( 1 ) Marketing Report On Luxor International Pvt. Ltd. Session 2011-2013 Submitted To: - Submitted By:- Mr S. Suresh Shikhar (11609115) Assistant Professor Shravan (11609116) ShubhraAgarwal (11609117) Sneha (11609118) Swati Gupta (11609119) Saurabh (11609120) Jaypee Business School A constituent of JIIT Noida
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( 1 )
Marketing Report
On
Luxor International Pvt. Ltd.
Session 2011-2013
Submitted To: - Submitted By:-
Mr S. Suresh Shikhar (11609115)
Assistant Professor Shravan (11609116)
ShubhraAgarwal (11609117)
Sneha (11609118)
Swati Gupta (11609119)
Saurabh (11609120)
Jaypee Business School
A constituent of JIIT Noida
( 2 )
Table of Contents
Executive Summary
1. Company History
2. Industry Structure
3. Environment
4. Products
5. Price
6. Distribution Network
7. Promotion
8. Customer Survey Analysis
9. Suggestions
10. Appendix
a. Sample Customer Questionnaire
b. Sample Dealer Questionnaire
c. Bibliography
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Executive Summary
The purpose and the scope of the document are to study, analyse and understand the business
and marketing practices of Luxor International Pvt. Ltd. In order to achieve this objective,
two stages were identified- Data collection stage and Analysis stage. The first stage includes
data collected from various sources such as:-
1. The Origin, History of the company, its growth, the board of Directors, Operations
units in India and overseas.
2. Few closest competitors in the industry of Writing Instruments- Linc, Reynolds,
Rotomac, Montex, Cello, their origin and growth.
3. Financial statements of the company.
4. Information about the 4 P‟s of marketing.
5. A customer and dealer survey to understand their decision making process.
The analysis stage includes understanding the implications and relevance of data
collected and drawing conclusions about the company‟s business and marketing
decisions.
Luxor Group of Companies, headed by Mr D K Jain, President of the
Company, started manufacturing writing Instruments in India in the year 1963. Today
LUXOR is the brand leader in Indian Writing Instrument Industry, having market share of
over 20 percent with an excellent network of dealers and distributors. Luxor was formed in
the year 1991. As of today Luxor is a leading manufacturer and exporter of Writing
Instruments from India with over 15 percent of Export Market Share with its 4 manufacturing
facilities in New Delhi and 3 at Bombay, employing over 600 people.
Luxor is committed to produce quality Writing Instruments to the total satisfaction of
its customers. It is the policy of Luxor to develop and supply innovative products meeting the
customers‟ requirements from time to time. The company realizes that this shall be achieved
only through continuous upgradation of technology, team work, motivation of employees and
participative management. Apart from ISO-9002 standard, Luxor products also conform to
DIN quality for ball pens series and for the entire marker range. Also Luxor‟s Children range
colouring pens and fluorescent markers conforms to ASTM regulations for U.S.A. Market
and are NON-TOXIC.
Luxor has well-qualified Engineers in its R&D Department who constantly research
and develop new products. Also the company has own Designers for metal ball pen and gift
sets. Luxor has in-house technology to manufacture nylon fibre nib, synthetic filters and
custom design automatic assembly machines. Luxor is equipped with its own Fibre Nib Plant,
Reservoir Plant. Luxor has its own lacquering Plant for metal pens and in-house assembly
machine designing for its products and metal products development cell apart from automatic
jumbo metal refill plant.
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Luxor was the first to introduce many new technologies in the Indian Market i.e.
We are looking out to expand our Global Operations, and invite Distributor Partners for every
market.
Flair
Flair, being the leading exporter of fine writing instruments from the Asian continent,
commenced its success story 4 decades back with an exclusive range of fine writing Metal
Pens under the able guidance of Mr. K. J. Rathod, the visionary & President of Writing
Instruments Manufacturer
Organization, India.
During the era, Flair has ventured
into various territories by the
efforts of Mr. V. J. Rathod, the
financial mentor of the group,
who has also served a successful
tenure as Chairman of Plastics
Export Promotion Council, India.
Today the new generation is
heading the group and taking it to
astonishing heights of success
with the pragmatic but futuristic
approach, where Mr. Rajesh
Rathod is promoting the brand
Flair in all the continents whereas
Mr. Mohit Rathod &Mr. Sumit
Rathod are busy capitalizing the
domestic market & developing
new terrain of business.
Flair attributes innovation & commitment to quality as it core competence. These
competencies have made Flair one of the ace manufacturers of complete range of writing
instruments from India. Thus, today it is exporting to more than 75 countries across the globe.
Flair has expertise for OEM business as well, and its clientele includes most of the major
brands from the field of writing instruments.
Flair, being an ISO 9001:2008 & SA 8000:2008 certified company, abides to all the global
guidelines. Flair has joint venture & tie ups with some of the pioneers of the writing industry,
and 3 of its own brands FLAIR, LANDMARK, and RUDI KELLNER are conquering the
whole world.
