( 1 )

Marketing Report

On

Luxor International Pvt. Ltd.

Session 2011-2013

Submitted To: - Submitted By:-

Mr S. Suresh Shikhar (11609115)

Assistant Professor Shravan (11609116)

ShubhraAgarwal (11609117)

Sneha (11609118)

Swati Gupta (11609119)

Saurabh (11609120)

Jaypee Business School

A constituent of JIIT Noida

( 2 )

Table of Contents

Executive Summary

1. Company History

2. Industry Structure

3. Environment

4. Products

5. Price

6. Distribution Network

7. Promotion

8. Customer Survey Analysis

9. Suggestions

10. Appendix

a. Sample Customer Questionnaire

b. Sample Dealer Questionnaire

c. Bibliography

( 3 )

Executive Summary

The purpose and the scope of the document are to study, analyse and understand the business

and marketing practices of Luxor International Pvt. Ltd. In order to achieve this objective,

two stages were identified- Data collection stage and Analysis stage. The first stage includes

data collected from various sources such as:-

1. The Origin, History of the company, its growth, the board of Directors, Operations

units in India and overseas.

2. Few closest competitors in the industry of Writing Instruments- Linc, Reynolds,

Rotomac, Montex, Cello, their origin and growth.

3. Financial statements of the company.

4. Information about the 4 P‟s of marketing.

5. A customer and dealer survey to understand their decision making process.

The analysis stage includes understanding the implications and relevance of data

collected and drawing conclusions about the company‟s business and marketing

decisions.

Luxor Group of Companies, headed by Mr D K Jain, President of the

Company, started manufacturing writing Instruments in India in the year 1963. Today

LUXOR is the brand leader in Indian Writing Instrument Industry, having market share of

over 20 percent with an excellent network of dealers and distributors. Luxor was formed in

the year 1991. As of today Luxor is a leading manufacturer and exporter of Writing

Instruments from India with over 15 percent of Export Market Share with its 4 manufacturing

facilities in New Delhi and 3 at Bombay, employing over 600 people.

Luxor is committed to produce quality Writing Instruments to the total satisfaction of

its customers. It is the policy of Luxor to develop and supply innovative products meeting the

customers‟ requirements from time to time. The company realizes that this shall be achieved

only through continuous upgradation of technology, team work, motivation of employees and

participative management. Apart from ISO-9002 standard, Luxor products also conform to

DIN quality for ball pens series and for the entire marker range. Also Luxor‟s Children range

colouring pens and fluorescent markers conforms to ASTM regulations for U.S.A. Market

and are NON-TOXIC.

Luxor has well-qualified Engineers in its R&D Department who constantly research

and develop new products. Also the company has own Designers for metal ball pen and gift

sets. Luxor has in-house technology to manufacture nylon fibre nib, synthetic filters and

custom design automatic assembly machines. Luxor is equipped with its own Fibre Nib Plant,

Reservoir Plant. Luxor has its own lacquering Plant for metal pens and in-house assembly

machine designing for its products and metal products development cell apart from automatic

jumbo metal refill plant.

( 4 )

Luxor was the first to introduce many new technologies in the Indian Market i.e.

Pigment Fluorescent Highlighters, Xylene Free Markers, Ceramic Roller Pens, Needle Point

Pens, OHP pens etc. Luxor is the first company which is recognized by the Government of

India as an Export House Manufacturing and Exporting Quality Writing Instruments to over

45 countries all over the World. Luxor also bagged another first the coveted ISO-9002

certification for unsurpassed quality of its products.

Luxor International Pvt. Ltd.

Company History

Founded in 1963 by Mr. D.K. Jain, the Luxor Group has emerged as the undisputed

market leader in the writing instruments industry – both in India and abroad. During the

journey spanning nearly five decades, the Group has relentlessly pursued an upward growth

path and our long-term goal of building a globally acclaimed, well-diversified conglomerate

is turning into a reality.

Stepping Stones to Success

What started as a small venture in the crowded

lanes of Old Delhi, has evolved into India‟s No. 1

manufacturer & exporter of writing instruments –

operating 10 state-of-the-art facilities in NCR-Delhi &

Mumbai and producing more than one million pens a

day. Today, Luxor products enjoy unrivalled patronage

not only in India but in more than 75 countries across

the world. In a survey conducted in 2004, Luxor has

been declared an Indian Super brand, the only company in the writing instrument industry to

be bestowed this honour.

In the five decades since its inception, the Luxor Group has been continuously raising

the bar in technological competence and gaining recognition as a

leader and innovator. Under Mr DK Jain‟s able guidance, the

company started producing home-grown Indian pens using backward

integration and leveraging the most advanced technologies. The

Group currently manufactures a wide array of writing instruments,

stationery and accessories – catering to an extensive range of

consumers with diverse preferences. The Luxor brand is a registered

trademark in more than 120 countries and belongs to an exclusive

club of top 101 brands hailing from various industry segments in

India.

The Luxor Group pioneered fibre-tip and roller ball pens in

( 5 )

India way back in 1975 – creative innovations which instantly caught users‟ fancy for their

superior performance, great convenience and distinct style. In 1982, the company joined

hands with Pilot Corporation of Japan and brought the Pilot „hi-Tec‟ needle point pens to

India. Another major breakthrough came in 1986 as Luxor introduced permanent markers,

dry safe ink markers and fluorescent highlighters to address the diverse requirements of its

global clientele. The company offers a dazzling array of products to meet the sketching,

drawing and colouring needs of junior citizens.

Bringing in the Brand Edge

The 90s were significant in more ways than one as the Luxor Group continued to

thrive even in the face of fierce competition from large multinationals and leading

international brands. In a bid to ensure incremental growth, the Group choose to re-invent

itself and opted for a three-pronged strategy including modernisation, exports expansion and

tie-ups with coveted international brands. In 1980, an exclusive international business

division (Luxor International) was set up to promote and sell the Luxor Brand far beyond

Indian boundaries while the Group decided to bring under its umbrella some of the most

famous foreign makes to serve a vast and quality-conscious Indian consumer base.

Keeping in mind the resounding success of the Luxor-Pilot tie-up, the Group decided

to follow the same strategic approach with Brand Parker in 1996. PaperMate (1999) and

Waterman (2003) followed suit and the Luxor Group now acts as their preferred business

partner in India, holding the manufacturing and marketing franchise.

Positioned as premium lifestyle accessories instead of everyday utility item, the

Parker & Waterman from the House of Luxor remain the preferred choice of the upwardly

mobile. Celebrity endorsements were also sought to

promote these high-end writing jewels, and legendary

movie star, Amitabh Bachchan, was signed up as the

Parker brand ambassador. Never an organisation to rest

on its laurels, the organisation has further

conceptualised the Louis Charron range in 2006 – an

exclusive collection of designer pens coveted by the

discerning. Luxor also plans to unleash a range of

accessories, such as key chains and wallets, under the

same brand.

Diversification Drive

Taking forward its unbeatable saga of excellence and total customer commitment, the Luxor

Group today is diversifying into various fields. From Hospitality and Real Estate to Retail, the

ventures are many and the new initiatives are working out well to propel the Group to greater

heights.

In 2002, Luxor acquired the ITDC-promoted Qutub Hotel in the Capital city of Delhi

and diversified into Real Estate development a year later. Luxor tied up with leading

( 6 )

technology firms in 2005, in a bid to make foray into the fibre optic & broadband segment.

Retail is another focus area and a chain of company-owned Luxor Signature outlets are being

set up across the country for showcasing the entire range from the house of Luxor.

