Industry Presentation

CLASSMATE

Group

33

The Brand and the competition An Over view

Competitors
S No 1 2 3 Company/Brand Camlin Navneet Faber Castell Products Colours,Pens,Pencils,Notebooks,ad hesives etc. Notebook, Books-syllabus & nonsyllabus, Pencils etc. Colours, Pens, Pencils, Markers

SWOT Classmate- A Snapshot

Parent Company Head Office CEO/MD ITC Kolkata Chand Das

Strengths

Threats

ITCs Brand Image Established brands Robust distribution Emergence of lower priced local brands network

Products

Natraj

Pencils, Erasers, Sharpeners, Pens.

Notebooks, Pens, Pencils, Geometry boxes, erasers, sharpeners

Weaknesses

Opportunities

Market Share- Split-up

Faber Castell 20% Camlin, 18%

Educational Lack of brand industry fast awareness growing industry Lack of Connect (18%) in India among customers ITCs rural presence

Classmate, 30%

Classmate Over the years

2007

2013

Natraj, 12%

Navneet, 20%

2003 Addition of new products such as pens, pencils, geometry boxes etc. 100 Crore turnover in 2006 Largest notebook brand in the country 4Ps

Around 700 Crores turnover Around 65000 outlets New notebook brands such as Classmate Stripes aimed at Youth
Group

Situation Analysis

Primary Research & Customer Behavior

Brand Launched with the notebooks category 30 Crore turnover in the first year Segmentation and Brand Positioning Target Markets

33
Problems & Challenges Recommendations

The Context, Consumer and Collaborators

C O N T E X T Stationery Industry is a very heterogeneous group of business usually associated with the Schools, Collages, and Office. C O N S U M E R Consumers for the stationery has a very wide range of the following: Students Schools/colleges Office Elite Stationery Personalised Stationery

It is expected that Stationery industry has a flourishing future in it's coming years in India and over a period is estimated to grow at 10 to 15% p.a.
C O L L A B O R A T O R
Primary Research & Customer Behavior

Classmate has 900 distributors who make the products available in over 70,000 outlets in India. Classmate Ideas for India challenge plans to reach out to 2.5 million students across 30 cities, 500 schools and 200 colleges across the country.
Group

33
Situation Analysis Segmentation and Target Markets Brand Positioning 4Ps Problems & Challenges Recommendations

Primary Research and Consumer Behavior findings

Primary Research- A snapshot Number of Consumers Methodology used Age of the respondents 62 Online & Direct interaction 8-42*

Key Findings

80% of the respondents do not stick to the same brand while buying
different products of stationery

60% of the respondents prefer bulk purchase of stationery Most of the respondents, especially school students ( 75% )discuss about
the various brands of stationery they use and among friends and take inputs Most important factor that influences the purchase decision

Number of school children

Number of college students

18
44
24%

Notebooks
21% 26%

31% 24%

Pens

62%

*Students parents were interviewed

Inputs were taken from Stationery store keepers, Sales staff in retail stores etc. Students from different geographiesMumbai, Bangalore, Kolkata and Lucknow were covered
Primary Research & Customer Behavior

12% 2%
Brand Brand Visibilty in Price Satisfaction Satisfaction the store from from previous use previous use *24% of the respondents consider brand as the most important factor while purchasing a notebook Visibilty in the store Price Brand Positioning 4Ps Problems & Challenges

Group

33

Situation Analysis

Segmentation and Target Markets

Recommendations

Preference for Classmate products vis--vis Others

We identified 4 major sub-categories in stationery products offered by Classmate Notebooks
No particular brand,

Pens

Class Mate,

31%
Navneet, 10%

60%

Classmates quality and aesthetics rated the best Higher preference among college students

Classmate , 7% Reynolds, 31% Cello, 45%

Cello Grip is registered in consumer minds 35% of the respondents not aware of Classmate pens Classmate has the lowest shelf space in most of the stores

Consumers primarily relate Classmate to notebooks

Pencils, Erasers & Sharpeners
Natraj has the maximum brand recall Among consumers who prefer Classmate those who buy mechanical pencils is the Natraj, highest proportion
45% Classmate, 5%

Fabercast ell, 17%

Colors/Crayons/Paints
Faber Castell, 36% Camlin, 12%

Camlins brand image built over a long Others, time. 2% Students parents relate to Camlin more on comparison with other brands Faber Classmate brand is really young in this Castell , category 33%

Classmate , 12%

Camlin, 52%
Group

33
Situation Analysis Primary Research & Customer Behavior Segmentation and Target Markets Brand Positioning 4Ps Problems & Challenges Recommendations

Segmentation
Tier I & Tier II Cities Age
Life Stage

0-6yrs
Pre School/Elementary School Goers New consumer Attracted by colorful exterior Functionality not a priority Single purchases Medium Usage Primarily Parents Wooden Pencils, notebooks, Erasers, Sharpener, Crayons

6-12yrs
Junior School Goers

13-23yrs
Secondary School/ College Students Dreamers Career oriented Noticing the opposite sex Functional & aesthetics important Bulk purchases Heavy Usage Self