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Flair's product assortment includes Plastic Ball Pens, Gel Pens, Metal Ball Pens, Roller Pens,
Fountain Pens, Gift Sets; Refills & Water based writing instruments such as Markers, Hi-
lighters, and Permanent Markers & Correction Pens. So, with the complete range of writing
instruments, we welcome you to
experience fine writing from the house
of Flair.
Linc
Linc Pen & Plastics Limited was
incorporated on October 24, 1994 at Calcutta
in West Bengal with the main object of
manufacturing and dealing in all types of
writing instruments and other plastic molded
goods. The company has obtained certificate
of Commencement of Business on 7th
November, 1994.
In the year 2001 Company has launched Uniball-165 eye needle point, a roller pen, into the
Indian market. The Company has launched Linc Tipgrip, a trendy ball pen with a rubber grip.
Linc Pen & Plastics Ltd., one of the leading manufacturer and exporter of quality writing
instruments in India for more than 30 years, we also having our own retail outlets of
stationery, office accessories & writing instruments with in India. This type of outlets is not
available in India earlier.
We are also importing ball point pens, roller pens, mechanical pencils &stationery items from
mainland china and other territories for Indian markets.
We are exporting our owned manufactured pens to more than 30 countries. Few of them are
Wal-Mart, pound land, whsmith, tesco.
Our production capacity of various types of pens per day is around 1600000 pcs (complete)
and spare refills around 400000 pcs.
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Products
The Luxor Group, India‟s only Super brand in writing instruments manufacturing & exports,
has scripted a saga of success over the past five decades and made its mark in both domestic
and international markets. Exquisite, stylish and technologically advanced, each Luxor
creation is a delight to experience and a pride to possess – penning the word power with ease
and grace. Be it young kids or go-getter university blues, busy executives or cream corporate
– the company has a writing charm to suit every style and flair.
The World values the magic of Brand Luxor – the ingenuity & innovation, care & efforts,
which help craft every precision tool. And the Group has brought under its umbrella the
Fabulous Foursome – Pilot, Parker, Waterman and Paper Mate, to win the hearts of
discerning Indians. Luxor holds the manufacturing and marketing franchise of these world-
famous brands in India and brings to you the best-ever lifestyle writing tools which speak of
class & elegance. Think Luxor when it comes to quality and style. It‟s a brand that inspires
customer confidence and builds a lifelong bond.
Tech Ink
LUXOR
Birth of an Indian Super brand
A vision to provide truly home grown
writing instrument for each occasion to
each individual gave birth to brand Luxor
in 1963 - India‟s first writing instrument
brand. Luxor brand was built on the
fledging nation‟s desire to be seen as self-
reliant. Luxor pioneered fibre-tip
technology fine liners in 1975 and
subsequently roller-ball pens in India and stylised them to meet the diverse
requirements of varied market segments. Luxor was not only the first Indian
manufacturer to introduce high-tech markers for various applications, but had also
invented Dry Safe Ink Markers – so that these special
pens could be left uncapped for hours without the ink
being dried up.
Celebrity Endorsement
If style is the man, the craft of fine writing comes
naturally. To bring home the point even more effectively,
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Luxor set the trend for celebrity endorsement in the '60s – signing up movie stars,
sportsmen and other famous personalities to promote the Luxor range of writing
instruments. Most of these were not paid endorsements though, as star-appeal was not
the be-all factor in the early days of mass advertising. . Luxor‟s Ad campaigns of the
early years stated: For the first time in India, and the “hit home” approach went well
with Indian consumers – laying the foundation for Luxor‟s exponential growth in the
'70s and '80s.
Luxor for All
Luxor has a complete range of metal pens under the brand
name Metallz; ball pens& gel pens for the mass segment and
a complete range of colouring solutions for the kids under
the brand name of Luxor Junior. Attractive packages in
many-hued shades make the non-toxic Luxor Junior products
all the more appealing for the junior citizens.
The sound reliability and impeccable quality of its varied
product range have helped Brand Luxor to win the trust and
love of masses over the years and Luxor is continuously
striving hard to build further upon its legacy.
PARKER FUNCTIONAL
Launched in 1996 in India, Parker soon caught the fancy of the
nation. Today it is available in more than 30000 outlets. Parker has
also been voted unanimously by consumers as one of the most
trusted brands in India, (Reader‟s Digest Most Trusted Brands
Survey - 2006).
Parker has served professionals flawlessly for decades now, with
writing solutions that combine reliability, durability, and timeless
style. These qualities are also embodied in the choice of its brand
ambassador Mr. Amitabh Bachchan, an icon himself.
Parker functional range consists of four families:
BETA - Pens at an affordable price. Young, Dynamic,
Youthful and Exciting Beta. Available modes – Fountain
pen, Roller Ball and Ball pen.
