creative-flicker case study

8/3/2019 Creative-Flicker Case Study

http://slidepdf.com/reader/full/creative-flicker-case-study 1/9

Copyrights Reserved by & NEEV 2011 Symbiosis Centre for Management & HRD

Creative Flicker




Creative Flicker

Pidilite has been a pioneer in developinginnovative products that have become household

names. It has strong portfolio of brands like

Fevicol, M-Seal, Fevi Kwik, Dr. Fixit, Roff, Fevicryl

Hobby Ideas, Ranipal etc., which command top of

the mind recall among consumers and business

class categories alike. The journey started in 1959,

when the Company laid its foundations with

innovation in the form of Fevicol – path-breaking

synthetic white resin adhesive. It meant freedom

from cumbersome animal fat glue for binding

woodworks. To this day, Fevicol remains the first

choice of carpenters and has become synonymous

with bonding.

The company has introduced several new product

brands like Woodlok, Roff, and Smartcare catering

to construction, healthcare and hospitality

segments in the recent past and continues to focus

on introducing variants of its existing brands. The

company is growing its international presence and

has acquired well established brands like Roff ,Motomax and Cyclo. The company believes in

constant innovation through new products,

packaging to improve the consumer experience in

product usage.

Its ads are also well known for its creativity and

has had very memorable and entertaining

communication particularly for ‘FEVICOL’ - Be it a

politician glued to his chair, the hen that laid

unbreakable eggs, to the overflowing bus, or the

‘Moochwali’ advertisement – all the commercialshave been loved and appreciated by consumers.

The ads have won lot of accolades at various

prestigious festivals for their creative excellence

such as the Golden Abby Award in 1999.

The Company’s sales have grown at a CAGR of

17.85% over the last five years. For the financial

period 2010-11, the Company achieved 22.9%

growth in sales, 28.5% increase in PBT and 12.1%

increase in Profit after Tax(y-o-y).

Pidilite has been renowned for bringing innovative

products and creating new markets. Continuing

the trend forward, Hobby Ideas came into

existence as India's first and finest chain of art,

craft and hobby stores. This is the first retail chain

of its kind in India. But similar concept has been

quite a success in US and other countries

(Michaels and Hobby Lobby). Art, Craft & Hobby is

a highly evolved market internationally with its

market estimated at around $ 65 billion across the

globe, with $30 billion+ in US alone. There are

dedicated Hobby & Craft retail chains like

Michaels, Hobby Lobby, Hobby Craft which have a

cumulative turnover of around $ 16 billion.

People in US believe in productive usage of leisure

time. They want their kids to involve in activities

which help improving the creative skills of their

kids. It is also a perfect leisure time activity for

women and adults.

In India the Hobby Craft market estimated at

around Rs. 100 cr. & is growing rapidly. The major

concern with the Indian market is that

unorganized players constitute the major chunk of the market and hence there is no authenticated

product supply.

In the past 5-6 years Hobby Ideas has grown like a

promising baby of Pidilite Industries. Hobby Ideas

offers a range of more than 2500 products across

various categories from different countries all over

the world. The products are complemented with

books, videos, finished articles, projects and

workshops that make Hobby Ideas a unique and

ABOUT THE COMPANY

ABOUT HOBBY IDEAS




Creative Flicker

complete experience for art, craft and hobby

enthusiasts in India.

At present it has set up their Hobby Ideas stores in

Mumbai, Pune, Nagpur, Ahmedabad, Surat,

Kolkata and also sells through Staples at Bangalore

and Noida (pictures in exhibit 5). These stores not

only sell their own products but also other

companies’ products similar to concept followed

by Hobby retail stores abroad. The store in

addition to providing materials, also strives to

educate consumers about hobbies and crafts that

are prevalent globally through extensive in-store

activities including workshops, demonstrations,

training etc.

Workshop program is a very important aspect of

hobby ideas. It not only targets new users to try

and learn the hobby and craft but it also retains

the existing customers with new craft category

demonstration. It gives the experiential touch to

the store and a creative and productive junction

for the kids

TARGET GROUP FOR HOBBY IDEAS

The primary target segment for Hobby Ideas is

women in the age of 25-44 years belonging to SEC

-A/B and children in the age group of 4-18 years

who they believe would trigger purchases and

influence buying intentions as they would need

material for craft work. Pidilite also noticed that

the store witnessed frequent visits by people who

were using these hobbies in their profession or

even for small scale home based employment. The

psychographic profile of the target group is given

in Exhibit 4.

Unlike the western part of the world, where art

and craft is promoted as a part of school

curriculum and is considered an indispensable

activity during kids’ early developmental years,

Indian population lies on the other end of the

spectrum. In India, even though hobbies like arts

and crafts are increasingly being adopted by school

administration in order to add some fun aspect to

learning, the segment of believers in this approach

seems to be small. The overall effectiveness of the

approach also depends on the parents of these

kids, who currently do not see much value in art

and craft.

