Chapter 2 LITERATURE LITERATURE REVIEW REVI EW
2.1 Introduction This chapter presents the review of literature on the consumer buying behavior for writing instruments. Lite Litera ratu ture re Revi Review ew Saun Saunak ak Das Das (202 (202!! con"u con"uct cte" e" a stu"y stu"y on Stu"y Stu"y of #ark #arket etin ing g #i$ #i$ % &enetration' onsumer )uying )ehavior' *ffectiveness of *$clusive )usiness +utlet in ,n"ian &en ,n"ustry. -e mentions that there is a strong correlation between the "emographic profile of the consumer an" his purchase behavior. -e mentions the marketing mi$ strategies that the compani companies es a"opt a"opt for varie" varie" consum consumer er profil profiles. es. nura nurag g /umar /umar (20! (20! survey surveyss the ,n"ian ,n"ian Stationary #arket from an entrepreneurial point of view. -e mentions that there is 1uite scope of "evelopment for stationary market in ,n"ia. -is work clearly emphasies on the feasibility an" the growth of this in"ustry. /irubaap (20! con"ucte" an empirical stu"y on the stationary in"ustry in ,n"ia ma3orly from a consumer bran" association point of view. -e carries out a thorough segmentation an" formulates bran" association vis454vis these segmentation. There have been a limite" number of stu"ies con"ucte" for this market. #ost of them focus on the marketers strategies an" marketing mi$. This stu"y provi"es a logical continuation by provi"ing insights pertaining to the consumer6s en". ,t con"ucts a thorough market mapping by way of primary research con"ucte" at ,n"ia6s ma3or metros.
Market Overview 7ith the opening up of the economy' the top' an" not only premium pro"ucts' entere" the market while high price" ones are being sol" in small' unassuming stores. 8ou think of any global bran" an" its here. These inclu"e "esigner an" status status symbol pens' be it &arker' &arker' #ont )lanc' artier. artier. The global market for writing instruments is estimate" at Rs 90000 cr per annum. -owever' the ,n"ian market is much lower in comparison. The market for writing instruments in ,n"ia is estimate" at 200 mn to :00mn pieces a year. )y value' the total market for writing instruments is estimate" at Rs.22 bn an" is growing at ;< to 0< annually. Thus' ,n"ia6s share is 3ust :< of
the global market. ,n comparison' hina6s share is aroun" 0<. The ,n"ian pen manufacturers are e$porting part of their output.
Maor p!a"er# The ma3or players in ,n"ia inclu"e Linc pen % plastics' =# &ens ,nternational' >lair pen' to"ay6s writing pro"ucts' Rotomac pens' "" pens ,n"ia' Schefiel"' Stic pens' ello' Lu$ar writing instruments' #onte$ an" Le$i international. The 90?90 3oint venture of flair an" rotomac has entere" into a technical collaboration with &entel corporation of @apan to form the ,n"o4 @apan pen manufacturing company. ,t will manufacture pens in the range of Rs. 9 to Rs. 9 un"er &entel bran". ,t is for the first time that &entel has entere" into collaboration with any company outsi"e @apan. ,t has twenty fully owne" subsi"iaries the worl" over' an" si$ factories in >rance' Taiwan' china' Aruguay an" AS. ,t sells pens in 0: countries. The @apanese principals may also start outsourcing components from ,n"ia since the costs are much less here. This is 1uite un"erstan"able as pentel is fin"ing it "ifficult to carry on manufacturing in @apan at viable costs. >lair pens ha" intro"uce" >lair sporty444a range of plastic pens inclu"ing ball points' gel ink' roller' micro tip an" sketch pens. =erman soft ink (use" for the first time in plastic pens! an" 0.9mm e$tra fine swiss tip is a common feature of all flair sporty pens to ensure smooth flow. &acke" in tren"y green an" yellow' flair sporty range comprises fashion' cyclone ball pens' micro ball an" trio pen sets' in metallic' pastel an" fluorescent colours. =illette' owner of parker pens' seems to have "eci"e" to make ,n"ia its e$port hub' as the cost of pro"uction is the lowest in ,n"ia compare" to other