Founded in the year 1761 by Kasper Faber, the brand which resonates itself with the creativity is the largest Pencil Manufacturer worldwide. The German company is the leading stationary player in more than 120 countries globally distributing an array of products such as Colours (Poster Colours, Crayons, Water Colours), Art & Hobby Kits, Markers, Sketch Pens, Connector Pens, Pens, Professional Artist colours, Pencils, Highlighters, Paint Brushes, Office Supplies, Geometry Box, Colour Pencils, Modelling dough and Glue Stick.
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Segmentation, targeting, positioning in the Marketing strategy of Faber Castell
Segmentation helps in understanding different customer groups in the market and their varied needs and wants. Faber Castell uses the mix of demographic and psychographic segmentation variables such as age, gender, family background, the income of parents, region, behavioral aspects etc.
The company has offerings some of which uses mass targeting strategy such as Pencils, pens, Glue, marker while others like Art & hobby kits, Professional Artist colors, Pencils, Highlighters, Office Supplies; Modelling dough uses selective targeting strategy.
Positioning is a creation of imaginary stimulus in the mind of a customer which helps the brand to be ahead of its competitors. Faber Castell uses the mix of value & usage based positioning strategy.
Marketing mix – Here is the Marketing mix of Faber Castell.
Mission-“To bring to you the tools of expression. We help to draw life into wonderful ideas. We build with the world of imagination that will never fade away.”
Vision- “Quality, tradition, and innovation now and in the future”
Tagline-“Companion for Life”
Competitive advantage in the Marketing strategy of Faber Castell-
- Renowned Company: 256 years old company has been leading the stationary market globally with more than 8000 employees out of which 1100+ are based out in Germany. The company have rich & time tasted experience in the industry which is not just helping the company in being another stationery company but it is helping it in establishing itself in the most competitive and unorganized market.
- Wide variety of offerings: The Company has strong product portfolio which comprises of art & craft and writing instruments targeted not only to the kids but also for the professionals across the world.
BCG Matrix in the Marketing strategy of Faber Castell
Faber Castell operates in business segments such as Creative Studio products, Art & Graphic, Fine writing instruments, Design Memory Crafts and creativity stationeries for kids.
Since in various developing nations, it faces competition from the unorganized sector, therefore, Creativity stationeries for kids and fine writing instruments business segments are the Question mark in the BCG matrix while other segments of business having the dominant position and therefore are Stars in the BCG matrix.
Distribution strategy in the Marketing strategy of Faber Castell
The Company uses brick and Motor distribution model to make the products available in the market through varied channels reaching out to even rural areas. It uses distribution medium such as Pop & moms store, Retail outlets, distributors/ wholesalers, e-commerce sites and supermarket/ departmental chains.
The offering of the company is produced in 9 countries globally while the sales team in 22 countries make the products of the company available in more than 120 countries globally.
Brand equity in the Marketing strategy of Faber Castell
The German Pencil maker brand Faber Castell is known for its innovation, quality, and creativity in addressing the changing needs of the customers. The brand is further divided on the sub-segments brands which consist of Children’s Brands comprising Creativity for Kids and premium children ART products; Premium Art Brands comprising Creative Studio and Design Memory Craft while Fine writing Brand segment comprises of Graf von Faber-Castell and Faber- Castell Design. The group has been valued at € 613 million (EUROs).
Competitive analysis in the Marketing strategy of Faber Castell
The challenge companies’ face by operating in this business is the availability in the market to the remotest location which not only reduces the margin for the channel partners but also affects the prices of the offerings to which Faber Castell is not an exception.
The Company competes based on the large SKU’s ( stock keeping units), varieties of products along with several sub-brands such as Ambition, Loom, Ondoro, N’ice Pen, GRIP 2011 and many others.
Some of the competitors of Faber Castell are CAMLIN, Karlbox, Newell Rubbermaid, Zebra, Pentel, Midori, Parker etc.
Market analysis in the Marketing strategy of Faber Castell
The market is ever growing with the emergence of developing nations such as India where the market size of stationary items (largely in which the share is of Pencil and Pens) is? 15000 crores approx.
The unorganized sector, local suppliers, technology adaptation and the local companies are being big risk factors that the companies operating in the market are going through. Although there are structural changes in the market due to a fast adaptation of the technology but the underlying segment of school going children is what drives the growth of the companies.
Customer analysis in the Marketing strategy of Faber Castell
The company serves to the wide array of a customer with its varied offerings. In Retail Businesses majority of its customer are in the age group of 5-20 years who goes to schools, universities, and colleges.
In the B2B (business to business) segment it caters to the changing needs of the big corporations, government institutions, architectural firms, colleges, universities/ colleges etc.
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