NAME:S.JAYAGOKUL.

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EXPORT MARKETING

J-COMPONENT
PROJECT

Professor name: K.Vijayaraj

Name: S.Jayagokul
Reg no:19BCC0020

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SL PAGE
TABLE OF CONTENTS
No
NO

1 Export oriented product chosen- Pen 4

2 Product analysis-Types and features 5

3 Pen Industry analysis- Domestic market 8

4 Pen Industry analysis- Global market 12

5 Detailed view of three Indian Pen Companies 17

6 Export Marketing Mix strategy adopted - Cello 28

7 Export Marketing Mix strategy adopted - Lexi 37

8 Export Marketing Mix strategy adopted - Flair 44

9 Packaging and Labelling adopted - Cello 53

10 Packaging and Labelling adopted - Lexi 55

11 Packaging and Labelling adopted – Flair 57

12 Brand name, Trademark, Logo of Cello 59

13 Brand name, Trademark, Logo of Lexi 60

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14 Brand name, Trademark, Logo of Flair 61

15 Top Exporting Countries & Importing Countries 62

16 Top Exporting companies 65

17 Competitive advantage of India 66

18 Competitive advantage of foreign nations 67

19 Problems faced by Indian exporters & 69

Suggestions to overcome it
20 Review of Literature 74

21 Bibliography 77

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Export Oriented Product chosen

Pen
A pen is a common writing instrument used to apply ink to a
surface, usually paper, for writing or drawing. Historically, reed
pens, quill pens, and dip pens were used, with a nib dipped in
ink. Ruling pens allow precise adjustment of line width, and still
find a few specialized uses, but technical pens such as
the Rapidograph are more commonly used. Modern types
include ballpoint, rollerball, fountain and felt or ceramic tip pens.

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Product analysis -Types and features

1. Ballpoint Pens

There are different types of ballpoint

pens, a ballpoint pen has a tiny ball
at its writing point made of brass,
steel, or tungsten carbide. It
dispenses an oil based ink by
rotating said ballpoint. The ink dries
immediately after making contact
with the paper. Different types of
ballpoint pens vary in costs as well.
They’re usually available in both
expensive and inexpensive types.

2. Rollerball Pens
writing, but sometimes they share
more similarities than we know.
Rollerball pens are the same as a
ballpoint pen, but use water-based
liquid or gel liquid instead. The
water-based ink dries quicker and
the tip glides a lot more smoother
on a surface. These pens were
made to capture the convenience
of a ballpoint pen with the smooth
‘wet ink’ of a fountain pen.

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3. Fountain Pens

The tip of the fountain pen is

called a nib. There are different
types of fountain pens based on
ink, nibs and reservoirs. Fountain
pens use water-based inks
delivered to the nib that flows
from the reservoir through a feed.
This reservoir can be refillable or
disposable. A fountain pen can be
used with permanent or non-
permanent inks. Fountain pens are
also used for calligraphy and are
considered a type of calligraphy
pen.

4. Felt-tip Pens

Felt-tip pens, also known as

markers, have a porous tip. Inks
used for each marker depends on
their functionality. There are
different types of felt tips pens. A
marker meant for a white board or
sketch pens for kids, use non-
permanent ink. But markers meant
to mark large boxes with use
permanent ink. Markers with the
thinnest tips are used for drawing,
writing or sketching. Whereas
markers with the widest tips are
used to write on a whiteboards, etc.

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5. Gel Pens
A gel pen combines the properties
of oil-based ink and the
smoothness of a water-based ink.
There are different types of gel
pens, such as gel pens use water-
based inks and can be used for
writing and various illustrations.
Other examples could be the
colour of the ink used in gel pens,
due to them being used for
illustrations you have a wide range
of coloured gel pens to pick from.

6.Stylus pen A stylus (plural styli

or styluses) is a writing utensil or
a small tool for some other form
of marking or shaping, for
example, in pottery. It can also
be a computer accessory that is
used to assist in navigating or
providing more precision when
using touchscreens. It usually
refers to a narrow elongated staff,
similar to a modern ballpoint
pen. Unlike other pens, a stylus
pen doesn't contain any ink and
the material used to make styli
varies as well as their uses.

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Pen Industry Analysis –

Domestic Market Scenario
The market for Pen in India is estimated at 1600 to
2400 million pieces a year. The total market for pen is
estimated at Rs 22 billion in value and is growing at around 8 to 10%
annually. The informal sector's contribution to the market is placed at
over Rs 6.6 billion or 30% of the total market by value and 65% by
quantum. While by numbers the low-end market accounts for 90%,
the premium and top-end segment accounts for less than a percent.
The balance is accounted for by the moderately priced mid-priced
Products.
The Pen sector today has become more of thinking process of new fads
and development as this is considered to be the only key to its progress.
A sector which was once a prerogative of a few has today become a
highly cluttered market. Even though in today’s advanced age where
internet and cell phones dominate the market still there is no substitute
for pen. Where every other industry has grown this industry has also not
restricted to growth. This industry is growing at 8% to 10% p.a.

