A STUDY OF THE CONSUMER BUYING BEHAVIOR OF

ITC CLASSMATE PEN

By
SUJAY VIKRAM SINGH
Roll No.:138159622

Dissertation Submitted to the National Council for Hotel

Management & Catering
Technology(NCHMCT)& Indira
Gandhi Open University(IGNOU),NEW DELHI

In partial fulfillment of the requirement for the

degree of
M.Sc. in Hospitality Administration
(Specialization: Sales & Marketing)
(Academic session 2013-2015)

Under the Guidance of

Mr. N.L. Rastogi
(Co-ordinator M.Sc HA Program)

INTRODUCTION
BACKGROUND
The study of consumer behavior implies how & why a
particular consumer reacts to the decisions of producers.
It is the study of how individual make decision to spend
their available resources (time, money, effort) on
consumption related items. It includes the study of why
they buy it, when they buy it, where they buy it, how
often they buy it & how often they use it.
This study focused on understanding the consumer
buying behavior of pens at retail outlets. It also focused
on the issue that whether the marketing strategies are
properly implemented or not. The study would be
beneficial for the ITC Company to formulate the strategy
for future.

Rationale
Pen is a product, which is used by each and every person. There are
various brands of pen in the market of different types Price, Color,
Design, Grip etc. So the pen market is full of competition where the
consumer possesses vast variety of choice to select his brand which
depends on his buying behavior .Of course it is very difficult to describe
consumer buying behavior about pen; even though researcher have tried
to find how the consumer purchases a particular brand? How much he
searches for his brand? What factors influence he to buys the preferred
brand? What are the different perceptive of retailers on pen?
Pen Industry which is basically my concern industry around which my
project has to be revolved is really a very complex industry. The project
describes an understanding of the strategy & requirements for ITC
Stationery Pens, for penetrating ITC offers to target market (institutions,
retailer's ,etc.) was basically the field of study for this research.
Thus the genesis for doing this study is to throw light on pen
industry consumer buying behavior in general with specific
reference to the analysis of ITC classmate pen consumer buying
behavior in the target market.

SCOPE OF THE STUDY

The following aspects of pen consumer
buying behavior have been covered in this
study.
Demographics of pen consumers.
Psychographics of pen consumers.
Marketing & Competitive environment factors
influencing consumer buying behavior.
Industry and market analysis in terms of size, location,
growth, potential, market share and future business
trends.

SIGNIFICANCE OF THE STUDY

This study helps to the researchers to know about the
consumer buying Behavior and its influencing factors
This study will help the company to know about the
consumer buying Behavior pattern of their products
This study will help the company to identify the right
marketing mix for the products
This study helps the company to improve their
strategic formulation and decision making process

STATEMENT OF THE PROBLEM

The research problem addressed in this study is

focused on
consumer buying behaviour analysis of classmate
pen vis--vis
retailers perspective.

OBJECTIVES OF THE
STUDY
To conduct a comprehensive study on ITC CLASSMATE PENS in
the context of consumer buying Behaviour.

To study and analyse purchases and consumption pattern of

pens by the consumers.

To appraise key factors which mostly influence the consumers to

buy pens.

To critically analyse the marketing strategies used by ITC for

promoting the sales of classmate pens against other
competitors.

LIMITATIONS OF THE
STUDY
There are number of a factor, which affects consumers perception
about pens and is not possible to take all of them into account. Thus,
this study is limited to variable under consideration.

The research is based on the responses given by the respondents,

which may or may not be biased.

The results shown are relative in nature and are not absolute. In other
words, it is the perception of an average customer.

The research study was conducted within the limited duration of time.
So a detailed and comprehensive study could not be made.

The above listed limitations will provide a potential lead to conduct a

future research on the subject.

HYPOTHESIS
The research hypothesis of this study
is as follows.
Ho :The growth in market share of
ITC Classmate pens is
comparatively more than its
competing brands in the context
of study site COLABA, Mumbai.

INDUSTRY PROFILE
GLOBAL WRITING INSTRUMENT INDUSTRY

Globally, writing instrument industry is rising at a healthy

rate despite growing
computerization. The global writing instrument industry is
estimated at Rs 65000
crores. (p.a) where USA markets grew by 5% last year
(2008-09) and is expected to
grow by the same proportionate at this time too. China
controls approximately 10% of the global market, due to its
manufacturing process. India is becoming most preferred
manufacturing destination after china. Indian product
quality is among best in the world, Compared to china
mass market products. Indian market is growing healthily
at 15 to 20% and is expected to grow with same rate for

PROFILE OF PEN
INDUSTRY IN INDIA
The Indian writing instruments market today is still on the
path of discovering new niches with ergonomic designed
products, promotional marketing items and luxury items but
in the coming years it is bound to grow tremendously not only
domestically but also in its exports emerging as world leaders
in Writing Instruments.
Indias writing instrument industry is reserved for the small
sector with a statutory limit on the maximum investment in
plant and machinery at Rs 50 crores. As a result critical pen
component like refills are manufactured in house, while all
non-critical components are outsourced.

