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    Brand Bigger Than The Company - Pidilite

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    Rahul Pinnamaneni
    1) Pidilite Industries Ltd. is a leading manufacturer of adhesives, sealants and construction chemicals in India, with their flagship brand Fevicol contributing 50% of revenues. 2) Fevicol has been extremely successful for Pidilite and is now trying to diversify its product portfolio and reduce reliance on Fevicol to avoid putting all their eggs in one basket. 3) There are risks of brand extension for Fevicol like cannibalization of other Pidilite products, but building strong brands has helped Pidilite survive and strong brands can be extended in the future if done carefully.

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    Brand Bigger Than The Company - Pidilite

    Uploaded by

    Rahul Pinnamaneni
    141 views10 pages
    1) Pidilite Industries Ltd. is a leading manufacturer of adhesives, sealants and construction chemicals in India, with their flagship brand Fevicol contributing 50% of revenues. 2) Fevicol has been extremely successful for Pidilite and is now trying to diversify its product portfolio and reduce reliance on Fevicol to avoid putting all their eggs in one basket. 3) There are risks of brand extension for Fevicol like cannibalization of other Pidilite products, but building strong brands has helped Pidilite survive and strong brands can be extended in the future if done carefully.

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    Brand Bigger Than the Company - Pidilite

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    1) Pidilite Industries Ltd. is a leading manufacturer of adhesives, sealants and construction chemicals in India, with their flagship brand Fevicol contributing 50% of revenues. 2) Fevicol has been extremely successful for Pidilite and is now trying to diversify its product portfolio and reduce reliance on Fevicol to avoid putting all their eggs in one basket. 3) There are risks of brand extension for Fevicol like cannibalization of other Pidilite products, but building strong brands has helped Pidilite survive and strong brands can be extended in the future if done carefully.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    141 views10 pages

    Brand Bigger Than The Company - Pidilite

    Uploaded by

    Rahul Pinnamaneni
    1) Pidilite Industries Ltd. is a leading manufacturer of adhesives, sealants and construction chemicals in India, with their flagship brand Fevicol contributing 50% of revenues. 2) Fevicol has been extremely successful for Pidilite and is now trying to diversify its product portfolio and reduce reliance on Fevicol to avoid putting all their eggs in one basket. 3) There are risks of brand extension for Fevicol like cannibalization of other Pidilite products, but building strong brands has helped Pidilite survive and strong brands can be extended in the future if done carefully.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    PIDILITE INDUSTRIES LTD. BRAND BIGGER THAN THE COMPANY?

    Group 3 11P119 - Vignesh K 11P156 - Rahul Pinnamaneni 11P165 - Shafali Subramanian 11P240 - Vivek Mathew Abraham

    PIDILITE INDUSTRIES LTD.


    Established in 1959, PIL is a pioneer in consumer and specialties chemicals in India having a turnover of Rs. 2,200 Cr in 2009-10 It is a market leader in adhesives and sealants, construction chemicals, hobby colours and polymer emulsions in India Brand Fevicol is ranked amongst the most trusted brands in India Pidilite distinctive features Unparalleled distribution network creating huge entry barriers Constant innovation and new product development strategies Either No. 1 or 2 in every segment

    PIL PRODUCT OFFERINGS


    PIL consumer and bazaar products account for 65% of the

    revenues with PIL


    Leading brands include Fevicol, Fevikwik, pidifix, fevicryl etc. Later expanded into glues, tapes, M-Seal and Dr. Fixit Fevicol contributes 50% of companys revenues

    Average growth rate over the last 10 years 13.13% for sales and 19.35% for profits

    POSSIBLE ISSUES / OPPORTUNITIES


    Pidilite extending the brand Fevicol from a complete carpenters product to an all-purpose glue Pidilite also trying to diversify its product portfolio by creation of strong brands and by reducing dependence on Fevicol sales for profits (putting all eggs in one basket??) Company moving from single brand to multibranded establishment

    HOW STRONG IS FEVICOL


    Oldest Brand High Brand recall Propelled by imaginative ad campaigns

    Fevicol Brand Extension Launch of fevicraft a bi-monthly magazine showcasing furniture designs Company focusing on core marketing issues which in turn build the brand Constant advertising through print and TV media

    IMPLICATIONS OF BRAND EXTENSION FEVI


    1. Easy acceptance of new product, resulting in increased market coverage 2. Ideal launching pad for the new product thanks to good expectations from users loyal to Fevi 3. Fevi brand extension avoids cost of developing a new brand 1. Can lead to cannibalization, e.g. Fevicol is a competitor to many other products like Fevikwik, fevigum 2. If the new product fails, it can hurt the brand image of the parent brand also 3. Lack of brand identification with any one category may weaken the brand

    BRAND FEVI BIGGER THAN PIDILITE


    Strengthening brand Fevi can lead to the brand being more recognized than the company itself It is also leading to cannibalization of sales because Fevicol is competing with other brands of the company The company, therefore is now waking up and trying to diversify its product portfolio by creation of strong brands and reducing its high dependence on Fevicol for profits

    IN INDIAN CONTEXT
    Maruti 800 Ambassador Dairy Milk Kingfisher(Beer, airlines, swimsuit calendars)

    LEARNINGS

    Building strong brands initially always aids in expansion and extension in the future Investing in strong brands helps organization survive in the long run Central Brands, around which companies build their business model and capabilities, have pros and cons but definitely more pros Extreme care should be taken while milking any brand (over-dilution and extensions in unrelated areas/ areas not perceived as related by loyal customers can lead to repercussions. E.g. after the death of Steve Jobs, many thought Apple would come with commemorative editions but that wasnt what Apple was all about)

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