A study on consumer buying behaviour of pens at retail outlets in rural areas

PROJECT REPORT

“A Study of Consumers’ Buying Behavior of Pens at Retail Outlets in Rural Areas”

HAMILTON WRITING INSTRUMENT PVT. LTD.

Submitted in the partial fulfillment of the requirement of Post Graduate Diploma in Management

Under the supervision of: Prof. Abdul Qadir Faculty Mentor

Mr. Manas Ranjan Nayak Industry Mentor

Submitted by: Gadadhara Rath Roll # PGSF1138, Batch 2011-13

A-32 A, Sector 62 JAIPURIA INSTITUTE OF MANAGEMENT Noida 201309 JAIPURIA INSTITUTE OF MANAGEMENT, NOIDA

Page 1

CERTIFICATE

This is to certify that Mr. Gadadhara Rath of PGDM has successfully completed Summer Training Programme for a period of 8 weeks with HAMILTON HOUSEWARE PVT. LTD. From 29/04/2012 to 22/06/2012.

As per our assessment, he is hard working and his performance has been excellent during the training programme. We wish him all the success for his future endeavours. endeav ours.

Manas Ranjan Nayak Area Sales Manager Hamilton Writing Instrument Pvt. Ltd.

JAIPURIA INSTITUTE OF MANAGEMENT, NOIDA

Page 2

CERTIFICATE

This is to certify that Mr. Gadadhara Rath of PGDM has successfully completed Summer Training Programme for a period of 8 weeks with HAMILTON HOUSEWARE PVT. LTD. From 29/04/2012 to 22/06/2012.

As per our assessment, he is hard working and his performance has been excellent during the training programme. We wish him all the success for his future endeavours. endeav ours.

Manas Ranjan Nayak Area Sales Manager Hamilton Writing Instrument Pvt. Ltd.


Page 2

DECLARATON

I hereby State that the summer project report entitled “The Study of Consumers Buying Behavior of Pens at Retail Outlets in Rural Areas ” submitted by me in partial fulfillment of the

requirements of PGDM, is my original work and that it has not previously formed the basis for the award of any other Degree, Diploma, Fellowship or other similar titles.

Date: 29th April, 2012

Gadadhara Rath

Place: Bhubaneswar (Orissa)

Roll # PGSF1138


Page 3

ACKNOWLEDGEMENT

It is not enough to take steps which may someday lead to a goal; each step must be itself a goal and a step likewise. – Johann Wolfgang von Goethe I would like to express my deep sense of gratitude and special thanks to: Hamilton Group, for giving me the opportunity to spend eight weeks at the company in fulfillment of requirements of my Summer Internship Program in the esteemed company.

Prof. Abdul Qadir Mentor and Dr. Deepak Singh faculty member, JIM, Noida who helped me in understanding the objective of the project and in various analyses.

Mr. Bibhu Chaudhuri, sales officer, Hamilton Writing Instrument Pvt. Ltd., for his contribution regarding scope and learning of the project.

Mr. Nayandeep Dutta, Regional sales manager, for giving me a chance to work with esteemed company.

Last but not the least, my special thanks to Mr.Manas Ranjan Nayak, Area Sales Manager and Mr. Gyana Ranjan Parida, Sales Officer, Hamilton Writing Instrument Pvt. Ltd. for helping me from the very first day in each and every aspect of the project.


Page 4

TABLE OF CONTENTS

CONTENTS

PAGE NUMBER

Certificate

I

Acknowledgement

II

Declaration

III

Executive Summary

IV

CHAPTER 1 INTRODUCTION TO STUDY

1-3

1.1

Objectives of Study

1.2

Research Methodology

CHAPTER 2 COMPANY PROFILE

2.1

Introduction to HWI (P) Ltd.

2.2

Overview of Pen Industry

CHAPTER 3 OVERVIEW OF COMPANY MARKETING MIX

3.1

Introduction

3.2

Core Competency

3.3

Four P‟s

3.4

Region-Wise Sales Break up

4-23

24-37

CHAPTER 4 RESEARCH FINDINGS & ANALYSIS

38-52

CHAPTER 5 CONCLUSION & SUGGESTIONS, RECOMMENDATIONS

53-56

Annexure Bibliography


Page 5

EXECUTIVE SUMMARY

Introduction to consumer buying behavior in rural market The ultimate objective of all production is consumption for the satisfaction of varied needs of man. A free market economy provides freedom to the consumers to buy and consume goods of their choice. Buying preferences of the consumers send signals to the producers to produce various commodities in required quantities. Producers, therefore, produces only those commodities which are desired by the consumers. Consumer behavior is related to likes and dislikes and expectations of the consumers. Consumer behavior has changed in recent years owing to enhanced awareness, information technology and more importantly governmental intervention through legislations. Thus, the manufacturers are more cautious in dealing with consumers of their respective products. The rural consumers in India account for about 73 percent of the total consumers. In recent years, the lifestyle of a large number of rural consumers in India has changed dramatically and the process of change is on. The buying behavior of the rural consumers is influenced by several factors such as socio-economic conditions, cultural environment, literacy level, occupation, geographical location, efforts on the part of sellers, exposure to media etc. The consumer movement in India till now has been confined to the middle class citizens in urban areas. It has yet to spread among the masses in rural areas. Consumer behavior in the rural market is even more perplexing because of a singular lack of consistency in groups which are homogeneous in parameters of demographics-Age, occupation, education and income. It is an old saying that customer is the king because he is the person whose decision have affect on the demand of any product or service. The attitude of consumer or buyer decides how demand will emerge for a new product & service & how existing goods and services would survive in future and in which manner. The study of consumer behavior implies how & why a particular consumer reacts to the decisions of producers. The study of consumer behavior is the study of how individual make decision to spend their available resources (time, money, effort) on consumption related items. It includes the study of why they buy it, when they buy it, where they buy it, how often they buy it & how often they use it.


Page 6

Introduction to Study My topic for the study was on “consumer s buying behavior of pens at retail outlets in rural areas”. Pen is a product which is used by each and every person. There are various brands of pens in the market of difference types Price, Color, Design, Grip etc. so the pen market is full of competition where the consumer possesses vast variety of choice to select his brand which depend on his buying behavior. Of course it is very difficult to describe consumer buying behavior about pen; even though I have tried to find how the consumer purchases a particular brand. How much they search for his brand? What factors influence they too bu y the preferred brand. It also includes the study of why they buy it, when they buy it, where they buy it, how often they buy it & how often they use it. This study focused on understanding the consumer buying behavior of pens at rural retail outlets. It also focused on the issue that whether the marketing strategies are properly implemented in rural areas or not. The study would be beneficial for the Hamilton Company to formulate the strategy for future.

Methodology of the Research Work: Population: Hamilton has a very commendable reputation in the market. I have collected data from

both primary as well as secondary sources. For primary sources I have collected data from Customers. The same has been done in the case of secondary data as well. Sample: It is a very difficult work to conduct the survey in the every nook and corner of India and

it‟s not feasible at all. Hereby I have taken the data from rural people in 3 districts of Orissa. Orissa

consists of people who are from different background and different cultures so I have basically focused on the various Customers who buy pens. Extent: This study has been done in 3 district of Orissa (Balasore,Cuttack,Khurda) Data Collection: Data for the study has been collected both from the primary and secondary

sources. While for the primary data I have directly approached to the potential customers, for secondary data all published literature on the subject available and other magazines, journals research reports published, resources available on Internet has b een consulted. Questionnaire: Keeping in mind the objectives of the study, Questionnaires / Schedules has been

developed by me. Data Analysis: The data collected through the above tools has been analyzed with the help of

appropriate Statistical techniques such as Bar graph, P ie chart. JAIPURIA INSTITUTE OF MANAGEMENT, NOIDA

Page 7

Limitation The study is limited to the variables under consideration and the results are based upon the responses of the respondents. The results are strictly relative and not obsolete. „ In the end, I would like to conclude that rural people‟s behaviors are changing day by day. They are

now becoming brand conscious and purchasing power of people are increasing, so there are many opportunities for Claro to enter in to the rural areas.