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Major Indian players in the ballpoint pen market are Cello, Lexi,
Reynolds, Luxor, Flair, Montex, Todays, Linc and so on. Out of these,
Cello, Lexi and Reynolds have a major share of the market. Cello has a
wide range of pens that cater to the needs of all types of consumers.
Within Cello, Cello Gripper is the one that sells the most. Other ones
are Maxwriter. Technotip, Pinpoint, Finegrip, Trica, etc.. Lexi 5 is the
bestselling brand from Lexi. Its Rs 5/- MRP makes it one of the most
desired brands among the consumers. Reynolds, too, has a substantial
share of the market. Reynolds 045, 040, Jetter are the ones that are
doing well for Reynolds, with 045 selling the most.

An average monthly sale of a retailer in Mumbai ranges between Rs

1 – Rs 5000. However, it varies from A Class to C Class outlets. Major
BTL promotions in theses outlets include posters, dispensers, danglers,
wobblers, banners, dealer boards etc.. Out of the total pens sold in an
outlet, 75% are of blue ink and 23% are of black ink. Moreover, fine
impression constitutes 66% of the market and bold impression
constitutes 34%.

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Pen is a commodity product. Hence, price becomes an important
differentiator. Price is an important attribute that influences buying
decision. Consumers too, rank price as second most important
attribute when choosing a pen, the first being colour of the ink. Third
and fourth places go to brand name and looks respectively. One can
easily infer that brand loyalty is low in this category. This is also
supported by the fact that majority of the consumers buy another pen
in case their desired brand is not available at the retailer. Also,
majority of the consumers do not remember any communication of
the brand they use. This shows that there is a very low consumer
involvement. Thus, ATL promotion is not as effective. Impulse
purchase is high in this category. Thus, BTL promotion should be
more focused on.

Brand presence at the retail counter too, is imperative. Availability

and visibility at the counter is the key. Retailer push decides the fate of
many brands. Hence, trade promotion occupies a very important
position. Schemes like 1 unit free on purchasing 10 units are common.
Other things that are offered to retailers include quantity purchase
schemes, free movie tickets etc.. Apart from this, some brands like
Cello give margins as high as 40% on MRP to the retailers
The writing instrument industry comprise of seven major players in the
organized sector and a fragmented but sizeable unorganized sector. The
total domestic industry is about rs.3000 crores with the unorganized
sector constituting 20%. The players are well entrenched in the business
over many years and most of them have the best facilities to cater to the
plastic pen industry.
The writing instrument industry has been estimated at around rs. 2100
crores. The organized sector, today would account for 75% of the overall
writing instrument industry. The industry has been witnessing an annual
growth rate of around 7 -8%.
According to the ACNielsen Retail Audit, ball pens forms the biggest
chunk of the pen market in India and accounts for 72 percent of the total
pen market followed by gel pen at 28 percent . The brand leaders in this
market are Cello, GM pens and Jigneshwar.

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%of pen market

28% Ball pen

Gel pen
72%

Out of the total pens sold Cello & Lexi are the ones that are sold
the most. Cello occupies about 33.7% and Lexi occupies about
28.3% of the total share. The major strength of Cello is its wide
product range & that of Lexi is its pricing. The others that are
doing well are Reynolds, Montex and Flair occupying about 9%,
8% and 6% respectively.

Sales
others
flair cello

montex
reynolds

lexi
cello lexi reynolds montex flair others

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Pen Industry Analysis –

Global Market Scenario
With the opening up of the economy, the top, and not only premium
products, entered the market while high priced ones are being sold in small,
unassuming stores. You think of any global brand and its here. These
include designer and status symbol pens, be it Parker, Mont Blanc, Cartier .
The global market for pen is estimated at Rs 50000 crores per annum.
However, the Indian market is much lower in comparison. The market for
pen in India is estimated at 1200 million to 1400million pieces a year. By
value, the total market
for pen is estimated at
Rs.22 bn and is growing
at 8% to 10% annually.
Thus, India’s share is
just 4% of the global
market. In comparison,
China’s share is around
10%. The Indian pen
manufacturers are
exporting part of their
output. The unorganised
sector’s contribution to
the market is placed at
Rs. 5 bn or 25% of the
total market by value.
The contribution of the
organized market is Rs
1500 crores or 75% of
the total market.

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The global market for pens industry estimated at US$15.9 billion in the
year 2020, is projected to reach a revised size of US$20.6 billion by 2027,
growing at a CAGR of 3.7% over the analysis period 2020-2027. Ballpoint
& gel pens, one of the segments analyzed in the report, is projected to
record a 5.7% CAGR and reach US$8.5 billion by the end of the analysis
period. After an early analysis of the business implications of the pandemic
and its induced economic crisis, growth in the roller pens segment is
readjusted to a revised 4.2% CAGR for the next 7-year period

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The ball pens market is about 62% of the total writing instruments market.
Out of this 75% is organized and 25% is unorganized. The growth rates
reached the peak in 1997-2001. The growth rates during this period were
about 10.8% but since then the growth rates have declined to about 8%

About 60% of the revenues of the pen industry come from pens
with a price range of up to Rs.15. A small percentage of pens are priced
in the range of Rs.100 to Rs. 300 and miniscule of the market is
contributed by the super-premium segment in which the price tag
goes to as high as Rs. 100000 while the market for lower price range
(up to Rs. 15) is growing at a rate of 8% to 10% annually. There is,
nevertheless, in the recent period a price up gradation in the evidence
at the low end. As the market is developing in the new ambience, the
products are getting upgraded. Figure 1.1 shows Market growth rates.

