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Thursday, September 2, 1999

Luxor takes FMCG route to market Paper Mate stationery products 

Kumarkaushalam  
New Delhi, Sept 1: Luxor Writing Instruments Ltd (LWIL), a joint venture of Luxor and the Gillette company USA, has chalked out a high voltage distribution and display strategy to introduce the Paper Mate brand from the Gillette portfolio in the Rs 1,000 crore and 2.2 billion units a year writing pen market.

Aiming to enhance the brand's reach, LWIL is targeting non-traditional FMCG outlets for the first time. LWIL has entered into a marketing tie-up with Indian Shaving Products Ltd to reach out through FMCG outlets, while its field force will continue to focus on traditional stationery outlets. Says LWIL general manager (marketing) Manoj Kumar, ``Together we'll have an innovative distribution strategy by which we'll reach one lakh outlets directly across the country with the brand in the initial launch period.''

The new marketing synergy creates a network of over 2,000 people comprising ISPL and Luxor distributors, salesmen and stationery field force to market the Luxor Paper Mate brand. ``At least threetimes the number of people will be selling the brand in non-traditional outlets,'' says Kumar.

The new plan allows Luxor to widen its focus from metros, which account for over 40 per cent of its value sales, to penetrate into smaller markets. ``We expect a high double digit growth with this new brand,'' says Kumar. The industry is growing at the rate of 10 per cent a year and Luxor claims to have a 15 per cent share of the market in terms of consumer value.The market has 600 unorganised players and 15 key players including Reynolds, Rotomac, Cello, Today, Flair, Linc, Camlin and Stic.

The new distribution approach is also integral to Luxor's display strategy. Direct placement in one lakh outlets allows Luxor to explain to the retailer the benefits of Paper Mate products and be ``closer to the consumer next door''. A majority of companies extensively depend on wholesale distribution, which limits the exposure of their displays in the market.

With an approach closer to that of FMCG companies likeGillette, Hindustan Lever and Nestle, Luxor's major thrust is to invest in showcasing the product and image upgradation at shops so that the brand experience at the shop is commensurate with what the advertising suggests. Its strategy is to create a shop within a shop wherein its innovative display units will make the product more accessible to consumers. (The product is not being packed in blisters or cards but being put in a display units from where consumers can pick and write).

The shop ambience will establish Paper Mate's visual identity of double hearts through heart-shaped stickers and danglers. Double hearts is the brand's integral property which will be employed in all its communication exercises.

Luxor is planning to launch a multi-channel, 30-second TVC, created by RK Swamy/BBDO, once the brand becomes available in the targeted one lakh outlets. With a tagline of `It's How America Writes Effortlessly', the commercial will focus on the brand's attributes of `reliability, trustworthiness andcomfort' and functional superiority of the Paper Mate products over competition. The print media will be considered for major markets.

The writing industry is marked by large media spends. Over Rs 64 crore was spent in 1998 and leading players invest over 15 per cent of their turnover a year on advertising.

The Luxor Paper Mate brand in the Indian market will be priced at Rs 18-20 (40-50 cents) as compared to one dollar in the global markets. Luxor also intends to introduce the Waterman brand from Gillette's stationery stable ``in a phased manner.''

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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