1 IIPM INTERNATIONAL INSTITUTE OF PLANNING & MANAGEMENT Luxor Writing Instruments Pvt. Ltd. Submitted To: Mr. Sandeep Dawar Regional Business Manager (North) Submitted By:- Saumya Shankhdhar (PGP/FW/2008-10) IIPM, New Delhi REPORT ON THE STUDY OF MARKET STRATEGIES OF BALL PENS/GEL PENS BETWEEN THE RANGE OF Rs.3-Rs.15 WITH REFERENCE TO LUXOR WRITING INSTRUMENTS.
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THE STUDY OF MARKET STRATEGIES OF BALL PENS/GEL PENS BETWEEN THE RANGE OF Rs.3-Rs.15 WITH REFERENCE TO LUXOR WRITING INSTRUMENTS.
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INTERNATIONAL INSTITUTE OF PLANNING & MANAGEMENT
Luxor Writing Instruments Pvt. Ltd.
Submitted To: Mr. Sandeep Dawar
Regional Business Manager (North)
Submitted By:-
Saumya Shankhdhar
(PGP/FW/2008-10)
IIPM, New Delhi
REPORT ON
THE STUDY OF MARKET STRATEGIES OF BALL PENS/GEL PENS BETWEEN THE RANGE OF Rs.3-Rs.15 WITH REFERENCE TO LUXOR
WRITING INSTRUMENTS.
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ACKNOWLEDGEMENT
No task however small can be completed
without proper encouragement. In this I am greatly indebted
to Mr. Sandeep Dawar for being of immense help to us and
guiding me in the right track and giving constructive
suggestions during the entire internship. Mere words will
never be able to express the gratitude towards him, who not
only stimulated the idea of undertaking the project, but also
interacted with me frequently giving valuable advice during
critical stages of work.
My heartiest thanks goes to all people whom I
have contacted, for their cooperation and responsiveness;
namely Mr. Gora, Mr. Jha and many more people. I would
also like to take this opportunity for thanking Mr. Naveen
for his attention and guidance.
Finally I would like to be grateful to all those
who directly or indirectly have been of great help and obliged
me with their support and have helped me in converting my
collection of data and information into a finely polished
project.
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PREFACE
This Report will help us to study the market potential of
lower priced ball and gel pens between the range of Rs.3-
Rs.15 with reference to Luxor Writing Instruments. In this
report we will study the marketing strategies of these pens of
various companies that will help to extract information
regarding consumer tastes and preferences and thereby the
availability and the current position of Luxor pens in this
range in the market .This would eventually help the company
to improve on existing marketing strategies and develop such
pens that have a positive correlation with existing customer
tastes and preferences.
This report shall include the history, vision, value of Luxor
writing instruments, the marketing mix of the company in
relation to other existing competitors like Reynolds, Cello
Pens. This report shall be further followed by carrying out
quantitative research between the customers and the retailers
that would determine the tastes and preferences of people
with regards to these pens.
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TABLE OF CONTENTS
Topic Page No.
CHAPTER 1 6 – 23
Introduction
Marketing Strategy- It’s relevance to pen industry
Identification of problem
The Main Objective of Study
CHAPTER 2:- 24 - 40
Choices of Various competitors
CHAPTER 3:- 41 - 47
Research Methodology
Scope
Research Process
Limitations
CHAPTER 4:- 48 - 79
Growth of pen industry in India (Introduction)
History of writing instruments
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Importance of Pens
Types of Pens
Origin of Pen industry in India
Production
Size of the Industry
Findings from questionnaire
The Inferences of the report
Conclusion
Bibliography
CHAPTER 5:- 80 - 92
Annexure
• Sample Questionnaire
• List of Retailers visited
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CHAPTER -1
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INTRODUCTION
The economies of the world are undergoing a rapid change,
with often wrenching transformation. The two major forces
underlying this change are Globalization with Technological
changes. The explosive increase in global trade and
international competition has led to Globalization. Also
technological changes have taken place with the passage of
time. This decade has witnessed remarkable advances in the
availability of information and spread of communication. The
markets of today are changing at an incredible pace.
