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“Consumer Usage and Attitude Towards Parker Pen”
PROJECT REPORT
ON
“CONSUMER USAGE AND ATTITUDE TOWARDS PARKER PEN”
Submitted In Partial Fulfillment of Requirement of Post Graduate Diploma in Management
UNDER THE GUIDANCE OF:Ms. Vandana Puri
Dy. Director-AIMA (CMD)
SUBMITTED BYPULKIT GOGIA
REGN. No. :- 420910021Course : PGDM
SUBMITTED TO:
ALL INDIA MANAGEMENT ASSOCIATION-CENTRE FORMANAGEMENT EDUCATION
(AIMA)
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“Consumer Usage and Attitude Towards Parker Pen”
PROJECT REPORT & SYNOPSIS PERFORMA
Name : Pulkit Gogia
Registration No. : 420910021
Address : E-91, B.K. Dutt Colony
Lodhi Road, New Delhi -110003
Name of the Project Guide : Ms. Vandana Puri
Designation : Dy. Director AIMA - CMD
Title of the Project : "Consumer Usage and Attitude Towards Parker Pen"
Project Code : GM-100
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“Consumer Usage and Attitude Towards Parker Pen”
ACKNOWLEDGEMENT
I have prepared this study paper for the “Consumer Usage and Attitude towards
Parker Pen”. Quite frankly, I have derived the contents and approach of this study paper
through discussions with colleagues who are also the students of this course as well as
with the help of various Books, Magazines and Newspapers etc.
I would like to give my sincere thanks to a host of friends and the teachers who, through
their guidance, enthusiasm and counseling helped me enormously. As I think there will be
always need of improvement. Apart from this, I hope this study paper would stimulate the
need of thinking and discussion on the topics like this one.
Pulkit Gogia
REGN. No. :-
420910021
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“Consumer Usage and Attitude Towards Parker Pen”
TABLE OF CONTENT
CHAPTER – 1 INTRODUCTION ------------------------------------- 1-10
Industry overview
Recent developments
Text by - Bhanu Pande
CHAPTER – 2 OBJECTIVES OF THE STUDY-------------------- 11
CHAPTER – 3 RESEARCH METHODOLOGY-------------------- 12-13
Problem definition
Assumptions
Research design
Exploratory research
Target population
Sampling frame
Sampling technique
Sample size
Sample execution
Collection of primary data
Collection of secondary data
CHAPTER – 4 LITERATURE REVIEW----------------------------- 14-64
Company Profile
Linc Rolls out designer pen
Hrithik signs to royalty deal with ballpen brand
Flair Millennium 2000 series
Pen with rubber grip arrives
Flair pens introduces Sporty range
More literacy promises to give good business to small pen
makers
Sales
Pierre Cardin launches Studio pens:
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“Consumer Usage and Attitude Towards Parker Pen”
Schefields ties up with Kotobuki, plan JV
Customer satisfaction
Strategies to keep in touch
Building customer relationships
Strategies to reward the loyal customers
Lifetime Customer Value
Organization Chart - Parker
Parker Products
Problems of the organization
Competition Information
Sheaffer
SWOT Analysis
CHAPTER - 5 DATA ANALYSIS
CHAPTER – 6 CONCLUSIONS
Limitations
CHAPTER-7 RECOMMANDATIONS
Bibliography
Annexure
Questionnaire
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“Consumer Usage and Attitude Towards Parker Pen”
INTRODUCTION
Indian Writing Instruments market was largely unorganized with regional small players
occupying a niche category or a specific geographical region. The boundaries were
clearly demarcated with hardly any competition.
Today, the market size is Rs. 1400 crore and the competition cut-throat. Major national
brands like Add, Cello, Reynolds and foreign brands such as Cross, Parker Vector and
Pierre Cardin are fighting it out for a larger slice of the cake.
Thanks to competition, investments in manufacturing technology as well as brand
promotion and marketing exercises have gone up considerably. Brand promotion has
picked up tremendously with sizeable spends - as high as 10% of their turnover being the
order of the day. Heavy spends in electronic media supported by top stars like Amitabh
Bachchan are invested to give that competitive edge. Newer players are forcing
established ones to rethink their strategies and with good measure.
The Indian pen market has three principal categories of consumers - the students
accounting for 60% of sales. Corporate accounts for 20% - 25% of the off-take and the
balance from other types of users. The dominance of student segment has led to the
dilution in premium brands like Pierre Cardin making models affordable to them.
Top line foreign brands such as the venerable Montblanc, silver pens from Episode and
Frazer & Haws, Christian Dior, Cartier Parker, Waterman, and Pierre Cardin have all
entered the Indian market either on their own or in collaboration with Indian
manufacturers and distributors. The turning point for the industry came in 1985 when
Reynolds entered the battlefield with French Collaboration and started the era of brand
war in the Indian Writing Instrument Market. Slowly, the unbranded sector has shrunk
and branded players have started to rule the market.
INDUSTRY OVERVIEW
Today, there are about 10 branded players and hundreds of smaller unbranded ones. The
top 10 account for almost 60% of the market of which two are listed companies- the
Kolkata based Rs. 57 core Linc Pen & Plastics Ltd. & the Mumbai based Rs. 78 core
Today’s Writing Products Ltd. the others, including the Chennai based Rs. 130 core
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“Consumer Usage and Attitude Towards Parker Pen”
G.M. Pens International Pvt. Ltd. (the owner of the Reynolds brand), Umbergaon based
Rs. 108 crore Add Pens Ltd., the New Delhi based Rs. 100 crore Luxor Writing
Instruments Pvt. Ltd. & Mumbai based Rs. 80 crore Cello Writing Instruments and
Containers Pvt. Ltd. (owner of the Cello brand) are all privately held firms. The top six
account for nearly 40% of the entire domestic market. Others such as Rotomac, Montex,
Scheffields, and Flair & Stic account for another 15%. The market is growing at heartily
clip of 15% per annum.
Bitter brand was apart, the industry has also produced some outstanding and inspiring
examples of entrepreneurship. Starting from a humble beginning as late as 1963 today
Luxor has staff strength of 1000 people producing 1 million pens a day. Reiterates D.K.
Jain, give the consumer a useful product and at uniform price. His down to earth attitude
and knowing the pulse of the consumer has been the hallmark of Jain all these years. The
introduction of Pilot Pens in India changed the way students approached the art of writing
in schools ushering a revolution of unmeasured success for Luxor. Another
entrepreneurial story of Manak Cand Jain, of Add Pens Ltd. is worth recounting. From
being an employee of Linc Pens for over 10 years, he started his dream from Mumbai
with a princely capital of Rs. 10,000 in 1986, to make it a Rs. 108 crore enterprise today.
Jain’s USP of sleek looking pens took the market by storm. Pens were parked at the lower
price band, and packed in plastic jars which could be used later in households. His
technology tie-ups with Ohto of Japan and Donga of Korea improved his offerings in the
marketplace. Introduction of gel pens was an extremely popular and paying move making
Add Gel pens synonymous with gel pens in the Indian market. Success was repeated with
introduction to Add Roll Gold and Add Diamond Roller models. Add Pens is aiming at a
turnover of Rs. 150 crore presently.
There are others who have managed successful integration of products in the pen
industry. Montex for example began with nibs and pen accessories. Today has firsts-
transparent ball pens, 0.5mm precision tip pens and rubber grip in ball pens. Today
Montex offers a wide repertoire of pens, ranging from ball pens and gel link pens to
fountain pens and roller ink pens. The latest from Montex is Hy - Tank roller ink pen- a
product of the revolutionary IIS (Inbuilt Ink Stabilizer) Technology. These are over 48
countries over all five continents to which Montex pens are exported.
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“Consumer Usage and Attitude Towards Parker Pen”
There have been significant improvisations in designs in pens. Cello Writing Instruments
& Containers recently introduced the Cello Gripper pens. Over a short period of time, the
gripper pens have become the company’s USP. Cello Grippers come with a finely-
textured rubber grip that cushions the fingers while wiring, thus making writing
comfortable and pressure-free, particularly for students. International designs-Swiss tips
and German ink are the hallmark of Cello Gripper pens, setting them apart from the rest.