What Sets LUXAR Apart

Over the years, the Luxor Group has been bestowed numerous Awards and Certifications

for Quality, innovation and product design. The Group lays great emphasis on Research &

Development to bring the best writing solutions to its vast customer base while leveraging

cutting-edge technologies and best industry practices to enhance product quality and

performance. Luxor‟s unfailing commitment to Quality has been further endorsed by a series

of ISO certifications which ensure flawless compliance with international standards. The

company also takes greatest possible care to ensure the safety, health and welfare of its staff

and the communities living around its facilities. Luxor‟s fundamental purpose is to cherish

the vision of growth in established and new domains, and foster sustainable & integrated

growth. With an impressive past and a powerful present to guide it forward, the Luxor Group

is all set to build upon its achievements in the years ahead

BOARD OF DIRECTORS

D.K.Jain – Chairman & President, Luxor Group

As the Chairman and President of the Luxor Group, Mr. D.K.

Jain has established a “Super Brand” and guided the company

to great heights. Under his able leadership, a strong

foundation has been laid for Brand Luxor‟s exponential

growth and the business house has emerged as India‟s leading

manufacturer and exporter of premium writing instruments.

Luxor has maintained its position as India‟s No.1 Exporter of

writing instruments for the sixth consecutive year – a rare feat

as the brand has never failed to be recognised, purchased and

valued across the globe.

( 7 )

Usha Jain Pankaj Jain Priya Jain

Director & Chairperson Director Director

Luxor International Luxor Writing Instruments L.P. Pens Pvt. Ltd

V K Jain Pooja Jain

Director Executive Director

Luxor International Luxor Writing Instruments

( 8 )

Industry structure

The Pen market across the world is Rs 50,000 crore and in India market is only Rs 1500

crores and growing at the rate of 9 per cent. The pen Industry plays an important role in the

economy of India.

The pens industry in India had passed through various phases with the changing tastes and

preferences of customers. Established in 1963, Luxor had emerged as one of the leading

companies in the pen industry. According to analysts, Luxor's marketing mix helped it to

capture a sizeable share of the industry. They also felt that Luxor's 50-50 joint venture with

Gillette Company in 1996 helped it to strengthen its position in the industry. After entering

into the joint venture, Luxor was renamed as Luxor Writing Instruments Private Limited

(LWIPL).The attractive design of the pen and the superior technology (it had a liquid ink

feeder system),promotional techniques used contributed to the success of the brand.

Till the late 1970s, only two categories of pens existed in the Indian market - fountain and

ball point pens. Moreover, people preferred fountain pens, as it was perceived to write better

compared to the ball point pens.

Apart from domestic manufacturers, who manufactured fountain pens on a small scale and

sold them at cheaper rates, branded fountain pens manufactured by leading international

players such as Monte Blanc, Cartier and Parker were available in India through the grey

market. However, owing to their high prices, not many people could afford to buy them.

Camlin Limited was among the noted fountain pen makers in India during that time.

By the late 1970s, fountain pens started loosing their popularity as people found it

cumbersome to refill the ink regularly.

The 1980s witnessed an increased acceptance of ball pointpens and Wilson Jotter was

considered to be the market leader in this segment. The market for ball point pens was also

dominated by domestic players in the unorganized market.

In 1982, Deepak Jain, managing director of Luxor Pen Company (Luxor) entered into an

agreement with the Pilot Corporation of Japan to officially launch Pilot pens in India.

In 1984, Suraj Mal Jain5 started a manufacturing unit for ball point pens and refills in

Kolkata and named it as Linc Writing Aids Private Limited. The company launched new

varieties such as disposable pens into the market.

In 1986, the French pen company, Reynolds entered the Indian market through its subsidiary,

GM Pens International Limited by setting up a manufacturing plant at Chennai. It used the

latest technology to make pens and refills of better quality and offered them at an affordable

price. The Reynolds 045 pens became very popular among the regular pen users; especially

among the school and college students.

Until the late 1980s, the focus was more on pricing and distribution not on promotion. Pens

were manufactured in large volumes, and were priced competitively. By 1990, 90% of the

market share in India was held by unorganized players.

In the late 1990s, the pen industry witnessed several developments. The varieties of pens

( 9 )

available in the market increased significantly. The new range of pens introduced included

Fibre Tip Pens, Gel Pens, Roller Pens and Marker Pens.

A marked change was also noticed in the attitude of people, and they became increasingly

brand conscious. Companies started focusing more on promotion and distribution. Pens were

manufactured in large volumes, and were priced competitively.

In 1996, Luxor's 50-50 joint venture with Gillette Company helped it to strengthen its

position in the industry. After entering into the joint venture, Luxor was renamed as Luxor

Writing Instruments Private Limited (LWIPL).

The attractive design of the pen and the superior technology (it had a liquid ink

feeder system), promotional techniques used contributed to the success of the brand.

The fact that LWIPL was a debt-free company was another significant achievement.

By early 2002, Luxor Writing Instruments Private Limited (LWIPL) had emerged as the

market leader in the premium pens2 segment in India, with a market share of 60%. The

company held a 10% share in the writing instruments industry, next only to the market leader,

Reynolds that held 12% .some of the most popular brands in the Indian pen market comprised

of domestic brands such as Cello, Rotomac, Kores, Today's, Montex and Add pens and

foreign brands such as Mont Blanc, Flair (with Pierre Cardin), Uniball and more. Consumers

now had a wider choice, both in terms of different variety and the number of brands

available. LWIPL offered a widest range of pens with leading brands including Luxor, Pilot,

Papermate and Parker. In December 2002, LWIPL launched the world renowned 'Waterman'

brand of premium pens in India. This was possible after LWIPL's acquisition of a 50% stake

in the Indian operations of Newell Rubbermaid. The company planned to sell imported

'Waterman' pens for the next couple of years and then start indigenous production for these

pens. The price of these pens ranged between Rs.3, 500 to Rs.50, 000 and was made available

in nine sub-brands. LWIPL planned to sell these pens to corporate customers.

According to the 2001-2002 figures, the writing instruments industry in India was worth

approximately Rs.15 billion. Studies on the industry had revealed that there were around

fifteen organized players, which included both domestic and international companies and

more than 600 unorganized

Though, in the past, unorganized players accounted for a sizable share of the industry, their

share had decreased significantly from around 90% in 1990 to just 20% in 2002. The studies

also revealed that the companies in the organized sector were putting efforts in offering good

quality products at competitive prices. At the same time, impetus was given to increase the

visibility of their products in the minds of target customers. Pens market in India recorded a

value growth of 82% Survey done by the India‟s leading market information providing

company „AC Nielson‟ on pen market in year 2006. They come to know that ballpoint pen is

still a market leader by acquiring a large portion of the market. There is a ratio of 72% to 28

( 10 )

% for ballpoint to gel respectively. In urban areas about 10.9 lac. Of stores are selling pen, in

the selling year of 2005-06 itself recorded a growth of 23%.

( 11 )

ENVIRONMENT

ROTOMAC

ROTOMAC GLOBAL PRIVATE

LIMITED, Formerly Rotomac Pens

Private Limited belonging to VIKRAM

KOTHARI ENTERPRISES, was

incorporated in the year 1992. The

project was conceived with an objective

to provide a good quality and

economically priced ball pens in the

market.

Mr.Vikram Kothari has been recognized

for his contribution to Indian Industry.

To salute his entrepreneurial excellence

and exemplary contribution to Indian business, he has been awarded by Hon‟ble ex-Prime

Minister Shri Atal Behari Vajpayee, with the best Exporter Award, awarded by FIEO – in

conjunction with Union Ministry of Commerce, Government of India.

Mr. Kothari also heads Rotomac Exports Pvt. Ltd., Kothari Foods and Fragrances, Crown

Alba Writing Instruments, Mohan Steels Limited, RFL Infrastructure Pvt.Ltd. & Rave

Entertainment Pvt. Limited besides branching out into booming real estate developer and

building business at Kanpur, Lucknow, Dehradun & Ahmedabad.

