INSTITUTE OF PLANNING & MANAGEMENT

Luxor Writing Instruments Pvt. Ltd.

Submitted To: Regional Business Manager (North)

Submitted By:Ajay VERMA (PGP/FW/2008-10) IIMS, Mumbai

REPORT ON THE STUDY OF MARKET STRATEGIES OF BALL PENS/GEL PENS BETWEEN THE RANGE OF Rs.3-Rs.15 WITH REFERENCE TO LUXOR WRITING INSTRUMENTS.

ACKNOWLEDGEMENT No task however small can be completedwithout proper encouragement. In this I am greatly indebtedto Mr. Sandeep Dawar for being of immense help to us andguiding me in the right track and giving constructivesuggestions during the entire internship. Mere words willnever be able to express the gratitude towards him, who notonly stimulated the idea of undertaking the project, but alsointeracted with me frequently giving valuable advice during critical stages of work.

My heartiest thanks goes to all people whom Ihave contacted, for their cooperation and responsiveness; namely Mr. Gora, Mr. Jha and many more people. I wouldalso like to take this opportunity for thanking Mr. Naveenfor his attention and guidance.

Finally I would like to be grateful to all thosewho directly or indirectly have been of great help and obliged me with their support and have helped me in converting mycollection of data and information into a finely polishedproject.

PREFACE This Report will help us to study the market potential oflower priced ball and gel pens between the range of Rs.3-Rs.15 with reference to Luxor Writing Instruments. In thisreport we will study the marketing strategies of these pens ofvarious companies that will help to extract informationregarding consumer tastes and preferences and thereby theavailability and the current position of Luxor pens in thisrange in the market .This would eventually help the companyto improve on existing marketing strategies and develop suchpens that have a positive correlation with existing customer tastes and preferences.

This report shall include the history, vision, value of Luxorwriting instruments, the marketing mix of the company in relation to other existing competitors like Reynolds, CelloPens. This report shall be further followed by carrying outquantitative research between the customers and the retailersthat would determine the tastes and preferences of peoplewith regards to these pens.

TABLE OF CONTENTS CHAPTER 1 Introduction Marketing Strategy- Its relevance to pen industry Identification of problem The Main Objective of Study CHAPTER 2:Choices of Various competitors CHAPTER 3:Research Methodology Scope Research Process Limitations CHAPTER 4:Growth of pen industry in India (Introduction) History of writing instruments

Topic Page No. 6 14

15 - 19

20 - 25

26 - 39

Importance of Pens Types of Pens Origin of Pen industry in India Production Size of the Industry Findings from questionnaire The Inferences of the report Conclusion Bibliography CHAPTER 5:Annexure Sample Questionnaire List of Retailers visited 40 - 44

CHAPTER -1

INTRODUCTION The economies of the world are undergoing a rapid change, with often wrenching transformation. The two major forces underlying this change are Globalization with Technological changes. The explosive increase in global trade and international competition has led to Globalization. The markets of today are changing at an incredible pace.

Along with technological changes and Globalization, we arealso witnessing a power shift from manufacturing to retailing,new retail forms, growing consumer price and valuesensitivity, diminishing role of man marketing. To protecttheir profits, companies have primarily responded by cuttingtheir costs, re-engineering their processes and downsizingtheir work forces. Yet even if companies succeed in cuttingtheir costs, they may fail to increase their revenue if they mayfail to increase their revenue if they lack marketing visionwith marketing know-how.It is therefore necessary for companies to formulate broadstrategy and define a specific marketing mix and action planto optimize their long run profitability. The company canbuild in a set of controls so that it can evaluate results andoperate as learning organization thereby constantlyimproving its marketing know-how. If we meet today'stougher Indian consumers they are more demanding,inquisitive, discriminating. They are no longer content withplanned obsolescence .They are no longer willing to tolerateproducts that break down. They insist on high quality goodsthey have, time, energy and calories, preserve theenvironment that come from a manufacturer.This means that companies have to work harder to gain
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andkeep the confidence of Indian consumers, especially thosewho have been switching brands. For firms that haveresponded well to this challenge, an important milestone hasbeen reached, they are truly consumer -oriented companiespracticing the marketing concept .These firms talk toconsumers to discover their needs and work hard to satisfythem; and they do this in a systematic, goal oriented manner.Firms operating internationally need to be aware thatconsumers desires and expectations can differ by country.Many times, these expectations are quite dissimilar fromIndian Consumers.Marketing is not a fixed system of concepts. Rathermarketing is one of the most dynamic fields within themanagement arena.