Page 8

CHAPTER-1 INTRODUCTION TO STUDY


Page 9

1.1: OBJECTIVE OF THE STUDY  Research objective: " Identifying Consumer Buying Behavior regarding Pens at Retail outlets in Rural Areas”

The main objective behind the project is to identify consumer buying Behavior regarding the Pen at rural retail outlets, which will ultimately help the company management to study the analysis and understand the behavior.

Sub objectives:  To know about the pen industry.  To study purchases and consumption pattern of the rural consumers.  To know the rural consumer buying behavior about pens.  To know what factor mostly influences the rural consumer to buy pens.  To know the satisfaction level of the rural consumers with various brands.  To know which price range of pens are mostly preferred by the rural people.  To study the impact advertisement on consumers in different Age Group, Income Group & by

profession.  To help the company marketing managers to design an effective marketing mix for its target

customers.

1.2: RESEARCH METHODOLOGY 

Methods of data collection: The data has been collected in two ways. 

Primary Data: Primary data are those, which are collected for the first time, and they are

original in character. A suitable combination of Questionnaire techniques, & discussion with the respondents was used to collect the required primary data. Primary data gives higher accuracy and facts, which is very helpful for any research and its findings. I have collected primary data from questionnaire (i.e.) PERSONAL INTERVIEW. 

Secondary Data: - The secondary data are those, which are already collected by someone

for some purpose and are available for the present study. Secondary data was collected from the magazines, websites and other such sources.


Page 10

 Tools and techniques of data collection: 

Questionnaire method: - Primary data is collected by surveying the respondent personally. I have used both the Close & Open Ended Question where the researcher is free to answer in their own words too.

 Research design 1. Purpose of study: - Descriptive Study

The objective of the study is to identify the Consumer Buying Behavior on different Variables like Price, Product Performance, and many other variables which play a key role in impacting the Buying Decision. 2) Degree of research question crystallization: Exploratory study 3) Time Dimension: Cross Sectional (As the Study is done only once in the pre specified period of 8 weeks, longitudinal study was not possible). 4) Method Of Data Collection : Personal Interview 5) Research Instrument: Questionnaire. 6) Research Environment : Field Study 7) Sampling

Area:

Balasore(khantapada,soro),

Khordha

(jatni,tangi),

Cuttack(tangi

choudwar,banki) 8) Sampled Population : Business Person, Service Person, Student, Housewife's Etc 9) Sample Size : 100 Consumers 10) Sampling Technique : Convenience Sampling

Limitations to study A research study is never perfect. There is always some scope of improvement in the study in the future. Thus, it becomes important to critically evaluate the results and the whole study. The present study has certain limitations that need to be taken into account when considering the study and its contributions: a) There a number of a factor, which affects consumer‟s perception about pens and is not possible to take all of them into account. Thus, this study is limited to variable under consideration. b) The research is based on the responses given by the respondents, which may or may not be biased. c) The results shown are relative in nature and are not absolute. In other words, it is the perception of an average customer. The area of survey was Balasore(khantapada,soro), Khordha (jatni,tangi), Cuttack (Tangi Choudwar, Banki) in Odisha and it was on rural areas only. JAIPURIA INSTITUTE OF MANAGEMENT, NOIDA

Page 11

CHAPTER-2 COMPANY PROFILE


Page 12

2.1: INTRODUCTION TO HAMILTON WRITING INSTRUMENT PVT. LTV

NAME OF THE UNIT

HAMILTON WRITING INSTRUMENT PRIVATE LIMITED YEAR OF ESTABLISHMENT IN THE YEAR 2008 ON JANUARY 1 PRODUCTS

HI TECH, ACE, A-ONE, TOPPER,GENIUS

BRANDS

CLARO

NO. OF EMPLOYEES

ABOVE 1000 PEOPLE

ADDRESS REGISTERED OFFICE

PLOT NO.49/50,DHANUDYOG INDUSTRIAL ESTATE ,PIPARIA Silvassa Dadra and Nagar Haveli, India Phone No- 91-260-2632618/9 Contact Person- Mr. Ramesh P Rathod (ENGINEER) Mobile- +919824776227 ADDRESS MUMBAI OFFICE HAMILTON WRITING INSTRUMENT PRIVATE LIMITED CURRIMBHOY ROAD, BALLARD ESTATE,KAISER-I-HING BLDG,3RD FLOOR 400001,MUMBAI INDIA EMAIL ID [email protected] WEBSITE

www.hamiltonindia.in

FORM OF THE ORGANISATION BANKERS

PRIVATE LIMITED COMPANY STATE BANK OF INDIA, HDFC ETC.

MANAGING DIRECTOR

Mr. Ajay Vaghani


Page 13

INTRODUCTION Hamilton writing instruments Pvt .Ltd. (HWIPL) is promoted by Hamilton Group of Companies who are one of the leading manufactures, wholesale suppliers, distributers and exporters of house ware products across the globe with the flagship brands MILTON & TRIO,HWIPL forayed in to the manufacture of writing instruments in September 2008. The products are launched under the brand name “CLARO” and in the process set up a fully integrated plant for the manufacturing of Ball pens & Gel pens, since inception, company have introduced 10 products and all have been well received in the market. In May 2009, HWIPL took over the brand “CORPORATE” from K alpataru group, as the company felt there is a lot of synergy between pens and stationary. Corporate is an already well established brand in the stationary segment. Over a period of time it has carved out a niche in the stationary retail market as well as in office supplies, with many o f its quality products. What company foresees is substantial growth in opportunities, both in writing instruments, as well as in office and school stationary segments in the coming years. Company is fully gearing of infrastructure to become one of the leading pla yers in market. To cater to the demands of the Indian and as well as global consumers, company is in the process of adding many more products in his portfolio. Hamilton offer complete manufacturing solution right from tip manufacturing to the end assembly of Pens which is carried on fully automatic assembly lines. Not to forget the only one in India manufacturing 1. 6 mm tip size apart from 0. 7 mm, 1. 0 mm, 1. 2 mm presently. Factory is completely automated with latest technolog y and high Class German & Swiss machines. The brand “CLARO” was introduced in January 2008 by Hamilton house wares pvt.ltd. ,who diversified in to the manufacturing and distribution of writing instruments, targeted especially at today‟s youth and young students, Claro has its manufacturing base in Pipariya, Silvassa (Dadra & Nagar Haveli), India.

Company firstly, introduced 10 products and all have been well received in the market. Get ready to write…..clear, Smooth & Fast!


Page 14

Mission „To be the unassailable leader by providing branded (best in class) products redefining value, convenience and style.‟

Core values Customer first – „Customer delight‟ is how we best describe our aspiration as a company. Through all engagement we aim to exceed expectation with this most important stakeholder. We value this sentiment not just for external but internal customers as well. Collaboration – Collaboration signifies the spirit of partnership that we share with all our stakeholders. Going that „extra mile‟ to ensure desired outcomes in our circle of influence and leveraging mutual expertise is how we bring this value to life. Innovation – Innovation to us extends beyond designing path-breaking products which become the new benchmark for competition. It also represents our quest for constant process engineering for superlative optimization of assets. Evolve – Evolution for us transcends the compulsive adaptation in response to environment. It underlines our resolve to be the change we want to see.


