PROJECT REPORT

On

“BUYER CHARACTERISTICS AND BUYING PATTERNS FOR

CORPORATE GIFTING WITH RESPECT TO PREMIUM PENS”

FOR

THE PARTIAL FULFILLMENT OF THE AWARD OF THE

“POST GRADUATE DIPLOMA IN MANAGEMENT”

FROM IIMT COLLEGE OF MANAGEMENT

GR. Noida

BATCH: 2011-13

SUBMITTED BY: SUBMITTED TO:Mrityunjay Prof. Sarita Chaudhary

IIMT COLLEGE OF MANAGEMENT

GREATER NOIDA (UP) – 201306

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ACKNOWLEDGEMENT

As we move towards building our careers, there are numerous challenges that we encounter

on our path. Therefore I would like to take this opportunity, to thank those who have given

me their invaluable support to make this research project a reality.

Firstly, I would like to thank Luxor Writing Instruments Pvt Ltd, New Delhi for providing

me an opportunity to train with them and to expose me to the challenging aspects of industry.

I would like to express my gratitude to Mr. Vikas Maan, Deputy Manager for his support

and guidance. He has been an inspirational mentor and helped instill a great deal of self-

confidence in me to achieve my goal. I express gratefulness to Mr. Dilip Gupta, Training

Co-ordinatorfor his continuous encouragement and patience while I trained under her.

I would like to thank IIMT COLLEGE OF MANAGEMENT, Greater Noida for giving

me an opportunity to undergo an Industry Internship and bring out the best in me. I deeply

express my gratitude to Prof. Sarita Chaudhry, my faculty guide and mentor. I am indebted

to him for his invaluable advice and insights in giving my project a direction and also for his

encouraging guidance as a mentor.

Although success is a result of one’s hard work and determination, it cannot be achieved

without the advice, support and encouragement of my friends and family. I thank them all for

their co-operation.

Mrityunjay

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CERTIFICATE OF ORIGINALITY

I Mrityunjay of 2011- 13 batch, a fulltime bonafide student POST GRADUATE

DIPLOMA IN BUSINESS MANAGEMENT (PGDM) from IIMT COLLEGE OF

MANAGEMENT, GreaterNoida, hereby certify that this project work carried out by me at

Luxor Writing Instruments Pvt Ltd, Delhi submitted in partial fulfillment of the

requirements of the programme is an original work of mine under the guidance of the

industry mentor Mr. Vikas Maan and faculty mentor Prof. Sarita Chaudhary, and is not based

on or was reproduced from any existing work of any other person or of any earlier work

undertaken at any other time or for any other purpose, and has not been submitted anywhere

else at anytime.

Mrityunjay

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TABLE OF CONTENTS

No. CHAPTER PAGE No.

Executive Summary 5

1 Objective of the study 6

2 2.1. Introduction

2.1.1 Factors for growth

2.1.2 Consumer Behavior

2.1.3 Buyer’s characteristics

2.1.4 Buying patterns

2.1.5 Nature of the industry

2.1.6 Issues in corporate gifting

2.2 Organizational Introduction

2.2.1 Parker

2.2.2 Waterman

2.3 Competitors

7

3 Literature Review 33

4 Research Methodology

4.1. Introduction

4.2. Study Objective

4.3. Methodology

4.4. Data Collection

38

5 Analysis and Interpretation 43

6 Findings, Conclusion & Recommendations 53

Bibliography 56

Annexure 57

EXECUTIVE SUMMARY

4

This is the study to know about “buyer characteristics and buying patterns of corporate

gifting with respect to premium pens i.e. Waterman and Parker premium which is marketed

by Luxor Writing Instruments Pvt. Ltd., New Delhi. For the study of “buyer characteristics

and buying patterns for corporate gifting” a questionnaire is prepared and the questionnaire

was administered to the persons who deal in corporate gifting for their respective companies.

The respondents are approached directly. The response is collected based on the select factors

which are important from the point of study subject. After the data collection, data is

presented in tables and charts. Analysis of data is done using appropriate statistical tools.

Findings are drawn based on the analysis results, conclusions/suggestions are given further.

CHAPTER – 1

5

OBJECTIVES OF THE STUDY

This research project is a study carried out at Luxor Parker, New Delhi with the aim of

understanding the customer perception about the premium pens.. The project encircles the

following objectives:

1. To study buying patterns for corporate gifts with respect to premium pens (Waterman and

Parker Premium).

2. To examine buyer characteristics for corporate gifting with respect to premium pens

(Waterman and Parker Premium).

It will be helpful for the company to know what people think about the quality, after sale

services and promotional schemes for premium pens. My study will also help the

organization to understand, why customer intends to purchase premium class pens. This study

will also bring to light, on what is the correct time to contact the companies to sell the gift

product (i.e. premium pens).

CHAPTER 2

6

INTRODUCTION

This study investigates about the opinion of customers who buy premium class

gifting.Today's corporate world strives on relationships and networking. In order to stand out

and make your presence felt, gifts are among the easiest and most accessible options. Most

corporate gifts are embellished with the name; tagline and logo of their company, helping

them increase their brand value.

The days are gone when formal gifts were limited to flower bouquets. Every year, the size of

India's corporate gift market grows. Companies are going out of the way to lure both, their

employees and business associates. To capitalize on this lucrative business opportunity, gift

manufacturers introduce innovative gifts in the market. With increasing demand, comes the

need for innovative designs. Whilst designing gifts, the Indian culture must be kept in mind."

An international concept of corporate gifting is developing rapidly in India. Corporate sector

these days try hard on relationships and networking to stand out and be better than the

competition. This concept of corporate gifting solves two purposes together by pleasing

employees and promoting the company through gifts. Most corporate gifts are embellished

with the logo, name or the slogan of the company which helps them to boost their brand value

and give a personalized touch to gifts.

2.1.1Factors for growth:

Corporate gifting industry has emerged as a lucrative business venture. Some of the factors

leading to the growth of this business are:

MNC’s influence: The culture of corporate gifting in India is introduced by Multi-National

Companies (MNC). Indian corporate world has got highly influenced by the various traits

followed by MNC’s and thus giving birth to new business opportunities.

Thanks giving gesture: Corporate companies have started the trend of appreciating work of

their employees by bestowing them with gifts to motivate them. Moreover these gifts by

companies are used to welcome new employees or clients, thank existing ones, or flatter and

impress potential clients with gifts.

Product Line

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Though the concept of corporate and promotional gifting is on an all-time high, the product

line is constantly changing. "For decades now, the most common material used to make

corporate gifts has been leather. Folders, visiting card holders, planners, diaries, bags have

ranked amongst one of the most sold items. Innovative gifts with utility value are also in high

demand.

The current trend of gifting has also veered from the traditional gifts to custom gift hampers,

photo frames, candle stands, chocolates, cakes, table tops, perfumes, watches, candle stands,

pens and lots more. High-end corporate firms gift mobile phones, laptops and a variety of

electronic devices. In today's scenario, personalized gifts are preferred over generalized ones.

One advantage of personalized gifts is that the one who receives it tends to preserve it. That's

what corporate gifting today aims at.

Budget counts

Every company perceives corporate gifting differently. With a variety of products available,

the product rates scale a vast range. Corporate gifting largely depends on the company's

budget. "Corporate gifts are usually customized according to the company's needs. Products

can range from as low Rs 15 to Rs 100000, depending on the product. A few companies gift

electronic items as well, for which the prices are obviously high. The demand for wooden

products is also gaining demand.

With Respect To Pens

It may be for their personal use or also may be for the gifting purpose. The range of premium

pens starts from 850/- and goes up to 10 lakhs. Generally the people who buy this pens are

belongs to upper class of the society. There are some major players in this industry in India.