MARKETING STRATEGY - ITS RELEVANCE TO THE PEN INDUSTRY Marketing strategy is the prime mechanism to achievesustained growth and prosperity of the nation. It is the powerhouse for industrial growth. Like other industries, marketingstrategy has been found to be an important tool for expandingsales of the Writing instrument Industry as well. Though withthe increased competition in the market and development of avariety of pens, the pen manufacturers have started placinggreater reliance on marketing strategy to create a distinct andunique position of their product and their corporatepositioning in the market.Tremendous progress has taken place in the Pen industry inIndia since Independence. A number of large, medium, smallas well as cottage units scattered all over the country have started manufacturing a wide range of pens. Major changeshave also taken place in the structure and demand pattern ofurban as well as rural markets. The pen industry has been facing growing competition in the international market aswell which is becoming increasing important.

Suchdevelopments have inevitably increased the complexities inmarketing of pens in India. Therefore, it has becomeimperative to involve effective marketing strategies to copeup with the increasing competition in the market to gain alarger market share through the delivery of more satisfactionto consumers.The Pen Industry offers ample employment opportunities tomillions of people in the peripheral sectors such asdistribution, field services, etc. The present production ofpens in India has created job opportunities for more than one lakh people in the service sector of which most of thesepeople are self employed.

INDENTIFICATION OF PROBLEM Presently every country - developed or undeveloped or evendeveloping is moving ahead to achieve economic prosperityas well as a higher standard of living of the proper dwelling in it. Economic prosperity and higher living standard canonly be achieved through a rapid increase in production ofboth goods and services produced within the country. Indiatoo has made a considerable amount of economic progressduring the last three decades. Now its been more than 5decades after we have achieved our much longedindependence, and not only has the volume of productionincreased tremendously in various sectors likepharmaceuticals, automobiles, FMCG, Telecommunicationetc. but also new products which were formerly imported arealso being manufactured within our very own country India.However, a country's economic prosperity depends not onlyon the volume of production, but also on the systematic,efficient and equitable distribution of all that has beenproduced in the country. Thus, equal distribution of theproduction is also very important from the point of view ofeconomic prosperity.Now the marketing process is application to more than justgoods and services. Anything can be marketed includingidea, events, organizations, places and personalities. It is alsoimportant now that marketing does not start with a product oroffering, but with a search for opportunities in the marketplace. The study could not be treated with more statisticalanalysis and our inability to do so has been due to 2 mainhurdles. First, we had to face a great apathy and reluctance onthe part of manufactures and traders in the disclosing ofinformation. They did not give us proper and relevant detailsof marketing costs, trade margins as well as volume of sales.Second, the blue print of the Govt. proved helpless in givingany factual information on the composition and structure ofmarketing organizations in this context. So, we can
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see thatalthough the Govt. gave the blue prints, yet they were notproper enough to know the marketing organizations structurewithout any proper and relevant information the results of thestudy just fell through.

The main objective of the study was: To Identify the distributive functionaries that operate between producers and consumers. At that time there were very many intermediaries betweenthe producers of the goods and the ultimate consumers. Theseintermediaries or middlemen received up to 60% of the pricepaid to the producers. All these mal-practices had to becurbed. Thus it was necessary to identify the distributivefunctionaries between producers and consumers.

To Estimate the Marketing Cost spread. Marketing costs includes all types of costs like advertising,selling and distribution, packaging, transportation,warehousing, storage etc. All these components form anessential feature of the cost of marketing. The detailed studyof all these costs had to be known to come to a certainconcrete conclusion. Thus, this second study's main objectivewas to determine and estimate each of the marketing costsinvolved and the degree of each of their contributions.

To suggest a least cost distributive system without imparting the efficiency of distribution In order to make maximum profits, least cost has to be madein any activity. Thus, the lowest cost structure of all thesemarketing costs had to be evaluated and suggested. But, italso had to be kept in mind that quality did not have to becompromised with. And the efficiency of the
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system had to be perfect, so the suggestions of a least costdistributive system was another important objective of thisstudy.

To recommend a fair margin to the trade after examining the present margin and operation expense One of the essential objectives of the study was therecommendation of a just and fair rate of profit. All theexpenses on the operational activities like factory expenses,wages, distributive expenses, advertising etc. had to bestudied and tried to be curtailed. The present profit rate hadto be studied and reasons for the same had to be understood.