VECTOR - Pens that appeal to a wide range of age groups.
Perfect for those who want choices, options and selection.
Available modes – Fountain pen, Roller Ball, Ball pen
and Pencils.
JOTTER -Available in two modes – Roller Ball and Ball
pen, Jotter is a reliable and affordable functional working
tool for all ages.
REFLEX -Comfortable, modern and innovative pen in
Parker with elongated “comfort grip”. Meets the needs of
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the next generation. Currently available in Ball Pen mode.
Parker accessories are the backbone of the entire range of Parker pens.
PARKER PREMIUM
Indulge in your passion to possess a Parker Premium and take a closer look at the nine major
categories available for your selection:
Duofold
A fountain pen with a most distinguished look,
Duofold blends modern technology with
outstanding craftsmanship and stylish elegance –
greatly appreciated by the rich and the famous.
Available in 23k gold or rich white platinum
trims, this precision-crafted writing wonder
remains a prize possession for its aesthetic appeal
and enduring qualities.
Parker 100 A perfect combination of understated opulence and sharp, individualistic style. The
nickel palladium trim and a rhodium-plated 18k gold nib make it the embodiment of
Parker‟s distinguished legacy and vibrant future – juxtaposing the classic and the
contemporary, the conventional and the avant-garde.
Sonnet
The Sonnet line possesses a sophisticated harmony, synonymous with success and
distinction. Its uniqueness lies in its balanced style and classic dimensions. Each
Sonnet remains a distinct mark of your confidence, a bold statement of your belief
and a companion for lifetime.
Latitude
The classic elegance and non-conformist looks are firmly supported by the unrivalled
quality of the Parker brand. Clean and simple, the Latitude is a refreshing breakaway
from the traditionally ornamental writing instruments. Go for this modern minimalist
design to accent a truly individualistic style.
Rialto
A beautifully crafted veneer of taste and tradition surrounds the Rialto‟s smart and
sleek contour. It is the ultimate embodiment of distinction, grace and charm –
appealing to the connoisseur within.
Insignia
A classic accessory for the quietly discerning, Insignia offers a precise combination of
authentic quality and effortless style – skilfully captured in a distinctively slender
build and refined finishes. Clearly special, clearly Parker!!!
Frontier
Frontier is conservative and forward-thinking – exploring new horizons yet never
losing sight of its foundation. The soft-touch grip and exquisite finish give the pen it‟s
distinctive, contemporary build combining style with value, and reliability with
innovation.
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3 In 1 XL A practical, twist-action ballpoint pen with a wider body – fitting easily in any grip.
Designed to provide everything a modern user might need from a simple, elegant
model.
Dimonite
Fresh and sophisticated with a subtle, futuristic look. Just perfect for the young and
urban user with an eye for the elegant and the aesthetic.
WATERMAN
A prize possession of the rich and the famous, the achievers and the aspiring, the complete
range of the premium French pen brand has been brought to India by the Luxor Group in a
bid to serve the niche market of the discerning and the
connoisseurs.
Ingenuity and innovation mark the birth of the first
refillable fountain pen as Lewis Edson Waterman
invented a radical inbuilt ink supply in 1883 and
changed the art of pen craft forever. The coveted brand
won the medal for excellence at the 1900 Paris World
Exposition and kept its date with history when the
British Prime Minister David Llyod George signed the
Treaty of Versailles with a Waterman. Today,
Waterman stands for a unique blend of heritage,
aesthetics and technology – a lifestyle product valued for its sophistication and exclusivity.
The top-of-the-line gold and sterling silver range on offer includes:
Serenite
makes an elegant impression with an 18 carat gold
rhodium-plated nib for writing, which is a pure
sacred gesture.
Edson
Named after Lewis Edson Waterman, its 18-carat
solid gold nib makes writing a pleasure and a
majestic experience.
Man 100 A true testimony of the goldsmith‟s exquisite art and
a unique blend of luxury & refinement, each one are
numbered. Available in fully hallmarked 18-carat
solid gold or sterling silver with an elegantly
guilloche-engraved barrel and offers outstanding
technical precision.
Exception
From purity, balance and graphic impact of the square concept comes an
Exception…The very first quadrangular lacquered writing accessory.
CARENE Deluxe Featuring the power of a streamlined silhouette, the elegance of pure and fluid lines
and boasting an 18 carat solid gold nib set into the section. arene Silver Meridian is
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illuminated with sparkling silver and delicate guilloche engraving, offering the
ultimate in contemporary refinement.
CARENE
Carene knows how to carry off intense yet subtle
colours. A satin lacquered barrel offers a truly
modern look complete with an 18 carat solid gold
niband golden trims.
Charleston
A design which takes you through space and time.
Its tapering form extends to an 18 carat solid gold
nib, streamlined clip and technical performance –
all a proven mark of its definite modernity.
