In 2002, Luxor Writing Instruments Private Limited (LWIPL) was the market leader in the premium pens1 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 had launched its first brand in 1963 – the ‘Artist’ fountain pen. However, owing to its small scale of operations during that time, the pens were made available only in Delhi and surrounding areas. During the late 1960’s, the Artist brand was renamed as ‘Luxor.’ In 1982, LWIPL launched Pilot 05 microtip pens with needle point2 technology. Priced at Rs.10, this was the first model of Pilot pens to be officially launched in India. The pens were manufactured at the Delhi plant of LWIPL. Though Pilot pens were available in India prior to the launch, they were available only in the grey market. LWIPL invested heavily to upgrade its technology to manufacture microtip pens. These pens were launched with the intention of bridging the gap between ball point and fountain pens. This turned out to be a unique selling proposition for Pilot pens and they were quite successful as they were considered to be an ideal substitute for fountain pens. However, the Pilot pens launched initially were not refillable. Due to the price conscious nature of middle class people in India, the concept of disposable pens was not cherished for long. This prompted the company to launch a new, refillable variant of these pens. Within four years of launch, the annual sales of Pilot pens had increased ten fold to one million pens. Buoyed by the success of Pilot pens, in 1990, LWIPL decided to launch another product under the ‘Pilot’ brand name, Luxor 0.5 mm Pilot V5. Priced at Rs.45. each, these pens were targeted at the middle and senior level executives. The attractive design of the pen and the superior technology (it had a liquid ink feeder3 system) used, contributed to the success of the brand. By 1995, the annual sales of Pilot pens had crossed 10 million. LWIPL decided to go for further brand extension in 1997, and launched the Pilot V7 which wrote bolder compared to V5. LWIPL’s pricing strategy was determined by factors such as the demand for products, their brand image and the nature of the target audience. When Pilot 05 was launched in 1982, it was priced at Rs.10, and it was considered to be expensive at that time. However, in 1990, eight years after its launch, when the demand for these pens reached its peak, Luxor sold them at Rs. 25 each. The price continued to remain the same till early 2003, indicating the stagnant nature of its demand. On the other hand, Pilot V5 was priced at Rs.45 at the time of its launch. These pens were priced high due to its superior technology and the brand image that Pilot pens enjoyed. However, after 12 years of launch, the price of these pens had to be reduced by Rs.5. In 1996, LWIPL launched Parker pens in India. Parker pens were primarily targeted at the upper middle class consumers, senior level executives and bureaucrats. At the time of the launch, the prices ranged between Rs.90 to Rs.10,000. Priced at Rs.90, the “Vector” brand of pens was the cheapest in the range. Within four years, “Vector” became the largest selling Parker brand in India. During the corresponding period, the price was increased to Rs. 140. In 1999, LWIPL launched the ‘Papermate’ brand of pens in India. The brand strengthened the presence of LWIPL in the low priced pen segment. These pens were primarily targeted at the school and college students and were priced in the range of Rs 4 to Rs 13. In 2000, LWIPL launched the Parker Beta range, with prices ranging between Rs.50 to Rs.75. Targeted at the youth, the company sold around one million pens within a couple of months of its launch. In 2002, Parker pens were available in three broad price categories. By that time, the Parker range of pens had emerged as the largest selling brand in the LWIPL pens portfolio, contributing 40% of its revenues. LWIPL also launched a series of innovative products in order to mark certain occasions. In January 2000, the company launched the “Millennium series” of Parker Vector roller pens. These pens had the world map inscribed on them and their unique design enabled people to determine the time difference between countries. Priced at Rs.250 each, these pens became very popular. In November 2001, LWIPL launched ‘Special Moment’, a gift pack consisting of Parker Vector and Parker Beta pens, which had the signature of the brand ambassador, Amitabh Bacchan inscripted on it. These pens were primarily targeted at pen collectors, who were fond of Parker pens. In February 2002, Parker launched the ‘Black and White’ range of Parker Vector ball pens which were priced at Rs.145 each. In mid 2002, the company launched the ‘Football Legends World Cup edition’ of Parker Vector pens in order to cash in on the popularity that the event enjoyed. In December 2002, LWIPL launched the “Gajgamini” range of Parker Sonnet fountain pens. The limited edition of pens (only 500 pens were released) was named after the paintings created by noted artist MF Hussain4 and also had his signature inscripted on them. LWIPL priced these pens at Rs.5000 each.

1. LWIPL owes its success to its marketing strategies, which it adopted. Critically examine the various elements of company’s marketing strategy and evaluate the competitive advantage they conferred on the company. 2. Market segmentation is an indispensable step to succeed in the competitive marketplace. LWIPL seemed to have mastered this aspect of business. Explain how the company segmented its customers and benefited from the market segmentation.