Only then could proper measures could be taken to increaseprofits and control operational expenses.In this study a questionnaire was prepared and circulated to150 retailers in Mumbai to obtain information on the distributivesystem followed by them. We have high hopes of a largenumber of people participating, but only 120 retailersresponded. The bad part was that wholesalers and evenretailers did not take much interest. They responded verypoorly.It is also observed that the feedback mechanisms are alsorelatively poor. Since a majority of retailers were found tohave a very little idea about the change in consumer tastesand preferences, they were all living in the last century. Thestudy further stated that in the present system, a majority ofretailers had little or no control over the products they sold.As regards the margins of intermediaries, the margins ofwholesalers differed from variety to variety and the grossmargins were generally high in metropolitan markets. It wasalso observed that the net profits as a percentage of capitalemployed in case of wholesalers was 15% to 20% .Whereasin the case of retailers, it was 3% to 4%.
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Further, the distribution of products through co-operativestores such as superbazaars, big -bazaars, etc. was found tobe of a very little significance. It was stated in the study thatif the cooperative institutions were to become effectiveinstruments of distribution and a vehicle of pricestabilization, their activities should be strengthened andextended with additional credit and managerial resourcesgranted to them.

OBJECTIVE OF COMPARATIVE STUDYBETWEEN VARIOUS BRANDS WITHRESPECT TO LUXOR WRITINGINSTRUMENTS The study shall enhance the 7 Ps of Marketing mix i.e. Product, Price, Place, Promotion, People, packaging, Perception adopted by all these brands of pens along with the Luxor writing instruments and where does Luxur as a brand of pens stand in the current market scenario .This would enable a marketer to craft amarketing plan and adjust it in such a way that it would lead to in identifying the problems pertaining in the market with regards to Luxor pens and how can the company can pose competition in the lower range category as well. The study shall indeed be helpful for the company to identify the potential of Industrial or B2B marketing that account for the long term contractual agreements that are typical in supply chain transactions. Analyzing the Market segmentation that involves dividing up the potential market for the pens between Rs 3- Rs 15 into groups of people who have similar needs, and then addressing these needs in a focused way. This would help company to craft a marketing plan and modify it in such a way that it would help in12

1. Defining the Problem. 2. Identifying the market. 3. Market Share. Thus keeping in view the importance and relevance of this Pen industry, the research has been under taken to understand this fast developing industry. The objectives of this particular study are To determine consumer preferences in respect of pen brands. To know the various reasons for which customers purchase pen. To know the market share of various pen producing companies. To understand the buying behavior of the consumers. Examine the existing organizational arrangement for the distribution of products.

Most importantly to throw light on the hierarchical relationship that would be reflecting the importance of this function in the overall marketing organization. To analyze the effect of display on customer purchasing. To understand relatives influence on customers in the purchasing process. To analyze the margin of profits in various pens.

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 To determine Brand Loyalty and gainer / loser brands associated with Brand switching. To check proper rotation of stock. To determine the main reason for 'Preferred' Brand. To determine comparative consumer brand preference rating among 2 different types of pens. To determine comparative consumer perception of consumer for pens between Rs.3-Rs15 with reference to Luxor writing instruments To know the schemes available and what improvements should be done regarding the availability of these schemes.

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CHAPTER 2

CHOICE OF FIRMS Some of the major competitors in the Writing Instrument Industry are as follows:

1) Linc Pen Linc is one of Indias leading manufacturers and exporters of ball pens, gel pens and all other Stationery Suppliers. Its a leading Exporter, Manufacturer of Ball Pen and other writing instruments in India. Linc pen is India's Prime Manufacturer and Exporter of Ball Pens, Roller Ball Pens and Gel Pens too. To endorse the commitment, Linc has already taken up some programmes with leading educational institutions and is closely related to these programmes by financial support and writing instrument. Linc Pens believe that writing instruments form an integral part of education and being responsible corporate citizens, they make humble contribution to the society where literacy seems to be a major issue. This prompted Linc to go for the corporate slogan of Encouraging Literacy, a very apt platform for a company dealing in Writing Instrument. Linc has also put forward a commitment of contributing 1% of its profits for promoting literacy drives. Their Mission is to deliver innovative, user friendly and better-quality products at best value to the customers, keeping in mind the prosperity of the company and its stakeholders. Their Vision is to establish Linc as a global brand, known for its values, assertiveness and the acumen to adapt to the ever-changing environment.

