parker pen consumer usage and attitude towards parker pen 82p - aima format

“Consumer Usage and Attitude Towards Parker Pen”

PROJECT REPORT

ON

“CONSUMER USAGE AND ATTITUDE TOWARDS PARKER PEN”

Submitted In Partial Fulfillment of Requirement of Post Graduate Diploma in Management

UNDER THE GUIDANCE OF:Ms. Vandana Puri

Dy. Director-AIMA (CMD)

SUBMITTED BYPULKIT GOGIA

REGN. No. :- 420910021Course : PGDM

SUBMITTED TO:

ALL INDIA MANAGEMENT ASSOCIATION-CENTRE FORMANAGEMENT EDUCATION

(AIMA)

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PROJECT REPORT & SYNOPSIS PERFORMA

Name : Pulkit Gogia

Registration No. : 420910021

Address : E-91, B.K. Dutt Colony

Lodhi Road, New Delhi -110003

Name of the Project Guide : Ms. Vandana Puri

Designation : Dy. Director AIMA - CMD

Title of the Project : "Consumer Usage and Attitude Towards Parker Pen"

Project Code : GM-100

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ACKNOWLEDGEMENT

I have prepared this study paper for the “Consumer Usage and Attitude towards

Parker Pen”. Quite frankly, I have derived the contents and approach of this study paper

through discussions with colleagues who are also the students of this course as well as

with the help of various Books, Magazines and Newspapers etc.

I would like to give my sincere thanks to a host of friends and the teachers who, through

their guidance, enthusiasm and counseling helped me enormously. As I think there will be

always need of improvement. Apart from this, I hope this study paper would stimulate the

need of thinking and discussion on the topics like this one.

Pulkit Gogia

REGN. No. :-

420910021

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TABLE OF CONTENT

CHAPTER – 1 INTRODUCTION ------------------------------------- 1-10

Industry overview

Recent developments

Text by - Bhanu Pande

CHAPTER – 2 OBJECTIVES OF THE STUDY-------------------- 11

CHAPTER – 3 RESEARCH METHODOLOGY-------------------- 12-13

Problem definition

Assumptions

Research design

Exploratory research

Target population

Sampling frame

Sampling technique

Sample size

Sample execution

Collection of primary data

Collection of secondary data

CHAPTER – 4 LITERATURE REVIEW----------------------------- 14-64

Company Profile

Linc Rolls out designer pen

Hrithik signs to royalty deal with ballpen brand

Flair Millennium 2000 series

Pen with rubber grip arrives

Flair pens introduces Sporty range

More literacy promises to give good business to small pen

makers

Sales

Pierre Cardin launches Studio pens:

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Schefields ties up with Kotobuki, plan JV

Customer satisfaction

Strategies to keep in touch

Building customer relationships

Strategies to reward the loyal customers

Lifetime Customer Value

Organization Chart - Parker

Parker Products

Problems of the organization

Competition Information

Sheaffer

SWOT Analysis

CHAPTER - 5 DATA ANALYSIS

CHAPTER – 6 CONCLUSIONS

Limitations

CHAPTER-7 RECOMMANDATIONS

Bibliography

Annexure

Questionnaire

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C hapter – 1

I ntroduction

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INTRODUCTION

Indian Writing Instruments market was largely unorganized with regional small players

occupying a niche category or a specific geographical region. The boundaries were

clearly demarcated with hardly any competition.

Today, the market size is Rs. 1400 crore and the competition cut-throat. Major national

brands like Add, Cello, Reynolds and foreign brands such as Cross, Parker Vector and

Pierre Cardin are fighting it out for a larger slice of the cake.

Thanks to competition, investments in manufacturing technology as well as brand

promotion and marketing exercises have gone up considerably. Brand promotion has

picked up tremendously with sizeable spends - as high as 10% of their turnover being the

order of the day. Heavy spends in electronic media supported by top stars like Amitabh

Bachchan are invested to give that competitive edge. Newer players are forcing

established ones to rethink their strategies and with good measure.

The Indian pen market has three principal categories of consumers - the students

accounting for 60% of sales. Corporate accounts for 20% - 25% of the off-take and the

balance from other types of users. The dominance of student segment has led to the

dilution in premium brands like Pierre Cardin making models affordable to them.

Top line foreign brands such as the venerable Montblanc, silver pens from Episode and

Frazer & Haws, Christian Dior, Cartier Parker, Waterman, and Pierre Cardin have all

entered the Indian market either on their own or in collaboration with Indian

manufacturers and distributors. The turning point for the industry came in 1985 when

Reynolds entered the battlefield with French Collaboration and started the era of brand

war in the Indian Writing Instrument Market. Slowly, the unbranded sector has shrunk

and branded players have started to rule the market.

INDUSTRY OVERVIEW

Today, there are about 10 branded players and hundreds of smaller unbranded ones. The

top 10 account for almost 60% of the market of which two are listed companies- the

Kolkata based Rs. 57 core Linc Pen & Plastics Ltd. & the Mumbai based Rs. 78 core

Today’s Writing Products Ltd. the others, including the Chennai based Rs. 130 core

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G.M. Pens International Pvt. Ltd. (the owner of the Reynolds brand), Umbergaon based

Rs. 108 crore Add Pens Ltd., the New Delhi based Rs. 100 crore Luxor Writing

Instruments Pvt. Ltd. & Mumbai based Rs. 80 crore Cello Writing Instruments and

Containers Pvt. Ltd. (owner of the Cello brand) are all privately held firms. The top six

account for nearly 40% of the entire domestic market. Others such as Rotomac, Montex,

Scheffields, and Flair & Stic account for another 15%. The market is growing at heartily

clip of 15% per annum.

Bitter brand was apart, the industry has also produced some outstanding and inspiring

examples of entrepreneurship. Starting from a humble beginning as late as 1963 today

Luxor has staff strength of 1000 people producing 1 million pens a day. Reiterates D.K.

Jain, give the consumer a useful product and at uniform price. His down to earth attitude

and knowing the pulse of the consumer has been the hallmark of Jain all these years. The

introduction of Pilot Pens in India changed the way students approached the art of writing

in schools ushering a revolution of unmeasured success for Luxor. Another

entrepreneurial story of Manak Cand Jain, of Add Pens Ltd. is worth recounting. From

being an employee of Linc Pens for over 10 years, he started his dream from Mumbai

with a princely capital of Rs. 10,000 in 1986, to make it a Rs. 108 crore enterprise today.

Jain’s USP of sleek looking pens took the market by storm. Pens were parked at the lower

price band, and packed in plastic jars which could be used later in households. His

technology tie-ups with Ohto of Japan and Donga of Korea improved his offerings in the

marketplace. Introduction of gel pens was an extremely popular and paying move making

Add Gel pens synonymous with gel pens in the Indian market. Success was repeated with

introduction to Add Roll Gold and Add Diamond Roller models. Add Pens is aiming at a

turnover of Rs. 150 crore presently.

There are others who have managed successful integration of products in the pen

industry. Montex for example began with nibs and pen accessories. Today has firsts-

transparent ball pens, 0.5mm precision tip pens and rubber grip in ball pens. Today

Montex offers a wide repertoire of pens, ranging from ball pens and gel link pens to

fountain pens and roller ink pens. The latest from Montex is Hy - Tank roller ink pen- a

product of the revolutionary IIS (Inbuilt Ink Stabilizer) Technology. These are over 48

countries over all five continents to which Montex pens are exported.

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There have been significant improvisations in designs in pens. Cello Writing Instruments

& Containers recently introduced the Cello Gripper pens. Over a short period of time, the

gripper pens have become the company’s USP. Cello Grippers come with a finely-

textured rubber grip that cushions the fingers while wiring, thus making writing

comfortable and pressure-free, particularly for students. International designs-Swiss tips

and German ink are the hallmark of Cello Gripper pens, setting them apart from the rest.