Page 15

PLANT OF WRITING INSTRUMENT Pipariya (plant 50): writing instrument unit The Pipariya plant is located near Silvasa. It was set up in 2007 mainly for the production of writing instruments that are marketed under the brand name “CLARO”. The plant is fully automated and encompasses total integrated manufacturing facilities. The unit is well equipped to produce all parts of writing instruments under one roof. Besides, the quality control department at this unit is modeled in a way to provide the finest products and services to our clientele globally. The Pipariya (50) is also in close proximity of the west end docks and acts ideal hub for our export business. Fig-1:

AWARDS AND RECOGNITION  Super Brand (consumer validated)  PLEX Award

Year: 1983-1987, 1991, 1993-2001, 2003, 2008


Page 16

MARKET PLAYERS The following are the major player in writing instrument industry of India.

Cello It is the biggest player in the industry with 33% of market share and turnover of Rs. 400 Crores. As the present scenario Cello is consider to be Market leader in the industry.

Linc Linc pen-one of India‟s leading manufacturers and exporters of ball pens, gel pens and all other stationary suppliers. Linc accounts for less than 5 % of the Rs 504 Crore western India market for writing instruments. Pen-India, the company has an 14 per cent market share with Cello and Reynolds being the major competitors.

Reynolds G.M pens offer the widest range of writing instruments and accessories in the Indian market. A Varity of writing instruments including ball pens, gel pens, fountain pens, mechanical pencils, markers, handy boards etc, that cater to consumers from the age group of six to sixty are marketed under the brand name Reynolds. The com pany‟s turnover is Rs 175 Crore with 12% of market share.

Today’s Today‟s Pens are an internationally acclaimed Manufacturer & Exporter of High Quality Plastic Ball Pens, Plastic Gel Pens and Refills SINCE 1986. The company has a 17% market share with Cello being the major competitors.

Claro Claro is a new player in the writing industry still it has occupied larger market. The company is growing 15-20 % per year and has a 5% market share. Pen as a product is close to people of all walks of life at different age and of different gender and the association of it is a lifelong one. For some with a good quality pen at finger tips actually elevates their confidence level and make them feel good. According to the 2006 ACNielsen Retail Audit, ball pens forms the biggest chunk of the pen market in India and accounts for 72 percent of the total pen market and followed by gel pen at 28 percent (Refer Table 1). The brand leaders in this market are Cello, Linc, Claro and other players.


Page 17

Chart1: Ball and Gel pen-Market Break-up (value)

Market Break-up

28%

Gel pens Ball pens

72%

ACNielsen Retail Audit Report, April 2006

Chart2: Market share of pen market

Market share 20%

Un organised Organised 80%


Page 18

Chart13: Market share of different companies in organized sector

35%

33%

30% 25%

19%

17%

20%

14%

15%

12%

10%

5%

5% 0% Cello

Linc

Reynolds

Todays

Claro

Others

Market Share

LOCATION ADVANTAGE

1. Tax free zone The biggest advantage and motivation of locating plant in Dadra; Silvassa (U.T) is that it is recognized as zero tax industrial zones. Here sales tax is free up to 15 years. This zone also enjoys income tax benefits.

2. Closeness to financial hub(Mumbai) The location of the plant and company is at Dadra and other plants are also nearby which are very well logistically connected to financial hub Mumbai, which forms companies‟ major banking as well as raw material sources and activities are smoothly undertaken.

3. Infrastructure facilities The national highway no.8 is just 15 km away from the plant as well as railway station of vapi is just 17 km away from the plant. This facility helps the company to regularly procure raw material from distances paces as well as to bring the most efficient manpower at work.

4. Availability of power The cost of electricity available in this area is almost half in comparison to other industrial areas.


Page 19

5. Availability of cheap labor As pen manufacturing does not require a technical expertise except (mould and dye), company is able to procure local workforce and cheaper rates and the supply is abundant.

6. Availability of water facility Water is very essential requirement for the process of pen manufacturing, as it is used for the coolant purposes but company has an advantage in this area as it has its own bore wells and water supply is regular.

PRODUCT DETAILS Types of products The company solely manufacturers the following mentioned products

1. Ball pens: The bodies of the Claro pens are made by toxic materials, imported from Switzerland, which keep people free from infection. The body consists of different several components depending on the complexity of the product and its design. The price of the product depends on the number of parts that make up the body of the pens, also the design and the materials used. The principle of the ball point pen is that within the writing tip a metal ball housed in the socket rotates freely and rolls quickly drying out the writing surface. The writing ball being continuously fed by ink from the reservoir, which is generally the pen barrel or a tube within. These pens dole out equal ink on the paper, which provides absolutely flawless thus provide beautiful writing. 2. Gel pens: They are similar to Ball pen except, they use ink that is water based and in the form of a gel. It is vibrant color wise and considered smoother to write, however it has a short writing length and poor shelf life as compared to b all pens. 3. Refills: company also manufacturers Refills which is most technology intensive part of the pen. The Tip and Ink are carefully balanced with each other to achieve the optimal mix of writing smoothness and ink letdown. The different brands of Ball and Gel pens of the company as under      

Hi Tech Ace A-one Topper Genius And many other brands…


Page 20

The picture of different brands are demonstrated as below

Claro: C-101, Ball Pen. Point-0.6, Color-Blue, Black, Red

Claro: Ace, Ball Pen, Color-Blue, Black, and Red


Page 21

Claro: Sigma, Gel Pen, Point-0.6, Color-Blue, Black, Red


Page 22

Claro: IRIS Ball pen, Point-0.7, Color-Blue, Black, Re d

Claro: Sensation ball Pen, Point-0.7, Color-Blue,Black


Page 23

Claro: Duro Ball Pen, Point-0.6, Color-Blue, Black, Red


Page 24

COMPANY SWOT ANALYSIS Strength of the company The following are the strength of the company:

1. Designing and Mould making: The Company is one of its kinds in the country having its own exclusive designing and mould making facilities. This enables the company to introduce new products at cheaper rate than its competitors at high frequency and much lower risk. As cost of mould making is reduced be 15-20%. 2. Mass manufacturing: companies‟ current production at Hamilton writing instrument Pvt. Ltd. Plant is 10 lakhs pen per day contributing to economies of scale advantage to company. 3. High quality and low cost: Due to mass manufacturing and in house mould making company is able to produce quality products at less cost adding to increased profit margins. 4. Distribution network: Company is dealing with around 32 0000 retail outlets across India.

Weakness of the company 1. It‟s a new company

Opportunity for the company 1. As rural people are becoming more brands conscious it can have an opportunity for company to capture the larger market share in rural areas th en it existing shares. 2. Rising raw material prices of plastic granules and other will force the unorganized and smaller players out of the market giving an opportunity to company to encase on those customers. 3. Effective anti dumping laws in India and other will provide to counter the competition with Chinese companies.

Threats for the company 1. Increased no of domestic players enhancing competition leading to probable price and advertisement war reducing per piece realization. 2. Increasing influx of Chinese products, threatening the domestic market as well as international markets. 3. Duplicity of the product and designed by the unorganized players is also a threat to company and its profit margins.


Page 25

RAW MATERIALS DETAILS The following are the raw materials used in manufacturing of ball pen and gel pen:

1. Plastic Granules: This primary raw material is used in the preparation o f the body, caps of the pen and refill. The company uses Polypropionate Carbonated Plastic. 2. Inks: Company uses free flow korean inks which are imported from Korea. 3. Tips and points: Tips are imported from Switzerland and the size, shape of the tip determines the price of the tips. 4. Packing materials: Company uses various grades of plastic, craft paper and cardboards and corrugated boxes purchased from local markets. Company also uses other packing materials like packaging jars, acetate bottles, blisters, tumblers etc.

