St.

Xavier’s College, Mumbai

Research by : Samaksh Sarda (UID - 194146 Roll No. - 62)

Kanak Malu (UID - 194121 Roll No. - 26)
 Objectives

Our objectives for conducting the research and survey are as follows:

1.From a consumer’s perspective there is no difference in the commodity for

his/her immediate need, then how do ruler brands target the customers and
place their commodity in the market.

2.Why a new entrant in the market does not sell rulers for Rs.4 when all other
brands are selling it for Rs.5?

3.To understand the buying behaviour of the consumers with regards to:

• Price paid by them and the number of pieces bought in a single

purchase.
• When do consumers tend to buy rulers?

• Is there any specific brand that consumers go for?

• How long does a ruler last?

1.Objectives for the seller visit:

• To understand the incentives linked to the product and the distribution
channels adopted by the brands.
• Is there any need to place the commodity in the visibility range or does
it require a shelf space?
• Is the mark up cost structure been uniform for years and are there any
cases of replacement attached to the commodity?

Profiling the product : Scale (Ruler)

A scale/ruler is a tool for measuring lengths and transferring measurements at a

fixed ratio of length. It is made of a thin strip of wood, metal, or plastic that has a
straight edge and length measurement markings along the edge. Rulers are
sometimes referred to as a rule or line gauge. Rulers are used for measuring a line,
and the straight edge allows them to be used for drawing, scoring, or cutting. They
are often used in technical drawing, math & geometry, engineering, carpentry, and
print fields. Metric rulers have centimetre and millimetre markings. The larger
markings on a metric ruler represent a centimetre. The smaller ticks on a metric
ruler represent a millimetre. There are 10 millimetres in a centimetre so there are 9
millimetre ticks between each centimetre tick.
 History of the product

The metric system was invented in France to ease the measuring of objects and by
the end of 18th century most of the countries the world adopted it. First ruler was a
measuring rod made of copper alloy and it dated back to 2650 BC. In 1500 BC
there were ivory rulers used by the Indus Valley Civilisation. Some findings in
Lothal proved that there was a ruler which was calibrated to 1.6 millimetres, and it
was 4400 years old. Mohenjo-Daro ruler has accuracy within 0.13 millimetres. The
first folding ruler was invented by Anton Ullrich, and the first flexible ruler was
made in 1902. There are several different types and styles of rulers.

Types of rulers

Steel Ruler:
A steel rule is a straight flat piece of metal. It can be flexible or rigid, and is usually
15-30cm in length. Steel rules are generally thinner than a desk ruler, which makes
them more accurate since the measurement markings are closer to the surface being
measured. Steel rules are used in engineering, math & geometry, and technical
drawing for their accuracy.

Yardstick and Meted Stick:

Yard sticks are straight thin pieces of wood or metal used to measure objects up to
a yard. They usually are 36″ in length and may include imperial or metric
measurements. In regions that use the metric system they may be referred to as a
meter stick. They are often used in construction, carpentry, and metalwork.

Folding Ruler:
A folding rule, or carpenter’s ruler is a wooden instrument consisting of multiple
flat wooden sections connected at the ends that pivot allowing the rule to be folded
up. They are usually used for construction and carpentry and are regarded as more
accurate than a tape measure and easier to use for measuring inside edges.

Architects Scale:
An architect’s scale is a type of ruler that has measurements in several different
scales. They are mostly made of wood or plastic and are 3-sided with 6 different
measurement scales. Architects scales are used for engineering and architectural
drawing such as drafting blueprints to scale.

There are many different versions of rulers, but the general principal and
application is the same. They range from very generalised to very specialised but
the main requirement is that they have markings for measuring the length of an
object or edge.

Desk Ruler: The desk ruler is very common and is most often the instrument
associated with the term ruler. They have traditionally been made out of wood,
though plastic varieties are pretty common. Desk rulers are usually 12″ / 30cm in
length. Desk rulers are often used for general purpose tasks, including math &
geometry and drawing. Our research and report primarily pertains to this kind of
ruler, used widely by diverse age groups and for various purposes.

Lifecycle of the product : (Desk/Plastic rulers)

1.Raise and Extract: The main component is plastic which is mainly composed
of silicon, obtained by the drilling and extraction of crude oil.

2.Conversion of Silicon: Once the oil is extracted through various types of

mining it is then polymerized to give us the plastic that is found in the rulers.

3.Manufacturing: The rulers are manufactured by the injection moulding

process. The materials PS and PMMA being amorphous show very little
shrinkage which helps in precision measurement. Once completely liquid the
materials are placed on a 12*2*1 mould to make the ruler.You can notice gate
points on the side (top or bottom edge).