They are Waterman, Senator, Pierre Cardin Cross, Sheaffer, Mont Blanc and Parker

Premium. These high end brands have 1% market share. In my summer internship, I worked

in a company that is known as Luxor Writing Instruments Pvt. Ltd. Luxor deals for two

premium brands these are Parker and Waterman. Domestic market of pens is 1800 crore

growing at the rate of slightly above the GDP that is 10 % p.a.,organized sector accounts for

more than 60 per cent. Most of the recent growth also has been at the cost of the un-organized

sector. Similar trend was seen in the Ink market where the unorganized sector has largely

been wiped out and it is now dominated by less than a handful of major players such as

Chelpark, Camel and Bril.

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In the terms of quality of pens, India ranks amongst the best in the world, well ahead of even

China. But while China exports Rs 5,000 crore worth pens every year, India barely exports

pens worth Rs 200 crore. Indian manufacturers are only now beginning to focus on global

market.Another area that is opening up for Indian pen manufacturers is the trend among

overseas stationary companies to outsource their pen requirements from India. Industry

sources say that in the last six months, several foreign companies, including Wal-Mart, Office

Depot and Staples of the US, which have so far been procuring pens from China, have visited

India for outsourcing their pen requirements. While at present China has a market share of 10

per cent of the Rs 50,000-crore global writing instruments industry, India has not been able to

corner any significant share of the market.

2.1.2 Consumer Behavior

Premium items are the trinkets and goodies you give away at trade shows or other events.

They typically have the company name branded on them and are of little or no value. If you

need premiums for trade shows or other events, the best advice is to stick with something that

is both useful and consistent with your company's image and product or service line.

For example, a beer manufacturer might give away bottle openers, or a book store might give

away book marks or coffee mugs. Pens, note pads, and refrigerator magnets are also good

choices. Look for innovative features and good quality if you go with these items (or any

premium item), like magnets that have clips to hold larger notes, or pens that will stick to

your file cabinet. Just like with your product line, you want your premium items to stand out,

be of good quality, and make a favorable impression.

The study of consumer behavior is how individuals make decisions to spend their available

(time, money, effort) on consumption related items. It includes the study of what they buy,

why they buy, where they buy it, how often they buy it, and how often they use it. These

questions will help us in understanding better what factors influence the decision making

process of the consumer. It is believed that the consumer or customer makes purchase

decision on the basis of receipt of a small number of selectively chosen pieces of information.

Thus it will be very important to understand what and how much information is required by

the consumer to help them evaluate the goods and services offered. Consumer behavior was a

relatively new field of study in the mid-to-late 1960’s.

2.1.3 BUYERS CHARACTERSITICS

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Generallythe People who want to buy premium goods are more focused for their status and

they buy premium goods to symbolize the status. They are quality conscious ant not bother

about price. People use premium goods for mentioning a status in the society or to influence

the other people. The prices of premium goods are generally much higher than normal goods,

only a niche segment of the society can afford such type of things.

The above model, marketing and other stimuli enter the customers “black box” and produce

certain responses.Marketing management must try to work out what goes on the in the mind

of the customer – the “black box”.

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The Buyer’s characteristics influence how he or she perceives the stimuli; the decision-

making process determines what buying behavior is undertaken.

The first stage of understanding buyer behavior is to focus on the factors that determine the

“buyer characteristics” in the “black box”. These can be summarized as follows:

Business

Individuals or groups tasked to make purchases on behalf of a company or organization. The

purchases serve no personal interest, need, or want. The purchase serves the needs and

interests of the company or organization. Purchases are typically for use, inventory, resale, or

assetpossesion.

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2.1.4 BUYING PATTRENS

Premium goods are sold throughout the year but in the case of premium pens its sale is

increase at the time gifting seasons like Diwali, New Year etc. Generally people use to give

pens as a gift. Being premium goods precious metals, styles, visual effects and place of

purchase affect the people to buy premium pens. People also influence by after sale services

for the premium pens. People who want to buy premium products are like a completely new

and different product.

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2.1.5 NATURE OF THE INDUSTRY

Gifting is the ultimate in ‘emotional consumerism’ as buyer behaviour is being driven by

emotions. People buy and give gifts to build and enhance their emotional connection withthe

receiver. In other words, the gift itself is a means to an end and that end is to strengthen

relationships. Whenever the overall objective of the shopping experience is for the customer

to buy something to achieve a special sensation, there is an opportunity for marketers to

enhance the experience by focusing on the action of gifting rather than focusing on the gift

itself.

It can be argued that expenditure on gifts may be more valuable to a brand than other types of

consumer spending due to gifts having the ability to emotionally connect people. The nature

of the gifting industry presents extraordinary advantages, combining the efficiency of

sampling with the credibility of word-of-mouth, thus intensifying the persuasive effect upon

both givers and receivers. In this way, gifting magnifies and intensifies the marketing power

to influence future shopping behaviour of both the gift giver and receiver. Additionally, if the

gift is well received, it can help create emotional links to the brand itself, thus enhancing

brand loyalty.

Marketing Considerations

The first decision in the use of corporate gifts is to define the role of such gifts in

themarketing communication mix. If used properly, corporate gifts and incentives could

supplement and reinforce other elements in the mix.

Advertising –corporate gifts provide a more tangible reflection of advertising spending and a

lasting and useful advertisement for the recipient, a cost-effective supplement to mainstream

advertising.

Public relations – corporate gifts can help increase awareness through theirtarget ability and

creative impact. Corporate hospitality events can be used to encourage personal

communications.

Sales promotion – corporate gifts can accelerate the purchasing decision,speed the

introduction and acceptance of new services and generally getcustomers to act faster than

they would in the absence of any incentives orgifts.

Personal selling – corporate gifts are often used to remind customers of aCompany long after

the activity of personal selling has been completed. Verbalcommunication is soon forgotten.

However, gifts and incentives form areminder of a company that may tip a business decision

in your favour.

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2.1.6ISSUES IN CORPORATE GIFT GIVING:

There are three main issues in the use of corporate gifts. The first is marketing related: The

role and purpose, the budget and the recipient; the second involves practical considerations:

the choice of right gifts and the timing etc. The third relates to cross-cultural and ethical

concerns: how to give gifts overseas and how to distinguish gifts from bribery.

Pen Industry:

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 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 to 35 per cent.

Pricing segmentation-In India the Parker portfolio is broadly divided into functional (Beta,

Vector, Reflex etc. priced between Rs 60 - 600) and highline range (Sonnet, Riatio, and

Frontier etc. priced between Rs 1100 – more than 10 lakhs). At the US-based $2 billion

Sanford Group, the maker of Waterman, pens start at Rs 2,000 (for the cheapest range) whiles

its 18-carat gold limited edition pen retails at Rs 400,000.

Distribution Channels-Mass products under the Rs. 10 /- price are sold through the

distributor’s route. These distributors can cater to the requirement of the outlets.Premium

products - sold in multi-brand high-end lifestyle outlets and also exclusiveshops. These

outlets also stock watches and accessories and multi-branded outletstypically have a separate

corner dedicated to the premium brand.Sometimes distributors for premium brands are not

appointed and the companyprefers to supply directly to the outlets.

Promotion-The pen market is marked by a fierce about of competition among brands like

Jetter, Reynolds, Cello, Today’s, 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 Bachchan (Parker) Javed Akhtar, Salman Khan,

and Hrithik Roshan (ADD Pens) — is among the highest in the ad industry.

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2.2 ORGANISATION INTRODUCTION

Vision

One can lose sight but should not lose vision’ is the success mantra of DK Jain, chairman and

president of Luxor Group. He said to THE FINANCIAL EXPRESS “We are going to have

more acquisitions in the future to ensure that our product is well spread in the international

market.” The director of Luxor group has only vision that is to increase significance of the

‘Made in India’ across the world.

Mission

To provide latest technology based pens in India.

Explore the markets for other products like Highlighters, Markers etc.

To give good after sale services in premium class pens.

To compete the competitors by the improved technology in the pens.