Some others have rewritten brand promotion concepts. Kanpur-based Rotomac Pens Ltd.
has been the pioneer of big budget celebrity endorsements. Their first campaign ‘likhte
likhte love ho jaye’ featured Bollywood actress Raveena Tandon and made the entire
industry sit up and take notice. That was five years ago. Now, Amitabh Bachchan features
in a Parker pen commercial. All this points to only one thing the rules of the game have
changed with big budget advertising becoming the norm rather than the exception.
Brand has eventually led to price wars. The famous ad line of Linc Pens for their brand
Tip Top - paunch ka do pen’ has led the manufacturer sell 1.5 lakh pieces a day. Linc
wanted to enter the rural markets where ‘the less than Rs. 3 price’ category of pens
usually sees the largest demand. But the category posed the problem of the price tag of
Rs. 2.50 which was thought to be unacceptable to both retailers as well as consumers
since it involved small change. Linc then came up with the idea of offering two pens for
Rs. 5. The paanch ka do’ slogan was born. Linc is fighting it out with an established
leader in this category- the New Delhi-based Stic Pens Ltd.
With super profits vanishing and more and more players entering the low price segments,
huge investments go into making cheaper but good quality products. For example,
Mumbai-based Today’s has lined up massive investments to set up plants with
economies of scale just to make sure their gel pens are prices below Rs. 10.
This has made some industry experts feel that investment on brand building through
insertions in the electronic and print media as a waste of precious money. The logic with
consumers only interested in cheaper products, they do not bother so much about the
quality and hence these investments do no pay. But not everyone agrees with that view.
Repositioning global brands for Indian market was one of feats achieved by the industry.
Consider for example, the 110-year old Boston-headquartered Parker pens Luxor,
Parker’s Indian partner did a market survey only to find that most respondents associated
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“Consumer Usage and Attitude Towards Parker Pen”
Parker with reliability, class but also steep prices. And students felt that it was ‘daddy’s
pen. They needed to be convinced that it was their pen too, since no company can afford
to overlook the dominant student segment in sales.
Luxor finally launched a Parker brand called Beta later last year. For Parker Pens, this
was the first brand that was born in a location other than Boston. Beta roller pen, ball pen
and fountain pen were priced at the range from R. 50 to Rs. 100. This appears to have
worked. Beta notched up huge sales. The name may work in rural areas too, since the
name also can be said to mean ‘son’ in Hindi.
Parker was going steady in the Vector brand, prices in the range between Rs. 100 to Rs.
350 range. Now Beta has overtaken Vector in sales. Luxor has sold more Beta in four
months than what it has sold in the Vector range in a whole year. Another innovative
product from Luxor-“Family Hungama Pack” containing a bounty of pens for the entire
needs of the family for an attractive Rs. 500/- is another idea from D.K. Jain’s stable of
pens. It’s sure winner for the days to come.
Overall, the pen industry continues to be a low-value, high volume business where price,
and to a certain extent branding, determine the winner. But new players are writing new
paradigms. Players who were confident of super profits have been watching their margins
getting squeezed. Ultimately, the winners will be those who will be able to convince
consumers that their products are value for money, whatever be the price tags.
RECENT DEVELOPMENTS
Organized players struggle against a huge small scale sector to brand the writing
instrument market. Can they pull it off?
Text by - Bhanu Pande
Rubber 'comfort' cushions, fashion accessories, endorsements by Bollywood's hottest
stars . . . The humble ball point pen has never had it so high profile. But it's a battlefield
that could well end with the write-off of many players.
Ranged on one side are the premium and "super premium" players who are shelling out
huge sums of money to try and impose an indelible signature on this crowded, Rs. 1000
crore market. They are the players that have accelerated the growth of this market to 12
per cent over the past decade.
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“Consumer Usage and Attitude Towards Parker Pen”
At the other end are the small scale entrepreneurs who flood the market with cheap,
unbranded products.
It is the latter that could prove the biggest obstacle to the crowds of larger, branded
players that are crowding into a market where writing habits are changing. The writing
instruments industry is reserved for the small scale sector.
That leaves two options before large players, including multinationals. One is to sub-
contract manufacturing to the small scale sector, but that often raises quality problems.
The second is to import. But at a 40 per cent duty, imports mean that large manufacturers
have little room to maneuver in this price-sensitive market.
On the other hand, there are no barriers to entry for local entrepreneurs in this low-
investment business. A large number of entrepreneurs pick up cheap dyes and moulds
from Taiwan and Korea and quickly copy what large players would pay huge sums for.
The production process also allows manufacturers to make a wide range of models with
fairly small runs.
At the lower end of the market, low overheads and therefore hefty margins make it highly
attractive for smaller players to simply produce and sell without investing in brand
building.
These faceless producers of ball point pens thrive on amazing pricing and reach that are
well outside the spread of the larger, branded manufactures. For them it's a wholesale-
driven business. For low-end pens (priced at less than Rs. 6) margins are as high as 60 per
cent and allow manufacturers to pass on 25-30 per cent to retailers.
All this has forced the larger players like Luxor, Reynolds and Ritter to focus on the
premium segment. And here the opportunities are huge. Figures are hard to come by since
no market research agency covers this as a product category in volume terms, are writing
instruments industry is estimated to sell 2200 million units a year, with the unorganized
sector being responsible for more than half.
Premium and super premium account for less than 15 per cent of the Indian writing
instrument market.
But it is the last segment that has helped accelerate market growth after being priced open
by global giants like Parker and Mont Blanc. From Rs. 700 crore in 1997-98, writing
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“Consumer Usage and Attitude Towards Parker Pen”
instruments market is estimated to be over Rs. 1000 crore today growing at the rate of
about 20 per cent in value terms.
But this is also the toughest segment to develop. Like confectionery, pens continue to be a
low-involvement, impulse purchase where price and availability play a bigger role than
brand.
Players higher up the price ladder are trying to change this essentially commodity
business. Last year, the writing instruments industry spent over Rs. 75 crore on
advertising, up from Rs. 65 crore the previous year. Larger players like Luxor, Reynolds
Rotomac, Add Gel and Today were some of the big spenders.
But most of this advertisement failed to make any strong and concrete proposition. That is
primarily due to the absence of meaningful product differentiation. Low-end pens form an
extremely low involvement segment with no brand consciousness and loyalty among
consumers. A new feature by any player is quickly matched by rivals. Against this
backdrop, players like Rotomac did try to carve an emotional differentiator trying to
connect the youth through Rotomac Glasse and Fighter campaign. Similarly, Today has
relied on the celebrity endorsement route, starting with Salman Khan, Sachin Tendulkar
and now believed to have signed Hritihik Roshan. Premium and super-premium payers
have focused on imagery and direct marketing.
At the top end, writing instruments go beyond functional utility. They serve as fashion
accessories or status symbols.
Marketers expect such developments to trickle down to low-end segments, and they're
mainly betting on a change in user habits. Over the last few years, consumes have largely
switched to the disposable mode. Instead of stocking refills, people tend to use pens and
then throw them away. That has given a fillip to sales.
Another large constituency for writing instruments is school children. Earlier schools
didn't allow students to use ball point pens. The common reason was that ball points
distorted handwriting. That has changed. More school students use ball points today and
most students like to own more than one pen.
All this has spurred the effort towards branding and differentiation. If the hyper-activity
during the last one year is any indication, the writing instruments industry is poised to see
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“Consumer Usage and Attitude Towards Parker Pen”
a qualitative improvement and turn pens into a high-involvement category. But all this is
also bound to push writing instruments higher on the price curve. Luxor, a joint venture
with Gillette, brought in Paper Mate, a low end brand of pens from the multinationals
global portfolio. Priced at Rs. 20 (for the standard model), Paper Mate falls within the
mid range under the existing market segmentation. Then, Rotomac set up a joint venture
with Flair Pens, Indo Japan Pens and launched Pentel writing instruments with plastic
nibs priced between Rs. 15-115 in four styles. Bangalore-based Today's Pens introduced
the "Stepney" model with extra-built in refill for longer usage. A Rs. 7.50 a piece,
Stepney offers the benefit of two pens at a price of one. Mumbai-based, Flair pens
launched the Millennium 2000 series of pens in the market.
