CHAPTER 1 - INTRODUCTION

INTRODUCTION
1.1 BACKGROUND
The ultimate objective of all production is consumption for the satisfaction of varied needs of
man. A free market economy provides freedom to the consumers to buy and consume goods
of their choice. Buying preferences of the consumers send signals to the producers to produce
various commodities in required quantities. Producers, therefore, produces only those
commodities which are desired by the consumers. Consumer behaviour is related to likes and
dislikes and expectations of the consumers. Consumer behaviour has changed in recent years
owing to enhanced awareness, information technology and more importantly governmental
intervention through legislations. Thus, the manufacturers are more cautious in dealing with
consumers of their respective products.
In recent years, the lifestyle of a large number of consumers in India has changed
dramatically and the process of change is on. The buying behaviour of the consumers is
influenced by several factors such as socio-economic conditions, cultural environment,
literacy level, occupation, geographical location, efforts on the part of sellers, exposure to
media etc. Consumer behaviour in the market is perplexing because of a singular lack of
consistency in groups which are homogeneous in parameters of demographics-Age,
occupation, education and income.
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The study of consumer behaviour implies how & why a particular consumer reacts to the
decisions of producers. It is the study of how individual make decision to spend their
available resources (time, money, effort) on consumption related items. It includes the study
of why they buy it, when they buy it, where they buy it, how often they buy it & how often
they use it.
This study focused on understanding the consumer buying behaviour of pens at retail outlets.
It also focused on the issue that whether the marketing strategies are properly implemented or
not. The study would be beneficial for the ITC Company to formulate the strategy for future.

DEFINITION
Consumer Buying Behaviour:
The collective actions, including the searching, evaluation, selection, purchasing, consuming,
disposing of products, taken by consumers in determining which goods and services hold the
most value for meeting their wants and needs. Marketers study consumer buying behaviour to
determine the influence of psychological, sociological, demographical, and cultural factors
have on buying decisions.

1.2 SCOPE OF THE STUDY

1

This study helps to the candidates to know about the consumer buying behaviour and
its influencing factors

This study will help the company to know about the consumer buying behaviour
pattern of their products

This study will help the company to identify the right marketing mix for the products

This study helps the company to improve their strategic formulation and decision
making process

1.3 STATEMENT OF THE PROBLEM

To study the consumer buying behaviour and retailers perceptive of classmate pen with its
competitors

1.4 OBJECTIVES OF THE STUDY

To know about the pen industry.
To study purchases and consumption pattern of pens by the consumers.
To know which factors mostly influences the consumer to buy pens.
To know which price range of pens are mostly preferred by the people.
To study the impact advertisement on consumers
To know the effectiveness of In-shop advertisement retail outlet
To help the company marketing managers to design an effective marketing mix for its
target customers.

1.5 LIMITATIONS OF THE STUDY:

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A research study is never perfect. There is always some scope of improvement in the study in
the future. Thus, it becomes important to critically evaluate the results and the whole study.
The present study has certain limitations that need to be taken into account when considering
the study and its contributions:
1

There a number of a factor, which affects consumers perception about pens and is not
possible to take all of them into account. Thus, this study is limited to variable under
consideration.

The research is based on the responses given by the respondents, which may or may
not be biased.

The results shown are relative in nature and are not absolute. In other words, it is the
perception of an average customer.

The research study was conducted within the limited duration of time. So a detailed
and comprehensive study could not be made
.

CHAPTER 2 - INDUSTRY &

COMPANY PROFILE

2.1 INDUSTRY PROFILE

2.1.1 PROFILE OF PEN INDUSTRY IN INDIA
There has been a need to document through the use of writing instrument since the dawn of
mankind. Pen and pencils continue to be the staples of everyday life and indispensable items
for everyday use. Writing instruments continue to play integral part in the life of particularly
every business, school and household. The advent of computers and related technology has
yet to make writing industry and instruments slow placed and obsolete. In fact the writing
instrument embraces the evolution of technology by incorporating it into new products and
using it to enhance business aspects and client services.
India is the only country after China to have fully fledged writing instruments industry built
purely on the platform of its own domestic market demand. The size of the writing instrument
industry in India is estimated about Rs.1800 Crores of which organized player account for
80% of the market share and the unorganized player for the rest. The industry grew by about
15% in 2004-05 and by 13.5% in 2005-06, largely driven by the growth of organized sector,
indicating that consumer are responding favorably to quality and branding. It is expected that
promotion, easy availability and affordability, branded off make will accelerate and helped
the organized sector eat into unorganized presence.
The Indian writing instruments market today is still on the path of discovering new niches
with ergonomic designed products, promotional marketing items and luxury items but in the
coming years it is bound to grow tremendously not only domestically but also in its exports
emerging as world leaders in Writing Instruments.
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Indias writing instrument industry is reserved for the small sector with a statutory limit on
the maximum investment in plant and machinery at Rs 50 crores. As a result critical pen
component like refills are manufactured in house, while all non-critical components are
outsourced.
Most Indian companies cater to the Value for Money (i.e. high volume low value strategy)
while international player caters to premiums segment operating through exclusive
distributers. Globally writing instruments industry is estimated at Rs 50000 crores (p.a).
China controls approximately 10% of the global markets while the Indian share had so far
been mini scale. But given the superior quality perception that Made in India pens have
over the Chinese; the buying preference of major retailers has been shifting to Indian
products and brands.
There are over 50 brands In Indias organized and unorganized sectors. With economic
liberalization many premium international brands entered India either independently or in
collaboration with Indian manufacturers and distributors. These includes Reynolds, Parker,
Cross, Mont Blanc, Cartier, Pierre Cardin and other designer pens from Episode, Frazer and
Haws, Christian Dior and waterman. Over the years, the market share flowed from the
unbranded to the branded sector. The market is segmented according to the following target
audience:

Students(many of whom depend only on pencils and ball point pens)

Frequent users(in offices across commercial and public establishments)

Occasional users(housewives and literate manual workers)

While Indias literacy rate is a high 74%, all literates occasionally use ball or fountain pens.
While pen demand among the employed is relatively stagnant, demand among students is
experiencing a healthy growth as this segment is more brands conscious.
The writing instrument market is dominated by ball point pens accounting for 70% of Indias
total pen demand, followed by gel pens at 20% and fountain pens at 4%. 85% of users use
blue, black and red ink.

Category
Type

% user share

Students

55-60

Commercial
30-25
15-10

Multi-level

Source : - AC Nielsen Report (June 2012)

Table 2.1 Category Break up of Pen User

The above information regarding the writing instrument industry has been obtained from the
public sources like: Business line, Economic Times, Financial Express, some companies
catalog are used along with internet support.
2.1.2 GLOBAL WRITING INSTRUMENT INDUSTRY
Globally, writing instrument industry is rising at a healthy rate despite growing
computerization. The global writing instrument industry is estimated at Rs 65000 crores. (p.a)
where USA markets grew by 5% last year (2005-06) and is expected to grow by the same
proportionate at this time too. China controls approximately 10% of the global market, due to
its manufacturing process. India is becoming most preferred manufacturing destination after
china. Indian product quality is among best in the world, Compared to china mass market
products. Indian market is growing healthily at 15 to 20% and is expected to grow with same
rate for upcoming 2 to3 years (acc CAGR), where the organize sector now controls 70%
market share in 2011 as compared to 54% up to 2000.

2.1.3 MARKET AND MARKET INFORMATION (IN DETAILS)

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 The worldwide market size for writing industry is Rs 100000 Crores (p.a),where
USAs market alone is $4.68 Billion Dollars (App Rs 21000 Crores).
China exports of pens are over Rs 5000 Crores (p.a).
India exports of pens are over Rs 200 Crores (p.a).
The annual turnover of the industry in India is now estimated at Rs 2000 Crores per
annum and is expected to increase at an annual growth rate by 15-20% per annum.
About 80% of Indias pen industry revenue comes from pens with a price range of up
to Rs. 15.
A small percentage of pens are priced in the range of Rs. 100-300.
The market for lower price range pens (up to Rs.15) is growing at 7-8% annually; the
mid-range pen market is growing faster at 8-10%.
India is viewed as a quality supplier, where as china as a cheaper and lower quality
products supplier.
Germany, Japan, Taiwan & Korea were hubs for the writing instrument industry, but
due to cast factor manufactured have started shifting to China and India.
Previously Switzerland was the manufacturing center for ball point tips, but now India
is emerging as a major Tip manufacturer satisfying not only Domestic demand but
Global demand also.
2.1.4 REGULATORY REQUIREMENTS
In India as per law, the manufacturing of writing instruments is reserved or falls under the
category of SSI (Small Scale Industry Sector). Thus there is ceiling on investment in plant
and machinery manufacturing process (Max Rs. 50 Crores), excluding mould making as it is
highly capital intensive pert of manufacturing. Of course any EOU (Export Oriented Unit)
does not fall under this purview of SSI.
2.1.5 CHANGING CONSUMER BEHAVIOUR
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The purchase of a single pen used to be a considered decision until not too long ago. Today,
most consumers buy multiple pens in a single purchase. Because the consumer would go out
specifically to buy a pen earlier, today most buy along with a number of other things as part
of their monthly provisions. Earlier there was one pen to write, now interestingly even as
communication getting increasing psychological, there is different pen, ink, size of different
moods, needs and situation.
Gone are the days where pen were just considered as merely an item of writing. But now it is
a quasi-fashion statement something thats aligns with your personality, of course still the pen
purchase decision is considered as low involvement decision.