Luxor Writing Instruments Pvt. Ltd. is India’s leading pen manufacturing company. It was

started in started in the late 1960s. At that time there were only two types of writing

instruments available in those days – wooden pencils and fountain pens with rubber grips and

metal levers. Mr. D.K. Jain founder of the company at the age of just 19 years entered the

manufacturing line for pens in the face of stiff opposition from his family. In 1971, Luxor

pioneered the manufacturing and production of Fiber Tip Color Pen sets in India followed by

the introduction of Micro Tip and 3 -D Roller Ball pens a few years later. An exciting and

mesmerizing range for children was launched in 1975 which included not only sketch pens,

plastic crayons, color pens but also tattoo markers, dual color pens and magic pens These

come in various styles and types to fire the imagination of children. 1982 was the year of

Pilot Hi-tech needlepoint pens in India, in association with Pilot Corporation of Japan. In

1986, Permanent Markers and Fluorescent Hi-lighters were introduced. In late 2000, The

Gillette Company signed an agreement to sell its stationery products business to Newell

Rubbermaid, including Gillette's 50 per cent stake in the 50:50 Luxor-Gillette joint venture in

India. The Gillette stationery products business comprised the PaperMate, Parker and

Waterman writing instruments brands and the Liquid Paper correction products franchise, as

15

well as related assets. Subsequently, the D.K. Jain promoted Luxor group bought out the

foreign partner, the $9-billion Newell Rubbermaid, from its 50:50 joint venture, LWIL. With

this acquisition, the Jain family is now the 100 per cent owner of LWIL. Luxor continues to

hold rights to manufacture, market and sell all SANFORD`s globally best-selling brands such

as Parker, Waterman and PaperMate. A division of Newell Rubbermaid (a fortune 500

company) — Sanford –is a $350-million leader in the writing instruments market, with one

pen in five sold in Europe. It has a history of brand acquisitions and has a multiple brand

portfolio. Some of the other brands in its portfolio include Parker, Waterman, Reynolds,

Paper Mate, Rotring, Sharpie and Sensa.

For Parker, LWIL has achieved manufacturing indigenization to the tune of 80 per cent, with

products falling in the range of Rs 65-500 being produced locally. The remaining 20 per cent,

which falls in the premium segment, will continue to be imported. Import duties of writing

instruments priced under Rs 100 average 40 per cent, while duties to the tune of 60 per cent

have to be coughed up for importing models priced above Rs 100.

While the cash cow for LWIL remains the Luxor brand umbrella, accounting for 60 per cent

of the company's turnover with the rest coming from Parker.

Parker already accounts for 40 per cent share of LWIPL's turnover. While Brand Luxor will

remain the mainstay for LWIPL to mop up volumes at the mass end, an ambitious strategy

for Parker is being thrashed out. The objectives for next fiscal: to sell 10 million units of

Parker, and turn it into an Rs 100-crore brand against the current Rs 50-crore sales. Luxor,

today, is the largest manufacturer of writing instruments in India, producing over 1,000,000

pens per day. And, they came in all shapes, sizes, designs and colors. It is the only brand in

the Indian writing instruments that is exported to every corner of the world and is a registered

trademark in some more than 110 countries. But Luxor is more than just a writing

instruments company. Its range of products includes water colors, crayons, and ink-based

sketch pens. In short, Luxor is a well-rounded, creatively infused company that means many

things to many people. The tie-ups with the big international brands by accepting invitations

from Pilot, Parker, Paper mate and Waterman to be their preferred business partner in India,

alongside its own modernization, enabled Luxor to firmly establish itself in the image-driven

segment of the Indian market. Expanding the consumer base by exporting to more than 75

countries took the Luxor brand beyond India's borders. Today LWIL has 15% market share in

India.

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2.2.1 Parker

The history of Parker Pen Company dates back to 1891. The company was founded by

George Safford Parker in Janesville, Wisconsin. He started this small business as he wanted

to make reliable pens for his telegraphy student. By capitalizing the patent of 'lucky curve'

that helped in minimizing the danger of leaking, he quickly moved to a commanding position

in the fountain pen industry. Before the development of 'ballpoint pens' (that is from 1920's-

1960's) Parker was number one in worldwide writing instrument sales. George Stafford

Parker moved several steps ahead in the Pen manufacturing market after his introduction of

'Quink', a quick drying ink which eliminated the need for blotting. This creation led to the

development of the most widely used model of the fountain pen in history Parker 51. A

statistics states that over $400 million worth of sales were made of this fountain pen in 30

years of history. Since then Parker Pens are frequently opted for signing the most important

documents, such as the World War II armistices .The company has never gone downhill from

the date of its creation as everything what Parker made was of interest to the collector, to the

user, or to both. The company was the first to introduce pen with a metal cap, the first pen

that could fly (could be used in an airplane without leaking), and the first pen ever to fill itself

by capillary action. Parker finally got into ballpoints in 1954 after developing what it

considered a good point. The finest material used in parker pens till date are gold, silver,

vermeil, platinum, rhodium, stainless steel, resin and Hi-Tech pigments that offer innovative,

shimmering effects.

In 1993 parker was acquired by the Gillete company that already had acquired one of the

best-selling disposable ball points Paper Mate brand. Gillete later sold the writing instrument

division in 2000 to Newell Rubbermaid. In 2001, Parker and former arch-rival Waterman

were taken over by office-supply giant Sanford. Parker has introduced several models

(including fountain pens) at lower price points, and has retained the trusty Duo fold,

Centennial and Sonnet series. In 2004 Parker 100 became the face Parker for the 21st

century. It combined avant grade looks and an affectionate reinterpretation of the unique

styling of its famed predecessor, the 51. The demand of Parker pens are such that the

manufacturers have to keep up the fast production with the expanding demands for the pens.

All Parker pens come with a limited 2 Year warranty. The Parker models are the emblems of

excellence that own fine craftsmanship, character, luxury and commitment. It has crazed the

whole world to own one for an authoritative look.

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18

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2.2.2 Waterman

When Lewis Edson Waterman, a 45 year old insurance broker, was getting ready to sign an

important contract, thinking it would be more practical and stylish than the dip pen and

pocket inkwell which he usually carried, he bought a new fountain pen just for the occasion.

However, when the time came to sign, the fountain pen refused to write. After the third

attempt, Waterman rushed back to his office for another copy, but when he returned, the

customer had signed another contract with a rival broker who had beaten him to it. Disgusted

with the behavior of his pen, Lewis Waterman determined to devise a “real” fountain pen—

one that he could depend upon at all times.

Before setting up his first “factory” in 1883, Waterman analyzed the air/ink exchange of the

fountain pen in his brother's workshop. It was here he discovered that the problem lay in the

function of the “feed,” through which the ink flowed to the nib. In order for the feed to be

successful, one or more channels had to conduct the ink to the pen point, but also had to

permit an intake of air to control the ink flow. After numerous experiments, he developed the

“Three Fissure Feed”, a structure based on the principle of capillary attraction. This system

was soon adopted by all manufacturers of fountain pens, and Waterman's slogan quickly

became “the Daddy of Them All”. A new era of reliable fountain pens had dawned.

The first Waterman fountain pen was baptized the Regular in Waterman's workplace at 136

Fulton Street in New York City. In the course of one year, six dozen pens were handmade, to

which Waterman personally signed a five year guarantee against any defects. In June,

Waterman applied for a US patent on his invention, which was granted on February 12, 1884.

During that same year, Waterman's friend, E.T. Howard who was an experienced marketing

agent, counseled him to advertise regularly in a magazine. Success of the ad soon led all of

Waterman's friends to contribute to the opening of the first true factory. An agreement was

signed with a company in New York which made gold nibs, and the Ideal Pen Company was

created, Mr. Waterman producing 200 pens over the next three-plus years.

In 1888, the firm was renamed L.E. Waterman Company. In the following year, at the

Exposition Universelle in Paris, Waterman was awarded a bronze medal—the highest honor

awarded to a fountain pen designer and manufacturer. In 1890, Waterman continued

experimenting and creating new designs for his pens. The cap became longer, rings were

added, and various new pen finishes appeared, such as barleycorn in gold and silver.

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In the year 1901, at age 64, Lewis Waterman passed away. Up to the very end he very closely

monitored every detail of the manufacturing process, defining the shape, working out the

right proportions, and inventing new styles. In the eulogy at his funeral it was said,

If every man who had been blessed by the use of one of the Waterman pens should put a rose

on his grave, there would be a mountain of roses.

