Академический Документы
Профессиональный Документы
Культура Документы
Group C2
1 | Page
Group C2
Contents
Introduction................................................................................................................................2
Ideas...........................................................................................................................................2
Indian stationery Industry: Opportunities and Challenges.........................................................3
Market Growth...........................................................................................................................4
Concept Evaluation....................................................................................................................4
Selected product idea.................................................................................................................5
Silicone Stick Pad...................................................................................................................5
PIC- Product Innovation Charter of Silicone Stick Pad.............................................................5
Background.............................................................................................................................5
Focus.......................................................................................................................................6
Goals-Objectives....................................................................................................................6
Guidelines...............................................................................................................................6
FTB- Form, Technology & benefit of Silicone Stick Pad..........................................................6
Form.......................................................................................................................................6
Technology.............................................................................................................................7
Benefits to the user.................................................................................................................7
Relevant screens.........................................................................................................................7
End User Experience..................................................................................................................8
Product Protocol.........................................................................................................................9
Concept Sheet...........................................................................................................................11
Strategic Launch Planning.......................................................................................................15
Revision of PIC Goals..............................................................................................................16
Strategic Platform Decisions....................................................................................................16
Implementation of Strategic Plan.............................................................................................17
Launch Tactics Given Relative Advantage and Compatibility................................................18
Marketing Strategy...................................................................................................................18
Product Positioning..................................................................................................................20
Brand Identity Prism................................................................................................................21
Conclusion................................................................................................................................22
References................................................................................................................................22
2 | Page
Group C2
Introduction
ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata, West Bengal. Its
diversified business includes five segments: Fast Moving Consumer Goods (FMCG), Hotels,
Paperboards & Packaging, Agri Business & Information Technology.
In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the
launch of Expressions range of greeting cards. A line of premium range of note books under
the brand Paper Kraft was subsequently launched in 2002, while the Classmate series was
launched in 2003 ostensibly to reach a wider consumer group. In 2008, ITC repositioned the
business as an Education and Stationery Products Business and launched India's first
environment friendly premium business paper under the Paper Kraft brand.
The Classmate brand, has clocked revenues of Rs 1,000 crore in terms of consumer spends.
"When the company got into the stationery business way back in 2003, there was a lot of
scepticism, but today we are market leaders in the branded notebooks category," says Chand
Das, chief executive, education and stationery products business at ITC. The company's rise
to the Rs 1,000-crore mark took a little over 10 years, which according to Das is the fastest in
the history of the stationery business in India. The organized market for notebooks is around
Rs 4,000 crore, where ITC's Classmate is the market leader with a 20 per cent share. The
other national brand, Navneet, is a distant second with 7 per cent share. The rest of the market
is controlled by a host of regional brands. Almost 85 per cent of the company's revenue
comes from notebook sales, while the rest is from other stationery products such as pens and
art stationery.
Ideas
Around 6 ideas were suggested initially in the stationery products category, considering the
newness of the product, its technology dimension & market potential. Through the unique
products in Indian market, ITC shall create much more strong presence in stationery product
category and even a strong and unique product portfolio in comparison to its competitor.
3 | Page
Group C2
4 | Page
Group C2
ITC made its entry to the education and stationery business with its Paper Kraft brand in the
premium segment in 2002; and later expanded into the popular segment with its Classmate
brand in 2003. By 2007, Classmate became the largest Notebook brand in the country.
Together, Classmate and Paper Kraft offer a range of products in the Education & Stationery
space to the discerning consumer, providing unrivalled value in terms of product & price.
Classmate and Paper Kraft have become a natural extension of the consumer. Meticulous
understanding of consumer needs helped creating a relevant and comprehensive portfolio
satisfying the needs of different sets of consumers. ITC is the manufacturer of India's first
Ozone treated environment friendly Elemental Chlorine Free (ECF) pulp, paper and
paperboard. It blends its knowledge of image processing, printing and conversion garnered
from Packaging & Printing Business with its brand building and trade marketing &
distribution strengths resident in its FMCG business to offer superior value products to
consumers. Paper Kraft Business paper and the papers used in Classmate and Paper Kraft
notebooks are superior in quality and environment-friendly. Other offerings available in
education and Stationery range are safe and certified non-toxic.
