Ahi

Krishna
Bhavani
Bidisha
Dhilip
Fritz
Gururaj
 WRITING
INSTRUMENTS
INDUSTRY
 Evolution…
Claysla Reed Feathe Nib
b pens r

Gel Fiber Roller

pens tip Ball
ball
pens
Growth of Pen Industry in India
Ø Late1970s– fountain and ball
point pens.
Ø 1980s -an increased acceptance
of ball point pens (Wilson Jotter
was the market leader)
Ø 1982-Luxor entered the market
Ø 1984-Linc followed
Ø 1986-Reynolds entered and
gained popularity
Ø Late 1990’s-fibre tips, roller
balls, gel pens, etc.
Contd
…
contd…

Ø Early 2002-worth of writing

instruments industry in India was
Rs 15 billion; brands like Cello,
Rotomac, etc.
Ø 2007-2008 – Rs 21 billion
 Growth of Pen Industry in
World
Ø Till late 18th century - feathers
Ø Early 19th century - metallic nib
Ø 1870’s - fountain pens (Waterman)
Ø 1925-1940 - growth of fountain pens
Ø After 1945 – first ball point pen
Ø 1985-1990 – Japanese gel technology
Ø 21st century – stylish pens, roller balls, etc.
 MISSION

Quality First……
……Cost Second
Growth…
 Product Range
• Gel Pens- Gypsy, ADD 1st Rank
• Ball Roller- Ballet, Impress
• Exclusive- Maestro, Highness
• Gel Roller- Alpha, Diamond Roller
 Differentiation
ADD 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.

ØQUALITY
TECHNOLOGY
●
ØDESIG
N
ØATTRACTIVE
PRICES
 ØDETAILED
to
PERFECTION
ØGLOBAL
CORPORATE CUSTOMERS
ØAir Sahara
ØBinani Cement Ltd.
ØBrittania Industries Ltd.
ØDabur Pharma Ltd.
ØLotte India Corporation Ltd.
Segmentation &
Targeting
COMPETITIVE ADVANTAGE
ØBenchmark for quality
ØWorks across Diverse Climates
ØPresent in more than 30
countries
ØExported to Japan( pioneers of
Gel technology)
Company Information
Ø Started in 1963 as Luxor Writing
Instruments Pvt. Ltd. (LWIPL)
Ø LWIPL manufactures and markets the
following products under the parker
brand

Ø 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
Functional
Packaging
Brands
 Product and
Packaging
Premium
Rialt
Brands
o
Sonne
t
Fronti
er
 Pricing

ØAt launch, Rs.90 to Rs.10,000

ØPresently priced from Rs 200

up to Rs 10,000
 Promotion
Ø Advertising in the print and television
media

Ø In 2001, LWIPL roped Amitabh

Bacchan due to his popularity among
all groups
Ø Huge success with high recall value
among TV viewers

Ø Display on special racks so that

people could notice the complete
range of pens
 Place/Distribution
Ø Initially launched in – Delhi, Mumbai,
Kolkata and Chennai. As the demand
grew, they were made available in
other urban areas

Ø Sales distribution network of 850

Super distributors/Distributors and
1,00,000 retail outlets in more than
650 cities

Ø Low priced versions available in small

stationary shops
 Segmentation
ØUpper sections of the society,
including senior executives,
businessmen…

ØYoung executives ,school and

college going students

ØCorporate 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
Ø "Parker's target group is the top 15
million families in India”

Ø Primarily targeted at the upper

middle class consumers, senior level
executives and bureaucrats…
Ø Targeted its Vector brand at young
executives and its Beta brand for the
school and college going students

Ø Corporate market
 USP
The 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
Customers
ØSamsung
Ø Separate brand for B2B
ØAventis customers
ØStar ,NIIT
ØAmericanCustomersØ Specialize in selling a
express, company by marking
Usha high quality writing
ØTitan, Wipro instruments with
ØBirla plus company logo, name or
ØDabur, message to ensure the
Nivea message is seen and
noticed everyday
ØIndia Today
ØMc Dowels
 About the company
Internationally acclaimed
manufacturer
and exporter of pens since 1997.
Founder, CEO Vinod Sachdeva
Headquartered at the Andheri
suburbs of Mumbai
Manufactures 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 & Pricing
Ø Plastic pens ( Ball pens, Gel pens):
Ø Lexi sharp, Lexi QT, Lexi IQ Lexi 5
Ø Lexi G, LexiG7 ( Rs 5– Rs 10)

