Brand Management

Reynolds Pens
Submitted To : - Prof. Rajeev Kamble

Submitted By : -Anurag Anand (2010043)

Contents

Positioning .............................................................................................. 4 Distribution ............................................................................................. 5 Product lines ........................................................................................... 6 Reynolds-SWOT Analysis ......................................................................... 7 Winning Strategies .................................................................................. 8 Conclusion and Recommendations ......................................................... 8 Bibliography .......................................................................................... 11

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G.M.Pens International Pvt. Ltd. is the exclusive licensee of Reynolds, France in India and the SAARC countries. Headquartered in Chennai, G.M.Pens has pioneered the writing instruments revolution in the Indian market. Commencing operations in 1986, G.M.Pens brought international quality writing instruments that were value for money, marketed under the brand name Reynolds. It was also the first company to build a brand in a category that behaved more like a commodity till then. Over a period of 18 years, G.M.Pens has invested substantially in building up a large manufacturing base with facilities in Chennai and Pondicherry. Reynolds pens have supported generations of students through their studies. A global brand, Reynolds is part of a $7 billion, Fortune 500 group called Newell Rubbermaid. The Reynolds range extends from writing instruments to gift sets and art material today. Available at arms length in India through a wide distribution network, Reynolds is also present in high footfall shopping areas through it's retail venture Write Site.. A state of the art R&D facility, one of the most sophisticated in the Reynolds family worldwide, ensures that the latest in writing technology is available to the Indian consumers. G.M.Pens offers the widest range of writing instruments and accessories in the Indian market. A variety of writing instruments including ball pens, gel pens, fountain pens, mechanical pencils, markers, handy boards and children’s' coloring pens etc that cater to consumers from the age group of six to sixty are marketed under the brand name Reynolds. A continuous focus on consistent quality and a constant Endeavour to provide quality products at affordable prices have ensured that Reynolds has been the numero uno in the Indian writing instruments market. A substantial investment has also been made in establishing the Reynolds brand name through the mass media of TV and press in an effort to convert the category from a commodity to a brand dominated one. In a short period of 20 years the company has grown from strength to strength and has changed the very way writing instruments are perceived in India. G.M.Pens has invested substantially in building up a large manufacturing base with facilities in Chennai and Pondicherry. A state of the art R&D facility in Chennai, one of the most sophisticated in the
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Reynolds family worldwide, ensures that the latest in writing technology is available to the Indian consumers.

G.M.Pens offers the widest range of writing instruments and accessories in the Indian market. A variety of writing instruments including ball pens, gel pens, fountain pens, mechanical pencils, markers, handy boards, children coloring pens etc, that cater to consumers from the age group of six to sixty are marketed under the brand name Reynolds. A continuous focus on consistent quality and a constant endeavour to provide quality products at affordable prices have ensured that Reynolds has been the numero uno in the Indian writing instruments market. A substantial investment has also been made in establishing the Reynolds brand name through the mass media of TV and press in an effort to convert the category from a commodity to a brand dominated segment.

Positioning
At the time of launch, Reynolds pens were much expensive (around 2.5 times) then the competitors products at that time. The offerings which were in the un organized sector were of poor quality. Reynolds used the skimming price strategy and became a successful brand. Besides, Reynolds also had a sturdy product casing ( apart from a good, uniform flow of ink which ensured easy writing). Reynolds at that time capitalized on quality, which made consumers buy the product even at premium price, as they perceived it is reliable brand. Its advertisements created awareness but the association came from ‘price quality’ perception in that of pen market. Reynolds achieved scientific pricing by working on the technology, in the context of how much those products would cost if imported.

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Later on Reynolds targeted young generation through its romance ads . the young crowd which are largest users of pen in India were selected as target customer , and extensive product range was launched catering to their requirement, Currently Reynolds use Sachin Tendulkar as their brand Ambassador to help connect better with India’s younger crowd. Also the brand is now perceived to consist of cheap but high quality products

Distribution
The company's products are available in 3,00,000 retail outlets across India covered through a network of 2500 redistribution stockists and 27 main stockists. This is facilitated by a sales and marketing team of over 300 professionals. Write Site Write Site, a novel concept in retailing, is an exclusive showroom for writing instruments. It showcases a range of global products from Sanford and Reynolds, in a smart yet easy ambience. Get to touch, feel and choose from a wide range of products in a relaxed and trendy atmosphere. We have products for all ages, ranging from five rupees to five thousand rupees at our showrooms in Chennai, Guntur, Hyderabad, Noida, Gurgaon, Indore and Ahmedabad. But we are going national with a vengeance. Currently there are around 19 write sites located pan india

A team of experienced professionals lead the organization in various functional areas of manufacturing, marketing, sales, commercial, finance, human resources and EDP. An atmosphere that encourages learning and rewards superior performance has been the hallmark of the organization.

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The company has also been instrumental in establishing the Reynolds brand name in the neighbouring markets of Bangladesh, Maldives and Nepal. Various products of the company are also exported to markets like Australia, Middle East and even to Reynolds, France Reynolds marketed under G.M. Pens India is currently a market leader in markers. However, Reynolds stands second to Cello India in ball pen and gel pen category.

