The Apsara and Nataraj Story

What was your age when you realise that Apsara and Natraj pencils are from same company??

An enduring memory from our childhood is an advertisement in which different pencil brands race each other, with the Natraj pencil emerging the winner and the tagine ‘Natraj phir se champion’ proclaimed. But my personal favourite being Apsara Extra Dark pencils which ensures a good handwriting and an extra 5 marks (Which I needed the most).

Both the brands captured the essence in their own way be it Natraj ad which ensures the pencil gave a better grip, it would not break and it would write for a longer period than all the rest, it wouldn’t smudge, the lead was blacker and clearer, and the flow, smoother Or the Apsara with the dark edge look.

Hindustan Pencils Ltd follows a dual-brand strategy in the market. The dual-brand strategy is using two independent brands (or sub-brand) to cover the market.

I still remember it is always a fun to find out after sharpening our pencils that it has got pointy points or not, which the brand promises. Natraj and Apsara together control 60-65% of the pencil market in India.

The company’s dual brand strategy of having two independent brands offering almost the same range of products was an intelligent move both the brands have the same range of products that include pencils, erasers, sharpeners, pens, etc. Apsara has a good range of professional and drawing pencils. Apsara Pencils are priced higher than Natraj and offer more options. Nataraj is positioned as a brand that offers long-lasting quality at an affordable price. Consumers from different backgrounds, professionals and others, are thus covered and any competition from other brands is pushed to second place.

https://www.youtube.com/watch?v=YvIwIJ_gmGQ

There were both advantages and disadvantages of having dual-brand strategy. For covering the different segments of consumers and good no. of consumers the strategy is effective. A kid and their parents they remain in a dilemma which pencil will be best and fetch “extra marks” with a “good handwriting”. Also, there were no positioning conflicts as two brands are independent. Moreover, it will create a tough competition for new entrants. It promotes its products among children by conducting inter-school contests and different programs for students.

Although it's users vary from students to architects, carpenters, artists and office-goers, who still use the pencil for various jobs such as writing, drawing, colouring, sketching and shading, thus making the stationery industry one that is still thriving despite the advent of tabs and laptops.

Hindustan Pencils has also diversified into manufacturing crayons, geometry sets, professional pencils, gel and ball pens, chalk, colouring sticks and chalk paints — almost the entire range of writing equipment, to be exact.

The company has gone in for backward integration to produce even the smallest components — such as sharpener blades, screws and pen tips — in-house, to keep to its own standard of delivering only the highest quality and also higher profit margin.

A Viral Too Costly

                                           

As a regularly tuned viewer of entertaining and engaging videos and as marketing student, I always wondered how one of my favourite YouTube channel TVF earns money. Is it just by selling ads and increasing no. of views and subscriber.

As a single camera costs around 4-5 lakhs and with single camera it is very difficult to shoot these videos, there will be location cost, salaries for full team (actors and staffs) along with various other costs.

Will that money for ads and views is enough for all this?????

Digging into this a little more I found an interesting story.

1. TVF had received a funding of 10 million dollars and it is now a 270 Cr business in 2016. But, this company has been established on 2010 how did they sustain this 6 years. So, after repeating this series I realised all the series are sponsored series if you look more keenly they use some products in their show or products are generally kept at background that knowingly unknowingly we seem to see and recognise those products. Unknowingly their product placement is done.

Though till pitchers they have not received any big funding it is funded from their home, but their establishment and the quality of video have actually raised interest among investors to invest in them.

Interestingly!! TVF Pitchers is also based to start-up struggling hard for funding.

2. TVF series was on YouTube primarily but slowly they built their base of subscribers and viewers and shifted them to sign in to their application and website. Also, expenses for apps are much less than YouTube, Smart!! isn't it.

Again, it happened because the youth felt TVF series is very similar to their life, they feel the connectivity and as usual if we see 1 episode our hunger for it doesn't satisfy and automatically sign in TVF website to watch full series.

3. TVF Play now shows 3rd party movie and movie which the youth generally like, if you realise it is slowly becoming the next Netflix of India with a similar website design.

4. Even they have partnered with Ola so while travelling in Ola Prime the screen in front of your seat in cab will have TVF Play options. Which youth will generally tend to choose if they are travelling for longer distance and an addict of web series like me.

Indeed, Arunabh Kumar, the founder of TVF has appropriately designed his business model with proper brand integration inspiring others and showing them new ways of doing business and how a small YouTube channel is becoming India's new Netflix.