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WRITING INSTRUMENTS

INDUSTRY

Evolution…Clayslab Reed pens Feather Nib

Gel pens Fiber tip Roller ballBall pens

Growth of Pen Industry in India

Late1970s– fountain and ball point pens.

1980s -an increased acceptance of ball point pens (Wilson Jotter was the market leader)

1982-Luxor entered the market 1984-Linc followed 1986-Reynolds entered and gained

popularity Late 1990’s-fibre tips, roller balls, gel

pens, etc.Contd…

contd…

Early 2002-worth of writing instruments industry in India was Rs 15 billion; brands like Cello, Rotomac, etc.

2007-2008 – Rs 21 billion

Growth of Pen Industry in World

Till late 18th century - feathers

Early 19th century - metallic nib

1870’s - fountain pens (Waterman)

1925-1940 - growth of fountain pens

After 1945 – first ball point pen

1985-1990 – Japanese gel technology

21st century – stylish pens, roller balls, etc.

MISSION

Quality First…………Cost Second

Growth…

1990-ball pens; ADVERT

1996-97; ADD Gel

1998-2000; started exporting

2001-03; ISO-9000 and B2B sales

2004 on; ADD Exclusives and OEM

Product Range

• Gel Pens- Gypsy, ADD 1st Rank• Ball Roller- Ballet, Impress• Exclusive- Maestro, Highness• Gel Roller- Alpha, Diamond Roller

DifferentiationADD 1st Rank : “experience”ADD Cat : “style & performance”ADD Achiever : “executive look but

without executive prices”Gypsy : “unique body color, vibrant

looks, unconventional styling”Etc.

ADD Corporation Ltd.

QUALITY

TECHNOLOGY

DESIGN

ATTRACTIVE PRICES

DETAILED to

PERFECTION

GLOBAL

CORPORATE CUSTOMERS

Air SaharaBinani Cement Ltd.Brittania Industries Ltd.Dabur Pharma Ltd.Lotte India Corporation Ltd.

Segmentation & Targeting

Students• Gel• Ball Pens

Executives• Roller Ball• Exclusive Series

Office Needs• Markers• OHP Pens

COMPETITIVE ADVANTAGE

Benchmark for qualityWorks across Diverse ClimatesPresent in more than 30

countriesExported to Japan( pioneers of

Gel technology)

Company InformationStarted in 1963 as Luxor Writing

Instruments Pvt. Ltd. (LWIPL) LWIPL manufactures and markets the

following products under the parker brand

In 1996, LWIPL launched Parker pens in India

Mission

“Establish Luxor Writing Instruments (P) Ltd. as the clear leader of the

Indian Writing Instruments market, both in value and image through

sustained and profitable growth of it franchises”

"We want the Parker brand in the pocket of every youth”

Product and Packaging

Functional Brands

Product and Packaging

Rialto

Sonnet

Frontier

Premium Brands

Pricing

At launch, Rs.90 to Rs.10,000

Presently priced from Rs 200 up to Rs 10,000

PromotionAdvertising in the print and television

media

In 2001, LWIPL roped Amitabh Bacchan due to his popularity among all groups

Huge success with high recall value among TV viewers

Display on special racks so that people could notice the complete range of pens

Place/Distribution Initially launched in – Delhi, Mumbai,

Kolkata and Chennai. As the demand grew, they were made available in other urban areas

Sales distribution network of 850 Super distributors/Distributors and 1,00,000 retail outlets in more than 650 cities

Low priced versions available in small stationary shops

SegmentationUpper sections of the society,

including senior executives, businessmen…

Young executives ,school and college going students

Corporate market

Positioning The Parker name itself certifies

standard in quality and reliability

Shifted Parker's positioning from a serious, daddy's pen to a youthful and vibrant brand

Multiple price and product options to address the entire section of the consumers

Target Market"Parker's target group is the top 15

million families in India”

Primarily targeted at the upper middle class consumers, senior level executives and bureaucrats…

Targeted its Vector brand at young executives and its Beta brand for the school and college going students

Corporate market

USPThe arrow design on the pen caps

which is its signature style

The Parker name has set a standard in quality and reliability. The strength and heritage of these powerful brands

World Class brand

Corporate CustomersSamsung AventisStar ,NIITAmerican express, Usha Titan, Wipro Birla plusDabur, NiveaIndia TodayMc Dowels

Separate brand for B2B customers

Specialize in selling a company by marking high quality writing instruments with company logo, name or message to ensure the message is seen and noticed everyday

Customers Customers

About the companyInternationally acclaimed

manufacturer and exporter of pens since 1997. Founder, CEO Vinod SachdevaHeadquartered at the Andheri suburbs

of MumbaiManufactures 1 million pens a day.Recognized as India’s highest selling

model pen (Lexi 5).