The market is basically segmented into those required by

● Scholastic (primary & secondary school going)
● Adolescent (graduate, post graduate , professional courses)
● Frequent users (in offices, commercial and public establishments)
● Occasional users (like a multitude of housewives and literate
manual workers)
● Professional
While taking into account these segments, India’s literacy rate
should be kept at the back of one’s mind. In India’s case many of the

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above segments are too small to be catered to. The usage norms differ
from function to function; even as it does from one person to another,
and certainly from one segment to another. The students account for
55 to 60% of the off take followed by executives at 20-25% and other
multilevel users accounting for 15-20% of the market.

The use of computers and advanced telecommunication equipment

is reducing the usage of writing instruments. As a consequence, while
rising literacy levels and economic activity (with a high growth rate)
should increase the demand phenomenally, the increase will be limited
and will remain moderate.
In the global Mechanical Pens segment, USA, Canada, Japan, China and
Europe will drive the 2.5% CAGR estimated for this segment. These
regional markets accounting for a combined market size of US$1.2 Billion
in the year 2020 will reach a projected size of US$1.4 Billion by the close
of the analysis period. China will remain among the fastest growing in this
cluster of regional markets. Led by countries such as Australia, India, and
South Korea, the market in Asia-Pacific is forecast to reach US$2.9 Billion
by the year 2027, while Latin America will expand at a 3.8% CAGR
through the analysis period.

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Detailed view of three Indian Pen

Companies
1.Cello Writings Ltd
Founded in 1995, Cello® Pens is India's most recognized stationery brand
and the leading manufacturer and distributor of writing instruments.
Cello® started its journey in 1995 by manufacturing & marketing wide range
of classic ball pens with imported tips and German inks. Focusing on
innovation, high quality pens and leading edge technologies, Cello soon
became India’s most loved writing instruments brand over the years. In
December, 2015, the French stationary major BIC® acquired 100 percent
ownership in Cello® writing and the company was renamed as "BIC Cello
(India)".

Cello has expanded its

magnitude to stationery
products like:

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Cello® pens are the No. 1 choice of the consumers in India, selling over 5
million pens every day! Cello® also exports a broad portfolio of products to
North America Europe, Africa, Middle East and Asia.

We, at BIC Cello, focus on developing innovative new products and ink flow
systems, delivering significant value to the writing experience of the
customers. We have consistently introduced modern technology &
maintained International standards. We take pride in being a leader in
introducing contemporary products to Indian consumers. We have a well-
trained team of passionate employees, a rigorous quality control system. Our
Research & Development team focuses on continuous improvement to
ensure that we provide an exclusive writing experience. A robust and
growing distribution network makes our products accessible across
demographics and geographies. Empowered by our vision and values, we
work to make a difference in the lives of all our stakeholders.

Our manufacturing expertise, consumer requirements, constant research on

tips and inks and offering of broad range of writing instruments makes the
company the market leader in the category.

Over the years, BIC Cello has expanded its product portfolio offering world-
class products in stationery categories like permanent markers, white board
markers, colour markers, mechanical pencils, roller pens, fountain pens &
office & school stationery products.

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The French stationery giant, BIC® is a world leader in stationery, lighters

and shavers. With an eye on India as the 2nd most populous country in the
world with fast improving literacy, education levels and government
reforms driving economic growth, BIC® decided to invest in India by
acquiring 40% stake in Cello® Pens. Writing instruments being ancillary
aspect of education, has made India one of the biggest markets with great
potential for pen manufacturers. In Dec 2015, BIC acquired 100% equity
interest in Cello® writing group companies. For more than 60 years,
BIC® has honored the tradition of providing simple yet high-quality,
inventive yet reliable choices for everyone, everywhere, every time and
BIC Cello will continue to adhere to the same values.

Our Philosophy
Honor the past, Invent the future
We not only believe in securing the
company’s position and honoring
the achievements but also in
constantly striving to advance in
the quality product for affordable
prices. We aims to act as an enabler
of education, penetrating rural areas and increasing the number of aspirants.

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2.Lexi Pens Pvt. Ltd
Lexi Pens is an internationally acclaimed Manufacturer & Exporter of High
Quality precision Tip Plastic Ball Pens, Plastic Gel Pens, Metal Pens and
Refills SINCE 1997.Theey manufacture about 1 million pens a day and Sell
about 365 million pens annually Worldwide. They hold the recognition for
being India's Highest Selling single model pen ( Lexi 5) .

