Luxor Writing Instruments Private Limited - Marketing Pens in India

Introduction Contd...

LWIPL was known for its heavy spending on advertising its products. It had entered into several tie-ups with multinational pen companies that helped in leveraging its current position in the industry. The fact that LWIPL was a debt-free company was another significant achievement. However, with the rising competition and negligible presence in the faster growing gel pens segment, analysts felt that LWIPL had an uncertain future. Analysts also feared that LWIPL's decision to diversify into the hospitality and packaged foods business in 2001-02, might lead to a loss in market share in its core business.

Background Note

The pens industry in India had passed through various phases with the changing tastes and preferences of customers. Till the late 1970s, only two categories of pens existed in the Indian market – fountain and ball point pens.

During that time, people preferred writing through a pencil rather than a pen. Moreover, people preferred fountain pens, as it was perceived to write better compared to the ball point pens. Apart from domestic manufacturers, who manufactured fountain pens on a small scale and sold them at cheaper rates, branded fountain pens manufactured by leading international players such as Monte Blanc, Cartier and Parker were available in India through the grey market.

However, owing to their high prices, not many people could afford to buy them. Camlin Limited was among the noted fountain pen makers in India during that time. By the late 1970s, fountain pens started loosing their popularity as people found it cumbersome to refill the ink regularly. The 1980s witnessed an increased acceptance of ball point pens and Wilson Jotter was considered to be the market leader in this segment.

The pens manufactured by Jotter were popularly called Jotter pens. The market for ball point pens was also dominated by domestic players in the unorganized market. With the increase in demand, existing players started expanding their capacities while many new players began entering the market.

In 1982, Deepak Jain, managing director of Luxor Pen Company (Luxor) entered into an agreement with the Pilot Corporation of Japan to officially launch Pilot pens in India. In 1984, Suraj Mal Jain⁵ started a manufacturing unit for ball point pens and refills in Kolkata and named it as Linc Writing Aids Private Limited. The company launched new varieties such as disposable pens into the market.

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5] Suraj Mal Jain was the managing director of Linc Pens and Plastics Ltd. In 1976, he had set up a small manufacturing
unit for ball point refills in Kolkata.

Case Details

Case Code : MKTG058
Themes: Marketing Mix
Case Length : 12 Pages
Period : 1982-2003
Organization : Luxor Writing Instruments Private Limited
Pub Date : 2003
Teaching Note : Not Available
Countries : India
Industry : Premium Pens

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