The document analyzes expansion opportunities in the premium stationery segment in India. It finds that the segment is growing at 20-25% annually but has low penetration currently. There is high competition from global brands but the industry remains fragmented. The target customer's purchasing power and acceptance of premium products is increasing. The analysis identifies growing discretionary spending power and the rising young customer segment as opportunities. It recommends a new brand targeting value-conscious, brand-conscious mid-level executives and female executives with customized, quality products priced between INR 1000-1200.

1. An Analysis of
Expansion Opportunities in the
Premium Stationery Segment
TEAM PAPER-TIGERS
Aashish Agarwal
Prateek Bhargava
Ramnath Srinivasan
Ritesh Saurabh
Sahil Dhar Hakim
INDIAN SCHOOL OF BUSINESS
Eximius’12 – Level-Up : Round 1

2. Premium Stationery India : Key Trends
Growth Competition
• Growing segment @ 20-25% • High competition in India with global brands
• Untapped markets – potential market gains • Large players exist but industry still fragmented
• Low penetration in the segment at present • No presence of regional/local players
Customer
• Growing purchasing power of potential target customers
• Increase acceptance of premium segment amongst
customers
• Customers climbing up the Maslow’s hierarchy of
motivation to buy
• Aesthetic needs and esteem needs gaining priority
 Category Awareness Present
Eximius’12 – Level-Up : Round 1  Customer Acceptance Moderate-High

3. Premium Stationery India : Industry Attractiveness
> This Segment is small part of the industry HIGH
> Retaliation from local/regional players > Low product loyalty
> Premium connotation with existing brands > Easy to switch brands
Bargaining Power > Miniscule percentage of their
> Intl players with strong brands
of Buyers spending budget
> Buying decision – style, snob
HIGH value, perception of others
about the brand
HIGH
> Substitutes available
Threat of Internal Barriers to
MID
Substitutes Entry
> Low switching costs Rivalry
> High growth rate
> High margins
> Medium capital
> High promotion costs
> Existing business – direct synergy Bargaining Power
> Sellers fragmented of Suppliers
> ITC a huge player = high bargaining power
LOW
 Industry Attractiveness : Medium
Eximius’12 – Level-Up : Round 1

4. Consumer Insights : Demographic Trends
India’s middle class constitutes 50
million people at present. Likely to go up
to 583 million people by 2025
• Rising discretionary expenditure
• High probability for premium purchases
• Rise in the average household income
Households that can afford
discretionary spending likely to go up
from 8 million at present to 94 million
by 2025
Target Market
- Rising fastest amongst the world
- Huge potential to tap
 Rising Discretionary Spending
Eximius’12 – Level-Up : Round 1  Young customer group growth

5. Consumer Insights : Segmentation Analysis
Segment Name Primary Need Characteristics Value Proposition Existing Options Willingness to Pay
Writing
Notebook
Instrument
21-30 Years Paperkraft,
Current Paperkraft Reasonably Differentiation from
60% Male BILT Matrix,
Target: priced academic stationery, < 500 INR < 600 INR
65% Single Nightingale,
Young Executives 'office' stationery. affordable price
MHI : 30-50k Parker
Announce having
30-40 Years
'arrived.'
Premium Office 90% Male 500-1200
Mid-level Executives Differentiate from Moleskine, Lamy < 1000 INR
Stationery 20% Single INR
lower executives. Look
MHI : 50-80k
for value.
> 40 Years Exhibit prestige and
Mont Blanc,
SME Owners/Mid- High-End Office 95% Male clear distinction from
William Penn, > 1500 INR > 1200 INR
Top Management Stationery 5% Single the rest. Little/No
Sheafer
MHI : > 90k Price sensitivity.
30-40 Years Announce having
Premium Office
Mid-level Female Female 'arrived,' but more Moleskine, 700-1100
Stationery with a <1100 INR
Executive 5% Single importantly as a Lamy INR
Feminist focus
MHI : 40-70k 'woman in business.'
Collect High-quality,
long-lasting product as
Archiving Foreign Collectible 30-60 Years an object depicting Local/Artisan grade
~1000 INR ~1000 INR
Tourists Stationery 65% Male the cultural memory items
of a tourist
destination.
Eximius’12 – Level-Up : Round 1  Accessible, Actionable Segments

