Report Prepared by -
PVC Electrical Insulation Tapes
Product specs (general)
– Lengths : 8 - 25 meters
– Widths : 1.25 cm, 1.90cm & 2.50 cm
– Colours : Black, Yellow, Red, Blue and Green
(Used for distinction in phase wiring)
– High (Above Rs.7, till roughly Rs.10)
– Medium (Rs.5 – Rs.7 per tape)
– Low (Below Rs.5 per tape)
– Stickiness of tape
– Good ‘stitching’
– Adhesive should not spread due to heat
– Long lasting adhesion
– Water, weather and temperature resistant.
– Also resistant to acids, alkalis, oils, greases etc.
porter’s Five Forces Analysis
Threat of intense segment rivalry
The adhesive tape industry consists of the major players Pidilite (acquired Bhor Industries), Morgan, Sanghi, Paramount, Chetana Polypack, Fourpillar Corporation, Asia Chemicals and Tesa. The product types are used for packaging, insulation, mounting, protection, medical, stationery or cellotapes). All-India market size is Rs. 600 Crores and is growing at 10% p.a.
Insulation tapes have a market size of Rs. 40 Crores (approx.). These are made of PVC, Polyester, Teflon, Kapton etc. The major brands in the PVC insulation tapes segment are Magic, Miracle, Steelgrip, Anchor, Wonder and Deer.
there are around 200 players in the market (even though most are
industry is experiencing decreased margins on production and faces the
of cheap imports (especially from
Threat of New Entrants
Entry and exit
barriers do exist,
but essentially curtail the larger players . Among the smaller players,
frequently enter and leave the market and thus returns are stable and
low. A multi-brand
market exists, with distinct rungs differentiable by price and quality.
whole, the market exhibits the qualities of an oligopoly. There are a
large number of buyers
and sellers with distinct market leaders. Most retailers stock
multiple brands but tend to push specific preferred brands (based
their margins on different brands).
Threat of Substitute product
is no distinct brand preference. The brand is rarely demanded at
time of purchase, as the consumer typically asks for ‘PVC tape’ or
tape’. The threat of substitutability exists in the generic category
packaging and cellotapes for household use. However, as final household
consumption is minimal and most use is by electricians and
may be ignored. Within the specific segment,
threat of buyer’s growing bargaining
The main differentiator in the
PVC electrical insulation tapes market is the buyers and their
patterns. Thus, it is imperative that a comprehensive analysis be done
consumer. Buyer’s may be divided into the various segments based on
PVC insulation tape is
respect to non-industrial buyers, which
are the prime focus of competition, the product may be sold to the
and then onward through seller-push or to the end consumer (the
auto mechanics etc.) in an attempt to generate demand pull. Due to
significance in their market, these are
threat of supplier’s growing
The raw materials require in the manufacturing process are PVC Films, Synthetic Rubber, Antioxidants, Plastic Resins, Paper Core, Primers, Master Batches etc. Supplier’s bargaining power does not form a significant threat as suppliers are not in a position to leverage their status and raise prices or reduce quantity supplied. Supply of the inputs is essentially in the open market and specific parameters for supply to this industry are negligible, thus reducing supplier differentiation and negotiating power. Moreover, the suppliers are not of a colluding nature, and the cost of switching suppliers is not significantly high.
players in the
Retailer Push – Significant due to low consumer involvement
• Distribution setup –
– Open Market (Region centric wholesalers)
– Salesmen from company distributors
• Large company distributors supply the product along with other products of the company
• Wide difference in price and margins across retailers though relative hierarchy of the same is maintained
• Retail brands stocked vary across areas depending on
– Company distribution width and depth
– Retailer choice of stocked items
• The existence of a retailer push market necessitates stock inventory incentives
– Margin price varies across brands
– Company distributors with multiple products can leverage their position
– Credit on sales (known to be given up to 45 days)
– High among top rung (Steelgrip, Anchor, Magic)
– Prompted among others (Wonder, Kona, Deer etc.)
– Within second rung, awareness restricted to stocked brands
Demand Pull –
• Quality perceptions vary and are not primary parameters in the purchase decision
• Low involvement product.
• No distinct brand leader.
• Huge scope for positioning in consumers mind.
• Consumers tend to stick within price bands depending on price sensitivity as higher priced brands have perceived higher quality
– Restricted to most frequently used brands
– Usually coincides with top rung brands
Ø Age: 20-45 years
Ø Occupation: Electricians, Auto Mechanics
Ø Sex: Male
Ø Religion: Insignificant
Ø SEC: D, C
Ø Family life cycle: Young, single/married.
Raju hails from a
• Works everyday and has a hectic and physically exhausting job.
• Recognizes that he fulfils a need requiring skill and expertise
• He is glad to do so and make a living out of it.
• Has invested many years perfecting his skills
His ‘chacha’ took him
in when he came to
• Operates primarily in a specific area
• Known by his regular customers who also generate business through word-of-mouth.
• He has recently been thinking of purchasing a mobile phone to make himself more accessible
Product related behavioural patterns
• Occasions: Regular user
• User status: Repeat user
• Loyalty status: None
• Readiness Stage: Informed
• Attitude toward product: High use, low involvement