Some others have rewritten brand promotion concepts. Kanpur-based Rotomac Pens Ltd.

has been the pioneer of big budget celebrity endorsements. Their first campaign ‘likhte

likhte love ho jaye’ featured Bollywood actress Raveena Tandon and made the entire

industry sit up and take notice. That was five years ago. Now, Amitabh Bachchan features

in a Parker pen commercial. All this points to only one thing the rules of the game have

changed with big budget advertising becoming the norm rather than the exception.

Brand has eventually led to price wars. The famous ad line of Linc Pens for their brand

Tip Top - paunch ka do pen’ has led the manufacturer sell 1.5 lakh pieces a day. Linc

wanted to enter the rural markets where ‘the less than Rs. 3 price’ category of pens

usually sees the largest demand. But the category posed the problem of the price tag of

Rs. 2.50 which was thought to be unacceptable to both retailers as well as consumers

since it involved small change. Linc then came up with the idea of offering two pens for

Rs. 5. The paanch ka do’ slogan was born. Linc is fighting it out with an established

leader in this category- the New Delhi-based Stic Pens Ltd.

With super profits vanishing and more and more players entering the low price segments,

huge investments go into making cheaper but good quality products. For example,

Mumbai-based Today’s has lined up massive investments to set up plants with

economies of scale just to make sure their gel pens are prices below Rs. 10.

This has made some industry experts feel that investment on brand building through

insertions in the electronic and print media as a waste of precious money. The logic with

consumers only interested in cheaper products, they do not bother so much about the

quality and hence these investments do no pay. But not everyone agrees with that view.

Repositioning global brands for Indian market was one of feats achieved by the industry.

Consider for example, the 110-year old Boston-headquartered Parker pens Luxor,

Parker’s Indian partner did a market survey only to find that most respondents associated

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Parker with reliability, class but also steep prices. And students felt that it was ‘daddy’s

pen. They needed to be convinced that it was their pen too, since no company can afford

to overlook the dominant student segment in sales.

Luxor finally launched a Parker brand called Beta later last year. For Parker Pens, this

was the first brand that was born in a location other than Boston. Beta roller pen, ball pen

and fountain pen were priced at the range from R. 50 to Rs. 100. This appears to have

worked. Beta notched up huge sales. The name may work in rural areas too, since the

name also can be said to mean ‘son’ in Hindi.

Parker was going steady in the Vector brand, prices in the range between Rs. 100 to Rs.

350 range. Now Beta has overtaken Vector in sales. Luxor has sold more Beta in four

months than what it has sold in the Vector range in a whole year. Another innovative

product from Luxor-“Family Hungama Pack” containing a bounty of pens for the entire

needs of the family for an attractive Rs. 500/- is another idea from D.K. Jain’s stable of

pens. It’s sure winner for the days to come.

Overall, the pen industry continues to be a low-value, high volume business where price,

and to a certain extent branding, determine the winner. But new players are writing new

paradigms. Players who were confident of super profits have been watching their margins

getting squeezed. Ultimately, the winners will be those who will be able to convince

consumers that their products are value for money, whatever be the price tags.

RECENT DEVELOPMENTS

Organized players struggle against a huge small scale sector to brand the writing

instrument market. Can they pull it off?

Text by - Bhanu Pande

Rubber 'comfort' cushions, fashion accessories, endorsements by Bollywood's hottest

stars . . . The humble ball point pen has never had it so high profile. But it's a battlefield

that could well end with the write-off of many players.

Ranged on one side are the premium and "super premium" players who are shelling out

huge sums of money to try and impose an indelible signature on this crowded, Rs. 1000

crore market. They are the players that have accelerated the growth of this market to 12

per cent over the past decade.

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At the other end are the small scale entrepreneurs who flood the market with cheap,

unbranded products.

It is the latter that could prove the biggest obstacle to the crowds of larger, branded

players that are crowding into a market where writing habits are changing. The writing

instruments industry is reserved for the small scale sector.

That leaves two options before large players, including multinationals. One is to sub-

contract manufacturing to the small scale sector, but that often raises quality problems.

The second is to import. But at a 40 per cent duty, imports mean that large manufacturers

have little room to maneuver in this price-sensitive market.

On the other hand, there are no barriers to entry for local entrepreneurs in this low-

investment business. A large number of entrepreneurs pick up cheap dyes and moulds

from Taiwan and Korea and quickly copy what large players would pay huge sums for.

The production process also allows manufacturers to make a wide range of models with

fairly small runs.

At the lower end of the market, low overheads and therefore hefty margins make it highly

attractive for smaller players to simply produce and sell without investing in brand

building.

These faceless producers of ball point pens thrive on amazing pricing and reach that are

well outside the spread of the larger, branded manufactures. For them it's a wholesale-

driven business. For low-end pens (priced at less than Rs. 6) margins are as high as 60 per

cent and allow manufacturers to pass on 25-30 per cent to retailers.

All this has forced the larger players like Luxor, Reynolds and Ritter to focus on the

premium segment. And here the opportunities are huge. Figures are hard to come by since

no market research agency covers this as a product category in volume terms, are writing

instruments industry is estimated to sell 2200 million units a year, with the unorganized

sector being responsible for more than half.

Premium and super premium account for less than 15 per cent of the Indian writing

instrument market.

But it is the last segment that has helped accelerate market growth after being priced open

by global giants like Parker and Mont Blanc. From Rs. 700 crore in 1997-98, writing

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instruments market is estimated to be over Rs. 1000 crore today growing at the rate of

about 20 per cent in value terms.

But this is also the toughest segment to develop. Like confectionery, pens continue to be a

low-involvement, impulse purchase where price and availability play a bigger role than

brand.

Players higher up the price ladder are trying to change this essentially commodity

business. Last year, the writing instruments industry spent over Rs. 75 crore on

advertising, up from Rs. 65 crore the previous year. Larger players like Luxor, Reynolds

Rotomac, Add Gel and Today were some of the big spenders.

But most of this advertisement failed to make any strong and concrete proposition. That is

primarily due to the absence of meaningful product differentiation. Low-end pens form an

extremely low involvement segment with no brand consciousness and loyalty among

consumers. A new feature by any player is quickly matched by rivals. Against this

backdrop, players like Rotomac did try to carve an emotional differentiator trying to

connect the youth through Rotomac Glasse and Fighter campaign. Similarly, Today has

relied on the celebrity endorsement route, starting with Salman Khan, Sachin Tendulkar

and now believed to have signed Hritihik Roshan. Premium and super-premium payers

have focused on imagery and direct marketing.

At the top end, writing instruments go beyond functional utility. They serve as fashion

accessories or status symbols.

Marketers expect such developments to trickle down to low-end segments, and they're

mainly betting on a change in user habits. Over the last few years, consumes have largely

switched to the disposable mode. Instead of stocking refills, people tend to use pens and

then throw them away. That has given a fillip to sales.

Another large constituency for writing instruments is school children. Earlier schools

didn't allow students to use ball point pens. The common reason was that ball points

distorted handwriting. That has changed. More school students use ball points today and

most students like to own more than one pen.

All this has spurred the effort towards branding and differentiation. If the hyper-activity

during the last one year is any indication, the writing instruments industry is poised to see

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a qualitative improvement and turn pens into a high-involvement category. But all this is

also bound to push writing instruments higher on the price curve. Luxor, a joint venture

with Gillette, brought in Paper Mate, a low end brand of pens from the multinationals

global portfolio. Priced at Rs. 20 (for the standard model), Paper Mate falls within the

mid range under the existing market segmentation. Then, Rotomac set up a joint venture

with Flair Pens, Indo Japan Pens and launched Pentel writing instruments with plastic

nibs priced between Rs. 15-115 in four styles. Bangalore-based Today's Pens introduced

the "Stepney" model with extra-built in refill for longer usage. A Rs. 7.50 a piece,

Stepney offers the benefit of two pens at a price of one. Mumbai-based, Flair pens

launched the Millennium 2000 series of pens in the market.

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C hapter – 2

O bjectives of T he S tudy

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OBJECTIVES OF THE STUDY

Research Objective

To carry out Usage and Attitude Study of Parker Pen in Delhi city.