Along with technological changes and Globalization, we are
also witnessing a power shift from manufacturing to retailing,
new retail forms, growing consumer price and value
sensitivity, diminishing role of man marketing. To protect
their profits, companies have primarily responded by cutting
their costs, re-engineering their processes and downsizing
their work forces. Yet even if companies succeed in cutting
their costs, they may fail to increase their revenue if they may
fail to increase their revenue if they lack marketing vision
with marketing know-how.
It is therefore necessary for companies to formulate broad
strategy and define a specific marketing mix and action plan
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to optimize their long run profitability. The company can
build in a set of controls so that it can evaluate results and
operate as learning organization thereby constantly
improving its marketing know-how. If we meet today's
tougher Indian consumers they are more demanding,
inquisitive, discriminating. They are no longer content with
planned obsolescence .They are no longer willing to tolerate
products that break down. They insist on high quality goods
they have, time, energy and calories, preserve the
environment that come from a manufacturer.
This means that companies have to work harder to gain and
keep the confidence of Indian consumers, especially those
who have been switching brands. For firms that have
responded well to this challenge, an important milestone has
been reached, they are truly consumer -oriented companies
practicing the marketing concept .These firms talk to
consumers to discover their needs and work hard to satisfy
them; and they do this in a systematic, goal oriented manner.
Firms operating internationally need to be aware that
consumer’s desires and expectations can differ by country.
Many times, these expectations are quite dissimilar from
Indian Consumers. For example German's are the world's
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toughest customers for athletic footwear. They routinely
review product specifications and expect retail sales persons
to show them that footwear will perform as advertised.
Italians Spaniards value high efficiency laundry detergents
and are able to discuss minor performance destinations
among brands. In contrast American's are more interested in
the fashionableness of athletic footwear, and are less
fastidious about laundry.
Marketing has been a neglected area in India for a number of
years due to the existence of protective controls and the
prevalence of a seller's market in most products. However,
the recent recessionary trends in our economy as well as the
increase in educational levels and sophistication of customers
has resulted in many of our businessmen finding themselves
in a buyer's market unprepared and indulging in heavy and
often ineffective advertising. This way an acceptance of the
marketing importance is clearly emerging on the Indian
horizon at present.
Marketing is not a fixed system of concepts. Rather
marketing is one of the most dynamic fields within the
management arena.
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The market place continuously throws out fresh challenges
and companies must respond. Therefore, it is not surprising
that new marketing ideas keep surfacing to meet the new
market place challenges.
In the highly competitive world, only those organizations
would survive, who respond positively to the fast changing
environment. This is more important for Public sector
undertaking which until now were working under the
protective cover of the state. The survival of such
undertakings including the cooperative sector is at state.
Unless these improve productivity, efficiency and introduce
professionalism in every aspect of business, the long term
survival is not possible.
Thus, the importance of marketing strategies cannot be
ignored. Strategies are the means of achieving the ends.
Based on objectives and when applied to business, they
govern the firm’s behavior in respect of acquisition,
allocation and effective utilization of resources necessary to
achieve the predetermined objectives within the given
environmental constraints. In fact, they provide an overall
direction for the functioning of an enterprise as well as the
accomplishment of the enterprise goals strategy can be
devised for a nation, industry or for a firm. It may be
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formulated in different areas of business activities such as
marketing, finance, personnel, public relations and
production. However, the formulation of strategy for
marketing is one of the most complex, dynamic and
challenging functions in any business enterprise. Marketing
strategy is complex and dynamic both in terms of inputs and
outputs. It is vital from the point of view of setting budgets,
projecting cash flows and even deciding what products to
make or when to buy.
