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Analysis of Competition practices in Pen and Pencil & strategy to improve our sales performance ITC

A PROJECT REPORT

Submitted by

AMIT GUPTA
BATCH: 2010-2012 In partial fulfillment for the award of the diploma Of

POST GRADUATE DIPLOMA IN MANAGEMENT

JAGAN INSTITUTE OF MANAGEMENT STUDIES, JAIPUR MAY-JUNE (2010-2012)

BONAFIDE CERTIFICATE
Certified that this project report Analysis of Competition practices in Pen and Pencil & strategy to improve our sales performance is the bonafide work of Amit Gupta of PGDM Batch 2010-2012 who carried out the project work under my supervision.

Mr. Manoj Aseri Signature: Mkt.Manager ITC Ltd Jaipur Date: Ms. Puja Kudesia Signature: Assistant Professor Sitapura Industrial Area, Jaipur Date:

ACKNOWLEDGEMENT
I am grateful to Marketing Manager Mr. Manoj Aseri, whose encouragement, guidance and support from the initial to the final level enabled me to develop an understanding of the subject. I am grateful to Ms.Puja Kudesia, whose guidance enabled me to complete the project as per requirements.

Lastly, I offer my regards and blessings to all of those who supported me in any respect during the completion of the project.

Name Amit Gupta Batch-2010-12 Date

Table of Contents
Background Study
Total industry size Segment analysis of pens (Ball and Gel) Price point Analysis Retractable and Stick (Ball) Key Trends

Competition Analysis
Cello, Linc and Reynolds Current model of operation Margin Structure and schemes (wherever applicable) Seasonality trend in the SKUs Major contributing SKUs and their contribution to the total portfolio Visibility guidelines if any Sale enablers (brochures/price list/visibility aids) DF pens scenario Premium range of ball pens (>35)

Portfolio gap in Classmate pens

Analysis of ITC portfolio vis--vis competition

Survey/Annexure
Dealer questionnaires/surveys Availability tracker of classmate pens

ABSTRACT
My topic of research is Analysis of Competition practices in Pen and Pencil & strategy to improve our sales performance. The main objectives of this project to analysis the competition between pen and pencil and give some suggestion to improve its sale. In this project the questionnaire is prepared to find out the competition between pen and pencil and by the analysis of the data collected by the questionnaire give required suggestion to improve the sale performance.

INTRODUCTION OF THE COMPANY

The Company Profile
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. ITC is one of India's foremost private sector companies with a Market Capitalisation of over US $ 30 billion and a turnover of US $ 6 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week.

ITC has a diversified presence in:

Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.

While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part." ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and
Acknowledged service skills in hoteliering.

Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach. ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd, provides IT services and solutions to leading global customers. ITC Infotech has carved a niche for itself by addressing customer challenges through innovative IT solutions. ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. ITC employs over 26,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 4, 05,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value.For the Nation. For the Shareholder."

ITC foray into Stationery Business:

In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards. A line of premium range of notebooks under brand Paperkraft was launched in 2002. To augment its offering and to reach a wider student population, the popular range of notebooks was launched under brand Classmate in 2003. Classmate over the years has grown to become Indias largest notebook brand and has also

increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the Classmate brand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launched India's first environment friendly premium business paper under the Paperkraft Brand. Paperkraft offers a diverse portfolio in the premium executive stationery and office consumables segment. Paperkraft entered new categories in the office consumable segment with the launch of Textliners, Permanent Ink Markers and White Board Markers in 2009. ITCs corporate strategies are:

Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organisational capability with opportunities in domestic and export markets. Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology. Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. Ensure that each of its businesses is world class and internationally competitive. Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITCs various businesses. Create distributed leadership within the organization by nurturing talented and focused top management teams for each of the businesses. Continuously strengthen and refine Corporate Governance processes and systems to catalyse the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.