Annual production rose to an astounding 326,000 fountain pens. Success followed upon

success, and by 1903 Waterman pens were sold throughout the United States and Canada.

Frank D. Waterman, Lewis Waterman's nephew, decided to carry on and extend the

Waterman name by crossing the Atlantic to conquer Europe. During the early 1900s, other

innovations continued pouring out into the market, such as the “Sleeve Self-Filler,” the first

model to contain a rubber ink sack that filled by pressing and releasing a metal bar which

appeared when the sleeve on the barrel was pulled down. Another innovation, the “Coin Self-

Filler,” was developed, in which the ink sack was compressed by inserting a coin in a slit on

the side of the barrel.

After these series of “self-fillers”, the “Lever-and-Sac” filling system was introduced in 1913.

A lever set in a metal housing, and inlaid in the pen barrel, was raised, thus compressing a

flat bar on top of the sack. Over the next 30 years, this mechanism was to be found on

numerous and extremely diverse models, from virtually all brands. In 1921, William I. Ferris,

who had joined the company 36 years before, was named vice-president; contributing

significantly to the Company's mission to achieve worldwide leadership, he was instrumental

in developing a pump-type filling system. It was one of the first models to fill by a piston

operating at the end of the holder.

In 1926, a Waterman rep by the name of Jules Fagard established a quasi-independent French

subsidiary called JiF-Waterman, to manufacture Waterman pens in France. In the following

year, Monsieur Perraud, a research worker for JiF-Waterman, invented the ink cartridge. It

consisted of a small glass tube with a cork-stopper. This invention was not patented until

1936, but remained a JiF-Waterman exclusive for twenty years.

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In the many years to come, Waterman managed to overcome struggles and boundaries which

led to more inventions and pens that constantly impressed the world of fine writing. Here are

just few of the pens that continued the Waterman chapter:

1953: The famous CF pen was born.

1978: Goutte was launched.

1992: TheEdson Collection debuted.

1994: The Hemisphere Collection was introduced.

1996: L'Etalon entered the world of luxury writing instruments.

After well over a hundred years, Waterman is one of the world's largest writing instrument

manufacturers. In a variety of materials, colors, designs, and styles, each Waterman pen

provides a high quality of performance that allows the personality of the owner to shine

through. Current collections include, but are not limited to Phleas, Expert, Carene II and

Exception renowned for its manufacturing quality and the beauty of its product range;

Waterman is committed to pursuing its role as the creator of dreams and of writing pleasure.

Most recent is Serenite Collection: Continuing Waterman’s tradition of presenting the world

with singular designs, the Serenite literally bends all the rules—not enough to break, but

enough to expand the pen lover’s perception of what a writing instrument should be.

Luxor Writing Instrument Pvt. Ltd. is ISO 9001:2000, 14001 & OHSAS 18001 Certified

Company and has its one manufacturing unit and head office in Phase III Okhla, New

Delhi.LWIL’s product line is as follow:-

1. Highlighters

2. Permanent Markers

3. White Board Markers

4. Fine liner Markers

5. OHP Markers

6. Roller Ball Pens

7. Water based markers

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8. Plastic Ball Point Pens

9. Metal Ball Points Pens

10. Color Pen Sets

All the above products of company come under the LWIL umbrella, accountfor a 10 per cent

share of the branded market, with a combined annual production figure of over 220 million

pens.

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Organizational hierarchy and Distribution Channels of LWIPL

In LWIPL Ms. Pooja Jain is executive director of the company. She is daughter of Mr. D. K.

Jain who is founder of the company. The President of the Luxor group is Mr. Ganesh

Mahalingam. Mr. Rajnish Gogia is the Sr. Vice-president of the company taking care of the

alternate channels of the company like B2B, Modern Trade, E-commerce, and SIS. In the

sales and marketing point of view there are four zones that are East (Kolkata), West

(Mumbai), North (New Delhi) and South (Bengaluru). In the North zone for the sales and

marketing there are three persons. Mr. Amit Giri (Business Development Executive) deals

with retailers and distributors,

Mr. Devender Singh (Corporate Manager) deals with corporate people for bulk sale and third

is Mr. Sanjeev Singh who deals with premium stores for the selling of premium pens. There

is also a Regional Branch Manager (RBM) Mr. Shantanu who is chief of north zone office

and handle the sales of both premium range and functional range.

For the distribution of premium pens in NCR Region Company has a distributor named as

Tropicana Enterprises Pvt. Ltd. in Okhla Phase I, that deals with retailers and premium

outlets in New Delhi and get the imported pens form the CSP (Central Stock Point) of the

company that is situated in Okhla Phase II, But for the corporate deals company believe in

direct selling there is no role of distributor.

24

2.3 COMPETITORS

There are various companies which are manufacturing and selling premium class pens in

India whom we quotes as competitors of Waterman and Parker premium. Few of them are

Mont Blanc, Cross and Sheaffer, known as major competitors of Waterman and Parker

premium.

2.3.1 Mont Blanc

This company was founded by the stationer Claus-Johannes Voss, the banker Alfred

Nehemias and the engineer August Edelstein in 1906, the company began as the Simple Filler

Pen company producing up-market pens in the Schanzen district of Hamburg. Their first

model was the Rouge ET Noir in 1909 followed in 1910 by the pen that was later to give the

company its new name, the Mont Blanc. The first pen (a fountain pen) known as the

Meisterstück or Masterpiece (the name used for export) was produced in 1925. Today the

Montblanc brand can be found also on other luxury goods besides pens, for instance there are

Montblanc brand watches. The company was successful despite its founder, Edelstein, fleeing

to the US to avoid prosecution for stealing company funds in 1909. In 1934 the company

25

changed its name to Montblanc-Simplo GmbH, and introduced its first piston filler. The

trademark most clearly identified with MontBlanc is the white stylized six-pointed star with

rounded edges, representative of the Mont Blanc snowcap from above, the symbol being

adopted in 1913. The number "4810," the mountain's height in meters, is also a commonly

recurring theme. The star is also referred to as edelweiss, an indigenous perennial that grows

in the alpine forests and mountains of Europe. Less romantically, the star is also referred to as

"the bird splat" by fountain pen collectors.

Special and limited editions

Next to various Limited Editions like the Patron of the Art Series with only a few hundred of

them being produced around the world, there are some Limited Editions produced from

editions of 4810 (the height of ) to those in tens of thousands.

The Patron of the Art (POA) Series is found in editions of 888, increasing their appeal in

Asian markets. These models are intricately adorned in diamonds, rubies, and other precious

stones into precious metals typically in 18K gold. A signature mark on these includes

a mother of pearl MontBlanc Star adorning the cap.

Although cheaper, the MontBlanc Writers Edition has been profitable. These pens are

launched each year, commemorating the life and work of a particular writer, with their

signature engraved into the cap of the edition. Usually, a symbol of their most distinguished

work is engraved onto the nibs, of the fountain pen versions. Montblanc use "aged resin" in

the caps of the pens in this series, to give the Montblanc star an 'off-white' or 'cream coloured'

appearance, thereby ensuring a contrast in colour when next to models from their regular

production line-up.

Apart from a serial number the Limited Edition pieces carry a distinct number placing it

within the release of the edition, i.e. 1/888 would be the first pen produced of an edition of

888 pens.

Editions include Patron of art, Writers edition, special theme edition, Annual

edition, Donation Series and America's Signatures for Freedom. The Donation series includes

some limited Editions like the 2009 released Signature for goodlimited edition. Montblanc

donates parts of its proceeds to UNICEF. They claim to guarantee a minimum of US $1.5

million worldwide within one year

26

2.3.2 Cross

America's oldest manufacturer of fine writing instruments was established in 1846.