Marketing strategy plays a crucial role by enabling the
company to meet its general objectives that is, to ensure
survival at a 'Profit' and success in relation to its competitors,
market share, market growth etc. To accomplish these
objectives, a sound marketing strategy usually outlines a
number of tactics. These may include the lowest cost, control
over distribution, product differentiation, effective promotion
strategy etc. Thus marketing strategy provides the direction
not only for marketing departments but for the overall growth
of the firm. Marketing strategy in contrast to marketing
planning is concerned with long term development,
implementation of policy, long range plans for achieving the
organizational goals, efforts to meet these challenges and
threats and also for securing business survival and success.
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It implies that marketing strategy is concerned more with the
improvement of existing products, development of new
products, new methods of production, exploration of new
markets etc. than with the cut and thrust of day to day
operations that is the current production and sales.
MARKETING STRATEGY - ITS RELEVANCE
TO THE PEN INDUSTRY
Marketing strategy is the prime mechanism to achieve
sustained growth and prosperity of the nation. It is the power
house for industrial growth. Like other industries, marketing
strategy has been found to be an important tool for expanding
sales of the Writing instrument Industry as well. Though with
the increased competition in the market and development of a
variety of pens, the pen manufacturers have started placing
greater reliance on marketing strategy to create a distinct and
unique position of their product and their corporate
positioning in the market.
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Tremendous progress has taken place in the Pen industry in
India since Independence. A number of large, medium, small
as well as cottage units scattered all over the country have
started manufacturing a wide range of pens. Major changes
have also taken place in the structure and demand pattern of
urban as well as rural markets. The pen industry has been
facing growing competition in the international market as
well which is becoming increasing important. Such
developments have inevitably increased the complexities in
marketing of pens in India. Therefore, it has become
imperative to involve effective marketing strategies to cope
up with the increasing competition in the market to gain a
larger market share through the delivery of more satisfaction
to consumers.
The Pen Industry offers ample employment opportunities to
millions of people in the peripheral sectors such as
distribution, field services, etc. The present production of
pens in India has created job opportunities for more than one
lakh people in the service sector of which most of these
people are self employed.
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INDENTIFICATION OF PROBLEM
Presently every country - developed or undeveloped or even
developing is moving ahead to achieve economic prosperity
as well as a higher standard of living of the proper dwelling
in it. Economic prosperity and higher living standard can
only be achieved through a rapid increase in production of
both goods and services produced within the country. India
too has made a considerable amount of economic progress
during the last three decades. Now it’s been more than 5
decades after we have achieved our much longed
independence, and not only has the volume of production
The data collected have been codified and tabulated.
Relevant statistical relationships have been established
and analyzed. The analysis of data helped in
understanding the marketing strategies. Besides this,
various problems, which came in the way of marketing,
have been identified. The analysis of data has been
presented in the respective chapters of this thesis. The
data has been interpreted to arrive at some concrete
conclusions. The problems identified in regard to
marketing strategies and suggestions to overcome the
problems, have also been evolved on the basis of
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interpretation of data, various statistical methods,
formulations and techniques have been applied for
interpretation of data.
Finally an attempt was made to give a shape to the study in
the form of a report.
LIMITATIONS
The analytical study emphasizes the marketing aspect of
pens. Data released by the pen industry on production and
consumption etc. of pens is not very reliable because of
inhabitant characteristics of maintaining secrecy by the
industry so that they may not be exposed to the Government
and General Public. Applications of sophisticated methods
are not possible because of the lack of resources and the
limitations of time. Since, the conclusions drawn are based
on limited data; they remain subject to modifications and
corrections.
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CHAPTER 4
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GROWTH OF PEN INDUSTRY IN INDIA
How the pen market changed
Fountain Pen:
Lewis Waterman patented the first practical fountain pen in
1884. Writing instruments designed to carry their own supply
of ink had existed in principle for over one hundred years
before Waterman's patent. For example, the oldest known
fountain pen that has survived today was designed by a
Frenchmen named M. Bion and dated 1702.