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The ITC Vision & Mission

Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders To enhance the wealth generating capability of the enterprise in a globalising delivering sustainable stakeholder value environment, superior and

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PRODUCTS MIX: ITCs CLASSMATE

Classmate is the lead provider of all student stationery needs. ITC launched its Classmate brand in 2003 with the notebooks category. Subsequently, Classmate added new products to its portfolio which now consists of pens, pencils, mechanical pencils and geometry boxes. Classmate aspires to partner young minds in discovering, nurturing & believing in ideas that reside inside each one of us. Have fun exploring, creating & believing in your ideas, in classrooms & beyond. Ideas that defy & change beliefs; ideas that allow you to lead rather be led; ideas that are inside each one of us but only await self recognition & belief. Your belief makes your ideas work for you & become big; allowing you to be all that you can. Classmate is For the BIG ideas in you.

Classmate Notebooks: Classmate is India's No. 1 Notebook brand. Its range of more than 300

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variants is custom made to take care of varying needs in notebooks, long books, practical books, drawing books & reminder pads segments. These notebooks reach more than 65,000 outlets across the country. The Classmate Notebook range builds in regional preferences and caters to the requirements of All India & State Education Boards. Every Classmate notebook carries ITC's Corporate Social Responsibility message on its back. For every four Classmate Notebooks purchased, ITC contributes Re. 1 to its social development initiative that supports, among other projects, primary education. Classmate recently launched the Classmate Composition notebooks which are 60GSM notebooks with magenta ruling and with increased spacing for superior writing experience.

Classmate Pens: ITC forayed into the pen industry with the launch of Classmate pens across markets offering the consumer stylish and attractive designs. Classmate pens deliver unmatched comfort & neat writing experience. Classmate pens are attractive in design and superior in quality. The pens offer ergonomical grip, precision engineered tips & controlled ink flow mechanisms to keep the writing smudge free and the writing experience a pleasure! Exciting range of pens from Classmate include B Qwick, B Neat, B Fine, B Positive, Volt, UVO, Radeon and Genghis Gelofun, pens. Octane, Crypton, under the Ball point pens and Attila and Trojan under the Gel

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Classmate Pencils: Classmate pencils are designed to write dark and smooth, and provide the user a pleasing and effortless writing experience.Classmate pencils have the strong advantage of lesser lead wear out, hence these pencils Stay Sharp Longer. There is minimal need for sharpening thus, giving fine writing for longer. Classmate Carbon black is a Super Dark pencil offering the dual benefit of lesser lead wear out and darker writing. Classmate has recently launched the Classmate 2B Trilobe pencils that are specially designed with a tri-grip for a comfortable and firm hold. Classmate Mechanical Pencils: Classmate Mechanical Pencils are high quality pencils intended for sharp, precise writing and drawing. They are smart and offer a steady and comfortable writing and drawing experience. These are especially used by those who need to make precise drawings in subjects like maths, engineering etc. Classmate Da Vinci mechanical pencils are well designed pencils with a 0.7mm tip. It has a high gloss translucent body fitted with a firm rubber grip for steady comfortable writing. The 0.7mm HB lead is designed so as to have increased strength and lower breakage. An eraser with cap is integrated for added convenience. These pencils are available in 2 colours blue and green.

Classmate Math Instruments: Classmate Invento & Classmate Victor are part of the range of Geometry Boxes. Both products offer unmatched precision in their instruments. This is achieved by providing die-cast metallic tools that provide flawless accuracy to the student. While "Invento" is positioned as a more premium product carrying interesting trivia and other useful information about the subject, "Victor" provides tinted plastic instruments that make it easier for beginners. Classmate math instrument portfolio also offers Invento compass and the Invento Exam Kit which includes all essential high precision instruments.

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Erasers & Sharpeners: Classmate offers a range of erasers and sharpeners in its portfolio. Classmate sharpeners come in various attractive designs namely, Whistle, Aeroplane, Shuttle and Snail shapes. The Whistle sharpener has an attractive design with an inbuilt eraser while the Aeroplane sharpener has an adjustable switch to vary the pointedness of the pencil lead. It also has the regular and long-point sharpeners which provide a comfortable grip and have long lasting nickel-plated blades. Erasers from Classmate are non-toxic and phthalate-free making it completely safe for use by children.