Product lines

Our product portfolio has grown from a single product in 1986 to 150 shop keeping units (SKUs). G M Pens manufactures and markets more than a million pens a day, in addition to various other instruments such as markers and colouring products. Reynolds current product lines extend to the following:

1) Ball pens 2) Gel pens 3) Gifts (Pen-set) 4) Retractable pen 5) Specialty pen 6) Pencil, eraser and sharpener 7) Coloring 8) Registers

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Reynolds-SWOT Analysis

Reynolds has now become synonymous with pen in India. The distribution network and its strategic pricing as well as the product mix have given it a competitive advantage. However, Reynolds is losing its strategic position because of the entrants of new players in the market.

Strengths:

 Well-established distribution network extending to rural market  Strong brands in portfolio  Diversified in the related line category  Exclusive showroom ‘Write site’

Weaknesses:  Low exports as China provides better substitutes  Most of the domestic players have strategic alliances with global players  Low price margins  Low on product innovations  Fierce competition from domestic and international players

Opportunities:  Large untapped domestic market  Leverage of ‘Write Site’ to increase urban area sales

Threats:  Imports from China affecting the domestic market
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 New entrants placing competitive products at competitive price  No Brand loyalty in pen industry  Ease of duplicity  Slowdown in urban demand due to increased competition

Winning Strategies

Wide Distribution Network: - Reynolds has set up 3,00,000 retail outlets across India covered through a network of 2500 redistribution stockists and 27 main stockists. This is facilitated by a sales and marketing team of over 300 professionals.

Competitive Pricing Strategy: - Reynolds sell over 10 lakh pens a day and their range starts from Rs 5 to Rs 500 . With such a extensive product line , foreign market players, especially from china would find it difficult to penetrate the market

R&D :- Reynolds got one of the most sophisticated research and development facilities which ensures their edge over writing technology .

Write site : Reynolds with write site would be present in most of the malls that are springing up all over the country. As they franchising write sites, it will make them grow much faster giving Reynolds great visibility

Conclusion and Recommendations

Reynolds revolutionary Reynolds 045 was once a market leader in the pen industry. However, the pen industry has got very competitive over the period of time and Reynolds has lost its top notch position. 1) Brand loyalty plays very little role in Pen industry For high end pen, the brand loyalty does exist. Reynolds has never ventured in the luxury pen category. There are strong international players like Parker, Mont Blanc, Piere Cardin, Waterman, who are already in a price war and market capturing.
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Considering Reynolds India low key position and brand image, venturing in this domain would not be much profitable. Although margins are high but initial investment, marketing and endorsement will require a seed of money. In domestic low-priced category brand loyalty does not exist. A consumer is equally likely to buy a Cello, Linc or Lexi instead of Reynolds. Similar quality and price are the key reasons beyond this rationale. Thus, introducing one more product in the same line will add to the clutter in the market. 2) Ease of duplication The design and quality are easily duplicated in this low margin pen industry. Chinese players have competitive advantage over Reynolds in making a low priced pen. Reynolds 045 is already being made by three companies. The sub-urban consumer is indifferent about these varieties. We believe any other pen launched will face this threat even if it could gather a position in consumers mind. 3) Low export Again the Chinese players have an advantage as China is the preferred off shoring destination for world pen requirement. China has done Rs. 5000 Cr. exports in 2006 with India having a Rs. 200 Cr. Exports. Clearly an international demand is unlikely for a low priced pen. A high end pen might create some demand in the international market but will face stiff competition from existing players.

Recommendations

 Through TVs and FM Radios: The existing “dependable” brand image should reinforced through TV Ads, which help them properly utilize Sachin Tendulkar brand value . Since many youngsters consider him as their idol, it will create emotional bond between them and Reynolds/
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 Wrappers: “Wrappers on notebooks (like brown sheets)” is a compulsory for children. Parents feel it very difficult to wrap the bundle of notebooks at a stretch. Reynolds can take advantage of this and provide wrappers to the note book for free of cost or at a very cheaper price.

 Campaigning: Corporate schools have minimum strength of 1000 students per school. This could be an ideal place for promoting the brand. Reynolds can make students participate in some competitions and can give away some discount coupons. The discount formula always drags the people to the stores where Reynolds can capture up on this.

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Bibliography

 http://www.reynolds-india.com  Consumer Behaviour And Branding: Concepts, Readings And Cases-The Indian Context By S. Ramesh Kumar  Consumer Behaviour: Insights From Indian Market By Majumdar  http://www.reynolds-india.com/reynolds/corporate  http://www.evri.com/person/pen-reynolds-0x15e5c1  http://in.nielsen.com/news/20060912.shtml  http://timesofindia.indiatimes.com/city/bangalore/Pen-market-Writing-a-newchapter/articleshow/539732.cms  http://www.dessenceconsulting.com/pdf/pen%20industry.pdf  http://www.reynolds-india.com/reynolds/product/pen

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