Luxor Writing Instruments Private Limited - Marketing Pens in India

"The mass-consumed pens are high impulse, low budget products and thus visibility is most important. Besides, there is no brand loyalty for the bottom segment."

- Supratik Sengupta, Product Manager, Linc Pens and Plastics Limited¹.

Luxor Writing Instruments Private Limited - Marketing Pens in India: Introduction

In 2002, Luxor Writing Instruments Private Limited (LWIPL) had emerged as the market leader in the premium pens2 segment in India, with a market share of 60%. The company held a 10% share in the writing instruments industry, next only to the market leader, Reynolds that held 12%. LWIPL had been in the pen industry for nearly four decades. The company adopted innovative marketing strategies that had made it one of the most popular pen manufacturers in India. LWIPL offered a widest range of pens with leading brands including Luxor, Pilot, Papermate and Parker. In December 2002, LWIPL launched the world renowned 'Waterman' brand of premium pens in India. This was possible after LWIPL's acquisition of a 50% stake in the Indian operations of Newell Rubbermaid3. The company planned to sell imported 'Waterman' pens for the next couple of years and then start indigenous production for these pens. The price of these pens ranged between Rs.3,500 to Rs.50,000 and was made available in nine sub-brands. LWIPL planned to sell these pens to corporate customers.

Commenting on the prospects of the 'Waterman' brand, DK Jain, Chairman of LWIPL said, "Because of its price and brand name, Waterman will certainly have an edge over other premium brands in India."⁴ The company planned to launch an international advertising campaign for these pens. 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.

Next >>

---

1] In an article titled "Penning the success story," by Aloka Majumdar in Business India dated August 25, 1997.
2] Pens priced above Rs.50 as per the website, www.lincpens.com.
3] Newell is a US based manufacturer and marketer of high volume staple consumer products with a turnover of $7 billion. The products manufactured by the company include plastic products such as kitchenware, food storage products, insulated range and bathware. The company offers more than 3,000 products out of more than 100 products have already been introduced in the Indian market. The company made an entry into the stationary products business in 2000 with the aquisition of Gillette's worldwide stationary business.
4] In an article titled "The Write Stuff," in Business India by Devendra Mohan dated December 23, 2002.

---