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Pen industry in India

NATURE OF THE INDUSTRY

PEN manufacturers appear to be making the most of the increasing trend of FMCG, consumer electronics and even pharmacy companies to dish out freebies as part of their marketing campaigns. With an increasing number of such companies opting to offer free pens for every purchase of their products, Indian pen manufacturers see this segment as a potential one in the coming years. Many have set up a separate division to handle this market segment, as the `free-gift-on-everypurchase' campaign uncorked by FMCG companies is acquiring a shrill note. Alliances - Most of the domestic players have strategic alliances with global players. The alliances can be for strategic reasons like Marketing arrangements (Luxor India Sanford group Parker, Waterman), technology transfer (Rotomac India with Mitsubishi Japan) and tapping export markets. Seasonal demand drivers - Schools and examinations, Gifting Occasions (Corporate) Pricing and Margins Traditionally, pen industry experts say that mass-based pens have a profit margin between 10 per cent to 15 per cent. The Parkers make 15 per cent, which goes up to 20 per cent in the school and college opening season. But for the high-end pens like Waterman, the margins vary between 30 per cent to 35per cent. Pricing segmentation - In India the Parker portfolio is broadly divided into functional (Beta, Vector and Reflex priced between Rs 50 and Rs 400) and highline range(Sonnet, Riatio and Frontier priced between Rs 350 and Rs 8,600). At the US-based $2billion Sanford Group, the makers of Waterman, pens start at Rs 2,000 (for the cheapest range) while its 18-carat gold limited edition pen retails at Rs 400,000.

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Distribution Channels-Mass products under the Rs. 10 /- price are sold through the distributors route. These distributors can cater to the requirement of the outlets. Premium products - sold in multi brand high-end lifestyle outlets and also exclusive shops. These outlets also stock watches and accessories and multi-branded outlets typically have a separate corner dedicated to the premium brand. Distributors for premium brands are also sometimes not appointed and the company prefers to directly supply the outlet.(Waterman)For instance Modi Senator has tied up with London-based clothing company DAKS to sell its products through their exclusive shops located in Hyatt Regency in New Delhi and Leela Kempinski in Bangalore. The Senator range will also be available at retail stores such as Ebony in Delhi, Akbarally's chain of department stores in Mumbai, Landmark chain of stores in Chennai, and standalone stores such as The Blues in Delhi, Crossroads in Mumbai and other premium retail outlets. Product innovation-Gel pens market- The market is estimated at Rs 350 crore, and the main players are Add Gel, Montex and Flair brands. Demand Drivers for this segment has been college going Students. Promotion-The pen market is marked by a fierce bout of competition among brands like Jetter, Reynolds, Cello, Todays, Add Gel, Rotomac, Flair, Stic and hundreds of small-scale players. As such, expenditure on media, promotions and celebrity endorsements pen brands are endorsed by the likes of Amitabh Bachan (Parker) Javed Akhtar, Salman Khan, and Hrithik Roshan (ADD Pens) is among the highest in the ad industry.Luxor plans to have an outlay of between 15 per cent to 20 per cent of sales.Linc's ad-spend is about eight per cent of its sales turnover and this year would see a shift in marketing to more above-the-line activity. Classmate, ITCs Education & Stationery Products brand has recently signed Yuvraj Singh, stylish Indian team left hand bat and Soha Ali khan, versatile cine actor as its Brand Ambassadors for its entire range of products. Both Yuvraj & Soha are vibrant icons for the youth of today. They have believed in & pursued their own big ideas, and today, both stand tall in their professions with multi-faceted personalities.