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“Consumer Usage and Attitude Towards Parker Pen”
OBJECTIVES OF THE STUDY
Research Objective
To carry out Usage and Attitude Study of Parker Pen in Delhi city.
To get a clear understanding of the Writing Instrument Industry.
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“Consumer Usage and Attitude Towards Parker Pen”
RESEARCH METHODOLOGY
Problem Definition
The very purpose doing a project on "Consumer Usage and Attitude towards
Parker Pen" was to have a clear understanding of the writing instrument
industry.
The problem that was confronted during the course of the study was to come out
with some concrete results regarding the Consumer Usage and Attitude towards
Parker Pen.
So, the research problem was formulated by keeping in mind the problem
definition that:
Allows the researcher to obtain all the information that was needed to
address the management decision problem.
Guide the researcher in proceeding with the project.
Assumptions
A sample of 200 respondents was interviewed to get a consumer angle to the
project which was under the study.
It is also assumed that the sample which was taken by the way of probability
sampling technique gives a true representation of the population.
It is also assumed that there is a small variation of the sample between the
sample that has been selected and the population.
Research Design
Research Design is a framework of blue print for conducting the marketing
research project. It specifies the details of the procedures necessary for
obtaining the information needed to structure and/or solve marketing research
problems.
Research design is of two type i.e. exploratory research and conclusive
research.
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“Consumer Usage and Attitude Towards Parker Pen”
Exploratory Research
Objective : To provide insights and understanding
Characteristics : - Information needed is defined only
loosely
- Research process is flexible and
unstructured
- Sample is small and non-representative
- Analysis of primary data is qualitative
Findings : Tentative
Outcome : Generally followed by further exploratory or
conclusive research
Conclusive Research
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Objective : To test specific hypothesis and examine
relationship
Characteristics : - Information needed is clearly defined
- Research process is formal and
structured
- Sample is large and representative
- Data analysis is quantitative
Finding : Conclusive
Outcome : Finding used as input into decision
making
Thus, we can see that on the basis of the comparison of the above two
research design process is that conclusive research design process is most
suitable for our project study. The main objective of our project is to study
“Consumer Usage and Attitude towards Parker Pen". So, with the help of the
conclusive research design process, we will be able to arrive at a definite
conclusion with the help of both primary data as well as the secondary data.
Also, data analysis is possible in conclusive research design process.
So, data collected by means of survey can be put to a good use for the study
of “Consumer Usage and Attitude towards Parker Pen".
Sampling Plan
Sample design process comprises of the following steps which is shown below
schematically.
Define the population
Determine the sampling frame
Select the sampling technique
“Consumer Usage and Attitude Towards Parker Pen”
Determine the sample size
Execute the sampling process
Target population
The target audience is in the age group of both 10 years - 21 years and 21
years - 35 years. A sample of 100 respondents was taken from each of the
age group.
Sampling frame
It is a representative of the elements of the target population. The sampling
frame was basically formulated by selecting the particular locality which
comes under the target population. Places close to my house were taken as a
sampling frame which even included collages, schools, university and other
institute. The college students were approached mainly from Jawaharlal
Nehru University Campus as well as the Qutub institutional area where all
the management institutes are there.
The schools that were visited: Apeejay School, Mothers International
School, Birla Vidya Niketan, Don Bosco, New Green Field School.
The above localities were simply chosen for the fact that the final data
analysis presents a true picture of the usage as well as the attitude of the
respondents in the Delhi city.
Sampling Technique
In the following project study, convenient sample size is been used.
Sample size
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“Consumer Usage and Attitude Towards Parker Pen”
It refers to the number of the elements to be included in the study. In this
project sample size is 100.
The sample size was set by keeping in mind factors such as:
1. Importance of decision
2. Nature of research
3. Resource constraint
4. Time constraint in the sense that the time period for the completion of
the project study is two months.
Sample execution
It requires a detailed specification of how the sampling design decision with
respect to the population, sampling frame, sampling unit, sampling
technique, and sample size to be implemented. Basically, face to face
interview was resorted to for contacting the respondents.
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“Consumer Usage and Attitude Towards Parker Pen”
COLLECTION OF PRIMARY DATA
Primary data for our conclusive research was collected from the respondents
belonging to the target population with the help of the questionnaire designed for the
purpose of the project study. Personal interviewing was used for the purpose of
survey. The primary reason for selecting personal interview as the means of survey
was because of the following reasons which are given below:
Criteria interviewing Personal
Flexibility of data collection High
Diversity of question High
Use of physical stimuli High
Control of data collection
environment
High
Response rate High
Obtaining sensitive information Low
Speed high Moderate
Cost high Moderate
COLLECTION OF SECONDARY DATA
Secondary data was collected from various websites in the internet,
newspaper, and magazine excerpts etc.
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“Consumer Usage and Attitude Towards Parker Pen”
LITERATURE REVIEW
COMPANY PROFILE
Pen companies like Link, Today's and Luxor are aggressively tapping the rural market
since they feel there is huge untapped potential in the hinterland. They have already
lined up low-priced offerings which they feel will go down well in the rural markets.
And industry insiders feel that ball point pens are expected to be key drivers for these
markets.
"The rural market is less crowded, so we will be aggressively exploiting this market
by launching new pens which are low priced" says Linc Pens and Plastic MD Deepak
Jalan. The company had earlier launched a low priced pen specifically for the rural
market and is believed to be doing well.
"This segment is very important for us, we had launched Link Tiptop for Rs. 2.50 to
have a foothold in the rural market and today this pen is a category leader" he says.
Officials at Today's pens feel that compared to the urban areas the upgradation of
consumers in the rural areas is taking place very fast. "With the increase in
purchasing power of the low-income group, they are now willing to spend more" says
Today's Pens director Mukesh Gupta.
Linc Rolls out designer pen
After the launch of Linc Gum stick, Linc Pen & Plastics has now rolled out a trendy
retractable ball pen with a designer refill, Link Tip Top. Available in India at Rs. 2.50,
Tip Top comes in 20 pieces box packing. The company says that this product will
mark an in-depth marketing foray into the rural market.
Hrithik signs to royalty deal with ballpen brand
After an innings with Coke, cine-sensation Hrithik Roshan is now teaming up with
Salman Khan, Sachin Tendulkar, Ajit Agarkar and Vinod Kambli to promote Today's
ballpens from the end of this month through a literacy campaign.
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“Consumer Usage and Attitude Towards Parker Pen”
This was announced by chairman and managing director of Today's Writing Products
Ltd Rajesh Drolia. He told The Financial Express that Hrithik would sign five of their
products from June 30.
"We have signed the agreement. From the end of this month, Hrithik Roshan would
promote five of our products, including autograph pens poster pens, puzzle pens and
felt pens with drawing books. We have not yet finalized the fifth product but it would
be done soon", Drolia said.
According to him, Today's has entered into a 14-month agreement with the Kaho Naa
Pyar Hai star on a royalty sharing basis. Asked about the royalty percentage, Drolia
said: "It would be less than 10 percent.
However, he felt that it is a win-win situation for both Hrithik and Today's. "It is true
that we would like to make most out of Hrithik Roshan's popularity but at the same
time, the star would be creating a new image of himself by promoting a stationery
product. Pen is, after all, different from all other products" Drolia said. The company
would, however, continue with its relationship with other cine and cricket starts. All
of them are playing important roles in our advertising and merchandising campaigns.
We continue to recognize the need for strong advertising and have set up a full-
fledged brand management team to execute its advertising strategies", he added.
Flair Millennium 2000 series
Flair Pens have launched the Millennium 2000 series of pens in the market. The series
features models with a new look in terms of packaging, design and finish. The models
on offer include Gel-O, Fortune, Easy Grip, Romance and Euro-Line among others,
priced in the Rs. 12 to Rs. 150 bracket.