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Lexi Pens are best known and appreciated worldwide for their Originality
of Designs, Quality, Affordability and their Ease of Writing.

Lexi is considered one of the Most Preferred and Reliable pen brands in
India amongst prevailing 4000 products. They have built a brand in a highly
competitive Indian market within a very short span of time .

They have undertaken special efforts to provide a unique packaging and

"Original Quality Designs" to our partners worldwide. Lexi is valued due to
our readiness to understand and deliver, cater to specific customer needs,
consistency in supply and reliable after sales services.

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3. Flair Writing Industries Limited
Flair Writing Industries Limited, a leading manufacturer and exporter of
writing instruments from India. Our flagship brand “Flair” was introduced
in 1976 commenced its success story 5 decades back with a range of metal
pens under the guidance of Mr. Khubilal Jugraj Rathod.

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Flair has expanded its business into various territories by the efforts of Mr.
Vimalchand Jugraj Rathod, Managing Director and head of financial
department of our company, who has also served a successful tenure as
Chairman of Plastics Export Promotion Council, India between 2003 and
2005.

Commitment to quality & innovation are Flair's pillar-stones. Thus, today

we are exporting to more than 80 countries across the globe. Flair
specializes in OEM business as well, with its clientele including major
global brands.

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Flair reaches to the customers through our nationwide sales team of over
800 sales and marketing employees, more than 100 super-stockist, 7,000+
distributors & approximately 2,50,000 wholesalers and retailers across
India helping Flair to achieve a strong Pan-India presence. Besides
traditional distribution channels, Flair products are also sold through
modern retail outlets such as supermarkets, as well as e-commerce. We also
have around 50 international distributors catering to more than 80 countries
in the world.

Flair has brought international brands to India, namely Pierre Cardin

(Paris), Hauser (Germany), Rudi Kellner & also relaunched Reynolds in
India, with manufacturing and exclusively distributing certain Reynolds
pens in India. Flair is a distributor of “ZIG” (Japan) pens in India.

Flair Writing Industries Limited has its registered office in Mumbai & its
pens and other products are manufactured under strict quality control at 7
manufacturing plants in Daman(Union territory of Daman and Diu),
Naigaon (near Mumbai), Dehradun (Uttarakhand) & Valsad (Gujarat)
which uses technologies and advanced quality control systems to design &
create pens for today’s demanding market. Our six fully-operational
manufacturing plants are ISO 9001:2015 certified and ISO 14001:2015
certified.

These factories are equipped with hi-tech assembly machines, advanced tip
machines, Packing machines, multi-cavity moulds and injection-moulding
machines which are designed and fabricated in India, China, Germany,
South Korea, Spain and Switzerland.

The product range consists of over 650 products which include Metal Pens,
Ball Pens, Gel Pens Fountain Pens, Roller Pens, Refills and Stationery
products such as Correction Pens, Markers, Highlighters, Mechanical
Pencils, Gel Crayons & Calculators.

Flair believes in giving back to the community that has helped us grow.
This approach of mutual growth has led us to contribute to our core value.

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Flair pursues to be one of the top manufacturers of writing instruments. -

Our new plant in Valsad is part operational since July 2018 and partly
under construction and was inaugurated by the Hon. Chief Minister of
Gujarat. The new Valsad facility, once fully operational will help Flair
attain a cumulative capacity across all its manufacturing units to around 2
billions pens annually And this will continue as Flair pursues to bring bold,
innovative, and quality writing instruments to every corner of the world.

They extend fantastic support to our institutional and Corporate Clients.

They have innovative concepts to suit every specific need. They assure you,
prompt and reliable service at highly economical price. They are
specialized in printing logo & other text matter on clip, barrel or packaging.
All FLAIR writing instruments are equipped with our own refills which
ensures smooth writing. Flair refills whether Jumbo, Cardinal or Roller type
are easily available thus you are never deprived of quality writing as
FLAIR is always there to serve you.

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Export Marketing Mix strategy adopted -
Cello
1.Product
The cello has a broad portfolio of excellent products. The brand has a great
reputation in both national and international market for offering a wide range
of products, foreign technology and state-of-art components. Cello pens are
smear free and free smooth while writing. Latest technology, well-trained
employees, quality raw materials and continuous improvement make these
pens the best in business. Its product portfolio includes-

• Ball pen like Butter Flow, Executive, Papersoft, Crown

• Metal pen like Mezzo, Radiance, Silvertip
• Gel pen like Aqua, Gelo, Sports
• Markers Hi-Lighters like Evermark, White Mate
• Fountain pen like Disney Fountain Liqui
• Exam series like Max writer, Techno Tip, Pinpoint
• Signature series like Advance, Writer, Victor
• Retractable like Voyager, Retro, Sapphire
• Gift set like Icon Gift Set , Genius & Power Gift Set
• Accessories like Refills, Lead Box, Marker Ink

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2.Pricing-
Brand Cello has managed to satisfy its customers in every nook and corner
of India. It is acknowledged as a superior brand in both rural and urban
markets. It also has corporate houses as its loyal customers. This has been
possible because of first-rate products at reasonable prices. The company
has kept a very reasonable pricing policy for its products. It has put its onus
on higher sales figures and for this, they have cut down the profit margin.
Higher the sales higher the revenues earned have been
their pricing strategy.
• In pricing strategy we have Monopolistic Competition i.e. there are
many sellers and buyers already in the market in same category of
pens. Thus we have decided to use Market Penetration Pricing
Strategy where we have kept the price lower as compared to already
existing price.
• The production cost of a pen is 20 cents for 0.5mm and hence the cost
price including all above costing is 73 cents. We have kept the selling
price as $1 in foreign markets.