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2) Rotomac Pens Rotomac Pens Pvt. Limited, belonging to a multi million dollar turnover VIKRAM KOTHARI ENTERPRISES, was incorporated in the year 1992. The promoters and the manufacturers had conceived this project with an objective to provide a good quality and economically priced ball pens in the market. Rotomac today is a leading manufacturer of writing instrument in lower price range and has now increased the product portfolio under its umbrella. Rotomac is committed to manufacture and supply products of consistently high and reliable quality to meet and / or exceed the customers expectation and special needs which confirm to accepted international standard of Quality, Safety and Reliability.

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3) Montex pens The goal to see the world proudly writing with the perfect writing instrument led to the formation of Montex Group in the seventies, headed by Mr. Raman Jain .Starting off as the worlds largest manufacturer of nibs, the company carved its niche in offering a host of quality writing instruments. Montex became the only Indian company to have everything from manufacturing accessories to assembling under one roof. Under the camaraderie of Mr. Raman Jain, Montex today is a force to reckon, with a product profile as versatile and innovative. Montex has been the first in India to introduce Transparent Ball Pens, Trendy Fountain Pens, Precision Tips, Gel Ink Pens, Roller Ink Pens, Tank Pens, Rubber Grip Pens and Co-molded Pens.Montex is recognized as a pioneer in the Indian pen industry with innovations to its credit. In its endeavor to offer the best, the company has combined the advantages of its infrastructure with the uniqueness of its raw material Supplying associates, who are world-renowned names in their respective fields. The machineries used for production are some of the biggest brands from Switzerland and Germany. One up than all these is the thrust on regular updates in the field, and also consistent research and development. The company has 3 state-of-the-art manufacturing units, located in the commercial capital of India Mumbai, along with other prominent locations. Montex is not only the most popular brand in India, but also recognized world over. Its products reach out to over 35 countries in the world, covering almost all the continents.

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4) Cello Various pens under cello between Rs3-Rs15 are: Techno tip (Rs.8) Max riter (Rs.9) Cello spirit gel 0.5 (Rs.5) Retractable power (Rs.15) Jolly (Rs.3) Flo gel (Rs.10) Cello Pointec gel (Rs.15) Cello Mac gel (Rs.10)

Cello is a leading exporter, supplier and manufacturer of Ball pens, Gel pens and refills. The company took its first step 35 years ago as a low profile enterprise that slowly and steadily grew to be the indisputable leader in the plastic industry of India .In mid 1995-96, Cello came into its own by entering a diversified and highly competitive field of writing instruments. 'Cello Writing Instruments and Containers Limited (CWICL) was born and a notable growth rate was achieved immediately. From a turnover of Rs. 2.7 crore in 1995-96 to a turnover of Rs. 240 crores in 2001-02, CWICL has remained committed towards providing a wide range of versatile, top notch quality, state-of-the-art components and foreign technology .From a modest production of 20 lac pens per month, CWICL today produces 500 lac pens per month. The Cello factory has a total area of 1, 00,000 sq. feet and has strength of 3000 workers. With a marketing network of 40 Super Stockiest, 1900 distributors and a professionally trained sales team of over 300, Cello manages to satisfy millions of consumers in every corner of India .Today, Cello is acknowledged as a quality brand in the urban and rural markets of India.
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5) Reynolds

Various pens under Reynolds between Rs3-Rs.15 are: Racergel (Rs.10) Liquiflo (Rs.10) 045 Fine Carbure (Rs.6) Bold Tip 040 (Rs.5) Reynolds Jetter (Rs.15) 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 .Over the last 20 years, G.M. Pens has invested substantially in building a large manufacturing base with facilities in Chennai and Pondicherry. A state of the art R&D facility, one of the most sophisticated in the Reynolds family worldwide, has ensured that the latest in writing technology is available to the Indian consumers. G.M. Pens offers the widest range of writing instruments and accessories in the Indian market. The company's products are available in three hundred thousand retail outlets across India covered through a network consisting of 1800 redistribution stockiest and 27 main stockiest. This is facilitated by a sales and marketing team of over 300 professionals.