To get a clear understanding of the Writing Instrument Industry.

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C hapter – 3

R esearch M ethodology

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RESEARCH METHODOLOGY

Problem Definition

The very purpose doing a project on "Consumer Usage and Attitude towards

Parker Pen" was to have a clear understanding of the writing instrument

industry.

The problem that was confronted during the course of the study was to come out

with some concrete results regarding the Consumer Usage and Attitude towards

Parker Pen.

So, the research problem was formulated by keeping in mind the problem

definition that:

Allows the researcher to obtain all the information that was needed to

address the management decision problem.

Guide the researcher in proceeding with the project.

Assumptions

A sample of 200 respondents was interviewed to get a consumer angle to the

project which was under the study.

It is also assumed that the sample which was taken by the way of probability

sampling technique gives a true representation of the population.

It is also assumed that there is a small variation of the sample between the

sample that has been selected and the population.

Research Design

Research Design is a framework of blue print for conducting the marketing

research project. It specifies the details of the procedures necessary for

obtaining the information needed to structure and/or solve marketing research

problems.

Research design is of two type i.e. exploratory research and conclusive

research.

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Exploratory Research

Objective : To provide insights and understanding

Characteristics : - Information needed is defined only

loosely

- Research process is flexible and

unstructured

- Sample is small and non-representative

- Analysis of primary data is qualitative

Findings : Tentative

Outcome : Generally followed by further exploratory or

conclusive research

Conclusive Research

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Objective : To test specific hypothesis and examine

relationship

Characteristics : - Information needed is clearly defined

- Research process is formal and

structured

- Sample is large and representative

- Data analysis is quantitative

Finding : Conclusive

Outcome : Finding used as input into decision

making

Thus, we can see that on the basis of the comparison of the above two

research design process is that conclusive research design process is most

suitable for our project study. The main objective of our project is to study

“Consumer Usage and Attitude towards Parker Pen". So, with the help of the

conclusive research design process, we will be able to arrive at a definite

conclusion with the help of both primary data as well as the secondary data.

Also, data analysis is possible in conclusive research design process.

So, data collected by means of survey can be put to a good use for the study

of “Consumer Usage and Attitude towards Parker Pen".

Sampling Plan

Sample design process comprises of the following steps which is shown below

schematically.

Define the population

Determine the sampling frame

Select the sampling technique


Determine the sample size

Execute the sampling process

Target population

The target audience is in the age group of both 10 years - 21 years and 21

years - 35 years. A sample of 100 respondents was taken from each of the

age group.

Sampling frame

It is a representative of the elements of the target population. The sampling

frame was basically formulated by selecting the particular locality which

comes under the target population. Places close to my house were taken as a

sampling frame which even included collages, schools, university and other

institute. The college students were approached mainly from Jawaharlal

Nehru University Campus as well as the Qutub institutional area where all

the management institutes are there.

The schools that were visited: Apeejay School, Mothers International

School, Birla Vidya Niketan, Don Bosco, New Green Field School.

The above localities were simply chosen for the fact that the final data

analysis presents a true picture of the usage as well as the attitude of the

respondents in the Delhi city.

Sampling Technique

In the following project study, convenient sample size is been used.

Sample size

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It refers to the number of the elements to be included in the study. In this

project sample size is 100.

The sample size was set by keeping in mind factors such as:

1. Importance of decision

2. Nature of research

3. Resource constraint

4. Time constraint in the sense that the time period for the completion of

the project study is two months.

Sample execution

It requires a detailed specification of how the sampling design decision with

respect to the population, sampling frame, sampling unit, sampling

technique, and sample size to be implemented. Basically, face to face

interview was resorted to for contacting the respondents.

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COLLECTION OF PRIMARY DATA

Primary data for our conclusive research was collected from the respondents

belonging to the target population with the help of the questionnaire designed for the

purpose of the project study. Personal interviewing was used for the purpose of

survey. The primary reason for selecting personal interview as the means of survey

was because of the following reasons which are given below:

Criteria interviewing Personal

Flexibility of data collection High

Diversity of question High

Use of physical stimuli High

Control of data collection

environment

High

Response rate High

Obtaining sensitive information Low

Speed high Moderate

Cost high Moderate

COLLECTION OF SECONDARY DATA

Secondary data was collected from various websites in the internet,

newspaper, and magazine excerpts etc.

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C hapter – 4

L iterature R eview

23


LITERATURE REVIEW

COMPANY PROFILE

Pen companies like Link, Today's and Luxor are aggressively tapping the rural market

since they feel there is huge untapped potential in the hinterland. They have already

lined up low-priced offerings which they feel will go down well in the rural markets.

And industry insiders feel that ball point pens are expected to be key drivers for these

markets.

"The rural market is less crowded, so we will be aggressively exploiting this market

by launching new pens which are low priced" says Linc Pens and Plastic MD Deepak

Jalan. The company had earlier launched a low priced pen specifically for the rural

market and is believed to be doing well.

"This segment is very important for us, we had launched Link Tiptop for Rs. 2.50 to

have a foothold in the rural market and today this pen is a category leader" he says.

Officials at Today's pens feel that compared to the urban areas the upgradation of

consumers in the rural areas is taking place very fast. "With the increase in

purchasing power of the low-income group, they are now willing to spend more" says

Today's Pens director Mukesh Gupta.

Linc Rolls out designer pen

After the launch of Linc Gum stick, Linc Pen & Plastics has now rolled out a trendy

retractable ball pen with a designer refill, Link Tip Top. Available in India at Rs. 2.50,

Tip Top comes in 20 pieces box packing. The company says that this product will

mark an in-depth marketing foray into the rural market.

Hrithik signs to royalty deal with ballpen brand

After an innings with Coke, cine-sensation Hrithik Roshan is now teaming up with

Salman Khan, Sachin Tendulkar, Ajit Agarkar and Vinod Kambli to promote Today's

ballpens from the end of this month through a literacy campaign.

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This was announced by chairman and managing director of Today's Writing Products

Ltd Rajesh Drolia. He told The Financial Express that Hrithik would sign five of their

products from June 30.

"We have signed the agreement. From the end of this month, Hrithik Roshan would

promote five of our products, including autograph pens poster pens, puzzle pens and

felt pens with drawing books. We have not yet finalized the fifth product but it would

be done soon", Drolia said.

According to him, Today's has entered into a 14-month agreement with the Kaho Naa

Pyar Hai star on a royalty sharing basis. Asked about the royalty percentage, Drolia

said: "It would be less than 10 percent.

However, he felt that it is a win-win situation for both Hrithik and Today's. "It is true

that we would like to make most out of Hrithik Roshan's popularity but at the same

time, the star would be creating a new image of himself by promoting a stationery

product. Pen is, after all, different from all other products" Drolia said. The company

would, however, continue with its relationship with other cine and cricket starts. All

of them are playing important roles in our advertising and merchandising campaigns.

We continue to recognize the need for strong advertising and have set up a full-

fledged brand management team to execute its advertising strategies", he added.

Flair Millennium 2000 series

Flair Pens have launched the Millennium 2000 series of pens in the market. The series

features models with a new look in terms of packaging, design and finish. The models

on offer include Gel-O, Fortune, Easy Grip, Romance and Euro-Line among others,

priced in the Rs. 12 to Rs. 150 bracket.

Pen with rubber grip arrives

Specifically designed with rubber grip, the transparent, retractable Linc Star Flo is the

latest pen to be launched by Linc Pens and Plastics Ltd.

Available in four different colours the pens are priced at Rs 15 along with an extra

refill worth Rs. 5 manufacturers claim that the special refill with 06 mm TC ball helps

enhance the quality of writing.

