ITC Classmate is the leading stationery brand in India with a 20% market share. It entered the stationery market in 2002 through its Paperkraft brand and launched Classmate in 2003. Classmate targets students, educational institutes, and corporate employees across rural and urban India. Its marketing positions Classmate as recognizing and celebrating the uniqueness of every child. While Navneet and Bilt are its main competitors, Classmate differentiates through durable, high-quality products and cover designs. It promotes individuality through the tagline "You are one of a kind."

1. BRAND MANAGEMENT
Overview of brand extension – ITC Classmate

2. FMCG industry in India
Source: GMID Euro monitor report, annual report 2014
Overview
Fast moving consumer goods (FMCG) is the fourth largest
sector in the Indian economy
The FMCG sector has grown at an annual average of about 11
per cent over the last decade
Food products is the leading segment, accounting for 43 per
cent of the overall market. Personal care (22 per cent) and
fabric care (12 per cent) come next in terms of market share

3. Education & Stationery Market in India
Consumer expenditure in India (INR million)
2009 2010 2011 2012 2013 2014
90,201.7 111,528.4 120,699.8 128,444.5 144,504.4 163,861.3 Source: GMID Euro monitor report, annual report 2014
Organized notebook market in India is 4000 Cr
ITC’s Classmate is market leader with 20% share
Navneet follows with 7% share
Remaining market is controlled by regional shares

4. ITC Group
Country’s leading marketer in FMCG
Second largest hotel chain in India
Market leader in Indian paperboard &
packaging industry
Pioneer is farmer empowerment with its Agri
Business
In the 1970s, it diversified into non-tobacco
businesses

5. ITC Group – key financials
Source: GMID Euro monitor report, annual report 2014

6. ITC’s extension into ‘Classmate’ stationery
ITC made its foray into stationery with ‘Paperkraft’
in 2002
Expanded into the popular segment with
‘Classmate’ in 2003
Classmate became largest notebook brand in the
country
Classmate & Paperkraft have become a natural
extension of the consumer
Source: GMID Euro monitor report, annual report 2014

7. Market Segmentation By User
Professional (business) users
- Medium (10-50) & large (>50) sized offices
Small office & Home Users
- 1-10 employees
Private Users
- Children, teens & students

8. Target Group
General Market for
Classmate: Students,
Educational Institutes,
Corporate Employees
Stands for identifying &
celebrating the
uniqueness in every
child
Encourages the user to
nurture his talents, skills
and interests that make
him special.
Classmate's simple
message to every child:
"You are born unique so
succeed to your own
strengths. Because you
are one of a kind."

9. Positioning
Recognizing and
celebrating the
uniqueness of
every child
Encouraging
individuality.

10. Marketing Mix (4P’s)
• Pencils (mechanical and wood-cased)
• Pens (ball, gel, roller and fountain)
• Mathematical Instruments (wax crayons, colour pencils, sketch pens
and oil pastels)
• Erasers
• Sharpeners
• Art Stationery
• Notebooks
Product

11. Marketing Mix (4P’s)
• Selecting Pricing objective : Classmate objective is to maximize
market share
• Pencils – INR 3- 40 per unit
• Pens – INR 5- 20 per unit
• Mathematical Instruments (wax crayons, colour pencils, sketch pens
and oil pastels)
• Sharpeners – INR 4- 20 per unit
Price

12. Marketing Mix (4P’s)
• Classmate’s products are targeted across rural & urban areas across India
• LEVEL 3 : Producer  Agent  Wholesaler  Retailer  Consumer
• This level is used majorly for reaching consumers in rural areas
• LEVEL 3 L : Producer  Wholesaler  Retailer  Consumer
• This is used in all other areas of distribution
Place

13. Marketing Mix (4P’s)
• Promotions is a major player for Classmate
• Promotions are undertaken with the tag line ”You are one of a kind”
• TV Advertisements, hoardings, posters and banners are used to
promote the products across all areas
• Classmate uses 3 type of advertising strategies
• Television advertising
• Newspaper advertising
• Magazine advertising
Promotion

14. Competitive Frame of Reference
NavNeet and Bilt are the main competitors of Classmate.

15. Ad Analysis (videos)

16. Ad Analysis – ‘because you are one of a kind’
Ads have an emotional appeal
Recognizing and celebrating the uniqueness of every child
Encouraging individuality
*depicted are snapshot of TVCs over the years

17. Competitor Analysis
Brand Recall Brand Recognition

18. Competitor Analysis – Product, Place
Products : Writing instruments,
Art Stationery, Notebooks
Place: Across rural & urban
India
Products : Scholastic Paper
Stationery, Educational Books
Publishing, Non-paper
stationery
Place : Rural & Urban India +
Exports

19. Competitor Analysis – Price, Promotion
Price : Higher priced
(Rs. 40 per notebook)
Promotion : ‘you are one of a
kind’
Encouraging individuality
Price : Lower priced
(Rs. 35 per notebook)
Promotion : ‘Knowledge is
wealth’

20. Perceptual Mapping
Classmate
Navneet
Bilt
Local

21. POP’s & POD’s
Points of Difference
• Product Differentiation: Durability, conformance quality, reliability, repair ability,
style, performance quality differentiate a product
• Design Differentiation: Classmate has very good cover design that differentiates
it from its competitors. The customers register the design at the first look and
hence prefer classmate over others.
• Services Differentiation: Ordering ease, delivery, installation, customer training,
customer consulting, maintenance repair and returns differentiate services
Points of similarity
• Regular range of stationery like competitors
• Similar reach & target group
• Similar price range

23. By - Shamael Ansari (PGP 30102)
Brand Management (Sec B)
IIM Lucknow