INTRODUCTION

 The study of consumer behavior 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 behavior 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.
OBJECTIVES OF THE STUDY

 To conduct a comprehensive study on ITC CLASSMATE PENS in the

context of consumer buying Behaviour.

 To study and analyse purchases and consumption pattern of pens by

the consumers.

 To appraise key factors which mostly influence the consumers to

buy pens.

 To critically analyse the marketing strategies used by ITC for

promoting the sales of classmate pens against other competitors.
HYPOTHESIS

 The research hypothesis of this study is as follows.

Ho :The growth in market share of ITC Classmate pens is

comparatively more than its competing brands in the
context of study site COLABA, Mumbai.
MARKET AND MARKET
INFORMATION (IN DETAILS)
 The worldwide market size for writing industry is Rs
100000 Crores (p.a),where USA’s 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 India’s 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
MARKET BREAK-UP
It is a quasi-fashion
statement something
that’s aligns with the
personality, still the
pen purchase decision
is considered as low
involvement decision.
 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.
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.
ITC’s Product Mix

 Cigarettes
 FMCG Foods
 Lifestyle Retailing
 Personal Care
 Education & Stationary products
 Safety Matches
 Hotels
 Packaging
ITC CLASSMATE

 ITC made its entry into the stationery business in the

year 2002 .
 ITC’s stationery Brands are marketed as “Classmate”
and “Paperkraft”, with Classmate addressing the needs
of students and Paper kraft targeted towards college
students and executives.
 Classmate - India’s truly largest National brand,
reaching 65,000 outlets across the country,
 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.
CLASSMATE PENS

 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.
RESEARCH DESIGN

 Research Approach: Exploratory study is done for the

study of consumer buying Behavior.

 Time Dimension: The study was done using Cross

Sectional method(As the Study is done only once in the
pre specified period of 5 weeks in months of November-
December. longitudinal study was not possible).
SAMPLING PLANS

 Description of Population/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
Colaba, Mumbai.
 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 consumer’s survey and 50 for retailer’s
survey
Sampling technique

 Here the researcher used probability sampling method.ie

stratified sampling is used for consumers (when
subpopulations within an overall population vary, it is
advantageous to sample each subpopulation (stratum)
independently. Stratification is the process of dividing
members of the population into homogeneous subgroups
before sampling. The strata should be mutually exclusive:
every element in the population must be assigned to only
one stratum. The strata should also be collectively
exhaustive: no population element can be excluded.
Then simple random sampling or systematic sampling is
applied within each stratum. )
and non-probability convenience method for the retailer’s
as the sampling technique.
Method of Data Collection

 Primary Data: The researcher has collected primary

data using structured questionnaire and personal
interviews with selective respondents.
 Secondary data: It was collected from the ITC
company magazines, websites, and other such sources.
Instrumentation

 Research Instrument: Structured Non-Disguised

Questionnaire is the research instrument used here. The
researcher has effectively used close ended questions.

 Administration: This was done using self-administered

questionnaire conducted through face to face
communication.
DATA PRESENTATION

The data are presented through charts, graphs and tables.

 TABLES: A univariate table were used to project the
data.
 GRAPHS: Graphical representation of data was through-
Pie chart, Column graphs ,Bar graphs.
STATISTICAL TOOLS USED

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

Number of
Respondents
Percentage of Respondent = *100
Total Respondent

 CO-RELATION ANALYSIS was used to prove the

hypothesis of the project.
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

 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 retailer’s opinion by improving the availability of classmate pen, the
sales can be improved.

 On applying our findings to our 100 consumer in the survey, price

satisfaction were correlated with overall satisfaction scores, r=0.19, which
is considered as smaller effect, Hence Null Hypothesis is accepted in total.
RECOMMENDATIONS
 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 Rs 5 – 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.
 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
SCOPE FOR FUTURE RESEARCH
The factors that influence the consumer may change with change in time

because the needs of consumer may vary with change in time. So continuous

monitoring and close observation of factors that motivate the consumer is

necessary to maintain a competent workforce. Only with a competent work

force an organization can achieve its objective. Moreover, marketing

department is the most valuable asset to any organization. A further study

with in department analysis to know to what extent these factors motivate

the consumers is required.