Over the years, the market share flowed from

the unbranded to the branded sector. The
market is segmented according to the following
target audience:
Students(many of whom depend only on
pencils and ball point pens)
Frequent users(in offices across commercial
and public establishments)
Occasional users(housewives and literate
manual workers)

MARKET AND MARKET

INFORMATION (IN DETAILS)
The worldwide market size for writing industry is Rs
100000 Crores (p.a),where USAs market alone is
$4.68 Billion Dollars (App Rs 21000 Crores).
China exports of pens are over Rs 5000 Crores (p.a).
India exports of pens are over Rs 200 Crores (p.a).
The annual turnover of the industry in India is now
estimated at Rs 2000 Crores per annum and is
expected to increase at an annual growth rate by 1520% per annum.

 About 80% of Indias pen industry revenue comes from pens with
a price range of up to Rs. 15.
A small percentage of pens are priced in the range of Rs. 100300.
The market for lower price range pens (up to Rs.15) is growing at
7-8% annually; the mid-range pen market is growing faster at 810%.
India is viewed as a quality supplier, where as china as a cheaper
and lower quality products supplier.
Germany, Japan, Taiwan & Korea were hubs for the writing
instrument industry, but due to cast factor manufactured have
started shifting to China and India.
Previously Switzerland was the manufacturing center for ball
point tips, but now India is emerging as a major Tip manufacturer
satisfying not only Domestic demand but Global demand also

MARKET BREAK-UP

It is a quasi-fashion
statement something
thats aligns with the
personality, still the
pen purchase
decision is
considered as low
involvement
decision.

INTRODUCTION TO THE COMPANY

ITC is one of India's foremost

private sector companies with a
market capitalisation of nearly US
$ 30 billion and a turnover of over
US $ 6.1 Billion. ITC is rated
among the World's Best Big
Companies, Asia's 'Fab 50' and
the World's Most Reputable
Companies by Forbes magazine,
among India's Most Respected
Companies by Business World and
among India's Most Valuable
Companies by Business Today.

HISTORY OF ITC
ITC was incorporated on August 24, 1910 under the
name of 'Imperial Tobacco Company of India
Limited'.
A leased office on Radha Bazar Lane, Kolkata, was
the centre of the Company's existence.
The Company celebrated its 16th birthday on
August 24, 1926, by purchasing the plot of land
situated at 37, Chowringhee, (now renamed J.L.
Nehru Road) Kolkata, for the sum of Rs 310,000.
The Company's ownership progressively Indianised,
and the name of the Company was changed to I.T.C.
Limited in 1974.

ITCs Product Mix

Cigarettes
FMCG Foods
Lifestyle Retailing
Personal Care
Education & Stationary products
Safety Matches
Hotels
Packaging

ITC CLASSMATE
ITC made its entry into the stationery business in the
year 2002 .
ITCs stationery Brands are marketed as
Classmate and Paperkraft, with Classmate
addressing the needs of students and Paper kraft
targeted towards college students and executives.
Classmate - Indias truly largest National
brand, reaching 65,000 outlets across the country,
Classmate has successfully run the Classmate
Young Author & Artist Contest for 5 years. The
contest is a national level event going across 34
cities and getting participation from 5000 schools.

CLASSMATE PENS
Aesthetically designed, Classmate
pens offer the consumer a smoother
and more comfortable writing
experience through use of ergonomic
design, reducing the effort required
for writing. The initial launch
comprises ball pens - Classmate
Safari and Classmate Ilet - and gel
pens - Classmate Glider and
Classmate Octane.

ESPB Division
( Education & Stationery Products Business
)

ESPB divisions :
Brands : Paperkraft, Classmate &
Saathi
Categories : Notebooks, Arts
Stationery, Erasers & Sharpeners,
Geometry Box, Pencils,
Scholastics, Pens & Refills.