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Flair pens introduces Sporty range

Mumbai-based Flair Limited has introduced Flair Sporty-a range of plastic pens

including ball points, gel ink, roller, micro tip and sketch pens. German Soft Ink (sued

for the first time in plastic pens) and 0.5 mm extra fine Swiss tip is a common feature

on all Flair Sporty pens to ensure smooth flow, according to the company. Packed in

trendy green and yellow, Flair Sporty range comprises fashion, cyclone ball pens,

micro ball and trio pen sets, in metallic, pastel and fluorescent colors. Priced between

Rs. 7 and Rs 35, Flair Sporty pens are available at all stationery outlets and general

stores.

More literacy promises to give good business to small pen makers

The uneducated have more than a relation of deprivation with the written world. They

are the future of writing instruments, or at least small pen makers depend on them for

survival, in a market where there is no end to the number of brands and range.

At one end of the pen business is the vast unorganized sector which is said to be

making people's pens and at the other, there is the high-priced segment. In between

are some branded popular pens.

"The market for pens is so big in the country that each segment can flourish" says

Sarlesh Vishwakarma, manager sales; Stic Pens Pvt. Ltd Vishwakarma feels that

competition has increased in the branded segment in the past few years. According to

him, this segment will play a key role in future. "But cheaper pens, manufactured by

small companies, will continue to hold 50 percent of the market share. This is so since

half the population of the country is illiterate and they will be using pens once they

learn to write". Besides, rural and town population still constitute the demand for

cheaper pens.

"Once can start making pens in one room with Rs. 25,000 in hand though for setting

up a big unit at least Rs. 1 crore is required even if one is just assembling", adds

Vishwakarma.

"The unorganized sector can earn in this line but only through its labour. Margins are

not very great but if one manufactures in large quantities and makes all the parts by

himself, profit can be huge," says J.C. Mehta, proprietor, Bharat Refills who started

26


his business in 1988 with around Rs. 50,000 and now has turnover which hovers

around Rs. 30-40 lakh.

Mehta was into refill making earlier but with the demand for refills falling, he

switched over to assembling pens and trading. "With companies like Reynolds

coming out with their brand of refill along with pens, the market for refills shrunk.

But we still make certain types of refills. We are also exporting pens indirectly".

Mehta too is confident that despite the forces of marketing and advertising which

work for the high price segment, the demand for cheap pens will increase because the

literacy rate will rise.

Sales

Today's Writing Products Ltd, one of the fastest growing pen manufacturing

companies, has signed Hollywood star Selman Khan for promoting its diverse product

range. Rajesh Drolia, chairman and managing director, said the group's turnover for

the year 1997-98 was over Rs. 60 crore of which 15 percent accounted towards

exports. The company is planning to cross the Rs. 100 crore mark by the end of the

millennium as a result of recent technical collaborations with Mon-Ami Korea for

speedwriting pens and Aubex Japan for fine liner pens.

Stic has introduced its new range of Hi Fi and Retra ballpens under the Stic Star Quest

and Crazee about Cricket series. The pens have photographs of famous film stars and

cricketers imprinted on them. The range has been launched under license from First

Serve Entertainment India, a Vijay Amritraj company in Chennai and US-based

company Upper Deck LLC. Ideal as low-cost gifts and birthday presents, the set

consists of one hi-fi and one extra ball pen and is priced at Rs. 20.

Pierre Cardin launches Studio pens:

Pierre Cardin has launched its Studio range of pens in India under its tie-up with Flair

pens. The refillable pen carries the Pierre Cardin signature and has a non-drying refill.

It is available in six colours and is priced at Rs. 25.

Schefields ties up with Kotobuki, plan JV

27


Kotobuki & Co. Ltd. of Japan has tied up with Calcutta-based pen-makers Schefields

Ltd to sell its Penac brand of pens and mechanical pencils in India. Kotobuki sells

around 150 million pens worldwide every year and supplies to most major pen

companies.

Schefields is also planning to start a manufacturing joint venture with Kotobuki, after

the product gets established in the Indian market, according to Schefields director

Deepak Khemka.

Kotobuki is also an original equipment manufacturer for most of the world's to pen

companies like Parker, Pilot, Reynolds, AT Cross, Staedtler, Waterman, Faber Castell

etc. It is also credited with developing the technology for mechanical pencils.

Customer satisfaction

“Customer satisfaction is defined as the individual’s perception of the performance of

the product on service in relation to his on her expectations”.

Customer satisfaction is the ultimate goal: There is no higher achievement than to

satisfy the customer whom an organization has committed itself to serving. This

doesn’t mean that the organization become a not for profit industry. Profits and

revenues are nothing more than the outcomes of fulfilling customer’s needs and

expectations.

Customer satisfaction to an investment: Customer satisfaction process doesn’t

often produce results in the very short term. Rather the pay off are usually realized in

the medium or long term.

Everyone must be involved in customer satisfaction: All personnel have the

capability, at some level, to influence customer satisfaction. Top management must

communicate exactly how personnel will be expected to contribute because this is

possible the more those employees industrial their sales in creating customers

satisfaction, the better they will be able to participate.

Strategies to keep in touch

Mailers : To go beyond the shop "Attitudes" customer relationship system would

include sending regular mailers updating consumers about the latest range, schemes

28


etc. This would essentially be through emails.

Cards : Standardized cards for birthdays and anniversaries would be given out to the

customers to be a point of the happy times of its customers.

Product catalogues would be sent as attachment giving out product details, range

availability, price quotations etc.

Building Customer Relationships

As with the development of quality store brands, the development of strong direct

customer relationships requires the retailer to have a long-term investment mentality.

Investment can take several forms, some more obvious and apparent than others.

A fairly transparent investment is the cost of rewarding loyal customers. Loyalty

incentives not only reward and promote customer loyalty, they also encourage

customers to participate in developing the customer information base and the two-way

communication process. Loyalty incentives can show up in direct cost, such as

cumulative points on a store cad with trade-in value, or special discounts and

promotions. They can also show up in the indirect cost of special services offered at

no extra charge or at subsidized prices, such as pre-picking or home delivery.

Strategies to reward the loyal customers

Sale Days: Almost all retail outlets undertake promotional activities especially that of

putting store items on sale. During these times "Attitude" would reward customers by

limiting the first day of sale only for select customer set - to provide them the first

choice and the widest range. This can be done by informing the loyal set of customers

through pamphlets etc. thereby making him feel important and hence strengthening

the bond.

Bonus : For those customers who have shopped 10 pairs of garments through the year

would get the eleventh at 1/10th price (on the presentation of memos). And it will be a

year round scheme to promote and build customer relations and this scheme would be

printed at the end of every bill.

Preference to our customers : Most ticket of shows/programmes for the youth are

distributed through retail outlets e.g. Ricky Martin show, Daler Mehandi Show etc. At

29


all such occasions where "Attitude" was to hold the distribution of these tickets

personal calls informing our customers about the availability and in some cases tickets

also book the tickets for them. Thereby building customer relations and rewarding

loyal customers.

Lucky draws : The end of every 3 months there would be a lucky draw where in off

all the customer cards one would be picked for a free gift thereby bringing back even

the customer who did not intend coming back.

No "Customer" goes with just the product : A range of Parker Pens would be at the

shop and a pen 10% of the bill value would be given along with the product and since

it’s a premium outlet no outfit would be less than 500 (this activity would be

sustained by shooting up the price by 10% and availing benefits of economies of

scale).

LIFETIME CUSTOMER VALUE

Retail transactions are often individually of small value, consumers may give little

evidence of retail brand loyalty in their search for best prices, and retailers themselves

are often very focused on short-term sales performance. This combination tends to

make retailers transaction-focused, and makes them lose sight of the potential lifetime

value of customer loyalty.

Value is driven by a combination of annual spend per spending consumer or

household, the life-cycle of that spend, and the share of customer spend that a retailer

might hope to achieve.

Recognizing the lifetime value of customer relationships can help retailers determine

how much and where to invest in building direct customer relationships - although

there is no automatic formula for deciding how much of that lifetime value to invest

in capturing and keeping a customer.

Fashion repertoires retailers do not expect to capture high proportion of even a loyal

customer's total annual fashion spend.

So at "Attitude", in order to add to the lifestyle customer value various benefits are

given to the customers.