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In urban areas about 10.9 lac. of stores are selling pen, in the selling year of 2005-06 itself recorded a growth of 23%.The Pen market across the world is Rs 50,000 crore and in India market is only Rs 1500 crores and growing at the rate of 9 per cent. ITCs Classmate is a leading player in the Rs 5000 Crore market for stationery products comprising notebooks, pens, pencils & scholastics which is today growing at a rate of 910%. 60% sales come through organized sector and balance from unorganized. And the luxury segment 95% sales come through grey market. Most of the luxury writing instruments are picked by on travel abroad. Off this nearly 99% is sale through stationery and kirana stores. The entire market is disorganized. In terms of quality of pens, India ranks amongst the best in the world, well ahead of even China. But, its export market is abysmally low at Rs 200 crore, while China exports Rs 5,000 crore worth pens every year. The sales peaked in the months of February and March owing to exam season and touched maximum in the last eleven months .There is a consistent month-on-month growth in the writing instruments industry fuelled by competitive pricing and product innovation. Today, one can buy a Gel pen for rupees two and can choose from a wide variety of pens - with easy grip to waterproof ink .Although the writing instrument market is led by well known names like Cello,GM (Reynolds), Jineshwar (Montex) etc. Smaller players such as Lexi, Classmate, Agni and Elkos for examples have also been able to maintain their share on a regional or select pocket level.

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Segment analysis of pens (Ball and Gel)

Ball pens forms the biggest chunk of the pen market in India and accounts for 72percent of the total pen market followed by gel pen at 28 percent. Pens market in India recorded a value growth of 82% Survey done by the Indias leading market information providing company AC Nielson on pen market in year 2006. They come to know that ballpoint pen is still a market leader by acquiring a large portion of the market. There is a ratio of 28% to 72 % for ballpoint to gel respectively.

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Price point Analysis

Classmate Pens Name of Ball Pen Ilet Safari B Qwick B Neat B Fine Radeon Volt B Positive UVO Name of Gel pen GeloFun Octane Attila Trojan M.R.P 7 5 5 5 6 10 10 8 10 5 10 15 25

Cello Pen

Name of Ball Pen Butter Flow

M.R.P 10

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Pin Point Max writer Griper Name of Gel Pen Pointack Gel Classic Gel Gel Stick Igon

10 10 7 15 10 5 10

Reynolds Pen

Name of Ball Pen 045 Jetter Name of Gel Pen Racer Mera Gel Trimax

M.R.P 6 15 to 35 10 5 35

Linc Pen Name of Ball Pen Linc Smart Gel Glaycer Name of Gel Pen Ocean Gel Linc excutive M.R.P 5 7 5 10

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Competition Analysis of Cello, Linc and Reynolds

Some of the major competitors in the Writing Instrument Industry are as follows:

1)Linc Pen

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Various pens under Linc are: Name of Ball Pen Linc Smart Gel Glaycer Name of Gel Pen Ocean Gel Linc excutive M.R.P 5 7 5 10

Linc is one of Indias leading manufacturers and exporters of ball pens, gel pens and all other Stationery Suppliers. Its a leading Exporter, Manufacturer of Ball Pen and other writing instruments in India. Linc pen is India's Prime Manufacturer and Exporter of Ball Pens, Roller Ball Pens and Gel Pens too. To endorse the commitment, Linc has already taken up some programmes with leading

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educational institutions and is closely related to these programmes by financial support and writing instrument. Linc Pens believe that writing instruments form an integral part of education and being responsible corporate citizens, they make humble contribution to the society where literacy seems to be a major issue. This prompted Linc to go for the corporate slogan of Encouraging Literacy, a very apt platform for a company dealing in Writing Instrument. Linc has also put forward a commitment of contributing 1% of its profits for promoting literacy drives. Their Mission is to deliver innovative, user friendly and better-quality products at best value to the customers, keeping in mind the prosperity of the company and its stakeholders. Their Vision is to establish Linc as a global brand, known for its values, assertiveness and the acumen to adapt to the ever-changing environment.