• Markup % = {(Selling Price – Cost Price)/Selling Price} * 100

Markup % = {(100 cents – 73 cents)/100 cents} * 100

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Markup % for Cello pens = 27%
• We have kept the profit high so that we can tackle the risks involved
at later stage and also to cope up with the unexpected costs which can
occur because our product in international market.

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3.Physical distribution-
Cello pen is one of the largest distributor and manufacturers of writing
instrument in India and also in the world. It is also the biggest supplier and
exporter of products like refills, gel pens and ball pens. The brand started
its operations with a very low-profile but with time has grown leaps and
bounds to become the indisputable leader. It has a
widespread distribution network both at domestic and international levels.
Its products are exported to countries like Far East, Middle East, Gulf,
Europe and Africa. A clip from export data showing transportation mode
adopted , respective ports of exporting and importing country, etc while
physical distribution:

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During its beginning years, the company produced nearly twenty lac pens
every month and from there it has now expanded to nearly five hundred lac
pen every month. Factory of Cello pens is spread over 1, 00,000 square feet
area and has nearly three thousand workers working under it. Its marketing
network includes 1900 distributors, 40 super-stockiest and a capable sales
team comprising of three hundred persons who are professionally trained.
The company has two manufacturing plants in Haridwar and Daman in
India. Cello pens are easily accessible from a small shop to the prestigious
showroom.

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4.Promotion-
From its inception, Cello has realised the power of good promotional activity.
It has marketed its products through various advertising options. Inspired
thinking has helped the brand in creating some of its best commercials that
are explanatory and self-defining. Ads are run in newspaper and magazines
highlighting its best features. Its campaigns have emphasised quite
categorically on its image of the uncompromising quality product.

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Commercials are aired on television showing customer satisfaction. In one
of the ads, children are shown to be working at a better speed with these pens
during exam times. Insightful marketing has made this brand an all-time
favourite with younger generation and professionals alike.

Public releases

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Export Marketing Mix strategy adopted –
Lexi
1.Product-
Lexi Pens have been in existence for almost two decades and is known for
its innovative products that are testimony to the company’s commitment
towards quality. Core competence has made the brand ace manufacturer
and producer of a complete range of writing materials. It is known for
selling highest single brand pens. Product portfolio of lexi Pens mainly
includes the following-

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2.Pricing-
• Plastic ball pens and gel pens of Lexi international are done on basis
of market penetration strategy, thus the price are kept as low as
possible like that of cello.
➢ Lexi sharp, Lexi QT, Lexi IQ Lexi 5
➢ Lexi G, Lexi G7 ( Rs 5– Rs 10)
• In case of metal pens , the price is kept higher compared to plastic
pens ranging from Rs.50 to 1000 and more than that sometimes.
➢ LP 001, LP 002, LP 003….., LP 006( Rs 50– Rs 750)
• Opaque & Corporate promotional pens of lexi international also carry
the same
strategy which
is done in case
of metal pens
as the demand
of opaque and
corporate
promotional
pens are less
compared to
plastic pens and
their
manufacturing
cost is high
compared to
first two
categories.

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3.Physical distribution-
A clip from export data showing transportation mode adopted , respective
ports of exporting country and destination , etc. while physical distribution:

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Lexi has 27 sales teams and 50 distributor companies across
the globe

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4.Promotion-

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Advertisements and campaign organised by lexi as promotional tool

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Export Marketing Mix strategy adopted -
Flair
1.Product-
Flair Pens have been in existence for more than four decades and is known
for its innovative products that are testimony to the company’s commitment
towards quality. Core competence has made the brand ace manufacturer and
producer of a complete range of writing materials. It is known for its
proficiency in QEM Business. Product kitty of Flair Pens includes the
following-

• Plastic Ball pens- Includes Sunny Grippo, Bliss, Sunny DX,

Magic, Razor Point and Spring
• Metal Ball Pens- Includes Long Champ, Mighty,
Addiction, Prestige and Real Magic
• Gel Pens- Includes Concorde, Osmium, Monitor, Writo-Meter and
Hydra
• Fountain Pens
• Roller Pen
• Refills
• Gift Sets- Includes P-11: Exclusive Box, P-16: Convex 2Pcs Box
and P-13: Monogram Box
• Water-based writing materials including correction pens,
permanent markers, hi-lighters and markers

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2.Pricing-
Diverse and quality products have taken the brand Flair Pens to unimaginable
heights. One other important factor for its meteoric rise is its pricing policies.
Company realises the potential of penetrating in both urban and rural sectors
and realises that it is possible only through prices which seem reasonable to
customers.