However, early fountain pen models were plagued by ink
spills and other failures that left them impractical and hard to
sell. The fountain pen's design came after a thousand years of
using quill-pens. Early inventors observed the apparent
natural ink reserve found in the hollow channel of a bird's
feather and tried to produce a similar effect, with a man-made
pen that would hold more ink and not require constant
dipping into the ink well. However, a feather is not a pen,
only a natural object modified to suit man's needs. Lewis
Waterman's idea was to add an air hole in the nib and three
grooves inside the feed mechanism.
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A mechanism is composed of three main parts. The nib,
which has the contact with the paper, the feed or black part
under the nib controls the ink flow from the reservoir to the
nib.
The round barrel that holds the nib and feed on the writing
end protects the ink reservoir internally (this is the part that
you grip while writing).All pens contain an internal reservoir
for ink. The different ways that reservoirs filled proved to be
one of the most competitive areas in the pen industry in
early19th century .There are nine standard nib-sizes, with
three different nib-tip cuts: straight, oblique and italic.
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Ballpoint Pen:
A Hungarian journalist named Laszlo Biro invented the first
ballpoint pen in 1938.Biro had noticed that the type of ink
used in newspaper printing dried quickly, leaving the paper
dry and smudge-free. He decided to create a pen using the
same type of ink. The thicker ink would not flow from a
regular pen nib and Biro had to devise a new type of point.
He did so by fitting his pen with a tiny ball bearing in its tip.
As the pen moved along the paper, the ball rotated picking
up ink from the ink cartridge and leaving it on the paper. The
British Royal Air Force needed a new type of pen, one that
would not leak at higher altitudes in fighter planes as the
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fountain pen did. Their successful performance for the Air
Force brought the Biro pens into the limelight.
The highly popular modern version of Laszlo Biro's pen, the
BIC Crystal, has a daily worldwide sales figure of
14,000,000 pieces. Biro is still the generic name used for the
ballpoint pen in most of the world. The Biro pens used by the
British Air Force in W.W.II worked. Parker black ballpoint
pens will produce more than 28,000 linear feet of writing --
more than five miles, before running out of ink. This is the
change in the use of the Fountain pen to Ballpoint pen further
we got introduced with Gel pens but still the market of the
ballpoint pens hold good.
Gel Pen:
Gel Pens were invented by the Sakura Color Products Corp.
(Osaka, Japan), who makes Gel Roll pens and was the
company that invented gel ink in 1984.
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INDIAN MARKET OF PENS
Ball pens forms the biggest chunk of the pen market in India
and accounts for 72percent of the total pen market followed
by gel pen at 28 percent. The brand leaders in this market are
Cello. Luxor Writing Instruments Pvt Ltd has introduced
Watermann Exception Solid Gold Pen worth Rs 10 lakh at
the inaugural ceremony of the company’s exclusive retail
showroom Luxor Signature.
Comment from ACNielsen (world's leading marketing
information provider)
“Pen market previously suffered from lack of organized
information on the market size or market shares of various
players, since most players are not listed companies and
distribution was mostly limited to stationery stores,”
Pens market in India recorded a value growth of 82%
Survey done by the India’s leading market information
providing company ‘AC Nielson’ on pen market in year
2006. They come to know that ballpoint pen is still a market
leader by acquiring a large portion of the market. There is a
ratio of 72% to 28 % for ballpoint to gel respectively. In
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urban areas about 10.9 lac. of stores are selling pen, in the
selling year of 2005-06 itself recorded a growth of 23%.
The Pen market across the world is Rs 50,000 crore and in
India market is only Rs 1500 crores and growing at the rate
of 9 per cent. 60% sales come through organized sector and
balance from unorganized. And the luxury segment 95%
sales come through grey market. Most of the luxury writing
instruments are picked by on travel abroad. Off this nearly
99% is sale through stationery and kirana stores. The entire
market is disorganized. And the grey market plays a very
crucial role in supplying hi-end, premium writing
instruments. The industry is just evolving and consolidating
to supply genuine and quality pens to Indian customers. In
terms of quality of pens, India ranks amongst the best in the
world, well ahead of even China. But, its export market is
abysmally low at Rs 200 crore, while China exports Rs 5,000
crore worth pens every year .Indian manufacturers are only
now beginning to focus on global markets. The luxury and hi
end pen market is only 1 per cent of the total market size of
India i.e. 15 crore. The gold and the sterling silver range
branded Waterman 100 retail between Rs 2, 00, 00 to Rs
4, 00,000.