2) Cello

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Various pens under cello are: Name of Ball Pen Butter Flow Pin Point Max writer Griper Name of Gel Pen Pointack Gel Classic Gel Gel Stick Igon M.R.P 10 10 10 7 15 10 5 10

Cello is a leading exporter, supplier and manufacturer of Ball pens, Gel pens and refills. The company took its first step 35 years ago as a low profile enterprise that slowly and steadily grew to be the indisputable leader in the plastic industry of India .In mid 1995-96, Cello came into its own by entering a diversified and highly competitive field of writing instruments. 'Cello Writing Instruments and Containers Limited (CWICL) was born and a notable growth rate was achieved

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immediately. From a turnover of Rs. 2.7 crore in 1995-96 to a turnover of Rs. 240 crores in 2001-02, CWICL has remained committed towards providing a wide range of versatile, top notch quality, state-of-the-art components and foreign technology .From a modest production of 20 lac pens per month, CWICL today produces 500 lac pens per month. The Cello factory has a total area of 1, 00,000 sq. feet and has strength of 3000 workers. With a marketing network of 40 Super Stockiest, 1900 distributors and a professionally trained sales team of over 300, Cello manages to satisfy millions of consumers in every corner of India .Today, Cello is acknowledged as a quality brand in the urban and rural markets of India. In addition, it has been well accepted by a wide range of coporate customers. Cello pens are favorite in Gulf, Middle East and Far East countries, The market of Indias favorite Cello pens, are a part of Rs. 800 crore (us$ 182mn.) Cello Group Launched as one of the worlds best Indias largest pen manufacturers and well known for its dynamism and spirit of innovation, Cello ceaselessly endeavors to bring in the newest and the best of technology to set new benchmarks in quality and innovates constantly to blaze new trails in the market place.

3) Reynolds

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Various pens under Reynolds are: Name of Ball Pen 045 Jetter Name of Gel Pen Racer Mera Gel Trimax M.R.P 6 15 to 35 10 5 35

G.M. Pens International Pvt. Ltd. is the exclusive licensee of Reynolds, France, in India and the SAARC countries Headquartered in Chennai .G.M. Pens has pioneered the writing instruments revolution in the Indian market. Commencing operations in 1986, G.M. Pens introduced to India, international quality writing instruments, and marketed them under the brand name Reynolds. It was also the first company to build a brand in a category that behaved more like a commodity till then .Over the last 20 years, G.M. Pens has invested substantially in building a large manufacturing base with facilities in Chennai and Pondicherry. A state of the art R&D facility, one of the most sophisticated in the Reynolds family worldwide, has ensured that the latest in writing technology is available to the Indian consumers. G.M. Pens offers the widest range of writing instruments and accessories in the Indian market. A variety of writing instruments including ball pens, gel pens, fountain pens, mechanical pencils,

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markers, are marketed under the brand name Reynolds. A continuous focus on consistent quality and a constant endeavor to provide quality products at affordable prices have ensured that Reynolds has been the numero uno in the Indian writing instruments market. A substantial investment has also been made in establishing the Reynolds brand name through the mass media, especially through television and press ads, in an effort to convert the category from a commodity to a brand dominated one. The company's products are available in three hundred thousand retail outlets across India covered through a network consisting of 1800 redistribution stockiest and 27 main stockiest. This is facilitated by a sales and marketing team of over 300 professionals.

Current model of operation

1)Linc Pen

It has 51 super stockiest and over 1200 distributors spread all over India.

Mother Depot

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Channel Partner

Distributor

Wholesaler

Retailer

End-consumer

2) Cello

Every day millions of Cello pens hit the highways and make a dash to reach every little corner of India. No wonder you will find Cello at over 731,000 outlets all over the length and breadth of India. Cello network of 42 super-stockiest, 4200 distributors and an efficient field force of 900 spread across length and breadth of country. Cello employs some of the most advanced supply chain management techniques to meet the size and the spread of demand and has a fully computerized central order booking system intelligently integrated with production, units for efficient production distribution and inventory management. Our factory warehouses, C&F

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godowns, distributions depots, dealer points and transportation crew make one the largest distribution superstructures n the FMCG industry in India.

Mother Depot

Channel Partner

Distributor

Wholesaler

Retailer

End-consumer

3) Classmate

The company will also double its distribution network in two years. Currently it has 900 distributors who make the products available in over 70,000 outlets in India.

WSP

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WD

Retailer

Stockiest

Wholesaler

End-consumer

4) Reynolds

The company' products are available in 3,00,000 retail outlets across India covered through a network of 2500 redistribution stockiest and 27 main stockiest. This is facilitated by a sales and marketing team of over 300 professionals.