Cost Structure (Front-end)

Let’s assume X = price of production and Y = mark up

Now let’s assume numbers in place of X & Y
For Example - X= ₹10

Brands Faber Castell Camlin Zeil

Cost Price (X) ₹ 10 ₹ 10 ₹ 10

Mark Up (Y) 20% 20% 35%

M.R.P ₹ 12 ₹ 12 ₹ 13.5

Now let’s consider sales = 100 units

Brands Faber Castell Camlin Zeil

Sales ₹ 1200 ₹ 1200 ₹ 1350

Discount on sales 20% 20% 35%
made

Discount (in ₹) ₹ 240 ₹ 240 ₹ 270

Amount to be paid ₹ 960 ₹ 960 ₹ 1080

by the seller to the
company

Oligopolistic Market

Three conditions for oligopoly have been identified. First, an oligopolistic market has
only a few large firms. This condition can be clearly seen in the scale/ruler market as
there are few large firms namely doms, faber castell, camlin. Second, an oligopolistic
market has high barriers to entry. We can see this very prevalent in scale/ruler market
as the prices have been constant from so long and further market penetration through
lower prices is very rare. Third, oligopolistic firms may produce either differentiated
or homogeneous products and its very prevalent that scale manufacturing firms have
homogeneous products with little differentiation in design.

Analysis of the survey

1.66.67% respondents gave the correct answer for the price paid to purchase a
15cm ruler. This proves that the commodity is bought frequently by the
consumers and they are aware of the price which has been uniform throughout.
On the contrary, only 12% respondents knew the right price of a 30 cm ruler,
which proves that the 15cm ruler is the most widely used variant.

2.After understanding the tendency of the consumers we come to the

conclusion that most of the respondents tend to buy a ruler for their academic
needs and during their exam period.
 3.86.7% respondents buy less than 3 rulers in a single purchase, as they are
sure the price will remain constant and there is no need for them to hoard the
commodity.

4.The income question received mixed responses and people from all age
groups buy rulers with the same frequency so there is no relation between the
income of the consumers and the demand for our commodity.

5.Majority of the respondents answered that their ruler generally lasts for 2-3
months making it a flowing and evergreen commodity.

Takeaways from the visit to the seller at Crawford Market

We received valuable information from the sellers at crowford market where we

interacted with sellers carrying out both retail and wholesale activities for our
commodity. Important takeaways for us were:
• There was no shelf space or an eye level brand tag required for the
commodity. Ruler/scale being a very generic commodity does not require to be
kept in the visibility range of the consumer.
• We were informed by the sellers that there were no cases of the product being
replaced because of its low price, which makes us understand that once the
commodity is produced it gives guaranteed returns to the respective company.
• All the sellers informed us that the prices for rulers have remained constant
for years, which states that the fixed and variable costs have remained the same
for years.

(TC=TVC+TFC)
• As the total cost is same throughout, that’s where the concept of Economies of
Scale kicks in for this particular product as there has been no change in the
technology used in the production nor any change in the procurement of raw
materials. This has increased the operational efficiency for the production of
this product.
• We understood how a new brand (Zeel) actually tries to penetrate the market
in order to achieve sales max by giving additional promotional benefits to the
sellers.
 Findings

• Observational Finding: It was this finding of ours that changed our outlook
towards the commodity. Faber Castell is the only company that writes Non
Commercial on it’s scales. Why so?
• Non Commercial means not primarily directed towards commercial advantage
or monetary gains. The usage of the product is not directed towards
commercialization. Faber castell by supporting the Simple School campaign is
motivated towards changing the face of education in the country. Faber Castell
is a resource partner to the Simple School Project and aspires through the
production of its products to erase the gap that exists in Private and
Government schools in terms of the stationery products. They are motivated
towards creating sustainable learning experience for children in government
schools.
• If competing brands have the same price for the commodity then the social
responsibility carried on by the firms plays a key role is increasing the scales as
the customers are given an assurance that their purchase is adding value to the
society.
• There is no gentrification attached to our commodity.

• There has been no episode of stagnation experienced by the manufacturers as

the commodity is very generic and a flowing commodity.
• The consumers portray a Habitual Buying Behavior as they perceive almost
negligible differences in brands and a have a very low involvement in the
purchase of the commodity.
• There is a valley shape given to the rulers in the center to keep the other
stationery components used alongside rulers which is very prominent in rulers
manufactured by camlin.
• The pmma substance used in the manufacturing process is a non-toxic
substance making it safe for use even for children in toddlers.
• Scales with in-built stencils increases the utility factor and thus becomes more
educationally beneficial for the users usually students.
 Suggestions

After gaining a complete understanding about our commodity which is scales/

rulers we have the following suggestions:
• As the commodity is priced uniformly by all brands that is Rs 5 for a 15 cm
ruler the promotional activities (like incentives to sellers) being carried out by
marketers play a crucial role in increasing its sales. A seller will first show only
that product which provides him chances to increase its profits.
• The brands can go for product combinations. For eg: the brand Zeel in order
to penetrate the market, apart from offering 35% incentive can combine its
scales with diaries that have pockets at the end to increase the portability of its
scales.
• If the same commodity by all brands is priced uniformly then the social
responsibility carried on by the brand acts as a sales catalyst because the
consumer feels motivated on buying a product which adds value to the society.
(Faber Castell – Simple School Project)
• In order to increase the usage period companies can make the product a bit
more flexible and make the measurement dashes more resistant to time.
• Recycling plastic rulers is nearly impossible since most are made of pvc
plastic. In such a case the rulers can be used to create paintings, murals and
sculptures.