ESPB - Hierarchy
CEO of ESPB - ( Mr. Chand
Das )
HOSM ( Head of Sales
& Marketing )
NSM ( National
Sales Manager )
KN GRANT

Marketing Manager
PV DHOBALE

Mumbai General Trade Team

Structure
Assitant Branch Manager
( ESPB ) Area
Area
Area
Manager
1
l
Area
Executive

Manager
2

Manager
3

Area
Executive

Area
Executive

3 No.s
DI

NSM ( National Sales Manager

)

Alternate Trade
- NSM

General Trade - NSM

RSM
( East
)

RSM
( West
)

Assitant Branch
Managers
Area Managers
Area Executives

RSM
( North )

RSM
( South
)

Institution
al
Manager
Area
Managers
Area
Executiv
es

Modern Trade
Manager
Area
Managers
Area
Executives

RESEARCH
METHODOLOGY

RESEARCH DESIGN
Research Approach: Exploratory
study is done for the study of
consumer buying Behavior.
Time Dimension: The study was
done using Cross Sectional
method(As the Study is done only
once in the pre specified period of 5
weeks in months of NovemberDecember. longitudinal study was

SAMPLING PLANS

Description of Population/Universe
Here population refers to the number of consumers and
retailers who are using and selling various pens. The sample
population includes people from various categories like
Business Person, Service Person, Student, Housewife's Etc.

Sampling Area
Is the place where the sample is drowned. Here the
researchers take samples from various parts of Colaba,
Mumbai.

 Sample Size
The number of sampling unit selected
from the Population is called the size of
the sample. The sample size selected
was 100 for consumers survey
and 50 for retailers survey

Sampling technique

Here the researcher used probability sampling method.ie

stratified sampling is used for consumers (when
subpopulations within an overall population vary, it is
advantageous to sample each subpopulation (stratum)
independently.Stratificationis the process of dividing
members of the population into homogeneous subgroups
before sampling. The strata should be mutually exclusive:
every element in the population must be assigned to only
one stratum. The strata should also be collectively
exhaustive: no population element can be excluded. Then
simple random samplingorsystematic samplingis applied
within each stratum.)
and non-probability convenience method for the
retailers as the sampling technique.

Method of Data Collection

Primary Data: The researcher has

collected primary data using
structured questionnaire and
personal interviews with selective
respondents.
Secondary data: It was collected
from the ITC company magazines,
websites, and other such sources.

Instrumentation

Research Instrument: Structured NonDisguised Questionnaire is the research

instrument used here. The researcher has
effectively used close ended questions.

Administration: This was done using

self-administered questionnaire
conducted through face to face
communication.

DATA PRESENTATION
The data are presented through charts,
graphs and tables.
TABLES: A univariate table were
used to project the data.
GRAPHS: Graphical representation
of data was through- Pie chart,
Column graphs ,Bar graphs.

STATISTICAL TOOLS USED

PERCENTAGE METHOD
In this project percentage method test and used. The
following are the formula:

Number of
Respondents
Percentage of Respondent =

*100
Total Respondent

CO-RELATION ANALYSIS was used to prove the

hypothesis of the project.

FINDINGS
Amongst different types of Pen, Ball pen is preferred by
most of the consumers
Cello Brand enjoys the market leader position and it is
also preferred by the majority of the consumers for writing
among the different brands of Pen available in the market.
Among the various price of pens available in the market,
between Rs 5-10 price level is the most popular level.
Most of the consumers are prefer to buy pen from
stationary shops.
Smooth writing is the most influencing pen characteristic
in the consumer buying process of pen
TV advertisement is the most influencing media for
customers to buy pen.

Though the effect of In-shop advertisement towards customer is

minimum, among the various mediums pen stands influences the
most.

Friends are most influencing category of people in consumer

buying decision of pen.
Though there is no strong brand loyalty towards any brands, high
quality can make brand loyal customers.

Most of the customers buy more than 10 pen in a year on an

average basis

Customers are less inclined to refill their pen because the pen cost
is negligibly small

Among the surveyed customers only 39% has used classmate

pens.

 Maximum sale of pen happens during the school opening time.

High margin is the main pushing factor for retailers to sell more
products
Most of the retailers replenish their stocks once in two weeks.
Among the surveyed retailers only 24% have classmate pen in
their store
In retailers opinion by improving the availability of classmate
pen, the sales can be improved.
On applying our findings to our 100 consumer in the survey,
price satisfaction were correlated with overall satisfaction
scores, r=0.19, which is considered as smaller effect, Hence Null
Hypothesis is accepted in total.

