💡 Lessons from the Kingmaker of India's Pencils Industry
This company mastered brand positioning and gained a lion share of India's pencils market!
“The pen is mightier than the sword”, they say.
This is true for pencils as well.
In today's blog, we will see how two pencil brands have crafted a whole empire.
And in doing so, it has created beautiful childhood memories.
Let's dive in.
Nataraj: the everyday essential.
Combining quality with affordability, Nataraj caters to the mass market.
You'll find it everywhere, from urban supermarkets to rural kirana shops.
On the other hand, we have Apsara: the premium proposition.
These pencils are often for those who crave precision in their writing and drawing.
And, of course, for those extra marks for good handwriting!
But, did you know?
The two seemingly rival brands are actually owned by the same company - Hindustan Pencils!
By creating both Nataraj and Apsara, the company has very smartly captured both the niche and the masses.
Here are a few lessons that we can learn.
- Understanding Your Audience
Hindustan Pencils understood the market really well.
It recognised that distinct needs and purchasing power of customers varied across the market.
So, to appeal to a broad spectrum of users, it launched two different brands that cater to different user segments.
- Brand Positioning and Perception
Nataraj is perceived as the everyday choice, while Apsara is seen as the premium option.
This brand perception is not just about the product's quality but also about how it is presented to the consumer.
Packaging and marketing campaigns strengthened these perceptions, guiding consumer choice.
- Price Sensitivity and Market Penetration
Nataraj's affordability allows for deep market penetration, reaching even the most price-sensitive consumers.
Apsara, with its higher price point, targets a niche segment willing to pay extra.
This strategy of having products at different price points ensures that the company can capture a larger market share.
- Risk mitigation
The dual brand strategy acts as a form of risk mitigation.
You see, if one segment of consumers is more affected than the other by market fluctuations, the company's growth is still hedged as it is not relying on a single market segment.
Several other companies have also picked up this strategy. Do you know which companies are those?
Let us know in the comments!
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