Reynolds

G.M. Pens International Pvt. Ltd. is the exclusive licensee

of Reynolds, France, in India and the SAARC countries.

Headquartered in Chennai, G.M. Pens has pioneered the

writing instruments revolution in the Indian market.

Commencing operations in 1986, G.M. Pens introduced to

India, international quality writing instruments, and

marketed them under the brand name Reynolds. It was also

the first company to build a brand in a category that

behaved more like a commodity till then. The company's

products are available in 3, 00,000 retail outlets across India covered through a network of

2500 redistribution stockists and 27 main stockists. This is facilitated by a sales and

marketing team of over 300 professionals.

( 12 )

Cello

Cello Writing Instruments. The makers of India's favourite

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 ranges 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 a

Cello a Cello.

India is an extremely competitive Rs

1200 crore (US$272 million) market

for plastic moulded writing

instruments and Cello is the

undisputed leader, presently

manufacturing 4.2 million pens per

day, with an installed capacity of 4.5

million pens per day. A colossus

towering over the rest, Cello has

well over 33% shares in the

domestic market and Rs 400 Crore (US$90.9 mn) turnover. Cello has been achieving

unrivalled growth rates of 12% p.a. in the domestic market and exports growing at 60%

contribute 14% of the domestic turnover. Thanks to the cutting edge technology, vast range

of innovative pen across every price point, unparalleled consumer reach and strong brand

equity, its really no wonder Cello today sells nearly 4.2 million pens a day, every day.

Cello has India's largest range of smart looking, high-

performance gel ink and ballpoint pens in different ink colors

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 every one. 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

Techno tip XS that the college going crowd vouches for. From

( 13 )

the ever-dependable Cello Finer, Pointec and the stylish Cello Powermaxx that has become

the working professionals' most preferred to the Cello Sapphire, Paper soft 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 is now poised on the verge of an exciting new leap forward, with an ambitious

diversification plan that will propel Cello well beyond the realm of pens and writing

instruments. Cello's foray into notebooks, office files (stationery products) pencils, desktop

accessories, OHP & CD markers and mechanical pencils will lead to enormous growth in the

coming years...

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.

Todays

Today's Writing Products Ltd - the makers of India's popular pen brand

"Today's Pens"; is a multi-faceted, million dollar company with interests in Writing

Instruments, Office Supplies, Petrotech and Construction businesses.

Today's Pens is an internationally acclaimed Manufacturer & Exporter of High Quality

Plastic Ball Pens, Plastic Gel Pens and Refills SINCE 1986.

Today's Pens is a fully integrated writing instruments company with In-House Designing

capability Mould making unit, Tips making unit, Refill making unit (Gel & Ball), Injection

Molding and Assembly.

At Today's, innovation is not just a guiding

philosophy; it is a key business process focused on

consumer needs. Today's offers one of the largest

range of pens offered by any manufacturer in India, all

conforming to the highest global standards. The result

of a well-equipped assembly line with over 100 ultra-

sophisticated injection molding machines and a highly

trained and dedicated work force of over 1000 people.

We have a manufacturing capacity of over 3 Million

Pens (3000000) per Day. Today'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. This makes Today's Pens a favoured business partner.

Today's Pens is also best known and appreciated worldwide for their Originality of Designs,

Quality, Affordability and their Ease of Writing.

( 14 )

Today's has India's largest range of smart looking, high-performance gel ink and ballpoint

pens in different ink colors 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 "Today's" for everyone.

Today's Pens is present in - India, Sri Lanka, Bangladesh, Pakistan, U.A.E, Turkey, U.K.,

U.S.A., Philippines, Italy, Malaysia, Japan, Syria, Africa, Poland, Thailand, Egypt, Iran,

Yemen and more.

We are looking out to expand our Global Operations, and invite Distributor Partners for every

market.

Flair

Flair, being the leading exporter of fine writing instruments from the Asian continent,

commenced its success story 4 decades back with an exclusive range of fine writing Metal

Pens under the able guidance of Mr. K. J. Rathod, the visionary & President of Writing

Instruments Manufacturer

Organization, India.

During the era, Flair has ventured

into various territories by the

efforts of Mr. V. J. Rathod, the

financial mentor of the group,

who has also served a successful

tenure as Chairman of Plastics

Export Promotion Council, India.

Today the new generation is

heading the group and taking it to

astonishing heights of success

with the pragmatic but futuristic

approach, where Mr. Rajesh

Rathod is promoting the brand

Flair in all the continents whereas

Mr. Mohit Rathod &Mr. Sumit

Rathod are busy capitalizing the

domestic market & developing

new terrain of business.

Flair attributes innovation & commitment to quality as it core competence. These

competencies have made Flair one of the ace manufacturers of complete range of writing

instruments from India. Thus, today it is exporting to more than 75 countries across the globe.

Flair has expertise for OEM business as well, and its clientele includes most of the major

brands from the field of writing instruments.

Flair, being an ISO 9001:2008 & SA 8000:2008 certified company, abides to all the global

guidelines. Flair has joint venture & tie ups with some of the pioneers of the writing industry,

and 3 of its own brands FLAIR, LANDMARK, and RUDI KELLNER are conquering the

whole world.

( 15 )

Flair's product assortment includes Plastic Ball Pens, Gel Pens, Metal Ball Pens, Roller Pens,

Fountain Pens, Gift Sets; Refills & Water based writing instruments such as Markers, Hi-

lighters, and Permanent Markers & Correction Pens. So, with the complete range of writing

instruments, we welcome you to

experience fine writing from the house

of Flair.

Linc

Linc Pen & Plastics Limited was

incorporated on October 24, 1994 at Calcutta

in West Bengal with the main object of

manufacturing and dealing in all types of

writing instruments and other plastic molded

goods. The company has obtained certificate

of Commencement of Business on 7th

November, 1994.

In the year 2001 Company has launched Uniball-165 eye needle point, a roller pen, into the

Indian market. The Company has launched Linc Tipgrip, a trendy ball pen with a rubber grip.

Linc Pen & Plastics Ltd., one of the leading manufacturer and exporter of quality writing

instruments in India for more than 30 years, we also having our own retail outlets of

stationery, office accessories & writing instruments with in India. This type of outlets is not

available in India earlier.

We are also importing ball point pens, roller pens, mechanical pencils &stationery items from

mainland china and other territories for Indian markets.

We are exporting our owned manufactured pens to more than 30 countries. Few of them are

Wal-Mart, pound land, whsmith, tesco.

Our production capacity of various types of pens per day is around 1600000 pcs (complete)

and spare refills around 400000 pcs.

( 16 )

Products

The Luxor Group, India‟s only Super brand in writing instruments manufacturing & exports,

has scripted a saga of success over the past five decades and made its mark in both domestic

and international markets. Exquisite, stylish and technologically advanced, each Luxor

creation is a delight to experience and a pride to possess – penning the word power with ease

and grace. Be it young kids or go-getter university blues, busy executives or cream corporate

– the company has a writing charm to suit every style and flair.

The World values the magic of Brand Luxor – the ingenuity & innovation, care & efforts,

which help craft every precision tool. And the Group has brought under its umbrella the

Fabulous Foursome – Pilot, Parker, Waterman and Paper Mate, to win the hearts of

discerning Indians. Luxor holds the manufacturing and marketing franchise of these world-

famous brands in India and brings to you the best-ever lifestyle writing tools which speak of

class & elegance. Think Luxor when it comes to quality and style. It‟s a brand that inspires

customer confidence and builds a lifelong bond.

