CHAPTER 1

INTRODUCTION
The project has been made on the market research done on the retailers, customer and
consumer of Nataraj pencils (the customers being the mothers and consumers being the
children especially from Nursery to Class 4). The research has been undertaken with the
objective of studying the changes in the buying and usage behaviour of the consumers of the
Nataraj pencils. The research consists of 3 main target groups that are the retailers, the
consumers (or kids) and the customers (or mothers).
The relevance of the research is to understand the changing mindsets and perceptions of the
target groups about Nataraj pencils and various other factors. These factors include factors
affecting the decision of buying pencils, frequency of buying pencils, quantity of pencils or
stationery being bought etc. The knowledge that will gained by studying the observations and
data collected through the research will help Hindustan Pencils Ltd. to improvise its Nataraj
brand as per the changing needs, perceptions, wants and buying pattern of the consumers,
customers and retailers. This will indirectly help the company to increase its market share
among the whole stationery industry by modifying the existing products and introducing
certain new products to better address the needs of its consumers and stakeholders.
The research done on the retailers or the stationery shops will help the company to
understand the market from the perspective of the seller who is in direct contact with the
customers. It will not only focus on the expectations that retailers have from the company for
their own benefit but will also give an insight about the feedback that these retailers get from
their regular interaction with customers(mothers and kids).
The research done on the customers of the Nataraj pencils i.e. mothers will help the company
to know what the parents think about Nataraj pencils. In other words, company can get to
know what parents or mothers demand for their children, which affects their decision of
buying pencils for their kids, what are their views about Nataraj pencils and what is the new
trend of buying stationery items that is present among them. The research on the customers

has been conducted in 2 ways: Through questionnaires and through experiential marketing
i.e. by visiting Super Markets and Hyper Markets.
The research done on the consumers of the pencils i.e. kids upto class 4 will help the
company to know the demands and the mindset of the new generation. The methodology
used for this research is primary research done with the help of questionnaires filled through
personal interview with the retailers, customers (mothers) and consumers (kids).

1.1CONCEPTUAL BACKGROUND
DEFINITION
Consumer buying behaviour
Kotler and Keller (2011) state that consumer buying behaviour is the study of the ways of
buying and disposing of goods, services, ideas or experiences by the individuals, groups and
organizations in order to satisfy their needs and wants.
Consumer behaviour has been always of great concern to marketers. The understanding of
consumer behaviour assist the marketer to get the knowledge on how consumers imagine,
perceive and choose from alternatives like products, brands and the like and how the
consumers are affected by their environment, the reference groups, family, and seller and so
on. A consumers buying behaviour is influenced by social, cultural, personal and
psychological factors. Most of these factors are unmanageable and beyond the hands of
marketers but they have to be considered while trying to analyse the complex behaviour of
the consumers. Consumer is the study of the processes involved when individuals or groups
select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs
and desires (Solomon 1995, 7). In the marketing context, the term consumer refers not
only to the act of purchase itself, but also to patterns of aggregate buying which include prepurchase and post-purchase activities. Pre-purchase activity might be composed of the
growing awareness of a need or want, and a search for and evaluation of information about
the products and brands that might satisfy it. Post-purchase activities include the evaluation
of the purchased item in use and the reduction of any anxiety which accompanies the
purchase of expensive and infrequently-bought items. Each of these has implications for
purchase and repurchase and they are amenable in differing degrees to marketer influence.

1.2 SCOPE OF STUDY

This will help Hindustan Pencils Ltd. to improvise its Nataraj brand as per the
changing needs, perceptions, wants and buying pattern of the consumers and

customers.
This study will help the company to know about what are the factors on which the
retailers behaviour depends upon while choosing their product.
This study will help the company amend their decision making process and their strategic
formulation.

1.3 STATEMENT OF THE PROBLEM

To study the consumer buying behavior and retailers prospective of Nataraj Pencils.

1.4 INDUSTRY PROFILE

THE INDIAN PENCIL INDUSTRY
The prospect of domestic pencil industry looks promising, in keeping with the high user
demand. Meanwhile, imported pencils, particularly from China sold at relatively cheap price
are flooding the local market resulting in fairly severe competition.
Pencils are used to write and draw by school children from kindergarten up to college. In
addition, pencils are used by architects to make drawings of construction. While the academic
segment remains the single largest user of pencils, there is a sizeable demand from the
specialized segments too, such as from drawing, glass marking and cosmetic pencils sectors.
While Maharashtra-based companies account for 70 - 75 per cent of the pencils manufactured
in the country, Delhi-based units make about 10 - 15 per cent. One dominant player whose
brand is sold across the country has three plants with a total capacity of 5,000 units per day.
With their staying power and economies of scale, the larger units are slowly edging out the
smaller units.
Though competition drives the stationery market crazy for new products it has it's plus side
too as this way the consumer gets the best suitable product he wishes to buy in different price
ranges and gets to choose the best out of the platter displayed in front of him. The
manufacturer too gets benefited by competition, he enjoys the healthy competition as it

always keeps him alert on his job and helps him produce the best possible output in the
market which leads to better sales.
Though there is no particular brand ruling the market, some big Indian companies like
Camlin Ltd., Hindustan Pencils Ltd., Sundaram Multi Pap Ltd., Pidilite Industries Ltd.,
Kangaro Ltd., Navneet Publications (India) Ltd., Jineshwar Writing Instruments (Montex),
ADD Corporation Limited (Add Gel), etc have made their mark and have a strong hold on
the stationery market back at home. First these companies had to face the competition only
from cheap Chinese goods which were a threat to the Indian organized stationery sector, but
with the advent of international brands like Faber Castle, Kores, Maped etc, the market has
become highly competitive in both quality as well as price. Everyday this market is on its
heels in creating innovative products and ideas which would capture the notice and
preference of their customers.
It seems that it is the only tool left to survive in this competitive sector. Especially with
children as their target customers these stationery manufacturers should be well updated and
latest happening in the children world, which games or cartoon characters are the children
currently fond of? What is the latest development in the field of education? All this
information will keep the manufacturers and suppliers at par with their customers likes and
dislikes and eventually this will help boost the brand and create a good demand for the
product in the market. It is seen that along with brand building techniques other factors like
trade marketing & strengthening the distribution channels also helps the company to grow.

GLOBAL STATIONERY INDUSTRY

Worldwide stationery industry is an absolute heterogeneous business which includes the
paper industry as its primary segment. This industry has demands in schools, colleges, offices
and any business irrespective of their industry natures. Most of the people might term this as
a small industry but it is no more a small size business when taken the global front. The
demands for these products have grown by many times in the last few years and there are
some specific factors which act as the driving forces for the enhancement of the sector.
Sources like schools, colleges, offices (mainly govt agencies) are prime client base for the
industry.

The constant changing trends of the products and continuous innovative styles adapted by the
manufacturers are keeping the industry highly competitive. North America and European
countries represent the most market demand for the products. Besides these markets; the
Asian Pacific markets indicate largest growth potentials and are projected to grow further by
many bounds in the nearing future, this region includes a group of growing economies and
thus the sector is estimated to rise by a good number. Experts predict a CAGR growth of
about 3.4% by the end of 2015 which is noted to be a positive mark for the phases beyond.
The global stationery market is forecasted to be worth $155.4 billion by the end of 2015 and
the emerging markets Asia and high demand regions in parts of America and Europe are
projected to be the largest contributors. Countries like India and China are projected to have
an industrial increase of double digits (an estimated 10 to 15%).

INDIAN STATIONERY INDUSTRY

Small and Medium Enterprises play a vital role for the growth of Indian economy by
contributing 45% of industrial output, 40% of exports, 42 million employments, create one
million jobs every year and produce more than 8000 quality products for the Indian and
international markets. As a result, MSMEs are today exposed to greater opportunities for
expansion and diversification across the sectors. The emergence of new technologies has a
mixed impact on various industries. With new technology and falling prices for computers,
printers and software are reducing the cost of business mail communication; on the other
hand, focus on education by governments of various developing countries has increased the
demand of stationary and paper products substantially.
Stationery Industry is a very heterogeneous group of business usually associated with the
Schools, Collages, and Office and plays a very crucial role in working of any organization
across the globe. It includes Paper stationery which comprises of a vast collection of products
like exercise books, note books, stitch, glued & tape pads, refill pads, flap over pads, subject
books, plastic cover books etc. The huge greeting card market, autograph books, party invites
etc, is also a part of this segment.

