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Marketing Case Study-Luxur Pen
Marketing Case Study-Luxur Pen
Marketing Case Study-Luxur Pen
Commenting on the prospects of the 'Waterman' brand, DK Jain, Chairman of LWIPL said, "Because of its
price and brand name, Waterman will certainly have an edge over other premium brands in India."4 The
company planned to launch an international advertising campaign for these pens.
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Introduction Contd...
LWIPL was known for its heavy spending on advertising its products. It had entered into several tie-ups with
multinational pen companies that helped in leveraging its current position in the industry. The fact that LWIPL
was a debt-free company was another significant achievement. However, with the rising competition and
negligible presence in the faster growing gel pens segment, analysts felt that LWIPL had an uncertain future.
Analysts also feared that LWIPL's decision to diversify into the hospitality and packaged foods business in
2001-02, might lead to a loss in market share in its core business.
Background Note
The pens industry in India had passed through various
phases with the changing tastes and preferences of
customers. Till the late 1970s, only two categories of pens
existed in the Indian market – fountain and ball point pens.
However, owing to their high prices, not many people could afford to buy them. Camlin Limited was among
the noted fountain pen makers in India during that time. By the late 1970s, fountain pens started loosing
their popularity as people found it cumbersome to refill the ink regularly. The 1980s witnessed an increased
acceptance of ball point pens and Wilson Jotter was considered to be the market leader in this segment.
The pens manufactured by Jotter were popularly called Jotter pens. The market for ball point pens was also
dominated by domestic players in the unorganized market. With the increase in demand, existing players
started expanding their capacities while many new players began entering the market.
In 1982, Deepak Jain, managing director of Luxor Pen Company (Luxor) entered into an agreement with the
Pilot Corporation of Japan to officially launch Pilot pens in India. In 1984, Suraj Mal Jain 5 started a
manufacturing unit for ball point pens and refills in Kolkata and named it as Linc Writing Aids Private Limited.
The company launched new varieties such as disposable pens into the market.
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