Professional Documents
Culture Documents
CLASSMATE
Group
33
Strengths
Threats
ITCs Brand Image Established brands Robust distribution Emergence of lower priced local brands network
Products
Natraj
Weaknesses
Opportunities
Educational Lack of brand industry fast awareness growing industry Lack of Connect (18%) in India among customers ITCs rural presence
Classmate, 30%
2013
Natraj, 12%
Navneet, 20%
2003 Addition of new products such as pens, pencils, geometry boxes etc. 100 Crore turnover in 2006 Largest notebook brand in the country 4Ps
Around 700 Crores turnover Around 65000 outlets New notebook brands such as Classmate Stripes aimed at Youth
Group
Situation Analysis
Brand Launched with the notebooks category 30 Crore turnover in the first year Segmentation and Brand Positioning Target Markets
33
Problems & Challenges Recommendations
It is expected that Stationery industry has a flourishing future in it's coming years in India and over a period is estimated to grow at 10 to 15% p.a.
C O L L A B O R A T O R
Primary Research & Customer Behavior
Classmate has 900 distributors who make the products available in over 70,000 outlets in India. Classmate Ideas for India challenge plans to reach out to 2.5 million students across 30 cities, 500 schools and 200 colleges across the country.
Group
33
Situation Analysis Segmentation and Target Markets Brand Positioning 4Ps Problems & Challenges Recommendations
Key Findings
80% of the respondents do not stick to the same brand while buying
different products of stationery
60% of the respondents prefer bulk purchase of stationery Most of the respondents, especially school students ( 75% )discuss about
the various brands of stationery they use and among friends and take inputs Most important factor that influences the purchase decision
18
44
24%
Notebooks
21% 26%
31% 24%
Pens
62%
Inputs were taken from Stationery store keepers, Sales staff in retail stores etc. Students from different geographiesMumbai, Bangalore, Kolkata and Lucknow were covered
Primary Research & Customer Behavior
12% 2%
Brand Brand Visibilty in Price Satisfaction Satisfaction the store from from previous use previous use *24% of the respondents consider brand as the most important factor while purchasing a notebook Visibilty in the store Price Brand Positioning 4Ps Problems & Challenges
Group
33
Situation Analysis
Recommendations
Pens
Class Mate,
31%
Navneet, 10%
60%
Classmates quality and aesthetics rated the best Higher preference among college students
Cello Grip is registered in consumer minds 35% of the respondents not aware of Classmate pens Classmate has the lowest shelf space in most of the stores
Colors/Crayons/Paints
Faber Castell, 36% Camlin, 12%
Camlins brand image built over a long Others, time. 2% Students parents relate to Camlin more on comparison with other brands Faber Classmate brand is really young in this Castell , category 33%
Classmate , 12%
Camlin, 52%
Group
33
Situation Analysis Primary Research & Customer Behavior Segmentation and Target Markets Brand Positioning 4Ps Problems & Challenges Recommendations
Segmentation
Tier I & Tier II Cities Age
Life Stage
0-6yrs
Pre School/Elementary School Goers New consumer Attracted by colorful exterior Functionality not a priority Single purchases Medium Usage Primarily Parents Wooden Pencils, notebooks, Erasers, Sharpener, Crayons
6-12yrs
Junior School Goers
13-23yrs
Secondary School/ College Students Dreamers Career oriented Noticing the opposite sex Functional & aesthetics important Bulk purchases Heavy Usage Self
24-49yrs
Working Professionals Low involvement consumers Functional Buyer Prefer premium brands Single purchases Medium to Light Usage Self
=50yrs
Old Adults/Retired Individuals Low Involvement purchasers Non experimental Highly Functional Sparse single purchase Light Usage Self Pens, notebooks
High involvement purchasers Experimental High Peer influence Aesthetics important Hedonists Bulk purchases Heavy Usage Self; Parents Pencils, Pen, Erasers, Scale, Notebooks Sharpener, Geometry Case, Paints
Influencers; Purchasers
Pencils, Pens, Pens, Notebooks Erasers, Scale, especially spiral Notebooks bound Sharpeners, Geometry Case, Paints
4Ps Problems & Challenges
Group
33
Recommendations
Situation Analysis
Brand Positioning
Target Markets
ClassMates Target Segment 6-12yrs
Junior School Goers
13-23yrs
Secondary School and College students
High involvement purchasers Experimental High Peer influence Aesthetics important Hedonists Bulk purchases Heavy Usage
Dreamers Career oriented Noticing the opposite sex Functional & aesthetics important Bulk purchases Heavy Usage
Products superior in terms of quality Notebooks particularly well designed Emphasis on aesthetic appeal Social Awareness
Situation Analysis Primary Research & Customer Behavior Segmentation and Target Markets Brand Positioning 4Ps Problems & Challenges Recommendations
Group
33
Functional benefit
Products for every student need
Emotional benefit
Excitement and fun of discovering and nurturing ones talents
Value
Confidence and uniqueness in every student
Positioning Statement
For all students Classmate is a complete stationery needs provider that helps bring out his/her unique creative potential Because it comprises of quality writing and painting instruments to suit all purposes.