countries. ,t is preparing to launch its premium range of pens Bwaterman6 in ,n"ia. =illette is selling its 90< hol"ing in Lu$ar writing instruments to Cewell Rubermai" of the AS as part of the latter6s global takeover of the stationery pro"ucts group of =illette ompany. Cewell Rubbermai" is also buying out =illette6s e1uity sharehol"ing in two smaller manufacturersL& pens an" -i4Line pens. The @E between Lu$ar an" =illette has brought a host of international bran"s. Lu$or has venture" into the arena of customie" pens. ,ts clientele inclu"e )&L' -LL' Dabur' m*$' -&' ,,,' #cDonal"' 7ipro' L#L' Samsung' =illette' Ranba$y an" L=. orporate gift segment in ,n"ia is sai" to be worth a billion' growing at 9<. There is a 90< e$port obligation for
manufacture of writing instruments for lu$ar. Linc ha" targete" turnover of Rs. ;00 mn at the en" of 200040. *laborate plans inclu"e" launching of at least one new pro"uct every 1uarter' launch of other stationary pro"ucts by following the e$isting "istribution channels' an" via capacity e$pansion' greater e$ploration of e$port possibilities. The company plans to increase e$ports two4fol" in 200402 from the year6s level of Rs. 9 mn an" e$pects corporate sales to "ouble. ,n the "omestic market the company targets a sale of :000'000 a "ay from the e$isting 90'000 pieces. s part of its cost cutting e$ercise' a machine was importe" from Switerlan" to bring "own costs by 29<. The recently launche" Tip Top pens were selling at the rate of mn a month. The company launche" Aniball4F9 eye nee"le point' a roller pen. The A)4F9 is available in blue' black an" re" ink colour an" is price" Rs.:9G4. #o"i senator (,n"ia!' a 90?90 3oint venture between the A/ #o"i group an" #er % /rell of =ermany launche" its Senator range of writing instruments. The company has intro"uce" mo"els in the ball pen range. ll are available in "ifferent colour combinations. ,n the secon" phase' the entire Senator range' inclu"ing metal bo"y ball pens' fountain pens an" markers will be offere" to the ,n"ian consumers through retail outlets. "" pens' with its tie up with ohto of @apan an" Donga of korea is a Rs.0;0 mn company in the writing instruments segments. "" =el is emerging as a prominent bran" in the in"ustry with "" Rolle" =ol"' &=4900' "" Diamon" Roller gaining prominence in the market place. ,n fact the company' has emerge" as the largest manufacturer of gel base" pens in ,n"ia. "" =el chiever is its latest offering . To"ays6 7riting &ro"ucts' a Rs. F20 mn company in a tie up with #on mi of /orea has some 90 mo"els in the market. The break up of its pro"uct portfolio inclu"es ball pens (F0
range with prices starting from Rs ;00 an" en"ing way upto Rs I900. artiers6 pantherline with its #ust , an" #ust ,, bran"s also ha" ma"e token entries at price tags ranging between Rs I000 an" Rs 2000. #ont )lanc' &ierre ar"in an" ara D6che are functional (with gol" nibs an" silver or platinum bo"ies! an" works of art or 3ewellery (with "iamon" stu""e" clips!. #ont )anc price ranges from Rs 9000 to a staggering Rs :90000. The global bran"s have foun" their way into the ,n"ian market either through "istribution tie ups or have entere" into manufacturing arrangements with ,n"ian pro"ucers. &ierre ar"in has a marketing % manufacturing tie up with flair pens. &arker ha" a 90?90 3oint venture between =illette an" Lu$ar &en co. arab D6che' the well known swiss bran"' has a marketing tie up with #umbai base" tra"ing house' Sigem. Likewise' Ravissant )outi1ue has been rope" in by artier as its e$clusive licensee in ,n"ia. ,t proposes to launch its own bouti1ue in #umbai an" then move on to other regions. #ont )lanc' the german ma3or' has a tie up with Ra3kot base" *ntrack group for "istribution in ,n"ia.
Re$erence# 1. Kashyap, Predeep, Raut, Siddhartha (2010) The Pen Marketing Book, 2nd edition, U. 2. M!" (entre #or Monitoring o# !ndian "$ono%y) report. &. 'riting instru%ents %anu#a$turers asso$iation ourna.