Manufacturing in the Providence, RI, facility first was limited to elegantly tooled gold and

silver casings for wooden pencils. With more than 21 registered patents, the A. T. Cross

Company soon developed and marketed many important "firsts" in the field of writing

instruments. These include the propel-repel mechanical pencil, a forerunner of today's

mechanical pencils, and the Stylographic pen, the precursor of the ball-point pen by more

than 70 years. The company was sold in 1916 to Walter R. Boss, who later brought his sons

Ellery (in the 1920s) and W. Russell (in the 1930s) into the business. Ellery retired in 1966,

and W. Russell, who later retired in 1985, was joined by his sons Bradford in 1958 and

Russell in 1961. Cross entered the international marketplace in 1962 and became a public

company in 1971. David G. Whalen became President and Chief Executive Officer in 1999,

Russell A. Boss is Chairman of the Board and Bradford R. Boss is Chairman Emeritus. A. T.

Cross headquarters in Lincoln, RI, has been expanded several times to meet international

demand for fine writing instruments. Cross writing instruments are now distributed in more

than 140 foreign markets. The company has writing instrument marketing subsidiaries in the

U.K., Spain, France, Germany, Holland, Japan, Hong Kong, Taiwan and Canada.

27

Throughout the 20th century, Cross partnered with other manufacturers of finely tooled

products, such as Victorinox, and Maglite, and with highly respected designers, such as Bill

Blass. Only a small portion of a long chronology of pen and pencil issuance can be displayed

here:

1993 Cross Twonsend fountain pens and Selectip rolling ball pens to the international market

in 18 karat gold filled, 10 karat gold filled, Black Lacquer, Titanium, Medalist

1996 Century II (international market) 14 Karat Gold Filled, 10 Karat Gold Filled, Blue

Wood, Green Wood, Rose Wood, Black Lacquer

1999Century II   line (U.S. market) include 23 Karat Gold Plated, Black Lacquer, Medalist

and Chrome. Technologies include ball-point pen, 0.5mm pencil, Selectip Rolling Ball Pen

and fountain pen. Alhambra Mica Gray, Cinnabar Red and Cobalt products become part of

the Century II line

2000 ATX in Basalt Black, Zirconium, Azurite Blue, Red Copper, Matte Chrome and Pure

Chrome with chrome plated appointments

2004 VERVE Selenium Blue, Merlot, and Platinum Plated

2005 Apogeeline - Chrome, Titian Red Lacquer, and Black Star Lacquer.

A.T. Cross Company is a designer and marketer of branded personal and business

accessories. A.T. Cross provides a range of products that appeal to a market of consumers

seeking to enhance their image. Cross writing instruments are now distributed in more than

140 foreign markets. The company has writing instrument marketing subsidiaries in the U.K.,

Spain, France, Germany, Holland, Japan, Hong Kong, Taiwan and Canada. A.T. Cross

products are manufactured in China and distributed in retail and corporate gift channels

worldwide.

Today, the A.T. Cross Company is a designer and marketer of branded personal accessories

including writing instruments, reading glasses, personal and business accessories and

sunglasses.

28

29

2.3.3Sheaffer

Sheaffer was one of the "Big Four" American pen makers of the classic era, and is probably

the only one that today survives in anything close to its original configuration (at least for

now). Although they have changed ownership a few times (and are currently owned by Bic),

they continue to design and manufacture the majority of their pens (and, until recently, their

Skrip brand fountain pen ink) in their Iowa complex. They were, and remain, a rather

conservative operation that was nevertheless capable of frequent stylistic and technical

brilliance, and have always offered reliable pens of solid value. The company has a long and

rich history full of technical firsts, innovative design, and business success. Sheaffer is to

learn what nearly all modern inventors now know: that a patent is not an absolute protection

for your good ideas, but is at best a delaying action to keep the competition at bay until you

can move on to the next big innovation. The Sheaffer lever filler went on to become the

standard of the industry, soldiering on long after even Sheaffer themselves had dropped them

in the early 1950s. Even arch-rival Parker, normally preferring its own button and Vacumatic

systems, featured a couple of lever fillers here and there among its low-priced products.

Sheaffer brought its gold point production in-house in the late 1910s.

Under New Owners

Sheaffer was still a profitable company in the early 1960s. It made both ball point and

fountain pens, and continued to emphasize quality rather than price as the major selling point.

In 1966, Walter Sheaffer II, the founder's grandson, resigned the presidency to become

chairman, and the company was run by a former Standard Packaging Corp. executive, John

A. Keenan. A few months after the leadership change, the company announced that it was

being acquired by Textron, Inc., for approximately $19 million. 1965 sales had reached over

$30 million. Textron, with sales of $720 million, described itself as a diversified

manufacturer, and in fact it was considered the first modern conglomerate. Its interests were

varied, from machine parts to defense to stationery.

In 1976, Sheaffer was combined with another Textron unit, the Massachusetts-based Eaton.

Eaton had been acquired by Textron one year after Sheaffer, and it made typing paper and

other writing paper. The new combined division was called Sheaffer Eaton, and its

headquarters were in Pittsfield, Massachusetts. By the early 1980s, Textron had grown to a

$3 billion behemoth. It made Bell helicopters, machine tools, ball bearings, industrial

measuring devices, and many other mostly industrial products. While diversification was

30

once thought to be a hedge against swings in the business cycle, the company was

evidently unwiedly by the 1980s, with sales and profits sliding. The company took on some

$800 million of debt in 1986 when it bought a Michigan machine tool company, Ex-Cell-O,

and soon Textron began shedding some of its units. Sheaffer Eaton was one of the first to go.

In 1987, Sheaffer Eaton was acquired by a subsidiary of a Swiss merchant banking company,

the Gefinor Group. Gefinor (USA) Inc. paid $135 million for the Textron unit, which at that

time had sales of approximately $140 million. Its product lines included Sheaffer pens, Eaton

stationery, At-A-Glance appointment books, and Duo-Tang report covers. Gefinor considered

Sheaffer Eaton a strong brand with much potential for growth. Textron had clearly not been

paying much attention to the unit, and the new European owners may have seen much more

potential for fountain pens than the American conglomerate did. Sheaffer had staked out a

position as a maker of fashion and luxury pens, a trend which was even stronger in Europe.

Indeed, under Gefinor's wing, Sheaffer's luxury pens had rising sales. Its line of pens priced

between $75 and $175 rose 25 % in 1990. One of Sheaffer's most popular products in the

early 1990s was a silver fountain pen and ball point pen set that retailed for almost $1,000.

Sheaffer's product line included even more expensive pens, with a solid gold Masterpiece

fountain pen selling for $4,000.

After ten years with Gefinor, Sheaffer was sold again, this time to the U.S. subsidiary of

French manufacturer Bic S.A. Bic, founded by French baron Marcel Bich, had entered the

ball point pen market in 1952 and made cheap, disposable pens a worldwide sensation. The

company was also well known for its disposable razors and lighters. In 1997, Bic offered

an undisclosed amount (but claimed to be less than $50 million) for what was then known as

the Sheaffer Group. Sheaffer by that time did about $50 million in sales annually on its pens.

While the overall pen market had gone up and down in the 1990s, fountain pen sales,

particularly of high-end pens, were strong. Sheaffer was no longer associated with Eaton

products, which had been sold earlier to Fox River Paper and Pratt & Austin. It focused on

fine pens, some of which were made by hand by skilled artisans. These might retail for as

much as $5,000. Bic's own high-end pen lines had not enjoyed strong sales, and the company

wished to acquire Sheaffer's prestigious brands. The sale was complicated by a counter-offer

by a group of Sheaffer executives. They claimed to have a right of first refusal of any buyout.

Bic took the case to court and upped its offer by $2 million. The sale to Bic eventually went

through. The sale of Sheaffer to Bic echoed the sale of another former "Big Four" American

pen manufacturer, Parker, which was acquired by Gillette in 1993.

