Mark sense scmhrd_Team kolaveri @ NITIE

1. Industry Analysis
Market Size Estimation
Primary Research and
Findings
Competition offerings
Sub Category Analysis
Market Entry Strategy

2. Industry Analysis
 Indian Stationery market is 10,000 Crore market in 2011. Of this 900 Crore is accounted for art
and colors.
 The market is expected to grow at 15% annual rate in the time to come and waiting to explode.
 Industry is dynamic and innovative to capture consumer preference. Products are reaching Class
C towns.
 Unorganized segment grab a larger share close to 45%.
 There is more market spread happening for the stationery segment, in the last few years resulting
in higher consumption.
 Each market player targets B and C Class cities/ towns so as to expand the market size.
 Shift in focus from inexpensive to quality products. High propensity to spend on art and hobbies.
Source:

3. Industry Analysis
35%
31%
24%
7%
2%
1% Sub-Segment Market
share
Color
Pencils
Crayons
Competito
r
Revenue
in
Stationery
(Crore)
Net Profit
(Crore)
Camlin 358.32 8.59
Faber
Castell
210.74 4.16
Navneet 244.07 5.13
Plastic Crayons, Water Colors and Oil
Pastels
add to approximately 21% of Colors
Market

4. Market Size Estimation
Total children
India (0-14yrs)
Above
poverty line Literacy rate
Children
receiving
education Private school
% of children
receiving private
education Target market
359564220 251694954
71.7% for <14
yrs age 180465282 75,000 27% 67957637
Target Market Reach % Reach
Conversion
Ratio
Total Converted
Children
Business per child
(INR)
Total Business
(INR Crores)
67957637 33% 22426020.21 8% 1794081.62 40 7.17
For the next one year, if Color Crew try on making a modest 8% of Children market
to buy art products, it may end with a revenue of INR 7.2 crores approx. This is 3.8%
of market share.
Using Guesstimation
Approach
CONSUMER PROFILE
17.9 mn School Goers in Urban India. 51.7 % Boys and 48.3 %
Girls
Art and Color Market 900
Cr
Plastic Crayon, Pastel and
Water Color share
21%
Value of Color Crew Sub-
segment market
189
Cr
Camlin Sales 358.32
Cr
Arts Sub Stationery % in Camlin
Sales -14%
50.16 Cr
Camlin Market Share 25 %
Value of Color Crew Sub-segment
market
200.64
Cr

5. Factors affecting consumer buying behavior in art
stationery
Factor analysis
10 attributes were considered
which influenced consumer
buying behavior.
Combination of variables gave
us 3 factors namely
Lifestyle/Status, Consumer
delightness, Consumer
Experience
Consumer brand preferences based over attributes ( Quantitative
analysis)
Attribute Based Perceptual Mapping
The attributes for dimensions considered are Ease
of Use, Brand Value, Variety of Choice and
Advertisements.
The attributes are incorporated into the map as
vectors. This results is a joint space map
containing perceived positions of brands and
attributes.
Color Crew – Perceived to be Ok on Ease of Use
and needs to work on variety of choice and ads.
Camlin – Perceived to be best in all attributes
Faber Castell – Perceived to be Ok on ease of
use and premium in brand value.
Primary Research and
Findings I

6. Retailers Preference in Art stationery ( Quantitative analysis of
distribution)From Analysis of Variances, its found that Retailer
distinctly prefer Camlin over Faber Castell due to
price/premium and ease of availability and consumer
reach.
Color Crew and Camlin don’t vary distinctly in
retailer preference for art stationery because of well
established distributor network of ITC in stationery
market.
RETAILER PREFERENCE– CAMLIN,COLOR
CREW
Consumer Preference in Art stationery ( Quantitative analysis of
competition)From Analysis of Variances, its found
that Consumer distinctly prefer Camlin
over other 2 brands. Camlin touches
more consumers.
Color Crew and Faber Castell don’t vary
distinctly in consumer preference for art
stationery much. Both are perceived as
good.
CONSUMER PREFERENCE -
CAMLIN
Primary Research and
Findings II

