Case - Fevicol
Case - Fevicol
Case - Fevicol
C ASE
Fevicol –The Iconic Bond*
Objectives
• To identify factors that lead to the development of a strong brand equity
• To identify steps taken to build a strong customer relationship.
• To understand the role of brand extensions in the company’s growth strategy
• To elucidate Integrated Marketing Communication components for brand building
Questions
1. How has the brand developed resonance with its customers?
2. What steps did Fevicol take to build their brand equity?
3. Analyze the customer relationship management strategy adopted by the organization.
4. What market strategies can Fevicol adopt against competition?
5. Analyze the marketing communication mix adopted by Fevicol, and was it successful?
This case was prepared for inclusion in Business Cases primarily as a basis for classroom discussion
or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing
herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or
personal use only within the university, and cannot be forwarded outside the university or used for
other commercial purposes. All Rights Reserved.
approach when he had told Mr. Thakkar “why extend credit to our trade partners when Fevicol is
the only adhesive brand anyone remembers in India? Even the Bollywood movie song praises the
power of Fevicol. It’s a household name everyone knows and wants”.
Dinesh felt while the CFO had a point, and his team’s branding strategies for Fevicol had worked
very well. However, now a new segment of traders and end users were emerging, they were looking
for quick financial gain and might not consider a long-term “value relationship” with the manufac-
turer. In the adhesives segment, there were a few new emerging brands, mostly regional, who were
offering compelling trade schemes and end user promotions, along with various flexible credit terms
and discounts to woo the trade and the customers. Fevicol had an iron grip on the market with
about 80% market share but he did not want complacency to set in. He knew though the adhesive
component was a very small share of the cost of the furniture, majority of the carpenter’s preferred
Fevicol adhesive to any other brand. The real success of the brand lied in creating the strong belief
that nothing is as strong an adhesive as Fevicol. This message had resonated well with everyone in
the eco-system—the carpenters, contractors, interior designers, and even the architects. The chal-
lenge now was to continue this successful positioning into the future in a fiercely price competitive
and changing marketplace and how would they achieve it?
carpenter as it started getting them contract/assignments with their clients. It was very popular with
the carpenters and helped grow the company’s user database rapidly. In 2015, Fevicol Design Ideas
book, for residential and commercial purposes, was launched along with an online portal in the
same name which would act as a liaison between carpenters, contractors, and architects.
Existing Players
Jubilant Agri and Consumer Products Limited (JACPL)
Jubilant Agri and Consumer Products Limited (JACPL) has a well-diversified product portfolio that
includes consumer products like adhesives, wood finishes, wood preservatives; food polymers;
synthetic latex such as Vinyl Pyridine, SBR, and NBR latex; Agri Products like Crop Nutrition,
Crop Growth and Industrial Chemicals. JACPL is a wholly owned subsidiary of Jubilant Industries
Limited (JIL).
Jubilant Agri and Consumer Products Ltd, manufactures and markets adhesives which are de-
signed to work on multiple substrates, including wood. It caters to the market of both water-based
and solvent-based adhesives, which are required for different applications. JACPL also provides
specialized adhesives for various applications. The offerings are made through the following brands:
Jivanjor, Vamicol, Polystic, and Hero. The Consumer Products division had a network of more than
600 distributors and over 15,000 retailers all over India. It has 10% of the market share.
New Entrants
Asian Paints
Asian Paints TruGrip Ultra is a water-based, synthetic resin adhesive which was direct competition
to Fevicol. It was used for bonding a wide variety of wood-based substrates.
Henkel Adhesive Technologies had a B2B presence in the adhesives segment in India with their
Loctite brand and lacked a retail presence for which they entered into a distribution agreement with
Asian Paints, which sold the brand at the retail level through a co-branding initiative. Asian Paints
had a distribution network spanning 36,000 hardware shops which Henkel wanted to capitalize on.
Loctite had been present primarily in industrial adhesives since 2000, and the new retail products
were to be manufactured at the factories based in the western region of India, at Kurkumbh near
Pune. Their range of products were Asian Paints Loctite Quick, Asian Paints Loctite Rapid, and
Asian Paints Loctite Tough.
The brand had a critical functionality in the craftsmanship and any compromise on the quality
of the adhesive would mean a sub-standard offering. Although the cost contribution of Fevicol to
the total expense incurred for the craftsman was marginal (almost 2%) but it assured a good quality
finished product safeguarding the rest 98% of the cost.
Not using the right amount of adhesive would lead to a customer complaint and maybe even a loss
of business in the marketplace. The company educated and encouraged craftsmen to use the right
amount of adhesive in the appropriate manner for optimum results. This enabled the company sales
force to continuously build and nurture the relationships locally with the carpenters, to build their
confidence in each new product right from launch, and demonstrate each new product’s a pplication
and benefits. It also enabled the sales force to collect direct feedback from the carpenters.
This model was adopted across the country across the various cities and towns and had a massive
appeal for the craftsmen. After the demonstrations, the craftsmen would then place sales orders
with the retailer who in turn would then supply to them. Products were usually available in 1kg,
2kg, and 5 kg containers for craftsmen for household buying, and for industrial buying, they were
available in large packs of 10 kg, 20 kg, 30 kg, and 50 kg.
Products were available in various packs starting from 50 gms to 200 kg barrel based on the
requirements of end users, workshop, joineries, etc.