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EXPECTED EXPANSION OF THE INDIAN
PEN MARKET
Indian pen manufacturers see this segment as a potential one
in the coming years. Many have set up a separate division to
handle this market segment, as the `free gift-on-every-
purchase' campaign uncorked by FMCG companies is
acquiring a shrill note.
Mr. Ronnie Netto (Director of Today's Writing Products
Ltd (TWPL) said –
"We noticed this trend about two years ago and it has
picked up since then. Last fiscal, our revenue from this
segment was over Rs 10 crore of our total turnover of Rs 80
crore. And this fiscal ,we expect it to almost touch the Rs
20-crore mark .We have set up an exclusive division to
handle such orders, as they require personalized service.
We estimate this market segment to grow to Rs 500 crore in
the coming years, now; Indian manufacturers are
beginning to reach out to the overseas market. After UK's
Pound land tied up with TWPL to have Today's brand of
pens in its chain of stores, we expect to export pens worth
$1 million to UK in the current fiscal,"
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Another area that is opening up for Indian pen manufacturers
is the trend among overseas stationary companies to
outsource their pen requirements from India. In 2006, about
10.9 lac stores across urban India take the product in stock at
present which represents a distribution growth of 23 percent
within a year (April06 over July’05). The increased
distribution has brought about a phenomenal growth for the
pen market of 82 percent in sales.
The sales peaked in the months of February and March
owing to exam season and touched maximum in the last
eleven months .There is a consistent month-on-month growth
in the writing instruments industry fuelled by competitive
pricing and product innovation. Today, one can buy a Gel
pen for rupees two and can choose from a wide variety of
pens - with easy grip to water-proof ink .Although the writing
instrument market is led by well known names like Cello
,GM (Reynolds), Jineshwar (Montex) etc. Smaller players
such as Lexi, Agni and Elkos for examples have also been
able to maintain their share on a regional or select pocket
level.
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LUXOR WRITING INSTRUMENTS
HISTORY
Founded in 1963 by Mr. D.K. Jain , the Luxor Group has
emerged as the undisputed market leader in the writing
instruments industry – both in India and abroad. During the
journey spanning nearly five decades, the Group has
relentlessly pursued an upward growth path and our long-
term goal of building a globally acclaimed, well-diversified
conglomerate is turning into a reality.
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Stepping Stones to Success
What started as a small venture in the crowded lanes of Old
Delhi, has evolved into India’s No. 1 manufacturer and
exporter of writing instruments – operating 10 state-of-the-art
facilities in NCR-Delhi and Mumbai and producing more
than one million pens a day. Today, Luxor products enjoy
unrivalled patronage not only in India but in more than 75
countries across the world. In a survey conducted in 2004,
Luxor has been declared an Indian Super brand, the only
company in the writing instrument industry to be bestowed
this honor. In the five decades since its inception, the Luxor
Group has been continuously raising the bar in technological
competence and gaining recognition as a leader and
innovator.
Under Mr. D.K Jain’s able guidance, the company started
producing home-grown Indian pens using backward
integration and leveraging the most advanced technologies.
The Group currently manufactures a wide array of writing
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instruments, stationery and accessories – catering to an
extensive range of consumers with diverse preferences. The
Luxor brand is a registered trademark in more than 120
countries and belongs to an exclusive club of top 101 brands
hailing from various industry segments in India.