OPPURTUNITIES AND CHALLENGES

In the international arena India is providing more scope for development and trends;
however, with excellent quality, the Indian products are very much in demand. The Indian
SMEs associated with stationery market has witnessed tremendous dynamic changes. In the
last decade the Indian market has increased varieties to be exported in markets and has
produced big market percentage.
Indian companies have learnt that innovation, performance and versatility are the key area to
be focused upon. Taking the points under consideration, the businessmen are now researching
and developing new products, as the market is now more of consumer oriented which is
always looking for cost effective prices. This is because of the attitude of buyer which is now
ready to spend more if are liable product is offered to him.
With seasonal export market which stays from April-June major importing countries like
U.S.A., Australia, Canada, major African countries and Middle East are the ones which
accept Indian designs and style comfortably. With extreme precautions, and the good quality
products offered and new marketing strategies are followed, the government has also come
out with various incentives for SMEs.
Particularly for stationary industry if we quote would be the education enhancement schemes
which are giving growth to this sector. The Indian stationery market is also influenced by
macroeconomic development, national income and lasts but not the least the ever-growing
Indian population. The Indian stationery Industry is highly unorganized and the organized
players are estimated to be less than the unorganized sector players due to which unorganized
stationery players are expanded throughout the industry and controls major market share.
However, Indian stationary industry is facing major competition from the Importer especially
Chinese manufacturers are the most competitive among all the otherworld market players as
they have an advantage of mass production capacity, aggressive favorable government export
policy, simplified low taxation and well developed infrastructure.

INTROSPECTION
Indian businessmen involved in the business of stationary items needs to work on proper
research and development of the sector. Design, Colors, Quality, Themes, reaching the right
partners and to find out new markets for their products should be on their agenda.
Government at their level is taking initiatives; however, to bring in a spurt in the trade there is
a need to focus on providing assistance to businessmen for buying good machinery, necessary
infrastructure should be provided, to enhance export activities, workshops, conferences and
training programs should be conducted at state and national level. Logistics is also a key
concern that goods should reach on time which helps in maintaining a relationship with
various customers across the globe.

1.5 PROFILE
HINDUSTAN PENCILS PVT LTD.

Fig 1.1 Hindustan Pencils Pvt. Ltd.

Hindustan Pencils is one of the leading primary school stationery products manufacturing
company in India. Since its inception in 1958 they have mastered the art of making quality
stationery products which covers pencils, sharpeners, erasers scales and pens. All the
products conform to European CE-EN 71 safety standards. The brands Apsara & Nataraj
are quite popular and have emerged as household names. They are having their presence in
global markets exporting the products to over 50 countries.
In 2013, Hindustan Pencils continued to lead writing instruments with a value share of
10%.The Companys position can be largely attributed to the pan-Indian presence of its Nataraj
and Apsara brands. The company also launched various writing accessory products under the
Nataraj brand. The company has maintained its leading category position mainly thanks to its
strong distribution network and the brand loyalty consumers have towards its flagship brand
Nataraj, which is almost considered synonymous with pencils in India.

Sustainable Business

Fig 1.2 Sustainable Business

HPL is making conscious and continuous efforts in improving processes and maximising
utilization of inputs to prevent degradation of environment. All ingredients used by the
company are non toxic in nature. Wood is one of the main inputs for pencils. They have their
own wood plantation to ensure renewal of this precious natural resource. They have switched
over to eco-friendly water based lacquers and PVC free formulations.
The commonly used raw materials in pencil manufacturing are 40 in number. Apart from
wood, the others used graphite and clay. Hindustan Pencils strongly believe in a greater
responsibility towards society and in betterment of quality of life of stakeholders. Their
commitment to this responsibility is realised through their contribution to the preservation of
trees instead of thoughtlessly plundering trees for pencils manufacture. HPL strives to protect
Indian bio-diversity and to maintain ecological balance. For this they had gone renewable
sources of timber by producing their requirement from those who either grow trees on their
farms, land or in the courtyard at their residential premises rather than relying on forest
grown timber.
As a part of HPL commitment to Indias national policy of increasing the forest cover, they
have developed their own timberland. They have adopted scientific practices of cultivating se
tree crops and selected suitable tree spices which can grow within a cycle of 7-10 years,
which grow on climatic and ground water resources. The wood farming lay emphasis on
planting superior disease resistant and fast growing clones, which improve land productivity,
quality timber yield and maintain ecological balance on sustainable basis.

Corporate Social Responsibility

Fig 1.3 CSR

Hindustan Pencils believes in a greater responsibility towards society and in the betterment of
the quality of life.
They have established institutions to provide education, professional training and
accommodation facilities to girls in India:
Hindustan College of Arts and Commerce
Triveniben Jamnadas Girls High School
Nataraj Education Trust
Their company is also associated with few other noteworthy institutions.
Nataraj Research Center & Training College Bhavnagar, Gujrat: The institute provides
quality teacher training in the areas of rehabilitation, paramedical and special education on
cerebral palsy, mental retardation, hearing impairment and other impairments.
Nataraj Special School for Children with Cerebral Palsy Bhavnagar,Gujrat: The
institute has been providing treatment and education to about 200 children.
KLJ Institute of Deaf and Dumb: The Institute conducted rural program for polio
corrective surgery in Gujarat, examining over 4 lakh children and performing 1.5 lakh
surgeries. It also carried out Rubella vaccination of young women from 13 to 35 years of age
to prevent birth of children with congenital anomalies.
MISSION
Delighting consumers with globally recognized stationery.

DISTRIBUTION
Hindustan Pencils manufacturing capacity at 5 locations across India is supported by an
impressive distribution network which ensures that their products are available to every
household in India.
31 Depots/main stockists, 2500 distributors, 225000 retail outlets and a formidable field force
complete the supply chain. Their depots are spread across the length and breadth of the
country.

GLOBAL SALES
HPs commitment to quality, competitive pricing and its enormous manufacturing capacities
have carried their products well beyond Indian shores. At present, they export to over 50

India, Russia, Turkey, Greece, Portugal,

Egypt, Australia, Malaysia, Phillipines,
NATARAJ / APSARA:

Bangladesh, Srilanka, Nepal, Myanmar,

Saudi Arbia, U.A.E., Bahrain, Oman,

BLACK LEAD PENCILS, ERASERS,

Yemen, Syria, Jordan, Egypt, Kenya,

SHARPENERS, COLORS

Tanzania, Uganda, Ghana, Brazil,

Argentina, Peru, Paraguay, Uruguay,
Mexico etc.

countries.