Future of the commodity

We doubt that plastic rulers will ever become obsolete because of their ability
to function as needed and the fact that it is a cheaper version of a ruler. We as
humans will always need a way of physical measurement and rulers will
continue to allow that.
 Lessons Learnt
We would sincerely like to thank Sir for giving us this opportunity to work on this
project, it was a valuable learning experience for us.

Samaksh Sarda (UID - 194146 Roll No. - 62)

• Now I know the importance of data as now I know how to analyse and handle huge
data.

• I had never realised the value of excel as much as I do now. This assignment not
just taught me to research but also taught me that data helps us analyse so much
about the product.

• Also during the course of this project I learned how to focus on details and realise
the utility they provide.

• During the course of the project I also touched welfare aspects of the research.

• The highlighting of welfare aspect brought light to the thought that how can just one
product affect so many stakeholders.

• I learnt the difference between questions and questionnaire. This might be a minor
learning but learning with details is what makes you a better researcher.

• I learned how to research like a researcher who focuses on the objective and then
start looking for information.

• In the early phase of our project we were wondering how would we research on
such a specific product but now I can say that there were a lot of aspects I didn’t
thought of at the start of the project but while researching I came across them.

• One of the major lesson learnt was that how physical observation and analysis may
differ from the hypothesis we predicted.

• I never thought of that a commodities sales could depend more on the seller and less
on the buyer as in case of scales what we observed in our visit was that consumers
tend to buy what the seller sells.

Kanak Malu (UID - 194121 Roll No. - 26)

1.) Firstly, I feel I have become a sharp researcher.

2.) I have never worked on a project with a need to present a comprehensive and
holistic report on one particular product.

3.) I was introduced to the concept of revealed preference theory and it taught me
that collecting information through observation can do wonders. This helped me
find out the non- commercial phrase on the faber castell products.

4.) I have understood the flow with which a researcher should work by first
placing the objectives and then capturing data accordingly.
5.) I learnt to prepare a survey using goggle forms.

6.) I feel confident while working on excel:

• I was always worried on losing my data while shifting through the cells
but now I have understood how we can bank the data.

• I have learnt to use new functions like correl and countif which will surely

help me in the future.

7.) I have learnt how to codify and decodify data which will improve my
presentation skills.

8.) I have understood how to derive the regression equation using excel.

9.) I have learnt the dynamics attached with selling a product and the key role
incentives play while a firm tries to penetrate the market.

10.) For me this project has been like an analog learning experience in the digital
curriculum. Learning to capture so many things for the report has rather
taught me to frame a wide and positive outlook towards all my future
assignments.

Bibliography

1.historyofpencils.com

2.inchcalculator.com

3.splashlearn.com

4.americanhistory.edu

5.fabercastell.com

6.kokuyocamlin.com

7.corporatefinanceinstitute.com

8.creativemechanisms.com

9.doms.com

10.mademehow.com

11.productsmade.com

12.Encyclopaedia Britannica Volume 7 Pg 941.

Appendix
Appendix 1 : Questionnaire

1) What price have you paid to purchase a 15 cm ruler?

2) What price do you pay to purchase a 30 cm ruler?
3) When do you tend to purchase a ruler?
4) Number of pieces you buy in a single purchase?
5) What is your approximate annual income?
6) Any specific brand that you purchase?
7) How long does your ruler last?

Appendix 2 :

Brands
30
28

25

20 19

15

11

10 9 9

5
3 3
2

0
ra
e
j
lin

ed
l

et
s
ra
te

om

at

sa

ne
am

at
as

ap
m

Ap

av
N

D
C

ss

M
C

N
r

la
be

C
Fa

Reason for buying a new scale

60
52
50

40
33
30

20

10
3
0
A (Academic) A & D (Academic and O (Other)
Dra wing Purpose)
 Regression of Income & 15cm Scale y = 0.006x + 5.0674
R² = 0.0986
9

7
6

5
4

3
2

1
0
0 20 40 60 80 100 120 140 160

Working note:
Regression equation :
y = 0.006x + 5.0674

R² = 0.0986
Price elasticity of demand:
β2= 0.006
Avg. Income = 64.16
Avg quantity = 5.45
Edp= 0.006(64.16/5.45) = 0.706

y = 0.0115x + 11.463
Regression of Income & 30cm Scale R² = 0.0678
16

14

12

10

0
0 20 40 60 80 100 120 140 160
 Working note:
Regression equation :
y = 0.0115x + 11.463

R² = 0.0678
Price elasticity of demand:
β2= 0.0115
Avg. Income = 64.16
Avg quantity = 12.2
Edp= 0.0115(64.16/12.2) = 0.06

y = 0.2255x + 1.1491
Regression of Price & Quantity R² = 0.0323
14

12

10

0
0 1 2 3 4 5 6 7 8 9

Working note:
Regression equation :
y = 0.2255x + 1.1491

R² = 0.0323
Price elasticity of demand:
β2= 0.2255
Avg. Income = 2.37
Avg quantity = 5.42
Edp= 0.2255(2.37/5.42) = 0.09