Tech Ink

LUXOR

Birth of an Indian Super brand

A vision to provide truly home grown

writing instrument for each occasion to

each individual gave birth to brand Luxor

in 1963 - India‟s first writing instrument

brand. Luxor brand was built on the

fledging nation‟s desire to be seen as self-

reliant. Luxor pioneered fibre-tip

technology fine liners in 1975 and

subsequently roller-ball pens in India and stylised them to meet the diverse

requirements of varied market segments. Luxor was not only the first Indian

manufacturer to introduce high-tech markers for various applications, but had also

invented Dry Safe Ink Markers – so that these special

pens could be left uncapped for hours without the ink

being dried up.

Celebrity Endorsement

If style is the man, the craft of fine writing comes

naturally. To bring home the point even more effectively,

( 17 )

Luxor set the trend for celebrity endorsement in the '60s – signing up movie stars,

sportsmen and other famous personalities to promote the Luxor range of writing

instruments. Most of these were not paid endorsements though, as star-appeal was not

the be-all factor in the early days of mass advertising. . Luxor‟s Ad campaigns of the

early years stated: For the first time in India, and the “hit home” approach went well

with Indian consumers – laying the foundation for Luxor‟s exponential growth in the

'70s and '80s.

Luxor for All

Luxor has a complete range of metal pens under the brand

name Metallz; ball pens& gel pens for the mass segment and

a complete range of colouring solutions for the kids under

the brand name of Luxor Junior. Attractive packages in

many-hued shades make the non-toxic Luxor Junior products

all the more appealing for the junior citizens.

The sound reliability and impeccable quality of its varied

product range have helped Brand Luxor to win the trust and

love of masses over the years and Luxor is continuously

striving hard to build further upon its legacy.

PARKER FUNCTIONAL

Launched in 1996 in India, Parker soon caught the fancy of the

nation. Today it is available in more than 30000 outlets. Parker has

also been voted unanimously by consumers as one of the most

trusted brands in India, (Reader‟s Digest Most Trusted Brands

Survey - 2006).

Parker has served professionals flawlessly for decades now, with

writing solutions that combine reliability, durability, and timeless

style. These qualities are also embodied in the choice of its brand

ambassador Mr. Amitabh Bachchan, an icon himself.

Parker functional range consists of four families:

BETA - Pens at an affordable price. Young, Dynamic,

Youthful and Exciting Beta. Available modes – Fountain

pen, Roller Ball and Ball pen.

VECTOR - Pens that appeal to a wide range of age groups.

Perfect for those who want choices, options and selection.

Available modes – Fountain pen, Roller Ball, Ball pen

and Pencils.

JOTTER -Available in two modes – Roller Ball and Ball

pen, Jotter is a reliable and affordable functional working

tool for all ages.

REFLEX -Comfortable, modern and innovative pen in

Parker with elongated “comfort grip”. Meets the needs of

( 18 )

the next generation. Currently available in Ball Pen mode.

Parker accessories are the backbone of the entire range of Parker pens.

PARKER PREMIUM

Indulge in your passion to possess a Parker Premium and take a closer look at the nine major

categories available for your selection:

Duofold

A fountain pen with a most distinguished look,

Duofold blends modern technology with

outstanding craftsmanship and stylish elegance –

greatly appreciated by the rich and the famous.

Available in 23k gold or rich white platinum

trims, this precision-crafted writing wonder

remains a prize possession for its aesthetic appeal

and enduring qualities.

Parker 100 A perfect combination of understated opulence and sharp, individualistic style. The

nickel palladium trim and a rhodium-plated 18k gold nib make it the embodiment of

Parker‟s distinguished legacy and vibrant future – juxtaposing the classic and the

contemporary, the conventional and the avant-garde.

Sonnet

The Sonnet line possesses a sophisticated harmony, synonymous with success and

distinction. Its uniqueness lies in its balanced style and classic dimensions. Each

Sonnet remains a distinct mark of your confidence, a bold statement of your belief

and a companion for lifetime.

Latitude

The classic elegance and non-conformist looks are firmly supported by the unrivalled

quality of the Parker brand. Clean and simple, the Latitude is a refreshing breakaway

from the traditionally ornamental writing instruments. Go for this modern minimalist

design to accent a truly individualistic style.

Rialto

A beautifully crafted veneer of taste and tradition surrounds the Rialto‟s smart and

sleek contour. It is the ultimate embodiment of distinction, grace and charm –

appealing to the connoisseur within.

Insignia

A classic accessory for the quietly discerning, Insignia offers a precise combination of

authentic quality and effortless style – skilfully captured in a distinctively slender

build and refined finishes. Clearly special, clearly Parker!!!

Frontier

Frontier is conservative and forward-thinking – exploring new horizons yet never

losing sight of its foundation. The soft-touch grip and exquisite finish give the pen it‟s

distinctive, contemporary build combining style with value, and reliability with

innovation.

( 19 )

3 In 1 XL A practical, twist-action ballpoint pen with a wider body – fitting easily in any grip.

Designed to provide everything a modern user might need from a simple, elegant

model.

Dimonite

Fresh and sophisticated with a subtle, futuristic look. Just perfect for the young and

urban user with an eye for the elegant and the aesthetic.

WATERMAN

A prize possession of the rich and the famous, the achievers and the aspiring, the complete

range of the premium French pen brand has been brought to India by the Luxor Group in a

bid to serve the niche market of the discerning and the

connoisseurs.

Ingenuity and innovation mark the birth of the first

refillable fountain pen as Lewis Edson Waterman

invented a radical inbuilt ink supply in 1883 and

changed the art of pen craft forever. The coveted brand

won the medal for excellence at the 1900 Paris World

Exposition and kept its date with history when the

British Prime Minister David Llyod George signed the

Treaty of Versailles with a Waterman. Today,

Waterman stands for a unique blend of heritage,

aesthetics and technology – a lifestyle product valued for its sophistication and exclusivity.

The top-of-the-line gold and sterling silver range on offer includes:

Serenite

makes an elegant impression with an 18 carat gold

rhodium-plated nib for writing, which is a pure

sacred gesture.

Edson

Named after Lewis Edson Waterman, its 18-carat

solid gold nib makes writing a pleasure and a

majestic experience.

Man 100 A true testimony of the goldsmith‟s exquisite art and

a unique blend of luxury & refinement, each one are

numbered. Available in fully hallmarked 18-carat

solid gold or sterling silver with an elegantly

guilloche-engraved barrel and offers outstanding

technical precision.

Exception

From purity, balance and graphic impact of the square concept comes an

Exception…The very first quadrangular lacquered writing accessory.

CARENE Deluxe Featuring the power of a streamlined silhouette, the elegance of pure and fluid lines

and boasting an 18 carat solid gold nib set into the section. arene Silver Meridian is

( 20 )

illuminated with sparkling silver and delicate guilloche engraving, offering the

ultimate in contemporary refinement.

CARENE

Carene knows how to carry off intense yet subtle

colours. A satin lacquered barrel offers a truly

modern look complete with an 18 carat solid gold

niband golden trims.

Charleston

A design which takes you through space and time.

Its tapering form extends to an 18 carat solid gold

nib, streamlined clip and technical performance –

all a proven mark of its definite modernity.

Expert

With a generously proportioned barrel designed for a masculine hand, an exquisitely

bevelled button and a stainless steel nib that promises to be infallible, Expert offers

both originality and style.

Hemisphere

Both universal and manifold, Hemisphere combines gold or chrome with steel and

offers marble effect finishes with colors, matte or gloss black with gold.

PILOT

Pilot symbolises a pathfinder – paving the way for a

large ship, leading people through obstacles and

strengthening the spirit of camaraderie through tough

times. Since its creation in 1918, the world-renowned

brand of premium pens has been the guiding force and

preferred choice of connoisseurs across the globe –

helping writers sail with pleasure and ease, at the speed

of light.