The urban population has been exposed enough to

recreational activities and options to spend their

free time on. The cities are now flooded with hang

out joints, multiplexes, restaurants and parks and

hence an upper class or an upper middle class

family finds enough options to choose from for

their weekend outings. These outings costs them

heavily and most of the money is spent on non-

value add items like junk food.

Hobby Ideas intends to bring in a shift in pattern of

expenditure in terms of time and money among

the households. Success of the concept lies in

acceptance of the Indian population for

importance of hobby activities in regular day to

day life. It has to break the shackles of the Indian

mindset and a reordering of priorities and

reallocation of resources will go a long way in

achieving this goal.

Six years into the market, Hobby Ideas team wants

to realign its strategy to position its products, in

order to win the hearts of Indians. They want their

audience should be able to see as much value in

recreational activities like arts and crafts, as

currently seen in facebook, twitter and texting on

the go. This hobby revolution should encourage

the target group (aged 8-18 years) as well as

influencer group to spend time on hobbies to add

quality to their lives.

The concept, so far has exploited the retail channel

to promote and sell its products in addition to a

few multi-level initiatives for marketing of

products. With an intent to decrease dependency

on current investment- intensive channels, there is

a realization to exploit new and unexplored means

and channels to promote the concept and hence

the products. The range of do-it-yourself products

often require experiential trigger to convert to

PROBLEM STATEMENT




Creative Flicker

sales, which calls for a multi-pronged approach

and communication strategy.

Hobby Ideas is a mix of product and concept,

therefore its advertising alone won’t serve the

purpose until there is no culture at large for hobby

and crafts. And training people for hobby also will

be of lesser use until the product category’s usage

and familiarity is developed.

The challenge with the company is how to make

hobbies a household activity in India?

The first opportunity that ‘Hobby Ideas’ sees is a

MLM(Multi Level Marketing) strategy, where

Hobby ideas can train people in various hobbiessay glass painting and make them opinion leaders

for hobby and crafts. They in turn will train others

and thus create a down-line of trainers. This may

help to profuse the spirit of hobby and craft in the

country. It can also act as a source of revenues for

them.

The second possible opportunity which the

company sees is the remarkably sizable population

of housewives in India. Suggest how hobby

ideas can leverage the housewives section who

can be a great contributor in building the hobby

culture and also find an alternate profession for

them. A fraction of a day’s time by housewives has

proved very effective in businesses like papad’s,

pickles, knitwear and handicrafts.

The third possible opportunity is related to the

retail space of hobby ideas. Generally, the sales

and performance of a retail chain is considered

proportional to the retail space acquired by the

chain and its spread within a region and the

country. How can a business model be made

for hobby ideas where the retail space is not a

necessity for the sales of its products? Can we

leverage any other medium for sales through

which people can know easily about the product

usage and demonstration so as to be regular users

or new users for hobby ideas products and stay

with the company .’Hobby ideas’ needs to

generate more leads and sales without

proportionate increase in retail space.

If you think any one of the above stated idea or a

combination of ideas or all over a new idea can

help hobby ideas achieve its required goal of

fostering hobbies as household activity and

increase its business by reaching its target

audience, and thus give a structured, feasible and

implementable plan for the same.

The vision of Hobby Ideas is to grow 5X in 5

years. Keeping this in mind and the above stated

facts and opportunities suggest:

What model it should follow?

What will be the goal of the model?

A brief synopsis about the working of the

model and its implementation.




Creative Flicker

Exhibit 1:

Exhibit 2: Indulgence in Leisure Activities in 2010 (Insights)

On an average day, nearly everyone age 15 and over engaged in some sort of leisure activity,such as watching TV, socializing, or exercising. Of those who engaged in leisure activities,men spent more time in these activities (5.8 hours) than did women (5.1 hours).

Watching TV was the leisure activity that occupied the most time (2.7 hours per day),accounting for about half of leisure time, on average, for those age 15 and over. Socializing,such as visiting with friends or attending or hosting social events, was the next most commonleisure activity, accounting for nearly three-quarters of an hour per day.

Men were more likely than women to participate in sports, exercise, or recreation on any

ANNEXURE




Creative Flicker

given day--22 percent compared with 16 percent. On the days that they participated, menalso spent more time in these activities than did women--1.9 hours compared with 1.3 hours.

On an average day, adults age 75 and over spent 7.7 hours engaged in leisure activities--

more than any other age group; 35- to 44-year-olds spent 4.2 hours engaged in leisure andsports activities--less than other age groups.

Time spent reading for personal interest and playing games or using a computer for leisurevaried greatly by age. Individuals age 75 and over averaged 1.1 hours of reading perweekend day and 18 minutes playing games or using a computer for leisure. Conversely,individuals ages 15 to 19 read for an average of 6 minutes per weekend day while spending1.1 hours playing games or using a computer for leisure.