Pen with rubber grip arrives
Specifically designed with rubber grip, the transparent, retractable Linc Star Flo is the
latest pen to be launched by Linc Pens and Plastics Ltd.
Available in four different colours the pens are priced at Rs 15 along with an extra
refill worth Rs. 5 manufacturers claim that the special refill with 06 mm TC ball helps
enhance the quality of writing.
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“Consumer Usage and Attitude Towards Parker Pen”
Flair pens introduces Sporty range
Mumbai-based Flair Limited has introduced Flair Sporty-a range of plastic pens
including ball points, gel ink, roller, micro tip and sketch pens. German Soft Ink (sued
for the first time in plastic pens) and 0.5 mm extra fine Swiss tip is a common feature
on all Flair Sporty pens to ensure smooth flow, according to the company. Packed in
trendy green and yellow, Flair Sporty range comprises fashion, cyclone ball pens,
micro ball and trio pen sets, in metallic, pastel and fluorescent colors. Priced between
Rs. 7 and Rs 35, Flair Sporty pens are available at all stationery outlets and general
stores.
More literacy promises to give good business to small pen makers
The uneducated have more than a relation of deprivation with the written world. They
are the future of writing instruments, or at least small pen makers depend on them for
survival, in a market where there is no end to the number of brands and range.
At one end of the pen business is the vast unorganized sector which is said to be
making people's pens and at the other, there is the high-priced segment. In between
are some branded popular pens.
"The market for pens is so big in the country that each segment can flourish" says
Sarlesh Vishwakarma, manager sales; Stic Pens Pvt. Ltd Vishwakarma feels that
competition has increased in the branded segment in the past few years. According to
him, this segment will play a key role in future. "But cheaper pens, manufactured by
small companies, will continue to hold 50 percent of the market share. This is so since
half the population of the country is illiterate and they will be using pens once they
learn to write". Besides, rural and town population still constitute the demand for
cheaper pens.
"Once can start making pens in one room with Rs. 25,000 in hand though for setting
up a big unit at least Rs. 1 crore is required even if one is just assembling", adds
Vishwakarma.
"The unorganized sector can earn in this line but only through its labour. Margins are
not very great but if one manufactures in large quantities and makes all the parts by
himself, profit can be huge," says J.C. Mehta, proprietor, Bharat Refills who started
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“Consumer Usage and Attitude Towards Parker Pen”
his business in 1988 with around Rs. 50,000 and now has turnover which hovers
around Rs. 30-40 lakh.
Mehta was into refill making earlier but with the demand for refills falling, he
switched over to assembling pens and trading. "With companies like Reynolds
coming out with their brand of refill along with pens, the market for refills shrunk.
But we still make certain types of refills. We are also exporting pens indirectly".
Mehta too is confident that despite the forces of marketing and advertising which
work for the high price segment, the demand for cheap pens will increase because the
literacy rate will rise.
Sales
Today's Writing Products Ltd, one of the fastest growing pen manufacturing
companies, has signed Hollywood star Selman Khan for promoting its diverse product
range. Rajesh Drolia, chairman and managing director, said the group's turnover for
the year 1997-98 was over Rs. 60 crore of which 15 percent accounted towards
exports. The company is planning to cross the Rs. 100 crore mark by the end of the
millennium as a result of recent technical collaborations with Mon-Ami Korea for
speedwriting pens and Aubex Japan for fine liner pens.
Stic has introduced its new range of Hi Fi and Retra ballpens under the Stic Star Quest
and Crazee about Cricket series. The pens have photographs of famous film stars and
cricketers imprinted on them. The range has been launched under license from First
Serve Entertainment India, a Vijay Amritraj company in Chennai and US-based
company Upper Deck LLC. Ideal as low-cost gifts and birthday presents, the set
consists of one hi-fi and one extra ball pen and is priced at Rs. 20.
Pierre Cardin launches Studio pens:
Pierre Cardin has launched its Studio range of pens in India under its tie-up with Flair
pens. The refillable pen carries the Pierre Cardin signature and has a non-drying refill.
It is available in six colours and is priced at Rs. 25.
Schefields ties up with Kotobuki, plan JV
27
“Consumer Usage and Attitude Towards Parker Pen”
Kotobuki & Co. Ltd. of Japan has tied up with Calcutta-based pen-makers Schefields
Ltd to sell its Penac brand of pens and mechanical pencils in India. Kotobuki sells
around 150 million pens worldwide every year and supplies to most major pen
companies.
Schefields is also planning to start a manufacturing joint venture with Kotobuki, after
the product gets established in the Indian market, according to Schefields director
Deepak Khemka.
Kotobuki is also an original equipment manufacturer for most of the world's to pen
companies like Parker, Pilot, Reynolds, AT Cross, Staedtler, Waterman, Faber Castell
etc. It is also credited with developing the technology for mechanical pencils.
Customer satisfaction
“Customer satisfaction is defined as the individual’s perception of the performance of
the product on service in relation to his on her expectations”.
Customer satisfaction is the ultimate goal: There is no higher achievement than to
satisfy the customer whom an organization has committed itself to serving. This
doesn’t mean that the organization become a not for profit industry. Profits and
revenues are nothing more than the outcomes of fulfilling customer’s needs and
expectations.
Customer satisfaction to an investment: Customer satisfaction process doesn’t
often produce results in the very short term. Rather the pay off are usually realized in
the medium or long term.
Everyone must be involved in customer satisfaction: All personnel have the
capability, at some level, to influence customer satisfaction. Top management must
communicate exactly how personnel will be expected to contribute because this is
possible the more those employees industrial their sales in creating customers
satisfaction, the better they will be able to participate.
Strategies to keep in touch
Mailers : To go beyond the shop "Attitudes" customer relationship system would
include sending regular mailers updating consumers about the latest range, schemes
28
“Consumer Usage and Attitude Towards Parker Pen”
etc. This would essentially be through emails.
Cards : Standardized cards for birthdays and anniversaries would be given out to the
customers to be a point of the happy times of its customers.
Product catalogues would be sent as attachment giving out product details, range
availability, price quotations etc.
Building Customer Relationships
As with the development of quality store brands, the development of strong direct
customer relationships requires the retailer to have a long-term investment mentality.
Investment can take several forms, some more obvious and apparent than others.
A fairly transparent investment is the cost of rewarding loyal customers. Loyalty
incentives not only reward and promote customer loyalty, they also encourage
customers to participate in developing the customer information base and the two-way
communication process. Loyalty incentives can show up in direct cost, such as
cumulative points on a store cad with trade-in value, or special discounts and
promotions. They can also show up in the indirect cost of special services offered at
no extra charge or at subsidized prices, such as pre-picking or home delivery.
Strategies to reward the loyal customers
Sale Days: Almost all retail outlets undertake promotional activities especially that of
putting store items on sale. During these times "Attitude" would reward customers by
limiting the first day of sale only for select customer set - to provide them the first
choice and the widest range. This can be done by informing the loyal set of customers
through pamphlets etc. thereby making him feel important and hence strengthening
the bond.
Bonus : For those customers who have shopped 10 pairs of garments through the year
would get the eleventh at 1/10th price (on the presentation of memos). And it will be a
year round scheme to promote and build customer relations and this scheme would be
printed at the end of every bill.
Preference to our customers : Most ticket of shows/programmes for the youth are
distributed through retail outlets e.g. Ricky Martin show, Daler Mehandi Show etc. At
29
“Consumer Usage and Attitude Towards Parker Pen”
all such occasions where "Attitude" was to hold the distribution of these tickets
personal calls informing our customers about the availability and in some cases tickets
also book the tickets for them. Thereby building customer relations and rewarding
loyal customers.
Lucky draws : The end of every 3 months there would be a lucky draw where in off
all the customer cards one would be picked for a free gift thereby bringing back even
the customer who did not intend coming back.
No "Customer" goes with just the product : A range of Parker Pens would be at the
shop and a pen 10% of the bill value would be given along with the product and since
it’s a premium outlet no outfit would be less than 500 (this activity would be
sustained by shooting up the price by 10% and availing benefits of economies of
scale).