Coveted worldwide for its superior quality, high level

of innovation and comfort of use, the Pilot brand was

first brought to India by the Luxor Group in 1982. The

first model to be officially launched in the country was the Pilot 05 micro tip range with

needle point technology. Sophisticated and affordable, these technologically superior,

revolutionary pens are designed to provide you with the best grip and the smoothest writing

experience. Pilot Hi-Tecpoint 05 pens feature a unique 3-dimple tip technology from Japan

for precision writing, 0.5 tungsten carbide balls for consistent line width of 0.3mm and a

writing length of 1500m, three times better than any other needle point gel pen.

LUXOR STATIONERY

Luxor Group - A trusted name in writing instruments has expanded its

heritage to the stationery arena also. Bringing fifty years of rich

experience and expertise to the branded stationery products industry,

Luxor group has accepted the challenge to provide total stationery

solutions to discerning consumers by creating, communicating and

providing stationery products and there by capturing value in a market

( 21 )

dominated mainly by local players. This has led to the launch of - a host of new brands viz

Luxor Excel, Luxor Star and Luxor Paste-ix for valued consumers.

Based upon its commitment towards complete stationery solutions School- Office-Luxor is

what the stationary brands try to reinforce through these brands.

TECHINK INDUSTRIES

Techink Industries is a leading manufacturer of writing inks in India. Techink

Industries is having its operations at Noida, India. It has a strong team of

experienced and qualified engineers and chemists supported by efficient

Administrative and Production staff. The core team has more than 25 years of

experience in manufacturing various types of inks used by leading pen

manufacturers of India. Today Techink can develop suitable ink for any type of pen.

Inks developed by Techink Industries confirm to EN-71 Part - III of European Standards and

ASTM (D) of USA. Techink product line includes - Colour Pen Inks, Permanent Marker

Inks, Highlighter Inks, Roller Ball Inks, and OHP Ink etc.

Techink has a tradition of strict quality control and standards. Because of which many

customers of Techink have designated the goods to 'No Incoming Inspection Zone' after

reviewing the quality of their supplies from Techink over a period of time.

Luxor products are exported to more than 75 countries, while the Luxor brand is a registered

trademark in more than 120 countries. Established in 1990 as the sole exports division, Luxor International has retained the Group‟s position as India‟s top Manufacturer-Exporter of

Writing Instruments for the past six years – revolutionising the writing instruments segment

and setting up benchmarks for other players. From exquisitely crafted, high-performance ball

pens, fountain pens and fine liners to robust markers & highlighters, mechanical pencils, gift

sets, sketch pens, crayons and water colours – the Super Brand‟s product portfolio includes a

wide array of creative innovations supported by a full-fledged R&D Department where

inventions and technology up gradation remain a continuous process. With this focus in mind

Luxor has inaugurated 100% Export Manufacturing Unit in Noida in 2006.

The Quality Creed

The Luxor Group‟s enduring commitment to Quality and Reliability has been further

endorsed by the prestigious ISO 9001:2000 certification for both its export and domestic

divisions. A company-wide TQM platform also ensures continuous improvement and total

compliance with global quality standards. Our children‟s range of non-toxic colouring pens

and fluorescent markers conforms to ASTM regulations for the US market while Luxor inks

have been tested and declared to be child-safe by the American Arts & Crafts Institute.

Furthermore, Luxor is the only ISO 14001 and OHSAS 18001 certified writing instrument

manufacturer in South Asia – implementing best-in-class Environmental Management and

Occupational Health & Safety Assessment Systems across the organisation and its state-of-

the-art facilities. At Luxor, safety is given paramount importance, and stringent safety &

occupational health programmes are in place to ensure the well-being of its employees.

( 22 )

Accolades

During its long and eventful journey, Luxor International has earned many a laurel in

recognition of its exports success. The company has won the Highest Exporter

Award (Writing Instruments) for the six consecutive years (2001-2006), bestowed by the

Ministry of Commerce, Govt. of India. Luxor International has also been conferred Two-Star

Export Trading House status by the Ministry of Commerce & Industry, and claimed

several Quality Awards from the Quality Circle Forum of India (Northern Zone, Delhi

Chapter). HSBC Gold Card Certificate was also awarded to Luxor International in

recognition of Best Performance and Good Track Record.

The Luxor Group thinks ahead of a volatile market, innovates best-quality writing solutions

on par with international standards and meets the myriad requirements of its rapidly growing

global customer base – so that the Group shall retain its leadership position as a

manufacturer-exporter of innovative writing solutions and script new success stories in the

years to come.

( 23 )

PRICING

LWIPL had launched its first brand in 1963 - the 'Artist' fountain pen. However, owing to its

small scale of operations during that time, the pens were made available only in Delhi and

surrounding areas. During the late 1960's, the Artist brand was renamed as 'Luxor.' In 1982,

LWIPL launched Pilot 05 micro tip pens with needle point technology.

Priced at Rs.10, this was the first model of Pilot pens to be officially launched in India. The

pens were manufactured at the Delhi plant of LWIPL. Though Pilot pens were available in

India prior to the launch, they were available only in the grey market. LWIPL invested

heavily to upgrade its technology to manufacture micro tip pens. These pens were launched

with the intention of bridging the gap between ball point and fountain pens. Micro tip pen

was similar to a ball point pen, with the ink filled within.

This turned out to be a unique selling proposition for Pilot pens and they were quite

successful as they were considered to be an ideal substitute for fountain pens. LWIPL was

able to sell 1, 00,000 Pilot pens in the very first year of their launch. However, the Pilot pens

launched initially were not refillable.

Due to the price conscious nature of middle class people in India, the concept of disposable

pens was not cherished for long. This prompted the company to launch a new, refillable

variant of these pens. LWIPL's pricing strategy was determined by factors such as the

demand for products, their brand image and the nature of the target audience. When Pilot 05

was launched in 1982, it was priced at Rs.10, and it was considered to be expensive at that

time.

However, in 1990, eight years after its launch, when the demand for these pens reached its

peak, Luxor sold them at Rs. 25 each. The price continued to remain the same till early 2003,

indicating the stagnant nature of its demand. On the other hand, Pilot V5 was priced at Rs.45

at the time of its launch. These pens were priced high due to its superior technology and the

brand image that Pilot pens enjoyed. However, after 12 years of launch, the price of these

pens had to be reduced by Rs.5.

In 1996, LWIPL launched Parker pens in India. Though Parker pens were popular in India,

they were available only in the grey market. Parker pens were primarily targeted at the upper

middle class consumers, senior level executives and bureaucrats. The initial range of Parker

pens launched included Sonnet, Rialto, Frontier, Vector and Parker Classic. The most crucial

decision for LWIPL was pricing. At the time of the launch, the prices ranged between Rs.90

to Rs.10, 000. Priced at Rs.90, the "Vector" brand of pens was the cheapest in the range.

Within four years, "Vector" became the largest selling Parker brand in India. During the

corresponding period, the price was increased to Rs. 140.

In 1999, LWIPL launched the 'Papermate' brand of pens in India. Papermate was the largest

selling brand in the US during that time. The brand strengthened the presence of LWIPL in

the low priced pen segment. These pens were primarily targeted at the school and college

( 24 )

students and were priced in the range of Rs 4 to Rs 13. The specialty of this product was that

they possessed the Lubrigude ink technology, which ensured that the ink did not leak, thereby

offering a comfortable writing experience.

In order to penetrate the Indian market, the company offered these global brands at lower

prices. For example, the Parker Vector roller pens were launched at $3 compared to $9 in

Europe. The Parker refills were priced at a rate of Rs.35 compared to $3 in Europe. Similarly,

LWIPL launched the Papermate pens at nearly 1/3rd of the price in the US. In 2000, LWIPL

launched the Parker Beta range, with prices ranging between Rs.50 to Rs.75.

Targeted at the youth, the company sold around one million pens within a couple of months

of its launch. In 2002, Parker pens were available in three broad price categories (Refer Table

I). By that time, the Parker range of pens had emerged as the largest selling brand in the

LWIPL pens portfolio, contributing 40% of its revenues. LWIPL also launched a series of

innovative products in order to mark certain occasions.