RECOMMENDATIONS
Cello Company is regarded as No 1 market leader due to its product
verities mainly in the Price range ranging from Rs 5 20 .In this Low
Price Segment where majority of consumers prefer to buy their pen.
At the same price range Classmate have very less products which
can satisfy consumer need. So hereby I suggest that Classmate
should Come up with more products in Effective Price range Of Rs 5
20, targeted to different consumer segments.

The practice of Use and Throw is more visible in consumers, so

classmate should bring some models in below 5 Rs price level.

Company should strongly take care of availability of pens at rural

retail outlets.

 As Classmate is relatively new to the market consumers are

not that much aware about the product, so company should
focus more on promotional activities.
Compare to other brands classmates have limited or
minimum In-shop advertisement objects, by increasing this
brand awareness can be improved.
From the survey it is clear that different variable/features
influence buying decision of consumer in different segments.
Thus Company should not have a common Positioning for all
Target Markets. The companies should try to focus on a
target group by focusing on various characteristics that
affect their buying decision

SCOPE FOR FUTURE RESEARCH

The factors that influence the consumer may change with change in time
because the needs of consumer may vary with change in time. So continuous
monitoring and close observation of factors that motivate the consumer is
necessary to maintain a competent workforce. Only with a competent work
force an organization can achieve its objective. Moreover, marketing
department is the most valuable asset to any organization. A further study
with in department analysis to know to what extent these factors motivate
the consumers is required.

BIBLIOGRAPHY &
WEBLIOGRAPHY
BIBLIOGRAPHY

ITC India Ltd -Annual Report (2012).

Kothari, C.R.( 1982). Research methodology.

New Delhi: Tata Mc Graw-Hill Ltd.
Das ,Bhagaban & Das ,Debadutta (2006)
.Consumer Buying Behavior In India: New
Delhi: Tata Mc Graw-Hill Ltd.
Solomon,R,Michael(2010). Consumer
Behavior - Buying, Having, And Being,
Prentice Hall PTR
Ali ,S.S,.
Thakur,A.K,.Madhavan,K,.Palat(2009)-Models
in Consumer Buying Behavior. Deep & Deep
Publication

WEBLIOGRAPHY
http://www.itcportal.com/aboutitc/shareholder-value/annualreports/itc-annual-report2013/content.aspx ( June,2013)
http://www.citehr.com/29099hr-issues-retailing-businessplan.html (June,2013)
http://www.scribd.com/doc/821
86216/Indian-Pen-IndustryProject (n.d)
http://informahealthcare.com/d
oi/abs/10.1080/014215900200
31066

APPENDIX

QUESTIONNANIRE

I have undertaken a project on A STUDY OF THE

CONSUMER BUYING BEHAVIOR OF ITC
CLASSMATE PEN. The information provided by you
in response to this questionnaire will be effectively
used for developing this study and will help in a
significant manner for my personal appraisal at ITC.
The data will be kept confidential and will be used
for academic purpose only.

 Consumer Buying Behavior Questionnaire

Name
----------------------------Age Group:
(a ) 15-20 [ ]
(b)20-25 [ ]
(c) 25-35 [
(d) 35-50 [ ]
(e) Above 50 [ ]
Place______________________
Occupation:
Student [
]
Business Person [
]
Regular Employee [
]
Others [ ] _____________

Q 1). Which type of Pen do you currently use?

a) Ball Pen [ ] b)Gel Pen [ ]
c) Ink Pen [ ]
d)Premium pen [ ]
Q 2). Which Brand Of Ball Pen do prefer to write?
a) Classmate[ ] b) Reynolds [ ] c) Cello[ ]
d) Lexi[ ]
e) Linc [ ]
f) Italia [ ]
g) others____________
Q 3). What is the price range in which you generally used to buy a pen?
( a) Below Rs 5 [ ]
(c) Between Rs 10-Rs 15 [

(b) Between Rs 5-Rs 10 [ ]

(d) Between Rs 15-Rs 20 [

(d) Above 20[ ]

Q 4).From where do you prefer to buy pen?
(a) Stationary shops [ ]
(b) Super market [ ]
(c) Shopping malls [ ]
(d) Others____________

 Q 5). Which Characteristics of Pen Influence your Buying Decision?