LIFETIME CUSTOMER VALUE
Retail transactions are often individually of small value, consumers may give little
evidence of retail brand loyalty in their search for best prices, and retailers themselves
are often very focused on short-term sales performance. This combination tends to
make retailers transaction-focused, and makes them lose sight of the potential lifetime
value of customer loyalty.
Value is driven by a combination of annual spend per spending consumer or
household, the life-cycle of that spend, and the share of customer spend that a retailer
might hope to achieve.
Recognizing the lifetime value of customer relationships can help retailers determine
how much and where to invest in building direct customer relationships - although
there is no automatic formula for deciding how much of that lifetime value to invest
in capturing and keeping a customer.
Fashion repertoires retailers do not expect to capture high proportion of even a loyal
customer's total annual fashion spend.
So at "Attitude", in order to add to the lifestyle customer value various benefits are
given to the customers.
30
“Consumer Usage and Attitude Towards Parker Pen”
Customization: "attitude" aims to add customer value by offering 100% customized
products to the customers. This would be one way of ensuring that a onetime
customer comes a life long customer.
Personalization : The moments of truth when the sales staff interact with the
prospective customers entering "Attitude" are very crucial in determining the way in
which the latter' reacts.
At "Attitude" sales personnel would give personal attention to each customer however
at the same it would be ensured that he does not feel honoured. Moreover a conscious
effort would be made to remember names of require customer to make them feel
important.
Trained Staff : To ensure that the customers delivered what they want and in the way
they want "Attitude" would hire and regularly train its staff. The staff would be
equipped to handle all possible queries of the customers.
Feedback loop for "Attitude"
Transfer of database information
Customer
Store "Attitude"
Customer relationship cell
Upgradation of database
regular team
Feedback specific problem handling special
schemes
ORGANIZATION CHART-PARKER
31
“Consumer Usage and Attitude Towards Parker Pen”
PARKER PRODUCTS
Parker Vector Standard
Parker Jotter Stainless Steel Roller Ball Pen
Parker Sonnet Fountain Pen
33
“Consumer Usage and Attitude Towards Parker Pen”
Parker Vector Stainless Steel Set (Roller Ball + Ball Pen)
PROBLEMS OF THE ORGANIZATION
Luxor is a major player in the market with a market share of around 15%. Parker is a
brand that is well established in this market. Parker is manufactured and marketed in
India by Luxor Writing Instruments Ltd (LWIL). Parker was launched in India in
1996. Luxor had a joint venture with Gillette which owned the brand at that time. In
2000 Gillette sold the brands to $9 Billion major Newel Rubbermaid. That included
the 50:50 joint venture with Luxor. Later the Jains bought the entire stake in the joint
venture. Now LWIL have the 100 right to manufacture and market Parker Pens in
India.
The writings instruments market can be classified into premium, middle and economy
segment. There are many established players in this market like Cello, Add Gel,
Today’s, Lamy, cross etc. While the premium segment is dominated by super
expensive brands like Mont Blanc, Cartier etc, the economy segment is dominated by
local players. All the action is in the middle segment which consists of College
students, Executives Businessmen etc.
Parker pens have a rich heritage. The treaty of peace ending the 1898 Spanish-
American Civil war was inked using Parker pen. Sir Arthur Conan Doyle drafted the
stories of Sherlock Holmes using Parker pen. The list contains the Who is Who of
American History.
Parker was considered to be a premium brand in India (before Mont Blanc and Co's
landed with Rs l lakh and above pens). The brand had an aspirational value attached
to it. Then LWIL decided to shed the premium image to play the volume game.
Earlier Parker was priced above Rs 100. Research found that the price put off a large
segment of the market. The market was dominated by Reynolds (again a Rubbermaid
34
“Consumer Usage and Attitude Towards Parker Pen”
brand) marketed by GM Pens. The TG for this segment was the school/ college kids
and this segment was growing. Reynolds is leading with a market share of 12% and
Luxor umbrella brands are next with 10% market share followed by players like Cello
and Today’s.
Parker then launched Parker Beta for Rs 50 aiming this segment and plays the volume
game. Parker is endorsed by none other than Big B. Some ads are lousy and some
very good. I like the ones with the baseline “Why use a pen that's not a Parker”. Since
the lower segments of the pen market lacks brand loyalty, Big B can make a
difference. LWIL by using Big B aims to connect and identify with young and old
alike.
Parker was a brand that had the elegant premium touch to it with its rich tradition and
quality. But with the launch of lower priced Parker range, the premium and the
exclusivity have been compromised. Now the Parker range is available from Rs 50-
5000. Big B to certain extent salvages the pride of Parker. But when the brand tries to
play the volume game, it is difficult to sustain the premium. Thus Parker is losing out
the Executive segment where pens are used as Accessory. It’s a void that is waiting
for a brand.
COMPETITION INFORMATION
CELLO PENS
The makers of Cello pens, are a part of Rs. 800 crore (US$ 182mn.) Cello Group.
Lauded as one of the world's best and India's largest pen manufacturer's and well
known for its dynamism and spirit of innovation. Cello ceaselessly endeavours to
bring in the newest and the best of technology to set new benchmarks in quality and
innovates constantly to blaze new trails in the market place. At Cello, innovation is
not just a guiding philosophy; it is a key business process, dynamism and a defining
attitude. Today Cello offers one of the largest range of pens offered by any
manufacturer in the world, all conforming to the highest global standards. The result
of a well-equipped assembly line with over 175 ultra-sophisticated injection moulding
machines and a highly trained and dedicated work force of 5000. Cello's extensive
global R & D, cutting-edge manufacturing technology, production, processes,
globally sourced material and exhaustive quality standards are among the best in the
world. It's what makes Cello Group strong business conglomerate. It's what makes
Cello a Cello.
35
“Consumer Usage and Attitude Towards Parker Pen”
Cello has India's largest range of smart looking, high-performance gel ink and
ballpoint pens in different ink colours and at a variety of price points. Be it a school
kid, a college student, a young professional or a senior executive, there is a Cello for
everyone. Starting from Cello Alpha Gel, Maxriter and Gripper pens for pressure-free
writing that are a hit with school kid to the cool looking Cello Finegrip, Pinpoint and
Technotip XS that the college going crowd vouches for. From the ever-dependable
Cello Finer, Pointe and the stylish Cello Powermax that has become the working
professionals' most preferred to the Cello Sapphire, Papersoft and Executive pens
with a certain understand luxury that have become a common sight on the desks of
senior executives. There's also Cello's new range of Highlighters and markers that
have carved out an enviable name for themselves in a very short time.
Cello Pens are backed by well-thought out marketing and advertising campaigns
based on strategically sound positioning that have driven the name Cello to the tip of
every tongue. Today, Cello enjoys very high top-of-mind consumer recall and a prime
spot of consumer mind space. This, coupled with Cello's aggressive below-the-line
promotional initiatives, makes sure Cello stays the most asked for pen in India.
LINC PEN & PLASTICS LIMITED :
Linc Pen & Plastics Limited. (LPPL) has exclusive rights of distribution,
marketing and packaging of ‘Uniball’ brand in India. LPPL has been associated with
Mitsubishi Pencil Co Ltd for more than 15 years.
Linc Pen & Plastics Limited is a leading manufacturer, marketer and exporter of
writing instruments and stationery products. The company’s headquarter is in
Kolkata, with two state of the art manufacturing facilities located in West Bengal and
one in Goa. All the manufacturing facilities of the company are ISO 9001:2000
certified.
LPPL is the second largest player in the country with a 10% market share. However,
in the eastern region and UP, it is the undisputed market leader with a 30% share of
the market. The company has already registered its brand in more than 50 countries
worldwide, while it sells its products in 20 countries. With the Indian manufacturers
and exporters slated to increase their market share in the global export market, the
company is well on its way to be within the top three exporters of the industry.