Market Growth
The Indian stationery industry is largely shared by the educational and office stationery
products. Particularly in the school stationery category, the percentage of schoolbooks
captures the bulk of the market. The national market for syllabus-based books is estimated at
Rs10 billion and is growing at 20 per cent per annum. Indian conglomerate ITC's education
and stationery products business, which sells notebooks and other stationery items under the
Classmate brand, has clocked revenues of Rs 1,000 crore in terms of consumer spends.
Concept Evaluation
We selected Pen Ruler Eraser and Silicone Stick Pad as part of concept generation. After
enough brainstorming & competitive analysis of the products on the basis of cost-benefit,
need of the consumers, we shortlisted Silicone Stick Pad as our final product.
Further research is been done to understanding the customer expectation from Silicone stick
pad- the colour, shape and size of the pad. It should be reliable and priced reasonably with
making the customers aware of this unique kind of product and how customers are really in
need of this product in their day to day life.
5 | Page
Group C2
The Indian stationery industry is largely shared by the educational and office stationery products.
Major chunk of this sector is dominated by unorganised players but there is sudden change in the
pattern is been observed from past few years and customers are moving towards branded stationery
products and looking for quality.
The Silicone stick pad is a new to the market product which will easily attracts customers by its
unique features and will be used by school & college going students as well as professional students
and others too.
6 | Page
Group C2
of the Indian students too, so product can easily become a successful and large and growing
population of Indian youth will help to attract the mass number of customers.
Focus
The ITC Company is committed to a program of innovation in stationary product, as used in the
education, official work etc., to the extent that we are already market share leader in that market. This
very product will add value in capturing more market. There is huge potential for the particular
product as it will be first to the market and get first mover advantage. We seek recognition as the most
technically competent company in stationery products.
Goals-Objectives
Guidelines
7 | Page
Group C2
But in further extension ITC can come up with different sizes also, depending upon the market need
and consumers demand. The silicone pad will be made of high-grade very soft silicone which gives
the freedom to customers to even cut the pad according to their use. They are very eco-friendly as the
silicone used are non-toxic. The pad can able to withstand temperatures between -20which makes it
idle for keeping Mobiles phones and very well can be used in cars. The silicone pads are sticky on
both sides and they dont leave any residue behind even if you should decide to move the pad and its
complete odourless. The pad can be wiped or washed clean using a mild soap and water.
Technology
ITC is had established Technological Centre of Excellence to deepen capabilities and incubate
cutting-edge technical competencies with our 5600 employees. Besides, ITC has its fully owned
technological unit so it wont be a problem for ITC to come up with a Silicone pad products.
The silicone pad is a differential molecular structure, length of polymer chains with attachment of
organic groups give rise to three silicone forms; fluids, resins and gums. So for silicone pad ITC
didnt have to come up with whole new different set of manufacturing system as they are already
having rubber products (Eraser) and silicone pad is also a rubber product with little different
molecular structure.
Relevant screens
1. Growth Screen- Silicone Stick Pad is new to the company and new to the market product so it
represents a new addition to the company's portfolio. It will even help company to increase
8 | Page
Group C2
market share in domestic market because it has potential to attract the large segment of school and
college going youth as well as young working professional.
2. Category screen- Company is leader in stationary market so product will get up with company image
very well. In a populous country like India volume opportunity is huge and there is no other player
who is providing this product therefore company will get a first mover advantage.
3. Strategic Role screen- If we look at strategic part, current distribution system of company will be
helpful for this product. Product can be differentiable in uses, quality and price factor. Product can
help company to improve marketing skills as company will be competing with very different
competitors and for a product which nobody has thought to be available as ITC product.
4. Internal Strength Screen- Manufacturing system for producing product will be more or less same,
only small changes or addition will be required in current system. Product will fall in core business
category, so marketing skills, engineering skills etc. will be useful for product and company.
5. Financial screen- At this point of time product seems to be financially feasible. Looking the
ingredients and technology involved, if produced in volume, product can be made available at very
low price. Actual estimation can be made in later stages only.
(College
&
Current product
1. Geometry Box
2. Pen Box
3. Pen Stand
9 | Page
Group C2
The product will be positioned as a Unique, convenient way for living an organised life in
ones hectic and busy life schedule.