7. Competition Offering in this sub
categories
Competitor Product Category Product Attribute Positioning
Camlin
(The brand caters to about
1,50,000 retail outlets across
Tier I,II and III cities in India )
Plastic Crayons
Artica Plastic crayons
(57mm, 97mm
12,15,16,24 colors)
Can sharpen the crayon and also
erase the impressions Bastion product for kids
Oil Pastels
Oil pastels
(12, 15, 25, 50 colors)
Ideal for painting or drawing
quick sketches in color Positioned for hobby painting
Water Colors
Water Color tubes Non-toxic water colors Positioned for school kids
Water Color cakes
(12, 15, 18, 24 colors
Rectangular, Round)
Coloring strength developed
specially for students Positioned for school kids
Faber Castell
(The brand caters to about
90,000 retail outlets across
Tier I & Tier II cities in
India )
Plastic Crayons
Group Pack Long lasting, hard to break,
short and thick, customized
Positioned for pre-school
and kindergarten
Jumbo Crayons
(12, 24 colors)
Extra long, strong and thick Positioned for beginners
Erasable plastic Crayons
(15,25 sets)
Higher breaking strength,
smooth, sharpened
Positioned for school kids
Regular Plastic Crayons
(24, 48 colors)
Regular size, color printed on
packs
Positioned for little artists
and kids
Water Colors
Studio Quality WC
(Product Bundling)
High Density of pigments,
Brilliant colors
Positioned for school kids
and hobbyists
Creative Studio WC
(Product Bundling)
Long lasting,
Excellent Blending
Positioned for school kids
Premium segment
Oil Pastels
Regular Oil Pastels Superior Color mixing, non
toxic
Positioned for school kids
safety
Extra thick Oil Pastels Extra thick,
Free scratch tool
Positioned for hobby
painting
Grip Oil Pastels Triangular shaped, Easy Grip
and control
Positioned for hobby
painting
Camlin is value for money brand, while Faber Castell is a premium brand
more varieties and great consumer experience. The Gap we find here is t
access to varieties and differentiated products at an inexpensive price.

8. Brand Portfolio

9. Sub Category Analysis and
Prioritization
Classmate
Notebook,
8.2, 7.5
0
3
6
9
0 3 6 9
GE MATRIX
ITC Arts and Stationery
Business Strength
Industry
Attractiveness
Low
Low Medium
Medium
High
High
Low
Low
Medium
High
Low
Low
Medium
High
Low
Medium
High
Paper Kraft,
6.4,7.15Color Crew,
4.65, 5.55
INDUSTRY
ATTRACTIVENES
S
Overall Market
Size
Market Growth
Rate
Profitability
Tech Development
Market Rivalry
Pricing
Global Opportunity
BUSINESS STRENGTH
Market Share
Market Growth Rate
Profit Margin Relative to
Competitors
Tech Innovation
Brand Reputation
Sales and Distribution
Effectiveness
Ad and Promotional
Effectiveness
Pricing Strategy and
Customer Loyalty
Prioritization of Sub categories( Quantitative analysis of
competition)Color crew should prioritize the product launch on the
offensive principle of marketing warfare which suggest of
attacking at the weakness of market leader.
Quantitative analysis with primary research on our
sample size provided that there consumer show more
willingness to purchase water colors and are least
desirable to purchase oil pastels.
Thus on the basis of research and strategy priority order
should be
1. Water colors (high acceptance by the consumer)
2. Plastic crayons (affordable)
3. Oil pastels (Ease of use is difficult, more brand loyal

10. Threat of new entrants
The art stationary is a specialized sector, requires a lot of skilful application of marketing, talent
management and investment, barriers could be:
Level of expertise required for successful operation
Access to resources & distribution network
Expected retaliation of existing firms
Difficult for a new entrant to undertake all above activities and beat the competitors in a short
time. It is difficult for a new entrant to compete with the brand strength and reach of the existing
major players like Camlin and Navneet, but it is possible to enter the market and achieve small-
scale success. Highly unorganized, so easy to start business but succeeding is difficult.Power of Suppliers
Large numbers of
suppliers in open market at
competitive prices.
Availability of eminent
quality of materials and
rich industry experience
suppliers.
Suppliers products are
less differentiated.
More suppliers compared
to buyers reduce their
bargaining power.
Leverage on robust
Supply Chain practices of
ITC.
Power of Buyers
The stationery products
market in India is growing at
15% a year and increased
purchasing capacity.
Increasing affordability of
Indian masses through higher
disposable income has resulted in
increased demand.
Stationeries are a highly
fragmented industry. They depend
on variety to create purchaser
traffic, and hence they need
more variety.
Plenty of choices and quality
sensitive
Threat of Substitutes
Presence of many color varieties as
substitutes.
Consumer Switching costs are low.
Many other craft hobbies are becoming
attractive.
Less painting hobbies with advent of
Industry Rivalry
Quality products, wide product range and strong
distribution network of competitors like Camlin and
Faber Castell.
No product differentiation and fragmented market
Unorganized players making cheap inferior
products
Porters 5 force
Model

