Pidilite Industries Limited, commonly referred to as Pidilite, is known for its distinct and engaging market strategies and campaigns. It has been the market leader in the industry of adhesives for years, all thanks to its strategic business decisions and strong marketing plans.
In this case study, we will take a deep dive into knowing what Pidilite as a company is, its 4Ps of the marketing mix, the marketing strategies and campaigns, followed by swot analysis on the same. So, let us start by understanding Pidilite Industries Limited in the coming section.
Pidilite industries limited was founded in 1959 and is currently headquartered in Mumbai, Maharashtra. It is a consumer-centric chemical company that is committed to quality and innovation. For years, the company has been developing products related to adhesives, sealants, construction materials, industry resins, sealants, etc.
Just like its adhesives, it also has created strong bonds with people from all walks of life. They are market leaders in many sectors, one of them includes adhesives. Their diverse brand portfolio includes the following:
Brands Portfolio of Pidilite
(Image Source: Daily Marketing)
Now that we know a little bit about this company, let us understand further by looking at 4Ps of the marketing mix employed by Pidilite.
Marketing Mix of Pidilite
The term “marketing mix” is a foundation model for businesses that includes multiple areas of focus as part of a comprehensive marketing plan. The components of the marketing mix consist of 4Ps, i.e, Product, Price, Place, and Promotion.
So let us go through how Pidilite fares on the parameter of Product, Price, Place and Promotion in the coming sections.
Product Strategy of Pidilite
Pidilite has a strong research and development department which helps it in creating innovative products for the company. As previously said, the company deals in the manufacturing and marketing of adhesives, industrial and construction chemicals, and art materials. It has a wide range of products to offer.
Few of its popular products include the following:
- Dr. Fixit
Price Strategy of Pidilite
Pidilite is a pioneer in its industry with Fevicol responsible for more than 50% of the total revenue of the company. Its potential target audience is constructors, carpenters, plumbers, and housewives.
The manufacturing cost depends on the prices of crude oil and petroleum which keeps on fluctuating. Though being a market leader, the brand faces decent competition in the market.
However, Pidilite has adopted a combination of penetration pricing policy and competitive pricing policy as it helps them to reach every corner of the country along with competing with the prices of its competitors.
The prices for some of their products start from just a mere price of Rs.5 which has helped them in penetrating the market and reach every nook and corner of the country. Their retail margin varies from 12-25% depending on the product.
Place & Distribution Strategy of Pidilite
Pidilite has spread its network all across the country. It has also spread its business in the international market after its success on Indian soil.
Products are available in countries like the United States of America, United Kingdom, Singapore, Bangladesh, Sri Lanka, Indonesia, Egypt, Thailand, United Arab Emirates, China, South Africa, and Ghana.
Pidilite has a widespread distribution network which includes:
- Services of wholesalers
- Logistic companies
- Distributors to reach consumers via the hypermarket
- Discount stores
- Convenience stores
(Image(s) Source: Just Dial)
Promotion Strategy of Pidilite
Pidilite spends a lot of money on its marketing and sales department. The company has always come up with some brilliant advertisements and catchy jingles to win over the hearts of the consumers. With each advertisement, Pidilite has maintained its value proposition.
It has launched ad campaigns in electronic and print media through magazines, newspapers, billboards, radio, and popular television channels. It also advertises through social media platforms like its own website, other shopping portals, social media, and YouTube.
Pidilite is also aware of the impact of a celebrity endorsement on the mindset of the common masses. Hence, it has roped in Indian superstar Amitabh Bachchan to act in its advertisement commercials for Dr.Fixit as a brand ambassador.
A marketing strategy is the backbone of a brand as it is responsible for its major chunk of sales and it can make or break a brand. Therefore, let us move forward by looking at the company’s marketing strategies and campaigns.
Marketing Strategy of Pidilite
A marketing strategy is a long-term plan carried out to promote goods and services using different types of media and platforms. Strategies are long-term plans made to achieve organizational goals. So, therefore they must be planned carefully as they can also be responsible for the brand’s failure.
We all know that Pidilite is the market leader and its marketing strategies have played a crucial role in the process. The major factors that added to the success of marketing strategies are as follows:
- Product Portfolio: The company has a strong portfolio of brands which not only helps Pidilite to penetrate the remotest regions through economies of scale but also helps in increasing the visibility of the brand in the market due to the availability of a large number of SKUs (stock-keeping units).
- Innovative Advertisement Campaigns: Whether it is its ‘Dum Laga Ke’ advertisement or quirky ads involving Bollywood celebrities, the company has been successful in connecting with the local consumer’s mindset resulting in high brand recall.
Pidilite has done substantial research about its target audience and aims at continuing its brand image by providing a variety of products. They understand the message they need to put across through their advertisements for reaching out to their customers.