LPPL is the only company in the industry to have top line growth, and at the same
time, making profits since 1998. We expect the company to maintain this trend in
36
“Consumer Usage and Attitude Towards Parker Pen”
future. The company has roped in Shah Rukh Khan as the brand ambassador since
September 2010. However, the effect of that has started to show from Q1FY10, when
the company has managed to clock around 20% growth in top line. We expect the
mindshare of the company to go up in future, helping it to garner a slice of the
expanding market share.
The company is also a supplier of pens to global retail giants like Wal-Mart, Asda and
Tesco for their private labels. The company has one of the largest product breadths in
the industry, with products catering to both mass segment (below Rs 20) and high
value segment (above Rs 20). LPPL has products catering to both the value conscious
as well as the quality conscious.
LAMY PENS
Lamy is an independent family-owned enterprise which was established in 1930 by C.
Josef Lamy in Heidelberg. The LAMY brand has existed since 1952 and proved its
innovative prowess in the very first year with the completely novel LAMY 27
fountain pen series. And in 1966 the distinctive style of Lamy Design was born with
the LAMY 2000. With an annual production of over 6 million writing instruments and
a turnover exceeding €50 million Lamy today is not only the market leader in
Germany but also ranks among the German design brands whose products hold a
special position worldwide.
LAMY safari
37
SHEAFFER
The year: 1912. The place: Fort Madison, Iowa. Walter A. Sheaffer takes his grand idea
of a pen-filling apparatus that utilizes a lever system and, with his life savings, founds the
W.A. Sheaffer Company. The physical space of the company is a modest one - the
backroom of Mr. Shaffer’s jeweler store - but the vision of the company is much more
than modest. Nearly a century later, we continue to offer generation after generation
innovative, reliable and stylish writing instruments. These pens are used worldwide by
loyal and diverse friends who appreciate elegance and class. We look back to the
nostalgic past, to simpler times when a look in the eye and a hand shake was the norm.
We look to the abundant future, by redefining the fashion of written communication in
our technological world. You have a signature. And Shaffer gives you the power to show
the world what it is.
Shaffer Pens are a delightful mix of craftsmanship and excellence in quality. Available in
Fountain Pen, Roller Pen and Ball Pen, they are the written word for everything you look
for in a pen. Immaculate design, thoughtful features and effortless writing make Shaffer, a
much sought-after brand in pens. The range of pens in this collection can be personalized
with your name. Sheaffer pens come in a premium gift box.
PRODUCTS
Writing Instruments
Sheaffer® Prelude® Collection
Welcome to the quality writing instrument.
Sheaffer® Intensity®
Passion and Power Personified
Sheaffer® Agio® Collection
The difference is in the details.
SWOT ANALYSIS
SWOT ANALYSIS OF LUXOR BASED ON THE RESEARCH
CONDUCTED
STRENGTH
Great brand image
Excellent customer satisfaction especially among corporate professionals
Diverse product range
Mass appeal and popularity
Caters to each market segment-children, professionals, students.
Well expanded retail network-both small and big outlets have Luxor pens
Strong hold among the corporate professionals
WEAKNESS
Lack of new designs and innovations(based on customer response)
Difficulty in procuring refills and ink bottles for Parker.
Danger of losing brand appeal.
Opportunities
Building a Brand image about Luxor in a new manner
Writing Instruments Market is expanding as many foreign companies are coming
in this.
By continually introducing new products, expanding the target base, Parker can
reposition itself
Threats
Stiff competition from Lamy, Cross & cello pens
Unawareness among consumers regarding Luxor’s complete and exhaustive range
of products.
Less promotions, advertising by Luxor
DATA ANALYSIS
For the research, data was collected from both primary and secondary sources
through questionnaires formed for the purpose. The questionnaires were filled by 50
customers and 50 retailers.
PRIMARY DATA
Questionnaires
Personal interview
SECONDARY DATA
Various internet sites
Internal data provided by the company
ANALYSIS TOOLS
Graphs
Pie charts
1. AWARENESS OF BRANDS
INTERPRETATION
The above pie chart shows the distribution of awareness of different brands of pen. The
top 3 brands of pen in this case were: Parker, Cello, Uniball / Cross.
2. WEIGHTAGE OF DIFFERENT ATTRIBUTES OF PARKER PEN
Writing performance-----------------------------10
Design/style---------------------------------------42
Brand name----------------------------------------38
Reasonable Price----------------------------------10
INTERPRETATION
The above pie chart shows the distribution of weight age of different attributes of Parker
pens. So, the descending orders of the attributes according to the weight age: brand name,
reasonable price, design & style & writing performance.
3. OUTLETS FROM WHERE THE RESPONDENTS PURCHASE THE
PARKER PEN
School Stationery shop----------------------------------- 2
College Stationery Shop--------------------------------- 3
Stationery shop-------------------------------------------- 62
Stationery & gift shops at malls------------------------- 33
INTERPRETATION
The above pie chart shows the distribution of outlets from where the
respondents purchase the Parker pens. About 62 respondents buy the Parker pen
from the stationery shop while other 33 respondents got the Parker pen from
shops, malls, school and college stationery shop.
4. PREFERRED BRAND IT TERMS OF QUALITY
PREFERRED BRAND IN TERMS OF QUALITY
27%
33%
23%
10%7%
Parker Cello Uniball Pieree cardin cross
INTERPRETATION
The above pie chart shows the distribution of preferred brand in terms of
quality. Descending order of preferences Cello, Parker, Uniball, and Pierre
Cardin etc.
5. LUXOR PEN OWNER (PARKER)
INTERPRETATION
The above graph shows the distribution of Luxor (Parker) Pen owners. It can be
clearly seen from the graph that about 60 respondents are Luxor (Parker) pen
users.
6. USAGE OF DIFFERENT SUB BRANDS OF PARKER PEN
INTERPRETATION
The above figure shows the distribution of the ownership pattern of sub brands of Parker
pens. It is clear from the figure that Parker Vector and Parker Beta has got the maximum
amount of acceptance from the respondents.
7. ACQUISITION MODE OF THE RESPONDENTS
Self purchase------------------------------------- 69
Gift------------------------------------------------ 31
INTERPRETATION
The above graph shows the distribution of the acquisition mode of the respondents. 32
respondents acquired the Parker pen through self purchase, 68 respondents acquired for
the purpose of gifting.
8. RESPONDENTS WHO HAVE SEEN PARKER ADVERTISEMENT
Yes---------------------------------- 80
No----------------------------------- 20
INTERPRETATION
The above graph shows the distribution of the respondents which have seen the
Parker advertisements. Nearly 80 respondents have seen Parker Advertisement
and 20 respondents have not seen Parker.
9. MEDIUM IN WHICH RESPONDENT SAW ADVERTISEMENT
INTERPRETATION
The above pie chart shows the distribution of weightage of medium in which the
respondents saw the Parker advertisement. The descending order of weightage
was as follow television, shop (posters/banners/glow sign) newspaper,
magazines.
10. RESPONSE OF RESPONDENT TOWARDS STATEMENT
INTERPRETATION
The above pie chart shows the distribution of the view of the respondents
regarding the Parker pen in terms of affirmation. The top 3 statement as per
weightage given were:
(a) makes high quality pen
(b) gift which can be appreciated
(c) well established reputation
11. LIKELY RESPONSE OF THE RESPONDENTS TO THE NEXT
BEST PREFERRED BRAND
Cross ------------------------------------------------ 10
Cello-------------------------------------------------- 25
Uniball/Pierre Cardin etc ---------------------- 65
INTERPRETATION
The above pie-chart shows distribution of the likely response of the respondents
to the next best preferred brand if they do not find a Parker in an outlet. 25
respondents preferred cello 65, preferred Pierre Cardin etc and the rest
preferred cross.
12. PREFERRED WRITING MODE
0
5
10
15
20
25
30
35
40
45
1
PREFERRED WRITING MODE
INTERPRETATION
The above graph shows the distribution of Preference of writing mode the
respondents. Out of the 100 respondents that were interviewed were 43
preferred, Ball 39, preferred gel and the rest roller.