Mother Depot

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Channel Partner

Distributor

Wholesaler

Retailer

End-consumer

Margin Structure and schemes Schemes are in Cello, Reynolds, Linc and Classmate is change time to time according to need of the writing instrument Industry. Here I am mention about the approx margin and schemes of these. Maximum time Cello, Reynolds and Linc gives the flat margin and also gives the target means if you will buy up to this amount of pens then they will give you prize like mobile, microwave own and etc like that. Classmate Pens Nameof Ball Pen Ilet Safari M.R.P 7 5 % Margin of Retailer 25%+ Scheme Do

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B Qwick B Neat B Fine Radeon Volt B Positive UVO Name of Gel pen Gelo Fun Octane Attila Trojan

5 5 6 10 10 8 10 5 10 15 25

Do Do Do Do Do Do Do Do Do Do Do

Cello Pens Name of Ball Pen Butter Flow Pin Point Max writer Griper Name of Gel Pen Pointack Gel Classic Gel Gel Stick Igon M.R.P 10 10 10 7 15 10 5 10 % Margin of Retailer 30 %(approx) Do Do Do Do Do Do Do

Reynolds Pen Name of Ball Pen 045 Jetter Name of Gel Pen Racer M.R.P 6 15 to 35 10 % Margin of Retailer 35%(approx) 25% 25%

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Mera Gel Trimax

5 35

30% 25%

Linc Pen Name of Ball Pen Linc Smart Gel Glaycer M.R.P 5 7 % Margin of Retailer 30%(approx) 35%

Seasonality trend in Name of Gel Pen Ocean Gel 5 25% the SKU Linc excutive 10 30% Major of the sales of Reynolds pens in Nov, Dec, March, Jun, July (approx 50% sales of total sales) Major of the sales of Cello pen in Feb, March, Jun, July (approx 40% sales of total sales) Major of sales of Linc pen in Nov, Dec, Feb, March, July, Sept (approx 70% of the total sales) Conclusion- We can say that major sales come from the month of Nov, Dec, Feb, March, Jun, July.

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Major contributing SKUs and their contribution to the total portfolio Major contributing of Cello, Reynolds, Linc and Classmate pens in SKUs are :

Classmate pen Name of Gel pen Gelo Fun Octane M.R.P 5 10

Cello Pens Name of Ball Pen Butter Flow Pin Point Max writer Griper Name of Gel Pen Pointack Gel Classic Gel Gel Stick M.R.P 10 10 10 7 15 10 5

Reynolds pens

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Name of Ball Pen 045 Jetter Name of Gel Pen Racer Mera Gel Trimax

M.R.P 6 15 to 35 10 5 35

Linc Pen Name of Ball Pen Linc Smart Gel Glaycer Name of Gel Pen Ocean Gel Linc excutive M.R.P 5 7 5 10

Visibility guidelines
Cello, Linc and Reynolds are doing their advertisement through the Print Media, Electronic Media, Retailer and Hooding like (T.V Channel, Internet, Newspaper, Magazine, Hooding in the City, Promotional activity in the Educational Institute like School, College and Contest in Popular area like Mall) . They provide Display, Pamphlet and Hooding to the Retailer for the advertisement of their company products.

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Linc Pens Advertisement Through event:-

Christmas celebration with underprivileged children:

To Teachers with Love:

Meet with Shahrukh Khan on 31st August 2010 at Kolkata

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SPEL LINC : SPELLINC, an inter school spelling competition, which has entered its 12th consecutive year is an annual event that tests the English vocabulary skills of school children of standard VIII to X. The SPEL LINC contest over the years has gained immense popularity amongst students and has grown in stature with increased participation. The competition started initially from Kolkata but is now gradually spreading to various other cities in the country. The procedure of selecting the final candidates in each city is as follows: First, preliminary competitions are held in each of the schools (about 150 in number) across the city/state and 3 finalists from each school are selected to represent their schools in the grand finale. Around 450 students from these schools gather at a common event for the SPELLINC grand finale to vie for the winners trophy and other attractive gift hampers and certificates. The competition which has seen participation of about 2,00,000 participants over the years has received overwhelming response not only from the participants but also from various school heads. As mentioned, SPELLINC has spread its wings and gaining popularity in Delhi, Jaipur, Mumbai, Kanpur , Bangalore & Chennai.