1.6 PRODUCTS PORTFOLIO

BRAND: NATARAJ

Fig 1.4 Nataraj

PENCILS

Fig 1.5 Nataraj Pencils

Nataraj 621

Nataraj 621 Triangle

Nataraj Platinum

Nataraj Gold

Nataraj Bold

Nataraj Metallic

Nataraj Metallic Triangle

Nataraj Pixy & Petals

Nataraj Triga

Nataraj Marble

Nataraj Neon

Nataraj Neon Round

Nataraj Neon Triangle

Nataraj Pop & Joi

Nataraj No. 2/HB

SHARPNERS

Fig 1.6 Nataraj Sharpners

i-flip Eraser+Sharpener

Nataraj 621

Nataraj Neon

Nataraj Neon Heart

Nataraj Neon Round

Nataraj Press Fit

Nataraj 700 Tidy

Nataraj Absolute

ERASERS

Fig 1.7 Nataraj Erasers

621 Plasto

Non-Dust Regular

Non-Dust Jumbo

Neon Mini

Neon Big

Trio Eraser

SCALES

Shatterproof 30 cm

Deluxe 30cm

Deluxe 15 cm

621 Scale 30 cm

621 Scale 15cm

Neon 30 cm

Neon 18 cm

Neon 15 cm

Irule 30cm

Irule 20cm

Geometry Set

Set Square

Set Square 45

Set Square 60

COLOR PENCILS

Fig 1.8 Nataraj Colour Pencils

Half Size

Full Size

Triangle Full Size

VIVID Round Full Size

Jumbo Hex Full Size

Jumbo Triangle Full Size

PROFESSIONAL PENCILS

Colour Copying Pencils

Glass Marking Pencils

Checking Pencils

Drawing Pencils Artists

Drawing Pencils Engineers

BALL PENS

Nataraj Classic

Nataraj Glow

Nataraj Mist

Nataraj Apace

Nataraj All grip

Nataraj All spark

Nataraj Dew

Nataraj Superx

All black

Grippo

All Rounder

Snapper

GEL PENS

Gelix

All Rounder

CUTTERS

Mini Cutter

Handy Cutter

Classic Cutter

Big Cutter

BRAND: APSARA

Fig 1.9 Apsara

PENCILS

Platinum Pencils

Platinum RT Pencils

POP Pencils

JOI Pencils

Triangle Metallics Pencils

Triga Pencils

Beauty Pencils

Gold Pencils

Absolute Pencils

Steno Pencils

ERASERS

Non Dust Regular

Aps Non Dust Large

Non Dust Jumbo

RAL Big

RAL Mini

Tidy Up Eraser / Sharpener

SHARPENERS

Long Point Sharpener

Tidy Sharpener

Tidy Up Eraser / Sharpener

SCALES

Deluxe 30cm

Deluxe 15cm

Shatter Resistant

Mathematical Instrument Set

PROFESSIONAL PENCILS

Drawing Pencils Artist

Drawing pencils Engineers

Glass Marking

Colour Copying

CHALKS

Aps Chalk -White

Aps Chalk -Assorted

COLOR STICKS

12 Wax

16 Wax

24 Wax

Jumbo Wax

Oil Pastels

PAINTS

Poster Colors

Water Colors
BRAND: COLORAMA

Fig 1.10 Colorama

Hindustan Pencils Ltd. under its flagship brand Apsara introduces COLORAMA, a new range
of colours for students. The products are created keeping in mind that art and the use of
colours develop a child's creativity. To engage children in art, the material should be of the
best quality and easy to use. COLORAMA range has been developed after extensive research
among children, art teachers and artists across the country on important parameters like
uniform pigment dispersion, colour intensity, ergonomics and design.
COLORAMA range caters to various student groups. The range includes wax crayons and
oil pastels; triangle colour pencils and bi-colour pencils, poster colours, watercolour tubes
and water-soluble colour pencils. The products meet international quality standards. These
are non-toxic and safe for children.
1.7 Modern Trade
In contrast to traditional outlets, hypermarkets, convenience stores and deep discounters are
an easier way to gain distribution. So for many brands the growth in modern retail is a
benefit. Logistics are simplified and existing relationships help ensure a strong in-store
presence.
In-store visibility is a major advantage in developing economies where consumers may not be
that familiar with specific categories and the brand choices on offer.
Global brands understand this and use their marketing clout to ensure prominent in-store
visibility through mass facings and branded display units. Another common practice is the

use of "impulsadoras" as they are known in Latin America, people employed by the brand to
help persuade people to buy on impulse at the point of purchase.
Presently in Delhi Modern Trade Outlet Name Where they are operating are:1- Metro cash& carry
2- Spar
3- ABRL Hyper
4- Easy day
5- Vishal mega mart
6-Reliance
7-Srs value bazaar
8-V-mart
9-KendriyaBhandar
Their competitors are- ITC, CAMLIN, NAVNEET and FABER CASTELL.
Growth of Hindustan Pencils over last is 20 % in Modern trade North India.

1.8 SWOT ANALYSIS

STRENGTHSS
1. Children are the most important strength of Hindustan Pencils.
2. They take a care of nature by maintaining the ecological balance as wood is the main
raw material for pencil and they plant and grow their own trees for making pencils.
3. Hindustan Pencils is the oldest market leader and they have loyal customers towards
their brand.
4. They are manufacturing 8 million pencils every day.
5. They have built up the brand image of Corporate Social Responsibility
6. Strong distribution and sales network.
WEAKNESS
1. Pencils are now available in plastics which are not manufactured by Hindustan
Pencils.
2. Reduction of Advertisements in television has given a reduction in sales.
3. Online site has no detailed information about the each product.

THREATS
1. New companies entering in the market.
2. New varieties of pencils are coming.
OPPURTUNITIES
1. Demands for pencils are increasing every year because of the increased share of
stationery market.
2. Engineering sector is gaining more importance, where usage of pencils, scales will
increase.

1.9 DIRECT COMPETITORS

FABER CASTELL

Fig 1.11 Faber castell

Faber-Castell is one of the world's largest manufacturers of pens, pencils, other office
supplies like staplers, slide rules, erasers, rulers and art supplies as well as high-end writing
instruments and luxury leather goods. It operates 14 factories and 20 sales units (six in
Europe, four in Asia, three in North America, five in South America, and one each in
Australia and New Zealand). Faber-Castell India started its operations in 1998 and since then
has continued to set new benchmarks in innovation in product and packaging in the Indian
stationary industry Over the last ten years Faber-Castell has expanded its reach across the
traditional retail and modern trade channels with a strong network of over 500 distributors
serviced through its 9 branches.
Faber-Castell India started its operations in 1998 and since then has continued to set new
benchmarks in innovation in product and packaging in the Indian stationary industry Over

the last ten years Faber-Castell has expanded its reach across the traditional retail and modern
trade channels with a strong network of over 500 distributors serviced through its 9 branches.
Faber-Castell strives for continuous improvement in all its processes and aims to provide
defect free products from its quality certified factories, the first time and every time. The
products manufactured by Faber-Castell India are not just loved by Indian consumers but also
appreciated by consumers across the globe. Faber-Castell India exports its products to over
40 countries and is directly responsible for sales and marketing for the SAARC nations.
ITC CLASSMATE

Fig 1.12 Classmate

Classmate is the lead provider of all student stationery needs. ITC launched its Classmate
brand in 2003 with the notebooks category. By 2007, it grew into INDIA'S NO.1
NOTEBOOK BRAND*. It has since been committed to providing high quality stationery
products that are a result of a deep understanding of our consumers, thoughtful ideation,
innovative designs and superior craftsmanship.
Subsequently, Classmate added new products to its portfolio which now consists of pens,
pencils, mechanical pencils and geometry boxes, erasers and sharpeners. Classmate pencils
are designed to write dark and smooth, and provide the user a pleasing and effortless writing
experience. Classmate pencils have the strong advantage of lesser lead wear out, hence these
pencils Stay Sharp Longer. There is minimal need for sharpening thus, giving fine writing
for longer. Classmate Carbon black is a Super Dark pencil offering the dual benefit of lesser
lead wear out and darker writing. Classmate has recently launched the Classmate 2B Trilobe
pencils that are specially designed with a tri-grip for a comfortable and firm hold.
Classmate has 900 distributors who make the products available in over 70,000 outlets in
India. Classmate brought in earnings of Rs.40 crore in 2005-06. This increased to more than
Rs. 650 Crores in 2011-12.