The Luxor Group pioneered fiber-tip and roller ball pens in
India way back in 1975 – creative innovations which
instantly caught users’ fancy for their superior performance,
great convenience and distinct style. In 1982, the company
joined hands with Pilot Corporation of Japan and brought the
Pilot ‘hi-tec’ needle point pens to India. Another major
breakthrough came in 1986 as Luxor introduced permanent
markers, dry safe ink markers and fluorescent highlighters to
address the diverse requirements of its global clientele. The
company offers a dazzling array of products to meet the
sketching, drawing and coloring needs of junior citizens.
Bringing in the Brand Edge
The 90s were significant in more ways than one as the Luxor
Group continued to thrive even in the face of fierce
competition from large multinationals and leading
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international brands. In a bid to ensure incremental growth,
the Group chose to re-invent itself and opted for a three-
pronged strategy including modernization, exports expansion
and tie-ups with coveted international brands. In 1980, an
exclusive international business division (Luxor
International) was set up to promote and sell the Luxor Brand
far beyond Indian boundaries while the Group decided to
bring under its umbrella some of the most famous foreign
makes to serve a vast and quality-conscious Indian consumer
base. Keeping in mind the resounding success of the Luxor-
Pilot tie-up, the Group decided to follow the same strategic
approach with Brand Parker in 1996. Paper Mate (1999) and
Waterman (2003) followed suit and the Luxor Group now
acts as their preferred business partner in India, holding the
manufacturing and marketing franchise. Positioned as
premium lifestyle accessories instead of everyday utility
item, the Parker and Waterman from the House of Luxor
remain the preferred choice of the upwardly mobile.
Celebrity endorsements were also sought to promote these
high-end writing jewels, and legendary movie star, Amitabh
Bachchan, was signed up as the Parker brand ambassador.
Never an organization to rest on its laurels, the organization
has further conceptualized the Louis Charron range in 2006 –
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an exclusive collection of designer pens coveted by the
discerning. Luxor also plans to unleash a range of
accessories, such as key chains Diversification Drive
taking forward its unbeatable saga of excellence and total
customer commitment, the Luxor Group today is diversifying
into various fields. From Hospitality and Real Estate to
Retail, the ventures are many and the new initiatives are
working out well to propel the Group to greater heights.
What Sets Luxor Apart
Over the years, the Luxor Group has been bestowed
numerous Awards and Certifications for Quality, innovation
and product design. The Group lays great emphasis on
Research and Development to bring the best writing solutions
to its vast customer base while leveraging cutting-edge
technologies and best industry practices to enhance product
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quality and performance. Luxor’s unfailing commitment to
Quality has been further endorsed by a series of ISO
certifications which ensure flawless compliance with
international standards. The company also takes greatest
possible care to ensure the safety, health and welfare of its
staff and the communities living around its facilities. Luxor’s
fundamental purpose is to cherish the vision of growth in
established and new domains, and foster sustainable and
integrated growth. With an impressive past and a powerful
present to guide it forward, the Luxor Group is all set to build
upon its achievements in the years ahead.
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Questionnaire for Retailers
Qs1-Who are the frequent buyers of pens in the price
range between Rs3-Rs.15? (Opt for 1 or more than 1)
� Students � Servicemen � Businessmen � Other
Professionals
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Qs2-Maximun sales under the price range between Rs3-
Rs.15 are for which brand of pens? (Rank in order of
sales)
Luxor………Reynolds……….Cello………Rotomac………
Linc……….Others………
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Qs3-Maximum schemes are being offered by which brand
of pens?
Luxor………Reynolds……….Cello………Rotomac………
Linc……….Others………
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Qs4-When people buy pens what among the following
options do they prefer? (Rank as per the priority)
Price.…….Quality………Refillable……….Schemes………
Looks of the pen………
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Qs5-Sales of pens between the ranges of Rs3-Rs.15 are
high during which period of time?
� High during exams � Stable throughout the year
� when new schemes are introduced.
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Qs6-Your best business deal is with which company of
pens?
� Reynolds � Cello � Luxor � Linc � Rotomac
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Qs7- Do you think that Brand endorsement by celebrities
is really helpful in boosting sales of pens?
