2. Company Background
• 1923 incorporated as Atlantic Manufacturing
Company.
• 1946 adopted the Scripto name.
• 1969 acquired the Butane Match Corporation
of America.
• By 1964, decline in market share from 16% to
10% and dropped from second to fifth place in
sales volume.
• 1964 to 1966, sales again increased by 40%.
3. Scripto’s sales strategy
• First entered market with 49 cent Graffiti pen, “me-too”
product and annual advertising budget was approx.
$250,000. But failed.
• In 1971, it started developing a fine-line marker to
equal Flair in quality and retail for 19 cents.
• Scripto’s philosophy behind the pricing strategy was to
sell a quality pen for considerably less than the
competition.
• Although the lower retail price meant less revenue per
sale for the merchant and the manufacturer, the key to
increasing profits was to increase sales volume.
4. Sales to Marketing orientation
• In the past, Scripto had placed greatest
emphasis on sales. Marketing plan being
formed around sales plan. No marketing
research and advertising program was greatly
curtailed.
• But Tokai Seiki management shifted from
sales to marketing orientation. Stronger trade
support, better trained sales organization and
more promotional programs
5. Scripto Management
• Until late 1950s, Scripto was successful and
profitable.
• Competitors
In the late 1963, Japanese entered the
American writing market. And number of
American soft-tip pen manufacturers
increased.
• After 1964, Scripto spent heavily to improve
production facilities diversified its investments
6. • Resulted in sales increase by 40% in next two
years.
• In early 1972, Scripto introduced “19cer”
fiber-tip pen, with the pricing strategy to sell a
quality pen for considerably less than the
competition.
• All these show the management’s involvement
in bust and boom performance of Scripto.