a )Smoothly writing [ ] b)Grip[ ]
c) Price[ ]
d)Long-Life[ ]
e)Brand Name [ ]
Q 6). Which Advertising Media Influences You The Most?
a) TV Advertisements[ ] b) Banners & hoarding[ ]
c) Newspapers & Magazines[ ] d) Internet[ ]
Q 7). Is your buying decision influence In-Shop advertisements?
a) Yes [ ] b) No[ ]
If Yes, Which influences the most?
a)Posters [
] b) Hoardings[
]c)Pen Stands[
] d)Stickers
Others__________________
Q 8). Who influence your buying decision most?
Parents[
] b)friends[
] c) colleagues[
] d)sales person[
Q 9). Do You Choose Only One Brand?
a) Yes [ ] b) No[ ]
If Yes, Which brand?
a) Classmate[ ] b) Reynolds [ ] c) Cello[
d) Lexi[ ] e) Linc [ ]
f) Italia [ ]

] e) others [

 Q10) Why do you purchase the same brand?

a) High Quality[ ] b) Brand Image[ ] c) Easy Availability [
d)Value for money[ ] e)others____________

Q 11).Rank the brands of pens according to your preference from 1-5?

Classmates[ ] Cello[
], Reynolds[ ], Lexi[ ], Linc[ ], Italia[ ]
Q 12) Number of pen usually buy in a year?
a)less than 2[ ] b) 2-5 [ ] c)5-10 [ ] d)more than 10[ ]
Q 13). Do You Refill Your Pen regularly?
a) Yes b) No
If No, Why
a)Pen Cost Is Negligible b)Replacement results into Poor Performance
c)Refill Is Unavailable
d) Specify If Others,______________
Q14) Have you purchased classmate pen?
a) Yes [ ] b)No[ ]

 Retailers Questionnaire
Name of the store: ___________________________
Location:_______________________________
Contact No:_____________________________
Type of store
a) Stationary store [
] b) Department store[ ] c)
Supermarket [ ]
d) Malls [ ]
e) others______________
Average monthly Sales:
a) less than 1 lakh[
]
b)1-3lakh [
] c)35lakh [
]
d) 5-10lakh[
]
e) above 10 lakhs[
]

 Q1) In which price range you sell maximum pens?

a) Less than 7Rs[
]
b)7-10 [
] c)10-15[
]
d)15-25 [
]e)Above 25[
]
Q 2) Which type of pen you sell the most?
a) Ball Pen [ ] b)Gel Pen [ ]
c) Ink Pen [ ] d)Premium pen [ ]
Q3) Maximum sales under the price range between Rs5-Rs.20 are for
which brand of pens? (Rank in order of sales)
(a) Classmate [
] (b) Reynolds[
]
(c) Cello[
] (d) Lexi [
]
e)Linc [
] f)Flair[
]
(g) Others[
] (please specify)___________
Q4)-Sales of pens between the ranges of Rs5-Rs.20 is high during which
period of time?
(a) High during exams [
] (b) Stable throughout the year [
] (c) When
new Schemes are introduced[
]. (d) School opening time[
]
Q5)-Please tick the brands of pen you keep in your store
a) Classmate [
] b) Reynolds[
] c) Cello[
] d) Lexi [
e) Linc [
] f)Flair[
] g) Italia[
] h)Lexor [
] i)Win[
]

 Q6)-When people buy pens what among the following options do

they prefer?
a )Smoothly writing [ ]
b)Grip[ ]
c)Price[ ]
d)Long-Life [ ]
e)Brand Name [ ]
f)Looks[ ]
Q7 ) Your influence towards customer in their buying decision?
a)High b)Average
c)Low
d)Nil
Q8) What motivate you to push the products more to customers?
High margin [ ]
b)Schemes[ ]
c)Quality of products [
]
d) Others__________
Q9) How often you replenish your stocks?
a)every week[ ]
b)once in two week[ ]
c) once in a month [ ]
d)more_________

Q10)Do you think buying decision are influenced by In-Shop

advertisements?
a) Yes [
]
b) No[ ]
If Yes, Which influences the most?
a)Posters [
] b) Hoardings[
]c)Pen Stands[
] d)Stickers
Others__________________
Q11) For non-brand loyal customers, which brand you suggest most?
a) Classmate [
]
(b) Reynolds[
]
(c) Cello[
]
(d) Lexi [
]
e)Linc [
]
f)Flair[
]
Q12) What make you to do so?
a)High margin[
]
b)Schemes[
]
c)Quality of products[
]
d)Brand image [
]
others[
]
____________
Q13)Do you have classmate pen in your store?
a) Yes [
]
b) No[ ]
If Yes
What makes classmates to sell more?
a) Improve quality b) better margin c) more advertisement
d) Better availability e) others_____________
If No
Are you interested to sell classmate pen?
a) Yes [
]
b) No[ ]