It will be available in all retail, multi retail and large and small stationery shops and super
markets and malls in order to increase the access of the product.
It will be available in different packaging size and different variants.
The product carrying a multiuse features.
The product is very handy and portable while using.
Its a complete value for money product.
Finally, it is a product made not only for students (college & school) & professionals but it
will be helpful for everyone.
Product Protocol
Product protocol also called product definition, product requirements or product deliverables is
critical to innovation. A product protocol is necessary after you have chosen a new product concept,
completed concept testing and done some preliminary sales forecasting of what numbers you expect
to sell and at what margins.
Target market: The target market is professionals and also college students who are pursuing
their studies.
Product positioning: The product is all about making the lives of the professionals and students
easier. It is positioned as a product which helps to keep daily stuff organized for people who are
ever-busy and dont have time to organize their day-to-day things like pen, rubber, eraser, cell
phones, keys etc.
Product attributes function:
It is made of silicon and extremely slim and lightweight. It is made of silicon and has adhesive on
its surface which easily sticks small things like pen, rubber, eraser, cell phones, keys etc.
The product will be rectangular in shape with a length of 15cm and a width of 5 cm. This product
will be available in different colours also.
10 | P a g e
Group C2
This product would provide benefits in terms of portability and flexibility as it can be stuck to any
vertical and horizontal surface and one can stick stationery items to it.
Benefits to the user.
Flexibility and Portability in terms of use
It will occupy less space.
Availability in different colours
Heat-resistant up to 140 degree Celsius
Ability to hold metal as well as non-metallic items.
Competitive comparison:
Basically, this product would be New to the market product and new to the company, as no
competitor has launched this type of product in India. There are no competitors for this product
presently.
Financial requirements:
This product does not require any special material to produce as because it is made of silicon and
adhesives which are key components of stationary products which ITC already manufactures. At
this point of time product seems to be financial feasible. Looking the ingredients and technology
involved if produced in volume product can be made available at very low price. Actual
estimation can be made in later stages only.
Production requirements:
This product doesnt require any new facility for manufacturing and is feasible to be
manufactured in the existing manufacturing plant of ITC. It is made up of normal silicon and
adhesives and this is not beyond the manufacturing ability of ITC, so this product is feasible to be
manufactured and marketed.
Regulatory requirements:
The
restrictions, licenses,
and
laws
applicable
to
a product or business,
imposed
by
the government are known as regulatory requirement. Since this product is new to market, certain
safety tests has to be done and it is to be made sure that they are non-toxic and phthalate-free.
These chemicals are harmful to human body. SGS India is an authority which tests certain
stationary products and the rules of the tests have to be complied with. Then only the government
of India will allow ITC to go forward for manufacturing and production of the silicone stick pad.
Legal issues like patents and royalties has to be taken into account. If similar patents are not there,
then new patents should be filed in order to safeguard the intellectual property. If this patent is
already filed then ITC has to make sure to pay royalties in order to avoid any conflicts.
11 | P a g e
Group C2
Potholes: There are a few potholes with regard to the product and these are mentioned below.
The product has adhesives which might stick to the stationary items and that might not be
appreciated by customers.
Some people might see the price as an obstacle to purchasing this product.
People might see this product as unsafe to keep their precious items like keys etc.
Concept Sheet
The silicone stick pad provide benefits in terms of portability and flexibility as it can be stuck to any
vertical and horizontal surface and one can stick stationery items to it.
It is mainly made up of differential molecular structure, length of polymer chains with attachment of
organic groups give rise to three silicone forms; fluids, resins and gums. The pad is sticky on both side
but still it wont leave any adhesive while using. The pad is very soft in nature and can easily been cut
into pieces if needed and can be used accordingly. The Silicone pad is even very durable and easy
care, it can be washed and cleaned with water whenever needed. The easy portability of the product
gives the freedom to the consumers to use it at home or even in school whereas for professionals they
too can use it even in their cars for keeping mobile, sunglass, keys and other things.
The silicone pad is even odourless and not been manufactured using any harmful chemicals even the
silicon used in its manufacturing are completely non-toxic. It is completely bio-degradable and ecofriendly too.
The product have been manufactured by pure, simple, natural ingredients without any
harmful chemicals.
