Download - Writing Instruments
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WRITING INSTRUMENTS
INDUSTRY
Evolution…Clayslab Reed pens Feather Nib
Gel pens Fiber tip Roller ballBall pens
Growth of Pen Industry in India
Late1970s– fountain and ball point pens.
1980s -an increased acceptance of ball point pens (Wilson Jotter was the market leader)
1982-Luxor entered the market 1984-Linc followed 1986-Reynolds entered and gained
popularity Late 1990’s-fibre tips, roller balls, gel
pens, etc.Contd…
contd…
Early 2002-worth of writing instruments industry in India was Rs 15 billion; brands like Cello, Rotomac, etc.
2007-2008 – Rs 21 billion
Growth of Pen Industry in World
Till late 18th century - feathers
Early 19th century - metallic nib
1870’s - fountain pens (Waterman)
1925-1940 - growth of fountain pens
After 1945 – first ball point pen
1985-1990 – Japanese gel technology
21st century – stylish pens, roller balls, etc.
MISSION
Quality First…………Cost Second
Growth…
1990-ball pens; ADVERT
1996-97; ADD Gel
1998-2000; started exporting
2001-03; ISO-9000 and B2B sales
2004 on; ADD Exclusives and OEM
Product Range
• Gel Pens- Gypsy, ADD 1st Rank• Ball Roller- Ballet, Impress• Exclusive- Maestro, Highness• Gel Roller- Alpha, Diamond Roller
DifferentiationADD 1st Rank : “experience”ADD Cat : “style & performance”ADD Achiever : “executive look but
without executive prices”Gypsy : “unique body color, vibrant
looks, unconventional styling”Etc.
ADD Corporation Ltd.
QUALITY
TECHNOLOGY
DESIGN
ATTRACTIVE PRICES
DETAILED to
PERFECTION
GLOBAL
CORPORATE CUSTOMERS
Air SaharaBinani Cement Ltd.Brittania Industries Ltd.Dabur Pharma Ltd.Lotte India Corporation Ltd.
Segmentation & Targeting
Students• Gel• Ball Pens
Executives• Roller Ball• Exclusive Series
Office Needs• Markers• OHP Pens
COMPETITIVE ADVANTAGE
Benchmark for qualityWorks across Diverse ClimatesPresent in more than 30
countriesExported to Japan( pioneers of
Gel technology)
Company InformationStarted in 1963 as Luxor Writing
Instruments Pvt. Ltd. (LWIPL) LWIPL manufactures and markets the
following products under the parker brand
In 1996, LWIPL launched Parker pens in India
Mission
“Establish Luxor Writing Instruments (P) Ltd. as the clear leader of the
Indian Writing Instruments market, both in value and image through
sustained and profitable growth of it franchises”
"We want the Parker brand in the pocket of every youth”
Product and Packaging
Functional Brands
Product and Packaging
Rialto
Sonnet
Frontier
Premium Brands
Pricing
At launch, Rs.90 to Rs.10,000
Presently priced from Rs 200 up to Rs 10,000
PromotionAdvertising in the print and television
media
In 2001, LWIPL roped Amitabh Bacchan due to his popularity among all groups
Huge success with high recall value among TV viewers
Display on special racks so that people could notice the complete range of pens
Place/Distribution Initially launched in – Delhi, Mumbai,
Kolkata and Chennai. As the demand grew, they were made available in other urban areas
Sales distribution network of 850 Super distributors/Distributors and 1,00,000 retail outlets in more than 650 cities
Low priced versions available in small stationary shops
SegmentationUpper sections of the society,
including senior executives, businessmen…
Young executives ,school and college going students
Corporate market
Positioning The Parker name itself certifies
standard in quality and reliability
Shifted Parker's positioning from a serious, daddy's pen to a youthful and vibrant brand
Multiple price and product options to address the entire section of the consumers
Target Market"Parker's target group is the top 15
million families in India”
Primarily targeted at the upper middle class consumers, senior level executives and bureaucrats…
Targeted its Vector brand at young executives and its Beta brand for the school and college going students
Corporate market
USPThe arrow design on the pen caps
which is its signature style
The Parker name has set a standard in quality and reliability. The strength and heritage of these powerful brands
World Class brand
Corporate CustomersSamsung AventisStar ,NIITAmerican express, Usha Titan, Wipro Birla plusDabur, NiveaIndia TodayMc Dowels
Separate brand for B2B customers
Specialize in selling a company by marking high quality writing instruments with company logo, name or message to ensure the message is seen and noticed everyday
Customers Customers
About the companyInternationally acclaimed
manufacturer and exporter of pens since 1997. Founder, CEO Vinod SachdevaHeadquartered at the Andheri suburbs
of MumbaiManufactures 1 million pens a day.Recognized as India’s highest selling
model pen (Lexi 5).