24-49yrs
Working Professionals Low involvement consumers Functional Buyer Prefer premium brands Single purchases Medium to Light Usage Self

=50yrs
Old Adults/Retired Individuals Low Involvement purchasers Non experimental Highly Functional Sparse single purchase Light Usage Self Pens, notebooks

Behavioral & Usage Characteristics

High involvement purchasers Experimental High Peer influence Aesthetics important Hedonists Bulk purchases Heavy Usage Self; Parents Pencils, Pen, Erasers, Scale, Notebooks Sharpener, Geometry Case, Paints

Influencers; Purchasers

Stationery Products Sought

Pencils, Pens, Pens, Notebooks Erasers, Scale, especially spiral Notebooks bound Sharpeners, Geometry Case, Paints
4Ps Problems & Challenges

Group

33
Recommendations

Situation Analysis

Primary Research & Customer Behavior

Segmentation and Target Markets

Brand Positioning

Target Markets
ClassMates Target Segment 6-12yrs
Junior School Goers

13-23yrs
Secondary School and College students

High involvement purchasers Experimental High Peer influence Aesthetics important Hedonists Bulk purchases Heavy Usage

Dreamers Career oriented Noticing the opposite sex Functional & aesthetics important Bulk purchases Heavy Usage

Products superior in terms of quality Notebooks particularly well designed Emphasis on aesthetic appeal Social Awareness
Situation Analysis Primary Research & Customer Behavior Segmentation and Target Markets Brand Positioning 4Ps Problems & Challenges Recommendations

Group

33

How does the brand position itself?

Brand Ladder Points of Parity Range of products- Classmate has similar range of
products within each category such as notebooks Product prices -Classmate products prices are comparable to that of other brands Product Quality - Classmate product quality is similar to other brands Attribute
Comprehensi ve stationery portfolio

Functional benefit
Products for every student need

Emotional benefit
Excitement and fun of discovering and nurturing ones talents

Value
Confidence and uniqueness in every student

Points of Difference Variety of products- Classmate brings a wide range of

different products such as notebooks, pens etc unlike other stationery brands ITC brand- One of the most trusted brands in India Better aesthetics Classmate products have better aesthetic feel to them Socially responsible brand - ITC is a socially responsible brand. A part of the price I pay is used for a social cause
Situation Analysis Primary Research & Customer Behavior Segmentation and Target Markets

Positioning Statement
For all students Classmate is a complete stationery needs provider that helps bring out his/her unique creative potential Because it comprises of quality writing and painting instruments to suit all purposes.
4Ps Problems & Challenges

Group

33
Recommendations

Brand Positioning

Product- Mix
PRODUCT WIDTH

Classmate Notebooks
Stripes 190 x 155 mm Hard Co 190 x 155 mm Soft Cover 210 x 170 mm soft cover s x 170 mm 210 Hard Cover Drawing Books Graph Books Scrap Books Pocket Memo

Classmate Pens Pens

Gel Pens Fluid Ink Pens Ball Pens

Classmate Pencils
Rubber Tipped Pencil 2B Trilobe Pencils Carbon Black Pencils HB Jet Black pencils HB Bounded length pencils

Precision Instruments
Geometry Box Scales

LINE 3

Classmate Mechanical Pencils

Locus 0.5 mm Pencil Rite script 0.5mm pencil Trilobe 0.7mm pencil Clutch 0.7mm pencil Da Vinchi 0.7mm pencil Da Vinchi 0.5mm pencil Neat script 0.5mm pencil

LINE 5

LINE 1

Erasers & Sharpeners

Big Eraser Small Eraser Long Point Sharpener v Regular Sharpener
Group

LINE 2

LINE 4

LINE 6

33
4Ps Problems & Challenges Recommendations

Situation Analysis

Primary Research & Customer Behavior

Segmentation and Target Markets

Brand Positioning

Product levels

Potential Product: Stationery bundle Augmented Products: Graph Book, Scrap Books, Geometry Box Expected Products: Pen, Pencils

Classmate is currently at the

augmented product level. It is a Convenience and Purely Tangible Good It lies currently between Introduction and Growth Phase in its Product Life Cycle

Basic Product: Notebooks Core Benefit: Quality School stationery product

Group

33
Situation Analysis Primary Research & Customer Behavior Segmentation and Target Markets Brand Positioning 4Ps Problems & Challenges Recommendations

Place / Distribution Channel

Customers Dealers Distributors

C&F and Agency
Available at more than 75,000 stationary retail outlets across the country.

Regional Warehouse Procurement & Packaging

Sourced from small-

Distribution Strategy- Highlights The company follows an Intensive distribution model The channel design of the product is the Push strategy. The channel design is the Vertical Marketing Systems where the product is marketed under the classmate brand. The company is using 2 Level channel strategy. The packaging of the product gives the product a quality and in terms of look and feel
Group

scale manufacturers, Focus on delivery and quality capabilities. Paper and recycled board are sourced from ITCs Units, which use pulp sourced from renewable forestry
Situation Analysis Primary Research & Customer Behavior

33
Segmentation and Target Markets Brand Positioning 4Ps Problems & Challenges Recommendations

Promotion/Communication Strategy
Mission
To provide the consumers with quality stationary . The brand wishes to achieve its objective of quality through sustainable means which the core value of the brand.