PRODUCTION PROCESS OR MANUFACTURING PROCESS OF PEN The complete manufacturing of pen is dividing in the five main parts they are as mentioned below 1. Injection moulding process 





The different components of pen (i.e.) body, cap, Nozzle, grip etc are processed and prepared on the injection molding machine. Plastic granules are heated from 200 to 240 degree Celsius depending upon the product requirement. At this heat level the mixture melts and get converted in to liquid form. The liquid form is then moved to moulds and dyes in the injection molding machine where it is cooled by the water which further gives it shapes and get inject from the machine. If different shades and colored are required then the plastic granules are mixed with color granules in the specified quantity.

2. Refilling process

This is the manufacturing process where already purchased or procured ink from outside markets are filled in to refills used for the pen for w riting purposes. 3. Labeling process(on cap and body of ball pen)

At this stage the already made pen and refills are to be labeled (i.e. printed with company logo Claro and with the respective brand of the pen (i.e.) sigma, accent, century, expert, croma etc. Different machines are used for the process as mentioned below: 

Foiling machines

It is used to print the label on body manufactured as well as on the refill manufactured.


Page 26



Plotting machine

It is used to print the label of the company on caps. 4. Assembling process

Once all the Ball pens and Refills of a particular Batch of Production is labeled this the final stage of Pen Manufacturing here all the labeled and inspects part and lots are Assembled. Finally the Packaged pen is inspected and made ready for Dispatch to stores Department.

QUALITY CONTROL & INSPECTION At Hamilton, a strict quality control is observed which is translated into world Class Quality, and is reflected in the company‟s growth. During the entire Production Process efforts are made to

maintain the quality. The Hamilton Group is processing ahead with a clear vision with the 3 essentials encompassing Quality Control Quality Assurance Quality Optimization   

It is this streamlined approach of the promoters & the company that has enabled the company carves a niche amongst their esteemed consumers today. At the plants, Quality Control requirements are monitored and followed through all major the operations. Their experts ensure that only the finest products are delivered to the clients through every consignment. Their primary aim is to be engaged in optimum quality solutions, where customers requirements are approached with great detail and dynamism. It is the sheer persistence to provide perfection that fulfils each of the company‟s endeavors with far sighted commitment. At the manufacturing plants, Quality laboratories are set up for each area of production where stringent Quality Assurance checks are undertaken. There are four major Quality Control check points are laid out as follows: a) Raw Material Acquiring: All raw materials are inspected against standard

specifications before use. b) Esthetics Check: To assure finish, accurate colors & designs of the products. c) Product Performance: Testing of its performance against standard claims. d) Reliability Test: This is the final test done to assure long life, durability and sustainability of the product and its functionality. State of the Art Quality Laboratories ensures Quality Optimization. All products go through rigorous testing for quality before they are introduced. Moreover, the quality of each product is also


Page 27

reviewed periodically to ensure its consistency in performance, so th at the brand lives up to customer expectations. The Inspection is done as mentioned below 1. Preliminary Inspection: This is done to check out whether the raw materials used are as per

required standards. Heating of raw material (i.e.) Plastic Granules at certain degree and the melted mixture is observed if the mixture appears to be reddish it shows that raw material is not of desired quality and cannot be used for manufacturing process as it can result into defective pieces. Thus, the lot is returned back to the suppliers. 2. Daily Production Process Inspection: A Quality Control Inspector is appointed with the

team members to continue the inspection process. Inspection of the manufactured Ball pen parts is done at every 2 hours manually to check out shape, Durability, Texture, Color etc. and at the end of the day report is to be submitted to QC Production. 3. Post Production Inspection: Once the required batch is manufactured, out of that total batch

some random samples of 50 are taken and if defective pieces exceeds size of 5, then the entire lot is rejected and sent for reprocessing. 4. Final Inspection: Here the same procedure of Inspection for quality is undertaken as

followed during production process, But here the assembled Ball pen are inspected for the fitting, Cap, Grip Holding etc. Random samples are taken from the batch to be dispatched.


Page 28

2.2: OVERVIEW OF PEN INDUSTRY IN INDIA There has been a need to document through the use of writing instrument since the dawn of mankind. Pen and pencils continue to be the staples of everyday life and indispensable items for everyday use. Writing instruments continue to play integral part in the life of particularly every business, school and household. The advent of computers and related technology has yet to make writing industry and instruments slow placed and obsolete. In fact the writing instrument embraces the evolution of technology by incorporating it into new products and using it to enhance business aspects and client services. India is the only country after China to have fully fledged writing instruments industry built purely on the platform of its own domestic market demand. The size of the writing instrument industry in India is estimated about Rs.1800 Crores of which organized player account for 80% of the market share and the unorganized player for the rest. The industry grew by about 15% in 2004-05 and by 13.5% in 2005-06, largely driven by the growth of organized sector, indicating that consumer are responding favorably to quality and branding. It is expected that promotion, easy availability and affordability, branded off make will accelerate and helped the organized sector eat into unorganized presence. The Indian writing instruments market today is still on the path of discovering new niches with ergonomic designed products, promotional marketing items and luxury items but in the coming years it is bound to grow tremendously not only domestically but also in its exports emerging as world leaders in Writing Instruments. India‟s writing instrument industry is reserved for the small sector with a statutory limit on the maximum investment in plant and machinery at Rs 50 crores. As a result critical pen component like refills are manufactured in house, while all non critical components are outsourced. Most Indian companies cater to the “Value for Money” (i.e. high volume low value strategy) while international player caters to premiums segment operating through exclusive distributers. Globally writing instruments industry is estimated at Rs 50000 crores (p.a). China controls approximately 10% of the global markets while the Indian share had so far been mini scale. But given the superior quality perception that “Made in India” pens have over the Chinese; the buying preference of major retailers has been shifting to Indian products and brands. There are over 50 brands In India‟s organized and unorganized sectors. With economic liberalization many premium international brands entered India either independently or in collaboration with Indian manufacturers and distributors. These includes Reynolds, Parker, Cross, Mont Blanc, Cartier, Pierre Cardin and other designer pens from Episode, Frazer and Haws, Christian Dior and waterman.


Page 29

Over the years, the market share flowed from the unbranded to the branded sector. The market is segmented according to the following target audience:   

Students(many of whom depend only on pencils and ball point pens) Frequent users(in offices across commercial and public establishments) Occasional users(housewives and literate manual workers)

While India‟s literacy rate is a high 74%, all literates occasionally use ball or fountain pens. While pen demand among the employed is relatively stagnant, demand among students is experiencing a healthy growth as this segment is more brands conscious. The writing instrument market is dominated by ball point pens accounting for 70% of India‟s total pen demand, followed by gel pens at 20% and fountain pens at 4%. 85% of users use blue, black and red ink. Category

% user share

Students

55-60

Commercial

20-25

Multi-level

15-20

The above information regarding the writing instrument industry has been obtained from the public sources like: Business line, Economic Times, Financial Express, some companies catalog are used along with internet support.

GLOBAL WRITING INSTRUMENT INDUSTRY Globally, writing instrument industry is rising at a healthy rate despite growing computerization. The global writing instrument industry is estimated at Rs 65000 crores. (p.a) where USA markets grew by 5% last year (2005-06) and is expected to grow by the same proportionate at this time too. China controls approximately 10% of the global market, due to its manufacturing process. India is becoming most preferred manufacturing destination after china. Indian product quality is among best in the world, Compared to china mass market products. Indian market is growing healthily at 15 to 20% and is expected to grow with same rate for upcoming 2 to3 years (acc CAGR), where the organize sector now controls 70% market share in 2011 as compared to 54% up to 2000.