Expert
With a generously proportioned barrel designed for a masculine hand, an exquisitely
bevelled button and a stainless steel nib that promises to be infallible, Expert offers
both originality and style.
Hemisphere
Both universal and manifold, Hemisphere combines gold or chrome with steel and
offers marble effect finishes with colors, matte or gloss black with gold.
PILOT
Pilot symbolises a pathfinder – paving the way for a
large ship, leading people through obstacles and
strengthening the spirit of camaraderie through tough
times. Since its creation in 1918, the world-renowned
brand of premium pens has been the guiding force and
preferred choice of connoisseurs across the globe –
helping writers sail with pleasure and ease, at the speed
of light.
Coveted worldwide for its superior quality, high level
of innovation and comfort of use, the Pilot brand was
first brought to India by the Luxor Group in 1982. The
first model to be officially launched in the country was the Pilot 05 micro tip range with
needle point technology. Sophisticated and affordable, these technologically superior,
revolutionary pens are designed to provide you with the best grip and the smoothest writing
experience. Pilot Hi-Tecpoint 05 pens feature a unique 3-dimple tip technology from Japan
for precision writing, 0.5 tungsten carbide balls for consistent line width of 0.3mm and a
writing length of 1500m, three times better than any other needle point gel pen.
LUXOR STATIONERY
Luxor Group - A trusted name in writing instruments has expanded its
heritage to the stationery arena also. Bringing fifty years of rich
experience and expertise to the branded stationery products industry,
Luxor group has accepted the challenge to provide total stationery
solutions to discerning consumers by creating, communicating and
providing stationery products and there by capturing value in a market
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dominated mainly by local players. This has led to the launch of - a host of new brands viz
Luxor Excel, Luxor Star and Luxor Paste-ix for valued consumers.
Based upon its commitment towards complete stationery solutions School- Office-Luxor is
what the stationary brands try to reinforce through these brands.
TECHINK INDUSTRIES
Techink Industries is a leading manufacturer of writing inks in India. Techink
Industries is having its operations at Noida, India. It has a strong team of
experienced and qualified engineers and chemists supported by efficient
Administrative and Production staff. The core team has more than 25 years of
experience in manufacturing various types of inks used by leading pen
manufacturers of India. Today Techink can develop suitable ink for any type of pen.
Inks developed by Techink Industries confirm to EN-71 Part - III of European Standards and
ASTM (D) of USA. Techink product line includes - Colour Pen Inks, Permanent Marker
Inks, Highlighter Inks, Roller Ball Inks, and OHP Ink etc.
Techink has a tradition of strict quality control and standards. Because of which many
customers of Techink have designated the goods to 'No Incoming Inspection Zone' after
reviewing the quality of their supplies from Techink over a period of time.
Luxor products are exported to more than 75 countries, while the Luxor brand is a registered
trademark in more than 120 countries. Established in 1990 as the sole exports division, Luxor International has retained the Group‟s position as India‟s top Manufacturer-Exporter of
Writing Instruments for the past six years – revolutionising the writing instruments segment
and setting up benchmarks for other players. From exquisitely crafted, high-performance ball
pens, fountain pens and fine liners to robust markers & highlighters, mechanical pencils, gift
sets, sketch pens, crayons and water colours – the Super Brand‟s product portfolio includes a
wide array of creative innovations supported by a full-fledged R&D Department where
inventions and technology up gradation remain a continuous process. With this focus in mind
Luxor has inaugurated 100% Export Manufacturing Unit in Noida in 2006.
The Quality Creed
The Luxor Group‟s enduring commitment to Quality and Reliability has been further
endorsed by the prestigious ISO 9001:2000 certification for both its export and domestic
divisions. A company-wide TQM platform also ensures continuous improvement and total
compliance with global quality standards. Our children‟s range of non-toxic colouring pens
and fluorescent markers conforms to ASTM regulations for the US market while Luxor inks
have been tested and declared to be child-safe by the American Arts & Crafts Institute.
Furthermore, Luxor is the only ISO 14001 and OHSAS 18001 certified writing instrument
manufacturer in South Asia – implementing best-in-class Environmental Management and
Occupational Health & Safety Assessment Systems across the organisation and its state-of-
the-art facilities. At Luxor, safety is given paramount importance, and stringent safety &
occupational health programmes are in place to ensure the well-being of its employees.
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Accolades
During its long and eventful journey, Luxor International has earned many a laurel in
recognition of its exports success. The company has won the Highest Exporter
Award (Writing Instruments) for the six consecutive years (2001-2006), bestowed by the
Ministry of Commerce, Govt. of India. Luxor International has also been conferred Two-Star
Export Trading House status by the Ministry of Commerce & Industry, and claimed
several Quality Awards from the Quality Circle Forum of India (Northern Zone, Delhi
Chapter). HSBC Gold Card Certificate was also awarded to Luxor International in
recognition of Best Performance and Good Track Record.
