lot of initiatives and a lot of creative
work happening on the mother brand in the days ahead,”e said Vishal Malhan, Chief of
Marketing, Fevicol .
Source: https://madovermarketing.com
Exhibit III
Key Financials of Pidilite
In billions of Indian Rupees