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Marketing Case Study-Luxur Pen

Marketing Case Study-Luxur Pen

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Published by Abhijit Roy

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Published by: Abhijit Roy on Jun 22, 2009
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Luxor Writing Instruments Private Limited - Marketing Pens in India
"The mass-consumed pens are high impulse, low budget products and thus visibility is most importanBesides, there is no brand loyalty for the bottom segment."
- Supratik Sengupta, Product Manager, Linc Pens and Plastics LimitedIntroduction
In 2002, Luxor Writing Instruments Private Limited (LWIPL) had emerged as the market leader in thpremium pens
segment in India, with a market share of 60%. The company held a 10% share in the writininstruments industry, next only to the market leader, Reynolds that held 12%. LWIPL had been in the peindustry for nearly four decades. The company adopted innovative marketing strategies that had made it onof the most popular pen manufacturers in India.Commenting on the prospects of the 'Waterman' brand, DK Jain, Chairman of LWIPL said, "Because of iprice and brand name, Waterman will certainly have an edge over other premium brands in India."
Thcompany planned to launch an international advertising campaign for these pens.
LWIPL offered a widest range of pens with leading brandincluding Luxor, Pilot, Papermate and Parker. In Decembe2002, LWIPL launched the world renowned 'Watermabrand of premium pens in India.This was possible after LWIPL's acquisition of a 50% stakin the Indian operations of Newell Rubbermaid
. Thcompany planned to sell imported 'Waterman' pens for thnext couple of years and then start indigenous productiofor these pens.The price of these pens ranged between Rs.3,500 tRs.50,000 and was made available in nine sub-brandLWIPL planned to sell these pens to corporate customers.
Page 1 of 1Luxor Writing Instruments Private Limited - Marketing Pens in India Case Study | Free Case Studies11/15/2008http://www.icmrindia.org/free%20resources/casestudies/luxor1.htm
Luxor Writing Instruments Private Limited - Marketing Pens in India
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Introduction Contd...
LWIPL was known for its heavy spending on advertising its products. It had entered into several tie-ups wimultinational pen companies that helped in leveraging its current position in the industry. The fact that LWIPwas a debt-free company was another significant achievement. However, with the rising competition annegligible presence in the faster growing gel pens segment, analysts felt that LWIPL had an uncertain futurAnalysts also feared that LWIPL's decision to diversify into the hospitality and packaged foods business i2001-02, might lead to a loss in market share in its core business.However, owing to their high prices, not many people could afford to buy them. Camlin Limited was amonthe noted fountain pen makers in India during that time. By the late 1970s, fountain pens started loosintheir popularity as people found it cumbersome to refill the ink regularly. The 1980s witnessed an increaseacceptance of ball point pens and Wilson Jotter was considered to be the market leader in this segment.The pens manufactured by Jotter were popularly called Jotter pens. The market for ball point pens was alsdominated by domestic players in the unorganized market. With the increase in demand, existing playestarted expanding their capacities while many new players began entering the market.In 1982, Deepak Jain, managing director of Luxor Pen Company (Luxor) entered into an agreement with thPilot Corporation of Japan to officially launch Pilot pens in India. In 1984, Suraj Mal Jain
startedmanufacturing unit for ball point pens and refills in Kolkata and named it as Linc Writing Aids Private LimiteThe company launched new varieties such as disposable pens into the market.
Luxor Writing Instruments Private Limited - Marketing Pens in India - Next Page >>
Background Note
The pens industry in India had passed through variouphases with the changing tastes and preferencescustomers. Till the late 1970s, only two categories of penexisted in the Indian market – fountain and ball point pens During that time, people preferred writing through a pencrather than a pen. Moreover, people preferred fountaipens, as it was perceived to write better compared to thball point pens. Apart from domestic manufacturers, whmanufactured fountain pens on a small scale and sold theat cheaper rates, branded fountain pens manufactured bleading international players such as Monte Blanc, Cartieand Parker were available in India through the gremarket.
Page 1 of 1Luxor Writing Instruments Private Limited - Marketing Pens in India | Free Case Studies | Case Study11/15/2008http://www.icmrindia.org/free%20resources/casestudies/luxor.htm

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