Page 30

MARKET AND MARKET INFORMATION (IN DETAILS) 

  



 







The worldwide market size for writing industry is Rs 100000 Crores (p.a),where USA ‟s market alone is $4.68 Billion Dollars (App Rs 21000 Crores). China exports of pens are over Rs 5000 Crores (p.a). India exports of pens are over Rs 200 Crores (p.a). The annual turnover of the industry in India is now estimated at Rs 2000 Crores per annum and is expected to increase at an annual growth rate by 15-20% per annum. About 80% of India‟s pen industry revenue comes from pens with a price range of up to Rs. 15. A small percentage of pens are priced in the range of Rs. 100-300. The market for lower price range pens (up to Rs.15) is growing at 7-8% annually; the midrange pen market is growing faster at 8-10%. India is viewed as a quality supplier, where as china as a cheaper and lower quality products supplier. Germany, Japan, Taiwan & Korea were hubs for the writing instrument industry, but due to cast factor manufactured have started shifting to China and India. Previously Switzerland was the manufacturing center for ball point tips, but now India is emerging as a major Tip manufacturer satisfying not only Domestic demand but Global demand also.

REGULATORY REQUIREMENTS In India as per law, the manufacturing of writing instruments is reserved or falls under the category of SSI (Small Scale Industry Sector). Thus there is ceiling on investment in plant and machinery manufacturing process (Max Rs. 50 Crores), excluding mould making as it is highly capital intensive pert of manufacturing. Of course any EOU (Export Oriented Unit) does not fall under this purview of SSI.

CHANGING CONSUMER BEHAVIOR The purchase of a single pen used to be a considered decision until not too long ago. Today, most consumers buy multiple pens in a single purchase. Because the consumer would go out specifically to buy a pen earlier, today most buy along with a number of other things as part of their monthly provisions. Earlier there was one pen to write, now interestingly even as communication getting increasing psychological, there is different pen, ink, size of different moods, needs and situation. Gone are the days where pen were just considered as merely an item of writing. But now it is a quasi fashion statement something that‟s aligns with your personality, of course still the pen purchase decision is considered as low involvement decision.


Page 31

CHAPTER-3 OVERVIEW OF COMPANIES MARKETING MIX


Page 32

3.1: INTRODUCTION Marketing is so basic that it cannot be considered as a separate function. Marketing has been defined in various ways. The definition that serves our purpose best is as follows: “marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of v alue with others.”

This definition of marketing rests on the following core concepts, needs, wants& demands, products, value, cost & satisfaction, exchange and transactions, relationship and networks, markets and marketers and prospects. “Marketing management is the process of planning and executing the conception, pricing, promotion

& distribution of ideas, good and services to create exchanges that satisfy individual and organizational goals.” This definition recognizes that marketing management is a process involving

analysis, planning, implementation and control; that it covers goods, services and ideas; that it rests on the notion of exchange, and that he goal is to produce satisfaction of the parties involved. Marketing management takes place when at least one party to a potential exchange thinks about the means of achieving the desired responses from the other parties. Marketing management has the task of influencing the level; timing and composition of demand in a way that will the organization achieve its objectives. Marketing management is essentially demand mana gement. India is definitely on its way to becoming am international hub for the manufacture of writing instruments. And the Companies are among the premier manufacturers in the Country. The company reaffirmed its focus on high volume low value category of writing instruments. It has achieved a remarkable success in the Industry.


Page 33

3.2: CORE COMPETENCY The biggest strength of the company which its competitor is not able to capitalize is Its Own R&D, In-house Manufacturing of Mould & Dyes this enables the company to launch Newer and Newer Design and varieties faster than its competitors. It also reduces it production cost giving a competitive price advantage over its competitions in organized sector. Other Things Contributing to Success of the Company are as under:  Extensive Distribution Network, reaching 320000 Retail outlets.  Huge Production Capacities 10 Lakhs Pieces Per day.  Large Varieties of Pen (Ball & Gel) in Different Price Range.  Stationary Items.  Foreign Collaboration & Exportable Product Varieties

.


Page 34

3.3: FOUR P’S OF THE COMPANY Marketing mix is a set of controllable marketing variables that the firm plans to produce the response it wants in the target market.” “Marketing mix is an optimum combination of all marketing components which facilitates realization of company‟s objectives.” “Marketing mix is a set of marketing tools that the firm uses to achieve its marketing objectives in the target market.” “Marketing mix is the blending of 4 inputs or sub -mixes, which form the core of marketing system. They are:    

Product Price Promotion & Place

The Marketing Mix of "HAMILTON WRITING INSTRUMENT PRIVATE LIMITED" is as mentioned below:

PRODUCTS A Product is anything that can be offered to a market to satisfy a want or need. A product means the bundle, which satisfy human needs. HRIPL is major manufacturer of following products 1. Ball Pen 2. Gel Pen 3. Refills 4. Office Stationary. All the above mentioned products are in different varieties, features, Packaging and Labeling which are as under:


Page 35

PRODUCT VARIETIES HRIPL is having large varieties of Ball pen And Gel Pen which is contributing to success of the firm since years. On an Average the Company Launches 15 New Products & Design Every Year out of which majority of them are successful. There are certain office stationary which presently the company is outsourcings from other manufactures. The list of product varieties is as under: Table-1 Name of the Product

Ball Pen/ Gel Pen.

Point/Tip Of the pen(mm)

Price Per Piece MRP.

1. CROMA

Ball pen

0.6

3.00

2. NOVA

Ball Pen

0.6

3.00

3. SWIFT

Ball Pen

0.6

3.00

4. GENIUS

Ball Pen

0.6

5.00

5. BRIO

Ball Pen

0.7

5.00

6. COOL

Ball Pen

0.6

5.00

7. LUCKY

Ball Pen

0.7

5.00

8. X CEL

Ball Pen

0.6

6.00

9. SONIC

Ball Pen

0.6

6.00

10. C-999

Ball pen

0.7

6.00

11. CG-109

Gel Pen

0.6

10.00

12. HONEY

Gel pen

0.6

10.00

13. SUPER HERO

Gel Pen

0.6

10.00

14. FUN(NEW)

Gel Pen

0.6

10.00

15. FUNK(NEW)

Gel Pen

0.6

10.00

16. LUCKY 7(NEW)

Gel Pen

0.6

5.00

17. CG-110

Gel pen

0.6

15.00

18. ELITE

Gel Pen

0.5

20.00


Page 36

19. ROCK 200

Ball Pen

0.7

10.00

20. SMOOTHFLOW(NEW)

Ball Pen

0.7

10.00

21. ANGEL

Ball Pen

0.7

10.00

22. ARIA

Ball pen

0.7

10.00

23. DURO

Ball Pen

0.6

15.00

24. BOSS

Ball Pen

0.7

15.00

25. CR-45

Ball Pen

0.6

15.00

26. CL-333

Ball Pen

1.0

15.00

27. RICO

Ball Pen

0.6

15.00

28. RIO

Gel Pen

0.6

5.00

29. TEEN

Gel Pen

0.6

5.00

30. MASTER

Gel Pen

0.6

5.00

31. SX-5

Gel Pen

0.6

5.00

32. MACK

Gel Pen

0.6

5.00

33. CHAMP

Gel Pen

0.6

5.00

34. SONIC

Gel Pen

0.6

6.00

35. CG-999

Gel Pen

0.6

6.00

36. MILTON 10X

Gel Pen

0.6

10.00

37. SIGMA

Gel Pen

0.6

10.00

38. EXPERT(NEW)

Ball Pen

0.6

90.00

39. CENTURY(NEW)

Ball Pen

0.7

110

40. SOLITAIRE(NEW)

Ball Pen

0.6

130

41. ACCENT(NEW)

Ball Pen

0.6

150

42. JETTA(NEW)

Ball +Gel Pen

0.7

15

43. SIGMA

Ball +Gel Pen

0.7

25

44. ANGEL

Ball +Gel Pen

0.7

25


Page 37

45. ROCK 200

Ball +Gel Pen

0.7

25

46. BIG BENN 100

Ball Pen

0.6

7

47. C-100

Ball Pen

0.6

7

48. ULTIMA(NEW)

Ball Pen

0.6

10

49. IVY(NEW)

Ball Pen

0.6

10

50. JAZZ(NEW)

Ball Pen

0.6

10

51. VISION

Ball Pen

0.7

10

52. CR-54

Ball Pen

0.6

10

53. CL-108

Ball Pen

0.7

10

54. IRIS

Ball Pen

0.7

10

55. BOSS

Ball +Gel Pen

0.7

35

56. IRIS

Ball +Gel Pen

0.7

25

Retractable +Ball Pen

0.7

30

57. REVA(NEW)


Page 38

PRODUCT FEATURES All the above mentioned products are some of the most premium and profitable products of the company over the years due to its features and characteristics. Different pen had different features in it as a reason it was most popular in its segment either it business person, student, service person and others. Features: 

