Market Est & Entry Strategy for “Color Lota =3", Aas | Marksfete’12 Mark- Sense | WAST \\ Gitousty salves) Market Size Estimation J Competition offerings | ‘Sub Category Analysis 1 Market Entry Strategy Presented By : Debi Prasad Dash, Senthil Kumar, Alok SharmaIndustry Analysis Indian Stationery market is 10,000 Crore market in 2011. Of this 900 Crore is accounted for art and colors. The market is expected to grow at 15% annual rate in the time to come and waiting to explode. Industry is dynamic and innovative to capture consumer preference. Products are reaching Class C towns, Unorganized segment grab a larger share close to 45% There is more market spread happening for the stationery segment, i in higher consumption. Each market player targets B and C Class cities/ towns so as to expand the market size. the last few years resulting Art Stationery Organized Sector— Market Share Camlin 10% m Faber Castell mi Navneet Canin ts Castell Navn Others1%. Sub-Segment Market 7% share "Color Pencils Crayons eit) r Camlin Faber Castell Navneet Net Profit (Crore) Cay io} 358.32 210.74 244.07 Plastic Crayons, Water Colors and Oil PastelsEardley ‘chidtan Wot chidren| Totalchiléren | Above receiving receiving private India (0-24yrs) | povertyline | uteracyrste | eduestion | private school | education | Target market TL.T% for «14 359561220 | asiesag5a | ysage | ssosss2e2_| 75,000 27% Conversion Total Corwerted} Business per child | Total Business Target Market | Reachss | Reach Ratio children (INR) wero) (67957637 33% | 2242600071 | __s% 1794081,62 40 For the next one year, if Color Crew try on making a modest 8% of Children mi | to buy art products, it may end with a revenue of INR 7.2 crores approx. This is el La Art and Color Market 900 SSE SC IMM | Arts Sub Stationery % in Camiin | 50.16 Cr Water Color share Sales -14% Wee E WE | Camiin Market Share bao as |NIMB | Value of Color Crew Sub-segment | 20,54 17.9 mn School Goers in Urban Inf market Girlsirubaall iii hi CTC a Factor analysis — 10 aftibutes were considered which influenced consumer buying behavior. Combination of variables gave us 3 factors namely Lifestyle/Status, Consumer \_ “‘delightness, Consumer —_/ \ ee J FABER OTT attributes. ~ Attribute Based Perceptual Mapping: ‘The attributes for dimensions considered are Ease of Use, Brand Value, Variety of Choice and ‘Advertisements. The attributes are incorporated into the map as vectors. This results is a joint space map containing perceived positions of brands and Color Crew ~ Perceived to be Ok on _Ease of Use and needs to work on variety of choice and ads. Camlin — Perceived to be best in al attributes \ Faber Castell - Perceived to be Okonease of —_/ Aover other 2 brands. Camlin touches vss more consumers. Golor Grew and Faber Castell don't vary | [=] distinctly in consumer preference for art Sue stationery much. Both are perceived as | [f= ==" good. conta CONSUMER PREFERENCE - Faces em, pon distinctly prefer Camlin over Faber Castell due to ee = price/premium and ease of availabilty and consumer fie reach. Son sil Color Crew and Camiin don't vary distinctly in Sa ae tailer preference for art stationery because of well com ses] 2 established distributor network of ITC in stationery [sr —earat 7 minke) i =| RETAILER PREFERENCE- CAMLIN,COLOR:categories Fee eS ‘ea Pte oye eco [Grmm Simm Candupen hecrayn ard abo saigieateana "saiebetmncta Sin pata is etandcne ate Pecos (12,16 Sr e0cv0e) “uk Sateneincar” —_Paxtoned orhbby pining a rem Wile orcas Colvin sang deroped (26 to ates “pmaalyormairee”—Postonodter soli Pearl ne) “ai Pick aa ga ask — Paras eT Jumbo Creyore —Surlena. stow anstnck Poser tr bognore PrsteCaore Hace anablepsieCrjene—Hgherisanpetengh, Poon lr achool ide ines see) ‘oath shared Peau Paste Crayons Requarsizo, cor imaden Poster oo ares (aatb ese) roots ‘alae Sul custy We HghDerstyc poets, Poston choles i REScRE aa (Proce tug ‘tarteaers utstone ‘oooh ac cee Crave Suda Wo Lan eg, Postado le ‘er ere (Prous aia ‘eonertSienna remus mt Fopls Glace Spor Coleg. ran Poona ir scsi ‘oe satay Exrathik OP aati Ponte orheby Grp orPoses —_Trangiarshaps, Easy Grp Postiond hobby ‘deoee rates Camlin is value for money brand, while Faber Castell is a premium brand GAP ad more varieties and grat consumer experience. The Gap we tnd her i‘Sub Category Analysis and iene GE MATRIX Cr So , __ITC Arts and Stationery PaCS ccccccnae ===] ii: CrOyeral Maker Markl Growth Rato inducer Size Prot Margin Relative to ustry ; Attractiveness Market Grown Compoltors