Vision statement
“We aim to be a leader in our business of writing instruments- by
heightened sensitivity to consumer needs and aspirations, setting new standards in quality products and
capitalizing on new business opportunities in our Industry”
Product & PricingPlastic pens ( Ball pens, Gel pens):Lexi sharp, Lexi QT, Lexi IQ Lexi 5Lexi G, Lexi G7 ( Rs 5– Rs 10)
Metal pens: LP 001, LP 002, LP 003….., LP 006( Rs 50– Rs
750)
Opaque & Corporate promotional pens
Packaging
Promotion
Network
Global presence Indian presence
Corporate customersThe list of corporate customers includePfizer ltdRanbaxy ltdTimes of IndiaHindustan lever ltdTata infotech ltdProctor & Gamble
Differentiators
Cater to specific needs
Consistency in supply
Segmenting and Targeting
Plastic pens Students
Metal pens Office Executives
Customised pens Corporates
Positioning
“QUALITY FOR A GOOD PRICE””
Unique Selling Propositions(USP’S)Nickel silver tips for smooth, free writingOriginal innovative designsErgonomically designed products for stress free comfort writingInstaflow ink technology for smudge free writingLeak proof fitting
Linc Pens & Plastics Ltd
Head Office : KolkataAround 3 decades into business Awards : ISO 9001:2000, Emerging India Plants approved by some of the world's leading retail chain of stores like M/s. Walmart Stores Inc, Tesco International, W.H. Smith etc.
Gel Pens
Growth
2003-48363.51 Crores
2004-512183.19 Crores
2005-613417.32 Crores
International Gel Pens
2006-714383.72Crores
2007-817400.50 Crores
Global20% of revenue comes from export to over 30
countries in South America and the West Asia, apart from US & UK.
The primary focus of the company has been on private label contracts with top chain stores like Steadtler, Liquimark, Poundland, ICO, Stypen, Dollar Tree, Office Works, CVS, John Lewis, Coop Norden etc to name a few.
International Stic Ball Pens
Vision & MissionVision:: To establish LINC as a global brand, known
for its values, assertiveness and the acumen to adapt to the ever-changing environment.
Mission:: To deliver innovative, user friendly and
better-quality products at best value to the customers, keeping in mind the prosperity of the company and its stakeholders.
Ball Pens
ProductsIn 2006-2007, company revamped its product
mix by phasing out couple of high volume low value brands, due to which the average realization per pen increased from 2.25 to 2.60 Rs. It was also successful in increasing the average realization per refill from 0.82 to 1.16 Rs.
The Company has no separate R & D section. The Company is, however, developing new products and upgrading existing products and also their packaging to meet the changing market taste / profile.
International Designer
Products Contd.. Office Products
Packaging
PricingCategory Price in
RsNumber of Varieties
Ball Pens 5 46 17 110 212 215 1
Gel Pens 5 16 46.5 17 110 415 1
Highlighter 20 1Permanent Marker 19 1White board Marker 30 1
DistributionThe company has 2,282 distributors
countrywide and 20 retail outlets called Office Linc & ‘Just Linc’ .
‘Office Linc' has roped in channel partners like Airtel, DHL, Blue Dart, Microsoft, Music World, Book Cellar, Anderson Printing, Presto, Aqua Java, SKP Moneywise and Talk, who will stock their products and provide after-sales services as well. As on today, total 18 stores of both format are already operational and the company intends to have pan India presence in future.
PromotionShah Rukh Khan is the brand AmbassadorAppointed Rediffusion DYR, the fourth largest ad
agency for brand building and has allotted more than Rs 7 crore for ad campaign.
Punch line – “Zindagi Keliye”Participation in fairs / exhibitions to increase
awareness.Separate team to focus on modern retail.
International Retractable
STP Analysis
Ball Pens
Export Stickball Pens, Retractable Ball Pens, Designer pens, Gel Pens, Rubber grip ball point pen, Ball Pens
Students
Gel Pens, Ball pens
Office White board markers, permanent markers, Highlighters
5 Rs segment
Has 60% market share
STP Analysis Contd…Highest selling category is the Rs-5 ball pens, which
accounts for more than 60% of the revenueExports contributed nearly 22.2% to the total sales in 2007-
8, up from 18.5 % in 2006-7.Successfully launched and will be launching number of
products in higher price segments It position itself as “Useful for all spheres of life”
International gel
Key DifferentiatorIn the current "commoditized" approach of the
industry for this category, building long-term brand value.
International Ball Pens
USPThe USP of the company has been quality
product at reasonable price i.e. value for money through economically priced products with great price-to-performance ratio.
International RubberGrip
Reynolds evolution
1927- Edmont regnault establishes Reynolds 1945- Base shifted to France. 1986- GM pens starts Reynolds marketing in India 1999- Sanford corporation acquires global
operations of Reynolds.
:Are high quality writing instruments , with R&D latest technology.
Products and competitors
Ball pens - 045 fine carbure, 040 bold, fusion, officerite
Gel pens - Racer gel , Racer gel II, Racer gel active.