30


Customization: "attitude" aims to add customer value by offering 100% customized

products to the customers. This would be one way of ensuring that a onetime

customer comes a life long customer.

Personalization : The moments of truth when the sales staff interact with the

prospective customers entering "Attitude" are very crucial in determining the way in

which the latter' reacts.

At "Attitude" sales personnel would give personal attention to each customer however

at the same it would be ensured that he does not feel honoured. Moreover a conscious

effort would be made to remember names of require customer to make them feel

important.

Trained Staff : To ensure that the customers delivered what they want and in the way

they want "Attitude" would hire and regularly train its staff. The staff would be

equipped to handle all possible queries of the customers.

Feedback loop for "Attitude"

Transfer of database information

Customer

Store "Attitude"

Customer relationship cell

Upgradation of database

regular team

Feedback specific problem handling special

schemes

ORGANIZATION CHART-PARKER

31


32


PARKER PRODUCTS

Parker Vector Standard

Parker Jotter Stainless Steel Roller Ball Pen

Parker Sonnet Fountain Pen

33

http://luxor.in/205/Products/Parker-Sonnet-Ambre-Fountain-Pen.htm

http://luxor.in/25/Products/Parker-Jotter-Stainless-Steel-Roller-Ball-Pen-(GT)-10-Off.htm

http://luxor.in/47/Products/Parker-Vector-Standard-Triple-10-Off.htm

http://luxor.in/25/Products/Parker-Jotter-Stainless-Steel-Roller-Ball-Pen-%28GT%29-10-Off.htm

http://luxor.in/205/Products/Parker-Sonnet-Ambre-Fountain-Pen.htm


Parker Vector Stainless Steel Set (Roller Ball + Ball Pen)

PROBLEMS OF THE ORGANIZATION

Luxor is a major player in the market with a market share of around 15%. Parker is a

brand that is well established in this market. Parker is manufactured and marketed in

India by Luxor Writing Instruments Ltd (LWIL). Parker was launched in India in

1996. Luxor had a joint venture with Gillette which owned the brand at that time. In

2000 Gillette sold the brands to $9 Billion major Newel Rubbermaid. That included

the 50:50 joint venture with Luxor. Later the Jains bought the entire stake in the joint

venture. Now LWIL have the 100 right to manufacture and market Parker Pens in

India.

The writings instruments market can be classified into premium, middle and economy

segment. There are many established players in this market like Cello, Add Gel,

Today’s, Lamy, cross etc. While the premium segment is dominated by super

expensive brands like Mont Blanc, Cartier etc, the economy segment is dominated by

local players. All the action is in the middle segment which consists of College

students, Executives Businessmen etc.

Parker pens have a rich heritage. The treaty of peace ending the 1898 Spanish-

American Civil war was inked using Parker pen. Sir Arthur Conan Doyle drafted the

stories of Sherlock Holmes using Parker pen. The list contains the Who is Who of

American History.

Parker was considered to be a premium brand in India (before Mont Blanc and Co's

landed with Rs l lakh and above pens). The brand had an aspirational value attached

to it. Then LWIL decided to shed the premium image to play the volume game.

Earlier Parker was priced above Rs 100. Research found that the price put off a large

segment of the market. The market was dominated by Reynolds (again a Rubbermaid

34

http://luxor.in/45/Products/Parker-Vector-Stainless-Steel-Set-(Roller-Ball+Ball-Pen)-(GT)-15--Off.htm

http://luxor.in/45/Products/Parker-Vector-Stainless-Steel-Set-%28Roller-Ball+Ball-Pen%29-%28GT%29-15--Off.htm


brand) marketed by GM Pens. The TG for this segment was the school/ college kids

and this segment was growing. Reynolds is leading with a market share of 12% and

Luxor umbrella brands are next with 10% market share followed by players like Cello

and Today’s.

Parker then launched Parker Beta for Rs 50 aiming this segment and plays the volume

game. Parker is endorsed by none other than Big B. Some ads are lousy and some

very good. I like the ones with the baseline “Why use a pen that's not a Parker”. Since

the lower segments of the pen market lacks brand loyalty, Big B can make a

difference. LWIL by using Big B aims to connect and identify with young and old

alike.

Parker was a brand that had the elegant premium touch to it with its rich tradition and

quality. But with the launch of lower priced Parker range, the premium and the

exclusivity have been compromised. Now the Parker range is available from Rs 50-

5000. Big B to certain extent salvages the pride of Parker. But when the brand tries to

play the volume game, it is difficult to sustain the premium. Thus Parker is losing out

the Executive segment where pens are used as Accessory. It’s a void that is waiting

for a brand.

COMPETITION INFORMATION

CELLO PENS

The makers of Cello pens, are a part of Rs. 800 crore (US$ 182mn.) Cello Group.

Lauded as one of the world's best and India's largest pen manufacturer's and well

known for its dynamism and spirit of innovation. Cello ceaselessly endeavours to

bring in the newest and the best of technology to set new benchmarks in quality and

innovates constantly to blaze new trails in the market place. At Cello, innovation is

not just a guiding philosophy; it is a key business process, dynamism and a defining

attitude. Today Cello offers one of the largest range of pens offered by any

manufacturer in the world, all conforming to the highest global standards. The result

of a well-equipped assembly line with over 175 ultra-sophisticated injection moulding

machines and a highly trained and dedicated work force of 5000. Cello's extensive

global R & D, cutting-edge manufacturing technology, production, processes,

globally sourced material and exhaustive quality standards are among the best in the

world. It's what makes Cello Group strong business conglomerate. It's what makes

Cello a Cello.

35


Cello has India's largest range of smart looking, high-performance gel ink and

ballpoint pens in different ink colours and at a variety of price points. Be it a school

kid, a college student, a young professional or a senior executive, there is a Cello for

everyone. Starting from Cello Alpha Gel, Maxriter and Gripper pens for pressure-free

writing that are a hit with school kid to the cool looking Cello Finegrip, Pinpoint and

Technotip XS that the college going crowd vouches for. From the ever-dependable

Cello Finer, Pointe and the stylish Cello Powermax that has become the working

professionals' most preferred to the Cello Sapphire, Papersoft and Executive pens

with a certain understand luxury that have become a common sight on the desks of

senior executives. There's also Cello's new range of Highlighters and markers that

have carved out an enviable name for themselves in a very short time.

Cello Pens are backed by well-thought out marketing and advertising campaigns

based on strategically sound positioning that have driven the name Cello to the tip of

every tongue. Today, Cello enjoys very high top-of-mind consumer recall and a prime

spot of consumer mind space. This, coupled with Cello's aggressive below-the-line

promotional initiatives, makes sure Cello stays the most asked for pen in India.

LINC PEN & PLASTICS LIMITED :

Linc Pen & Plastics Limited. (LPPL) has exclusive rights of distribution,

marketing and packaging of ‘Uniball’ brand in India. LPPL has been associated with

Mitsubishi Pencil Co Ltd for more than 15 years.

Linc Pen & Plastics Limited is a leading manufacturer, marketer and exporter of

writing instruments and stationery products. The company’s headquarter is in

Kolkata, with two state of the art manufacturing facilities located in West Bengal and

one in Goa. All the manufacturing facilities of the company are ISO 9001:2000

certified.

LPPL is the second largest player in the country with a 10% market share. However,

in the eastern region and UP, it is the undisputed market leader with a 30% share of

the market. The company has already registered its brand in more than 50 countries

worldwide, while it sells its products in 20 countries. With the Indian manufacturers

and exporters slated to increase their market share in the global export market, the

company is well on its way to be within the top three exporters of the industry.

LPPL is the only company in the industry to have top line growth, and at the same

time, making profits since 1998. We expect the company to maintain this trend in

36


future. The company has roped in Shah Rukh Khan as the brand ambassador since

September 2010. However, the effect of that has started to show from Q1FY10, when

the company has managed to clock around 20% growth in top line. We expect the

mindshare of the company to go up in future, helping it to garner a slice of the

expanding market share.