Provide smooth writing



Attractive designs



Fast and smooth writing



Comfortable grip



Stress free writing



Free flowing smudge free writing

PRODUCT PACKAGING The finished Product that is Pen is packed in very attractive packages made from Plastic and Corrugated Box. HRIPL concentrate more on packaging as in the market full of competition packaging is used as a tool of product differentiation. It has attractive packages for it Ball & Gel Pen Packs the packs are normally packed in size of 10 & 5 (Standard Packaging) and in large Packs.

PRICING DECISION It is the exchange value of product or services always expressed in monetary terms. Price is matter of Importance both for the buyer and seller. Price is important factor in purchase decision. To the seller price is the source of revenue and to buyer price is the sacrifice of purchasing power. Price is powerful marketing tool. Thus it must be used correctly from the outset. Therefore all marketing planners must plan an accurate Pricing Decision. At HRIPL, Pricing Policy is decided depending upon market condition, demand, Raw material Price, Competitors Price and Products and other factors.


Page 39

At" HAMILTON WRITING INSTRUMENT PRIVATE LIMITED" Price of the Pen is decided taking into consideration the following Cost. 1. Raw Material Cost 2. Production/manufacturing Cost 3. Transportation Cost. 4. Packaging & Labeling 5. State Wise Price Is Decided 6. Variable & Other Cost is undertaken. 7. Other factors Considered 

Consumer Demand for the Product.



Analyzing the Competitors Price & Product Range.

The Company has specific Price range for the different products for different Zones.


Page 40

PLACE (DISTRIBUTION OF THE COMPANY)  Distribution channel Distribution is an important function of any organization. Making the product available at right place and at right time with less cost is the key objective of any distribution management personnel.

MANUFACTURING FACILITIES

C & F (CLEANING AND FORWARDING) ZONE WISE SUPER DISTRIBUTORS ZONE WISE DISTRIBUOTRS STATE WISE

WHOLESSELERS

RETAILERS

CONSUMERS

(DISTRIBUTION CHANNEL OF HAMILTON WRITING INSTRUMENT PRIVATE LIMITED)


Page 41

The below mentioned is the List of Companies Super Distributors throughout India in different Zones: Table-2 ZONES

EASTERN ZONE

STATE /CITY

CITY/DISTRICT

West Bengal

Kolkata

Orissa

Cuttack/Bhubaneswar

Assam

Guwahati

Bihar

Patna

Jharkhand

Ranchi

Gujarat

Ahmedabad

Rajasthan

Ajmer

Maharashtra

Mumbai Pune Sangli Nagpur Nasik

WESTERN ZONE

Nanded Aurangabad Ahmednagar DELHI

New Delhi

Uttar Pradesh

Lucknow Barieily

NORTHERN ZONE

Kanpur Meerut Agra


Page 42

Shamli. Madhya Pradesh

Indore

Chhatisgarh

Raipur

Andhra Pradesh

Hydrebad Vjaywada Madanpally

Karnataka

Bangalore

Kerela

Malpuram

SOUTHERN ZONE

Ernaculam Calicut Kollam. Tamil Nadu

Chennai Madurai


Page 43

3.4: REGION WISE SALES BREAK UP

ZONES

SALES % EAST 24 WEST 28 NORTH 29 SOUTH 19

Chart4: Region wise sales break up

SALES IN %

NORTH 29%

EAST 24%

SOUTH 19% WEST 28%

It could be analyzed that northern and western region is sharing major chunk of the company total sales in different zone. Company should conduct market research, in other regions identify the consumer behavior, taste and preference and also should conduct survey among the western zone to identify their strengths and should capitalize on that and try to increase the sell in other zones as same as in northern and western zones.


Page 44

PROMOTION STRATEGIES AND DECISION Promotion plays a distinct role in marketing. It is a combined effort of salesman, advertisement and marketing channels. Promotion Mix consists of the Following.  Advertising  Sales Promotion  Personnel selling  Publicity/Public Relation.

Advertisement: It is any paid form of non personal presentation and promotion of Ideas, goods or

services by an identified sponsor. Advertisement can be in the form of TV Adz's, Newspaper & Magazines, Banner & Hoardings, Print Media, and Or Internet. Advertisement of HRIPL mainly uses TV Ad's to promote their sales.

Sales promotion: Sales Promotion is also one of the elements of promotion mix. It is done to

promote the sales of the product. Company uses different Schemes for the Super Distributors, Distributors, Retailers and Wholesalers. Target Selling is the criteria for the Super Distributor if they achieve their target specified they are awarded with commission (Not Disclosed). For Wholesalers & Distributors different Scheme like Scratch Card, Lucky Draw, Discount on Bulk Purchase, different Gifts, Commission etc are used to promote sales.

Corporate sales promotion: Promotional or Corporate Sales are now a day‟s plays a big role in

marketing because the concept of getting anything extra along with the product is becoming popular among the consumers. Companies‟ Promotional department has seized this opportunity and is selling large chunk of its production to corporate customers which in turn is used by them as sales Promotion tool.


Page 45

CHAPTER-4 RESEARCH FINDINGS & ANALYSIS


Page 46

QUESTIONNAIRE ANALYSIS Q1. Which brand of pen do you prefer to write? Ans: purpose Main purpose behind this question is to know the most preferred brand in the current market situation. Brand

Claro

Link

Reynolds

Cello

Today‟s

Others

Responses

6

15

20

41

13

5

Chart5:

Most prefered brand 41

20 15 6

Claro

Respondents

13 5

Link

Reynolds

Cello

Todays

Others

COMPANY

Findings: From the above chart it is analyzed that majority of the rural consumers (i.e.) 41 of them

prefer Cello as a brand to be used, which is followed by Reynolds and Link by 20 and 15 responses respectively where as Claro gets 6 responses. It shows there are a lot of opportunities available for Claro to grab the rural consumer market.


Page 47

Occupation wise classification Brand

Claro

Business Person

Link

Cello‟s

Reynolds

Todays

Other‟s

4

12

4

4

2

Service Person

3

3

10

5

3

2

Student

2

6

15

10

4

1

Others

1

2

4

1

2

1

Conclusion: - Thus, analyzing the above table, it clearly signifies that cello is not only preferred by

majority of the consumers but also preferred highly by all the consumers in different demographic segments. It also shows that Claro is the less preferred brand amon g rural consumers.

Q2. Which type of pen do you currently use? Ans 2. Purpose: - The purpose behind asking this question is to know the consumer preference regarding the type of pen he/she prefers to write and to know the changing trends to their buying behavior. Ball Pen

Gel Pen

Ink Pen

Pilot Pen

78

14

6

2


Page 48

Chart6:

78 80 70 60 50 40 30

14

20

6

2

10 0 Ball Pen

Gel Pen

Ink Pen

Pilot pen

No of Respondent

Findings: - From the above chart it is visualized that majority of the consumer prefers and uses ball

pen. Almost 80% of the respondent says that they use ball pen. And the next best usage is of gel pen by 14%, ink & Pilot pen are least preferred by the consumers in the modern or present market condition.

