What was your age when you realise that Apsara and Natraj pencils are from same company??
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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.
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.
I was today-years-old :P
ReplyDeleteWell written, with insight business strategy :)
Nice post..
ReplyDeletePersonalised pencils can be purchased to welcome old habits into our new lives. Not only are they economic but also an environment friendly choice over plastic pens. Surprisingly, we can purchase them in many wonderful designs these days.
Sukhnandanpasw7gamill
ReplyDelete