The Luxor Group thinks ahead of a volatile market, innovates best-quality writing solutions
on par with international standards and meets the myriad requirements of its rapidly growing
global customer base – so that the Group shall retain its leadership position as a
manufacturer-exporter of innovative writing solutions and script new success stories in the
years to come.
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PRICING
LWIPL had launched its first brand in 1963 - the 'Artist' fountain pen. However, owing to its
small scale of operations during that time, the pens were made available only in Delhi and
surrounding areas. During the late 1960's, the Artist brand was renamed as 'Luxor.' In 1982,
LWIPL launched Pilot 05 micro tip pens with needle point technology.
Priced at Rs.10, this was the first model of Pilot pens to be officially launched in India. The
pens were manufactured at the Delhi plant of LWIPL. Though Pilot pens were available in
India prior to the launch, they were available only in the grey market. LWIPL invested
heavily to upgrade its technology to manufacture micro tip pens. These pens were launched
with the intention of bridging the gap between ball point and fountain pens. Micro tip pen
was similar to a ball point pen, with the ink filled within.
This turned out to be a unique selling proposition for Pilot pens and they were quite
successful as they were considered to be an ideal substitute for fountain pens. LWIPL was
able to sell 1, 00,000 Pilot pens in the very first year of their launch. However, the Pilot pens
launched initially were not refillable.
Due to the price conscious nature of middle class people in India, the concept of disposable
pens was not cherished for long. This prompted the company to launch a new, refillable
variant of these pens. LWIPL's pricing strategy was determined by factors such as the
demand for products, their brand image and the nature of the target audience. When Pilot 05
was launched in 1982, it was priced at Rs.10, and it was considered to be expensive at that
time.
However, in 1990, eight years after its launch, when the demand for these pens reached its
peak, Luxor sold them at Rs. 25 each. The price continued to remain the same till early 2003,
indicating the stagnant nature of its demand. On the other hand, Pilot V5 was priced at Rs.45
at the time of its launch. These pens were priced high due to its superior technology and the
brand image that Pilot pens enjoyed. However, after 12 years of launch, the price of these
pens had to be reduced by Rs.5.
In 1996, LWIPL launched Parker pens in India. Though Parker pens were popular in India,
they were available only in the grey market. Parker pens were primarily targeted at the upper
middle class consumers, senior level executives and bureaucrats. The initial range of Parker
pens launched included Sonnet, Rialto, Frontier, Vector and Parker Classic. The most crucial
decision for LWIPL was pricing. At the time of the launch, the prices ranged between Rs.90
to Rs.10, 000. Priced at Rs.90, the "Vector" brand of pens was the cheapest in the range.
Within four years, "Vector" became the largest selling Parker brand in India. During the
corresponding period, the price was increased to Rs. 140.
In 1999, LWIPL launched the 'Papermate' brand of pens in India. Papermate was the largest
selling brand in the US during that time. The brand strengthened the presence of LWIPL in
the low priced pen segment. These pens were primarily targeted at the school and college
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students and were priced in the range of Rs 4 to Rs 13. The specialty of this product was that
they possessed the Lubrigude ink technology, which ensured that the ink did not leak, thereby
offering a comfortable writing experience.
In order to penetrate the Indian market, the company offered these global brands at lower
prices. For example, the Parker Vector roller pens were launched at $3 compared to $9 in
Europe. The Parker refills were priced at a rate of Rs.35 compared to $3 in Europe. Similarly,
LWIPL launched the Papermate pens at nearly 1/3rd of the price in the US. In 2000, LWIPL
launched the Parker Beta range, with prices ranging between Rs.50 to Rs.75.
Targeted at the youth, the company sold around one million pens within a couple of months
of its launch. In 2002, Parker pens were available in three broad price categories (Refer Table
I). By that time, the Parker range of pens had emerged as the largest selling brand in the
LWIPL pens portfolio, contributing 40% of its revenues. LWIPL also launched a series of
innovative products in order to mark certain occasions.
In January 2000, the company launched the "Millennium series" of Parker Vector roller pens.
These pens had the world map inscribed on them and their unique design enabled people to
determine the time difference between countries. Priced at Rs.250 each, these pens became
very popular.
In November 2001, LWIPL launched 'Special Moment', a gift pack consisting of Parker
Vector and Parker Beta pens, which had the signature of the brand ambassador, Amitabh
Bacchan in scripted on it. These pens were primarily targeted at pen collectors, who were
fond of Parker pens.
THE PARKER RANGE
MODEL PRICE RANGE (in Rs.)
BETA 50-75
VECTOR, REFLEX. 100-400
SONNET, RITALTO, FRONTIER 1000-5000
Source: ICMR
In February 2002, Parker launched the 'Black and White' range of Parker Vector ball pens
which were priced at Rs.145.each. In mid 2002, the company launched the 'Football Legends
World Cup edition' of Parker Vector pens in order to cash in on the popularity that the event
enjoyed. The pens had photographs of famous football stars such as Maradona, and Pele
inscribed on them. These pens were primarily targeted at avid football fans, who would be
interested in collecting pens bearing photographs of their favourite players.