Occupation Wise Classification Types

Ball Pen

Gel Pen

Ink Pen

Pilot Pen

Business Person

16

1

--

--

Service Person

22

6

2

1

Student

32

6

3

1

Others

8

1

1

--

Conclusion: - It is identified that only two categories/type of pen are preferred by the consumers

that accounts to nearly 92% of responses. Consumer prefer ink & gel pen less. Thus, company should concentrate more in ball & gel pen segments rather than Pilot or roller or ink pens.


Page 49

Q3) Which Color Of Pen Do You Normally Use? Ans3. Purpose  To find out which is the most preferred color by the consumer

Blue

Red

Black

Multiple

62

4

31

3

Chart7:

70

62

60 50 31

40 30 20 4

10

3

0 Blue

Red

Black

Multiple

Responses

Findings:- Blue is the most preferred color for rural consumers and majority of the rural consumers

use blue color as in colleges, schools, corporate and at many other place black is commonly accepted color for writing whereas red is mainly used by the teachers and professors.


Page 50

Q4.) Which Point pen do you normally Use? Ans4. Purpose The question was build to know the technical aspect (i.e) which point of pen the consumer keeps in mind while deciding to purchase a pen and to know which point is more in demand in different segments of consumers.

0.5

0.6

0.7

0.8

61

24

13

2

Chart8:

61

70 60 50 40

24

30

13

20 10

0.5

0.7

0.6

0.1

2

0 1

2

3 Points


4

Responces

Page 51

Occupation Wise Classification Point of Pen Occupation Group

0.5

0.6

0.7

0.8

Business Person

7

2

3

1

Service Person

9

1

2

-

Student

40

20

4

1

Others

5

1

4

--

Findings:- Point ranging 0.5 & 0.6 are more in demand and used in the market by almost 85% of

the respondents. 13% respondent used 0.7 point pen & 0.8 are least preferred 0.8 results into bold writings according to rural consumers.

Q5) Which Characteristics of Pen Influence your Buying Decision? Ans 5) PURPOSE The Purpose of asking this question is to know the features/characteristics of pen that influences the buying decision of majority of the consumers in different segments (i.e) Businessman, Service holder & Student. Features

Point

Grip

Price

Long-Life

Ink

Performance

Response

12

12

26

7

8

35


Page 52

Chart9:

Different charecteristics 12% 35%

Point

12%

Grip Price Longlife

26%

8% 7%

Ink Performance

Findings: - From the above chart it is analyzed that the most influencing characteristic is

performance by 35 responses, which is followed by the price with 26 responses. Long life and ink are least influencing features of the pen impacting consumer buying decision.

Occupation Wise Analysis Characteristics of Pen Occupation Group

Point

Grip

Price

Long Life

Ink

Performance

Businessman

5

3

9

3

2

8

Service holder

1

3

5

1

2

10

Student

5

5

10

1

3

12

Others

1

1

2

2

0

5


Page 53

Q6). Do you stick to Only One Brand? Ans6: Purpose The purpose here is to know the consumer Behaviour (i.e.) is the consumer Behaviour steady to one brand or varying regularly.

Chart10:

Consumer Behaviour on brand

45% 55%

Yes No

Findings: - From the above chart it is analyzed that majority of the respondent does not stick or are

loyal to a particular brand. 55% of responses are not loyal to any brand where as 45% of respondents are loyal and stick to only 1 brand.

Q7) Do you refill Your Pen Regularly? Ans7: Purpose  The purpose of asking this question to know whether consumer refill their Pen or not and if, no ,what is the reason why they do not refill. Response- Here the respondent are required to answer on two options Yes or No Yes-56

No-34

Pen cost is negligible-9 Replacement results in poor performance-18 Refills are unavailable-5 Others-2


Page 54

Findings: - From the above table it is analyzed that majority of the respondents (i.e.) 56% out of 100

refill their pens because in rural area peoples are more price conscious. 34% of the respondents do not refill their pens. The reasons for not refilling is that 2 nd time the refill does not give the original performance in writing, thus this reason accounts for more than 30% consumers who do not refill their pen.

Q8). Which Advertising Media Influence You the Most? Ans8. Purpose The purpose is to know the most effective media affecting consumer buying decision .It also aims to find the media which is mostly preferred and can be used as for the promotion scheme. TV Advertisements

Banners & hoarding

Newspapers & Magazines

Internet

53

19

19

9

Chart11:

60

54

50 40 30

19

18

20

9

10 0 Television

Banners and Hoarding

Newspapers and Magazines

Internet

Respondents


Page 55

Findings: - From the above chart it could be concluded that TV Ads is the most influencing Ad

impacting the buying decision of different rural consumer segments having 54% of the responses. The next most influencing media is Newspaper impacting the buying decision. Internet is the least influencing among all media.

Q9). What is the price range in which you generally used to buy a pen? Ans9. PURPOSE The Main Purpose Is to Know How Much the Consumer Can Spend to Buy the Preferred Brand of Ball Pen which can help the company to take appropriate pricing decision for the target market. 1 – 5

6 - 10

11 – 20

21 – 30

31 - 50

50-above

40

24

14

8

8

6

Chart 12:

40 35 30 25 20

40

15

24

10

14 8

5

8

6

0 1 to 5

6 t0 10

11 to 20

21 t0 30

31 to 50

above 50

Price Range

Findings: - It could be analyzed from the above graph that out of the total responses, rural consumer

mostly favors and prefer pen (Either Ball or Gel) in the price range of Rs 1 – 5. Whereas the next most proffered price range is Rs 6 -10 according to 24 respondents. The high price range ranging from Rs 21 – 50 & above that is least preferred by the consumers.


Page 56

Occupation Wise Analysis Occupation Groups

Price Range 1 – 5

6 - 10

11 – 20

21 – 30

31 - 50

50-above

Business Person

7

9

1

1

2

3

Service Person

11

7

4

4

3

1

Student

17

8

8

2

2

1

Others

5

--

1

1

1

1

Interpretation:- Businessman are ready to Pay up to Rs 6 -10 for their preferred type and brand of

pen, whereas service person also uses pen in the same range but in students category they are not willing to spend more and are use Pen mainly in the Price range of Rs 1 – 5 .

Q10).Which Type of Scheme affects your buying Decision? Ans10. Purpose  The purpose of this question is to know whether the scheme provided by the retailer or the companies motivate the consumer to buy more or not. If no, then which are the other scheme that influences the consumer to buy. It can help the company to select the right promotion mix for selling the product. Extra Refill

Discount On Bulk

Free Pen

Others

27

40

27

6


Page 57

Chart13:

40

40

27

30

27

20 10 6

0 Extra Refill

Discount on bulk purchase

Free Pens

Others

Responses

Findings: - It can be visualized from the above chart that different promotional activities undertaken

by the companies is definitely impacting the buying decision of consumers. But among the promotional schemes the most influencing promotional schemes that affect the decision is Discount on Purchase of Pens (In Bulk more than 1 or 2). The next most influencing scheme is of free Pen given by the companies on purchase of 1 pen (1 per 1 free) impacts the decision. For some 10% of the responses they believe that no scheme impacts their buying decision as pen is a low price product where consumer involvement is less.