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CHAPTER 3

RESEARCH METHODOLOGY

Research Methodology is to teach and to save knowledge from fossilization, such a step helps not only in the growth of the subject but also in facilitating solutions of burning problems. As an independent discipline, it helps solution of immediate problems of business also .It is however, necessary to evolve and shape methodical tools, designs and techniques to improve quality. If marketing strategies are good and effective; it will help to sell the product in an effective manner to reach every part of the country, specifically in rural and hilly areas, where distribution is always a problem. To form and test alternative and null hypothesis, we have studied market research and its effect on marketing strategy, long term and short term. Traditionally, hypothesis does not hold well in present economic drive. In order to test the hypothesis, the relevant data I have selected from both Primary and Secondary sources.

(1) Primary Data Personal Interview Questionnaire. (2) Secondary Data

For primary data basis, I have collected information upon sample basis, interview and personal survey by visiting various shops. For collection of these data I have prepared a questionnaire which is up to date in my knowledge. The questionnaire has been filled up by various customers, dealers and also retailers. The study was

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carried out at various retail outlets and consumers. The survey includes both observational study and direct semi-structure interviews.

SCOPE

There is a wide scope of this study. This study will help in identifying the specific problems of marketing in the writing instrument industry. A multidimensional approach is proposed to put into application to analyze the respective problems. The study aims at making an effort to evolve a suggestive model with all the facts and marketing strategies.

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RESEARCH PROCESS

The present research study is descriptive cum analytical type of study. The major purpose of this research is to find description of the state of affairs as it exists at present in the content of pen marketing in India. The facts and informations already available have also been used. A brief over view on the research process of the present study is as follows:

(1) Research Problem

The present research problem in the context of the marketing strategies of the pen industry was formulated. An understanding about the problem could be developed with the discussion held with experts of the subject, colleagues, and officials associated with the pen industry. I was acquainted with the problem through the review of conceptual and empirical literature available on the subject.

(2) Hypothesis

Proper marketing strategies of the pen Industry will help all the pen companies. In this pen industry flourishes, it will help generate employment opportunities in our country. It is one of the fast developing industries and also the indicator of the standard of living of a nation. Good marketing strategies would help develop the pen Industry and the Indian Economy as a whole.

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(3) Research Design

After formulating the research problem and hypothesis, the research design was involved. This design had to suit the requirements of the present study, had to explore and also describe and diagnose the problems of the study.

(4) Research Instrument

For the collection of information a questionnaire was designed which was structured and none disguised type and was administered as per schedule. It included many close ended as well as few open ended questions.

(5) Sample Design

The study was carried out in MUMBAI. It has covered about 100 retailers and wholesalers and consumers each .Out of these Central Mumbai was studied more closely.

(6) Sampling Procedure

The sampling procedure used was random, keeping in mind proper representations in all areas.

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(7) Collection of Data

For the study, both primary as well as secondary data was collected. Primary data was collected by the Questionnaire and personal Interview method. Secondary data was collected through published materials, Newspapers, Journals, Proceeding, Books, and Websites etc.

(8) Analysis of Data The data collected have been codified and tabulated. Relevant statistical relationships have been established and analyzed. The analysis of data helped in understanding the marketing strategies. Besides this, various problems, which came in the way of marketing, have been identified. The analysis of data has been presented in the respective chapters of this thesis. The data has been interpreted to arrive at some concrete conclusions. The problems identified in regard to marketing strategies and suggestions to overcome the problems, have also been evolved on the basis of interpretation of data, various statistical methods, formulations and techniques have been applied for interpretation of data. Finally an attempt was made to give a shape to the study in the form of a report.

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LIMITATIONS

The analytical study emphasizes the marketing aspect of pens. Data released by the pen industry on production and consumption etc. of pens is not very reliable because of inhabitant characteristics of maintaining secrecy by the industry so that they may not be exposed to the Government and General Public. Applications of sophisticated methods are not possible because of the lack of resources and the limitations of time. Since, the conclusions drawn are based on limited data; they remain subject to modifications and corrections.

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CHAPTER 4

GROWTH OF PEN INDUSTRY IN INDIA

How the pen market changed Fountain Pen:

Lewis Waterman patented the first practical fountain pen in 1884. Writing instruments designed to carry their own supply of ink had existed in principle for over one hundred years before Waterman's patent. For example, the oldest known fountain pen that has survived today was designed by a Frenchmen named M. Bion and dated 1702. However, early fountain pen models were plagued by ink spills and other failures that left them impractical and hard to sell. The fountain pen's design came after a thousand years of using quill-pens. Early inventors observed the apparent natural ink reserve found in the hollow channel of a bird's feather and tried to produce a similar effect, with a man-made pen that would hold more ink and not require constant dipping into the ink well. However, a feather is not a pen, only a natural object modified to suit man's needs. Lewis Waterman's idea was to add an air hole in the nib and three grooves inside the feed mechanism.

