COMPETITIVE ANALYSIS OF “LEXI PENS” IN

MUMBAI MARKET

PROJECT
• Pen market is a fast growing segment in India.
• Currently a few number of established players
are available and the scope of further
development is huge.
• Many new entrants are popping up, but Lexi
Pen is from a well established organization.

INTRODUCTION
• To study & analyze the competitive environment of writing instruments in
Mumbai market.
• To study about the consumer buying behavior and its influencing factor.
• To help the company to formulate the price of the product as per the
consumers’ expectation.
• To help the company to improve their strategic formulation and decision
making process.
• To study the consumer buying behavior and retailers’ perspective of Lexi
pens with its competitors.
• To know which price range of pens are mostly preferred by the end

SCOPE AND OBJECTIVE

consumers.
• To know the effectiveness of POS (Point Of Sales) displays in retailer’s
outlet.
• Lexi Pens got introduced to the world in 2001. It has grown a
lot since then.

A CRISIL certified SME-1 Company.

A Company with the highest rating of SB-1 by our Bankers

State Bank of India

Certified ISO 9001: 2008 Company by TUV NORD GROUP

COMPANY PROFILE
STAR EXPORT HOUSE - recognized by Government of India
• Strengths
• High quality perception.

• Formidable/Undefeated market share or share

of wallet.

SWOT ANALYSIS
 SWOT Analysis
• Weaknesses
• Lexi clip “0.7” facing reluctance in the trade
(retail shops).
• New Point of Sales for Rs 10/- segment for
retailers.
• Opportunities
• BTS (Business Trading System) Sales to kick in.
• Refill and pen replacement to be extended for a week to
retain trade trust.
• Shop boards to be displayed during monsoons for Rs 10/-
segment.

SWOT ANALYSIS
• Threats

• Off take rate of Rs 10/- MRP has decreased

(Rolling Period).
• Higher margins pledged by “followers” of Lexi
brand.

SWOT ANALYSIS
 THEORITICAL
BACKGROUND
• Market segmentation- Geographic segmentation
and demographic segmentation
• Market targeting – IT companies and MNCs
• Service marketing mix- product, price, place,
people and physical evidence
• Technology
Well trained sales team
• A systematic research technique is used.
• As there was not much of secondary data
available for the project the basis of this
report was the primary data collection that is
questionnaire.
• The research technique used in this project is
“sample survey”
RESEARCH TECHNIQUES
Data analyzed for following parameters.
• Need of product
• Preferred models
• Existing users of Lexi pens
• Preference of providers in the market
• . Satisfaction level with current provider.
• Affordability of Lexi Pens
• Usage preferences
• Importance of features for Lexi Pen

DATA ANALYSIS
• Low margin is given to the retailer.
• No credit has been given to retailers, wholesalers
and distributors.
• No scope of cash discount of 2% to the retailer.
• Comparatively less product line in similar
segment.
• Retractable pens and purely Gel Pens are not
available
FINDINGS
• Colors are not available in Lexi Allwrite except
Blue.
• The major problem observed with Lexi are
• 1. Margin issues 2. Lack of Advertising & Promotion 3. Replacement issues 4.
Supply issues 5. Faulty product
• The major problem which Lexi faces is that already more than 40% of the market
has been covered by the margin issue. Competitors are providing better margin to
the retails and wholesaler which ultimately affects our market share. Other than
that retailers were always complaining regarding the improper and inconsistent
visits. Different areas are assigned to different salespersons which keep on
changing that creates supply gaps in the market.

CONCLUSIONS
• From the detailed study of the market in Mumbai
area, I came to following findings. The study shows
that Lexi has a wide presence in Mumbai market.
In the terms of availability, Lexi pens are available
in almost every stationary store. Lexi has a very
good brand name and positive image in end
consumer mind.
• During the project study, I found that many
retailers and wholesaler were not stratified with the
company’s policies like credit, margins, supply issues
etc. Lexi has a huge demand in market by end
user, because of that retailers have to stock Lexi
products.
 •.

RECOMMENDATIONS
• In the terms of relationship, Lexi sales forces grasp weak
relationship with retailers due to such policies. Despite of
having so many issues in market still Lexi has a huge market
share and a market leader in Mumbai market.
• Lexi spends heavily on their R&D (Research and Development).
• Lexi is a successful brand in Mumbai but in other states like
Madhya Pradesh, Delhi, Rajasthan, Uttar Pradesh etc the
brand awareness and visibility is very less and negligible.
RECOMMENDATIONS
• In the context of Rs.10 MRP pens, Lexi is providing assured and
- CONTINUED
best quality pens, Due to less awareness and usage of semi gel
ink flow pens in Indian markets, those pens are facing
reluctance.
THANK YOU