The company is also a supplier of pens to global retail giants like Wal-Mart, Asda and

Tesco for their private labels. The company has one of the largest product breadths in

the industry, with products catering to both mass segment (below Rs 20) and high

value segment (above Rs 20). LPPL has products catering to both the value conscious

as well as the quality conscious.

LAMY PENS

Lamy is an independent family-owned enterprise which was established in 1930 by C.

Josef Lamy in Heidelberg. The LAMY brand has existed since 1952 and proved its

innovative prowess in the very first year with the completely novel LAMY 27

fountain pen series. And in 1966 the distinctive style of Lamy Design was born with

the LAMY 2000. With an annual production of over 6 million writing instruments and

a turnover exceeding €50 million Lamy today is not only the market leader in

Germany but also ranks among the German design brands whose products hold a

special position worldwide.

LAMY safari

37

http://www.lamy.com/eng/b2c/safari/019_white

SHEAFFER

The year: 1912. The place: Fort Madison, Iowa. Walter A. Sheaffer takes his grand idea

of a pen-filling apparatus that utilizes a lever system and, with his life savings, founds the

W.A. Sheaffer Company. The physical space of the company is a modest one - the

backroom of Mr. Shaffer’s jeweler store - but the vision of the company is much more

than modest. Nearly a century later, we continue to offer generation after generation

innovative, reliable and stylish writing instruments. These pens are used worldwide by

loyal and diverse friends who appreciate elegance and class. We look back to the

nostalgic past, to simpler times when a look in the eye and a hand shake was the norm.

We look to the abundant future, by redefining the fashion of written communication in

our technological world. You have a signature. And Shaffer gives you the power to show

the world what it is.

Shaffer Pens are a delightful mix of craftsmanship and excellence in quality. Available in

Fountain Pen, Roller Pen and Ball Pen, they are the written word for everything you look

for in a pen. Immaculate design, thoughtful features and effortless writing make Shaffer, a

much sought-after brand in pens. The range of pens in this collection can be personalized

with your name. Sheaffer pens come in a premium gift box.

PRODUCTS

Writing Instruments

Sheaffer® Prelude® Collection

Welcome to the quality writing instrument.

Sheaffer® Intensity®

Passion and Power Personified

Sheaffer® Agio® Collection

The difference is in the details.

http://www.sheaffer.com/writing/product_detail.php?ID=42



SWOT ANALYSIS

SWOT ANALYSIS OF LUXOR BASED ON THE RESEARCH

CONDUCTED

STRENGTH

Great brand image

Excellent customer satisfaction especially among corporate professionals

Diverse product range

Mass appeal and popularity

Caters to each market segment-children, professionals, students.

Well expanded retail network-both small and big outlets have Luxor pens

Strong hold among the corporate professionals

WEAKNESS

Lack of new designs and innovations(based on customer response)

Difficulty in procuring refills and ink bottles for Parker.

Danger of losing brand appeal.

Opportunities

Building a Brand image about Luxor in a new manner

Writing Instruments Market is expanding as many foreign companies are coming

in this.

By continually introducing new products, expanding the target base, Parker can

reposition itself

Threats

Stiff competition from Lamy, Cross & cello pens

Unawareness among consumers regarding Luxor’s complete and exhaustive range

of products.

Less promotions, advertising by Luxor

C hapter-5

D ata A nalysis

DATA ANALYSIS

For the research, data was collected from both primary and secondary sources

through questionnaires formed for the purpose. The questionnaires were filled by 50

customers and 50 retailers.

PRIMARY DATA

Questionnaires

Personal interview

SECONDARY DATA

Various internet sites

Internal data provided by the company

ANALYSIS TOOLS

Graphs

Pie charts

1. AWARENESS OF BRANDS

INTERPRETATION

The above pie chart shows the distribution of awareness of different brands of pen. The

top 3 brands of pen in this case were: Parker, Cello, Uniball / Cross.

2. WEIGHTAGE OF DIFFERENT ATTRIBUTES OF PARKER PEN

Writing performance-----------------------------10

Design/style---------------------------------------42

Brand name----------------------------------------38

Reasonable Price----------------------------------10

INTERPRETATION

The above pie chart shows the distribution of weight age of different attributes of Parker

pens. So, the descending orders of the attributes according to the weight age: brand name,

reasonable price, design & style & writing performance.

3. OUTLETS FROM WHERE THE RESPONDENTS PURCHASE THE

PARKER PEN

School Stationery shop----------------------------------- 2

College Stationery Shop--------------------------------- 3

Stationery shop-------------------------------------------- 62

Stationery & gift shops at malls------------------------- 33

INTERPRETATION

The above pie chart shows the distribution of outlets from where the

respondents purchase the Parker pens. About 62 respondents buy the Parker pen

from the stationery shop while other 33 respondents got the Parker pen from

shops, malls, school and college stationery shop.

4. PREFERRED BRAND IT TERMS OF QUALITY

PREFERRED BRAND IN TERMS OF QUALITY

27%

33%

23%

10%7%

Parker Cello Uniball Pieree cardin cross

INTERPRETATION

The above pie chart shows the distribution of preferred brand in terms of

quality. Descending order of preferences Cello, Parker, Uniball, and Pierre

Cardin etc.

5. LUXOR PEN OWNER (PARKER)

INTERPRETATION

The above graph shows the distribution of Luxor (Parker) Pen owners. It can be

clearly seen from the graph that about 60 respondents are Luxor (Parker) pen

users.

6. USAGE OF DIFFERENT SUB BRANDS OF PARKER PEN

INTERPRETATION

The above figure shows the distribution of the ownership pattern of sub brands of Parker

pens. It is clear from the figure that Parker Vector and Parker Beta has got the maximum

amount of acceptance from the respondents.

7. ACQUISITION MODE OF THE RESPONDENTS

Self purchase------------------------------------- 69

Gift------------------------------------------------ 31

INTERPRETATION

The above graph shows the distribution of the acquisition mode of the respondents. 32

respondents acquired the Parker pen through self purchase, 68 respondents acquired for

the purpose of gifting.

8. RESPONDENTS WHO HAVE SEEN PARKER ADVERTISEMENT

Yes---------------------------------- 80

No----------------------------------- 20

INTERPRETATION

The above graph shows the distribution of the respondents which have seen the

Parker advertisements. Nearly 80 respondents have seen Parker Advertisement

and 20 respondents have not seen Parker.

9. MEDIUM IN WHICH RESPONDENT SAW ADVERTISEMENT

INTERPRETATION

The above pie chart shows the distribution of weightage of medium in which the

respondents saw the Parker advertisement. The descending order of weightage

was as follow television, shop (posters/banners/glow sign) newspaper,

magazines.

10. RESPONSE OF RESPONDENT TOWARDS STATEMENT

INTERPRETATION

The above pie chart shows the distribution of the view of the respondents

regarding the Parker pen in terms of affirmation. The top 3 statement as per

weightage given were:

(a) makes high quality pen

(b) gift which can be appreciated

(c) well established reputation

11. LIKELY RESPONSE OF THE RESPONDENTS TO THE NEXT

BEST PREFERRED BRAND

Cross ------------------------------------------------ 10

Cello-------------------------------------------------- 25

Uniball/Pierre Cardin etc ---------------------- 65

INTERPRETATION

The above pie-chart shows distribution of the likely response of the respondents

to the next best preferred brand if they do not find a Parker in an outlet. 25

respondents preferred cello 65, preferred Pierre Cardin etc and the rest

preferred cross.

12. PREFERRED WRITING MODE

0

5

10

15

20

25

30

35

40

45

1

PREFERRED WRITING MODE

INTERPRETATION

The above graph shows the distribution of Preference of writing mode the

respondents. Out of the 100 respondents that were interviewed were 43

preferred, Ball 39, preferred gel and the rest roller.

13. GOING TO OTHER OUTLETS FOR PURCHASE OF PARKER PEN

0

10

20

30

40

50

60

70

80

1

GOING TO OTHER OUTLETS FOR PURCHASE OF PARKER PEN

Yes No

INTERPRETATION

The above graph shows whether the respondents were willing to go to other

shops if they did not find the Parker in a Particular shop. 80 of them said yes.