� Yes � NO
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Questionnaire for customers
Qs1- How frequently you purchase a pen?
� Once a week � once in 15 days � bulk purchase
� beg/borrow/steal
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Qs2- Which pen strikes first in your mind when the
range is between Rs.3-Rs.15? (Check �only one):
� Luxor � Reynolds � Cello � Rotomac
� Linc � Any other
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Qs3-Are you conscious of status while purchasing a pen?
� Yes � No
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Qs4-From where did you come to know about the pen you
use?
� Advertisement � Colleagues � Friends �
Retailers
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THE INFERENCES OF THE REPORT
General analysis
LWIPL launched its first brand of pens in 1963-The Artistic
Fountain Pen. However, owing to its small scale of
operations during that time, pens were made available in just
Delhi and the surrounding areas. Although, the range of pens
under Luxor, in the lower price category is way too less still
as compared to the competitors that have captured a major
chunk of the current market .Cello occupies the topmost
position followed by Linc pens in this lower price pen
category.
During late 1960’s, 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 officially launched in India.
The maximum sale of lower priced pens was made by the
retailers by selling a huge 60% of the total to mere students
only. The second largest sales were made to the servicemen
with 25% and then the businessmen with 10% respectively.
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According to the research done by us, the maximum sales of
pens under the price range of Rs3-Rs.15 was acquired by
Cello i.e.60% followed by Linc, Reynolds with 5% and
Luxor pens only 2%under the lower price category. Also
maximum schemes to the retailers were given by the pioneer
again being Cello.
According to the survey done with the retailers, they believed
that a majority of customers look for the quality of pen and
then the price. Then after that, they see whether it is refillable
or not. The looks of the pens in this price range are usually
least preferred.
The sale of these pens was found to be stable throughout the
year with 90% and the best deal of the pens that the retailers
felt was with Cello again with 45%, Linc 25%, Reynolds
15%, Rotomac 10% and the least being Luxor 5%.
As far as the promotion is concerned, when asked by the
retailers; 80% of them said that the celebrity adds do not help
in increasing the sales volumes as there are hardly any
advertisements of Luxor pens under lower price category.
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On the other hand, if we consider the consumer view point,
they too gave preference to Cello with 39%, Linc 26%,
Rotomac 10%, Reynolds 7% and the least Luxor that was
only 2%. 50% of the customers bought these pens once in 15
days whereas 25% once in a week. 15% begged borrowed or
stole and the remaining 15% went for a bulk purchase. A
majority of 70% of the customers were not conscious of their
status while buying the pens ranged between Rs.3-Rs.15.The
questions whether the advertisement helps in enhancing the
sale of these pens proved to be almost futile as there are
hardly any advertisements and only 15% people said that
they came to know about the pens from the advertisement.
Rest 39% came to know from the retailers and 275 from
friends.
Promotion and Positioning
LWIPL promoted its products primarily through ad
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 Works', to promote its Pilot pens.
In the early 1990s, the company shifted to another agency,
RK Swamy/BBDO. In 1996, the advertising account of
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Parker was awarded to McCann-Erickson, while the Luxor
and Pilot brands remained with RK Swamy/BBDO.
Suggestions
Most of the retailers were unsatisfied with the pending
schemes that luxor has been providing to them. They
suggested that no schemes should be left pending. Another
aspect which they highlighted was that the company did not
work at all towards the promotion. Neither did they provided
banners or stands for that matter for display on the shops due
to which the attention and focus of the customers could not
be tapped. Most of them suggested that there should be
introduction of new product lines under this range with
sufficient availability at the same time so that Luxor can get
into the rat race under the given price category.
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CONCLUSION
The production of pens in India has been steadily growing
since the beginning of the twentieth century. It is still
expected to register a sharper rise in the next decade. The
Industry is widely dispersed comprising of large size units
and small sized units. The pen industry is basically a labor
intensive having vast employment potential.