In December 2002, LWIPL launched the "Gajgamini" range of Parker Sonnet fountain pens.
The limited edition of pens (only 500 pens were released) was named after the paintings
created by noted artist MF Hussain and also had his signature inscripted on them. LWIPL
priced these pens at Rs.5000 each.
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DISTRIBUTION
In 1999, LWIPL launched the 'Papermate' brand of pens in India. Papermate was the largest
selling brand in the US during that time. The brand strengthened the presence of LWIPL in
the low priced pen segment. These pens were primarily targeted at the school and college
students and were priced in the range of Rs 4 to Rs 13.
The specialty of this product was that they possessed the Lubrigude ink technology, which
ensured that the ink did not leak, thereby offering a comfortable writing experience. As the
Parker pens were initially targeted at the premium segment and carried a high price tag, they
were launched only in the four metros - Delhi, Mumbai, Kolkata and Chennai. The pens were
made available in large stationary stores and point of purchase displays were attached a lot of
significance. These pens were put on display in special racks so that people could notice the
complete range of pens. As the demand of Parker pens grew, they were made available in
other urban areas of the country.
In order to increase the reach of Parker pens, the low priced versions were made available in
small stationary shops. LWIPL later opened exclusive outlets of Parker Pens in all major
cities in India. When LWIPL launched Papermate pens in India, it changed its distribution
strategy vis-a-vis that of Parker pens. The pens were targeted at a wider cross - section of
people, which included students, executives and elderly.
Apart from relying on its existing sales force, the company tied up with Indian Shaving
Products Ltd (ISPL) to distribute pens in the targeted one lakh retail outlets in the first year of
its launch. While the sales people concentrated on traditional retail outlets such as stationary
and bookstores, the tie up with ISPL ensured that the pens were available in FMCG outlets
such as shops and supermarkets. This multi-pronged distribution strategy enhanced the reach
of Papermate pens.
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Promotion
Production of pens is increasing by the day. Being such a large country, it is very difficult to
build a brand with the population of 100 crore. So advertising has to be done to reach across
Assam, Kerala, and Sikkim etc. have to tell the people the brand is alive.
LWIL is continuously advertising to tell the people that Parker is here; Pilot is here, Amitabh
Bachchan is right here endorsing the products etc. Of course, marketing and sales play a very
important role, but advertising helps to give pull.
LWIL does many events because it is a direct way of reaching out to the consumer. Two
years, LWIL organized a painting competition sponsored by The Times of India, at Pragati
Maidan. Over 10,000 students attended the event. LWIL sponsored special prizes by Luxor.
If 10,000 students go home with Luxor pens, it goes to 10,000 families; multiply it by 4 -
around 40,000 people
see the pens.
Luxor also participated in The India International Trade Fair (IITF)-2002 at Pragati Madan,
where more than 7,000 companies participated. All their brands were showcased at the stall.
Their main objective was to showcase and promote our range of writing instruments - all
under one roof. It paid off, as they got an overwhelming response from this fair.
LWIL also holds several theme events to cash in on a current trend. To ignite the world cup
fever, Luxor came up with 'Catch A Ball' promotion, where they had renowned cartoonist
Sudhir Tailang designing packs that have cartoons of cricketers. With this promotion, cricket
lovers got a Beta Roller Ball Pen in new body colors like Orange, Black, Fluorescent Yellow
and Blue and a
cricket ball worth Rs 20 free.
LWIL brought out some other events in last few years like "Luxor Cricket 2003 pen". Priced
at Rs 145, this pen had a silver body with blue ink, the all-time favourite of Indian cricket.
Crafted with the cricket bat clip and cricket ball on the top of the pen, the entire schedule of
the world cup with complete details of the teams, the venue for the match's etc was printed at
the back of the packaging. The concept behind it was to capture the world cup fever and to
allure religious cricket followers
LWIL focuses a lot on marketing activities. LWIL introduced an exclusive deal this summer
with 'Summer Mega Offer Pack'. With a special assortment of writing instruments from
LWIPL's four popular brands - Parker, Pilot, Luxor and Papermate, this pack aims to target
the distributors and the customers through a unique offer. Priced at Rs 5115, it provides the
retailer greater value for money with an enhanced margin of 28% and a Yashica Camera
worth Rs 1305 free with the pack.
Some years back Luxor launched the "Jo Jita Vohi Sikander" Contest, a unique promotion
for traders. They would enjoy the benefits of the Club Parker membership wherein they
( 27 )
would receive direct communication from the company related to new products, exclusive
signage‟s, and discount coupons. They also gave traders an opportunity to win exciting
prizes like Samsung TV, Birla OTG, Moulinex Juicer Mixer Grinder and VIP Strolley, if
they achieved a certain
sales target.