BIBLIOGRAPHY &
WEBLIOGRAPHY
BIBLIOGRAPHY
WEBLIOGRAPHY
ITC India Ltd -Annual
 http://www.itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-
report-2013/content.aspx ( June,2013)


Report (2012). 


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”)

 http://informahealthcare.com/doi/abs/10.1080/01421590020031066

 Kothari, C.R.( 1982).

Research methodology.
New Delhi: Tata Mc
Graw-Hill Ltd.

 Das ,Bhagaban & Das

,Debadutta (2006)
.Consumer Buying
Behavior In India: New
Delhi: Tata Mc Graw-Hill
Ltd.
APPENDIX
QUESTIONNANIRE

I have undertaken a project on A STUDY OF THE

CONSUMER BUYING BEHAVIOR OF ITC
CLASSMATE PEN. The information provided by
you in response to this questionnaire will be
effectively used for developing this study and
will help in a significant manner for my personal
appraisal at ITC. The data will be kept
confidential and will be used for academic
purpose only.
 Consumer Buying Behavior Questionnaire

Name -----------------------------

Age Group:

(a ) 15-20 [ ] (b)20-25 [ ] (c) 25-35 [ ]

(d) 35-50 [ ] (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[ ] b) Reynolds [ ] c) Cello[ ]

d) Lexi[ ] e) Linc [ ] 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) Between Rs 15-Rs 20 [ ]

(d) Above 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 [ ] b)Grip[ ] c) Price[ ]

d)Long-Life [ ] e)Brand Name [ ]

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

a) TV Advertisements[ ] b) Banners & hoarding[ ]

c) Newspapers & Magazines[ ] d) 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[ ] d)Stickers

Others__________________

 Q 8). Who influence your buying decision most?

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[ ] b) Reynolds [ ] c) Cello[ ]

d) Lexi[ ] e) Linc [ ] f) Italia [ ]

 Q10) Why do you purchase the same brand?
a) High Quality[ ] b) Brand Image[ ] c) Easy Availability [ ]
d)Value for money[ ] 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
Performance
c)Refill Is Unavailable
d) Specify If Others,______________

 Q14) Have you purchased classmate pen?

a) Yes [ ] b) No[ ]
 Retailers Questionnaire
Name of the store: ___________________________
Location:_______________________________
Contact No:_____________________________
 Type of store
a) Stationary store [ ] b) Department store[ ] c) Supermarket [ ]
d) Malls [ ] e) others______________
 Average monthly Sales:
a) less than 1 lakh[ ] b)1-3lakh [ ] c)3-5lakh [ ]
d) 5-10lakh[ ] e) above 10 lakhs[ ]
 Q1) In which price range you sell maximum pens?
a) Less than 7Rs[ ] b)7-10 [ ] c)10-15[ ]
d)15-25 [ ] e)Above 25[ ]
 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 [ ] (b) Reynolds[ ]
(c) Cello[ ] (d) Lexi [ ] e)Linc [ ] f)Flair[ ]
(g) Others[ ] (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 [ ] (c) When new
Schemes are introduced[ ]. (d) School opening time[ ]

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

a) Classmate [ ] b) Reynolds[ ] c) Cello[ ] d) Lexi [ ]
e) Linc [ ] f)Flair[ ] g) Italia[ ] h)Lexor [ ] i)Win[ ]
 Q6)-When people buy pens what among the following options do they
prefer?
a )Smoothly writing [ ] b)Grip[ ] c)Price[ ]
d)Long-Life[ ] e)Brand Name [ ] f)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?
High margin [ ] b)Schemes[ ] c)Quality of products [ ]
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 [ ] (b) Reynolds[ ]
(c) Cello[ ] (d) Lexi [ ] e)Linc [ ] f)Flair[ ]
 Q12) What make you to do so?
a)High margin[ ] b)Schemes[ ] c)Quality of products[ ]
d)Brand image [ ] others[ ] ____________
 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