es Paper Kraft, Fate Tech Innovation 2 Color Crew, 6.47.15 Proftebiity Brand Reputation a 4.65, 5.55 Tech Deweopmen, Salt an ison ‘ 7 Market Rivaly Ag and Promotional eg ete Efeciveness Business Strength Pricing (attacking at the weakness of market leader. , Quantitative analysis with primary research on our sample size provided that there consumer show more wilingness to purchase water colors and are least desirable to purchase oil pastels. Thus on the basis of research and strategy priority order shoul be 4. Water colors (high acceptance by the consumer) 2. Plastic crayons (affordable)‘Threat of new entrants The art stationary is a specialized sector, requires a lot of skilful appication of marketing, talent management and investment, barriers could be: Level of expertise required for successful operation Access to resources & distribution network Expected retaliation of existing firms i {0 undertake all above activities and beat the compettors in a short time, Its dificult for a new entrant to compete with the brand strength and reach of the existing major players ike Gamlin and Navneet, but itis possible to enter the mark suppliers in open market at » i ‘competitive prices. Wetec eect > Avaiiabilty of eminent Se eae ‘quality of matorials and et rich industry experience Incian masses through higher a disposable income has resulted in SUnER ETS: increased demand. Macatee ES ES EI e po col >Stationeries are a highly peabemcrelleaeta ‘fragmented industry. They depend on variety to create purchaser >More suppliers compared to buyers reduce their bargaining power. >Lever .,( >Quality oroducts, wide product range and stron« distribution network of competitors ike Camlin and. >Consumer Switching costs are low. Faber Castell Many other craft hobbies are becoming || >No product differentiation and fragmented market, attractive, > Unorganized players making cheap inferioreer oma Plastic Crayons Water Color Place Plastic ry et CilPastels 60 66 55 0 45 35 Crayons WaterColor 65 7260. Phase | Company should feng lG distribute the product toallexisting | focus on Tier 3 distributor ana || ‘ocusor Tiers stationary shops van It should focus only on Metro, Tier- (eficinmaeiea ium ol tie up. ‘School Premises (Premium School): Color Crew should tie Lup with different school for the initial campaign, where the ‘company can put (sponsor) ‘some weekly board, where kids can paint and show their differently abled children : Color Crew can encourage them in activities like paining or sketchmedia and non-conventional approach of lk 05 0H, Mind: Localizedipersonalized message to be Communicated. t should influence the factor like “absence of de-satisfier. It should appeal their FS + Final stage Tor Buying. THK sellers or enforcement through heavy campaign through programs in school painting classes and availabilty, this product must be in the choice set of news paper). ! . 2. Tie up with some comic magazine and cartoon / special offers at the shops, network programs. and vill distribute free gifts to 3. Compelition in Scholl at diferent locations. (Brand | ids (goodies and small the competition as a National level) : arate 4, Adverisement through billboards/ OOH near by pelt poor) nena schools. help in brand retention 5. Advt. on movies (based on kids). (Ex: Camlin: Taare | among the customers. It will Zameen Par movie) create the buzz word among 6. Having email or SMS text message regarding study \ the children and will lead toDistribution Strate | 4: Tie up with Premium Schools: Company should tie up with premium Public/Private schools), where school provides all the pace oe stationary to ‘Advertizing: Per Annum (INR) * Newspaper Advs : 6,00,000 P/A(Rs $20/Sq om) OUT of Home Media’ 3,00,000 P/A ‘standard and the competitiveness Pay back “SMS/Email services: 2,00,000 PA Perlod can be targeted for 3-4 “Compatition’Greativeboard 3,00,000 P/A years. ; “Social Media 50,000 P/A Cash flow of the company will Miscellaneous: 1,00,000 PA, ‘add these new product in its “Movie tie up (Kids) 2,20000P/ABibliography Primary Data & hittp://breport.myiris.com/MR1/NAVPUBIA_20110414.pdf http://articles. timesofindia.indiatimes.com/2011 -05-31/india- business/29603939_1_camlin-dilip-dandekar-japan-s-kokuyo http://articles.economictimes. indiatimes.com/2011-12- 13/news/30511846_1_pencils-cosmetic-range-brand http:/Avwwitcportal.com http:/www.camlin.com http://www. faber-castell.in http://www.crisil.com conse coy a 1- Documents/Houselisting%20English.pdf http://www.moneycontrol.com