14. CHART SHOWING THE DISTRIBUTION OF SEX OF THE

RESPONDENTS

INTERPRETATION

The above graph shows the distribution of Sex of the respondents Preference of

writing mode the respondents. Out of the 100 respondents 75 were Male and 25

Female.

13. AGE OF RESPONDENTS

AGE OF THE RESPONDENTS

15

50

35

Upto 18 years 23-27 years 19-22 years

INTERPRETATION

The above pie chart shows the distribution of the age of the respondents. About

50 respondents were of age between 23-27 yrs, 35 respondents were of the age

between 19-22 yrs, 15 were upto the age of 18 years.

14. OCCUPATION OF THE RESPONDENTS

OCCUPATION OF THE RESPONDENTS

15%

49%

36%

Students School + College

Coporate Professional (and Businessmen)

others Teachers etc

INTERPRETATION

The above pie chart shows the distribution of the occupation of the respondents. About 49

respondents were corporate professionals and in business, 15 respondents were students

and the rest having other professions.

C hapter - 6

C onclusions

CONCLUSIONS

The following are the conclusions that can be drawn from the survey that was carried out:

It can be concluded from the survey that the maximum respondents use on the average

one to three pens in the past two months. It clearly indicates the frequency of pen

purchase by the respondents. So, it should be kept in mind that the frequency of pen

purchase while deciding upon the volume of pens that is to be produced by the company.

It can be concluded from the survey that the maximum respondents had opted for ball

point pen and gel pen. So, it is important for the company to focus on these two segments

to further reinforce its position in the writing instruments industry. However, if we go by

the statistical figures, Luxor Writing Instruments Limited is losing ground in the industry

mainly because it is not producing gel pens. So, the company should concentrate on the

gel segment also.

It can also be concluded that the majority of the usage pattern is tested towards ball point

pen and gel pens. The majority of the respondents use the above two modes of pen very

often. These two segments of pen provides ample amount of opportunity for the company

to tap.

By studying the attitude pattern of the respondents, one can conclude that the maximum

number of respondents prefer to have roller ball, ball point and gel pen. In other words,

the respondents seem to have a favourable attitude towards roller ball, ball point and gel

pen. The company should try and cash on with the closeness of the mind of the

respondents with the likes of ball point pens, gel pens and roller ball pen.

It can be concluded that the most important factors that play in the mind of the

respondents are : writing performance, flow and comfort. So, the company should try and

bring about constant improvement in the quality of the pen to suit the needs of the

consumers. The flow of pen is equally important. So, the company should see to it that

there is no leakage in the refill as such. Also, the grip of the pen is paramount importance

to the consumers. So, in that aspect, effort should be made to make the grip more

comfortable.

It can be concluded that the majority of the respondents prefer fine tip. So, in that respect,

the company should see to it that the different varieties of pen that they manufacturer

should have a fine tip.

It can be concluded that the majority of the respondents prefer to buy a particular brand of

pen in the pen shop. So, the company should see to it that point of sale promotion should

be given a lot of stress. In shop posters, danglers, glow signs should be put. So, that it

leaves a profound impact on the mind of the consumers.

It can be concluded that the majority of the respondents prefer to buy their pen from the

stationery shop. Though of late, the company trying to push its product through the

FMCG route but as it is evident from the survey, it is still to catch on.

It can be concluded that the main competitors of Parker as far as aided as well as unaided

recall is concerned, is Reynolds, Add Gel, Cello. The companies take note of these

competitors and devise various strategies and when these competitors come out with new

variation of their pen.

It can be concluded that most of the respondents acquired the Parker through self

purchase and gifts. When the school students as well as the college student were

surveyed, it was quite evident that Parker pen was perceived to be a costly pen, good for

only giving it as a gift. So, the company should tap this segment the most as it has a lot of

potential.

Majority of the respondents seems to have a favourable attitude towards Parker pen. So,

the company should take steps in the regard to further reinforce its position in the mind of

the consumers. This can be done effectively by the means of the advertisement.

It can be concluded that the majority of the respondents buy Parker pen because its brand

name, flow and the writing performance. However, it scores a negative point on factors

such premium, price, design/style and lightweight. These factors may prove to be a

hindrance in boosting the sale of the Parker pen and so, it should be given due

consideration.

The respondents were given a hypothetical question wherein, they had to conceptualize a

picture of ideal pen in their mind and exactly how would they go about buying that ideal

pen. It was concluded that the respondents give maximum amount of weightage to the

writing performance, flow, brand name.

It can be concluded that the awareness of Parker advertisement is fairly good. Nearly, 98

percent of the Parker pen users have seen Parker advertisement. So, in that perspective the

advertisement of the Parker pen has been quite effective.

Parker pen has been largely been acquired from stationery shop. So, as discussed earlier,

the company should give more focus on point of sale advertisement.

Parker pen advertisement has been successful in television, newspaper particularly. The

company should go for more insertion in these medium to gain the maximum amount of

mileage vis-à-vis its competitors.

There is an overwhelming amount of awareness amongst the Parker pen users that

Amitabh Bachchan is then brand ambassador. The respondents are able to easily co-relate

Parker pen especially Parker Beta with Amitabh Bachchan.

Majority of the respondents are aware of the fact that Parker Pen starts at Rs. 50. There

are still certain sections of peoples such as school students as well as college student that

the Parker pens are expensive, suitable only for giving gifts.

Majority of the respondents were of the view that they would go to another shop to buy a

Parker pen if they do not get it in an outlet. This just goes to show that the majority of the

respondents who were interviewed were brand loyal.

Parker pens main strengths are:

"Makes high quality pen"

"Gift which can be appreciated"

"Well established reputation"

"is well made"

"pen that makes impression on others"

Its weaknesses are

"Inexpensive pen"

" I like to flaunt it"

" I am an achiever in life"

"specialist in fountain pen"

"Stylish design"

The performance gap which exists between the Parker pen and the ideal pen shows the

areas on which improvement should be made to make the pen more competitive in the

market.

The following are the areas where the company should sustain its efforts i.e.

Brand name

Premium

Comfort

Reliability

Flow

The following are the areas where the company should strive to make the improvement.

These areas are:

Design/style

Price

Lightweight

Writing performance

LIMITATIONS

The sample size is moderate enough though it could have been bigger

The responses from the sample consumers were obtained through questionnaire, which

has its own limitations. All these limitations are also applicable to this study.

There is considerable time gap between the purchase of Refrigerator and the study

conducted; rapidly changing marketing environment has affected the responses of the

sample of Refrigerator owners.

The area chosen for survey may not reflect the demographic makeup of national average

and national tests, which is a limitation of the study.

Between the sender and the receiver, due to differing perceptions, communication errors

in the form of miscomprehension, selective perceptions etc. creep in. In this case too,

these were unavoidable, and thus might have added to slight inaccuracy in my results.

I had to work under a time constraint for which I would not gather more information. All

places could not be covered especially the remote areas even within the NCR territory.

Hence the opinion of many people was left untapped.

C hapter-7

R ecommandations

RECOMMENDATIONS

1. One of the respondents was of the view that Indian Parker is not well made. Golden

Parker is not available in India.

2. The outer finishing of the Parker pen is not good enough. Adequate changes should be

made in this regard.

3. Quite a few of the respondents who were surveyed were of the view that pen breaks

easily near the grip part. So, the grip portion of the Parker pen should be made very

strong.

4. Parker pen seems to be very heavy. So, effort should be made to make it a lightweight

pen.

5. There is a general perception in the mind of the respondents that Parker pens are a bit

costly. So, the company should give its pricing strategy a second thought.

6. It has also seen that mostly the respondents buy Parker pen for gifting purpose rather

than for personal use. This phenomenon should be kept in mind by the company.

7. While visiting some of the stationery shop, it was observed that the distributor margin

for the Parker pen in most of the cases were very low. So, the shopkeeper thinks twice

before keeping Parker pens.