CAMLIN LTD

Fig 1.13 Camlin

Camlin Limited is an Indian stationery company based in Mumbai, India. Camlin
manufactures art materials, marker pens, fountain pens, inks, pencils, and other stationery
products.
The company also offers artists and designers products, including art materials, artist's
pastels, artist's water colors, artists acrylic colors, artists acrylic colors, brushes, canvases,
drawing inks, others art materials, painting mediums, premium poster colors, students' oil
colors, and water color pencils. In addition, it provides products for office professionals, such
as gums and pastes, highlighters, permanent markers, CD/DVD markers, paint makers, stamp
pads and rubber stamp pad inks, and carbon papers; and tools and materials for hobbies
comprising 3D glitters, glass colors, cone liners, hobby brushes, hobby mediums, and sparkle
colors. The company markets its products under the Camel and Camlin brands. Kokuyo
Camlin Limited also exports its products primarily to CIS and SAARC countries, the Middle
East, and Far East countries.
The company is well-known for its "Camel" fountain pen ink and "Camlin" fountain pens in
India. Camlin started operations as "Dandekar & Co." with "Horse Brand" Ink powders and
tablets in 1931, and shortly started producing "Camel ink" for fountain pens. It was
incorporated as a private company in 1946, and was converted into a public limited company
in 1988.In May 2011, Japanese stationery major Kokuyo S&T, recently acquired a 50.74 per
cent stake in Camlin and the firm is in the process of being renamed as Kokuyo Camlin Ltd.
DOMS INDIA

Fig 1.14 Doms

Writefine Products Private Limited manufactures, exports, and supplies stationery products. It
offers wooden pencils, color pencils, wax crayons, erasers, sharpeners, plastic scales,
geometry boxes, DF pens, and non-wood pencils. The company offers products to stationery
markets primarily in India, Dubai, Egypt, Nepal, Bangladesh, and the United Arab Emirates.
Write fine Products Private Limited was founded in 1974 and is based in Umargam, India.
The company offers its products under the brand name of DOMS. Its Product range
comprise of Wooden Graphite Pencils, Wooden Colour Pencils, Polymer Graphite Pencils,
Polymer Colour Pencils, Pencil Sharpeners, PVC free & Phthalate free Erasers, Mathematical
& Drawing Instruments, Ball point Pens and wide range of Student Art Material.

MARKET POSITION

Market Share of Major Players

5%
Hindustan Pencils

11%

Camlin

Faber Castle

18%
66%

Fig 1.15 Market Position

Others

Hindustan Pencils Pvt. Ltd. holds almost two third share in the pencils industry of India with
its Brands like Nataraj and Apsara

CHAPTER 2
LITERATURE REVIEW
This research paper on Consumer buying behaviour towards stationery items and
experiential marketing establishes the relationship between the consumer buying behaviour
and the market mechanism of stationery items. It has been studied that their buying behaviour
is the outcome of their needs and wants and the consumers prefer to purchase what satisfies
these needs and wants. There are number of factors that affect the consumer buying
behaviour. These factors are divided into four broad categories: situational, personal, social
and cultural factors.
Situational factors impacting consumer behaviour may include location, environment, timing
and even weather conditions (Hoyer et al., 2012). In order to benefit from situational factors
major retailers try to construct environment and situations in stores that motivate perspective
customers to make purchase decision. Range of available tools to achieve such an outcome
include playing relaxing music in stores, producing refreshing smells in stores and placing
bread and milk products in supermarkets towards the opposite end of stores to facilitate
movement of customers throughout the store to make additional purchases etc.
Personal factors, on the other hand, include taste preferences, personal financial
circumstances and related factors. The impact of personal factors on consumer buying
decision is usually addressed by businesses during market segmentation, targeting and
positioning practices such as grouping individuals on the basis of their personal
circumstances along with other criteria, and developing products and services that comprise
these situations in the most cost effective manner.

According to Hoyer et al. (2012) social factors influencing consumer behaviour arise as a
result of interactions of potential consumers with others in various levels and conditions.
Targeting people of society perceived as opinion leaders usually proves strong strategy when
marketing products and services due to the potential of opinion leaders to target the behaviour
of other members of society ie.potential consumers.
Cultural factors targeting consumer buying behaviour are related to cross-cultural differences
amongst consumers on local and global scales. Culture can be defined as the ideas, customs,
and social behaviour of a particular people or society (Oxford Dictionaries, 2015) and the
tendency of globalisation has made it a compulsion for cross-cultural differences amongst
consumers to be taken into account when formulating and communicating marketing
messages.
Sulekha & Dr.Kiran Mor (2013) in their research on Consumer Buying Behaviour for
FMCG: An Empirical Study of Rural Haryana found that : In India more than 72%
population is living in villages and FMCG companies are famous in selling their products to
the middleclass households, it means rural India is a profitable and potential market for
FMCG producers. Rural consumers incomes are rising and willingness to buy the products
as a result of improved lifestyle. Producers in FMCG firms have chosen to modify their
marketing strategies exclusively for rural consumers. In this process they need to understand
the rural consumer buying behaviour which may differ geographically and culturally. The
present study focuses on understanding rural consumer buying behaviour for FMCG in
Haryana. The study stresses on the factors which the purchasing power of rural consumers.
The study was conducted in four districts of Haryana namely Panipat, Jind, Kuruksetra and
Gurgaon. This paper tries to find out the key influencing factors of rural consumers buying
behaviour. Factor analysis was used to group 16 influencing factors of buying behaviour of
rural consumers in Haryana. Sample size was taken as 500 consumers from above stated
districts of Haryana which covers almost every zone of Haryana. Adequacy of sample size
was tested by KMO test in SPSS.
Mitul Deliya Professor, S.K College of Business Management, Hemchandracharya North
Gujrat University, Patan in his research paper namely -Consumer Behaviour towards the
new packaging of FMCG Goods said that The importance of packaging design as a vehicle
for communication and branding is growing in competitive markets for packaged FMCG
products. A focus group methodology was used to understand consumer behaviour toward
such products. The challenge for researchers is to integrate packaging into an effective

purchasing decision model, by understanding Consumers behaviour towards the packaging

of FMCG products .When consumers search for and process information in-store, the
product's package plays a vital role in effecting its buying decision as it contains relevant and
useful information for them. Product packaging forms the end of the 'promotion-chain' and is
close in time for the actual purchase and hence play an important role in predicting consumer
outcomes. Packages also deliver brand identification and label information like contents, and
list of ingredients or raw materials, warnings for use and directives for care of product.
Ms Smitha P Alex in her research on topic Factors Influencing Buyer Behaviour in
FMCG studied that every market segment for each product has its own purchase motivation.
Price may be an important element when the product differences are viewed by that particular
segment as being having little consequence on the buyers behaviour. For others, brand can
be an important motive because they fear the risk involved in buying any untried item. For
many other products, the point of distribution may be the most important deciding element.
Quite often the final determinant is that of a mere habit. Whatever the purpose, it is important
to understand the patronage of purchase motives in relation to a specific market segment.
This study intends to understand the influence of above mentioned factors such as loyalty to
local retailers, influence of price perception and purchase decision involvement in the buying
behaviour of FMCG products. Also, this study attempts to find out whether the influence of
these variables is same across the different product categories in FMCG.
Research Gap:
The research gap is that this kind study on pencils has been not done yet.
Hoyer et al. (2012) in his study told about the social factors which affect the consumer
buying behaviour. Sulekha & Dr.Kiran Mor (2013) researched about the Consumer buying
behaviour for FMCG especially in Rural Haryana. What type of consumer behaviour prevails
and what are the factore that influence the attitude op people of Harayana. Mitul Deliya
Professor, S.K College of Business Management in his researched about Consumer
Behaviour towards the new packaging of FMCG Goods. How the packaging of FMCG
goods attracts that buyer and sometimes also results in impulsive buying. It also provides
brand identification and label information.

CHAPTER 3
RESEARCH METHODOLOGY

3.1 OBJECTIVES OF THE STUDY

To study the changes in the buying and usage behavior of the consumers of the
Nataraj pencils.

To study the key factors among retailers for the purchase decision of certain brands of
pencils.

Understanding modern trade distribution through Below the line (BTL) promotion
activity.

