Doms- Business case study from India's Pencil market

 The Indian pencil market is a large and growing market. Its value is estimated at around $4 billion and is expected to grow at a CAGR of 7.7% over the next few years. The major drivers of the growth of the Indian pencil market are rising literacy rate, rising demand for arts and crafts, and increasing popularity of pencils as a promotional tool.

The three major Indian pencil manufacturers are Hindustan Pencils, Kokuyo Camlin and Domus. Hindustan Pencils is India's largest pencil manufacturer with a market share of around 45%. Kokuyo Camlin is the second largest manufacturer, with a market share of about 25%. Doms is the third largest manufacturer with approximately 15% market share.

The Indian pencil market is highly competitive. The three major manufacturers are constantly competing to d
evelop new products and increase market share. In recent years, the Indian pencil market has seen a trend of innovation. Manufacturers are developing new types of pencils with properties such as erasability, water resistance, and lead hardness.
The Indian pencil market is also fragmented. There is a growing demand not only for quality pencils, but also for pencils specifically designed for arts and crafts purposes. Manufacturers are responding to this demand by developing new products that address the needs of these specific segments.
A new company called DOMS is starting to make headlines. DOMS was able to challenge incumbent players by introducing a number of innovative strategies.

History of DOMS

DOMS was founded by Santosh Raveshia in 1996. Lavecia's father was a pencil maker, and Lavecia grew up around the pencil business. He saw an opportunity to revolutionize the Indian pencil market by offering high quality pencils at low prices.
DOMS began selling pencils directly to retailers. The company quickly earned a reputation for its high quality pencils and sales began to grow. In 2003 DOMS opened its first production facility. This factory allowed him to produce two million pencils per day, allowing DOMS to meet the growing demand for its products.  

DOMS Key Strategy

DOMS has adopted a number of innovative strategies to challenge established players in the Indian pencil market. These strategies include:

1.      Focus on quality and innovation.

DOMS is committed to manufacturing high quality pencils. The company uses only the finest raw materials and their pens are manufactured according to strict quality standards. DOMS innovative products include:

-In 2014 DOMS launched the Groove Pencil. The Groove Pen features a unique grooved grip that provides users with a more comfortable and secure grip. The knurled grip also prevents the pen from rolling, a common problem with traditional pens.

The Groove pen was a big hit with consumers. It quickly became one of DOMS' best-selling products. The Groove Pen was praised for its innovative design and comfortable grip. It was also seen as a cheaper alternative to high-end pencils from brands such as Faber-Castell and Staedtler.

The Groove Pencil is a great example of how DOMS has challenged the incumbent players in the Indian pencil market through innovative products. The Groove Pen is a unique and innovative product that resonates with a wide range of consumers. It is a product that has attracted a lot of attention in the Indian pencil market. Below are some examples of other products that DOMS has put on the market that are different.

-DOMS Neon Pen:

These pens are easy to find as they have bright neon colors. It also has a soft core for smooth writing.

-DOMS mechanical pencil:

These pencils have a built-in sharpener so you don't have to worry about sharpening your pencils. Also available in a variety of colors and lead sizes.

2.     Aggressive pricing.

DOMS offered pens at a lower price than existing pens. As a result, the product became more affordable to consumers and DOMS gained market share.

3.     Full Backwards Integration –

Unlike many other brands, DOMS has full backwards integration. All the requirements of a pencil are met internally, which gives it its edge.

4.     Expansion of product range.

DOMS is expanding its product range with a variety of pencils including HB pencils, 2B pencils, colored pencils and art pencils. This allowed the company to appeal to a wider range of consumers.  

 Challenges faced by DOMS

While trying to revolutionize the Indian pencil market, DOMS faced many challenges. These challenges include:

• Compete with established players. The Indian pencil market is dominated by a few established players such as Hindustan Pencils and Kokuyo Camlin. These companies have a long history in the market and enjoy strong brand presence and loyalty among consumers.

• Changing consumer preferences. Digital writing has become a trend in recent years. This reduced demand for pencils and created challenges for DOMS.

• Difficult access to finance. DOMS was a relatively young company and had difficulty raising capital. This made it difficult for the company to expand its business and invest in new technologies.

How DOMS met these challenges

DOMS overcame the challenges it faced by adopting a number of strategies. These strategies include:

•        Focus on innovation. DOMS has continuously developed its products and marketing strategies. This allowed the company to stay ahead of its competitors and appeal to a wider range of consumers.

·        Expansion of sales network. DOMS expanded its distribution network to reach more retailers and consumers. This allowed the company to grow sales and gain market share.

•        Retail Transparency – Another challenge was the lack of retail transparency due to excessive wholesale and product penetration. At the time, companies were less vigilant about how their distribution networks worked.

DOMS wanted to change this and allow the entire distribution base to remain completely transparent with each other. Therefore, DOMS treats channel members as family members. This ensures that products do not percolate from one state to another or from one region to another.

Future Prospects of DOMS

The future prospects for DOMS are bright. The Indian pencil market is still growing and there is still room for innovation. DOMS is well positioned to take advantage of these trends. The company has strong brands, a wide range of products and a growing sales network. DOMS is coming to Mumbai next year with hobbies, art products, writing instruments and experience cafes. The future is certainly bright for brands that value their products above all else.

DOMS' success is a testament to India's entrepreneurial spirit. The company has shown that it can challenge incumbent players in a mature market. DOMS' success also reflects the growing demand for high quality pencils in India.