A mechanism is composed of three main parts. The nib, which has the contact with the paper, the feed or black part under the nib controls the ink flow from the reservoir to the nib. The round barrel that holds the nib and feed on the writing end protects the ink reservoir internally (this is the part that you grip while writing).All pens contain an internal reservoir for ink. The different ways that reservoirs filled proved to be one of the most competitive areas in the pen industry in early19th

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century .There are nine standard nib-sizes, with three different nib-tip cuts: straight, oblique and italic.

Ballpoint Pen: A Hungarian journalist named Laszlo Biro invented the first ballpoint pen in 1938.Biro had noticed that the type of ink used in newspaper printing dried quickly, leaving the paper dry and smudge-free. He decided to create a pen using the same type of ink. The thicker ink would not flow from a regular pen nib and Biro had to devise a new type of point. He did so by fitting his pen with a tiny ball bearing in its tip. As the pen moved along the paper, the ball rotated picking up ink from the ink cartridge and leaving it on the paper. The British Royal Air Force needed a new type of pen, one that would not leak at higher altitudes in fighter planes as the fountain pen did. Their successful performance for the Air Force brought the Biro pens into the limelight. The highly popular modern version of Laszlo Biro's pen, the BIC Crystal, has a daily worldwide sales figure of 14,000,000 pieces. Biro is still the generic name used for the ballpoint pen in most of the world. The Biro pens used by the British Air Force in W.W.II worked. Parker black ballpoint pens will produce more than 28,000 linear feet of writing -more than five miles, before running out of ink. This is the change in the use of the Fountain pen to Ballpoint pen further we got introduced with Gel pens but still the market of the ballpoint pens hold good.

Gel Pen: Gel Pens were invented by the Sakura Color Products Corp. (Osaka, Japan), who makes Gel Roll pens and was the company that invented gel ink in 1984.

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INDIAN MARKET OF PENS

Ball pens forms the biggest chunk of the pen market in India and accounts for 72percent of the total pen market followed by gel pen at 28 percent. The brand leaders in this market are Cello. Luxor Writing Instruments Pvt Ltd has introduced Watermann Exception Solid Gold Pen worth Rs 10 lakh at the inaugural ceremony of the companys exclusive retail showroom Luxor Signature.

Pens market in India recorded a value growth of 82% Survey done by the Indias 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 % for ballpoint to gel respectively. In 54 IIMS urban areas about 10.9 lac. of stores are selling pen, in the selling year of 2005-06 itself recorded a growth of 23%. 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. 60% sales come through organized sector and balance from unorganized. And the luxury segment 95% sales come through grey market. Most of the luxury writing instruments are picked by on travel abroad. Off this nearly 99% is sale through stationery and kirana stores. The entire market is disorganized. And the grey market plays a very crucial role in supplying hi-end, premium writing instruments. The industry is just evolving and consolidating to supply genuine and quality pens to Indian customers. In terms of quality of pens, India ranks amongst the best in the world, well ahead of even China. But, its export market is abysmally low at Rs 200 crore, while China exports Rs 5,000 crore worth pens every year .Indian manufacturers are only now beginning to focus on global markets. The luxury and hi end pen market is only 1
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per cent of the total market size of India i.e. 15 crore. The gold and the sterling silver range branded Waterman 100 retail between Rs 2, 00, 00 to Rs 4, 00,000.

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EXPECTED EXPANSION OF THE INDIAN

PEN MARKET Indian pen manufacturers see this segment as a potential one in the coming years. Many have set up a separate division to handle this market segment, as the `free gift-on-everypurchase' campaign uncorked by FMCG companies is acquiring a shrill note. Mr. Ronnie Netto (Director of Today's Writing Products Ltd (TWPL) said

"We noticed this trend about two years ago and it has picked up since then. Last fiscal, our revenue from this segment was over Rs 10 crore of our total turnover of Rs 80 crore. And this fiscal ,we expect it to almost touch the Rs 20-crore mark .We have set up an exclusive division to handle such orders, as they require personalized service. We estimate this market segment to grow to Rs 500 crore in the coming years, now; Indian manufacturers are beginning to reach out to the overseas market. After UK's Pound land tied up with TWPL to have Today's brand of pens in its chain of stores, we expect to export pens worth $1 million to UK in the current fiscal,"