Due to this there is a greater need for a well knit distribution
system to help the industry to grow and meet the needs of
millions and millions of Indians who are striving to achieve a
higher standard of living.
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BIBLIOGRAPHY
1. www.google.com
2. www.worldofluxor.com
3. www.luxor.com
4. Brand Equity
5. Fundamentals of Marketing By Philip Kotler
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CHAPTER 5
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ANNEXURE
Questionnaire for customers
Name:……………………………………. Today's date: ……………………...
Address ...…………………………………………………………………….........
………………………………………………………………………………………
City:……………………………… State: ………………………………
Zip:
Telephone:……………………………... Mobile: ……………………………
Date of birth: ……………………………… Sex: � Female � Male
Occupation(Tick) : student/businessman/service Please circle the preferred option: Qs1- How frequently you purchase a pen? � Once a week � once in 15 days bulk purchase � beg/borrow/steal Qs2- Which pen strikes first in your mind when the range is between Rs.3-Rs.15(check �only one): � Luxor � Reynolds � Cello � Rotomac � Linc � Any other
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Qs3-Rank the remaining above brands of pens according to your preference? 1…………………….. 2…………………….. 3…………………….. 4…………………….. 5……………………..
Qs4-What motivates you to buy this pen?(Rank according to preference)
Price .…….Quality………Refillable……….Availability………Looks of the
pen………
Qs5-Do you use separate pens for signing and writing purpose?
� Yes � No
Qs6- If Yes then which pen do you use for signing purpose and for writing
purpose?
For signing purpose …………………………………
For writing purpose ………………………………….
Qs7-Are you conscious of status while purchasing a pen?
� Yes � No
Qs8-From where did you come to know about the pen you use?
Qs 10-Should we consider the change in looks for Luxor pens?
� Yes � No
Qs11- If the PEN were to change, what adjectives do you think should
describe the new look? e.g. more: open (i.e. less text per page) / scholarly /
dynamic / trustworthy / artistic. Use as many adjectives as you like.
………………………………………………………………………………………
Qs12-Your suggestions as to how Luxor can expand the market in lower
price range..We will be glad to have your suggestions?
………………………………………………………………………………………
Thank you for your help!
Questionnaire for Retailers
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Name: ……………………………………. Today's date: ……………………….
Address(Outlet):………………………………………………………………………
…………………………………………………………………………………………
City:…………………………………… State: ……………………………
Zip:
Telephone: ……………………………… Mobile: ……………………………..
Date of birth: ……………………………… Sex: � Female � Male
Qs1-Who are the frequent buyers of pens in the price range between Rs3-Rs.15?(Opt for 1 or more than 1)
� Students � Servicemen � Businessmen � Other Professionals
Qs2-Maximun sales under the price range between Rs3-Rs.15 is for which brand of pens?(Rank in order of sales)
Luxor……… Reynolds………. Cello……… Rotomac………Linc………. Others(please specify)……… Qs3-Maximum schemes are being offered by which brand of pens? ………………………………………………………………………………………
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Qs4-When people buy pens what among the following options do they prefer ?(Rank as per the priority) Price .…….Quality………Refillable……….Schemes………Looks of the pen……… Qs5-Sales of pens between the range of Rs3-Rs.15 is high during which period of time? � High during exams � Stable throughout the year � when new schemes are introduced. Qs6-Your best business deal is with which company of pens? � Reynolds � Cello � Luxor � Linc � Rotomac
Qs7- Do you think that Brand endorsement by celebrities is really helpful in boosting sales of pens?
� Yes � No
Qs8- Highest Retailers margin in %age provided by given brands? � Luxor � Reynolds � Cello � Others (please Specify)…………………
Qs9- If the PEN were to change, what adjectives do you think should
describe the new look? E.g. more: open (i.e. less text per page) / scholarly /
dynamic / trustworthy / artistic. Use as many adjectives as you like.
………………………………………………………………………………………
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Qs10-Your valuable suggestion for Luxor to capture market share in lower price range?