3.2 LIMITATIONS OF THE STUDY

A research study is precise. There is always a scope of refinement in the study in the future. It
becomes important to critically evaluate the entire study and results. The present study has
certain limitations that should be taken into account when considering the study and its
contributions.
1. The scope of project study is limited to Kalkaji, Faridabad and Badarpur only.
2. Available time for study was limited to make more detailed study.
3. Respondents opinion may be bias.
4. The time was a constraint, as the strategy had to be prepared within the short time
period.
5. The research was done in the months of May and June, in which the overall sales of
pencils is usually low due the Summer Holidays.

6. As the sample size was very low comparative to the total population, so the inferences
would be indicative picture of the total market.

3.3 RESEARCH DESIGN

The research design adopted is Exploratory in nature with the analysis being done on primary
data and being quantitative and qualitative in nature. The view point of sample set, being
qualitative in nature, represents the willingness of the sample towards the objective of the
research whereas the analysis based on the primary data tells us about the factors influencing
sales of Nataraj Pencils based on the views of households and retailers and various promotion
strategies used by Hindustan Pencils and their competitors for increasing sales.

3.4 SAMPLED POPULATION

A population is a group of individuals, items, objects from which sample is taken for
measurement. All items in any field of enquire constitute the universe. Here the population
refers to number of consumers and retailers who are using and selling various pencils. The
sample population includes people from various categories like working women, students,
house maker etc.

3.4.1 SAMPLING AREA

Sample has been taken from various parts of Faridabad, Kalkaji and Badarpur.

3.4.2 PARTICIPANTS/SAMPLE SIZE

200 households further divided into- 100 moms and 100 children and 50 retailers were taken
as the sample set. A structured questionnaire was used to collect data which was prepared
with the help of industry guide.

3.4.3 SAMPLING TECHNIQUE

Sampling is an essential part of market research. Process Tool &Techniques included in the
study of the data collection is divided on the basis of the sampling technique. The sampling
technique used in the study was purposive sampling .My structured questionnaire consist of
both close ended & open ended questions so that consumers and retailers can give their view
point more accurately then being bound with the options.

3.5 DATA COLLECTION

Primary Data: Interviews with 200 households (100 mothers & 100 children) and actual
visit to 50 dealers and distributors at every level based on a questionnaire with both open

ended and close ended questions. To satisfy the core objective of the study it was necessary to
get views of the both households and dealers/retailers who deal with Nataraj Pencils. The
sample was chosen by purposive sampling as most of the references of retailers were given
by industry guide.
Secondary Data: The review of literature has been done from eminent articles and papers
published in reputed journals and magazines globally. The list of all references used for the
successful completion of this study has been provided later in the report.

3.6 INSTRUMENT USED

The main instruments that I used in my project are structured questionnaire, SPSS Software
and Microsoft Excel spreadsheet. I checked all the questionnaires for completeness. After that
I made a review of questionnaires so as to identify illegible, inconsistent or ambiguous
responses. Coding has been done to each possible response to each question. Finally I
employed the SPSS software to analyse the gathered data. The SPSS software helped us in
analysing the data of the filled-in questionnaires.
The Statistical Package for Social Sciences (SPSS) is a computer package that offers broad
range Capabilities for understanding and analysing data. It is possible to generate decisionmaking information quickly using statistics that have rigor and power and effectively present
results with high quality graphical output. SPSS software can read and write data from other
statistical packages, databases, and spreadsheets. When entering data into the software, one
has to click on variable view. The variable view enables the user to customize it by data
type and consists of the following headings: Name, Type, Width, Decimals, Label, Values,
Missing, Columns, Align, and Measures. These headings enable the user to characterize the
data.

CHAPTER4
RESEARCH ANALYSIS AND DATA FINDINGS

QUESTIONNAIRE: MOTHERS
Age Group Of Mothers

AGE GROUP OF MOTHERS

19%

26-30

21%

31-35

36-40

60%

Fig.4.1.1 Age group of mothers

INTERPRETATION:
The graph represents the age groups of the mothers involved in the research. The major
percentage of the mothers is from age group 31-35 which make up 60% of the total
population.

 Occupation Of The Mothers

OCCUPATION OF MOTHERS

12%

OCCUPATION

HOUSEWIFE

SELF EMPLOYED

88%

Fig.4.1.2 Occupation of the Mothers

INTERPRETATION:
This graph shows that a majority of the mothers are Housewife by occupation amounting
to 88% of the total population.

 Frequency of buying pencils

FREQUENCY OF BUYING PENCILS

DEPENDS ON NEED

1-2 MONTHS 3-4 MONTHS

7% 1% 1% 16%

5-6 MONTHS

29%

7-8 MONTHS

12 MONTHS

46%

Fig.4.1.3 Frequency of buying stationery

INTERPRETATION:
As per this graph, 46% mothers buy their stationery items once in 1 or 2 months, 29% buy
once in 3 or 4 months and 16% buy stationery as per their need.
Buying approach of mothers( Nearby retailers, wholesalers & Malls)

From where do you prefer to buy stationery items

Nearby Retail

Wholesale

Shopping Malls

Others

20%

2%

78%

Fig 4.1.4 Buying approach of mothers

INTERPRETATION:
From the above pie chart it has been analysed that majority of consumers ie.78% prefer
buying stationery items from nearby retail shops and around 20% buy on wholesale and the
rest 2% buy from shopping malls. The reason that the majority prefer buying from nearby
retailers has been identified is the convenience to approach the nearby shops. The other 20%
feel that wholesalers offer best price (The fact that this share of consumers are price
conscious).

Person(s) who goes to buy stationery items

PERSON(S) WHO BUY STATIONERY

21%

2% 1% 3%

FATHER FATHER AND KIDS KIDS MOTHER MOTHER & KIDS PARENTS

22%

51%

Fig 4.1.5 Persons who buys stationery

INTERPRETATION:
As per the graph, 51% mothers buy stationery, 22 % Mothers and kids buy stationery and
only 3% Kids buy stationery on their own.

Person(s) who decide which stationery items to buy

PERSON(S) WHO TAKE DECISION OF BUYING

4% 2%

KIDS

MOTHER

MUTUAL DECISION

45%

PARENTS

49%

Fig.4.1.6 Person(s) who decide which stationery items to buy

INTERPRETATION:
As per the graph, 49% mothers take decision, 45% is the mutual decision taken by both
mothers and kids and only 2% kids take decision.
Things you look while buying pencils

Things you look while buying a pencil

Price

Grip

Colour of pencil

Lead Strength and Lead colour

Others
6% 7%

10%
12%

65%

Fig. 4.1.7 Preference while buying a pencil

INTERPRETATION:
It can be inferred from the above, the characteristic that enables the majority of the customers
(mothers) while buying a pencil is more inclined towards the Lead Strength and Lead Color
(65%). The major reason of this preference is that the strength of the lead enables for a longer
use of the pencil (taking into consideration the repetitive sharpening of a pencil that gradually
decreases its use)and the lead colour (preferred to be dark) that makes lesser effort be put
while writing.
Pencils presently purchased by the mothers

PENCILS PURCHASED BY THE MOTHERS

35
30

28

30

25
20

Fa
be
r

Ca
st

el
l

el
l
Fa
be
r

Ca
st

PENCIL BRANDS

Fig.4.1.8 Pencils purchased by mothers

Marvel Avengers

Na
ta
ra
j6
21

Tr
en
z

Nataraj

M
at
t

Ne
on

Faber Castell

e
Su
pr
em

Tr
ig
a

Camlin

Ca
m
l in

Ap
sa
ra

Ab
so
lu
te

10
Doms
Classmate
55
5 5
5 2111 11
2
0

Ap
sa
ra

Apsara
COUNT

13

Do
m

15

INTERPRETATION:
Table showing number of mothers buying different brands of pencils

Apsara

40

Doms

15

Classmate

Camlin

Faber Castell

Nataraj

29

Marvel Avengers

Table 1
Nataraj and apsara are the most preferred pencil due to its strong distribution network and
the brand loyalty consumers have towards its flagship brand Nataraj, followed by Doms .
Ranking given to the factors affecting buying decision by the mothers