31

Under new ownership, Sheaffer seemed to do what it had always done well, which was to

emphasize quality rather than price. Though its parent was known for some of the cheapest

pens on the market, Sheaffer concentrated on its select customers for the prestigious White

Dot and other high-end lines. Sheaffer launched a magazine called Spherein 1999, which

went to Sheaffer customers but contained no articles or advertising for Sheaffer pens. This

was part of an overall strategy to position Sheaffer as an essential element in a luxurious

lifestyle. Consequently the magazine did not mention pens, but was filled with articles about

travel, food, and fine design. Sheaffer marketing in the 2000s continued to emphasize the

elegance andmystique of its pens. In 2005, the company began a push into a distribution

channel it had entered previously and then let fall: duty-free shops in airports, border

crossings, and cruise ships. Though pen technology had changed dramatically since 1913,

Sheaffer managed to endure, not as an anachronism but as a luxury brand.

2.3.4 LAMY

An independent family-owned enterprise which was established in 1930 by C. Josef Lamy in

Heidelberg, Lamy has made its way through years of innovation in perfecting and creating

the best pens available. Under the leadership of the present Managing Director Dr. Manfred

Lamy, the company has successfully evolved as a design brand in the high-grade writing

instruments sector. Lamy stands for innovation, quality and modern design, and with its

brand promise "No design writes better", expresses its clear belief in the functional design of

its excellent products.

In 1966 the first products of the Lamy design era came onto the market with the Lamy

2000writing instrument programme. When the Lamy 2000 fountain pen arrived on the

market, it took its place in the ranks of products in a new and unusual design world. They

included strange-looking office-machines from Italy, and coolly elegant electrical and audio

equipment from Frankfurt. There was a talk of a Bauhaus revival. The first writing instrument

of the new Lamy design era was created in joint project with a "free-lancer." This was Gerd

A.Müller, a man who was one of the advocates of the Bauhaus movement. This alone was

enough to impel Lamy to select him to provide the company with the initial impetus for its

new design style and to provide his input to it over the years. Sadly, Müller died in 1991, but

his work for Lamy lives on.

32

Lamy 2000 was the great opportunity for a small family firm to find its individuality, its

unique product profile, and to make certain that its appearance on a larger stage did not go

unnoticed. This was not only due to the desire to create a contemporary product. The

customers at whom Lamy aimed this writing instrument were successful, middle aged men,

who were image conscious, but tended towards understatement. Lamy 2000 was also,

technologically speaking, unknown territory. Never before had a clip been made of solid

stainless steel - there was no precedent for this procedure, which would create an even

surface of both stainless steel and plastic. In this way we created products whose almost

unique character was due to the high degree of manual craftsmanship required.

Despite the intensive preparations of the Lamy sales force and the trade, despite positive

survey results, no one expected that the Lamy 2000 would quickly make an impression on the

market. However its permanent market penetration did increase, due to the example of the

first users, and it was followed by a ball point pen, a mechanical pencil and a four-colour ball

point pen. The sign of the commercial success and timelessness of this design is that these

writing instruments are still being sold today, more than 30 years later. As a result, the Lamy

2000 has been included in almost every selection of German and European design and in

1984 was awarded the Busse Long life design prize.

The basis for Lamy's decision in favour of modernity as the driving force behind writing

instrument design was not a restrictive, rigid dogma. The shape of the Lamy 2000 did not

establish a formal pattern - instead, it was simply the impetus for development aimed at

creating the greatest variety of designs and shapes. The first variation on the theme of

contemporary writing instrument design was the Lamy cp1 writing instrument of 1974, with

its slim cylindrical shape and brush finished metal body which later also appeared in white

and metallic lacquer as well as in matt black titanium oxide coating.

In 1980, Lamy created the Lamy safari-a school fountain pen like no other. Attracting youths

all around, Lamy ventured into the adolescent world and catered to the younger age-group.

Their wish to have their own "writing tool" specially designed for them is ideally embodied

in the Lamy safari. In the years to come, Lamy continued to modernize their techniques on

creating new and sleek pens. This led to a series of pens that were innovative and fresh such

as the Lamy Spirit, Lamy, and the Lamy studio.

Today, Lamy is regarded worldwide as a pioneer among the manufacturers of brand-name

writing instruments. With close to 400 employees, the family enterprise develops and

33

produces all of its products at its own factory in Heidelberg. For the nationwide business

initiative "Germany - Land of Ideas", in connection with the football World Cup, Lamy has

been selected as one of Germany's innovation standard-bearers.

34

CHAPTER 3

LITERATURE REVIEW

Ramasamy et al. (2005) awareness of consumers.

Indicated that, the buying behavior is vastly influenced byawareness and attitude towards the

product. Commercial advertisements over television wassaid to be the most important source

of information, followed by displays in retail outlets.Consumers do build opinion about a

brand on the basis of which various product featuresplay an important role in decision

making process. A large number of respondents laidemphasis on quality and felt that price is

an important factor while the others attachedimportance to image of manufacturer.

Shivkumar (2004) factors influencing consumption.

The study showed that the consumer, irrespective ofincome groups, was mainly influenced to

purchase by the opinions of their family members.Consumers are influenced by the dealers’

recommendation, followed by advertisement.

Nagaraja (2004) opined that, buying behaviour is very much influenced by experienceof

their own and of neighbour consumers and his own family. The involvements of his

ownfamily members were exerting maximum influence on his purchases. Above all, the

quality ofthe product and its easy availability were the primary and the vital determinants of

his buyingbehaviour. Consumers were influenced by touch and feel aspect of any

promotional activity.

Singh and Singh (1981) brand loyalty

Brand choice and store loyalty werefound to affect the brand loyalty of the consumer. The

factors that influence and strengthenloyalty to brand were quality of product, habit of use and

ready and regular availability.

Nick Wreden (2004) “Fusion branding”

How to forge your brand orthe future”, reveals that, branding has a little secret; it doesn’t

know how to count. But theauthor mentioned the measure of brand is a pseudo-measurement,

i.e., brand equity. It canbe used to overcome the inability of traditional accounting to measure

intangible strategicassets, like perceived quality, brand and channel resources, rose to power

point fame inmarketing for several reasons. It appeared to quantify intuitive recognition about

the value ofthe brands. It incorporated two brand strengths – it’s standing with purchases and

35

perceptionamong prospects and customers. Brand strength provides a means to rank winners

andlosers in branding wars.

Vincent (2006) elicited that quality is an important factor that draws consumerstowards

branded products. Branded products are accepted as good quality products. Peopledo not

mind paying extra for branded products, as they get value for money. Media is a

keyconstituent in promoting and influencing brand. A child’s insistence affects family’s

buying

behavior. Children are highly aware and conscious of branded items. Although unbranded

products sometimes give same satisfaction as branded products, customers would still prefer

to purchase a branded product.

Michael R. Solomon (2001) consumer behaviours typically analyse the processes of group

selected or individual purchases/dispose of product, service, concept or experiences to satisfy

their need and desires. Additionally, Kotler (1996) suggested that consumer behaviours have

a huge impact in a firm marketing decision making process every year. There is a risk that

what a consumer does will inflict on his or her behaviour and generate consequences. (Snoj,

Pisnik Koda & Mumel, 2004). The user and the purchaser can be different person, in some

cases; another person may be an influencer providing recommendations for or against certain

products without actually buying or using them (Solomon 1999; Solomon et al. 1999).

Complex Buying Behaviour This kind of buying behaviours significantly involved the

consumers when making a purchase decision. This kind of buying behaviours demand

consumer to highly involve within the process. In case of high involvement, consumers

distinguish salient differences among the competing brands (Kotler, Wong, Saunders,

Armstrong, 2005). This phenomenon is particularly essential for Dixons consumers to

highly involve, and engage in extensive research about the product category and make a good

purchase decision about the firm own manufacturing products, in case they invent a new

technology electronics products or audio-video equipment that is too expensive

(Lunn et al, 1997). The common value terms often involve in the trade-off between quality

and price, which also may also be defined the ‘value-for-money between quality and price,

which also may defined the ‘value-for-money perspective (Change and Wildt, 1994; Hansen,

2001; Sweeney and Soutar, 2001).

36

Zeithaml (1988) and Levy (1999) purpose that consumers are ‘value driven’. Zeithaml

(1988) claims that customer’s perceived value may be seen as a reacting of the overall

evaluation of the consumption of a product or service based on perceptions of what is

received and what is given.On the other hand, the value emerges partly from what consumers

perceive they are receiving and partly from what consumers perceived they are giving.