East Zone Distributors Lucky Draw (14TH March 2010 Kolkata) : A lucky draw scheme was held for all Linc Dealers of the east zone scheme period being 1st Jan 28th Feb 10. The lucky draw GLYCER BECHO NANO JEETO was held on 14th March in the presence of 150 dealers from the east zone. THE lucky dealer to win the NANO car was Ranjita Traders from Jagatsinghpur - Orissa. 50 consolation prizes were won as well. All clublinc members were

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introduced at the event and a photo shoot was organized. Thereafter was a widespread lunch. And the icing on the cake was All the dealers were invited to watch the IPL match between KKR and the Bangalore Royal Challengers team and they had a great time cheering the KKR team and finally see them take away the winners trophy!!

Rajasthan Royals and LINC Dealer Meet : LINC Pen dealers were in for a pleasant & memorable surprise on the 21st March when they were invited to attend the Dealer Meet at the Hotel Marriot and meet the players of the IPL franchisee Rajasthan Royals over lunch. Held at the majestic Marriot Hotel, the dealers got to meet their on field heroes and interact with the likes of Shane Warne, Yusuf Pathan and Shaun Tait on a one to one basis. The Dealer Meet in Ahmedabad was a wonderful platform to provide the dealers of LINC pens an opportunity to interact with the entire Rajasthan Royal Team up, close and personal. Seen below are the some of the snaps/pictures of the RR players with Linc Pen dealers.

Linc Delears Meet with the Kolkata Knightriders

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Cello Pens Advertisement Through T.V and others:

Reynolds Pens Advertisement:

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Analysis of ITC portfolio vis--vis competition

On the basis of Collected data which is collected from almost 221 retailers of AJMER and from this data a chart shown below is prepared which shows the market share of different pens like Cello, Reynolds, Linc and ITCs pens

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-:

On the basis of above data which is collected from almost 221 retailers of Ajmer, beawer and bhilwara from this data a chart shown below is prepared which shows the market share of different Pencils like Natraj, Camlin and ITCs pencils..

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RESEARCH METHODOLOGY
TITLE: Analysis of competition Practices in Pen and Pencil and strategy to improve This title shows the Analysis of Competition practices in Pen and Pencil & strategy to improve our sales performance. and suggesting the required suggestion. A Research Design is the framework or plan for a study, which is used as a guide in collecting and analyzing the data collected. It specifies the methods and procedures for acquiring the information needed to conduct the research effectively. SAMPLING METHODOLOGY: Sample Size Sampling Area : : 50 respondents Ajmer, Beawer, Bhilwara Stratified Sampling

Sample Methodology :

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TYPE OF DATA COLLECTED:

There are two types of data used. They are primary

and secondary data. Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is data collected from indirect sources PRIMARY SOURCES : Questionnaire consists of a set of questions presented to

respondents. Because of its flexibility, it is by far the most common instrument used to collect primary data. SECONDARY SOURCES : These include books, the internet, the company website etc,

Analysis and FindingsQuestion1. Who are the frequent buyers of Pen in the range of Rs. 5 Rs. 15?

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Question 2. Who are the frequent buyers of Pencil in the range of Rs. 3 Rs. 4?

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Question 3) Maximum sales under the price range between Rs5-Rs15 are for which brands of Pens?

Question 4) Maximum sales under the price range of 3-4 are of which brands of Pencil?

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Question 5) Maximum schemes are being offered by which brands in Pen?

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Question 6) When People buy pens what among the following option do they prefer?(Rank as per the priority)?

Question 7) Maximum sales under the price range between Rs 15- Rs25 are for which brands of Pen?

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Question 8) Do you think that brand endorsement by the celebrities is really helpful to boost up the sales?