Another area that is opening up for Indian pen manufacturers is the trend among overseas stationary companies to outsource their pen requirements from India. In 2006, about 10.9 lac stores across urban India take the product in stock at present which represents a distribution growth of 23 percent within a year (April06 over July05). The increased distribution has brought about a phenomenal growth for the pen market of 82 percent in sales. The sales peaked in the months of February and March owing to exam season and touched maximum in the last eleven months
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.There is a consistent month-on-month growth in the writing instruments industry fuelled by competitive pricing and product innovation. Today, one can buy a Gel pen for rupees two and can choose from a wide variety of pens - with easy grip to water-proof ink .Although the writing instrument market is led by well known names like Cello ,GM (Reynolds), Jineshwar (Montex) etc. Smaller players such as Lexi, Agni and Elkos for examples have also been able to maintain their share on a regional or select pocket level.

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LUXOR WRITING INSTRUMENTS

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 Mumbai, has evolved into Indias No. 1 manufacturer and exporter of writing instruments operating 10 state-of-the-art facilities in NCR-Mumbai and 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 honor. 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. D.K Jains 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
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to an exclusive club of top 101 brands hailing from various industry segments in India. The Luxor Group pioneered fiber-tip and roller ball pens in 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 coloring 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 chose to reinvent itself and opted for a three pronged strategy including modernization, 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. Paper Mate (1999) and Waterman (2003) followed suit and the Luxor Group now acts as their preferred
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business partner in India, holding the manufacturing and marketing franchise. Positioned as premium lifestyle accessories instead of everyday utility item, the Parker and Waterman from the House of Luxor remain the preferred choice of the upwardly mobile. Celebrity endorsements were also sought to promote these highend writing jewels, and legendary movie star, Amitabh Bachchan, was signed up as the Parker brand ambassador. Never an organization to rest on its laurels, the organization has further conceptualized the Louis Charronrange 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 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.

What Sets Luxor 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 and 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. Luxors 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. Luxors fundamental purpose is to cherish the vision of growth in established and new domains, and foster sustainable and integrated growth. With an impressive past and a powerful present to guide it
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forward, the Luxor Group is all set to build upon its achievements in the years ahead.

THE INFERENCES OF THE REPORT

General analysis LWIPL launched its first brand of pens in 1963-The Artistic Fountain Pen. However, owing to its small scale of operations during that time, pens were made available in just Mumbai and the surrounding areas. Although, the range of pens under Luxor, in the lower price category is way too less still as compared to the competitors that have captured a major chunk of the current market .Cello occupies the topmost position followed by Linc pens in this lower price pen category. During late 1960s, 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 officially launched in India. The maximum sale of lower priced pens was made by the retailers by selling a huge 60% of the total to mere students only. The second largest sales were made to the servicemen with 25% and then the businessmen with 10% respectively.

According to the research done by us, the maximum sales of pens under the price range of Rs3-Rs.15 was acquired by Cello i.e.60% followed by Linc, Reynolds with 5% and Luxor pens only 2%under the lower price category. Also maximum schemes to the retailers were given by the pioneer again being Cello. According to the survey done with the retailers, they believed that a majority of customers look for the quality of pen and then the price. Then after that, they see whether it is refillable or not. The looks of the pens in this price range are usually least preferred. The sale of these pens was found to be stable throughout the year with
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90% and the best deal of the pens that the retailers felt was with Cello again with 45%, Linc 25%, Reynolds 15%, Rotomac 10% and the least being Luxor 5%. As far as the promotion is concerned, when asked by the retailers; 80% of them said that the celebrity adds do not help in increasing the sales volumes as there are hardly any advertisements of Luxor pens under lower price category. On the other hand, if we consider the consumer view point, they too gave preference to Cello with 39%, Linc 26%, Rotomac 10%, Reynolds 7% and the least Luxor that was only 2%. 50% of the customers bought these pens once in 15 days whereas 25% once in a week. 15% begged borrowed or stole and the remaining 15% went for a bulk purchase. A majority of 70% of the customers were not conscious of their status while buying the pens ranged between Rs.3-Rs.15.The questions whether the advertisement helps in enhancing the sale of these pens proved to be almost futile as there are hardly any advertisements and only 15% people said that they came to know about the pens from the advertisement. Rest 39% came to know from the retailers and 275 from friends.

Promotion and Positioning LWIPL promoted its products primarily through ad 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 Works', to promote its Pilot pens. In the early 1990s, the company shifted to another agency, RK Swamy/BBDO. In 1996, the advertising account of Parker was awarded to McCann-Erickson, while the Luxor and Pilot brands remained with RK Swamy/BBDO.