11. Market Entry Strategy
I
Product Price (based on benchmarking basis)
Place
Promotion
Oil Pastels
Plastic Crayons
Water Color
Company should
distribute the product
to all existing
distributor and
stationary shops
with ITC.
It should focus only
on Metro, Tier-
1, Tier-2 cities.
After 8-10
months
company can
focus on Tier 3
cities and the
premium
school tie up.
Creative(Paint) Board at
School Premises (Premium
School): Color Crew should tie
up with different school for the
initial campaign, where the
company can put (sponsor)
some weekly board, where kids
can paint and show their
creativeness.Promoting CSR through contributing/participating
in the development of society belongs to
differently abled children : Color Crew can
encourage them in activities like paining or sketch
for betterment of their childhood.
Launching Program
Product Caml
in
Fab
er
Cas
tell
Navnee
t
Color
Crew
Shine
Color
Crew
Color
Crew
Wond
er
Oil Pastels 60 66 55 INR
55
INR
55
INR 65
Plastic
Crayons
40 45 35 INR
40
INR
35
INR 44
Water Color 65 72 60 INR
65
INR
60
INR 70

12. Awareness
Set
Consideration
Set
Choice Set
Total
Set
Innovation in
Approach
The company will also give
special offers at the shops
and will distribute free gifts to
kids (goodies and small
painting books) which will
help in brand retention
among the customers. It will
create the buzz word among
the children and will lead to
Buying Behavior of
Consumers
1: Product Awareness : The consumer should be
aware about the product() through different traditional
media and non-conventional approach of
advertisement like OOH, social media
2: Retention of the product on Consumers
Mind: Localized/personalized message to be
communicated. It should influence the factor like
“absence of de-satisfier”. It should appeal their
behavior.
3: Push Strategy : Final stage for Buying. Through
sellers or enforcement through heavy campaign
through programs in school/painting classes and
availability, this product must be in the choice set of
the consumer. Push strategy may be applied.
Communication strategy
Mascot/
Free goodies
Market Entry Strategy
II
1. Traditional Media (Impactful advertisement on TV and
news paper).
2. Tie up with some comic magazine and cartoon
network programs.
3. Competition in Scholl at different locations. (Brand
the competition as a National level)
4. Advertisement through billboards/ OOH near by
schools.
5. Advt. on movies (based on kids). (Ex: Camlin : Taare
Zameen Par movie)
6. Having email or SMS text message regarding study
Advertisement

13. Market Entry Strategy
III
1: Tie up with Premium Schools: Company should tie up with
premium(Public/Private schools), where school provides all the necessary stationary to
the kids for their study. Where company can get advantage of bulk selling.
3: Selling at Stationary Shop: To increase the availability of the product, company
should focus on all types of stationary shop in the tier(1,2,3) city and specially shops near
schools.
2: Use of prior ITC network: ITC have a strong distribution network, so for this
new product company can take that advantage over competitor.
4: Innovation In Approach: (Selling Online) Company can sell through its
online portal or can also through different online selling platform like flipcart,
letsbuy etc
Distribution Strategy
After Sales Survey should be carried out after 3-4 months of
product launch
Financials
Phase 1:
Advertizing: Per Annum (INR)
• Newspaper Advs : 6,00,000 P/A(Rs 320/Sq cm)
•OUT of Home Media: 3,00,000 P/A
•SMS/Email services: 2,00,000 P/A
•Competition/Creativeboard 3,00,000 P/A
•Social Media : 50,000 P/A
•Miscellaneous: 1,00,000 PA
•Movie tie up (Kids) 2,20000P/A
Considering the market
standard and the
competitiveness Pay back
period can be targeted for 3-4
years.
Cash flow of the company will
add these new product in its
portfolio

14. Bibliography
Primary Data &
Analysis : http://breport.myiris.com/MR1/NAVPUBIA_20110414.pdf
 http://articles.timesofindia.indiatimes.com/2011-05-31/india-
business/29603939_1_camlin-dilip-dandekar-japan-s-kokuyo
 http://articles.economictimes.indiatimes.com/2011-12-
13/news/30511846_1_pencils-cosmetic-range-brand
 http://www.itcportal.com
 http://www.camlin.com
 http://www.faber-castell.in
 http://www.crisil.com
 censusindia.gov.in/2011-
Documents/Houselisting%20English.pdf
 http://www.moneycontrol.com
 Annual reports of companies
Thank You