RANKING GIVEN BY MOTHERS

120
100
80
COUNT

605

40
20
0

LEAD_GRADE

LEAD_STRENGTH

COLOR

FACTORS

Fig. 4.1.9 Ranking given by the mothers

PRICE

GRIP

INTERPRETATION:
Table showing the count of rankings given to the factors affecting buying decision of the
pencils: As can be inferred from the above, the characteristic that enables the majority of the
consumers while buying a pencil is more inclined towards the Lead Strength and Lead
Colour. The major reason of this preference is that the strength of the lead enables for a
longer use of the pencil (taking into consideration the repetitive sharpening of a pencil that
gradually decreases its use)and the lead colour (preferred to be dark) that makes lesser effort
be put while writing. It can also be seen that people are price sensitive but at the same time
prefer quality.
RANKING
LEAD_GRADE
LEAD_STRENGT
H
COLOR
PRICE
GRIP

1
29

2
57

3
14

4
0

5
0

49
0
20
2

36
0
1
6

4
15
12
55

11
43
24
22

0
42
43
15

Table -2 Count of ranking given to factors

Have you ever used Nataraj Pencils

Yes

No

32%

68%

Fig 4.1.10 No. of people used Nataraj pencils

INTERPRETATION:
It can be inferred that 68% of consumers has used Nataraj pencils while the other 32% has
not tried it , this is because of new variety of pencils coming in the market with new features
and innovative designs which Nataraj has still not provided.
What should Nataraj do to serve you better

What should Nataraj do to serve you better

More variety in colours and designs
Improve lead strength
Reduce price
Free gifts in pack
Advertise more
8% 14%

29%

2%
47%

Fig 4.1.11 Things Nataraj should do for Mothers

INTERPRETATION:
From the above pie chart it is inferred that Nataraj should work upon lead strength
and introduce more variety in colors and design to cater the needs of young children.

QUESTIONNAIRE: CHILDREN
Age group of the children

AGE GROUP OF THE CHILDREN

14%

26%

23%

17%

20%

Fig.4.2.1 Age group of the children

INTERPRETATION:
As per the graph, 26% children belong to 9 years, 17% belong to 6 years of age and 20%
children belong to 7 years of age.

 Favorite pencils of the children

Fig.4.2.2 favorite pencils of the children

INTERPRETATION:
Below table shows favorite pencil brands of the children

Table no-3

Apsara

39

Doms

16

Classmate

Camlin

Faber Castell

Nataraj

29

Marvel Avengers

 Preferences of children for using pencils

PREFERENCES FOR USING PENCILS

3% 3%
Strong lead

Dark lead

20%
Smooth lead

37%
Colorful

Good grip

Economical

12%
25%

Fig.4.2.3 Preferences for using pencils

INTERPRETATION:
As per the graph, dark lead is preferred up to 25%, strong lead is preferred up to 37%,
economical pencils are preferred up to 3% and colorful pencil is preferred up to 20%.

 Ranking given to the factors by the children

RANKING GIVEN BY THE CHILDREN

120
100
80
COUNT

60
5

40
20
0
LEAD_GRADE

LEAD_STRENGTH

COLOR

PRICE

GRIP

FACTORS

Fg.4.2.4 Ranking given by children

INTERPRETATION:
Table showing the count of rankings given to the factors affecting buying decision of the
pencils:

RANKING

LEAD_GRADE
LEAD_STRENGT

22

47

25

66

23

COLOR

10

18

43

22

PRICE

14

71

GRIP

16

57

21

Table 4 Count of rankings given to factors by children

QUESTIONNAIRE: RETAILERS
Kind of stationery in the stores

Kind of stationery in stores

School Stationery; 26%

All the above; 32%
Office Stationery; 2%

Both 1 & 2; 40%

Fig 4.3.1 kind of stationery in shops

INTERPRETAION:
The above suggests that 26% of the retailers prefer to keep only school stationery in contrast
to 2% who prefer to keep only office stationery. However over 40% prefer both office and
school stationery. None prefer Computer stationery. But overall 32% of the retailers believe
to keep all the items in their store.

 Are there any new pencils in the market since the last 2yrs?

Are there new pencils since last 2 yrs

No; 12%

Yes; 88%

Fig 4.3.2 new pencils in the market

INTERPRETATION:
From the above data it is inferred that a lot of new pencils from various existing as well as
new brands have been launched from the past 2 years. The new pencils that has been
launched since past 2 yrs are: Reynolds trizy (Reynolds), Apsara Absolute (Hindustan pencils
pvt. Ltd), Doms zoom (Write fine products pvt. Ltd), Matrix and Barbie (Bilt), Flair pro and
Flair dot com (Flair), Markline( Linc), Navneet Eco buddy (Navneet).

 Color preference of the people buying pencils from the retailers

COLOR PREFERENCE WHILE BUYING PENCILS

20%

Cartoon characters 40% Multicolor

6%

neon colors

none

34%

Fig 4.3.3 colour preference while buying a pencil

INTERPRETATION:
The above chart shows that 40% of the customers are not particular about the color
preference of the pencils, 20% want cartoon characters and 6% want neon colors.
Preference of the lead grade by the customers as per the retailers

LEAD GRADE PREFERENCE

26%

Dark

Light

both

6%
68%

Fig 4.3.4 lead grade preference

INTERPRETATION:
As per the chart above, 26% demand any lead grade while 68% demand only dark lead
pencils.
Ranking given by the retailers as per the importance of the factors for buying
decision of the customers

RANKING GIVEN BY THE RETAILERS

DEPENDS ON CUSTOMER
PR
IC
E

G
IN
G

G
RA
DE
D
LE
A

PA
CK
A

ST
RE
NG
TH

LE
AD

4
LO
O
KS

5
COUNT

60
50
40
30
20
10
0

FACTORS

Fig.4.3.4 Ranking given by the retailers

INTERPRETATION:
Table showing the count of rankings given by the retailers as per the importance of the factors
that influence buying decision:

RANKING
LOOKS
LEAD GRADE
LEAD
STRENGTH
PACKAGING

DEPENDS ON
CUSTOMER
5

1
1

2
2

3
15

4
16

5
11

28

30

12

11

28

PRICE

16

15

Table 6 count of rankings by retailers

Pencil is doing well in the market

Pencil doing well in the market

Doms

Apasra

Nataraj

10%

Faber Castell

Others

4%
30%

24%
32%

Fig 4.3.6 pencils doing well in the market

INTERPRETATION:
From the above it has been inferred after having studied the responses of the retailers on
the whole that Doms and Apsara have been doing well in the market capturing a share of
about 62% together .It is because of the favorable tastes of the customers drawn towards
the two. Apsara has been well received by the consumers and while on the other hand
Doms has very well gained an almost equal market share given the fact that it offers good
quality at a competitive price .Also seen is that Nataraj comes across about 24% of the
market share which again although is figuratively good.

 Reasons for a pencil doing well in the market

Reasons for pencil doing well in the market

Others; 6%
Brand loyal; 20%
Quality; 58%
Better margin; 16%

Fig 4.3.7 Reasons for most selling pencil

INTERPRETATION:
From the above pie chart it has been inferred that the pencil which is doing well in the market is
because of the good quality followed by brand loyal customers who are loyal to one brand buy those
pencils.

 Preference of Rs 5 pencils over Rs 4 pencils by the retailers

Rs. 5 Pencil is Preferred over Rs. 4 or Not

28%

no

yes

72%

Fig 4.3.8 Rs 5 pencil preferred over Rs 4 or not

INTERPRETATION:
As per the chart above, 72% prefer Rs.5 pencils over Rs.4 and 28% have no such preference.
The main reason for this is Change problem for Re.1.
Pencil recommended by retailers

Which pencil do you recommend if asked

Doms

Apsara

Nataraj

Faber castell

12%
12%
51%
26%

Fig.4.3.9 Pencil recommended by retailers

INTERPRETATION:
From the above pie chart it has been inferred that most of the retailers prefer to sell Doms
over Apsara and Nataraj. Whereas Faber Castell is least preferred by retailers as it is highly
priced and cater to niche segment.