In January 2000, the company launched the "Millennium series" of Parker Vector roller pens.

These pens had the world map inscribed on them and their unique design enabled people to

determine the time difference between countries. Priced at Rs.250 each, these pens became

very popular.

In November 2001, LWIPL launched 'Special Moment', a gift pack consisting of Parker

Vector and Parker Beta pens, which had the signature of the brand ambassador, Amitabh

Bacchan in scripted on it. These pens were primarily targeted at pen collectors, who were

fond of Parker pens.

THE PARKER RANGE

MODEL PRICE RANGE (in Rs.)

BETA 50-75

VECTOR, REFLEX. 100-400

SONNET, RITALTO, FRONTIER 1000-5000

Source: ICMR

In February 2002, Parker launched the 'Black and White' range of Parker Vector ball pens

which were priced at Rs.145.each. In mid 2002, the company launched the 'Football Legends

World Cup edition' of Parker Vector pens in order to cash in on the popularity that the event

enjoyed. The pens had photographs of famous football stars such as Maradona, and Pele

inscribed on them. These pens were primarily targeted at avid football fans, who would be

interested in collecting pens bearing photographs of their favourite players.

In December 2002, LWIPL launched the "Gajgamini" range of Parker Sonnet fountain pens.

The limited edition of pens (only 500 pens were released) was named after the paintings

created by noted artist MF Hussain and also had his signature inscripted on them. LWIPL

priced these pens at Rs.5000 each.

( 25 )

DISTRIBUTION

In 1999, LWIPL launched the 'Papermate' brand of pens in India. Papermate was the largest

selling brand in the US during that time. The brand strengthened the presence of LWIPL in

the low priced pen segment. These pens were primarily targeted at the school and college

students and were priced in the range of Rs 4 to Rs 13.

The specialty of this product was that they possessed the Lubrigude ink technology, which

ensured that the ink did not leak, thereby offering a comfortable writing experience. As the

Parker pens were initially targeted at the premium segment and carried a high price tag, they

were launched only in the four metros - Delhi, Mumbai, Kolkata and Chennai. The pens were

made available in large stationary stores and point of purchase displays were attached a lot of

significance. These pens were put on display in special racks so that people could notice the

complete range of pens. As the demand of Parker pens grew, they were made available in

other urban areas of the country.

In order to increase the reach of Parker pens, the low priced versions were made available in

small stationary shops. LWIPL later opened exclusive outlets of Parker Pens in all major

cities in India. When LWIPL launched Papermate pens in India, it changed its distribution

strategy vis-a-vis that of Parker pens. The pens were targeted at a wider cross - section of

people, which included students, executives and elderly.

Apart from relying on its existing sales force, the company tied up with Indian Shaving

Products Ltd (ISPL) to distribute pens in the targeted one lakh retail outlets in the first year of

its launch. While the sales people concentrated on traditional retail outlets such as stationary

and bookstores, the tie up with ISPL ensured that the pens were available in FMCG outlets

such as shops and supermarkets. This multi-pronged distribution strategy enhanced the reach

of Papermate pens.

( 26 )

Promotion

Production of pens is increasing by the day. Being such a large country, it is very difficult to

build a brand with the population of 100 crore. So advertising has to be done to reach across

Assam, Kerala, and Sikkim etc. have to tell the people the brand is alive.

LWIL is continuously advertising to tell the people that Parker is here; Pilot is here, Amitabh

Bachchan is right here endorsing the products etc. Of course, marketing and sales play a very

important role, but advertising helps to give pull.

LWIL does many events because it is a direct way of reaching out to the consumer. Two

years, LWIL organized a painting competition sponsored by The Times of India, at Pragati

Maidan. Over 10,000 students attended the event. LWIL sponsored special prizes by Luxor.

If 10,000 students go home with Luxor pens, it goes to 10,000 families; multiply it by 4 -

around 40,000 people

see the pens.

Luxor also participated in The India International Trade Fair (IITF)-2002 at Pragati Madan,

where more than 7,000 companies participated. All their brands were showcased at the stall.

Their main objective was to showcase and promote our range of writing instruments - all

under one roof. It paid off, as they got an overwhelming response from this fair.

LWIL also holds several theme events to cash in on a current trend. To ignite the world cup

fever, Luxor came up with 'Catch A Ball' promotion, where they had renowned cartoonist

Sudhir Tailang designing packs that have cartoons of cricketers. With this promotion, cricket

lovers got a Beta Roller Ball Pen in new body colors like Orange, Black, Fluorescent Yellow

and Blue and a

cricket ball worth Rs 20 free.

LWIL brought out some other events in last few years like "Luxor Cricket 2003 pen". Priced

at Rs 145, this pen had a silver body with blue ink, the all-time favourite of Indian cricket.

Crafted with the cricket bat clip and cricket ball on the top of the pen, the entire schedule of

the world cup with complete details of the teams, the venue for the match's etc was printed at

the back of the packaging. The concept behind it was to capture the world cup fever and to

allure religious cricket followers

LWIL focuses a lot on marketing activities. LWIL introduced an exclusive deal this summer

with 'Summer Mega Offer Pack'. With a special assortment of writing instruments from

LWIPL's four popular brands - Parker, Pilot, Luxor and Papermate, this pack aims to target

the distributors and the customers through a unique offer. Priced at Rs 5115, it provides the

retailer greater value for money with an enhanced margin of 28% and a Yashica Camera

worth Rs 1305 free with the pack.

Some years back Luxor launched the "Jo Jita Vohi Sikander" Contest, a unique promotion

for traders. They would enjoy the benefits of the Club Parker membership wherein they

( 27 )

would receive direct communication from the company related to new products, exclusive

signage‟s, and discount coupons. They also gave traders an opportunity to win exciting

prizes like Samsung TV, Birla OTG, Moulinex Juicer Mixer Grinder and VIP Strolley, if

they achieved a certain

sales target.

LWIPL promoted its products primarily through advertising in the print and television media.

The company hired several advertising agencies in the past two decades. The first advertising

agency hired by LWIPL in the 1980s was 'Creative Works18', to promote its Pilot pens. In

the early 1990s, the company shifted to another agency, RK Swamy. In 1996, the advertising

account of Parker was awarded to McCann-Erickson19, while the Luxor and Pilot brands

remained with RK Swamy.

However, in 1999, when Papermate was launched, the account of all the brands in the LWIPL

portfolio was shifted to McCann-Erickson. In December 2000, the advertising account was

split again. Contact Advertising was given the charge of Luxor, Pilot and Papermate brands,

while Lowe21 was awarded the Parker brand.

However, in July 2002, the advertising account of Luxor, Pilot and Papermate brands was

also shifted to Lowe. As a result, Lowe was made responsible for advertising of all brands in

LWIPL portfolio. The theme of advertising differed according to the product brands. For

instance, the advertising campaigns for Pilot brand stressed on the unique features of these

pens.

During the 1980s, the advertising campaigns highlighted Pilot's dual features of a ball point

and fountain pen. In the 1990s, the campaigns stressed on the technology used in making

Pilot pens. The campaign created by Contact advertising in 2002, featured the famous

television actor Shekhar Suman22, who highlighted Pilot's 'three dimple technology23,'

which helped in smooth writing. In July 2002, LWIPL felt that the students' memory had to

be refreshed with respect to the Pilot brand.

An advertising campaign, 'Pilot - Reads well, Writes well' was launched. The campaign was

very successful and within six months, the sales of Pilot pens increased by 30%. Explaining

the advantages of Pilot pens, Pooja Jain, General Manager, LWIPL said24, "Today, the gel

fad is dying and the consumer is coming back to a more dependable and reliable proposition

for value for money, which Pilot offers.