6. a
Consumer Insights : Survey Findings
Frequency Corporate Gifting
How often do you buy stationery? What according to you would be an ideal corporate gift?
60% 50% 45%
50% 45%
50%
40%
35%
40%
30% 25%
30% 25% 25%
20% 15% 15%
20% 15% 15%
10% 10%
10%
5%
0% 0%
Once in 1 mo Once in 4 mo Once in 6 mo When I see Corporate Wear Gift/Meal Premium Decoratives
something I like Vouchers Stationery
Increase in Price Insensitive, Impulse Buying High Preference for Premium Stationery in Corporate
Point of Sale Premium Stationery – Purchase Motivators
Where do you usually buy your stationery from? What factors do you consider when buying Premium Stationery?
60%
52% 100%
90%
90%
50%
80%
40% 70%
30%
28% 60%
50% 42% 38%
40%
20% 14% 30% 25%
10% 6% 20% 13%
10%
0%
0%
Multibrand Gift Stationery Retail - Online Stationery Retail - Value Pricing Brand Customization Quality Availability
Store Modern Tradit.
Value Pricing is an important Purchase Criteria
Eximius’12 – Level-Up : Round 1  Value-Priced, Premium Stationery & Impulsive Buyers

7. a
Company Perspective : Strategy Analysis
Evaluate Market Re-write industry rules
Entire Leader’s functional to exploit a unique, SHIFT TO
Market approach and strengths industry-wide
advantage
Resegment the market Create and pursue a
Niche Market to create a niche unique advantage BEGIN WITH
Traditional New
Rules Rules
Emphasize on creating ‘Points of Difference’
Deliver on Latent Need to overcome reputed players
Eximius’12 – Level-Up : Round 1

8. a
Company Perspective : Strategy Execution
Focus on sustainability
Environmental stewardship
A Legacy of India >Current Target : Price Sensitive
Organization >Brand Connotation Established
Product
Emphasis >Different TG
>Low Price Expectation
Growing Segment Mid-Level
Synergies with Present Classmate  Executive Price
Additional Revenue Paperkraft 
Business Choose a Mid-Level
Opportunity Brand Executive - Female
<New Brand> 
Archiving Place
Foreign Tourist
> Pricing Flexibility
Consumer >New TG
Promotion
Insights >No Brand Priors
Brand Conscious >New Target : Value Sensitive
Value Minded
New Indian
Eximius’12 – Level-Up : Round 1

9. a
Marketing Mix : The 4Ps
Product Place
Modern Retail In-Hotel Stores
Points of Parity Points of Differentiation
> Premium Gift Box > Distinct Design
> Smooth Writing > Value Pricing
> Polished Pen Appointments > Made in India tag
Product Line Online Retail Gift Certificates
-> Heritage Series -> Executive Series -> Woman of Today Series
Price Results of Conjoint Analysis using below Products
Airport Shops
Brand 1 Brand 2 Brand 3 Brand 4 Brand 5
Name Mont Blanc 'New' Lamy Parker Paperkraft
Price 3500 INR 1000 INR 2200 INR 1200 INR 600 INR
Body Metallic Metallic Metallic Metallic Non-Metallic
Weight Ultra Light Regular Light Regular Regular Promotion
8.5 Brand 2, 8.2 Promotion Outlay ~ 20% of Sales
8
7.5 Brand 4, 7.1
Television 5%
7 Brand 5, 6.3
6.5 Brand 3, 6.7
6 In-Store 15%
5.5
5
4.5
Brand 1, 5.3 Suggested Price Range INR 1000 - 1200 Print 40%
4
Direct
Brand 1 Brand 2 Brand 3 Brand 4 Brand 5 40%
Corporate Selling
Eximius’12 – Level-Up : Round 1 0% 10% 20% 30% 40% 50%

10. Eximius’12 – Level-Up : Round 1