Market Break-up

28%

Gel pens
Ball pens

72%

Chart 2.1: Ball and Gel pen-Market Break-up (value)

Market share
20%
Un organised
Organised
80%

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Chart 2.2: Market share of pen industry

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2.2 COMPANY PROFILE

2.2.1 INTRODUCTION TO THE COMPANY

ITC is one of India's foremost private sector companies with a

market capitalisation of nearly US $ 30 billion and a turnover of over
US $ 6.1 Billion. ITC is rated among the World's Best Big
Companies, Asia's 'Fab 50' and the World's Most Reputable
Companies by Forbes magazine, among India's Most Respected Companies by Business
World and among India's Most Valuable Companies by Business Today. ITC ranks among
India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and
published by the Economic Times. ITC also ranks among Asia's 50 best performing
companies compiled by Business Week.
2.2.2 HISTORY OF ITC
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of
India Limited'. A leased office on Radha Bazar Lane, Kolkata, was the centre of the
Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by
purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road)
Kolkata, for the sum of Rs 310,000. The Company's ownership progressively Indianised, and
the name of the Company was changed to I.T.C. Limited in 1974. In recognition of the
Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes &
Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, AgriExports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in the
Company's name were removed effective September 18, 2001.
ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration
for ITC's Cigarettes business. It is today India's most sophisticated packaging house.
In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai
which was rechristened 'ITC-Welcomgroup Hotel Chola'. Since then ITC's Hotels business
has grown to occupy a position of leadership, with over 70 owned and managed properties
spread across India.
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In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited, which today has become the market leader in India.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture.
In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was
changed to Surya Nepal Private Limited (Surya Nepal).
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company
and a major supplier of tissue paper to the cigarette industry. Tribeni Tissues Division was
merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty
Papers Division in November 2002.
In 1990, leveraging its agri-sourcing competency ITC set up the Agri Business Division for
export of agri-commodities. ITC's unique and now widely acknowledged e-Choupal initiative
began in 2000 with Soya farmers in Madhya Pradesh. Now it extends to 9 states covering
over 4 million farmers. ITC's first rural mall, christened 'ChoupalSagaar' was inaugurated in
August 2004 at Sehore. On the rural retail front, 24 'ChoupalSaagars' are now operational in
the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.
In 2000, ITC launched a line of high quality greeting cards under the brand name
'Expressions'. In 2002, the product range was enlarged with the introduction of Gift wrappers,
Autograph books and Slam books. In the same year, ITC also launched 'Expressions
Matrubhasha', a vernacular range of greeting cards in eight languages and 'Expressions
Paperkraft', a range of premium stationery products. In 2003, the company rolled out
'Classmate', a range of notebooks in the school stationery segment.
ITC also entered the Lifestyle Retailing business with the Wills Sport range of international
quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive
stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife
evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear
brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's
most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition
from buyers and retailers as the single largest B-2-B platform for the Fashion Design
industry. In 2007, the Company introduced 'Miss Players'- a fashion brand in the popular
segment for the young woman.
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In 2000, ITC spun off its information technology business into a wholly owned subsidiary,
ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area.
ITC's foray into the Foods business is an outstanding example of successfully blending
multiple internal competencies to create a new driver of business growth. It began in August
2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes.
In 2002, ITC entered the confectionery and staples segments with the launch of the brands
mint-o and Candyman confectionery and Aashirvaadatta (wheat flour). 2003 witnessed the
introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast
growing branded snacks category with Bingo! in 2007.
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire
value chain found yet another expression in the Safety Matches initiative. ITC now markets
popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.
ITC forayed into the marketing of agarbattis (incense sticks) in 2003 marked the
manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands
include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet,
Sandalwood, Madhur, Sambrani and Nagchampa.
ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care
products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills
provides a comprehensive grooming regimen with distinct lines for men (InizioHomme) and
women (Inizio Femme). Continuing with its tradition of bringing world class products to
Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos,
Shower Gels and Soaps in September, October and December 2007 respectively. The
Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market
segment at select markets in October 2007 and Vivel De Wills &Vivel range of soaps in
February and Vivel range of shampoos in June 2008.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,
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Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.
While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels,
Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its
nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and
Stationery.
As one of India's most valuable and respected corporations, ITC is widely perceived to be
dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a
commitment beyond the market". In his own words: "ITC believes that its aspiration to
create enduring value for the nation provides the motive force to sustain growing shareholder
value. ITC practices this philosophy by not only driving each of its businesses towards
international competitiveness but by also consciously contributing to enhancing the
competitiveness of the larger value chain of which it is a part."

ITC's diversified status originates from its corporate strategy aimed at creating multiple
drivers of growth anchored on its time-tested core competencies: unmatched distribution
reach, superior brand-building capabilities, effective supply chain management and
acknowledged service skills in hoteliering. Over time, the strategic forays into new
businesses are expected to garner a significant share of these emerging high-growth markets
in India.
ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of
the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The
Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its
competitiveness by empowering Indian farmers through the power of the Internet. This
transformational strategy, which has already become the subject matter of a case study at
Harvard Business School, is expected to progressively create for ITC a huge rural distribution
infrastructure, significantly enhancing the Company's marketing reach.
ITC's wholly owned Information Technology subsidiary, ITC Infotech India Limited, is
aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including
e-enabled services and business process outsourcing.

16

ITC's production facilities and hotels have won numerous national and international awards
for quality, productivity, safety and environment management systems. ITC was the first
company in India to voluntarily seek a corporate governance rating.
ITC employs over 26,000 people at more than 60 locations across India. The Company
continuously endeavors to enhance its wealth generating capabilities in a globalising
environment to consistently reward more than 3,75,000 shareholders, fulfill the aspirations of
its stakeholders and meet societal expectations. This over-arching vision of the company is
expressively captured in its corporate positioning statement: "Enduring Value. For the
nation.For the Shareholder."
2.2.3 ITCs Product Mix
Cigarettes

ITC is the market leader in cigarettes in India. With its wide range of invaluable
brands, it has a leadership position in every segment of the market. It's highly
popular portfolio of brands includes Insignia, India Kings, Classic, Gold Flake,
Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.

The Company has been able to build on its leadership position because of its single
minded focus on value creation for the consumer through significant investments in
product design, innovation, manufacturing technology, quality, marketing and
distribution.

All initiatives are therefore worked upon with the intent to fortify market standing in
the long term. This in turns aids in designing products which are contemporary and
relevant to the changing attitudes and evolving socio economic profile of the country.
This strategic focus on the consumer has paid ITC handsome dividends.

ITC's pursuit of international competitiveness is reflected in its initiatives in the

overseas markets. In the extremely competitive US market, ITC offers high-quality,
value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has become a
key player in the GCC markets through growing volumes of its brands.

17

ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru, Munger,

Saharanpur and Kolkata. These factories are known for their high levels of quality,
contemporary technology and work environment.

FMCG Foods

ITC made its entry into the branded & packaged Foods business in August 2001 with
the launch of the Kitchens of India brand. A more broad-based entry has been made
since June 2002 with brand launches in the Confectionery, Staples and Snack Foods

segments.
The packaged foods business is an ideal avenue to leverage ITC's proven strengths in
the areas of hospitality and branded cuisine, contemporary packaging and sourcing of
agricultural commodities. ITC's world famous restaurants like the Bukhara and the
Dum Pukht, nurtured by the Company's Hotels business, demonstrate that ITC has a
deep understanding of the Indian palate and the expertise required to translate this
knowledge into delightful dining experiences for the consumer. ITC has stood for
quality products for over 98 years to the Indian consumer and several of its brands are

today internationally benchmarked for quality.

The Foods business carries forward this proud tradition to deliver quality food
products to the consumer. All products of ITC's Foods business available in the
market today have been crafted based on consumer insights developed through
extensive market research. Apart from the current portfolio of products, several new
and innovative products are under development in ITC's state-of-the-art Product

Development facility located at Bengaluru.

Leadership in the Foods business requires a keen understanding of the supply chain
for agricultural produce. ITC has over the last 98 years established a very close
business relationship with the farming community in India and is currently in the
process of enhancing the Indian farmer's ability to link to global markets, through the
e-Choupal initiative, and produce the quality demanded by its customers. This longstanding relationship is being leveraged in sourcing best quality agricultural produce

for ITC's Foods business.

The Foods business is today represented in 4 categories in the market. These are:
18

Ready To Eat Foods

Staples

Confectionery

Snack Foods

In order to assure consumers of the highest standards of food safety and hygiene, ITC
is engaged in assisting outsourced manufacturers in implementing world-class
hygiene standards through HACCP certification. The unwavering commitment to
internationally benchmarked quality standards enabled ITC to rapidly gain market
standing in all its 6 brands:

Kitchens of India

Aashirvaad

Sunfeast

mint-o

Candyman

Bingo!

Lifestyle Retailing

ITCs Lifestyle Retailing Business Division has established a nationwide retailing

presence through its Wills Lifestyle chain of exclusive specialty stores. Wills
Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work
wear, Wills Sport relaxed wear, Wills Clublife evening wear, fashion accessories and
Essenza Di Wills an exclusive range of fine fragrances and bath & body care
products and Fiama Di Wills - a range of premium shampoos and shower gels. Wills
Lifestyle has also introduced Wills Signature designer wear, designed by the leading

designers of the country.

With a distinctive presence across segments at the premium end, ITC has also
established John Players as a brand that offers a complete fashion wardrobe to the
male youth of today. The recent launch of Miss Players with its range of trendy
fashion wear for young women has been a successful addition to the youthful offering.
With its brands, ITC is committed to build a dominant presence in the apparel market

through a robust portfolio of offerings.

At Wills Lifestyle, customers can browse at leisure, and shop in a relaxed and
pleasing atmosphere. The use of space is refreshing, which is reflected even in the
spacious changing rooms. Every store offers an international retailing ambience with

19

the extensive use of glass, steel and granite, reflecting the most contemporary trends

in store design, thereby creating a splendid backdrop for the premium offerings.
Wills Lifestyle was named Superbrand 2009 by the Superbrands Council of

India recently. Wills Lifestyle has been twice declared 'The Most Admired
Exclusive Brand Retail Chain of the Year' at the Images Fashion Awards in 2001
& 2003 as well as 'Most Admired Fashion Brand of the year - Fashion Forward'
in 2009.

Personal Care

In line with ITC's aspiration to be India's premier FMCG company, recognised for its
world-class quality and enduring consumer trust, ITC forayed into the Personal Care
business in July 2005. In the short period since its entry, ITC has already launched an
array of brands, each of which offers a unique and superior value proposition to
discerning consumers. Anchored on extensive consumer research and product
development, ITC's personal care portfolio brings world-class products with clearly
differentiated benefits to quality-seeking consumers.

ITC's Personal Care portfolio under the 'Essenza Di Wills','Fiama Di Wills', 'Vivel
Di Wills' 'VivelUltraPro', 'Vivel' and 'Superia' brands has received encouraging
consumer response and is being progressively extended nationally.

ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene

and benchmarked manufacturing practices. Contemporary technology and the latest
manufacturing processes have combined to produce distinctly superior products which
rank high on quality and consumer appeal.

Extensive insights gained by ITC through its numerous consumer engagements have
provided the platform for its R&D and Product Development teams to develop
superior, differentiated products that meet the consumer's stated and innate needs. The
product formulations use internationally recognised safe ingredients, subjected to the
highest standards of safety and performance.

Education & Stationary products

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ITC made its entry into the stationery business in the year 2002 with its premium
range of notebooks, followed in the year 2003 with the more popular range to
augment its offering.

Today, ITC continues to blend its core capabilities to market a growing range of
education and stationery products. These capabilities include,
a.

Manufacturer of Indias first Ozone treated environment friendly Elemental

Chlorine Free (ECF) pulp, paper and paperboard.

b.

Knowledge of image processing, printing & conversion garnered from its

Packaging&
c.

Printin Business.

Brand Building & Trade Marketing & Distribution strengths resident in its

FMCG Business.

ITCs stationery Brands are marketed as Classmate and Paperkraft, with

Classmate addressing the needs of students and Paperkraft targeted towards college

students and executives.

Classmate - Indias truly largest National brand, reaching 65,000 outlets across the
country, has over 300 variants in its range which comprises notebooks, long books,

practical books, drawing books, scrap books, reminder pads etc.

The Classmate Fun N Learn range of children books targeting pre school learners,
comprising categories like Pre School Learner,Active Minds and Read Aloud Tales
with features like Wipe n Use again, Trace & Color and Puzzles ensure that a child's

first lessons are truly enjoyable.