Let us look at some of the most popular and memorable advertising campaigns of Pidilite.
Marketing & Advertising Campaigns of Pidilite
Pidilite employs a different approach to creating its advertisements. Its adverts have long revolved around being sarcastic, funny and tongue-in-cheek. The advertisements are unique in the sense that each one of them revolves around satire and sarcasm. These adverts make people laugh while being informative at the same time.
While there are several advertisements that Pidilite has come out with, some of them have made a lasting impact among consumers. Let’s look at some of the popular campaigns of Pidilite.
Chehrey Par Mask Aur Do Gaz Ki Doori, Abhi Bhi Hai Bohot Zaroori – A Fevicol Marketing Campaign
Pidilite’s most famous brand Fevicol recently came up with a ‘social experiment’ to portray the importance of social distancing norms when people went out during the pandemic. This campaign of Fevicol was time-sensitive and completely on point for the situation.
The experiment was conducted in one of the food courts of a Mumbai mall. It centres around the chairs and tables that are intentionally left vacant for people to encourage social distancing.
Through this attempt, the brand looked to convey an important message on the importance of social distancing to all the people going out. In the end, it aimed at imparting the message ‘Chehrey Par Mask Aur Do Gaz Ki Doori, Abhi Bhi Hai Bahot Zaroori’.
Todo Nahi Jodo – A Marketing Campaign of Fewikwik
Fevikwik rolled out a television commercial titled “Todo Nahin Jodo” in February 2015. The advertisement portrays two soldiers, one Indian and one Pakistani at the famous location, Wagah border. The crowd on both sides cheered for their respective countries during the flag ceremony.
The two soldiers are seen in a pose where one of their legs is stretched out in the air, the Indian soldier notices that his Pakistani counterpart’s shoe sole has come off and informs him about the same which left the Pakistani soldier embarrassed. Taking matters into his own hands, the Indian soldier uses Fevikwik played in slow motion to fix the counterpart’s shoe sole.
The advertisement ends with both showing respect to each other and the campaign tagline of, “Todo Nahi Jodo”.
The Leakage Man – A Dr. Fixit Marketing Campaign
Dr. Fixit came up with a television advertisement featuring Bollywood film star Amitabh Bachchan. The advertisement aims at creating awareness among homeowners about the need for ‘five-point waterproofing’.
The ad starts with a man flaunting his under-construction house to Amitabh Bachchan with great pride. Just as he is about to show the bedroom, a man appears spouting water everywhere from his body.
Mr. Bachchan introduces the character as ‘Leakage Bhaisaab’. The owner complains to Mr. Bachchan that he is getting waterproofing done on the roof for the house but is still getting issues.
The film star explains to him how water can seep in through not just from the roof but also the bathroom, water tank, foundation, and even the outer walls. In the end, he urges viewers to use Dr. Fixit to get a five-point waterproof solution.
The offerings of the company are widely used and the majority share in the market in the art & craft and constructions & paint chemicals business segment, all thanks to its quality products which has made them the market leader in their industry.
Next, let us have a look at the SWOT analysis of Pidilite.
SWOT Analysis of Pidilite
SWOT analysis is a framework used to assess a company’s competitive position in the market and to develop a strategic plan according to it. The analysis of the internal environment reveals the strengths and weaknesses of the organization and the analysis of the external environment reveals opportunities and threats for the organization.
Here is the SWOT analysis of Pidilite Industries Limited:
Strengths of Pidilite
- The advertising and marketing strategy of Pidilite has been very strong, especially the Fevicol ads which have become a recall value for the brand as they are viral hits
- The name “Fevicol” has become similar with adhesives and has almost become common for anything that sticks, which has also helped other brands of Pidilite to gain awareness and has also helped in their sales
- Brand recall and value proposition are extremely strong for the company and have become the major attraction for many television commercials
- Pidilite has a strong research and development department to cater to the growing need for innovative products and services
Weakness of Pidilite
- Pidilite’s revenue generation is over-dependent on Fevicol and M-seal which results in reduced investments in research & development(R&D) of other brands and businesses
Opportunities of Pidilite
- Focusing more on digital marketing
- The chemical industry in the world is growing rapidly and focusing on emerging economies of the world can help it increase its business presence even further
Threats of Pidilite
- Huge competition in the market
- Watches become a substitute as mobile and wall clocks are available
- The fashion style of users keeps changing with the trend
With this, the case study comes to an end. So, let us summarize in the final section with conclusion points.
Pidilite is the market leader in its industry and has maintained its position for years. It attracts a wide range of people from its advertisements and marketing strategies. It also focuses on R&D and innovation which is also one of the reasons for it being a market leader.
However, in this fast-changing digital world, Pidilite also has up its game in terms of digital marketing. Just like how it has remained competitive in the business world, it has the potential to become one of the best in the digital advertising space as well.
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