12 | P a g e
Group C2
The manufacturing is been in a manner so that the final product should be ecofriendly and bio-degradable.
Where possible, certified organic ingredients have been used, and continue to be
sought out to replace non-certified organic ingredients.
Packaging materials have been simplified to reduce landfill waste, and have been
selected for their ability to be washed out and re-used by the consumer for other
purposes.
For vegan consumers who object to the use of animal fats, the rubber used have been
formulated from the rubber plant only.
By considering the above guidelines we accomplish the preparation of the silicone stick
pad. The ingredient rubber used are procured from designated forest areas & farms. ITC
is already in the manufacturing of eraser (a rubber product) so they have a well expertise
in rubber manufacturing products. The processes will be simple and focused on the
increased benefits to the users.
13 | P a g e
Group C2
Questionnaire:
1. Do you use Pen Stand or other equipments to store your Stationery Product?
Yes
35%
No
65%
33%
14 | P a g e
Group C2
a. Book Stores
12%
b. Malls
c. Supermarkets (Big Bazaar,
More)
33%
25%
d. Local Market
e. Online e-Purchase
16%
14%
4. Which are the attributes you consider while buying an stationery item?
Quality
10%
17%
Colour
34%
Brand
Design
others
23%
16%
15 | P a g e
Group C2
5. Would you like to try our new product Silicone Sticky Pad?
Yes
30%
No
May be
55%
15%
Interpretation:
We conducted the survey in the Mysore market. The sample size was 30. We took the in
depth interview of these respondents and the results are based on their responses. 65%
respondents told they do not use any product to store stationery products. When we asked to
name of the company whose stationery they use, the maximum number of respondents
answered Classmate which was 33%. When we asked from where they buy the stationery
items, majority which was 33% answered book stores and when we asked whether they
would like to buy our Silicone Sticky Pad, 55% respondents answered yes. So, we can say
that there is good opportunity for us to launch the product in the Mysore market.
16 | P a g e
Group C2
17 | P a g e
Group C2
Competitive Advantage
We are going to follow differentiation strategy. The product is offering new benefits to the
customers. The firm is committed to the triad of quality, cost and durability which fully
integrates with our product.
Product Line Replacement
Our product will not cannibalize our other products. The product is an addition to the existing
product line of the companys stationery products and hence no replacement strategies are
required.
Speed of Market Entry
We are following the strategy of rolling out slowly by launching it in some of the selected
outlets of Mysore market. Once successful, product will be launched on a full- fledged basis.
Image
The product will make use of the existing image of the company to enter into new arena of
stationery products and it can help the company to reach in next level.
As this is a new to the company and new to the market product, we need to perform pump
priming and gain a decent market share through entering the consideration set of majority of
the customers and increase the base of our other stationery products.
18 | P a g e
Group C2
1. Low Compatibility
Penetration price
Preannounce
Risk-based promotion
(leasing, money-back
guarantees, equipment
allowances)
Intensive distribution
Information-based
promotion (shows,
demonstrations, websites,
publicity/education)
Selective distribution
Intensive distribution
2. High Compatibility
Skim price
Narrow product
assortments
Usage-based promotion
(samples, beta tests) to
clarify benefits received
Awareness promotion
(coupons, etc.)
Selective distribution
Intensive distribution
Marketing Strategy
Marketing Mix Activities
The assimilation of marketing mix activities is called the marketing strategy process. The
decisions concerning marketing mix activities have budget implications and strategic
ramifications for the company.
Addressing the 4Ps of Marketing Mix for the product like Silicone Stick Pad products is an
easy task comparatively against all market product. In the product dimension the packaging
can be accomplished by resorting to attractive colours and wrappers with suitable graphics.
The packaging could also be made with good materials in order to justify the pricing which is
being adopted and create a perception of premium product in the minds of consumers.
19 | P a g e
Group C2
An attention will be given to the packaging and presentation to differentiate our products
from the conventional. The package will be environmental friendly. Green packages would
be the agenda, meaning recycled paper bags, or other materials, designed in a way that
enhances the image of the product.