Similarly, booklets on furniture designs provided to them enhanced their business prospects. The
club organized various activities and celebrated the Vishwakarma Day which paid reverence to their
deity. A huge get-together is organized every year at various locations across India to celebrate this
day. The FCC provided insights to the product and marketing teams on the challenges faced by the
customers and offered solutions.
The Fevicol Champions’ Club (FCC) has provided a platform to the carpenters and other
wood-working contractors to come together as a community for their personal and professional
growth and also to be recognized for their efforts and imbibe new methods bringing them success,
both socially and professionally.. The trust and respect which the brand enjoyed was strengthened
by these activities.
International Presence
The company has global presence in 14 countries across the globe. In Bangladesh and Egypt, the
company has manufacturing facilities. There has been a significant increase in exports of consumer
and craftsmen products in order to achieve sustained growth. This has been possible because of the
expanding distribution network in various countries and deploying additional manpower.
To facilitate better global networking, Pidilite has established offices/subsidiaries in several coun-
tries, including Singapore, USA, Brazil, UAE, Indonesia, Egypt, Bangladesh, Kenya, Sri Lanka, Thai-
land, Ethiopia, Myanmar, and Ghana. Most of their products are manufactured in-house with the
help of a strong, research-driven innovation overlaid with consumer insights. A well-equipped and
well-staffed R&D center continuously develops and enhances products for consumers, c raftsmen,
and industries. Pidilite has also established a state-of-the-art research center in Singapore that is
now a member of Singapore Chemical Industry Council (SCIC).
The operational teams in each country had customized and transferred the brand’s “success for-
mula” from India to those countries, and successfully implemented the brand extensions as well. In
Bangladesh, Fevicol had completely displaced an incumbent Japanese brand and commanded the
brand awareness and popularity levels at par with that in India. Pidilite had set up manufacturing
facilities for Fevicol in Bangladesh, Egypt, and soon after, in Sri Lanka. The international operations
at the company is on a fast track and poised for major growth
with it. However, none of the wooden items could be removed, thereby reinforcing Fevicol as the
ultimate and most reliable glue. See Exhibit 7 for more Fevicol print ads. Another publicity event
was when Fevicol participated in the Standard Chartered Mumbai Marathon in 2013, where a
group of people wearing the Fevicol branded shirts were doing a “standing run”, which is running on
the same spot as if they were glued to the place. This funny behavior at a marathon attracted huge
attention from all the participants and the media coverage created quite a stir in the press and TV.
In 2016, the Company received the “Most Promising Company of the Year” at the CNBC-TV18,
11th India Business Leader Awards (IBLA).
The company hosted the prestigious Pidilite Awards for Excellence (PAFE) ceremony to felicitate
meritorious students of architecture and interior design. The company believes that talent and ex-
cellence are paramount and both should be rewarded and recognized. A Pidilite Knowledge Series
was initiated where leading architects and interior designers participated and shared their knowl-
edge and experiences with each other. This lead to building stronger customer relationships not only
amongst contractors but also amongst interior designers and architects.
Fevicol Design Ideas was launched on the digital platform in 2013 with a new website and a mo-
bile application. This website connected home-owners to professionals like interior designers and
contractors. There are 10,000 interior designers and 15,000 contractors on the website and show-
cases approximately 50,000 design ideas.
even usurping their veteran brand Fevicol SH. Fevicol SH was a synthetic resin adhesive intended
for wood working and binding plywood, laminate, veneers, MDF, and all types of boards and cork.
It was also used to manufacture sporting goods and book binding. Fevicol SH achieved handling
strength in 8 to 10 hours, fully curing in 24 hours. Earlier on the applicators (carpenters) were
using Fevicol SH, but after Fevicol Marine was launched, a majority of the applicators started using
Fevicol Marine due to its versatile properties.
The brand came into existence when the demand arose from the consumers to have a faster-setting
adhesive which would be equally effective when exposed to water. The brand extension was
conceptualized and launched in 2010
Fevicol Speedx was devised to provide handling strength in 2 hours which improved productivity
and was cost effective to the user. Fevicol SH Xtra was conceptualized to enhance the offering
of Fevicol SH and provide superior tack development, early-handling strength development, and
faster-setting time.
Marketability of the finished wood work was pivotal to the users of the brand. Clients would
often request for new age materials like PVC or Acrylic sheets to be used in the wood work. For
this purpose, the applicators required an adhesive which would meet this need, and along with it,
provide a factory-finished look to carpentered furniture.
The essence of the brand and the brand extensions continued to focus on the changing consumer
preferences, and hence, were successful and gained market popularity.
Next Steps
So, after the brief review, Mr. Thakkar was now ready to discuss the next year’s marketing plans
with the CFO before presenting it to the Board of Directors and the CEO.
Fevicol reigned supreme as a market leader and enjoyed remarkable trust from its customers. If
the rumor was true about the big paint company entering the adhesives market, then the marketing
team needed a strategy which would further strengthen Fevicol’s brand equity and capitalize on the
brand extensions to face a potentially formidable competitor.
Exhibit 1
Exhibit 2
Exhibit 3
Exhibit 4
Exhibit 5
Ogilvy and Mather picked up a Silver Lion in the Film category for
‘Fevicol Bus’ in 2002.
Exhibit 6
d. During election time they came up with “clever chair” campaign, which was a major hit.
f. The brand enjoyed immense popularity when it was featured in a song enacted by
leading Bollywood starts for the feature film “Dabangg 2.”