Ø Metal pens:
Ø LP 001, LP 002, LP 003….., LP 006( Rs
50– Rs 750)

Ø Opaque & Corporate promotional pens

Packaging
Promotion
 Network

obal presence Indian presence

 Corporate customers
The list of corporate customers include
Pfizer ltd
Ranbaxy ltd
Times of India
Hindustan lever ltd
Tata infotech ltd
Proctor & 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 writing
Original innovative
designs
Ergonomically designed
products for stress free
comfort writing
Instaflow ink technology
for smudge free writing
Leak proof fitting
 Linc Pens &
Plastics Ltd
Head Office : Kolkata
Around 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
 Global
20% 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 & Mission
Vision::
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
 Products
In 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
Pricing
 Distribution
The 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.
 Promotion
Shah Rukh Khan is the brand Ambassador
Appointed 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.
STP Analysis

Ball Pens
 STP Analysis Contd…
 Highest selling category is the Rs-5 ball pens, which accounts
for more than 60% of the revenue
 Exports 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 Differentiator
In the current "commoditized" approach of the
industry for this category, building long-term
brand value.

 International Ball Pens

 USP
The 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
:Are
high quality writing
instruments , with R&D latest technology.

Ø 1927- Edmont regnault establishes Reynolds

Ø 1945- Base shifted to France.
Ø 1986- GM pens starts Reynolds marketing in India
Ø 1999- Sanford corporation acquires global
operations of Reynolds.
 Products and competitors

Ø Ball pens - 045 fine carbure, 040 bold, fusion, officerite

Ø Gel pens - Racer gel , Racer gel II, Racer gel active.
Ø Lead pencils, Click pencils
Ø Artoons - FunBox, sketch pen, Safari, Jumbo combo
Ø Markers - permanent correction, OHP, whiteboard
Highlighter
Ø Ink pens
Ø Retractables-Jetter regular,Jetter gripp,Jetter
 Network & Distribution

Ø300thousand retail
outlets
Ø1800 redistribution
stockists
Ø30 main stockists
ØSales and Marketing
team of over 300
professionals
ØWritesite retail
outlets
 Promotion
Ø Print ads with agency JWT and other
agencies
Ø TV ads with brand ambassador
Ø Student scholarship programs in
schools
Ø Vending machines at schools and
nearby places
Future& market woes
Increasing tough competition
Institutional & gift segments
absence
No presence in the Parker type
Competitive advantage
Ø Latest R&D facilities and
technology
Ø Excellent distribution network
Ø Good quality and Brand image
Brand Blaster

Ø Sachin was signed the brand

ambassador on May 15th
2006
Ø Endorses in ads
RacerGel,045
Ø Why Sachin?
Ø Price War, Branding
Ø Targeting kids and students
 WriteSite
Ø Franchisee owned retail outlet
Ø First of its kind in the industry
Ø Presently 15 outlets in 6 cities : Chennai,
Indore, Ernakulam, Ahmedabad, Hyderabad
Ø Targets to set up 35-40 sites in malls
Cello Writings Ltd
About the Company
 Vision

Vision of “uncompromising quality

and total consumer satisfaction”
 Network
Ø Products available at more than 7,31,000 outlets in
India.

Ø Network of 42 super stockists, 4200 distributors and

900 field force employees.

Ø 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.
Pricing
 Promotion
Ø By Radio Advertisements :
In Radio Mirchi, Big FM, 91
FM
Ø By TV Advertisements : 8
commercial TV ad’s
Ø Internet Ads
 Differentiation
Ø InoxTip: Fibre tip technology that helps is
smooth writing
Ø LPHV: Low Pressure High Volume technology
that helps to reduce pressure on paper
Ø Elasto Grip: Elastic rubber grip to provide have
perfect grip on the pen
Ø Lubriflow: Used in Ball Pens for free and
appropriate flow of ink
Ø Lubrigel: Used in Gel Pens for free and
appropriate flow of gel ink
Ø Feather flow: Used to reduce the weight of pens
for faster writing
 STP Analysis
Ø Segmentation:
School & College going students (Ball Pens, Gel
Pens & Glitter pens)
Corporate Offices (Markers, Ball Pens, Retractable)
Ø 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
 Positioning
Add gel - High quality at low cost
Linc – Useful for all spheres of life
Cello – Student friendly pen
Reynolds – A seasoned player with
strong presence
Parker –Premium pens of a world
class brand
Lexi – Affordability and ease of
writing
 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