Great stationary products can sell for themselves. This is because the students and
professionals are concerned about the ease of use and their convenience. Also as this product
is positioned in the mid- premium segment it will surely sell by itself. We need to make
people aware that such products exist and are reliable and of highest quality. As our launch
plan suggests we shall advertise through various websites, magazines and paediatricians. We
can also resort to ladies kitty parties and ladies clubs for promotion. Customer feedback
should be collected religiously as it will help in making any further improvements.
Further, home delivery can prove effective tool in high end segment of the market. Online
sales can also be achieved by creating an E-catalogue of online stationary products or the
ITCs website itself. Quantity discounts on the M.R.P can be given as well.
Here the choice of a marketing strategy is based on utility maximization.
Promotion & Sales
Our products will be moderately priced to compete with supermarket prices. We will educate
the consumer about the innovative stationary products through social networking forums.
Informative labelling, point of purchase literature, and articles in the newspaper will be tools
for reaching potential customers. We will try to explain consumers the benefits of supporting
ITCs suppliers with their purchases by letting them know the environmental and ethical
concerns.
We can also promote in the stationary departments in private companies & B-schools so as to
generate push for the products.
20 | P a g e
Group C2
D. Press releases concerning the latest trends in the stationary product sector.
II.
Organizing Conferences, aiming to promote stationary products and inform the public
on issues such as:
A. The advantages of the silicone stick-pad for the professionals and the students who
lead a busy daily life and there are less chances of keeping their day-to-day things
organized
B. The accreditation systems to recognize the stationary products, particularly the
silicone stick pad.
III.
We will also try to buy advertising space on the regional television channels in
exchange for a share in sales revenue. This will also keep viewers attention unfazed.
In general, we will keep a warm, fun tactile company culture and brand that will appeal the
students as well as the working professionals. We will also develop and refine marketing
communications in cohesion with the advertising to promote out the brand and involve our
customers in the ethos.
Micromarketing
Micro markets are small targets (neighbourhoods or industrial subsets) with unique purchase
patterns. In this case, the micro market consists of the premium segment incline towards
stationary products with a unique need being satisfied.
Diffusion of Innovation
The early adoption and usage of innovative stationary products were slow but we expect the
product adaptation process to increase with increased consumer awareness.
Product Characteristics that affect the adoption of the product as well as the extent to which
early users encourage others to follow are:
1. Relative advantage of the product- the innovation of silicone stick pad with respect to
regular holder/similar products is much superior as it will solve problems of many
professionals and students.
2. Compatibility- the product innovation is continuous in nature as there is no
incompatibility and learning requirements.
3. Complexity- the product is very simple in nature and does not require any learning
leading to confusion and frustration.
4. Trialability- The trialabilty is high as the product will be available in stationary outlets
5. Communicability- is high as it is a product related to daily convenience and can be
shown of prime importance to the public.
Product Positioning
Positioning of the product is based on the benefit and the segment that uses the product is for
business professionals and for students who are pursuing their graduation. They can get
21 | P a g e
Group C2
organized without losing any small day-to-day use item and make their lives easier by giving
them one place where they will find everything they need.
22 | P a g e
Group C2
Physique
Personality
Brand Identity Prism
Relation
Culture
Self-image
Reflection
Conclusion
With the demand for stationary products which are innovative and which provide solutions to
day to day problems of which the consumers are not really aware of, in every sector growing
rapidly and especially in stationary products where it is highly important for business
professionals and post graduate students to be keep their daily important items organized, our
product will surely become a success. With the strategic plan laid for the next years we are
sure to become the market leader and help working professionals and the graduate and postgraduate students to organize their lives and day to day stuff easy and they can focus on the
more productive and important aspect of their lives.
References
ITC.
(n.d.).
Classmate
Writing
Instruments.
Retrieved
from
ITC
http://www.itcportal.com/businesses/fmcg/education-and-stationery-products.aspx
Portal:
23 | P a g e
Group C2
Today, B. (2014, march 11). ITC becomes fastest firm to clock Rs 1,000 cr revenue in stationery
market . Retrieved from www.itcportal.com: http://www.itcportal.com/media-centre/pressreports-content.aspx?id=1458&type=C&news=itc-becomes-fastest-firm-to-clock-rs-1000-crrevenue-in-stationery-market
Wikipedia.
(2014,
july
14).
Wikipedia.org.
Retrieved
http://en.wikipedia.org/wiki/Classmate_Stationery
from
Classmate
staionary: