Luxor Writing Instruments Private Limited - Marketing Pens in India

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Case Details:

Case Code : MKTG058
Case Length : 12 Pages
Period : 1982-2003
Pub Date : 2003
Teaching Note :Not Available
Organization : Luxor Writing Instruments Private Limited
Industry : Premium Pens
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

The company planned to sell imported 'Waterman' pens for the next couple of years and then start indigenous production for these pens. The price of these pens ranged between Rs.3,500 to Rs.50,000 and was made available in nine sub-brands.

LWIPL planned to sell these pens to corporate customers. 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. 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...

Excerpts >>

4] In an article titled “The Write Stuff,” in Business India by Devendra Mohan dated December 23, 2002.


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