4Ps Problems & Challenges
Group
33
Recommendations
Brand Positioning
Product- Mix
PRODUCT WIDTH
Classmate Notebooks
Stripes 190 x 155 mm Hard Co 190 x 155 mm Soft Cover 210 x 170 mm soft cover s x 170 mm 210 Hard Cover Drawing Books Graph Books Scrap Books Pocket Memo
Classmate Pencils
Rubber Tipped Pencil 2B Trilobe Pencils Carbon Black Pencils HB Jet Black pencils HB Bounded length pencils
Precision Instruments
Geometry Box Scales
LINE 3
LINE 5
LINE 1
LINE 2
LINE 4
LINE 6
33
4Ps Problems & Challenges Recommendations
Situation Analysis
Brand Positioning
Product levels
Potential Product: Stationery bundle Augmented Products: Graph Book, Scrap Books, Geometry Box Expected Products: Pen, Pencils
Group
33
Situation Analysis Primary Research & Customer Behavior Segmentation and Target Markets Brand Positioning 4Ps Problems & Challenges Recommendations
Distribution Strategy- Highlights The company follows an Intensive distribution model The channel design of the product is the Push strategy. The channel design is the Vertical Marketing Systems where the product is marketed under the classmate brand. The company is using 2 Level channel strategy. The packaging of the product gives the product a quality and in terms of look and feel
Group
scale manufacturers, Focus on delivery and quality capabilities. Paper and recycled board are sourced from ITCs Units, which use pulp sourced from renewable forestry
Situation Analysis Primary Research & Customer Behavior
33
Segmentation and Target Markets Brand Positioning 4Ps Problems & Challenges Recommendations
Promotion/Communication Strategy
Mission
To provide the consumers with quality stationary . The brand wishes to achieve its objective of quality through sustainable means which the core value of the brand.
Market
The target market is the school going children and college students in urban areas involving primarily tier-1 and tier 2 cities.
Message
The tagline of the brand because you are one of a kind signifies that brands stands for celebrating the uniqueness of every child. Its communication has an emotional appeal. The brand has a social message too wherein it contributes a portion of its sales for children in rural areas.
Media
Classmate uses TV advertising for promotions. The message is communicated by choosing real life characters like school children. Cross promotions through its notebooks for promotion of its other products like pens and pencils.
Metrics
Money
The firm has a sizeable promotion budget. Of the Rs 35-50 crore advertising budget, a lion's chunk is being spent on consumer connect.
The sale of notebooks along with other stationary items is an important metric to measure the effectiveness of promotions. Brand recall in terms of the repeat purchases is another important metric for measurement.
Group
33
4Ps Problems & Challenges Recommendations
Situation Analysis
Brand Positioning
Pricing
190 x 155 mm 190 x 155 mm 190 x 155 mm Hard Cover Soft Cover Soft Cover
30 30 27 20
Classmate notebooks in general contribute a almost 90% of the revenues of the brand. In the notebooks category it faces direct competition with the brands like Navneet, which are large players in this market. In the notebook segment there are other small local and regional players which compete directly with classmate across different regions of the country. In comparison to its competitors Classmate Notebooks are priced slightly less as those of its competitors. Thus it follows a Discount Pricing. According to the Nine Price Quality Strategies Classmate follows a High Value strategy by providing high product quality and charging a medium price for its products.
Group
33
Situation Analysis Primary Research & Customer Behavior Segmentation and Target Markets Brand Positioning 4Ps Problems & Challenges Recommendations
Notebooks - Widely
considered as a low involvement commodity category
Existing brands like Nataraj , Cello and Camlin have been in the market for long and so have a better brand recall
Seasonality of demand
The demand for notebooks peaks during the school reopening season and the demand for art material peaks during the summer vacations.
The current competitors have a very deep reach in certain geographies. So the challenge is to be quick, agile and reaching out to all geographies.
Segmentation and Target Markets
Brand Positioning 4Ps
Group
33
Recommendations
Recommendations
P r o d u c t s
Marker Pens & Highlighters Premium Pens Most schools/ colleges switching to white boards Targeted at College students huge market To tap the gift market Majority of students surveyed indicated that they like Very few well known brands such as to highlight important lines while reading Parker School funStationery Kit Water Colours A bundle of 5 Pens, 5 Pencils, sketch pens, 5 Completes the product mix of this category erasers, 5 sharpners and a geometry box Large market- children aged 8-15 prefer along with 6 notebooks water Colours One package that will be bought every time a student needs fresh set of stationery Tackling Seasonality of demand Tie up with schools Majority of urban schools now offering notebooks and other stationery. Tie up with school chains will help to tap this market Steady revenues High Customer retention
Situation Analysis
Group
33
Recommendations
Brand Positioning
4Ps
Recommendations
Brand Building Classmate WHIZ KID Contest Classmate Whiz-kid contest Competition for Students which will test knowledge, artistic skills Leaves lasting impression in the students minds Many success stories such as Bournvita Quiz,
*can be benchmarked
Classmate Facebook Page Almost every student above age 12 has a Facebook account.( Increasingly large number of students below 12 also have Facebook account) It will have daily GK quizzes, puzzles etc. with exciting prizes Very dynamic and happening page that will create a buzz among the students Separate Website for Classmate will also help in brand building
33
Situation Analysis
Brand Positioning
4Ps
Recommendations