Classmate Invento Geometry Boxes, launched for school students comprise a worldclass precision compass and high quality plastic instruments coupled with interesting

trivia and useful information, to make geometry more fascinating for students.
Aesthetically designed, Classmate pens offer the consumer a smoother and more
comfortable writing experience through use of ergonomic design, reducing the effort
required for writing. The initial launch comprises ball pens - Classmate Safari and

Classmate Ilet - and gel pens - Classmate Glider and Classmate Octane.
A new entry to the Classmate portfolio is its range of HB Jet Black pencils. Designed
attractively for school kids, the pencils offer a unique advantage of lesser lead wear
out and thus, Stay Sharper for Longer.
21

The Classmate Notebook range builds in regional preferences and caters to the
requirements of All India & State Education Boards. Every Classmate notebook
carries ITC's Corporate Social Responsibility message on its back. For every four
Classmate Notebooks, ITC contributes Re. 1 to its rural development initiative that

supports, among other projects, primary education in villages.

Classmate has successfully run the Classmate Young Author & Artist Contest for
5 years. The contest is a national level event going across 34 cities and getting

participation from 5000 schools.

The Paperkraft range consists of premium stationery with a wide variety for
executives to choose from. The assortment consists of notepads & multi subject

notebooks in hard, soft covers & multiple binding formats including spirals, wiros etc.
The Paperkraftbrand recently launched premium business paper an environment
friendly multipurpose paper for office and home use. The paper has been crafted by
ITCs Bhadrachalam unit using a pioneering technology, called Ozone Treated
Elemental Chlorine Free technology. Paperkraft business paper is the whitest and
brightest 75 & 70 GSM papers manufactured in India and provides consumers an
opportunity to Go Green.

Safety Matches

As part of its strategic initiative to create multiple drivers of growth in the FMCG
sector, ITC commenced marketing safety matches sourced from the small-scale sector.
The Matches business leverages the core strengths of ITC in marketing and
distribution, brand building, supply chain management and paperboard & packaging
to offer Indian consumers high quality safety matches.

ITCs range of Safety matches include popular brands like i Kno, Mangaldeep, Aim,
Aim Mega and Aim Metro. With differentiated product features and innovative value
additions, these brands effectively address the needs of different consumer segments.
The Aim brand is the largest selling brand of Safety Matches in India. ITC also
exports regular and premium safety matches brands to markets such as Middle East,
Africa and the USA. The successful acquisition of Wimco Ltd. by Russell Credit Ltd.,
a wholly owned subsidiary of ITC has consolidated the market standing of the
Company's Matches business through synergy benefits derived through combined
portfolio of offerings, improved servicing of proximal markets and freight
22

optimization. Through its participation, ITC aims to enhance the competitiveness of

the small and medium scale sectors through its complementary R&D based product
development and marketing strengths, especially the breadth and depth of the
Company's trade marketing and distribution.
Agarbattis
As part of ITC's business strategy of creating multiple drivers of growth in the FMCG sector,
the Company commenced marketing Agarbattis (incense sticks) sourced from small-scale and
cottage units in 2003. This business leverages the core strengths of ITC in nation-wide
distribution and marketing, brand building, supply chain management, manufacture of high
quality paperboards and the creation of innovative packaging solutions to offer Indian
consumers high quality Agarbattis. With its participation in the business, ITC aims to enhance
the competitiveness of the small and medium scale sectors through its complementary R&D
based product development and strengths in trade marketing and distribution.

MangaldeepAgarbattis are available in a wide range of fragrances like Rose, Jasmine,

Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra.

MangaldeepYantra is a special offering from ITC and this specially created
fragrance evokes the ambience of a temple. The premium range from ITC,
MangaldeepSpriha has two offerings, Pratiti and Sarvatra and are specially hand
rolled by Cottage Industries, Sri Aurobindo Ashram, Puducherry. Cottage Industries,
Puducherry, has recently been accredited with IFAT certification, which is an

internationally recognized benchmark for fair trade practices.

Mangaldeep is also available in 3-in-1 and 5-in-1 packs giving the consumer a choice
of multiple fragrances in a single pack. Mangaldeep appeals to a cross-section of
consumers with offerings at various price points. These agarbattis are available in
innovative 'Fragrance-Locked' packaging. 'Fragrance locking' is a unique concept of
packaging which retains the fragrance for a longer period and helps in "Completing
the Purity of Prayer". Mangaldeep is fast emerging as the only national brand in an

industry dominated by multiple local brands.

In line with ITC's Triple Bottom Line philosophy of every business contributing to the
nation's economic, environmental and social capital, Mangaldeepagarbattis are
manufactured by small scale and cottage units, providing livelihood opportunities for
more than 5000 people. Seven out of 10 MangaldeepAgarbatti manufacturing units
23

are ISO 9000 certified. Mangaldeep ASHA (Assistance in Social Habilitation through
Agarbattis) is an ITC initiative to improve the quality of raw agarbatti production and
provide better value realization for women rollers. Under the project, ITC has
extended support to NGOs in states and like Bihar, Tripura, Tamil Nadu, who are
setting up agarbatti units, training village women in rolling agarbattis and employing
them in these units.

Expressions Aromatic Candles

o Leveraging its deep consumer insight, ITC's Agarbatti business recently
launched "Expressions" Premium Range of Aromatic Candles in India
through Wills Lifestyle Stores. Research on usage and attitude reveals a strong
linkage of candles to attributes like Romance, Decoration and Wellness
(Aromatherapy).
o The Expressions range of Aromatic candles comprises Amour - the Romance
Series, Adora - the Decor Series and Nirvana - the Spa Series. The basis of
segmentation is colour and fragrance - Red for romance, Purple for dcor and
Green for wellness. The fragrance of the candles have been specially selected
are made from the finest perfumes and oils. Each candle's fragrance, shape and
design are carefully chosen with a distinct sensation and ambience in mind.
Ideal for gifting, Expressions Aromatic Candles promise to soothe, uplift and
transform.

Hotels

ITC entered the hotels business in 1975 with the acquisition of a hotel in Chennai,
which was then rechristened ITC Chola. Since then the ITC-Welcomgroup brand has
become synonymous with Indian hospitality. With over 100 hotels in more than 80
destinations, ITC-Welcomgroup has set new standards of excellence in the hotel
industry in Accommodation, Cuisine, Environment and Guest Safety. ITC's Hotels
business is one of India's finest and fastest growing hospitality chains. ITC Hotels'
commitment to delivering globally benchmarked services, embedded in a culture
deeply rooted in India's rich tradition of hospitality, gives it a unique and distinct

24

identity.

A leader in the premium hospitality segment, ITC Hotels have had the privilege of
hosting world leaders, Heads of State and discerning guests from across the world and

within.
ITC-Welcomgroup pioneered the holistic concept of 'branded accommodation' in the
hospitality industry. It was the first to launch the idea of a 'Hotel within a Hotel' by
segmenting, customizing and branding hotel services like 'ITC One', 'Towers' and the
'Executive Club'. Each of these caters to specialized needs of the global business
traveller with unmatched quality and a range of custom-made services.

Paperboard and Specialty papers

ITCs Paperboards and Specialty Papers Division is Indias largest and most
technologically advanced paper and paperboards business. ITC caters to a wide
spectrum of packaging, graphic, communication, writing, printing and specialty paper
requirements through its four world-class mills in India. Having pioneered many
speciality applications like cigarette tissues, packaging boards, aseptic cartons and
gypsum liners, ITCs Paperboards and Specialty papers business enjoys market
leadership in the value-added paperboards segment, and also has a significant share of
the Indian paperboards market. It is also the largest Indian exporter of coated boards.

Packaging

ITC's Packaging & Printing Business is the country's largest convertor of

paperboard into packaging. It converts over 50,000 tonnes of paper and paperboard
per annum into a variety of value-added packaging solutions for the food & beverage,

25

personal products, cigarette, liquor, cellular phone and IT packaging industries. It has
also entered the Flexibles and Corrugated Cartons business.

The Division, which was set up in 1925 as a strategic backward integration for ITC's
Cigarettes business, is today India's most sophisticated packaging house. State-of-theart technology, world-class quality and a highly skilled and dedicated team have
combined to position ITC as the first-choice supplier of high value added
packaging.

The Division supplies value-added packaging to the Company's Cigarettes business.

Its client list includes several well-known national and international companies like
British American Tobacco, Philip Morris International, Surya Nepal Private
Limited, VST Industries, UB Group, Nokia, Flextronics, Foxconn, FMC India
Pvt Ltd., PernodRicard, Allied Domecq, Whyte & Mackay, Hindustan Lever,
Tata Tetley, Nestle and Reckitt Benkiser India Limited, etc.

With all the three factories at Tiruvottiyur near Chennai, Munger in Bihar and
Haridwar in Uttarakhand certified to ISO 9001, ISO 14001 and OHSAS 18001,
the Company offers a comprehensive product range in packaging:

Flip-top boxes Display outers Shells and Slides Soft cup and strap Labels
Bundle Wraps Flap boxes Inner Frames Coupon Inserts Folding Cartons
Fluted Cartons

Shoulder Boxes

Pre-printed cork tipping

Flexibles

Packaging

ITC occupies a leadership position in cigarette and liquor packaging in India. It

supplies packaging to cover 70 billion cigarettes a year domestically, and supplies
packaging for 15 billion cigarette sticks a year for the export market. It is the largest
supplier of liquor mono cartons in the country.

ITC has enhanced the value of some of the most favoured brands with superior lookand-feel packaging, using the best raw materials and process combinations, and an inhouse pre-press Design Centre.

26

A Product Introduction Process team pioneers packaging innovations. The team uses a
unique process to pilot the client's packaging through its manufacturing system.
Specifications are evolved based on clients' needs. Corresponding to the
specifications, a variety of packaging solutions is then generated. The efficacy of the
packaging is tested simulating the client's factory conditions.

2.2.4 VISION OF THE COMPANY

Sustain ITC's position as one of India's most valuable corporations through world class
performance, creating growing value for the Indian economy and the Companys
stakeholders.
2.2.5 MISSION OF THE COMPANY
To enhance the wealth generating capability of the enterprise in a globalising environment,
delivering superior and sustainable stakeholder value.
2.2.6 ITCs CORE VALUES
ITC's Core Values are aimed at developing a customer-focused, high-performance
organisation which creates value for all its stakeholders:
Trusteeship
As professional managers, we are conscious that ITC has been given to us in "trust" by all
their stakeholders. ITC actualise stakeholder value and interest on a long-term sustainable
basis.