Pilot is in fact perhaps the longest surviving and successful brand in the writing instruments

category as it writes four times more than any other needle point gel pen. Pilot contributes

15% to our total turnover." The Parker brand received maximum advertising support from

LWIPL. Commenting on the target audience, John Hadley, senior vice-president (sales and

marketing), LWIPL said25, "Parker's target group is the top 12 million families in India and

that gives us a big market any way you look at it.

( 28 )

Our aim is to provide a decent writing instrument

to Indians." In early 2001, LWIPL

roped in the famous film star and television icon

Amitabh Bachchan to promote the

Beta and Vector brands of Parker pens.

The primary reason for choosing Amitabh as a

brand ambassador was his popularity among all

groups i.e. children as well as elders and masses as

well as classes.

According to media reports, he was paid Rs 50

million for featuring in the advertisement. The ad

campaign was a huge success and had a high recall

among television watchers.

In 2001, LWIPL roped in Shekhar Suman to endorse the Papermate brand. The advertising

campaign highlighted its unique selling propositions such as trouble free writing, better

quality and the rubber body of the pen, which enhanced its grip. It also conveyed the message

of romance by highlighting the two heart shaped symbols, which formed a part of Papermate

brand.

Though the campaign attracted reasonably good attention from the viewers, it was not able to

generate the kind of sales that the company expected and hence in July 2002, the advertising

contract for Papermate brand was given to Lowe.

In December 2002, an advertising campaign was aired, which featured Papermate as

'Americas Largest Selling brand." Through this campaign, LWIPL made an attempt to retain

the American identity of the Papermate brand.

( 29 )

POSITIONING

LWIPL also made efforts to change the positioning of its brand, if necessary. For example,

when Parker pens were launched, they were positioned as a premium brand targeted at the

upper sections of the society, including senior executives, businessmen and so on. However,

realizing that young people could also be the potential buyers for premium pens, LWIPL

targeted its Vector brand at young executives and its Beta brand for the school and college

going students.

Explaining the necessity to change the positioning of the Parker brand, Sanjeev Goyle, Vice-

President, Marketing, LWIPL, said, "We want the Parker brand in the pocket of every youth.

To make this happen we've a two-fold approach: one, shift Parker's positioning from a

serious, daddy's pen to a youthful and vibrant brand; and second, give multiple price and

product options to address the entire section of the consumers."

In an interview with K. Jain - Chairman and President, Luxor Writing Instruments Pvt. Ltd.,

shares his thoughts on Luxor's brand positioning, the company's belief in below-the-line

marketing, and plans of expansion, consolidation and communication, with

exchange4media's Jasmeen Dugal.

Luxor is a special brand; we are not like our competitors who are producing pens everyday

and reducing prices. We are a branded company and have five brands - Luxor, Parker,

Papermate, Pilot and Waterman.

Our key differentiator is that we look at the pen business from the consumers' perspective.

Starting from a small child, what does he/she need? Colored pens and crayons. We produce

from that angle. A parent having three-four children must be economical in getting these

products, so we price the pens accordingly. Similarly, when the child goes to school, we see

the need of the student, whether it is a hi-tech pen or a specialized technology pen. And then,

similarly, we see what the middle-aged are doing, what the family needs and we go right up

to the top man of the country. Here, the range is expensive. Therefore, we see the economical

needs of our target audience and price the pens accordingly. Our pens range from Rs 1 for a

colored pen, Rs 3 for a ball pen and goes up to Rs 40,000 for a Waterman. If a rich man

wants to buy his wife a diamond, he can also buy her an Rs 40,000 pen!

Add Gel is the leader in the gel market, and Luxor is a new entrant. We have entered this

market quite late, as we wanted to introduce Gel Pens with the most superior technology at an

affordable price. The pen is priced Rs 8 and the refill of Gel One is priced at Rs 5, the

cheapest proposition in the gel market. Our strategy to break into the gel market is to give a

better product at a cheaper price.

Luxor has been very closely connected with the children segment. To strengthen its base

here, LWIPL has launched an extensive array of colour pens, crayons, sketch pens, tattoo

markers etc. In fact, Luxor is the only company in India that caters to the complete sketching,

drawing and colouring needs of children. The entire children's range is launched under its

sub-brand "Luxor Junior". All products and communication of Luxor children's range feature

a clown called Junior, which is one of the first Indian characterizations in the writing

instruments industry. Further strengthening its association with children, Luxor ran a month-

( 30 )

long promotion, "Buy, Choose, Tickle and Win" in association with McDonalds, IN 2003

where one could just walk into a McDonalds outlet and order a Happy Meal, with which one

gets a scratch card coupon. On scratching the coupon, children can win a range of prizes from

Luxor Magic Colour Pens to Luxor Crayfun Pens. Special sales counters were also set up at

select McDonald‟s outlets, offering a range of Luxor pens.

Moreover, Luxor has initiated a number of children's activities over the years. Be it

independent school activities or colouring contests, painting competitions, writing

competitions, colour splash, NIE Children's Film festival or Parker Voices of Tomorrow,

Luxor has always been a pioneer in

providing support to activities related to children.

( 31 )

Retailers Survey Analysis

QUESTIONNAIRE FOR RETAILERS

1) Do you sell stationary of luxar company?

Interpretation:- Interpretations: It is evident from the graph above that a majority of

retailers deals in Luxor products but there are around 27.6% of retailers who do not

sell Luxor.

72.4

27.6

Sellers Of Luxar

Yes

No

( 32 )

2) How would you rate performance of Luxor Company?

Interpretations: - Only a few percentages of users (12.9) found the products of Luxor

below average condition and rest rated it average or above.

0

10

20

30

40

50

ExcelentGood

AverageFair

Poor

19.5

44.3

23.3

10.9

2

Performance

Percentageof people

( 33 )

3) Are you satisfied with the promotional activities carried out by company to

promote their brand?

Interpretation: - The satisfaction level chart shows a nearly tied-up situation

between the satisfied and dissatisfied customers.

53

47

Promotional Activities

Yes

No

( 34 )

4) Who are the frequent buyers of pens?

Interpretations:-It is quite evident from the graph that the main target customers of

pen industry are the students and businessmen , servicemen and others are share a

very small portion of consumers of pen industry.

53

17 19

11

0

10

20

30

40

50

60

Students Service man Businessmen Other

Percentageof People

( 35 )

5) Maximum sales are for which brand of pens?

Interpretations:-It is very clear from the graph that Reynolds is the market leader

followed by Luxor. These both brands cover nearly about 50% of market and rest

50% is captured by Cello, Linc, Rotomac and others.

24

27 18.1

16.7

11 3.2

Sales

Luxor

Reynolds

Cello

Rotomac

Linc

Others

( 36 )

6) When people buy pens what among the following options do they prefer?(Rank as

per the priority)

Interpretations:-As per the graph it can be inferred that people want more by paying less as

most of the people are more price concerned rather than being quality concerned

57

4.2

8.2

10.6

20

Price

Quality

Refillable

Schemes

Looks

( 37 )

7) Maximum schemes are being offered by which brand of pens?

Interpretations:-As this states Luxor needs to have a look at the schemes provided by them to

improve sales as it is very clear from the previous graph that our customers need more by paying

less.

0 10 20 30 40 50

Reynolds

Cello

Luxor

43

24

33

Schemes Offered

PercentageOf People

( 38 )

8) Sales of pens are high during which period of time?

Interpretations:-It was quite predictable as in the previous graphs we saw that major consumers

are students and maximum sales are at the time of exams.

66

13

21

0

10

20

30

40

50

60

70

Exams Throught year new schemes

Percentage OfPeople

( 39 )

9) Any suggestion to the company out of your experience of selling our product?

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

( 40 )

QUESTIONNAIRE FOR CUSTOMERS

1) In which category do you lie?

