Académique Documents
Professionnel Documents
Culture Documents
He had made enquiries in the market about the different kinds of ball-point pens available. No
ball-point pens were available in the price range of 75 to 80 paise. Wilson was selling a different
kind of ball-point pen at Rs. 1.75. This too was a kind of throwaway pen as its refill could not be
changed. There were, however, several other ball-point pens available in the price range of Rs.
1.50 to Rs. 6. Most of the cheaper pens would require substitution of refills every now and then.
Each refills cost was 30 paise. As compared to Mr. Shahs pen, the ordinary ball-point pen
would require at least three refills of 30 paise each for the same life or amount of writing. There
were other ball-point pens in the market too; requiring refills costing Rs. 3.50 each.
Market for Pens
Mr. Shah thought that the pen market was huge. He knows from personal knowledge that there
were lakhs and lakhs of students in the primary and secondary schools. Therefore, the potential
users of ball-point pens could be a few hundred lakhs of students in colleges and schools. He also
thought that there was a large market for offices and institutions, as well as companies. He
thought that the throwaway pen would be very suitable for Banks, Post Offices, etc, where there
was a larger public use, with people sometimes putting the pen in their pockets by mistake and
walking away.He also thought that his throwaway pens could complete even with pencils. He
knew that the per unit price of the pencil was fairly high, and hence, the throwaway ball-point
pens might slowly replace the use of pencils.
Mr. Shahs Concerns
Mr. Shah was wondering whether or not he should make the necessary investment for producing
a few lakh pens per year. He was well aware that he did not have any substantial knowledge of
and skill in the marketing of pens per year. He was well aware that he did not have any
substantial knowledge of and skill in the marketing of pens. He did not know what would lead to
larger acceptance of his pens by traders in terms of readiness to stock and sell them. He was also
not very clear as to the need for giving a brand name to his pens, and how much advertising and
promotion effort he ought to put in.
Mr. Shah has approached you to help him. As a consultant, what advice would you give
him? And Why?
*****