Customer Focus
ITC is always customer focused and will deliver what the customer needs in terms of value,
quality and satisfaction.
27

Respect For People

ITC is result oriented, setting high performance standards as individuals and teams. ITC
simultaneously respect and value people and uphold humanness and human dignity. ITC
acknowledge every individual brings different perspectives and capabilities to the team and
that a strong team is founded on a variety of perspectives. ITC want individuals to dream,
value differences, create and experiment in pursuit of opportunities and achieve leadership
through teamwork.
Excellence
ITC do what is right, do it well and win. ITC will strive for excellence in whatever they do.
Innovation
ITC will constantly pursue newer and better processes, products, services and management
practices.
Nation Orientation
ITC is aware of their responsibility to generate economic value for the Nation. In pursuit of
their goals, ITC will make no compromise in complying with applicable laws and regulations
at all levels.
ITCs Philosophy
ITC believes in practicing ethical behaviour among the corporate citizen. The company
follows an HR policy that is regulated by Teamwork, Trust, Collaboration, Mutuality,
Meritocracy, Objectivity, Collaboration, Self-respect and Human-dignity. It is also deeply
committed to make the company a gender friendly place for each individual while also
ensuring enhancement of equal opportunities for men and women, preventing sexual
harassment of any form and the adherence to good employment practices. It is ensured that
the interest of the company is foremost and in this context acceptance of any kind of gifts or
payments from suppliers or customers is viewed as a serious breach of company discipline.
And such acts are also considered as damaging to the reputation of the company.

28

High standards of house keeping and hygiene are followed to ensure excellent physical
working conditions. It is understood that all the directors, senior management and employees
shall conduct themselves in an honest manner and avoid any conflict of interest.
The top officials and employees of ITC believe that ITC provides them freedom at work and
resources to experiment. Employees take pride in working for ITC for its work culture,
environment, and the way people are treated. They are consulted before a new project\system
is introduced and their concerns and suggestions addressed. ITC also gives a lot of input to
develop their skill and career. They give utmost importance to equal opportunities, better
work environment.

2.2.7 CERTIFICATION OF ITC

ITC constantly endeavors to benchmark its products, services and processes to global
standards. The Company's pursuit of excellence has earned it national and international
honors. ITC is one of the eight Indian companies to figure in Forbes A-List for 2004,
featuring 400 of "the world's best big companies". Forbes has also named ITC among
Asia's'Fab 50' and the World's Most Reputable Companies
ITC is the first Indian company and the second in the world to win the prestigious
Development Gateway Award. It won the $100,000 Award for the year 2005 for its
trailblazing ITC e-Choupal initiative which has achieved the scale of a movement in rural
India. The Development Gateway Award recognizes ITC's e-Choupal as the most exemplary
contribution in the field of Information and Communication Technologies (ICT) for
development during the last 10 years. ITC e-Choupal won the Award for the importance of its
contribution to development priorities like poverty reduction, its scale and replicability,
sustainability and transparency.
ITC has won the inaugural 'World Business Award', the worldwide business award
recognizing companies who have made significant efforts to create sustainable livelihood
opportunities and enduring wealth in developing countries. The award has been instituted
jointly by the United Nations Development Programme (UNDP), International Chamber of
Commerce (ICC) and the HRH Prince of Wales International Business Leaders Forum
(IBLF).
29

ITC is the first Corporate to receive the Annual FICCI Outstanding Vision Corporate Triple
Impact Award in 2007 for its invaluable contribution to the triple bottom line benchmarks of
building economic, social and natural capital for the nation.
ITC has won the Golden Peacock Awards for 'Corporate Social Responsibility (Asia)' in
2007, the Award for CSR in Emerging Economies 2005 and Excellence in Corporate
Governance' in the same year. These Awards have been instituted by the Institute of
Directors, New Delhi, in association with the World Council for Corporate Governance and
Centre for Corporate Governance
ITC's cigarette factory in Kolkata is the first such unit in India to get ISO 9000 quality
certification and the first among cigarette factories in the world to be awarded the ISO 14001
certification
ITC Maurya in New Delhi is the first hotel in India to get the coveted ISO 14001
Environment Management Systems certification.
ITC Filtrona is the first cigarette filter company in the world to obtain ISO 14001
ITC Infotech finds pride of place among a select group of SEI CMM Level 5 companies in
the world.
ITC's Green Leaf Threshing plant in Chirala is the first in India and among the first 10
units in the world to bag the Social Accountability (SA 8000) certification
ITC Chairman Y C Deveshwar has received several honors over the years. Notable among
them are:

Year

Award

2007

SAM/SPG Sustainability Leadership Award conferred at the

International Sustainability Leadership Symposium, Zurich.
30

2006

Business Person of the Year from UK Trade & Investment, the UK

Government organisation that supports overseas businesses in that

2006
2005
2001

country.
Inducted into the `Hall of Pride' by the 93rd Indian Science Congress
Honoured with the Teacher's Lifetime Achievement Award
Manager Entrepreneur of the Year from Ernst & Young Retail
Visionary of the Year from Images, India's only fashion and retail
trade magazine

1998
1996
1994

Honorary Fellowship from the All India Management Association

Distinguished Alumni Award from IIT, Delhi
Marketing Man of the Year from A&M, the leading marketing

magazine
1986
Meridien Hotelier of the Year
ITC has won the 'Enterprise Business Transformation Award' for Asia Pacific (Apac),
instituted by Infosys Technologies and Wharton School of the University of Pennsylvania for
its celebrated e-Choupal initiative.
ITC is the only Indian FMCG Company to have featured in the Forbes 2000 list. The
Forbes 2000 is a comprehensive ranking of the world's biggest companies, measured by a
composite of sales, profits, assets and market value. The list spans 51 countries and 27
industries.
ITC continues its dominance of The Economic Times' Brand Equity listing of India's 100
Biggest FMCG Brands, with three brands from its stable making it to the top five. Gold Flake
remains India's biggest FMCG brand in terms of sales. Navy Cut ranks at No. 4. ITC's
Scissors brand ranks at No 5 and is the only new entrant into the top 10.
Restaurant magazine has chosen Bukhara at the ITC Maurya, New Delhi as the best Indian
restaurant in the world and the best restaurant in Asia. Bukhara has also been adjudged one of
the top 50 restaurants in the world by the London based magazine 'The Good Food Guide'.
Bukhara is the only South Asian restaurant to figure in the list.
ITC's Lifestyle Retailing Business Division (LRBD) has won the "Best Supply Chain
Practices Award" for time-effective and cost-efficient Logistics Management in Organized

31

Retail. The awards were organized by Retailers Association of India (RAI) in association
with ITW Signode - the International leaders in packaging solutions.

32

CHAPTER -3
REVIEW OF LITERATURE

3.1Consumer Buying Behaviour

Definition of Buying Behaviour:
Buying Behaviour is the decision processes and acts of people involved in buying and using
products.

33

Consumer Buying Behaviour refers to the buying behaviour of the ultimate consumer. A firm
needs to analyze buying behaviour for:

Buyers reactions to a firms marketing strategy has a great impact on the firms
success.

The marketing concept stresses that a firm should create a Marketing Mix (MM) that
satisfies (gives utility to) customers, therefore need to analyze the what, where, when
and how consumers buy.

Marketers can better predict how consumers will respond to marketing strategies.

3.2 Stages of the Consumer Buying Process

Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual
purchasing is only one stage of the process. Not all decision processes lead to a purchase. All
consumer decisions do not always include all 6 stages, determined by the degree of
complexity
The 6 stages are:
1

Problem Recognition(awareness of need)--difference between the desired state

and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger
stimulates your need to eat..

Information search-o

Internal search, memory.

External search if you need more information. Friends and relatives (word
of mouth). Marketer dominated sources; comparison shopping; public
sources etc.

A successful information search leaves a buyer with possible alternatives, the evoked
set.

34

Evaluation of Alternatives--need to establish criteria for evaluation, features the

buyer wants or does not want. Rank/weight alternatives or resume search..
Information from different sources may be treated differently. Marketers try to
influence by "framing" alternatives.

Purchase decision--Choose buying alternative, includes product, package, store,

method of purchase etc.

Purchase--May differ from decision, time lapse between 4 & 5, product

availability.

6 Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive

Dissonance, have you made the right decision. This can be reduced by warranties,
after sales communication etc.

3.3 Types of Consumer Buying Behaviours

Types of consumer buying behaviour are determined by:

Level of Involvement in purchase decision. Importance and intensity of interest in a

product in a particular situation.

Buyers level of involvement determines why he/she is motivated to seek information

about a certain products and brands but virtually ignores others.

High involvement purchases--Honda Motorbike, high priced goods, products visible to

others, and the higher the risk the higher the involvement. Types of risk:

Personal risk

Social risk

Economic risk

The four type of consumer buying behaviour are:

35

Routine Response/Programmed Behaviour--buying low involvement frequently

purchased low cost items; need very little search and decision effort; purchased
almost automatically. Examples include soft drinks, snack foods, milk etc.

Limited Decision Making--buying product occasionally. When you need to obtain

information about unfamiliar brand in a familiar product category, perhaps. Requires a
moderate amount of time for information gathering. Examples include Clothes--know
product class but not the brand.

Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or

infrequently bought products. High degree of economic/performance/psychological
risk. Examples include cars, homes, computers, education. Spend a lot of time seeking
information and deciding.

Impulse buying, no conscious planning.

3.4 Categories that Affect the Consumer Buying Decision Process

A consumer, making a purchase decision will be affected by the following three factors:
1

Personal

Psychological

Social

Personal
Unique to a particular person.Demographic Factors. Sex, Race, Age etc.Who in the family is
responsible for the decision making. Young people purchase things for different reasons than
older people.
Psychological factors
Psychological factors include:

Motives--A motive is an internal energizing force that orients a person's activities

toward satisfying a need or achieving a goal. Actions are effected by a set of motives,
36

not just one. If marketers can identify motives then they can better develop a
marketing mix.
Physiological

Safety

Love and Belonging

Esteem
Self-Actualization

Need to determine what level of the hierarchy the consumers are at to determine what
motivates their purchases.

Perception- Perception is the process of selecting, organizing and interpreting

information inputs to produce meaning. Information inputs are the sensations received
through sight, taste, hearing, smell and touch

Ability and Knowledge-Need to understand individuals capacity to learn. Learning,

changes in a person's behaviour caused by information and experience. Therefore to
change consumers' behaviour about your product, need to give them new information
about the product...free sample etc.

Attitudes-Knowledge and positive and negative feelings about an object or activitymaybe tangible or intangible, living or non- living...Attitudes and attitude change are
influenced by consumers personality and lifestyle. Consumers screen information that
conflicts with their attitudes. Distort information to make it consistent and selectively
retain information that reinforces our attitudes. There is a difference between attitude
and intention to buy (ability to buy).

37

Personality-all the internal traits and behaviours that make a person unique,
uniqueness arrives from a person's heredity and personal experience Traits effect the
way people behave. Marketers try to match the store image to the perceived image of
their customers. There is a weak association between personality and Buying
Behaviour, this may be due to unreliable measures. Nike ads. Consumers buy
products that are consistent with their self-concept.

Lifestyles-Lifestyles are the consistent patterns people follow in their lives.

Social Factors
Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family,
reference groups, social class and culture.

Opinion leaders-Spokespeople etc. Marketers try to attract opinion leaders...they

actually use (pay) spokespeople to market their products. Michael Jordon (Nike,
McDonalds, Gatorade etc.)

Roles and Family Influences-Role...things you should do based on the expectations

of you from your position within a group.
People have many roles

Husband, father, employer/ee. Individuals role are continuing to change therefore

marketers must continue to update information.