Interpretations: The major users are the students who contributes to more than 50% and

then followed by the businessmen and servicemen.

0

10

20

30

40

50

60

StudentsBusinessmem

ServicemenOthers

52

22

17

10

PercentageOf People

( 41 )

2) Are you aware of all the brands of Luxor?

Interpretations: a majority of the section is unaware of the brands of Luxor nearly

65.2%

34.8

3.2

Awareness

Yes

No

( 42 )

3) How frequently you purchase a pen?

Interpretations: - A mixed opinion was observed in this graph as 37% people said

that they buy pens after more than a month and 36% of the people said they purchase

their pens once in a month.

36

23

37

4

once a month

once in 15 days

more than a month

beg/borrow/steal

( 43 )

4) Rank the remaining above brands of pens according to your preference?

i. Reynolds

ii. Luxor

iii. Cello

iv. Rotomac

v. Linc

Interpretation:- Above given are the ranks by the People.

( 44 )

5) Are you conscious of status while purchasing a pen?

Interpretations: - It is observed more than 50% of the users don‟t go for the status to purchase a

pen.

0

10

20

30

40

50

60

Yes No

44

56

Status Concious

PercentageOf People

( 45 )

6) From where did you come to know about the pen you use?

Interpretations:-It is quite evident from the graph that advertisements are the main source of

spreading awareness about various pens launched by any company.

0 10 20 30 40 50

Advertisment

Colleagues

Friends

Category 4

47

12

27

13

PercentageOf People

( 46 )

7) Are you faithful towards one Pen Company?

Interpretations: - 53% of the pen buyers didn‟t show the brand loyalty towards their pen

brands.

47

53

44 46 48 50 52 54

Yes

No

PercentageOf People

( 47 )

8) If yes then which?

Interpretations: - The major player seems to be Reynolds in the pen industry as most of

the buyers go for the Reynolds product which was followed by Luxor and then by other

players.

24

27 16.7

11

18.1

3.2

Luxor

Reynolds

Rotomac

Linc

Cello

Others

( 48 )

9) What price range pen will you prefer to purchase?

Interpretations: - The majority of buyers preferred to buy the pens ranging from 3 to

50 rupees which is an economy range as well as value for money.

0

5

10

15

20

25

30

35

40

45

50

`3 - `50 `50 - `200 `200 - `1000 more than`1000

47

29

16

8

Price Range

PercentageOf People

( 49 )

10) How would you rate Luxor pens on the basis of price?

Interpretations: - 18% of the buyer rated the Luxor pens as below average on the

basis of the pricing.

0 5 10 15 20 25 30 35

Excelent

Good

Average

Fair

Poor

23.6

30.8

27.6

14

4

Price

PercentageOf people

( 50 )

11) How would you rate Luxor pens on the basis of quality?

Interpretations: - The graph shows that 21% of the buyers rated the pens below

average on the basis of quality.

29

24

26

15 4

Quality

Excelent

Good

Average

Fair

Poor

( 51 )

12) Any suggestion to the Luxor Company to help us to serve you better?

__________________________________________________________________________________

__________________________________________________________________________________

____________________________________________________

( 52 )

Suggestions

According to analysts, the major reason for LWIPL's success was its focus on offering superior products to its

customers. However, in spite of LWIPL's current leading position, analysts felt that the company would face

tough competition in future from other leading brands such as Reynolds, Rotomac and Today's (Refer Exhibit I).

According to analysts, LWIPL lagged behind in tapping the full potential in certain categories. For example, in

the ball point pen category that contributed to around 50% of the total sales in the pen industry, LWIPL had just

5% share. Moreover, in the fast growing gel pens segment, the company had negligible presence.

Analysts also felt that excessive dependence on the Parker brand, which primarily catered to the premium

segment of the market, may not be fruitful for the company in the long run. But most importantly, analysts

seemed concerned about LWIPL's decision to diversify into the packaged food and hospitality industry.

In 2001, LWIPL established Hazel Foods Pvt. Ltd. with an intention to enter the packaged foods segment and

launched dry fruits and spices under the 'Hazel' brand. In 2002, Luxor Hotels and Resorts Pvt. Ltd. along with

the Hyatt group27

acquired Qutub Hotel in Delhi from the Indian Tourism Development Corporation28

(ITDC).The company also had plans to launch packaged water and enter into the convenience foods segment.

For packaged water segment, LWIPL planned to tie up with an international company.

The company also had plans to launch packaged water and enter into the convenience foods segment. For

packaged water segment, LWIPL planned to tie up with an international company.

Explaining the rationale behind these moves, D.K.Jain, MD of LWIPL and Vice Chairman of Luxor Hotels and

Resorts Pvt. Ltd. said29

, "Investments in categories which show promising potential for growth and family

interests" prompted this move.

Analysts felt that these industries demanded a different set of expertise and a totally different type of customers

to be catered to. They felt that due to unrelated diversification, it would be difficult for LWIPL to focus on the

writing instruments business, where its core strength lay.

( 53 )

Appendix

Sample Dealer Questionnaire

1) Do you sell stationary of luxar company?

a) Yes

b) No

2) How would you rate performance of Luxor Company?

a) Excellent

b) Good

c) Average

d) Fair

e) Poor

3) Are you satisfied with the promotional activities carried out by company to promote their

brand?

a) Yes

b) No

4) Who are the frequent buyers of pens

a) Students

b) Servicemen

c) Businessmen

d) Other Professionals

5) Maximum sales are for which brand of pens?

a) Luxor

b) Reynolds

c) Cello

d) Rotomac

e) Linc

f) Others(please specify)____________________

( 54 )

6) When people buy pens what among the following options do they prefer?(Rank as per the

priority)

a) Price

b) Quality

c) Refillable

d) Schemes

e) Looks of the pen

7) Maximum schemes are being offered by which brand of pens?

a) Reynolds

b) cello

c) Luxor

8) Sales of pens are high during which period of time?

a) High during exams

b) Stable throughout the year

c) when new schemes are introduced

9) Any suggestion to the company out of your experience of selling our product?

______________________________________________________________________________

______________________________________________________________________________

____________________________________________________________

( 55 )

Sample Customers Questionnaire:-

1) In which category do you lie?

a) Student

b) Businessmen

c) Servicemen

d) Others

2) Are you aware of all the brands of Luxor?

a) Yes

b) No

3) How frequently you purchase a pen?

a) Once a month

b) once in 15 days

c) more than a month

d) beg/borrow/steal

4) Rank the remaining above brands of pens according to your preference?

a) Reynolds

b) Luxor

c) cello

d) Rotomac

e) linc

5) Are you conscious of status while purchasing a pen?

a) Yes

b) No

6) From where did you come to know about the pen you use?

a) Advertisement

b) Colleagues

c) Friends

( 56 )

d) Retailers

7) Are you faithful towards one pen company?

a) Yes

b) No

8) If yes then which?

a) Luxor

b) Reynolds

c) Rotomac

d) Linc

e) cello

f) others(Please specify)____________________

9) What price range pen will you prefer to purchase?

a) `3 - `50

b) `50 - `200

c) `200 - `1000

d) More than `1000

10) How would you rate Luxor pens on the basis of price?

a) Excellent

b) Good

c) Average

d) Fair

e) Poor

11) How would you rate luxorpenson the basis of quality?

a) Excellent

b) Good

c) Average

d) Fair

e) Poor

12) Any suggestion to the Luxor company to help us to serve you better?

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

( 57 )

Bibliography

1. www.wikipedia.com

2. www.luxar.in

3. www.worldofluxar.com

4. www.luxorpen.com

5. www.parkerpen.com

6. www.lincpen.com

7. www.rotomac.com

8. www.rotomac.com

9. www.cellopens.com

10. ICMR DATA