Moreover, there are lots of writing instruments easily available in the market.
In order to compete with them, it has to keep a competitive pricing policy
which will help in further penetration as well as successfully maintaining the
loyalty of its customers. Flair Pens has adopted a reasonable pricing policy
that enables good quality products at affordable rates. This allows in large
volumes and greater profit margins.

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3.Physical distribution-
Flair Pens has an international presence that has extended to several
countries in the world. Its headquarters base is in Mumbai in India. Currently,
its products are being exported to nearly seventy-five countries in the global
market. Flair has tie-ups and joint ventures with pioneers of this industry and
it along with its three brands Rudi Kellner, Landmark and Flair are set to
conquer a large part of the consumer market. Flair has a huge domestic
market in India that is spread to several parts of both urban and rural sector.
Its operations are diversified in Indian Sub-continent with manufacturing
plants located mostly in Western Region.

These include Surat, Dehradun, Daman and Mumbai. Its production capacity
is three million units daily. Flair has a strong distribution network to provide
easy accessibility of its products. Brand follows an intensive distribution
policy and its products are available in every corner shop, pop and mom
stores, discount stores, supermarkets and convenient stores. A clip from
export data showing transportation mode adopted, respective ports of
exporting country and destination, etc. while physical distribution:

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4.Promotion-
Flair Pens is recognised as one of the leading manufacturers in
consumer markets and to maintain its position brand has adopted
several marketing plans. It realises the impact of a good strategy to increase
visibility and has gravitated towards making something unique and special
to make a mark on the mindset of consumers. Innovative commercials and
qualitative ad campaigns have led Flair Pens to create positive brand
awareness.

It has utilised several advertising mediums like electronic, print and social
media to make its products known. Currently, its ads are aired on
different channels of television, radio, on newspapers, magazines and even
on billboards. Hrithik Roshan, famous Indian actor is its brand
ambassador and can be seen in its commercials.

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Packaging and Labelling adopted - Cello

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Packaging and Labelling adopted - Lexi

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Packaging and Labelling adopted – Flair

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Brand name, Trademark, Logo of Cello

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Brand name, Trademark, Logo of Lexi

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Brand name, Trademark, Logo of Flair

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Top Exporting Countries & Importing countries

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Top Exporting Countries

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Competitive Advantages of foreign nations
against India

• Developing more differentiated pen products and

creating strong brand franchises, German competitors
have begun to gain ground.
• Innovations in process technology, pioneering just-in-
time production and a host of other quality and
productivity practices. These process improvements led
to better product quality, better repair records, and
better customer-satisfaction ratings by Japan.
• presence of strong local rivals is a final, and powerful,
stimulus to the creation and persistence of competitive
advantage
• Adoption of next generation technologies in the
manufacturing process: State-of-the-art IT systems,
Mobile e-commerce and omni-channel retailing
• High non-labour cost and less labour cost,,Operational
excellence along the value chain and creating new
revenue streams by adding services
• Superior digital platforms and omni-channel
distribution.The initial phase of digitization—including
the introduction of online banking and mobile apps—
brought greater convenience to customers.

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Competitive Advantage of India
India today is considered to be one of the major forces in the global
economic market. Though India is a developing economy, its
economy has a major impact on global trading. The majority of the
world's leading developed nations are keen to have or expand their
ties with India. This is mainly because in the current scenario of
globalization India is seen as a wonderland for investments.
Thanks to its huge market base and fast-developing spending habits
of middle-class Indians, India is a preferred destination for
investors over other major countries, including China, because
India has a favorable business environment, a good administrative
setup, attractive foreign policies, and an available, abundant skilled
workforce as well as provides attractive incentives to investors.

India scores over other places in terms of being an ideal destination

for investments mainly due to its vibrant democratic setup, which
is aptly underpinned by a broad legal framework and independent
judicial system. Apart from these factors, the presence of a vast
network of bank branches, financial institutions, and a well-
organized capital market contribute to making India a preferred
destination over other places by foreign investors.

India boasts a vast network of technical and management

institutions that are of the highest international standards. These
institutions develop excellent human resources. India also has a
strong base of an English-speaking population for business
purposes. The strategic location of the country in the context of the
third world market in the rapidly growing southeastern Asian
markets along with a supportive infrastructure provides India with
a competitive advantage over other countries for attracting foreign
investments.

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The government of India has taken several initiatives to attract
foreign investments in India's diverse sectors. It has announced a
number of attractive schemes and policies from time to time to lure
investments. The individual ministries of different industries have
made special attempts to ease the rules and regulations related to
foreign investment in the industry. Apart from formulating
attractive policies for investors the ministry also provides guidance
to the investors with regards to the infrastructure availability, the
market structure, and so on. The Indian government also allows
foreigners to make direct investments in the country's firms by way
of acquiring share and debentures. This favorable government
initiative gives India an edge over other countries for investments.