Reference Groups-Individual identifies with the group to the extent that he takes on
many of the values, attitudes or behaviours of the group members.Families, friends,
sororities, civic and professional organizations.Any group that has a positive or
negative influence on a persons attitude and behaviour.The degree to which a
reference group will affect a purchase decision depends on an individuals
susceptibility to reference group influence and the strength of his/her involvement
with the group.

Social Class-An open group of individuals who have similar social rank. US is not a
classless society. US criteria; occupation, education, income, wealth, race, ethnic
38

groups and possessions. Social class determines to some extent, the types, quality,
quantity of products that a person buys or uses. Lower class people tend to stay close
to home when shopping, do not engage in much prepurchase information gathering.
Stores project definite class images.Family, reference groups and social classes are all
social influences on consumer behaviour. All operate within a larger culture.

Culture and Sub-culture-Culture refers to the set of values, ideas, and attitudes that
are accepted by a homogenous group of people and transmitted to the next
generation.Culture also determines what is acceptable with product advertising.
Culture determines what people wear, eat, reside and travel. Cultural values in the US
are good health, education, individualism and freedom. In american culture time
scarcity is a growing problem. IE change in meals. Big impact on international
marketing.Different society, different levels of needs, different cultural values.
Culture can be divided into subcultures:
o

geographic regions

human characteristics such as age and ethnic background.

Culture effects what people buy, how they buy and when they buy.

39

CHAPTER 4
RESEARCH METHODOLOGY

40

RESEARCH
Research is a process in which the researcher wishes to find out the end result for a
given problem and thus the solution helps in future course of action. The research has been
defined as A careful investigation or enquiry especially through search for new fact in any
branch of knowledge.

4.1 RESEARCH METHODOLOGY

The procedure using, which researchers go about their work of describing, explaining
and predicting phenomena, is called Methodology. Methods compromise the procedures used
for generating, collecting, and evaluating data. Methods are the ways of obtaining
information useful for assessing explanation.

4.2 RESEARCH DESIGN

Research design is the specification of the method and procedure for
acquiring the information needed to solve the problem.
Degree of research question: Exploratory study is done for the study of consumer
buying behaviour
Time Dimension: The study was done using Cross Sectional method(As the Study is
done only once in the pre specified period of 8 weeks, longitudinal study was not
possible).

41

Research Instrument: Questionnaire is the research instrument used here.The researcher

has effectively used both open ended and close ended questions
Method of Data Collection
The data has been collected in two ways.

Primary Data: Primary data are those, which are collected for the first time, and they
are original in character. A suitable combination of Questionnaire techniques, &
discussion with the respondents was used to collect the required primary data.
Primary data gives higher accuracy and facts, which is very helpful for any research
and its findings.The researcher has collected primary data from questionnaire (i.e.)
personal interview.

Secondary Data: - The secondary data are those, which are already collected by
someone for some purpose and are available for the present study. Secondary data was
collected from the magazines, websites, and other such sources.

Sampled Population
A population is a group of individuals, object or items from which samples are taken for
measurement. All items in any field of enquiry constitute the universe. Here population
refers to the number of consumers and retailers who are using and selling various pens.
The sample population includes people from various categories like Business Person,
Service Person, Student, Housewife's Etc.
Sampling Area
Is the place where the sample is drowned. Here the researchers take samples from various
parts of Kottayam districts in Kerala
Sample Size
The number of sampling unit selected from the Population is called the size of the sample.
The sample size selected was 100 for consumers survey and 50 for retailers survey
Sampling technique
Here the researcher uses probability sampling method.ie simple random sampling is used as
the sampling technique.
4.3 STATISTICAL TOOLS USED
42

PERCENTAGE METHOD
In this project percentage method test and used. The following are the formula

Percentage of Respondent =

No. of Respondent

x 100

Total no. of Respondent

CHAPTER- 5
DATA ANALYSIS AND
INTERPRETATION

43

DATA ANALYSIS AND INTERPRETATION

The Analysis of data involves identifying the relations of quantified information to the
research problem in hand. Here percentage analysis is the tool for analyzing the data and
establishing a relationship between the information gathered and the research problem.

INTERPRETATION
The process of drawing inferences from the analyzed data in a research process is called as
interpretation. It refers to the technique of drawing inference from the collected facts and
explaining the significance of those inferences after an analytical and experimental study. It
is a search for broader and more abstract means of the research findings.

5.1 CONSUMER BUYING BEHAVIOUR QUESTIONNAIRE ANALYSIS

SAMPLE SIZE DETAILS:
Sample Population: Business Person, Service Person, Student, Housewife's Etc.
Sample Size: 100 Consumers
Age Group:
Sl.
No.

Age Group

1
2
3
4
5

15-20
20-25
25-35
35-50
Above 50

Number
52
31
9
5
3
44

Source: - Field survey

Table 5.1.1 Age group

; 5% Above 50; 3%

35-50
25-35 ; 9%

15-20 ; 52%
20-25 ; 31%

Chart 5.1.1 Age group

Occupation:

Sl.
No.
1
2
3
4

Category
Student
Business Person
Regular Employee
Others

Number
76
12
8
4

Source: - Field survey

Table 5.1.2 Occupation details

Others; 4%
Regular Employee; 8%
Business Person; 12%

Student ; 76%

Chart 5.1.2 Occupation details

Q 1). Which type of Pen do you currently use?

Sl. No.
1

Category

Number

Ball Pen

84
45

Gel Pen

12

Ink Pen

Premium pen

Source: - Field survey

Table 5.1.3 Types of pen using by consumer

Ink Pen ; 2% Premium pen; 2%

Gel Pen; 12%

Ball Pen ; 84%

Chart 5.1.3 Type of pen using by consumer

Findings: - Almost 84% of the respondents say that they use Ball Pen. And the next best
usage is of Gel Pen by 12%, Ink & Premium Pen are least preferred by the consumers in
the modern or present market condition
Inference: - Majority of the consumers prefers and uses Ball Pen than any other type of
pens

Q 2). Which Brand Of Ball Pen do prefer to write?

Purpose: - Main purpose behind this question is to know the most preferred brand in the
current market situation
Sl. No.
1
2
3
4
5
6
7

Brands
Classmate
Reynolds
Cello
Lexi
Linc
Italia
Others

Number
9
12
46
25
3
2
3

Source: - Field survey

Table 5.1.4 Most preferred brands

46

Italia; 2% Others; 3%
Classmate; 9%
Linc; 3%
Reynolds; 12%
Lexi; 25%

Cello; 46%

Chart 5.1.4 Most preferred brands

Findings: - From the above chart it has been analysed that majority of the consumers
(i.e.) 46% of them prefer Cello as a brand to be used which is followed by Reynolds
&Lexi by 12% & 25% responses whereas classmate pen are used by 9% only.
Inference:- Cello is the most preferred brand among consumers than its competitors

Q 3). What is the price range in which you generally used to buy a pen?
Sl.
No.
1
2
3
4
5

Price Range

Number

Below RS 5

20

Beteen RS 5 -Rs 10
Between RS 10-Rs15
Between RS 15-Rs20
Avove 20

60
12
5
3

Source: - Field survey

Table 5.1.5 Most selling price range of pens

Avove 20; 3%
Between RS 15-Rs20; 5%
Below RS 5; 20%
Between RS 10-Rs15; 12%

Beteen RS 5 -Rs 10; 60%

47

Chart 5.1.5 Most selling price range of pens

Findings: - It can be analyzed from the above graph that out of the total responses 60%
prefer pen in Rs 15 20 price range. Whereas the next most preferred price range is Below
Rs 5. The high price range ranging from Rs 15 20 & above that is least prefer by the
consumers.
Inference:- Consumer mostly favors and prefer their pen (either Ball or Gel) in the price
range of Rs 5-10

Q 4).From where do you prefer to buy pen?

Sl. No.
1
2
3
4

Type
Stationary shops
Super market
Shopping malls
Others

Number
81
8
9
2

Source: - Field survey

Table 5.1.6 Places of purchase

Chart Title
Shopping malls; 9% Others; 2%
Super market; 8%
Stationary shops ; 81%

Chart 5.1.6 Places of purchase

Findings: - It can be analysed from the above graph that out of the total responses, 81%
prefer stationary shops as their place of purchase
Inference: - Consumer mostly prefers to buy their pen from stationary shops.

48

Q 5). Which Characteristics of Pen Influence your Buying Decision?

Sl. No.
1
2
3
4
5

Characteristic
Smoothly writing
Grip
Price
Long-Life
Brand Name

Number
68
10
8
6
8

Source: - Field survey

Table 5.1.7 Factors influencing buying decision

Long-Life; 6%

Brand Name ; 8%

Price; 8%
Grip; 10%
Smoothly writing; 68%

Chart5.1.7 Factors influencing buying decision

Findings: - From the above graph that it can be identified that 68% of consumers buying
decisions are influenced by smoothly writing. The grip and brand name of pen have 10% and
8% influence on buying decision.
Inference: - Majority of consumers buying decisions are influenced by smoothly writing

Q 6). Which Advertising Media Influences You The Most?

Sl. No.
1
2
3
4

Media Type
TV Advertisements
Banners & hoarding
Newspapers & Magazines
Internet
Source: - Field survey

Table 5.1.8 Types of advertising media

49

Number
61
5
19
15

Internet; 15%
Newspapers & Magazines; 19%
TV Advertisements; 61%
Banners & hoarding; 5%

Chart 5.1.8 Types of advertising media

Findings: - From the chart it can be concluded that having almost 61% of the responses are
influenced by TV Advertisements. The next most influencing media is Newspaper impacting
the buying decision. Banners & hoarding is the least influencing among all media.
Inference: - TV Ads are the most influencing Ad impacting the buying decision of different
consumer segments

Q 7). Is your buying decision influence In-Shop advertisements?

Sl. No.
1
2

Response

Number

Yes

29

No

71

Source: - Field survey

Table 5.1.9 Effect of In-shop advertisement

Yes; 29%

No; 71%

Chart 5.1.9 Effect of In-shop advertisement

Findings: - From the chart it can be concluded that 71% of respondents buying decision are
not influenced by in shop advertisement. Only 29 % of respondents believes that their buying
decision are influenced by In shop ads
50

Inference:-Majority respondents buying decision are not influenced by in shop

advertisement

If Yes, Which influences the most?

Sl. No.
1
2
3
4
5

Type
Posters
Hoardings
Pen Stands
Stickers
Others

Number
10
1
12
5
1

Source: - Field survey

Table 5.1.10 Most influencing In-shop advertisements

Others; 3%
Stickers; 17%

Pen Stands; 41%

Posters; 34%

Hoardings; 3%

Chart 5.1.10 Most influencing In-shop advertisements

Findings: - From the chart it can be concluded that Pen stands are the most influencing In
shop Ad impacting the buying decision of different consumer segments having almost 41% of
the responses. Hoarding is the least influencing among all media
Inference:- Pen stands are the most influencing In shop Ad impacting the buying decision of
different consumer segments

Q 8). Who influence your buying decision most?