Question 9) Are you conscious while purchasing a Pen?

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10) Your best business deal from which company?

FINDINGS
From the chart and table it is very clear that sale of ITCs pen and pencil is less as compared to other pens and pencils sales in the market and the very reason for less sale of ITCs stationery as compared to others are the not proper trade pricing, look bad, cap problem (cap is very

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loose) and grip problem due to triangular shape in Gelo fun and Safari pen, Lack of innovative product, less variety.

SUGGESTION
Retailers do not want to up keep their stock with ITCs stationery (pens and pencils) and other products so the company must try to give appropriate pricing or margins, Display and kind

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schemes to retailer if company wants to increase its sale. In the case of 80% retailer push sale of the pens and pencils product as per there margin. For the more Sale of stationery we should give the attractive category wise incentive to the TSI.

CONCLUSION

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After doing study on competition between pen and pencil of ITC brand the result come out from the study is ITC should focus on their marketing and advertising strategy. The reason behind to focus on the marketing and advertising is the analysis came out through data collected by the questionnaire. The data collected by the questionnaire shows that the market of ITC of pen and pencil is quite low in compression of other brand, show it should be improve by taking corrective action.

ANNEXURES

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Questionnaire For Retailers Name of Outlet Location-

1. Who are the frequent buyer of Pen in the range of Rs 5 Rs 15? A) Student E) Other 2) Who are the frequent buyer of Pencil in the range of 3 and 4? a) Student e) Other 3) Maximum sales under the price range between Rs5- Rs.15 are for which brand of pens? a) Cello e) Reynolds b) Montex c) Classmate d) Linc b) Businessman d) Serviceman d) Professional b) Businessman c) Serviceman d) Professional

4) Maximum sales under the price range of 3-4 are of which brands of Pencil? a) Classmate b)Natraj c)Camlin d)Doms

5) Maximum schemes are being offered by which brand in Pen? a) Cello e) Reynolds b) Montex c) Classmate d) Linc

6) When people buy pens what among the following options do they prefer? (Rank as per the priority)

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a) Price

b) Quality

c) Refillable

d) Schemes

e) Looks of the Pen

7) Maximun sales under the price range between Rs5 - Rs.15 are for which brand of pens? a) Cello e) Reynolds b) Montex c) Classmate d) Linc

8) Do you think that Brand Endorsement by the celebrities is really helpful to boost up the sales? a) Yes b) No

9) Are you conscious while purchasing a pen? a) Yes b) No

10) Your best business deal from which company? a) Reynolds b) Linc c) cello d) Rotomac e) luxur

Sales survey of Pen industry

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1. How much of Average monthly Sales of Cello pens In Rs._____________ 2. How much of Average monthly sales of Linc pens in Rs. ._____________ 3. How much of Average monthly Sales of Reynolds pens In Rs._____________ 4. How much of Average monthly Sales of ITC pens In Rs._____________ 5. How much of Average monthly Sales of Nataraj pencils In Rs._____________ 6. How much of Average monthly Sales of Camlin pencils In Rs._____________ 7. How much of Average monthly Sales of ITC pencils In Rs._____________ 8. How much percentage of margin in Cello Pens ._____________ 9. How much percentage of margin in Reynolds Pens ._____________ 10. How much percentage of margins in Linc Pens._____________ 11. How much percentage of margins in ITC Pens._____________ 12. How much percentage of margin in Natraj Pencils .____________ 13. How much percentage of margin in Camlin Pencils._____________ 14. How much percentage of margin in ITC Pencils. ._____________ 15. Do you have any problem about sales in ITC Pens and Pencils ._____________

LIST OF FIGURES

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1.Model of operation of linc,cello,classmate,Reynolds. 28 to 31 2.Margin structure32 to 34 3.Contributing of cello, reynolds,linc and classmatepen in skus..35 to 36 4. Analysis of ITC portfolio vis.a.vis competition..42 to 44

BIBLIOGRAPHY

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1.marketing.designworldonline.com 2.www.gmarketing.com 3.Advertisment Express 4.Marketing ejournal