Factors influencing retailers to sell the product

actors that motivate retailer to push the product in the mark

High margin

Quality

Schemes

Others

Most visible on shelf

4%
22%
40%

34%

Fig 4.3.10 Factors influencing retailers to sell the product

INTERPRETATION:
From the above pie chart it has been inferred that retailers are highly motivated to sell the
product which provides them better margin followed by the quality. Doms are highly
recommended by retailers as it provides them better margin and whereas apsara having a
good quality but provides low margin to retailers is thus less preferred . Nataraj pencils donot
offer good quality as well higher margin thus only 12 % retailers prefer to sell Nataraj

CORRELATION

Which pencil

What

do you

motivates

recommend if you to push

asked?
Pearson
Which pencil do you
recommend if asked?
What motivates you to

Correlation
Sig. (2-tailed)
N
Pearson

the product to
1

customer?
.484**

50
.484**

.000
50
1

Correlation
Sig. (2-tailed)
.000
customer?
N
50
**. Correlation is significant at the 0.01 level (2-tailed).
push the product to

50

Table no-5
The table shows positive correlation between the pencil which the retailers recommend and
factors which motivates them to push the product (pencil) to customer. The retailers generally
prefer to sell the pencil which gives them high margin.
Correlation between two variables is .484, thus there is a positive relation between variables.
It can be inferred from the above correlation retailers play an important role in influencing
consumers buying behaviour and the decision of retailers is very much dependent on factors
like higher margin and quality of the pencil as inferred from above data. According to the
data retailers prefer to sell Doms pencil over Nataraj and Apsara due to higher margins as
inferred from fig 4.3.9 & fig 4.3.10

CORRELATION
Do you think which pencil
buying

sells the most

decision is
influenced by
In shop
advertisemen
ts?
Do you think buying

Pearson

decision is influenced
by In shop

Correlation
Sig. (2-tailed)

advertisements?

N
Pearson

which pencil sells the

Correlation

most

Sig. (2-tailed)
N

-.167

50

.247
50

-.167

.247
50

50

Table no.6
INTERPRETATION
The table shows a negative correlation between the affect of in-house advertisements to the
customers choice of pencil. The customers choice is not much affected by the in-house
advertisements they are brand loyal and do not get switch to other brands easily.
As in shop advertisement does not impact the sales of pencil so Nataraj need to focus on
providing better margins to its retailer in order to increase sales.

CHAPTER 5
OBSERVATIONS AND FINDINGS

MOTHERS

Quality of the pencils i.e. Lead Strength and Lead Grade are the most important
factors for buying pencils keeping in mind its maximum use consumer prefer strong
lead so that the durability of a pencil increases and dark lead colour so that they do
not have to apply much force for writing.

Mothers also want attractive pencils so that their children so they kind of enjoy
writing.

They prefer to buy stationery items from nearby retail to their convenience and those
who prefers wholesale because they get a good price over there.

They take into consideration the opinion of their kids in buying stationery i.e. the
mutual decision between Mothers and children.

Nataraj is purchased by approximately 68% of the mothers because of their loyalty

towards the brand and its widespread availability.

Apsara pencils especially Absolute and Platinum are being used because of better
quality.

Some of the mothers are not aware that Nataraj has a range of pencil colors etc.

In some cases, Nataraj is purchased by the mothers specially who are more price
conscious.

There are many complaints about Nataraj 621 that the lead is weak, rough and light.

Mothers want Nataraj to produce following items:

Notebooks and registers.

Scissors

Glue stick

Sketch pens

Crafts item

Cello tapes

Office stationery

Glitter and colorful pens

CHILDREN

The most important factors that children want in the pencils are Dark Lead, Strong
lead and looks of the pencil.

Kids demand and like to work with colorful pencils.

Packaging again is one of the most important factors for children. They tend to buy
the pencil with more attractive packaging.

A good majority of kids use Natraj, Apsara and Doms pencils.

Some of the kids are not much conscious about the pencils they use. They work with
any pencil that parents give them to write with so most of the kids do not use different
pencil for different purpose.

Kids also complaint about the lead quality of Nataraj pencils. They say that lead is
weak so they have to sharpen the pencil again and again.

Some of the children want Nataraj pencils to be more attractive and colorful.

RETAILERS

As per correlation table retailers influence the decision of customers on buying the
Pencils and there is a positive correlation between the preference of pencil by retailers
and factors that affect retailers so Nataraj should focus more on satisfying retailers.

As per correlation table no.

there is a negative correlation between the affect of in-

house advertisements to the customers choice of pencil. The customers choice is not
much affected by the in-house advertisements they are brand loyal and do not get
switch to other brands easily. As in shop advertisement does not impact the sales of
pencil so Nataraj need to focus more on quality , innovative designs , colours and
providing better margins to its retailer in order to increase sales.

AREA WISE OBSERVATIONS

BADARPUR

There the major competitor for Nataraj pencils are -Apsara itself and Doms

Apsara Platinum and Absolute have significant demand as compared to Nataraj

pencils. But, Nataraj pencils are still one of the highly demanded pencils.

There are certain complaints regarding lead breakage in Nataraj Pencils.

N.I.T , FARIDABAD

In N.I.T, Faridabad, there is a significant change in market. The focus of both retailers
and the customers has shifted towards DOMS pencils.

As per retailers, demand for Nataraj has declined due to more preference to DOMS
pencils. Demand for Nataraj is there but not that much.

DOMS pencils are very attractive and of good quality as compared to Nataraj. And
they also offer attractive schemes and margins to the retailers so the retailers are
keener on selling DOMS pencils.

Some people straight away refuse to buy Nataraj.

Apsara is doing equally well.

Some retailers want more attention from the company. They feel neglected in terms of
regular interaction.

Many retailers said that Schools have stated eating their business share as both
International and local schools have started giving their own stationery items to
childrens so they do not have to purchase any stationery item for school work but yes
small quantity of stationery products for homework.

OLD FARIDABAD

Here in this area just like N.I.T, Faridabad there is more inclination towards Apsara
and Doms.

Retailers are getting good margins in Doms, so they like to sell Doms pencils first.

While some retailers are still interested in selling Nataraj only as it is trusted brand
both by the retailers and the customers.

There are complaints regarding quality of Nataraj pencils that the lead is very weak.

Also, many of the Nataraj pens like All Rounder that retailers demand are mostly out
of the stock.

SECTOR-15,16,17 FARIDABAD

Nataraj is doing well; some retailers and people are loyal to the brand Nataraj. They
keep and use Nataraj pencils only.

Some retailers dont know much about other brands; hence they keep Nataraj and
Apsara only.

Doms has a certain market share in this area but not as much as N.I.T Faridabad. The
market captured by Doms is comparatively less.

Other brands like Faber Castell, Bilt etc are there but do not offer much competition
as it is highly priced.

As per retailers there is no need of improvements in Nataraj pencils. It is a well

trusted and highly demanded pencil brand.

JAITPUR

Both Apsara and Nataraj are doing well in this market. But demand for Apsara
Platinum and Absolute is slightly higher. Other players are not much in demand.

Some retailers suggest improving the quality of the Nataraj pencils with more colorful
variants or cartoon characters.

KALKAJI

This area has more of lower middle class people. Therefore, Nataraj 621 is one of the
highest selling pencils as it offers cost effective usage but at the same time it doesnot
offer much variety in design and colors .

Apsara is also demanded equally.

.

CHAPTER 6
RECOMMENDATIONS

More attractive pencils and packaging are the measures that company can take to gain
preference among kids specially.

Nataraj should work on the lead quality of the Nataraj 621 pencils, which many people
find the lead to be weak and rough.

There are many duplicates of Nataraj 621 pencils. So, some retailers suggest to keep a
check on duplicacy.

Company should also increase their engagement with the retailers in Faridabad as there a
major portion of market share has already been captured by Doms so that retailers feel
more connected with the company.