Sl. No.

Type of Respondents

Number

Parents

18

Friends

64

Colleagues

Sales person

Others

Source: - Field survey

Table 5.1.11 Persons who influencing buying decision

51

others ; 1%
sales person; 8% Parents; 18%
colleagues; 9%

friends; 64%

Chart 5.1.11 Persons who influencing buying decision

Findings: - 64% of the respondents buying decision are influenced by friends. The
next most influencers are parents.
Inference: - Friends are the most influencing group in the buying decision of different
consumer segments

Q 9). Do You Choose Only One Brand?

Sl. No.
1
2

Response

Number

Yes

60

No

40
Source: - Field survey

Table 5.1.12 Number of brand loyal customers

No; 40%
Yes; 60%

Chart 5.1.12 Number of brand loyal customers

Findings: - From the above chart it is analysed that 60% of responses are loyal to any brand
where as 40% of respondents are do not loyal and stick to only 1 brand.
Inference: - Majority of the respondents stick or are loyal to particular one brand

52

If Yes, Which brand?

Sl. No.
1
2
3
4
5
6
7

Brand
Classmate
Reynolds
Cello
Lexi
Linc
Italia
Others

Number
6
10
29
14
2
1
1

Source: - Field survey

Table 5.1.13Brand loyalty among different pens

Linc ; 3%
Lexi; 22%

Italia ; 2% Others; 2%
Classmate; 10%
Reynolds; 16%

Cello; 46%

Chart 5.1.13 Brand loyalty among different pens

Findings: - From the above chart it is analysed that brand loyalty is highest in cello ie.46%
followed by Lexi and Reynolds .Linc and Italia have the least no of brand loyal customers.
Inference:- Cello has the maximum brand loyal customers among different brands

Q10) Why do you purchase the same brand?

Sl. No.
1
2
3

Category
High Quality
Brand Image
Easy Availability

Number
46
11
24
53

4
5

Value for money

Others

16
3

Source: - Field survey

Table 5.1.14 Reasons for brand loyalty

Others; 3%
Value for money; 16%
High Quality; 46%
Easy Availability; 24%
Brand Image; 11%

Source: - Field survey

Chart 5.1.14 Reasons for brand loyalty

Findings: - From the above chart it is visualized that 46 % of respondents reason for
brand loyalty is high quality. Easy availability and value for money are the next reasons
Inference:- The main reason for brand loyalty in consumers is high quality of pen.

54

Q11). Rank the brands of pens according to your preference from 1-5?

4TH

5TH

Classmates

12

14

22

27

25

Cello

42

27

10

12

Reynolds

24

24

27

14

11

Lexi

17

25

14

26

18

Italia

10

28

23

34

Table 5.1.15 Ratings of brand performance

No of respondents

45
40
35
30
25
20
15
10
5
0

1ST
2ND
3RD
4TH

Brand name

Chart 5.1.15 Ratings of brand performance

55

Ita
lia

3RD

Le
xi

2ND

Re
yn
ol
ds

1ST

Ce
llo

Brand

Cl
as
sm
at
es

Sl.
No.
1

5TH

Findings: - From the above chart it is visualized that 42 respondents has given first rank
and 27 gave 2nd rank to Cello. Italia brand is the least preferred brand among consumers.
Inference: - Cello has got the highest average rating followed by Lexi and Reynolds.

Q 12) Number of pen usually buy in a year?

Sl. No.
1
2

Number of Pen
Less than 2
2 to 5

3
4

5 to 10
More than 10

Number of
Respondents
9
18
25
48

Source: - Field survey

Table 5.1.16 Average no. of pen buying in a year

Less than 2; 9%
2 to 5; 18%
More than 10; 48%
5 to 10; 25%

Chart 5.1.16 Average no. of pen buying in a year

Findings: - It can be analysed from the above graph that out of the total responses 48%,
purchase more than 10 pens in a year. Only 9% of respondents buy less than 2 pen in a year.
Inference:- Most of the consumer purchase more than 10 pens in a year

Q 13). Do You Refill Your Pen regularly?

Sl. No.
1
2

Response

Number

Yes

37

No

63

56

Source: - Field survey

Table 5.1.17 Number of regular refilling customers

Yes; 37%
No; 63%

Chart 5.1.17 Number of regular refilling customers

Findings: - From the chart it can be concluded that 63% of respondents do not refill their pen
and only 37 % refill their pen.
Inference: - Majority of respondents do not refill their pen

If No, Why
Sl. No.
1
2
3
4

Response
Pen Cost Is Negligible
Replacement results into Poor
Performance
Refill Is Unavailable
Others

- Field survey

Table 5.1.18 Reasons for non- refilling of pens

57

Number
42
12
9
1.2

Source:

Others; 2%
Refill Is Unavailable; 14%
Replacement results into Poor Performance; 19%
Pen Cost Is Negligible; 65%

Chart 5.1.18 Reasons of non- refilling of pens

Findings: - From the chart it can be concluded that 65% of customers do not refill their pen
because of pen cost is negligible. For 19 % the reason is that replacement results into poor
performance.
Inference: - From the chart it can be concluded that most of customers do not refill their pen
because of pen cost is negligible.

Q14) Have you purchased classmate pen?

Sl. No.
1
2

Response Number
Yes
39
No
61
Source: - Field survey

Table 5.1.19 Number of customers who have used classmate pens

58

Yes; 39%
No; 61%

Chart 5.1.19 Number of customers has used classmate pens

Findings: - From the chart it can be concluded that 39% of respondents have used classmate
pens n and 61 % of respondents never used classmate pen.
Inference:-Majority of respondents has never used classmate pen

59

RETAILRS QUESTIONNAIRE ANALYSIS

a) Type of store
Sl.
No
.
1
2
3
4

Category
Stationary store
Department store
Supermarket
Malls

Others

Number
30
9
6
3
2

Source: - Field survey

Table 5.2.1 Types of stores

Malls; 6% Others; 4%
Supermarket ; 12%
Stationary store; 60%

Department store; 18%

Source: - Field survey

Chart 5.2.1 Types of stores

60

B) Average monthly Sales:

Sl. No.
1
2
3
4
5

Monthly Sale
Less than 1 lakh
1-3lakh
3-5lakh
5-10lakh
Above 10 lakhs

Number
28
11
5
2
4

Source: - Field survey

Table 5.2.2 Average monthly sale

Above 10 lakhs; 8%
5-10lakh; 4%
3-5lakh; 10%
Less than 1 lakh; 56%
1-3lakh ; 22%

Chart 5.2.2 Average monthly sale

61

Q1) In which price range you sell maximum pens?

Sl. No.

Price Range

Number

Less than 7Rs

26

7 to 10
10 to 15
15 t023

21
3
0

Above 25

3
4
5

Source: - Field survey

Table 5.2.3 Price range of maximum pen sale

10 to 15; 6%

7 to 10; 42%

Less than 7Rs; 52%

Chart 5.2.3 Price range of maximum pen sales

Findings: - From the above chart it is visualized that 52 of
respondents use pen in less than 7 Rs and 42% uses in the price range
of 7-12
Inference: - Majority of the retailers maximum sell pens in the price
range of less than 7Rs

62

Q 2) Which type of pen you sell the most?

Sl. No.
1
2
3
4

Type of Pen
Ball Pen
Gel Pen
Ink Pen
Premium pen

Number
48
2
0
0

Source: - Field survey

Table 5.2.4 Most selling pen types

Gel Pen; 4%

Ball Pen; 96%

Chart5.2.4 Most selling pen types

Findings: - From the above chart it is visualized that almost 96% of

the respondents say that they sell Ball Pen more.
Inference: - Majority of the retailers sells Ball Pen more than others

63

Q3) Maximum sales under the price range between Rs5-Rs.20 are for
which brand of pens?
Sl. No.
1
2
3
4
5
6
7

Brands
Cello
Lexi
Reynolds
Classmate
Linc
Flair
Others

Number
38
9
3
0
0
0
0

Source: - Field survey

Table 5.2.5 Most selling pen in Rs 5-20 price range

Cello

Lexi

Reynolds

Linc

Flair

Others

Classmate

6%
18%

76%

Chart 5.2.5 Most selling pen in Rs 5-20 price range

Findings: - From the above chart it has been analysed that majority of
the retailers (i.e.) 76% of them sells Cello which is followed by Lexi&
Reynolds by 18% & 6% maximum
Inference:-Most of the retailers have the stock of cello in their store.

64

Q4)-Sales of pens between the ranges of Rs5-Rs.20 is high during which

period of time?
Numb
Sl. No.
Time
er
1
High during exams
15
2
Stable throughout the year
6
3
When new Schemes are introduced
0

School opening time

29

Source: - Field survey

Table 5.2.6 Maximum pen selling season

High during exams; 30%

When new Schemes are introduced
; 58%
Stable throughout the year; 12%

Chart 5.2.6 Maximum pen selling season

Findings: - From the above chart it has been analysed that 58%
retailers pen sale happens during school opening time followed by
exam time by 30% .
Inference:- Majority of the pen sale happens during school opening time

65

Q5)-Please tick the brands of pen you keep in your store

Sl. No.
1
2
3
4
5
6
7
8
9

Name of Brands
Classmate
Reynolds
Cello
Lexi
Linc
Flair
Italia
Lexor
Win

Number
12
42
48
37
10
18
11
8
23

Source: - Field survey

Table 5.2.7 Brands of pen keeping in each store

60
50
40
No of respondents

30
Series 1
20
10
0
Classmate

Cello

Linc

Italia

Win

Brand name

Chart 5.2.7 Brands of pen keeps in each store

Findings: - Among various respondents 48 stores have the stock of
cello pen and 42 have Reynolds in their shop
Inference:- From the above chart it has been analysed that majority of
the stores have the stocks of Cello and Reynolds pens .Lexor and Linc
are the least stocking pens in the stores.

66

Q6)-When people buy pens what among the following options do they
prefer?
Sl. No.

Characteristic

Number

Smoothly writing

28

Grip

Price

Long-Life

Brand Name

13

Looks

Source: - Field survey

Table 5.2.8 Factors influencing buying decision

Brand Name; 26%

Long-Life; 4%
Price; 10%
Grip; 4%

Smoothly writing; 56%

Chart 5.2.8 Factors influencing buying decision

Findings: -56% respondents buying decision are influenced by
smoothly writing and grip influence only 4%

Inference:- It can be concluded that smoothie writing is the most

influencing factor in the buying decision of different consumer
segments is smoothly writing.

67

Q7 ) Retailers influence towards customer in their buying decision?

Sl. No.

Response

Number

High

Average

Low

31

Nil

Source: - Field survey

Table 5.2.9 Retailers influence towards customer in their buying decision

High; 2%
Average; 18%
Nil; 18%

Low; 62%

Chart 5.2.9 Retailers influence towards customer in their buying decision

Findings: - From the above graph that it can be identified that in
most of the consumer buying decision process the influence of sales
people is low. ie .(62%)
Inference:- For most of the consumer buying decision process the
influence of sales people is low

68

Q8) What motivate retailers to push the products more to customers?