Q11) According to You, Which pen Brand Enjoy the Leadership Position in the Market? Ans11: Purpose The main purpose of this question is to find the market leader and also to find which brand enjoys the market leader position. Claro 6

Link

Reynolds

Cello

Today’s

Others

13

20

48

13

--


Page 58

Chart14:

48 50 40 30 20 20 10

13

13

6

0 Claro

Linc

Reynolds

cello

Todays

Responses

Findings: - From the above chart it is clear that cello enjoys market leader position in the market as

almost 50% of responses have revealed that they recognized cello as the leader among all the companies. At 2nd position it is Reynolds. Link and Today‟s are at 3rd position but for Claro it shows that it is a recognized Market Leader by least number of responses in spite the Toughest competitor of Cello in organized Sector as compared to any other players. Interpretation: - Cello is No 1 Position, followed by Reynolds and Link respectively. But the gap

between Claro and cello is huge thus company need to identify the reason and try to remove the weakness in that and strive to be the best in the industry‟s. Other players are not in the same segment as Cello, but Claro is serving almost all the same consumer and market segments that cello also does and also has huge varieties of Pen.


Page 59

Q12) Do you think that brand endorsement by celebrities is really helpful to attract you for buying a pen? Ans12: Purpose The main purpose of this question is to find the effect of brand endorsement on rural consumer and their buying decision.

Chart15:

Responses Yes

No

29%

71%

Findings: - It can be visualized from the above chart that majority of rural consumers i.e. 71% are

influenced by the endorsement of celebrities and 29% do not change their buying decision because of the endorsement of celebrities.


Page 60

CHAPTER-5 CONCLUSIONS & SUGGESTIONS, RECOMMENDATIONS


Page 61

CONCLUSIONS  Cello Brand enjoys the market leader position and it is also preferred by the majority of the rural

consumers for writing among the different brands of Pen available in the market. 

Amongst different types of Pen, Ball pen is preferred by most of the rural consumers and they have ranked Ball-Pen as No 1 amongst different Types of pen.

 Blue Color is preferred by the rural consumer among the various Colors.  Majority of the rural Consumer prefer Ball Point of 0.5 & 0.6 mm as this point size gives the

desired writing to consumers.  Most of the rural consumers Buying Decision is not only influenced by any specific single

characteristic but it is influenced by the combination of more than one. Thus majority buying decision is influenced by Performance of Pen in Total. Of course, in different consumer segments there are different characteristics impacting buying Decision. Occupation Wise Classification o

For Business Person: The most influencing characteristic impacting buying decision is

Price. o

For Service Person: Price & Performance have impact influence on buying decision. It

signifies that Service holders purchase pen not only considering price but along with it some additional features such as Grip, Long Life, etc. which also impact the Decision. But still Price & Performance are dominating features for this Con sumer Segment. o

For Students: - In this consumer segment it cannot be predicted or analyzed that if any

one characteristic is impacting their decision or not. But student wants everything in a Pen i.e. Affordable Price, proper Grip, Long Life and even the performance of the pen. Thus student buying decision regarding pen is influenced equally by almost all features of a pen.


Page 62

 In the Pen Market the consumers are not loyal to a particular Brand, majority of them do not

stick or purchase the same brand. Repeated Purchase is very less. The major reason for this is Pen is a Low Involvement Product, as well as low price but in huge product varieties and Price range. Consumers do not purchase the same brand mainly due to Influx of Newer and Newer Products in the Market by different players and in different Price range ultimately changing the consumer buying Decision.  In the Present market condition where Pen is available even in the Price Range of Rs 3 – 5,

majority of rural consumers believe in refilling their Pen. But as consumer buying behaviors are changing, there are also consumers who do not refill their pen and the number of consumers are less in comparison to consumer (who refill their pen). They do not refill their pen as they Believe that New Pen Cost is Negligible as compared to purchasing a refill For e.g. Claro Genius ball pen is of Rs 5 and refill of the same is of Rs 4.Even the refilling does not give the same writing performance as of the original refill. So consumer refrain from refilling the P en.  TV Advertisement is having a significant impact on majority of the Consumer. Influence of

different Advertising Media is not differing by Profession. Thus, almost all media is having the impact on buying decision of different consumer Segments.


Page 63

RECOMMENDATIONS OR SUGGESTION The Suggestions given are based on the consumer survey and its analysis and studying the Companies Own Marketing Mix at HWIPL and as per my knowledge regarding the concerned subject.  Rural consumers prefer the point size of 0.5 more and the Claro has very less product of different varieties of this category. So, the Company (Claro) should come up with the products in Effective Price range of Rs 5 – 20, with point size of 0.5 targeted to different consumer segments, which can satisfy the consumer needs.  As Claro is new to the market and rural consumers are not aware about the product, company

should focus more on BTL (Below the line) promotional activities and company needs to provide banners or stands for display on the shops due to which the attention and focus of the customers could not be tapped.

 Rural retailers are unsatisfied with the margin and scheme provided by the company and the visit made by the company representatives is very less i.e. once in a 2-3 months. So the company should pay more attention to such activities in rural areas.

 Company should take care of availability of pens at rural retail outlets.  According to the retailers, consumers are not willing to buy Claro pens because in most of the cases they face refill problems. So company need to rectify this problem and should come up with high quality refills which would build customer trust.


Page 64

ANNEXURE Questionnaire for consumer on survey of consumer buying behavior You are required to fill this questionnaire with best of your own will. Information obtained through this survey is for general purpose only and will not be disclosed to anybody else. Q1. Which Brand of Pen do you prefer to write? a. b. c. d. e. f.

Claro Link Reynolds Cello Today‟s Others specify

Q2.Which type of Pen do you currently use? a. b. c. d.

Ball pen Gel pen Ink pen Pilot pen

Q3. Which color of pen do you normally use? a. b. c. d.

Blue Red Black Multiple colors

Q4. Which point pen do you normally use? a. b. c. d.

0.5 0.6 0.7 0.8

Q5. Which Characteristics of Pen Influence your Buying Decision? a. b. c. d. e. f.

Point Grip Price Long life Ink Performance


Page 65

Q6. Do you stick to Only One Brand? a. Yes b. No Q7. Do you refill your pen regularly? a. Yes b. No If No, why a. b. c. d.

Pen cost is negligible Replacement result in poor performance Refill is unavailable Specify if others

Q8. Which Advertising Media Influences You The Most? a. b. c. d.

TV advertisement Banners and hoarding Newspapers and magazines Internet

Q09. What is the price range in which you generally used to buy a pen? a. b. c. d. e. f.

1-5 6-10 11-20 21-30 31-50 50-above

Q10. Which type of scheme affect your buying decision? a. b. c. d.

Extra refill Discount on bulk purchase Free pens Others……..

Q11. According to you, which pen brand enjoy the leadership position in the market? a. b. c. d. e.

Claro Link Reynolds Cello Today‟s


Page 66

f. Others specify Q12. Do you think that Brand endorsement by celebrities is really helpful to attract you for buying a pen? a. Yes b. No

Personal Details

Name: …………………………………..

Age: 18 to 25 Gender: Male

25-30

30-40

more than 40

Female

Occupation: ……………………………………


Page 67

BIBLIOGRAPHY

Books  Kotler Philip, Armstrong Gary, Agnihotri Prafulla and Haque Ehsan. Principles of Marketing.

India: Dorling Kindersley, 2011  Leon G. Schiffman, Leslie Lazar Kanuk, Joseph Wisenblit. Consumer Behaviour. India: Pearson Education, 2010  Solomon Michael.Consumer Behavior . India: Pearson Education, 2011

Web Resources  www.hamiltonindia.in  Company's Draft Prospectus. 

www.orissa.gov.in



“Milton brand maker scripts writing instruments foray” Economic Times. August 25, 2008.

www.economictimes.com  AcNielsen retail Audit Report, April 2006. www.nielson.com


Page 68

A study on consumer buying behaviour of pens at retail outlets in rural areas

Recommend Documents