Market
The target market is the school going children and college students in urban areas involving primarily tier-1 and tier 2 cities.

Message
The tagline of the brand because you are one of a kind signifies that brands stands for celebrating the uniqueness of every child. Its communication has an emotional appeal. The brand has a social message too wherein it contributes a portion of its sales for children in rural areas.

Media
Classmate uses TV advertising for promotions. The message is communicated by choosing real life characters like school children. Cross promotions through its notebooks for promotion of its other products like pens and pencils.

Metrics

Money
The firm has a sizeable promotion budget. Of the Rs 35-50 crore advertising budget, a lion's chunk is being spent on consumer connect.

The sale of notebooks along with other stationary items is an important metric to measure the effectiveness of promotions. Brand recall in terms of the repeat purchases is another important metric for measurement.

Group

33
4Ps Problems & Challenges Recommendations

Situation Analysis

Primary Research & Customer Behavior

Segmentation and Target Markets

Brand Positioning

Pricing

190 x 155 mm 190 x 155 mm 190 x 155 mm Hard Cover Soft Cover Soft Cover

Drawing 190 x 155 mm Books (60 Soft Cover pages)

Navneet Camlin Classmate Local Players

35-90 35-85 30-75 28-65

20-65 25-60 18-60 15-45

18-42 18-40 15-35 12-35

20-52 20-45 18-45 15-40

30 30 27 20

Classmate notebooks in general contribute a almost 90% of the revenues of the brand. In the notebooks category it faces direct competition with the brands like Navneet, which are large players in this market. In the notebook segment there are other small local and regional players which compete directly with classmate across different regions of the country. In comparison to its competitors Classmate Notebooks are priced slightly less as those of its competitors. Thus it follows a Discount Pricing. According to the Nine Price Quality Strategies Classmate follows a High Value strategy by providing high product quality and charging a medium price for its products.

Group

33
Situation Analysis Primary Research & Customer Behavior Segmentation and Target Markets Brand Positioning 4Ps Problems & Challenges Recommendations

Challenges faced by Classmate

Less recall for products apart from notebooks The product width being high does not attract enough attention to each and every product. Notebooks have the highest unaided recall. Local and regional players had a deep reach into the market. Anything sold at a convenient price and location gets picked up by the consumer. The challenge is category conversion from commodity to branded product by bringing in a brand proposition.

Notebooks - Widely
considered as a low involvement commodity category

Writing and art instruments Presence of established brands

Existing brands like Nataraj , Cello and Camlin have been in the market for long and so have a better brand recall

Seasonality of demand

The demand for notebooks peaks during the school reopening season and the demand for art material peaks during the summer vacations.

Lack of deep reach in all geographies

Situation Analysis

The current competitors have a very deep reach in certain geographies. So the challenge is to be quick, agile and reaching out to all geographies.
Segmentation and Target Markets
Brand Positioning 4Ps

Group

33

Primary Research & Customer Behavior

Problems & Challenges

Recommendations

Recommendations
P r o d u c t s
Marker Pens & Highlighters Premium Pens Most schools/ colleges switching to white boards Targeted at College students huge market To tap the gift market Majority of students surveyed indicated that they like Very few well known brands such as to highlight important lines while reading Parker School funStationery Kit Water Colours A bundle of 5 Pens, 5 Pencils, sketch pens, 5 Completes the product mix of this category erasers, 5 sharpners and a geometry box Large market- children aged 8-15 prefer along with 6 notebooks water Colours One package that will be bought every time a student needs fresh set of stationery Tackling Seasonality of demand Tie up with schools Majority of urban schools now offering notebooks and other stationery. Tie up with school chains will help to tap this market Steady revenues High Customer retention
Situation Analysis

Group

33
Recommendations

Primary Research & Customer Behavior

Segmentation and Target Markets

Brand Positioning

4Ps

Problems & Challenges

Recommendations
Brand Building Classmate WHIZ KID Contest Classmate Whiz-kid contest Competition for Students which will test knowledge, artistic skills Leaves lasting impression in the students minds Many success stories such as Bournvita Quiz,
*can be benchmarked

Classmate Facebook Page Almost every student above age 12 has a Facebook account.( Increasingly large number of students below 12 also have Facebook account) It will have daily GK quizzes, puzzles etc. with exciting prizes Very dynamic and happening page that will create a buzz among the students Separate Website for Classmate will also help in brand building

Reaching more Geographies

Classmate to rural India Leverage on ITCs strong rural presence through ITC-e-Choupals 70% of the Indian students are from rural areas
Group

33
Situation Analysis

Primary Research & Customer Behavior

Segmentation and Target Markets

Brand Positioning

4Ps

Problems & Challenges

Recommendations