Sl. No.
1

Characteristic
High margin

Number
41

Schemes
Quality of
products

Others

3
4

Source: - Field survey

Table 5.2.10 Retailers motivating factors to push the products

Quality of products; 12%

Schemes; 6%

High margin; 82%

Chart 5.2.10 Retailers motivating factors to push the products

Findings: - From the above graph that it can be identified that for 82
% of respondents high margin is the pushing factor for retailers to sell
more.
Inference:- High margin is the main pushing factor for retailers to sell
more.

69

Q9) How often retailers replenish their stocks?

Sl. No.

Time Duration

Number

Every week

Once in two week

27

Once in a month
Others

11
3

1
2
3
4

Source: - Field survey

Table 5.2.11 Types of stock replenishing

Others; 6%
Once in a month; 22%

Every week; 18%

Once in two week; 54%

Chart 5.2.11 Types of stock replenishing

Findings: - From the above graph that it can be identified that most of
(54%) of retailers replenish their stocks once in two weeks and 22% of
respondents replenish once in a month.
Inference:- Most of of retailers replenish their stocks once in two weeks

70

Q10) Do you think buying decision are influenced by In-Shop

advertisements?
Sl. No.

Respon
se

Numbe
r

Yes

23

No

27

1
2

Source: - Field survey

Table 5.2.12 Influence of In-shop advertisements

No; 54%

Yes; 46%

Chart 5.2.12 Influence of In-shop advertisements

Findings: - From the above chart it is analyzed that, only 46% think
that In-shop advertisement has an influence on customer buying
decision.
Inference:- Majority of the respondents dont think that in-shop
advertisement influence consumer buying decision

If Yes, Which influences the most?

Sl. No.

Type

Number

Posters

18

Hoardings

Pen Stands

14
71

Stickers

12

Others

Source: - Field survey

Table 5.2.13 Types of In-shop advertisements

Others; 4%
Stickers; 24%

Pen Stands; 28%

Posters; 36%

Hoardings; 8%

Chart 5.2.13 Types of In-shop advertisements

Findings: - From the chart it can be concluded that for 36 % of
respondents Posters are the influencing in shop advertisement. The next
most influencing is pen stands with 28%. Hoarding & others are the least
influencing among all.
Inference:- Posters are the most influencing in shop advertisement.

72

Q11) For non-brand loyal customers, which brand you suggest most?
Sl.
No.
1

Brand

Number

Classmate

Reynolds

10

Cello

14

Lexi

23

Linc

Flair

Source: - Field survey

Table 5.2.14 Brands suggested for non-brand loyal customers

Linc; 2% Classmate; 4%
Reynolds; 20%
Lexi; 46%
Cello; 28%

Chart 5.2.14 Brands suggested for non-brand loyal customers

Findings: - 46% of retailers suggest Lexi for non-brand loyal customers
while only 4% suggests classmate pen

73

Inference:- For non-brand loyal customers most of retailers suggest Lexi

followed by Cello and Reynolds

Q12) What make you to do so?

Sl. No.
1
2
3
4
5

Characteristic

Number

High margin

43

Schemes

Quality of products

Brand image

Others

Source: - Field survey

Table 5.2.15 Influencing factors of retailers brand suggestion

High margin

Schemes

Brand image

Others

8%

Quality of products

6% 2%

84%

Chart 5.2.15 Influencing factors of retailers brand suggestion

Findings: - From the above chart it is analysed that for 84 % of
respondents high margin is the main reason for suggesting a particular
brand to non-brand loyal customers by the retailers
74

Inference:- High margin is the main reason for suggesting a particular brand
to non-brand loyal customers by the retailers

Q13)Do you have classmate pen in your store?

Sl. No.
1
2

Respo
nse

Numbe
r

Yes

12

No

38

Source: - Field survey

Table 5.2.16 No of stores having classmate pens

Yes; 24%

No; 76%

Chart 5.2.16 No of stores having classmate pens

Findings: - From the chart it can be concluded that 76% of respondents
have classmate pens in their store while 24 % of respondents doesnt
have.
Inference:-Majority of the stores doesnt have classmate pen in their store

If Yes, What makes classmates to sell more?

Sl. No.
1
2
3
4

Characteristic
Improve quality
Better margin
More advertisement
Better availability

Number
1
1
5
6
75

Others

Source: - Field survey

Table 5.2.17 Factors for improving classmates sale

Improve quality; 8%
More advertisement; 50%

Better margin; 42%

Chart 5.2.17 Factors for improving classmates sale

Findings: - From the chart it can be concluded that 50% of retailers think
that better availability will helps classmate to sell more. For 42 % more
advertisement results into better sales.
Inference: - Most of respondents believe that better availability &
advertisement results into better sales

If No, Are you interested to sell classmate pen?

Sl. Respo
No. nse
1
Yes
2
No

Numb
er
32
6

Source: - Field survey

Table 5.2.18 Number of stores interested to sell classmate pen

76

No; 16%

Yes; 84%

Chart 5.2.18 Number of stores interested to sell classmate pen

Findings: - From the chart it can be concluded that 84% of respondents
are classmate interested to sell classmate pens and 16 % of respondents
are not interested.
Inference:-Majority of respondents who are not selling classmate pen are willing to sell
classmate pen

77

CHAPTER 6 FINDINGS &

SUGGESTIONS

78

6.1 FINDINGS
Amongst different types of Pen, Ball pen is preferred by most of the consumers
Cello Brand enjoys the market leader position and it is also preferred by the majority
of the consumers for writing among the different brands of Pen available in the
market.
Among the various price of pens available in the market, between Rs 5-10 price level
is the most popular level.
Most of the consumers are prefer to buy pen from stationary shops.
Smooth writing is the most influencing pen characteristic in the consumer buying
process of pen
TV advertisement is the most influencing media for customers to buy pen.
Though the effect of In-shop advertisement towards customer is minimum, among the
various mediums pen stands influences the most.
Friends are most influencing category of people in consumer buying decision of pen.
Though there is no strong brand loyalty towards any brands, high quality can make
brand loyal customers.
Most of the customers buy more than 10 pen in a year on an average basis
Customers are less inclined to refill their pen because the pen cost is negligibly small

79

 Among the surveyed customers only 39% has used classmate pens.
Maximum sale of pen happens during the school opening time.
High margin is the main pushing factor for retailers to sell more products
Most of the retailers replenish their stocks once in two weeks
Among the surveyed retailers only 24% have classmate pen in their store
In retailers opinion by improving the availability of classmate pen, the sales can be
improved.

6.2. SUGGESTIONS
The Suggestions given are based on the consumer and retailer survey and its analysis and
studying the Companies Own Marketing Mix at ITC Ltd and as per my knowledge regarding
the concerned subject.

Cello Company is regarded as No 1 market leader due to its product verities mainly in
the Price range ranging from Rs 5 20 .In this Low Price Segment where majority of
consumers prefer to buy their pen. At the same price range Classmate have very less
products which can satisfy consumer need. So hereby I suggest that Classmate should
Come up with more products in Effective Price range Of Rs5 20, targeted to
different consumer segments.

The practice of Use and Throw is more visible in consumers, so classmate should
bring some models in below 5 Rs price level.

Company should strongly take care of availability of pens at rural retail outlets.
80

 As Classmate is relatively new to the market consumers are not that much aware
about the product, so company should focus more on promotional activities

Compare to other brands classmates have limited or minimum In-shop advertisement

objects, by increasing this brand awareness can be improved.

From the survey it is clear that different variable/features influence buying decision of
consumer in different segments. Thus Company should not have a common
Positioning for all Target Markets. The companies should try to focus on a target
group by focusing on various characteristics that affect their buying decision
Thus if the Company uses all the above mentioned features for specific target market
and makes the product, fixes the Price and positioned properly and effectively than it
can definitely outperform it competitors in Different Segments.

81

82

CHAPTER 7
CONCLUSIONCONCLUSION
The project entitled A Study of the Consumer Buying Behaviour of Classmate Pen
has helped in studying the various aspects of consumer behaviour especially towards pens.
The study also helped in understanding and analyzing customer satisfaction about services
and products offered to customers. Every player in the pen industry is trying to cover more
market share than the other. So the company must be more alert providing high quality
service and awareness to customers.
The researcher hope the company will find his findings relevant and sincerely hope it
uses his suggestions enlisted, which he hopes will take them miles ahead of competition. In
short, the researcher would like to say that the very act of the concerned management at ITC
Ltd in giving him the job of critically examining consumer buying behaviour towards pen of
the company.

83

BIBLIOGRAPHY
ITC India Ltd -Annual Report (2012).
Kothari, C.R.( 1982). Research methodology. New Delhi: Tata McGraw-Hill Ltd.
Das ,Bhagaban& Das ,Debadutta (2006) .Consumer Buying Behaviour In India: New
Delhi: Tata McGraw-Hill Ltd
Solomon,R,Michael(2010). Consumer Behaviour - Buying, Having, And Being,
Prentice Hall PTR
Ali ,S.S,. Thakur,A.K,.Madhavan,K,.Palat(2009)-Models in Consumer Buying
Behaviour. Deep & Deep Publication

WEB SITE
http://www.itcportal.com/about-itc/shareholder-value/annual-reports/itc-annualreport-2013/content.aspx ( June,2013)
http://www.citehr.com/29099-hr-issues-retailing-business-plan.html (June,2013)
http://www.scribd.com/doc/82186216/Indian-Pen-Industry-Project (n.d)

84

APPENDIX

85

Consumer Buying Behaviour Questionnaire

Name

-----------------------------

Age Group:
(a ) 15-20 [ ]
(d) 35-50

(b)20-25 [

[ ]

(c) 25-35 [

(e) Above 50 [ ]

Place______________________
Occupation:
Student [

Business Person [

Regular Employee [

Others [ ] _____________

Q 1). Which type of Pen do you currently use?

a)

Ball Pen [

b)

Gel Pen [ ]

c)

Ink Pen [

d)

Premium pen [ ]

Q 2). Which Brand Of Ball Pen do prefer to write?

a) Classmate[
d) Lexi[

b) Reynolds

e) Linc [

c)

Cello[

f) Italia [

g) others____________
Q 3). What is the price range in which you generally used to buy a pen?
( a) Below Rs 5

(b) Between Rs 5-Rs 10 [

(c) Between Rs 10-Rs 15 [

(d) Above 20[

(d) Between Rs 15-Rs 20 [ ]

Q 4).From where do you prefer to buy pen?