Both mothers and kids are not aware about other pencils of Nataraj brand. The company
needs to spend more on advertisement on TVs and internet so as to make people aware
about the products and indirectly persuade them to buy them too.

There should be more margins for retailers and also many schemes for both retailers and
customers so that retailers are more interested in selling Nataraj Products rather than any
other brand.

Company can also put erasers, scales and sharpners with the packs of the pencils as today
people prefer a complete pack of stationery as Doms is providing the same.

Company can provide pencil dispensers and other promotional material to the retailers
which will indirectly advertise companys products.

Company can give pouch packaging for Nataraj Erasers with fragrance and color variety
and even attractive packs for pencils which can be of Plastic body instead of Cardboard or
cap boxes. Packs should be such that they can be hanged on displays.

CHAPTER 7
CONCLUSION
Hindustan Pencils Pvt. Ltd. Has a diversified product portfolio offering all stationery items.
In 2013, Hindustan Pencils continued to lead writing instruments with a value share of
10%.The Companys position can be largely attributed to the pan-Indian presence of its
Nataraj and Apsara brands. The company has maintained its leading category position mainly
thanks to its strong distribution network and the brand loyalty consumers have towards its
flagship brand Nataraj, which is almost considered synonymous with pencils in India.
According to the survey conducted , it has found that from past few months Nataraj is losing
its market share due to deteriorating quality of its pencil as well as less innovation in design
whereas Apsara offers good quality thus it is one of the most demanded pencil these days.
Retailers prefer to sell Doms as it provides margins, schemes and also good quality. Thus it is
able to efficiently capture the Hindustan Pencils market share these days.
Nataraj being one of the vintage brand can gain a competitive edge over the new brands by
efficiently working towards its quality, innovation and focusing more on retailers.

REFERENCES

http://www.indianretailer.com/magazine/2009/february/Maturing-stationeryindustry.m25-1-1/
https://globaljournals.org/GJMBR_Volume13/4-An-Investigation-of-ConsumerBuying.pdf
https://indiatopresponsibilitybrands.wordpress.com/2014/03/05/environmentalfriendly-and-socially-responsible-pencil-brands-wood-in-india/
https://globaljournals.org/GJMBR_Volume13/4-An-Investigation-of-ConsumerBuying.pdf

APPENDIX
APPENDIX A
QUESTIONNAIRE
Mothers
Name:
Age:
Occupation:

BUYING BEHAVIOUR
1. Where do you approach buying stationery?
a)
b)
c)
d)
e)

Nearby retail
Wholesale
Mall
Super market
Others

2. How often do you buy them and in what quantities?

3. Who buys the stationery items?

4. Who decides which product to buy?
PENCILS
1. Which Pencil do you get for your kids now?
a) Doms
b) Nataraj
c) Classmate
d) Apsara
e) Others

2. Since how long you have been getting it?

a) less than 2 yrs
b) 2-3 yrs
c) 3-5 yrs
d) More than 5 yrs
3. What do you like about it?
a) Lead colour (light/ dark)
b) Lead strength
c) Colour
d) Both (a) & (b)
4. What are the things you look for while buying a pencil?
a) Price
b) Looks
c) Availability with retailers
d) Quality (lead strength, lead colour, grip etc)
e) Others
5. Have you ever used Nataraj Pencil?
(a) Yes
(b) No
----If YES
(a) What do you use / did you use it for homework / schoolwork/ drawing?
(b) What do you like about it?
a. Price
b. Attractive promotional offers
c. Better quality
d. Easy availability
IF DOESNT ANYMORE
What do you dislike about it?
a)
b)
c)
d)
e)

Lead strength
Lead colour
Looks
Both (a) & (b)
others

6. Rank the things based on how important they are when you buy a pencil (1 being the most
important and 5 being the least)
a) Lead Grade (light/dark)
b) Lead Strength (Strong/Brittle)
c) Color of the pencil
d) Price
e) Grip
7. What do you like Nataraj do to serve you better?
a) More variety in colours and designs

b)
c)
d)
e)

Improve Quality
Reduce price
Free gifts in packs
Advertise more

APPENDIX-B
CHILD
Name:
Age:
Gender:
School:
Class:
Education Board:

BUYING BEHAVIOUR
General Stationery
1. What stationery items do you use?

2. Who goes to buy the stationery items?

3. Who decides which product to buy?
PENCILS
1. Which is your favourite pencil?
a) Doms
b) Nataraj
c) Faber Castell
d) Apsara
e) others
2. What do you like about it?
a) Lead colour (light/ dark)
b) Lead strength
c) Colour
d) Both (a) & (b)
3. What are the things you look for while buying a pencil?

a)
b)
c)
d)
e)

Price
Looks
Availability with retailers
Quality (lead strength, lead colour, grip etc)
Others

4. Do you use different pencil for different purpose- home/school/exam/drawing?

5. Have you ever used Nataraj Pencil?
(a) Yes
(b) No
----If YES
(c) What do you use / did you use it for homework / schoolwork/ drawing?
(d) What do you like about it?
a) Price
b) Attractive promotional offers
c) Better quality
d) Easy availability
IF DOESNT ANYMORE
What do you dislike about it?
a)
b)
c)
d)
e)

Lead strength
Lead colour
Looks
Both (a) & (b)
others

6. Rank the things based on how important they are when you buy a pencil (1 being the most
important and 5 being the least)
a) Lead Grade (light/dark)
b) Lead Strength (Strong/Brittle)
c) Color of the pencil
d) Price
e) Grip
7. What do you like Nataraj do to serve you better?
a) More variety in colours and designs
b) Improve Quality
c) Reduce price
d) Free gifts in packs
e) Advertise more

APPENDIX-C
Shop- Keepers
Mystery shopping- stationery shop

1. Ask for pencils (dont mention brands).

a. If the shopkeeper asks which brand, tell him to give any.
b. If he offers more than one, ask him which one is better.
c. Ask the difference between each pencil and the price.
OBSERVATION

2. Ask for Nataraj Pencils

a) Observe how he gives it pack / loose
b) Does he ask any other questions- usage: writing/drawing/rough use?
c) Does he ask for the price?
d) Any other observation?

INTRODUCTION
a. Name of the outlet :
b. Name of the shopkeeper :
PENCILS
1. What kind of stationery items do you keep in the store?
a) School stationery
b) Computer stationery
c) Office stationery
d) School and office stationery
e) All the above
2. Are there any new pencils in the market since the last 2yrs?
a. Yes
b. No
If yes please name them

3. How it is different from other pencils?

a) Superior Quality
b) Brand name
c) Innovative design
d) Other

If others please specify

4. Which one is doing well in the market?

a) Doms
b) Apsara
c) Nataraj
d) Camlin
e) Other
5. Why do you think so?
a. Quality
b. Better margin
c. Brand loyal
d. looks
6. Do people specifically ask for dark/light lead?
a. Yes

b. No

7 .Do people buy pencils in pack/ loose (individual)?

a. Pack

b. Loose c. Both

8. Which pencil do you recommend if asked?

a)
b)
c)
d)
e)

Doms
Apsara
Nataraj
Matrix
Any Pencil

9. What motivates you to push the product to customer?

a)
b)
c)
d)

Higher Margins
Quality of products
Most visible on the shelf
Schemes

10. Do you think buying decision is influenced by In shop advertisements?

a. Yes
b. No
If Yes, Which influence the most?
a. Posters
b. Hoardings

c. Pencil stands d.Stickers e. Others

11. Which of these factors play the most important role while buying a pencil? (Rank from 15, 1 being the most important and 5 being the least)?
a)
b)
c)
d)
e)

Looks
Lead Grade
Lead Strength
Packaging
Price

12. Do you prefer selling Rs 5 pencil over Rs 4? If yes why?

13. According to you, what should Nataraj do in order to gain preference?
a)
b)
c)
d)
e)

Improve quality
Better margin
More advertisement
Schemes
Improve designing