Pidilite – Bonding Innovation with success

Introduction: A Visionary Beginning

In April 2011, M.B. Parekh, the leader of Pidilite, shared his ambitious plans for the
company's future. Like his father, Parekh believed in creating products that could ease the
lives of consumers. His vision was to expand Pidilite's market leadership by introducing new
products that would cater to both the mass market and niche segments.

Small Beginnings: Crafting a Unique Brand

Pidilite's journey started with a focus on delivering quality products that met specific
consumer needs. Balvant Kalyanji Parekh, the founder, initially began by distributing
specialty chemicals manufactured by a German company. However, it was his keen
understanding of the Indian market that led him to establish Pidilite as a company focused on
creating products that catered to local needs.
Key to this success was Parekh's commitment to understanding customer needs and creating
products that resonated with them. For instance, he recognized the need for an adhesive
product that was strong yet easy to use, leading to the creation of Fevicol—a product that
eventually became synonymous with strong bonding in India.

Growth: Expanding Market Presence

Over the next 50 years, Pidilite grew from a small business into a market leader, particularly
in adhesives, construction chemicals, and art materials. The company's growth strategy
involved several key elements:
 Innovation and R&D: Pidilite invested significantly in research and development
(R&D) to create products that were not only innovative but also addressed specific
consumer pain points. This focus on innovation helped Pidilite stay ahead of competitors
and continuously meet evolving consumer needs.
 Brand Equity and Consumer Trust: Pidilite built strong brand equity through
consistent quality and effective marketing. Products like Fevicol became household
names, trusted by consumers across the country. This trust was reinforced by Pidilite’s
commitment to maintaining high standards in product quality and customer service.
 Diverse Product Portfolio: Pidilite didn’t limit itself to adhesives alone. It expanded its
product line to include construction chemicals, art materials, and even niche products like
car care solutions. This diversification allowed Pidilite to capture a broader market share
and reduce dependency on any single product line.
 Market Penetration and Distribution: Pidilite focused on penetrating deep into the
Indian market by building a robust distribution network. The company ensured its
products were available in both urban and rural areas, making them accessible to a wide
range of consumers.
 Consumer-Centric Approach: The company’s growth was driven by its understanding
of consumer needs. Pidilite tailored its products to meet local demands, ensuring they
were not only effective but also easy to use and affordable. This approach helped the
company build a loyal customer base.

Manufacturing
Strategic Locations: Pidilite has established manufacturing units strategically across
different regions. This geographic distribution is crucial for ensuring efficient production
and timely distribution, reducing costs associated with logistics, and enabling quick
responses to market demand.
Diverse Product Range: The manufacturing facilities are designed to produce a wide
array of products, catering to various market segments, including adhesives, sealants,
construction chemicals, and more. This diversity allows Pidilite to capture a broad market
base and cater to the specific needs of different customer groups.
Quality Focus: The company emphasizes maintaining high standards of quality across its
manufacturing processes. This focus on quality is essential for building and sustaining
brand trust, particularly in industries where product performance is critical.

Technology
Innovation and R&D: Pidilite invests significantly in research and development to drive
innovation. The company’s R&D efforts are aimed at developing new products and
improving existing ones, which is a key aspect of their competitive strategy. This
continuous innovation helps Pidilite differentiate itself in the market and meet evolving
customer needs.
Advanced Manufacturing Techniques: The integration of advanced technologies in
manufacturing processes enhances efficiency and product quality. This includes the use of
automation and other cutting-edge techniques that streamline production, reduce waste,
and improve overall operational efficiency.
Product Development: By leveraging technology, Pidilite is able to introduce products
that meet specific customer requirements and set new industry standards. This proactive
approach to product development supports the company’s strategic marketing initiatives,
allowing it to offer unique value propositions to its customers.
Marketing
Pidilite's Marketing Strategy: Building Strong Brand Equity
Overview
Pidilite's success in the market is largely attributed to its robust marketing strategy,
particularly its emphasis on building strong brand equity. The Fevicol brand, a flagship
product of Pidilite, has been at the forefront of this strategy since its inception in 1959. Over
the years, Pidilite has strategically positioned Fevicol as a leader in the household care
segment, specifically in furniture adhesives.
Brand Equity and Market Leadership:
Pidilite’s focus on brand equity has allowed Fevicol to become a household name
synonymous with reliability and strong bonds. By investing in high-quality products and
innovative advertising, Pidilite strengthened Fevicol's market position across various
segments, including construction, paint chemicals, and art materials. This approach helped
Fevicol not only to maintain its leadership in these segments but also to expand its reach and
relevance in the market.
Strategic Positioning:
Pidilite consistently positioned Fevicol as a product that delivers on its promises. The brand
was ranked among the top trusted brands in India, which speaks volumes about its market
penetration and consumer trust. This trust was built over time through continuous innovation
in both product development and marketing communications.