13. GOING TO OTHER OUTLETS FOR PURCHASE OF PARKER PEN
0
10
20
30
40
50
60
70
80
1
GOING TO OTHER OUTLETS FOR PURCHASE OF PARKER PEN
Yes No
INTERPRETATION
The above graph shows whether the respondents were willing to go to other
shops if they did not find the Parker in a Particular shop. 80 of them said yes.
14. CHART SHOWING THE DISTRIBUTION OF SEX OF THE
RESPONDENTS
INTERPRETATION
The above graph shows the distribution of Sex of the respondents Preference of
writing mode the respondents. Out of the 100 respondents 75 were Male and 25
Female.
13. AGE OF RESPONDENTS
AGE OF THE RESPONDENTS
15
50
35
Upto 18 years 23-27 years 19-22 years
INTERPRETATION
The above pie chart shows the distribution of the age of the respondents. About
50 respondents were of age between 23-27 yrs, 35 respondents were of the age
between 19-22 yrs, 15 were upto the age of 18 years.
14. OCCUPATION OF THE RESPONDENTS
OCCUPATION OF THE RESPONDENTS
15%
49%
36%
Students School + College
Coporate Professional (and Businessmen)
others Teachers etc
INTERPRETATION
The above pie chart shows the distribution of the occupation of the respondents. About 49
respondents were corporate professionals and in business, 15 respondents were students
and the rest having other professions.
CONCLUSIONS
The following are the conclusions that can be drawn from the survey that was carried out:
It can be concluded from the survey that the maximum respondents use on the average
one to three pens in the past two months. It clearly indicates the frequency of pen
purchase by the respondents. So, it should be kept in mind that the frequency of pen
purchase while deciding upon the volume of pens that is to be produced by the company.
It can be concluded from the survey that the maximum respondents had opted for ball
point pen and gel pen. So, it is important for the company to focus on these two segments
to further reinforce its position in the writing instruments industry. However, if we go by
the statistical figures, Luxor Writing Instruments Limited is losing ground in the industry
mainly because it is not producing gel pens. So, the company should concentrate on the
gel segment also.
It can also be concluded that the majority of the usage pattern is tested towards ball point
pen and gel pens. The majority of the respondents use the above two modes of pen very
often. These two segments of pen provides ample amount of opportunity for the company
to tap.
By studying the attitude pattern of the respondents, one can conclude that the maximum
number of respondents prefer to have roller ball, ball point and gel pen. In other words,
the respondents seem to have a favourable attitude towards roller ball, ball point and gel
pen. The company should try and cash on with the closeness of the mind of the
respondents with the likes of ball point pens, gel pens and roller ball pen.
It can be concluded that the most important factors that play in the mind of the
respondents are : writing performance, flow and comfort. So, the company should try and
bring about constant improvement in the quality of the pen to suit the needs of the
consumers. The flow of pen is equally important. So, the company should see to it that
there is no leakage in the refill as such. Also, the grip of the pen is paramount importance
to the consumers. So, in that aspect, effort should be made to make the grip more
comfortable.
It can be concluded that the majority of the respondents prefer fine tip. So, in that respect,
the company should see to it that the different varieties of pen that they manufacturer
should have a fine tip.
It can be concluded that the majority of the respondents prefer to buy a particular brand of
pen in the pen shop. So, the company should see to it that point of sale promotion should
be given a lot of stress. In shop posters, danglers, glow signs should be put. So, that it
leaves a profound impact on the mind of the consumers.
It can be concluded that the majority of the respondents prefer to buy their pen from the
stationery shop. Though of late, the company trying to push its product through the
FMCG route but as it is evident from the survey, it is still to catch on.
It can be concluded that the main competitors of Parker as far as aided as well as unaided
recall is concerned, is Reynolds, Add Gel, Cello. The companies take note of these
competitors and devise various strategies and when these competitors come out with new
variation of their pen.
It can be concluded that most of the respondents acquired the Parker through self
purchase and gifts. When the school students as well as the college student were
surveyed, it was quite evident that Parker pen was perceived to be a costly pen, good for
only giving it as a gift. So, the company should tap this segment the most as it has a lot of
potential.
Majority of the respondents seems to have a favourable attitude towards Parker pen. So,
the company should take steps in the regard to further reinforce its position in the mind of
the consumers. This can be done effectively by the means of the advertisement.
It can be concluded that the majority of the respondents buy Parker pen because its brand
name, flow and the writing performance. However, it scores a negative point on factors
such premium, price, design/style and lightweight. These factors may prove to be a
hindrance in boosting the sale of the Parker pen and so, it should be given due
consideration.
The respondents were given a hypothetical question wherein, they had to conceptualize a
picture of ideal pen in their mind and exactly how would they go about buying that ideal
pen. It was concluded that the respondents give maximum amount of weightage to the
writing performance, flow, brand name.
It can be concluded that the awareness of Parker advertisement is fairly good. Nearly, 98
percent of the Parker pen users have seen Parker advertisement. So, in that perspective the
advertisement of the Parker pen has been quite effective.
Parker pen has been largely been acquired from stationery shop. So, as discussed earlier,
the company should give more focus on point of sale advertisement.
Parker pen advertisement has been successful in television, newspaper particularly. The
company should go for more insertion in these medium to gain the maximum amount of
mileage vis-à-vis its competitors.
There is an overwhelming amount of awareness amongst the Parker pen users that
Amitabh Bachchan is then brand ambassador. The respondents are able to easily co-relate
Parker pen especially Parker Beta with Amitabh Bachchan.
Majority of the respondents are aware of the fact that Parker Pen starts at Rs. 50. There
are still certain sections of peoples such as school students as well as college student that
the Parker pens are expensive, suitable only for giving gifts.
Majority of the respondents were of the view that they would go to another shop to buy a
Parker pen if they do not get it in an outlet. This just goes to show that the majority of the
respondents who were interviewed were brand loyal.
Parker pens main strengths are:
"Makes high quality pen"
"Gift which can be appreciated"
"Well established reputation"
"is well made"
"pen that makes impression on others"
Its weaknesses are
"Inexpensive pen"
" I like to flaunt it"
" I am an achiever in life"
"specialist in fountain pen"
"Stylish design"
The performance gap which exists between the Parker pen and the ideal pen shows the
areas on which improvement should be made to make the pen more competitive in the
market.
The following are the areas where the company should sustain its efforts i.e.
Brand name
Premium
Comfort
Reliability
Flow
The following are the areas where the company should strive to make the improvement.
These areas are:
Design/style
Price
Lightweight
Writing performance
LIMITATIONS
The sample size is moderate enough though it could have been bigger
The responses from the sample consumers were obtained through questionnaire, which
has its own limitations. All these limitations are also applicable to this study.
There is considerable time gap between the purchase of Refrigerator and the study
conducted; rapidly changing marketing environment has affected the responses of the
sample of Refrigerator owners.
The area chosen for survey may not reflect the demographic makeup of national average
and national tests, which is a limitation of the study.
Between the sender and the receiver, due to differing perceptions, communication errors
in the form of miscomprehension, selective perceptions etc. creep in. In this case too,
these were unavoidable, and thus might have added to slight inaccuracy in my results.
I had to work under a time constraint for which I would not gather more information. All
places could not be covered especially the remote areas even within the NCR territory.
Hence the opinion of many people was left untapped.
RECOMMENDATIONS
1. One of the respondents was of the view that Indian Parker is not well made. Golden
Parker is not available in India.
2. The outer finishing of the Parker pen is not good enough. Adequate changes should be
made in this regard.
3. Quite a few of the respondents who were surveyed were of the view that pen breaks
easily near the grip part. So, the grip portion of the Parker pen should be made very
strong.
4. Parker pen seems to be very heavy. So, effort should be made to make it a lightweight
pen.
5. There is a general perception in the mind of the respondents that Parker pens are a bit
costly. So, the company should give its pricing strategy a second thought.
6. It has also seen that mostly the respondents buy Parker pen for gifting purpose rather
than for personal use. This phenomenon should be kept in mind by the company.