Vision statement

“We aim to be a leader in our business of writing instruments- by

heightened sensitivity to consumer needs and aspirations, setting new standards in quality products and

capitalizing on new business opportunities in our Industry”

Product & PricingPlastic pens ( Ball pens, Gel pens):Lexi sharp, Lexi QT, Lexi IQ Lexi 5Lexi G, Lexi G7 ( Rs 5– Rs 10)

Metal pens: LP 001, LP 002, LP 003….., LP 006( Rs 50– Rs

750)

Opaque & Corporate promotional pens

Packaging

Promotion

Network

Global presence Indian presence

Corporate customersThe list of corporate customers includePfizer ltdRanbaxy ltdTimes of IndiaHindustan lever ltdTata infotech ltdProctor & Gamble

Differentiators

Cater to specific needs

Consistency in supply

Segmenting and Targeting

Plastic pens Students

Metal pens Office Executives

Customised pens Corporates

Positioning

“QUALITY FOR A GOOD PRICE””

Unique Selling Propositions(USP’S)Nickel silver tips for smooth, free writingOriginal innovative designsErgonomically designed products for stress free comfort writingInstaflow ink technology for smudge free writingLeak proof fitting

Linc Pens & Plastics Ltd

Head Office : KolkataAround 3 decades into business Awards : ISO 9001:2000, Emerging India Plants approved by some of the world's leading retail chain of stores like M/s. Walmart Stores Inc, Tesco International, W.H. Smith etc.

Gel Pens

Growth

2003-48363.51 Crores

2004-512183.19 Crores

2005-613417.32 Crores

International Gel Pens

2006-714383.72Crores

2007-817400.50 Crores

Global20% of revenue comes from export to over 30

countries in South America and the West Asia, apart from US & UK.

The primary focus of the company has been on private label contracts with top chain stores like Steadtler, Liquimark, Poundland, ICO, Stypen, Dollar Tree, Office Works, CVS, John Lewis, Coop Norden etc to name a few.

International Stic Ball Pens

Vision & MissionVision:: To establish LINC as a global brand, known

for its values, assertiveness and the acumen to adapt to the ever-changing environment.

Mission:: 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.

Ball Pens

ProductsIn 2006-2007, company revamped its product

mix by phasing out couple of high volume low value brands, due to which the average realization per pen increased from 2.25 to 2.60 Rs. It was also successful in increasing the average realization per refill from 0.82 to 1.16 Rs.

The Company has no separate R & D section. The Company is, however, developing new products and upgrading existing products and also their packaging to meet the changing market taste / profile.

International Designer

Products Contd.. Office Products

Packaging

PricingCategory Price in

RsNumber of Varieties

Ball Pens 5 46 17 110 212 215 1

Gel Pens 5 16 46.5 17 110 415 1

Highlighter 20 1Permanent Marker 19 1White board Marker 30 1

DistributionThe company has 2,282 distributors

countrywide and 20 retail outlets called Office Linc & ‘Just Linc’ .

‘Office Linc' has roped in channel partners like Airtel, DHL, Blue Dart, Microsoft, Music World, Book Cellar, Anderson Printing, Presto, Aqua Java, SKP Moneywise and Talk, who will stock their products and provide after-sales services as well. As on today, total 18 stores of both format are already operational and the company intends to have pan India presence in future.

PromotionShah Rukh Khan is the brand AmbassadorAppointed Rediffusion DYR, the fourth largest ad

agency for brand building and has allotted more than Rs 7 crore for ad campaign.

Punch line – “Zindagi Keliye”Participation in fairs / exhibitions to increase

awareness.Separate team to focus on modern retail.

International Retractable

STP Analysis

Ball Pens

Export Stickball Pens, Retractable Ball Pens, Designer pens, Gel Pens, Rubber grip ball point pen, Ball Pens

Students

Gel Pens, Ball pens

Office White board markers, permanent markers, Highlighters

5 Rs segment

Has 60% market share

STP Analysis Contd…Highest selling category is the Rs-5 ball pens, which

accounts for more than 60% of the revenueExports contributed nearly 22.2% to the total sales in 2007-

8, up from 18.5 % in 2006-7.Successfully launched and will be launching number of

products in higher price segments It position itself as “Useful for all spheres of life”

International gel

Key DifferentiatorIn the current "commoditized" approach of the

industry for this category, building long-term brand value.

International Ball Pens

USPThe USP of the company has been quality

product at reasonable price i.e. value for money through economically priced products with great price-to-performance ratio.

International RubberGrip

Reynolds evolution

1927- Edmont regnault establishes Reynolds 1945- Base shifted to France. 1986- GM pens starts Reynolds marketing in India 1999- Sanford corporation acquires global

operations of Reynolds.

:Are high quality writing instruments , with R&D latest technology.

Products and competitors

Ball pens - 045 fine carbure, 040 bold, fusion, officerite

Gel pens - Racer gel , Racer gel II, Racer gel active.