Moreover, Blackett and Robins (2001) consistently said that the key drivers of demand for

products are awareness/familiarity, perceived quality, sales quality and price. These tool

drivers influence the perception of customer in term of the decision making. .

Dawar and Parker (1994) depicted that cues assist consumers to determining the quality of

the product when there is a need to reduce the perceived risk of purchase and when consumer

involvement is low. ‘Low-involved’ consumers use simple decision ways or indicators in

their assessments to the quality or the overall performance of a product. In contrast, the

behaviour of ‘high-involved’ consumers are analyzed and described on the basis of the

information processing perspective.

Dubois (2000) describes that  consumers are expected to apply their cognitive resources in

creating ‘beliefs’ (cognitive part) about the attribute of a product, which may result of the

progression of an overall feeling (affective part) in the sense of liking/disliking product.

Consumers with a positive ‘attitude’ to a product are expected to be more willing to consider

purchasing in (cognitive part) than consumers with less positive attitude to the same

product.Emotional perspective Emotion is not the response of an evaluation process in

buying a product, but it is an effective reaction to consumers’ perceptions of stimuli in the

environment. It represents an effective view of consumer behaviours and it is caused by

consumers’ appearance to particular stimuli (Bagozzi et al., 1999). Zajonc and markus (1982)

discussed   that the ‘traditional’ cognitive view should be complemented by determining

consumers’ affective responses, like the emotional responses to the perception and

assessment of products and experiences. Consumer involvement also influences to emotion

perspective and product evaluations.

Peter et al (1999) debated that if product involvement is high, people may experience

stronger affective reaction such as emotions and stronger feelings.

37

CHAPTER 4

RESEARCH METHODOLOGY

4.1 Research Design:

A research design is specification of the methods and procedures for acquiring the needed

information. It helps the researcher to conduct a study by ensuring that economical

procedures are employed & probing is relevant to the problems.

1. Exploratory research

2. Descriptive research

3. Causal research

These classifications are made according to the objective of the research.

Exploratory Research:

Exploratory research has the goal of formulating problems more precisely, clarifying

concepts, gathering explanations, gaining insight, eliminating impractical ideas, and forming

hypotheses.

Exploratory research can be performed using a literature search, surveying certain people

about their experiences, focus groups, and case studies.

Descriptive Research:

Descriptive research is more rigid than exploratory research and seeks to describe users of a

product, determine the proportion of the population that uses a product, or predict future

demand for a product. As opposed to exploratory research, descriptive research should define

questions, people surveyed, and the method of analysis prior to beginning data collection.

Causal Research:

Causal research seeks to find cause and affect relationships between variables. It

accomplishes this goal through laboratory and field experiments.

For the purpose of our research we have used descriptive research design in our studies.The

main goal of this type of research is to describe the data and characteristics about what is

being studied.

38

Therefore to understand the customer satisfaction a structured questionnaire is developed.

The idea behind this type of research is to study frequencies and averages. Although this

research is highly accurate, it does not gather the causes behind a situation.The following

points support the reason:

•Statement of the problem

•Identification of information needed to solve the problem

•Selection or development of instruments for gathering the information

•Identification of target population and determination of sampling procedure

•Design of procedure for information collection

•Collection of information

•Analysis of information

•Generalizations and/or predictions

Population: For the purpose of this research the population considered is the companies

which use corporate gifting in their business process.

Sample element: The companies who purchase premium pens through B2B sales are

medium or large in size. Most of the users who are using premium class pens are belongs to

executive class and have good reputation in business or in their jobs.

Sample Size: I have selected a sample size of n=200. The methodology behind selecting

sample size as 200 is that there are a large number of companies which are using premium

pens in NCR. Being from business world, one can’t approach them easily. While working in

Luxor Writing Instruments Pvt Ltd, I had personally visited many companies and talked to

the person who deals in the corporate gifting for that company.

39

Sampling Technique: Simple random technique has been used to select sample elements.

Survey Instrument and Questionnaire:A structured Questionnaire which includes 10

questions is designed with Likert type measurement scales.

Data collection and Field work plan: This study includes gathering data from only primary

sources. All the data has been collected by visiting the companies and talking to the concern

person who deals in corporate gifting for that particular company.

40

A framework on the topic of study

Government Policies:

• Small-scale industry classification- The Writing Instruments Manufacturers organization,

reserved for the small-scale industry (SSI), has appealed to the Government to increase the

SSI limit for the writing instruments sector from Rs 3 crore to Rs 5 crore. If this does happen,

it would lead to more investments being infused in plant and machinery and pave the way for

further consolidation of the industry.

• Custom and Excise Duties – Considering the competition in the industry and race towards

free trade world, customs duties may reduce in future. This will make it difficult for the

players to survive if excise duties are not reduced accordingly.

Consolidation

Mergers and acquisitions would come into play in this business in a big way as competition

would have become quite fierce.

Outsourcing

A striking feature of the writing instruments segment, which is now becoming the order of

the day is outsourcing. For instance Linc, outsource to the extent of 30-40 per cent of its

requirements. Consequently, a great deal of attention has to be devoted to vendor

development, as quality is of paramount importance in the pen segment.

Economic Factor

A person who has high income level and also has good status, generally they want to buy

luxury or premium pens for personal use and people who have middle income level they

sometimes buy these pens for the purpose of gifting. There is also a huge B2B market for

premium pens that is also for the purpose of gifting. In B2B Market Company get a bulk deal

from the buyer companies. The buyer companies used these pens for the gifting to their

customers as well as their employees.

Geographic Factor

For the premium pens marketer are targeting metro cities because in the metro cities there are

huge potential due to the good population density of higher income group people in India

these cities are New Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Lucknow and Hyderabad.

41

Demographic Factor

Premium and luxury pens are act as jewelry for men. The people who have high income level

want to have premium pens. Generally people above the age limit 35 years like to have these

types of things.

Brand Image

Brand Image plays an important role for the premium pens. Before buying a premium pen

people see its brand value in market. That brand should not be in the mass marketing because

due to mass marketing the value of brands comes down and premium customers feel

hesitation to buy these types of products. To make a stronger brand publicity is a strongest

tool for the premium and luxury category.

42

CHAPTER 5

ANALYSIS AND DATA REPRESENTATION

1. Type of promotional activity

Table 5.1Type of promotional activity

Type of promotional activity No. of people

Trade Promotion 50

Consumer Promotion 40

Corporate Gifting 90

Events 10

Figure 5.1Type of promotional activity

This Graph shows that Companies mainly use corporate gifting. Corporate gifting is a very

effective marketing communication mix. This graph shows 45% or majority of the companies

use corporate gifting. 25% use trade promotion, 20% use consumer promotion and only 5%

go for events & seminars.

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2. Frequencyof Gifting

Table 5.2Frequency of Gifting

Frequency Of Gifting No. of people

Quarterly 24

Half Yearly 36

Yearly 40

During festive seasons 100

Figure 5.2Frequency of Gifting

This Graph represents the frequency of gifting. In this graph we can see 50% of the

companies use to gift in festive seasons. 12% use to gift quarterly, 18% use corporate gifting

half yearly, and 20% do corporate gifting yearly. We can see that majority does corporate

gifting in festive seasons. So during festive seasons LWIPL should be more active and try

and contact companies.

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3. Price range of pens

Table 5.3Price Range

Price Range No. of people

0-1000 50

1000-2500 80

2500-5000 50

5000 & above 20

Figure 5.3Price Range

This graph represents the price range of the gifts (per piece). In this graph we can see that

majority i.e. 40% of the companies have their price range in 1000-2500. 25% each in the

range of 0-1000 and 2500-5000, and 10% goes for the gifts costs 5000 and above.

4. Reason for purchase

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Table 5.4Reason for purchase

Reason for purchase No. of people

Personal Use 28

Gifting 172

Figure 5.4Reason for purchase

This study observes that companies buy premium pens for the personal use as well as gifting.