Advertising
Innovative and Culturally Resonant Campaigns
Collaborative Creativity:
Pidilite’s advertising strategy was marked by its collaboration with the renowned agency
Ogilvy & Mather. This partnership resulted in some of the most memorable and effective
advertising campaigns in India. The ads were designed not just to sell a product but to
connect with the audience on an emotional level by tapping into Indian culture and traditions.
ABBY Awards and Recognition:
The effectiveness of Pidilite's advertising strategy is evident from the multiple ABBY awards
the company received. In its 40th year, Pidilite made history by winning three ABBY awards.
These included a gold ABBY for the "Commercial of the Century" for Fevikwik's fish
commercial, and several other awards for the Fevicol campaigns. The campaigns were lauded
for their creativity and consistency, culminating in a hat trick of golds in 2004, including the
'Best Long Running Campaign,' 'Best Print Campaign,' and 'Best Single Print Ad.'
Emotional Appeal and Cultural Connection:
The success of Pidilite’s advertising lay in its ability to connect with consumers across
different segments. According to Piyush Pandey, executive chairperson and creative director
of Ogilvy India, the earthiness of Fevicol's ads played a crucial role in making the brand
relatable and memorable. The tagline "Ghar ka banaya hua Fevicol" (Home made Fevicol)
resonated with the masses, emphasizing the product’s reliability and its integration into
everyday life.

Packaging
Enhancing Consumer Appeal Through Design
Packaging as a Strategic Tool:
Recognizing the importance of packaging in influencing consumer behavior, Pidilite invested
in enhancing the 'pull' factor of its products through innovative packaging designs. The
company collaborated with Plus One Design from the UK to redesign the packaging of
Fevicol, making it more appealing and functional.
Contemporary Design and Functionality:
The new packaging designs were not just aesthetically pleasing but also highly functional.
For instance, Pidilite introduced tamper-proof seals, easy-to-grip transparent lids, and
prominent branding elements on the packs. These features were aimed at making the product
more user-friendly while also reinforcing its premium positioning in the market.
Broader Product Range and Redesign:
Pidilite extended its packaging strategy across various product lines, including footwear,
flooring, and foam-fixing products, as well as the Wudfin range. By doing so, the company
ensured a consistent brand experience across different product categories, which helped in
reinforcing brand recognition and loyalty among consumers.

A Holistic Approach to Market Leadership

Pidilite’s marketing strategy was comprehensive, integrating brand equity, advertising, and
packaging to create a powerful brand presence in the market. The company’s ability to
connect with consumers on an emotional level, coupled with innovative product packaging
and consistent brand messaging, ensured that Pidilite not only maintained its market
leadership but also continued to grow its brand equity over time.
This holistic approach to marketing, which combined technical aspects like innovative
packaging with emotional appeal in advertising, has been key to Pidilite's sustained success
in the competitive market.

Sales Promotion
Dr. Fixit Service Centres and Institute: Pidilite established over 100 Dr. Fixit service centres across
India to support local contractors, interior designers, architects, and builders. Additionally, they set
up the Dr. Fixit Institute in partnership with the National Roofing Contractors Association of the US to
promote good construction practices, especially in waterproofing.

Building Blocks Magazine: Pidilite launched "Building Blocks," a quarterly magazine

aimed at professionals, providing information on maintenance issues like water seepage and
leakage, including case studies and relevant topics.
Dr. Fixit Helpline and Website: A helpline and website were introduced to assist people
with waterproofing and building repair problems, enhancing customer service and
engagement.
Training and Education Initiatives: The company conducted seminars under the Pidilite
Knowledge Series and trained over 10,000 contractors and applicators on construction
chemical products, contributing to knowledge sharing and industry expertise.
Toll-Free Assistance for Professionals: Pidilite introduced a toll-free number to assist
professionals like architects and engineers in solving construction-related problems on-site,
enhancing customer support.
Fevi Art Magazine: The launch of Fevi Art magazine provided hobbyists and artists with
new ideas for using Fevicryl and Acron products, promoting creativity and product usage.
Cross-Promotion with Leading Companies: Pidilite engaged in cross-promotion strategies,
such as Acron Rangeela student colors with Hindustan Lever and Acron wax crayons with
Colgate, enhancing product visibility and reach.
Creative Craft Contest and School Enrolment: India's first creative Craft Contest was
conducted, and over 1,000 schools were enrolled as Creative Craft schools, promoting craft
activities and Pidilite products among students.
Hobby Ideas Fashion Show for Charity: Pidilite tied up with the Cancer Patient Aid
Association to host a fashion show using Fevicryl products, raising funds for charity and
promoting the brand through a high-profile event.
Rural Product Awareness via Pidilite Van: A Pidilite van equipped with an audiovisual
system and attractive graphics was deployed in rural areas to promote products, increasing
brand awareness and reach in underserved markets.

Competitors
1. Nikhil Adhesives:
Overview: A 25-year-old company specializing in the manufacture of various types of
polymer emulsions.
Business Segments: Operated in both Consumer and Industrial segments.
Products: Key brands included Mahacol (adhesives and binders), Mahatight (resin
cum hardener for bonding various materials), Multiseal (epoxy putty), Mahacol
HandyCraft (synthetic glue based on polyvinyl acetate), and Mahacol Chipku
(synthetic glue based on polyvinyl alcohol for paper crafts).
Financials: In FY 2011, the company had a turnover of ₹145 crore.