It is often speculated that though India is a developing country,

why are foreign investors keen to invest in India and employ the
services of Indians? Do the investors lack knowledge about India's
poverty and social issues or does India paint a false picture about
itself in the world market? The truth is neither the investors are
ignorant about the India's social issues nor does India have a false
image. The main reason for foreigners to invest in India more than
any other country is that India has the knack to produce quality
goods and services and provide top-class services at a lower cost.

Labour costs in India rise every year and in certain fields, such as
software, employees feel they will not get any further increment on
their salaries. This plays a crucial role in protecting the cost
benefits of foreign investors and attracts foreign firms to invest in
India.Today, there is hardly any big company in the world who
does not have their presence in India in one or the other way.
Several companies outsource their accounts and BPO operations to
India. This is mainly because regardless of the domestic issues,
these companies get excellent service and value for the money they
invested.

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Problems Faced By Indian Pen Exporters
and Suggestions to overcome it
Poor Quality Image:

Made in India pen product line does not enjoy a good reputation in markets
abroad sometimes. Rather it is considered to be a sign of poor quality
compared to other global brands in several foreign markets. The pens
manufactured in Japan, Korea and China are frequently quoted abroad as
examples of dependable quality. Despite the measures taken under the
Exports (Quality Control and Inspection) Act and other laws, our exports
continue to suffer because of the quality problem from unorganised sector.
On several occasions, carelessness and lack of commitment on the part of
pen exporters are also responsible. There is a general impression that a
proper export culture is lacking in India. So, in order to avoid these
impression government of India has to stop act of dumping if any, from the
part of pen industry or companies in foreign market as the act of dumping
may lead to false impression which creates thoughts in foreign customers
that pen is of low quality leading to decrease in sales and at last exports.

High Costs:

In India, the rate of interest on export finance is much higher as compared

to other countries. According to trade circles, interest payments alone
constitute nearly 15 per cent of the cost of production in India. In addition,
there are also the bank charges in India, which work out to be as high as 3
per cent compared to 1 per cent in countries like Japan and Republic of
Korea. Similarly, even the port charges in India are three to four times

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higher than those of Colombo, Hong Kong, Singapore and South Korea. So,
it becomes difficult for mainly unorganised sector part of pen industry and
sometimes for big companies in the same industry.

Technological factors and low productivity also contribute to high cost of

production in India. Further, Indian pen exporters are also deprived of
advantages of the economics of scale and do not utilize their ability of bulk
supplies due to lack of finance and other reasons. Productivity is thus low
leading to higher costs. Manufacturing performance is directly related to
use of technology and management techniques. So, the government of India
has to provide technological support to pen companies if required to
increase the productivity level and Incentives for exports in case of non-
availability of economies of scale.

Unreliability:

As pointed out above the pens imported from India are considered to be of
poor quality. Besides quality, Indian pen exporters are also looked upon as
unreliable on many counts such as going back on a contract or refusing to
fulfill it on its original terms. A major lacuna is also the inability to provide
prompt after-sales service at all foreign markets. Exporters from countries
like Japan, South Korea and Taiwan normally replace a defective
consignment free of cost and without taking much time.

It is the prompt response or after-sales service which projects image of the

supplying country for generating additional business. In sharp contrast,
within the framework of our policies and procedural formalities a quick
response for replacing a damaged or defective consignment or for providing

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a prompt after-sales service more often than not remains an illusive idea for
Indian pen exporters. This unprofessional reluctance to give good and
timely service after-sales ultimately results in their losing all future
business. So, there is a need to set proper rules and updating the same
constantly for all the exporting pen companies regarding after-sale services
and also specifying the duty of the intermediary or distributor in the foreign
market to provide the data regarding the requirement of after-sale services
by the customers in respective foreign markets.

Infrastructure Bottlenecks:

In India, infrastructure deficiencies such as energy shortages, inadequate

and unreliable transport and communication facilities have so far hindered
growth of exports. Power shortages and breakdowns are so common that
they often disrupt production schedules, increase costs and badly affect
timely shipments. So, Improving the transportation system, including the
expansion and modernization of the port facilities, rationalization of their
charges, improving the procedural, etc., is absolutely necessary if the
country is serious about development of its export sector.

Inadequacy of Trade Information System:

Efficient and time bound trade information system is a basic need for
success in today’s dynamic export business. Electronic commerce including
Electronic Data Interchanges (EDI) and Internet play a very crucial role in
the world trade at present. The unparalleled spreading out of Internet, has
taken the world into the Age of information Superhighway. It has now
become very easy to obtain any kind of information in a matter of seconds.

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However, in India there are still no proper facilitates of communication and
therefore it is not possible to rely on Internet for getting up to date trade
information. Even if the facilities are available, they are very costly for the
pen companies and mainly for unorganized small but large in number.
Some of the developed countries insist that they would not like to trade
with a country whose exporters/importers cannot even complete necessary
formalities through the Electronic Data Interchange. So, this problem
affects the online way of promoting the pens by Indian pen manufacturing
and exporting countries. Therefore, there is a need for mitigating the errors
and structural problems in Trade information system by the government of
India which helps in smooth flow of trade information from exporter and
importer of the same that is from importer and exporter of pens as of my
project.