Lead pencils, Click pencils
Artoons - FunBox, sketch pen, Safari, Jumbo combo
Markers - permanent correction, OHP, whiteboard
Highlighter
Ink pens
Retractables-Jetter regular,Jetter gripp,Jetter
metallica,Flash
Network & Distribution
300thousand retail outlets1800 redistribution stockists30 main stockistsSales and Marketing team of over 300 professionalsWritesite retail outlets
PromotionPrint ads with agency JWT and other
agenciesTV ads with brand ambassadorStudent scholarship programs in schoolsVending machines at schools and
nearby places
Future& market woesIncreasing tough competitionInstitutional & gift segments
absenceNo presence in the Parker type
rangeCompetitive advantage
Latest R&D facilities and technology
Excellent distribution networkGood quality and Brand image
Brand Blaster
Sachin was signed the brand ambassador on May 15th 2006
Endorses in ads RacerGel,045
Why Sachin?Price War, BrandingTargeting kids and students
WriteSite Franchisee owned retail outlet First of its kind in the industry Presently 15 outlets in 6 cities : Chennai,
Indore, Ernakulam, Ahmedabad, Hyderabad Targets to set up 35-40 sites in malls
Cello Writings Ltd
About the Company
1982:• Star
ted as tiny factory for making plastic households under Mr. G. D. Rathod
1986:
• New factory for Cello Thermoware is set up in Goregaon, Mumbai; Another factory at Daman as demand rises. Exports products to other countries
1994:
• Ventures into manufacturing moulded funiture. Uses state–of-the-art moulds from Italy. Becomes household name for quality.
1995:
• Enters plastic moulded ball point pen market. Cello Clear pens with Swiss tips and German ink sweep market. Creates revolution in writing instruments industry.
Vision
Vision of “uncompromising quality and total consumer satisfaction”
Network
Products available at more than 7,31,000 outlets in India.
Network of 42 super stockists, 4200 distributors and 900 field force employees.
Most advanced SCM to meet the size and spread of demand with fully computerized central order booking system integrated with production, distribution and inventory management.
Global Presence
Operates in over 62 countries including US, Gulf States, The Far East, Africa, Baltic nations, Scandinavian countries and Commonwealth of independent states of former USSR.
Products Ball Pens : Includes brands like Advantic, Maxriter, Finegrip,
Gripper, Techno Tip, Maxima, Pin point, Benz, Benz Roller,
Executive, Tri Fit, High Power Ball, Speed, Power Ball pen.
Gel Pens : Includes brands like Pointec, Tech Gel, Free Flo Roller,
Flo Gel, Freeflo Gel, Cello Genius, Cello Gold / Silver, I Zone Gel.
Retractable : Includes brands like Click Grip, Powermax,
Sapphire, Voyager
Markers : Including brands like Evermark, Maxx 500, Pocket 300,
CD Marker.
Pencils: Including brands like Smarty pencils, Smarty with Grip.
Gift Products: Benz / Benz Roller, Cello Gold / Silver, Cello
Magica, Triffit / Freeflo.
Pricing
Sl No Product Category Price Range (Rs)
1. Ball Pens 7 – 30
2. Gel Pens 15 – 50
3. Retractable pens 35 – 85
4. Gift products 75 – 250
5. Markers 20 – 50
6. Pencils 15 - 20
PromotionBy Radio Advertisements :
In Radio Mirchi, Big FM, 91 FM
By TV Advertisements : 8 commercial TV ad’s
Internet Ads
Differentiation Inox Tip: Fibre tip technology that helps is smooth
writing
LPHV: Low Pressure High Volume technology that
helps to reduce pressure on paper
Elasto Grip: Elastic rubber grip to provide have
perfect grip on the pen
Lubriflow: Used in Ball Pens for free and
appropriate flow of ink
Lubrigel: Used in Gel Pens for free and appropriate
flow of gel ink
Feather flow: Used to reduce the weight of pens
for faster writing
STP Analysis
Segmentation:School & College going students (Ball Pens, Gel Pens & Glitter pens)Corporate Offices (Markers, Ball Pens, Retractable)
Target market:Primary target market – Students (India), Corporate executive customers outside (Far East, Mid East, Gulf)
Opportunities• 80% of sales in India• Rejection rate of 0.1%• Reader’s digest – Most trusted brand in Asia
(2007)• BIC (France) Deal – 40% stake in Cello
COMPETITION
PositioningAdd gel - High quality at low costLinc – Useful for all spheres of lifeCello – Student friendly penReynolds – A seasoned player with
strong presenceParker –Premium pens of a world
class brandLexi – Affordability and ease of
writing
Cello Ink.flv
B2B Market
• Important segment of every player in the market
• Companies choose one or more manufacturers to cater to the different levels of organization
• Customer relations is higher in this market
Conclusion
• Technological innovation is the future• Huge amount of investment in Advertising to
grab the greater market share• Distribution - The crux
Thank you