7. While visiting some of the stationery shop, it was observed that the distributor margin
for the Parker pen in most of the cases were very low. So, the shopkeeper thinks twice
before keeping Parker pens.
8. It was also observed that the cap of Parker pen becomes very loose. So, in this regard,
the cap of the pen should be made for tight.
9. It was also observed that while visiting different stationery shops, there was lack of
posters, danglers, etc. in various shops that were visited. For instance, when Archie's
Gallery in Alaknanda market was visited, the owner could not put poster, danglers of
Parker pens because they were not authorized to promote other company's product.
So, the company should take note of this and take appropriate action.
10. It was also observed that in certain instances, the gift that was associated with the
particular sub-brand of Parker was not received by the retailer. The company should
take a serious note of this incident and must take an appropriate action.
11. It was also observed that the retailers did not get their amount reimbursed when the
price of the Parker pens were slashed. Instead of getting the reimbursement, they got
other products, say, cartridges in lieu of reimbursement. This seriously hampers the
goodwill of the retailer and so, the company should take a serious note of this
incident.
12. The company should ensure better production logistics using backward integration
into raw materials and packaging to cut down production cost.
13. The company should go for the optimal product mix to bring about maximum gain or
profit. They should also milch certain sub-brands of Parker which is not doing well in
the Indian Market.
14. The company handles basically four brands of pen namely, Parker, Luxor, Pilot and
Papermate. All of these brands of pen should be treated as a separate Strategic
Business Unit (SBUs). It will be beneficial for the company in the sense that these
SBUs will have its own set of competitors and each SBU will have a manager who is
responsible for strategic planning and profit performance and who controls most of
the factors affecting profit.
15. The company should analyze each opportunity and prepare the best product and
should then, commit itself for the long run to make a product a success.
16. The company should always be an active innovator and should be constantly
innovating to bring about new changes in the product specifically with relation to
Parker pens to suit the changing needs and wants of the customer.
17. The company should go for high quality, action oriented as well as national promotion
to further reinforce its position as market leader in the writing instrument industry.
18. The company should try to cater to the niche segment which comprises of the affluent
segment of the Indian population because they are the one who will buy the costly
Parker pens. It is also quite evident that Parker pen is not doing that well in the upper
segment of the product range. A major chunk of the revenue is coming from the lower
segment of its product range. Targeting the affluent segment of the Indian society
might just do the trick for the Parker pens in the upper segment.
BIBLIOGRAPHY
Books
Marketing Research - Naresh Malhotra, 4 th edition.
Marketing Management - Philip Kotler, 12 th edition.
Advertising Management - David Aaker, John G. Myers, and Rajeev Batra.
Brand Management - Subroto Sengupta
Websites
www.indiainfoline.com
www.expressindia.com
www.aceglobalonline.com
www.economictimes.com
Magazines and journals
Writing instruments - a Potential for Export (by G.P. Gandhi).
Writing instrument - Excerpts from Business World Magazine.
ANNEXURE
QUESTIONNAIRE
1. Do you use a pen?
Yes No
2. How many pens you have used in the past two months?
Below 1 1 - 3
4 - 6 above 7
3. Which mode of pen do you use and why and what is your usage pattern?
Mode Usage Pattern Why (Reason)
(a) Fountain Pen (i) Never tried
(ii) Ever tried
(iii) Past 4 weeks
(iv) Past 12 months
(v) Used most often
____________________
(b) Roller Ball Pen (i) Never tried
(ii) Ever tried
(iii) Past 4 weeks
(iv) Past 12 months
(v) Used most often
_____________________
(c) Ball Point Pen (i) Never tried
(ii) Ever tried
(iii) Past 4 weeks
(iv) Past 12 months
_____________________
(v) Used most often
(d) Gel (i) Never tried
(ii) Ever tried
(iii) Past 4 weeks
(iv) Past 12 months
(v) Used most often
_____________________
4. What do you think about the particular mode of pen that you use?
(a) Fountain Pen Insist
No Opinion
Prefer
Unaware
Intend
Reject
(b) Roller pen Insist
No Opinion
Prefer
Unaware
Intend
Reject
(c) Ball Point Pen Insist
No Opinion
Prefer
Unaware
Intend
Reject
(d) Gel Pen Insist
No Opinion
Prefer
Unaware
Intend
Reject
5. What factors do you keep in mind when you buy a pen? Please give the
raking on a scale starting 1 which is of highest importance and 10 is of
lowest importance.
Factors Ranking
Writing Performance ______
Design/Style
Brand Name
Reliability
Comfort
Place
Flow
Light Weight
Fine Tip
Premium
Any other (please specify
______
______
______
______
______
______
______
______
______
___________________________
6. What is your preference for the pen tip?
Broad Medium (0.7mm)
Fine (0.5mm) Extra/micro fine
7. When do you decide the brand of pen you want to purchase?
In the pen shop It is pre-decided
8. From which kind of outlet did you buy your last pen?
School stationery shop College stationery shop
Stationery shop Kiranawala store
9. Which is the first brand of pen that comes to your mind?
_____________________________________________
10. Which other brand of pens are you aware of?
_____________________________________________
11. Which all brands of pen you are aware of?
Parker
Camlin
Reynolds
Waterman
Papermate
Luxor
Mitsubishi
Rotomac
Pilot
Reynolds
Cello
Hero
Add
Montex
Any other__
12. Do you own a Parker?
Yes No
13. Which particular sub-brand of Parker do you own?
Parker Sonnet Parker Rialto
Parker Frontier Parker Beta
Any other specify________________
14. How did you acquire the Parker pen?
Self purchase Gift
Borrowed Promotion
15. If option 1, then did you last buy your Parker Pen?
_______________________________________________
16. From where did you buy a Parker Pen?
School stationery shop College stationery shop
Stationery shop Kiranawala store Others
17. What is your attitude towards 'Parker'?
Insist Prefer Intend
No opinion Unaware Reject
18. How do you rate a Parker Pen on various factors that is given below? Please
give ranking on a scale of (1-10) wherein, 10 is the highest and 1 is the
lowest.
Factors Ranking
Writing Performance ______
Design/Style
Brand Name
Reliability
Comfort
Place
Flow
Light Weight
Fine Tip
Premium
Any other (please specify
______
______
______
______
______
______
______
______
______
___________________________
19. In your ideal pen, what all factors do you keep in your mind? Please give their
ranking on a scale of (1-10) wherein, 10 is the highest and 1 is the lowest.
Factors Ranking
Writing Performance ______
Design/Style
Brand Name
Reliability
Comfort
______
______
______
______
Place
Flow
Light Weight
Fine Tip
Premium
Any other (please specify
______
______
______
______
______
___________________________
20. Have you seen any advertisement of Parker?
Yes No
21. If yes, then on which medium have you seen/heard the advertisement of
Parker Pen?
Television Newspaper
Radio Magazine
In shop (posters/ banners/glow signs etc.
22. Who stars in Parker Pen advertisement?
Amitabh Bachchan Shahrukh Khan
Aamir Khan Hrithik Roshan
23. At what price is a Parker available?
Rs. 25 Rs. 50
Rs. 75 Rs. 100
Above Rs. 100
24. Give your preferences in terms of agree or disagree to the following statement
concerning the 'Parker Pen'.
Statement Agree Disagree
Makes high quality pen
Gift which can be appreciated
Well established reputation
Pen that makes impression on others
Attractive appearance
Is well made
Good craftsmanship
Stylish design
Makes technologically advanced pen
Specialist in fountain pen
Best writing performance
Good value for money
Wide variety of pen
Pens with new idea
I am an achiever in life
I am noticed by my friends
I like to flaunt it
Inexpensive pens
25. If you do not get a Parker pen in an outlet do you
Go to another shop
Buy any other brand _______________ (specify which one)
Request the shopkeeper to get it
--------------------------
Name of the Respondent:
Sex: Male Female
Age
Below 14 years 14-18 years
19-22 years 23-27 years
Above 27 years
Occupation:
School student College student
Private Company Employee Professional
Consultant Teacher
Others (Specify) ______________