LWIPL promoted its products primarily through advertising in the print and television media.
The company hired several advertising agencies in the past two decades. The first advertising
agency hired by LWIPL in the 1980s was 'Creative Works18', to promote its Pilot pens. In
the early 1990s, the company shifted to another agency, RK Swamy. In 1996, the advertising
account of Parker was awarded to McCann-Erickson19, while the Luxor and Pilot brands
remained with RK Swamy.
However, in 1999, when Papermate was launched, the account of all the brands in the LWIPL
portfolio was shifted to McCann-Erickson. In December 2000, the advertising account was
split again. Contact Advertising was given the charge of Luxor, Pilot and Papermate brands,
while Lowe21 was awarded the Parker brand.
However, in July 2002, the advertising account of Luxor, Pilot and Papermate brands was
also shifted to Lowe. As a result, Lowe was made responsible for advertising of all brands in
LWIPL portfolio. The theme of advertising differed according to the product brands. For
instance, the advertising campaigns for Pilot brand stressed on the unique features of these
pens.
During the 1980s, the advertising campaigns highlighted Pilot's dual features of a ball point
and fountain pen. In the 1990s, the campaigns stressed on the technology used in making
Pilot pens. The campaign created by Contact advertising in 2002, featured the famous
television actor Shekhar Suman22, who highlighted Pilot's 'three dimple technology23,'
which helped in smooth writing. In July 2002, LWIPL felt that the students' memory had to
be refreshed with respect to the Pilot brand.
An advertising campaign, 'Pilot - Reads well, Writes well' was launched. The campaign was
very successful and within six months, the sales of Pilot pens increased by 30%. Explaining
the advantages of Pilot pens, Pooja Jain, General Manager, LWIPL said24, "Today, the gel
fad is dying and the consumer is coming back to a more dependable and reliable proposition
for value for money, which Pilot offers.
Pilot is in fact perhaps the longest surviving and successful brand in the writing instruments
category as it writes four times more than any other needle point gel pen. Pilot contributes
15% to our total turnover." The Parker brand received maximum advertising support from
LWIPL. Commenting on the target audience, John Hadley, senior vice-president (sales and
marketing), LWIPL said25, "Parker's target group is the top 12 million families in India and
that gives us a big market any way you look at it.
( 28 )
Our aim is to provide a decent writing instrument
to Indians." In early 2001, LWIPL
roped in the famous film star and television icon
Amitabh Bachchan to promote the
Beta and Vector brands of Parker pens.
The primary reason for choosing Amitabh as a
brand ambassador was his popularity among all
groups i.e. children as well as elders and masses as
well as classes.
According to media reports, he was paid Rs 50
million for featuring in the advertisement. The ad
campaign was a huge success and had a high recall
among television watchers.
In 2001, LWIPL roped in Shekhar Suman to endorse the Papermate brand. The advertising
campaign highlighted its unique selling propositions such as trouble free writing, better
quality and the rubber body of the pen, which enhanced its grip. It also conveyed the message
of romance by highlighting the two heart shaped symbols, which formed a part of Papermate
brand.
Though the campaign attracted reasonably good attention from the viewers, it was not able to
generate the kind of sales that the company expected and hence in July 2002, the advertising
contract for Papermate brand was given to Lowe.
In December 2002, an advertising campaign was aired, which featured Papermate as
'Americas Largest Selling brand." Through this campaign, LWIPL made an attempt to retain
the American identity of the Papermate brand.
( 29 )
POSITIONING
LWIPL also made efforts to change the positioning of its brand, if necessary. For example,
when Parker pens were launched, they were positioned as a premium brand targeted at the
upper sections of the society, including senior executives, businessmen and so on. However,
realizing that young people could also be the potential buyers for premium pens, LWIPL
targeted its Vector brand at young executives and its Beta brand for the school and college
going students.
Explaining the necessity to change the positioning of the Parker brand, Sanjeev Goyle, Vice-
President, Marketing, LWIPL, said, "We want the Parker brand in the pocket of every youth.
To make this happen we've a two-fold approach: one, shift Parker's positioning from a
serious, daddy's pen to a youthful and vibrant brand; and second, give multiple price and
product options to address the entire section of the consumers."
In an interview with K. Jain - Chairman and President, Luxor Writing Instruments Pvt. Ltd.,
shares his thoughts on Luxor's brand positioning, the company's belief in below-the-line
marketing, and plans of expansion, consolidation and communication, with
exchange4media's Jasmeen Dugal.
Luxor is a special brand; we are not like our competitors who are producing pens everyday
and reducing prices. We are a branded company and have five brands - Luxor, Parker,
Papermate, Pilot and Waterman.
Our key differentiator is that we look at the pen business from the consumers' perspective.