8. It was also observed that the cap of Parker pen becomes very loose. So, in this regard,

the cap of the pen should be made for tight.

9. It was also observed that while visiting different stationery shops, there was lack of

posters, danglers, etc. in various shops that were visited. For instance, when Archie's

Gallery in Alaknanda market was visited, the owner could not put poster, danglers of

Parker pens because they were not authorized to promote other company's product.

So, the company should take note of this and take appropriate action.

10. It was also observed that in certain instances, the gift that was associated with the

particular sub-brand of Parker was not received by the retailer. The company should

take a serious note of this incident and must take an appropriate action.

11. It was also observed that the retailers did not get their amount reimbursed when the

price of the Parker pens were slashed. Instead of getting the reimbursement, they got

other products, say, cartridges in lieu of reimbursement. This seriously hampers the

goodwill of the retailer and so, the company should take a serious note of this

incident.

12. The company should ensure better production logistics using backward integration

into raw materials and packaging to cut down production cost.

13. The company should go for the optimal product mix to bring about maximum gain or

profit. They should also milch certain sub-brands of Parker which is not doing well in

the Indian Market.

14. The company handles basically four brands of pen namely, Parker, Luxor, Pilot and

Papermate. All of these brands of pen should be treated as a separate Strategic

Business Unit (SBUs). It will be beneficial for the company in the sense that these

SBUs will have its own set of competitors and each SBU will have a manager who is

responsible for strategic planning and profit performance and who controls most of

the factors affecting profit.

15. The company should analyze each opportunity and prepare the best product and

should then, commit itself for the long run to make a product a success.

16. The company should always be an active innovator and should be constantly

innovating to bring about new changes in the product specifically with relation to

Parker pens to suit the changing needs and wants of the customer.

17. The company should go for high quality, action oriented as well as national promotion

to further reinforce its position as market leader in the writing instrument industry.

18. The company should try to cater to the niche segment which comprises of the affluent

segment of the Indian population because they are the one who will buy the costly

Parker pens. It is also quite evident that Parker pen is not doing that well in the upper

segment of the product range. A major chunk of the revenue is coming from the lower

segment of its product range. Targeting the affluent segment of the Indian society

might just do the trick for the Parker pens in the upper segment.

B ibliography

BIBLIOGRAPHY

Books

Marketing Research - Naresh Malhotra, 4 th edition.

Marketing Management - Philip Kotler, 12 th edition.

Advertising Management - David Aaker, John G. Myers, and Rajeev Batra.

Brand Management - Subroto Sengupta

Websites

www.indiainfoline.com

www.expressindia.com

www.aceglobalonline.com

www.economictimes.com

Magazines and journals

Writing instruments - a Potential for Export (by G.P. Gandhi).

Writing instrument - Excerpts from Business World Magazine.

http://www.economictimes.com/

A nnexure

ANNEXURE

QUESTIONNAIRE

1. Do you use a pen?

Yes No

2. How many pens you have used in the past two months?

Below 1 1 - 3

4 - 6 above 7

3. Which mode of pen do you use and why and what is your usage pattern?

Mode Usage Pattern Why (Reason)

(a) Fountain Pen (i) Never tried

(ii) Ever tried

(iii) Past 4 weeks

(iv) Past 12 months

(v) Used most often

____________________

(b) Roller Ball Pen (i) Never tried

(ii) Ever tried

(iii) Past 4 weeks

(iv) Past 12 months

(v) Used most often

_____________________

(c) Ball Point Pen (i) Never tried

(ii) Ever tried

(iii) Past 4 weeks

(iv) Past 12 months

_____________________

(v) Used most often

(d) Gel (i) Never tried

(ii) Ever tried

(iii) Past 4 weeks

(iv) Past 12 months

(v) Used most often

_____________________

4. What do you think about the particular mode of pen that you use?

(a) Fountain Pen Insist

No Opinion

Prefer

Unaware

Intend

Reject

(b) Roller pen Insist

No Opinion

Prefer

Unaware

Intend

Reject

(c) Ball Point Pen Insist

No Opinion

Prefer

Unaware

Intend

Reject

(d) Gel Pen Insist

No Opinion

Prefer

Unaware

Intend

Reject

5. What factors do you keep in mind when you buy a pen? Please give the

raking on a scale starting 1 which is of highest importance and 10 is of

lowest importance.

Factors Ranking

Writing Performance ______

Design/Style

Brand Name

Reliability

Comfort

Place

Flow

Light Weight

Fine Tip

Premium

Any other (please specify

______

______

______

______

______

______

______

______

______

___________________________

6. What is your preference for the pen tip?

Broad Medium (0.7mm)

Fine (0.5mm) Extra/micro fine

7. When do you decide the brand of pen you want to purchase?

In the pen shop It is pre-decided

8. From which kind of outlet did you buy your last pen?

School stationery shop College stationery shop

Stationery shop Kiranawala store

9. Which is the first brand of pen that comes to your mind?

_____________________________________________

10. Which other brand of pens are you aware of?

_____________________________________________

11. Which all brands of pen you are aware of?

Parker

Camlin

Reynolds

Waterman

Papermate

Luxor

Mitsubishi

Rotomac

Pilot

Reynolds

Cello

Hero

Add

Montex

Any other__

12. Do you own a Parker?

Yes No

13. Which particular sub-brand of Parker do you own?

Parker Sonnet Parker Rialto

Parker Frontier Parker Beta

Any other specify________________

14. How did you acquire the Parker pen?

Self purchase Gift

Borrowed Promotion

15. If option 1, then did you last buy your Parker Pen?

_______________________________________________

16. From where did you buy a Parker Pen?

School stationery shop College stationery shop

Stationery shop Kiranawala store Others

17. What is your attitude towards 'Parker'?

Insist Prefer Intend

No opinion Unaware Reject

18. How do you rate a Parker Pen on various factors that is given below? Please

give ranking on a scale of (1-10) wherein, 10 is the highest and 1 is the

lowest.

Factors Ranking


Design/Style

Brand Name

Reliability

Comfort

Place

Flow

Light Weight

Fine Tip

Premium


______

______

______

______

______

______

______

______

______

___________________________

19. In your ideal pen, what all factors do you keep in your mind? Please give their

ranking on a scale of (1-10) wherein, 10 is the highest and 1 is the lowest.

Factors Ranking


Design/Style

Brand Name

Reliability

Comfort

______

______

______

______

Place

Flow

Light Weight

Fine Tip

Premium


______

______

______

______

______

___________________________

20. Have you seen any advertisement of Parker?

Yes No

21. If yes, then on which medium have you seen/heard the advertisement of

Parker Pen?

Television Newspaper

Radio Magazine

In shop (posters/ banners/glow signs etc.

22. Who stars in Parker Pen advertisement?

Amitabh Bachchan Shahrukh Khan

Aamir Khan Hrithik Roshan

23. At what price is a Parker available?

Rs. 25 Rs. 50

Rs. 75 Rs. 100

Above Rs. 100

24. Give your preferences in terms of agree or disagree to the following statement

concerning the 'Parker Pen'.

Statement Agree Disagree

Makes high quality pen

Gift which can be appreciated

Well established reputation

Pen that makes impression on others

Attractive appearance

Is well made

Good craftsmanship

Stylish design

Makes technologically advanced pen

Specialist in fountain pen

Best writing performance

Good value for money

Wide variety of pen

Pens with new idea

I am an achiever in life

I am noticed by my friends

I like to flaunt it

Inexpensive pens

25. If you do not get a Parker pen in an outlet do you

Go to another shop

Buy any other brand _______________ (specify which one)

Request the shopkeeper to get it

--------------------------

Name of the Respondent:

Sex: Male Female

Age

Below 14 years 14-18 years

19-22 years 23-27 years

Above 27 years

Occupation:

School student College student

Private Company Employee Professional

Consultant Teacher

Others (Specify) ______________

parker pen consumer usage and attitude towards parker pen 82p - aima format

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