Supply Problems:

A very severe shortcoming of the Indian export sector(including pen

industry) is its inability to ensure continuous and smooth supply in
sufficient quantities relating to many pens as per classifications or types or
characteristics. The main problem is that much of the exporting is the result
of the lingering approach and not any deliberate effort of producing for the
export. The predisposition is for exporting what is produced rather than
producing for export. Such an attitude still continues to characterize the
export behaviour and has proved extremely harmful for the export business.

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Uncertain Policies:

A basic defect of India’s trade policy has been the uncertainty about future
policies, incentive schemes, etc. To free the exporters in all types of
industry from anxiety and ensure stability in this direction, the Export-
Import (EXIM) Policy is given a five-year span. However, even then every
year a large number of amendments are made in the EXIM Policy. So, the
EXIM policy need to be changed as frequently as per the changing export
sector and there should be reliability on the same.

Procedural Complexities and Institutional Rigidities:

Indian pen companies has lost exports worth hundreds of crores of rupees
due to the serious problem of interdepartmental coordination. It is observed
that most of the existing procedural and documentation formalities
prescribed by different authorities have been defined to suit their own
individual requirements with no regard to the adverse consequences they
can lead to on the total export activity.When the country is trying its utmost
to boost the exports, it is absolutely necessary that the documentation and
procedural formalities related to exports are streamlined, simplified and
kept to bare minimum. This way they will not become obstacles in the path
of growth of country’s export business. So, decreasing the number of export
related documents for exporting pen companies or just making it simple by
combining many documents into fewer documents will reduce the time in
exporting and also in procurement of export finance by pen companies.

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Review of literature
1.BIC ball pen case study(Author: Zhehao Jiang)
This Article mainly states a ‘reverse’ Environmental life cycle
assessment on the standard BIC ballpoint pen and some individual
recommendations on changes in each period of life cycle in order to
minimize its environmental impact without compromising on its function or
reliability. To summarize, the life cycle of BIC ballpoint pen including
following five stages: Design -Manufacturing -Distribution -Using -The
end of life cycle respectively. It also includes the need for green marketing
that is , Eco-optimized on distribution process in packaging and shipping of
pens from industry point of view.

2. Strategies of innovation in an ancient business: cases of

the fountain pen industry (Author: Marcos Ferasso)

This Article analyses the different innovation strategies adopted by the

fountain pen industry to survive to the attack of ballpoint pen spread. To
meet this objective, case studies of Waterman, Montblanc and Parker
companies are discussed. The data, collected from secondary sources,
indicate that the fountain pen industry had a great reduction in their sales
and later stabilised at a lower level by stressing their positioning at the
luxury goods market, but also adopting and transforming the new ballpoint
technology. The analysis of this cases leads to the conclusion that the
ballpoint pen is truly a good example of Christensen’s disruptive
technology because it contains all of Schumpeter’s types of innovation.

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3. Industry Analysis of the Stationary Sector in India: A
Market Acceptance Study (Author:Sunny Oswal)

The findings of this research article are aimed at providing a thorough

insight into the stationary market in India which can be used by various
manufacturers/brands rather than establishing a relationship amongst
variables. The data and findings with respect to the consumer surveys,
retailer surveys and expert opinions are tabulated in form of charts and
graphs.
The findings of the research throw light on how various brands have
garnered their share in a cluttered market, consumer’s purchase behavior to
marketing stimuli, attributes adopted by marketer’s to get their share etc.
The findings stress upon the fact that there is enough acceptance for new
players in this market provided they do a correct Market Mapping. This
paper thrives on a massive primary data based market mapping done for the
Indian market.

4. The Digital Revolution Does Not Affect The Spirit Of

The Writing Instrument (Author:Vinod Krishna)

The articles speaks digital revolution and its impact on pen industry. We
are in the age of digital transformation, where products can be rendered
obsolete... or where consumer preferences change, but the same calls for
some new features, design or technology to bring about changes in the
product, styling and attributes. One hears some talk that the writing
instruments industry would be put on the back foot.
A trend is rising in the writing instrument market where the digitalization
was thought of as a threat and industry sources feared this would negatively
impact writing instrument volumes and endanger the existence of pens.

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5. Writing Instrument Industry in India

The writing instrument industry in India is huge; and it is estimated at about

Rs 2,600 crores. Out of this, the organized sector is worth Rs 2,000 crores.
Despite an increase in the usage of computers and smart phones, people still
continue to use pen and paper.

Experts predict that the writing instrument industry will survive for years
because of the technological advancements in this sector. There are
technological improvements in the raw materials, ink and metal used in the
making of writing instruments, which increase the user friendliness of the
products. And this is the reason why consumers still use pens and pencils in
this technological era.

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