2. Jesons Industries:

Overview: Started in Mumbai in 1972 with an initial capacity of 300 tonnes per
annum, which expanded to 86,000 tonnes per annum by 2007.
Manufacturing: Operated plants in Palghar, Daman, Roorkee, and had plans for a
new plant in Chennai with a capacity of 25,000 tonnes per annum.
Products: Offered the Bondex brand of pressure-sensitive adhesives for tapes,
stickers, and labels. Also provided adhesives for the paint industry, construction
chemicals, furniture, textile printing, and finishing.
Financials: In FY 2011, Jesons Industries had a turnover of ₹221 crore.
 3. Camlin:
Overview: A well-known name in the art materials and stationery segment, with a
history dating back to 1931.
Product Range: Started with ink powders and tablets, then expanded into various
products like pain balms, chalks, stamp pads, gums, adhesives, and a wide range of
art materials including oil and watercolors, crayons, and pencils.
Sales Promotion: Actively promoted its products with initiatives like the Camel
Colour Contest, starting in 1982.
Financials: By 2011, Camlin had a turnover of about ₹360 crore, with a retailer
network of 50,000. Approximately two-thirds of its revenue came from stationery
items and one-third from chemicals.
While Pidilite did not have any close competitors in certain segments, it had to consider these
companies as significant players in the consumer and industrial specialty segments. Each
competitor had its strengths in terms of product offerings, market reach, and financial
performance, making them relevant in the competitive landscape Pidilite operated in.

Conclusion
Pidilite's Strategic Growth and Market Leadership
Pidilite’s journey from a small-scale distributor to a market leader in adhesives, construction
chemicals, and art materials is a classic example of how strategic planning, consumer focus,
and innovation can drive sustained growth. The company’s success can be attributed to
several key factors:

1. Consumer-Centric Product Development:

Pidilite’s ability to identify and address the specific needs of its target market has been a
cornerstone of its success. The creation of Fevicol, tailored to the Indian market, exemplifies
the company's focus on solving real-world problems for its consumers.

2. Strong Brand Equity:

By consistently delivering quality products and investing in effective advertising, Pidilite
built a strong brand that resonates with consumers across India. Fevicol, in particular, became
synonymous with strong bonds, a testament to the company's branding efforts.

3. Innovation and R&D:

 Continuous investment in research and development allowed Pidilite to innovate and stay
ahead of competitors. This focus on innovation not only helped Pidilite diversify its product
range but also ensured that it could cater to evolving consumer needs.

4. Robust Distribution Network:

Pidilite’s extensive distribution network ensured that its products were accessible to
consumers in both urban and rural areas. This wide reach helped the company maintain its
market leadership and expand its consumer base.

5. Diversification:
Pidilite’s strategy of diversifying its product offerings beyond adhesives into construction
chemicals, art materials, and niche markets like car care solutions helped reduce its
dependency on any single product line and mitigated risk.

Recommendations: Strategies for Sustained Growth

To continue its growth trajectory and strengthen its market position, Pidilite could consider
the following strategies:

1. Digital Marketing and E-commerce:

With the increasing penetration of the internet and smartphones in India, Pidilite could
leverage digital marketing and e-commerce platforms to reach a broader audience. By
creating engaging online content and offering its products on e-commerce platforms, Pidilite
can tap into the growing online consumer base.

2. Global Expansion:
Pidilite could explore opportunities to expand its footprint in international markets,
especially in emerging economies where there is a growing demand for construction
chemicals and adhesives. This would involve adapting its product offerings to meet the needs
of different markets and investing in building brand recognition globally.

3. Sustainability Initiatives:
As consumers become more environmentally conscious, Pidilite could invest in developing
eco-friendly products and packaging. This not only aligns with global sustainability trends
but also differentiates the brand in the marketplace.
4. Consumer Education and Engagement:
Pidilite can enhance consumer loyalty by educating customers about the various
applications of its products. This could involve workshops, DIY guides, and interactive
content that demonstrates the benefits and uses of Pidilite’s products, thereby creating deeper
consumer engagement.

5. Partnerships and Collaborations:

Forming strategic partnerships with companies in related industries, such as construction or
home improvement, could open new avenues for growth. Collaborations with educational
institutions for research or product innovation could also provide Pidilite with fresh insights
and new product ideas.

6. Strengthening Supply Chain Efficiency:

To further improve its market responsiveness, Pidilite could focus on enhancing its supply
chain efficiency. This could involve adopting advanced technologies like AI and machine
learning for demand forecasting, inventory management, and optimizing distribution

Pidilite’s case is a compelling study of how a company can achieve and maintain market
leadership by staying true to its core values while continuously adapting to market changes.
The company’s ability to innovate, connect with consumers, and expand its product offerings
has positioned it well for future growth. By embracing digital transformation, exploring
global markets, and focusing on sustainability, Pidilite can continue to build on its legacy and
drive long-term success.