Starting from a small child, what does he/she need? Colored pens and crayons. We produce
from that angle. A parent having three-four children must be economical in getting these
products, so we price the pens accordingly. Similarly, when the child goes to school, we see
the need of the student, whether it is a hi-tech pen or a specialized technology pen. And then,
similarly, we see what the middle-aged are doing, what the family needs and we go right up
to the top man of the country. Here, the range is expensive. Therefore, we see the economical
needs of our target audience and price the pens accordingly. Our pens range from Rs 1 for a
colored pen, Rs 3 for a ball pen and goes up to Rs 40,000 for a Waterman. If a rich man
wants to buy his wife a diamond, he can also buy her an Rs 40,000 pen!
Add Gel is the leader in the gel market, and Luxor is a new entrant. We have entered this
market quite late, as we wanted to introduce Gel Pens with the most superior technology at an
affordable price. The pen is priced Rs 8 and the refill of Gel One is priced at Rs 5, the
cheapest proposition in the gel market. Our strategy to break into the gel market is to give a
better product at a cheaper price.
Luxor has been very closely connected with the children segment. To strengthen its base
here, LWIPL has launched an extensive array of colour pens, crayons, sketch pens, tattoo
markers etc. In fact, Luxor is the only company in India that caters to the complete sketching,
drawing and colouring needs of children. The entire children's range is launched under its
sub-brand "Luxor Junior". All products and communication of Luxor children's range feature
a clown called Junior, which is one of the first Indian characterizations in the writing
instruments industry. Further strengthening its association with children, Luxor ran a month-
( 30 )
long promotion, "Buy, Choose, Tickle and Win" in association with McDonalds, IN 2003
where one could just walk into a McDonalds outlet and order a Happy Meal, with which one
gets a scratch card coupon. On scratching the coupon, children can win a range of prizes from
Luxor Magic Colour Pens to Luxor Crayfun Pens. Special sales counters were also set up at
select McDonald‟s outlets, offering a range of Luxor pens.
Moreover, Luxor has initiated a number of children's activities over the years. Be it
independent school activities or colouring contests, painting competitions, writing
competitions, colour splash, NIE Children's Film festival or Parker Voices of Tomorrow,
Luxor has always been a pioneer in
providing support to activities related to children.
( 31 )
Retailers Survey Analysis
QUESTIONNAIRE FOR RETAILERS
1) Do you sell stationary of luxar company?
Interpretation:- Interpretations: It is evident from the graph above that a majority of
retailers deals in Luxor products but there are around 27.6% of retailers who do not
sell Luxor.
72.4
27.6
Sellers Of Luxar
Yes
No
( 32 )
2) How would you rate performance of Luxor Company?
Interpretations: - Only a few percentages of users (12.9) found the products of Luxor
below average condition and rest rated it average or above.
0
10
20
30
40
50
ExcelentGood
AverageFair
Poor
19.5
44.3
23.3
10.9
2
Performance
Percentageof people
( 33 )
3) Are you satisfied with the promotional activities carried out by company to
promote their brand?
Interpretation: - The satisfaction level chart shows a nearly tied-up situation
between the satisfied and dissatisfied customers.
53
47
Promotional Activities
Yes
No
( 34 )
4) Who are the frequent buyers of pens?
Interpretations:-It is quite evident from the graph that the main target customers of
pen industry are the students and businessmen , servicemen and others are share a
very small portion of consumers of pen industry.
53
17 19
11
0
10
20
30
40
50
60
Students Service man Businessmen Other
Percentageof People
( 35 )
5) Maximum sales are for which brand of pens?
Interpretations:-It is very clear from the graph that Reynolds is the market leader
followed by Luxor. These both brands cover nearly about 50% of market and rest
50% is captured by Cello, Linc, Rotomac and others.
24
27 18.1
16.7
11 3.2
Sales
Luxor
Reynolds
Cello
Rotomac
Linc
Others
( 36 )
6) When people buy pens what among the following options do they prefer?(Rank as
per the priority)
Interpretations:-As per the graph it can be inferred that people want more by paying less as
most of the people are more price concerned rather than being quality concerned
57
4.2
8.2
10.6
20
Price
Quality
Refillable
Schemes
Looks
( 37 )
7) Maximum schemes are being offered by which brand of pens?
Interpretations:-As this states Luxor needs to have a look at the schemes provided by them to
improve sales as it is very clear from the previous graph that our customers need more by paying
less.
0 10 20 30 40 50
Reynolds
Cello
Luxor
43
24
33
Schemes Offered
PercentageOf People
( 38 )
8) Sales of pens are high during which period of time?
Interpretations:-It was quite predictable as in the previous graphs we saw that major consumers
are students and maximum sales are at the time of exams.
66
13
21
0
10
20
30
40
50
60
70
Exams Throught year new schemes
Percentage OfPeople
( 39 )
9) Any suggestion to the company out of your experience of selling our product?