The majority of the people that is 86% buy premium pens for the purpose of gifting and 14%

people buy premium pens for personal use i.e. to use in the office. So marketer should notice

on the attractive packaging of premium pens that will helpful in to increase the sales for

gifting purpose.

5. Factors influence to buy premium pens

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Table 5.5Factors influence to buy premium pens

Factors influence to buy premium pens No. of Respondents

Advertisements 28

Past Experiences 74

Discounts 46

Others 52

Figure 5.5Factors influence to buy premium pens

This graph represents the factors influence to buy premium pens. From this graph we can see

that 37% of the companies are influenced by their past experience. Only 14% are influenced

by the advertisements, 23% are influenced by discounts offered by the companies and 26%

are influenced by other factors such as viral marketing. So a company should focus on the

quality in the product as well as services.

6. Features of pens

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Table 5.6Features of pens

Features of pens No. of Respondents

Quality 74

Visual Effects 126

Figure 5.6Features of pens

This graph represents the effect of features of the pens on the clients. In this Pie chart we can

see majority i.e. 63% of the companies is attracted by the visual effects and 37% are attracted

by the quality. As the main purpose if the premium pens is gifting so it is necessary that the

pen should look beautiful and attractive.

7. Precious metals in pens

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Table 5.7Precious metals in pens

Precious metals in pens No. of Respondents

Yes 182

No 18

Figure 5.7Precious metals in pens

This pie-chart shows that the precious metals in the pen do really effect the buying. From this

pie-chart we can see majority of the companies says the precious metals are important for

them. 91% of the companies think the precious metals are important for them.

8. Perception to possess premium pens

Table 5.8Perception to possess premium pens

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Perception to possess premium pens No. of Respondents

Status 72

Aspiration 58

Personality 46

Advanced Quality 24

Figure 5.8Perception to possess premium pens

This graph shows the perception of the people towards gifting or buying the premium pens.

36% of the companies think that the premium pens symbolize the status. And 29% buy it

because of aspiration, 23% think it enhances the personality and 12% are quality sensitive.

9. Type of premium pens

Table 5.9Type of premium pens

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Type of premium pens No. of Respondents

Ball Pens 53

Fountain Pens 69

Roller Ball 78

Figure 5.9Type of premium pens

The above chart shows that in the premium category of pens i.e. ball pens, fountain pens and

roller pens. 26.5% of the companies go for ball pens, 34.5% go for fountain pens and 39% go

for roller ball.

10.Most preferred Brand

Table 5.10Most preferred Brand

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Most preferred Brand No. of Respondents

Waterman 47

Parker 39

Cross 32

Sheaffer 30

Mont blanc 52

Figure.5.10most preferred Brand

This study shows that in the premium category Mont blanc is most preferable brand and then

Parker and Waterman followed by Cross and Sheaffer. In the premiumcategory 26% people

like Mont Blanc and 40% people like Waterman and Parker premium that are marketed by

Luxor Writing Instruments Pvt. Ltd. in India.

CHAPTER-6

FINDINGS

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1. Companies mainly use corporate gifting. Corporate gifting is a very effective marketing

communication mix. The graph shows 45% or majority of the companies use corporate

gifting. 25% use trade promotion, 20% use consumer promotion and only 5% go for events &

seminars.

2. We can see 50% of the companies use to gift in festive seasons. 12% use to gift quarterly,

18% use corporate gifting half yearly, and 20% do corporate gifting yearly.

3. The price range of the gifts (per piece), majority i.e. 40% of the companies have their price

range in 1000-2500. 25% each in the range of 0-1000 and 2500-5000, and 10% goes for the

gifts costs 5000 and above.

4. This study observes that companies buy premium pens for the personal use as well as

gifting. The majority of the people that is 86% buy premium pens for the purpose of gifting

and 14% people buy premium pens for personal use i.e. to use in the office.

5. The analysis represents the factors influence to buy premium pens. From this graph we can

see that 37% of the companies are influenced by their past experience. Only 14% are

influenced by the advertisements, 23% are influenced by discounts offered by the companies

and 26% are influenced by other factors such as viral marketing.

6. This graph represents the effect of features of the pens on the clients. In this Pie chart we

can see majority i.e. 63% of the companies is attracted by the visual effects and 37% are

attracted by the quality.

7. This pie-chart shows that the precious metals in the pen do really effect the buying. From

this pie-chart we can see majority of the companies says the precious metals are important for

them. 91% of the companies think the precious metals are important for them.

8. The perception of the people towards gifting or buying the premium pens. 36% of the

companies think that the premium pens symbolize the status. And 29% buy it because of

aspiration, 23% think it enhances the personality and 12% are quality sensitive.

10. In the premium category Mont blanc is most preferable brand and then Parker and

Waterman followed by Cross and Sheaffer.

CONCLUSION AND RECOMMENDATIONS

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Conclusion:

Gifting is the most preferred promotional activity done by the companies now days.

Gifting is high during the festive seasons so for the companies dealing in gifts should contact

the corporate offices during festive seasons. As the premium pens have wide variety and

range the most preferred price range is 1000-2500(in Rs). As the prices of premium pens are

high so people use it as gifting option. People are affected more by their past experience of

buying premium pens rather than by advertisement and others. People are more interested in

the physical appearance of the so it should be beautifully designed. Use of precious metals in

pens is one of the most important factors of attracting people to buy premium pens for

gifting. And it bought because it symbolizes status. So the people who are more conscious

about the status, they buy these pens. Mont Blanc is the most preferred brand among all the

premium pens and it is the market leader in premium pens.

The study brings into light the various facts and figures about various companies.

Following are certain points of recommendations:

1. One of the findings shows that majority does corporate gifting in festive seasons. So

during festive seasons LWIPL should be more active and try and contact companies.

2. Marketer should notice on the attractive packaging of premium pens that will helpful

in to increase the sales for gifting purpose. As mostly companies buy premium pens

for gifting purpose.

3. The company should focus on the quality in the product as well as services.

4. As the main purpose if the premium pen is gifting so it is necessary that the pen

should look beautiful and attractive.

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LIMITATION OF THE STUDY

This study is done in the north zone especially in NCR (National Capital Region). The data

represents the buying patterns and buyer characteristics of NCR.

The time for the study was only two months which is not enough for such a study.

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BIBLIOGRAPHY

Marketing Management by Phillip Kotller.

Marketing Research by C.R. Kothary and Naresh K. Malhotra.

Consumer Behavior by Jain and Narang and Shiffman & Kaunak.

Websites referred:

www.worldofluxor.com

www.parkerpens.com

www.historyofparker.com

www.watermanperis.com

www.lamypens.com

www.williampens.com

www.montblonc.com

www.sheafferworldofpens.com

www.crosspens.com

www.icmr.com

www.businessline.com

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ANNEXURES

QUESTIONNAIRE

Name:____________________________ Designation: _______________________

Company: _________________________ Contact no: _________________________

Nature of Business: __________________ Address: __________________________

Q1. Which type of promotional activity do you do?

(a) Trade Promotion (b) Consumer Promotion

(c) Corporate Gifting (d) Events

Q2.What is the frequency of gifting?

(a) Quarterly (b) Half yearly

(c ) yearly (d) During festive seasons only

Q3.What is the budget?

(a) 0-1000 (b) 1000-25000

(c) 2500-5000 (d) above 5000

Q4.Reason of purchasing pens:

(a) Personal Use (b) Gifting

Q5.Factors influence to buy premium pens:

(a) Aspiration (b) Past experience

(c) Discounts (d) others

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Q6.Perception to gifting premium pens:

(a) Status (b) Aspiration

( c) Personality (d) Advanced quality

Q7.Which Feature of the Pen is more important for you:

(a) Quality (b) Visual Effect

Q8.Precious metals in pens:

(a) Yes (b) No

Q9.Type of Premium Pens:

(a) Ball Pen (b) Fountain Pen

(c) Roller Ball

Q10.Most preferred pen:

(a)Waterman (b) Parker Premium

(c) Cross (d) Sheaffer

(e) Mont Blanc

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