(a) Stationary shops [

(b) Super market [

(c) Shopping malls [ ]

(d) Others____________

Q 5). Which Characteristics of Pen Influence your Buying Decision?

a )Smoothly writing [
d)Long-Life

b)Grip[

c) Price[

e)Brand Name [

Q 6). Which Advertising Media Influences You The Most?

a)

TV Advertisements[

b)

c)

Newspapers &Magazines[

]d)

Banners & hoarding[

Internet[

Q 7). Is your buying decision influence In-Shop advertisements?

a)

Yes [ ]

b)

No[

If Yes, Which influences the most?

a)Posters [

] b) Hoardings[

]c)Pen Stands[
86

] d)Stickers

Others__________________
Q 8). Who influence your buying decision most?
a

Parents[

] b)friends[

] c) colleagues[

] d)sales person[

] e) others [

Q 9). Do You Choose Only One Brand?

a)

Yes [ ]

b)

No[

If Yes, Which brand?

a) Classmate[
d) Lexi[

b) Reynolds

e) Linc [

c)

f) Italia [

Cello[

Q10) Why do you purchase the same brand?

a) High Quality[

d)Value for money[

b) Brand Image[
]

] c) Easy Availability [

e)others____________

Q 11).Rank the brands of pens according to your preference from 1-5?

Classmates[

] Cello[

], Reynolds[

], Lexi[

], Linc[

], Italia[

Q 12) Number of pen usually buy in a year?

a)less than 2[

] b) 2-5 [

] c)5-10 [

] d)more than 10[

Q 13). Do You Refill Your Pen regularly?

a)

Yes

b)

No

If No, Why
a)

Pen Cost Is Negligible

b)

Replacement results into Poor

Refill Is Unavailable d)

Specify If Others,______________

Performance
c)

Q14) Have you purchased classmate pen?

a)

Yes [ ]

b)

No[

87

Retailers Questionnaire
Name of the store: ___________________________
Location:_______________________________
Contact No:_____________________________
Type of store
a) Stationary store [
d) Malls [

] b) Department store[

] c) Supermarket [

e) others______________

Average monthly Sales:

a) less than 1 lakh[
d) 5-10lakh[

b)1-3lakh [

] c)3-5lakh [

e) above 10 lakhs[

Q1) In which price range you sell maximum pens?

a) Less than 7Rs[
d)15-25 [

b)7-10 [

] e)Above 25[

] c)10-15[

Q 2) Which type of pen you sell the most?

a)

Ball Pen [

b)

Gel Pen [ ]

c)

Ink Pen [

d)

Premium pen [ ]

Q3) Maximum sales under the price range between Rs5-Rs.20 are for which brand of pens?
(Rank in order of sales)
(a) Classmate [
(c) Cello[

(b) Reynolds[

] (d) Lexi [

(g) Others[

]
e)Linc [

f)Flair[

] (please specify)___________

Q4)-Sales of pens between the ranges of Rs5-Rs.20 is high during which period of time?
(a) High during exams [

] (b) Stable throughout the year [

Schemes are introduced[

]. (d) School opening time[

] (c) When new

Q5)-Please tick the brands of pen you keep in your store

a) Classmate [
e) Linc [

] b) Reynolds[

f)Flair[

c) Cello[

g) Italia[

] d) Lexi [

h)Lexor [

i)Win[

Q6)-When people buy pens what among the following options do they prefer?
a )Smoothly writing [
d)Long-Life

b)Grip[

c)Price[

e)Brand Name [

d)Looks[

Q7 ) Your influence towards customer in their buying decision?

a)High

b)Average

c)Low

d)Nil

Q8) What motivate you to push the products more to customers?

a

High margin [

b)Schemes[

c)Quality of products [
88

d) Others__________
Q9) How often you replenish your stocks?
a)every week[

b)once in two week[

c) once in a month [

d)more_________
Q10)Do you think buying decision are influenced by In-Shop advertisements?
a)

Yes [ ]

b)

No[

If Yes, Which influences the most?

a)Posters [

] b) Hoardings[

]c)Pen Stands[

] d)Stickers

Others__________________
Q11) For non-brand loyal customers, which brand you suggest most?
a) Classmate [
(c) Cello[

(b) Reynolds[

] (d) Lexi [

]
e)Linc [

f)Flair[

Q12) What make you to do so?

a)High margin[
d)Brand image [

b)Schemes[
]

others[

c)Quality of products[

____________

Q13)Do you have classmate pen in your store?

a)

Yes [ ]

b)

No[

If Yes
What makes classmates to sell more?
a) Improve quality b) better margin c) more advertisement
d) Better availability e) others_____________
If No
Are you interested to sell classmate pen?
a)

Yes [ ]

b)

No[

89

PORTFOLIO MIX OF CLASSMATE PEN AND ITS COMPETIOTORS

1 CLASSMATE
Type
Ball Pen

Gel Pen

Premium
Pens

Model
B First
B Qwick
B Neat
B Speed
B Fine
B Positive
Octo Flo
UVO
Radeon
Crypton
Genghis
Geloneat
Gelo Fun
Gelowiz
Octane
Attila
Deimos
Galactic
Trojan
Beethoven
Archimed
es
Chopin

2)

CELLO

TYPE
Ball Pen

MODEL
Jolly
Faster
Nice
Trimate
Uno
Easy Write
Tip Top
Delta
Nova
Crown
Retra Fashion

Price
5
5
5
5
6
9
10
10
10
10
15
5
5
5
10
15
20
20
25
90
130
150

PRICE
3
5
5
5
5
5
5
5
5
5
5
90

Teenz
Quick
Merit-GL
Speed
Swift
Finegrip
Zippy Ball
Gripper
Technotip
Point 5
Maxwriter
pin point
Technotip XS
Super Fine
Melody
Glider XS
Colour Joy
Soft Feel
Flow Mate
Superglide DX
Butterflow
Top Ball Click
Soft Write
X-Presso
Spectra
Aero Piont
2X
Maxriter XS
Pinpoint XS
Liquiball
Topball
Fun Glitter
Pepersoft
Power Ball
Jotdot
Steel-O
Paper soft premier
Zero pressure
X-Caliber
Power Max
Power Metal
5X
Cutie Gel
Saphire
Bold Writer
Benz

5
5
5
5
5
6.5
7.5
7.5
8
8
9
9
9
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
10
15
15
15
15
20
20
20
20
20
25
25
30
30
35
91

Gel pen

Roller
Pen

Metal
Pens

Jetset
Duke

45
49

Rs 5/ Gel pen
My Gel
Class Gel
Bunny
Magna
Liquiball
Wow
Butter Gel
Flo Gel
Zoom Colour Gel
Colour Mate
I-Zone
Jingle
Pin
Trendy
Melody
Glide
Pointec Gel
Accutek
Sign Roller
Jelflow
Aviator
Express
R Gel
X-Pert Gel

5
5
5
5
5
6
6
10
10
10
10
10
10
10
10
10
10
15
15
25
25
25
30
30
35

Rolly
Benz

40
55

4 colour
Arion
Smart Jet
Black Jack Gold
Benz
Jetset
Sky Writer
Jet Ace
Enigma Classic
Accugrip
Fire
Prime

30
30
30
35
40
40
49
49
49
55
75
75
92

Venice
Executive

3)

TYPE
Ball Pen

REYNOLDS

MODEL
Champ
Brite
Buero 040
Bold
Fusion
Fusion Bold
045 fine carbure
Eurolism
Officerite
045 Student
Energi
Zetpoint
Liquiflo
Electro
Liquiflo Student

Retractabl
e
Ezio Pen
Jetter regular
Revo
Jetter Grip
JetterAerosoft
Jetter Designer
Jetter Aviator
Jetter Youth
Jetter Glitz
Jetter Metallica
Jetter Chroma- DX
Jetter Aviator -MX
Trimax
JetterMetalica FX
Premier Gold
JetterNumatic
Premier
Gel Pen

75
75

Mera Gel

PRIC
E
5
5
5
5
5
5
6
6
6
6.5
8
10
10
10
10
10
15
15
15
20
20
20
20
20
25
25
30
35
40
50
60
90
5
93

Jeffi Gel
Mera Gel I
Mera Gel II
Razor Active
Razor Gel I&II
Force Gel
Eterno Gel
V-Max Gel
Trimax

4)
TYP
E
Ball
Pen

Uni
Ball

Gel
Pen

5
6
6
10
10
10
15
20
35

LINC
MODEL
Glycer
Thrill
Retract
Crazy
Smart
Executive
Ball
Glitter
Meeting
Seramic
Joy
Classic
Class
Swift
Signature
Gold
Jestry
101
Uni Ball
Uni 120
Linc 070
Linc 070
gel
Ocean

PRIC
E
5
5
5
5
5
10
10
15
25
35
35
40
70
85
20
25
25
5
6
6

5)CLARO PEN

94

NOVA
SWIFT
GENIUS
BRIO
COOL
LUCKY
X CEL
SONIC
C-999
BIG BENN 100
C-100
ROCK 200
SMOOTHFLO

Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen

Price Per
Piece
MRP.
3
3
5
5
5
5
6
6
6
7
7
10

Ball Pen

10

ANGEL
ARIA
ULTIMA(NEW)
IVY(NEW)
JAZZ(NEW)
VISION
CR-54
CL-108
IRIS
DURO
BOSS
CR-45
CL-333
RICO
EXPERT(NEW)
CENTURY(NE

Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen
Ball Pen

10
10
10
10
10
10
10
10
10
15
15
15
15
15
90

Ball Pen

110

Ball Pen

130

Ball Pen

150

Gel Pen

Gel Pen
Gel Pen
Gel Pen
Gel Pen

5
5
5
5

Name of the Product

W)
SOLITAIRE(NE
W)
ACCENT(NEW)

LUCKY
7(NEW)
RIO
TEEN
MASTER
SX-5

Ball Pen/
Gel Pen.

95

MACK
CHAMP
SONIC
CG-999
CG-109
HONEY
SUPER HERO
FUN(NEW)
FUNK(NEW)
MILTON 10X
SIGMA
CG-110
ELITE
JETTA(NEW)
SIGMA
ANGEL
ROCK 200
IRIS
REVA(NEW)
BOSS

6)

FLAIR

TYPE
Ball
Pen

MODEL
FX
Max
FX Dark
Easy Click
Jackpot
Marathon
Striker
Liqui touch

Gel Pen
Gel Pen
Gel Pen
Gel Pen
Gel Pen
Gel pen
Gel Pen
Gel Pen
Gel Pen
Gel Pen
Gel Pen
Gel pen
Gel Pen
Ball +Gel
Pen
Ball +Gel
Pen
Ball +Gel
Pen
Ball +Gel
Pen
Ball +Gel
Pen
Retractabl
e +Ball
Pen
Ball +Gel
Pen

5
5
6
6
10
10
10
10
10
10
10
15
20
15
25
25
25
25
30
35

PRICE
5
5
5
5
5
10
10
10

96

Ion
Digital
Sunn(4 color)
High way
Spectrum
Gel Pen

10
15
20
40
70

Hydra

Phinix
Matrix
Fashion Gel
Glitter

5
10
10
10

WIN
Bee Gel
Guide
Titium
Olivia
Dezire

ITALIA
5
10
30
40
40

Trivo
Club Gel
Petra
Stella
Weather Flow
Tivoli
Docker Safari
Revo

LEXI

ROTOMAC

Ball Pen

Maxima
Boss Gel
Forever

Get speed
5N
Fine
Point

5
5

3
5
5
5
10
10
30
125

5
5
12

10

MONTE
X
Mega Top

97

10