Explain in details the marketing strategy adopted by Luxor Writing Instruments Private Limited (LWIPL)
CASE STUDY (20 Marks)
In 2002, Luxor Writing Instruments Private Limited (LWIPL) had emerged as the market leader in the premium pens segment in India, with a market share of 60%. The company held a 10% share in the writing instruments industry, next only to the market
leader, Reynolds that held 12%. LWIPL had been in the pen industry for nearly four decades. The company adopted innovative marketing strategies that had made it one of the most popular pen manufacturers in India. LWIPL offered a widest range of pens with leading brands including Luxor, Pilot, Papermate and Parker. In December 2002, LWIPL launched the world renowned ‘Waterman’ brand of premium pens in India. This was possible after LWIPL’s acquisition of a 50% stake in the Indian operations of Newell
Rubbermaid3. 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.
Answer the following question.
Q1. Give an overview of the case.
Q2. Explain in details the marketing strategy adopted by Luxor Writing Instruments Private Limited (LWIPL).
In 2002, Luxor Writing Instruments Private
Case study help
Essay writing and editing
Thesis writing & editing
09901366442 – 09902787224