Lead pencils, Click pencils

Artoons - FunBox, sketch pen, Safari, Jumbo combo

Markers - permanent correction, OHP, whiteboard

Highlighter

Ink pens

Retractables-Jetter regular,Jetter gripp,Jetter

metallica,Flash

Network & Distribution

300thousand retail outlets1800 redistribution stockists30 main stockistsSales and Marketing team of over 300 professionalsWritesite retail outlets

PromotionPrint ads with agency JWT and other

agenciesTV ads with brand ambassadorStudent scholarship programs in schoolsVending machines at schools and

nearby places

Future& market woesIncreasing tough competitionInstitutional & gift segments

absenceNo presence in the Parker type

rangeCompetitive advantage

Latest R&D facilities and technology

Excellent distribution networkGood quality and Brand image

Brand Blaster

Sachin was signed the brand ambassador on May 15th 2006

Endorses in ads RacerGel,045

Why Sachin?Price War, BrandingTargeting kids and students

WriteSite Franchisee owned retail outlet First of its kind in the industry Presently 15 outlets in 6 cities : Chennai,

Indore, Ernakulam, Ahmedabad, Hyderabad Targets to set up 35-40 sites in malls

Cello Writings Ltd

About the Company

1982:• Star

ted as tiny factory for making plastic households under Mr. G. D. Rathod

1986:

• New factory for Cello Thermoware is set up in Goregaon, Mumbai; Another factory at Daman as demand rises. Exports products to other countries

1994:

• Ventures into manufacturing moulded funiture. Uses state–of-the-art moulds from Italy. Becomes household name for quality.

1995:

• Enters plastic moulded ball point pen market. Cello Clear pens with Swiss tips and German ink sweep market. Creates revolution in writing instruments industry.

Vision

Vision of “uncompromising quality and total consumer satisfaction”

Network

Products available at more than 7,31,000 outlets in India.

Network of 42 super stockists, 4200 distributors and 900 field force employees.

Most advanced SCM to meet the size and spread of demand with fully computerized central order booking system integrated with production, distribution and inventory management.

Global Presence

Operates in over 62 countries including US, Gulf States, The Far East, Africa, Baltic nations, Scandinavian countries and Commonwealth of independent states of former USSR.

Products Ball Pens : Includes brands like Advantic, Maxriter, Finegrip,

Gripper, Techno Tip, Maxima, Pin point, Benz, Benz Roller,

Executive, Tri Fit, High Power Ball, Speed, Power Ball pen.

Gel Pens : Includes brands like Pointec, Tech Gel, Free Flo Roller,

Flo Gel, Freeflo Gel, Cello Genius, Cello Gold / Silver, I Zone Gel.

Retractable : Includes brands like Click Grip, Powermax,

Sapphire, Voyager

Markers : Including brands like Evermark, Maxx 500, Pocket 300,

CD Marker.

Pencils: Including brands like Smarty pencils, Smarty with Grip.

Gift Products: Benz / Benz Roller, Cello Gold / Silver, Cello

Magica, Triffit / Freeflo.

Pricing

Sl No Product Category Price Range (Rs)

1. Ball Pens 7 – 30

2. Gel Pens 15 – 50

3. Retractable pens 35 – 85

4. Gift products 75 – 250

5. Markers 20 – 50

6. Pencils 15 - 20

PromotionBy Radio Advertisements :

In Radio Mirchi, Big FM, 91 FM

By TV Advertisements : 8 commercial TV ad’s

Internet Ads

Differentiation Inox Tip: Fibre tip technology that helps is smooth

writing

LPHV: Low Pressure High Volume technology that

helps to reduce pressure on paper

Elasto Grip: Elastic rubber grip to provide have

perfect grip on the pen

Lubriflow: Used in Ball Pens for free and

appropriate flow of ink

Lubrigel: Used in Gel Pens for free and appropriate

flow of gel ink

Feather flow: Used to reduce the weight of pens

for faster writing

STP Analysis

Segmentation:School & College going students (Ball Pens, Gel Pens & Glitter pens)Corporate Offices (Markers, Ball Pens, Retractable)

Target market:Primary target market – Students (India), Corporate executive customers outside (Far East, Mid East, Gulf)

Opportunities• 80% of sales in India• Rejection rate of 0.1%• Reader’s digest – Most trusted brand in Asia

(2007)• BIC (France) Deal – 40% stake in Cello

COMPETITION

PositioningAdd gel - High quality at low costLinc – Useful for all spheres of lifeCello – Student friendly penReynolds – A seasoned player with

strong presenceParker –Premium pens of a world

class brandLexi – Affordability and ease of

writing

Cello Ink.flv

B2B Market

• Important segment of every player in the market

• Companies choose one or more manufacturers to cater to the different levels of organization

• Customer relations is higher in this market

Conclusion

• Technological innovation is the future• Huge amount of investment in Advertising to

grab the greater market share• Distribution - The crux

Thank you