Consumer Behaviour

Assignment #4

(Twin Sister Pencil Manufacturer Case)

Submitted by

Abba Sharma S001

Abhishek Kumar S002
Ajay Upadhay S003
Alok Srivastava S005
Anoop Raj Varshney S009
Arinjay Jain S010
Ashok Kumar Meena S012

Faculty of Management Studies

University of Delhi
New Delhi

Submitted on: 27th August 2018

 Decision Making Process

Introduction

T he consumer decision making process is a complex intermix of perception,

consumer beliefs, cognition, social influences, research, information search,
personal preferences, choices available etc. The consumer, based on his own
involvement (high or low) with the decision-making process exhibits different buying behaviours.

F igure 1: Decision Making Steps

1. Recognition or Need Awareness: The need recognition or need awareness takes

place due to external or internal stimuli and interest of the consumer. Need Recognition
refers to the instance where a consumer recognizes that a need or problem exists that
needs to be satisfied. Need Recognition is usually triggered by an internal stimulus when
a particular need, such as hunger or thirst, rises to a high enough level to become a drive.

 Pencils have short lived, generally two to three days depending upon usage
and its brittleness. The functional usage of all the pencils are same so point of
differentiation (POD) for them is everlasting, smooth writing, do not break,
smooth grip, different colours and different shape.

2. Information Search: The information search is also varied depending upon

consumers involvement with the buying decision process.

 Buying pencil is low involvement process and hence information search will
be very less.
  The consumers are more attracted towards the advertisement shown on the
TV’s and newspapers, Magazines, Billboard etc.
 The major decision making process takes place at the point of sale.

3. Evaluating Alternatives
While evaluating alternatives, a consumer also focuses on areas which are belief, price, styling,
attitudes and warranty. No single process is used by all consumers, or by one consumer in all
buying situations. The most current model sees the consumers forming judgments largely on a
conscious and rational basis. This evaluation depends on the individual consumer and specific
buying situations. The evaluation of alternatives also depends upon host of factors. The factors
are:

 Since the functional benefits of all the pencils remain same, the consumers doesn’t
neccassarily evaluates other alternatives. They get influenced by colours, shapes, Brand
recall, lifespan of pencil. When customers reaches the point of sale, it makes immediate
decision to buy the pencil on the basis of brand recall or the suggestions of the Dealer.

4. Purchase Decision
 The consumers divide his decision in areas of quantity, dealer, brand, payment
method and timing while making a purchase decision. There are certain other
intervening factors in purchase decision which impact the actual decision making.
This can be seen as under:
Attitude of
 Others
Purchase
Evaluation of Purchase Decision
Alternatives Intention
Unanticipated
Social Factor
  The consumer may reach a shop and buy pencil instantly depending upon his choice of
colour, shapes or brand recall.
 The price and functional benefits are almost same for all the pencils.

5. Post Purchase Behaviour

The post purchase behaviour include post purchase satisfaction or dissonance where the
customer can be delighted, satisfied or under dissonance. The post purchase options
include exit the product mentally and physically, voice options, use redressal mechanism
etc. This is followed by post purchase disposal.
 After the purchase of the pencil the consumer uses it and gets some experiences.
These experiences could be good or bad. If the pencil gives satisfaction to the
consumers in the terms of Smooth writing, easy grip, efficiency, long lifespan,
less brittle then the consumer will buy the same pencil again and again otherwise
they will dispose the pencil.

Strengths for Twin Sister:

I. The opening of the Indian economy has attracted the attention of Twin Sisters.
II. The booming population and high birth rates provide great opportunity to education
industry.
III. Also government has passed an Act which provides for education for every child.
IV. It is still a preferred mode of writing in early nursery and primary education. This
promises a good market for the pencil.
V. Pencils are no longer lead pencils used for writing on paper rather it has evolved into
cosmetic product as a liner
VI. Primary School students are the major market because still today these schools prefer
wooden pencils than the mechanical pencils.

Challenges for Twin Sister:

I. It is a strong Brand in Bentalonia but is new entrant in India.

II. The market is flooded with hundreds of pencil manufacturer primarily because it is
not difficult to make pencils.
III. Pencil on the shelves are no different from another apart from their names, Packaging
and Wood colours.
IV. Major players in the field are:
 Hindustan Pencils:
 Largest Pencil Producer,oldest firm to foray business into pencil
production.
 Apsara and Natraj are two popular and acceptable brands
 Camlin:
 Another Household brand in India
 It has a floral pattern which acts as a differentiator (POD)
 ITC:
 Sells pencils, pens, Notebooks under the brand name of Classmate
 It has a strong distribution channels

V. Recently MNC like Faber Castell and Misubishi has set up their operation in India
which will give tough competition to M/s Twin Sister.
VI. RR industry has wide array of stationery product including Pencils, pen, color pencils,
non –wood pencils, crayons, erasers.Its pencils are extremely soft and easy to write.
VII. Small scale pencil producers has forced to shut down because of many competitors in
the market which are selling their pencils at a very competitive price.
VIII. Scale of operation plays an important role for the survival in the business.
IX. Kids who are the biggest customer are not loyal to a product/ Brand.

Strategy:

1. There are a lot of competitors in the market . We know that Pencil is the pencil. They
all are same and feel same. So, our strategy would be to present it different from the
other pencil i.e concept of point of Differentiation which Natraj Pencil had
successfully done to capture the market. Below are some of famous and successful
advertisement of Natraj Pencil which made the Natraj pencil different from the other
pencils.

Fig 1: Last Longer and doesn’t break easily.

 Figure 2: Natraj makes you winner

Figure 3: Drawing and Floral Pencils

Figure 4: Camlin Exam Pencil to come 1st in the Class