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Suggestions Most of the retailers were unsatisfied with the pending schemes that luxor has been providing to them. They suggested that no schemes should be left pending. Another aspect which they highlighted was that the company did not work at all towards the promotion. Neither did they provided banners or stands for that matter for display on the shops due to which the attention and focus of the customers could not be tapped. Most of them suggested that there should be introduction of new product lines under this range with sufficient availability at the same time so that Luxor can get into the rat race under the given price category.

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CONCLUSION The production of pens in India has been steadily growing since the beginning of the twentieth century. It is still expected to register a sharper rise in the next decade. The Industry is widely dispersed comprising of large size units and small sized units. The pen industry is basically a labor intensive having vast employment potential. Due to this there is a greater need for a well knit distribution system to help the industry to grow and meet the needs of millions and millions of Indians who are striving to achieve a higher standard of living.

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BIBLIOGRAPHY 1. www.google.com 2. www.worldofluxor.com 3. www.luxor.com 4. Brand Equity 5. Fundamentals of Marketing By Philip Kotler

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CHAPTER 5

ANNEXURE

Questionnaire for customers Name:. Today's date: ... Address ............ City: State: Zip: Telephone:... Mobile: Date of birth: Sex: _ Female _ Male Occupation(Tick) : student/businessman/service

Please circle the preferred option: Qs1- How frequently you purchase a pen? _ Once a week _ once in 15 days bulk purchase _ beg/borrow/steal

Qs2- Which pen strikes first in your mind when the range is between Rs.3Rs.15(check _only one): _ Luxor _ Reynolds _ Cello _ Rotomac _ Linc _ Any other

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Qs3-Rank the remaining above brands of pens according to your preference? 1.. 2.. 3.. 4.. 5..

Qs4-What motivates you to buy this pen?(Rank according to preference) Price ..QualityRefillable.AvailabilityLooks of the pen

Qs5-Do you use separate pens for signing and writing purpose? _ Yes _ No

Qs6- If Yes then which pen do you use for signing purpose and for writing purpose? For signing purpose For writing purpose .

Qs7-Are you conscious of status while purchasing a pen? _ Yes _ No Qs8-From where did you come to know about the pen you use? _ Advertisement _ Colleagues _ Friends _ Retailers Qs9-What is your take on Luxor Pens?

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Qs 10-Should we consider the change in looks for Luxor pens? _ Yes _ No

Qs11- If the PEN were to change, what adjectives do you think should describe the new look? e.g. more: open (i.e. less text per page) / scholarly / dynamic / trustworthy / artistic. Use as many adjectives as you like.

Qs12-Your suggestions as to how Luxor can expand the market in lower price range..We will be glad to have your suggestions? Thank you for your help!

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Questionnaire for Retailers Name: . Today's date: . Address(Outlet): City: State: Zip: Telephone: Mobile: .. Date of birth: Sex: _ Female _ Male Qs1-Who are the frequent buyers of pens in the price range between Rs3Rs.15?(Opt for 1 or more than 1) _ Students _ Servicemen _ Businessmen _ Other Professionals

Qs2-Maximun sales under the price range between Rs3-Rs.15 is for which brand of pens?(Rank in order of sales) Luxor Reynolds. Cello RotomacLinc. Others(please specify)

Qs3-Maximum schemes are being offered by which brand of pens?

Qs4-When people buy pens what among the following options do they prefer ?(Rank as per the priority) Price ..QualityRefillable.SchemesLooks of the pen
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Qs5-Sales of pens between the range of Rs3-Rs.15 is high during which period of time? _ High during exams _ Stable throughout the year _ when new schemes are introduced.

Qs6-Your best business deal is with which company of pens? _ Reynolds _ Cello _ Luxor _ Linc _ Rotomac

Qs7- Do you think that Brand endorsement by celebrities is really helpful in boosting sales of pens? _ Yes _ No

Qs8- Highest Retailers margin in %age provided by given brands? _ Luxor _ Reynolds _ Cello _ Others (please Specify)

Qs9- If the PEN were to change, what adjectives do you think should describe the new look? E.g. more: open (i.e. less text per page) / scholarly / dynamic / trustworthy / artistic. Use as many adjectives as you like. Qs10-Your valuable suggestion for Luxor to capture market share in lower price range? Thank you for your help!

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