Employed adults living in households with no children under 18 engaged in leisure activitiesfor 4.5 hours per day, nearly an hour more than employed adults living with a child under age6.

Exhibit 3: Importance of indulgence in Leisure activities

More leisure time means more health, happiness: Times of India, Aug 14, 2009

A new study has confirmed what many people already knew: the more time spent doing different types of enjoyable activities, the better a person's health tends to be.

The study says taking time for leisure activities apart from the demands of work and other

responsibilities helps people function better physically and mentally.

"People who are engaged in multiple enjoyable activities are better off physically and psychologically,"said study co-author Karen Matthews, Ph.D. She is a professor of psychiatry, epidemiology andpsychology at the University of Pittsburgh School of Medicine.

The study appears online in the journal Psychosomatic Medicine: Journal of Biobehavioral Medicine.

To reach the conclusion, 1,400 adults reported how often they participated in a variety of leisureactivities, including spending time unwinding, visiting friends or family, going on vacation, going toclubs or religious activities or playing sports.

Adults with higher scores—

indicating the most time spent in different leisure activities—

had lowerblood pressure, waist circumference, body mass index and cortisol measurements, all markers ofgood health.

"When one is under stress, the usual thing is to cut back on enjoyable activities because you'refeeling uncomfortable and you need more time to deal with the stress. But these data suggest that isthe wrong thing to do and that continuing enjoyable activities you do can be helpful," Matthews said.

People who spent more time doing diverse leisure activities also reported stronger and more diversesocial networks, more feelings of satisfaction and engagement in their lives and lower levels ofdepression. Those who logged the most leisure time also slept better and exercised moreconsistently, the authors say.




Creative Flicker

Exhibit 4: Psychographic profile of target consumers

Kavita is a 14 year old student of 9th

standard at St. Marks School, Delhi

She has a deep interest in art but with the pressure of studies increasing on her she has stoppedpursuing her hobby

She spends the first half of her day at school, comes back, rests and goes and tuitions in the evening

When asked what she does for her spare time, she says she has to study a lot but watches TV andgoes with her family to watch a movie in her spare time

She says art and craft used to be a subject in her school till class 6 but after that her time spent onthese activities has reduced

Kavita really likes handmade gifts and cards and has also tried out hand made rakhi for her brother

Sonal is a 35 year old housewife living in the suburbs of Mumbai. She has a son who studiesin 4

thstandard

Sonal spends most of her time doing household chores and when her child is at school, she oftendoes stitching and knitting in her spare time

She had once learnt painting and had thought of teaching the same to a few neighborhood girls andearn some additional income for her family

Having tried craft work once, she felt that it takes a lot of time and dropped the idea later

Though she often helps her son in his art and craft work but wants him to pursue sports andcomputers as a hobby which she feels will be better for her son

Sourabh is a student at an engineering college. As a part of extracurricular activities, he isalso a member of the Art& Photography Club and Rotaract Club in his college

Sourabh joined Art & Photography Club but soon lost interest in the activities as he started focusing

more on his engineering studies

He started doing photography in his spare time but perceived art to be for girls

In his college festival, he appreciated the way other students prepared hand made cards for theirfriends in a competition and decided to make one himself

However, in the middle of peer pressure he dropped the idea of spending time on craft work evenwhen he personally enjoyed it




Creative Flicker

Exhibit 5

For further details on the categories, visit www.hobbyideas.net

Elimination Round 1: Submission of an extract in not more than 1000 words on your understanding of theissue and the questions involved.

Each team will comprise of 2 members from the same institute.

A student cannot be part of more than one team.

One team can submit only one entry.

Only students of full time MBA can register.

There is no restriction on the number of teams from an institute.

The participants should submit the abstract in pdf format.

Rules and Regulations

http://www.hobbyideas.net/







Creative Flicker

Each entry should have a cover page mentioning team name, participants, e‐mail ids and

mobile nos. of the team member(s) and the name of the institute they belong to. The format

for the same has been mentioned under.

Font Details: Times New Roman, 12 point, 1.5 line spacing

Word Limit: 1000 Words

The case deliverables have to be mailed at “[email protected]”. Participants

shall receive an acknowledgement within 24 hours of mailing their entries.

Last date to submit the abstract is 2nd December 2011, 23:59:59 HRS.

All the files mailed should follow the format Creative Flicker_<Team Name>_<College

Name>

The subject of the mail should be of the format Creative Flicker _<Team Name>_<College

Name>

The mail should contain the following details of the team members –

Sr. No Participant Name E-Mail ID Phone No

1

2

The name of the participants, college name etc. should be mentioned only on the cover page and

nowhere else in the entire document. Failure to adhere to this clause will result in automatic

disqualification.

The shortlisted teams will be invited on campus for subsequent rounds.

For any queries regarding the case write to us on [email protected]

Or Contact

Avijit Kumar Singh +91 7709407813

Prashant Nandakumar +91 8975767568

mailto:[email protected]



creative-flicker case study

Documents