Target Group:

Fevicol is offering their products to large markets, hence it is using Mass targeting technique.
Mainly they are targeting following groups:

• Carpenters

• Architects

• Wholesalers

• Retailers

• Household owners

• Students

Competitors:

Fevicol enjoys market leader position in adhesive market though it competes with companies in
the market based on various factors such as availability in the market, packaging, SKUs.
Following are some competitors:

• Araldite

• Bondtite

• Loctite

• Movicol

• Camlin

• Local manufacturers
Fevicol has positioned it's brand according to different parameter of 4P's as per the following
diagram.

Premium
Price Low-price
Value

Intensive
Place Exclusive
Selective
Brand Positioning
Powerful
Promotion Fun
Prestige

Premium
Product Basic
Durable
Discounting strategy of Fevicol:

Fevicol is providing two discounts strategy- Volume discounts and Order discounts

Volume discounts: A volume discount is a financial incentive to encourage individuals or

businesses to purchase goods in multiple units or in large quantities. In the case of fevicol, it has
created 'Fevicol Champion Club' for carpenter community where they give training, futniture
design, books etc to carpenters. Also in such gatherings, they are giving volume discounts to
carpenters for selling large volume of fevicol.

Order discounts: Order discount is to give cheaper price than usual offered so that people buy
offering in bulk. Fevicol gives order discounts to it's dealers and wholesalers in order to sell the
product in large quantity. Percentage of order discounts are depend on time and order quantity
that is registered.

Pricing strategy of fevicol in comparison to competitors:

When Fevicol was introduced it was new to segment entry and competitors were absent. But
slowly and slowly competitors like Bluecoat, Vamicol, Kiktcol , Falcofix , Araldite have started
effecting them. To deal with them they have launched various new versions so that they can
compete with competitors in this non-interesting and non-involving category like adhesive.

They have also started acquisitions of other competitors.

- It made its first buy in 1999, paying Rs 4 crore for the Ranipal brand from Indian Dyestuff
Industries.
- The next year, it bought M-Seal and Dr Fixit from Mahindra Engineering & Chemical
Products
- Two years later, it bought Steelgrip from Bhor Steelgrip Tapes, followed by a construction
chemical brand, Roff, in 2006
Fevicol has came into market by mid-level premium pricing and still dealing into the same
segment. Comparison of fevicol's price with some of it's competitors is as follows:
Cost-based pricing: Fevicol follows variable cost based pricing.

Market segmentation:

Demographic Segmentation- divides the market into groups based on age, gender, income,
family size, occupation, education, SEC etc

Marketers have gone for Market specialization for Fevicol – Eg: carpenters, craftsmen, etc.
Products belonging to different categories exist as choices for the target group they focus on.

Behavioral Segmentation- divides the market on the basis of the groups attitude, knowledge, use
or response towards a product. Eg: Need based segmentation, Role in decision buying process
based segmentation, User and Usage based segmentation.

Fevicol has been segmented for customers looking for economic products with quick solutions to
their problems and for those who need it regularly.
Psychographic Segmentation- divides the market on the basis of psychological/personality traits,
lifestyle or values.

Also the prices are clearly differentiated according to the segments. Generally fevicol is dealing-
in mid level premium pricing. But fevicol offers different prices for different segments like it
offers premium pricing for it's variant SpeedX, Fevicol Marine, Fevicol HeatX etc. All of these
variants are need based and used for special purpose.

As Fevicol is a market leader holding 66% market share, the firm has a flexibility to either raise
or cut down the prices for it's offerings. But as crude oil is used as a raw material of white
adhesive and price of crude oil is increasing day-by-day and thus price of Fevicol products will
be hiked.